The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1920-11-20
BANK DEPOSITS
. SHOW INCREASE
IN THE STAT E
Gain of Over 81, 100000 Is Re-
ported in State Banks Alone
in Report
FARMERS HOLD WHEAT
Hagan Declares Federal Reserve
Board Should Extend Their
Rural Credits
FARMERS HOLD WHEAT

North Dakota, one of the first states
in the union in per capita wealth
increased her bank deposits during
the late summer and early fall. &C
cording to figures of the state bank
examiner. Perhaps no state is in better
position for the readjustment whicl.
is in progress over the entire coun-
try. ri. #
Deposits in the state banks alone
increased over $1,5OO,OOO between the
periods of the last compilation Of bank
deposits. The total deposits in the
state banks amounted to $216,305,-
402.56( as shown in the statement q;
September s. Deposits have increased
since that time, it is said, because Of
the Sale of agricultural products.
The condition of the banks is about
the same as during the same period ii
1919, the statement shows In addi
ton to the deposits the state banks
show reserve of over $10,0O0.000
The deposits and reserves of nationa
banks would increase the total many
millions, it is stated.
The loans and discounts of the
state banks are shown to be less than
the total amount of deposits in the
state banks, though the amount of the
loans increased SIG 100000 over the
same period in 1919.
( Surplus Over S5,0OO,OO0
The surplus reserve of the state
banks is s5,712,S62.S4.
All of North Dakotas readjustment
problems could be solved if the fed
eral reserve board would extend crcd
it's to rural banks to enable farmers
to hold their grain until prices in
crease, in the opinion OF John Hagan
commissioner of agriculture and Ia
Dor. ,.a
IF the federal reserve board and
treasurer of the United States would
as permitted ard Contemplated by the
federal reserve act, extend credit to
agricultural communities the strain
upon many farmers could be lifted in
few days." he said.
Instead of extending credit to the
producers Of grain, the federal re-
serve bank is extending it to the
handlers of grain. The reserve bank
was giving credit in rural communi-
ties but has recently withdrawn it
nd riuo IL fr, %h0 ,,,;II1o,,,ar ,,yho
are beating the price down"
Thinks They'll Hold
Mr.. Hagan does not believe that the
financial situation will result in the
farmers disposing of their grain at
present prices. All who sell now are
selling at a, loss, he declares
The situation arising from the de-
crease in grain prices has disturbed
North Dakota perhaps less than many
other agricultural states, in the opin-
ion of bankers and state officials
With deposits in state banks alone Of
$126,3O5, ,402.56, and immense stores 0.
grain, and the 'lignite coal industry
booming, the financial position of tn
state never was better, they say.
Though the initiated law permitting
the withdrawal of public deposits, ex.
cepting state funds, from the Bank
of North Dakota becomes effective
Dec. 2 and has been the center OF
much discussion, there are not many
bankers or business men who believe
that the law will have any material
bearing on conditions. The public de-
posits which will be subject to with
drawal are considerably less than Il
per cent of the bank deposits of the
state.
TO Discuss Situation
Discussion of measures to be taken
to provide an equitable adjustment
of the distribution of public funds
when the measure becomes effective
will be discussed by members of the
Slope Bankers association at meet
ing to be held in Mandan Nov. %.
An invitation to all state bankers
and treasurers of public funds to be
present has been extended. 1t is
pointed out that if the public funds
now are distributed fairly by the Bank
OF NOrtn, DdhOld, IL lO Oue Udllh Ids
too great proportion of funds, ther@
would be no disturbance even if the
money were withdrawn. However, it
is the intention of the conference tC
evolve plan to accomplish the tran
sition, which was willed by the voters
of the state by big majority. and for
which 10000 Nonpartisans voted, to
prevent any embarrassment to the
Bank of North Dakota or any othe'
institution.
Beach Bank Closes
The Beach State bank, of which Z.
j. Alguire is president, closed its
doors yesterday, the state bank ex-
aminer announced. The deposits Of
the bank were $1s1,37960. Inability
to liquidate farmers notes was given
as the reason for closing. 1t is said
the bank may pay out in full, or even
be reopened.
BANK STATEMENT