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Federal Reserve Bank of St. Louis
CENTRAL WESTERN
BANKER
Omaha
Nebraska Bankers Convention
Page 4-5
Still the ^Big Boss* of Banking
Page 6
How Your Employes M eet
Your Customers
Page 7
A n Analysis of Municipal Securities
Page 11
November
1933
Visit Omaha
in NOVEMBER!
A k - S a r - B e n R o d e o and L iv e sto c k S h o w
November 11th to 17 th
Nebraska Bankers’ Association Convention
November 15th and 16th
This year the Nebraska Bankers’ Association holds its convention in
Omaha during one of the gala weeks on the city’s calendar — the week
of Ak-Sar-Ben’s sixth annual Rodeo, Horse Show and Livestock Exhibit.
Combine business with pleasure by visiting Omaha at this time . . . and
when you do, make the First National Bank your headquarters.
FIRST NATIONAL BANK
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Federal Reserve Bank of St. Louis
OF O M A H A
Central Western Banker, N ovem ber, 1933
3
C E N T R A L
W EX T ER N
R A N K ER
410 A R T H U R B U IL D IN G
O M A H A
C l iff o r d D e P u y , Publisher
R . W . M oo rh ead , A ssociate Publisher
H. H. H a y n e s , E ditor
F r a n k S. L e w is , 218 Essex B ldg., M inneapolis
F r a n k P. S y m s , V ice-P resident, 19 W est 44th Street, N ew Y ork
Subscription, 25 cents per cop y ; $2.00 per year.
V olume 28
Entered as second-class matter at the Omaha postoffice.
N umber 11
N O V E M B E R , 1933
Read
what C o l. L e o n a rd P. A y r e s , vice president
of the Cleveland Trust Company, says about conditions.
A
demand for new corporate bonds, and an increase
in the volume of building construction —Two factors
that will speed us toward business recovery
T H IS IS T H E T E S T IN G T IM E
E11S IS the testing time for the
N R A , and for our recovery efforts.
D uring the recent months groups
representing all kinds of businesses have
been working with government repre
sentatives to formulate codes, and with
their own organizations to put them into
effect. These efforts still continue but
it is pretty generally true by now that all
American business is operating under the
new codes. It is too soon as yet to judge
what the results will be, for the devel
opments so far are of diverse sorts.
T
y ^ D J U S T M E N T S to the new condi
tions are proving difficult. M any
business men are finding it hard to make
profits since the costs of operation have
advanced, and as a consequence they are
having trouble in their attempts to secure
credit with which to keep going.
FO R
THE
A S U S T A IN E D
increase in the vol
ume of building construction would
do more to help business recovery than
would almost any other development.
Probably it is true that we cannot have
prosperous times in this country when
the building industry and the automo
tive industry are depressed, and we
cannot have depression when they are ac
tive. These two industries appear to ex
ercise a more powerful influence on gen
eral industrial activity than do any two
others, and in the main their outputs
tend to fluctuate rather closely together.
N E W S P A P E R opposition to inflation
r p H E D E C L IN E in the depression has
seems clearly to be growing. W ash
ington is still the center of business, but
elsewhere the volume of independent
thinking is increasing.
As a nation we
are approaching the fifth depression w in
ter with decreased faith in the efficacy of
economic panaceas, but with increased
confidence in our capacity for cooperative
action.
been rapid and extreme. Probably ex
penditures in 1933 will not amount to
much more than one and one-third bil
lions despite the great amounts spent for
government work.
In good times the
workers employed in new construction
are as many as four millions, and some
estimates give higher figures. T h e new
emergency legislation enacted last spring
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Federal Reserve Bank of St. Louis
authorizes the expenditures of three bil
lion, three hundred million dollars for
public works. N o large part of this vast
sum will be expended this year, and the
total appropriation w ill be spent so as to
spread it over several years.
Clearly
public funds cannot take the place of
private disbursements in furnishing ade
quate employment in the building indus
try.
rp H E SALES of long-term corporation
bonds in this country for the purpose
of raising new capital averaged between
three and four billions dollars a year
from 1921 through 1929, and reached a
high point of over five billion dollars in
1927. T hey have declined during the
depression to little more than two bil
lions in 1931, to less than one billion in
1932, and they w ill probably amount to
less than half a billion in 1933. T h e
sales of bonds for raising new capital not
only reflect changing business conditions,
but in some degree they forecast them.
R E V I V A L in the demand for new
corporate bonds would be a most im
portant contribution toward recovery. It
awaits a renewed confidence in the fu
ture of our money, and a relaxation in
the provisions of our new Securities A ct
of 1933.
4
Central Western Banker, N ovem ber, 1933
Thirty-Sixth Annual
onvention
O m a h a
Nebraska
N o v e m b e r 1 5-16
B a n k e r s
Association
Headquarters
Fontenelle
Registration
UESDAY
evening,
November
14th, at about five o ’clock, the
Secretary’s desk on the mezzanine
of the H otel Fontenelle will he opened
for registration of delegates, and will be
maintained throughout the Convention.
T
Business Sessions
T here will not be any session of the
General Convention on W ednesday
morning.
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Federal Reserve Bank of St. Louis
R. H. B arber, President
Hotel
Entertainment
Wednesday, November 15th
T h e first business session of the G en
eral Convention, at 1 :30 o ’clock, W e d
nesday afternoon, will be held in the
Ball Room of the H otel Fontenelle.
T h e two sessions on Thursday will
also be in the Ball Room of the Hotel
Fontenelle.
6:45 P .M ., Banquet at Hotel Fontenelle
Toastmaster
Response by D ouglas M alloch ,
Poet and Philosopher, of Chi
cago.
Thursday, November 16th
7 :00 P .M ., H orse Show and R odeo at
Ak-Sar-Ben Coliseum. Chartered
busses w ill be made up and start
from Hotel Fontenelle.
Fontenelle
Hotel
Convention
sessions will be
held in the Ball
R o o m on t he
mezzanine floor
D r. H arold Stonier
“ Your Customers and 7 our Bank’ ’
5
Central Western Banker, Noveinber, 1933
O F F IC E R S
Nebraska Bankers A ssociation
1932-1933
R. H . B A R B E R
Vice President Fort Kearney State Bank
Kearney
Chairman E xecutive Council
Automobile Committee
Rodeo Committee
C. L . Owen, Chairman; A . L. Coad,
V . B. Caldwell, J. P. Lee, A . Kopperud.
W . B. M illard Jr., Chairman; C. D .
Saunders, W . H . Dressier.
•
President
Stock Show, Horse Show and
Golf Committee
T . F. M urphy, Chairman;
Gregory, F. J. M cCauley.
G.
A.
Banquet Committee
J. T . Stewart, III, Chairman; J. F.
Ringland, John A . Changstrom.
Committee of Local Women
General Committee
M rs. W . B. M illard, Jr., Chairman;
M rs. J. F. M cD erm ott, Miss M innie
Phelan, VIrs. A . L . Coad, M rs. E. J.
Horacek, M rs. D . P. Hogan, M rs. P.
B. Hendricks, M rs. W . A . Sawtell,
M rs. Alvin E. Johnson, M rs. L . H .
Earhart.
H . A . S C H N E ID E R
President Plattsmouth State Bank
Plattsmouth
P R O G R A M
Secretary
Wednesday Afternoon, November 15th
W I L L I A M B. H U G H E S
420 Farnam Building, Omaha
Ball Room, Hotel Fontenelle
Treasurer
2:00
2:05
P. B. H E N D R IC K S
Vice President U. S. National Bank
Omaha
2 :10
Special Meeting of State Bankers
Wednesday, November 15th, 1 0 :3 0 a.m.
Palm Room, Hotel Fontenelle
This meeting is called by the Special
Committee of State Bankers, of which
A . B. W o o d of Bartley is Chairman.
M r. W o o d w ill preside.
T h e purpose of this meeting is to
afford the State bankers an opportunity
to confer regarding their problems
arising from the proposed Guaranty of
Deposits, and present to the General
Convention anything thought necessary.
If another Special M eeting after the
Convention seems necessary, announce
ment will be made from the rostrum.
Committees
General Committee on Arrangements
G . H . Yates, Chairman; H . O . W i l
son, F. C. Horacek, J. B. Ow en, G . A .
Gregory, F. W . Thomas, H . M . Bushnell, John Carmody, R. R. Ridge, A .
L. Coad.
2:25
2:40
3:05
3:10
3:15
3:30
Call to O rder — By President R. H . B arker
I n v o c a t i o n — V ery R everend Stephen E. M cG in l e y , Dean, T rinity
Cathedral
Address of Welcome — T . L. D avis, vice president First National Bank and
president, Omaha Clearing House Association
Response — E. E. P lacek , president, First National Bank, W ah oo
Annual Address of the President — R. H . Barber, vice president Fort Kear
ney State Bank, Kearney
Report of the Secretary — W illiam B. H ughes , Omaha
R eport of the Treasurer — P. B. H endricks, vice president U . S. National
Bank, Omaha
R eport of E x e c u t i v e C o u n c i l — H . A . Schneider , Chairman, president
Plattsmouth State Bank, Plattsmouth
Address — “ Y ou r Customers and Y ou r Bank” — D r. H arold Stonier ,
educational director, American Institute of Banking, N ew Y ork City
4:15 Discussion
Appointment of Committees — Auditing, Resolutions, Nominations
Thursday Morning, November 16th
Ball Room, Hotel Fontenelle
10:00 Call to O rder and Announcement of Committees —
10:15 Address — “ T h e Future for Country Banks,” A .
Bank of Bartley. M r. W o o d is chairman of
State Bankers on the Banking A ct of 1933
10 :45 Address -—- “ T h e Permanence of the N ew D ea l” —
Y ork City, editor of “ T o d a y ”
Adjournm ent
President Barber
B. W ood, cashier, State
the special committee of
R aymond M oley, N ew
Thursday Afternoon, November 16th
Ball Room, Hotel Fontenelle
Reception Committee
Alvin E. Johnson, Chairman; W . V .
Raynor, C. J. Horacek, O . P. Cordill,
J. A . Changstrom, P. B. Hendricks, D .
P. Hogan, C. D . Saunders, C. L . Owen,
F. J. M cC auley.
Entertainment Committee
J. E. M cD erm ott, Chairman; V . B.
Caldwell, Ellsworth M oser, C. J. H o r
acek, R. H . Kroeger, W . H . Dressier,
W m . Phillips, J. F. Coad, O . T . A lvison, A . Kopperud.
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Federal Reserve Bank of St. Louis
2 :00
2 :15
3 :00
3 :10
3 :30
3:35
3:45
Election of Nebraska Officers of the American Bankers Association by mem
bers of that organization. L. C. C h u rchill of Palisade, State vice
president of the A .B .A ., presiding
Address — “ Depression Hits Bank Robbers” — R ussell A. A lgire, vice
president National Surety Corporation, N ew Y ork City
R eport of Auditing Committee
Report of Resolutions Committee
R eport of Nominating Committee
Installation of Nezv O ffcers
Adjournm ent
6
" \ [
Central Western Banker, N ovem ber, 1933
we are to have a strong banking system, it must be
shock-proof —sound at all times —and we shall have such
a system only when and if the public is made to under
stand what such strength means to it.
In short, our people
By H. A. LYON
President
Financial Advertisers
Association
must appreciate their own interest in a desirable system^
T H E PUBLIC IS S T ILL TH E
"B IG B O S S " O F BAN KIN G
M E E T I N G of this sort often
serves as opportunity for self-con
gratulation. O ur association has
done well during this difficult year; its
affairs are in far better shape that we
had dared hope. It has contributed its
efforts in more than one worth while
movement over the past few months. For
instance, the F .A .A . was primarily re
sponsible for the contents of the series
of Public Relations conferences for the
bank staff, now being distributed through
the American Bankers Association. In a
number of cities it was through members
of our association that public relations
matters were handled during the bank
moratorium and other critical periods.
O u r aid, as a group, has been offered
and accepted by the officials of the Am er
ican Bankers Association, the Association
of Reserve City Bankers, local Corpor
ate Fiduciary Associations and State or
District Banking groups. W e have
aroused a greater interest among bankers
than for years in public relations work—
as witness the large number of articles
and speeches on the subject during the
year.
A
Still W ork to Be Done
In spite of this favorable record, this
is not a time to be smug. If we have
safely traversed a difficult period, it is
that we may make ourselves more useful
to our respective institutions and to bank
ing generally in the still critical days
ahead. I am less concerned with the past
than with the future. A nd if I suggest
a definite program for the future, it is
not with any intent to embarrass fhe
new administration, but because it is im
possible to have lived with this job for a
year without form ing definite conclu
sions.
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Federal Reserve Bank of St. Louis
A n address made by Mr. L y o n
before the annual convention of
the Financial Advertisers Associa
tion, held on S e p te m b e r 12 in
New York City
It is difficult sometimes to lay your
hands upon fundamentals, but with the
risk of error all about, I venture to
paint you this picture. M ost of us have
believed for years that public relations
was too much neglected by banks; today
we think we see an awakened interest
in the subject. Everything points to an
era of greater public enlightenment— the
required publication of affiliate reports,
the fuller information required by the
securities bill, more comprehensive re
ports by businesses whose obligations are
listed on securities exchanges.
Let us
hope that all of these are permanent, for
light of day is good for economic as well
as for physical health.
T h e difficulties in this situation are
tw ofold. First, the present publicity re
quirements are not enough, and, second,
there is grave danger that the current
interest w ill lapse after the emergency
is over.
Education Necessary
W e have in this country an instinct
for speculation.
Settled by dissenters,
populated by pioneers and seekers after
fortunes, our national progress has been
a series of alternate surges and reces
sions. W e have advanced— advanced per
haps more speedily than any other na
tion— but at immense cost. Every new
development has resulted in the scrap
ping of former successful enterprises.
Each cycle has been marked by a tremen
dous number of business and bank fail
ures. T he banks have been part and par
cel of this history,— our financial system
has been as strong and as weak as our
economic system. Bank management has
been subjected to the same strain as bus
iness management. It is clearly impossi
ble to have a banking system which is
strong and safe during a depression and
yet which is forced to lend itself to spec
ulative movements during boom times.
If we are to have a strong banking sys
tem, it must be shock-proof— sound at
all times— and we shall have such a sys
tem only when and if the public is made
to understand what such strength means
to it. In short, our people must appre
ciate their own interests in a desirable
system.
T hat means education— not for the
duration of the depression— not for a
year— but for a generation or more. It
is not enough to restore immediate con
fidence in a system which may buckle
under the next strain. It is not enough
for a number of banks to adhere to
sound banking. G ood banks have suf
fered because there has been bad bank
ing. It should be the responsibility of
thoughtful bankers to see that bad banks
are not permitted to operate.
But that, you may say, is the concern
of the operating officials of the banks.
So it is, and yet we public relations men
are as integral a part of the whole pic
ture as are the operating officials. If my
premises are correct, we cannot educate
the public except by plan, and it is to
those in our position that such planning
should fall.
It makes little difference
how well a bank may be run if the pub(C ontinued on page 12)
Central Western Banker, N ovem ber, 1933
Th e relation of your bank to your community is a
partnership p ro p o sitio n —W hat kind of a partnership
it will be depends a great deal on
How Your Em ployes Meet Your Customers
IM E S of great trial reveal indi
vidual character. Serious stringen
cies in business discover men’s mo
tives, their honesty, competence and abil
ity. T h ey crumple men and institutions
whose methods are adulterated, whose
foundations are not secure, whose greed
considered self above honor and service.
N o profession, no department of life is
without its weaker elements. But had
proper investigation been made of those
instances in banking, had the exaggerated
and startling headlines of the public
press been subdued to true proportions,
had banking not been used as a target
for political self-seeking, for vote-getting
purposes, had unfounded rumors not
been spread, the people’s confidence in
banks would not have been so shaken
and far less serious would have been fi
nancial losess. Fewer banks would have
been compelled to close their doors.
T here were factors in our banking ex
perience in America which every earnest
banker deplored — factors which many
had worked years to eliminate, which it
was fearfully recognized would be can
ker sores aggravating any difficult days
which might arise.
T
Politics
One of the most suppurating of these
was due to political regulation. The pol
itician, through the years of prosperity,
had enacted laws and permitted author
ity which could and did charter banks
with capital so small that common sense
should have de?iied them charters; had
permitted the establishment of banks as
competing units beyond the number that
could operate successfully. Yet, through
these last three years of almost H ercu
lean effort on the part of the banker to
keep ahead of the disasters of the gen
eral breakdown, to reset his reserves so
his liquidity could pay depositors one
hundred cents on the dollar, though in
vestments and loan were, in many in
stances, not being so paid — instead of
political support, commendation and co
operation, the banker received such on
slaughts that one marvels there is any
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Federal Reserve Bank of St. Louis
E X C E R P T S from an address of
John H. Puelicher, president of
the Marshall & llsley Bank, M il
waukee, before the 1933 conven
tion of Financial Advertisers
Association
banking system left in America. Even
political campaigns were conducted on
platforms of promised indictments and
prosecution of bankers. American bank
ing, during most of its history, has had
to survive despite relentless political med
dling and maneuvering.
T hat there have been incompetence
and dishonesty we admit. T hat the in
stances were used grossly to increase fear
in the public mind, we stoutly affirm.
W e shall continue to strive for higher
attainments in our profession, strive for
laws that require competence and ability
in
m anage
ment. T hat we
can not legis
la te h o n e s ty
and unselfish
ness into either
a d is h o n e st
banker, a dis
honest borrow
er, or a dishon
est p o li t ic i a n
m u st be c o n
ceded, and dis
honesty, wher
e v e r fo u n d ,
should be pun
ished. It is as
true in bank
in g as e lse
where that no
m a t te r h o w
good the law,
dishonest and
in c o m p e t e n t
men can make
it ineffective.
Good laws are
essential. We
John H. Puelicher
must strive for even better.
Their en
forcem ent will come only as the public
recognizes that it is a matter not of laws
or codes alone but equally of the men
who administer them.
These foremost causes of the general
economic situation almost completely
buried the American banker in the early
months of 1933. For a number of weeks
he was so busy digging himself out, doc
toring his wounds, recuperating, getting
over his daze, realizing that he had been
made the scapegoat in the public mind,
that he did not until recently begin to
show sufficient signs of life to protest
and to speak up. H e also began at that
time to do some surveying, to discover
wherein he might have done something
— anything — to have retained the pub
lic’s confidence and to have forestalled
somewhat the ravages of press reports
and political attacks.
8
Central Western Banker, N ovem ber, 1933
A Partnership
T h e banker who is aware of the fact
that successful banking is a partnership
— a partnership of the banker and his
public — has observed defects in that re
lationship. He sees once again what he
saw some years ago when radical ele
ments against government were attack-
ing banks and bankers — that the public
is not informed and can easily be led
astray by misrepresentations, emotional
appeals, and the unreasoning dictates of
seeming self - preservation. T h e alert
banker concedes that he has not assumed
his full responsibility toward these pub
lic relations.
A.B. A. Report on Bank Crime
Member banks show a ratio of liability to attack and
loss from crimes of violence less than half the experience
of banks outside the A . B. A . system
jg A N K S
covered by
the
nationwide
protective system of the American
Bankers Association show a ratio of
liability to attack and loss from crimes
of violence less than half the experience
of banks outside the system, James E.
Baum, in charge of the association’s
Protective Department, declares in a
recent report.
“ Investigations conducted by our
agents during the year ended August
31, resulted in the arrest of 69 forgers,
120 bandits, 15 burglars and 1 sneak
thief, or 205 of the 430 bank criminals
apprehended during the period under
report,” M r. Baum says. “ O f these, 213
have already been convicted, in addition
to 107 other prisoners arrested in the
previous year. As usual, this round-up of
bank crooks included a number of in
genious and desperate characters whose
skill and daring demand nothing less
than a nationwide, specialized system of
investigation such as that which is avail
able to all members of the American
Bankers Association.”
During the year indicated, member
banks reported 246 daylight robberies,
41 night burglaries, 201 forgery cases
and 8 sneak thefts, a total of 496 cases
subject to investigation by his depart
ment, M r. Baum reports. A ll banks in
the nation suffered 516 bandit raids and
95 night burglaries during the year, he
says.
“ In recent years, the Protective Com
mittee has drawn attention to the pro
tective advantages enjoyed by our mem
bership as evidenced by the comparative
robbery experience between member and
non-member banks,” M r. Baum’s report
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Federal Reserve Bank of St. Louis
points out. “ Non-members aggregate but
half the number of banks enrolled in the
association’s membership yet for more
than 20 years they have suffered almost
the same number of robberies as mem
bers.
“ T h e current period, however, finds
non-members the victims of 270 holdup
attacks and 54 burglaries, or 37 rob
beries in excess of the attacks directed
against member banks. T his comparative
experience with bank crimes of violence
proves more conclusively than ever that
the chances of robbery or frequency of
loss are more than two to one against
non-members, notwithstanding the fact
that the association’s membership em
braces more banks equally isolated and
without adequate police protection than
the non-members. In voluntary confes
sions, professional criminals boast of
having sense enough to avoid member
banks and their facilities for relentless
pursuit and prosecution.”
T o expedite the arrests of bank crim
inals and forewarn member banks, the
Protective Department sent out during
the year more than 500 warnings detail
ing the “ latest methods employed by
crooks who specialize and concentrate
their misguided talents upon banks,”
M r. Baum reports. T h e department also
certified 2,138 banks in Illinois, Indiana,
Iowa, Kansas, M ichigan and Wisconsin
for having organized county auxiliary
protective units under the standard of
organization
agreed
upon with
the
underwriters, entitling them to lower
premiums for burglary and robbery in
surance than they would pay without
such action.
There has been too great apathy on
the part of the banker in taking the pub
lic into his confidence. He has permitted
traditions of the inexplicable or mysteri
ous to surround him, his services and op
erations. In most instances he has as
sumed and relied upon a greater public
knowledge than really exists. T hat is
but natural. So does every professional
man — every specialist.
Even when a banker tried to explain,
he often found his explanation misunder
stood. A prize example of this came to
my knowledge a year or so ago. A bank
er tried to explain to an excitable woman
that the item in his balance sheet of two
million dollars undivided profits meant
that his bank could lose that amount
without affecting its capital and surplus.
T he next day she withdrew her large
checking balance, put it in a safe de
posit box, and furthermore, told several
friends in confidence — so confidentially
that word got back to him within
twenty-four hours— that the president
had personally told her that his bank
was going to lose two million dollars.
Try This Sometime
Let me tell you something of two ex
periments made in the form of ques
tionnaires regarding knowledge of bank
ing— one of which was submitted to
twenty-five business men, all members
of a noonday c lu b ; the second to stu
dents of college rank.
Q uestion: In what way does a state
bank differ from a national bank? O f
the luncheon club members, six did not
answer, probably because they did not
know and would not hazard a guess.
Seven were incorrect. T w elve were ap
proximately correct. T h e typical answer
was: “ T h e name is different.” A stu
dent’s answer w a s: “ T h e national bank
handles the reserves of the state banks—
state banks being just a branch of na
tional banks.”
Answers such as these should be of
vital, consuming interest to bankers.
T hey tell us just what we should know.
T hey point out why people may become
fearful
and confidence may be lost,
though from 95 per cent to 99 per cent
of the banking of this country is sound
and handled by men of integrity and
ability, devoted to their business and
their communities.
Another question was: “ W h at is the
difference between a bank and a build
ing and loan association?” In the Club,
three did not answer. Fourteen were in
correct, eight were approximately cor-
9
Central Western Banker, N ovem ber, 1933
IIIJ 1
'
Air-wayCenterofAmerica
O m a h a ’S strategic position as the traffic
center o f the United States has been empha
sized again in the rise o f transcontinental air
wm,
travel. This city was the base chosen for the
first air-mail flights to the Pacific. It remains
the focal point o f this cross-country traffic
today, when eighteen great planes roar in
and out daily, rushing tons o f mail and ex
press and scores o f travelers from coast to
coast in little more than a day.
The overland stage was Omaha’s only link
with the outer world when this pioneer bank
opened its doors for business. N o w ten rail
roads center here, while hundreds o f trucks
and buses fetch and carry freight and passen
gers in the ceaseless exchange between town
and country, on which Omaha has grown
great. Through it all this bank has done its
utmost to promote the trade, industry and ag
riculture o f our city and state. Today it stands
ready to serve them and you as the oldest
and one o f the strongest banks in Nebraska.
United Sta tes National Bank
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
OMAHA, NEBRASKA
“ NEBRASKA'S OLDEST BANK”
A ffililated with N O R T H W E S T B A N C O R P O R A TIO N
10
Central Western Banker, N ovem ber, 1933
rect, and the answers reflected some such
idea as: “ N o building and loan associa
tions have failed during the depression”
and “ building and loan associations deal
primarily with straight loans.” A further
answer as to the difference between a
bank and a building and loan association
was, “ A bout the same. Checks cannot be
written on building and loan associa
tions.”
“ W hat
are
a bank’s uncollected
funds?” was still another question. Here
thirteen did not answer, eleven were in
correct, and just one was correct. “ F roz
en assets” was the most usual interpre
tation.
“ W h at is a bank certificate of de
posit?” A student answer was “ W hen
money is put in a bank by a depositor, it
is entered in his pass book but the cash
ier puts it down on a certain certificate
of deposit, which is kept by the bank.”
A business man answered the ques
tion: “ W h at is bank float?” by saying,
“ A mythical something which keeps the
bank from sinking but does not.”
A student definition of a trust, as used
by banks, is “ A combination of corpora
tions whose stock is exchanged for trust
certificates.”
Hungry for Knowledge
It is evident that for many years the
public was apathetic regarding the ac
quiring of banking knowledge. T h e
American Bankers Association, as many
of you know, through its Commission
on Public Education, prepared and dis
tributed for presentation a series of talks
on banking and elementary economics,
which was to be given before eighth
grade and high school students, and be
fore civic clubs, so as to popularize and
extend banking information. These have
been in use, though frequently revised,
for some twelve or thirteen years, and
have in many instances been well re
ceived. It would not astonish many of
you, however, that though it was service
offered to the public, with continuous in
sistence and care that the name of no
bank be used in connection with the
talks, that the banker was often accused
of being a propagandist.
N ow , however, the situation has
changed. T h e public desires information
and knowledge. It is hungry for it and
if the banker realizes his opportunity, he
will be ready to give the people what
they request. H o w then shall we pro
ceed ?
The forem ost essential, as has been
shown by the experience of the last three
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Federal Reserve Bank of St. Louis
years, is a trained, intelligent, informed
bank personnel. T h e banker in America
has for twenty-five years promoted bank
ing education for employes in banks.
T h e American Institute of Banking has
become recognized as one of the most
outstanding and 'one of the largest edu
cational institutions in the world. It is
efficiently doing a good piece of work
teaching practical, technical facts and
methods, but the one thing that the
banker has missed, in that training, is
the employe’s approach to the customer
— in other words, the employe’s part in
a bank’s public relations. T h e impor
tance of this has urged itself upon the
attention
of
bankers most
forcibly
through such incidents as the follow in g:
family, friends, and neighbors, had she
gone out of the bank without seeing an
officer— I leave to your conjecture.
If hile the inquiring customer has no
right to coiifidential information, he has
a right to be intellige7itly and truthfully
answered.
And the banker 7nust see
that he gets such answers.
An Incident
The
banker will continue his en
deavor to create ever sounder banking,
ever more honest, competent, and effi
cient management, as well as closer and
more effective public relations. Such a
banker is not to be without assistance.
Under the direction of D r. Stonier,
Educational Director of the A . B. A.
and the A . I. B. there has been prepared
a series of studies designed to be of as
sistance to banks in their public rela
tions. In the preparation of this material
your own Association cooperated hand
somely.
These studies are intended for use in
the individual bank. A n executive officer
should be charged with the responsibility
o f developing and fitting the course to
the bank’s immediate needs. Joining him
should be all those who come into con
tinuous contact with the bank’s public.
T h e studies include such subjects as:
Y ou r Customers and Y ou r Bank, W h at
W ill Y ou T e ll Y ou r Customers, T h e
N ew Customer, T rouble
Customers,
W h y the American Banking System,
Y our Bank and Other Banks, Y our
Bank as a Source of News, and Plan
ning Y ou r Public Relations.
A few months ago in a western city,
a prominent investment dealer came to
his death by falling from a high window.
His firm was a borrower in four local
banks, with loans totalling perhaps half
a million dollars. One of these banks, as
I know beyond dispute, had its $100,000
loan collateralized with adequate mar
gin. But I am getting ahead of my story.
O n the day after the broker’s death,
a woman depositor came into that bank
to transact some routine business. As the
savings teller made the appropriate en
tries she remarked, “ I guess M r. Soand-so’s death was quite a loss to the
bank, was it n ot?”
“ Oh, yes,” said the teller, who act
ually knew nothing whatever of M r. Soand-so’s relations with the bank. “ He
will be badly missed by this bank.”
“ H e was a heavy borrower here,” pur
sued the woman.
“ Yes, he had a good line of credit
with us,” the teller bluffed, unwilling
to admit that he knew absolutely noth
ing of the man’s borrowings.
“ I hear your bank w ill lose at least
half a million dollars on its loans to
him,” the customer continued.
It was now getting to the point where
the teller had to make a bold stand, or
disclose his ignorance. “ H u h !” he ex
claimed as he walked to the rear of his
cage, “ Y ou don’t know the half of it.”
Fortunately for the bank in those
skittish times, the thought of a million
dollar loss so overpowered the customer
that she simply had to have more details.
She scurried to the desk of the nearest
officer. W h a t might have been the con
sequences, to the bank and to the com
munity, of her carrying “ first hand” in
formation of the bank’s supposed loss, to
Employe of the Future
In the future, the employe of the
bank must be infinitely better able to
deal with public inquiries, to convince
an interrogating customer that the facts
are so - and - so, or to inform him that
the matter is out of his, the employe’s,
sphere, and courteously refer the custom
er to someone who can give the infor
mation.
T w o little urchins stood with their
noses pressed against a barber shop win
dow.
“ Gee, M ickey, look at that on e!”
said one, pointing to a barber wielding
a singeing taper. “ H e ’s looking for ’em
with a ligh t!”
“ I ’m planning to travel on one of
those stabilized steamships.”
“ It will cost you more.”
“ Maybe, but expenses aren’t what I
have to keep down on my sea trips.” —
Boston Transcript.
11
Central Western Banker, N ovem ber, 1933
An Analysis of Municipal Securities
"Taxpayers and bondholders should not be regarded as constituting
two opposite camps.
From the broader viewpoint their interests are
identical.
V E N T H E most conservative ex
pectation in regard to a return to
that happy condition usually re
ferred to as normalcy allows some hope
that many of the difficulties which mu
nicipalities are now encountering will
prove to have been of temporary nature.
It is reasonable, however, to believe that
the process of recovery w ill be selective
rather than general. T h e credit of the
more conservatively operated subdivi
sions could, I feel, respond very quickly
to any improvement in factors such as
collections. In some cases, current diffi
culties represent a culmination o f long
continued financial malpractice, and
where this is true it seems that the road
to restored credit necessarily must be a
long one. One of the most important
problems facing those interested in mu
nicipal obligations is that involving a
decision as to the category in which their
holdings fall. In arriving at such de
cisions, however, the broad basis of ap
praisal formerly relied upon is likely to
prove of small assistance. Obviously
analysis of current finances now consti
tutes the only effective approach. Thus
simply stated, this suggested change in
viewpoint does not seem to carry any
great significance; but, in my opinion, if
investors in municipal obligations are to
E
avoid losses in the future, a radical ad
justment in this respect is absolutely
necessary.
It may be thought that too much de
pendence should not be placed on cur
rent condition inasmuch as this possibly
may change over night. There is a cer
tain amount of truth in this, but my
feeling is that current accounts reflect
more than immediate problems. In fact,
I think these accounts constitute a very
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Federal Reserve Bank of St. Louis
The rights of the
bondholders equal those of
the taxpayer.
Financial re
form is needed on the part
of both"
By R. D A N TO N
Bank o f N ew York & Trust Co.
N ew York
good indication of the long term fi
nancial habits of a community. Further
more, in municipal finance as in other
lines of activity, good or bad habits once
formed tend to persist. In some instances
the record shows that, over a long peri
od, provision for all accruing liabilities
has been ultra-conservative. W here this
is the case even now it is likely that no
very serious problems w dl be present.
T h e further implication is that, if to
date a subdivision has been able to keep
itself in fairly good condition, the acid
test has been passed. In addition if the
financing of the ensuing year can reason
ably be foreseen, a very modest antici
pation of improvement in general condi
tions justifies an attitude of optimism.
Limited Temporarily
W h ile the private corporation may
face elimination of all balance sheet
assets, the tendency is for the troubles
of the municipality to be limited to tem
porary inability to realize on receivables.
In the first case the settlement may be
insignificant. W here municipals are con
cerned, however, the final realization is
likely to be substantial even though the
circumstances are highly unfavorable. In
my opinion failure on the part of in
vestors to appreciate these differences is
resulting in unjustified sacrifice of hold
ings which under any reasonable anti
cipation of general recovery eventually
will be paid both as to interest and
principal.
Municipalities are now fully concern
ed with obtaining a minimum amount of
funds with which to meet essential op
erating expenditures. It may therefore
be concluded that suggestions relating to
adjustments of current financial position
must continue to remain of academic
interest only. In my opinion, however, in
many cases the problem is one of con
ception and methods rather than a ques
tion of extracting additional cash from
hard-pressed taxpayers. Restoration of fi
nancial position should be regarded as
an adjustment to be conducted over a
substantial period of time. W h ile debts
cannot be paid over night, trends can be
changed. I believe in some respects
trends now may be of greater impor
tance than totals.
The Cause
Regardless of the exact cause of fi
nancial stringency, I think the following
program is indicated.
The fact should be squarely recog
nized that 100 per cent collection or fi
nancing is not to be counted on under
present conditions.
T oo much attention should not be
given to demands for tax reduction at
all costs. Continued solvency is of more
importance than a feiv cents off the tax
rate.
Reasonable economies should be made,
but savings should not immediately be
reflected in a reduced tax rate.
12
Central Hestern Banker, N ovem ber, 1933
Approximate maintenance of the levy
along with reduced expenditures will
mean that revenues accruing on the
books during the fiscal year will be sub
stantially in excess of cash disbursements.
T h e margin of assets available should
mean that the proportion of the total ac
cruing assets realized in the form of cash
w ill be sufficiently near to actual dis
bursements to the point of relieving the
subdivision of the necessity of substan
tially increasing its floating debt. T he
surplus of revenues shown on the books
should be disregarded other than as it
becomes available in the form of cash.
If action along these lines is under
taken, faith in the short term paper of
the community will be restored. T he
program outlined implies honest and
efficient management.
T he defaults and adjustments which
have occurred during the last few years
obviously are mainly responsible for the
disorganized market for municipal ob
ligations. In addition to repercussions of
financial break-down there is the further
prospect that legislation may be passed
which may substantially weaken the
legal security formerly associated with
these issues. T h e final outcome in this
regard is not yet at all certain, and,
therefore, definite comment cannot be
made. If it is a case of the subdivisions
having the unfettered choice of arbitrar
ily refusing to meet their obligations the
outlook would indeed be depressing.
H owever, the percentages of consent
contemplated impress me as affording
satisfactory protection.
Too Little information
In drawing to a conclusion I should
like to draw attention to one particular
difficulty facing the investor in munici
pal issues. Those interested in the work
of analysis w ill agree that in far too
many cases the difficulties of obtaining
information are quite as formidable as
any question of interpretation. D evelop
ments of the last few years indicate that
municipalities no longer have the right
to offer their issues on the basis of “ unquestionability.” T h e remedy is in the
hands of the investor. I see no reason
why funds should be placed in situations
on which reasonable information is not
available. A casual examination of re
cent offering circulars and literature
shows that improvement is taking place.
H owever, much remains to be done.
In presenting the foregoing consider
ations I have consciously refrained from
any attempt at dramatization. There is
a world of difference between the impli
cation of words such as deficit or default
used in a bookkeeping sense and their
practical translation. T h e collapse of a
great municipality cannot altogether be
described in terms of finance. T h e un
fortunate effect on the population and
employes equals in degree the hardship
falling on the bondholders to many of
whom continuance of income and safety
of invested principal are of vital im
G M A C SHORT TERM TROTES
available in limited amounts
upon request
G eneral
A cceptance
Executive Office -
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Broadw ay
OFFICES
IN
M otors
C o r p o r a t io n
at 57 t h S t r e e t
~ Xew Tor\, H- Y.
P R I N C I P A L
CITIES
portance. Taxpayers and bondholders
should not be regarded as constituting
two opposing camps. From the broader
viewpoint their interests are identical.
Municipalities on their part must recog
nize that apart from technical rights
the human rights of the bondholders
equal those of the taxpayer and in many
cases are just as insistent. Investors must
be willing to make sacrifices where it is
evident that the wide economic swings
which have occurred have destroyed ca
pacity to pay in full. T o the end that
mistakes of the past be not repeated, I
urge that increased attention be given to
financial reform both on the part of the
taxpayer and the bondholder.
The Public is Still
The //Big Boss77 of Banking
(C ontinued from page 6)
lie is unable to distinguish it from a bad
bank. A nd it make little difference how
excellent are the plans devised to im
prove banking unless the public can be
brought to approve. T h at is our job.
And history has proven beyond doubt
that, if a sound idea is placed intelligent
ly and consistently before the American
people for a period of time, that idea
will be generally accepted.
After the Shouting Dies
Even some of us may feel that as soon
as public clamor dies down we can go
back to our job of selling our own bank’s
services. Yes, to a certain extent. But,
if bankers concede that public education
is essential to sound banking, and that
good banks owe it to the community to
see that only sound banking eventuates,
then our own executives w ill see to it
that we spend a part of our time for the
next several years in promoting the ac
ceptance of better banking.
This movement is both individual and
cooperative. Each banking unit must be
worthy, but it is through the coopera
tive efforts of banks that public opinion
will be cultivated. I cannot foresee just
what forms this cooperation may take,
but that make me no less sure of its ne
cessity and desirability. T his sort of co
operation has been the vital spark which
has kept our association intact and in ac
tion. But I think, too, we have a blind
spot, for we have failed to carry this
same spirit into our relations with other
banking groups. I am firmly convinced
that our own group cannot hold itself
aloof as a self-sufficient body, indepen
dent o f the parent organizations; on the
contrary, it is one of our weaknesses.
Central Western B a n k e r Noveniber, 1933
Public relations is warp and w oof a part
of banking— and a major part. I am
afraid that the psychological effect of our
independent existence is bad, instead of
good, for I think it tends to confirm
the impression that we are mavericks in
the banking field.
I could wish that the principal aim
of our association from now forward
would be integration with such bodies as
the American Bankers Association, the
Association of Reserve City Bankers and
such others as would afford mutual bene
fits. I believe this can be attained with
out impairment of the effectiveness of
13
governmental principles. And this would
be especially true in the case of the pub
lic utilities.
The Future of
Utility Regulation
In an exceptionally interesting ad
dress, Professor Philip Cabot of H ar
vard, analyzed the effect of recent emer
gency legislation as applied to the public
utilities.
It is his opinion that the emergency
legislation was both necessary and wise
— if the fact that it really was emer
gency legislation is not lost to sight. As
a permanent policy, he believes it would
be disastrous to our institutions and our
T he astonishing progress of the utility
in America has been largely the result
of centralization of control within the
state each company serves. Commissions
have been set up which are intimately ac
quainted with local conditions and pro
blems— which
are
often
drastically
different from those obtaining a few
hundred miles away— and are thus best
able to cope with them. Federal regula
tion, even at its best, must operate by
rule of thumb which is applied without
our present effort, and I am sure it
would raise in the minds of bankers the
stature of the job to which we have dedi
cated ourselves.
'Grave days lie ahead.
W e are not
through with legislative changes, nation
al or state; the map of finance is still
undergoing major alterations; the public,
while it has ceased to bite, is still grow l
ing and suspicious. T here is ample work
to be done, and ours is not the least in
importance. It will take all of the intel
ligence and experience and patience we
can command. Success w ill not be an in
dividual, so much as a community, mat
ter. M ay we be given the strength to do
our share.
A t Top Speed
Barney Schneckloth, supervisor of
personnel of the Federal Land Bank of
Omaha, was the principal speaker at
the recent meeting of the real estate
board of Sioux City, held in the Elks
Club. H e explained the various oper
ating units of the bank and the set-up
the administration hopes to complete.
H e stated that the Omaha bank was
closing loans at the rate of 45 per day
at this time, and with appraisals already
made, hoped by November 15th to at
tain the record of closing 100 loans per
day, and by December 1st, 200 per day.
T h e force of appraisers has been in
creased from 12 on M arch 1st of this
year, to 312 at the present time. M r.
Schneckloth left no doubt in the minds of
his hearers that the Federal Land Bank
was functioning at maximum capacity
and the voluminous preliminary work
necessary to the negotiation of such a
great number of loans will soon be re
flected in the daily record of completed
loans.
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Federal Reserve Bank of St. Louis
It must be pleasant news indeed that brings a
smile to the harried auditor, as he checks over
sales costs. Such news is often supplied by the
use of the Long Distance telephone in selling.
For example, the Consolidated Products Com
pany— dealer in industrial machinery— adopted
a telephone selling plan. Within one year, approx
imately $300,000 worth of machinery was sold
by telephone— annual sales were increased 6%
— selling costs were decreased 10%.
Telephoning costs little — look in the front
pages of your telephone book for typical out-oftown rates.
Central Western Banker, N ovem ber, 1933
14
deviation to all companies in all states.
It is an example of remote control,
through which a bureau in W ashington
dictates policies which must be followed,
even when they are in direct opposition
to what a state commission, in constant
touch with its territory, knows to be in
the public interest.
W e have a classic example of this, as
M r. Cabot points out, in the case of the
railroads. T h ey found themselves in a
vise which they could not escape. Fed
eral regulation caused them increased
expenses and reduced revenues. Federal
competition from subsidized water car
riers appeared. And the upshot is that
the government must lend them millions
to save them from bankruptcy, which
would mean a tremendous tax loss to
the government.
It is M r. Cabot’s belief that Federal
regulation of utilities will inevitably
impair their growth— and will deprive
the states of millions that would other
Guaranty Trust Company
of New Y ork
140 Broadway
Fifth Avenue at 44th St.
LONDON
PARIS
BRUSSELS
Madison Avenue at 60th St.
LIVERPOOL
H AV R E
ANTW ERP
CONDENSED ST A T E M E N T , SEPTEM BER 30, 1933
RESOURCES
Cash on Hand, in Federal Reserve Bank,
and due from Banks and Bankers....................................... $
U. S. Government Bonds and Certificates.............................
Public Securities ............................................................................
Stock of the Federal Reserve Bank.........................................
Other Securities ..............................................................................
Loans and Bills Purchased...........................................................
Real Estate Bonds and Mortgages...........................................
Items in Transit with Foreign Branches...............................
Credits Granted onAcceptances...................................................
Bank Buildings ................................................................................
Accrued Interest and Accounts Receivable...........................
188,929,109.20
485,239,835.23
76,692,283.22
7,800,000.00
24,587,525.77
539,174,100.08
2,403,520.17
7,972,507.99
94,064,946.82
14,133,359.38
8,409,195.83
$1,399,406,383.69
LIABILITIES
Capital .............................................................. $ 90,000,000.00
Surplus Fund ................................................. 170,000,000.00
Undivided Profits .........................................
7,963,616.16
$
Accrued Interest, Miscellaneous Accounts
Payable, Reserve for Taxes, etc.............................................
Acceptances ......................................................................................
Liability as Endorser on Acceptances and
Foreign Bills ..............................................................................
Deposits ......................................................$1,007,638,346.77
Outstanding Checks ...............................
23,373,957.25
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Federal Reserve Bank of St. Louis
wise be received in utility taxes. T hat is
the state’s side of it. Fie believes it will
lower, and perhaps in some cases elimi
nate entirely, the security of utility in
vestors. T hat is still another side. From
the customer’s side, he feels the result,
if regulation follows the precedent set
in the case of the railroads, will be
poorer service and an industry which is
much less responsive to the needs of the
public.
Federal regulation, as M r.
Cabot
says, must deal in generalizations. T he
whole nation must be sprayed with a
fire-hose, without regard to whether any
particular locality needs water or sun
shine. And there w ill be a drought in
one place while there is a flood in
another.
Thus, the public must be constantly
on the alert in remembering that emer
gency legislation is one thing, and a per
manent policy another.
267,963,616.16
6,183,130.69
94,064,946.82
182,386.00
1,031,012,:
$1,399,406,383.69
Need for
Cooperation Grows
T h e farmer who believes that because
government is seeking to do certain
things for him, he need do nothing for
himself, might ponder these words of
G overnor Henry M orgenthau, Jr., of
the Farm Credit Administration: “ I
believe in cooperation both as a way of
advancement and as a necessity for the
American farmer. I don’t believe any
new form of economy or new regulation
of production will ever make it less nec
essary. It is more likely to increase the
importance of it.”
Agricultural cooperation means that
the farmer, in association with his fel
lows, is taking definite steps to help him
self— and is adopting the soundest and
most proven means of achieving a given
end. T h e government itself recognizes
that— and the careful reader of recent
farm legislation w ill be impressed by the
emphasis laid on cooperative methods.
Indeed, M r. M orgenthau says that the
new system amounts to a chain of banks
going to help by providing necessary fi
nancing, and the rest is up to organized
farmers.
During three years of depression the
membership rolls of the established co
operatives have constantly grown. D u r
ing the next few years— the years of re
covery— their rate of growth should be
immensely accelerated. If that happens,
and all indications are that it will, ag
riculture faces a bright future.
Central Western Banker, N ovem ber, 1933
15
N SU R A N CE
Application to the Banking Fraternity
During the year 1 9 3 2 , life insurance companies paid out more money than the
average capital stock of every national bank in Am erica"
L IF E IN S U R A N C E
A nd Its Contribution to America
O T I N F R E Q U E N T L Y a ti
rade is delivered or a paper
written condemning alleged un
conscionable practices of life insurance
companies. T h e paramount sin with
which the companies are charged and of
which they have been guilty is the
amassing of vast reserves. T h e institu
tion of life insurance, the agitator says,
was properly conceived to build a death
fund, a sum of money to be paid to the
insured’s family upon his death; that the
only purpose of injecting cash and loan
values into life insurance contracts was
to amass monumental sums in the hands
of executives for their personal gain.
Political mugwumps and alleged states
men, through ignorance or desire for
political aggrandizement, have gone so
far as to introduce bills in legislative as
semblies to prohibit cash and loan values.
N
America a Leader
M erit of the present day life insur
ance contract needs no defense in this
group. America is the leader in life in
surance as in other industries. T h e total
death liability of insurance contracts in
force in this country aggregates some
thing like one hundred billion dollars, or
the equal of an approximate one-third of
all the property of every kind and char
acter, tangible and intangible, found
within the United States. If the insured
all should die at one time the great in
surance companies would issue an S
O S in vain. Similarly, if all of the in
habitants of this country desired to ride
by rail on tbe same day there w ouldn’t
be enough trains. O r, if all the obliga
tions of American citizens came due on
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Federal Reserve Bank of St. Louis
R E M A R K S of J ames A . Rodman,
chairman of the executive com
mittee of the Omaha Chamber of
Commerce, at a recent meeting of
that organization. Mr. Rodman is
president of the American Thrift
Insurance Company of Omaha
the same day there w ouldn’t be enough
money in circulation to pay them. T he
answer is that none of these things will
happen.
W h at is the test of strength of a great
financial institution. T o meet its obliga
tions in normal times? N o. If measured
by that rule there would be but few fail
ures in business of any character. T h e
test is found in abnormal times. Bank
guarantee funds worked admirably when
there was no distress in the country. T he
system uniformly failed when the coun
try was depressed.
A Tremendous Sum
If I were to say to the average group
of citizens that the life insurance com
panies of America paid out to the public
six billions of dollars during the three
depressing years of 1930, ’31 and ’ 32,
would they comprehend the vastness of
the sum involved I wonder if there isn’t
some better way to say it than using a
round number of dollars.
There are thirty-one million men, w o
men and children living on farms in the
United States. 1 he world almanac tells
us that there are nearly fifty million
people in the United States directly or
indirectly engaged in agriculture and
dependent on it for their livelihood. Last
year the total revenue for the entire
effoit of ail persons engaged in farming
m the country was less than five billion
dollars. W heat is regarded as a very im
portant factor in the food stuffs and in
the economic set-up in this country, im
portant enough to call for international
conferences, important enough to threat
en the wellbeing of a nation. M ay you
well be surprised when you learn that
in the first fifty days of 1932 the life
insurance companies paid out to their
patrons a sum of money more than equal
to the value of the entire wheat crop
raised in America in 1932. In M arch
and April they paid a sum greater than
the value of all beef slaughtered in the
United States in 1932. In the month of
M a y they paid a sum equal to the value
of all the potatoes eaten in the country
fo r the year of 1932.
If someone 1870 years before the birth
of Christ had deposited one dollar and
another dollar had been deposited with
it every minute of every hour of every
day fiom that time until this day the
aggregate sum deposited would almost
equal the sum of money paid out by
American life insurance companies in
the year of 1932.
W ith every tick of the clock through
out the twelve months of the year
$70.00 was paid to relieve distress.
D uring the year of 1932 the com
panies paid out more money than the
aggregate capital stock of every National
Bank in America.
Central Western B a n k erN o v em b er, 1933
16
Payments as Usual
1345 banks failed in 1930; 2298 in
1931 and 1404 in 1932 and yet the in
surance companies kept right on paying
for the relief of a sick America— $150,000 every hour of every day and of
every night. Stock markets broke in the
country. Stocks which had been selling
for dollars were being sacrificed for
dimes. In the absence of this master ser
vice from this master service station this
nation would at the end of the threeyear depressing period have been a
wreckage of national hopes.
W h en the moratorium was ordered,
providing for limiting payment of funds,
fear was expressed everywhere not only
for our life insurance institutions but
for all institutions. T h e moratorium
amounted in fact to but a brief breath
ing spell, giving the huge giant time to
recount his assets, found them not
wanting and went on paying to the
American public six million dollars a
day as previously.
Life insurance is a public and private
safety valve. It still provides a great har
bor of protection in time of national
calamity. It still is the safeguard against
old age. It still is the medium of pro
tection to one’s dependents, a lighthouse
in time of storm.
Life Insurance
Compliments the President
A t its recent annual convention, the
National Association of Life Under
writers adopted a strong resolution in
favor of a sound currency, and compli
mented President Roosevelt on the re
sistance he has shown toward attempts
to foist untried monetary experiments on
the government.
T h at resolution is a very important
document. T h e Life Underwriters who
were present represented local associ
ations in every state. Through
their
efforts more than 65,000,000 persons
have purchased insurance totaling over
$100,000,000,000, protecting 20,000.000 families. T h e security for this is
government bonds, first rate industrial
securities, farm and real estate m ort
gages and similar investments whose
value depends upon the state of the
national currency.
Cheapening the dollar, through the
issuance of printing press money, would
endanger every policyholder— precisely
as it would endanger every investor in
government or other bonds. It would
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Federal Reserve Bank of St. Louis
be a direct blow at the thrifty and the
foresighted — every unsound dollar is
sued would lower the purchasing power
of every sound dollar. And, at first at
least, those who would profit most
would be the speculators.
M r.
Roosevelt’s stand has been a
heartening one. Though terrific pressure
has been brought to bear on him, it it
becoming known that he is definitely op
posed to inflation through the printing
press route. M illions of American citi
zens are applauding— and hoping that it
w ill be his permanent policy.
Don’t Economize with
Publ ic Safety
T h e kind of “ economy” that en
dangers a city’s safety is false indeed.
T hat is the message in a brief article
by L. S. Gregory, Assistant Secretary,
Fireman’s Fund Group. H e is in a posi
tion to know. During the past few years
a great many communities have gone in
for “ economy” where it is most danger
ous— by lessening appropriations for the
fire department.
M r. Gregory cites a case in a large
Southern city, where the firemen, in
fighting a blaze in a manufacturing
plant, could do almost nothing because
the hose was so old that it could not
stand normal water pressure. T hey were
able, through a fortutous circumstance,
to borrow new hose from a private con
cern. Otherwise a conflagration might
have resulted.
In another city, cuts in fire depart
ment appropriations necessitated laying
up the fire boat. W h en a water-front fire
broke out the city was confronted by the
ludicrous spectacle of a handful of fire
men in a row boat attempting to pull a
line out from shore to control the fire!
It is probable that most cities and
towns have economized principally in
the matter of fire apparatus. O ld engines
are allowed to keep on in service when
they are outmoded and inefficient, or are
in need of repair. N ew engines which are
vitally needed are not purchased. A few
thousand dollars is “ saved” — and mil
lions of dollars and a multitude of lives
are endangered.
T h ere’s no worse place to cut costs
than the fire department. And there’s no
better time to improve the department
than right now. T h e Federal govern
ment is making exceptionally favorable
loans to cities, 30 per cent o f which is to
be an outright gift, for needed public
works. N o “ public w ork ” is more val
uable to every citizen than an A -l fire
department.
Build ing Boom Started
Figures show that the long awaited
residential construction boom is begin
ning to make itself felt. During the first
half of August, construction of this type,
as reported to F. W . D odge Corpora
tion, totaled $10,876,000 as against $8,812,300 for the same period last year—
a gain of 23 per cent. T his marked the
fourth consecutive month in which ad
vances were made over the comparable
months in 1932.
For a number of years there has been
a definite home shortage in America—
for at least three of those years building
was virtually at a standstill, and exist
ing structures were subjected to more
than usual depreciation, because of in
attention to needed repairs. T his wasn’t
due to lack of desire. It was due princi
pally to lack of funds in thousands of
families, and to a psychology of fear that
prevented others, having ample funds,
from spending. T h e first class is re
turning to its jobs now, and regular pay
envelopes are brought home on Saturday
nights. T h e second is discovering that
rising prices will shortly make it im
possible to obtain new buildings or to
improve old ones at bargain prices. And
both classes are going into the market
for better living quarters. Still another
beneficial influence is the Hom e Ow ners’
Loan Corporation, which makes possible
home financing that could not otherwise
be obtained.
Yes,
there’s every indication
that
w e’re on the verge of a m ajor building
revival that w ill be particularly striking
in the residential field. A ll who can
should aid the relief program by taking
advantage of low prices for land and
material.
Boulder Banker Dies
J. E. Chenault, 85, retired Boulder
banker, died at his home in San Diego,
Calif., recently. M r. Chenault was in
the mercantile business until 1900, when
he obtained the controlling interest in
the First National bank of Benton, 111.
In 1910 he bought control of the M e r
cantile Bank & T rust company of Boul
der, and moved to Colorado.
Central Western Banker, N ovem ber, 1933
17
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N ebraska
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Discuss Deposit Plan
T w o hundred members of the Nebras
ka Bankers association met recently in
Lincoln for a discussion of the feasibility
of state banks taking advantage of their
option to participate in the federal depos
it guaranty plan.
T h e plan is set out in the banking act
of 1933, more familiarly known as the
Glass-Steagall bill.
W illiam B. Hughes, secretary of the
association, said that no general decision
was made, nor was there any marked ex
pression of opinion among the member
ship. T h e nature of the meeting, he
said, was purely instructional.
A . B. W ood , Bartley, chairman of the
association’s special committee of state
banks on the banking act, presided. O th
er members of the committee are L. C.
Farwell, DuBois, and L. R. Coufal,
Howells.
Named Chairman
T h e appointment of W . Dale Clark,
president of the Omaha National bank
as chairman of the advance gifts com
mittee of the Omaha Community Chest
eleventh annual campaign, October 31
to November 9, has been announced by
W . F. Cozad, general chairman.
“ W e look upon M r. Clark’s accept
ance of this difficult post as extremely
fortunate for the forthcoming cam
paign,” said Chairman Cozad.
T his is the second year that M r.
Clark has held this post.
Choose Officers
Stockholders of the W inside Citizens
State bank met recently to choose di
rectors in anticipation of reopening. T he
follow ing were named: G . G . Haller,
G . A . Mittelstadt, Henry Fleer, John
Drevson of Hoskins, and M rs. Cora
Schmode. T h e directors met and named
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Federal Reserve Bank of St. Louis
these officers: President, G . G . H aller;
vice president, G . A . Mittelstadt, and
cashier, O . H . Olson.
Trade Upturn
A prediction that business will soon
increase in the Omaha trade territory
was made last month by F. H . Davis,
president of the First National bank of
Omaha.
H e said business is now definitely on
the upgrade and expects to see much bet
ter conditions generally after Jan. 1.
M r. Davis said corn is three times as
high as a year ago, and that the price of
wheat is much higher now than a year
ago.
H e cited the instance of a farm which
he recently sold, stating its receipts for
this year w ill be four times as much as
last year.
ratio established between the prices of
the products of industry and agriculture.
Credit w ill be established on a sound
basis, and this can never be done unless
the debtor can depend on being able to
pay his debts with the same amount of
commodities or labor which would have
discharged the debt when made.”
W ant Federal Funds
Plans for aiding restricted state banks
in Nebraska to obtain funds from the
federal reconstruction finance corpora
tion by issuing debentures against their
earnings as security have been vetoed at
W ashington, and a new scheme is now
being formulated to accomplish the same
thing in another way.
T h e revised proposal is that banks
shall issue preferred stock for sale to in
dividuals, and that the purchasers will
then deposit this stock as collateral se
curity for loans to the banks by the re
Unrestricted
construction finance corporation.
C.
R. Anderson announces that the
State Bank Superintendent Luikart
Farmers State Bank of Saronville opened
has conferred on this plan with Attorney
for unrestricted business on O ct. 2. This
General G ood and Frank Matthews of
bank has been in business over 40 years
Omaha, Nebraska counsel for the fed
and no depositor has ever lost a dollar
eral corporation. T h e attorney general
entrusted to its care. It is paying 100
holds that it can be follow ed under the
per cent on all deposits.
state’s constitution and laws.
M r. Anderson says, “ W e think that
Because of the provision in Nebraska’s
President Roosevelt will bring about a
constitution that holders of bank stock
new system of business and banking
shall be subject to double liability, the R.
which will prevent the disastrous changes
F.C . refuses to buy preferred stock which
in price levels which are the cause of
banks here might issue, although it is do
most of the banking troubles and also
ing so in other states where that rule
stop unscrupulous men from forming
does not apply. However, if the owners
combinations and through misrepresenta
of such preferred stock are willing to
tions filch billions of dollars from the
pledge it as security for federal loans, the
people of the U . S., through the sale of
corporation stands ready to advance
worthless securities and also maintaining
funds that w ill assist in putting restrict
prices on industrial products out of any
ed banks back on an 100 per cent basis.
reasonable proportion to the prices paid
Meet in Auburn
for agricultural products and labor.
“ T h e time w ill soon come when more
Representatives of the banks of N e
fixed prices will be the rule and a fair
maha county met in Auburn recently and
Central Western Banker, N ovem ber, 1933
18
held an important session. T h e purpose
was to discuss the bankers’ code under
the N R A and devise ways and means of
complying therewith.
Other problems
that confront the bankers were also con
sidered.
Entertains Associates
G w yer H . Yates, president of the
United States National bank, Omaha,
was host last month to executive officers
of Nebraska banks affiliated with the
Northwest Bancorporation, at a lunch
eon and “ get-together” meeting in the
Paxton hotel.
acted as chief officer in the liquidation
of a bank which paid its depositors 100
cents cn the dollar and closed its affairs
with a remarkably small loss.
Omaha Business
Upturn in business in Omaha in indi
cated by a 3.6 per cent gain in bank
clearings, 28.8 per cent gain in grain
shipments and 34.8 per cent in livestock
receipts over a year ago, according to fig
ures compiled by the chamber of com
merce.
Bank debits, building permits
and grain receipts showed a decline.
To Washington
Hauge Resigns
Resignation of A . O . Hauge of Des
M oines as a director of the Federal
Land Bank of Omaha, was announced
recently by Lieutenant Governor Nels
Kraschel.
Kraschel said the resignation, effective
immediately, was given to him by Hauge
and H auge’s attorney, C. B. Hextell,
and has been forwarded to Henry M orgenthau, jr., federal farm credit gov
ernor.
Cashier in Paxton
J. G . Doherty has been employed by
the Bank of Paxton to fill the vacancy
caused by the retirement of F. M . Farr.
M r. Doherty comes from Ogallala,
where he has been living for the past two
years. Previous to that time he was em
ployed at Berthoud, Colorado, where he
C. G . Reynolds, North Platte, for
merly with the farm credit administra
tion at Omaha, has gone to Washington
as a national bank examiner.
He is
brother-in-law of
former
Governor
Keith Neville.
Bank Examiners
OMAHA
Statement o f Condition, September 30, [1933
3,758,424.55
L IA B IL IT IE S
Capital _______________________ $ 450,000.00
100,000.00
Surplus ........................—............
63,843.29
U ndivided Profits -------- ---- ----12,039.59
U nearned Discount ___________
Reserved fo r Taxes,
25,101.95
Interest, etc. ___________ ___
Dividend Payable Sept.
6,750.00
30, 1933 __________ _________
Deposits:
Public Funds—
Secured ___ $ 232,465.32
Other Deposits 4,690,840.18 4,923,305.50
$5,581,040.33
$5,581,040.33
$1,693,697.19
Bonds and Securities _________
63,417.59
16,500.00
Stock in Federal Reserve Bank
Banking H ouse _______________
49,000.00
None
Furniture and F ix tu r e s ______
1.00
Other Real Estate__ ___________
U. S. G ov’t
Securities ____ $1,920,132.87
Cash, Sight Exch.
and Due from
Fed. Res. Bank 1,838,291.68
Securities D eposited with Federal R eserve Bank and U. S. G overnm ent to S ecure Public
Funds as R equired by Law
PAR
VALUE
C A R R IE D
ON B O O K S
M ARKET
VALU E
U. S. 4th 4J4 Liberty— 1933-38 ____________ $260,000.00
City o f Omaha 4 ^ — 3-1-1936------ -----5,000.00
$262,210.00
5,000.00
$267,475.00
5,100.00
$265,000.00
$267,210.00
$272,575.00
This Bank Has NO Affiliated Companies
M em ber o f Federal R eserve System end Omaha Clearing H ouse Association
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Federal Reserve Bank of St. Louis
Charles Finegan, cashier of the Bank
of Hyannis, and a director of the Re
gional Agricultural Credit Corporation,
spent some time in Omaha at the cor
poration’s office as a member of the sen
ior loan committee. T he corporation re
ports some pickup in feeder loans and
also reports that many borrowers report
better crops than they had expected ear
lier in the year.
Examiner
Lyman Sorenson, son of M r. and
M rs. Hans Sorenson of Hartington, was
recently appointed national bank exam
iner, with headquarters in Des Moines,
Iowa. M r. Sorenson, who got his start
in the First National bank of Harting
ton, has been in the Illinois state banking
department in Chicago for the past three
years. H e was also with the Nebraska
banking department at one time.
Unrestricted
Congressman T e rry Carpenter has
recommended two men, Herb Hardin,
formerly a resident of Scottsbluff, now
residing at Omaha, and Deputy Land
Commissioner J. H . W eh n of Bridge
port, as federal bank examiners.
T h e appointments w ill be made by
President Roosevelt, it is stated, their
need coming with the new system of all
national banks coming under a federal
guaranty law. It is not known who will
receive the appointments, but Congress
man Carpenter favors the Nebraska men.
LIVE STOCK NATIONAL BANK
RESOURCES
On Loan Committee
T he Farmers State bank of Pickrcll,
which has been closed since the bank hol
iday, opened recently on an unrestricted
basis, it was announced by F. L. Pothast,
cashier.
To Open in Hastings
Examiners for the Reconstruction F i
nance corporation have begun inspection
of assets of the closed Nebraska Nation
al bank of Hastings in connection with
plans for reopening of the bank by pur
chase of its preferred stock by the federal
corporation.
G.
R. Buckner and G . R. Froelich,
examiners for the R F C , began examina
tion of books of the defunct institution.
T he reorganization plan was approved
by the reorganization division of the
comptroller’s office at W ashington. U n
der the contemplated arrangements for
reopening the institution, the R F C
would purchase approximately $50,000
worth of the bank’s stock.
County Meeting
T he Cass County Bankers association
met recently at Elm wood, where they
were guests of the two banks of that
city, the Elm wood State and the Am er
ican Exchange banks.
T h e occasion was one of the most
pleasant in a long series of successful
meetings and all who attended were loud
in their praise of the hospitality afforded
them by the residents of Elmwood.
One of the outstanding features of
the meeting was the address of J. R.
Central Western Banker, N ovem ber, 1933
Cain, Jr., of the Omaha National bank,
Omaha, who spoke on “ T h e Glass-Steagall Banking B ill.” T h e speaker dis
cussed the measure enacted by the last
congress and which embodied many of
the ideas of Senator Carter Glass, one of
the authors, former secretary of the
treasury and financial expert. M r. Cain
urged the united support of the people of
the nation behind President Roosevelt
regardless of station or political creeds,
that in this action lay the only way out
of the present chaos and depression that
had gripped the country in the last years.
T h e association at its session also
named the officers for the ensuing year,
as follow s: President, H . A . T o o l, M u r
dock ; vice president, O . C. Hinds,
W eeping W a te r; secretary - treasurer,
Frank J. Dom ingo, W eeping W ater.
To Join Federal Reserve
Up to O ctober 14, a total of 44 N e
braska state banks had applied for en
trance into the federal reserve plan for
guaranty of deposits. T here is a total
of 241 state banking houses eligible to
apply, according to W . H . Donahue,
federal supervisor for Nebraska.
In all, 13 examiners and assistant ex
aminers to work under Donahue have
been designated. T hey are :
Fred Allen, Pawnee C ity; Anthony
Barak, Petersburg; J. K. Friedebach,
L in coln ; Richard Hadley, Hastings; J.
E. Nicholas, V alley; C. M . Reynolds,
O m aha; M . K. Van Horne, Lincoln,
and George W halen, Lincoln, examiners.
W . N . Hurd, Pueblo, Colo., and T . J.
Kastle, Jr., of North Bend, assistant ex
aminers, and J. W . M orrisey, Kansas
C ity; Frank Nelson, Hastings, and C.
T . Rafter, Cheyenne, W y o ., national ex
aminers appointed but not called.
Bring Him Back
Requisition papers for the return of
Charles Dotson to Nebraska to face
charges of complicity in the robbery of
the First National bank of Y ork have
been issued by Governor Charles W .
Bryan.
Dotson is suspected of participation in
the bank holdup of last Sept. 20, in
which approximately $10,000 was se
cured. H e is now in custody of author
ities at Muskogee, where he is being held
in connection with a number of O kla
homa robberies.
A. E. Carter, Y ork county sheriff, was
named by Bryan to act as agent for N e
braska in returning Dotson.
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Federal Reserve Bank of St. Louis
19
Joe Harris, also arrested at Muskogee,
pleaded guilty to participation in the
Y ork robbery.
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Consolidated
A new bank, the Security National,
has opened its doors for business in Kan
sas City, thereby marking a new step in
Kansas City banking history.
T h e Security National bank is a con
solidation of the Peoples National bank,
whose quarters it will use, and the Se
curity State bank.
Announcement of the merger is ac
companied with a statement that all de
positors’ accounts and other business
transactions of both banks will be trans
ferred without change in status to the
new Security National bank.
M aurice L. Breidenthal is president
of the new financial institution. Claude
L. W ilson is the cashier.
Named Director
H . E. Heidrick has succeeded the late
D . H . T h ierolf as a member of the
Guaranty State Bank, Beloit, board of
directors.
M r. Heidrick is a Beloit man, a
graduate of the local high school, and
has efficiently served as assistant cashier
of the bank since 1922. For some time
previously M r. Heidrick was employed
at the old American State bank.
Hutchinson Meeting
H.
M . Reed, president of the First
State Bank of Larned, was elected chair
man of Group Seven of the Kansas
Bankers Association at its closing session
held in Hutchinson.
T he bankers also selected Larned for
their 1934 meeting place. Leo Brown,
cashier of the First National Bank of
Larned was elected secretary.
T h e total registration at the meeting
in Hutchinson was 501, the largest
group meeting in the state. T he session
was climaxed by a dinner and dance at
the Hutchinson Country Club.
Resigns
President F. D . Carman, of the Bank
of Herington, received a letter recently
from M . E. W elch, who was visiting
relatives in Ohio, containing his resig
nation as vice president and cashier of
the bank.
For a number of years M r. W e lch ’s
health has been bad and he has expressed
a desire to be able to spend more time in
the open. Apparently his sudden decision
to resign was brought on by his old
trouble.
M r. W elch has been connected with
the bank for over thirty years.
Group Nine Meets
October 5th was a big day for the
bankers of Group Nine of the Kansas
Bankers Association when they met in
M ontezum a for an all day meeting. Due
Y u UR
C A PITAL C ITY
CORRESPONDENT
C
o ntinental
N
atio nal
LINCOLN, N E B R A SK A
B
ank
Central Western Banker, N ovem ber, 1933
20
to the fact that two national congress
men and one state senator were on hand,
the bankers received some first hand in
formation on what the state and national
governments are doing for banking. T he
congressmen were Harold M cG u gin of
the southeast part of the state and C lif
ford Hope of Garden City. T h e state
senator was J. C. Denious of Dodge
City. A ll of these men gave good talks
on banking problems of today.
Pioneer Dies
Luther N . Lewis, 68 years old, vicepresident of the Peoples State bank and
active in Lawrence business circles since
1885, died suddenly at his home. Death
was due to a stroke.
M r. Lewis attended the Lawrence
public schools and the University of
Kansas, and about 1885 entered the
lumber business with his father. T h e
elder Lewis died in 1905 and in 1909
the son sold the business. H e was con
nected with the organization of the Peo
ples bank and had been connected with
the institution since its beginning.
Meet in Russell
Upwards of 300 visitors and bankers
of the counties of Ellis, Graham, N or
ton, Phillips, Rooks, Russell, Smith,
T rego and Osborne were in Russell re
cently for the 1933 meeting of Group
Six of the Kansas bankers Association.
Added to these were officers of the Kan
sas Bankers association, officials of the
Kansas banking department, represent
atives from correspondent banks in Kan
sas City, and bankers and others inter
ested in banking from outside the district
comprising Group Six.
Elected President
A t a recent meeting of the board of
directors of the Citizens State Bank of
Ellsworth, S. A . M cM an es was elected
president of the institution to succeed the
late Robert Allan.
M r. M cM an es is the oldest son of
Henry M cM anes, who was president of
the bank from its organization to the
time of his death. M r. Allan succeeded
Henry M cM anes.
S. A . M cM anes, familiarly known to
friends throughout the state as Sam, fo l
lowed the footsteps of his father in ac
cumulating wealth as a successful cattle
man. His election thus retains in an offi
cial capacity the family that has made
the Citizens State Bank one of the sound
institutions of Central Kansas.
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Federal Reserve Bank of St. Louis
Merger
T h e Burr Oak State bank has absorb
ed the Jewell County National bank. J.
P. Fair is president of the Burr Oak
State.
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Resigns
Clarence Burr, assistant Cashier of
the National State bank of Boulder, has
resigned his position with the bank and
is at present in North Park.
M r. Burr is to look after a large
ranch there that is part of the estate of
his father-in-law, the late D r. Jones of
Oklahoma.
Secretary of the Interior Oscar L. Chap
man of Denver.
To Reopen
Four Colorado banks, which have
been in charge of conservators, w ill be
reopened, according to dispatches re
ceived from W ashington. T h e Colorado
institutions to be opened as soon as possi
ble on an unrestricted basis are the First
National Bank of Boulder, Grand V al
ley National bank, Grand Junction; La
mar National bank and First National
bank of Paonia. It is estimated that
opening of the banks w ill release about
$2,000,000 in assests.
Speed Up Loans
J. O . W ells of Colorado Springs,
director of the Federal Land bank at
W ichita, and who is also serving as sec
Cashier Dies
E.
W ilkes Dinwiddie, 54, long time retary for three farm loan associations,
has returned from W ichita, where he
bank cashier of Grand Junction and
had been attending the regular monthly
widely known in banking circles thruout
meeting of directors. H e was accom
the state, died recently from a throat
panied by F. C. Page, a prominent
infection.
rancher of the Fountain valley in the
D r. Dinwiddie came to Grand Junc
Springs area.
tion in 1900 and for many years had
W ells stated that the bank now has on
been cashier of the United States bank
file 26,000 applications for loans from
of Grand Junction. H e leaves a wife and
the four states of Colorado, Kansas,
son, Huston.
Oklahoma and N ew M exico. A t present
156 appraisers are struggling to catch
To Get Loans
up with the work and shortly a total of
Loans asked by El Paso county far
200 appraisers w ill be in the field. It is
mers from the federal land bank are
expected that the backlog of applications
nearly ready to be made in many in
w ill be cleared out of the way by D ec.l
stances, J. H . M iles, agent there for the
and beginning then the bank w ill be able
bank announced recently. M oney should
to
keep up with the current business
be forthcoming to the farmers shortly.
promptly.
Loans being sought range from $1,000 to $6,000, and are made on land
and chattels by the bank. Loans also are
made of second mortgages by the federal
land commission.
Farmers whose property has been
foreclosed on since July, 1931, are eligi
ble for loans.
Arbitrary Rulings
Colorado’s protest against arbitary
land bank rulings which are making it
impossible for hundreds of farmers in
this state to get loans they otherwise
would be entitled to, have been carried
directly to Secretary of the Interior
Ickes and to Henry Morgenthau Jr.,
governor of the farm credit adminis
tration.
Congressman Edward T . T aylor of
G lenwood Springs had two conferences
with the secretary. W ith Fred Johnson,
commissioner of the general land office,
Examiner
W illard T eller, widely known Little
ton man, has received a telegram from
W ashington, notifying him of his ap
pointment as examiner of the Federal
Deposit Insurance corporation.
M r. T eller will examine banks in
various places in order to ascertain if
they are suitable for the government to
guarantee their deposits. It is the in
tention of the federal government, be
ginning Jan. 1, to guarantee deposits up
to $2,500 per depositor of both state and
national banks.
Robber Dies
Ed W oolery, 54, ex-convict, who was
shot a half hour after the bank at M cClave, Colo., was robbed by a lone gun
man, died recently in a Las Animas hos
pital.
21
Central Western Banker, N ovem ber, 1933
A fter W oolery held up Cashier W .
C. Bourne and Miss Della Hartzell,
assistant cashier, he escaped in a car. H e
was pursued by three citizens of M cClave.
T h e robber was overhauled four miles
south of the town, and the posse opened
fire. W oolery stopped the car, crawled
out, and fell on the road, with a bullet
wound in his body.
Denver Clearings
Clearings of Denver banks during
September were more than 5 million
dollars higher than they were during
September a year ago.
T h e clearings were $79,728,128.99 as
compared with $74,451,484.74 in the
same month in 1932.
Bonds 0 . K.
Receivers of national banks henceforth
will be permitted to exchange mortgages
held by the banks for bonds of the Home
Owners Loan corporation, according to
instructions received in Denver by John
Lynch, head of the state branch of the
corporation.
Due to present economic conditions,
an abnormally large number of mort
gages have been accumulated and the
overhead expense in servicing these
mortgages is high, Lynch was informed.
Because of these facts and the ad
ditional fact that a market has been es
tablished for the bonds, national bank
receivers will be permitted to make the
exchange, subject to the approval of the
treasury department.
Investment Officers
M orton Goodspeed, manager of M .
E. T raylor & Co., Denver, was elected
chairman of the Rocky mountain group
of the Investment Bankers Association
of America at the annual meeting. Fran
cis Goodhue of Calvin Bullock, Inc.,
was named vice chairman and W aller
C. Brinker Jr. of the International com
pany was chosen secretary and treasurer.
T he group named the three men
members of the executive committee and
also elected the follow ing to that com
mittee: P a u l
Loughridge (retiring
chairman), Bosworth, Chanute, Lough
ridge & C o .; C. B. Engle, International
company; O . F. Benwell, Benwell &
C o .; M . W . Ow en, Brown, Schlessman,
O w en & C o .; H . D . W riter, United
States National company; W arren W ill
ard, Boettcher, Newton & Co., and
M alcolm F. Roberts, Sidlo, Simons,
D ay & Co.
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Federal Reserve Bank of St. Louis
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Wyoming News
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Organize Investors
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State Convention
A . E. W ild e, W yom ing bank exami
ner, has instituted plans for organiza
tion of W yom ing investors in the W e st
ern Loan and Building Company of
Salt Lake City which was taken over by
the Utah bank commissioner.
Examiner W ild e is endeavoring to
organize a committee of investors in five
state districts of the state and these
groups will, in turn, organize W yom ing
investors who have more than $1,000,000 at stake in the Utah company.
State districts are as fo llo w s:
N o. 1— Lincoln, Uinta, T eton, Sub
lette and Sweetwater counties.
N o.
2— Park,
Big
H orn,
H ot
Springs, Washakie and Fremont coun
ties.
N o. 3— Sheridan, Johnson, Campbell,
Crook and W eston counties.
N o. 4— Natrona, Converse and N io
brara counties.
N o.
5— Goshen,
Platte,
Albany,
Laramie and Carbon counties.
Federal Appraiser
Roy B. Nordyke, county extension
agent, has been appointed one of the 15
Federal land bank appraisers for W y o
ming. An agent to succeed Nordyke in
the Green River territory is expected to
be named by the University of W yom ing
officials shortly.
Resigns
Roy A . M ason has announced his re
signation as vice president of the First
National bank of Kemmerer after thirtythree years of service.
H e will accept a position with the
Federal Deposit Insurance corporation,
with headquarters in Cheyenne, which
is adding to its force to ascertain qualifi
cations of banks to accept the new bank
guarantee law after the first of the year.
Endorsement of the Home O w ners’
Loan corporation in N ew M exico was
voted by the N ew M exico Bankers as
sociation. T h e convention in Albuquer
que took up the N R A banking code for
brief discussion, later referring it to a
committee representing the clearing
house districts of the state for recom
mendation for final action by ballot of
the individual banks.
James B. Read of Taos was selected
for president, succeeding Arthur Jones
of Portales. Other officers named are:
Floyd Childers, Roswell, vice president;
A . E. Huntsinger, Vaughn, treasurer;
M rs. M argaret Barnes, Albuquerque,
secretary,
re-elected; Arthur Jones,
member of executive council of the
American Bankers association; L. C.
Becker, Belen, N ew M exico, vice presi
dent of the American Bankers associa
tion; Fred Luthey, Albuquerque, nom
inating committee A . B. A . ; H. L .
Boyd, Springer, alternate.
Divisonal representatives to the A . B.
A . were chosen as follow s: National,
H . H. A ull, Santa Rosa; state, D . W .
Priestly, C layton; savings, Oscar M .
Love, Albuquerque; trust, Paul A . F.
W alter, Sr., Santa Fe.
T h e resolution endorsing the opera
tion of the home loan association in the
state, offered by S. A . Jones of T ucum cari, declared, “ W e further recommend
that our customers and others accept the
four per cent interest guaranteed bonds
of the home loan association in exchange
for their mortgages, and thereby assist
in the general recovery program.”
R. A . C. C. Assistant Manager
J. E. Robertson of Artesia was sworn
in recently as assistant manager of the
N ew M exico branch of the Regional
C entral T y p ew riter E x c h a n g e , Inc.
(EST. 1903)
N E W AND REBUILT TYPEW RITERS, ADDING MACHINES, CHECK
W RITERS — FE LL Y GUARANTEED.
REBUILT MIMEOGRAPHS, STENCILS AND INKS
LOWEST PRICES
ALLEN-WALES
1820 Farnam St.
THE FINEST ‘‘H EA V Y DUTY”
ADDING MACHINE MADE
Omaha, Nebraska
22
Central Western Banker, N ovem ber, 1933
Agricultural Credit Corporation bank.
George Hunker, formerly of Las Vegas,
is manager. M r. Robertson will have
charge of the Santa Fe office during the
absence of M r. Hunker, who is in the
east on business. N ew M exico was
served from the W ichita, Kansas, office,
before the establishment of a state
branch bank.
To Reorganize
About 100 depositors of the First
Savings Bank of Albuquerque at a meet
ing recently approved a reorganization
plan proposed by the depositors’ commit
tee and empowered the committee chair
man to conduct the stock subscription
drove under the reorganization plan.
T h e committee’s plan calls for the
raising of $120,000 new captial, of
which $70,000 is to be subscribed by de
positors and $50,000 by former stock
holders and for reorganization of the
institution as a state bank. It is estimated
that the plan will release 25 per cent of
the deposits immediately.
Included in the plan is a clause that
the reorganization committee w ill work
toward relieving stockholders of their
assessments to the extent that each in
dividually subscribes to stock in the new
bank.
First National to Open
Comptroller of the Currency J. F. T .
O ’Connor has signed approval of the
final draft of the plan for the reorgani
zation of the First National bank of
Albuquerque, according to advice re
ceived from W ashington by Conservator
W . A . Keleher.
T h e plan approved is essentially the
so-called modified Coors plan for re
opening the institution on a 100 per cent
basis and was approved by nine experts
in the comptroller’s office through whose
hands it passed before it was finally re
commended to O ’Connor.
Seven directors for the reorganized
bank have been approved by Louis A.
M iller, assistant examiner, and Irwin
D . W righ t, chief examiner, for the tenth
federal reserve district.
These names, decided upon by M r.
M iller and M r. W rig h t at conferences
in Kansas City, have been forwarded to
the comptroller’s office and the R. F. C.
office in W ashington.
Decrease in Real Estate
Foreclosures Announced
A decrease in foreclosures of 6.1 per
cent in August of this year as compared
with August 1932 has been announced
by the Division of Research and Statis
tics of the Federal Home Loan Bank
Board and the H . O . L. C., which made
public an analysis of reports from 1114
communities that include 53 per cent of
the population of the United States.
T h e analysis also reported “ a notice
able strengthening in the real estate mar
ket as indicated by reports on both
rental and sales of properties in many
sections of the country.”
For the 60 day period of July and
August, a decrease o f 11.6 per cent was
reported over the immediately preceding
sixty-day
period in M ay and June,
although a comparison with the corres
ponding periods of 1932 indicated a de
crease of only 0.6 per cent.
In August, 1933, the number of fore
closures was 18,015, while for August,
1932, it was 19,176. In 1933 the com
bined July and August figure was 35,773, while the combined M a y and June
figure was 40,455. In 1932 the corres
ponding figures were 37,220 and 37,440
respectively.
Decreases were noted in August of
this year in 23 States as compared with
July, and 6 of the 12 Federal Home
Loan Districts showed decreases in A ug
ust as compared with July of this year.
These were reported in the Districts
served by the Federal Home Loan Bank
of Boston, Newark, Pittsburgh, Topeka,
Portland and Los Angeles.
T he
figures reported cover
fore
closures on all types of properties includ
ing frames and commercial properties
as well as homes. A n analysis of the re
ports submitted to the Board indicates
that something over half of the total
number of foreclosures represent homes.
H e had purchased a parrot which was
rather a young bird and was trying to
teach it to talk. He walked close to the
cage and said in a loud, clear v o ice :
“ H ello! H ello! H e llo ! there H e llo !”
H e yelled until tired, the parrot pay
ing no attention to him. But when the
man stopped for breath, the parrot
opened one eye and said, “ Line’s busy.”
Publisher’s Statement
S ta te m e n t o f th e O w n ers h ip , M a n a g e
m ent, C ir c u la tio n , etc., r e q u ir e d b y th e A c t
o f C o n g r e s s o f A u g u s t 24, 1912, o f th e
CENTRAL
W ESTERN
BANKER,
pub
lis h e d m o n th ly , a t O m aha, N e b r a sk a , fo r
O c to b e r 1, 1933.
1— N am e o f P u b lis h e r — C liffo r d D e P u y ,
D es M oin es, I o w a
E d it o r — H. H. H a y n e s, D es M oin es, la.
A s s o c ia t e P u b lis h e r — R. W . M o o rh e a d ,
D es M o in es, I o w a
2— O w n e rs : C liffo r d D e P u y , D es M o in e s
3— T h a t th e k n o w n b o n d h o ld e r s , m o r t
g a g e e s , a n d o th e r s e c u r it y h o ld e r s
o w n in g an d h o ld in g 1 p er c e n t or m o re
o f t o t a l a m o u n t o f b on d s, m o r t g a g e s ,
or o th e r s e c u r it ie s a r e : N one.
H. H. H a y n e s, E d ito r .
S w o r n to a n d s u b s c r ib e d b e fo r e m e th is
30th d a y o f S ep tem b er, 1933.
E a r l S. L in n , N o t a r y P u b lic .
(S e a l)
(M y c o m m is s io n e x p ir e s
J u ly 4, 1936)
AUSTRALASIA
BANK OF NEW S O U T H W ALES
E S T A B L IS H E D
1817
(W it h w h ic h a re a m a lg a m a te d T H E W E S T E R N A U S T R A L I A N B A N K
a n d T H E A U S T R A L I A N B A N K O E C O M M E R C E L t d .)
P A ID -U P
C A P IT A L
.....................................................................................................£ A 8 ,7 8 0 ,0 0 0
R E S E R V E F U N D ..................................................................................................................
6 ,1 5 0 ,0 0 0
R E S E R V E L I A B I L I T Y O F P R O P R I E T O R S ...............................................
8 ,7 8 0 ,0 0 0
£ A 2 3 ,7 1 0 ,0 0 0
Aggregate Assets 30th September, 1932, £A 107,525,115
A G E N T S — F IR S T
N A T IO N A L
BANK, OM AHA, NEBRASKA
H E A D OFFICE, GEORGE ST., S Y N D E Y
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Federal Reserve Bank of St. Louis
GENERAL
M ANAGER, ALFRED
CHARLES
D A V ID S O N
LONDON OFFICE, 29 T H R E A D N E E D L E ST., E. C. 2
7 1 0 B r a n c h e s a n d A g e n c i e s in A l l A u s t r a l i a n S t a t e s , F e d e r a l T e r r i t o r y ,
N e w Z e a la n d , F i j i , P a p u a , M a n d a t e d T e r r i t o r y o f N e w G u i n e a a n d L o n d o n
596 M IL L I O N
IN D U STRIA L
INCOM E
ciO îlxitteA . o f f
____
INDUSTRY
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Federal Reserve Bank of St. Louis
377 MILLION
FARM
IN C O M E
A
tin
Ja
O
FARMING
NEBRASKA
T r u e , Nebraska is still fifth among all the states in value ol
farm products.
But, in considering the state as a market, it is well to remem
ber that income from the products o f Nebraska’s 1490 factories
is $596,000,000. And this is 157% o f the income from her
192,458 farms, so famous for their output o f dairy products,
hogs, beef, corn and sugar beets.
This doubly rich potential market— now benefiting both
agriculturally and industrially, with rising commodity prices—
is one o f eight states served by the 126 units o f the Northwest
Bancorporation. Seven o f these banks are strategically located
in Nebraska.
United States National Bank
Stock Yards National Bank
Continental National Bank
First National Bank . . .
Hastings National Bank .
Security State Bank . . . .
South Omaha Savings Bank
. Omaha, Nebraska
. Omaha, Nebraska
.L in coln ,
Fairbury,
Hastings,
Norfolk,
. Omaha,
Nebraska
Nebraska
Nebraska
Nebraska
Nebraska
The Northwest Bancorporation, through its headquarters in
Minneapolis will be pleased to cooperate with executives inter
ested in Nebraska or any o f the states named on the map above.
N o r t h w e s t Ba n c o r p o r a t i o n
This advertisement is one of a series appearing in national publications,
featuring the territory served by the Northwest Bancorporation
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Federal Reserve Bank of St. Louis
The Omaha
National Bank
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