Full text of Central Western Banker : January 1930, Volume 25, No. 1

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JANUARY


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Federal Reserve Bank of St. Louis

19 3 0

Page 4

Hello Jack
It was a pleasure to see the old gang
at the state bankers’ meeting last
month, to greet Jack, Bill, Tom, Jim
and Elmer and to meet the new boys.

W e have been greeting the old gang
for many years, some of them for
nearly three-quarters of a century.
The old-timers know of our friendly,
personal banking service; the new­
comers learn quickly.

Come again, boys, and make this bank
your headquarters whenever you are
in Omaha.


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Federal Reserve Bank of St. Louis

First National
I Bank of Omaha
FIRST TRUST COMPANY

3

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/C E N T R A L H A N O V E R BAN K &
Trust Company announces the ap­
pointment to its new business depart­
ment o f Will Emerson, formerly with
the Cambridge Associates of Boston,
and Thomas F. DeLaney, Jr., for the
last several years with John Wanamaker, New York.
Mr. Emerson was engaged for many
years in advertising, real estate pro­
motion and finance in Boston previous
to his connection with the Cambridge
Associates.
Mr. DeLaney has for the last three
and a half years been a buyer in the
house furnishing section of John
Wanamaker. For the twelve years
previous he has been associated as a
sales executive with the phonograph
and radio industry.

bankers appointed were: Albert H.
Wiggin, Chairman of the Board,
Chase National Bank, New York City;
Arthur Reynolds, Chairman, Board of
Directors, Continental Illinois Bank &
Trust Company, Chicago; John T.
Scott, President, First National Bank,
Houston, Texas; and Herbert Fleishhacker, President, Anglo London-Paris National Bank, San Francisco.
A W E E K PR IO R to its affiliation

with the Foreman Banks, the
State Bank of Chicago celebrated the
fiftieth anniversary of its founding. In
December, 1879, the State Bank first
opened for business as a private bank,
with Helge A. Haugan and John R.
Lindgren as the founders. In 1891
the institution qualified as a state bank
and was granted a charter. Deposits
of $33,000 in 1879 have steadily grown
until they approximate $64,000,000 at
the close of business on December 7.
On the latter date, the capital, surplus
and undivided profits represented
nearly $14,000,000 whereas at the time
of the first published statement in

1890, these amounted to slightly more
than $200,000.
'T 'H E F O R E M A N -ST A T E COR­
PO R A TIO N , representing the
merged investment activities of the
Foreman National Bank, the Foreman
Trust and Savings Bank and the State
Bank of Chicago, announces the ap­
pointment of C. C. Rieger of Minne­
apolis as territorial manager for Min­
nesota, North Dakota and South D a­
kota. This appointment is in line with
the policy of the merged corporation
to become one of the largest represen­
tative originating and distributing in­
vestment organizations in the country.

P H E L L I S A. AU STIN , president
of the Equitable Trust Company
of New York, died suddenly at his
home in Montclair, New Jersey, on
J O S E P H E. O TIS has been ad­
December 13th from an attack of an­
vanced from president to chair­
gina pectoris. He was fifty-three
man of the board of the Cen­
years old. Mr. Austin had become
tral Trust Company of Illinois and
president of the Equitable Trust Com­
Phillip R. Clarke becomes the new
pany on September 16, 1929, when
president. Charles G.
the Seaboard National
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Dawes, chairman, be­
Bank and the Equitable
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comes honorary chair­
Trust Company were
man. Eugene V. R.
consolidated. He previ­
VOL. 25, No. 1
J A N U A R Y , 1930
Thayer remains chair­
ously had been president
man of the executive
of the Seaboard Nation­
committee.
al Bank since 1922.
h

h f

In Th is Issue

J O H N G. L O N S ­
DALE, president of
the American Bankers
Association and presi­
dent of the MercantileCommerce Bank & Trust
Company of St. Louis,
attended the business
c o n f e r e n c e held in
Washington last month
by the United States
Chamber o f Commerce
at the request of Presi­
dent Hoover. With him
were four other bank­
ers, whom he appointed,
representing the Middle
West, the South, North,
East and West. The


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Federal Reserve Bank of St. Louis

Last Minute N e w s ....................................................................... 3
Unit Banking on T r i a l ................................................................ 4
Cartoons of the M o n t h ............................................................5
The Cashier’s W i f e .......................................................................6
The Widow’s T h i r d .......................................................................8
Bonds and I n v e s t m e n t s ..........................................................13
I n s u r a n c e .........................................................................................19
Nebraska N e w s ...........................................................................23
News of the Omaha Stock Y a r d s ........................................ 27
South Dakota N e w s ................................................................... 31
Utah N e w s ..................................................................................... 31
Kansas N e w s ................................................................................ 32
Colorado N e w s ..............................................................................33
W yoming N e w s ...........................................................................34

T

h e

C

en tral

W

estern

B

a n k e r

, O

m a h a

Published m onthly at 410 A rthur Bldg., Omaha, Nebraska
Subscription, 25 cents per co p y ; $2.00 per year.
Entered as second-class matter at the Omaha postoffice.
■in.......... .............................................................. .......................................................... .
....................... ........................................................ ...................................................... mi;iiii*ii..... iiM iiiiiaiim iim iiiiiiiiiiiiiiiiiiiiim iiH ...... .................. .

n pH E W A R DEBT of
the United States,
which reached a peak of
$26,594,000,000 in. 1919.
has been reduced in ten
years to $16,805,000,000,
Secretary A. W . Mellon
stated in a recent radio
address. This reduction
and lowering of the av­
erage interest rate, Mr.
Mellon pointed o u t ,
saves taxpayers about
$2,000,000,000 in inter­
est. Secretary Mellon
also said that for the fis­
cal year ended June 30,
1929, total ordinary re­
ceipts were $4,033,000,(C ontinued on Page 18)

Central Western Banker, January, 1930

4

Unit Bankin on Trial and W hat
will be the
M. Plin Beebe
By

President, Bank, of
Ipswich, South Dakota
Unit banking seems best adapted to
/W N E CHARGE in the indictment
the agricultural sections of the United
against unit banking made by em­
States and cannot be successfidly re­
inent authorities is that there were too
placed by other systems, says South
M. P l i n B e e b e
many banks of too small capitalization.
Dakota banker
This argument is as plausible as for
me to condemn the Canadian banking $100,000.00 or over. This covers $50 ,0 0 0 .0 0 or less capital, with all
system solely because I counted five both state and national b a n k s .
banks having a larger capital. The
banks in a city of four thousand on a In digesting these failures please rate of failure among small banks was
recent trip in that country. Neverthe­ consider the fact that at all times definitely less and the percentage of
less, the statement has been made so 83 per cent of Iowa banks were liabilities involved in fa ilu re s only
often from the platform and in confer­ in the $50,000.00 or under class and slightly greater. T h e comparison is
ence that it has been accepted as a fact. are termed 'small banks.’ To Ralph therefore favorable to the small banks.”
In this connection, do not overlook the Pickett, for his most comprehensive I am safe in assuming that in Iowa a
fact that of the 26,000 banks in the and enlightening article, The Size of preponderance of the small banks are
United States, two thirds are in towns Failing Banks in Iowa, in the Journal operated under state charters which,
or cities of under 5,000 population and o f Business published by the Universi­ generally speaking, are unit banks in
having a capitalization of $25,000.00 ty of Chicago, I am much indebted for the strictest sense of the word. To
or less. Then why should not the larg­ these interesting facts.
those who have repeatedly asserted
To sum up, I quote verbatum from that there were too many banks of
est number of failures be among the
small banks, as they are the most nu­ Mr. Pickett’s treatise as follow s: “ In sm all capitalization we respectfully
m erous ? T o r e fu te the
suggest they read Mr. Pick­
ett’s treatise and then raise
statement I am g o in g to
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their hindsights before they
take Iowa as an illu s tr a ­
start shooting again. It is
tion. It is without question
charged that our unit banks
Editor’s
Note:
The
article
on
this
page
is
a
part
of
the
ad­
one of the best all around
did not diversify enough,
States in the U n ion . N o
dress on the subject of “Unit Banking Best Adapted for Agri­
that our assets are frozen
State surpasses it in fertil­
cultural Sections,’ ’ by M. Plin Beebe, before the state bank di­
and that a change o f s y s­
ity o f soil or tillable land
tem would rem edy these
per acre. It is rich in coal
vision of the American Bankers Association convention in San
faults. O n the whole, we
and ranks high in indus­
Francisco. It is well worth the careful study of our readers.
w ill plead g u ilty to the
tries. It has no large cities
charge, but b e fo r e sen t­
and does not depend sole­
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ence is passed we w ou ld
ly upon agriculture as othiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiim iiiiii'iiiiiiiiiiiiiiiiiiiiiiim m iii
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like to address the C ou rt
er neighboring States are
as follow s:
forced to. Economists have
May it please your Honor, Unit bank­
been too free in their criticism of its the 7 years after 1920, 6 times as many
banking system. In 1920 it had the banks, in Iowa, failed as had been ing stands before the Court on a plea
largest number of banks of any State forced to close during the preceding of guilty as charged, and, in certain
in the Union. During the period from 50 years. It is significant that this en­ specific instances, we are also guilty of
1920 to 1927 the rate of failure was ormous number of failures occurred poor bank management.
Our case has been continued by the
definitely less among the small banks under a Federal Reserve system de­
than among those of over $50,000.00 signed especially to give greater stabil­ prosecution by every term of Court
capitalization. Please catch that I said ity to the bank structure. Between the since the close of the W ar although
of over $50,000.00 capitalization and two classes the record of the national our attorneys have urged most stren­
not of $50,000.00 or under. Further, it banks was definitely better, the result, uously the trial of the case. W e have
purged ourselves of banks which were
appears that almost twice as many chiefly, of the absence o f fa ilu re s
banks failed in proportion to th eir among the largest group in the system. mismanaged and have introduced upto-date methods of doing business and
The Small Banks
number which had a capitalization of
are forcing lines of unprofitable busi­
“
The
most
significant
characteristic
$50,001.00 up to $99,999.00 as did
those that had a capital of $50,000.00 in Iowa bank failures was the showing ness to be placed on a profit basis or
or less. The most surprising thing is of the small banks. They had survival have discontinued them. Many good
that banks of $50,000.00 or under cap­ power far superior to the middle group banks honestly and efficiently conduct­
ital had only 13 one-hundredths more and only slightly less favorable than ed, have suffered ruin through postwar
failures in proportion to their number those with a capital of $100,000.00 or conditions, and through the slack busi­
than banks capitalized for $100,000.00 over. Still more significant is the com­ ness methods of their competitors. W e
(C ontinued on Page 16)
or over. Again please note I said parison of the small banks, those with
m

Central Western Banker, January, 1930

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

m

m

m

5

CARTOONS OF THE MONTH

Copyright, 1929 b y the Chicago Tribune

T I M E T O H IT C H U P A G A IN
— Orr in the Chicago Tribune.

r

C opyright, 1929, by the New York Tribune, Inc.

Courtesy o f the New York H erald Tribune

A N O T H E R F L Y IN G T R IP TO T H E P O L A R R E G IO N S


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Federal Reserve Bank of St. Louis

— Darling in the New York H erald Tribune.

Central Western Banker, January, 1930

6

aThank Goodness the
Bazaar Season Is Over!”
—says the Cashier’s W ife
good sized pieces of your two favor­
T 'H E Bazaar season is over for an­
“ Your big cities may have
ites. No skimping here.
other year and I suppose you
their grand opera but there’s
folks have had yours like the rest of
And coffee? All you can drink.
no more fu n than the annual
us have.
The tables look so appetizing with
It seemed like the good old times
their snow-white linen, bouquets of
bazaar in the small country
to have a big crowd, sell all our wares
autumn flowers and the dishes of
town.”
and take in a nice tidy sum to carry
cranberry sauce here and there to give
on the Lord’s work.
a splash of color.
B y Lyda. Collins
It’s remarkable that this little
The waitresses are the young ladies
church can make nearly five hundred
of the Sunday School, looking so pret­
“ The Cashier’s W ife ”
dollars at this event. It must be be­
ty and dainty in their summery aprons.
cause of the splendid organization and
They stand back of your chair and
W e wouldn’t get that price now for
cooperation that they have among the them but I said that was in the good look after you properly, anticipating
people. Everybody helps, big and lit­ old days.
every want.
tle, old and young, and all have a lot
I have the same job every year, that
This year we had a cider barrel
of pleasure doing it, too.
of ticket seller. They think because
that proved popular and profitable.
In the spring, the Ladies’ Circle be­
One of our good Brothers said he I ’m the cashier’s wife I am quick at
gins to plan for the event and all the would furnish all the cider we could figures and can calculate rapidly. One
women are divided into committees sell as he had a new cider press and needs to when some farmer comes in
such as apron, rug, fancy work, pil­ bushels of apples were going to waste. with his cream check for $17.63, wants
low case, etc., etc. These small cir­ W e took him up on his proposition,
four adult tickets, 3 children’s tickets,
cles meet afternoons during the sum­ advertised the fact far and near and deduct $2 for Ladies’ Circle dues and
mer, invite friends and
24c for Flower Fund
neighbors to come and
Perhaps there is a longiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiM iiiiiiim im iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiM iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiim iii
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ni Ili in: Iin iiiiiiiiiii un ulu lili I
later refreshments a r e
line ready for their supper
served. They make a soc­
and if you hesitate, won­
ial affair of it, enjoy do­
der what’s the matter.
ing it instead of taking it
Getting Acquainted
“ You may think a Bazaar is just a Bazaar no matter where
as an unpleasant duty and
When the rush is on,
held, but that isn’t true out here. It is the big social event of
that maybe wherein lies
one of the boys from the
the year in a place like this where friendships are made in a
the success. Everybody
bank takes the helm and I
business as well as a social way.”
gets interested, w a n t s
assist. It is a fine place
iiiiiiim iiiiiiiiiiiiiiiiiiiiim iiiiim iim iiiiiim im iim iiiiiiiim iiiiiiiiiiiiim iiiiiim im m iiiiiiiiiiiiiiiiiiim iiiim iiiiM iiiiiiiiim iiiiiiiiiim iiiiiiiim iiiiiiiiim iiiiiiiiiiiiiiiiiiiiiiiiiiiii
their particular committee
to meet all the newcomers
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiliiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiid iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
to make a good showing
and get acquainted.
and it is surprising how
When it is all over, and
much sewing is done and articles ac­ I ’m ashamed to tell you all the cider the last sheckle raked in, one of the
we sold. Anyway, the town is full of bank boys is always there to take the
cumulated by the end of the season.
cider and we made over $25.
money to the bank for safe keeping.
A Neat Sum
After the sale is over comes the sup­
The nice part of the whole thing is
I remember one year I was on the per. And what a supper!
the good spirit that prevails through
pillow-case committee with Grandma
The fried chicken or perhaps baked, the whole affair; the laughter, the fun
Sihl. She was the chairman and I, is passed, repassed and passed again. and the friendliness. O f course, there
the co-chairman. W e not only had a It is set on the table and when the are differences of opinion but nothing
pair from each of the members o f the platter becomes empty refilled with that can’t be ironed out and the whole
committee but our friends donated to a piping hot supply. The mashed po­ crowd kept sweet.
us also and after the sail? we had tatoes have real cream in them to
This isn’t just a church affair. The
$78.95 to turn in.
make them creamy; the brown gravy entire community comes and they
I made two pairs myself. They were has been made with whole milk, not come and go all evening until all are
those scalloped affairs, pointed scal­ skim-milk— that’s been fed to the pigs ; fed. One wonders sometimes how
lops with crocheting in between and the escalloped corn has been brown one small stomach can hold so much
some embroidery above all this. It crusted by chunks of butter put on but a hard day’s work husking corn, a
didn’t take long to make the first pair top, then in a hot oven. O f course, ride in the fresh, brisk air gives one
but the second one was an endless job.
there were baked beans, creamed peas, a good appetite. After the supper,
I was rewarded for my labors because salads of all kinds; hot buns, jellies, some will go to the furnace room to
they sold for $5.50 a pair and two cranberries. You have your choice smoke and talk over the affairs of the
women stood with their hands on of pie: mince, apple, pumpkin or sour community. Much good seed can be
sown here that not only will bring
them for half an hour ready to grab cream. Your waitress may see how
them when the bell tapped—-the signal puzzled you are to choose from such forth fruit later but will cement
a wide selection and bring you two friendships for the bank.
for the sale to begin.
iiiiiiiii

h

(C ontinued

Central Western Banker, January, 1930

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Federal Reserve Bank of St. Louis

on

Page

18)

7

Northwest Bancorporation Reviews
Growth
Total resources of member banks
approach half a billion in year’s
existence.

E. W . D e c k e r
President Northwest Bancorporation

A

'" " i" '

i

......m i„ „ .ii„ „ „ ,im » „ „ „ ,„ i„

H

ig h l a n d

Assistant General Manager Northwest
Bancorporation

^H E
Northwest Bancorporation,
Minneapolis, by adding six banks
to its group in the thirty days preced­
ing December 16, had on that date 84
affiliated banks or trust companies
whose total resources were $465,849,547. This reflected the growth of a
year, lacking half a month.
In January, 1929, the six organiza­
tions in Minneapolis centered about
the Northwestern National Bank and
the Minnesota Loan and Trust Com­
pany in Minneapolis, together with the
...................................... .........'

lex

J . C. T h o m s o n
Vice President and General Manager
Northwest Bancorporation

First National Bank, Fargo, North
Dakota, and the First National Bank,
Mason City, Iowa, became affiliated.
Northwest Bancorporation is a hold­
ing company which exchanges its stock

for stock of the banks that become a f ­
filiates. Its initial capital of $75,000,000 later was changed to an author­
ized increase to $300,000,000. The
National Bank of La Crosse, Wiscon­
sin was the third organization outside
Minneapolis to join the group and
thereafter the growth was very rapid.
Northwest Bancorporation now has
banks in Minnesota, Wisconsin, Iowa,
Nebraska, North Dakota, South Da­
kota, Montana and Washington. It
(C o n tin u e d on P a g e 26)

m i..... ......................... .......... ...... ....... ..................... ..... in n,im iiiniiiiiiiim i,m in,....... ..... ................................ .......... „ 11,1...... „ 111,1,11............ „ „ ............ ,„ ............. ..... ................................... ..

.............................. ......... ...... „„„„„„„„„„„„„i,.. „„„.. ....... ....... ............„„„„„„„.. „„„„„„„„„„.. ......... „„„„.. ................ ......... ... ......... ....................

Tw o More Banks Affiliate
Since the report above was written, the Continental National Bank of Lincoln, Nebraska, and the Farmers and Merch­
ants National Bank in Milhank, South Dakota, have become members of Northwest Bancorporation group. The Continental Na­
tional Bank of Lincoln was organized in 1909 as the Continental State Bank. In March, 1929, it absorbed the Nebraska State
Bank and then became the Continental National Bank. It has capital, surplus and undivided profits of $429 ,349 ; deposits, $5,290,359 and resources $5,743,478.
The Farmers and Merchants National Bank in Milbank is a newly chartered organization with a very slight change in
name, which took over the business and deposit liabilities of the old Farmers and Merchants National Bank of Milbank, which
had been operating there since 1882. The capital of the new bank is $50,000 and the surplus $25,000.
Acquisition of the Continental National Bank of Lincoln was regarded as particularly desirable because Northwest Bancorporation already is in Omaha and Fairbury, Neb., and contact in the capital city strengthens its position in that state ma­
terially. Edwin N. Van Horne, president, will continue in active management of the Continental National Bank, and C. T. Knapp
is chairman of the board. S. R. McKelvie, former governor of the state and now member of the Federal Farm Board is a direc­
tor of the Continental National Bank. This further contact in Nebraska brings the number of affiliated banks in that state to
seven with total resources of $49,644,940 .80 which is 9.7 per cent of the total banking resources of that state.
\\ ith these two additions, Northwest Bancorporation now has 86 affiliated banks or trust companies variously located in
Minnesota, Wisconsin, Iowa, Nebraska, North Dakota, South Dakota, Montana and Washington, with combined resources of
$472,120,319.
..........."

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Federal Reserve Bank of St. Louis

Central Western Banker, January, 1930

s

The Widow^s Third
and the

W ID O W S Q U A R A N TIN E
will leaving his wife the use and in­
“ 'C 'O R IN STAN CE, here’s a ring
A n interesting legal problem
come of all his property during her
that I picked up at a second hand
life, then to be equally divided between
in which it is proved that
store on Joppa street last week. If it’s
Harry and Jack. About the time he
glass it’s worth fifty cents. If it’s a dia­
when in doubt it pays to con­
made the will or a little later, Jack was
mond it’ll bring fifty dollars— my own
sult your attorney.
starting in his new store down on Lan­
general knowledge tells me that much
sing street, and we lent him $3,500 on
without consulting any jeweler, but
who’s going to tell me whether it’s a B y the Legal Department his note endorsed by his mother.”
diamond or not? In order to be sure on
Rather Risky
that point I ’ve got to go to a jeweler
“ Old Henry Emery died this morn­
who understands his business, and it’s ing,” the cashier explained.
“ Wasn’t that rather risky, consider­
the same way with our banking prob­
“ As odd a fish as he ought to have ing all circumstances,” demanded Di­
lems. Consult the bank’s attorney, and been dead years ago,” grunted Keith.
rector McPherson. “ Jack was just a
abide by his say-so,” Director John
young fellow with no business, and no
A fter His Death
Malone averred.
tangible property of his own.”
“ W e thought it was safe enough at
“ If a fellow comes along selling a
“ The oddest trick he ever did didn’t
new floor brush and the bank janitor come out till after he was dead,” de­ the time,” defended the cashier. “ W e
wants to buy one, surely you haven’t clared the cashier.
felt that as long as old Henry was
got to run to a lawyer to know whether
“ Well, it was a m ighty peculiar alive he’d stand behind the young fel­
they ain’t some deep point of law stunt, then, that’s all I ’ve got to say,” low, and if he died Jack and his moth­
er’d have enough between ’em to pay
tangled up in the deal somewhere,” de­ averred Keith.
a dozen notes the size o f
manded Director Keith.
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiitiitiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiitiiiiiiiniiiiiiiiiiiiiii:itiiiiiiiiiiiiiii!tiiiiiiiiiiiiiiiimiiiiiiiiiiiiiiiiiiiiiiiiii!ifiiiiitiiiiiiiiiiiiii
“ That’s an extreme case,
that.”
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiitiiiiiiiiiiiiiiiiMtiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiitiiiiimiiiiiiiiiiiii!iiiiiitimiiiiiniiiitiiiiiitiiiiiiiiii:iiiiiiiiiiiiiiiiiiiiiiiiiiii
“ Henry’s dead now, and
and your illustration neith­
w h ere does the bank
er proves your argu m en t
“ Legally speaking quarantine is an absolutely legal right
stand?” queried Keith.
nor does credit to your in­
which the widow has of remaining in the residence of her de­
“ A Cynical Old Chap”
telligence,” replied Malone.
ceased husband for forty days after his death. The idea is as old
“ That’s where old Hen­
While Keith was evolv­
as the Magna Chart a and Kent says in his Commentaries that
ry pulled off the odd stunt
ing a fitting and breezy re­
this is the law in all the United States.”
and queried us,” replied
ply, the cashier intervened
the cashier. “ He always was
with the laudable intention
IIIIIIIIIIIIIIIIIIIIIIIIIIIIMIIIIIIIIIIIIIIIIIIIIIIIIIIIIIllllllllllllllllllllUIIIIIIMIIIIflllllllllllllllllllllllllllimilllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllltlimillllll
111111!111111111111111i 111111111•11111111-i1111111> 1111111111111111111 1111 11111i |i11111111111111111111111111111tl 11111111111111111111111111111111111111! 11111111111111111111111111111111111111111111111111II11111lit 11
a cynical old chap— never
of pouring oil on the wat­
thought that even his own
ers which threatened to be­
family cared a rap about him. He al­
“ It certainly was. Old Henry, you
come troublesome.
“ I think Mr. Malone’s right as a know, had a son Harry, and after his ways used to argue that all anybody
general proposition,” he suggested, “ but first wife died he married the widow cared about him was the money they’d
I have an instance in my mind right Owens,” the cashier went on, “ and his get when he died,” the cashier went
now in connection with our business son Jack Owens has always lived with on, “ and about a month ago when Doc­
them.”
tor Mack told him he didn’t have more
that certainly seems to bear out Mr.
“ And if anything Henry thought as than four or five weeks to live, an or­
Keith’s argument.
much of the Owens boy as he did his iginal thought popped into his eccentric
The Attorney Speaks
own son,” interrupted Director Ride­ head. He knew that his wife and the
Steve Starleigh, the bank attorney, out. “ At any rate he used them both
two boys knew how he’d willed his
property and felt that all they wanted
alike as far as anybody could see.”
broke in at this stage.
“ A certain judge was once persuad­
“ Well, that’d prove to any stranger was for him to die quick. ‘I ’ll fix it so
ed by a friend to read Tennyson’s ‘In that’d never heard of him at all that he that the date of my death’ll mean
something to them,’ he said.”
was odder than an off ox,” said Keith.
Memoriam,’ he suggested.
“ And he made a new will ?” suggest­
“ As a general rule, in a case like that
“ Y es?”
“ A few days later the poetical friend the two boys fight like wildcats and ed Malone.
“ He did— with a vengeance,” replied
dogs, and the father sides with his
inquired how he was getting along.
the cashier. “ His real estate consisted
“ ‘Fine,’ said the judge, ‘but they’re own.”
“ It wasn’t so in Henry’s case,” de­ of the house he lived in, and just to
a long time getting to the facts.’ Now
show how peculiar he was, he’d never
clared the cashier. “ Harry and Jack
that you fellows have come down from
fancy and theory to ‘brass tacks,’ let’s got along better than lots of own bro­ put his money in a bank, couldn’t coax
have the particulars of this case you thers, and Henry seemed to think they him to open an account. Instead he fit­
were the salt of the earth. He made a ted up in the house an elaborate burjust mentioned.”
Central Western Banker, January, 1930

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

M A K I N G THE

N O RT HW E S T

FINANCIALLY IN D E P E N D E N T

dependence, increased banking facilities
and complete stabilization.
Beginning with a nucleus o f 5 banks,
in less than a year this group has grown to
include 86 banks and trust companies, with
combined resources o f $ 4 7 2 ,0 0 0 ,0 0 0 .
Under the Northwest Bancorporation
plan, all o f the advantages o f personal
contact and local institutions have been
preserved, and added to them are the
new advantages that exist in the com ­
bined strong facilities and experience of
the entire group.
The middle Northwest already feels the
stimulus o f this new financial
structure and is experiencing
the benefits o f greater finan­
cial resources.

•

NORTHWEST BANCORPORATION


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

RESOURCES

OVER

M I N N E A P O L I S ,

4 7 2,00 0,000

DOLLARS

M I N N E S O T A

For complete information concerning the Northwest Bancorporation
write fo r our illustrated booklet “ Blazing a New Financial T rail’’

Central Western Banker, January, 1930

10
glar-proof safe with an intricate timelock arrangement, and kept all his cash
and negotiable securities in it. As soon
as he got his verdict from the doctor
he turned all his personal into cash or
bearer bonds, put the whole ‘swag’ in
the safe, and set the time lock to open
in thirty days. Then he made a new
will and willed the house to his boy
Harry, so that as soon as he dropped
out Harry would be entitled to the
house. Then he put a clause in the will,
that if the time lock opened when
Harry was in possession of the house,
the stuff in the safe was to be his— if
not to go to the widow and Jack share
and share alike.”
“ Some scheme,” agreed Starleigh.
“ He figured on keeping them guess­
ing till the last minute, and I imagine
he was so busy chuckling over his
bright idea that he didn’t have any
time to think about dying.”
“ Well he’s dead now, and likely he’s
got a lot to think about by this time,”
declared Keith.
“ When does that safe open?” de­
manded McPherson.
“ Tomorrow morning at ten.”
“ And as soon as old Henry dropped
out Harry was entitled to the posses­
sion of the house.”
“ Sure.”
“ And Jack and the widow lose.”
“ They certainly do.”
“ And our bank’s a loser, too?”
No Doubt About It
“ There’s no doubt about that,” ad­
mitted the cashier, “ and J just men­
tioned it about being an isolated in­
stance that bears out Mr. Keith’s ar­
gument.”
“ How so?” asked Starleigh.
“ For the simple reason that the old
man made his will that way and set
the time clock, so that the whole thing
depended on the date of his death.” ex­
plained the cashier. “ When old Henry
died before the safe opened Harry was
entitled to the possession of the house
and the cash in the house went to him
automatically. O f course, it’s a straight
question of law, but we know that
Harry can step in any time now— may­
be in possession this very minute— so
the whole thing’s settled right now. I
don’t say Mr. Keith is right as a gen­
eral proposition, but here’s one case
where his rule holds good. W e simply
know that Jack and his mother and
the bank are out in the cold, so what’s
the use of asking a lawyer to tell us
what we already know?”
Starleigh got up, walked across to
the telephone, and called up the Em­
ery house.
“ That you, Jack?” he asked.
“ Yes.”
“ When is Mr. Emery’s funeral?”
Central Western Banker, January, 1930

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

“ Tomorrow at half past two.”
“ Y ou and your mother are still liv­
ing in the house?”
“ Yes, but Lawyer Elkins was here
today and gave us one hour to pack up
and get out,” replied Jack. “ He said
that according to the will Harry was
entitled to immediate possession, and
threatened us with all sorts of dread­
ful consequences if we didn’t get right
out. Mother was terribly upset over
it.”
“ Elkins and Harry were looking
ahead to the time-lock giving up its
treasure,” suggested Starleigh.
“ Sure— Elkins said as much.”
“ But you’re still h o ld in g fo r t ?
Haven’t moved out yet?”
“ No— I was away at the time, and
when I came home mother was half
crazy —- didn’t know what to do or
where to turn,” replied Jack. “ Of
course, I can’t see where we’ve got a

ghost of a show according to the will,
but I told her we wouldn’t budge an
inch till I ’d see what you said about it.
I was glad when you called, for I’ve
been trying to get you all evening.”
“ Well, stay right where you are.”
“ What’s that?”
“ Tell your mother not to stir from
the house or let anybody scare her out
for forty days after Mr. E m e r y ’ s
death.”
“ Not even to go to the cemetery?”
“ No— tell her to stay right in the
house,” replied Starleigh. There are
lots of reputable citizens who’ll be de­
lighted to see that the late Mr. Emery
is decently interred.”
“ And the law’ll back us up in that
move?”
“ Certainly— if not I wouldn’t advise
you to stay.”
(C ontinued on N ext Page)

“Lucky Strike,” grand champion crossbreed steer entered by Elliott Brown of Rose
Hill, Iowa, at the 1929 International in Chicago. This picture was taken in\ front of the
Stock Yards National Bank of Chicago, and sent to the Northwestern Banker by A. S.
Bagnall, assistant cashier, who is annually very active in boosting the International.
A new record was set in the auction ring during the last International at Chicago
when Elliott Brown’s grand champion steer, the grade Angus calf, brought $8.25 a pound.
The buyer was the J. C. Penney Stores, with Mr. Penney himself in the ring super­
vising the purchase. The same firm last year likewise set a record when they paid $7.00
a pound for Clarence Goecke’s grand champion H ereford steer, Dick.
The champion weighed 950 pounds after passing through the auction and brought his
new owner a total o f $7,837.50 in addition to which he earned several hundred dollars in
prize money.

11
“ What you say goes,” agreed Jack,
“ but do you realize that that’ll make
us in possession of the house when the
safe opens and give us the contents in
it?”
“ Yes-— that idea had occurred to
me.”
“ Well, I ’m glad for mother’s sake,
and also because it’ll put me in a posi­
tion to pay the bank in full.”
“ Sit tight,” ordered Starleigh and
rang off.
“ Do you pretend to say that Jack
and his mother can stay in possession
of that house for forty days after the
old man died, in the face of the will
that he made giving the house to Har­
ry?” demanded Keith.
“ That’s just what I told Jack.”
“ But, I don’t see through it all,”
persisted Keith.
“ O f course not, for you’re not a
lawyer, but it’s simply a case of the
widow’s quarantine,” explained Star­
leigh.
“ The widow’s 'quarantine’ ?” gasped
the astonished director. “ Old Henry
didn’t die of smallpox did he?”
“ There spake the layman’s mind,”
scoffed Starleigh. “ As a matter of fact
as well as law, if a man dies in this
state owning real estate, his widow is
entitled to her dower in all the real es­
tate owned by her husband at the time
of his death.”
“ That’s what we call the widow’s
thirds,” isn’t it?” demanded Keith.
“ Certainly.”
“ Well, any fool knows that.”
“ But what some fools don’t know is
that, in addition to her dower, the
widow is also entitled to her ‘quaran­
tine’,” replied Starleigh.
“ I was in quarantine once out west,
and I never put in such a lonesome
time in my life,” Keith concurred.
“ Legally speaking,” explained Star­
leigh, “ quarantine is an absolutely le­
gal right which the widow has of re­
maining in the residence of her deceas­
ed husband for forty days after his
death. The idea is as old as the Magna
Charta, and Kent says in his Commen­
taries that this is the law in all the
United States.”
“ Then the widow will be in legal
possession of the house tomorrow?”
suggested Malone.
“ Certainly, unless she’s foolish enough
to let Elkins bluff her into leaving, and
I don’t imagine she will go after my
telephone conversation with Jack.”
“ Then according to the terms of the
old man’s will she’s entitled to what­
ever is in the safe w hen the safe
swings open,” McPherson remarked.
“ Sure.”
“ And we’ll get our money in full,”
declared the delighted cashier.


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Federal Reserve Bank of St. Louis

“ It pays to consult your attorney
even when the case looks hopeless,
doesn’t it,” suggested Fenwick, turning
to the crestfallen Keith.
“ I wonder what can be keeping the
president?” grumbled Keith. “ T his
meeting should have been under way
half an hour ago.”

turned tails and ran leaving grandpap
to his fate.
As they came panting into the yard
they called, “ Oh, mammy, mammy,
grandpap done got et up by a b’ar!”
“ Foolishment what yo’ speaks, chillen. Y o ’ grandpap done come in ten
minutes ago wid de dogs!”

Grandpap Still Lives

Modern Romance

An old black man who had spent
many years in a wheel chair wanted
to go on one last coon hunt before he
died. So he and his grandchildren, ac­
companied by several dogs, started
out.
Hardly had they pen etrated the
swamps when they met a bear. All

R o m ie t : “ S o we shall elope at mid­
night.”
Ju l io : “ Yes, darling.”
R o m ie t : “ And you will have your

suit case all ready when I sneak up to
the door ?”
Ju l io : “ Sure. Mother is packing it
for me now.”

For greater economy
in telephone cable
O V E R eighteen hundred
telephone conversations at
once — 50% more than any
previous cable could carry,
are possible through this
new cable which is little
thicker than a man’ s wrist.
It makes feasible a 50%
increase in capacity of
many existing underground
telephone conduits. It will
do away with the necessity
of tearing up many streets
and will prevent further
over-crowding of pipes and wires
under the street surface in con­
gested districts.
This cable is one example of
the value of the research and de­
velopment work that is carried
on by the American Telephone
and Telegraph Company and the
Bell System Laboratories. Hun­
dreds of major problems of this
sort are constantly under investi­
gation and in a year approximately

6,000 modifications have been per­
fected to facilitate manufacture
and meet special plant situations.
This policy of improvement is
part of the careful management
that enables the Bell System to
render increasingly better tele­
phone service at the least cost
consistent with financial safety to
its security holders.
M a y w e send you a copy o f our
booklet,

B ell Telephone Securities’ ’ ?

BELL T E L E P H O N E
S E C U R I T I E S C O . Inc.
195 Broadway, N ew York City

Central Western Banker, January, 1930

12

SM ALLER

and more convenient
American Express

Travelers

The above illustrates the relative size of the new and old Cheques Jfc"

AN Y of your depositors are probably num­
bered among the 850,000 travelers who
carry American Express Travelers Cheques dur­
ing the year. They will be pleased when you
show them the new Cheques, because they are
much more convenient. Eight notable features of
this travelers’ universal currency are :
i. The new Cheques are smaller ... have one
fold ... and make a thinner, more compact
wallet.
2. The fold does not interfere with the two
signatures.
3. The Cheque covers are thinner, more flex­
ible, of better quality.
4. They fit nicely into the ordinary wallet or
bill-fold designed for the new Government
bills.
5. For the women—they nestle into any siz,e
handbag without crowding.
6. For the men—they slip comfortably into
the inside pocket.
7. Their small size enables the traveler to pro­
vide himself in advance with sufficient funds
for his entire trip.
8. The general appearance of the Cheque is
unchanged—same blue color, same signature
method of identification.

M

Central Western Banker, January, 1930

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Though both sizes of Travelers Cheques will be
in circulation for a period, both will be readily
honored. This situation is comparable to the
larger and smaller U. S. paper currency.
The reduction in size of these Cheques is an­
other evidence of the American Express Com­
pany’s alertness to travelers’ needs, whether it
be a matter of safety, helpful personal service,
or, as in the present case, a matter of greater
convenience for patrons.

Steamship tickets, hotel reservations, itin­
eraries, cruises and tours planned and
booked to any part o f the world by the
American Express Travel Department

13

jg A R L Y resumption
stocks to build up
of activity in the
their junior equities,
bond market appears
are undoubtedly situ­
to be a foregone con­
ated to accomplish
clusion. The theory
such bond financing
that common stocks
as may be necessary
had permanently dis­
to meet their require­
placed sound bonds
ments for the future.
B y C. W* Sills
as an investment medium with the
Although a good volume of such fin­
great mass of conservative investors,
Vice president H alsey, Stuart & Co.
ancing is in prospect, there is little
is now shown to be as fallacious a be­
likelihood that it will be carried
lief as many of the other economic and
the year, dealers have not been en­
through on an extensive scale until
financial theories that characterized couraged to carry any very substan­
there is a material further improve­
the recent speculative boom, and tial inventories. Undigested issues of
ment in the prices prevailing on this
which, indeed, are an inevitable ac­ important size are virtually non-exist­ class of securities.
companiment of overdone speculative
ent. Liquidation by banks has for
Reflecting the trend toward a some­
enthusiasm whenever and wherever it
some time been quite well out of the what reduced volume of new construc­
appears. The value of sound senior
way. Furthermore, there has been a tion during 1929, and the disposition
obligations, paying a fixed and regu­ considerable retirement of bonds dur­ among leading investment bankers to
lar rate of income, is again firmly es­
ing the present year, which has also
scrutinize all new projects with extra
tablished. It is only a question o f time
operated to reduce the available supcare, real estate bond issues have also
until the advantages of investment ply.
appeared in the market in recent
over speculation again receive their
Consequently, the unabsorbed sup­ months with comparative infrequency.
due and just recognition in the securi­
ply of bonds in the market is small,
Such real estate bond financing as has
ties markets of the country.
and there appears to be little disposi­ been done during the year, however,
The present status of the bond mar­ tion among corporations to add to the has been distinguished by an increased
ket can perhaps best be understood supply through further offerings until
number of issues of large size and
through a review of what has taken their senior securities will command
recognized merit.
place in that field dur­
Volume of Municipals
ing 1929. The inactiv­
llllllllllllllllllllllllllllllllllllll|||l||||||||||||||||||||||||||||!|||||||||||||||||||||||M IIIIIIIIIIIIIIIIIII]||||||||(lllllllllllllllll|i|||ll,llllllllllllllllllllllllll|llllll|,llllll|lf|||lllllllllllll|||||||l||
ity and tendency toThe volume of mu­
111111II111II1111II111111111111111111111111111111II111111111111|1111111111111111111111J1111111111111111•1111111,11•111!111111111111111111111111i11 t,1111•I„1111111111,1111111,11111111111i111111111111111111)|,,11111H
,
w a r d softening o f
nicipal financing dur­
prices which carried
ing the past year has
“ W ith the major obstruction to progress definitely re­
over from the second
h e l d up remarkably
moved and with an excellent outlook for a period of easier
half of last year, per­
w e l l , although a 11
money there is much justification for the view that the com­
sisted into 1929, and
classes of public obli­
ing year will see a definite resumption of activity in the bond
b e c a m e more pro­
gations during the first
market.”
nounced with the in­
ten months showed
crease in speculative
more liberal yields than
Illlllll!lllllllllllllllllllllll||||||||'l|||||l!ll|l|||||||||ll!llllllllllllllllllll||||l|||||||||||||||||||||||llilllllll|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1111111111111111m111111111111111111111111111111111111111111111111111111111j1111111111.<111111111111111111111111111111,,11,11,m11,ui,i,i,,11,i,1111111111111111,nnniniuuhihnu1111nuni!ini■hi!•u11un11
activity. Only during
t h e annual average
the last two months of
yield for any of the
the present year has
past five years. The
there been a perceptible strengthening materially higher prices than those attractive income offered by strictly
in the prices of high grade bonds, and now prevailing on comparable issues. first class municipal bonds has for
an increasing interest in the long-neg­ In view of this situation, any material some time kept them within reach of
lected short-term class.
improvement in the demand for bonds a group of purchasers which ordinar­
would undoubtedly have a marked ily confines its investments mainly to
Supply Limited
strengthening effect upon the prices of taxable issues. Undoubtedly, one of
The supply of high grade bonds has those available.
the principal reasons for the substan­
not been great at any time during the
The total volume of public utility tial volume of tax-exempt bonds ab­
year. The total volume of bonds and obligations offered during this year sorbed in the face of the unfavorable
notes issued during 1929 will in all will run in the neighborhood of $1,- conditions of the present year, has
probability not greatly exceed $4,- 000,000,000, a total which compares been the recognition among institu­
300,000,000, which is approximately with $1,654,343,900 during 1928. tions that unusual values were being23 per cent under the total for 1928, This class of investments has been offered. The demand for tax-exempt
and about 21 per cent below the aver­ among the first to respond to the re­ bonds, particularly in long maturities,
age for the five years from 1924 to cent upturn in the price of high grade was fairly active at the beginning of
1928. Because of the high cost of bonds. The leading public utility com­ the year, but showed a declining tend­
money and the sluggishness o f the panies o f the country, having availed ency with the approach of spring. A c­
market throughout the greater part of themselves of the recent popularity of
tivity again increased the early part


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Present Tendencies
in the Bond Market

Central Western Banker, January, 1930

14
of the summer, but had pretty well
worn itself out by August. Demand
has again asserted itself since October,
with increased interest in short matur­
ities which earlier in the year went
begging, and with a distinct firming
of prices. With the approach of the
year-end, the outlook is for further
upward revision of prices in the event
that really strong demand develops in
the early months of the new year. An
additional factor of importance in this
connection should be the renewed ac­
tivities of hundreds of dealers who
have for many months given tax-ex­
empt bonds little or no attention.
The issuance of bonds for industrial
and miscellaneous purposes showed a
substantial decline from the 1928 fig­

OUR
WILL

BE

MAILED

ure— which, by the way, represented
a reduction of more than one-third
from the total for 1927. The reason
for the sharp reduction in the financ­
ing of industrial enterprises through
bonds, of course, was the condition
which prevailed in the stock market.
So keen had grown the public appetite
for stocks that it was relatively easy
for industrial enterprises, of nearly ali
types and sizes, to finance their needs
through the issuance of common stock.
Several of the country’s leading in ­
dustrial corporations took advantage
of this extraordinary situation to re­
tire bonded indebtedness through the
issuance of additional stock. Through
operations of this kind, these compa­
nies have placed themselves in an ex­

OFFERING

LIST

REGULARLY

UPON

REQUEST

G M A C obligations
enjoy the protective background o f highly
liquid assets, with credit factors widely diver­
sified in region and enterprise. Long regarded as
a national standard for short term investment,
they have been purchased by thousands of banks,
institutions and individuals the country over.
available in convenient maturities and
denominations at current discount rates

G eneral
A cceptance
O FF I C E S

Executive Office

CAPITAL,

-

IN

M otors
C o r p o r a t io n

P R I N C I P A L

B ro ad w ay at 5 7 t h S t r e e t

SURPLUS
OVER

AND

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Flew York City

UNDIVIDED

$ 6 6 , 0 0 0 , 0 00

Centrai Western Banker, January, 1930

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

C ITIES

PROFITS

ceptionally strong position for financ­
ing through the sale of bonds if and
when this becomes desirable or neces­
sary. A feature of the bond financing
accomplished during the year was the
large number of convertible and stock
warrant issues offered. Resort to
these features was necessary even in
the case of some of our leading Ameri­
can industrial corporations, which is
an interesting commentary upon the
state of the public mind during this
period.
Railroad Financing
Railroad financing showed a moder­
ate increase in volume for 1929, as
compared with 1928. The percentage
of new capital as distinguished from
refunding was substantially larger this
year than last. The remarkable im­
provement in railroad earnings, result­
ing primarily from increased efficiency
and operating economics, has steadily
enhanced the credit position of the
railways, although the time is not yet
at hand when the five and threefourths per cent return allowed under
the Transportation Act will be gener­
ally realized. Further increases in
railroad earnings are obviously to be
desired, since these are essential to the
building up of junior equities and the
production of a well-balanced capital
structure. The improvement in ope­
rating efficiency referred to has been
brought about in spite of the fact that
the scrapping of antiquated equipment
has proceeded faster than its replace­
ment, and in various cases, volume of
traffic has actually been increased in
spite of decreases in the amount of
rolling stock. It has been estimated
that the railroads of the country are
justified in spending about a billion
dollars a year for new locomotives and
cars, labor-saving devices, and other
improvements. Indications are that
the coming year will see a considerable
amount of additional equipment fin­
ancing.
The high money rates in effect
throughout the greater part of this
year have operated very effectually to­
ward keeping foreign borrowers out
of the American market. Foreign
government bonds marketed in the
United States during the year repre­
sent only a small fraction of the
amount brought out in 1928. Foreign
bond financing, other than govern­
ment, also showed a drastic decline
from last year’s figures. Since most
of the important foreign countries
must continue to look to us as their
principal outside source of capital, the
situation which has prevailed during
the past year and a half has undoubt­
edly caused a suspension of many wor­
thy enterprises abroad, both of public
and private character. It is an inter-

15
esting fact that foreign payments to
American investors have for some
time been exceeding the amount of
capital sent abroad for investment.
In 1928, for example, the investors of
this country purchased about $1,027,000,000 in foreign securities, but they
received $1,066,000,000 in interest and
dividends, and the repayment of capi­
tal. In other words, we received
about $39,000,000 more from foreign
countries than we lent them; and when
the figures are finally cast up for 1929,
the amount received from foreign bor­
rowers is sure to be greatly in excess
of the amount they were able to ob­
tain here in the form of new loans.
Eventually, of course, the situation
will right itself, and American invest­
ors will again extend credit in sub­
stantial amounts for the financing of
foreign enterprises.

at the beginning of March last year;
the industrials, 9.87 points cheaper; and
the railroads, 5.32 points cheaper. E x­
pressed in terms of income, public
utility bonds yielded nearly half of
one per cent more at the beginning of
December, 1929, than on March 2,
1928; industrials yielded better than
three-quarters of one per cent m ore;
and railroads, a third of one per cent
more. This is true, notwithstanding
the fact that there has undoubtedly
been substantial improvement during
the time in the security behind the
bonds included in each of these three
groups. A similar comparison of fif­

teen representative foreign b o n d s
show an average price of 103.94 on
March 2, 1928 and 99.66 as of Decem­
ber 2, 1929— a difference of 4.28
points, or an increase in yield of
a third of one per cent.
Clearly, we are still in an exception­
ally favorable period from the stand­
point of the bond investor. With the
major obstruction to progress definite­
ly removed, and with an excellent out­
look for a period of easier money,
there is much justification for the view
that the coming year will see a defi­
nite resumption of activity in the bond
market.

The Present Situation
The present situation and outlook
in the bond market justifies more op­
timism than at any time during the
past year and a half. Speculation,
which occupied the center of the stage
throughout the greater part of that
time, rose to such heights that it inter­
fered very greatly with the investment
market and with numerous forms of
business development which required
capital at moderate cost. Since O c­
tober, 1929, the first long step has been
taken toward restoring true invest­
ment to its proper place in the finan­
cial scheme of things. That the pur­
chase of bonds by banks is again un­
der way is indicated by the fact that
the reporting member banks of the
Federal Reserve System have in re­
cent weeks shown a substantial in­
crease in their bond holdings. Vari­
ous factors in the financial situation
have so far prevented anything like
full recovery in the bond market. Such
strength as has appeared has not to
any great extent taken away the nu­
merous opportunities for obtaining
sound security and liberal income in
either short or long term bonds. To
illustrate the values still prevailing
among different types of bonds we
need only compare the levels prevail­
ing in recent weeks with those in the
early months of 1928. A group of
thirty representative issues, compris­
ing ten each from the public utility.
industrial and railroad groups, showed
average prices of 102.69, 100.57 and
100.85, respectively, as of March 2,
1928. On December 2, 1929, the av­
erages for these groups were as fol­
lows: Public utilities, 96.31; indus­
trials, 90.70; radroads 95.53. In
other words, the public utility bonds
were 6.38 points cheaper at the begin­
ning of December, 1929, than they were


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Federal Reserve Bank of St. Louis

Central Western Banker, January, 1930

16
Protecting the Investor

Scheming stock salesmen have an
eye on the several hundred million
dollars paid out each year by insur­
ance companies on death claims ac­
cording to the National Better Busi­
ness Bureau of New York City. The
bureau has just released a warning to
employees in America’s industries
cautioning them to carefully scruti­
nize all solicitations from unknown
firms following the death of some
member of their family.
The warning exposes a practice on
the part of certain unscrupulous stock
selling companies of compiling a list of
“ prospects” from among the surviv­
ors o f deceased as reported daily in

the obituary columns of newspapers
throughout the country. The warn­
ing is one of a series recently inaugu­
rated by the National Better Business
Bureau to educate the American pub­
lic to the methods of the swindler.
Each week posters are distributed
to those industries which have agreed
to take part in the educational pro­
gram in behalf of their employees.
Every poster exposes a principle of
some swindling scheme and in this
way employees of these industries are
given the benefit of knowledge through
which they recognize the swindler by
his scheme and avoid him.
A bulletin accompanying the poster
to industrial executives points out

that in 1928 life insurance payments
on death claims by all companies
amounted to nearly $706,000,000. The
bulletin states further:
“ If even a half of one per cent of
this amount could be captured through
high pressure salesmanship the loot is
well worth the tedious effort to keep
the list of names up to date.
“ Selling solicitations are timed to
reach the prospect before insurance
funds are paid and in spite of the edu­
cational matter made available to
beneficiaries by leading insurance
companies these solicitations succeed,
too often, in luring an inexperienced
person to disaster through the hope
of large profits.”
Unit Banking on Trial— and
W hat W ill be the Verdict
(C ontinued

For the Convenience
OF I N D I V I D U A L A N D C O R P O R A T E

INVESTORS
P R IN C IP A L C O R R E S P O N D E N T OFFICES IN T H E
U N IT E D S T A T E S A N D C A N A D A
Albany, N. Y.
Atlanta, Ga.
Atlantic City, N. J.
Baltimore, M d.
Birmingham, Ala.
Boston, Mass.
Buffalo, N. Y.
Chicago, 111.
Cincinnati, Ohio
Cleveland, Ohio
Dallas, Texas
Davenport, Iowa
Denver, Colo.
Detroit, Mich.
Hartford, Conn.
Houston, Texas

Indianapolis, Ind.
Kansas City, M o.
Los Angeles, Cal.
Louisville, K y.
Memphis, Tenn.
Miami, Fla.
Milwaukee, Wis.
Minneapolis, Minn.
Newark, N. J.
New Orleans, La.
Oakland, Cal.
Omaha, Neb.
Pasadena, Cal.
Philadelphia, Pa.
Pittsburgh, Pa.
Portland, Me.

Portland, Ore.
Providence, R. I.
Rochester, N. Y.
St. Louis, M o.
St. Paul, Minn.
San Diego, Cal.
San Francisco, Cal.
Scranton, Pa.
Seattle, Wash.
Spokane, Wash.
Tacoma, Wash.
Toledo, Ohio
Washington, D. C.
Wilkes-Barre, Pa.
Montreal, Canada
Toronto, Canada

F O R EIG N OFFICES
London, England
Manchester, England
Amsterdam, The Netherlands

Geneva, Switzerland
Tokio, Japan
Shanghai., China

The National City Company
R a tio n a l C ity Bctn\ B u ild in g , TJew Y or\
IN V E ST M E N T SECURITIES

from

Page 4)

now stand before this Court with dean
hands. Had we not exerted every re­
source at our command to help feed
and maintain those 6,000,000 men who
were fighting our battles on the bloody
front, at Verdun, on the Marne or
wherever ordered, we would have been
charged with being unpatriotic and
even with treason. W e admit error of
judgment but none of heart. W e know
our world has been small and that the
joys and sorrows of our customers are
ours. W e know also that unit banking
is the heart of our community. From
our experiences we find the unit bank
is the life and prosperity of it, and
when it dies stagnation follows. It is
possible had we diversified in our in­
vestments we might have been forced
to appear before the bar of public
opinion, but, may it please the Court,
some of our most essentially agricul­
tural states have the great honor of
buying more Liberty Bonds per capita
than the other states in our great
Union. Now, had we invested even
more freely in the premier obligation
of the United States, to-wit: its own
bonds as we are now advised to do and
had we paid 100 cents on the dollar
for them as all patriotic Americans
did, then, with the deflation, and being
forced to sell them for from 80 cents
to 90 cents on the dollar to meet the
demands of our deflated depositors,
would we have been so much better
off? To go further, had we invested in
good bonds or stocks our p o s itio n
would have been worse. W e freely ad­
mit we could have done better and pos­
sibly worse.
Adverse Economic Conditions
Authorities who have given the mat­
ter serious thought now freely and
honestly say it was not so much the
fault of the banking system in agricul-

Çentral Western Banker, January, 1930

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Federal Reserve Bank of St. Louis

17
tural sections but a combination of ec­
onomic conditions o v e r w h ich the
banking fraternity had no control. In
our serious moments we often wonder
if we could be standing before the bar
of public opinion today had we taken
a hardboiled attitude towards Liberty
Loan drives, Red Cross activities and
using our influences in helping to win
the War. Personally, had I to do it
over again, I would unhesitatingly fol­
low the course I did.
Now, to discuss the subject “ Unit
Banking Best Adapted to Agricultural
Regions,” I doubt yet if the program
committee appreciate the narrow limi­
tation of that subject. It is the popular
thing to follow the new and discard the
old. Those operating under state char­
ter stand absolutely alone with no oth­
er resources than their assets and in­
dividuality. Others have national char­
ters and are linked up with the Feder­
al Reserve System originated solely to
abolish money panics from the finan­
cial map.
Banking in an agricultural section
and in an industrial section or a city
are two distinct things. With aid of a
tariff wall and a pay roll the industrial
banker can figure fairly close. The ag­
ricultural banker has no payroll to
count on each week but if the cotton,
wheat or corn crop is good and the
price fair his payroll comes in a lump
and deposits skyrocket. If crops and
prices are poor he is forced to carry
his customers over for another year.
This mode is fast changing as farmers
also are diversifying but in a measure
this condition will continue to exist.
The agricultural banker has many
unforeseen things to contend with. In
Florida the Mediterranean fly has ap­
peared, in the cotton fields they have
boll weevil, in the eastern corn belt the
corn borer, in the grain belt this fall
we are facing an embargo on grain
which, in the height of threshing time
drove the price of barley in my home
town to 36 cents per bushel. Coupled
with this so-called alleged need of an
embargo which has fooled no one came
the urgent advice of grain commission
men to local elevators not to store
grain. This advice was generally fol­
lowed by elevators so farmers without
storage capacity and with obligations
to meet were forced to accept the low
price per bushel in face of a world’s
shortage in grain crop. Country banks
were most willing to loan money on
storage checks but were helpless to
stop the dumping of grain by refusal
of elevators to issue storage checks.
To conduct a successful bank under
such conditions calls for the highest
type of individuality. This is where the
other plans of banking make the sparks


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Federal Reserve Bank of St. Louis

fly claiming that the allocation of cred­
its is of prime necessity. Theoretically
they are correct. From a practical point
of view there is chance for discussion.
The siphoning of credit from one sec­
tion to another is a great theory if it
were not for the fact that every so o f­
ten somebody comes along and cuts the
pipe. To illustrate, only 25 years ago
Canada had 35 parent banks. Today it
has, through failures and merges, 11,
a loss of 75 per cent. Great Britain’s
banking history is practically the same.
But why go to foreign countries. How
about the recent event in New Jersey
and the debacle of Florida and Georg­
ia where unfortunately both of two

forms of banking now in the public
eye were hopelessly enmeshed. In 1925,
Mr. Bennett, of Banks for Georgia,
made certain recommendations to the
Legislature to stop the siphoning of
certain lines of credits from one bank
to another, showing quite clearly he
was aware of the situation or saw
dangers of embarrassment. Owing to
determined opposition of the bankers
his bill never was reported out of the
Committee.
This reminds me of a similar situa­
tion which confronted our forebears
100 years ago when the Charter of the
United States Bank expired. The bank
had branches in all of the States and

COURAGE

vs.

CAUTION
Upon what basis will your investment policy for
the new year rest?
There are times when caution is the most desir­
able thing- in the world— for instance, when everyone
is speculative minded and “ the market’s going to the
moon.” And there are times, also, when caution is
merely the perogative of the unthinking — when
courage is the unique, the desirable quality.
Today’s such a time. When pessimism is ram­
pant, when the baseless rumor is the fashion of the
moment, then is the time to purchase sound invest­
ment securities. Such securities comprise our current
investment offering. Fortunes are founded at such
moments as these— through courageous purchase.

SMITH, LANDERYOU & CO.
210 Farnam Building,
Omaha, Nebraska
Phone Ja. 5065

Central Western Banker, January, 1930

18
leading cities. It had a world of influ­
ence and power which it apparently
did not fail to build up and utilize.
Congress had passed a bill to renew
the Charter but President Jackson saw
the danger of a bank w ith m any
branches scattered over the Union.
Andrew Biddle, unable to change the
views of the President, informed him
that the bank could name the Gover­
nor of any state and could, by its pow­
er and influence, name the President
of the United States. The President
replied, “ If the United States Bank
has all the power you say it has then
it has more power than anything in a
free country ought to have and, by the
living eternal, it shall be destroyed.” It
is needless to say that he promptly ve­
toed the bill for the renewal of the
charter and based his campaign for
election on that single act. In the Con­
vention he was the victor 4 to 1 over
Henry Clay. The record shows that in
the next 16 months the bank increased
its loans 66 per cent altho being well
aware that the Government expected
to make large withdrawals to meet its
obligations. The President said, “ The
motive o f this enormous extension of
loans can no longer be doubted. It was
unquestionably to gain power in the
country and force the Government,
through the influence of the debtors, to
grant a new charter.”
Few “ Issues”
The American people are not differ­
ent today from what they were in
President Jackson’s time. Wide owner­
ship of stock and educational propa­
ganda will not save the new fast grow­

ing plans of banking if they are not
scrupulously true to their trust and do
not start dictating politics. If they do,
they will promptly and most efficiently
be taken care of by the voters, after
the politicians have had their innings.
Bankers should not overlook the fact
that ‘issues’ in politics are becoming
scarce as ‘hens’ teeth’ and the only way
you can tell the difference between a
Republican and Democrat these days
is to study his family tree.
Unit bankers have no need to fear
that they will be forced out of business
as long as they run clean banks and
hold their individuality in their com­
munities. Business ethics of 1929 will
not allow any unfair advantage to be
taken, but if competition should be­
come too keen the unit state bank can
take advantage of the Federal Reserve
System, and the politicians will do the
rest. Plenty of ammunition is being
manufactured now every day. The unit
bank will always have a definite place
in industrial and large reserve centers
and if things get too tough a little or­
ganizing will remedy matters most ef­
fectively.
The unit bank in agricultural sec­
tions has a definite place. The farmer
is individualistic and so should be the
bank, in order to meet any of the emer­
gencies that may arise from any such a
individualistic class of customers. The
banker closest to the farmer in agricul­
tural districts is by far the best equip­
ped to give service to those living in
the districts, simply because it is a
hand to hand proposition. They cannot
be successfully and efficiently taken
care of through a book of rules.

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Month after month we please more
banks and bankers and through
|

them serve their clients.

R ufus E . L ee & C o m p a n y
i

Investment Bankers

I

1116-1122 City National Bank Bldg.
1

Omaha

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Central Western Banker, January, 1930

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

L A ST M IN U TE N E W S OF
BANKS AND BANKERS
(C ontinued

from

Page

3)

000 and expenditures chargeable
against ordinary receipts were $3,848,000,000, giving a surplus for the year
of $185,000,000. This surplus has
been applied to retirement of the pub­
lic debt.
p O R M A L A P P R O V A L of the con
solidation of the Foreman Nation­
al Bank, the Foreman Trust & Sav­
ings Bank and the State Bank of Chi­
cago was voted at meetings of the
stockholders of the institutions. The
combined resources will be in excess
of $220,000,000. Banking quarters
will be at 33 North LaSalle Street.
The business will be conducted as the
Foreman - State National Bank and
Foreman-State Trust and Savings
bank. The personnel of the consoli­
dated banks will consist of all of the
officials and employes of the amalga­
mating banks with Walter W . Head
as president.
“ Thank Goodness— the
Bazaar Season is O ver!”
(C ontinued

from

Page 6)

The food for the supper was all do­
nated. I am always solicited first and
I ’m supposed to give the most because
I’m the cashier’s wife and have lots of
money (H a! Ha! the bunk). My do­
nation is alway discussed something
like this: “ Did she give T W O
CHICKEN S— and Two PIES— pota­
toes— and COFFEE besides? M Y !
she’s a generous giver ! A lot more so
than that last banker’s wife. She was
kinda tight. You bet she didn’t hurt
herself working, either. This one can
do anything she’s amind to turn her
hand to.”
I always hear it because some good
soul wants to tell me. I don’t mind
anymore. It seems I haven’t any sec­
rets from the world and it is not meant
to be unkindly, just a natural curiosity
because I ’m the cashier’s wife.
You may think a Bazaar just a Ba­
zaar no matter where held, but that
isn’t true out here. It is the big social
event of the year in a place like this,
where friendships are made in a busi­
ness way as well as social.
I have another job, Helen, that came
to me unexpectedly, which has given
me a great deal of pleasure as well as
hard work but because I could do it I
almost had to.
I ’ll tell you about it next time.
Yours for the Bazaars,
L

yda

C

o l l in s

.

19

Insurance
that death may
y O A N SW E R
remove him be­
A this question,
fore he has been
we mus t , of
able to accumu­
course, d e t e r ­
late an estate
m i n e what is
sufficient
the service ren­
to make an ade­
&
dered by life in­
quate provision
surance. 1 think
for his family. He seeks through the
we may say that its greatest service is
assistance of life insurance to relieve
in enabling an individual to accomp­
them from the financial burden which
lish a definite object which death
will inevitably result. He recognizes
might otherwise prevent. In the case
that in it is his only real hope of the
of the rich, the primary purpose which
immediate creation of an estate suffi­
life insurance serves is not usually that
cient to provide a livelihood for those
of making provision for dependents.
Having already an estate which is B y Hon. Edward A . Duffield near and dear to him who would oth­
erwise be left destitute.
ample for family needs, the aid of life
President, Prudential Insurance
Under these circumstances we are
insurance is not requisite for their pro­
Company of America
not surprised to find that those of
tection. The appeal to the wealthy
large incomes to whom the appeal of
man is making possible the perpetua­ (From address before Association of
Life Insurance Presidents.)
life insurance is more or less imper­
tion of a business, the endowment of
sonal have devoted a small percentage
an institution, the aiding of a charity
or the accomplishment of some pur­ through education of children, failure of their income to its purchase. While
they may have a deep interest in mak­
pose which will require a larger estate of business or premature death.
The Main Purpose
ing provision for some institution of
than he has accumulated. He also
The main purpose of the wage- learning or for some charitable enter­
recognizes that his estate at death may
be diminished either by inheritance earner in turning to life insurance is prise, nevertheless, the pull upon them
taxes, shrinkage of securities, or other to make some provision for the sup­ to utilize their current earnings for
causes.
port of his dependents. He realizes that purpose is not comparable with
that of the wageThe usual object
earner who recog­
which the man of
nizes the absolute
moderate m e a n s
S p r e a d o f I n s u r a n c e a n d E f f e c t o f P o l ic y L o a n s
necessit}^
of turn­
s e e k s to secure
Married Men
ing
to
life
insur­
through the aid of
ance if any provis­
life insurance is to
ion is to be made
provide a continu­
Companies in W hich
for his family’s
ance for his fam­
Insured
welfare and com­
ily of the mode of
fort.
life they are at
To the man of
20.8
$
785,940.00
In Prudential ....... ........................ ... 3,987 $20,102,060.88 $3,783,893.16
present enjoying.
O f these there were insured:
moderate
means
283.541.90 20A
1,363,182.21
7,250,969.22
In one other com pany....... ... 1,414
He has not yet
284,660.76 20.8
the picture is dif­
1,368,561.34
7,27 9,581.62
In two other com panies.... ...
948
In m ore than two other
been able to ac­
ferent. H e h a s
355,004.95 20.8
1,706,754.56
9,078,481.70
748
com p a n ies.........................
cumulate an estate
b
een
reasonably
20.8
$1,709,147.61
T otal................................... ... 3,987 $43,711,093.42 $8,222,391.27
sufficient t o ac­
successful. He o f­
Single Meri
complish his pur­
ten fails to recog­
Single Men
pose, but looks for­
nize the interfer­
$
22,926.00
13.1
$
175,431.00
1,606,269.00
...
303
In Prudential __________________
ward to doing so.
ence which death
O f these there were insured:
6,685.74 13.1
51,036.15
112
468,221.59
In one other com pany ......
He r e c o g n i z e s ,
will bring to his
7,496.08 13.1
524,972.00
57,221.95
64
In two other com p a n ies....
however, that if
In m ore than two other
plans. He is living3,946.22 13.1
30,123.80
276,365.10
28
companies ..................
death were to oc­
in comfort. He has
41,054.04 13.1
3Û3 $ 2,875,827.69 $ 313,812.90 $
Total
..... ..................... ...
cur a substantial
money for his im­
Total
change in the life
mediate needs and
of his f a m i l y
those of his fam­
In P ru d en tia l__________ __ _ .... 4,290 $21,708,329.88 $3,959,324.16 $ 808,866.00 20.4
O f these there were insured :
w o u l d inevitably
ily.
He is able to
290,227.64 20.5
7,719,190.81
1,414,218.36
In one other co m p a n y ........ . 1,526
ensue. The service
292,156.84 20.5
answer all reason­
7,804,553.62
1,425,783.29
In two other com p a n ies.... ... 1,012
In m ore than two other
which he seeks to
able calls made u p­
358,951.17 20.7
9,354,846.80
1,736,878.36
776
com panies.............. ......... ...
secure from life in­
on him, and this
20.5
$46,536,921.11
$8,536,204.17
$1,750,201.65
...
4,290
Total . ... . .......surance is a con­
situation has cre­
The “ A m ount o f Insurance Against W hich Loans were M ade” and the “ A m ount o f
tinuance o f t h e
ated an i n e r t i a
Loans D educted” from claims in companies other than the Prudential, have been estimated.
The estimates o f “ A m ount o f Insurance Against W hich Loans were M ade” fo r these
condition in which
which makes him
companies are. on the assumption that the ratio between this item and the “ A m ount o f
he finds himself,
apparently fail to
Insurance” is the same as in the case o f Prudential Claims. Estimates o f “ A m ount o f
Loans Deducted” (are on the assumption that the ratio between this item and the “ Am ount
without diminution
fully realize that
o f Insurance A gainst W hich Loans were M ade” is the same as' in the case o f Prudential
by reason o f addi­
Claims.
the whole situation
tional e x p e n s e
would change if he


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Per Cent
o f Claims

Am ount o f
Loans
Deducted

Am ount o f
Insurance
Against W hich
Loans W ere
Made

Amount o f
Insurance

No. o f
Persons

W ho Gets the Most
from Life Insurance

Central Western Banker, January, 19JO

20
were to die either under-insured or
with no insurance.
These considerations seem to ex­
plain why there is a diminishing per­
centage of life insurance to estate.
The appeal to the wage-earner is per­
sonal and direct. He knows the e f­

fect his death will have upon his de­
pendents and seeks to provide against
it causing injury to them.
The man of moderate means less
clearly visualizes the service which life
insurance may render to him, al­
though to some extent he does under­

/

The Time, The Contract
A n d The M an
W e might aid you in bringing
about the proper combination
of these three elements.

O m aha

L i f e In s u r a n c e C o m p a n y
Omaha, Nebraska
H. E. W O R R E LL, Sec.-Treas.

The

SERVICE LIFE INSURANCE COMPANY
of Lincoln, Nebraska
B. R. BA YS, P resident

The Service Life is known as a company of Service,
Ideals and Aggressive Principles

WE STAND ON OUR RECORD
STA R TE D B U SIN E SS SE P T E M B E R 20, 1923
Total Admitted Assets

Standard Business in Force

$ 1 2 5,682.73

$140,737.36

$303,724.87

$522,557.94

$767, 380.73

D ec. 31, 1023

Dec. 31, 1924

Dec. 31, 1925

Dec. 31, 1926

Dec. 31,1927

$106,000

$3,142,500

$7,058,600

$10,829,700

$13,071,662

$1,013,048.00 Dec. 31,1928 $15,506,000
Central Western Banker, January, 1930

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

stand it and does see the necessity
therefor.
The wealthy man having no person­
al and direct appeal has not yet vis­
ualized the broad service it will re­
turn to him if he will take advantage
of it.
In considering the service which
life insurance renders to policyholders
some consideration should be given to
the question:
The Effect of Policy Loans.
I do not propose to discuss the ad­
vantages and disadvantages of policy
loans. I think it fair to state, how­
ever, that there are some advantages
to the policyholder in having the privi­
lege of borrowing against his policy.
The sudden financial collapse, the tem­
porary needs of an expanding busi­
ness, some extraordinary situation in
the family which calls for more ready
money than he then has at hand, may
easily provide a situation in which his
ability to obtain immediate funds by
making a policy loan is decidedly to
his advantage. I think it equally evi­
dent that there are also definite dis­
advantages connected with policy loans
which should restrict their use to a
real and not an imaginary need. The
insured should always have in mind
that obtaining a policy loan is equiva­
lent to borrowing from his dependents.
An individual who has sought to pro­
vide his family with protection against
his death should not be encouraged to
diminish that protection. Consider­
ation should be given to the purpose
for which the insurance was taken
out. If it is for the protection of the
family, the loan will inevitably dimin­
ish that protection; if it is for some
other purpose, that purpose will not
be fully realized.
An individual having become con­
vinced of the necessity of life insur­
ance for the accomplishment of some
desired object should not divert the
funds requisite to meet the necessity
for an inadequate cause.
Our survey covered 4,290 cases on
which the aggregate amount of insur­
ance equalled $46,586,921.11. Out of
this aggregate those obtaining policy
loans carried a face amount of insur­
ance of $8,536,204.17, on which loans
of $1,750,201.65, or 20 per cent of the
face of the policies, were deducted at
the time of making claim payments.
W e cannot but wonder whether the
purposes for which the policyholders
borrowed were as important as those
for which they originally took out the
insurance, and whether that sum so
obtained was used as wisely and for
as beneficial a purpose as it would
have been used had it been left with
the policies and paid to the beneficaries.

21
Dale Honored

John F. Dale, representative of the
Phoenix of Hartford in Omaha foi
48 years and who retired recently as
state agent, was guest of honor at a
banquet of the Omaha pond of the
Blue Goose attended by 50 fire insur­
ance leaders from Omaha and the sur­
rounding states. Willard S. Harding
of Nebraska City, state agent of the
Springfield Fire & Marine, paid his
respects as an old friend of more than
40 years’ standing. Others who spoke
were S. C. Waugh, vice-president
First Trust Company of Lincoln; W .
H. Dale, a brother; P. K. Walsh, W il­
liam G. Curry, successor to Mr. Dale
as state agent, and E. S. Freeman, all
of Omaha. The toastmaster was E.
L. Crellin.

not necessary parties, but that before
taking action the insured and the bene­
ficiary should be notified that if the
loan or the cash surrender value are
not paid before a certain date the pol­
icy will be surrendered.

Circumstances Alter Cases

“ Be observing, my son,” counseled
W illie’s father. “ Cultivate the habit of
seeing and you will become a success­
ful man.”
“ Yes,” added W illie’s uncle. “ Don’t
go through life like a blind man. Learn
to use your eyes.”
“ Little boys who are observing get

on much faster than those who are
not,” Aunt Jane put it.
The youngster took their advice to
heart. A day passed and once more he
stood before the family council.
“ Well, my son,” said his father,
“ have you been using y o u r eyes?”
Willie nodded.
“ Tell us what you’ve learned.”
“ Uncle Jim’s got a bottle of whis­
key hid behind his trunk,” said Willie.
“ Aunt Jane’s got an extra set of false
teeth in her dresser, and pa’s got a
deck of cards and a box of chips hid
behind Emerson’s Essays in the book­
case.”
“ The little sneak!” exclaimed the
family with one voice.

Farmers Take Group Insurance

Taking advantage of a new service
offered them, 3,529 Alabama farmers
have already taken out insurance un­
der a group policy offered them by the
Alabama Farm Bureau Federation.
Policies are being written through the
Protective Life of Birmingham.
Farmers 45 years old and under are
given policies for $200, those 46 to 50
years, $160; 51 to 55, $120; 55 to 60,
$80; 61 to 65, $60; 66 and up, $40.
Additional insurance at the same
rate up to $3,000 per member can be
taken by members. Farm bureau
members’ families are also entitled to
insurance on the same plan. The wife
or dependent child over 10 years of
age may be insured for an amount
equal to one-half of that purchased
by the member, the rate being only $2
per $1,000 more.
Assignment is Binding

In an opinion on the status o f life
insurance policies assigned to a failed
bank as collateral for loans, Attorney
General Sorensen holds that if the as­
signments are made in accordance
with provsions of the policies, they are
valid and binding on all parties inter­
ested. In the absence o f provisions
in the policies to the contrary, he holds
that the insured and beneficiary are ir­
revocably bound and that where the
insured owes the bank more than the
cash surrender value, the assignment
operates as an absolute transfer. The
beneficiary and the insured have no
right to refuse to consent to a surren­
der of the policy for its cash value,
subject only to reasonable notice from
the receiver that he is making such
surrender.
Mr. Sorensen says in case of suit
the insurance company, beneficiary
and the insured are proper although


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

HE Federal Surety Com­
Wh
pany really recognizes the
agent as a partner. We rea­
lize that this company's
growth is dependent upon
its agency force— and we are
determined to grow.

W . L. T A Y L O R , President

Casualty Insurance

Surety Bonds

HOME OFFICE

DAVENPORT, IOWA
Central Western Banker, January, 1930

22

F o r e m a n -St a t e N a t i o n a l B a n k
F o r e m a n - St a t e T r u s t A

nd

Sa v i n g s B a n k

C H IC A G O
A Union o /T h e Foreman National Bank and
The Foreman Trust A nd Savings Bank with the
State Bank of Chicago

RESOURCES EXCEED 200 MILLION DOLLARS
Central Western Banker, January, 1930

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

23
iiiiiiiiiiiiiiiiit iiii'iiiiiiiiiiiM iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiim iiiiiiiiiiiiiiit iiiiim iiiiiiiiiiiiiiiiiiiiim iiiiiiw iiiim iiiiiiiiiiiiiiiiiiiiiiitiiM iiiit iiiiiiiim iiiiiiiiiiit iiiiit iiiiiiiiiii

Nebraska News
IIIIIIIIIIIIIIIIIIIIIIIIIIIIIUIIIItlllllllllllllllllllllllllllimiltlllMllllllllllllinillllllllllllllltlltlllllllllllllllllllllllllllllUlllillllllllllllllllllllllllllllllllllllllllllllllllllllll.lllllllllUIIIII

A . N. M A T H E R S
P re sid e n t, N e b r a s k a B a n k e r s A s s o c ia tio n

\VM. It. H U G H E S . S e c re ta r y
N e b r a s k a B a n k e r s A s s o c ia tio n

W IL L A P P E A L G U A R A N T Y
L A W DECISION

r P H E Nebraska supreme court, early
^ in December, declared that levy­
ing of special assessments on state
banks, under the provisions of the
bank guaranty law of 1911, is legal
and constitutional. The decision re­
versed that of District Judge Lincoln
Frost of Lincoln, Nebr., in the case of
the Abie State Bank and 558 state
banks of Nebraska, which sought, and
obtained, an injunction restraining
Secretary of Trade and Commerce
Bliss from collecting the special as­
sessment levied in December, 1928.
The supreme court decision came as
a surprise and shock to the state banks
of Nebraska, which announced that
they would appeal the case to the su­
preme court.
The fight against the special assess­
ment, which amounted to one-half of
one per cent of the average deposits in
the banks, was launched late in 1928
by a group of state bankers headed by
Dan V. Stephens, president of the
Fremont State bank, and A. L.
Schantz, president of the State Bank
of Omaha.
In their suit they were represented
by Gaines, McGilton, VanOrsdel and
Gaines of Omaha, and Leonard Flansburg of Lincoln and S. S. Snider of
Fremont. The state’s cause was d e ­
fended by Attorney General Sorensen,
who had as special assistants, C. A.
Abbott of Fremont and Edgar Ferneau of Auburn.
The banks attacked the special as­
sessments on the grounds that they
were confisicatory. They pointed out
the growing deficit in the state bank
guaranty fund, now estimated as not


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Federal Reserve Bank of St. Louis

less than 16 million dollars, d hey in­
sisted that this deficit could not pos­
sibly be paid off from the special as­
sessments of one-half of one per cent,
nor the regular assessments of onetwentieth of one per cent.
The state defended the special as­
sessments and attacked the bank’s con­
tention that the levy were a heavy
charge, by asserting that the banks had
used the guaranty law as a means to
attract and hold business.
In its decision the supreme court,
with Judges Day and Ross dissenting,
spoke of the fact that the banks had
used the guaranty fund as a means to
attract deposits, and quoted at length
from the decision of United States
Supreme Court Justice Holmes up­
holding the constitutionality of the
guaranty law.
Secretary Bliss announced that no
immediate steps would be taken to
force collection of the assessments.
The banks did not pay the special as­
sessment of one-fourth of one per
cent of December, 1928, nor the spec­
ial assessment of one-half of one
per cent levied in January, 1929, for
the whole of that year. Neither did
they pay the regular assessment of
one-tenth of one per cent in 1929, al­
though the regular assessment was not
attacked in the suit.
Following the decision of the su­
preme court, State Senator James A.
Rodman of Omaha, the leader of the
group opposed to the bank guaranty
law, urged Governor Weaver to call a
special session of the legislature to
consider the banking needs of the
state. The recommendation was sec­
onded by State Representative Victor
Hovis of Lexington, Neb. The gover­
nor, however, said that he saw no
present need for a special session, and
indicated that none would be called be­
fore the probe of state banking affairs
under A. C. Schallenberger was com­
pleted.

vacancy which was caused by the re­
cent death of Andy Spence. R. C.
Hoehne was elected cashier and Hen­
ry Baumert assistant cashier.
Bank Clearings Gain

Omaha, Nebraska, bank clearings
for November were $192,710,617,
compared with $181,058,237 for the
same month last year.
Joins Northwest Bancorporation

Affiliation of the Harbine Bank of
fairbury, Nebraska, with the North­
west Bancorporation of Minneapolis
has been announced by officials of the
former institution.
The Harbine bank is the third and
last bank in Fairbury to join the Bancorporation. The others, the First N a­
tional aim Fairbury Savings bank,
joined the group several months ago.
Organized as a private institution
in 1873, the Harbine bank was the pio­
neer banking institution of the town.
It was incorporated in 1882.
Total deposits of the bank as shown
by its last statement are $2,462,580.
Capital, surplus and profits are said to
exceed $200,000.
Under New Ownership

A deal has been made whereby a
company of Franklin men are to buy
and take over the entire business and
stock of the Franklin State Bank, in­
cluding the interest of Walter A. But­
ler and C. A. Butler, who have ope­
rated the business for the past twelve
years. An incomplete list of the stock holders in the enterprise includes Ellis
Lester, Burd Garrett, Cal Mariclc, F.
F. Versaw, W . S. Yates, J. W . Solo­
mon, Homan Platt, William Dependehner, J. B. Gartin, J. G. Hawkins,
Carl Bierhaus, O. C. Thomas and T.
R. Blank.
Potter Bank Reopens

Elect E. Z. Hornberger

Election of Evan Z. Hornberger, as
a vice-president of the State Bank of
Omaha, Nebraska, was announced re­
cently by the board of directors. Mr.
Hornberger was assistant cashier of
the Peters National bank until its
merger with the Omaha National.
Elected President

The State Bank of Potter, Nebras­
ka recently reopened its doors as a go­
ing concern with entirely new manage­
ment in charge. Refinancing was com­
pleted with not a cent loss to deposit­
ors. The refinancing program com­
pleted saved depositors thousands of
dollars.
Farmers State to Re-open

The Farmers State Bank of College
View, Nebraska, closed since August,
1929, has been reopened at its former
location, with capital of $25,000, sur-

At a meeting of the officers and di­
rectors held recently, James Zoubek
was elected president of the Stanton
Nebraska, National Bank, to fill the
Central Western Banker, January, 1930

24
plus of $5,000 and undivided profits of
$1,250.
W . E. Barkley of Lincoln is presi­
dent of the bank, George A. Frampton
of Lincoln is vice president, and R.
Unzicker, cashier.
Elected Trust Officer

Wallace E. Spear was elected trust
officer of the First National Bank of
Omaha, Nebraska, at a recent meeting
of the directors of that institution. The
directors also announced the following
trust committee to approve each in­
vestment transaction affecting estates:
F. H. Davis, president of the bank;
Charles Kountze, vice president and
chairman of the board; T. L. Davis,

.

11111il 11!1111111]1111111

vice president ; Denman Kountze, vicepresident; Mr. Spear and Will T. Gra­
ham, assistant trust officer.
Joins

Staff of Omaha Bank

Elmer Lindquist, former vice presi­
dent o f the Peters National Bank, has
joined the staff of the Omaha (N e­
braska) National Bank in the absorp­
tion of the Peters bank by' the Omaha
National.
York Bank to Re-open

Plans for the re-organization and
re-opening of the American State bank
of York, Nebraska, were endorsed by
depositors of the failed bank at a re­
cent meeting.

1*11111111111M111111n 111!!1111111111111111111111111111111111!111111111111111,111111,, 11m 111,, 11111,1,11n1

mum

E N D E A V O R IN G A T A L L TIM ES TO SERVE
N E B R A SK A B AN K S A N D B A N K E R S

Com pany

I

of

|

I

LINCOLN, NEBRASKA

1

“ Complete Investment Banking and Trust Service”
~.llllllllllllllllllllllllllllllllllllllllllllllllllllll!lllllllllll|!lllllllll!lll!l||llll|l|l|l||||||||||||||||||||||||||||:i|||||||||||||||||||||llllllllllllllllllllllllllllllll||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||llllllllllllllir;

O M A H A
“An Unbroken Record o f Seventy Years
is a Guarantee o f Safe and
Satisfactory Service”

OFFICERS:
M. T. B arlow , President o f the Board

R. P. M orsman , President
G. H. Y ates, Vice-President
R. R. R ain ey , Cashier
J. C. M cClure, Vice-President
FI. E. R ogers, Assistant Cashier
T. F. M urphy , Vice-President
E. E. L andstrom, Assistant Cashier
C. F. B r in k m a n , A ss’ t V.-President
A. L. V ickery, Assistant Cashier
P. B. H endricks, A ss’ t Vice-President V. B. Caldwell, Assistant Cashier

Central Western Banker, January, 1930

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Federal Reserve Bank of St. Louis

W A L L A C E E. SPEAR, formerly
assistant trust officer of the Peters
Trust company of Omaha, has been
made trust officer of the First Nation­
al bank.
C. T. KO U N TZE, vice president
and chairman of the board of the First
National bank of Omaha, returned,
just before Christmas, from a vacation
in Bermuda.
V IC T O R B. SM ITH , vice presi­
dent of the Omaha National Bank of
Omaha, after a recent business trip to
Cheyenne, W yo., and Western Ne­
braska, announced that business con­
ditions in that section of the country
were sound and growing better.
W A L T E R W . HEAD, chairman of
the board of the Omaha National bank,
and president of the Foreman State
National bank of Chicago, was the
principal speaker at a recent dinner at
which the Omaha Chamber of Com­
merce was host to its past presidents.

IN T H E IR IN V E ST M E N T NEEDS

The First T ru st

A capital stock of $50,000 will be
subscribed, according to the plans of
the committee, and a surplus of $10,000.

TH E B AN K IN G situation in Ne­
braska, and the things that are being
done to prevent more failures, formed
the subject for a talk by George W .
W oods, Nebraska banking commis­
sioner, before the members of the Om­
aha chapter of the American Institute
of Banking, at its December meeting
at the Elks club.
O f first importance in the state de­
partment’s safety program he men­
tioned :
Revoking of licenses of bankers re­
garded as unreliable or reckless.
Closer supervision of the collateral
turned over to banks as security on
notes.
Elimination of doubtful assets by
prevailing upon stockholders to put up
cash1to cover the amounts represented
by "slow” paper.
Mr. W oods said :
"The policy of permitting banks to
drift into insolvency has been definite­
ly abandoned. The department does
not intend to permit any bank’s con­
dition to become so bad that there
might be a loss to depositors if it be­
came necessary to close the bank.
"I wish that along with the records
of bank failures there could be pub­
lished, also, a record of the sacrifices
that courageous, trustworthy bank o f­
ficers, directors and stockholders have
made in order to keep some of these

25
other banks open. These men are the
type that within a reasonable time will
re-establish thorough confidence in the
banks o f this state.”
Mr. W oods denounced malicious
gossip about banks and said “ vicious
talk” is retarding a quick return of
general confidence in banking institu­
tions.
P H IL L. H A LL, former president
of the Nebraska Bankers association
and banker of Greenwood, Neb., has
succeeded George W . W oods as cash­
ier o f the Lincoln National bank. Mr.
W oods is now the Nebraska banking
commissioner.
Mr. Hall has assumed his new du­
ties, but continues his residence, Green­
wood being near Lincoln, and retains
his banking interest in Greenwood.
Mr. Hall is the son of Dr. P. L.
Hall, who was president of the Cen­
tral National bank of Lincoln at the
time of his death. The new Lincoln
National cashier is 41 years old, ai na­
tive of Nebraska, and Cass county
commander of the American Legion.

the, Ohio, but was reared in Omaha,
Nebraska, where he attended the pri­
mary schools. In 1902 he was graduat­
ed with the degree of bachelor of law
from the University of Nebraska
where he was a member of Phi Kappa
Psi and Phi Delta Phi.
From the university he became as­
sociated with the Union National Bank
o f Omaha, where he remained until
1905 when he organized the Erickson
State Bank of Erickson, Nebraska.
Until 1912 he was cashier and vice
president of that institution leaving
there to become a national bank exam­
iner.
In 1915 he was elected assistant
cashier and vice president of The Mer­
chants National Bank of Omaha,
which bank he served until his election
in January 1920 as vice president of
The Northern Trust Company of Chi­
cago.
Mr. Cuscaden’s home is in Highland
Park, a suburb of Chicago. He is a
member of the University, Attic, Mid-

Day, Bankers’ club and Exmoor Coun­
try club.
The Car’s Number
M otor C op (to professor of mathe­

matics) : “ So you saw the accident,
sir. What was the number of the car
that knocked this man down?”
P rofessor: “ I ’m afraid I’ve forgot­
ten it. But I rember noticing that if it
were multiplied by fifty, the cube root
of the product would be equal to the
sum of the digits reversed.”
Honor Among—

A ruckus had developed between ri­
val sewer construction bosses, and
harsh words were flying.
“ That there ladder belongs to our
gang, I tell y o u !” the first boss bellow­
ed.
“ The eternal hades it does !” the sec­
ond yelled— or words to that effect.
“ One of my men stole that ladder from
the telephone company with his own
hands!”

The
C ontinental National Bank

T H E F A R M E R S ST A T E Bank of
Loomis, Neb., closed voluntarily De­
cember 12. Deposits in September
amounted to $121,000. Continued with­
drawals were blamed by the officers.

LIN CO LN , N E B R A S K A

A F F IL IA T IO N of the Continental
National Bank of Lincoln, Neb., with
the Northwest Bancorporation, was
announced by President Decker of the
corporation at Minneapolis, December
18.
The Continental added resources of
$5,500,000 to the $470,000,000 total re­
sources of the Bancorporation which
now includes eighty-four banks and
trust companies in seventy-one cities.
No change will be made, it was an­
nounced, in the Continental National’s
officers, directors or employes.
The new affiliation is the third
change in the Continental within a
year. While it was still the Continental
State bank, it was merged, last March,
with the Nebraska State bank and
moved quarters to the old City Nation­
al bank building at Eleventh and O
streets in Lincoln. Three months later
the bank was made a national bank.
Heads Chicago Bankers

Fred A. Cuscaden, vice president of
The Northern Trust Company, Chica­
go, has been elected president of the
Bankers club of Chicago succeeding
George Woodruff, chairman o f the
board of the National Bank of the Re­
public.
Mr. Cuscaden was born in Chillico-


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Federal Reserve Bank of St. Louis

“ A Bank for Bankers”
Our consistent growth and progress, contributed to
largely by our correspondents throughout Nebraska, is
indicative of the careful service and prompt attention
rendered them.
W e solicit the accounts of Banks and Bankers, offer­
ing every facility and service.

O F F IC E R S
C H A S . T. K N A P P , C h a ir m a n o f th e B oard .
E D W I N N. V A N H O R N E , P re s id e n t
W . S. B A T T E Y , A s s t . V ic e -P r e s .
T . B. S T R A IN , V ic e -P r e s id e n t
R A Y C. JO H N S O N , A s s t. V ic e -P r e s .
E D W A R D A . B E C K E R , C a sh ie r
W H E A T O N B A T T E Y , A s s t. C a sh ier.

ALLEN-WALES CORPORATION
ANNOUNCES A COMPLETE LINE OF THE MOST UP-TO-DATE, H EA V Y
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NEBRASKA DISTRIBUTORS

Central Typewriter Exchange, Inc.
I

1912 Farnam St.

(Established 1903)

OMAHA,, NEBR.

Central Western Banker, January, 1930

|

26
N O R T H W E ST B A N C O R P O R A ­
TION R E V IE W S GROW TH
(C o n tin u e d fr o m P a g e 7)

has the largest bank at the head of the
lakes in Duluth, the largest Iowa bank
in Des Moines, and the largest South
Dakota bank at Sioux Falls, and the
largest North Dakota bank at Fargo.
O FFICE RS
FO RD E. H O V E Y , President
JAS. B. O W E N , Vice-Pres.
F. J. E N ERSO N , Vice-Pres.
W . H. D R E SSLE R , Cashier
L. K. M O O RE , Asst, to Pres.
H. C. M ILLE R , Asst. Cash.
C. L. O W E N , Asst. Cash.
H E N R Y A. H O V E Y , Asst. Cash.
T . G. BOGGS, Auditor

our banking room

MAIN

floor right

In the very midst of the Omaha Live Stock
Market, stands this bank— a material fa c­
tor in the production and distribution of
Live Stock.

Allow Us T o Handle Your

F o r d E. H o v e y
President of the Stock Yards Nation­
al Bank, Omaha, and a Director of
the Northwest Bancorporation

While Northwest Bancorporation
has a great many small country banks
in its group, the feature of the organi­
zation is the comparative large size of

Live Stock Proceeds

Stock Yards National Bank
of
So u t h Omaha

Affiliated with the
Northwest Bancorporation
The Only Bank in the Union Stock Yards

H . M. B u s h e l l
Vice President, U. S. Trust Company,
Omaha, and Director, North­
west Bancorporation

the units. The following table shows
the number of large and small banks
in the group:
(C ontinued

Central Western Banker, January, 1930

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

on

Page

28)

27

1930 will be a Bond Y ear
Guaranteed
Gold Bonds

WillMal^e a Doubly
•

• • • • •

Bankers and security dealers, who in 1930 offer their clients 6 per
cent Guaranteed Bonds bearing the joint and several guaranty of two
surety companies, will have the satisfaction of offering to their clients
investments with the positive assurance that principal and interest are
definitely secured.
The directly endorsed guaranty of the Federal Surety Company and
the New Jersey Fidelity and Plate Glass Insurance Company appears
on each and every bond underwritten by us and distributed through
bankers and recognized security dealers.
This guaranty is a symbol of safety, as the surety companies do not
place their guaranty (binding on either or both) upon a bond which,
in the opinion of their experts, will involve a loss.
In safeguarding their own interests by demanding the strictest under­
writing requirements as a condition of their guaranty, they give abso­
lute protection to the investor, and during the life of the bond stand
in the position of guardian and watchman of the investor’s interests.
Descriptive circulars and our monthly bulletin “ Investment Safety”
will be sent upon request.

Provident State Securities Com pany
134 North LaSalle Street
CHICAGO, ILL.

Central Western Banker, January, 1930

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

28

News of the

Cattle Decrease

The number of cattle in feed lots is
still considerably below last year de­
spite the marked increase in shipments
to the contry, says the State and Fed­
eral Division of Agricultural Statis­
tics. The movement of stocker and
feeder cattle to feed lots was slightly
above last year in the Corn Belt but it
appears direct shipments from the
range decreases. Pacific coast states
are feeding less.
Railroad station receipts of cattle
into Nebraska feeder districts, July to
November inclusive, were 83 per cent
of last year. Stocker and feeder ship­
ments direct from markets, July to
November 15 were 97 per cent of last
year. It is probable that total receipts
are at least 90 per cent as many as a
year ago. The more favorable prices
of feeders and corn and hay may
stimulate feeuing operations.
Fewer Bought Direct.
A total of 1,528,000 head of feeder
cattle were sent to the Corn Belt states
through the markets from July to N o­
vember, inclusive, as compared to 1,500,000 head for the same period a
year ago. Records of the direct move­
ment of cattle from range to Corn Belt
states are not up to date but so far it
appears this movement will be consid­
erably less. It is considerably less in
Nebraska and if this is typical for the
Corn Belt states, the present number
of cattle on feed is below last year.
Pacific coast states, including all of
the area west of the Continental Di­
vide will feed considerably less cattle
due to the high prices of hay and feed
caused by the poor range and hay
crops. The situation in some moun­
tain states is somewhat uncertain but
it appears some decrease will take
place.
W heat Receipts Broken

All records for a year’s receipts of
grain on the Omaha market were
broken by the heavy shipments of
wheat during 1929. The wheat was
Central Western Banker, January, 1930

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Federal Reserve Bank of St. Louis

Omaha

Stock Yards

valued at approximately $46,000,000
according to figures compiled by the
Omaha Grain Exchange. Total grain
received in Omaha during 1929 was
valued at $62,500,000.
Even though the Nebraska wheat
crop was 11,000,000 bushels below
that of 1928 the wheat received in
Omaha during the first 11 months of
this year have topped the total re­
ceipts of 1928 by more than 2,000,000
bushels.
Never before in the history of the
grain exchange have the farmers of
the state poured their wheat in to the
Omaha market as they did during the
present year.
In last July and August alone, when
wheat was selling at the top price of
the year, the receipts were more than
25,000,000 bushels or 60 per cent of
the entire 11 months receipts. The
July price for wheat averaged $1.21^2
per bushel and the average August
price was $1.17. High grade wheat
sold at 10 to 20 cents above those
prices.
The total wheat crop of the state
estimated at 11,000,000 bushels be­
low the heavy yield of last year, has
sold for as much as the big 1928 crop.
Higher prices offset the smaller yield.
The corn crop, according to the last
official estimate, shows a yield of 232.000,000 bushels compared to 212,000,000 bushels in 1928. Prices for corn
are comparatively high.
Yields of other grains and products
of farm show about average produc­
tion and remunerative prices.
N O R T H W E ST BAN CO RPO RATION R E V IE W S GROW TH
(C o n tin u e d fr o m P a g e 26)
RESOURCES

BANKS

$40,000,000 or over........................... 2
20.000. 000 to $40,000,000............. 4
10.000. 000 to
20,000,000............. 4
5.000. 000 to 10,000,000............. 9
2.000. 000 to 5,000,000..............17
1.000. 000 to 2,000,000..............17
Less than $1,000,000........................31
T o ta l............................................84

Very recently President Hoover in
his message to Congress took note of
the growth of the group banking or­
ganizations, directed the attention of
Congress to the importance of this de­
velopment, commented upon it as rep­
resenting an effort to produce some­
thing that would be better than the
conditions of inadequacy and instabili­
ty that had prevailed, and suggested
the creation of a Congressional com­
mission as a means of going into the
whole subject. Secretary of the
Treasury, Andrew W . Mellon, in his
report issued on the day following the
President’s message, enlarged some­
what upon this idea. As Northwest
Bancorporation happens to be the larg­
est group organization of its kind in
the United States at this time, Mr.
Decker was asked for an expression
and he said that he wholly approved
the proposal of the President and
thought that this recommendation to
Congress was a good way to go about
it.
The six banks that were taken in
during the period ending December
16, w ere:
The Central National Bank of Min­
neapolis, located in outlying business
district, capitalized at $100,000 with
surplus of $50,000, deposits $1,904,000
and resources, $2,217,000, became a
member of the Northwest Bancorpora­
tion group November 20.
The Daly Bank & Trust Company,
Anaconda, Montana, and the First
National Bank, Dillon, Montana, be­
came affiliated November 27th. The
Daly Bank & Trust Company, with
$100,000 capital and surplus $100,000,
has deposits of $4,922,000 and re­
sources $5,261,000 and has been do­
ing business since 1883. The First
National Bank, Dillon, capitalized at
$200,000 and with surplus $200,000,
has deposits of $3,979,000 and re­
sources $4,435,000.
Another addition was made De­
cember 10, when the newly organized
Dakota National Bank & Trust Com­
pany of Bismarck took over the de(C o n tin u e d on P a g e 34)

29
The banks occupy ten floors includ­
ing the one under the main lobby of
the building, on which the vault quar­
ters are located, and the thirty-eighth
floor of the tower.

C. Edward Carlson, Edwin G. Fore­
man, Jr., Frank B. Woltz, Fred H.
Carpenter, Austin J. Lindstrom, J. E.
Sullivan, H. T. Spiesberger, Oscar F.
Meredith, C. Ray Phillips, Andrew F.
Moeller, vice-president-cashier; Thos.
G. Johnson, W . F. Copeland, Jevne
Haugan, Charles A. Burns, Richard
G. Jones, Gaylord S. Morse, Tryggvc
A. Siqueland, and Fred A. Rozum.
The vice-presidents of the Fore­
man-State Trust & Savings Bank are:
Walter J. Cox, executive vice-presi­
dent; Gerhard Foreman, George H.
Neise, Alfred K. Foreman, Edwin G.
Foreman, Jr., Morris E. Feiwell, C.
Edward Carlson, and John F. Phillips.
The vice-presidents of the trust de­
partment are: William C. Miller,
Charles A. McDonald, Anan Ray­
mond, Neil J. Shannon, John W . Bissell, vice-president-secretary; Edwin
C. Crawford, Louis W . Fischer, and
Harvey J. Carlson.
The vice-presidents of the real es­
tate loan department are Jevne Hau­
gan, Charles T. Rotermel, and Frank
J. Klauck. The vice-presidents of the
savings department are E. L. Jarl
and Marshall J. Fletcher, vice-presi­
dent-cashier.
More than 1,000 employes assumed
their duties in the new forty story
bank building. The entire personnel
of the consolidating banks was ab­
sorbed in the unification.

FO R E M A N B A N K S IN
N E W HOME

The Foreman-State National Bank
and the Foreman-State Trust & Sav­
ings Bank, the third largest bank in
Chicago, opened for business last
month in their new skyscraper home,
the Foreman-State National Bank
Building, at LaSalle and Washington
streets.
The bank is a consolidation of the
State Bank of Chicago, formerly lo­
cated at LaSalle and Monroe streets,
and the Foreman National Bank and
The Foreman Trust & Savings Bank,
which for many years have been lo­
cated at 30 N. LaSalle St. The com­
bined banks have resources in excess
of $220,000,000.
The banks and their securities a f­
filiate, the Foreman-State Corpora­
tion, represent a consolidation of two
of the oldest financial institutions in
Chicago. The executive officers are
Oscar G. Foreman, chairman of the
executive committee; Harold E. Fore­
man, chairman of the board of direct­
ors; Oscar H. Haugan, vice-chair­
man ; and Walter W . Head, president.
Gerhard Foreman is president of the
Foreman-State Corporation.
Vice-presidents of the ForemanState National Bank are: Walter j.
Cox, executive-vice-president; George
H. Neise, Alfred K. Foreman, Ger­
hard Foreman, Percival W . Trudeau,

M

& V

New Securities Company

The Foreman-State National Bank
and the Foreman-State Trust & Sav­
ings Bank, co-incident with the open­
ing of their new quarters in their for­
ty-story building at LaSalle and
Washington streets, announced the
Foreman-State Corporation, their se­
curities affiliate.
The Foreman - State Corporation
will handle industrial, municipal and
public utility financing. A branch o f­
fice has been opened at 52 Wall St.,
in New York City. Gerhard Foreman
is president of the Foreman-State Cor­
poration.
“ W e have completed the organiza­
tion of a well rounded investment
house equipped to serve diverse corpo­
rations and the investing public.” Mr.
Foreman said. “ The heritage of ex­
perience and good will of the consoli­
dated banks with which the ForemanState Corporation is identified is
passed in full measure to this corpo­
ration.
“ W e open our doors with extensive
interest throughout the East and Mid­
dle West and we look forward to
(C o n tin u e d on P a g e 31)

ti)c J^eto Hear

Prittg to How anb Hours
&t)untmnt Jop, pealtij anb Hrosperttp

LIV E S T O C K N A T IO N A L BANK
Union Stock Yards
OMAHA
W . P. ADKINS, President

ALVIN
HOW ARD O. WILSON, Cashier

R. H. KROEGER, Asst. Cashier


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

E.

JOHNSON,

Vice-President

L. V. PULLIAM, Asst. Cashier
W . S. HOGUE, Asst. Cashier

Central Western Banker, January, 1930

For Check Collection
The Country Over
By train and plane, in
a good day's work, this
Bank has received and
dispatched for collection
258,392 checks drawn
on ou t-of-tow n banks

C o n t in e n t a l I l l in o is
BANK AND TRUST
COMPANY
CHICAGO

Central Western Banker, January, 1930

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

31
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New Securities Company

outh Dakota New

(C ontinued from

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Elect Officers

A dinner for the Lake County
Bankers’ association, followed by a
business meeting, was held in Madi­
son, South Dakota, recently, the banks
of the county being well represented.
This was the first meeting of the or­
ganization since the meeting last
spring. Many subjects of interest to
bankers, such as exchange and inter­
est rates were discussed at the session.
Officers of the new year were elect­
ed as follow s: C. A. Stensland, presi­
dent; E. J. Dirksen, secretary; A. j .
Harrington, vice-president.
Twelve bankers were present, rep­
resenting Wentworth, Nunda, Ra­
mona, Junius, and Madison.
The
W infred delegation was unable to at­
tend.
Reduce Supply of Cash

Acting on the assumption that ready
cash quickly picked up is the attraction
daylight bank robbers seek, bankers
of Kingsbury county, South Dakota,
passed a resolution to cut down their
supplies of cash on hand to just what
is needed for counter requirements.
The decision was reached at a meet­
ing of the county bankers’ association
held at Lake Preston, South Dakota,
and the resolution is signed by all
banks of the county, of which there
are ten.
In making the announcement the
banks ask their customers to make ar­
rangements with their bank twentyfour hours in advance of their inten­
tion to draw large sums of money.
Increases Capital Stock

An increase of $75,000 is to be made
in the capital stock of the National
Bank of Huron, South Dakota, ac­
cording to a recent report. The present
capital is $150,000.
The increase was recommended at a
recent meeting of the board of direc­
tors. The last boost to the bank’s capi­
tal, that from $100,000 to $150,000,
was made in 1928. Shortly before this
decision, the bank passed the $4,000,000 mark in deposits for the first time
iri its history.
Pays Additional Dividend

An additional dividend of ten per
cent has been paid to the depositors of
the former First National Bank of
Woonsocket, South Dakota, making
the fifth dividend of ten per cent each


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Federal Reserve Bank of St. Louis

to be paid by this bank since it closed
in July, 1926.
Joins National Banking Dept.

E. J. Wolters of Sioux Falls, South
Dakota, who has been employed by the
state banking department, has accept­
ed a position with the national banking
department in Chicago. Mr. Wolters
will be an assistant national bank ex­
aminer in the Chicago district.

Page 29)

bringing to Chicago an ever greater
share of the investment securities busi­
ness which has expanded so tremen­
dously here during the last few years.”
The stock of the Foreman-State
Corporation is held in trust by the
bank for stockholders of the bank.
The vice-presidents of the securities
affiliate are Robert Whiting, Edwin
M. Stark, Harold E. W ood, Boudinot
Atterbury, John W . Ogden, D. T.
Richardson, and Joseph F. Notheis.
John J. Burns is second vice-president,
Gordon W. Blair, secretary-treasurer;
and Lambert J. Mullin, assistant treas­
urer.

Utah News
Installs New Equipment

The Knight Trust and Savings
Bank of Provo, Utah, has completed
the installation of an after-hour de­
pository and an all-electric burglar
alarm system.
Both systems are of the most ap­
proved type, the burglar alarm being
unusually efficient. By its installation,
it is expected to reduce to a minimum
any attempted after-hour robberies.
An after-hour depository has also
been installed in the Provo Commer­
cial and Savings bank.
Reappointed Director

William M. Howell of Salt Lake
City, Utah, has been reappointed a di­
rector of the Federal Intermediate
Credit bank and Federal Land bank
at Berkeley, Cal.
Mr. Howell will have charge of the
business of the two institutions in the
state of Utah, and will attend month­
ly conferences at Berkeley. He has
been a director for the past three
years, and for five years prior to that
time, was chief appraiser. His new
term will be for another period of
three years.
Appointed Assistant Cashier

Charles H. Dixon, formerly with
the State bank of Payson, has been ap­
pointed assistant cashier of the Com­
mercial bank at Spanish Fork, Utah.
He fills the vacancy created by the
resignation of Miss Millie Scofield.
Given Promotion

Thomas McCormick has been pro­
moted to the position of cashier of the

Eureka Banking Company, Eureka,
Utah, according to a decision reached
at a recent meeting of the board of di­
rectors.
Mr. McCormick has been connected
with the Eureka bank for nearly 20
years in various capacities.
Albert Johnson fills Mr. McCor­
mick’s former position as assistant
cashier.
Clearings Increase

November clearings for the four
(Ogden, Utah, banks showed an in­
crease over the same month last year,
according to the report given out re­
cently by Harmon Barton, secretary of
the Ogden Clearing House associa­
tion. Clearings for November of this
year were $10,392,456 as against $9,564,985 for the same month in 1928.
And That's That
He was one of those careless motor­
ists, of an almost extinct breed, who
“ never n eeded a road m ap” and
thought he knew the roads too well to
heed signs. One day he traveled into
country new to him and after much
wasted mileage pulled up at a moun­
tain cabin and questioned a lanky, tir­
ed-looking youth.
“ Say, which is the road to Sacra­
mento ?”
“ Dunno,” replied the youth, without
moving.
“ Well, where’s the road to Reno?”
“ Dunno.”
“ Where does this road lead?”
“ Dunno.”
“ Say, you don’t know much, do
you ?”
“ Wal, I ain’t lost.”

Central Western Banker, January, 1930

32
iMimiiMiiiiiiiimiiiiiiiiiiiiiiiiiiittiimiiiiifiiiifiiiiiiiiimiiiiiiiiifiiiiimiitiiiiiiiiiiiiiiiimtltiiílililiiiiififiiiiiimmmfmtiiiiiiifiiiiiiiififi

two banking institutions in Bird City.
Both went the way of the unwary,
and for the past two years the town
has been without a bank.

iiiiiiiiiiiiiiiiiiiiiimmiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimimimimiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimii

Purchase Emporia Bank

The Citizen’s National, the largest
bank in Emporia, Kansas, has been
purchased by M. A. Limbocker of
Burlington, Kansas, and W . T. Kemp­
er, Kansas City financier. Mr. Lim­
bocker is to take active charge of the
bank as president. He will continue as
president of the Peoples National bank
at Burlington. Mr. Limbocker succeed­
ed L. Newman as president, the change
taking place five days before the death
of Mr. Newman. No other changes in
the personnel were made.
Resigns A fter Twenty-nine Years

William Lasley has resigned as vice
president of the Lyons National Bank
of Lyons, Kansas, after being con­
nected with the bank for twenty-nine
years. Mr. Lasley is 81 years of age
and his decision to retire was made be­
cause of the condition of his eyesight
and general health.
To Erect New Building

A new bank building is to be con­
structed for the Rozel State Bank at

m

Rozel, Kansas. The structure will be
erected on the site of the bank build­
ing destroyed in the recent fire that
swept Rozel.
Elected Directors

Dr. W . H. Mott, Herington veter­
inarian and livestock rancher, has been
elected a director of the Lederal Land
bank of Wichita, Kansas.
Dr. Mott is a director of both na­
tional and state Holstein-Lriesian as­
sociations and is on the executive com­
mittee of the Kansas Livestock asso­
ciation.
He was elected from the third di­
vision, comprising all of Kansas and
six counties in Oklahoma.
New Bank at Bird City

Bird City, Kansas, now has a new
banking institution, the first for sev­
eral years. The Security bank opened
its doors for business and about 75
patrons opened accounts on the first
day, and many more followed in the
next few days.
At the close of the war there were

t

Cfjasc jgational Pant:
o f the City of New York
Pine Street corner of Nassau
Capital_____________________________$ 105,000,000.00
Surplus and Profits_______________
130,204,050.47
Deposits (Oct. 4, 1 9 2 9 )__________ 1,132,828,983.19
O F F IC E R S
A lbert H. W iggin ,
Chairman o f the Board
John M cH ugh
Chairman o f the E x ecu tive Com m ittee

Charles S. M cCain
P resident

R obert L. Clarkson
Vice-Chairman o f the Board
Vice-Presidents
Carl J. Schmidlapp
Reeve Schley
H enry Ollesmeimer
James T. Lee
Sherrill Smith
A lfred C. Andrews
Robert I. Barr
George T. W arren
George D. Graves
Frank O. Roe
H arry H. Pond
Samuel S. Campbell
W illia m E. Lake
Charles A . Sackett

Hugh N. Kirkland
James H. Gannon
W illiam E. Purdy
George H. Saylor
M . Hadden Howell
Joseph C. Rovensky
Ruel W . Poor
Edwin A . Lee
Leon H. Johnston
W illiam H. M oorhead
H orace F. P oor
Edward E. W atts
J. Sperry Kane

Franklin H. Gates
T. A rthur Pyterman
A m rose E. Im pey
L ynde Selden
M aurice H. Ewer
H ugo E. Scheuermann
Ralph L. Cerero
Jay D. Rising
H arold W . Vanderpoel
James Bruce
W a lte r S. Jelliffe
A rthur W . M cCain
Claude H. Beaty
F rederick O. F o x cro ft

V ice-President and Cashier
W illiam P. H olly

Central Western Banker, January, 1930

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Bank Clearings Increase

Pueblo, Colorado, business and pros­
perity still walk hand in hand, if clear­
ings of the Pueblo banks can be con­
sidered a means of measuring condi­
tions. An increase of $11,773,878.69
over the corresponding period in 1928
was recorded in clearings of the five
Pueblo banks for the 11 months end­
ing November 30, according to figures
of R. G. Dun & Co., mercantile agency.
Total clearings for the 11 month
period were $81,586,636.24 compared
to $69,812,757.55 for the first 11
months of last year.
Clearings for the month of Novem­
ber also registered a substantial in­
crease. Lor the month just past they
were $7,652,852.00 compared to $7,135,800.01 for November of last year.
Clearings for the week totaled $1,272,031.58.
How Thoughtless

Sandy MacNarrow was riding on a
train as the guest of Snuffville for be­
ing the thriftiest Scotchman in the vil­
lage. He was comfortably seated and
smoking a cigar that a fellow passen­
ger had given him when a man ambled
over to him and requested a match.....
“ Sure, right here,” said Sandy, in a
burst of generosity, as he handed over
a box of safety matches.
The stranger extracted a match,
lighted his cigarette, then suddenly
gazed at the box intently and exclaim­
ed: “ Y ou ’re a lucky fellow, Mister. I
represent the manufacturers of this
safety match and I have been authoriz­
ed to hand every man I meet using a
box of our matches a $20 gold piece.
Here you are.”
After a few artless gestures of ap­
preciation by Sandy the drummer
walked away. He had gone but a few
steps when he was halted by the earn­
est entreaties of Sandy.
“ Yes, yes?” inquired the drummer.
“ You forgot to give my box of
matches back,” said Sandy.
Defense

“ Why, William Oswald Holmes!”
cried an angry mother. “ Look at your
sticky fingers! Where have you been?”
The kid who was plainly cut out to
be a lawyer hesitated just the fraction
of a minute, then his answer came pat.
“ I was just trying to help you, mo­
ther,” he replied. “ I was looking for
that pair of scissors you lost. It wasn’t
in the jam, mother.”

33
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Makes Final Settlement

Final dividend checks were received
recently from State Bank Commission­
er Grant McFerson in payment of the
final dividend from the defunct Farm­
ers State Bank of Otis, Colorado.
Bank Snows Increase

The Oak Creek (Colorado), State
Bank continues to show a nice increase
in business, closing November with
382 open accounts and 99 savings ac­
counts. All estimates of possible busi­
ness have been more than reached
since the opening of the bank.

created by the death last February of
W . P. Reed. Mr. Sullivan is a former
resident of Lyons.
Elected Director

At a recent meeting of the directors
of the Colorado Savings and Trust
Company of Lajunta, Colorado, Miss
Frances Rourke was elected as a mem­
ber of the board of directors to fill
the vacancy made by the death of E.
Harry Rourke.

For some years past, Miss Rourke
has been engaged in ranching with
her brother Harry.
James H. McDonald was appointed
to fill the position of cashier, follow­
ing the resignation of E. H. Temple.
Installs New Fixtures

The State Bank of Wiley, Colorado,
is assuming the aspects of a metropoli­
tan bank. They have secured the fix­
tures of the Commercial Bank at Las
Animas, which recently consolidated
with another bank there and have in­
stalled them at Wiley. The fixtures are
beautiful with lots of marble panels,
posts, pillars, etc.

Students Start Cooperative Bank

Members of the Lamar, Colorado,
chapter of Future Farmers of Ameri­
ca, at their regular meeting in the agri­
culture room of the Lamar High
school, decided to start a cooperative
thrift bank as a means of gaining prac­
tical experience in the handling of fin­
ance.
i
It was decided by those present at
the meeting to make regular deposits
Tuesdays and Thursdays of each week.
These deposits may be any amount
from a nickel upward. The deposits will
be made in some, local bank, to be de­
cided upon by the organization, and
provisions have been made for loans
among the depositors on proper securi­
tyAccording to arrangements under
which the cooperative bank will be
conducted, regular depositors will re­
ceive interest at the rate of 4 per cent;
those who deposit intermittently, 3 per
cent. Any account can be withdrawn
on 100 days notice.

Our Foreign Depart­
ment can act as a com ­
p le te d e p a r tm e n t of
your own bank.

A sk

us for details regarding
our Drawing Material
fo r

correspondent

banks.

Declare Extra Dividend

Directors o f the United States Na­
tional Bank of Denver, Colorado, at
their regular monthly meeting declar­
ed a special dividend of $10 a share,
payable Dec. 20.
The directors also announced the
regular quarterly dividend of $4 a
share will be paid Dec. 31.
Total dividends paid to' stockholders
of the bank during 1929 will aggregate
$26 a share.

THE NORTH ERN
TRUST COM PANY
Northwest Corner LaSalle and Monroe Streets

New Cashier at Lyons

James Sullivan of Broomfield, Col­
orado, has been appointed cashier of
the Lyons State Bank. Cashier O. J.
Ramey was advanced to vice-president
o f the institution to fill the vacancy
Central Western Banker, January, 1930

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CHICAGO

34
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..................................................................................111111111111111111111111111111111111M11111111111.111111............................................. .

Wyoming Banks Gain

Satisfaction with the economic con­
dition of Wyoming was expressed re­
cently by John A. Reed, state bank ex­
aminer.
Mr. Reed said the total resources on
Oct. 4, 1929, of the 62 state bank and
trust companies aggregated $2,133,099,603, a net increase over June 29,
1929, of $1,057,157; and a net increase
of $739,234.18 over Oct. 3, 1928.
The combined banking resources of
the state as reported by the 62 state
banks and trust companies and the 25
national banks aggregated $77,306,839.26, with a reserve of 25.8 per cent.
This represents a net increase in re­
sources over June 29, 1929, of $2,576,028.70 and in reserve of four per cent.

ing also been president and in charge
of the Guernsey bank.
The consolidation unites into one
two of eastern Wyoming’s strong bank­
ing houses.
Distributes Christmas Checks

Nearly $32,000 in Christmas sav­
ings has been distributed by the banks
of Casper, Wyoming, to the more than
600 members of the Christmas Savings
Clubs. The average per person was es­
timated to be slightly over $50 for the
year which was considered to be ex­
ceptionally good.

ment of Bismarck and its trade terri­
tory.
On December 12 announcement wa;
made of the affiliation of the State
Bank of Northfield, Minnesota and
the Harbine Bank, Fairbury, Nebras­
ka. The State Bank of Northfield,
the second largest bank in that city,
was established in 1910. It has a
capital, surplus, and profits of $103,620; deposits of $1,092,777 and re­
sources of $1,213,586. The Harbine
Bank, established in 1873, has a capi­
tal, surplus and profits of $226,947,
deposits of $2,401,540; and resources
of $2,633,487.

N E W F A L L NUM BER
OF THE

American Bank Reporter
To Meet in Casper in 1930

At the meeting of the executive offi­
cers of the Wyoming Bankers Asso­
ciation held recently in Casper, it was
decided that the association will meet
Accepts Position
in Casper, August 29 and 30, 1930.
H.
T. Buor of Provo, Utah, has tak­Mr. William Pugh is president of the
en the place of Leland P. Draney, as­ association.
sistant cashier of the First Security
bank, of Rock Springs, Wyoming,
N O R T H W E ST BAN CO RPO RAwhose resignation took effect recently.
TION R E V IE W S GROW TH
Mr. Buor has been in the employ of
(C o n tin u e d fr o m P a g e 28)
the First Security corporation at their
posits of the First Guaranty Bank of
Provo bank for a number of years.
Bismarck and became affiliated. The
Dakota National Bank & Trust Com­
Wyoming Banks Merge
pany is capitalized at $100,000; has
Merger of the First State Bank of
surplus of $50,000 and resources of
Guernsey with the First State Bank of $518,000. It is expected that the or­
Douglas, Wyoming, was effected re­ ganization of the Dakota National
cently, President Ray Tiernsey of the Bank & Trust Company $will do much
Douglas institution announced, he hav­ to promote the growth and develop­

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AUSTRALIA

BANK OF N EW SO U T H W ALES
E S T A B L IS H E D

( W i t h w h ic h is a m a lg a m a te d T H E

1817

W E S T E R N A U S T R A L IA N B A N K

P A I D -U P C A P I T A L -------------------------------------------------R E S E R V E F U N D ------------------------------------------------------R E S E R V E L IA B IL IT Y OF P R O P R IE T O R S —

________________________ $ 37,500,000
-------------------------------------20,500,000
_________________________ 37,500,000
$104,500,000

Aggregate Assets 30th Septermber, 1928, $444,912,925
A G E N T S — F IR S T

N A T IO N A L

BAN K , OM AHA, N EBR ASK A

H E A D OFFICE, GEORGE ST., S Y D N E Y

GENERAL

MANAGER,

ALFRED

CH ARLES

D A V ID S O N —

L O N D O N OFFICE, 29 T H R E A D N E E D L E ST., E . C. 2

548 B r a n c h e s an d A g e n e ie s in a ll A u s tr a lia n S ta te s , F e d e r a l T e r r ito r y , N e w Z e a la n d , F iji , P a p u a , M a n d a te d T e r r ito r y o i
N e w G u in ea an d L o n d o n . T h e R a n k C o lle c ts f o r an d U n d e r ta k e s th e A g e n c y o f O th e r R a n k s , an d t r a n s ­
a c ts e v e r y d e sc rip tio n o f A u s tr a lia n R a n k in g B u s in e s s

TH E CE N TR A L W E ST E R N BAN KER, O M A H A ,

P u b l is h e d b y D e P u y P u b l is h in g C o m p a n y

410 Arthur Bldg., Omaha, Nebraska
C liff o r d D e P u y , Publisher

G erald A . S n id e r , Associate Publisher

W m . H. Maas, 1221 First National Bank B ldg., Chicago, V ice-President

Central Western Banker, January, 1930

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Federal Reserve Bank of St. Louis

R.

W.

M oo rh ead ,

Editor

L. D . V a n D o r a n , Associate Editor

Frank P. Syms, 25 W est 45th Street, N ew Y ork , V ice-President


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Federal Reserve Bank of St. Louis

Freedom

C om petition

O f

A nei

In itiative

W e fe e l tliat tlie fa c t tlia t A m e r ic a n ta n k s lia v e lia d in ­
d iv id u a l fr e e d o m

o f c o m p e titiv e a c tio n a n d in itia tiv e lias

k e e n v ita l to tlie interests o l tin s c o u n tr y and tliat a c o n ­
tin u a tion o f o u r p ro g re ss d e p e n d s on tlie p re s e rv a tio n o l
tliese tw o elem en ts.
A m e r ic a n t a n k in g lias fir m ly
tlie

deca des

and

gone

fo rw a rd

g e n e r a t i o n s o f fi a n k m g

tlir o u g li a ll
m is t a k e

and

fa ilu r e , p e r io d s o f d is o r d e r e d c u r r e n c y , c y c l e s o f L o o m ,
p a n ic and d e p r e s s io n .
And

tins

li as

done

fiy in d iv id u a l

occu rre d

fi eca u se

ta n k s ,

ou r

lo c a lly

t a n k in g

ow ned

and

lias

te e n

d ir e c te d

t y r e s p o n s it le m en w lio w e re fre e to m a k e tlie ir d e cisio n s
a n d a c c o m p l i s l i t l ie i r s u c c e s s e s o n a t a s i s o f in t im a t e
a s s o cia tio n w itli tlie

a ctiv itie s

ol

tlie ir co m m u n ities and

tliro u g li k n o w le d g e o f l o c a l c o n d it io n s

an d tli e n eed s o l

tlie p e o p le .

O n e o f the thoughts expressed in a recent
address by George TP. D avison , President ,
Central H an over B a n h and Trust Company.

C entral H anover
B A N K A N D TRUST C O M P A N Y
N E W YORK


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