Belt Valley times. [volume] (Armington, Mont.) 1894-1977, 1923-07-26
THE BANKING SITUATION.

The condition which all banks TODAY are facing is due in large
part to the loss of confidence in banks and banking laws as the
direct result of the unprecedented business depression of the last
few years due partly to postwar conditions and largely to the con-
tinued failure of Montana crops.
The initiation of farm values produced by the bountiful years
of 1915 and 1916 has subsidized until land values now represent
bedrock values.
Instead of being depositors farmers have become borrowers
and a very large proportion of the bank loans are secured by the
farm lands of this valley which have never experienced the infla-
ton of other parts of the state and which have almost without
exception produced a crop during the most trying years.
Can anyone look about the Belt Valley and feel a lack of faith
that eventually it will recover from this temporary setback.
What was the cause of the closing of the State Bank of Belt?
Was it the breakdown of local securities? Was it caused by bus
mess depression? Was it a business which had failed to make
good? All of us know the reason why it was closed. We also
know that the men in charge of our other banking institutions are
men of integrity and of long business experience.
We have two banks which are in excellent financial condition
Conditions years ago taught our bankers the uselessness of loan
ing money outside of the territory which is contiguous to Belt
Applications for loans outside of this area have been referred to
their own bankers. Consequently the whole amount of money
loaned by our banks is owed to them by our own people.
Upon this fact we look with pride. There is not a spot in the
state of Montana which God has blessed as he has the Belt Valley.
It's soil is fertile and ordinarily well watered. Its people are in
dustrious. It's resources are varied and extensive. We have a
market for our livestock, our butterfat is in demand, our other
products are salable. During a large part of the year our coal
mines bring here a constant stream of ready money.
Who can look upon the hills and streams of the Belt Valley
and doubt for one minute its solvency and its return to prosperity
Reports of this crop surety have been carried north and south,
east and west by the drylanders who have drifted in here to help
harvest our crops and hardly a day goes by IN which our business
men are not asked for information as to the renting of farms in
this locality. From the talk of these people it is evident that the
Belt Valley is classed on the outside as a veritable Garden of Eden.
Our banking institutions reflect the life and condition of the
community. They have been in safe and sane hands. They have
paid no dividends of late years because it has seemed good bust
ness to charge off every loan about which there may be suspicion,
and now we have two institutions without one dollars worth of
doubtful paper carried as a resource, with no stocks, warrants or
bonds of questionable value carried on their books. Their re-
sources are the resources of this community and there are none
better. The Federal Reserve recognizes this fact and will accept
paper from Belt banks much more readily than from other sec
tons. The unfortunate closing of the State Bank of Belt left the
Federal Reserve with some 10000 worth of Belt Valley paper.
They proceeded to collect and have realized on practically the
whole amount due them. This unfortunate circumstance proved
to the Federal Reserve that the Belt Valley paper is good.
Our banks are as solid as any in the state and will continue to
be so as long as they receive the confidence they have merited.
A bountiful harvest is at hand. Large shipments of stock are
being fattened. Soon the continuous outlay will cease and money
will be flowing back into the pockets of our people. /
The State Bank will pay out in such a way as to prove the
value of Belt Valley security. The other banks are as sound as a
dollar.
Confidence is the foundation of business and the man who
loses confidence in the wonderful resources of this valley wouldn't
take a five dollar gold piece for fear it should prove counterfeit.