The Sauk Centre herald., 1930-08-14
RURAL DEPOSITS
PASS $44l,28l,O00
Federal Survey Shows II
Per cent Decrease from
1920 Peak in Banks
LARGE GAIN OVER 1913
Small Towns of Minnesota Are
Keeping Up Their End in
Fine Shape !

Fine Shape =
Small towns of Minnesota have
maintained steady financial po-
sition in comparison with the larg-
er cities of the state since the de-
preston of 1921. At the close of
1929, rural bank deposits totaled
$441 ,2S1 900, a decrease of II per
cent from the 1920 peak, but an in
crease Of 80 per cent over the 1913
volume, the Federal Reserve Bank
announces.
Conclusions from a study of rur-
al bank deposits in Minnesota since
1913, the report said, show that
Deposits more than doubled be-
tween 1913 and 1920, but in the
succeeding years deposits decreas-
ed II per cent from the 1920 total.
Deposits in rural Minnesota banks
were 80 per cent larger at the close
Of 1929 than in 1913.
The largest percentage increases
in deposits between 1913 and the
peak year were in the smallest
towns and the greatest percentage
decreases in deposits since the
peak year have also been in the
same communities. -..
Deposits have been maintained
most nearly at peak levels in towns
with more than 5000 inhabitants,
and in towns having 1000 to 1000
population. -" =, +. '-.~
- There Is almost no evidence Of
deposits being taken from small
town banks in Minnesota and being
concentrated in the larger cities.
1T has been commonly stated
deposits in rural areas are being
concentrated in the larger cities
at the expense Of the deposit vol
ume in the smaller communities"
the report said.
1T cannot be denied many in.
stances of this shift in deposits
have occurred, but the net effect of
such migrations of deposits in
rural Minnesota have been negli-
gible. In 1913, 81 per cent Of all
rural bank deposits was held by
banks in towns whose population
was less than 1000. Precisely the
same percentage of rural bank de-
posits in 1929 was held by banks
in' these smaller towns. Further
more, banks in towns with 100 per-
sons or less held only 1 per cent Of
rural bank deposits in 1913, where
as in 1929 they held more than 2
per cent Of these deposits.
"The only evidence that any sig
nificant change in the habitat of
bank deposits has occurred ap-
pears in the record of cities hav-
ing populations of more than 5000.
Banks in these larger cities held
% per cent of the rural Minnesota
deposits in 1913, and had increased
their percentages of the total held
to rs per cent in 1929. This does
not necessarily mean deposits have
moved in any volume from the
smaller towns to the larger towns,
since it may equally well be con-
strued to reflect the greater in
crease in deposits due to more rap
i'd population and business growth
in cities of this size.
Deposits in rural Minnesota
banks rose without interruption
and at an increasing rate between
1913 and 1919, and increased mod
erately in 1920 to $531, 755, 900, which
was the largest amount on record.
In the depression Of 1921, the de-
posit total decreased 10 per cent,
but made up most Of this decrease
in the succeeding four years. Since
the close Of 1925 there has been a
gradual but steady decrease in ru-
raj bank deposits in Minnesota and
at the close of 1929 they totaled
$441, ,281 900, a decrease Of II per
cent from the 1920 volume, but an
increase of 80 per cent over the
1881 volume.
deposits in towns of all sizef
followed the same general trends
in the period under study, although
there were significant differences in
details. In towns with 100 inhabi-
tants or less the recovery in de-
posits after 1921 brought the to-
tai to peak in 1925, which was
higher than the 1920 peak. Also,
in towns with 5000 inhabitants or
more a new high record was es-
tablished in 1926.
"The three most interesting
groups of towns on account of their
resistance to the general shrinkage
in deposits are the communities of
100 inhabitants or less, the group
having 1,0O1 to 1000 inhabitants,
and the group with populations of
more than 5000 people. The first
of these three groups, namely, the
group of very small Towns, exper-,
fenced growth of more than 400
per cent in deposits between 1913
and their peak in 1925, and at the
close of 1929 they had deposits
300 per cent larger than in 1913. De-
posits in this group of towns de-
creased % per cent between the
peak year and 1929.
Towns having populations from
1,001 to 1000 people experienced
an increase in deposits Of 116 per
cent between 1913 and 1920. De-
posits in these towns were 95 per