Willmar tribune. [volume] (Willmar, Minn.) 1895-1931, 1921-10-26

ments supporting the policies adopt
ed by it's management, are included
only when It is necessary from time
to time to set forth the position and
policy of the Bank, In order that the
people may know how It Is adjusting
its services for the carrying out OF
the purposes, for which it was Great
ed. III r.. i, - - ,ess>S %.@ -
The Bank is now facing crisis
which clearly justifies the manage.
ment in ADDRESSING the people of North
Dakota directly with regard to it's own
affairs An election has been called
at. which the people are asked to vote
whether they shall continue the Bank
in existence or whether they shall de-
stroy it.. The management of The
Bank of North Dakota therefore feels
that it is justified in ,refuting the
charges made against it, so that the
people may vote intelligently in de-
Gliding whether or not the institution
they have created shall be retained. +
Charges Refuted !:
The charges against the Bank OF
1NUFLu D<1AOLd, OA dCCOuuI VI "ulSd1
the people are asked to abolish it,
are
1. That it has been unable to OBJ
tain credit for the carrying on of the
industry and business of the state,
or to sell the bonds issued for the re-
placement of funds used for that pur'
pose and for the financing of the
state industries;
2. That it has diverted funds of
the state deposited with it to unnec-
essary or unlawful purposes;
3. That it has made loans on in
adequate security, and has redeposit'
ed money in banks SOME of which
have failed and others of which are
unwilling or unable to meet their OBJ
legations;
4. That it has shown favoritism in
the distribution of loans and redepos'
it's to banks and loans to farmers;
5. That it has allowed farmers to
default in the payment of installments
on their loans:
Has Secured Outside Money
The conclusive answer to the first
of these charges is found in the fact
that The Bank of North Dakota has,
during the last year, borrowed ST.
100000 outside of the state, which it
has used in providing a, measure OF
relief to the chief industry OF the
state, which has suffered so tremen-
dously from the slump in farm prices,
due to credit restriction; and in the
further fact that the Bank has sold
Sc, 100000 of bonds, cash having been
received for $2;200,00O. The remain
der will be paid for as fast as farm
loans can be closed, the mortgages as
sembled and the bonds prepared and
delivered, which amount is more than
sufficient to replace all it's funds used
for making farm loans or loans to
state industries.
First Attempt to Wreck Bank Failed
There is absolutely no foundation
for the second charge, it being based
wholly upon the absurd proposition
that the Bank must keep every depos-
it made in it in cash. The Bank has
made loans to farmers out of it's funds
as permitted and directed by the bank
law. 1t has made loans to state in
dustries under full authority OF the
law. It has redeposited such funds as
it had available for that purpose In
local banks, or has loaned them to
banks, in strict accordance with rec
ognized banking policy, and in order
to secure the most effective and ben
eficial distribution of it's credit re-
sources. Had it not been for the
enormous liquidation forced upon the
Bank by the untimely amendment to
the Bank law last November, it would
at all times have been able to meet
all demands of public treasurers. nv
en- while liquidating over $7,O00,0o0
of public funds in period OF less than
nine months, it was never more than
two hundred thousand dollars short
of paying every demand of public
treasurers, even tho many OF SUCH
demands were made for the purpose
of transferring public funds from the
Bank of North Dakota to other banks,
contrary to the apparent intent OF the
law. The Bank was never unable, ana
at no time refused, to pay checks
drawn on private accounts. The Bank
is now paying all remaining register.
ed checks and meeting all demands OF
public treasurers.
The charge that the Bank showed
favoritism in it's distribution of loans
and redeposits to private banks is alb
surd on the face of it, from the fact
that it had money in over eight hun
dred banks, while the total number OF
banks in the state is but little in ex-
cess of nine hundred. A list OF such
banks, showing the amount of money
each had from The Bank of North Da-
kota, will prove conclusively that the
bankers opposed to The Bank OF
North Dakota have been treated as
well as the few who have been friend
~ to it. The truth is that a great ma
tority of the banks have been un'
friendly to The Bank of North Dako'
ta.. It follows that the greater part
of the loans and redeposits of The
Bank of North Dakota have been
made to unfriendly banks.
The charge that favoritism has been
shown in the making of farm loans
is equally without foundation. 1t
could hardly be expected that the
Bank would single out the compare
lively few farmers who are opposed
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