Diamagnetic measurements of poloidal beta have been performed in the STOR-M tokamak by a flux loop placed exterior to the vacuum chamber with compensation for the vacuum toroidal field using a nonenclosing coplanar coil, and vibrational compensation from auxiliary coils. It was found that in STOR-M conditions (20% toroidal magnetic field decay over discharge) there is significant influence on the diamagnetic flux measurements from strong residual signals, presumably from image currents being induced by the toroidal field coils, requiring further compensation. A blank (nonplasma) shot is used specifically to eliminate the residual component which is not proportional to the toroidal magnetic field. Data from normal Ohmic discharge operation is presented and calculations of poloidal beta from coil data (beta(theta) approximately 0.5) is found to be in reasonable agreement with the values of poloidal beta obtained from measurements of electron density and Spitzer temperature with neoclassical corrections for trapped electrons. Contributions present in the blank shot (residual) signal and the limitations of this method are discussed.