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

8sS Nhesd decrease a1nst the deposits OF ma
tional banks IN North Dakota during
the sameperiod was $9,O19 900; fs
Making total decrease OF bank de-
posits for the year Of $A ,591 1872
Subtracting from this figure net
Increase IN bills payable, represent
ing money borrowed from outside the
state, we find that the. money In
North Dakota banks available for Gre
dit accommodations to support the
industry and business of the state fell
of approximately $40 100000 during
the last year Loans and discounts
decreased a little over $28,0OO,0 SO
that the banks were Internationally
Debated even more drastically than
they Debated credit to the industries
OF the state,
Bank OF North Dakota Increases,
. '#sze1E&s +. ;:5s:5.ss** Credit 49, -.
During the; same period the indi-
vidual deposits in The Bank of North
Dakota, mostly from outside the
state, have increased nearly a half a
million: During the year the Bank
has borrowed a million and seven
hundred thousand, having repaid a
loan of $1,O00,D00, and subsequently
negotiated loans amounting to $780,
900. Meanwhile, it has sold $780,.
600 of bonds Of the state, issued for
the replacement. of funds used for the
making of farm loans and for the fl
nancing of; state industries. So that,
not only will all funds alleged to
have been permanently frozen" be
replaced but the Bank has actually
brought into the state over 100000
while other banks have sent out ap-
proximately $4o,00O,00O.
"A Safe and Conservative Policy
In view of the financial situation in
North Dakota during the last year,
The Bank Of North Dakota would have
been justified in straining it's resour:
ces somewhat, in order to increase its
credit accommodations to the people.
But the fact that it has been able to
secure this amount of outside credit
in the face of the most determined op-
position of hostile interests with so
little inconvenience to public depos-
itors, and none at all to private de-
positors, shows that up to the time
of the going into effect of the Initial
ed public funds law the Bank was
pursuing a very safe and conservative
policy. If that law had not been en-
acted and the Bank had been left as
the sole depository of all public funds
in the state, it could with entire safe
ty still further have expanded it's
loans, and undoubtedly would have
done so. If the Bank could carry over
$4,000, 600 in loans to farmers and
state industries, and 100000 as re-
deposits and loans to banks, with the
sale, until recently, of only about one
and a half million of bonds, what
could it have done if all public de-
posts had remained in the Bank, and
all bonds authorized had been sold,
as they undoubtedly would have been
sold, except for the obstructive cam
paign> that has been waged against
the Bank and the state industries?
The Legislature authorized the is
suance and sale of $19,00O,000 Of
bonds, $4,000, 900 of which were real
estate bonds. II all Of these bonds had
been sold, $1O,0O0;O00, instead of $3,-
900, 900, of real estate loans would
have been made, and the remaining
$9,0oO,000 would have been added to
the credit, resources of the state.
Assuming that the public deposits
would have enabled the Bank to con-
tinue~ to carry, the more than $12'O00,-
900 of loans and redeposits, in local
banks which it was carrying in Sep
tember year ago, the Bank would
now have been supplying $1O,OOO'O00
of longtime credit to the farmers,
and $12,00O,000 of accommodations to
local banks, supported by public de-
posts. That is, The Bank of North
Dakota would have been able to make
up more than half of the credit that