Emmons County record. [volume] (Williamsport, D.T. [i.e. N.D.]) 1884-current, 1921-01-13
n. d. BANK TURNS DOWN
CHECKS

WI" A>OS AACuVA SNSChS TAUH ANY
County, City, Township or School
District Except Under Certain
Conditions
The following bulletin has been
sent to all treasurers handling any
kind. Of public funds. 1t shows how
far the bank proposes to go. En-
mons county has nearly $4,000 on
checking account with the Bank of
North Dakota that becomes thus per-
manently tied up. The bulletin
reads as follows:
To Treasurers:
1t is needless for us to inform YOU
that an acute and unusually financial
conditions prevails over the entire
country arising from deAation of
prices during the present reconstruc-
ton period. This is particularly true
in all agricultural sections, including
North Dakota. This peculiar situa-
tion is being aggravated at the pres
ent time by various treasurers
throughout the state who have since
the first Of December discontinued
making their deposits with The Bank
Of North Dakota. These treasurers
have in most instances deposited their
receipts in certain local banks, but
have continued to pay all of their OBJ
legations out of balances in The Bank
of North Dakota. The Bank of
North Dakota can secure funds for
the payment of these Withdrawals
only by withdrawing sufficiently
large amounts from the various
banks througout the state in which its.
funds are re-deposited. At this time
this is impossible. An attempt to do
SO would mean the closing Of large
number of banks. These banks
wolld be unable to pay their ,obh-
cations not only to The Bank of
North Dakota, but to>their patrons as
we'll. This situation would work
great hardship on every one and can
and should be avoided. There is,
however, 10 cause for alarm; all that
is needed is cooperation. 1t would
be manifestly unfair to permit
treasurers who are now depositiag
their receipts in local banks, to gay
their obligations out of. funds in the
Bank of North Dakota, to the detri-
ment of the treasurers who are now
making their deposits in the Bank of
North Dakota.
Realizing the seriousness of the
situation and the necessity that ac-
tion should be taken to avert injust-
ice and to protect the interests of the
entire state, the Industrial Commits
sion, at meeting held December 20,
1920, passed the following resolution:
WHEREAS, large number of
county and other treasurers have dis
continued depositirg their funds with
The Bank of North Dakota, and are
instead making such deposits
with local banks, doubtless for the
purpose of relieving local financial
conditions, but continue to issue
checks against their balances in The
Bank Of North Dakota, and,
WHEREAS, the local banks in
those localities, as well as IN other
parts of the state, find it impossible
to meet the Withdrawals by The
Bank of North Dakota in sufficient
volume to enable it to meet the checks
of such treasurers, and,
WHEREAS, certain other county
and other treasufers are continuing
to make their deposits with The Bank
of North Dakota, and,
WHEREAS, it appears that action
must be taken to meet the emergency
thereby created by the failure to sus-
tain the balances with The Bank Of
North Dakota, be it therefore,
RESOLVED, that The Bank of
North Dakota be, and is hereby in
structed, until the further order of
this Commission to discontinue honor
ing checks drawn by such county and
other treasurers who have discon-
tinued making all of their deposits
with The Bank Of North Dakota, and
it is hereby further ordered, that The
Bank Of North Dakota continue to OBJ
serve the order of this Commission
dated Dec. 3rd, 1920, prohibiting the
transfer of funds from The Bank of
North Dakota to other dfpositaries
by treasurers.
Respectfully,
F. w. CATHRO,
Manager and Director General.
Bismarck, North Dakota,
DDeDceDmDbD eDrDDDD goth
December Doth. 1410 f., z i,