Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-15
A. Yes, sir.
q. Due depository banks would b

@. Due depository banks would be
demand deposits, wouldn't it?
A. Yes, SIR.
Q. Public treasurers' open accounts
would be demand deposits? .
/, A. Yes. sir.
Q. And public treasurers' sinking
funds OF open account would be de-
mand deposits, where there had been
no CiDs issued for them?
A. Yes.
@. Now, you can figure this very
shortly, by reference to this statement.
I think. The total of the deposits in
Guiding certificates Of deposits as
shown on the balance sheet is $15;-
29s.s23.4o. The certificates Of deposits
which are included in that amount are
$1eS.s23.03. Now, then II you subtract
the certificates Of deposits. which are
time certificates. from the total of de-
posts, it would leave the demand de-
posts?
A. Yes. sir.
Q. All right. Will you do that?
A. Yes, sir.
Q. You have done that:
q. viii you tell us then what were
demand deposits in that bank as of
A.. ;15.12s.ooo.ss. as
9. Now. then, in order to get at
this correctly. we would then have to
deduct, would we not, the amount due
to other banks, how do you make that
deduction. Mr.. Lofthus, but no, you
would deduct that from the result
wouldn't you? Now then it says we
must have on hand twenty per cent of
the demand deposits?
A.. Was this on the third day OF
December, 1920?
A New Reserve.
Q. Yes.
A. Well. We are working under the
new reserve then.
@. On the third of December?
" A. On the third Of December, 1920.
The reserve law went into effect July
Q. That 1918. section hasn't got it
in. It was not yet in until the special
session Of 1920?
A. Well, the special session was
held in December, 1919.
@. Do you remember what the per-
centage is under that new act?.
A. Yes, sir, ten per cent on demand
deposits. and v per cent on time.
Q. Well, you take the amount due
from other banks, after you find out
this result, don't you?
@. You say you would take ten
per cent Of the demand deposits?
A. Yes.
Q. well. that would be how much ?
A. $1,512, 10000. ~
@. Now, you take the time depos-
its. Your time deposits on December
third, as shown by the Bishop, Briss-
man report as $169.e23.02. Now, un-
der the 1919 special SESSION, you
would take e cent of that
would you?
Q. Now, then, that would be seven
per cent OF the time deposits?
A. Yes, sir.
@. Now, then, in order to find the
total reserve required under this law,
you would have to add the seven per
cent of the time deposits to the ten
per cent of the demand. deposits?
A. Yes. >
q. We'll addxthose and let us SEE
A S1,524.764.64.
O. As I take 1t. you would deduct
It from the amount Of money
A. We have very few correspond
! emit banks to examine. Our state banks
very few of them act as correspondent
banks, for our state banks.
@. Well. let us assume that there
is not any deduction from that Al all
~ w
two-ffths of that amount would con.
| sist or should consist under the Law
| Of cash on hand, should it not?
A. Yes SIR. ri
O. Two-ffths of the reserve thai
you refer to should consist Of cash or
hand?
A. Yes. sir.
Q. Well, two-ffth would be fort,
\ per cent? ~
Yes. N
Q. Forty per cent Of the amount 70,
much?
A. ss0s,s17.s5.
Q. Then on the third day Of De
cember, the Bank Of North Dakot, Il
have had it's cash reserve up to tn,
requirements ofSthe law should hav,
had on hand $60s.s17.sb?
"A. Yes, sir.
@. Well, under this report. Mr.
Lofthus, which has been admitted t.
be substantially correct the Bank o
North Dkotas had on hand at that dat.
1 deduction and tell us how far tn.
/ Bank Of North Dakota on Decembe]
third wal below its cash reserve?
"A. $5S3,150.21.
Bank Was Short.
@. In other words, the Bank o.
North Dakota was short in its feserv>
under this statute, ~95s5,15O.22?
A. In cash.
9. They should have had thu,
much moF cash ON hand?
A. Yea, SIR.
Observation-Disclosures Hard.
Ing wrote Representative Longworth
he did not believe he should be grant.