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LOCAL FAILURES OF CROPS CAUSE BANK CLOSINGS No Cause For Alarm, Initiated Laws Not to Blame, Says Cathro (Special to The Herald) Bismarck, N. D., Nov. 22.-If North Dakota could sell all her grain at 1919 prices she could pay all mortgages in the state five and one-half times over, declared F. W. Cathro. director General of the Bank of North Dakota, today in commenting on the situation which has resulted in the closing of some banks m the state. The state as a whole is in excellent condition and the closing of banks in isolated communities where the crops have failed and the farmers have not sold their wheat does not affect the general situation, he said. Two more banks closed their doors today the examiner was advised by telephone, making a total of eight. They are the First State bank of Killdeer, Dunn county, of which Robert Willon is president, and the Security State bank of Columbus, Burke county, in the northwestern part of the state. No details were transmitted in the message, While none of the banks which have closed have re-opened as yet, the examiner says there is a strong probability that some will. The two banks which closed today were closed because the reserves were below the required amount. the examiner said. An examination is being made. Conditions which have caused the closing of some banks has nothing to do with the initiated law regarding the withdrawal of public deposits from the Bank of North Dakota after December 2. according to Mr. Cathro, although he says if the deposits are withdrawn some banks will be affected. Taking an optimistic view of the situation as a whole Mr. Cathro asserted that the resources of the state as a whole are so great that isolated failures cannot affect the general situation. He condemned all panic talk.
