The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-10-14
zoo BANKSIN
n. D. SAVED BY
GUARANTYB0DY
Claim Is Made That ClOsings
Might Have Been Much
Greater in North Dakota
CHARGES EXPLAINED
Members Had Collateral
Bought to Conserve it For
Closed Bank, Declaration

With good crops in the state, de-
pcsits in banks increasing and indi-
viduals paying off debts, the bank
ing situation has about righted it.
self, according to members of the
Depositors Guaranty Fund Commits
sion. With this situation existing.
there has been divulged by members
of the commission many of the ac-
tions taken during the long period
of anxiety in the state, and ans
wers made to wide-flung charges of
carelessness and dishonesty.
The policies pursued by the COM
mission, it is asserted by c. B. Nc
MILAN of Hannah, a member, prob
ably prevented 200 to 25O additional
bank closings in the state. The
same policies resulted in preventing
foreclosure proceedings agai nst
thousands of farmers in the state,
who would have been driven f"om
their homes, he asserts.
The Depositors Guaranty Fund
has not been wasted, and although
the commission used some of the
funds, under the law, to help con-
serve assets and prevent closings,
virtually every dollar of the fund is
intact, for the benefit of all depo-
sitors of closed banks, it is declared.
Charges of corruption in the sale
of collateral of the Bank Of New
n. UYSl1scS-S, IN pnvoL and
Sawyer State Bank were made under
a misapprehension, with the commits
sion acting to conserve collateral for
the banks, which now is in the hands
of the receiver of the banks, it is
asserted.
The Guaranty Fund Commission
is composed Of Governor Nestos, ex-
officio chairman, C. r. Green, man.
ager of the Bank of North Dakota,
ex-officio member, Gilbert SEEMING
son, state examiner, ex-officio Sec
retary, C. B. Mcmillan of Hannah
and S. G. Severtson Of Minot. M.
r. Porter of Minot formerly was a
member.
Preventing Closings
One Of the greatest accomplish
ments claimed by the commission
for itself and other state officials
was the agreement announced Sat-
urday whereby Twin Cities banks
will return over-plus collateral to
closed North Dakota banks. One Of
the main problems Of the commits
sion for the last 18 months was the
prevention Of bank closings and
foreclosures.
81 believe that from 200 to $50
closings were prevented by negoti-
ations and by offering to allow the
bills payable holders to renew and
extend collateral, and with the con-
sent of the receiver to effect COM
promises" declared Mr.. Mcmillan.
The big banks outside the state
who were the chief bills payable
holders didn't want to foreclose on
the North Dawota farmers whose
notes they held, but under the law
if anyone granted an extension
other than the original maker-the
notes originally were made to North
Dakota banks who borrowed from
other banks and gave the notes as
collateral security-the security
holder became the owner Of the note
and could have no recourse on the
North Dakota bank, it is explained
here. This could be avoided in cases
where there were receiverships of
banks by getting the consent Of the
receivers. The Guaranty Fund Com
mission, cooperating in this manner,
CONTINUED on page q