The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-01-19

year approximately $4,000 as its
contribution to the Guaranty Fund,
something more than two per cent
upon the capital stock of the aver
age bank. Any increase in the rate
of assessment against banks for this
Fund would only have a tendency to
drive them into the Natl onal system
or liquidation, thereby reducing
sources from which Assessments
could be realized.
"There has been received from as
sessments and otherwise since the
date the law was enacted, $793 ,84S.-
48; $14,629.22 has been returned to
banks in adjustments Of asse ssments
$24,402.S1 is in banks now closed;
$2341.99 has been advanced to re-
ceivers; $7266.8l has been used for
expenses; $171, 464.O3 has been paid
to dcpositors, leaving 1913, 1882 now
deposited in banks within the State,
operating under the system, de-
tailed statement Of which is attach
ed herewith and made q part here
of.
"By the enactment Of this law, as
it is worded and as it was adver-
tised, the public was induced to de-
post money in state banks under
the belief that the deposits were
guaranteed by the State itself, and
this belief is very general today.
Lacks Authority
"The Guaranty Fund Commission
is supposed to have some authority
to supervise closed banks, but the
law was so crudely drawn and is SO
conflicting with the laws governing
the duties of the Banking Board that
adequate and complete supervision
has been impossible. The law gives
the Banking Board the power to ap-
point a receiver, so-called, and else
where says that the Guaranty Fund
Commission shall supervise the Ii
quotation of the closed banks and
for that purpose may appoint sup
ervisor Of receivers. Any receiver SO
appointed and supervised is useless,
"The Guaranty Fund cannot with
draws from bank in failing circum-
stances, nor can it interfere, or in.
vestigate bank that refuses to con-
ducts it's business in a produlent man
ner or carry out the orders Of the
State Examiner. The situation is
that deposits in sac banks are guar
anteed and promised to be repaid by
assessmets upon the remaining state
banks, yet the guarantors have moth
ing to say about the conduct, condi.
tiOn or methods of such banks. The
state banks by law are compelled
to go into partnership with other.
over whom they have no control ant
for the delinquencies of whom they
are made responsible. 1t is eminent
ly unfair that they be not allowed
to cause an examination to deter
mine whether they are safe in con
tinuing or to withdraw as guarantol
from any bank Of this class.
OF Deep Concern :.
"The matter of winding up som,
of the closed banks has been ont
OF deep concern and much thought
and work on the part Of the Com
mission. Realizing the fact that man,
of their assets were of little value
| S"oS viz SAPCHoS u Vic IcCelVeOSnlD!
was absorbing all that Was bein,
realized from collections, the Com
mission has been working TO
months to find some way to dispos,
of these closed banks and determin,
the real loss, but it was not only
difficult to interest purchasers, blu
when one was found who wa
interested, was as difficult TO
ourselves as we'll as for tn
Banking Board to finally realize tina
sales should necessarily be mad
at what on it's face seemed to be
great sacrifice. Finally, by combi
nation Of circumstances, one cas-
was taken before the District Cour
in Grand Forks County and it wa
there made evident that the power
of the Banking Board, the Guarant,