A Historic Vote
With the state in the midst of an economic depression and public confidence low, the IVA began a second assault on the League through the polls. In 1921, the IVA circulated a petition to recall all three League-endorsed members of the Industrial Commission and replace them with Republicans hand-picked by the IVA. It was the first recall of elected officials in the United States. Also on the petition were seven measures that would repeal or limit the Bank of North Dakota and other state industries.
One month before the recall election, the Industrial Commission finally broke the Wall Street boycott of the state's bank-series bonds. A national campaign was mounted through the support of labor and farm unions, urging "that every public spirited citizen buy as many of the bonds as possible." Governor Lynn Frazier declared July 23rd 1921 as "North Dakota Bond Selling Day." Nearly $6 million dollars of state bonds were sold to Labor organizations and individuals.
The IVA, claiming the bond sale was fake, brought suit in court and was awarded an injunction stopping the bond sale. Unfortunately for the IVA, the injunction was written so broadly that if obeyed, it would have stopped the Bank from accepting any deposits or paying out any funds. State government would have come to a standstill. Governor Fraser left the campaign trail and rushed to court. The state Supreme Court vacated the injunction
As the polls opened for the special election, the future of the League and its Industrial Program was on the line. Scandal and in fighting among League officers, the publicity campaign charging mismanagement of state-owned enterprises and the public's growing disillusionment with AC Townley's increasingly radical politics took its toll. After the votes were counted, all three League officials were recalled from office. But public support for the Bank of North Dakota and other state-owned industries was still strong enough to defeat the seven measures that would have repealed the Industrial Program.
Photographs from the collection of Chester Fritz Library, University of North Dakota