The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-11-28
n. ". BANKING
SITUATION IS
HELD BETTER
Difficulties in Some Localities
Not Indicative of Gen.
eral Situation
Observation-Disclosures
Crop Movement Effected
Without Heavy Soil on Fed
eral Reserve System
RESERVE vEAGENTREPORTs

Minneapolis. Nov. 27-Thc crop
movement in the Northwest has been
largely effected without heavy calls
on the Federal Reserve System by
Northwest banks, according to the
monthly report Of J. H. Rich, federal
reserve agent for the Ninth district.
Generally improved banking condi-
tions are reflected in the summary,
which follows:
'The credit situation as reflected
by the condition Of banks operating
in this territory has apparently
reached turning point. The GUS
tomary increase of loans and de-
posits and Federal reserve note is
sues, incident to crop moving, has
taken place. However, both country
and city banks were less dependent
upon this Federal Reserve Bank or
their other correspondents for loans
or rediscount accommodation during
October and the early part of No
vember. A large part of this inn
pfovement was effected by city
banks through the sales of security
. holdings while the country banks ap-
parently were obtaining genuine Ii
quidation.
'"That credit conditions have reach
ed a turning point is also indicated
by a special survey made by this
bank and completed this month COW
ering all bx.,ks in the four complete
states contained in this district on
comparable dates since 1919. Depos-
its have been rising steadily since
June, 1921, and loans, have been de-
clining since June. 1920. However,
some Of the earning assets have been
shifted to real estate and other in
vestments. Nevertheless, the ratio
of total invested funds to total de-
posits has nearly reached par, there
By placing the operating banks in
this territory in q better statistical
position than they have held at any
time since 1919. The steady trend of
deposits upward which lasted for
about two years has finally influenc-
cd the course of total invested funds
in the same direction.
Must View All
"The fact that banking conditions
in some localities have not been al.
together satisfactory does not de-
tract from the conclusion that the
credit situation in general has i'm.
proved. These isolated instances /. OF
banking difficulties arc typical sym.
ptoms of the final stages of liquida.
tion and the carly stages of loan ex-
pansion. The fact that substantial
improvement has taken place is
commonly overlooked for a time by
the majority of people because their
attention is distracted by more spec.
tacular events of local character.
business activity in the cities OF
this district during October as re-
Elected by individual debts at banks
Increased 10 per cent AS compared
with September and maintaiped the
levck, of October a year ago. The
increase during the month is to bt
accounted for largely by y. heavy
-, movement Of livestock, improved re.
tail trade in the cities, record-brcak.
ing shipments of linseed products, q
substantial westward mOvemeat Q1
coal on the lakes, and we'll sustained
OUTPUT by lumber. manufacturers
This improvement is noteworthy be-
cause flour production in Minneapo.
lis reached the lowest point in an,
October since 1910, iron ore minee
declined 10 per cent. retail trade in
country districts increased less thal
a seasonal amount and fell II pei
cent below year ago. while whole
sale trade decliAed in all lines ex
cept hardware and dry goods.
Building Unchanged
irrespective business activity, a.
reflected by building permits grant
ed in the important cities of thi.
territory, remains practically un
changed. AS compared with las
month there was an increase in thu
number of permits and decrease ir
the total valuation. This indicates al
increasing proportion Of smaller pro
jects, which reduces slightly tn,
average building permit. To some
extent this change is due to the pre-
vailing custom Of planning more
building projects at certain season:
of the year than at others. This sea
sonal character of the construction
industry should be modified consid
erably, both in the interest of socia
economy Of our labor power and bus
mess equipment, and also in tn
financial interests Of the builderl
themselves. Careful investigation
shows that construction labor of al
kinds is much more easily obtainabl,
in the winter months and . selection
of the more efficient laborers il
therefore possible. Also concern,
furnishing material are able to tax,
care Of all orders promptly withou
exacting premiums and architect
and contractors are able to devot'
more time and attention to such pro
i jects as are given in their charge
Indeed, some contracting firms ar
beginning to quote ., preferential
rate for work arranged to be don,
in the dull months. Such = move
ment to divert all possibl9 construc
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