The Bottineau courant. (Bottineau, Bottineau County, N.D.) 1895-1929, 1921-02-24

amount in that bank long before the
alleged transactions were entered into.
It developed further that the Bank at
Valley City had dishonored draft
made on it by the Bank Of North Da-
kota in the sum of $4,000, several
weeks before the arrangement" and
was not able to meet subsequent
drafts for $4,000 and $4,000.
Personal Loans Charge Fails
Another line Of attack on the Bank
Of North Dakota had been to make it
appear that personal loans had been
made to League members of promi-
nence who used the money thus ad7
vanced to further the Nonpartisan
League campaign. Notes made by R.
H. Walker and L. L. Stair, warden of
the state penitentiary were introduced
in evidence. Mr.. Walker, showed that
his note was made in return for ad-
vances made on real estate loan on
land owned by himself in Oliver
county and Mr.. Stair showed heI was
merely an endorser on a note made
sby renter, from himself, to the Bank
at Newburg and that this bank was
an endorser on the note together with
Mr.. Stair.
1t was further shown that at the
time the renter made the loan he was
required to take out an insurance pol
icy on his life, made payable to his
estate as additional security to the
bank at Newburg which re-endorsed
his paper to the Bank Of North Da-
kota.
Falsify Banks Reserve
But the most vicious attack thus far
made on the Bank Of North Dakota
came when Attorney Murphy sought
to make it appear that the bank was
insolvent because it did not have the
required legal reserve. He used his ut
most wiles to mislead M. w. Thatcher
of the Equitable Audit Co. into MAX
ing statement that would create the
impression that the reserve of the
bank was no more than the actual
cash on hand on Dec. 8, the day on
which the audit of the bank is based.
Five Times Required Amount =.
Instead it was shown that the re-
serve of the bank on that day was
over $7,000,000 or five times the
amount required of it under the ses-
sion laws of 1919. Based on the re-
quirements of the 1915 law, which
were more stringent, and on which
Murphy, based his questioning, the
amount of the reserve was still more
than twice the legal requirement.
Mr.. Thatcher further made the
statement, and. proved it by bank
statements submitted, that most of the
banks, of the state were away below
the requirements of the 1915 law only
two or three out of the number of
over 700 banks in the state being able
to make showing that would have
saved them from being declared in
solvent if the requirements of the 1915
law were adhered to.
Private Banks Suffer Attacks
But the wreckefs who are deter
mined to wipe out the functions OF
the bank as banking institution care
not at all how much ruin they may
wreck by destroying public confidence
in banks if they can only attain the
end which is the aim of the lawless
interests which are back of the per-
formance daily staged at the 'Burleigh
county court house.
The state banks will be the ones to
suffer and the ruin Of few Of them,
that may not be able to meet the
drafts made upon them by the Bank
Of North Dakota, will mean the down
fall Of many others that can not
stand the drain which will be made 1
upon their resources to meet the re-
quirements Of the guaranty Of de-
posits law. National banks do not
come under this act SO they have moth
ing to fear should such calamity
ensue and some Of them. may even
be welcoming the crash that may come
ia their vulture like lust for the fat
carrion that may be had for the pick
ing out Of the ruins that must result.