, 1922-01-16
scRAMBLNc STATE FINANCES.

The source from which to get tho actual facts with
reference to the operation Of the non-partisan league
n North Dakota is the North Dakota newspapers
They tell the truth about it And 1t was not only the
truth about it but the experience with It that brought
the people Of North Dakota to their senses and moved
them TO recall the non-partisan league state officials
end 70 repudiate the whole impossible scheme. II the
PEOPLE Of other states desire to have their public at
fairs mussed up and tangled up until no man knows
head and tail OF things let them follow the example OF
North Dakota, They must, however, be willing TO
accept 4 similar financial loss and TO be cheerful about
starting all over again.
As an example Of the crimes against fiscal affairs
the following taken from the Fargo IN. d. Forum Of
January 2, is for perusal by those con-
templating association with the league:
Actual conditions in the Bank Of North Dakota
ore just coming TO light. Some mixing OF the true
state Of affairs is given by the first reports Of the new
manager, but the full truth will not be known until
the complete report Of the Bishop Brissman company
is published. This firm of auditors is now at work on
the books, but meanwhile the new management is fol
lowing the old system of reports with the exception
that it is not attempting 20 conceal the facts but IS
permitting them to come to light.
1.-THE facts are proving to be exactly what The Fo-
rum has represented them for months past In fact
The Forums statement of them appears quite con-
serv6tive.
.For example, this months statement admits that
1900, goo Of the banks funds are in closed banks in
the form of loans and r~edeposits. The Forum esti-
mated the amount in closed banks at about 81 ,AOO, 900,
but the former management of the Bank of North Da-
kota never would admit in its reports that one dollar
was 90 tied up. 1t carried these items at their face
value, and ignored them in figuring profits
''The bank also faces an item of Approximately
$40, 900 in discounts and commissions on bonds which
must be am%ortized, and which cannot be collected in
full for at least 80 years.
"The losses that will be sustained on real estate
loans are still unknown but by far the greater num-
her Of these loans are now in arrears and the loss
may easily run into hundreds of thousands of dollars.
"The absurd manner in which the individual de-
posts item was padded is shown by the fact that it
has shrunk from more than 100000 to less than
s25, 900. The old management was carrying various
items under this heading in order to make it appear
that the bank was getting a great number of individ-
ual accounts. The guaranty fund was one of these
items.
''Tho condition of the bank might be summed up
in the statement that state, county, school, township
and village funds to the amount of about 100000
have been tied up in real estate loans, advances to
state institutions such as the mill and tho homebuld-
era department, and in loans and r~edeposits in banks.
The state institutions have about 81 $50, 900 and the
banks about $4,000, 900 all told, of which 81, 500, 900
is in bankrupt banks. The rest of the public money
is in real estate loans and in correspondent banks.
"Thc problem before the new management is to get
back the money advanced to state institutions through
the sale Of bonds; to work out the real estate loans
with the smallest possible loss; and to secure the
money tied up in bankrupt banks or take steps to make
it good.
q. is going to be a long process and ultimately the
Taxpayers will have to foot a very substantial bill
which can be charged up to experience. What the
bill would have been if the old administration had been
permitted to run hog wild for another two years, no.
body can even guess"