The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1926-12-31
BANKS IN MUCH
S0UNDER SHAPE
THAN IN YEARS
Bills Payable Greatly De
creased-SlOw and Doubt.
full Loans Are Removed

Banks throughout North Dakota
generally are in much sounder condi-
ton than they have been for the
last several years, in the opinion Of
Gilbert Semingson, state bank ex-
aminer.
Reviewing the banking situation %
future Semingson said: "Too many
people have the idea that bank fail
ures in North Dakota have been
, caused by irregular, improper and
illegal action on the part Of bank.
ers. To start with We had too many
banks.
while it Is true that some fail
, ures can be charged to irregular and
improper banking methods and even
to actual fraud, these constitute .
negligible portion of banking losses.
The majority of closings are not
thus tainted.
mo fraud or irregularity can be
charged in the years gone by when
bankers performed the admitted func-
tions Of bank which were to as
scmble the idle funds Of . commun-
ity and make them available for the
/ needs Of the community, and made
loans that at the time were consider.
ed good, safe loans, either with or
without security as the situation
seemed to warrant. No one inside
Or outside Of banking circles was
dmpossd to criticize these loans. They
were supposed to be good.
: Bonkers Took Over Losses
AS time advanced and these loans,
instead OF being paid. had to b re-
newed, there was still no thought
hat ,huA -.
good. Then the time arrived when
losses had to be taken and In hun.
dreds Of cases throughout the state,
the bankers themselves took over
these losses. They put up their in
dividual holdings in order to protect
the banks assets and in many cases
impoverished themselves in the opera
ton rather than to have the losses
charged to their bank or to see their
bank fail. They kept putting up and
putting up as long ~ there appeared
to be any hope Of continuing the
institution. know Of instances
where bankers borrowed money to the
limit on their life insurance policies
to put into the bank to protect it
against losses.
II am not undertaking to excuse
the comparatively few cases in which
fraud or irreguiarity was discovered.
but think measure Of praise and
sympathy is due that other vast num-
her of bankers who made such tve-
mendous personal sacrifices in order
that their depositOrs might suffer
the least possible loss.
Farmers Lost Also
Losses have been taken by banks
but they have not been taken by
banks alone. Farmers also have taken
tremendous losses and no one charges
their losses to fraud Or irregular
ity. If they had been able to repay
have been comparatively few bank
closings, and the closings would have
been limited to such banks rs were
affected by fraud or irregularity and
such are extremely few in number.
While it is true that all banks arc
not yet out of the woods it is APP
parent that banks generally are in
much sounder condition than they
have been for the last several years.
1.-THE bills payable by banks or bor-
rowings from correspondent banks
and others is only about one.sixth Of
what it formerly was. Slow and
doubtful loans have been largely re-
moved. Deposits from outside the
state have been largely paid off and
deposits now in banks, are much
more stable in character, and the
deposits are maintained more large
~ by persons who are interested In
the development Of their respective
communities. A large part Of the
reserves consist Of state and govern
ment bonds, quickly convertible into
cash in case Of need and reserves
have been built up. Reserves are
now over fifty per cent higher than
the law requires"