Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1921-07-14
PAY ROLL 0FA.C.
RETURNED BY BANK
OF NORTH DAKOTA
Sale Of Bonds Fails to Keep
Pace With Drain on Bank
Valley City Normal Pay
Check Turned Down
State Treasurer HELPLESS.

Check Turned Down ~
State Treasurer Helpless.
Bismarck, N. D., July 12. Especially
The sale of bonds not having kept
pace with the drain on the Bank of
North Dakota, the bank now finds
itself unable to pay various obliga-
tions of the depositors, including
the state treasurer.
Checks of all kinds are being
turned down by the bank. Yesterday
check for $11,O17.23, being the
payroll of the Agricultural College
at Fargo, was returned to the state
treasurer, with the statement of
Secretary McArdle of the college that
the Bank of North Dakota had not
paid it. The state treasurer was un-
able to help the situation A warrant
for the payroll has been sent to the
secretary who obtained a check from
the state treasurer and sent it thru
Fargo and Bismarck banks to the
Bank of North Dakota. It was re-
turned. ...
The bank also has turned down a
check for the payroll of the Val
ley City Normal School, and numer-
GUS checks of the state treasurer to
the county treasurer for the county's
share of the state schol apportion-
ment fund. Among the apportion-
ment checks which have been turned
down are those of Burleigh, Morton,
Stark. Ward, Stutsman, and Cass
counties, according to information
nj IN nd of H$o <~1 .Sn
office.
Altho the checks are being turned
down daily, the state treasurer has
large balance in the Bank of North
Dakota, there being $2S2,110.S1 in
the general fund alone on July !.
To help relieve the situation, State
Auditor Poindexter is holding many
bills before issuing the warrants. In
response to question he said that
some bills which were not regarded
as pressing were being held.
Bond Money Slow
Bond money is not coming in fast
enough to meet Withdrawals, F. w.
Cathro, director-general of the Bank
of North Dakota said. The Bank of
North Dakota is meeting all the OBJ
legations it can, Mr.. sCathro said, He
did not know Of the specific case OF
the Agricultural College check, but
said the situation was general.
The bank in some cases is making
partial payments on checks, Mr..
Cathro said, if the holder is willing
to wait while for the balance. This
has been done in several instances.
The proceeds of the bond sales
are being placed in the Bank
of North Dakota and used to
meet the demands on the bank. The
total amount of bonds sold is not
known. Yesterday the State Auditor
prepared a letter certifying that
there are realestate mortgages on de-
posit in the state treasurer's office,
the industrial commission preparing
to issue $4,000 bonds of the real
estate series.
The bond sale is progressing, Mr..
Cathro said. He said that he believed
that in the next two or three months
the bank would find itself able to
meet all obligations.
The bond sale campaign, which has
been concentrated in the middle west
and east, also is being carried on in
states west of North Dakota. Mr..
Cathro said that there was no west
ern office but that solicitors are sell
ing bonds in these states. The bond
sale has been concentrated on the
real estate series. Mortgages of the
Bank of North Dakota to the amount
of $1,235,661.85 have been assigned
to the state treasurer.
Strike Snag in New York
In New York, the Bank of North
Dakota, acting as selling agent for
the bonds, ran into snag in the
state law which requires all bond
selling agencies to be licensed. To
obviate the necessity of taking out a
license the Bank of North Dakota
withdrew from the New York office
and the bond campaign there now
is. carried on in the name of the
State of North Dakota, Mr.: Cathro
said. No license is needed for the
state.
Many Complications
Reports reaching Bismarck indi-
cate that many complications have
arisen In various counties thru the
inability Of the Bank of North Dako-
to. to meet its obligations. When
Treasurer Charles B. Carley of Em-
mons county, received q check for
$6,913.8O for the county's share Of
the state school aid, he deposited the
check in the local bank and it went
thru the regular channels for cOllec-
tion from the Bank Of North Dakota.
Treasurer Carley, according to In
formation from Linton, issued checks
to approximately 80 school districts
for their share of the apportionment.
He later received q telephone mes
sage from Bismarck that the Bank
Of North Dakota had refused pay
ment on his check and it took him
nearly all one morning to call
places in Emmons county and stop
on the checks he had issued
as county treasurer. Many school
were notified they would
have to hold the county check or
return It. 3.5
VI Babe Ruth and Meusel knocked
5sARI