The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-06-18
Nonpartisan League Has
Lineup for Determined
Fight in Fall
IS FRENzIED FINANCE
Warning of North Dakota's
Muddle Passed as Not
Pertinent

palota are preparing to fight TO a
golsn lt the polls in November. The
,ronossd law for the establishment
A ~ ofbe Bank of South Dakota" is
Y'bcfnc backed by the South Dakota
ovaprh OF the National Farmers
N kpar.isan league, which had the
mster called to a vote by initiating
a law designed 10 authorize such u
hank ,his action being taken under
nroyis.0u- Of the initiative and refer
snaum amendment 20 the state con-
sl-uti0u.
The initiative petition having sc
curoi tho legal number OF sigma
,uras tho last legislature was COM
pened 70 submit the proposed law
10 the voters
Blchors OF tho proposed measure
claim 70 will take she farmers OF
South Dakota from the grip Of the
money kings" and place the finan-
cal affairs Of the cities counties and
The state in the hands of the people,
thus giving the people controYof tho
money accumulated in the state.
Some Of the nonpartisan league
supporters contend that the Bank OF
South Dakota would be a panacea
for an the evils within the state in a
financial way.
.Thc proposed law providing for
Establishment of the Bank of South
1kota is created somewhat on the
lines Of the North Dakota statute
!. ,sh,ch provided for tho Bank OF
North Dakota. The workings of the
Bank Of North Dakota were much
in the public eve n few months ago.
when more than two score OF the
banks In North Dakota failed.
Financial Interests Scored.
Noupartisan league members crit
ieize the means that have been en-
ployed by the present financial insti-
iutiOns OF South Dakota to preserve
South Dakota from bankruptcy dur
ing the period of postwar recon-
sruc.lon, and, Notwithstanding the
disastrous experiment made in the
state Of North Dakota with a similar
Institution, the support of men who
arc willing to undergo any part of
experiment as means OF expressing
their animosity toward existing fl
nancial institutions is being sought.
The proposed law provides for the
establishment OF the industrial COM
mission of South Dakota, which shall
consist of the governor, the attor-
ney-general and the state auditor. |
To This commission shall be assigned
the duty, responsibility and power
70 operate, manage and control the |
Bank OF South Dakota.
Inc proposed law provides that |
the capital of the Bank of south |
Dakota shall be 100000, which
amount shall he secured by the sale
OF bonds Of the state of South Dn- !
kota in that amount. These bonds |
shal be payable in not less than 10
nor more than 80 years from the |
date Of the adoption of the law. |
they shall bear interest not to ex-
coed per cent, payable semian- !
huaIy, and shall be exempt from |
al state, county and municipal tax
es Of all kinds.
Those opposing the proposed law |
assert that -.hOuld the state of South |
Dakota sell it's bonds in the open |
market and with the funds so So
cured establish the capital OF the |
bank OF south Dakota, which insli-
Alon would then solicit deposits, |
ana with the deposits so secured |
Itpurcnase from the original pur-
ehasers the bank bonds of South /
Dakota, there would be an institu-
non without capital, but with i'm
mediate liabilities, the failure to |
meet which would mean to South
saNuta lust what the failure Of /
Bank Of North Dakota TO meet
ls obligations meant TO North Da-
Aota, ruined credit.
Backing of State.
II Is admitted by opponents of
me measure that the credit of the
hdte would be behind the bank to
the extent Of the state bonds held
ny the banks, but, they contend,
Y would be a credit that would not
%come available through the col
etuon Of bonds for period of
years
- ~ Is argued by these opponents
Ilat lha difficulty experienced by
Ae Bank OF North Dakota in dis
posing Of the bonds issued for its
yahA should be witness enough to
~ voters OF South Dakota of what
GlHCl4tE they would encounter
s.!lld they in times of financial
auVsa a.a sueh as South Dakota and \
fAVI states have experienced dur
IN past two years attempt to
M " me open market the bonds
4 G ar5S. Sy me Bank OF Souts Dakota
e called of the Bank of south
,DaAo'a 10 is asserted that the his
ot every financial institution
~ tthe United States which has per-
.seu ana practiced accepting
SSo.es ana bonds for capital stock
T5 cueen one of failure.
q me proposed law makes pro-
g51lon Tor &ing the people to pro-
90 0e lof the deficit in the payment
uiHleIyat on tho bonds which
sa,A aA De sold for capital The
e ~ YAK commission is made re.
FVIs'oi' for levying "A general tax.
ay. Sus same manner in which other
n arc levied, for the purpose
n, 3sHag the interest on these
Isss1 This, opponents of the
a. declare, is a confession
Sstt me Iramcrs of the proposed law
Po,. Pr' 'Aey fear in advance that the l
hiiMHs Ol south Dakota might be a
ha, Is provided by the proposed law
- 1V'o petition of 80 per cent
giitiae electors of any city, and Il
Z, ,,.l m ihrco months after the filing
Son,s petition, the Bank OF |
ban1L Dakota shall establish |
alsa hl.nk in that city il may
n establish such n branch bank
elee,oyy. e'iy without petition of the