The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-07-14
INSTITUTIONS
TO GET BY, SAY
BOARD MEMBERS
Hold Present Cash Difficulty of
,#:,> Bank of North Dakota
Ii
s4 Not Serious
TALK OF A RECEIVER
One Group Wants Application;
Another Oppose-Bank Says
it Can't Collect {

The. matter of the $1,000 payroll
check for the State Agricultural col
lege, on which payment was refused
by the Bank of North Dakota, has
been settled according to R. H. Muir
and J.l., Cahill, members Of the board
of administration. TIE board members
claim they do not expect any serious
difficulties to resuN from the, inability
OF the Bank of North Dakota to meet
the checks.
The situation is, however, causing
considerable uneasiness among trea-
surers of counties and school trea-
surers of county districts, which have
been unable to get their apportion-
ment money. Several have made
trips to Bismarck in an effort to
straighten out affairs.
There will be some difficulties with
some of the state institutions during
the next two or three months Board
members say this Is due to the fact
that the income and, interest on school
lands and loans for; the last year was
less than was anticipated, sand leaves
some OF the institutins with deficits.
How this will be met has not been de-
termined. - .
Talk OF Receiver
The status Of the Bank Of North
Dakota may or may not be affect.
ed by the present difficulties OF
the bank. There are some bnsI.
ness men and politicians who want
an action started to get receiver
for the bank on the ground that
II Is insOIvent.
J.. There Is another group that say
" that this would be construed by
NOnpartisan Leaguers as IN at.
tack on the bank and would be.
come political issue. They pro.
fess to believe that state officials
will be forced to take some radi.
cal action themselves to relieve
the situation.
Thus far no action has been taken
except the renewed bond selling cam
paign, with a particular drive In
North Dakota by the members of the
Industrial Commission - Governor
Frazier, Attorney-G General Lemke and
Commissioner Of Agriculture Hagan.
Unless the bond sales mount to a con-
siderable figure the bank will be short
of cash for two or three months at
least or until fal tax payments are
received.
Those opposing the Bank of North
Dakota point to the refusal to pay
$685., 900 of state apportionment checks,
being money derived from interest
and income on school bonds and lands.
1t is probable that when the majority
of the board, which is composed OF
Governor Frazier, Mr. Lemke, Mr..
Hall, Miss Nelson and Mr.. Poindexter,
are In the city an effort will be made
to have a meeting and discuss the
situation. The constitution requires
that the school funds be kept in
violate only the interest being used,
and that taxpayers must make up
any deficits. The board of university
and school lands has assets Of bonds
Of $l1,75O,2O6.47; farm loans, $685.
669. 90; total, $18,4O5,S7547. The total
income is about 81 500, 900 a year.
BANKS POSITION.
On the other hand It Is stated
by the bank that II II were able to
collect from banks which owe 1t
all difficulties would he ended. 1t
was stated by A. Johannsen, direc.
tor of audits, that the Bank Of
North Dakota has due in demand
deposits and demand loans from
going banks the amount Of $s,9sO,'
OOO which the banks cannot pay.
The situation, therefore, according
TO the view of the Bank of North Da-
kota officials, is not an isolated case
confined to the state bank.