The herald-advance. (Milbank, S.D.) 1890-1922, 1921-02-18
N.P.L. RAISE White
FLAG IN NORTH DAKOTA

FLAG IN NORTh DAkUIA
Despite the efforts of the n. F. L.
to avert a final accounting, it appears
certain that they are now in such a
financial crisis that they will have to
yeild to the popular demand that the
Socialistic program be abandoned and
the state he once more put on a safe
and sane basis. Townley has thrown
lip his hands and has for the past few
days heen working with the more rad
ica! members Of the party to get them
Is accept the proposal of the Minnea-
,pclie1hankers that the state be bonded
For $4,000, 900. This agreement can
be reached only on condition that such
propositions as the state bank, the
horne builders association and like
Socialistic ideas be abandoned to which
state leaders are opposed. Lemke,
who was elected attorney general, and
who is the "boss" of the league in N.
Dakota, has held out against this pro-
cram, as it would mean not only his
political but also his financial finish.
The Scandinavian American bank,
which was closed last winter by Lang.
cr, who was then attorney general,
and declared insolvent, has been clos
t,d by orders of o. r. Lofthus, also a
league boss, and who has now thrown
up the party program. The hank has
liabilities amounting to about $780,
900 half of which is due the state.
Below we give excerpts from ac-
counts Of the "war:"
The Scandinavian American bank of
Fargo, has been controlled by Town
iey's organisation for two years and
half. Money was borrowed to buy
stock control and the stock has been
used to float large quantities of "pa-
per" for the league enterprises and
the state his bolstered it up BY large
loans, redeposits and re-discounts.
The investigation by the house COM
mittee shows that Dee. 3, 1920, this
bank owed the Bank Of North Dakota
sa34,O19, while all the other hanks in
Fargo had only S5S.456 of net indebt-
edness of the state bank, all in re-
deposits of public funds.
This contemplated surrender by the
Nonpartisan league is a bitter pilf for
its leaders. They have balked for
weeks at taking it, but events of the
last few days at least have made them
eager for their medicine. Among the
things that have made the surrender
appear a welcome relief to the Town
ley organization are these:
The Bank of North Dakota, deposi-
tory of state and local government
funds. is unable to get cash to supply
current government expenses. Most
of rs funds are "frozen" in a long
time credits. Still more of the money
il, tied up in banks. where the state
bank cannot get it because the state
in turn owes counties, municipalities
and school districts.
Bank conditions have been growing
worse daily, rapidly bringing on the
time when the Bank Of North Dakota,
no longer a commercial bank in any
sense. will be absolutely "brcke" and
the state will stop payments entirely.
Terms which Townley and other
representatives of the state admins
tration of North Dakota have under
taken to put through involve the fol-
lowing acts by the legislature and
state officers:
Legislation curbing the arbitrary
powers of the industrial commission"
and putting the state financially on a
sound. old-fashioned basis.
Liquidation of the Bank of North
Dakota.
Safeguarding of the funds derived
from the new bond issue, so they can
not he used for the Nonpartisan
league or any OF it's enterprises.
Reorganization Of the state bank
on the basis Of a rural credits bank,
like that in South dakota.
Winding up the affairs of the Home
Builders Association.
Other assurances will be secured to
satisfy the financial interests that in
coming to the rescue Of the people of
North Dakota, they are not promoting
the interests of the socialistic mach
inc that has had the state in its grip
for four years past.
Evangelical Meetings.
On next Sunday evening the Metho