The Ward County independent. [volume] (Minot, Ward County, N.D.) 1902-1965, 1921-02-24
CHARY WITH THE FACTS

WllllStOn Herald: Those who de-
pend puon the Nonpartisan league
paper for their information concerning
the state administration are very
poorly informed these days and such
accounts as are given are very mis-
leading, to put it mildly. For in
stance, we read in last weeks issue
Of the North Dakota Leader, that
met earnings Of $116,427.75, or 32.5
per cent on the capital invested, is
the record made by the state indus
tfes," and are further informed that
this profit is over and above all ex-
penses, property depreciation, mar
ket losses, original and development
costs, and the only intimation that
the reader has of anything being
amiss is the wall that is constantly
being raised against the 81. v. A.
wreckers".
If the reader is willing to go to
considerable trouble to dig into such
financial statements as are given by
these papers he may discover that
the only source of profit was the Bank
of North Dakota and that the profits
would have been greater had it not
been necessary to deduct from the
profits Of the bank the losses sustain
ed by the other industries; but even
should the reader discover these facts,
he will be uniformed as to the real
condition of these industries and as
to the bank itself.
He will, for instance, fail to dis
cover the fact that of the funds that
were handled by the Bank Of North
Dakota for which it is supposed to be
responsible, nearly a million dollars
was deposited in banks that have fail
ed and to this must now be added
$4,000 loaned to the Scandinavian
American bank at Fargo, which has
been hopelessly insolvent for months
and which has now been closed. It
was this bank, it will be remembered,
that was examined by orders of At
torney General LANCER, the report Of
which examination was set aside by
the supreme court on the strength of
a later report ordered by the state
bank examiner, which, it has just
been admitted, was falsified to mis-
lead the supreme court so as to pro-
long the life of the looted bank and
cover up the work of the league ad-
n,inistration.
To be sure the Bank Of North Da-
kota made money; but where did the
profits come from? Ask this ques-
ton Of the treasurer Of any township,
school district or county, which has
been getting two per cent on its de-
posits in this bank as against the
much higher rate which the private
banks Of the state formerly paid and
would gladly Have, paid during the
past years of money scarcity. What
institution could not make money by
a law-created monopoly Of that kind :,
As a matter Of fact, the bank could
have shown a profit without any de-
posits at all, for it will be remember
ed that it took over two million dol
lars Of hank bonds without the pay
ment of }any money, and the state is
paying interest on these bonds, which
interest goes to the holder of the
bondss heaBank 3of North Dakota, and
should be more than enough to meet
a reasonable salary roll. s
But what about the capital? Can
the balik claim credit for profit Of
$4,000 when more than ten times
that sum has been loaned to banks
whose. doors are now closed? II
takes an optimist Of high degree to
really believe that the state will re-
cover every dollar thus loaned, and
just that is necessary before the adj
ministration can prove its claim that
q profit has been made above "'all
expenses, property depreciation. mar
ket losses, I. etc. ..., .... 4.
But the league is in such desperate