Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-15
OF MONDAY SHOWS
BANK EXAMINER HAS N0P0WER
OVER BANK OF NORTH DAKOTA

rect supervision of their affairs, and
ma direct them In the manner, OF
the conduct Other business so that
they, must bring it within the provi-
sions OF the law, and regulations of
the state banking department:
A.. Yes.
Q. That power, however. is entire
ly absent with reference to your duties
in the Bank of North Dakota? 4
A. 1t is.
just Compare Figures.
O.. And as a matter Of fact, all yon
are permitted to do, substantially, un-
der the law. with reference to the
Bank OF North Dakota. Is simply TO
see that the figures on the books are
kept correctly and properly added,
subtracted, ETC.?
A. Yes, and also to call attention
In myssrcrports tos.any irr~eeularities or
industrial commission.
Q. In u state bank, however, you
can direct them yourself as to what
to do when they violate the law?
A. Yes. sir.
@. But in the Bank of North Dako-
IA, if you find any violations OF the
law, in the Bank of North Dakota, you
C0Ak lAC dSSCIAlAOH ~ SAS
commission, which q charge of the
operation Of the bank, to those specific
things that you may find?
A. Yes, sir. IL
Powers END.
@. And your duties or at least your
powers end with that?
A. Yes. sir.
Q. Now, Mr.. Lofthus. in an exami-
nation of a bank. just how was the re-
of 1920?
A. 1 believe it was figured fifteen
per cent on time liabilities.
@. Just a minute, possibly o
could get that better If you were re-
ferred specifically to h statute
Glands the witness statute)?
A. Twenty per cent on demand LA
bilities and ten per cent on lime de-
posts.
this statute .a@that leach association
shall at all times have on hand in
available funds an amount which. af-
ter deducting therefrom the mount
due to other banks, sha equal twenty
per cent OF it's demand deposits and
ten per cent Of its time deposits that
is correct is it?
Q. In a state bank, let me inquire.
how are the moneys that are due to
the county ~treasurers, for instance
did you call those demand deposits be-
fore they were deposited in h Bank
of North Dakota?
A. They were carried in the indi-
vidual ledger as individual or CONNER
cial deposits.
Q. And hat is also true, is it not.
Of all the public moneys that were
deposited in the state banks? They
were carried as individual deposits and
as demand deposits?
A. All except such as were placed
on ClDs.
funds in most instances?
A.. Yes. sir.
@. Now, this act, with reference to
| reserves, provides that three-dfths Of
this amount, that is. Of the reserve
| shall consist Of balances due to the as
| ISOLATION. meaning the bank-make a
| note of this 50 you a figure it-from
| good solvent state or national banks
| fcient reserve to entitle them to act
as depositor banks, and are located in
such commercial centers as will facili-
tate the purposes of banking exchang-
es, and which depositary bank shall
have been first approved by h state
banking board of the state of North
Dakota. Now, that simply means. does
! it not, and is construed by the banking
&. department., as three-fifths of the re-
serve in the depository banks, that is
three-ffths Of the reserve may be in
the depositary banks?
A. Yes. sir.
@. Reading further: 'and the re-
naming two-fifths Of such reserve
| shall consist of actual cash on hand?
A. Yes. sir.
@. That ear that in each state
bank in the state of North Dakota, up
! to the time of the special session Of
1920 when this percentage vas chang
| ed, q little bit. two-fifths of the banks
; reserve funds must be actual cash on
| hand in the vault? That is correct?
A.. 1t should be-.
@. Under the law?
T.. Yes.
Ono of the Reasons.
@. I assume that that is one of the
particular and principal reasons, Mr..
| Lofthus, why the first thing you named
as the duties of the bank examiner
was to count the cash?
A. Yes, sir.
@. Now. then, let US apply that,
Mr.. Lofthus, to the balance sheet
statement of the Bank of North Da-
kota, as made by Bishop, Brissman &
Co.. under date of December third. In
figuring reserves. first, we take the de-
mand deposits, do we not?
A. Yes, sir.
@. Well, individual demand deposits
would be demand deposits, wouldn't
thew