The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1927-08-06
REDUCTION IN
R EAL ESTATE
HELD BY BANKS
Buying Of Farm Property
Cats This Item Nearly Half
Million Dollars

Reduction Of s435 .Os2.77 in the
amount of "othcr real estate" held
by North Dakota banks is the out
standing feature Of the state bank.
ing situation as disclosed by the con
soidated report Of the condition Of
all North Dakota banks, issued today
by the state bank examiners depart
ment.
A year ago the amount Of "other
real estate" held by 43S banks and
four trust companies reporting was
$6,25i ,3S3.89. BY December 81, 1926,
400 banks and three trust companies
reported "other real estate at 3d.
s82.9T5.l6. The report showing the
condition Of all banks as Of June 80
shows that 1856 banks and three trust
companies had "other real estate"
valued at $5.I47 .99269.
Increased Interest Brings Reduction
The reduction Of close upon half a
million dollars is attributed to in
creased interest in North Dakota
farm property and the slowly de-
velopine tendency on the part Of per
sons with money to buy farm land
while it is still chea~ officials Of
the state banking department believe.
Statistics showing the deposits
and obligations Of the banks report
ing reveal that much Of the capita'
in the state now is actively at work
getting in the big prospective grain
crop. Loans to farmers to enable
them to harvest their crops have
been heavy. At the same time per.
scns with heavy deposits have re-
duccd them to finance their own on
erations. This accounts for the
shrinkagc Of approximately $780,
600 since last December and of near
ly $l3,OOO,OOO since June 90, 1926
The total of deposits now is s63.-
l56.6O5.9l as compared with $G9,613,-
1902 six months ago and $76,O76,-
570.68 in June last year.
Reserves held by banks, however.
continue to be ample. The total of
reserves available as of June 30 was
S9,8OO,876.21 whereas only $685.
CATS is required by law. This
leaves surplus at the low point of
the financial year, just before the
crop begins to come in, of $l,142,-
228.43.
How the demand for harvest and
other funds has decreased deposits
and forced the banks to call on their
reserves is shown by the fact that
deposits subject to check June 30
decreased 1892, o3s.s3 while time
certificates Of deposit shrunk, $2,-
497, 1882 3 and shrinkage of $2l9,-
SITE in savings deposits. Demand
certificates of deposit also showed
slight decrease.
Decreased Government Holdings
In order to meet this heavy demand
and TO make needed harvesting loans
hn han he oil hn. hnll
Of government issues by $644,3O7 .63
and their holdings Of warrants,
stocks and bonds by $432 ,032.42. At
the same time they collected $2.475,-
8Ol.56 of old loans and increased
their bills payable $728.692.l9. In
cluded i'm the bills payable account
is all money borrowed from other
banks.
A marked change is made in the
undivided profits of the various
banks. A year ago the total under
this item was $s49 1853 but the
present report shows that all of this
has been wiped out. This is due to
,he new state law which requires all
tate banks to build up a surplus
equal to their capital before divi-
law the status Of money formerly
AioSNo as uuuANANCo pAVAAto uAuS4 WO0t
change.
The continual decrease in the num-
Der Of state banks which has marked
the banking business Of the state for
the last four years is believed to be
ut an end and banking officials ex-
press the belief that from now on
the number of banks will either re-
main stationary or show slight in
crease.
Unrestricted opening of banks no
longer is permitted under the state
law which grant the state banking
board the power to control charters
and indications are that the board
will be very careful in considering
applications to open new banks. As
now outlined the policy will be to
refuse such applications from dis
tricts which already have ample
banking facilities and to grant new
charters only in those distritcs
where the closing of numerous old
banks has resulted in an actual lack
re hankinD accOmmO datiOnS