The Bowbells tribune. [volume] (Bowbells, Ward Co., N.D.) 1899-1969, 1921-02-25

made on it by the Bank of North
Dakota in the sum of $4,000, sew
eral weeks before the "arrange-
ment" and. was not able to meet
subsequent drafts for $4,000 and
$4,000. ~ -. :
Personal Loans charge Fails
Another line of attack on the
Bank of. North Dakota has been to
make it appear that personal loans
had been made to League members
of. prominence who used the money
thus advanced to further the. Non
partisan League campaign. Notes
made by R. H. Walker and l.. L.
stair, warden of the state peniten-
tiary, were introduced in evidence.
Mr.. Walker showed that his note
was made in return for advances
made on a real estate loan on land
owned by himself in Oliver county
and Mr.. Stair showed he was mere
" an endorser on a note made by
a renter, from himself. to the bank
at Newburg and that this bank was
an endorser on the note togethe,
with Mr.. Stair.
|: 1t was further shown that at the
time the renter made the loan he
was required to take out an insur-
ance policy on his life. made pay
able to his estate as additional Sc
curity to the bank at Newburg
which re-endorsed his paper to the
Bank Of North Dakota.
Falsify Banks Reserve
But the most vicious attack thus
far made on the Bank of North Da.
kota came when Attorney Murphy
sought to make it appear that the
bank was insolvent because it. did
not have the required legal reserve.
ae used his utmost wiles to mis-
lead NJ. w. Thatcher. Of the Equit-
lble Audit Co. into making a state
ment that would create the impress
sion that the reserve of the bank
was no more than the actual cash
on hand on Dec. 3, the day OIL
which the audit of the bank is
based.
Five Times Required Amount
instead it was shown that the re-
serve of the bank on that day was
over. $7.00O,OO0 or five times the
amount required of it under the
session laws of 1919. Based on
the requirements Of the 1915 law,
which were more stringent, and on
which Murphy based his question:
ing. the amount of the reserve was
still more than twice the legal re-
quirement. NJ: az 7j;4
Mrs Thatcher further made the
statement, and proved it by bank
statements. submitted. that most of
the banks Of the state were away
below the requirements of the 1915
law, only tws< or three out Of the
number Of over 700 banks in the
state being able to make a showing
that would have saved them from
being declared insolvent if the re-
quirements of the 1915 law were
adhered to. MIC
Private Banks Suffer Attacks
But the Wreekers who are deter
mined to wipe out the functions Of
the bank as banking institution
care not at all how much ruin they
may wreak by destroying public
cOnfid dence in banks if they can only
attain the. end which is the aim OF
the laWless interests which are back
Of the performances daily staged at
the Burleigh county court house: q
The state banks will be the ones
to suffer and the ruin of a few of.
them, that ,may not be able Ito meet
the drafts made 81 pom them by the
Bank Of North Dakota. will mean
the downfall Of many others that
can not stand the drain which will
be made upon thei m resources to
meet the requirements Of the guar
anty OF deposits law National
banks do not come under this act
30 they have nothing to fear should
such calamity ensue and some Of
them may even be- selcoming the
crash that may come in their vul-
tnre like lust for the tat carrion
that may be had for the picking out
pf the ruins that must result.
%5ss Wreckers Being Fought
AT present 1t Is "a battle Of the
giants between the members Of the
c0mmissio on, that wants
to- save the Bank OF North Dakota,
and the wreckers that stand array
ID TO destroy II and IT rs 4. question