The Glenwood post., 1921-03-26

loans made by the Bank Of North Da-
kota on farms for thirty-year repay
ment approach $2,5oo, 900; the remain.
der of the bank 8 assets, given rs $14,-
100000 in its statement, are redeposit-
ed and loaned to several hundred banks
in, North Dakota. If these banks could
repay the Bank of North Dakota, that
institution would be nearly $5,0O0,o0O
short of being able to meet the de-
mands of its depositors, complete ref
utation of the claim that If the private
banks would only loosen up and repay
the state bank it could pay out.
Sinking Fund Not Provided.
Sale of the bond issues that have
been authorized would tend to relieve
the situation, but the bonds seem to be
unstable. Nobody in. the United
States seems to want them, a circum-
stance that the Nonpartisan League
claims is proof of Wall Street coll
spiracy against the "people's bank. >
Bond dealers to whom the bonds have
been offered point out that there is
no assurance that the Bank of North
Dakota or the state treasurer would
collect and keep intact interest and
sinking fund for the bonds. They say
that if such fund were collected, there
is no law to prevent the management
of the Bank of North Dakota from
lending the money to farmers or from
expending it in the erection of more
-four mills or homes. Suggestions that
the Legislature pass statutes forbidding
the dissipation of bond interest collec-
tions are denounced as the effort of
Wall Street to dictate to North Da-
kota.
AS a matter of fact, Wall Street does
not care hoot about the little $17,-
100000 bond issues, but if the bonds
were seriously considered by any bond
buyers in the whole country no sale of
them could be consummated until some
precaution of this kind finds its way
into the statute books. Nonresident
bond dealers ask if they have any right
to expect more consideration than the
management of the state bank extends
to farmers resident in the state And
they point to the fate of those farmers
who iost their crops from hail in 1919
and are still unpaid, although the Bank
of North Dakota has been collecting
100000 year from the operation Of
the three cents per acre hail tax. The
hail tax funds were used by the bank
in making thirty year farm loans in
stead of keeping the money intact for
the purpose for which it was collected
Investment bankers who buy and sell
bond issues declare that there is like
lihood of bond interest collections
meeting the same fate from the Social
ist state administration.
The WASHERS in North Dakota
know that there is no vast conspiracy
against the state, but the cry about
Wall Street is the only alibi they can
set up, and they are shrieking it in all
of the Nonpartisan League newspapers
in North Dakota and other states
where the League is trying to jimmy its
way into power. The next best alibi
is the claim that if the private banks
would pay up the Bank of North Da-
kota would pay out, but if all of them
did, the bank would still be many mil
lions shy of having enough to satisfy
its depositors.
In the election last November the
voters, by an initiated law, relieved the
cities, counties and school districts
from the obligation Of continuing to
place their funds in the Bank of North
Dakota. That law received a majority
of about $4,000 votes. So soon as it
became law, the management Of tho
state bank announced that the funds
these political subdivisions had already
paid into the bank could not be drawn
out until the management of the bank
got good and ready to let them, and it
was frankly stated that all counties,
cities and districts that stopped send
ing money in would not get a cent out.
Thus it came to pass that q county
with 100000 on deposit in the Bank
of North Dakota had its check for
$50 refused. The city of Fargo had
,Sl01,00 in the state bank and part of
the sum was money collected for the
retirement of $4,000 bond issue. The
city was not allowed to withdraw $15,-
900 for paying of and cancelling the
bonds, and had to borrow the money
from private bankers, who came to the
eity's rescue to save its credit. The
city of Fargo is hostile IN tho Non.