Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-21
BANK OF n. D.
MUST MEET BIG
NOTE MARCH IS
Opening of Institution to In
dividual Depositors Was
Expected.
NEED FOR READY
CASH CAUSED MOVE
Only About Half of Re-de-
posts in State Can Be
Liquidated.

Bismarck. Feb. 21.-Announcen1ent
that the North Dakota industrial COM
mission had decided to open the Bank
of North Dakota to individual depos-
it's, which was made with a flouri ish
of trumpets by the Nonpartlsan
League press Sunday morning, had
been expected here for several days.
Propaganda evidently intended to
boost such a plan has been appearing
in the league papers for the last week,
and the report of the Bank Of North
Dakota which was made public Satur-
day made it plain that some steps to
replenish the funds in the institution
would have to be taken promptly if
it was to remain in operation.
No Great Rush.
AS matter of fact, however, Inde-
pendents here point out that the chief
be to get money out Of the state bank
rather than into it. and they do not
anticipate any great rush Of depositors.
The plan apparently is to designate
the various banks throughout the
state which are friendly to the Non
partisan League as branch depoSftor-
les.
In connection with the announce
ment which has been made by the in
uuSlTlAl COIllu1SSAO1 al AudtySAo VI tIAc
report of the Bank Of North Dakota,
as made public last Saturday, is in
teresting as throwing light on the
need of that institution for ready cash
Immediately. iAnkXs
On the assets side Of the report the
assets which are theoretically liquid
may be taken to include loans to
banks, loans on warehouse receipts,
dus from depository banks Of North
Dakota as redeposits. due from cor
respondent banks outside of North
Dakota. cash items from banks in
the state. cash items from the state
and public corporations. and cash on
hand and other cash items.
The sum of these items, according
to the report Of Feb. Is, is $S,01O,-
! 1911.
On the other side of the ledger liza
bilities which may be taken to rough
7; ly correspond with these and to meet
which liquid funds are required, to-
! tai $S,s10,ss6.OS, more than 100000
in excess Of the liza bi1ities which are
/ even Theoretically liquid.
! Neither OF these amounts can be
| taken at it's face value, however.
Among the liabilities figured in arriv-
! ing at the total is an item of $2.441,-
! 1881 which represents the deposits
, OF state funds from the state treasur-
/ er. These deposits are still continu-
| ing and therefore while the with
| drawals may exceed the deposits to
| some extent. there will in all proha-
+ bility be no great depletion OF this
| fund.
Real Facts Not Considered.
| This would seem to make a some
what brighter showing for the, Bank
! of North Dakota, but the real facts
| in connection with the condition of the
assets have not yet been considered.
! The chief items among the assets
which are theoretically liquid are re-
! deposits in banks Of North Dakota
| amounting to $4,939,045.43. and loans
| to banks in the state amounting to
| S2.464.041.38, making a total of 81
{ 403, 3,Os6.s1.
( Now since the closing of the Scan
| dinavian n American bank Of Fargo and
| other favored league banks during
the last week. 1t is conservatively es-
tin1ated that at least a million and a
half dollars Of public funds are tied UP
IL, closed institutions and therefore
F., cannot be considered as liquid asset
at the present time.
( Others Can't Pay.
/ Furthermore, it is claimed by the
management of the Bank of NORTH
state banks can pay up the tota
amount of redeposi1s and loans from
the state bank that they hold at the
present time without being forced &c
the wall.
While the management Of the banh
and the industrial commission pre-
sumably has no particular love Tor The
private banks. they realize that tt
close up a large number of then
would result in freezing up the STATE
banks assets tighter than ever.
So they are between two horns O
the dilemma. and as result 1t Il
doubtful if more than one-hal! of thu
g loans and rcdeposits can b: consider
ed as actually liquid assets.
To meet this situation the Bank o
North Dakota has adopted the polio,
Of simply refusing to honor any draft
except in cases where the makers ar
continuing to deposit all funds in tn
Bank OF North Dakota. Lately thi
policy has been extended to refusa
to honor drafts from many OF tn
state departments, including hail war
rants called in by John Steen. stat
treasurer. the checks being simpl
registered for payment at some late
date.
In spite of these methods. howeve,
there has been a steady drop in tn
assets Of the bank. especially those i
liquid form during the last month.
Must Meet Big Note.
To add to the troubles of the banl
the $1,000, 900 note given by the Ban
Continued on page 20