New-York tribune., 1921-02-17
Bankers Won't
Handle North
Dakota Bonds
Nonpartisan League Offers
10 Meet Drastic Terms
of Financiers, but They
End All Negotiations
Risk Too Great, They Say
Faetional Difficulty Adds
TO Townley's Troubles;
Tries to Save Party Wreck
spectal pl.batoh % qhe rrih,l,.


MINNEAPOLIS, Feb. 16. - Nagotia-
tlons for the sale Of North Dakota
State bonds by Minneapolis, ST Paul.
Chicago and Eastern banks have been
dropped, and A. C. Townley and other
representatives Of the North Dakota
government have left the Twin Cities
convinced that for the present at least
there is no chance to fioat the bonds.
Bank and trust company officials
came to the conclusion that under pres
ont conditions they did not want to
undertake the sale of the North Dakota
bonds to the investing public for the
following reasons:
Doubts expressed as to the validity
Of the bond issues.
The fact that the bonds already
issued but unsold have been checked"
about in Chicago and New York by
irresponsible individuals and have been
discredited among investors.
Back Of these reasons lies another
The banking interests feel shat the
public would not take willingly to
North Dakota bonds under the present
governmental conditions in that state
but the bankers are unwilling to be
placed in the position of trying to
dictate to the people of North Dakota
how they shall be governed.
Factions Add to Difficulty
An additional reason is the intense
bitterness displayed by the two fac
tions at Bismarck, indicating that an
agreement between them on any kind
of n program is almost impossible.
Minneapolis bankers who have sat
IN the conferences would make no
definite statement tonight. They ad-
mitted that the transaction is off for
the present at least. It may be re-
opened, but there is no immediate
prospect OF resuming negotiations.
Townley now faces more trouble in
his own camp, where he opposed his
former lieutenant, William Lemke, in
caucus ten days ago and met defeat.
H prevailed later on Lemke and other
leaders of his North Dakota organiza-
tion to let him try to find market for
state bonds on the terms that once had
been offered by the North Dakota
bankers committee. These terms, III
yolying liquidation of the Bank Of
North Dakota and n partial -abandon-
ment Of the leagues industrial pro-
gram, Townley told the bankers here
he would undertake to put through if
they would take the bonds.
Bankers Renege on Own Terms
! Even on their own terms the bankers
now have decided they cannot under
take to underwrite the securities of
North Dakota. So Townley returns to
confess failure and to do what he car
to save something out Of the wreck
On getting in touch with Chicago and
Eastern financial men this week, local
bankers were surprised to learn that a
former North Dakota banker now dis
credited in that state had been offer
ing the North Dakota bonds in Chi
cago. Another man, formerly connected
with the League Bank at Fargo has
been crying them in New York Buyers
were unwilling to touch them on any
kind of terms.
1t is significant commentary on
| North Dakota's situation that recent
efforts to borrow money for the state
at 8 per cent interest have failed, while
! South Dakota sold $5,000,000 of rural
credit bonds bearing 6 per cent interest
/ in Chicago last month at a premium, to
| WELD 81 per cent