The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-07-07
BANK BONDING
MEASURE HELD
INSUFFICIENT
Proposal For $6,OO0,OOO Issue
For Closed Banks Present.
ed, Filing Refused
REASONS ARE GIVEN
Secretary of State Holds That
Amendment Seeks Also
To Legislate
HELD INSUFFICIENT


of six asking that 4 constitu-
tiOnal amendment be submitted
to the voters at the November
election, providing for bond
issue of $6,0OO,OOO TO aid in re- :
imbursing depOsitOrs of closed
banks, and rewriting the guar
antee of bank deposits law and
, revising other banking laws, were
today held insufficient" by Sec
rotary Of State Thomas Hall.
In letter to the committee for
the petitioners, Mr.. Hall found
the petitions, which were said to
contain 2O,lOO names, insufficient
for the following reasons:
First, the proposed amendment
seeks to amend constitutional
section relating to the debt limit
of the state, and also amends and
re-enacts various provisions Of
the banking laws; 1.-THE latter
being purely Legislative acts"
Second, the ballot title does
not mention all subjects included.
'The line of demarcation be-
tween a constitutional amend.
ment and purely legislative act
is we'll Defined" the letter states,
quoting supreme court decision.
The Secretary of State holds that
purely legislative acts and con-
stitutiOnal amendments cannot
he embraced in the same petition.
The petitions were found to
contain sufficient names, the
count given by the secretary of
states Office being 20.912.
William LANCER, attorney for
the petitioners, is in Casselton
today. .t
The petitions presented by Nj
LANCER late Saturday were said b
him to contain approximately 2O,lO
names and he planned to presen
names today to give
soodly margin over the 10000 sigma
lures required to place constitu
tional amendment on the ballot. TIC
day was the 12Oth day before tn
election, and the last day on whic
petitions for initiating constitution
al amendments could be filed, az
to M. w. Duffy, Deput
Secretary of State.
The bank bonding measure is tn
only initiated constitutional amend
ment yet proposed for the Novembe
election. Petitions of initiated law
may be filed 80 days before tn
election, or as late as August 6.
Committee Named
The LANCER petitions, circulated h
the Association of Depositors Q
Closed Banks, named as the commit
tee for the petitioners Williar
Dyer, chairman; Robert Roterine
w. P. Steinmetz, o. F. Metcalf, NJ
E. johnson, Harry Tucker, Osca
Nesvig, and William LANCER.
1t provides for initiation "of
constitutional amendment relating t
issuing of bonds and fixing deb
init, providing that proceeds of tn
ponds shall be used for protection
If the depositors in insolvent stat
banks and providing for a metho
If organizing, establishing and reg
llating the number of state bank
and for assessments to be paid b,
The state banks to the Deposition
Guaranty Fund and providing tina
The Guaranty Fund Commission
shall consist of the Governor, At
;orney-General and Secretary o
State, and that the same may b.
sued"
The amendment, at the outset
would fix the possible bonded deb
# the state without security ant
'or industrial purposes at $4,000,
100, the figure now being $4,000,
700. 1t would except from the re
luirement of real estate security OF
,ond issues, 100000 proposed t.
,e issued to pay depositors il
closed banks, $2,0O0,0OO proposed t.
oe issued to protect collateral de
posted for loans to banks, and tn
- 100000 already issued for capita
stock Of the Bank of North Dakota
Changes in Bank Laws
The amendment would direct tn
Governor and Treasurer to ISSUE
b6, 100000 negotiable bonds, bearing
interest not to exceed 6 percent
designed as "Bonds of North Da
kota, Depositors Guaranty Fun
Series" Two million dollars o
The bonds would be disbursed on tn
order of the banking board for tn
purpose of buying notes and secur
ties that have been pledged or de
posted as collateral by insolven
state banks in the securing Of loan
% the bank when, in the judgmen
IF the banking board, the sale o
The notes in ordinary manner woul'
result in loss to depositors of tn
banks. The other 100000 woul'
20 into the guaranty fund, to b
,sed in paying depositors Of closet
ranks in the order Of closing.
Drastic changes in the state bank