The Ward County independent. [volume] (Minot, Ward County, N.D.) 1902-1965, 1921-04-28
SENATOR BAKER, FRANCIS J. MURPHY
DEBATE STATE BANK QUESTION BEFORE
$500 CITIZENS WEDNESDAY EVENING

the various enterprises to secure fig.
ures. The legislature waited three
weeks for the report, passing no bills
The senate had as much business as
the house to receive the report hi
said. The house committee comprised
nine members, six I. V. AS and :
and selected Attorneys Murphy anC
Sullivan to direct the investigation
Mr.. Baker said he was appointed 9
member of the senate committee ano
attended the house hearing as we'll
The second day of the hearing, it be-
came apparent that questions asked
by the attorneys would help the par
ty in power. The opposition charged
! that the bank was organized to fin
ance nonpartisan institutions; that
money was loaned to banks and
/ friendly individuals and Cathro, dir.
ector general and Attorney General
Lemke were charged with embezzle.
ment.
The l. V. A. convention was held
in Bismarck the second week of the
investigation and some of the mem.
bcrs said it was being held to secure
material for a recall. Plans were laid
to wipe out the industrial program of
North Dakota.
eve took exception to the investi-
cation" he said. Men were asked
questions and no chance given to put
in an answer not favorable to the at.
torneys. You know how a question
can be turned by a skillful lawyer to
make men say what they want them
to say"
Hall, Paindexter and Lemke sat
with the senate committee to ask
questions. Baker introduced reso-
luton that the minority report be
printed and sent out about the state
also that Of the senate investigation
and the Bishop-Brissman report. The
printing has been delayed, but they
will come to be studied at your leis-
ure.
The auditors attempted to report
only on the Bank Of North Dakota.
The auditors were a mixed lot of men
from or states, not certified ac-
count in the whole company. The
plan Of the bank was to concentrate
money in one great bank. 1t has been
used for the benefit of the people of
North Dakota, he said: Six years
ago he rode to Bismarck with the
Senator from this district and they
talked over the needs Of rural
credits bank. Your money heretofore
was deposited with the local banker,
who drew interest as he loaned it out.
In the summer of 1919, following two
or three crop failures, when the time
came to check the money to the Bank
Of North Dakota, it could not be
done. The money had been loaned
out too closely. Bankers met in Bis
marck, a transfer was made on the
books and the money retained in the
local banks to be rcloaned nearly dol
lar for dollar. He said the bank fav-
ored the people of northwestern
North Dakota more than other sec
tions, because they had needed the
most money. One banker told him he
didn't like the plan because the mon
ey cost him 4 per cent besides he
didn't like threat hanging over him.
In Renville county there were eleven
banks and seven have been closed on
account of crop conditions. Renville
county had $l50,O0O.00 more state
bank money than she had coming.
When bank showed it had good Sc
curity, but low reserve the state bank
helped it out. There has been a
slump in business. No farmers can
pay loans. 1t is not a local North
Dakota condition due to politics alone.
We are in the best shape as to our
true value and the debts we owe. The
capital il not the important part Of
the Bank of North Dakota. The
bank has plenty of resources. Min
neapolis banks get five or six per cent
for their money and the local banks
get two or three per cent additional.
That's what clinches the mortgage on
your farm. Its one thing that caused
this fight, getting North Dakota mon
ey at cost, he said. The bank loaned
money to the state industries. Bonds
were issued but never sold in any big
amounts. 1t was not because our
state is Bolsheviki. Our bonds are
too good. We pledge the whole
state as security. It is agreed they
were not sold because of the litiga-
ton by certain people of the state,
the committee Of AZ. By the time the
u. S. supreme court had decided the
question, there was a delay in the
sale Of bonds. Deflation set in max
ing it hard to sell them. They are
now selling in good shape and in two
months the frozen assets will pass
away" He said that last summer,
had the money not been transferred
from one fund to another, the state
u, A. C. and two Normal schools
would have closed.
The speaker said he is subscriber
to clipping bureau and one day re-
ceived 1872 clippings concerning the
state and Of that number 12O DETAINED
North Dakota, with only IL decent
ones. He charged most Of the de-
famatory reports are copied from the
Fargo and Grand Forks papers. Men
read one side Of the question and get
the notion that something is wrong all
the time. He stated the Bank of
North Dakota assisted needy banks
regardless Of politics. In Renville
county, out Of the II banks there was