Emmons County record. [volume] (Williamsport, D.T. [i.e. N.D.]) 1884-current, 1921-03-31

pretense of a necessary Investigation,
and of misleading propaganda, in and
out of the state, with regard to the
acts and purposes of the state admin
istration and The Bank of North Da-
kotr;
10. That the opposition has laid
down conditions for its cooperation
with the Administrator which means
nothing less than the destruction of
the Bank and the emasculation of the
Industrial Program, thus rendering
acceptance by the Administration i'm
possible, since by acceptance they
would prove false to the trust the
people have reposed in them;
IL. That there are many banks in
the state which ARE unable to meet
their obligations, and that, as re-
suit, The Bank of North Dakota is
able only in part to meet the drafts
of public corporations;
~. That the action of certain pub
lie treasurers in garnisheeing funds
of The Bank of North Dakota in local
banks serves only to further increase
the difficulties of those banks and
their patrons and to delay the orderly
liquidation of county and local funds;
10. That bonds of the state, pro-
vided for financing state industries
and enterprises and for the making of
real estate leans must be sold before
funds can be nelaced in The Bank Of
North Dakota, and the work on the
state industries resumed.
We admit his contentious in para
graphs 1, 2, 8, 4, 8, II, IL, 10.
We contend that his statement is
true that outside investors are with
drawing from the state, but that the
administration and the character of
campaign conducted the past five
years by Townley and his socialist
sidekickers are wholly responsible for
this condition.
Paragraph six is improperly word
ed, for the people did not order him
to make longtime real-estate loans
and loans to state industries until
money was available fer such loans.
Only the business stupidity of the
bank management is to blame for hav-
ing loaned money before they had it
to loan. 1t was the desire Of the adj
ministration to create the impression in
the state that it was. doing wonderful
things for the state when it was in
reality counting disaster by thus ty-
ing up open accounts of public corpor-
ations in longtime loans, the loans
themselves showing gross favoritism.
While paragraph 8 is correct, it re-
mains fact that the same people de-
clared fer the initiated law that de-
clared originally for the bank, and
that had the financial institution been
run on sound business principles, it
would have been prepared to meet
this change in public sentiment.
Paragraph is untrue. This ex-
posture has done much to acquaint the
public with the unsound policies pur-
sued by the Bank of North Dakota,
the league forces admitting them, but
laying the blame on their former star
performer, j. r. Waters.
Paragraph 10 is misleading in that
the administration has put across a
mass of stuff that was never declared
for even in the so-called Industrial
Program, namely the Bank of North
Dakc.a itself, Ia rural credit bank
only being called for), the newspaper
monopoly, the attack on the state SUI
perintendent, the home builders fiasco,
etc. And, in any event, if the admin
istration expected to sell bonds to
private individuals, they should have
brains enough to know that they must
meet the requirements of such indi-
viduals before completing a deal.
Mr.. Cathro then attempts to claim
that the forcing of all public funds
into the Bank of North Dakota is not
the cause of present financial condi-
tions, but that they would have been
the same had the funds remained in
local banks as formerly. His state
ment is not founded on fact. There
would not have been more than four
millions Of funds tied up in real es-
state mortgages and loans to indus
tries, as he admits. There would not
have been far more money on deposit
in Cass county banks than belonged
to Cass county and it's subdivisions
despite the fact that Cass county is
better off than practically any other
county in the state. And, in order
for Cass county to have funds belong
mig outside the county, other counties
had to suffer. This is one concrete
example, Of which there are many,
and this example gives the lie to
Cathro's statomont that funds 1uoro