The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1925-11-05

vestment for its funds. Many small
banks have been ding the same thing.
Bank deposits have increased. This
is the report almost everywhere, and
member banks in this Federal Reserve
district show an increase in the last
year of 8 per cent in demand deposits
and per cent in time deposits. This
has come along with a lower interest
rate. Most small town banks in
Minnesota are paying only 4 per
cent now on time deposits, and some
as low as 3, and this has had a
tendency to divert some funds to
investments bringing higher rates.
The low rate has gone along with
low interest rates for loans, and
there is plenty of money to be had
for farm mortgages in most locali-
ties. But there is less demand for
loans, and farmers after their eX-
perience with abundant credit during
the initiation are now showing ten
dency to borrow as little as possible
and make their position Independent
So the financial situation resulting
from better agricultural conditions
can be summarized like this:
Progressive liquidation, leav-
ing many communities independ-
ent of outside capital.
Increased bank deposits.
Banks usually looking for in
vestment of surplus funds.
"Pay as you go'' growing
popular, and collections i'm
proving.
Money rates to the farmer
down to low water mark.
In some localities large purchases
of public utility stocks by farmers
are reported. They have been buy
ing to get higher yield for their
money than they can secure from 10
cal investments.
What effect has the improved situa- |
ton for the farmer had on those who |
sell him material, tools and merchan- |
disc?
Farmers Buying
Best in Four Years
Figures show that sales in some |
lines have jumped rapidly this year.
In others there has been only slight |
The general story is !
that farmers have more cash but are |
not buying as freely as when the orgy /
of easy credit and rising prices slim
ulated all business. Since they cash
ed in on the 1924 crop, however, they
have been buying more than they
did during the four years previous.
The implement trade, hardest hit
of all by the farm depression is COM
ing back in fine style. Sales for the
first nine months of 1925, according
to the Federal Reserve bank, were so
per cent more than in the same
last year. At the same time
dealers accounts and notes were
only % per cent larger, indicating
that the overextended lines of credit
have been frightened with some sue
cess. Dealers in many places are
successfully pleading for all cash |
on deliveries of the machinery.
Farmers bought hardly anything in
the line of implements, lumber, fenc-
in, paint or other improvements dur
ing the lean years. Now they are bel
ginning to fix things up. They are
replacing worn machinery, putting up
new fences, barns and .silos, and in
places quite a "paint UP" movement
is noted.
Retail lumber sales for the first
nine months of the year in this Fed
sral Reserve district, according to-
the bank statistics, were &c per cent
larger than last year for the same
months, while credits increased only
Z per cent.
Wholesale lines report that most of
heir customers have settled into a
hand to mouth" buying policy. That
has kept down sales of dry goods,
shoes, etc., but still some increase is
found in those lines. The improve
nent in wholesale trade is not as
marked as many expected earlier in
he year, and not what the other con-
litions would seem to warrant, but
he reason seems to be a more con-
ervative buying policy by retailers.
Under the present conditions,
Wholesale merchants of Minneapolis
re looking for steady Improvement
n trade in the next few months. The
'uying power is there, in the terri
otry, and the trade seems sure ito
evelop accordingly.
arms Are Selling
Without Boom"
How about farm land Well, it is
cling again. That is big news, event
there is no tsboom" to record.
arms have been drug on the mar
ct. Banks that were loaded upI
18th farm land found it next to inn
osslble to thaw out such tsfrozeni
ssets. F" Some bargains in land havel
cen picked up by shrewd investors
ut there has been no real buyingI
Movement until the last few weeks.
Now the report comes from almost
very county that land is selling