The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-10-14
200 BANKS IN
n. ID. SAVED BY
GUARANTY BODY
CONTINUED from page one.)

Continued from page one.)
was able to prevent the foreclosure
Of thousands Of farmers, and as a
result many more thousands Of
bushels of grain were raised in the
state this year, it is declared.
COncent ration Needed
In this situation is seen by mem
bers of the Guaranty Fund Commits
sion one of the big Qualifications for
which gave the jurisdiction OF clos
ed banks to the supreme court. 1t
would have been wholly impossible
to deal with the situation with 100
receivers and l6 district judges, it
is asserted. With l.. r. Baird as
general receiver of closed banks.
much could be done in this matter.
A considerable amount of the
Guaranty Fund was left with the
individual banks, until it should be
called for, for distribution. Some of
these banks closed. The money
helped others to weather the storm
of financial depression by keeping
up their reserve.
Under the law, also. the Guaranty
Fun Commission could use this
money to protect assets of closed
banks, by Buying collateral.
Under the law, the Guaranty Fund
has first lien on all assets of clos
ed banks, to pay in the assessment
to the Guaranty Fund. Receiver
Baird has recognized this obligation,
and the commission, therefore, will
not have lost money by reason OF
banks closing, it is declared. The
commission acquired some collateral,
and this is being liquidated, so that
it also will lose little, if any money,
in this respect, it is asserted by
members.
Another charge was made that col
lateral of the Bank of New Rock
ford, Sawyer State Bank and Willis
ton State Bank was sold at ridicul-
ously low figures, and that members
of the Guaranty Fund Commission
bought it in for their own use. 1t
now develops that the Guaranty
Fund Commission, according to
members, either bought this collat-
eral itself or had it's agents buy it
, TT conserve it for the defunct banks
and when the general receiver, l.. r
Baird was named, it was all turned
over to him.
The Collateral Sales
Members Of the Guaranty Fund
Commission had steadfastly refused
to enter into controversy over
charges made against it, one membc,
declaring months ago he "didn't
have to prove | am not stealing
| Charges of fraud made long ago
F, called specifically to the attention
of Mr.. Mcmillan, a member of the
! commission few days ago, were
met by a reference to the books OF
the Guaranty Fund Commission
! which shows that the collateral
/ from the three banks at New Rock
ford, Williston and Sawyer, which
was bid in for the commission, was
ember 10, 1923, before many of the
| charges of corruption were made anG
soon after l.. r. Baird became gen
eral receiver. The resolution shows
the collateral was turned over 20
the receiver in return for reimburse
ment on the net value of the in
vestment. Instead of looting the
banks, commission members sag,
they saved the depositors of these
closed banks large sums of mo'ey.
The Guaranty Fund Commission
would like to have been able to buy
up more collateral than it did, when
sales were forced and large block;
OF farmers notes were sold cheapiy.
1t was privileged under fhe law to
apply the funds it had for this pur-
pose, but could not have used all
of them. or it would have been di-
verting them from the purpose fer
which they were raised, ACCORDING
to Mr.. Mcmillan. With conditions
as they are now, the commission
does not expect to have to invest
funds again.