The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-01-13

(Offica City, State and County Newspaper
THE BANK OF NORTH DAKOTA AUDIT
The Bank of North Dakota audit made public by the
Industrial Commission may citizens to
surprise since losses placed in of the
capital stock of the bank However, surprise
stoned to officials politicians others who have followed
the various reporst the bank for the last four
Briefly the situation this: The Bank of North Dakota
loaned and deposited large of money private banks
throughout the state Scores of these banks failed The
Bank of North Dakota had collateral security loans
for the redeposs The agricultural depression made
it difficult to realize the collateral and the closed banks
will not out the deposits Therefore, huge losses
in the banks history 1t has been for three years
that eventually the bank would lose million two million
dollars in doubtless assets of closed banks.
There is, of course, the political side to the
nomc story The Independents charge that the Frazier or
League of the bank loaned huge sums of
money to such unsound league banks the Scandinavian
American Bank of Fargo and made political farm loans"
to of the league wherein the supporters sod
their land to the state Be that may condition
fronts the state and the legislature in the bank which
be faced as business proposition without malice politics.
The startling statement advanced by the auditors
of the bank is that cannot hope to make money the m
ture It now has plenty of funds which liability in
@ %, an huge
not required to borrow formerly The private banks
do not need to borrow from the Bank of North Dakota and
therefore the bank funds must be kept deposit in big
reserve centers drawing low rate of interest while the
Bank of North Dakota high rate of interest Since
the banks funds tax monies which may be drawn out
at time the money cannot be permanently invested
bonds other securities The Bank of North Dakota at
drawals in the good private bank will
course: However the sank North Dakotas funds
when tax money paid Therefore, the bank must have
idle money to meet the withdrawals and keep it's
funds prOfitaby employed.
Farm loans conservatively made ought to be good in
yesment tor the bank One would be without any faith in
no doubt but that in the early administration of the bank
worthless farm loans were made Either they made
the subsequent agricultural depression forced off the
farms and the bank had the land and paid principal
or interest the loans The need for the loan depart
men too is diminishing the farmers able finance
themselves the Federal Land Bank functonng and scores
OF private agencies and individuals willing to
real estate mortgages.
The Bank of North Dakota at the present time with
exception of the farm loan department. serving any
very useful purpose 1t does of advance large
of to the state mill and elevator without security
function which could otherwise be handled efficiently
as at present
does not the private banks materially Because
the Bank Of North Dakoas funds largely tax MONIES
it cannot safely advance private banks Were
the tax monies deposited in local communities the private
banks would be helped in maintaining their 1t
banks in time of stress But the Bank of North Dakota
cannot accumulate sufficient funds to meet all of the loan
requirements of the private banks during planting and
with out OF state banks and agencies North Dakota
state must get from the outside
state live within ITSELF financially, this time unwork-
f nsa tried at the d se of the opening Of the Bank
withdrawal of outside capital which proved to be heavy
u. II.
of the bank has safeguarded the public by
keeping idle money where he could get when the local
treasurers demanded it, though the bank might lose
thereby The audit report shows that little Bank Of North
Dakota money has been lost in closed banks under Mr.
Green The audit report too shows that farm loans have
been censervavey made by him and have been well appor
toned throughout the state and the payments of interest
and installment on loans made by him good.
The fact of the that thus far the Bank North
Dakota has not met economic need and thus
has shown economic need that such institution
can safely meet in this state
GETTING AHEAD
continues selling to other countries than she
buys from them This leaves her a snug the good
when she balances the books about 1897 million francs in
1924