Article Text
STATE BANKS SHOW INCREASE During the Year Resources Have Increased Over $7,000,000. Bismarck, N. D., Aug. 17.-The state examiner's department has just issued an abstract, of comparative statement of the financial condition of state banks and trust companies in North Dakota reporting for calls at the close of business on June 20, 1917, and May 10, 1918, with the call of June 29, 1918. The figures for the call for report of condition of banks and trust companies as of June 29, 1918, just compiled, show that the resources of the state banks of North Dakota have maintained their usual steady forward growth despite the withdrawing strain on reserves by reason of the concurrence in government issues of Liberty Loans, War Savings Stamps, Thrift stamps, certificates of indebtedness, Red Cross, etc., and the tax paying period at the end of the fiscal year. During the past year the resources have made a steady growth of $7,073,378.50. The financial condition of North 19 Dakota state banks is the best in the history of the state. On account of the very careful and rigid business supervision and the careful and thorough investigation of each individual bank by the state depositors' guaranty fund commission preliminary to issuing certificates of admittance under this guaranty for bank deposits, each bank admitted has undergone a thorough scrutiny and has been forced to make a complete financial and business house-cleaning of all undesirable assets, business deals and practices. This action has placed the banks in better condition than 'they have been in their history. This will be thoroughly understood when you learn that over $2,000,0001 of assets which\ were considered undesirable and questionable by the depositors' guaranty fund commission, was ordered charged out of the banks. This has been a heavy strain on the assets and profits of the banks in a new and growing state like North Dakota. The banks now fully understand the wisdom of the men who are supervising the work under this act, and the great value of the act itself to the depositor, the banks and the state, and are helping to put their whole united force for the forward drive for its success. On account of the work of the commission, the Rolette county bank at St. John and the Security bank at Knox, N. D., had to be closed and their affairs will be liquidated. In a grain growing state like North Dakota, deposits show a decline at this time of the year, but in spite of this expectation and the unsettled business condition, the examiner's report shows an increase over the call of June 20. 1917, of $3,000,000. The total cash reserve at the low period has maintained its usual high level and has fluctuated very little. Bills payable have increased $2,000.000 over the last call but we find that the larger portion of this is high class securities discounted with the Federal Reserve bank.
