Salt Lake Telegram | 1920-11-26 | Page 23 | Farmers Cause of Bak Failures, Charge

FARMERS CAUSE or of I BANK FAILURES CHARGE I Refusal Refus l' l to Take Share of I Losses Cripples North Dakota FARGO N. N D. D Nov 26 o ot of farm farmers rs to share sharo financial losses in the present adjustment of living costs was Mas blamed by bankers today for the financial financial finan finan- cial turmoil in North Dakota which has caused doors of thirteen banks to close in two weeks I Farmers by withholding grain from the market arc are failing to liquidate their loans causing banks facing possible withdrawal withdraw withdraw- al of ot public funds to suspend payments pending adjustment of the situation 1 F F. W W. Cathro director general of the State Bank of North Dakota at 1 explained explained explained ex ex- today RECALLING FUNDS 1 Treasurers who Vho call can in their funds do doso doso doso so on their own responsibility ty Cathro said There is no law Jaw entitling them to do so so Cathro declared the measure considered considered considered consid consid- ered at the last election permitting treasurers treasurers treasurers trea trea- of public funds to make withdrawals withdrawals with with- not self executory even it passed Heretofore public funds deposited depos depos- Hed by compulsion In the state bank have havo been in other banks The amendment to this law considered at the election provided wi withdrawals wals might start December 2 2 State bank officials officials of of- estimated withdrawals would total In all the state bank has haa collected collected col col- and in public pub pub- lic funds NO DANGER OF PANIC Conditions in North Dakota are not such as to bring on a panic Cathro said Two months mouths ago I estimated that if all the grain held in the state was sold it would woul take care of the debts of ot all I the banks in the state including the state bank five times over Since then the I price of ot grain has dropped only about 23 25 DC Tl The Bank Bank of North Dakota said William Lemke vice president of the National Nonpartisan league and attorney ney general could save the banks that have closed their doors by lending them an additional few thousand dollars if the Independent Voters Voters' association had not crippled the bank In hl an attempt to ruin Lt it Calling attention to the d depositors depositors' guarantee law W. W C. C l McFadden adden secretary secretary secre secre- tary of the State Bankers Bankers' association declared the depositors cannot lose If Jf the tho worst should come it will be the poor hankers bankers who lose said McFadden Mc Me Fadden