• Introduction
• Out-of-State Dominance
• Economic Colonialism
• Breaking the Machine
• Economic Exploitation
• The Non Partisan League
• Birth of the NPL
• The NPL Insurgency
• Early Days of the BND
• The Industrial Program
• Launching the First Volley
• Bonds and Boycotts
• Farmers Line Up
• Politics at Work
• The Counter Insurgency
• The Long Dry Spell
• A Historic Vote
• The IVA in Control
• Farm Loans Falter
• BND Resurgence
• The Langer Housecleaning
• The Depression Years
• Contributing to the General Fund
• Returning to the Legislative Vision
• Awakening the Giant
• The Bank Under Fire
• Fulfilling the NPL Vision
• Growing North Dakota
• Era of Partnerships
• The Vision Realized

Politics at Work

Launching the Counter-Insurgency

Beginning in 1920, the IVA and its allies undertook a campaign of systematic challenges in the courts, the legislature, the polls, and the press to undermine the sale of the bonds that would ensure the success of League programs.

1920 was a disastrous year inside the Non Partisan League as well. Friction between party leaders during the 1919 session culminated with Attorney General Bill Langer, Secretary of State Tom Hall and State Auditor Carl Kositsky publicly defecting from the League. Hall refused to sign the bank series bonds, claiming they were illegally issued­; a claim supported by the Attorney General. Not only did the defection of the attorney general mean League opponents had a seat on the Industrial Commission, Langer and Kositsky began an all-out public attack against League leadership, publishing a monthly magazine attacking League leaders and claiming they were Bolsheviks. AC Townley, still a die hard Socialist, began to take unpopular public stands, eroding public confidence in his leadership and, by association, that of other League officials.

The Bank's management was also under attack. The Bank of North Dakota became embroiled in the Scandinavian Bank of Fargo scandal. The Scandinavian Bank had been acquired by the League to process its membership dues and fund League activities, largely financed by post-dated checks from members. An audit ordered by Attorney General Langer found that that the Bank was on the verge of insolvency. IVA opponents charged that the bank of North Dakota management had knowingly re-deposited public funds in a highly unstable bank as a political favor to the League. After a run on the bank led to its closing, auditors were unable to find any evidence of Bank of North Dakota mismanagement. But the scandal undermined public confidence in Bank management.

To further undermine public confidence in the sale of the bonds, attorneys provided by the railroads and The Twin Cities banking and business organizations filed suit on behalf of 42 North Dakota taxpayers claiming the legislation which created the Industrial Commission, the bank, the state mill and elevator, and crop insurance was unconstitutional. Although judges dismissed the suit, it was appealed all the way to the US Supreme Court, which upheld the legality of the legislation.