The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-01-29
HALT RADICAL
BANKING BILL
IN n. D. SENATE
Bill Limiting Interest Rate
Materially Changed. and
One Is Killed
H USE A TTITU ID E
Not Expected That Radical
Banking Plan Will Find
Favor There
USE ATTITU ID E

radical" banking legislation being
crushed. it was predicted today that
the state legislature, when it has
finished with many important bank
ing bills before it, will not have en-
acted into law many drastic meas
ures affecting private banks.
The senate late yesterday killed q
bill limiting the rate Of interest
banks may pay to four percent. and
amended bill pros iding that cigh,
percent is the maximum interest d
bank may charge, to nine percent
The present maximum contract rate
is 10 percent.
With Frank Vogcl, League floo1
leader in the House, known to favo,
a bill making five percent the mos
banks may pay on deposits and nine
percent the most banks may legal,
charge, it is probable that any at
tempt to restore the rates proposed
by the League majority of the Sen
ate banking committee would be de
featcd in the House.
To Amend Bills
At a meeting of the banking com
mittec today. Senator IngersOn's bill
providing for posting Of security t.
insure double liability Of bank stock
holders and restricting the pledgin,
of their collateral and borrowin,
power, were discussed
Chairman Ingerson indicated tha
he would amend the bills. so as t.
remove some of the drastic features
and it is probable that no report will
be made on the measures for a few
days.
Maximum Rate 9 Percent
Four senators listed as Nonparti
sans voted with the Independent.
to make the maximum rate of inter
est to 8 percent. They were Sen
ators Marshall of Dickey county
McCrory Of Sargent, Olson of Bur
leigh, and Peck of Mclean. TIL,
vote on the amendment OF this bill
was 80 for 9 percent, 20 for per
cent. The roll call was as follows
For per cent maximum: Bah
cock. Bakken, Benson. Bond, Ettes
tad, Fleckten, Frederickson. Hamil
ton, Hjelmstad. Magnuson, Martin
Miklethun, Olson of Barnes, Olsor
of Eddy and Foster, Patten, Pat
terson, Richie, Ward, Whitmer
Wog.
For 9 percent: Atkins, Baird, Bond
Carey, Eastgate, Hart, Kaldor, Kret
schmar, Lynch, Marshall, Mccoy
McCrory, McLachlin, Murphy, Olsor
of Burleigh, Page. Pathman, Peck
Ployhar, Porter, Rusch, Schlosser
Seamands, Steel, Stevens. Storstad
Tofsrud, Van Camp, Whitman.
This bill came before the senate
on divided report from the com.
mittee on banks and banking the
majority recommending that the rate
of z percent which was fixed as the
maximum in the original text of the
bill be made percent while the
minority recommended the substitu
tion Of nine percent. The vote was
on the acceptance of the minority
report, which carried, and the bill
was on the calendar for final pass.
age today.
Senate Bill 3, which would have
made 4 percent the maximum in
terest rate to be paid by banks on
deposits. report made by the ma
jority of the committee on banks
and banking recommended its pass.
age. There was no minority report
but on the floor of the Senate, SEN
ator Stevens of Ramsey moved its
indefinite postponement.
Both Senator Ingerson and Sen.
ator Patterson spoke in favor of the
passage of the bill, the latter declar-
ing that unless it was passed by
the legislature a similar measure
would be initiated, and carried by
the people of the state.
On a roll call vote Senator Stevens
motion to kill the measure carried
the vote standing 26 to %. Senator
Olson of Burleigh who is listed as
Nonpartisan voted with the Inde-
pendents for indefinite postpone.
ment. With this exception the vote
was along party lines.
In explaining his vote for the in
definite postponement of the bill
Senator Bond, of Ward county de-
clared that he believed that it's pass.
age would permit the banks in the
larger centers, operating under ma.
tional charters to which the limita
tion law would not apply, to draw
the deposits away from the state
banks in the smaller towns thus
working great hardship on the bor-
rowers of the latter localities.