The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-12-11
RESOURCES OF
STATES BANK
ARE INCREASED
Success in Meeting Trying
Situations in Three Years
Shown by Heads
REDUCE BAD PAPER
Bank Management Pilots In
stitutiOn Through Period
of Small Bank Closures

The Bank of North Dakota. on
December Is, will have been under
it's present management for three
years, and because Of the excellent
record of the bank during that per-
iod it is expected that pressure will
be brought by the majority OF the
Industrial Commission on {. r
Green, manager. to retain the posi-
tion. Mr.. Green assumed the posi-
tion Of manager of the Bank OF
North Dakota on December Is, 1927
following the recall election.
During the period the bank has
been face to face with many trying
situations. particularly in the field
of protecting the tax funds in the
bank with scores Of private banks
closing. The close of the three
year period will find the bank re.
porting a profit in its statements a.
compared to deficit reported by
auditors who examined the bank
when the new administration took
office.
The Bank of North Dakota was at
its lowest cbb about three years ago
with resources listed at about 81
100000. The resources now are
about $ls,5OO,OOO.
Cash resources three wears ago
were about one million dollars. and
now are listed at about 100000 600
The bank was reported to have &
deficit as high as $4,000 in 1922
and in its November 10, 1924, state
ment reports Il surplus of about
$4,000.
Reduce Bad Accounts
During the period the amount OF
redeposits and loans in closed banks
has been decreased. On March TO-
1922, the first Independent statement
of the bank under its new manage
! ment, there was listed S997,903.73 OF
\redeposits in closed banks and $491,- ;
74O.40 in loans, a total of 81 49,
644.13. The statement Of November
Is, 1924, shows this amount has been
reduced ito 81 $l,41S,377.4s. The reduc-
tion of $Sl ,266.65 was accomplished
by the bank in the face of the fact
that upwards of 200 banks closed
during the period, and cons iderable
money which was tied up in them
when Mr.. Green assumed manage
ment Of the bank remained "froZen.'
Some Of the money has been secured
on collateral. 1t is in the final liq-
uidation of closed banks that the
Bank of North Dakota ultimately
will suffer a heavy loss.
One Of the chief tasks Of the pres
ent management was conducting the
farm loan department and protecting
the tax Funds. Reversing loss of
$4,000 and reporting Il profit and
reducing the amount OF frozen"
NJunds, represents IL gain for the
bank Of over $225,0O0 during the
period. Other gains have been made
which are not reflected in the state
ments.
The administration of the bank
was not without difficulty. While
there were appeals from many pri-
vate banks which were tOttering for
funds, the Bank of North Dakota
was faced with the necessity of ad-
vancing huge sums of money to the
farm loan department, with which
loans could be made pending compile
tion of bond issues. 10 do this it
was necessary for the bank TO keep
4 funds in depositaries where they
could be obtained at any time.
Bad Check Situation
One situation met by Mr.. Green
caused some unfavorable comment,
but he believes the protection af-
forded the public money in the bank
has justified the means. As explain
ed by bank officials, if a check were
taken by the Bank of North Dakota
and sent direct to the bank on which
. it was drawn, and that bank closed
in the meantime, the Bank Of North
Dakota was "stuck" for the money,
regardless of the fact that the check
might have been taken for collec-
, tion. Mr.. Green issJ ed an order he
would not accept checks from county
treasurers, requiring drafts, under
which arrangement the Bank of
North Dakota could protect itself.
There was complaint, but the rule
kept, and Mr.. Green asserts there
respect to other classes s-individu
ais, ScnOOI CfcaSufefS, eLc.--Lne TuIe
was not enforced, since theSBank, if
it lost. would lose little. However,
protection was afforded by the max
ing of individual contracts under
which it was agreed all items taken
by the bank were taken conditional
to final payment.
The situation which the bank met
probably will result in recommenda-
ton by Mr.. Green to the legisla-
ture for change in the law making
a bank responsible in such cases. 1t
is held by him unfair to the bank,
and leaving the banks almost help
less.
/. The condition Of collections in the
farm loan department, too, is mat
ter of satisfaction to bank officials,
and they believe that they will be
able to make reassuring report to
bondholders. There is about one
million dollars of loans tied up in
foreclosure proceedings, but bank
(ContinMsd on paSs y