Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-17
A Law UNTO ITSELF.

Some conception of the character
Of the plans made for concentrating
power in the hands of a small group
Of politicians may be gained from a
review Of 6 few facts concerning the
Bank Of North Dakota. Neither the
conditions nor the knowledge of them
is new. The situation has been we'll
understood by many people, and has
been often explained. But the work
ings of the plan have been brought
to the attention of the public Of late
in many ways. and it is interesting
TO glance at q few of the conspicu-
III facts.
The Bank Of North Dakota Law as
originally enacted required all pub
lie moneys Of every kind to be de-
posted in the state institution. Local
taxing boards were given nc option
in the matter. 1t was intended that
every dollar of all the millions col
lected in taxes annually should be
forwarded at once to the Bank Of
North Dakota. In a few instances
local boards, %availing themselves Of
t~echnicalities which permitted delay,
were able to retain control of their
have been only temporary, and had
the law not been changed, within a
very short time every dollar owned
by the state or any OF its Subdivi-
sions would have been: in the custody
of the men who manage the state
bank.
The Bank of North Dakota is At
liberty to use the funds entrusted to
its r absolutely at the pleasure Of
its managers. It may send the
money. to Chicago Or New York. 1t
may invest it in longtime lbans. 1t
may distribute it among the banks
OF the state in the form of re-de-
posts and loans. granting to or with
4! holding from particular banks and
particular localities these advances
sideration of individual whim, per-
sonal favoritism or political expe-
diency may be uppermost for the
moment.
Insisting or it's right to receive de.
posts Of ALL public funds, the state
bank has also asserted the right to
make repayment not on the demand
of the people who own the money.
but at the pleasure and convenience
Of the bank managers themselves.
In pursuance OF this doctrine the
bank has refused to honor checks
/; drawn by local boards for current
expenses after all the funds Of the
! community had been deposited in the
state institution. thus tying up indefi'
. nitely the entire revenues of a county
or other district.
Notwithstanding the fact that al
the money belonging to the board Of
university and school lands is deposit,
ed in the Bank of North Dakota, farm
loan applications allowed by the
board months ago still lie unpaid, thu
bank officials in whose custody thi!
money is neglecting to produce thu
money.
Mr.. Lofthus, the state bank exam
liner, in recent testimony under oatl
said hat he has no authority owe,
the Bank Of North Dakota. II b.
finds a private bank engaging in bat
banking practices he can close it up
But all that he cah 10 with the Banl
of North Dakota is to add up the fig
e or its books occasionally. H
may find the vaults Sull Of paper tina
he knows to be worthless, and ma!
find records OF loans made, in viola
ton of the banking law, but he
helpless.
Under the law as originally enact
ed, and as it was in operation unit
the initiated aw was passed. last fall
the management Of the Bank Of Nortl
Dakota, with all its millions Of oblig
atory deposits, m the o~pportnnitie
for discrimination which it possessed
las entirely In the hands OF thre
men, the governor Of the state, tn
commissioner of agriculture and tn
attorney general. These three mer
or a majority Of them. were at lib
erty to use the funds Of the state a
they pleased. They were subject t
no Nentrol' no inspection, no examin
Y ataon.
Carryins the intent with whic
tne law WIS planned the bank ma
depr1ved n community OF the us
Of its funds in order to accommodate
o. 70 Ioan ior the use OF pol