Full text of Central Western Banker : July 1929, Volume 24, No. 7

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SouthDakota

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JULY

ali 1 Had Only K now n the Law

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Federal Reserve Bank of St. Louis

Our correspondent banks and their
customers are always welcome at the
First National Bank of Omaha. W e
like to have you visit us and discuss
your problems. Your problems are
our problems and we enjoy helping
you.

BOND DEPARTMENT
FOR OUR
CORRESPONDENTS
Included in the complete banking
service which we offer our correspond­
ents is our large bond department of
the First Trust Company. W e shall
be pleased to give you any investment
service you desire.


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Federal Reserve Bank of St. Louis

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--------------------------- -------------------------------------------

First National
I Bank of Omaha
FIRST TRUST COMPANY

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minute
N E W d
i R. K RAU S, vice-president and ex* ' executive manager of the Union
Trust Company, Cleveland, has been
elected president of the Reserve City
Bankers. The annual convention of
the Association was held in Detroit
early in June. Membership is made
up of executive officers of 57 reserve
cities throughout the United States.
The next annual meeting will be held
in Mav 1930 in MemnhU
y>
’
P ’ iennessee’
'l"'H E E X E C U T IV E Council of the
1 South Dakota Bankers Association
has selected June 11, 12. and 13 as
the convention dates of the Association for 1930. The convention is to
lie held in Aberdeen.
”
^
rpiT E E Q U IT A B L E TR U ST Company of XTew York announces the
formation of a department devoted exclusively to the study and analysis of
the general assets making up personal
estates for the purpose of presenting
unified plans of protection and efficient
management. This department will be
a p rov in g g ro u n d fo r
needed
311C C S C

tru s t

and

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IVT O R E than 50,000
families in Greater
New York were helped
over financial emergencies d u rin g the past
twelve months th rou g h
the personal loan service
inaugurated by the National City Bank of New
T ork. Loans during the
first year^ totalled more
than $16,500,000, an average of about $320 per
borrower.
“
“ ^ .
\ A /'O R K I N G S of the
F ed era l R eserv e
board are described in
non-technical la n gu a ge
in a booklet recently prepared by
g,
J the. N a tio n a l
Shamut Bank ot Boston.
Factors controllinp" Fed-


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Federal Reserve Bank of St. Louis

anks
etnei"Bankers'
eral Reserve policies, the importance rF'H E BOARD of Directors of the
of the board in the control of credit, * Chase National Bank, New York,
and the effects of its operations on na- has declared a quarterly dividend of
tional industry and finance, are dis- 3jT on the capital stock of the bank,
cussed in terms easily understood by and the board of the Chase Securities
the layman. A limited printing of the Corporation has declared a dividend
booklet is available.
of $1.00 on its capital stock.
------------------ta r r?T? P
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~
R L FV S , D ‘ LEF & CO M PAN Y, rP H E h lF T H Mid-Continent Trust
well - known Omaha investment
x Conference will be held in Detroit,
house, have announced the removal of
Michigan, November 7 and 8 under
tbeE ° ffi£es *?. 1116~ i}22 CEy Nati° n~ the auspices of the Trust Company
al Bank Budding. Their offices form- and National Bank Divisions ot the
eJ ly ° c™Pied sPace. ,on the second American Bankers Association. Robdoor of thlS same buildin^
^rt O. Lord, president ot the Guardian
‘---------Trust Company of Detroit, will serve
j ^ A L E G RAH AM , assistant vice- aS general chairman of the conference.
president of the National Park
Bank, New York City, has been ap- T Y IR E C T O R S of the Central Trust
pointed a director of the Financial Ad- ^
Company of Illinois recently apvertisers Association. Mr. Graham proved plans for adding $5,250,000 to
has been active in financial advertising the capital structure of the bank and
circles for several years, having form- its affiliated investment organization,
erly been advertising manager of the the Central Securities Company, in
Mississippi Valley Trust Company of which each bank stockholder has a
St. Louis.
"
’
beneficial interest,
______ _

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GIN, chairm an of
Vol. 24. No. 7
July, 1929
the board of the Chase
N ationa l Bank o f the
7
j 7 *
T
11 &
City of New York, and
111
1 11 I d l o o L i e
Charles S. McCain, pres“ j f i Had 0 n ly Known the Law”
. . . .
4
ident o f the N ational
South Dakota Banks A re Keeping Step . . . .
5 Park Bank of New York,
Colorado, the N ation’sP l a y g r o u n d ......................................0
have announced that the
Y our Bank’s Secondary R e s e r v e ........................................ 8
boards o f d ire cto rs o f
Colorado Farm C o n d i t i o n s ............................
9
the two institutions have
W hat the Country Credit Bureau Can Do . . . . 10
voted to recom m en d to
Bonds and I n v e s t m e n t s .......................................................13
their re sp e ctiv e stockI n s u r a n c e ...................................................................................19
holders a merger of the
Nebraska N e w s .......................................................
23
two banks.
News o f the Omaha S t o c k y a r d s .................................27
Formal notice outlinSouth Dakota N e w s ........................................................... 30
ing the plans in detail
Kansas N e w s ............................................................................32
will be sent to stockholdColorado News . . .
33
ers about July 10, calling
W yom ing N e w s .......................................................................34
a special meeting for
^ ^ = = = = = = = = = = = = = = = = = = = = = = == = = = = = = = = :
August 12.
T he Central W estern B anker , O maha
---------Published monthly at 416 Arthur Bldg., Omaha, Nebraska
/V M E E T IN G o f the
_Entered
Subscription,
25 cents per copy; $2.00 per year
JT\ stockholders of the
as second-class
matter at the Omaha postoffice.
MULK.I1U1UCI S Ui Lite
Seaboard National Bank
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111
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Centrai Western Banker, July, 1929

4
izing the conversation of the Seaboard
National into a state bank, to be

known as the Seaboard Bank of the
City of New York. This move is a

step carrying out the merger plans
with the Equitable Trust Company.

“If 1 Had Only K now n The Law
'T 'E N YE A R S ago I was the cashier
of a flourishing bank in a small city
or large town (depending on the point
of view) in one of the eastern cities,
and if I was not a loud success as a
banker, at least I made no outstanding
blunders.
I decided, however, to study law,
was admitted to the bar and have prac­
ticed for the last seven years in the
same “ town” which is now a city,
judged by any standard, and no mean
one, either.
If I have made no appreciable dent
in the legal horizon, I have at least
earned a fair living, the law’s a mighty
interesting study, I enjoy my work—
and what more could I ask?
At the same time, I have never lost
my interest in the banking business.
The bank man who applies to me for
advice, no matter how small a fee he
can pay, and even if he can pay none
at all (and that is the limit of legal
generosity), is sure of a sympathetic
reception and the very best assistance
and advice that I am capable of ren­
dering; as I read the current law re­
ports I first turn to the “ B” index,
and look to the cases on banking law
as the sort of interesting point of de­
parture.
Tn my rare and appreciated mo­
ments of leisure I often think of inci­
dents and complications that arose in
my banking days, review my mistakes,
and am surprised at the number of
pitfalls that I could have avoided if I
had known even as much banking law
as I carry in my head today. Recent­
ly it occurred to me that some of
these incidents, written up as properly
as my limited literary capacity will ad­
mit, coupled with the legal knowledge
I now possess, might be of some in­
terest and assistance to the bank man
who is interested in something more
than his salary, and who despises
neither efficiency nor the day of small
change.
The Georgia Bond

Three months after I was “ elevat­
ed” to the position of cashier, a cus­
tomer by the name and handle of John
M. White, strolled in one rare morn­
ing in June, and “ boned” me for a
loan of $1,000.
“ What security can you offer?” I
demanded.
“ Here’s a bond issued by the town
of Carson in the state of Georgia, that
Central Western Banker, July, 1929

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Federal Reserve Bank of St. Louis

A

legal pitfall that could have

been avoided had I as a country
bank cashier known what I do
today .

By the Legal Editor
I ’ll put up for collateral security,”
White told me.
1 examined the bond. It was in the
usual negotiable form, signed by the
proper officers of the town, the town
seal was duly affixed, and it set forth
therein that all the legal requirements
necessary to the proper issue of the
bond had been properly complied with.
“ The first yearly coupon for $60 in­
terest hasn’t been clipped, so I figure it
ought to be good security for $1,000,”
White suggested.
I accepted the bond, put $1,000 to
White’s credit, when the $60 coupon
fell due I forwarded it to a bank in
Carson for collection, and the town re­
fused to pay.
“ The town claims that this entire
issue of bonds is invalid, on the
ground that the ‘validation’ proceed­
ings were held outside the county in
which the town of Carson is located,
that two thirds of the qualified voters
of the town did not vote in favor of
the bonds, and other irregularities too
numerous to mention, and on those
grounds they refuse to pay your cou­
pon or recognize the bond in any
way,” the Georgia bank wrote me.
“ Tell them that the bond we hold
says on its face, over the signature
and seal of the town, that all these re­
quirements were fulfilled,” I wrote
back, but the town stood exceedingly
“ pat,” and, as White was then on the
verge and frontier of bankruptcy, f
was a rather worried cashier.
Said Nothing to Directors

I said nothing to the board of direc­
tors, and I thought it wise to meet
trouble when it came— not to stir it
up, and two weeks later my brief and
annual vacation came on.
I had decided to spend it in the
south, anvway. Before I came back
I spent $50 of my own money in mak­
ing a side trip to Carson, paid a law­
yer there $25 for legal assistance, per­
suaded the town to pay the coupon and
recognize the bond:— returning home

at the end of my brief holiday relieved
in mind and pocket.
Now, if I had known, I wouldn’t
have spent a cent of my own money,
nor lost a wink of sleep. I would have
sued the town of Carson in the Georg­
ia Courts and forced them to pay by
legal process— and not by moral sua­
sion.
In the case of Climax vs. Burnside,
104 S. E. 435, the town of Climax is­
sued bonds in the following form:
“ The town of Climax in the state of
Georgia and county of Decatur, here­
by acknowledges itself to owe and for
value received hereby promises to pay
bearer, or if registered, to the register­
ed holder thereof, one thousand dol­
lars ($1,000.00), on the first day of
November, 1933, with interest thereon
from the date hereof, at the rate of six
(6) per cent per annum, payable semi­
annually on the first days of May and
November in each year, upon presen­
tation and surrender of the annexed
interest compound as they severally
become due, or in case of registration,
to the registered holder of the bond.
“ This bond is one of a series of like
tenor, aggregating the sum of five
thousand dollars ($5,000.00), issued
for the purpose of establishing a sys­
tem of electric lights in said town, un­
der authority of the Code of the state
of Georgia, of the charter of said
town, and of an election duly called
and held in said town on the 12th day
of November whereat more than two
thirds (2 /3 ) of the qualified voters of
said town, ascertained and determined
according to law, voted in favor there­
of. It is hereby certified and recited
that all acts, conditions and things re­
quired to be done precedent to and in
the issuing of this bond have been
done, happened, and been performed
in regular and due form, as required
by law ; that a direct annual tax has
been levied sufficient to provide funds
for the payment of the principal and
interest of this, bond at maturity; and
that the total indebtedness of said
town, including this bond at maturity;
does not exceed the statutory or con­
stitutional limitations.
“ In witness whereof, the town of
Climax has caused this bond to be
sealed with its seal and signed in its
name by its mayor, and countersigned
by its clerk, and the attached coupons
(Continued on Page 11)

5

H o w South D akota Banks A re
K eepin g Step
iation through its Public Relations
Committee can do some constructive
work.
Retiring President, South Dakota
Unfortunately the banking business
Bankers Association
in
periods of strife and perhaps at all
( From Rapid City Address )
times for that matter, is particularly
subject to adverse legislation. To
combat this danger it sometimes be­
comes necessary to draw out the heavy
artillery in matters of self defense.
This year is what is known as a legis­
lative as well as a presidential year.
W e have been, moreover, confronted
by a peculiar tax situation which
makes us all the more vulnerable. So
far we have withstood the worse at­
tacks both in the South Dakota Legis­
lature and in Congress against any at­
tempts to make the banks targets for
adverse tax legislation, but in this re­
port I would like to charge the next
administration of the South Dakota
Bankers Association with the duty of
additional work on our tax matters.
The state taxing officials are still look­
ing to us for assistance. Do we in­
tend to cooperate in writing our own
tax laws into the statutes of the State
of South Dakota, or are we willing to
R. E. D r i s c o l l
remain entirely quiescent and have
them written by our adversaries? W e
that the bankers of South Dakota are have clean hands now and admit that
again taking their place under the sun, our tax problems are as perplexing to
as well they may, because in no place us as to our tax officials, but will our
in the Northwest have bankers applied hands remain clean unless we strive to
themselves more earnestly and stu­ be of greatest assistance in trying to
diously to the matter of better banking solve the problem ? Gentlemen, I sub­
methods than in South Dakota. There mit to you the proposition that the tax
A Changed Attitude
situation is a long way from being a
is still work for this Committee. We
Some six or eight years
one-sided question. There
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ago* the dignity o f the
are m any banks in the
.Mil........ .
banking profession became
state who are paying suf­
eclipsed due to a series of
ficient taxes. There are
bank fa ilu r e s w ith all
other banks who are not
which that implies. The
carrying their share, due
“ Your Legislative Committee and your Taxation Com­
banker in many communi­
to economic conditions and
mittee this year devoted their time untiringly to their duties.
ties became almost an ob­
our tax laws. Your Leg­
They did their work remarkably well and in the last two ses­
ject of d e risio n . H ow
islative C om m ittee and
sions of the Legislature out of a score or more of bills intro­
your Taxation Committee
many of you had the feel­
duced which we believe adverse to public welfare, not one
ing that I have had, for
this year d ev oted their
single bill became a law !”
instance, when out of the
time untiringly to their
state in having to admit
duties. T h e y did their
Illlllllllllllllllllllllllllllllllllllllllllllllllilllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll
lllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllHIimilllllllllllllllllllllllllllllllllllllllllllllllllllillllillllllllllllllllllllllllllll
a p o lo g e tic a lly that you
work remarkably well and
were in the banking busi­
should be h igh ly com ­
ness in South Dakota? The South are undoubtedly in a changing era in mended. Out of a score or more of
Dakota Bankers Association has made the banking business. Changes are bills introduced in the last two ses­
a systematic campaign to correct this going to continue on even a more elab­ sions of the Legislature adverse to the
wrong impression. By education and orate scale. A number of our larger interest of the banking business, and,
publicity, through our Public Rela­ members are now a part of a much we believe also adverse to the best
tions G|ommittee and through the sec­ larger group. There will be problems public welfare, not one single bill be­
retary’s office, this attitude has been and abuses in this movement and it is came a law.
(Continued oti Page 30)
altered. Today it is clearly apparent entirely conceivable that your Assoc­

C O U T H D A K O T A is primarily an
^ agricultural state and the Associa­
tion claims to be playing its part in
promoting agriculture. Our Agricul­
tural Committee this year has taken a
keen and active interest in trying to be
of, some real and concrete assistance to
the South Dakota farmer. One of
the outstanding tasks has been that of
promoting interest among bankers in
the fostering of boys’ and girls’ clubs.
The immediate effect of this work is
to bring into the state a fine grade of
livestock, particularly fine dairy cattle
which will have a beneficial effect on
our livestock situation, in the not far
distant future. The ultimate effect is
bound to be still more important. It
is developing in the rising generation
not only an interest in livestock and
agriculture but a type of classified
knowledge, scientific knowledge if you
will, which is bound to reflect itself
in time to come. The farmer boy of
a generation ago knew that a cow was
a cow. He knew that he had to care
for that cow and he wasn’t very much
sold on his job. With the develop­
ment of 4-H clubs there is an induce­
ment for him to know more about his
cow. He learns how to take care of
it to reap the fullest reward. He be­
comes a much better citizen by the
process. The South Dakota Bankers
Association in fostering this work is
doing an immeasurable service to the
State of South Dakota.


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Federal Reserve Bank of St. Louis

Central Western Banker, July, 1929

6

Echo Lake, at the foot of Mount Evans, in the Denver
Mountain Parks.

A GES b e fo r e Col­
streets w ere of tur­
um bus sa iled a
quoise and buildings
call, how u ttered or
encrusted with gold.
how spread, went out
It required no stretch
from the mountains of
of the imagination to
Colorado, probably the
realize how the story
first of almost count­
thrilled the Spaniards.
less others, and which
In April, 1541, Fran­
still is being- sounded.
cisco Vasquez de Cor­
So far as the delv er
onado at the head of
into the past has discovered this first
his troops began the march to the cit­
call summoned the cliff dwellers who velous story that an Indian, called El ies, with the Indian as guide. He was
left their ruins in the cliffs of' Mesa Turco, because of his resemblance to the first white man who heard the
to a Turk, told the Spaniards. It was Call; the first white man to set his feet
Verde National Park.
The world’s most eminent scientists a tale; far away where there were the in the confines of the present state.
have studied these ruins, an effort to seven cities of Gibolo, and where
The marvelous coloring of the moun­
discover the true identity of
tains, with red predominating,
their builders, but have reached
prompted him to name the coun­
no conclusion. They knew agri­
try Colorado — “ color red” in
culture as shown by the burned
Spanish.
corn ; they knew the art of build­
^ O R O N A D O failed to find the
ing construction.
cities, but he did find that
History credits these myster­
the Indian had told a fanciful
ious people as probably the orig­
story to lead the Spaniards into
inal ones to answer the call, but
the wilderness to die or be
that, scientists say, is not fully
slaughtered by savage tribes. He
established. History, however,
was promptly killed, and Coro­
has a fairly close touch of the
nado returned home— disgraced.
Indians, for as far back as it
goes there are accounts of the
Oddly, perhaps, the story linger­
red men — and then came the
ed and for 200 years Spaniards
Spaniards.
still sought for the cities, tra­
It is interesting to know that
versing a vast part of Colorado.
Pike’s Peak and the Garden of the Gods, Colo­
the Spaniards heard of Colorado
Spaniards, French adventur­
rado Springs. Tzoo of the major attractions in
— the call of gold. It was a marers, traders and trappers followthe district.

Colorado, the N ations

Centrai Western Banker, July, 1929

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Federal Reserve Bank of St. Louis

/*7

Colorado* the Nation’s Playground
ed, and in 1806 came Pike and in
1620 came Long, following the
A
Platte River and the South Fork,
or South Platte river of today,
and others to answer this mys­
terious summons to the Colorado
Rockies.
The Call brought the party of
gold seekers from Georgia who
found gold on the site of Den­
ver, then the founding of Den­
ver in November, 1858, and in
State Capitol, Denver, built entirely of Colo­
quick succession the discovery of
rado material. The dome is encrusted with
gold that created the “ Pike’s
gold.
Peak or Bust” cry in the Spring
It is interesting, perhaps, to recall
of 1859. So responsive were the peo­
that Omaha played a very important
ple of the United States to this Call
part in the first gold discoveries. Two
that in eighteen years a state had been
men, one of them the late William N.
carved out of this wilderness.
Byers, founder of The Rocky Moun­
One may pause to wonder what
tain News, was an Omaha man. F(e
Juan de Zaldevar, who in 1597 came
collected some $3,000 in gold dust and
out of the mountains near the site of
in company with another man, and
Denver and observed a river which he
driving only at night, as the day was
named the Rio de Cihato or “ flat riv­ dangerous on the plains, reached Oma­
er,” and of the Mallet Brothers from
ha in twelve days, there displayed the
the French settlements in Illinois, in gold, and sent the word out by wire—
1739 traversing Nebraska saw the riv­ the only telegraph station then being
er and named it the Riviere de Plat, or
in Omaha. It was this message that
“ flat river,” would think today could created the “ Pike’s Peak or Bust” rush
they come back and see what the in­
in 1859.
Passing over the later history of
tervening centuries have wrought.
Colorado, we find today the Call is
Gold built Denver— and gold was
just as urgent as it was back in the
the Call of Colorado in those days.,
Clark, Gruber & Company opened a the days of the pioneers or of the
private mint in Denver in May, 1860, Spaniards or the Cliff Dwellers.
Scenically, Colorado must always
and gold pieces of $2.50, $5, $10 and
be the outstanding state of all the
$20 were minted, containing one per
commonwealths. The United States
cent more gold than the coins of the
Government has recognized th;s in
United States. O f this coinage some
two National Parks, four National
$3,000,000 was minted and passed. By
Monuments and seventeen National
an act of congress approved April 21,
Forests, and the state in eighteen
1862, the Secretary of the Treasury
Game Refuges. O f the sixty named
purchased the Clark-Gruber mint. The
peaks in the United States of 14,000
present mint in Denver is one of the or more feet above the level of the
greatest in the world.
sea, forty-seven are in Colorado. As­
In those pioneer days Colorado gold
ide from these are some one thousand
was unusually good, having a coin
mountains of 10,000 feet or more in
elevation. Colorado is the highest
value of from $18 to $19 per ounce.
The Call was answered by the
state, naturally, in the Union ranging
upward from one mile above sea level
Ivountze Brothers of Omaha, among
the first to hear it. In the first week
at Denver.
in December, 1862, they opened the
nPH EO D O RE R O O SE V E LT charKountze Brothers Bank in Denver,
and August 1866 it was nationalized
acterized the state when he said
as the Colorado National Bank, an in­ upon a return from a hunting trip that
stitution which today is among the “ Colorado is the playground of the
strongest in the United States. The
Nation.” The expression today is
Kountze Brothers advertisement of
quoted all over the country.
that day says the bank “ buy gold dust”
Denver has recognized the grandeur
then a medium of exchange.
of the Rockies by the creation of a


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Federal Reserve Bank of St. Louis

system of mountain parks in which
more than $2,000,000 has been e :pended in construction of boulevard­
like highways and other improve­
ments. There are two entrances to
their area, each reached from Denver
by a paved road. They include some
of the most entrancing scenery in the
Rockies. In a round trip easily made
from Denver in a day the motorist is
taken up Mount Evans, where banks
of snow are beside the highway, with
wild flowers growing nearby. At the
foot of the mountain and its com­
panions is Echo Lake and several oth­
er lakes, all snow-fed, are found in the
region.
There are so many allurements in
Colorado that visitors have for several
years simply abandoned an attempt to
make a complete list in their letters to
friends, and correspondents for news­
papers and writers for magazines have
found the same difficulty. One may,
for example, find within the state 6,000
miles of trout fishing streams to lure
the angler; there are more than 9,000
miles of improved road to entice the
motorist into all parts of the state, to
cross and recross the Continental Di­
vide; there are accommodations for
every person— hotels, cottage camps,
fishing camps, and with prices that
meet the pocketbook of the millionaire
and of the average wage earner. One
will find, of course, the dude ranch,
now a recognized institution through­
out the West.
O f pastimes one finds golf, tennis,
boating, swimming, mountain climb­
ing, polo— and there are the cool days,
the colder nights with the need or a
blanket, and the invigorating air that
makes one joyful just to be alive!
The old timers in Qolorado are ob­
serving that each season sees an in­
creasing number of summer visitors
who are camping out— living in the
ooen. The National Forests offer
these opportunities where one may be
isolated or camp near villages or tele­
phones. There has also grown up in
the last few years fishing camps where
the visitor may have an individual
cabin, with meals in a central dining
room. This assures the privacy that
a very considerable number desire.
Rest and Recreation are the two dom­
inant words in Colorado—and they
may be classed as the basis for the
Call as it exists today for the summer
pleasure seeker.
Central Western Banker, July, 1929

Y ou r B ank’s S econdary Reserve
T H A V E been surprised at times to
1 find so many out-state banks with­
out any secondary reserve and very
little cash reserve.
The first argument that probably
will be advanced by you that oppose a
secondary reserve will be that you do
not have enough funds to take care of
the needs of your local community
borrowers.
Your first obligation is to your de­
positors to maintain your bank in such
condition that they may be sure they
may secure their money on demand or
when due. W e even make our C. D.’s
payable on demand without interest.
Your depositors are entitled to their
money at any time they need it.
Your second obligation is to your
stockholders, who are entitled to de­
mand a profit and a right to demand
that the bank be kept in such liquid
condition that they will not be com­
pelled to “ dig” into their pockets for
an assessment.
The only way this can be accom­
plished is to build a big secondary re­
serve so you will not drift into making
frozen loans that you pay out your de­
positors’ good money for and are nev­
er able to get back— let alone get back
when they need or want it.
In the early days of our State, Sec­
ondary Reserve probably was not as
necessary; prices and deposits were on
the up-grade and the capital of the
banks were in a larger ratio to deposits
than today, and you were loaning
more of your own money than you are
today.
The wise banker saw the change
coming as soon as his deposits began to
go up faster than usual and prices
were changing he started a secondary
reserve the same as the New York
and Chicago banks demand larger
margins on Call Loans when the stock
prices began to boom.
Bad banking can absolutely ruin a
community; temporary bad business
conditions can not ruin a strong bank
or community if the bank is expertly
managed.
A Real Community Asset

A well managed bank, one that does
not loan all their money in their own
community— and what they do loan—
is well secured and can be collected
when needed by the bank, is an asset
to the community, and attracts de­
positors from a wide area and attracts
and draws the right kind of people for
the community.
In making your investments, keep in
mind your depositors’ needs and you
will naturally select a diversification
Central Western Banker, July, 1929

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

By Byron Bunn
Vice president, National Bank,
of Commerce, Lincoln
(From Address Before Nebraska
Group Meetings)
of loans which will give you secondary
reserve. Apply your protection in the
right place. The borrower does not
need protection— he gets the money—
but the depositor and your stockhold­
ers do need protection.
1 am afraid that a lot of we bankers
have a mistaken notion that we make
our money off of our borrowers. W e
don't. W e make our money off of our
depositors and we should protect our
paymaster, and I don’t believe it can
be done without plenty of secondary
reserve plus the necessary amount of
cash reserve.
You have all heard the “ slogan” but
have not thought to apply it to your

B yron D u n n

bank: “ Do not put all your eggs in
one basket,” and the “ echo” of : T ut
all your eggs into one basket and
watch it.” I like to use both of the
“ slogans” and say to you-—“ Do not
put all your eggs into one basket and
watch them.”
The Board of Directors should also
be asked to attend these Group Meet­
ings. They are usually made up of
the leading men of the community and
are inclined to strain the bank’s re­
sources for the benefit of the local
borrower.
The point I want to stress is the
limit in making local loans. Any
bank should be compelled to stop mak­
ing even the most desirable loans at

some point long before they impair the
bank’s cash reserve.
The Proper Amount

The next natural question is: The
proper amount of Secondary Reserve.
I am inclined to believe that no rule of
thumb can be laid down for all banks;
every community has a different prob­
lem as to kind and amount of second­
ary reserve that should be studied and
learned.
The correct proportion should, I be­
lieve, be determined from a study of
the depositing and borrowing habits
of each community.
A community that consists of peo­
ple— the majority of whom own their
own homes or farms, has a different
investment need than a community
that consists of renters and laborers.
I feel that, at least, 25% outside of
the necessary 15% cash reserve should
be invested in secondary reserve.
I would like to say a word here
about where your primary or cash re­
serve should be invested. It should
be carried in a reserve city bank that
carries enough secondary reserve to
meet your requests, if you should need
it.
The exchanging of cash balances
with your neighboring banks should
not be counted as cash reserve; neith­
er should paper carried for a neigh­
boring bank be considered as secon­
dary reserve.
Commercial Paper, I believe, should
occupy the larger portion of your Sec­
ondary Reserve.
Commercial Paper has netted over
a period of twenty-five years 4.88 per
cent; high-grade bonds, 4.65 per cent;
in 1928 Commercial Paper netted 4.93
per cent; Call Loans 5.85 per cent.
The present rate on Commercial Paper
is 5.75 to 6 per cent.
The purchasing bank has a selec­
tion of names and should diversify,
geographically, as well as to kind of
industry.
It is sold to you with a ten-day op­
tion in which you may investigate
thoroughly and if not satisfied, return
the paper without cost.
When you purchase Commercial
Paper, the rate is fixed and you re­
ceive your interest in advance. It is
not added into the note but deducted
from the remittance.
It can be purchased with a maturity
of from sixty to one hundred eighty
days.
There is no charge for buying or
selling. There will come a time when
there will be a charge for this service
(Continued on Page 28)

9

Colorado Bankers Report Farm
Conditions Above Average
(C O L O R A D O has long been noted
^ for its rugged mountains and
beautiful scenery. In fact, many per­
sons probably think that the great
state of Colorado is just one vast plea­
sure resort and tourist camp. They
do not realize that Colorado has thou­
sands of acres of rich, level soil, ideal­
ly adapted to the growing of diversifi­
ed crops, and that agriculture con­
tributes a generous share to the re­
sources of this great commonwealth.
Inasmuch as Colorado does look to
agriculture for a considerable source
of her income, the condition of crops
is always of vital interest. The Cen­
tral Western Banker presents here a
cross-section of Colorado crop con­
ditions, obtained from banks in every
section of the State. With the excep­
tion of a few localities which are in
need of rain, the prospects for Colo­
rado agriculture this year are exceed­
ingly bright.
,
In analyzing the following reports,
it must be borne in mind that the in­
formation was obtained during the lat­
ter part of last month, and since that
time needed rains or other climatic
conditions may have had an influence
on the situation.
The reports are as follows :

seed acreage for the different varieties
for the seed companies which is get­
ting to be quite an item.”
Montezuma Valley National Bank,
Cortez

“ It is too early to give anything real
definite on the crop harvest at this
time. However the first cutting of hay
is much better than last year and is up
to average. Fall wheat is quite good,
and up to average or better. Spring
crops of which most of the land is
planted is looking very good, but we
are having considerable wind which is
drying the ground. The dry land
section to the northwest of here has
in the largest acreage in its history,
and deep snow last winter killed off
the most of the Jackrabbits which
were a very bad pest of the dry land
section. There is a very large acreage
in both Mexican and garden seed
beans this year and at the present
time they are in the most part just up.
There is a very good stand and they
look good. General farm conditions
are good and much better than at this
time last year.”
American State Bank, Brighton

“ The beet acreage in this territory
is the largest in history with early
Grand Valley National Bank,
moisture conditions being very favor­
Grand Valley
able. Grain crops looked especially
“ Crop conditions in this immediate good and considerably above the aver­
vicinity are probably above last sea­ age on June 1. However hot dry
son with the possible exception of the weather of past two weeks has ma­
beet acreage. The bean acreage is terially cut grain prospects and while
larger and the small grains never are not yet affecting beets, will have un­
large, i. e., in comparison with small favorable results for the beets if it
grain areas. Normal here. The al­ continues longer. Water conditions
falfa crop is getting less each year on are somewhat below normal and water
account of the fields going to grass supply is less than for past several
However seasonable rains
and we are losing in tonnage each years.
would relieve the situation so that
year.
“ Acreage on tomatoes and peppers normal or better returns would result
on irrigated lands.
will be normal and some increase on

“ The dairy cow continues to con­
stitute our principal source of income
next to the sugar beets. The price
for good grade cows is at highest
point in past five years ranging from
$100 to $175 for the Holstein. Cali­
fornia has taken a considerable num­
ber of our cows in past several years
so that no surplus of animals has ac­
cumulated in this territory.”
Farmers State Bank, Cope

“ Crop prospects this season in our
territory are g ood ; small grain begin­
ning to head, and in good condition
although somewhat late. Large acre­
ages of corn, barley and hershey have
been put in for feeding purposes in an
attempt to offset the ruinous market
prices of grain.”
Farmers State Bank, Haxtun

“ It is just a little early to even make
a guess on the corn or spring crop
conditions or prospect.
“ The fall wheat in some localities
South of Haxtun are hurt consider­
able now for the want of rain, how­
ever, there is a lot of wheat near Flaxtun, especially North, Northwest and
Northeast that is looking good and we
anticipate an average crop in this ter­
ritory.
“ The stand of corn is good and the
spring wheat and barley looks fine to
date, but we are needing rain very
badly.”
Blanca State Bank, Blanca

“ Last year we shipped 600 cars of
lettuce, peas, and cauliflower, this year
we will ship around 1,200 cars. I be­
lieve that conditions of farmers here
financially are the best in the State
owing to these crops.
This is also a great sheep country,
lambs sold for 12Jd cents, wool worth
around 28 cents cash. W e also have
a good many cattle, both dairy and
stock.”

Above, farm scenes in Nebraska and South Dakota, where dairying and the raising of hogs are fundamental to farm prosperity.


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

Central Western Banker, July, 1929

10
First National Bank, Center

'“The present outlook for the crops
in this locality are about as usual.
Some claim the prospects for a wheat
crop are not as good as usual. Pota­
toes are the main crop here and they
are looking fine. Some of the alfalfa
died last winter and many prophesy a
shortage this fall. Prospects for a
good yield of barley, oats and peas is
good.”
First National Bank, Greeley

“ The agricultural condition in this
country at the present time is very
promising and if nothing unforseen

happens to injure it we are looking for
the best return in the past four or five
years.”
Bank of Del Norte, Del Norte

“ Crop conditions in the San Luis
Valley are generally fair except that
the growing season is about 3 weeks
late this year. There is, perhaps a
cut in the potato acreage this year over
last year. Sheep, cattle and hogs are
doing well and came through the win­
ter in fine condition. The spring pig
crop is decidedly short as nearly all lit­
ters have suffered a heavy mortality in
the first three weeks after birth. The

Lettuce crop around the Del Norte
district is late, and there has been con­
siderable trouble with cut worms.
Plenty of water for irrigation, with
prospects good for fair prices. Lambs
are all contracted at a good price for
October delivery, shearing is in prog­
ress and flocks are beginning to move
onto the high ranges for summer pas­
ture.”
Citizens National Bank,
Glenwoocl, Springs

“ Conditions are about an average,
in western Colorado, except for a
(Continued on Page 17)

W hat the “Credit Bureau^ Can D o
For the Country Bank
rP O D A Y , clean credits mean more to
assure a bank’s solvency, than any
other factor. Carelessly made loans,
loans without collateral, and duplicate
borrowing, will all bring troubles
never known before.
Credit bureaus are direct vehicles
to assure the banks’ solvency, and to
conserve its profits. Every banker,
therefore, should be interested in
learning of the operation of these
bureaus and of what has been ac­
complished through them in building a
stronger and more closely welded
banking structure. None of us will
admit that he is working for his
health. And who of us ever heard of
a bank that was a safe profit maker
over a long period of years, getting
into serious difficulties.
Banks in villages and small cities
especially need the aid of a credit bu­
reau because of the lack of contact
with other bankers which is sometimes
caused by rivalry. The credit bureau
often eliminates destructive competi­
tion and supplies constructive coop­
eration. You will be interested, there­
fore, I am sure, in a brief account of
the methods and operations of the
credit bureau plan.
In Wisconsin, my home state, our
credit bureau plan is this: Organize a
certain locality (one or more counties)
for the purpose of interchanging cred­
it information to eliminate the unwor­
thy borrower. Such banks when join­
ing, must have the sanction of their
directors and must pledge not to take
advantage of other member banks
when duplications are discovered.
Credit bureau member banks report
all loans on separate cards prepared
for such purposes— secured or unseCentral Western Banker, July, 1929

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

Vice-President Security State Bank.
Madison, Wisconsin
cured, excepting commercial paper—
as to name, address, etc., but no
amounts are shown to the Credit Bu­
reau manager. The cards are then
assorted and duplications are reported
back to the interested banks, indicat­
ing the banks affected by symbols or
key. The interested banks then know
from what banks the customer is bor­
rowing and can communicate with
such interested banks. These banks
must report all lines of credit when
fully retired. This is as important as
reporting new lines when taken on.
Another real value is in being able
to call the bureau manager before a
loan is made to ascertain from what
other source, if any, he is borrowing
This affords ample opportunity for
checking the borrower before the loan
is made. W hy wait to awaken with
a headache from a loan?
The cost is so small in comparison
to results obtained that it is not worth
serious consideration. It perhaps will
not exceed 10c per $1,000 of loans, or
10c per name— per year. This cost
includes files, supplies, stenographic
work and manager’s time. In many
instances the cost is only one-fourth
to one-half this amount, varying as to
rate paid for work done and amounts
involved.
W e had two credit bureaus in 1927.
W e now have 24 credit bureaus cover­
ing 28 counties, representing 249
banks or one-fourth of all the banks in

our state. This includes approximate­
ly 71,762 names reported, of which
11,063 were duplicates or 15 y2 per
cent, 8,932 or 12jT per cent, borrow
from two banks; 1,735 or 2.4 per cent
from three banks; 309, 4 banks; 57, 5
banks; 16, 6 banks; 9, 7 banks, and 2,
8 banks.
It has been said that the large com­
mercial banks loan their funds in such
a way that credit bureaus are of but
little value— and yet I know of sever­
al instances here in our big mid-west­
ern city, where certain banks would
have saved large sums had an effici­
ent credit bureau been available. The
occasions may not be so numerous, but
the amounts involved are great. The
problems of large banks and small
banks are about the same, only in
different ratios.
O f course, in all this it must be rec­
ognized that a credit bureau is not a
“ cure-all,” nor is the Regional Clear­
ing House. However, both will serve
admirably as effective, worthwhile preventatives which you will all agree are
much preferable to post mortems. All
of us spend money to increase totals ;
is it not much better business to con­
serve that which we already have?
Modern industrial management is un­
dergoing drastic changes. The same
is true in modern banking. Credit
bureaus and regional clearing houses
make for direct saving in charge-offs,
reducing operating costs and helping
to realize adequate profits. The under­
lying idea back of both of these move­
ments is, of course, that in unity there
is strength, and that through closer
cooperation of our banking interests
and the best interests of our deposit­
ors at the same time.

11

»

T f F FE C TIV E July 1. Wm. H. Maas
will represent in Chicago as Vice
President of the I)e Puy Publishing
Company all of the magazines includ­
ed in the De Puy Group of Banking
and Insurance Publications which is
composed of the Central Western
Banker of Omaha, the Northwestern
Banker and the Iowa Bank Directory
of Des Moines, the Mid-Western
Banker of Milwaukee, and the Under­
writers Review of Des Moines, the
Middle W est’s leading general insur­
ance magazine.
Editorial and business offices will
be maintained at 1221 First National

“ If I Had Only Known the Law”
(Continued from Page 4)

to he authenticated by the facsimile
signature of its mayor.”
In the case referred to the Supreme
Court of Georgia held that the bonds
were valid in the hands of a bona fide
holder for value, and that the town
could not deny the statement in the
bonds that all the requirements of the
law had been complied with.
“ If a municipal corporation, having
general authority to issue bonds for
specified purposes, puts forth a nego­
tiable municipal bond issued for such
lawful purpose, and therein recites,
through its duly authorized proper o f­
ficials, whose province and duty it is
to ascertain and peculiarly to know the
facts, compliance with the specific pro­

(j 5 O

visions of the law essential to the is­
suance of the bond, the municipality
is, as against bona fide holder of the
bond, purchasing for value, and on
faith of the recitals, estopped to deny
the truthfulness of the recitals,” said
the Court.
Touchy

A Negro private met a captain one
m o r n i n g , and greeted him with
“ Howdy, boss.”
Followed a long tirade from the
captain on the correct way to salute.
The buck private listened in silence,
scratched his head, and finally said:
“ Lawsy, boss, if A h’d thought you
was gwine git so mad about it, Ah
wouldn’t of spoke to you a-tall.”

Telephone conver­

sations every second

W

m

.

H.

M

aas

Bank Building and Mr. Maas will
have charge of the activities of the De
Puy Publishing Company in the im­
portant Chicago territory.
Mr. Maas has an extraordinary fac­
ulty for making friends and during
the seven years in which he has been
associated with the De Puy Publishing
Company he has extended his friend­
ship by the hundreds into banking,
financial and insurance circles of the
entire Mississippi Valley.
In 1915 and 1916 he was the owner
and editor of The Belle Times, Belle,
Missouri. He later served on various
metropolitan newspapers, having writ­
ten the financial and business news for
the St. Louis Republic in 1918 and
1919.
He is a member of the board of
directors and chairman of the program
committee of The Prosperity Club of
Chicago; is a member of the board of
directors and vice-president of the
Press Club of Chicago; is listed in
“ W ho’s W ho in Journalism,” and is
a member of the Grinnell College
Chapter of Sigma Delta Chi, profes­
sional journalistic fraternity.


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

q p H E American people
sen d m o re th a n
20,000,000,000 telephone
messages over Bell System
wires in a year. Connect­
ing in and with the Bell
System are more than
19,500,000 telephones, and
the number is increasing
at th e rate o f 800,000
a year. The System is
expending more than five
hundred million dollars a
year for plant and equipment.
Vital Facts fo r Investors about
American Telephone ayid
Telegraph Company Stock
Back of the stock of the Amer­
ican Telephone and Telegraph
Company is a total plant in­
vestment of more than $3,500,000,000. More than 60,000,000

telephone messages a day are
sent over wiresof the Bell System.
Its stock is now owned by more
than 450,000 persons. A far­
sighted management carries on
extensive research work, plans
future expansion, and at the
same time maintains a continu­
ous dividend.
May we send yon a copy of our
booklet, “ Some Financial Facts” ?

BELL T E L E P H O N E
S E C U R I T I E S CO. Inc.
105 Broadway

New York City

Central Western Banker, July, 1929

12

H E M E 'S H O W - to
— Sell savings over bond competition
— Build small unprofitable savings into profitable
accounts
— Revive dormant savings accounts
— Establish a Real Estate Loan Department
— Advertise for large construction loans
— Advertise for small housing loans
— Solicit correspondent bank accounts
— Sell commercial banking to business men
— Sell the checking account as a financial service
— Inaugurate and announce the service charge on
checking accounts
— Meet trust objections in selling
— Fit trust advertising into a general campaign
— Analyze the trust department
— Prepare institutional copy for investment houses
— Develop sales promotion for investment houses
— Coordinate sales, buying, advertising and sales
promotion for investment houses
------------------- -— T O FIND O U T —A T T E N D THE^---------— — -------

FourteenthAnnual

F I N A N C I A L ADVERTISERS

ASSOCIATION
H O T E L BILTM ORE
O c t o b e r 30
TO

N o vem ber 2
A tlan ta -G eorgia

Central Western Banker, July, 1929

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

13

easy credits we have
JU ST a little over a
been confronted with
** w eek ago I was
m ore or less o f a
talking w ith one o f
stringency and its ac­
the partners of a New
companying high in­
Y o r k In v estm en t
terest rates and low
house, and during the
security values.
conversation he recit­
A s a consequence,
ed experiences he had
bankers can n ot be
had in 1918, stunting
blamed for making the statements
with an seroplane over several of our
they have in recent months that once
important cities, to create sales inter­
the bond market came back so they
est in the Victory Loan.
could get out without a loss that they
Whether someone has been stunting
Vice president, Continental National
would never again purchase this type
in Nebraska these past ten years, or
Bank, Lincoln
of security.
for some other reason, bonds have be­
Nevertheless, it is my honest belief
come an ever increasing engrossing
(Address Before Nebraska Group
that they will buy bonds, but in an en­
subject.
tirely different way.
M eetings)
The past ten years have witnessed a
Hours have been spent by each of
transition in the history of banking
us in listening to talks on how to buy
not only in our own state but through­
investments and we have read plenty
out the middlewest.
more. Common sense plays an even
Very few banks in 1919 gave much
consideration to the investment of cus­
The years from 1922 to 1928 wit­ more important part in the setting up
tomers funds, let alone the creating of
nessed a remarkable period of expan­ of an investment list, than does the de­
liquid secondary reserves of their own. sion and development, not only in this tail of financial and earning state­
This was evidenced by the fact that country but abroad, and the necessary ments.
To those of you contemplating a
fully 75 per cent of all the farm mort­ financing accompanying periods of
gages made in the state at this time this kind, proved to be very profitable bond account at some future date and
those of you already hav­
w ere marketed th rou gh
ing one, the same advice
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loan institutions in Oma­
..................................................................................... ........................ ................ .......................................................................
applies. “ Formulate a def­
ha and Lincoln.
inite program and then
The inflation of land
live within it.”
values and the following
Sound banking does not
dep ression had a great
“ Bruce Barton had an article in a recent issue of the
constitute maintaining a
deal to do with the cur­
American Magazine entitled, ‘When W e ’re Through Changing
reserve equal to that re­
tailment of credit and the
W e’re Through,’ and this is the thought I would like to leave
quired by law, but rather
realization that loans of
with you. The bond account of the Bank, the growth and de­
h avin g a safe m argin
this general ch a ra cter
velopment of the community, the very bank itself, will depend
above fo r contingencies
which had fo u n d th eir
upon the ability of the hanker to adapt himself to changing
that may arise. To give
way into the assets of the
conditions and upon his vision into the future.”
a rule to go by would be
bank, were anything but
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fo lly fo r com m u n ities
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liquid security.
vary as to the demands
With the g row th o f
bank deposits and the curtailment of to individual and banks alike, inas­ made upon the bank and the banks
credit, except for necessary purposes, much as the period was one of exceed­ program must in a sense be formulat­
the attitude of the banks became more ing prosperity to corporations and ed in conformity with those demands.
pronounced in their desire to assist the governments.
Your Cash Reserve
depositor in obtaining outside invest­
Interest rates declined and securi­
Whenever practical a cash reserve
ments, both from the standpoint of
ties purchased during these years had of 20 to 25 per cent should be main­
profits to be derived from the sale of shown a handsome profit to the holder.
tained at all times and a secondary re­
the securities and to decrease the con­
As is always the case in situations serve equivalent to it should be set up.
stantly growing overhead of interest of this kind, people are anxious to in­
The old time banker doing this would
paid on time deposits.
crease yields and obtain a possible be criticized for not taking care of his
profit on additional transactions, with community. Modern bankers know
A Natural Step
With interest rates as attractive as the ultimate result that position is that this sort of a bank is the one that
they were in 1922 it was but a natural weakened by acquisition of securities can take care of them.
To my mind the secondary reserve
step for the banks themselves to be­ of inferior quality.
The past ten months have seen a of a bank should be made up of com­
come interested in the security mar­
change in these conditions and from mercial paper, call loans, governments,
kets.


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Federal Reserve Bank of St. Louis

Investment Trends
o f the Present Day

Central Western Banker, July, 1929

14
short term and long term bonds of a
strictly marketable and liquid charac­
ter.
As proper diversification for the list
1 would suggest :
20% Commercial paper or Call
Loans.

20% Government or Treasurer Cer­
tificates.
30% Short term bonds— one to five
years.
30% Long term listed bonds.
(Once this program is adopted it is
not enough to rest the responsibility

A Special Department
For You
This institution has a special department main­
tained fo r our banker friends and customers.
Experienced
available.

advisory

counsel is constantly

This Corporation, as successors to Phillips &
Company, will continue to conduct a general invest­
ment Securities business dealing in listed and un­
listed Stocks, Bonds, and Investment Trusts.
Ask us about our service without obligation to
yourself.

LLOYD PHILLIPS & CO., Inc.
IN V E S T M E N T SECURITIES
201-205 Union National Bank Building
Telephone 348

Central Western Banker, July, 1929

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Federal Reserve Bank of St. Louis

Fremont, Nebr.

upon the City banker or the bond
house.
Modern banking frowns upon the
institution that does not maintain ad­
equate and up to date credit files. It
should also frown upon the banker
that buys commercial paper and does
not know all there is to know about it.
Complete files should be kept on the
comercial paper lines that you are buy­
ing and up to date statements should
be obtained and kept up to date on the
corporations whose names you buy.
Call money has been very popular
this past year. Much argument has
been had as to its safety and plenty of
authority can be had on both sides of
the question. It does not seem prac­
tical to invest funds in a security that
will gyrate from 6 to 20 per cent but
on the other hand on my last trip east
I failed to find a New York banker or
bond house that expressed the slight­
est concern over it. Sooner or later
rates will adjust themselves and in­
terest will disappear in this class of
security.
Short term bonds classify as those
having maturity from one to five
years. However, care should be exer­
cised that the securities bought repres­
ent well known companies and that
the issue is large enough to command
a ready and liquid market.
To obtain a higher yield it is per­
fectly natural to place a portion of the
secondary reserve in long term bonds.
However, rate will be ignored more in
the future than it has been in the past
and care will be used to buy high
grade securities commanding a ready
market.
Here, too, responsibility will not
rest alone on the bond house. Files
should be kept on each security and
earning statements should be obtained
at least once each year. Speculative
issues have no place in a bank’s list.
It is easy enough to pass upon a
credit applied for by one of your local
business men or progressive farmers.
W hy? Because you are able to see
what he is doing or can conceive with
him the plan he has in his mind.
It is not enough to diversify a se­
curity list as to maturity, but this
same program should be carried
throughout the entire list. A certain
percentage should be placed in govern­
ment bonds, part in railroad securities,
and part in utility and foreign govern­
ments.
It is hard to determine an exact
rule of diversification but most au­
thorities divide a list about as follow s:
30% Lfifited States Government.
30% Railroads.
20% Utilities.
10% Industrials.
10% Foreigns.

15
Diversification in a bond list is just
as important as diversification in gen­
eral banking. Conceive if you can a
bank depending entirely upon farm or
city business. A crop failure or an
industrial difficulty would soon ruin
the managed institution.
In our own state we have gone
through the period of converting our
farmers away from the one crop idea,
and have had a great deal to do with
the building up of the state’s present
dairy business.
While in New York a week ago I
talked with several of the executives
in the National City Bank. They feel
that the changing over of the South
from an entirely cotton growing sec­
tion to small farming and dairying and
produce has been a real accomplish­
ment.

sometimes called the change specula­
tion. There is not much argument
about it but out of it all we as bankers
will find that we will have to change
our own opinions to some extent if we
are to serve him, for it seems to be a
pretty general opinion that a great
proportion of investment funds are
likely to be placed, in the future, in
common and preferred stocks.
Our attitude out here in the middle
west has been affected by recent ac­
tions on the part of the Federal Re­
serve banks in their attempt to curb
speculative trend, and we have been
apprehensive as to final results. Opin­
ions seem to be general that other

methods than high money, will have to
be used to bring about the desired re­
sult. It is rather doubtful, however,
that anything will be done to disturb
the seeming prosperity of our Ameri­
can Corporations.
Encouragement should be given our
customers to again buy land, and if
this can be accomplished thousands of
dollars can be released for productive­
ness and investment.
The banking situation in Nebraska
has been a complicated one these past
few years, due to the fact that we
have been constantly kept before the
public’s eye. It is going to be nec­
essary to do some educational banking

Investment Knowledge

It is also necessary in setting up an
investment account to have some im­
mediate knowledge of the corporation
you are loaning your money to.
The management of the corporation
is of vital importance. The type of
business operated, whether the cor­
poration is able to turn its inventory
often or whether it is dealing in larger
units.
The record of earnings is even more
important than is the relation of prop­
erty values to funded debt.
Vision is another important essen­
tial to careful security buying, as it is
conservative banking. If it is our be­
lief that the country is going back­
wards and that the outlook for busi­
ness is not good, it is going to be near­
ly impossible for us to do conservative
banking.
While riding on the New York Cen­
tral’s crack train, the Twentieth Cen­
tury Limited, I picked up a little book­
let showing the advantages of this par­
ticular train. This booklet called at­
tention to the fact that the equipment
of that particular train stood an in­
vestment of $1,046,000. It seemed
like a terrific investment but when one
considered the volume of business be­
ing done and the earnings that this
road is making, the thought comes that
the officials of this road must have had
some vision as to the future possibili­
ties.
In the same wav modern invention
has been able to fit into present large
business and we find aviation linking
up with our large railroads, radio used
in ways never before dreamed of, and
so on in hundreds of other ways.
The individual has also changed his
ideas in so far as investments are con­
cerned and has gone a long ways from
the timid soul of liberty loan days.
His change has been so rapid and
pronounced the past year that we have


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Federal Reserve Bank of St. Louis

Central Western Banker, July, 1929

16
and the sooner it is started the quicker
Nebraska banking will regain its old
stability. Rankers themselves should
take pains to show their customers
the strength of their institutions. Com­
mercial Clubs and business organiza­
tions should join hands with the banks
in concerted effort to re-establish faith,
and it will not be long until the cry of
the wolf will entirely disappear.
Bruce Barton had an article in the
March issue of the A m e r i c a n M a g a ­
z i n e entitled “ When W e’re Through
Changing W e’re Through,” and this
is the thought that I would like to
leave with you.
The Bond account of the bank, the
growth and development of the com­
munity, the very bank itself, will de-

pend upon the ability of the banker to
adapt himself to changing conditions,
and upon his vision into the future.
Must Have Investment Facts

With millions of Americans now
owning securities, and their value in
the aggregate running into billions of
dollars, a background of facts for
their investments has become essential
to the people of the United States gen­
erally, Hugh Bancroft, president of
Dow, Jones & Co. and publisher of
Barron’s, the Boston News Bureau
and the Philadelphia Financial Jour­
nal, declared in an address delivered
over the radio recently as guest speak­
er on the Halsey, Stuart & Co. radio
program.

u

A NATIONAL CITY
MAN CAN HELP YOU

...when your customers
want to invest
Many o f your customers naturally expect you
to have at your fingertips a host o f investment
suggestions to aid them in putting their sur­
plus funds to work. If you are not in position
immediately to make such suggestions, all
you need do is telephone The National City
Company’ s nearest branch office. Here a man
experienced in sound investments will gladly
help you solve the problem. You should be
able easily to meet your customers’ needs
from our widely diversified investment list.

The National City Company
National City Bank Budding, New 1 ork
Offices in more than 50 leading cities throughout the world
BONDS

*

SHORT

TERM

Central Western Banker, July, 1929

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Federal Reserve Bank of St. Louis

NOTES

*

ACCEPTANCES

This background, Mr. Bancroft
said, could be obtained by reading the
well-edited financial pages of the gen­
eral and financial press for the essen­
tial underlying facts that determine
values, rather than for the surface
news which may or may not have a
temporary effect on prices.
“ As you look through the stock and
bond tables,” Mr. Bancroft advised,
“ make it a point to notice the course
of seasoned securities, as well as those
that may be temporarily in the lime­
light or those you happen to own.”
Prices in the long run, Mr. Bancroft
said, are determined by values, which
in turn are determined by earnings.
Earnings statements, he said should be
read in comparison with the reports
for the corresponding period of the
previous year, as most companies
show seasonal variations.
Other items which Mr. Bancroft ad­
vised watching included car-loadings
— one of the most significant business
indexes, and one which should also be
compared with the previous year; the
money market, with special reference
to time money and commercial paper
rates; the Federal Reserve statement,
and the export and import movement
of gold; and commodity prices.
“ The course of commodity prices
has a profound effect on security
prices, both general and specific,” he
continued. “ As commodity prices de­
cline, a given amount of money will
buy more things. Therefore, fixed
income-bearing securities, bonds and
preferred stocks, become more desira­
ble in contrast with common stocks
and commodities.”
Scrutiny of financial columns for
announcements of changes in manage­
ment of banking sponsorship, and of
mergers and consolidations, was also
urged by Mr. Bancroft, who declared
management to be the greatest single
factor in successful business. A read­
er should also learn to discriminate
in his appraisal of the reported opin­
ions of market observors and financial
authorities.
A . I. B. Elects

Arthur B. Hanson of the Colorado
Title and Trust company was elected
president of the Colorado Springs
chapter of the American Institute of
Banking at a meeting of the organiza­
tion held recently at Bruin Inn. He
succeeds W. C. Bybee. Grover L.
Scott of the Exchange National bank
was elected vice president; Miss Eun­
ice Witten of the City National bank,
secretary, and Otis Bymaster of the
First National bank, treasurer.
The meeting was a dinner, follow­
ed by a dance, and there were present

17
about 15 members of the association
and their wives from Denver. In the
Denver party were Ben Aley, vice
president of the United States Na­
tional bank there, and James Fisher.
Pre-Convention Meeting

Past presidents of the Colorado
State Bankers association met in Col­
orado Springs the day preceding the
annual state convention for a banquet
and informal gathering at the Ant­
lers hotel, June 21-22. Willis Arm­
strong, present head of the association,
presided.

“ W e have quite a few cattle on the
range in this vicinity and grass is
good.
Bank of DeBeque, DeBeque

“ Crop conditions in this locality are
unusually good. An abundance of
snow fall during the last Winter in­
sures plenty of water for irrigation
and good range for live stock, our
principal industry.”
Citizens State Bank, Holyoke

“ Crop conditions around here are
very good, above the average, looks
very good for a bumper small grain
crop right now.”

First National Bank, Hugo

“ The largest percentage of wheat
is grown in the northern half of Lin­
coln County where moisture condi­
tions are spotted and on the whole not
satisfactory and the wheat is being
damaged but not to an extent as yet
which would be likely to cut the yield
much under a normal yield although
the wheat prospects depend entirely
on the immediate future.
“ Ranges are well stocked with cattle
and the condition of cattle and of
sheep are satisfactory and approxi­
mately normal.
“ Summing up. Corn and bean
prospects are normal and wheat pros-

Colorado Bankers Report
Conditions Above Average
(Continued from Page 10)

much less acreage of potatoes. First
cutting of alfalfa will commence next
week, with a good crop. Forest Re­
serves are being stocked to the limit
with sheep and cattle. Lamb crop is
about one hundred per cent, and early
lambs will begin going out by the mid­
dle of August. Cattle and sheep are
both in good condition.”

American Founders
Corporation

Elizabeth State Bank, Elizabeth

“ Prospects for this year are excel­
lent, although it is a little too early to
predict anything very definite. First
cutting of alfalfa hay is just begin­
ning, and the quality appears good.
No alfalfa is shipped out of the dis­
trict, as the irrigated acreage is limited
and the non-irrigated alfalfa can only
be depended upon for one good crop
a year.
“ The county is in need of more pro­
gressive farmers with means. Land
is cheap and there is a considerable
acreage which could be profitably put
under cultivation. It is in the rainbelt on the north slop of the Arkansas
Divide, and failures are practically
unknown.”

HE American Founders Corporation
was organized in 1922 by a group of
financial experts, and at that time
students of the investment business
prophesied that the stock of this com­
pany would double in value in a few
years.

T

During the seven years the company
has been in existence the value of its
common stock has doubled each year.
At the present time the American
Founders Corporation is in a better posi­
tion than ever before to grow and in­
crease its earnings.

First State Bank, Hillrose

“ Crop conditions at present look ex­
ceedingly good in our territory with
the exception of a few patches of late
sugar beets planted on sweet clover
ground. It seems the sweet clover got
a good early start this spring and
considerable foliage was turned under.
The ground was heavily irrigated and
the decaying sweet clover gassed the
young beet plants, causing a number
of pieces to be re-planted. Our grain
and alfalfa crops look good. The first
cutting of alfalfa is ready to cut; fall
wheat is headed out ; spring sown
crops are about knee high ; the Sugar
Company survey shows about eighty
per cent of the sugar beets thinned.
Barring hail we will have a good crop
this year.”


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Federal Reserve Bank of St. Louis

Ask for Complete Information

SMITH, LANDERYOU & CO.
2 1 0 Farnam Building,
Omaha, Nebraska
Ja. 5065

Central Western Banker, July, 1929

18
pects are only fair and can move
quickly one way or the other.”

First National Bank, Hudson
‘‘First cutting of alfalfa, good.
Wheat prospects fine at present, badly
in need of rain. Large acreage of
sugar beets, good stand and lookingfine. Prospects fair for corn and oth­
er small grain.”

First National Bank, Holly
“ Agricultural conditions in south­
east Prowers County are the best they
have been in several years. Land is
moving quite freely, and mercantile
business is good. P>ank deposits are
higher than for several years, and crop
prospects are very good.

First National Bank of Eagle
County, Eagle

“ Conditions in our territory are very
favorable for a good crop this season.
W e have had a favorable, but little
backward spring, plenty of moisture
and crops are coming in excellent con­
dition.
“ Our farmers had poor results with
their potatoes last season and it has
affected them to some degree. H ow­
ever, most of our farmers have cattle
or sheep, and this along with their oth­
er crops have kept practically all of
them in a liquidable conditions.”
Hooper State Bank, Hooper

“ Agricultural conditions in the San
Luis Valley of Colorado, we should

What Maturities of Bonds
Should Banks Buy?
Should a bank buy:
Only short term bonds?

Only long term bonds?

Both short term and long term bonds?
If so, what proportion should it buy of each?
Should it buy short term bonds at one period and long term
bonds at another?

T h e s e and o th e r
similar questions are dis­
cussed in a brochure pre­
pared by our economist,
D r. Paul M . Atkins, en­
titled; Bank Secondary
Reserves and Investments.
W e shal 1 begl ad tosend any
bank a copy upon request.

Ames,Emerich &Co.
105 South La Salle Street, Chicago
ROBERT G. INGWERSON, Representative
826 City National Bank Bldg., Omaha
New York

Philadelphia

St. Louis

S------------------ ---------------Central Western Banker, July, 1929

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Federal Reserve Bank of St. Louis

Milwaukee

San Francisco

Los Angeles

-------- --------------

say on the whole are in a very satis­
factory and promising condition.
“ While there has been but little rain,
irrigation water has been abundant
and all crops were put in on schedule
time with soil conditions excellent in
the most part.
“ Stands of small grain are uniform­
ly good— the prevalance of high winds
may have in some instances ruined a
portion of the crop, but on the whole
seeding has been satisfactory and the
crop at this time is in good condition.
“ Potato acreage is about as a year
ago, possibly a little less and the crop
at this time is in excellent condition.
“ An abundance of irrigation water
seems assured to properly carry the
crops through.
“ Hay has not done so well. Quite
a little winter killing of alfalfa and
sweet clover the past winter, so possi­
bly the cuttings of tame hay this sea­
son will not equal those of a year ago.
“ Pastures are some later and a little
shorter than a year ago due to the con­
tinued absence of rain.
“ Stock, both sheep and cattle are
in good condition.”
First State Bank, Idalia

“ Crop conditions in Yuma County
are the best for this time of year that
we have seen in the past five years.
Plenty of moisture and crops well ad­
vanced. Wheat and other small grains
about the same acreage as in the past.
Corn on an increased acreage of at
least 25 per cent.
“ Barring a destructive hail or wind
storm, 1929 will see a bumper crop
particularly so in the south half of the
county.”
Byers State Bank, Byers

“ Wheat now about 70 per cent; bar­
ley, 75 per cent; corn, 80 per cent;
pinto beans, 85 per cent. Winter
wheat now needing rain very bad and
is liable to slip very rapidly from now
on if it continues dry.”
Brief reports from a number of oth­
er scattered localities are as follow s:
“ Wheat, oats, rye and barley, 90 per
cent. Corn and pinto beans, 80 per
cent.” Briggsdale.
“ Conditions favorable, but need
rain badly.” First National, Genoa.
“ Crops good. Plenty of irrigating
water.” First National, Buena Vista.
“ Crops need rain badly.” Bennett
State Bank, Bennett.
“ Agricultural outlook is very good.”
Rubey National Bank, Golden.
“ Local conditions very good.” Chey­
enne County State Bank, Cheyenne
Wells.
“ Crop conditions here uniformly
good.” Farmers State Bank, Fort
Morgan.

19

Insurance
ment further, the
rest is up to you.
In conclusion I
w ill cite a true
story of a serv­
ice call that will
em phasize the
foregoing points.
In 1926, I was
given an old pol­
By Frank A* Smiley
icy card to service. The contract was
for $25,000, and had been in force for
Kansas City, Missouri
nine years and proceeds were left in
Equitable L ife of Iow a
a lump sum to the beneficiary. The
ting self, our development is bound to policy holder made the statement that
be along the broader and most produc­ he had $100,000, of life insurance and
tive line of life underwriting.
was not in the market for any. The
A Good Approach
statement was so emphatically made
In a great number of cases, insur­ that I made no attempt to sell him at.
ance written some years ago did not that time. I asked him the question,
provide option of settlement and a if he had $25,000 in the bank not in­
good approach to use on older men vested, would he not be interested in
that you know are carrying policies placing this so that it would be placed
written in the earlier years, could be : on an interest earning basis. He re­
“ Mr. Jones, I represent the Equitable plied that he would. I told him that
Life Insurance Company of Iowa, and in event of anything happening to him
that am ount w ou ld be
placed to the credit of his
11111111111111111111111111 n1111111111111111 ii 111111111111111111111111111111 ii 1111111111111111111111111111111111111111 111 :•a 11111111111111111 n111111111111111 iti1111111111111111111111111111 n1111111111111 n11111111n11
11111111111111111111i.i111■11111111111111111it1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111m1111111111111111111111111111111111>1111111:11111111111111111111111>11111111111111!iii
beneficiary and we could
arrange it with our com­
pany so that this could be
paid monthly and all dur­
“ Service to your prospect or policyholder will bring you
ing the p eriod on any
more quickly to your goal than any other feature. It breeds
money remaining in our
confidence in your prospect or policyholder, as to your ability.
hands a nice rate of inter­
It begets also his confidence in his personal affairs that is
est would be paid.

IN S U R A N C E
p e r io d ic a ls ,
f r o m tim e t o
time, give us val­
uable in fo r m a ­
tion as to sales
methods employ­
ed by ou tstand­
ing u n d e r w r it­
ers, and many of
us have been helped by the plans and
suggestions offered.
Little has been said, however, about
the use of one of the most important
fundamentals of our business, that; of
service to the prospect and to the pol­
icyholder. A man just starting in life
insurance selling will often hear the
world service mentioned but, to my
idea, it is not given the place in our
insurance education that it merits and
I doubt if we appreciate the full value
of what service to the prospect and to
the policyholder will mean to us in
dollars and cents, and to bring home
to us this value is the purpose of
this short article.

erving Your Prospect
AND

PO LICYH O LD ER

Just As Important

i

i

It may be carrying the
idea to an extreme to in­
clude the prospect in ser­
vice offering but if you
are working with the right
kind o f m aterial it b e ­
comes, and is, just as, im­
portant to render service
given only to his nearest friend and when this stage is reached
Placed the Contract
to a good prospect as it is
you are in on the ground floor in the building and directing of
T was able to place his
to give service to a policy­
his insurance estate.”
contract then, on a month­
holder.
11111111111111111:11111111n1111:1111111111111111111111111111111111111111111111111111111111111111111111111111111111111ii 11111111111i 11111111111111111111111111111111111111111111 111111111111111111111111111111111111m1111
ly payment plan to his
Service to your prospect
111111111111111111111111■1111111111111IIIH
1111<;111111111111111111111111111111111111111111111111111111111111111111‘11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111(11
beneficiary and fo r this
or policyholder will bring
service I received his most
you more quickly to your
goal than will any other one feature. have called, not to sell you any life heartv thanks. In making this change
It breeds confidence in your prospect insurance but to talk about the insur­ for him, necessarily, I learned some­
or policyholder, as to your ability. It ance estate you already have. I would thing of his affairs and made up my
begets also his confidence in his per­ like to explain to you how it can be mind to keep his card in my files, even
sonal affairs that is given only to his conserved and projected over a period. in the face of his assertion that his
nearest friend and when this stage is It is possible, in many cases, to in­ insurance estate was definitely closed.
reached, you are in on the ground crease its efficiency 25 per cent,” and, I called to see him several times with­
floor in the building and directing of of course, to this approach may be out exerting much sales effort. In
added the explanation of analysis and Mav of 1928, out of a clear sky, came
his insurance estate.
a telephone message that he wanted
Service to your prospect and policy­ programming.
In some instances this approach me to write him $200,000, to protect a
holder is also a stimulant to yourself.
W e always feel better when we know may cause the prospect to feel that if loan. He was able to pass the exami­
we have done something to help the he allows you to do this, he will be nation and this, together with an ad­
other fellow and it necessarily follows under obligations, to you to buy addi­ ditional $75,000, was delivered to him ;
that our mental attitude will be bene- tional * insurance. So the program and through his circle of influence
fitted, for in following out the full type of approach must carry with it came another $350,000. Much more
meaning of the word service in our a sincere and apparent desire to really business is in prospect from contacts
business and giving our prospect the help your prospect in adjusting his in­ made while this business was being
result of our knowledge on analysis, surance estate without any thoughts written, and it all can be credited to
programming, and conserving his pres­ whatsoever, as to what it will return “ service to the prospect and to the
ent insurance estate or any addition to you in the matter of commissions; policyholder.”
that may be made to it, we have con­ and if we can bring ourselves to this
Report on Omaha
ferred a real favor on him. So let us attitude, the prospect, in many cases,
not forget, to my idea, the greatest will bring out his insurance contracts
The engineers of the National
outstanding feature in our business.
and place them in your hands on the Board in reporting on Omaha found
I f we render intelligent service to first interview and when this has tak­ the gross fire loss for five years
our prospect and policyholders, forget- en place, it is needless for me to com­ amounting to $5,031,797. The aver-


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Federal Reserve Bank of St. Louis

What Service Does

li

Ccntral Western Banker, July, 1929

20
age loss per fire was $422 and the av­
erage loss per capita was $4.72. The
engineers say that the water supply is
not liable to serious interruption. A d­
equate quantities are available in the
congested value district at pressure
suitable for engine supply. In other
districts quantities rang from poor to
good. The fire department is under­
manned and generally poorly equipped
and trained. The fire alarm telegraph
system is very inadequate.
Plan Omaha Insurance Exchange

Negotiations are being completed in
Chicago by Robert H. Garrett, presi­
dent of Benson & Garrett, realtors,
for erection of an Insurance Exchange
building at the northwest corner of

SHORT

TERM

Eighteenth and Howard streets. The
project, including ground, will repres­
ent an investment of nearly $1,200,(XX). The building itself will cost ap­
proximately $9,000. The building will
be seven stories high with a central
tower of 12 stories.
Nebraska Blue Goose Field Day

The Nebraska Blue Goose held a
field day June 28 at the Happy Hollow
Club, Omaha. Officers of the pond
promised a day filled with contests and
entertainment, starting in the morn­
ing with a golf match, in which the
“ chuckers” were promised the same
chance as the “ good golfers.” There
was a luncheon at noon and in the af­
ternoon a driving contest and other

INVESTMENTS

T

FOR

BANKS

he OBLIGATIONS

of

G M A C possess a degree of invest­
ment strength nationally recognized
by a clientele of over seven thousand
banks.

G M A C paper is obtain­

able in convenient maturities and
denominations at current
discount rates.
Our offering list will be mailed regularly upon request

G
A

eneral

C

cceptance
O F F I C E S

IN

M

otors

o r p o r a t io n

P R I N C I P A L

C I T I E S

Executive Office - Broadway at 57 th Street - New Yor\ City

CAPITAL,

SURPLUS
OVER

AND

UNDIVIDED

PROFITS

$65,000,000

............................................................................................................ ...
Central Western Banker, July, 1929

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

contests, as well as swimming. A big
dinner and dance were arranged for
the evening.
Complete Interrogatories

The fire insurance companies inter­
ested in the Kansas rate litigation have
completed the set of interrogatories to
be used in compiling the evidence in
thé case in the federal courts. Judge
J. C. Egan, special assistant attorneygeneral in charge of the) litigation for
the state is now drafting the set of
cross-interrogatories to be submitted
by the state.
School Ranks High

Students of the Vermilion high
school hold a percentage of 93.9 in
banking and as a result rank first of
any high school in South Dakota for
the month of May, according to D. B.
Heller, superintendent of schools.
Mitchell is second with an average
of 93.5 and Aberdeen is third with an
average of 82.
The school banked 100 percent dur­
ing the month of May last year. The
school this year has maintained an
average well above 90 percent.
Attend Convention

M. J. Chaney, president of the Citi­
zens Bank & Trust Company; M. L.
Thompson, president of the First Na­
tional Bank ; T. N. Hayter, cashier of
the First National Bank, and George
K. Brosius, cashier of the Vermilion
National Bank attended the state con­
vention of the South Dakota Bankers’
Association.
Enter Holding Company

Three banks in Aberdeen, S. D., the
First National bank, Dakota National
bank and Citizens Trust & Savings
bank, have been consolidated as the
First National bank and the merged
institution has become affiiliated with
the Northwest Bancorporation, the
the holding company headed by the
Northwestern National bank of Min­
neapolis. This move is the result of
negotiations that have been in prog­
ress for several weeks, E. W . Decker,
president of the Bancorporation and
of the Northwestern National bank,
said recently.
The consolidated institution will
continue under the management of ex­
ecutives of the First National bank of
Aberdeen, with the addition of two
officials of the other banks. These
are Ed. A. Porter, cashier of the Da­
kota National bank, and D. H. Lightner, president of the Citizens Trust &
Savings bank, who become vice presi­
dent of the marged bank. The officers
will be: F. B. Gannon, chairman of

21
the board; F. H. Gannon, president;
F. G. Suttle, J. H. Jackson, Ed. A.
Porter and D. H. Lightner, vice presi­
dents; J. H. Suttle, cashier; J. E.
Koch and A. Seversen, assistant cash­
iers.
The combined institution will have
deposits of around $3,500,000 and, re­
sources of well above that figure. The
First National bank was established in
1883, the Citizens Trust & Savings
bank in 1906 and the Dakota National
bank in 1907. The other two of the
five banks in Aberdeen, the Aberdeen
National bank and its affiliated First
State Savings bank, were purchased
last month by the First Bank Stock In­
vestment Co., controlled by the First
National banks in Minneapolis and St.
Paul.
!

Appoints Three Vice-Presidents

T w enty-five years ago, John Y.
Robbins entered the employ of The
Equitable Trust Company as an office
boy. Today he is a vice president of

the same company. From 1908 to
January of 1929 Mr. Robbins was as­
sociated with The Equitable’s Trust
department, receiving the appointment
of Assistant Vice President in 1925.

Change Approved

At a special meeting of the stock­
holders of the Union Savings associa­
tion held at its office in Sioux Falls,
South! Dakota, the stockholders au­
thorized and approved the change
from the Union Savings Association to
Union Savings Bank.
The Union Savings Association was
organized in 1894 and since that time
has conducted'a strictly savings busi­
ness. The Union Savings Bank will
continue to occupy the same quarters
used by the Union Savings Association
and will continue the business of the
Union Savings Association, receiving
only savings deposits and investing
such deposits with its capital and sur­
plus, with the exception of its legal re­
serve requirements, in first mortgage
real estate loans, government, state
and municipal bonds and securities of
this character. It will receive no
checking or commercial accounts and
make no commercial loans. The Union
Savings Bank will have a paid in capi­
tal and surplus of $300,000.00 and in­
itial , savings deposits in excess of one
million dollars.
J. C. Vandagrift who has been asso­
ciated with the institution since 1913
will continue as president of the Union
Savings Bank. In addition to Mr.
Vandagrift the officers of the bank
will be M. W . Sheafe, vice president,
Wm. C. Duffy, vice president, H. G.
Hodgins, cashier, and H. O. Engen,
assistant cashier. The directors will
be, J. C. Vandagrift, Congressman C.
A. Christopherson, General M. W.
Sheafe, A. K. Pay, M. B. Hoffman,
H. A. Hurd, j. W . Horner, Roy E.
Willy, F. D. Burke, Wm. C. Duffy and
H. G. Hodgins. These include pres­
ent members of the board of directors
of the Union Sayings Association.


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Federal Reserve Bank of St. Louis

Central Western Banker, July, 1929

22
He is now in charge of the company’s
Domestic Branch department.
John J. Grseber, Jr., was with the
old Bowling Green Trust Company in
1969 when it was merged into The
Equitable. Mr. Graeber was taken over
as a quick asset and for the next six
years worked in every division of the
hank with the exception of the For­
eign Department. In 1915 he was as­
signed to the Trust Department and
under J. N. Babcock, Vice President
of the company and well known au­
thority on Personal Trusts, received
the best possible training. In 1918
Mr. Graeber was made an Assistant

Secretary and assumed direction of
certain divisions of the company’s
trust service. Last January he was
appointed as Assistant Vice President.
Harold A. Rich came to The Equit­
able in 1919 from the Chase National
Bank where he was a member of the
Credit Department. He was made an
Assistant Treasurer of The Equitable
Trust Company in 1922 and in 1925
was assigned to the bank’s 45th Street
office following an appointment as As­
sistant Vice President.
George M. Stoll, another of The
Equitable’s twenty-five year men, has
worked in many of the company’s de­

partments, and helped organize the
bank’s present credit department.
With his specialized knowledge of
credit work and general banking back­
ground, Mr. Stoll was a logical branch
office executive. He was a member of
the original staff of the company’s
28th Street office, first with the title
of Assistant Secretary, then Manager,
and now Assistant Vice President.
Banks Consolidate

The Dupree State bank and the
Farmers State bank, Dupree, South
Dakota, have been consolidated under
one organization, the Farmers State
bank taking over the business of the
Dupree State bank.

CALIFORNIA
GROWS CLOSER
to the REST of
the COUNTRY

7 E ATTACH an import^ -

ance to the business of

out-of-town banks, to which
we feel it is entitled.

This is

accomplished by giving to it
the careful, experienced at­
tention of an officer.

A IR MAIL and air passenger service, faster train service, improved
transit service through the Federal
Reserve System, a great movement o f
population here from all over the At­
lantic and Middle Western States—
all these have made Southern Cal­
ifornia closer, more familiar and more
important to the rest o f the United
States.

X
B
S ECURITY-F
Los A

ir ST
atioaal a n k
of
ng eles

Resources over 6oo million dollars

THE N O R TH ER N
TRUST COM PANY
Northwest Corner LaSalle and Monroe Streets

CHICAGO

The great regional bank o f the south­
ern part o f California, with a branch
system in principal cities from Fresno
and San Luis Obispo south to the
Mexican boundary.
2 4

- H O U R T R A N S ¡ 1 SER VICE with

speeded-up communications over the
Bank’s system.

The Logical Southern California
Banking Connection.

Central Western Banker, July, 1929

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Federal Reserve Bank of St. Louis

23
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receiverships, a work formerly under
the direction of G. R. Buckner.

PH IL H A L L . President
Nebraska Bankers A ssociation

D EN M AN K OU N TZE, vice presi­
dent of the First National Bank of
Omaha, has been elected treasurer of
the Omaha Chamber of Commerce.
Mr. Kountze recently led a team of
Chamber of Commerce members in a
campaign for new members, and his
team was first in net gain. During
the campaign he became the father of
a son.

it was founded in 1915, sold their
holdings in the bank and will devote
their time to their bank in Omaha, the
Union State Bank. J. A. Proskovec,
head of the Farmers and Merchants
Bank, Bruno, for some 16 years, be­
comes cashier and a director of the
Brainard State Bank. The other offi­
cers and directors are Joseph Rerucha,
Sr., president; C. J. Davis, vice presi­
dent; J. E. Prai, assistant cashier; F.
C. Semin and Ray M. Rerucha.
Is Made Cashier

TH E C O N T IN E N T A L STA TE
bank of Lincoln has reopened as a
national bank, after having been con­
ducted for years as a state bank.
W M . B. H U G H ES, Secretary
Nebraska Bankers A ssociation

FRED TH O M A S, vice president
of the First National bank of Omaha,
and Gwyer Yates, vice president of
the United States National bank of
Omaha, returned in mid-June from a
three-day cruise by reserve city bank­
ers on the Great Lakes. Sessions
were held on the boat, between De­
troit and Mackinac.

TH E ST A T E B AN K OF SU R­
PRISE, Neb., which was taken over
by the banking department March 11,
and placed in the hands of the guaran­
ty fund commission, reopened for
business recently.

T. G. BOGGS of the Stock Yards
National bank of Omaha is the new
president of the Omaha chapter of the
National Conference of Bank Audi­
tors and Controllers. The election
was held at a meeting at the Chief­
tain hotel, Council Bluffs, la., when
L.
J. DUNN A N D FLO Y D SEYthree
other officers were named: E.
BOLD T of Lincoln, Neb., late in
H. Spetman, Council Bluffs National
June concluded negotiations whereby
Mr. Dunn purchased Mr. Seyboldt’s Bank of Council Bluffs, second vice
president; T. N. Gloyer, Peters Na­
stock in the Normal State bank at
tional bank, Omaha, secretary; and
Normal, Neb. The bank is capital­
ized at 15 thousand dollars and has de­ N. L. Sholin, United States National
posits of 60 thousand dollars. Mr. Bank of Omaha, treasurer.
Dunn did not announce his plans for
the bank.

TH E C ITY STA TE B AN K of
Sutton, Neb., which closed April 1,
B.
F. H A STIN G S, president of 1929, reopened June 3, with these new
the defunct Commercial Bank of officers: B. G. Kearney, president;
Grant, Neb., has given a warranty W. D. Matteson, vice president; Phil­
deed for two tracts of land valued at ip M. Lewis, acting cashier. The Sut­
$46,900, for the payment of losses of ton State bank was recently closed,
the bank. This is said to the first and for a week the community was
time in the history of bank receiver­ without a bank.
ships in Nebraska that such a gift has
TOM MLTRPHY, vice president of
been made. Residents of Grant and
the
United States National bank of
depositors and stockholders expect to
reorganize the bank and reopen it, af­ Omaha, who has been ill with neuritis
ter a period of a year, but Mr. Hast­ and spent five weeks at Mineral Wells,
ings will not be interested in the re­ Texas, returned to his desk, greatly
improved in health, June 17.
organization.
Change at Brainard

C.
M. SK ILLS, former attorney for
A change in the ownership and
the guaranty fund commission of Ne­
braska, and I. D. Beynon, his legal management of the Brainard, Nebras­
assistant, have been retained in the ka State Bank was made recently,
service of the state department of when Horacek Brothers, who had
trade and commerce. Both will handle owned and controlled the bank since


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Federal Reserve Bank of St. Louis

Harlan D. Wells, well known west
Nebraska banker, has been made cash­
ier of the First National bank of A l­
liance. He succeeds Fred L. Pelton,
who resigned to accept the cashiership
of the Stockyards National bank at
Fort Worth, Tex.
Cashier at Lewiston

W. W. Joekel has accepted the posi­
tion of cashier of the Bank of Lewis­
ton, Nebraska. He will succeed D.
B. Richardson, brother of T. R. Rich­
ardson, president of the bank.
Consolidate

The merger of the Crete State and
the First State banks of Crete, Ne­
braska, was affected recently, accord­
ing to announcements made by J. E.
Sperry, president of the consolidated
banks. The name of the new institu­
tion will be the Crete State bank and
the business will be transacted in the
quarters of the old First State bank.
Besides Mr. Sperry other officers of
the new Crete State bank are : Charles
Lucki, vice president ; L. H. Westerhoff, cashier, and A. L. Pospisil, as­
sistant cashier. Mr. Sperry has been
president of the First State bank since
last October, coming from Gresham,
where he was with the First National
bank. Mr. Lucki has been cashier of
the First bank. Mr. Westerhoff and
Mr. Pospisil have been with the Crete
State in the same positions they hold
with the new bank.
W . S. Collett and Thomas J. Aron,
the president and assistant cashier of
the Crete State bank, are to retire.
Heads Bankers Group

Bob Clarke, cashier of the Banking
House of A. W. Clark, Papillion, Ne­
braska, was honored at the SarpyDouglas group meeting of bankers
held in Waterloo recently by being
elected president of the association.
Central Western Banker, July, 1929

24
George Hedlund of Washington was
elected vice president, and Bob Hall
of Millard secretary-treasurer.
Clarence G. Bliss, secretary of the
state department of trade and com­
merce, was present and explained ful­
ly the workings of the new law affect­
ing failed state banks.
Forty-five members of the banking
fraternity were present and were en­
tertained by the bankers of Waterloo,
Valley and Elkhorn.

Reopen Bank

The Mason City, Nebraska, Bank­
ing Company reopened recently.
The bank re-opened with a capital
stock of $25,000. Officers are E. G.
Burrows, president, and H. L. Lang,
cashier.
After-Hour Deposits

All of the downtown banks in South
Omaha including the Live Stock Na­

The

Continental National Bank

tional, Packers National and South
Omaha State, are installing after busi­
ness hours depositories to be available
to the public 24 hours daily including
Sundays and holidays.
These depositories consist of a door
slit and chute which carries the deposit
to a protected safe, the contents of
which is fully covered by insurance.
In this way a depositor need not wait
until morning to make the deposit as
is necessary in most lines of business
at the present time.
Cash, checks, valuable papers, etc.,
may be deposited in any chute whether
or not the depositor is a customer of
the particular bank in which he makes
the deposit, for it will be claimed, if
the deposit is properly marked, by the
depositor’s own bank the next morn­
ing.

LINCOLN, NEBRASKA
Elected Cashier

“A Bankfor 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.

■
■
|

We 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 irm a n o f th e B oa rd .
E D W IN N. V A N H O R N E , P r e s id e n t
W . S. B A T T E Y , A sst. 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. JOH NSON, A sst. 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 sst. C ash ier.

i

Merged

helpful...
O

UTSTANDING among the in­
stitutions cooperating with Nebraska
banks and through them with their
customers, is the National Bank of
Commerce, a helpful, friendly bank,
anxious to extend its helpful service
to you.

;

National Bank of Commerce
LIN C O LN
OFFICERS
M.

W e il ,

President

C arl

W e il ,

Central Western Banker, July, 1929

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

Vice-President

B yron

D unn,

Cashier

James R. Dougan, vice president of
the Lincoln, Nebraska, National bank,
was elected cashier and secretary of
the board of that institution at a meet­
ing of the board recently. Mr. Dou­
gan succeeds George W. Woods, who
resigned to become state banking com­
missioner. Mr. Dougan will retain
the vice presidency.
Dr. W. C. Becker was appointed to
the board of directors to fill the va­
cancy caused by Mr. W oods’ resigna­
tion. H. E. Leninberger, head teller,
was promoted to the position of as­
sistant cashier at the meeting.

One of Nebraska’s oldest banks, the
Farmers’ State of Chester, chartered
in 1886, was merged recently with the
Chester State bank, Clarence Bliss,
trade and commerce department secre­
tary, announced.
The merger, he stated, was in ac­
cordance with the banking depart­
ment’s policy of consolidating institu­
tions in smaller towns.
In the merger the new institution,
to be known as the Chester State bank,
will have 30,000 capital and $6,000
surplus.
All of the officers of the old institu­
tion have retired and the new bank
will be headed by A. Richards as pres­
ident, and W . H. Kuhlmann as cash­
ier.
The banking department also an­
nounced the purchase by the State
bank of Hastings of the Farmers’
State bank of Ayr, which had been
in operation since 1912.
The transaction includes absorption
of $85,000 worth of deposits in the
Ayr bank and the purchase of all of
the assets of that institution.
The sale leaves Ayr without a bank.

25
Elect Officers

In Good Condition

The new stockholders of the Cit­
izens State bank of Ainsworth, Ne­
braska elected their new directors and
officers recently.
The directors elected were Jos. Stejskal, C. M. Wolcott, R. M. Herre, J.
F. Bejot and J. L. Zweible. J. H.
Davison was elected but declined to
serve.
The new directors organized and
elected the following officers: C. M.
Wolcott, president; J. F. Bejot, vice
president; R. M. Herre, cashier.

Old Man Gloom finds nothing to
console himself in the statement made
by John A. Reed, Wyoming bank ex­
aminer, to the department of Com­
merce and Industry in presenting a
summary of the condition of state
banks and trust companies of W yo­
ming compiled from the figures obtain­
ed from a recent call.
The sixty-two banking concerns
coming under the supervision of his
office reflected aggregate assets of
$31,812,801.51, an increase of more
than eleven per cent at the nearest cor­
responding date of a year ago. The
increase of $3,314,995.45 consists

Celebrates Birthday

Frederick H. Davis, the president
of the First National Bank of Omaha,
celebrated his seventy-sixth birthday
Monday, June 10, and his celebration
consisted of attending to his usual du-

largely of deposits amounting to $2,298,596.78 or more than $10' per capi­
ta of the state’s population.
The report of the state banks shows
a customer loan increase of $1,875,186.88 while the increase in bonds
and warrants alone amounts to $1,052,595.04 which together with an in­
crease in cash reserves amounting to
$338,201.67, or 21 per cent net, re­
flects a very healthy condition follow­
ing the winter season when the de­
mands upon the banks have been most
heavy.
The 25 National banks of the state
have run parallel to the state banks
in keeping up the reserve ratio which

COMPLETE DEPENDABLE
FINANCIAL, INVESTMENT
AND TRUST SERVICE

The First National Bank
AND

TheFirst Trust Company
OF LINCOLN, N E B R A S K A

F. H.

D a v is

ties at the bank. Mr. Davis is in ex­
cellent health. The evening of his
birthday a party was held in his honor
at the home of his son, Thomas L.
Davis, the vice president of the First
National Bank.
Cashier Resigns

At a recent directors’ meeting of
the Park County bank, Powell, W yo­
ming, the resignation of W . S. Per­
rin was accepted. Mr. Perrin is
planning to move from Powell to take
up his residence at Las Vegas, New
Mexico, where he will engage in the
insurance business.
In the place of Mr. Perrin, Gerald
Williams, who has been serving as
assistant cashier, will be raised to the
cashier vacancy.


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Federal Reserve Bank of St. Louis

DE

National B an k
'•Trust Company
O M A H A

‘An Unbroken Record of Seventy Years
is a Guarantee of Safe and
Satisfactory Service”

OFFICERS:
M . T. B a r l o w , President o f the Board

R. P. M o r s m a n , President
G. H . Y a t e s , Vice-President
J. C. M c C l u r e , Vice-President
T. F. M u r p h y , Vice-President
C. F. B r i n k m a n , A ss’ t V.-President
P . B . H e n d r ic k s , A ss’ t Vice-President

R . R . R a i n e y , Cashier
H . E. R ogers , Assistant Cashier
E. E. L a n d s t r o m , Assistant Cashier
A. L. V ic k e r y , Assistant Cashier
V . B. C a l d w e l l , Assistant Cashier

Central Western Banker, .Tidy, 1929

26

OUR

B A N K IN G

M A IN

FLOOR

O FFIC ER S
FORD E. HO VEY, President
JA S . B. OWEN, Vice-Pres.
F. J. ENERSO N , Vice-Pres.
W. H. D R E SSLE R , Cashier
L. K. MOORE, Asst, to Pres.
H. C. M ILLER , Asst. Cash.
C. L. OWEN, Asst. Cash.
H E N R Y A. H O VEY, Asst. Cash.
T. G. BOGGS, Auditor

ROOM
RIGHT

W

OULD you accept the services
of 50 people to represent you and

protect your interests, if they were o f­
fered to you without charge.
A connection with the Stock Yards
National means precisely that.

combined with the state banks de­
velops 21.4 per cent, more than twice
the amount required by law on sav­
ings deposits and above the amount
necessary on demand deposits.
The total National bank assets
shown by this call amount to $42,819,588.84 which with the state banks
and trust companies gives Wyoming a
combined banking asset of $74,591,335.71
A Great Time Saver

The combine has proved a boon to
the wheat belt banker, in the view of
many who have had considerable ex­
perience, with this new power develop­
ment in wheat farming.
A great saving is possible by the
use of the combine. The Gleaner Com­
bine Harvester Corporation of In­
dependence, Mo., one of the larger
manufacturers of combines, has as­
sembled statistics which give a real
glimpse into the possibilities of this
machine.
From actual figures supplied by
hundreds of farmers, the company has
determined the average cost of har­
vesting and threshing a bushel of
wheat with combines in 1928, was 2.4
cents not counting depreciation, taxes
or interest charges. In a single county
in Nebraska— Keith County the aver­
age cost per acre was 37 cents. Much
of the wheat made from 15 to 25
bushels to the acre.
To the banker, such a saving means
more rapid liquidation of farm loans,
quicker and easier recovery from the
farm slump, and more money to go
into general business channels.
Serious for Him

Doctor: “ Your wife suffers from
insomnia? Are there any serious con­
sequences ?”
Visitor: “ Yes. When I come home
late she is always awake.”
Profitable Authorship

Stock Yards National Bank
of
South Omaha

H e : “ Is your brother, the author,
still writing for money?”
She: “ Yes, but papa never an­
swers him now.”
COLORADO N E W S
Delta

“ Crop conditions in Delta County
quite favorable. Peach crop light,
and apples normal. Sugar beets, hay,
grain, onions and potatoes look good.”
Kit Carson State Bank, Kit Carson

The Only Bank in the Union Stock Yards

Central Western Banker, July, 1929

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

“ Conditions here are normal. Crops
are progressing nicely. Very good
stand of corn. Grazing splendid.
Cattle are in fine condition, with lots
of fat cattle to be sold this fall.”

27

News of the

Second in Hog Production
Nebraska is the second surplus hog
producing state, according to statistics
just compiled by A. E. Anderson, state
and federal agricultural statistical!.
The state marketed an average of 5,209.000 hogs per year since 1924
above farm and local town slaughter,
which brings the total production to
$5,700,000 a year. The industry con­
tributes 39 per cent of the income
from live stock and its products and
27 per cent of the income from crops
and live stocks. Iowa leads all states
and Illinois is third.
During the 10-year period, 1914-23,
Nebraska ranked fourth. Since that
time, the state has averaged second in
number of hogs marketed. Plenty of
corn and alfalfa together with a skim
milk supply that has increased 72 per
cent since 1920 are partly responsible
for Nebraska’s marked advance in hog
production.
The great bulk of the surplus pork
production comes from the corn belt
states. Four-year average market re­
ceipts of hogs, above local farm and
town slaughter in order of rank by
states are as follows: Iowa, 11,654,000; Nebraska, 5,209,000; Illinois, 4,949,009; Minnesota, 4,526,000; Mis­
souri, 4,188,000; Indiana, 2,982,000;
South Dakota, 2.722.000; Kansas, 2,295,000; Ohio, 1,965.000; Wisconsin,
1.939,000; North Dakota, 749,000, and
Michigan. 726,000 head.
Sales of hogs brought Nebraska
farmers $107,507,000 for the year
ending lime 30„ 1928, which is 34 per
cent of the gross income from the
sales of all live stock and its products,
and nearly 23 per cent of the total in­
come from both crops and b've stock
and its products. During the past
eight years, the gross income from
hogs has varied from $74,566,000 to
$135,419,000, the average being $106 385.000 per year.

Four-H Premium List
The largest amount ever offered by
any state fair in North America, a


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

Omaha
4•’f f i M M

total of $14,349.50 in premiums will
go to boys’ and girls’ clubs at the Iowa
State fair August 21 to 30.
New features are included in the
offerings this year, such as a special
dairy heifer department with premium
of $700, and a boys’ and girls’ colt
club contest.
Grain Storage

Nebraska has farm storage capacity
for 143,329,000 bushels of small grain,
according to figures gathered by the
State Division of Agricultural Statis­
tics through the assessors last year.
Permanent corn storage capacity totals
97,594,000 bushels.
Nebraska has sufficient permanent
small grain storage capacity to store
the average production of small grain
crops. The total small grain capacity
last year was 143,329,000 bushels. The
five-year average production of winter
wheat, spring wheat, oats, barley and
rye is 134,636.000 bushels.
The distribution of farm grain stor­
age is not in proportion to production
which accounts for shortages in some
counties. Heavy production also taxes
the present capacity so that certain
counties are short, which in the aver­
age year would have sufficient storage.
This is particularly the case in western
counties.
Farms are not so well supplied with
permanent corn storage. The corn
storage capacity last vear was 97,594,000 bushels. The five -vear average
production is 214,381.000 bushels.
Heavy feeding of corn begins as soon
as corn is mature and even before that,
so the corn storage situation is better
than the figures would indicate. Large
quantities are stored outside but most­
ly during the winter months so the in­
jury is not as great. As a rule most
of the corn stored outside is disposed
of before the spring rains.
The total permanent potato storage
capacity in commercial potato counties
is 2,030,000 bushels. The five -year
average production of commercial po­
tatoes is 3,554,000 bushels. The pres­

Stock Yards

ent storage is very inadequate, par­
ticularly in the years of heavy produc­
tion.
Cattle Bloat

The increase of cattle bloat in Iowa
is due to the luxuriant growth of clo­
ver which has been produced by the
unusually favorable growing weather
of last spring, according to Dr. Peter
Malcolm, chief of the animal industry
division of the Iowa department of ag­
riculture.
“ Sweet clover has produced more
complaints than other types of le­
gumes but alfalfa and common red
clover has not been entirely exempt,”
Doctor Malcolm said.
“ If cattle are not turned upon clo­
ver while it is wet, either from dew or
ra;n. it will be less apt to produce bloat
than where cattle are allowed to pas­
ture it at all times of the day. Feed­
ing the cows some dry roughage in
the mornings and watering them be­
fore turning them on pasture, will also
serve as an aid in preventing trouble,”
he said.
Platte Valley Crop Outlook

Crop prospects in the Platte valley
are favorable on the whole, according
to D. W . “ Billy” Hill, well known
Scottsbluff stockman, who was in
Omaha recently to look over market
conditions.
“ The first cutting of alfalfa is up in
fine shape and it was a good one,”
Mr. Hill said. “ Beets are a little beh;nd but they have been growing fast
lately, and while we could use a little
more rain nothing is suffering for it.
The small grain outlook is excellent.
"Cattle are beginning to look a lit­
tle scarce. All but one or two of the
big feeders are either cleaned up or
will finish shipping this week.”
Touch Artist

Janet: Jack says that he can read
you like a book.
Olive: Yes, and darn him, he
wants to use the Braille system.
Central Western Banker, July, 1929

28
Jubilee and Stock Show
Ford E. Hovey and Peter Hamilton
Any slight remaining question re­ were appointed as the eighth and ninth
garding the holding of the second Ak- members of the finance committee reSar-Ben Live Stock and Horse Show
in Omaha, Nebraska, this fall was just
about wiped out recently when two of
Omaha’s foremost civic organizations,
namely the Greater Omaha association
and Ak-Sar-Ben itself, put definitely
into operation the plan of holding both
the state Diamond Jubilee and the
stock show during the first week of
November. Dates for the show are
those originally chosen, November 1
to 8, while the jubilee remains a threeday event.
But one thing remains to be done to
insure the two events. That is the
subscription by Omaha interests of a
joint $100,000 fund, and the voluntary
offers of support already made by
firms and individuals indicate that
the sum will be raised.
J.
E. Davidson, general chairman of
the committee on finance for the two
events, announced after a meeting of
the Ak-Sar-Ben board of governors
recently that the campaign will begin
as soon as an organization can be com­
F o r d E. H o v e y
pleted. Definite plans for the show
and jubilee will not be announced, of cently. They with W. H. Schellberg,
course, until after the drive for funds will represent the live stock show com­
is completed.
mittee.

Your Bank’s Secondary Reserve
(Continued from Page 8)

as there should be for every service
rendered.
Bank Acceptances

Bank acceptances are a good sec­
ondary reserve investment, but do not
yield as high a rate as good Commer­
cial Paper, and are not as well known
as other investments in these Western
States.
If you carry some Liberty Bonds
}mu do not need to carry as large a
cash reserve.
High-grade bonds furnish a good
investment only for such funds as can
be held for a long time and which will
not be called for by the depositors, or
needed to loan to them at the “ peak”
of the next borrowing season.
Bonds, as you know, fluctuate in
price and it seems are the lowest when
you need your money the worst.
Bonds once acquired should be stud­
ied, statements secured and earnings
of the companies watched.
A commission is paid for both buy­
ing and selling by the bank to the
broker.
The much talked of Call Loans oc­
cupy a part of our secondary reserve
and if the banks use the right propor­
tion invested in Call Loans — when

The Banker’s Confidential Market
J A A — O n ly b a n k in s o u th w e s te r n M is s o u r i t o w n a b o u t 500
p o p u la tio n .- Gas, e le c t r ic it y , c it y w a te r , g o o d s c h o o ls , th r e e
P r o t e s t a n t ch u rc h e s . S a la r y $2,160.00, v e r y g o o d “ sid e lin e s ,”
a t t r a c t iv e e a r n in g s on s to ck . R e q u ir e s $11,500.00 in v e stm e n t.
W H B — C ash iers'h ip o n ly b a n k g o o d e a ste r n K a n s a s t o w n 600
p o p u la tio n .
G o o d t e r r it o r y , s p le n d id r a t io o f d e p o s its to
c a p ita l a n d g o o d e a r n in g p o w e r. P r e s id e n t an d c a s h ie r b o th
a c tiv e , g o “ fi f t y - f if t y ” on r e s p o n s ib ilit ie s a n d in co m e .
Side
lin e s e s p e c ia lly w e ll d e v e lo p e d . C a s h ie r ’ s in c o m e fr o m s a l­
a r y an d sid e lin e s la s t y e a r $4,100.00. T h is y e a r p r o m is e s to
be as g o o d o r b e tte r . G o o d b a n k e r s ca n s e c u r e th is p o s i­
tio n t h r o u g h p u r c h a s e o f 37 sh a re s a t $200.00 p er sh are.
HI5D— S p le n d id o p e n in g fo r t w o m en, n o r th e r n O k la h o m a
c it y o f o v e r t w o th o u s a n d p o p u la tio n , n o t o v e r b a n k e d . G o o d
s a la r y an d e a r n in g p o w e r.
S to c k r e a s o n a b ly p rice d .
R e­
q u ire s $35,500.00.
E B E — C o n t r o l c a r r y in g p r e s id e n c y o f o n ly b a n k in g o o d
s o u th w e s te r n I o w a t o w n o f a r o u n d 600 p e o p le o ffe r e d fo r
a b o u t $20,000.00. B a n k s h o w s g o o d e a r n in g p o w e r.
S a la ry
an d s i d e 'l i n e e a r n in g s a b o u t $2,800.00 p e r y ea r.
BM B— C a sh ie rs h ip o f sm a ll b a n k , a t t r a c t iv e ly lo c a t e d in
su b u r b o f g o o d , sm a ll c ity , h a v in g a ll m o d e r n c o n v e n ie n c e s .
S a la r y $200.00. R e q u ir e s in v e s tm e n t o f $4,500.00.
H G A — L e a d in g b a n k , w e s t e r n M is s o u r i c o u n t y se a t t o w n d e ­
s ir e s to s e c u r e c a s h ie r w h o h a s th e a b ilit y n e c e s s a r y to s u c ­
c e e d p r e s id e n t in a fe w y e a r s.
B a n k ’s d e p o s its w e ll o v e r
h a lf-m illio n m a rk . R e q u ir e s in v e s tm e n t o f $21,500.00.
TPB— C a sh ie rsh ip : o f g o o d b a n k , m o d e rn , c o u n t y se a t to w n
o f m o re th a n 3,000 p o p u la t io n can be ha d b y a c c e p t a b le
b a n k e r t h r o u g h in v e s tm e n t o f $17,500.00. S a la r y $200.00 p er
m on th . K a n s a s L o c a t io n w it h sp le n d id fu tu re .
M RA— C o n t r o l o n ly b a n k , g o o d , s m a ll w e s t e r n M is s o u r i
to w n , o ffe r e d a p p r o x im a t e ly “ in v o ic e v a lu e .” U n u s u a lly
l a r g e r a t io o f d e p o s its to in v e s te d c a p ita l, h e n ce fin e e a r n ­
in g s an d g o o d sa la rie s . C a sh ie r r e c e iv e s $200.00 sa la ry . W e ll
d e v e lo p e d “ sid e lin e s ” an d d iv id e n d s g r e a t ly in c r e a s e th is
in co m e .
R e q u ir e s in v e s tm e n t $22,500.00. L a r g e “ u n d iv id e d
p r o fits ” sh o u ld be d istr ib u te d .
M B R — O n ly b a n k , g o o d n o r th A r k a n s a s t o w n o f 1,000 p o p u ­
la tio n . G o o d s c h o o ls an d c h u r c h e s an d c o n s id e r a b le in d u s F or Further D ata

On These

tr ia l p a y ro ll. B a n k h a s $25,000 c a p ita l, u n u s u a lly “ s t r o n g ”
b o a r d o f d ir e c to r s , an d e a r n e d 20% la s t y e a r .
125 to 165
sh a re s o ffe re d a t $155-—p r a c t ic a lly “ in v o ic e v a lu e .”
C on­
s e r v a t iv e b a n k e r c a n be s u b s t a n t ia lly “ fin a n c e d ” on th is
p u rch a se.
W P A — $11,250 s e c u r e s 75 sh a re s o u t o f 350, c o n s e r v a t iv e ly
m a n a g e d b a n k in W e s te r n M is s o u r i t o w n o f 700 to 800
p o p u la tio n . C a r r ie s m a n a g in g p o s itio n a t s a la r y o f $1,800.
B a n k c a p a b le o f e a r n in g m a te r ia lly m o r e th a n th e 12(4%
d iv id e n d d e c la r e d in 1928. P r ic e a b o u t “ b o o k v a lu e .”
W11D— 85 to 120 sh a re s o f th e s t o c k o f o n ly b a n k , ea ste r n
O k la h o m a t o w n o f a r o u n d 1,000 p o p u la t io n o ffe r e d a t $125
— s u b s t a n t ia lly b o o k v a lu e.
C a r r ie s s a la r y o f $2,400 p er
y e a r, t o g e t h e r w it h w e ll d e v e lo p e d “ sid e lin e s .”
H SA — M a n a g e m e n t o f o n ly b a n k , sm a ll g o o d w e s t e r n M is ­
s o u ri t o w n c a r r ie d b y s t o c k o ffe r e d a b o u t b o o k v a lu e. S a la r y
$1,800. R e q u ir e s in v e s tm e n t $10,000.00, w h ic h c o u ld be r e ­
d u ced q u ite m a t e r ia lly t h r o u g h d is tr ib u tio n o f la r g e “ u n ­
d iv id e d p ro fits .”
H BB— $13,000.00 b u y s 61 o f th e 100 s h a r e s o f g o o d c e n t r a l
K a n s a s b a n k in o n e b a n k to w n , t o g e t h e r w it h th e c a s h ie r ’ s
r e sid e n t, w h ic h is v a lu e d a t $2,500.00. S to c k p r ic e d a b o u t
in v o ic e v a lu e. B a n k h as v e r y g o o d e a r n in g h is to r y . S a la r y
$1,800.00. L a r g e c o m m is s io n s fr o m " s id e lin e s .”
C B A — A n in v e s t m e n t o f o n ly s e v e n t y -s e v e n h u n d r e d d o l ­
la r s w ill p u t y o u in c a s h ie r ’ s p o s itio n in o n ly b a n k in
w e s t e r n M is s o u r i t o w n o f a b o u t 250 p o p u la tio n . S a la r y an d
c o m m is s io n s a b o u t $1,800.00. V e r y g o o d e a r n in g p o w e r.
K O B— $11,000.00 s e c u r e s c o n t r o l o f o n ly b a n k , s m a ll to w n ,
e a st c e n t r a l K a n sa s.
S a la ry , $1,800.00, c o m m is s io n s fr o m
sid e lin e s a b o u t $600.
E M A — O n ly b a n k , g o o d t o w n in s o u th e a s t e r n M isso u ri.
P o p u la t io n w e ll o v e r 1,500. D e p o s its m o re th a n $180,000.00.
N ot o v e r -c a p it a liz e d . P o s it io n o f c a s h ie r, c a r r y in g m a n a g e ­
m en t o f th e b a n k , m a y be h a d b y a c c e p t a b le b a n k e r t h r o u g h
p u r ch a s e o f 15 to 50 s h a r e s at $180— s u b s t a n t ia lly b o o k v a lu e.
L C B — 56 o f th e 150 sh a re s o f s t o c k sp le n d id b a n k , e a st
c e n t r a l K a n s a s , c a r r y in g c a s h ie r s h ip a t $1,920 o ffe r e d at
$300.00 p er sh a re — litt le m o re th a n in v o ic e v a lu e.
V ery
h ig h d iv id e n d re co r d .
G o o d c o m m is s io n s .
Or Other Offerings, Address

BANKERS BROKERAGE COMPANY
(Successor to the C. C. Jones Investment Company)

919 Baltim ore Avenue
Central Western Banker, July, 1929

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

Kansas C ity, Missouri

29
your funds are at the “ peak” it should
not be objected to by our good friends
of the Federal Reserve. I am sure
we would use them more often and
for larger amounts if we did not invest
our “ peak” funds in Call Loans.
Some of you will say you do not
know anything about bonds and com­
mercial paper. I do not like to heai
you say that— it is confessing that you
do not know how to make loans.
You can read the statements the
same as you do your local borroweis
and see what they have to pay with;
study the ratio of liquid assets to lia­
bilities and to fixed assets; also see
what their record is as to earnings,
and if there has been any change in
the management.
Here are eleven dont’s that have
caused bank trouble in the past:
1. Loans based on equity in real
estate.
2. Excess Loans.
3. Capital loans (mean where the
creditors have as much or more in­
vested than the borrowers).
4. Large lines to the same family
or interests.
5. Trading paper or balances with
other banks.
6. 20% , or more, past due paper.
7. Large lines to officers or direc­
tors.

8. Inactive directors.
9. No Secondary Reserve.
10. Excessive borrowings.
11. Paying too much on time de­
posits.
Jf you want to be kind hearted with
someone else’s money, resign and run
for the Legislature. There you can
be as kind hearted as you want to with
other people’s money, and do no harm
as the Governor will veto it.
Any bank can create a Secondary
Reserve and will have the satisfaction
of seeing it rebound to the lasting ben­
efit of its depositors and stockholders,
its community and the banking busi­
ness as a whole.
Corporation Earnings

A comparison of quarterly earnings
of 169 industrial corporations in the
United States for the past five years
shows that in the first quarter of 1929
no fewer than 26 companies, or 15
per cent of the total, reported the
largest earnings of any of the 17 quar­
ters in the 1925-1929 period, accord­
ing to the Midland Bank, Cleveland.
The record of the entire 169 corpora­
tions combined was almost as good,
their first quarter earnings being ex­
ceeded only by the third quarter of
last year.

“ The steel group showed up partic­
ularly well, first quarter earnings be­
ing 45 per cent larger than any earlier
quarter in the five-year period,” says
the bank in a survey of industrial
profits. “ Eight out of thirteen lead­
ing steel companies made a new record
for the period. The next best show­
ing was made by the motor accessory
and mining groups, which topped their
best previous records by 10 per cent
and Sy2 per cent respectively.”
“ Five out of fifteen motor accessory
concerns and five out of thirteen min­
ing companies reached new records.
In the chemical group, the first quarter
earnings have been exceeded only
once, and in the motor and food
groups only four earlier quarters made
a better showing. The oil companies
were lower down, their first quarter
ranking twelfth out of seventeen quar­
ters, but this was largely seasonal.”
Well Bid

During an intense love scene in the
movies, when the hero was doing his
stuff, wife nudged hubby and said:
“ Why is it that you never make love
to me like that?”
“ Say,” he replied, “ do you know
the salary that guy gets for doing
that ?”

W e Assure Efficient Service In Handling
Live Stock Collections
and All Other Omaha Business

LIVE STOCK NATIONAL 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, July, 1929

30

South Dakota News
tiiiittitiiiiMiiniiiiMiiiiiitiiiiiiiiiiiiiiiiiititiiiiiiiiiiiiiiiiiiiiiiiiiniiitiiiniiiiiiiiiiiiifiiiiiiiiiiiiiiiiiniiiiiHitiiiiiiiiiiiiiiiiitiiiiiiiiiiiiiiiiiiiiiiiiiitiitiiiiitiiiiiiitiiiiiiiininiiiiiiiiitiiiiiiiiiiiiiiiiiiiitiiiiiiiiiiiiiiiitiiiM«

Service Charge

Beginning July 1, the First State
Bank and the Harding County Bank
of Buffalo, South Dakota, will make a
monthly service charge of 50 cents for
accounts amounting to less than $50
carried in these two banks. This plan
lias been adopted by nearly all of the
banks in the county and the Buffalo
institutions are about the last to put
the plan in operation.
Large Consolidation

The largest business transaction in
the history of Vermilion, South Dako­
ta, was completed when the assets of
the First National Bank of Vermilion,
and the Vermilion National Bank
merged into the First National Bank
& Trust Company, of Vermilion, a
new banking corporation that will sup­
plant the two institutions.
The combining of Vermilion’s two
oldest banking institutions into one

larger institution comes as the result
of serious consideration on the part of
officers and owners of both banks as
to which method of operation could
serve the community best, it was an­
nounced.
The First National Bank & Trust
Company has a capital of $100,000
and a surplus fund of $50,000. Its
assets, consisting of the combined as­
sets of the First National and the Ver­
milion National, will be about two and
one half million dollars.
The officers and directors of the
First National Bank & Trust Com­
pany for the ensuing year will be: M.
L. Thompson, chairman of the board ;
C. H. Barrett, president; G. K. Brosius, vice-president; E. M. Hart, vicepresident; T. N. Hayter, cashier; and
E. C. Barton, W . H. Beede, W. C.
Bryant, A. B. Gunderson, C. Christ­
ianson and R. C. Davis, on the board
of directors.

A Complete Banking Service
The Midland Bank offers exceptional facilities for transacting
banking business of every description. Together with its affilia­
tions it operates over 2450 branches in Great Britain and Northern
Ireland and, in addition to offices in the Atlantic Liners Aquitania,
Berengana and Mauretania, has agents and correspondents in all
parts of the world. The offices of the Bank in Poultry, London,
E.C. 2 and at 196 Piccadilly, London, W. 1 are specially equipped
for the use and convenience of visitors in London.
OVERSEAS B RANC H : 1 2 2 OLD BROAD STREET, L O N D O N , E .C . 2 .

MIDLAND BANK

Owners of, 51 per cent of the stock
in the First National Bank and Trust
Company, of Vermilion, is the First
Bank Stock Investment Company, of
Minneapolis, a 50 million dollar bank­
ing corporation owning controlling in­
terests in banks in Aberdeen, Sioux
Falls, Fargo, Moorhead, and other
larger cities of the northwest. This
corporation is officered by the presi­
dent and the chairman of the board of
directors of the First National Bank
of St. Paul, the president of the First
National Bank of Minneapolis, and
other leaders in banking circles in the
northwest.
Heads State Bankers

Thomas O ’ Brien, Hoven, president
of the Hoven State bank, was unanim­
ously elected president of the South
Dakota Bankers’ association at the
closing session. A. B. Cahalan, Mil­
ler, was elected vice president and H.
E. Edmunds, Yankton, treasurer.
Members of the executive council who
were elected are: Group No., 2, E. R.
Coonrod, Flandreau; group No. 3, L.
M. Larsen, Wessington Springs;
group No. 5, George C. Fullinweider,
Huron.
Following the regular business ses­
sion a special meeting of the American
Bankers’ association was held. At this
meeting, Clarke Bassett, Aberdeen,
was elected state vice president for a
one-year term ; Don W. DeVey, Westport, was elected member sof the nom­
inating committee, and M. Plin Beebe,
Ipswich, alternate.
Ira A. Moore,
Sioux Falls, was elected state vice
president for the national bank divis­
ion; O. I. Ceyhaus, Sioux Falls, state
vice president for the state bank divis­
ion ; H. R. Kibbee, jr., Mitchell, state
vice president of the savings bank div­
ision, and E. R. Heaton, Yankton,
state vice president for the trust com­
pany division.
Aberdeen was chosen the 1930 con­
vention city.

L IM IT E D

HEAD OFFICE: 5 THREADNEEDLE STREET, LONDON, E.C. 2

How South Dakota Banks
Are Keeping Step
(Continued from Page 5)

TYPEWRITERS
AND

A D D I N G M A C H IN E S
EVERY MAKE—LARGE OR PORTABLE

CORONI A r O o R
Standard Fou r Bank K e y b o a rd
— W ide Carri ge

7 Col.

“ CORONA”

10 Col.

$60

Adding
Machines

$80

F. J. WEISS

GEO. F. PINNE

C entral T y p ew riter E x c h a n g e , Inc.
1912 FARN AM ST.

(Established 1903)

Central Western Banker, July, 1929

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

OMAHA, NEBR.

A Live Committee
Our Protective Committee I need
not tell you about. You know it is a
live one and if there is anyone in
South Dakota more able to steer this
Committee than Plin Beebe, I would
like to see him. Plin not only “ knows
his stuff” but he has the tenacity and
willingness to put it over and the As­
sociation is grateful recipient of his
efforts. It is part of Plin’s religion
these days to see that the banks are
treated fairly by the Surety and In-

surance companies and my guess
would be that in spite of his up-hill
pull, Plin will get somewhere. More
power to him !
The Association has several other
committees functioning wherein there
is lots of hard work and probably very
little glory. I refer to the committees
on “ Analysis of Accounts,” “ Service
Charges,” and “ Standard Forms.’ ’
The result of the work of these com­
mittees I believe is more apparent this
year than heretofore because the banks
of the state are now operating under
the influence of their recommendations
on a vastly increasing scale. The ser­
vice charge has progressed far beyond
the experimental stage in our state
with splendid effect. Many banks are
now analyzing unprofitable accounts
and the Association office is frequent­
ly being called upon for suggestions
on standard information and standard
forms. There is a broad field for the
Standard Forms Committee and the
work should be prosecuted further.
From the experience of the past we
must profit if we are to survive and I
would leave with the Association the
following tasks for the coming year :
First : I would again recommend
that intensive work be done on the
matter of taxation. I do not believe
that we should be satisfied to remain
too inactive and complacent on this
matter. In this work I believe the
American Bankers Association, with
the investigations made by their com­
mittees, will be of great assistance.
W e have had the matter of taxes be­
fore the Executive Council on several
memorable occasions. I believe it
should be dusted off and brought up
again.
Second: Our genial guest from
Chicago, Craig Hazelwood, is I be­
lieve, the father of the idea of having
conferences on bank management. He
believes that this work should be ex­
tended down through the state and
even the county organizations and I
would recommend that your Associa­
tion hold one or more mid-winter con­
ferences to further this work.
Third : W e have at present no
committee on insurance. It is quite
imperative that we have some thought­
ful work done on our insurance mat­
ters. Adjustments of rates are being
made frequently and we should have
a forum wherein the facts could be as­
sembled. Such a committee could
conceivably save the banks of the state
thousands of dollars.

T h e H eritage o f Years

S

IN C E 1879, this old progressive bank has pre-

judgment which it exercises when handling the
business of correspondents, its experience and
comprehensive knowledge of local conditions are
the heritage of a span of fifty years.
Banks which desire a thoroughly dependable Chicago connection are invited to investigate this
in stitu tio n ’s u n u su ally complete facilities. In­
quiries from banks and bankers are invited.

O scar H . H a u g a n

Chairman of the Board
L eroy A . G o dd ar d

Vice-Chairman
W


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Federal Reserve Bank of St. Louis

alter

W . H ead

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President

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J. C

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Executive Vice-President

State Bank
o f Chicago
A Trust Company

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L A SALLE A N D M O N RO E STR EETS

She W as Suspicious

“ Does your wife open your letters?”
“ No, not the business letters; only
those marked 'private’.”

served its identity and its ideals. The sound

Member Federal Reserve System
C

a p i t a l

,

Surplus

and

U

ndivided

P

rofits

O

ver

$13,700,000

Central Western Banker, July, 1929

32
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Fritchen, vice-president and Ed Jac­
obs, cashier.
Elect Officers

Closing a successful year’s activi­
secretary and treasurer, Leon G. A b­ ties, the Wichita, Kansas, chapter of
A.I.B. elected these new officers: Pres­
ele of Holton.
ident, J. M. Lawson, Fourth National
Bank; vice-president, Edwin W . Ros­
Granted Charter
ser,
Wheeler Kelly Hagny Trust Co.;
D.
W . Johnson, Sr., and D. W.
Johnson, Jr., have been granted a treasurer, J. W. Whitaker, Federal In­
termediate Credit Bank, and secre­
charter for the Citizens State Bank of
Mound Palley, Kansas. They own an tary, Hope Young, First National
interest in the Olsburg State Bank, Bank. Enrollment last year totalled
108.
where they are cashier and assistant

UIMIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIItlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllilllllllllllllllllllllllKIII

Named on Board

A new director recently added to the
board of the Miami County National
Bank at Paola, Kansas, is John W.
Sponable, assistant cashier. He takes
the post left vacant by the death of
Silas S. Whiteford.
Meet in Holton

The Jackson County Bankers Asso­
ciation held their regular quarterly
meeting at Holton, Kansas, recently.
Over fifty bankers and their wives at­
tended the banquet. Prof. Frank
Blecha of the Extension Department
of the Kansas State Agriculture Col­
lege was the main speaker of the eve­
ning.
The Jackson County Association is
behind the banker-farmer movement
in this county and a number of pro­
jects especially the lime and legume
project is being developed by the aid
of the bankers.
The officers of the Jackson County
Association for 1929 are : President,
Felix Ernest of Whiting; vice-presi­
dent, Marlin Johnson of Circleville ;

cashier, respectively.
State to National
Becomes President

The new president of the First Na­
tional Bank of Osawatomie, Kas., is
Hugh C. Whiteford. Eldon Brown is
cashier, in Mr. Whiteford’s place.
The changes became necessary because
of the death of S. S. Whiteford,
founder of the bank.
New in Tipton

Tipton, Kansas now has a new state
bank called the Tipton State, with a
capital of $20,000. The bank will oc­
cupy the building formerly used by
the Home State Bank.
John Schmitt is president, Frank

The Gray County State Bank of
Cimarron, Kansas, has been granted
a national bank charter, and is now
the First National Bank of Cimarron.
Inspect New Vaults

Open house for customers to inspect
the new vault installed for their con­
venience was held recently by the Peo­
ple’s Bank of Pratt, Kansas. For
forty years Thad C. Carver has been
president of this 42-year old institu­
tion. Other officers, veterans too, are:
Cashier, E. F. Tolman; assistant cash­
ier, L. H. Browne, O. L. Miller, and
L. H. Moore.

-that's all
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to know/

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Eppley Hotels are
known throughout
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of the City of New York
PINE STREET CORNER OF NASSAU

C a p it a l........................................ $
61,000,000.00
Surplus and P ro fits................
79,937,918.04
Deposits (March 27, 1929) 1,048,009,157.21
OFFICERS
Albert H. Wiggin
Chairman of the Board
Robert L. Clarkson
President

John McHugh
Chairman of the Executive Committee

Carl J. Schmidlapp
Reeve Schley
Henry Ollesheimer
James T. Lee
Sherrill Smith
Alfred C. Andrews
Robert I. Barr
George E. Warren
George D. Graves

Vice-Presidents
Frank O. Roe
Harry II. Pond
Samuel S. Campbell
William E. Lake
Charles A. Sackett
Hugh N. Kirkland
James H. Gannon
William E. Purdy
George H. Saylor

M. Hadden Howell
Joseph C. Rovensky
Ruel W. Poor
Edwin A. Lee
Leon H. Johnston
Wm. H. Moorhead
Horace F. Poor
Edward E. Watts
J. Sperry Kane

Vice-President and Cashier
William P. Holly
Second Vice-Presidents
S. Frederick Telleen
Frederick W. Gehle
Otis Everett
Alfred W. Hudson
Harold L. VanKleeck
James L. Miller
Joseph Pulvermacher T. Arthur Pyterman
Ambrose E. Impey
Franklin H. Gates
Robert J. Kiesling
Arthur M. Aiken

Central Western Banker, July, 1929

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

Lynde Selden
Thomas B. Nichols
George S. Schaeffer
George A. Kinney
George J. Milne, Jr.
Frank M. Totton
Russell C. Irish

Omaha, Neb. . . . Hotel Fontenelle
Hotel Rome
Hotel Logan, Apartment Hotel
Lincoln, Neb.............. Hotel Lincoln
Hotel Capital
Norfolk, Neb.............. Hotel Norfolk
Council Bluffs, la. . . . Hotel Chieftain
Marshalltown, la. . . Hotel Tallcorn
Cedar Rapids, la........ Hotel Montrose
Sioux City, la............... Hotel Martin
Sioux Falls, S. D. . . Hotel Carpenter
Hotel Cataract
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E X E C U T I V E

P R E S ID E N T

O F F I C E S

~

O M A H A

33
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Colorado News
Goes to Denver

Otto Frederick, son of Mr. and
Mrs. Geo. Frederick of W ood River,
has been chosen as vice-president of
the Denver Stock Yards National
Bank at Denver, Colo. Mr. Frederick
has been engaged in the banking busi­
ness for the past fifteen years in
Wyoming. He is also interested in
several mining enterprises in W yom ­
ing.
Cashier Resigns

At a recent meeting of the Board
of Directors of the First National
Bank of Holly, Colorado, the resigna­
tion of E. J. Thayer as Cashier was
received, and the announcement is
made by the board of diretcors of the
bank of the election of W . W . Chand­
ler of Gage, Oklahoma, as cashier and
manager of the bank.
The change is made for the con­
venience of Mr. Thayer, so that he
can have his full time to devote to his
personal affairs. He will, however, be
in the bank with Mr. Chandler the
most of the summer helping him to
get acquainted with the bank’s custo­
mers and affairs.
Appointed by Governor

L. C. Moore, president of the First
National bank of Fort Collins, Colo­
rado, was named by Governor Adams
as a member of the state highway
board, representing District No. 6.
The appointment is for a six-year term,
succeeding W . G. Duvall of Golden,
whose term had expired some time
ago. District No. 6 includes the coun­
ties of Larimer, Boulder. Clear Creek.
Gilpin, Grand, Jackson, Tefferson and
Moffat. Weld County is in District
No. 7, represented by Frank H. Blair
of Sterling.

The sessions were held in the Elks
Home both morning and afternoon.
After J. Perry Reynolds, president of
the group, called the meeting together,
John W . Valentine gave the address
of greeting.
During the session J. Harrison Gib­
son, assistant cashier of the First Na­
tional bank, was elected to head the
group for the next year to succeed
J. Perry Reynolds. R. L. Henderson
of Longmont was elected secretary co
succeed M. Gibson.
A banquet at the Boulderado hotel
closed the event of the day and took
the place of a beefsteak fry which
would have been given had the weath­
er permitted.
Group Four

The annual meeting of Group Four
of the Colorado Bankers Association
was held at the Mesa Verde National
Park and was attended by fifty one
persons. A dinner at which the bank
officials of practically every bank in
the San Juan Basin, officers of the
state organization, the wives of the
members and Mr. and Mrs. Jesse
Nusbaum were present was followed
by a business meeting.
Speakers of the evening were W . R.
Armstrong, president of the Colorado
Bankers Association, L. F. Scarboro,
secretary of the organization and Mr.
Richardson, representative of an in­
vestment banking company.

Officers elected for the ensuing
year for Group Four w ere: W. E.
Faris, Macos, to nominations commit­
tee; F. M. Shideler, Macos, to chair­
manship and W. R. McComb, Duran­
go, secretary.

Pueblo Clearings

Steady gains in Pueblo, Colorado,
bank clearings from week to week,
contrasted with the similar periods of
a year ago, point towards the continu­
ed prosperous condition and growth of
the city. From the first of the year
gains have been uniformly steady and
each succeeding year finds the clear­
ances greater than during the year
previous.
Clearings recently totaled $1,967,470,07, statistics released by the local
office of the R. G. Dun and Company,
national finance reporters, showed. A
year ago, the clearings were $1,286,915.19, representing a gain of $680,554.88.
Meet in Meeker

Meeker was the headquarters of
the bankers of Western Colorado—
about fifty bankers and their wives
were present for the annual meeting
of Groups Three and Six. Meeker
was selected at Ouray last year as the
meeting place for Group Three which
comprises everything on the western
slope with the exception of the Moffat
road country. In as much as Meeker
was chosen to that latter section,
Group Six asked to combine this year
with Group Three.

UNITED—BETTER TO SERVE THE NEEDS OF
THE GREAT MIDDLE WEST

Visit in Loveland

Senator T. G. Lashley, C. G. Buck­
ingham and his nephew, C. E. Buck­
ingham. and Frank Tyler, L. W . Cumberford and Henry M. Sayer, well
known Boulder, Colorado, bankers
and real estate men, were in Loveland
recently. These gentlemen had been
looking after business interests in the
northern part of the county and made
a short stop enroute back home.

F IR S T N ATIO N A L
BANKor CHICAGO
Affiliated

FIR ST TR U ST AND
SAYING S BANK

Meet in Boulder

The annual convention of Grange
No. 1 of the Colorado Bankers asso­
ciation was held recently in Boulder.


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Federal Reserve Bank of St. Louis

RESOURCES

EXCEED

$ 6 0 0,0 0 0,0 00.0 0

Central Western Banker, July, 1929

34
...................................................................................................................................................................................................................... Militili..... mimi

.................. ....................................... .
Ask for Charter

Articles of incorporation in the o f­
fice of secretary of state have been
filed by the Security State bank of
Basin, Wyoming, with a capitalization
of $25,000. Directors of the bank for
the first year are C. J. Williams, G. A.
Hinman, U. E. Pearson, G. A. Hinman, A. C. Meloney and E. K. Parks.
The bank has been granted a chart­
er by the state banking department
and has taken over the fixtures of the
Basin State bank.

Assistance from Afton was sent for to
right the car, which suffered only bent
fenders, and was able to continue un­
der its own power.

And the ashes start to whiten
Round the embers’ crimson glow ;
W ith the night sounds all round you
Making silence doubly sweet;
And a full moon high above you
That the spell may be complete?
Tell me, were you ever nearer
To the land of heart’s desire,
Than when you sat there thinking
With your face turned toward the
fire?

Resigns

Harry R. Weston has resigned his
position as vice-president and active
manager of the American National
Bank at Cheyenne, Wyoming, and
will move with his family to Jackson,
Wyoming. Mr. Weston expects to be
actively associated with the Jackson
State Bank, of which he has been a
In Auto Accident
stockholder for many years, and hopes
E.
L. Smith, cashier of the Kem- to also find time to give attention to
mere, Wyoming Savings Bank, and A. his ranching interests in that section.
For 25 years Mr. Weston has been
E. Wilde, assistant cashier of the
same institution, figured in an automo­ prominent in banking circles in W yo­
bile turnover in Star Valley recently ming. It was in 1903, as a friend of
J. M. Schwoob, that Mr. Weston came
during a rainstorm.
The two bankers left Kemmerer to Wyoming, and became the credit
shortly after noon, and encountered man in charge of the office at the Cody
rain and slippery roads in the Smoot Trading company in Cody. A few
district several hours later. It was years later, with the death of Cashier
just before they aproached the gravel Middaugh, who was shot in a bank
stretch on the highway a short dis­ holdup, he became cashier of the First
tance south of Smoot that the car, National Bank of Cody, a position
owned by Mr. Smith, and driven by which he held for many years, to re­
his companion, started to skid in the sign it to launch into the sheep busi­
greasy mud. Before the car could be ness, at one time owning and operat­
brought under control it had turned ing the Frost ranch on Sage creek.
over.
Land of Heart’s Desire
Mr. Smith sustained a fractured rib
besides minor cuts and bruises, while Did you ever watch the camp fire
Mr. Wilde escaped with a few bruises. W hen the wood had fallen low;

Third Annual Tour

Bankers and farmers toured through
Coffey County, Kansas recently for
the third annual journey of inspection
of soils and agriculture experiments.
Three specialists from Kansas State
Agriculture College accompanied the
tourists, and W. W. Bowman, K.B.A.
secretary, addressed the assembled
group.
Assistant Cashier

Chas. B. Glover of Axtell, Kas., is
now assistant cashier at the Otis State
Bank, taking the place of Ben Scheureman, who is moving back to the
farm. Mr. Glover is from the First
National Bank of Hoisington.
Missing Kick

“ How is Simpson getting along in
business ?”
“ W onderfully; but he’s terribly dis­
couraged.”
“ H ow’s that?”
“ Well, they’re so busy filling and
shipping orders, they haven’t any time
to hold a conference.”

A U S T R A L IA

BANK OF NEW

SO U TH

W ALES

E ST A B L ISH E D 1817

(W ith which is am algam ated T H E W E S T E R N A U S T R A L IA N B A N K
P A ID -U P C A P IT A L ________________________ ______
R E SE 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 —

A

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NOCI

$ Îïa’~!!n !!oî!
¡17,500,000
S 104,500,000

Aggregate Assets 30th Septermber, 1928, $444,912,925
A G E N IS

I 1RS|

N A TIO N A L B A N K , O M AH A, N E B R A S K A

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

GENERAL

M ANAGER, A LFR E D

C H A R L ES

D A V ID SO N —

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

548 Branches an«l A s s i e s in all A ustralian States Federal Territory, New Zealand, F iji, Papua, Mandated T erritory of
JMew Guinea and London. The Bank Collects for and Undertakes the A gency of Other Banks, and tran s;,cts every description of A ustralian B anking Business

_________

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

P u b l i s h e d b y D eP uy P u b l i s h i n g C o m p a n y

416 Arthur Bldg., Omaha, Nebraska
C l if f o r d

D eP uy,

Publisher

G erald

A.

S n id e r ,

Associate Publisher

Wm. H. Maas, 1221 First National Bank Bldg., Chicago, Vice-President

Central Western Banker, July, 1929

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

R. W .

M oorhead,

Editor

H. H.

H aynes,

Associate Editor

Frank P. Syms, 25 West 45th Street, New York, Vice-President


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Federal Reserve Bank of St. Louis

Direct Contact With
American Business
No matter what part of the
United States your business
reaches, this institution is
acquainted in that territory.
It has accounts from all lines
of business and from onefifth of the nation’s banks

C o n tin en tal I llin o is
BANK AND TRUST
COMPANY
C H IC A G O


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J L T U N D R E D S of banks
A express their appre­
ciation of our service by
their continued patronage.

The
Omaha
National
Bank