TREND OF BANK DEPOSITS 



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The annual report of the state bank ex- 

 aminer for December 31, 1926, shows total 

 resources of 137 state banks and 2 private 

 banks of $86,292,527, compared with $68,- 

 770,674 for these same banks on Decem- 

 ber 31, 1920. Demand deposits in these 

 banks increased from $30,323,987 in 1920 to 

 $44,710,492 in 1926. Time and savings de- 

 posits in these banks increased from $22,- 

 774,488 in 1920 to $27,957,875 in 1926. 



During the past three years in these 

 banks savings deposits alone increased from 

 $9,863,627 on December 31, 1924, to $12,- 

 590,745 on December 31 1926 and were $11,- 

 455,924 on December 31, 1925. 



In a state like Montana where a relatively 

 large share of the total banking transac- 

 tions is contributed by agriculture, it may be 

 assumed that the physical condition of bank- 

 ing institutions will tend to reflect the finan- 

 cial condition of agriculture. 



It must not be assumed from the comparison above that total bank resources 

 increased from 1920 to 1925, a period in which some of the most severe re-adjust- 

 ments in the state's history of agriculture were witnessed. There were 288 state 

 banks and 142 national banks in Montana on January 1, 1920 and the bank call 

 for December 1919 showed a total of $194,219,695 in deposits. Between 1920 and 

 June 1926, 147 state banks and 45 national banks had ceased to function. 



In 1920 Montana's population per bank was 1,276 compared with 1,388, the 

 average of the west north central agricultural states, and 7,517 in the middle 

 Atlantic states. During the post-war depression period bank failures in the 

 various states occurred almost in an inverse proportion to the per capita popula- 

 tion per bank, indicating that fewer well managed banks of larger resources 

 would have better served the agricultural areas during this period. 



It may, therefore, be assumed that with her present per capita population 

 per bank of 2,177 persons, Montana agriculture is now more safely served, if not 

 actually better served than in 1920. Referring to the comparison of the 147 

 state banks and 2 private banks, the significant fact is that these banks have 

 survived the deflation period and their history during this period, therefore is of 

 particular interest. 



TREND OF MORTGAGE INDEBTEDNESS 



The Federal census of agriculture reports the mortgage debt where given 

 by owners of farms in 1920 and 1925, from which may be determined the trend 

 of mortgage debt in this period. 



FEDERAL CENSUS MORTGAGE DATA 



Item— 1920 1926 



Total Number Farms in State 57,677 46,904 



Number Operated by Owners 50,271 26.281 



Number Reporting Mortgage Debt 29,897 19,818 



Per Cent of Total 64.6% 54.6% 



Number Reporting Amount of Debt 21,244 11,754 



Value of Land and Buildings $240,549,778 $95,174,254 



Amount of Mortgage Debt 77,949,679 42,565,206 



Ratio Debt to Value 32.4% 44.7% 



Average Mortgage Debt Per Farm. $3,669 $3,621 



A fact to consider in connection with the decrease in mortgage debt indicated 



above is that many farmers escaped mortgage debt through the expedient of 

 turning the farms over to creditors. 



There was a decrease in number of owned farms between 1920 and 1925 of 

 13,992 and at the same time an increase in the number of tenant farmers from 



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