Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1921-07-14
BANK SITUATION
CAUSES CONCERN
Estimated One Hundred Fifty
Thousand Dollars in State
Treasurer's Checks Have
Been Returned by Bank of
North Dakota Financial
Statement to Be Issued.

Bismarck, N. D., July 13. (speciaD
1T is estimated by the state treas
urer that approximately $150,O00
worth of state treasurer's checks
have been returned to his office in
the last few weeks with the informa-
tion that payment had been refused
by the Bank of North Dakota. New
checks are being returned daily.
The situation growing out of the
inability of the Bank of North Da-
kota to pay the state checks is caus-
ing great concern in some quarters.
The checks are issued against very
large balance in the state bank, but
the cash is not there to meet them.
Payroll checks of two institutions
have been returned to the office.
There apparently is little concern in
the state board of administration as
to the effect on state institutions.
Charles K. Liessman, executive, sec
retary, said the board had not been
appealed to by representatives of in
stitutions because they have been un-
able to cash their checks and he re-
ferred to such an occurrence. as the
refusal to pay the agricultural col
lege check as routine incident"
The financial statement of the
State of North Dakota as to the end
of the fiscal year, july /, will be is
sued shortly by the state treasurer.
The statement, it is said, will show
the funds in a generally good con-
dition. Complete figures as to the
condition of the funds have not yet
been tabulated.
1t is said, however, in the auditors
office that the bills on hand virtually
equal the balance in the general
fund. The state auditors books show
a balance of $162,95353 in that
fund. It is estimated that $125,O00
of warrants and bills are to be enter
ed against this fund.
= Difficulty With Institutions :.
A difficulty has been encountered
with state institutions, however, due
to the conflict between the state
board of administration and the Of
flee of former State Auditor Kosit-
zky. Some of the educational insti-
tutions show deficits as against their
appropriations for the biennial period
ending July 1. The difficulty is said
to have been caused by the fact that
while the institution counted upon
the fees, ETC., as a part of their rev.
enue and governed themselves ac-
cordingly, the state auditor took the
position that all such fees should go
into the general fund; and it is said
he was SO supported by an attorney
generals opinion. The board of ad-
ministratiOn accountants took the po-
SitfOn Of the insfifutiOns
No solution of the difficulty has
been arrived at. Officials are expect
ed to give it some immediate atten-
tion. The deficits are said not to be
large, altho the Minot normal is said
to have shown a deficit of $25,OOO,
the largest.
Railroad Tax May Help
IT the railroads pay their income
tax about the 18th, as Tax Commits.
sioner Wallace says he has been in
formed, the Bank of North Dakota
will be able to meet some of the
more pressing checks. The railroads
tax is about $114,OOO.
Letters daily are being received by
state officials from county treasurers
complaining that their school appor-
tfonment checks have been turned
down, and in many cases the audit
ors have already checked out to the
various school districts.
An accurate statement Of the
amount of the checks outstanding
which the Bank Of North Dakota has
tailed to pay, is not obtainable. 1t is
estimated that not less than $15O.O0Oi
have been turned down in the last
Two weeks and there are $150,0OO
OF warrants or bills held up until
,li Ine bank can improve its situation.
Ine school apportionment, which ap-
pears not to have been paid in any
case, amounts to $368,OOO, but only
9 lew checks have been returned.