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Analysis of Audit Shows $5,000,000 of State Funds "Frozen" For Years The condition in which the Bank ed or deposited at that time in the of North Dakota has placed itself afbanks, was in less than one-eighteenth ter 18 months operation; the situof all the banks that were doing busiation that it has created for the state ness with the state bank. It is knowledge of this situation by tying up tremenduous sums of that the state administration is seekmoneys raised by taxation for running ing to keep from the public in the the state, counties cities, schools, etc., fight that it is making in Bismarck is revealed by an examination and anto prevent the house audit commitalysis of the report of the audit of the tee from making a full inquiry into the status of the bank of North bank made by Bishop, Brissman & Dakota and other industries that are Co., as of Dec. 3, and by reference to under the direction of the state indusdevelopments since then. trial commission. Here, briefly, is the situation: Nearly Five Million Frozen The Bank of North Dakota has The Bishop, Brissman & Co. audit, and the statement by the bank that loaned $1,135,000 to the Industrial have come out in the house investigaCommission to finance the North Dation, disclose, then, that the bank has kota Mill and Elevator- association a total of $4,950,898 "frozen", this beand the North Dakota Homebuilders ing apart from anything that may deassociation. velope in connection with the tremendous deposits that have been piled up The bank has invested $2,9906,069 in a few selected institutions. in farm loans for a period of 30 years. Under date of Feb. 1, the daily balThe bank has on deposit in 32 closance sheet of the Bank of North Daed banks, the sum of$539,879.18, while kota disclosed total redeposits of other liabilities from those banks the $5,698,456.54, so that the money on deposit in the group of closed banks, state bank are $369,950.09, or total liawhich is $539,879, represents nearly a bility from suspended banks of $909,tenth of all the money the bank has 829.27. on redeposit. The bank has adopted a policy of It is this condition, this freezing of favoring political friends with big dethe money in long time investments, posits and other advances; it has put heavy deposits that are tied up in closed banks, extension of credit to $444, 127.46 in the Scandinavian-Amer state industries, etc., that has brought ican bank of Fargo; it has put cn the crisis that the Bank of North $253,127.89 into a bank with $85,000 Dakota faces at the present time. combined capital and surplus; it has The guarantee of bank deposits is placed $126,123.88 in one bank with looked upon by the Bank of North combined capital and surplus of $50. Dakota as protecting it against on the redeposits in the closed banks. 000, and has made tremenduous deposits and loans to others of a group of Only $260,000 a year can be raised especially favored banks. through the guarantee, so it will take In one of the closed banks-at Donyears to realize on this form of denybrook-n bank with a combined posits. It has no guarantee covering capital and surplus of $33,400, the money loaned to banks, or advanced to them in other ways. Bank of North Dakota has deposits and other advances in' the form of loans, etc. of $93,534.31; it has $79,MUST SIGN ARTICLES 242.82 in a closed bank at Beach; it At different times our good friends has $65,966.52 in a closed bank at Miover the county send us in some very not; it has $47,111.06 in a closed bank interesting news notes, which we are at Fortuna; it has $63,588.85 in a always very glad to receive and pubclosed bank at New England; It has lish, but at times there comes to the $53,362.70 coming from a closed bank office a letter with interesting news, to at Tolley. which he writer has forgotten to sign his name. This of course is very unIn a group of 39 banks that appear to have been especially favored, infortunate, because. we have always made it a rule to never publish any cluding such institutions as the league items unless they are signed or we bank at Fargo, the Bank of North Daknow who the writer is. This makes kota has a total of $2,652,236.49 on deposti and in other forms of advances. it necessary to leave the news out of At the time this audit was complied the paper. Kindly remember, all who the Bank of North Dakota had advanat times send in items of news to ces to all the banks totaling about please sign the letter. Your name of course will not be printed unless the $13,0000,000, ao the fact that there is article demande st. We will appremore than two and a half million dolclats this if our frinds will just re. lan in 39 banks means that about member to also their letters public money loan
