The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1928-06-23

BRANCH BANKING, A BUBBLE BURST

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turn BRANCH BANKING A BUBBLE BURST
In Early in the state primary election campaign nov
svercosng North Dakoa errorsts seized upon the
branch banking carried in of the panks Of tht
man League Republicans.
dept From they ntoned while The being
admfor campaign conri. utions, doefu chant Of ruin
"otbankruptcy and impaired credit"
vote It Of "any port in a storm and the
. fronvotares Of Twchesm for North Dakota failed tc
otnook before they eaped The closing days OF this
thrcpagn find them the defensive and utterly in
will defensible position, chiefly noteworthy as an ndca-
tire ton Of the political technique invoked dscredt thi,
Estate and to cash in upon by the transparent
SON demagoyuery
The people took the issue seriously The
the isolated farmer upon the arthe5t of North Dakota
G prairie reaches better informed upon the actual
sen facts than the leaders Of Tchesm which must
Tbe distinguished from the sincere and conscientious
cavewpoin upon state affairs Of hundreds Of ndepend
pents
ing The facts always plain, but it remained for
quart L. Thoresen League Republican candidate for gov
OF Vernon, to reduce them to such simple
nn,,who runs may read
stra First The power to establish branch banks is
vested in the industrial commission.
G Second. The League Republican platform plank puts
risoa further limitation law already upon the states
AZ satute books if it is interpreted in law pro-
cam posed in the plank For it proposes that before
Lea bank may be established any point in North
quevote Of the people Of the county in which proposed
- ito establish the branch bank
The votaries Of Twichelism in North Dakota have
Bsalways been afraid Of the people, They have always
sought to do their thinking for them and in
on they have been successful the foregoing
sconclusivey, il it has deceived anybody.
van But that is only half the against them.
e. There is another limitation that has been overlooked
Raj 1t the Bank Of North Dakota or its branches
hun it had. loan money only real
Iroiity storage tickets There certain definite
49, limitations upon this feature.
Branches Of the state bank would be subject to the
laws, the same business procedure.
a b. The laws defining the securities upon which the
Bank of North Dakota may loan money in this state
app and limiting them make North Dakota real
and North Dakota storage tickets gilt edged banking
act paper Of the first class.
a They require that there be behind every loan
made by the bank line Of securities and paper
- that could not be better
If North Dakota real estate the valuation legalized
A-i state bank loans is not good security what is?
Ten If storage tickets upon commodity that feeds the
g world with the valuation limit fixed for loans is not
prs good security, what is?
He The state banks security requirements are such that
they confer distinct advantage in the loan market
upon every private bank in the state.
So collapses the entire Of ruin bankruptcy and
impaired credit created by Twichelism in this state
Nor TO conure campaign funds from reluctant yeders
Amt Significantly it dropped, prono, after the
Bot 80, -, - 80 80 " ~ 1
Cro - e'aoe te" 70 e~seno ener elIor1s 10 ascredN
Dew North Dakota.
Dicl And in this has been placed in . more
indefenble position than Mr. Shafer and Mr. Kitchen
F7as. Of the industrial commission.
Ora When Governor Sore proposed that the bank
Het purchase the seed bonds of North Dakota counties
sued to aid distressed farmers in crisis over which
they had CONTROL neither Shafer Kitchen would
st second his motion in meeting Of the industrial
MIN mission Sorle sought to the state money Shafer
osap and Kitchen not impressed
Will At that time and now, millions OF dollars OF the
Moo funds Of this state deposit and on
Sou deposit in banks outside this an interest rate
aM Of "a per cent.
aan Shafer and Kitchen preferred to this money in
outside bonds low rate Of interest rather than put
it to work in North Dakota to reduce the interest
bond issue that must be paid out Of the pockets of
,rol the men who made and making North Dakota.
nue Mr.. Thoresen aptly asks: IFS this business?"
And the whole state echoes his question.
In -. There is proposal in this campaign to expand
sri branch banking by the state There definite plank
e in the League Republican platform placing further
limitations upon the possibility.
!, Before that be done there must be legislative
ros action If that action is contemplated the fol-
re- lowers Of Twichellism in this state will be found oppos-
re ing it and again loudly vocng their cries of "ruin
~ bankruptcy and impaired credit"