The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1929-02-20


me up in business any time ask hin
legation by defeating the proposal to
issue bonds to meet the funds debts,
he said. He declared that many men
who had suffered heavy losses in
closed banks recognized the fund as
of no value and favored the repeal.
The new proposal, he said, is SIM
liar to a law now effective in South
Dakota. It Is true that the fund Of
each bank will build up slowly, he
said. but will amount to something
some day.
Fund Promises Nothing
Ole Ettestad, McHenry county, said
he doesn't think much Of the new
plan proposed but that the guaranty
fund promised nothing even if it were
continued.
Matthaei commended that the
people interested" in repeating the
guaranty fund could have arranged
to pay off part Of the funds obli-
cations had they desired and thus
saved the states honor.
He contended the special bank fund
law will be easy for banks to evade
and that the fund will be for the
benefit Of the stockholders in paying
their bank stock liability in the case
Of bank failures.
A. w. Fowler. Cass county, said the
banks would pay into the special
bank fund on the same basis as into
the guaranty fund, the law requiring
payments Of -ne-fifth of one per cent
OF the average daily deposits for the
current year. Banks are permitted
to deposit securities In the fund, he
said, because securities draw interest
and the funds would be increased
more rapidly. He denied that the
special fund would be available to
pay stockholders liability and said
creation of the fund would give bank
depositors three safeguards. The law
already requires banks to have sur
plus funds and provides for double
liability Of bank stockholders in case
of failure.
Naturalization Seen
A recent decision Of the supreme
court, he said, permits state banks to
nationalize II they see fit. He warned
that many state banks would do so
unless the guaranty fund law were re-
pealed. =, s~. /:
G. w. Fine, Benson county, said the
bill is against the best interests Of the
people and of the banks themselves.
He picked some further flaws in the
bill, and Fowler again rose to the de-
tense, pointing out that the assess
ment Is charged against the banks as
an expense item and must be paid
before the banks declare dividends,
Fine had said only IS banks paid divi-
dends In 1927 and that, under the law,
most banks would not contribute any,
thing to the special funds unless diW-
dends were paid He characterized
the proposal as a ''delusion and a
snare" to the stockholders.
Walter Bond, Ward county. said the
proposal would increase confidence In
small banks and that, when conditions
are adjusted, the assessment can be
increased, If necessary, at some future
time.
Satire Backs Hyland
The argument on the House of
Mercy appropriation opened when
Frank Hyland, Ramsey county, offered
an amendment to include an appro-
priation of 5000 for the House of
Mercy and 5000 for st. Johns or
phanage. The original bill provided
$4,000 for the House Of Mercy. p. O.
Satire, Steele county. who introduced
the bill, supported the amendment.
Hyland pointed out that the. Flor
ence Crittenton home and the North
Dakota Children's Home society get
state appropriations and that the two
institutions named in the bill do sim
liar work. He said the state :; getting
OFT cheap and easy" considering the
work done.
D. II. Hamilton, McIJenry county
said they were not the only institu-
lions Of their kind In the state and
that both are operated under religious
auspices. the House Of Mercy by the
Lutheran church and the orphanage
BY the Catholic church. Although 4
Mason and IN Odd Fellow, he said
no would not vote for appropriation
tor the fraternal homes Of thcse or
CARNATIONS because they are oectari-
m. Il III institutions are 70 receive
state funds these should 10 consid-
cred, he said.
OPEN = All Croeds
.Hyland replied that no child i
hlxned sway from thu ogphanate and
10 girl from thu House. o1 ll.rcy, and
tnat they are open e people Of al