The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-02-09
FISCAL POLICY
CHANGE MAY BE
PROPOSED SOON
Informal Conferences of Legis-
lators Bringing Situation
Near a Head
COMPROMISE POSSIBLE
Situation With Respect to FL
nancing State Industries
Brings New Attitude

Brings New Attitude
A way out of the financial diff
ficulties now besetting the state
industries of North Dakota is
being sought by some of the
leading figures in the legislature.
Before the session is ended, a
program Of legislation may be
evolved from discussions and in
formal conferences that will
change the present
financial policy of the state.
The situation was brought forcibly
before Nonpartisan leaders in the
senate with the Introduction by Sem
ator Bond of some bills affecting the
policy of the Bank Of North Dakota.
The lowering deposits of the bank,
the fact that the industries are almost
at a standstill and the necessity of
pouring more money into them if they
are to be continued has brought many
legislators to the position that new
policy must be evolved.
The Bank of North Dakota faces
the necessity of paying heavy obliga-
tions in the near futur. 1t has loan
of 100000 due March Is, the school
aid of about $22O,OOO becomes paya-
bic in March, and demands are now
being made on the sinking funds by
school districts and other subdivis-
ions in the state. There have been
reports that receiver would be asked
for the bank soon: e..
The opponents of the bank policy
declare the bank is insolvent. This
is denied by the bank officials. The
problem presented is that Of finding
"liquid" assets sufficient to take care
of the financial obligations and Of de-
velopments. i
Evidence produced in the house in
vestigation has shown that advances
from the Bank Of North Dakota have
been. made in the last few days to the
Home Builders and the mill and ele-
vator association to care for over
drafts or other obligations.
Unless the Bank Of North Dakota
can marshal money the Grand Forks
mill can not be completed. The bank
is trying to do this through sale IF
bonds. Efforts to dispose of the So
100000 in big lots in the east have not
been successful The bank now is Of
fering them in smlll lots, and is
making a drive to sell them. The in
dustries, however, call for great
sums of money t.
One leading financial authority in
the state has told NonpaTtisan lead
ers that the only way to sell the bonds
is to scrap the present plan and is
sue them as an obligation of the state
rs a whole, not as obligations of a
particular industry This authority
declared the states Credit was unim-
paired and that North Dakota, be-
cause she has not suffered an inf1a-
tion and deflation Of land values, is
in a sound position
At the start Of the legislature an
effort was made to have conference
committee work on the situation This
failed, and it was expected that moth
ing would be done However, today
there were many legislators, some of
whom have been active in seeking
counsel and in trying to evolve sue
cessful plan, who take the position
that something must be- done in the
remaining weeks Of the legislature.
For this reason it may be that pro-
gram will come from one side or an
other attempt made to get together
on compromise plan.
Colonel C. B. Little of Bismarck,
was called before one of the league
conferences and asked to express his
opinion as to the manner in which the
situation could be met. He told them
frankly that there was no other way
than to liquidate the bank.
A. c.. Townley, president of the
league, it is reported at another con-
Ference, urged the adoption of the
compromise plan and the liquidation
of the bank He said that the banks
of the state were not bitterly opposed
to the state bank but that the out
side bankers were and that he. consid-
cred it advisable to take this action.
Mr.. Townley's views, declare lead
ers, did not meet with the approval
Of most of the league senator's and
representatives and there appeared
to be a feeling at the meeting that
his decision had been reachd largely
because Of the effect on his work in
other states.
One Of the league senator floor lead
ers, it is reported, was the first to
follow the league president. He lock-
ed horns Immediately. He said that
the farmers of North Dakota wanted
to fight through to the last ditch for
their program.
Mr.. Townley replied that it would
be better to- save part Of the program
than to jeopardize all Of it.
Others then got the floor, but Town
ley insisted on talking much of the
time, which caused another league
floor leader cf the senate to get up and
suggest that the league president re-
frain from debate so as to give the
members of the legislature an oppor-
tunity to express themselves as they
best knew the sentiment among their
constituents.
No vote was taken on the PROPOSE