Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1921-07-21
MAY ATTEMPT TO
FLOAT TEMPORARY
LOAN FOR BANK
Rumors as to What
will Be Done to Enable
State Institution to Meet
Pressing Obigations-Tak
of Receivership.

Bismarck, N. D., July 14-(Spe-
al)-No indication that Governor
Frazier or other members of the In
dustrial Commission will return to
Bismarck from speaking tours to con-
slider the condition of the Bank Of
North Dakota has been received here.
There have been reports in capitol
circles that an attempt might be
made to float a temporary loan to
enable the Bank of North Dakota to
meet the demands upon it.
There also have been reports that
a receiver might be asked for the
bank. Many financial men and men
familiar with state conditions believe
that it would be great benefit to
the state to have the bank closed,
but hesitate about taking any action
along that line because the bank is
so deeply involved in politics.
Nervous Over School Funds
Thomas Hall. secretary of state,
said today that he was getting ner-
vous about the tie-up of funds of the
board of university and school lands.
of which he is a member. in the
Bank of North Dakota. However,
the majority of the board members,
who are Gov. Frazier, Attorney-Gen-
eral Lemke, Auditor Poindexter.
State Supt. Miss Minnie Nelson and
Mr. Hall, are out of the city.
Mr.. Hall called attention to the
provision of the constitution which
says, with respect to- the school lands
and funds: ''The principal Of every
such fund may be increased but shall
rouor ho IN icho1 on1 tho infoy-
est and income only shall be used.
Every such fund shall, be deemed a
trust fund held by the state. and the
state shall make good all losses
thereof" .-.
The interest and income from the
Investments of the board are divid-
ed among the schools of the state.
The total investments of the board
of university and school lands are:
bonds. $11,75O,2O6.47; farm loans,
s6,655,669 total $18,405,875.47.
The total income is about $1,500,000
a year. Recently checks for $685.
900 were issued by the treasurer on
the fund derived from this income
and interest, and also from fines,
and the Bank of North Dakota is
turning down these checks. Should
the bank proceed to get in deeper
than ever and fail to make good for
the money deposited in the bank the
taxpayers must make good the deficit.
Lawyer Attempts Collection
The Bank of North Dakota is pay
ing as many warrants and checks as
it can, apparently without any set
rule at this time. An unusual pro-
cedure nstate financial history was
witnessed here when local attor-
ney went to the Bank of North Da-
kota endeavoring to collect cash for
a state check 1t is said to be the
first time a lawyer has ever been
hired to collect a check issued by the
state.
Many public treasurers who feel
the effects of the banks position have
been in Bismarck. The treasurer of
Burke county, Nonpartisan county,
was in Bismarck yesterday to con-
suit with officials. He is understood
to have about $4,000 in the Bank
of North Dakota and he owes the
state treasurer about $4,000 for hail
insurance tax collected. The state
treasurer has endeavored to get the
money so that some hail warrants
might be paid. ~