202 AGRICULTURAL DISCONTENT 



dominated by the independents, found some "minor irregularities" but 

 nothing serious, while the senate committee, controlled by the League, 

 found "the enterprises properly conducted." 



The Bank of North Dakota was causing difficulties to both the League 

 and the independents. The latter felt especially menaced not by what the 

 bank was doing, but by what it was likely to do under its broad powers, 

 which included establishing branch banks and accepting deposits. At the 

 same time, the law initiated and enacted by the lower house making it 

 optional for local government officials to deposit funds with the Bank 

 of North Dakota was causing the League considerable trouble. This law 

 meant that the League was to lose the funds of counties, cities, and school 

 districts where officials hostile to the League had been elected. The bank 

 ignored this act by failing to heed the demands of hostile communities 

 for their funds, and some counties actually brought suit to collect. This, 

 plus the refusal of the business interests to take the bonds, added to the 

 "financial stringency," since it came in a period of deflation, low farm 

 prices, and repeated crop failures.- One observer noted: "Business in the 

 State is disorganized and banks are getting into worse instead of better 

 condition. The State industrial program is held up, and the legislature 

 continues deadlocked. Political feeling is bitter and intense beyond de- 

 scription." 43 



The League charged that because the Bank of North Dakota would 

 not guarantee the bankers that it would not extend its operations to in- 

 clude the broad powers granted, the independents had resorted to more 

 drastic measures. This was noted in the numerous schemes for delay and 

 obstruction. Attempts were made to force the resignation of William 

 Lemke, the much-feared attorney general. Compromise measures were 

 proposed which were intended to cripple the League program. Laws 

 were sought to make the legal deposit of public funds in the Bank of North 

 Dakota equal only to its combined capital and surplus, thus making it 

 impossible to give financial aid to the industrial commission. Another 

 bill sought the appointment of the industrial commission by the governor 

 instead of by the people. The industrial program was to be limited to the 

 completion of the home buildings already undertaken and the mill and 



43. Morris, in The Nation, CXII (March 9, 1921), pp. 367-69. 



