The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-02-07
BANKING BILL
BEF0RESENATE
FOR DECISION
Final Passage Of Measure Re-
quiring Deposit of Bank
Stock Value Expected
WOULD TAX NEY
Senator Ettestad Introduces
Bill to Tax Money and
Credits in State
WOULD TAX MON E Y

The Senate of the North Dakota
legislature had before it this after
noon a bill requiring holders of bank
the value of their stock with the
the value of their stork with the
state treasurer.
On roll call ballot which showed
bolts from 3boths the political fac
tions the Senate yesterday afternoon
voted 25 to "a to accept the report of
the committee on banking which re-
commended for passage Senator
Ralph Ingerson's bill requiring hold
ers Of bank stock to deposit securi-
ties equal to the value Of their stock
with the state treasurer. -.
The roll call was on motion for
the indefinite postponement of the
bill. Senator's McLachlin Of Cass,
and Carey Of Richland county voted
with the Nonpartisans against kill
ing the bill. while Senator o. A. o.
son of Burleigh, Nonpartisan. voted
with the Independents for indefinite
postponement. The motion to kill
having been lost the recomenda-
ton of the committee that the bill
pass was accepted. and it was on the
calendar for third reading and final
passage today.
Bill Modified
As reported in by the committee,
however. the measure has been mod
flied to a great extent from the form
in which it was originally introduced
by Senator lngerson. Under amend
ments which have heen made the
payments Of the equivalent of the
stock value to the state are spread
over period of 20 years for all
banks. instead of 10 years as was ORR
ginally planned. This extension is
given to new banks which may be or
ganized as we'll as those already
operating.
Ingerson's View
"Under our present laws the dou-
Bile liability on bank stock is not we'll
secured" said Senator Ingerson
speaking for his bill. "We have
found that out to our cost in con-
nection with the large number of
bank failures which have recently
occurred in the state"
The banking committee of which
Senator Ingerson is chairman re-
ported for passage, Senate Bill 81
prohibiting officers and directors of
any bank from borrowing money
therefrom. This report was accept
ed without opposition.
Two new bank regulatory measures
were introduced by Senator Ingerson.
One throws additional safeguards
around deposits in savings banks by
requiring the creation by each such
bank Of a, trust fund equal to the
amount of its savings deposits. The
other is designed to make certificates
of indebtedness issued by the guar
anty fund commission to depositors
in closed banks. negotiable instru-
ments bearing interest at 5 per cent.
Money Credits Tax
Another bill Of Importance was in
troduced today by Senator'S Kaldor
and Ettestad. 1t provides for five
mill tax on moneys and credits. The
proceeds of such tax would be divid-
ed as follows; Is per cent to the
state for general purposes, Is per
cent to the county general fund, and
60 per cent to the school district in
which the property is assessed and
taxed.
An attempt to tax moneys and
credits was made by the Nonpartisan
League several years ago but the law
was repealed, short time later.
Moneys and credits are specifically
exempted from taxation in the tax
laws passed in 1928.
8.e ~ Amendment Fails ~.
~ Contrary to the expectation. Sepa-
tor Steel's, attempt to amend Senate
Continued on page thrss)N