Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-06-25

- u'st01 M y UuBHt % b t6lfIy easy To doc160 on y
prosranA Witch viii b fairly satisfactory te all. ana whea
oaee the program 10 decided on, let's follow It 70 tia
the rasht spirit may be put intp the whole dAy.
IT DoEaar Exr1ArS.
In q long ana lahored article In bulletin No ~ ~,
Bank OF North Dakota issued June il, Manager cathrl
OF Inc Bank OF North Dakota undertakes to explain VIII,
J. a oeen necessary for the state to hold up paymenl
on such = large percsntage OF is Obligations. Tho gen.
eral purport Of the explanation 10 that the tax fund
deposited in pursuance Of law with the Bank Of NORTH
DAKOTA were L. many Instances loaned on long tim.
securities in the expectation that within = short tinl
sufeaent funds would be realized from bond sale4S e
replace this money ana that the long time Investment
would then be really that Of the bond proceeds, ana no,
Of current tax funds. The bonds did not sen readily:
hence. this program could not be carried out.
Mr.. cathro knows. rs every other intelligent psrson
knows that the program Of the Bank Of North Dakota
VA an unbusineaslike program from the beginning. The
bank started its activities on wind, and It continued to
inject wind into its operations during all the months 81
it, existence. In November, 1920, ample notice wa
ssrved on the bank MANAGEMENT that the depositing OF
local funds IN the state institution must cease. This notice
was given by the electors In rolling up 4 majority for
the initiated law, exenptins local tax bodies from the
Obligation to deposit IN the Bank Of North Dakota. That
happened early In November. A Management which had
desired to comply with the law IN good faith ana to. save
the state and its people from embarrassment. would
at that time II it had not had the sense to do 10 earlier,
have discontinued this former practice and would then
have made preparations to refund the money which
the manager knew would be called for shortly after
the hrst Of the year. There was no disposition
anywhere to make q raid on the Bank of North
Dakota. Public ofhcials all over the state, local
bankers. business men. farmers. people Of all classes and
conditions, realized that this would be injurious to the
state and did not desire that 1t should be done. They
were willing that ample leeway should be given the bank
in making its reservations OF funds; but the bank man
ayers stubbornly proceeded in their own way and en-
ployed dilatory tactics Of every conceivable kind In order
to delay the action which had bee, directed in the
initiated law. Hence, when the time came that demands
were made for repayment, the money was not on hand.
In addition to the clumsy, awkward, and unbusiness-
like methods employed in the bank, the political element
wa given full sway. Money was placed in political
banks such as the American Bank Of Fargo
when the bank managers knew the affairs Of these banks
to be in . critical condition, ana that the funds were
to be employed, not for the prosecution Of the ordinary
commercial business OF the state, but for the promotion
OF political ambitions and political purposes. That made
another bad hole in the cash on hand. e
Following the example Of his superior, Mr.. Townley,
Mr.. Cathro applies to the farmers of the state every
criticism which has been directed at those who have been
vctimizing the farmers. On this hypothesis, Mr.. cathro
WAKES indignant over what he calls "the injurious refer
ence In the representation that the funds 50 loaned have
been wasted Ths, he says, is equivalent to saying that
money loaned on North Dakota farms secured by mort
cages, representing not over 50 per cent Of the appraised
value Of the farms, is lost; or that money put into the
mill and elevator plant the state is building is wasted,
and that money furnished for the building Of homes for
North Dakota citizens wehere the latter must furnish
20 per cent Of the investment in order to secure the ad-
vance from the state and must mortgage their homes
to the state to secure payment of the balance will never
be repaid.
When Mr.. Cathro says that, he knows he is talking
nonsense. The money that has been wasted has been
paid out to incompetent and sometimes corrupt employee,
placed upon the payroll Of the state for political pur-
poses It has been peddled about to insolvent banks IN
order that 1t might beqre-advanced to politicians in pay
naent for their services. It has been used in various ways
to promote political plans of professional politicians.
That Is chiefly where the waste has been. There are
other itsns Of waste in the manner in which material
vas purchased for the Home Building Association; in
the. handling Of the Affairs of the state mill at Drake,
where dour sacks wore bought by the carload at the
highest price that cotton ever reached, in quantities suf-
dctent to hast the mill for months after cotton mieht
reasonably be expected to drop in price; and in the in
efficient manner In which the affairs OF the Home Build
ing Association were handled In that proper account was
not kept Of the cost Of individual buildings.
It may not hsve been wasteful to loan money to
Iemke and Totem with which to build SO, coo and 314..
geo homes when humber indivtduals were asking for
loans OF smaller amounts to put their own roofs over
the heads Of their own families, but that Is another
story. Taking It altosether. Mr.. cathro's political circu-
lar No. 8 is not = document which win greatly strength
en- his cause. E
The Rotax4ans who are now visiting in England IN
"a 40 AZ --E-A 40 I'm