Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-07-12
OTHER CHECKS REFUSED.

The bank also has turned down
a check for the payroll of the Val
ley City Normal school, and nu-
merous checks of the state treas
urer to county treasurers for the
county's share of the state school
appordonment fund. Among the
apportlonment checks which have
been turned down are those sc
Burleigh, Morton, Stark, Ward.
Stutsnan and Cass counties. ac-
cording to information obtained
from the state reasurer's Office.
Although the checks are being
turned down daily the state ueas-
urer has large balance III tlle
Bank of North Dakota. there be-
ing $2S2;llo.s1 in the general
fund alone on July /.
70 help relieve the situation State
Audltor Poindexter is holding many
olils before issuing the warrants. In
response to question he said that
some bills which were not REGARDED
as pressing were being held.
Bond Sale Too Slow.
Bond money is not coming in fast
enough to meet withdrawal. =. 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.. Cathro said. He
did not know Of the specific case of
the Agricultural college check. but
sald the situation was general.
The bank in some cases is making
partlai payments on checks, Mr. Cath
ro sald, II the holder is willing to wait
while for the balance This has
been done in several instances.
Bonds to be Issued.
The proceeds of the bond sales are
being placed in the Bank of North Da
kota and used to meet demands on
the bank. The total amount of bonds
sold is not known. Yesterday the state
auditor prepared a letter certifying to
the fact that there are real estate
mortgages on deposit in the state
treasurer's office, and that the indus
trial commission is 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 within the next two or three
months the bank would find itself
able to meet all its obligations as
enough bonds would be sold by that
time.
The bond sale campaign, which ha.
oeen concentrated in the middle west
and east, also is being carried on in
states west of North Dakota. Mr..
Cathro said there was no western Of
flee but that solicitors are selling
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
$l,2S5, ,661.e5 have been assigned to
the state treasurer.
In New York the Bank of North
Dakota, acting as selling agent FOR
the bonds ran into snag in the state
law which required all bond selling
agencies to be licensed. To obviate the
necessity of taking out 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 Dako-
ia, Mr.. Cathro said. No license "a
needed for the state.
Counties Hit.
Reports reaching Bismarck indicate
that many complications have arisen
in various, counties through the in
ability of the Bank Of North Dakota
to meet its obligations. When Treas
urer Charles B. Carley, Of Emmons
county, received a check for se,s13.80
for the county's share OF the state
school aid. he deposited the check N
lonal bank and it went through the
regular channels for collection from
the Bank of North Dakota. Treasurer
Carley. according to information from
Linton, issued checks to approximate
ly 80 school districts for their share
Of the apportionment. He later Re-
ceived telephone message from Bis
marck that the Bank of North Dalso-
ia had refused payment on his check
and it took him all one morning to
call various places in Emmons county
and stop payment on the checks he
had issued as county treasurer. Many
school treasurers were notified they
would have to hold the county check
OF return it. et8