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https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ST. LOUIS and CHICAGO April, 1927 IN T H IS ISSUE M id -W e s t Savings Conference Features Plans for Increased Deposits Page 9 Federal Taxation of State Agencies Page 14 The “ C ler-K it”— a Unique Invention for Bankers W h o Clerk Farm Sales Page 13 Bond and Investment Section Page 45 A lo n g La Salle Street Page 47 N ew s of Illinois Banks and Bankers Page 67 Mid-Continent Banker 2 scope and character o f service an investment house is able to render its clients depends in a large measure on its facilities for originating, participating and distributing securities. T •t : : 'r ' he The First National Company — the Investment Division of the First National Bank in St. Louis— has every facility necessary to render broad and dependable investment service. A m p le resources make it possible to engage extensively in the origination of issues and the participation in syndicate offerings o f highgrade securities. The organi zation o f the First National C om p an y is the result o f years of constant growth, in the course o f which depart ment after department has been added to handle the va rious phases o f the business. These departments, each a highly specialized unit o f the Com pany, are managed by executives who are thorough ly com petent to handle all m at te r s r e q u i r i n g the attention o f their respective departments. Investors residing in and out of the city can derive many advant ages b y usi ng the facilities o f this Company. Classified lists o f securities, circulars o f new offerings, market quotations andad viso^ ry counsel, areavailableat any time for individuals or insti tutions desiring this service. ‘ ^ ¡‘¡rVWJ ; | 1H ***• -w. w »< %- NATIONAL W A LLA C E COMPANY INVESTMENT D IV ISIO N o f iH iiliiliS fe FWST NATIONAL BANK B R O A D W A Y L IV E -L O C U S T SAINT LOUIS, MO. The M i d - C o n t i n e n t B a n k e r is p u b l i s h e d m o n t h l y b y t h e C o m m e r c e P u b l i s h i n g C o m p a n y , 408 O l i v e S t. , S t. L o u i s , M o. p r i c e $3.00 p e r y e a r . V o l u m e 23. No. 4. E n t e r e d as s e c on d c l a s s m a t t e r a t St . L o u i s P o s t o f f ic e . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis S u b scrip tio n St. Louis, April, 1927 3 seven years . . . $ 500,000 were devoted to perfecting the T od d Super-Speed Protectograph Yet, this is but one example of how The Todd Company accomplishes its aim to simplify and improve banking practice T h e first working model of the Super-Speed was completed seven years ago. From that time until the announcement of the Todd Super-Speed five months ago, the work of improving . . . of per fecting went steadily on. Countless changes in de sign and materials were considered. Many were incorporated— many were found impractical. Then ten machines were shipped to banks, manu facturers and merchants who demanded speed and reliability. For six months they were used to make sure they would stand up in actual commercial work. The result of all this experimenting, testing and improving is that The Todd Company can now offer the Super-Speed to the banking world with the guar antee that it is not only the fastest, but the most per fect piece of mechanism made in our history. Such is the story of the Todd Super-Speed. It is but typical of the precision and care we have exercised in the manufacture of all Todd Protectographs. Not one has been offered American busi ness until it could carry the Todd guarantee. And every model is actively filling a need in business or private life. Even in homes today you will find a Protectograph— The Personal, which bankers ap preciate so highly because its use reduces the num ber of hand-written checks their employees have to handle. Today ninety per cent of the banks of this country use one or more of the Todd products, including Todd Greenbac Checks and Super-Safety Checks unequaled in alteration-defying qualities and beauty. The number of individuals and businesses can be counted in hundreds of thousands. Todd service is available in every important city in the United States and in many foreign countries. This service is rendered by experts— men who have been schooled in the Todd business. At your request a Todd expert will come and show you how the Todd System of Check Protection can facilitate the routine o f your bank. Be sure to ask him to demonstrate the new Todd Super-Speed which writes the amount line on checks at the rate of 1200 an hour. The Todd Company, Protecto graph Division. (Est. 1899.) 1151 University Avenue, Rochester, N. Y. Sole makers of the Protectograph, Super-Safety Checks and Todd Greenbac Checks. TO D D S Y S T E M O F C H E C K P R O T E C T IO N https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The P r o t e c t o g r a p h eliminates a large per centage of all check frauds by preventing raised amounts. The Protectograph is made in a variety of stand ard models, one for every type of business, priced from $37.50 up. Only Todd can make a Protectograph. Todd Greenbac Checks. with their patented self-canceling features, e lim in a te an oth er major source of possi ble check losses by preven tin g ch ang e of pa ye e’s name, date and n u m b e r and “ c o u n t e r f e i t i n g The instant the forger’s acid is dropped on the paper the word “void” appears. Standard F or g e ry Bonds cover the re maining check - fraud possibilities, namely, forgery of signature and forgery of en dorsement. Qualified Todd users receive policies at the most advantageous discounts from the Metropolitan Casualty Insurance Company, New York. Mid-Continent Banker 4 IN D E X TO A D V E R T IS E R S —A— Abnaham Lincoln Life Insurance Co., Springfield, 111................................................. 71 Allyn & Company, A. C., Chicago.......... 60 American Express Company, New York 8 American Banks, Nashville........................ 75 American Exchange-Irving Trust Co., New York ...................................................... 19 American Southern Trust Company, 23 Little R ock..................................... Arkansas National Bank, Hot Springs, Arkansas ........................................................ 22 Art Craft Shops, St. Louis.......................... 4 Augustine & Company, St. Louis............ 60 — B— Baker, Kellogg & Oo., Chicago.................. 47 Bankers Trust Company, Little R o c k .. 24 Bank of Baton Rouge, Louisiana............ 23 Bank of Commerce & Trust Company, Mansfield, L a.................................................. 33 Bank of New South W ales, Sydney, Australia ........................................................ 27 Bartlett & Gordon, Inc., Chicago............ 50 Bell Telephone Securities Co., New York 54 Berkowitz Envelope Company, Kansas City ..................................................................... 62 Boatmen’s Bank, St. Louis........................ 5 Broadway Trust Company, St. L o u is ... 5 Brookmire Economic Service, New York 63 Burr & Company, George H., St. Louis. 51 — C^Caldwell & Company, Nashville................ 60 Chapman & Company, P. W ., Chicago.. 61 Chase National Bank, New Y o r k . . . . . . . 5 Chemical National Bank, New Y o r k .... 37 Commerce Trust Company, Kansas City 79 Commercial National Bank, Shreveport, L a ........................................................................... 33 Community Bank & Trust Company, H ot Springs .................................................... 21 Como Trust Company, Hot Springs........ 27 Continental & Commercial Banks, Chicago ............................................................. 70 — D '— Dawes Maynard & Company, Chicago.. 57 D ’Oench, Duhme & Company, St. Louis. 62 Doherty & Co., Henry L., Little R o c k .. 21 — E— Equitable Bond & Mortgage Company, Chicago ............................................................ 63 Equitable Trust Company, New Y o rk .. 39 — F— Federal Laboratories, Pittsburgh.............. 4 Federal Surety Company, Davenport___ 35 Fidelity Bond & Mortgage Co., St. Louis 63 The First Illinois Company, Chicago.............. 17 First National Ba.nk, Chicago.................... 36 First National Bank, Memphis.................. 26 First National Company, Sit. Louis..... 2 Fletcher American Company,Louisville 57 Foreman Banks, Chicago.............................. 68 Francis, Bro>. & Co.. St. Louis................ 62 General Motors Acceptance Ccnp., New York .................................................................. 52 Guaranty Trust Company, New Y o r k .. . 42 — H— Hanover National Bank, New Y o r k .. . . 35 Hibernia Bank & Trust Company, New Orleans ............................................................. 34 Hoagland-Allum & Company,Chicago.. 65 Hotels Baltimore & Muehletaack, Kansas City ................................................................... 63 Hotel Empire, New Y ork ............................ 76 Hotel Knickerbocker, New Y ork .............. 63 — I— Illinois Honor Roll Banks............................. 74 Illinois Merchants Trust Company, Chicago ............................................................. 69 Industrial Acceptance Corporation, New York ................................................................... 55 Inter-State Trust & Banking Co,, New Orleans ............................................................ 32 — K— Knight, Dysart & Gamble, St. L o u is.. . 57 Koeppe, Langston, Leper & Company, Chicago ............................................... 63 -—L— Lacy Company, L. D., St. Louis............ 26 Liberty Central Trust Company, St. Louis .......................................... 56 Liberty Insurance Bank, Louisville, Ky. 76 Lorenzo B. Anderson & Co., St. L ouis.. 46 Louisiana National Bank, Baton Rouge, L a .......................................................................... 30 — M— Marine Bank & Trust Company, New Orleans .......................................................... 29 McClintock Company. O. B.. Minneapolis 34 Mercantile Trust Company, St. L ou is.. 6 Merchants Laclede National Bank, St. Louis ................................................................ 35 Mid-Continent Banker, St. Louis............ 73 Midland Bank, London, England.............. 15 Mississippi Valley Trust Company, St. Louis ................................................................ 80 Missouri Honor Roll B anks.......... ............. 81 Missouri Pacific Railroad, St. Louis . . . 83 Mortgage & Securities Company, St. Louis ................................................................ 58 — N— National Bank of Commerce, St. Louis National City Company, New Y ork ........ National Park Bank, New York............... New England Investment Trust, New York ............................................................. Northern Bank Note Company, Chicago Northern Trust Company, Chicago......... —P—- Company, A holdup in your bank may result in the loss of life—which no insur ance can replace. Almost anyone will agree that a life is of more value than the cost of adequate protection. Preparedness is the best way to avoid an attack by bandits, and today, thoughtful bankers are investing their protection expenditures in— —W— who are successful, realize the need of real quality in bank stationery. They are using genuine Steel Die Embossed and Copper Plate Engraved Letter Heads and Cards produced by the Art Craft Shop Co. “ W h ere en g ra vin g is d o n e w ith lovin g care” It protects life as well as m oney in tim e of daylight holdups Tested and approved by the Underwriters’ Laboratories, it affords a reduction in your insurance cost. Let us tell you more about this modern protection. W e will send you without obligation the interesting booklet “ Beating the Bandit” if you tear off this ad, write your name and address en the margin and mail it to— F E D E R A L L A B O R A T O R IE S , Inc. 1631 L ib e rty A v e n u e P itts b u r g h , P e n n . Branch O ffices: New York, Philadelphia, Cleveland, Toledo, Chicago, Indianapo■ lis, D etroit, Kansas C ity, St. L ouis, M inneapolis, D enver and Toronto. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 72 71 20 56 38 18 27 49 62 52 61 67 48 3 25 31 72 44 W alker & Co., G. H ., St. Louis................ 64 W|ant Ad P a g e .— ........................................... 78 W essling Services, Lytton, Iowa................ 43 W hite-P rice Company, Minneapolis........ 53 W hitney Central Banks, New Orleans.. 33 Williams, Jr. & Co., Roger B., New York .............. 64 Willson Company, James C., Louisville 77 W ise Construction Company, J. H ., St. Louis ................................................................. 41 Banks and Bankers is g r e a t e r t h a n the cost of protection 40 45 — T —• Philadelphia, P a .......... — U— Union & Planters Bank & Trust Co., Memphis ........................... Union Bank & Trust Company, Baton Rouge, L a.......................................................... Union Trust Company, Chicago................. Union Trust Company, EX St. L o u is .. . . Todd of a — 48. 75 73 Philadelphia Girard National Bank, Philadelphia .................................................. Potter, Kauffman & Co., St. Louis........ — Q— Quality Park Envelope Co., St. Paul, Minn..................................................................... — R— Rogers Park Hotel, Chicago........................ Royal Union Life Insurance Company, Des Moines .................................................... Ruppert. & Company, H. L ., St. Louis. . — S— St. Louis Bank Equipment Company, St. Louis ........................................................ St. Louis Joint Stock Land Bank, St. Louis ................................................................ Security Bank, Plot Springs, A rk ............ Smith, Moore & Company.......................... Steinberg & Company, Mark C1., St. Louis ................................................................ Stern & Co., Lawrence, Chicago.............. Stickney, Denyven & Company, St. Louis ................................................................ Stock Yards National Bank, Chicago... Straus Bros. & Company, Chicago.......... V a lu e Human Life 84 59 73 ADVERTISE IN THE MID-CONTINENT BANKER St. Louis, April, 1927 5 THE BROADWAY TRUST COMPANY of ST. LOUIS Announces the Election of the following Officers: Lee G. Desobry, President H. F. Hoener, H. L. Rogers, Vice-Pres. and Secy Leopold Grossberg, Th e Boatmen’s National Bank o f St. Louis O LDEST B A N K IN M ISSO U R I F o u n d ed in 1 8 4 7 Vice-President F. A. Hoffman, Vice-President Treasurer J. I. Obst, Asst. Secretary These men have had years of experience in the banking bus iness, and through their insti tution — the Broadway Trust Com pany o f St. Louis — they offer a complete banking service to banks and bankers who trans act business in the St. Louis ter ritory. ®Jje Cijase J^attonal ^Panfe of the City of New York 57 B R O A D W A Y C a p ita l ..................................... $ 40,0 0 0 ,0 0 0 .0 0 S u rp lu s a n d P rofits . . . 38 ,2 0 4 ,4 7 3 .5 8 D e p o sits (D ecem b er 31, 1926) 85 2 ,4 5 6 ,1 1 4 .2 4 O F F IC E R S Albert H. Wig-gin Chairman of the Board Gates W . McGarrah John McHugh Chairman of the President Executive Committee .Robert L. Clarkson Vice-Chairman of the Board A ll the Advantages that com e from dealing with a large bank in a great financial center are at the disposal of banks and bankers dealing with the Boatm en’s National Bank in St. Louis. W e invite correspondence regard ing our ability to serve you, too. O F F IC E R S : JU LIU S W . R E I N H O L D T . President L E R O Y C. B R Y A N . Vice-President and Cashier A A R O N W A L D H E IM . B. F. B U SH . Vice-President Vice-President E D G A R L. T A Y L O R . J. H U G O G R I M M . Vice-President and Vice-President and Trust Officer Counsel ALBERT W AG EN FUEH R . F LE E MAJOR. Vice-President Vice-President C. C. H A M M E R S T E I N . R UD O LPH FELSCH . Assistant Cashier Assistant Cashier H A L F R E D B R ID G E S , O L IV E R W . K N IP P E N B E R G , Assistant Cashier Assistant Cashier Vice-Presidents Samuel H Miller George E Warren Carl J• Schmidlapp George D. Graves Reeve Schley Frank O. Roe Sherrill Smith Harry H. Pond y,®m'y Ollesheimer Samuel S. Campbell Alfred C. Andrews William E. Lake Robert I. Barr m . G. B. Whelpley William P. Holly Vice-President and Cashier Second Vice-Presidents Frederick W . Gehle James L. Miller George W . Simmons Joseph C. Rovensky Edwin A. Lee Benjamin E. S mythe William E. Purdy Joseph Fulvermacher George H. Saylor Leon H. Johnston M. Hadden Howell Franklin H. Gates Alfred W . Hudson Arthur M. Aiken Thomas Ritchie Comptroller Foreign and Trust Department Facilities https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis R ESO U RC ES: O ver $ 2 5 ,0 0 0 ,0 0 0 .0 0 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mid-Continent Banker Pacific Electric Co. to Build Plant Here Employing 400 Men Western Firm Follows General Electric Com pany in Selecting St. Louis Site for New Factory. Selecting St. L on !» f o r It» » 4-,-trlet. to be u*e<S *• » »fte fo r tb « anl&ges a» a dlatrlbuUnaL cen ter» new— factnr*. <Vn»tructlon o f a ** St LOUIS TO GET IDE COLLAR PLANTS:, _____ _ i B« Mad». Will Be Sole Distributing j?" Center for 12 M.ddle If-?,-, Western States. n e c to r» for S In m a a a a a a a a tu b - i‘ h e ad St. Louis Is Growing 'ORE THAN 200 new industries have lo____ cated in St. Louis in the last seven years. St. Louis has almost 4,000 factories in 211 dif ferent kinds o f business. Nearly every line o f m anufac ture is represented. This is abundant proof that St. Louis is growing— steadily, surely and permanently. This remarkable growth benefits not only the city but the entire St. Louis trade territory. H The M ercantile Trust Com pany has grown with St. Louis. For twenty-seven years we have taken a leading part in the developm ent o f the city and its trade territory, through the service o f various departments, including Banking, Real Estate Loan, Bond, C orpora tion Finance, etc. W e have obtained suitable locations for industries, and m m any cases financed the construc tion o f buildings. C; W e invite bankers and banks, corporations and busi ness men to make use o f the valuable knowledge oi St. Louis conditions and resources which years o f expe rience has given us. M ercan tile Trust Company C a pita ld S u rp lu s Member Federa/ R eserve Jysdem E IG H T H and lo c u st Ten M illion D olla rs -TO S A IN T L O U IS ST. CHARLES 6 St. Louis, April, 1927 Convention Calendar State Date Association Place April 14-16—Florida ...............Sarasota April 20-21—Louisiana .. .Baton Rouge April 21-23—North Carolina. .Pinehurst April 27-28—Arkansas ....L ittle Rock May 10-11—Mississippi................. ........... May 10-12—Texas .....................El Paso May 12-13—Tennessee ....Chattanooga May 16-18—Georgia ...................Atlanta May 17-18—Missouri ....................Joplin May 18 20—Kansas .............Manhattan May 18-21—California ......... Del Monte May 19-21—Alabama ............... .......... June -—Idaho ......... Hayden Lake June 3- 4—Oregon Gearhart-by-the-Sea June 8-10—Minnesota St. Paul June 9-11—Washington ....... Tacoma June 15-16—North Dakota. .Jamestown June 15 17—Ohio .............Cedar Point June 21-22—Kentucky ......... Frankfort June 21-23—Wisconsin ...........Madison June 23-24—Illinois ................. Danville June 23-25—Virginia... .Virginia Beach Sept. 21-22—Indiana ......... Indianapolis Other Date Associations Place May 1-7—Spring Meeting Executive Council, A. B. A. ....................Hot Springs, Ark. May 19-21—Reserve City Bankers ....................Pittsburgh, Pa. July 11-15—American Institute of Banking ___Detroit, Mich. Oct. 24 29—American Bankers Asso ciation ....H ouston, Texas. A new publication has just made its appearance in Chicago and gives three reasons why you should subscribe for it, which are as follows: First, because there are no editorials by Arthur Bris bane; second, because there are no essays by Doctor Frank Crane, and, third, because there are no poems by Edgar Guest. Such a publication should certainly make H. L. Menken jealous with envy. J. F. Blair Heads Cass County Bankers. The Cass County Bankers Associa tion, an old organization that has been inactive in recent years, was reorgan ized at a meeting held recently at Harrisonvillle, Mo. J. F. Blair, cashier of the Bank of Belton, was elected presi dent of the association; Alonzo L. Burch, vice-president of the Bank of Garden City, vice-president; and Her bert S. Voile, assistant cashier of the Allen Banking Company of Harrisonville, secretary-treasurer. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis i The Financial Magazine of the Mississippi Valley CLIFFORD DE PUY, Publisher DONALD H. CLARK Editor and Manager JAMES J. WENGERT Associate Editor ST. L O U I S A P R IL , 1927 VOL 23 WILLIAM H. MAAS Vice-President Manager Chicago Office 1221 First Nat’l Bank Bldg. Telephone, Central 3591 C O N T E N T S F O R A P R IL Page Mid-West Savings Conference Features Plans for Increased Deposits—By Donald H. Clark. ...................................................... 9 Morning or Evening?—By Noble R. Jones......................................... 11 Fashions Have Changed in Savings—By Mrs. Lena D. Sultzer..... 12 The “ Cler-Kit”—A Unique Invention for Bankers Who Clerk Farm Sales—By Roscoe Macy.............. 13 Federal Taxation of State Agencies—By the Legal Editor............ 14 Compare Present-Day Banking Methods With Those of Fifty Years Ago ........................................................................................ 15 What Is the Tendency of Farm Land Prices in Central Illinois— By Donald H. Clark.... .................................................... 16 Arkansas Convention Section................................................................ 21 Interesting Men in the Banking Field................................................. 24 Louisiana Convention Section.............................................................. 28 How to Act When Held Up................................... .............................. 32 News and Views of the Banking World—By Clifford DePuy........ 37 BOND AND INVESTMENT SECTION A Partial List of Current Offerings..................................................... Along La Salle Street—By Wm. H. Maas.......................................... Diversification and Liquidity......... ..................................... Commercial Paper as a Bank Inves.ment—Bv J. Herbert Case....... The Evil of Unnecessary Concessions— By George R. Bayard........ Olive Street Notes.................................................................................. STATE NEWS Page Arkansas ............................ 21 Louisiana ..... 28 Oklahoma .............................. 78 Kansas .............. 79 Missouri ......... 80 45 47 49 53 56 5g SECTIONS Page Illinois ............... !.................... 67 Indiana ....... 75 Kentucky .............. 76 Tennessee ....... 77 Mississippi ............................. 33 Published by the Commerce Publishing Company, 408 Olive Street, St Louis Mo Clifford DePuy. President: James J. Wengert. Vice-President: Wm. H. Maas VicePresident: Donald H. Clark, Secretary-Treasurer Telephone GArfleld 2138 MEMBER AUDIT BUREAU OF CIRCULATIONS FINANCIAL ADVERTISERS’ ASSOCIATION ’ DE PUY PUBLICATIONS AND THEIR TERRITORY Mid-Continent Banker St. Louis Northwestern Banker Des Moines Trans-Mississippi Banker Kansas City Southwestern Bankers Journal Fort Worth Life Insurance Selling St. Louis Underwriters Review Des Moines Insurance Magazine Kansas City New York office: Frank P. Syms, 25 West 45th St. Chicago office: Wm. H. Maas. 1221 First National Bank Bldg., phone Central 3591 Kansas City office: G. D. Mathews, 405 Ridge Bldg., phone Victor 5254 Fort Worth office: Lawson Hetherwick, 409 F. 8s M. B.dg. Phone 2—2513. Des Moines Office: Clifford DePuy. 555 Seventh St., phone Walnut 2201 Minneapolis Office: Frank S. Lewis, 840 Lc mber Exchange Entered as second-class matter at the St. Louis post office. Subscription rates $3.00 a year; 35 cents a copy Copyright, 1927, by The Commerce Publishing Co., St. Louis, Mo. Mid-Continent Banker Illustrating “Personal Service” as extended today through American Banks to their Traveling Patrons. They’ll say He is— "T h e Helpful H and of a Qreat Service” SK any one o f your Depositors w ho has traveled abroad, to whom your bank has . recommended and sold American Express Travelers Cheques— ask every one o f them — if the much heralded Personal Service o f the American Express Company really serves A the Traveler. Ask them if they used It— where, when and how; and if they would think o f going on any trip abroad without It. A sk them if they would call this Service “ G R E A T ” —and if it was to them a “ Helpful Hand.” “ The Helpful Hand of a Qreat Service” is not just a business slogan applied, indifferently, to the Personal Service American Express couriers and personal representatives are extending to travelers— everywhere. They are the quoted words, constantly repeated, o f thousands o f travelers in foreign lands— your Depositors— Depositors o f 17,000 other American banks— banks which, because o f the satisfied travel experience o f their Depositors, now advise and sell A m e r ic a n https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis E xpress T ravelers C heques Tw enty-third Year Saint Louis Num ber Four April, 1927 The Financial Magazine of the Mississippi Valley Mid-West Savings ConferenceFeatures Plans for Increased Deposits B ANKERS from sixteen states at tended the annual Midwest Sav ings Regional Conference under auspices of the Savings Bank Division of the American Bankers Association at Hotel Statler, St. Louis, March 29 and 30. The states represented include Alabama, Arkansas, Illinois, Iowa, Kan sas, Louisiana, Minnesota, Mississippi, Missouri, Nebraska, North Dakota, Oklahoma, South Dakota, Tennessee, Texas and Wisconsin. Optimistic views of the future of savings banks were expressed, despite the increase in competitive savings in stitutions, such as building and loan companies, bank bond departments and the like. Methods of creating new business and of advertising were dis cussed in a number of excellent papers, several of which are published in part in this issue. Others will appear in later numbers. Fred N. Shephard, executive man ager, represented the American Bank ers Association at the meeting, and was the principal speaker at the banquet Tuesday evening. W. B. Weisenburger, vice-president of the National Bank of Commerce in St. Louis, was chairman. Music and entertainment were fur nished by Bessie Brown Ricker, the Hawaiian String Quartet and the Mis souri Pacific Diamond Jubilee Quartet. H. H. Reinhard https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B y D onald H . Clark Editor, Mid-Continent Banker Executive and Program Committee. H. H. Reinhard, Chairman. Vice-President National Bank of Commerce. Noble R. Jones, Vice-Chairman. Savings Manager, First Na tional Bank. G. B. Trigg, Treasurer. Cashier, Liberty Central Trust Co. Mrs. L. D. Sultzer, Secretary. Savings Manager, Mercantile Trust Co. Edgar L. Taylor. Vice-President Boatmen’s Na tional Bank. W. A. Crockett. Savings Manager, Mississippi Valley Trust Co. Advisory Comm ittee. B. F. Edwards. President National City Bank. Jas. L. Ford, Jr. President Franklin Bank. F. E. Gunter. President Liberty Central Trust Co. Geo. E. Hoffman. President Merchants - Laclede National Bank. H. H. Hopkins. President American Trust Co. J. G. Lonsdale. President National Bank of Commerce. Craig MacQuaid. President United States Bank. A. C. F. Meyer. President Lafayette-South Side Bank. E. B. Pryor. President State National Bank. J. W. Reinholdt. President Boatmen’s National Bank. J. Sheppard Smith. President Mississippi Valley Trust Co. Festus J. Wade. President Mercantile Trust Co. F. O. Watts. President First National Bank. Eugene H. Angert, well known St. Louis attorney, gave a humorous talk which was much enjoyed by the four hundred bankers present. Supposedly favorable to the spread of branch banking, the McFadden bank bill, recently passed by Congress, has really put “definite bounds to branch banking and has preserved independent banking in the United States, Mr. Shephard explained. “ It is really an anti-branch banking bill,” he said, “ by limiting the spread of branch banking so strictly that its future depends upon the fickle decision of state legislators. Provisions of Bill. The provisions which he cited to back this statement related to the clauses which forbid branch banking on a coun ty-wide and state-wide scale, in contigu ous territory, in small towns, and in states where the banking laws prohibit branch banking among the state insti tutions. “Only in cities of more than 25,000 population, in a state where branch banking laws exist, can the branch bank spring up, and even here they are strictly regulated—so much so that in cities of the size of St. Louis and Kan sas City—supposing Missouri laws fa vored branch banking, the number of branches permitted to any central in- Noble R. Jones Mid-Continent Banker 10 stitution is at the discretion of the Comptroller of Currency,” he said. Opposed to Branch Banking. “ The American Bankers Association has always been aligned against branch banking, but in favoring the Hull amendments concerning it when the McFadden bill was before Congress, it did so in order not to lose the many real advantages which the bill con tained to put national banks on com petitive parity with state banks and their power under the more liberal laws governing them.” M ethod o f Procuring New Savings Accounts B y J. W . R ubecam p Assistant Cashier Illinois Merchants Trust Company, Chicago New Business, if you please, we may justly term the distinguished guest so much sought after by all who deal in commodities or who have something to sell. Without him, any business will eventually die a natural death. How we can best entertain him is constant ly on our minds. His invitations vary from billboards on the roof to even a clock in the basement. Good, bad or indifferent, we are glad to meet him. Generally speaking, banks today have nothing more than service to sell, in asmuch as their basic principles of op eration are very much the same. While bankers are not entirely agreed, yet, in general, they are cognizant of the fact that that which the outsider calls service has been stretched to such an extent as to he gradually encroaching on the profits earned. In contemplating any particular line of new business it is well to observe the five fundamental points which cover the proposition: 1. Analysis of the possibilities. 2. Organization. 3. Operation. 4. Cost. 5. Profit. Hardly a week or even a day passes without there being some wonderful plan presented to you whereby you are going to get thousands of new ac counts. The high pressure salesman paints a vivid picture and immediately you see the new customers streaming in and the deposits increasing. But neverthe less you tell him to come back after you have thought it over. Then, after you sit down and unhurriedly analyze the five essentials, you wake up and find that the proposition does not bal ance at all. Your good friend comes back and you tell him that you are sorry1 but not interested. Naturally, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis you are not a good banker if you re main immune and don’t get stung some time. The special methods of procuring new business used by the different banks are so numerous and vary so much that it would be rather difficult to discuss even a small number of them. There fore, I will try to confine myself to that which I would term “ Everyday New Business.” Advertisin g in General Mediums. Newspapers, you will agree, are the backbone of the bank’s advertising. They reach the thinking class of peo ple. They afford an opportunity to ex plain your service and give your “rea sons why.” Street car advertising, outdoor dis play (bulletins or posters), back up the newspaper advertising and are a con stant reminder to the traveling public. Ad vertisin g by Direct Medium. Letters, booklets, folders, specialties (such as home banks, pocket banks and dime savers), to be g'ven to present de positors or selected lists of prospects have proven to be effective. They may also be used for general lobby and teller distribution. Personal Solicitation. Paid representatives are good if you can keep down your cost. Secure the right kind of men. Evidently there is a marked change of opinion taking place in regard to service companies. I note that in Chicago there are no ticeably fewer operating now than there were a few years ago. In order to have any measure of success handle your own men. In that way you eliminate the fellow who is probably posing as your vice-president. Employees’ contests, as a rule, have proven successful. From our experi ence, don’t rotate these contests too often because too many complimentary accounts are opened only to be closed and reopened in the next contest. Contacts W i t h i n the Bank. Last and most important are the con tacts made within your own bank. It has often been said that there is more good new business right under your own roof than you can possibly get outside. First, the officer who constantly comes in contact with non-customers can secure a lot of new business pro viding he has some patience, uses a lit tle tact, and does not always feel too busy to step out of his way to be ac commodating. Second, the new account men makes many new friends; they have friends and thereby an endless chain is set in motion. This was proven in a certain bank where a compensation for secur ing new customers was paid to em ployees. The new account men usually came out on top. Third, the cashing of checks affords a big opportunity to get a new account. In most instances convenience has brought this prospective customer into your bank. Why shouldn’t he keep his account there? Think it over! Printed Figures vs. Pen and Ink B y Stephen C. Thorning Manager of Savings, First National Bank, Kansas City The problem of reorganizing Savings Departments confronts many of us. Pen and ink systems have been found to be obsolete and need to make way for more modern equipment. Many of us are now using a new savings machine designed to eliminate the dangers and defects of pen and ink methods. The printed figure system reduces the human element to a minimum. The many operations automatically done greatly lessen chances for error. The machine provides for every possible transaction. The maximum in protec tion is given against fraud. All infor mation necessary is registered. The service rendered is rapid and complete. The equipment is convenient and eco nomical. The figures are always the same and there is no chance for error or dispute in reading. The operation is simple. No trained operator is necessary. The customer presents his pass book with deposit or withdrawal ticket, whichever it may be. The teller pulls the corresponding ledger card and inserts this, with the book, into the machine. He draws the proper line, picks up the amount of the old balance, lists the account number, registers the amount of deposit or with drawal, and the machine automatically extends the balance. The pass book is given back to the customer and the transaction is entirely completed. At the end of the day there is no need to repeat all of the day’s work by posting the ledger cards. Tellers simply prove their cash against the accumulated to tals that are always available for bal ancing. Activity figures are provided that show the individual figures for each teller and the number of each kind of transaction. Teller temptation is removed. Em ployees are put above suspicion in the handling of their records. It is impos sible to hold up money or a deposit ticket even for a day, because the amount of the deposit is simultaneously printed on the pass book, the ledger card and the loeked-in audit strip and iSt. Louis, April, 1927 11 must be accounted for by the teller each night. All three records being identical, the proving of one establishes the accuracy of all. The teller will not accept a receipt for a smaller amount than deposited, so he, therefore, auto matically becomes the auditor of your ledger record. The locked-in audit strip is a permanent history of each day’s business, and completely and fully de scribes each transaction in the order in which it occurs. If a ledger card should become lost or destroyed a new ledger record can be reproduced from the audit sheets. Printed figures prevent posting to the wrong account by providing five checks against this error. The teller compares name, number, balance, line number for the entry, and prints the book number on the ledger card. These safeguards are present on every posting because the teller is forced to refer to the ledger card at the window where the posting occurs. Special provision is made for the cor recting of errors. The machines are equipped with “Deposit Correction” and “Withdrawal Correction” keys. All cor rections must be okayed by some officer. No erasures are permitted. Printed figure service is a better de positor service. Customers are im pressed by the neatness and arrange ment of the figures. Confidence is cre ated. The unit system of paying and receiving may be safely adopted and enables you to give faster and better service. The flexibility is great and peak loads are handled easily. Morning or Evening? B y N oble R . Jones Savings Manager, First National Bank in St. Louis IS it morning or is it evening? Are we coming or are we going? This is a question that is being asked by a good many Savings Bankers, particu larly some of those who are located in the Midwest Section of the United States where our progress in the Sav ings business has hardly kept pace with some other districts in the coun try. The mere fact that the per capita savings deposits in the New England states are almost $500 as against $125 per capita in the Middle West is not a discouraging factor, nor does it indi cate that the average individual in the Middle West is less thrifty, or that the bankers are less alert, than in the East. If we examine per capita sav ings deposits in various sections of the country we will find that they vary almost directly with the state of de velopment of each particular commu nity. So far as the general situation throughout the country is concerned, with respect to savings, numerous im portant changes have taken place dur ing the past decade or more. The three developments of greatest import ance in all probability have been: country where figures expressed in bil lions have become quite common. The same thing is true with regard to the number of individual depositors, these having grown from over 12 million to almost 47 million, an increase of over 34 million. From one point of view the increase in the number of savers is really most significant. That our sav ings banks have been rendering a real service in the past fourteen years, is not to be denied in the face of a show ing such as this where they have at tracted 34 million new depositors. By eliminating the chart, we notice that the increase in savings deposits, adjusted to 1913 price level, shows that the purchasing power of existing sav ings is only about 60 per cent greater than it was in 1914 as against an in crease of over 200 per cent for the ac tual figures. In other words, with al most four times as many people own ing savings accounts today, as in 1912, the purchasing power of these savings is only about 60 per cent larger. Viewed from this point the increase is not par ticularly impressive. Similarly, per capita savings deposits, during this period, have only a little more than doubled and the price level has in creased over 50 per cent; therefore, the actual per capita gain is really smaller than that shown in the chart. W e must not for get t h a t the real test of the value of savings lies not in the aggregate figures but in t h e i r effective purchasing power. Another fact brought out by this chart, which should prove of interest, is that while aggregate fig ures show a steady increase for prac tically every year, the purchasing power of the savers of the country ac tually declined from 1915 to 1920 and that it was not until 1921 that the pur chasing power of savings deposits rose above the level of 1912 and that what gain has been made for the period has all been made after 1921. Investments. During the World War the govern ment did much to educate the great mass of the people on the subject of in vestments. The campaign which the government carried on was later fol lowed by many large corporations, es pecially in the public utility field in de veloping customer ownership of their properties. Many of these companies carried on intensive campaigns which aimed to distribute, in the territory which they served and among their customers, preferred and common (Continued on page 64) 1st: T h e education of the great mass of the people in the subject of invest ments as a result of the gov e rn m e n t’s various L ib e rty Loan campaigns. 2nd: T h e developm ent of Building and Loan Associations. 3rd: T h e enormous s ta llm en t buying. increase in in From 1912 to 1926, Savings Deposits show an increase of over $16,000,000,000, an enormous increase even for a https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Chart showing increase in savings deposits in relation to purchasing price of the dollar. 12 Mid-Continent Banker Fashions Have Changed in Savings The rapidly changing times and the demand not only for higher standards of living, but for higher standards of all commercial service, have made the savings bank of fifty years ago as obso lete as side-burns and whiskers, which at that time adorned the faces of our most distinguished citizens. Last summer, while visiting Scotland, I requested my host to take me to the little village of Ruthwell, where the Reverend Henry Duncan made the first effort for organized savings in 1810, giving his parishioners and neighbor ing villagers an opportunity to save their money under his care and protec tion. The first hank was purely philan thropic in its purpose. Standing there, I could picture the rigorous frugality practiced in those times to save a few shillings, and I could not but compare it with the lazy optimism of today in this land of plenty. The movement, however, accomplished its purpose. The dire poverty of the village was relieved and in five years better facilities had to be provided. This must have been a rich reward for the good dominie to see his unselfish work develop real thrift among his poor. In the year 1815 this little bank was moved to the town of Dumfries, some nine miles distant, with Reverend Dun can still in charge. This move to Dum fries marked the acceptance by the peo ple of the savings idea and the first step in progress toward the savings bank of our time. Today the bank is known as the Dumfries Savings Bank and is appropriately housed in a beau tiful stone structure of two stories, over the entrance of which still pre sides a stone statue of the Reverend Henry Duncan, and I was told that the native Scotch still bring their savings to the “ Stanemon’’ (stone man). I was fortunate in obtaining a copy of their 110th Annual Report. It shows a growth from January 1816 of 288 ac counts amounting to £1410 or $7,050 to January, 1926, of 7,015 accounts, amounting to £681,370 or $3,406,850, an increase of $3,399,800 in 110 years! Their registered rules provide that the bank shall be open two afternoons a week, Saturdays from 3 to 8 P. M., Wednesdays from noon to 2 P. M., and from 6 to 8 P. M. These hours make an interesting comparison with our Day and Night banks, where the nerv ous American may rush in any hour of the day or night to transact his bank ing business at his convenience. A depositor must give a week’s no- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B y M rs. Lena D . Sultzer Savings Manager, Mercantile Trust Co., St. Louis tice, prior to withdrawal of any part of his savings. Compare this hide bound ruling with our present day, stand-at-attention attitude and quick courteous service. These are days when we have a greater number of withdxawals against savings accounts than to tal number of deposits to be credited. This is the result not only of a change in style for savings banks, but a change in people, too. A regular Scotsman will fight to get his savings into the bank, if we are to believe the stories, Mrs. Lena Duncan Sultzer and this gives the Scotch banker all the best of it. Over here the strain has almost been lost in the melting pot, and strange as it seems to a Scotsman, we must try to make saving money at tractive. The savings bank in our country had its origin in the little strong box of the community merchant or trusted citizen who was kind enough to take for safekeeping cash not immediately needed by his customers. This gratui tous service was gradually enlarged to include bonds, currency or whatever of value there was to be safeguarded. This was the tiny foundation upon which our largest and most substantial banks have been built. Quite a stride in fashions from the first small savings bank of 115 years ago with a total deposit of $7,000 to total savings deposits in this country today of over $26,000,000,000! And no longer is it the fashion for large banks to wait in austere dignity and cold solemnity for the savings de positor to timidly ask admittance through their marble portals. The pure philanthropist of a century and a quar ter ago, has evolved into an astute busi ness head who perceives the country’s aggregate savings, not only as a source of profit, but as the great bulwark of financial strength behind our nation’s progress and industrial development. The banker of today welcomes the small saver with warmth and apprecia tion—another change in fashions! With some hesitation, I touch upon a very sensitive spot in savings banks. It is no longer the fashion to expect the intelligent depositor to remain quietly and peacefully in the ranks of the hum ble depositor. The banker must recog nize in his savings depositor the po tential future citizen, and when he has achieved accumulation of a sum of money and begins to manifest a de sire for better things, he must be shown the way to good investments that he can understand and assimilate. This is a sad, sad story in the growth of de posits, but mighty fine for developing the individual. It will always be the fashion for the savings banker to yearn for large de posits, but it has also become the pop ular fashion today to encourage depos itors to buy conservative securities and enter the class of capitalists. We, as thrift salesmen, unfortunately do not have a chance for fair competi tion with salesmen of attractive tempta tions, alluringly displayed, that stand for personal ease and luxury. It is hu man nature to covet beautiful, mate rial things and crave soft luxury, so it does not require a high grade of salesmanship to make a sale of that character because the desire is inher ent in all of us to pamper ourselves and we are sold in advance of the sales men’s solicitation. It is our plain duty to make the sav ings objective attractive and profitable to our depositors—understanding that saving is not a national habit, but an acquired taste. Let us unite in the energetic selling of savings plans that will turn the trend of the casual, hap hazard savings of the younger genera tion to a self imposed, compulsory plan that will crystallize their energies into a desire for standing on their own feet through their own savings efforts. Next to the originator of a good sen tence is the first quoter of it.—Emer son. 13 St. Louis, April, 1927 The “Cler-Kit”---a Unique Invention for Bankers W ho Clerk Farm Sales T is a great pleasure this month to announce the addition to the long list of boons for suffering bankers which have been introduced through these columns from time to time, of a new device designed to render the life of the poor sales clerk a happier one. This invention, which is known by the trade name “ Cler-Kit,” consists of an outfit, enclosed in a compact kit, which may be slung over the shoulder and carried as the newsboy carries his sup ply of papers. Each of the articles comprising this outfit fulfills some spe cial need which is sure to be felt from time to time by every clerk of farm sales. I I These articles have been slowly per fected and thoroughly tested in our own laboratories, before being accepted as components of the Cler-Kit. The first device consists of a flexible rope, with a noose on the end, resem bling a lariat. It is found in a conven ient position for withdrawing quickly from the kit. As the auctioneer mounts upon the hay-rack which has been piled high with all the useless plunder that has a way of accumulating on a farm, and finishes his opening speech, he picks up an axe with a broken handle, oi a pitchfork with an important tine missing. “What am I offered for this useful and valuable instrument?” he inquires. “What’s that? Did you say https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B y R oscoe M a cy ten cents, sir? SOLD, Mr. Clerk, to that good-looking gentleman over there. Your name to the clerk, please,” and he passes immediately to the next bit of salable jewelry. The harried clerk, meanwhile anxiously scans the faces before him in unsuccessful search for a “good-looking gentleman,” and finally succeeds in locating the purchaser, a total stranger, by his guilty manner and the persistence with which he keeps his face averted from the clerk of the sale. “Your name, please?” ventures the clerk, timidly, but the stranger turns and engages his nearest neighbor in conversation. Realizing that there is no help for it, Mr. Clerk, with a-sigh, draws from his Cler-Kit the braided riata. With prac ticed use, he swings it over his head and casts the loop over the neck of the stranger. A few strong tugs should suffice to convince the fellow that the clerk meant what the auctioneer said, in his direction to “give the name to the clerk, please.” After two or three casts the crowd will get the idea and no further trouble will be experienced along this line until the next sale. After cleaning up the hay-rack, the auctioneer will lead the way down a long line of machinery, and as he pro gresses down the line, Mr. Clerk will be left farther and farther in the rear, as he changes twenty-dollar bills and com promises disputed bids. Sooner or later he will find himself with his back flush up against the sharp teeth of a hay-rake, and at that exact moment, somebody’s 225-pound hired man will plant one of his Number Twelves on Mr. Clerk’s right foot, jam a musclebound elbow into Mr. Clerk’s stomach and smash the patent sales ledger up against a bystander in such a way as to destroy $22.50 worth of sales rec ords. Calmly, Mr. Clerk reaches into his Cler-Kit, takes therefrom the handforged, sixty-ounce hammer marked “No. 2,” and with a deft flick of his wrist, gives the hired man a sharp clip behind his ear. The offender sinks to the ground without a sound, and by mounting on the body Mr. Clerk is able to enjoy a clear view of the progress of the sale until it passes out of hear ing down the line. It goes without saying that the milling mob now clears a respectful path for Mr. Clerk right up to the auctioneer’s elbow. Presently Henry Jones, from Spillville, over on the other side of the county, digs the clerk in the ribs and remarks: “ Say, I got to go home now, and it’s too cold to write a check. I’ll be back in your town two weeks from next Saturday, if the roads stay good, and I’ll pay you then for that mower I bought,” and he starts away. Mr. Clerk’s hand comes forth this time grasping the handle of Device Num- vH 14 Mid-Continent Banker ber Three, which consists of a curi ous-looking metal hook on the end of a telescoping steel rod. Pressing a but ton on the handle, the hook shoots out to the full length of the rod, at which time it resembles, on a larger scale, one of those contrivances which are used to catch chickens in a pen. With the hook, Mr. Clerk deftly trips up Henry Jones, of Spillville, and drags him back. “That’s all right, Mr. Jones,” he says, “ but I was employed to clerk this sale today—not two weeks from next Saturday. I’ve been writing all morn ing in spite of the cold, and if I can fill out your check and stub, I believe you should be able to sign your name.” Several other ingenious contrivances go to make up the Cler-Kit. There is (Continued on page 52) Federal Taxation of State Agencies HE subject of taxation is en gaging much attention at the present time, and many contro versies have arisen in the past with re spect to the supremacy of the Federal Government over matters of taxation, and as to whether or not the Federal Government can tax the State officers, agences and instrumentalities, and whether or not the states can tax the Federal officers, agencies and instru mentalities. In a former article we discussed the case of McCulloch vs. Maryland, which involved the right of the State of Mary land to tax notes issued by a branch bank of the United States. This deci sion of the Federal Supreme Court in volved the question of supremacy in matters of taxation between the United States and the several states. It will be remembered that Chief Justice John Marshall, in delivering the opinion of the court, decided that the State of Maryland could not tax the bank notes issued by a branch bank of the United States for the reason that the bank was an agency or instrumentality of the Federal Government, and beyond the authority of state taxation. In this case it will he noted that the states cannot tax the agencies or instrumen talities of the general government. Some twenty-five years later, in 1870, the opposite question was presented to the Supreme Court of the United States in the case of Collector vs. Day, in which case it was decided that it is not competent for Congress under the Constitution of the United States to im pose a tax upon the salary of a ju dicial officer of a state. The Federal Constitution provides that Congress shall have power to lay and collect taxes, duties, imposts and excises to pay the debts and provide for the com mon defense and general welfare of the United States, but all duties, im posts and excises shall be uniform throughout the United States. One of the amendments to the Con stitution of the United States provides that the powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are re served to the states respectively, or to the people. T https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B y the Legal E ditor Under this authority Congress in 1864-65-66 and 67, enacted certain Fed eral statutes, providing that: “ T h e re shall be levied, collected and paid annually upon the gains, profits and income of every person residing in the United States, w h e t h e r derived fro m any kind of property, rents, in terest, dividends or salaries, or fro m any profession, tra de, em ploym en t or vocation, carried on in the United States or elsewhere, or fro m any source w ha te v er, a ta x of five percentum on N S of interest to ban k QUersE STIO are discussed by th e Legal Editor each m o n th . Any subscriber has the privilege of writing for in form ation and advice on legal sub jects, and will receive a direct re ply fro m our attorney, w ith ou t fee or expense. A brief of any su bject involving research in a com plete law library will be furnished for $10. In writing for in form ation , kindly inclose a 2-cen t sta m p for reply, and address “ Legal Editor, M id -C o n ti n en t Banker, 408 Olive Street, Saint L o u is.” the amount derived over One Thousand dollars.” Under the provisions of this Act a tax of $61.50 was assessed for the years 1866 and ’67, upon the salary of one J. M. Day, Judge of the Court of Pro bate and Insolvency, for the County of Barnstable, Massachusetts. This salary was fixed by law, and was payable out of the treasury of the state. Judge Day paid this tax under protest and brought his action against the Collector in the United States Circuit Court for the District of Massachusetts, for the recovery of this tax, and obtained judg ment for the amount in the trial court, and the case was taken by the Col lector of Internal Revenue to the United States Supreme Court by writ of error. Mr. Justice Nelson delivered the opinion of the Court, and in his opinion stated: “ Can the United States la w fu lly im pose ta x upon the income of an indi vidual derived fro m a salary paid him by a state as a judic ial officer of tha t state?” This is the proposition which was submitted to the Court for determina tion. Said Justice Nelson: “ T he suprem acy of the general gov ern ment, so much relied upon in the argum ents of counsel fo r the plaintiff in error, in respect to the question be fore us cannot be maintained. T h e two govern ments are upon an equality, and the question is w h e t h e r the power to lay and collect taxes enables the gen eral govern ment to tax the salary of a judicial officer of the state, which officer is a means or ins tru m e n ta lity employed to ca rry into execution one of its most im p ortan t functions, the ad min istration of laws which concerns the exercise of a right reserved by the state.” It was admitted that there was no ex press provision in the Constitution that prevents the United States from taxing the instrumentalities of the state, nor is there any express provision in the Constitution prohibiting the states from taxing the means and instrumentalities of the general government. Both cases rest upon necessary implication and are upheld by the great law of selfpreservation for the reason that any government, whose means employed in its operations, if subject to the control of another distinct government, can ex ist only at the mercy of that govern ment. The Court referred to the opinion in McCulloch vs. Maryland, wherein it was stated that the power to tax in cludes the power to destroy, and held that if either government could tax the agencies and instrumentalities of the other, that either could destroy the other, and that this was not contem plated by the Constitution nor laws of the United States. The judgment of the court below was affirmed, and it is now definitely de cided that the Federal Government cannot tax the agencies or instrumen talities of the state governments neces sary in their operation and in the per formance of their governmental func tions. 15 St. Louis, April, 1927 Compare Present DayBankingMethods With Those of Fifty Years Ago O N February 22, 1877, a tall, coun try youth of 18 summers re ported for duty as a collector at the old St. Louis National Bank, St. Louis, Mo. Although the open fields still held a lure for him, he had been fired with an ambition to become as sociated with a bank through the en couragement of his father. That first day was a long and strenuous one, but it convinced the young man he had found a job to his liking. That was fifty years ago and Irvin A. McGirk is still in the banking busi ness. On February 22 last he rounded received an offer from the National Bank of Commerce in St. Louis and began work there as third paying teller. In 1903 he was promoted to second teller and in 1907 to head paying teller, a post he has held for the last 20 years. “Many changes have taken place in banking in the fifty years I have seen come and go,” said McGirk. “When I began the capitalization of financial in stitutions was much lower than now, $500,000 being the usual amount. In those days business was rather light and St. Lous was still a small city. The old St. Louis National had but eight other employes in addition to two col lectors and the cashier and group of officers. “Banks in 1877 didn’t have the beau tiful and elaborate fixtures they now have. There was no cage for the teller, business being transacted over a coun ter. Money was kept under the counter out of sight, but within handy reach. “ To me it has been an interesting study to watch the changing methods of business transactions. A few years ago women seldom were in the line of patrons who came to my window. Now at least 40 per cent of my customers are women. Many of these are better informed in banking matters than the men. “As all bankers know, a teller must study human character and be able to judge correctly the people with whom he has to deal. One of the most im portant things is to be able to say yes (Continued on page 51) MIDLAND BANK LIMITED Chairman : T H E R IG H T H O N . R. M c K E N N A Joint Managing Directors : F R E D E R IC K H Y D E EDGAR W. W OOLLEY Statement of Condition December 31 st, 1926 RESOURCES Irvin A. McGirk out a half century of service and took an extra day off from his window at the National Bank of Commerce in St. Louis, where he now presides as head paying teller in charge of all the pay ing tellers. But the next day found him at his post full of vim and vigor, with the firm conviction that he still has be fore him a number of years of active service. In looking back over his career, Mr. McGirk likes to call attention to the fact that no other person can now duplicate his entry into the banking field, for the day he began—Washing ton’s Birthday—has since been made a legal holiday, and it would be impossi ble for one to start in the business on that day because banks are closed. Mr. McGirk worked for 21 years at the old St. Louis National Bank, ad vancing gradually from collector to a note teller, then to receiving teller and paying teller. In December, 1898, he https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $5 = £1 $ 3 5 6 ,0 8 2 ,6 7 9 -7 7 Cash In hand and Due from Banks 11 3,9 3 4 ,2 5 8 -1 5 Money at Call and Short Notice 1 9 4 ,2 6 7 ,9 1 0 -7 5 Investments •• •• •• 2 3 3 ,7 2 1 ,5 6 0 -1 0 Bills Discounted .. •• •• 1 ,0 02,2 99 ,9 63 -7 3 Advances .. •• •• •• Liabilities of Customers for Acceptances 1 8 5 .3 2 7 .2 2 5 and Engagements .. .. 3 4 ,6 8 2 ,8 7 3 -2 1 Bank Premises .. .. •• 3 2 ,4 6 9 ,0 4 5 -7 5 Investments in Affiliations •• 2 .1 5 2 .7 8 5 .5 1 7 - 96 42 LIABILITIES Capital Paid up •. Surplus .. .• •• .. Deposits .. .. .. .• Acceptances and Engagements . • 6 3 .3 2 8 .9 9 0 00 6 3 .3 2 8 .9 9 0 00 1,8 4 0 ,8 0 0 .3 1 1 -4 6 1 8 5 .3 2 7 .2 2 5 96 2 .1 5 2 .7 8 5 .5 1 7 - 42 Together with its affiliations the Midland Bank operates 23 60 branches in Great Britain and Northern Ireland, and has offices in the Atlantic Liners Aquitania, Berengaria and Mauretania. The Foreign Branch Office at 196 Piccadilly, London, is specially equipped for the use and convenience of American visitors in London. HEAD O FFICE: 5 THREADNEEDLE STREET, LONDON, E.C. 2, ENGLAND Mid-Continent Banker 16 What Is the Tendency of Farm Land Prices in Central Illinois? ARM lands in Central Illinois have always been considered among the best in the United States, and values are more stable than in most sections. Yet, since the war, and since the decline in prices of farm products, these lands have sold at new low levels. Today it is possible to buy good farm land as low as $150 an acre. Even with present prices of corn and cattle, the land is worth more than that, and many bankers have been wondering if now is not a good time to buy land before prices start on the up-grade. Others feel that the bottom has not been reached, and that, while the present is a poor time to sell farm land, it is likewise a poor time to buy it. In order to get the views of repre sentative bankers who have been close to the farming situation for many years, the editor of the Mid-Continent Banker asked a number of them in Central Illi nois to express their views both on present prices and the future trend. C. R. McElheny, cashier of the Corn Belt Bank, Bloomington, says: “At the present time there is very little land sold other than foreclosures or force sales. Good black level farm land with good improvements is selling from $150.00 to $175.00 per acre; in some cases a little higher. However, I think, after we get through this period of forced liquidation, our land values will become better, and I feel that within the next two or three years good land will sell in the neighborhood of $225.00. Farm land values are becoming a little more stable and we fell a little more optimistic about the future.” F https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B y Donald H . Clark Editor, Mid-Continent Banker “It is difficult to fix any definite price at which land can be readily sold,” says Ross R. Mattis, president of the TrevettMattis Banking Co., Champaign. “It is true that some very good farms have been selling as low as $150.00 or $160.00 per acre, while in other locali ties, where the land is of about the same quality, there are sales occasion ally at $175.00 to $250.00 per acre. The trouble is there seems to be no one in terested in buying land at this time, but we certainly think the price is low enough, and that rented farms are gen erally paying a fair interest on the in vestment, taxes, etc. “However, the recent decline in grain and low prices that have prevailed for some time are discouraging and inter fere with the demand for land. If farri ers could sell their products at a price that would give them a return for their labor and expenses that was any way near in line with the prices they have to pay for everything that they have to purchase, conditions would be very different, in our opinion. “ The sales at these low prices are usually forced sales, or the parties in sist on selling their land, and do so at the best price they can get offered.” “Land values here the past winter have topped at around $200.00 an acre for more improved lands sold private ly, and sold down as low as $130.00 an acre for average land at public sales,” says B. Van R. Moore, president of the Moore State Bank, Monticello. “ Sentiment here is rather mixed as tc the future price trend with good judges of farm land values, both opti mistic and pessimistic. The majority of our directors, however, feel that a slow, gradual improvement can be looked for, beginning next fall as increased stock ing tends to increase the fertility of the lands hereabouts which has been liter ally ‘corned to death’.” H. R. Gregory, cashier of the National Bank of Decatur, says: “ Farm lands which might recently be priced under ordinary circumstances from $200.00 to $250.00 an acre can now be purchased from $150.00 to $180.00 an acre. We do not believe that prices can go very much lower and, on the other hand, doubt whether they can go much higher in the immediate future. “We believe that the best grade of land in this vicinity can reasonably be valued at $200.00 per acre.” Geo. W. Telling, president Commer cial Trust and Savings Bank, Danville: “Lands in our vicinity differ widely in price owing to the fact that we have some lands lying right around Danville here that are very thin and are not considered very good agricultural lands, but that are valuable for the mineral. “When we get out a little away from Danville the land is very good and is such as you find through Central Illi nois, the poor lands being only four or five miles wide in this vicinity. “I think I should say our good lands are valued from $125.00 to $225,000 per acre, and as to whether they have reached their lowest price or not that I could not say.” Troy L. Long, president of the Taylorville National Bank, states: “ Our land values have depreciated fully 40 per cent, and in some instances as high as 50 per cent. Immediately following the war land values here reached an abnormal price, and then with the deflation of other commodities came the depression in land values. Lands are selling here now from $125 to $200 an acre, values being determined on accessibility to markets, location, roads and measurably so, as regarding improvements. “Values seem at their lowest. How ever, unless we see increased prices and improved quality of farm products 17 St. Louis, April, 1927 Bonds and a Bank’s Loan Structure ^THE source of a bank’s inJL come as well as its abil ity to meet its deposit and other liabilities rests funda mentally in the bank’s lend ing operations. — PH O T O G R A P H , C O U R T E SY O F T H E P R A IR IE F A R M E R Attractive and well-built homes add to the pleasure of life on an Illinois farm, and help to stabilize land values. I should not be surprised to see them go even lower.” “ The farm land sales of the past year or two are below those of 1913,” ex plains F. W. Longan, president Amer ican National Bank, Lincoln. “ They may be at their low figure now, selling at from $160.00 to $200.00 for A-No. 1 land. “ However, prices for farm products must advance in order to even main tain our present values, as the tendency is distinctly adverse to purchasing or managing land under the small returns now common. In fact, we discourage, as much as possible, putting the land upon the market as the prices are hav ing a discouraging effect upon our peo ple.” G. P. Lewis, cashier of the Millikin National Bank, Decatur, says: “Very little land is being transferred in this locality, and what little has been transferred, I learn from Mr. Bradshaw, one of our prominent dealers here, who is conversant with the situation, has been from $175.00 to $200.00, and one or two tracts have sold as high as $225.00.” “For the past thirty years we have been engaged in making farm loans and are now making them in approxi mately forty counties in the corn belt of this state,” says William Dighton, president of the First National Bank of Monticello. “ Our representative black, productive prairie land, fairly well lo cated and improved, is selling from $150 to $250 per acre, depending upon loca tion and circumstances. As to the trend of the market it cannot go higher until the farmer receives a higher return for https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis his produce and thereby put him in po sition to make more money, and if the present level of values shall be main tained, we fear that the price of farm land will still go somewhat lower. It would seem, however, considering the fertility of the soil, the location, hard roads, churches and schools, are factors in the end which make for value. “Representative farms in Central Illi nois should have a real value of from $175 to $200 per acre.” National Bank o f Republic Increases D ividend Rate Directors of the National Bank of the Republic of Chicago, at their regu lar monthly meeting March 17, voted to increase the annual dividend rate from 8 per cent to 10 per cent, the dis bursement for the present quarter be ing payable April 1 to stockholders of record March 24. The increase did not come as a to tal surprise in financial circles, because of the large earnings of the bank dur ing 1926, which totaled $1,243,717.00, equivalent to 18.54 per cent on the av erage invested capital of the institu tion. This was the largest amount earned on averaged invested capital of any of the banks in Chicago having assets of $50,000,000 or over. A com parison with banks throughout the country indicated the Republic’s earn ings for 1926 were near the top among the larger banks of America. I have mentioned puns. They are, I believe, what I have denominated them the wit of words. They are exactly the same to words which wit is to idea, and consist in the sudden discovery of relations in language.— Smith. Loans, of whatever type, possess in varying degree and composite such qualities as certainty of payment, rate of income and convertibility into cash. The banker, therefore, who would obtain maximum re sults, maintains such a rela tionship between loans, re serves and deposits as com posites as well as with re spect to the qualities pos sessed by his respective loans, as enables the bank to meet its liabilities and to earn the maximum return on the stockholders’ investment. And, to accomplish this, such a banker, in building the bank’s loan structure, uses as materials not only local loans and discounts but also com mercial paper, bank accept ances, bonds and mortgages, all of which he co-ordinates from the standpoints of cer tainty of payment, rate of in come, convertibility into cash and diversification with re spect to type, maturity, indus try and geographical location. Eternal vigilance is the price of maximum results, and we invite you to send to our Analytical Department a list of your bonds for analysis from the standpoints of cer tainty of payment, converti bility into cash, and diversi fication. First Illinois Company BONDS FOR INVESTM EN T C H IC A G O AURORA M IL W A U K E E DAVENPORT S T . L O U IS B o a t m e n ’ s B an k B ld g. 18 Mid-Continent Banker Statement o f Condition o f the St. Louis Joint Stock Land Bank, St. Louis, Mo., at the Close o f Business March 3 1 , 1 9 2 7 (0 RESOURCES LIABILITIES Capital Stock Mortgage Loans: This represents 14,300 shares of * stock fully paid ................................. $ 1,430,000.00 Secured by first mortgages on im proved farm lands and not exceed ing 50 per cent of the appraised value of the property....$23,272,710.00 Less payments on Prin cipal .............................. 898,861.25 Legal Reserve: This fund is contemplated by Fed eral Farm Loan Act and set aside for additional protection of our bondholders ........................................ Net Loans in force..............................$22,373,848.75 (Total appraised value of farms including buildings pledged as secur ity for above loans as determined by Federal Appraisers.$56,199,571.00) 225,000.00 Undivided Profits: This represents our net earnings to date, after paying dividends to stockholders in the amount of $418,775.00, and setting up reserves.. Farm Loan Bonds on Hand: 90,555.75 Special Reserve: This represents Farm Loan Bonds issued by this bank and not sold...... 350,000.00 This fund is set aside for unfore seen contingencies ......................... Real Estate: 35,700.00 Reserved for Dividend: This represents improved farms ac quired by foreclosure and carried at substantially less than the amount at which acquired................. This represents accrued dividend payable April 1, 1927 .............. 150,400.00 Bills Receivable: This represents amounts loaned to borrowers—other than mortgage loans—amply secured ....................... 32,175.00 Reserve for Unpaid Coupons: This represents an amount set aside for payment of coupons due on outstanding bonds not presented for payment ....................................... 70,051.16 Furniture and Fixtures: 27,342.50 Farm Loan Bonds Issued: This represents total investment in furniture and fixtures of $12,603.42.... This represents Farm Loan Bonds issued by this Bank and held by investors ............................................. 21,249,000.00 1.00 Delinquent Installments: This represents semi-annual install ments in process of collection, none of which are over 60 days past due.... Accrued Interest on Farm Loan Bonds: 5,199.00 This represents interest accrued but not due on bonds issued.............. Interest Accrued: This represents interest accrued but not due on: Mortgage Loans............... $372,748.49 Farm Loan Bonds on hand .................................. 3,942.08 Due Borrowers on Uncompleted Loans: This represents amounts advanced for borrowers in connection with loans in course of closing................. 376,690.57 15,925.42 Advanced Paym ents: This represents regular installments paid in advance by borrowers be fore maturity ..................................... Cash on Hand in Banks: This represents amounts due from banks and on hand ............................ 283,566.67 107,471.21 44,396.35 TO TAL LIABILITIES ................... $23,433,661.69 TO TAL RESOURCES ...................$23,433,661.69 0 O F F IC E R S A N D D IR E C T O R S L. L. BEAV E R S, President E. R. BRUCE, Vice-President W M . R. COMPTON, Jr., Assistant Secretary RHODES E. CAVE, Bryan, Williams & Cave, Attorneys B E N S. RANG, Vice-President, American Trust Company E. D. NIMS, President, Southwestern Bell Telephone Co. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W M . R. COMPTON, Chairman of the Board W M . H. DAN FO RTH , President, Ralston Purina Company C. L. HARRISON, President, Harrison Securities, Inc., Cape Girardeau, Mo. CHARLES W IGGINS, Capitalist W . E. R H EA, Attorney -© D. M. H A R D Y , Vice-President and Secretary G. K. HUG HEY, Treasurer LE SL IE DAN A , President, Charter Oak Stove & Range Company L E W IS T. TU N E, Superintendent, The Bradstreet Company W . P ALM ER CLARKSON, President, Pioneer Cooperage Company E. W . SLOAN. William R. Compton Company 19 St. Louis, April, 1927 Little Rock Bank Has Remodeled Interior Protecting the Customer A railroad company, whose securities are widely held, re cently called for redemption o n e o f its bond issues. Because o f a conversion privilege these bonds were selling in the mar ket forabout $350 more than their redemption value. Interior o f the American Southern T rust Com pany, Little H ock, Arkansas The American Southern Trust Com pany of Little Rock, Arkansas, has re cently completed extensive alterations and improvements to the interior of its banking home which, as the picture on this page will show, may be justly con sidered one of the most beautiful hank ing homes in the southwest. The bank, which is the oldest bank in Little Rock and the largest in the state of Arkansas, was founded in 1875 by eleven of the leading business men in the capital city at that time. It has been an important factor in the building of the State of Arkansas, and records show that loans were made to the state as far back as 1880 to assist in erect ing state buildings in Little Rock. Also loans were made to the financial board of the state back in the eighties to as sist in paying the current expenses of the state government, and assistance v/as given by the bank to some of the John Cotham, who has been con nected with the Desha Bank & Trust Co., Arkansas City, Ark., for several years, was recently promoted to the po sition of cashier. early railroad projects of the state. Today the bank has a personnel of 124 officers and employes, with a month ly pay roll of approximately $22,000. It is now serving over thirty thousand customers, one-third of the entire pop ulation of the city of Little Rock. Of the 480 state and national banks doing business in Arkansas 246 carry accounts with the American Southern Trust Company. The transit depart ment handles 10,000 checks daily, and approximately 18,000 checks are han dled in all departments of the bank every business day. The officers of the institution take pride in showing to customers and friends the large commodious banking quarters. Twenty-six tellers’ windows are conveniently arranged in the bank ing room to serve depositors. Total re sources of the bank are approximately $18,000,000. A. B. Childs, cashier of the Morris County Bank, Texarkana, Ark., has re signed to accept a similar position in a bank in Farmersville, Texas. John Cherry has succeeded Mr. Childs at the Morris County Bank. H. M. Dollins of Paragould, Ark., has accepted the position of cashier of the Bank of Lafe, Ark., succeeding Harvey Farrel. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis As the conversion privilege would expire automatically thirty days prior to the re demption date and investors could secure this profit only by taking quick action, Amer ican Exchange Irving Trust Company brought these facts to the attention o f its corre spondents. Following are extracts from acknowledgments received: " " " T h e information is o f material v a lu e T W e thatik you fo r this rather unusual service. ” W e greatly appreciate r e a l service ofthis kind,which we are about to pass along f o r the benefit o f our customers. ” American Exchange Irving Trust Company endeavors at all times to protect and fur ther the interests o f its cus tomers. O U T - O F - T O W N OFFICE A m e r ic a n I r v in g T E rust xchange C om pany Woolworth Building, New York H. I. W h ite , president of the Bank of Belleville, Ark., has sold his interest in the bank. 20 Mid-Continent Banker One of 1927's Best Agency Opportunities In Arkansas with the Royal Union Business conditions are exceptionally g o o d in A r kansas. L ife Insurance sales are increasing rap idly in that State. It is a great field with trem en dous life insurance selling possibilities. It is im portant, how ever, in considering Arkansas from an agen cy stand point, to understand that even with the unusual prosperity and responsive ness o f the territory, life insurance opportunities are greatest there with the R oya l U nion. ROYAL UNION LIFE BUILDING Corner 7th and Grand Avenue, Des Moines, Iowa W e are n ow ready to place representatives in every section o f the State. Get in on the “ ground floor” w ith this strong and progressive com pany. W e offer an attractive General A g e n cy contract to men w ho can sell. Royal Union Life Insurance Go https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D E S M O IN E S, IO W A A. G. TUCKER, President 21 St. Louis, April, 1927 Arkansas Convention to Be Held at Little Rock, April 27 and 28 HEN the financial genius, the Arkansas Banker, wends his way into Little Rock for the an nual convention of the Arkansas Bank ers Association, April 27 and 28, he will have found the true metropolis of the “ Wonder State”—Arkansas. It is rich in advantages bestowed by Nature and is endowed with a commercial and indus trial integrity which fortifies its pres ent stability and guarantees future growth and prosperity. Little Rock is a city with a social and moral character which justifies its title of “ City of Roses.” It is the seat of the State Government, and is situa ted on the Arkansas River at the geo graphical center of the state, and at a point where the foothills of the Ozark Mountains sink into the rich, level plains and river bottoms of Eastern Arkansas. It is also the seat of Pu laski County and is without the slight est doubt the center of commerce, in dustry and finance for Arkansas, and has been since the territorial days, the town site having been discovered by the intrepid French explorer, Bernard W By J. S. Davant, Jr. Publicity Director, Chamber of Commerce, Little Rock, Ark. De La Harpe, in 1722, and incorporated as a town in 1825. Prior to Little Rock’s foundation the location had been the site of a Quapaw Indian village and was known by the French traders under the name of “Petite Roche” from an outcrop of rock which juts into the river from the south shore. Natural advantages of location have been further developed by excellent railroad connections, so that every in crease in the prosperity and develop ment of Little Rock is directly re flected by the prosperity and develop ment of the entire state. As Arkansas, “ The Wonder State,” is literally a treas ure house of valuable mineral deposits, forests and fertile farms, with unex celled opportunities for the develop ment of industrial power, the future of Little Rock is extremely bright. Covering an area of seventeen and one-half square miles with stately sky We exten d our good w ishes to m e m b e r s o f th e Arkansas Bankers Association in con ven tion as se m b le d at L ittle R ock, April 27 and 28— and a cordial w elcom e to th e m e m b e r s of th e Executive C ouncil o f th e A. B. A ., which m e ets at H ot Springs, M a y 1 to 5. scrapers of modern architecture, tow ering high above the many very hand some public buildings, housing depart ments of city, county and state govern ment, Little Rock impresses visitors with its neat, efficient appearance. Practically the entire city and the in dustrial sister city of North Little Rock, on the north shore of the broad Arkan sas River, is paved with asphalt and concrete, Little Rock alone having 231 miles of paved thoroughfares. Five great bridges span the river, connect ing the two cities and carrying 90 per cent of the traffic between the two halves into which the river, in its east ward flow, cuts the state. Two of these great structures, the Army Memorial and the Navy Memorial bridges, are engineering triumphs of gracefully arched, reinformed concrete, powerful and beautiful, each an asphalt-paved boulevard 60 feet wide and one-half mile long. The other three, railroad bridges of steel, carry the trains of the Missouri Pacific and Rock Island sys tems. Downtown Little Rock has an aver- Greetings 37th Annual Meeting of Community Bank & Trust Co. Hot Springs National Park Arkansas ARKANSAS BANKERS ASSOCIATION Little Rock April 27-28 DEPARTMENT G IV E Y O U R C U S T O M E R S A L E T T E R T O US W H E N T H E Y C O M E TO H O T S P R IN G S oherty y Hamp Williams J. N. Coppock J. O. Langley . Herman Gillham https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis . . President Vice-President . . . Cashier . Asst. Cashier Investment Bankers J. BROOKS CONNELLY, District Manager Boyle Building Little Rock 22 Mid-Continent Banker CH O O L K BRANCH VE BANK age elevation of 290 feet above mean tide-water level in the Gulf of Mexico, the residential highlands to the west and north averaging 150 feet higher. The temperature, with rare exceptions, ranges between 40 and 90 degrees Fah renheit, averaging annually 61 degrees. Rainfall averages 31.7 inches annually. Health conditions are excellent. Eleven local banks and a branch of the St. Louis Federal Reserve Bank, magnificently housed, represent the financial district. These institutions employ more than 450 men and women with an annual pay roll in excess of $117 500. Bank clearings for 1926 were $754,627,361. The twelve local banking institutions had, during 1926, a com bined capital of $3,500,000; surplus, $2,288,000; deposits, $51,170,000. Post office receipts for 1926 were $959,731.53, while building permits for same year totaled $5,968,226.25. These figures do not cover the permits issued to North Little Rock, Fort Roots and other sub urbs. Public school enrollment (Little Rock) in Sepember, 1926, was 4.505. More than 215 factories, employing 12,509 workmen, who earn a pay roll of $20.450,000, manufactured $125,000,000 worth of products in Greater Little Rock in 1926. Inbound carload ship ments amounted to 58,000 cars, while 48,000 carloads of merchandise were shipped out of the city in 1926. This does not include less than carload ship ments. Little Rock is fourth largest in land cotton market in the United States, purchasing over $15,254,582 worth of cotton in 1926. Retail sales will gross $125,000,000 annually in the city’s stores, with the wholesale business reaching approximately the same figure. The Rose City is now growing rapid ly and properly boasts an enviable civic spirit. The united efforts of the Little Rock Chamber of Cemmerce, the Clearing House Association and civic clubs, progressive, enterprising organ izations, insure a continual growth of good citizenship. The combined popu lation of Greater Little Rock is esti mated to be 130,000, as compared with 57,762 in 1910. The Little Rock Chamber of Com merce, which was organized in 1867, is supported by the leading citizens of the city and is the community service or ganization that functions for civic, com mercial, industrial, educational and physical growth of Little Rock. It is the instrumentality through which men and women with a vision for a larger and better city may, and do, act. Connelly Nam ed M anager for Little R ock Office K now n the W orld Over — as a Health Resort H ot Springs is also fortunate in its strong banking institutions. E very departm ent o f The Arkansas N ational Bank is organized to give its customers the help which is expected o f an efficient banking connection. T h e officers o f this bank are unsparing in their efforts to please correspondent institutions. The A R K A N S A S NATIONAL BANK of HOT SPRINGS, ARKANSAS C H A R L E S N . R I X , President R O B E R T N E I L L , Vice-President C. E. M A R S H , Vice-President F. C. S T E A R N S , Vice-President J O H N G . H IG G IN S , Vice-President D . O. S IM S , Cashier J O H N K E I R S E Y , Assistant Cashier G. H W O O T T E N , Assistant Cashier https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Announcement has been made of the appointment of J. Brooks Connelly as Little Rock manager of the Henry L. Doherty & Co., investment bankers. Mr. Connelly succeeds C. A. Marshall, for mer field manager of the Doherty com pany, in the Little Rock office, 201 Boyle Building, who goes to Memphis as district manager for four states. Well known in business and club cir cles of Little Rock, Mr. Connelly has been a resident of that city for the past 25 years, having received his education there, with the exception of a course at Valparaiso University. For five years Mr. Connelly had charge of the office of the Arkansas Water Com pany, later acting as paying teller for the Southern Trust Company. Follow ing this connection he was treasurer of Henry Leigh & Co., from which po sition Mr. Connelly filled the capacity of manager of the Warren branch of the American Grocer Company. Prior to his connection with the Doherty company in January, 1926, Mr. Connelly represented the Waterloo Milling Com pany as sales manager for Arkansas. The promotion of Mr. Connelly to the position he now fills is in keeping with the Doherty plan of bringing local men, St. Louis, April, 1927 who by unusual records with the com pany merit big advancement, into the organization as head of their various branches, and to fill other important positions of responsibility. During the past year Mr. Connelly, as sales representative for Henry L. Do herty & Co., has served a wide clien tele of prominent investment and se curity holders in Little Rock and throughout the state. In this capacity he made a most enviable record with the company. The Henry L. Doherty & Co. is one 23 Since Grant Was President CjPO R fifty-two years this c/ bank has continuously served the people of A r kansas and has been closely identified with the state’s progress and development. Brooks Connelly of the largest investment banking firms in the nation today. As fiscal agents for the Cities Service Company, the Do herty company has placed its securities with some of the largest insurance com panies, banks, etc., in the United States, as well as numerous college and university endowment funds, in addi tion to more than 250,000 other individ ual investors. Its strength and stability are evidenced by its Million Dollar capital, resources of overSeventeenMillionDollars, a d e q u a t e r e s e r v e , strong directorate, Federal Reserve membership and conservative management. Roy Anderson Heads Group Six. Roy Anderson, cashier of the Arkan sas Bank and Trust Company, Texar kana, Ark., was elected chairman of Group Six of the Arkansas Bankers’ Association at its annual meeting held at Texarkana. Other officers elected are: H. A. Fincher, cashier of the Peo ples Bank of Waldo, vice-chairman, and A. L. Propps, cashier of the First State Bank of DeQueen, secretary. Arkansas* AMERICAN SOUTHERN TRUST COMPANY Little Rock, Arkansas New Bank A t Cotton Plant. The new Woodruff County Intermedi ate Bank has been organized at Cotton Plant, Ark., with capital of $20,000.00. D. H. Echols is president and John I. Andrews, secretary. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mid-Continent Banker 24 Interesting Men in the Banking Field Thirty-Sixth P r e s i d e n t Arkansas Association of Robert Neill, who has the distinc tion of being the thirty-sixth president of the Arkansas Bankers Association and first vice-president of the Arkan sas National Bank of Hot Springs, is strictly an Arkansas product. He was born and raised in that state and re ceived most of his education and bank ing experience within its boundaries. Those who don’t know Mr. Neill, bet ter known as “Smiling Bob,” would not suspect that his inauguration as president of the Arkansas Association came only three days before his fortysecond birthday. He looks at least ten years younger. However, twenty-five years of banking experience have been chalked up to his credit. Mr. Neill was born at Batesville, In dependence County, Arkansas, on May 1 1884, the son of Robert Neill and Mary Byers Neill. He was graduated from Arkansas College, Batesville, in 1901, and went to work in the Peoples Savings B'ank of Batesville in the spring of 1902, as bookkeeper, teller, etc. At this time he worked under James P. Coffin, cashier of the bank and eleventh president of the Arkan sas Bankers Association. Later he became assistant cashier of the First National Bank of Bates ville under John Q. Wolf, the seven teenth president of the Arkansas Bank ers Association. In Januax-y, 1913, he resigned as as sistant cashier of the First National Bank of Batesville and became a Na tional bank examiner, which position he held until July, 1915, when he re moved to Hot Springs to become cash O F F IC E R S F. W . Niemeyer, President C. S. M cCain, Vice President W . C. Ribenack, V ice President Julian G. Blass, Vice President H . C. Couch, Vice President Gordon H . Campbell, V ice President R. C. Irvine, V ice President and Cashier E. J. Risley, V ice President and Trust Officer H . L. Remmel, Chairman of the Board A . Friberg, V ice President and Manager Insurance Department Jas. C. W ilso n , V ice President E . E. Beaumont, Secretary C. E . Crossland, Treasurer J. L . Spence, Jr., Assistant Cashier J. A . Greeson, Assistant Secretary Brooks Bradley, Assistant Cashier C. F. Sieber, Auditor Sam Frauenthal, General Counsel Progress! Each succeeding convention o f the Arkansas Bankers A ssociation results in further a d vancem ent o f both progressive business m eth ods and sound banking principles. It is the desire o f the officers and directors o f the Bankers Trust C om pany o f Little R ock , in similar measure to constantly increase the value and character o f our service to banking correspondents. New Rusi?iess Cordially Invited Bankers Trust Company M ain at Second L IT T L E R O C K , A R K A N SA S ‘THE BANK OF SERVICE” Safety Pay Envelopes S ta te m e n t Envelopes H E C O —C H I C A G O H E C O — C H IC A G O https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ier of the Arkansas National Bank. He served in this position until 1920 when he was promoted to the first vice-pres idency of the bank. At Hot Springs, Mr. Neill has been under the constant inspiration of Captain Chas. N. Rix, founder and president of the Arkansas National Bank and third president of the Arkansas Bankers Association. During the World War Mr. Neill was assistant manager for Arkansas under W. L. Hemingway in the second Liberty Loan campaign and a district man ager in the succeeding campaigns. He served as treasurer and director of the Hot Springs Red Cross, the Salvation Army and welfare organizations, and is at the present time a director in the local chaixxber of commerce, member of the board of public affairs of the city administration, treasurer and mem ber of the board of directors of the Hot Springs Golf and Country Club, vice-president and director of the City Ice Company and of the Hot Springs Mountain Observatory Company. St. Louis, April, 1927 Mr. Neill is a Methodist and is a member of the board of stewards and treasurer of the Central Methodist Church of Hot Springs. In 1907 Mr. Neill married Miss Ida Percy Wing of Boonville, Missouri. They have one child, a son, Robert Neill, Jr., who is now a freshman in the University of Arkansas. Mr. Neill has been an active worker in the Arkansas Bankers Association for many years, and for three years (1918-1921) was one of the Arkansas representatives on the Executive Coun cil of the American Bankers Associa tion. His hobbies, aside from banking, in clude fishing, hunting and golf. Resources More T h a n $1,100,000.00. The recent statement of condition of the Security Bank of Hot Springs, Arkansas, shows total resources of more than $1,100,000 with deposits of more than $876,000. John B. Foote is presi dent of the bank; L. D. Cooper, vicepresident; A. S. Goodwin, cashier; and B. F. Pritchard, assistant cashier. Hugh 25 of Sulphur Springs, Ark., was elected chairman of Group Three of the Arkan sas Bankers Association, at a meeting held in Springdale. T he Bank of Hoxie, Ark,, has Plans are being made by the Peoples John Baggett has been elected assist ant cashier of the First National Bank, Prairie Grove, Ark., to fill the vacancy caused by the resignation of W. N. Graue. Mr. Baggett was formerly a teacher in the Prairie Grove High School. Bank, Magnolia, Ark., for the erection of a new bank building. Seelig L. M undt has resigned as vice- president of the Interstate Bank, Helena, Ark. National K now n A m o n ¿ T ri-S ta te R egion B anks Houston of the real estate de partment of the Union Trust Com pany, Little Rock, Ark., has resigned to become vice-president of the M. E. McCoy Company, realtors. Storm O. W h a le y , cashier of the Bank W ill Attend A. B. A. Convention for its efficient Transit De partment and its knowledge of conditions in its territory. — The U CSj P meets these b a n k s on t he c o m m o n ground of“working together to mutual advantage.” Inquiries invited. Correspondence promptly acknowledged. & P lanters TRUST COMPANY Forward with M em phis — Since ’ 69 M E M P H IS W alter H . Land, vice-president of the N a tional Stockyards National Bank, at the St. Louis National Stockyards, will represent that institution at the convention of the Arkansas Bankers Association at Little Rock. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis in creased its capital stock from $10,000 to $25,000. TENNESSEE Mid-Continent Banker 26 E x ecu tiv e Council W i ll Meet in Hot Springs The 1927 spring meeting of the Ex ecutive Council of the American Bank ers Association will be held at the New Arlington Hotel, Hot Springs, Arkansas, May 2-5. This meeting is representa tive of the organized relationship of some 22,000 banking institutions located in every state in the Union, and it ranks second in importance only to the general convention of the American Bankers Association, which is held each year in the fall. The Executive Council holds admin istrative authority of the association in the intervals between annual sessions and consists at present of 140 members made up of representatives of the American B'ankers Association member ship in each state, proportionate to their members; national officers of the asso ciation and the heads of its various divisions, sections and commissions are also members. Members of the Board of Control of the State Secretaries Section are ex pected to attend the spring meeting and other state secretaries are cordial ly invited. The members of the Board of Control of the State Secretaries Sec tion is scheduled to hold its meeting in room 236 of the New Arlington Hotel at 9:30 a. m., Monday, May 2. Presi dent Harry Smith hopes every member of the board will be present, and invites all other secretaries who are in Hot Springs to sit in. During the four-day session at Hot Springs reports will be presented by the National Bank, Savings Bank, State Bank and Trust Company divisions of the association. Reports will also be received from the American Institute of Banking, Clearing House and State Bank sections of the association and from its Agricultural, Commerce and Marine, Economic Policy, Public Edu cation and Public Relations commis sions. The Administrative, Federal Legisla tion, Fiftieth Anniversary, Finance, In surance Membership, Non-Cash Items, Protective, State Taxation and Special Taxation committees will present re ports, and there will also be meetings of the Federal Legislative Council, State Legislative Council and Foundation BANK. ~ -s t r u c t u r e s ' B U I L T ' BY ‘ S P E C IA L IS T S « ♦ + * Trustees. To these latter have been assigned the duties of creating and ad ministering a plan of application for the $500,000 educational foundation fund inaugurated by the association in 1925. Melvin A. Traylor, president of the American Bankers Association and president of the First National Bank and the First Trust and Savings Bank of Chicago, will preside over the meet ings of the Executive Council. The en tertainment program includes a golf tournament for both ladies and men, automobiling and other special enter tainment not yet announced. Deposits Now Over $950,000.00. The recent statement of condition of the Como Trust Company of Hot Springs, Arkansas, shows deposits of more than $950,000.00, with capital of $60,000 and surplus and profits of $81,000.00. The bank was organized in April, 1916, and now transacts a com mercial banking business, operates a trust department, also abstract of title, insurance and real estate departments. E. N. Roth is president of the bank. Stanley Lee is vice-president and cash ier; G. E. Tarkington and H. A. Jones, vice-presidents; A. A. Reynolds, secre tary-treasurer; A. Johnson and F. K. Williams, assistant cashiers. The First National Bank (1864) and the Central-State National Bank (1873) Consolidated July 6, 1926 Charter No. 336 The FIRST NATIONAL BANK Memphis, Tenn. Who ■c o n fin e their e ffo r t s to this one line should be- t h e m o st sa lte d to the n e e d s o f th e barker a.nd to the com fort * o f h is c u s t o m e r s . This bank is always on the alert to increase its measure o f usefulness to its correspondents in the m id-south. Y o u will find us prepared to render a service com mensurate with Y O U R needs. INVESTED CAPITAL RET •U5 •TELL YOU ABOUT OUHn S b a v i c i . L .D .L A C Y COM PANY S Y N D IC A T E , T R U ST B U IL D IN G - ST . L O U IS , M O . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $2,000,000 RESOURCES OVER $ 2 2 ,000,000 T H E O N L Y N A T IO N A L B A N K IN M E M P H I S St. Louis, April, 1927 21 Tw enty-seven New A. B. A. M em bers in Arkansas R. C. Irvine, A. B. A. vice-president for Arkansas, has secured twenty-seven new A. B. A. members in Arkansas since the first of the year. Texas is the only state to have secured more members during the same period of time. The new members include the Peo ple’s Bank of Peach Orchard, Farmers Bank of Marmaduke, Bank of Swifton; First National Bank, Black Rock; Farmers and Merchants Bank, Reyno; Norphlet State Bank, Bank of Dierks, State Bank of Leola; Bank of Banks; Bank of Wabbaseka; Belleville Bank; First State Bank, Parkin; Bank of Ola; Logan County Bank, Scranton; Farm ers Bank, Casa; Citizens Bank, Benton; Bank of Ashdown; Bank of McGasgill; Perry State Bank; Bank of Houston; Farmers State Bank, Prairie Grove; Dorcheat Bank, Taylor; Bank of Ozan; First National B'ank, Dardanelle; First National Bank, Ozark, and Bank of Montrose. Mr. Irvine is well known to Arkansas bankers as the vice-president and cash ier of the Bankers Trus1’ Company of Little Rock. This institution, accord ing to the last published statement, had total resources of approximately $9,000,00, with deposits of more than $8,500,000. H. L. Remmel, chairman of the board of the bank, is one of Arkansas’ pioneer bankers and a former president of the Arkansas Bankers Association. Col. Remmel is a director of the Arkansas Power and Light Company; he has served in the Arkansas legislature; and Remmel Dam, on the Ouachita River, is named in his honor. Miss M innie A. Buzbee N ow W ith Little R ock Bank Miss Minnie A. Buzbee has been elected manager of the Business Exten sion Department of the American Southern Trust Company of Little Rock, Arkansas. This is really coming back home for Miss Buzbee, as she was the first advertising manager for the Amer ican Bank of Commerce and Trust Com pany of Little Rock, which later was consolidated with the Southern Trust Company, forming the American South ern Trust Company. Miss Buzbee has been away from Lit tle Rock several years, in New York and Minneapolis. For the past two years she was advertising manager for the Minneapolis Trust Company, which position she resigned last Christmas to return to her home in Little Rock. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BANK OF NEW SOUTH WALES, Australia Paid-Up Capital $30,000,000.00 Reserve Fund - 23,750,000.00 Reserve Liability of Proprietors - 30.000,000.00 $83,750,000.00 3tfih resept.,A Sl926 EST A B L ISH E D 1817 H e a d O ff ic e i G E O R G E S T ., S Y D N E Y , New Sou th W ales L o n d o n O f f ic e : TH READ N EED LE S T ., E. C. } $410,975,720.00 O S C A R L IN E S , G e n e r a l M a n a g e r 431 Branches and Agencies in all A u stralian States, New Zela n d , F iji, Papua, M an dated Territory of New G u in ea and London A u s tr a lia P opulation , 6,000,000; Area, 2,974,581 square miles; Sheep, 80,110,000; C attle, 14,350,000; H orses, 2,400,000; Im ports, $785,500,000; E x p o rts,$805,600,000. A n n u a l V a lu e o f A u s tr a lia ’ s P ro d u c ts Agricultural, $405,625,000; Pastoral, $514,215.000; D airying, $210,559,000; M ining, $111,159,500; M anufacturing, $1,742,888,000; T otal, $2,984,446,500. F O R E IG N B IL L S C O L L E C T E D —Cable rem ittances made to, and Drafts drawn on Foreign places D I R E C T . Circular N otes issued, N E G O T IA B L E T H R O U G H O U T T H E W O R L D . St. Louis A g en ts: N A T IO N A L B AN K OF C O M M E R C E Mid-Continent Banker 28 Louisiana Convention to Be Held at Baton Rougre, April 20-21 B ANKERS attending the 1927 an nual convention of the Louisiana Bankers Association, to be held at the Istrouma Hotel in Baton Rouge, April 20-21, will have an opportunity to visit one of the most interesting cities in the United States. Baton Rouge was incorporated in 1817 and has grown from a population of 1,209 in 1900 to a population of 45,000 in 1927. It is the capital city of Louisiana, and in 1922 it ranked as sev enth port in the United States. It is the head of deep water naviga tion and the largest ocean going ves sels afloat can come to Baton Rouge at all seasons of the year. Baton Rouge is both an industrial city and a city of homes. Its educa tional facilities are excellent. There are free institutions for students from the primer to the university degree. Baton Rouge is the home of the new Louisiana State University and Agricul tural and Mechanical college, on which nearly $5,000,000 has been spent, and $2,000,000 additional is to be spent be fore the work is completed. Baton Rouge has six grade schools and three high schools for white chil- Camnanile, Louisiana University, Baton Rouge dren, besides two grade schools and one high in suburbs, and two grade schools and one high school for negroes. Besides the schools mentioned, Baton Rouge has the St. Joseph’s Academy and Orphanage for girls, and St. Vin cent’s Academy for the boys, Louisiana State School for the Blind, Louisiana State School for the Deaf and the Pro testant Orphans’ Home. Baton Rouge has a Community Cen ter, the Victory Park and Community Club, with a beautiful pavilion, a swim ming pool, a bath house and many orna mental structures. Baton Rouge has 17 churches, repre senting nine different denominations. Baton Rouge has a mean temperature of about 55 degrees during the three winter months and the thermometer sel dom goes below freezing. Building permits were granted for $2,295,455.80 construction in 1924 and for $1,459,120.42 in 1923 and $1,421,845.00 in 1922 and $1,493,387.00 in 1921. Permits for 1925 amounted to $9,237,547. The post office receipts for 1925 were $18,966.69, against $42,000 for 1910. Baton Rouge has a rice mill with a capacity of 1,000 barrels a day. The THE B A N K of BATON RO U G E ORGANIZED 1889 BATON ROUGE, LOUISIANA A progressive, successful, up-to-date institution, managed by active business men. Over thirty-seven years ago this Bank was organized and during the entire period has preserved its individuality. It has gained in strength year by year through its own efforts, with out merger or consolidation. Upon this record we cordially solicit any business you may have to transact in this section of Louisiana. T H E O L D E S T B A N K IN T H I S SECTION OF THE STATE Capital, Surplus and P r o f i t s ............................................. $ 785 , 9 1 7 .69 Total R e s o u r c e s .............................................................................................6, 2 ^ 9, 292 . 9 / O FFICERS JOE GEBELIN, President EUGENE CAZEDESSUS, Vice-President KING H. KNOX, Vice-President W. L. WARD, Vice-President DUCHIEN I. CAZEDESSUS, Vice-President and Trust Officer SAMUEL G. LAYCOCK, Vice-President W. T. PALFREY, Cashier FRED S. BOWES, Assistant Cashier https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 29 St. Louis, April, 1927 3iic n x ic IX XI h x : 3iiC oac >:ic 2< k : L. M . POOL, President J. A. B A N D I, Vice-President W. T. M A R F IE L D , Vice-President JOHN D AN E , Vice-President F R E D BRENCHLEY,Vice-President W. P. O ’NEAL, Vice-President :>*jc rXJC 3UC. ~1 W. J. PILLO W , Cashier A. J. C R O ZAT, Assistant Cashier G. J. F R U TH A LE R , Assistant Cashier W. N. LOUQUE, Assistant Cashier W. D . K IN G STO N , Trust Officer J. H. W EIL, Ass’t Bond Officer R.W . B R A D Y , Ass’t-Mgr. Foreign Dept. The Marine Bank & Trust Company NEW ORLEANS, LA. R esou rces O v e r Thirty M illion D ollars L, ACCOUNTS OF BANK S A N D BA N K ERS IN V IT E D YOU R IN TE RESTS W IL L R E C E IV E PERSO NAL A T T E N T IO N OF OUR O FFICERS M* :...... «V--------V « ~ ------ « K- combined output of the sawmills of Baton Rouge is 60,000 feet a day. The Mengel company of Louisville has established a large hardwood and veneer plant at Baton Rouge, and the Louisiana Chemical Company spent $750,000 on a new plant. The Carnegie Steel Company recent ly purchased a river frontage of 2,000 feet at Baton Rouge, and will erect a distribution plant for the southwest, receiving materials and transshipping by ocean steamer, river barge and rail roads. Tw o of Baton R ou ge’s b eautiful new bank buildings: A t right— th e twelve story building owned by the Louisiana N ational Bank and th e Louisiana Trust and Savings B ank. Below— the new h om e of th e U nion Bank and Tru st C om p an y , com pleted in 1926. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ixîcJ] Baton Rouge is the home of the largest oil refinery in the world, the Standard Oil Company of Louisiana, which employs 5,400 people and oper ates with a capitalization of $75,000,000. The plant covers more than 1,600 acres of ground. Mid-Continent Banker 30 Baton Rouge is served by six lines of railroads penetrating the state in all directions. Freight receipts for 1925 were $15,500,000, nearly four times the amount of ten years ago. The total amount of money deposited in the banks of Baton Rouge on De cember 31, 1926, was more than $16,000,000, and the combined resources of, the three banks were over $19,100,000.00. W h itn e y Central Banks Open T w o Ne w Branches Within the past few weeks the Whit ney Central Banks of New Orleans have opened two new branches making a total of twelve, well-located and ac tive offices scattered throughout the city. One of the new branches is located at Canal and Broad streets, with L. A. Henline as manager. The St. Roch Mar ket branch, located in a new building at the corner of St. Claude avenue and Spain street, is in charge of L. J. Burg. Total rescources of the Whitney-Cen tral banks are now in excess of $83,000, 000 . M arine Bank Resources Over $36,000,000 Total resources of the Marine Bank & Trust Company of New Orleans, La., as shown by a recent statement of con dition, are in excess of $36,300,000. Cap ital stock is $2,000,000 and total depos its are more than $26,000,000. T h e A m it e W ill Attend State M eeting April 20-21, Baton Rouge C. B. Thorn, vice-president, and G. H. Bernard, assistant cashier, are two of the officers of the Interstate Trust and Banking Company of New Orleans, Louisiana, who will attend the annual convention of the Louisiana Bankers Association to be held April 20-21 at Baton Rouge. Bank & T ru s t Company, Amite, Louisiana, has let contract for the erection of a new banking home to cost approximately $56,000.00. ** I rH E names of these institutions have always stood for ail that is dependable in financial affairs and service* C. B . Thorn The recent statement of condition of the Interstate Trust and Building Com pany shows total resources in excess of $17,100,000, with deposits of approxi mately $14,000,000. You will find here the organi za tion the experience and the facilities necessary to render real co-operation* ¿*3 tsf It will b e a pleasure to have you visit us while you are attending the convention* LOUISIANA NATIONAL BANK Louisiana Trust & Savings Bank Baton R ouge, Louisiana Resources Dec. 31, 1926, $ 7 ,8 0 1 ,1 9 3 * 9 0 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis G. H . Bernard Other officers of the bank include Lynn H. Dinkins, president; Donald Yarbrough, vice-president; W. T. Hall and L. J. Daniels, assistant vice-presi dents; and C. W. Hogan, R. G. Klotter and Charles Karst, Jr., assistant cash iers. H. M. Young is secretary. St. Louis, April, 1927 Shreveport Bank Celebrates Fortieth Anniversary Ben Johnson, well known tanker and president of the Commercial National Bank of Shreveport, Louisiana, is a man who will be found, almost invaria bly, in attendance at the Louisiana Bankers convention. Mr. Johnson’s bank recently cele brated its fortieth anniversary with a big birthday party that was attended by more than 30,000 people. The bank now has resources of more than $20,400,000 with deposits of more than $18,100, 000 . Other officers of the bank include R. T. Moore, chairman of the board; S. G. 31 and cages extend down both sides and across the back of the main banking room. Mezzanine floors extend over the cages at the back and the entrance lobby in front. A marble staircase in the center of the lobby leads to the safe deposit vaults in the basement. The vault door is of Donsteel and weighs twenty-one and a half tons. There are 1,690 safe deposit boxes. Officers of the bank include W. P. Barnes, chairman of the board; W. P. Connell, president; D. M. Reymond, E. G. Davis, Chas. D. Reymond, Hy. Cohn, Jr., and B. B. Taylor, vice-presidents; J. B. Heroman, cashier, and J. A. Clements and Emile Marchive, assistant cashiers. Combined resources of the hanks are in excess of $7,800,000. Resources o f Union Bank Are M ore Than $3,676,000 The new home of the Union Bank and Trust Company of Baton Rouge, Louisiana, a picture of which is shown elsewhere in this issue, was opened to the public in July last year. It was completed at a cost of approximately $175,000. This bank, which is Baton Rouge’s newest bank, was organized in January, 1918, and now has deposits of more than $3,328,000 and total resources of more than $3,676,000. Officers include Joe Gottlieb, presi dent; Wade H. Bynum, Louis U. Babin and A. T. Prescott, vice-presidents; A. McB. Jackson, vice-president and cash ier; and Theo. G. Kaufman, assistant cashier. Welcome, Louisiana Bankers The Union Bank and Trust Company of Baton Rouge extends a cordial wel come to Louisiana bankers in conven tion assembled, April 20 and 21, at Baton Rouge. Ben Johnson Sample and P. C. Willis, vice-presi dents; M. Ricks, assistant vice-presi dent; Val H. Murrell, cashier; R. F. Sebastian, assistant cashier; A. O. Graves, assistant cashier; J. A. Wal den, assistant cashier; Tyson Cleary, assistant cashier, and J. G. O’Brien, trust officer. Founded in January, 1918, the Union Bank and Trust Company is now located in its new banking home, and is thoroughly equipped to serve you in every way at all times. Resources Now Over $ 3 ,6 7 6 ,9 0 0 .0 0 Baton Rouge Bank Housed in Tw elve-Story Building The new twelve-story home of the Louisiana National Bank and the Louisiana Trust and Savings Bank of Baton Rouge, Louisiana, was opened to the public in September, 1925. The banks occupy the first two floors and ' the basement of the building. The main banking room has both a side and a front entrance. It is fin ished in tavernelle marble with cane stone walls. Officers’ quarters are lo cated at the left of the main entrance https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Union Bank and Trust Company B A T O N R O U G E , LA. JOE G OTTLIEB, President W A D E H. BYN U M , Vice-President LOUIS U. BABIN, Vice-President A. T. PRESCOTT, Vice-President A. M cB. JACKSON, V.-P. and Cashier THEO. G. K AU FM AN , Asst. Cashier Mid-Continent Banker 32 H ow to Act W h en Held Up Banker W h o Goes Through the Experience Four Tim es Gives Code of Behavior ARTICULARLY well fitted by hav ing been held up and robbed in his bank four times to give practical advice as to the best line of conduct to follow under such circumstances, Storm O. Whaley, cashier of the Bank of Sulphur Springs, Sulphur Springs, Arkansas, has drawn up a set of rules for the guidance of his fellow bankers in case of need, which are printed in the current issue of the American Bank ers Association Journal. Mr. Whaley, who his friends claim is the most heldup banker in the United States, de scribes in detail his various sessions with the bandits, all of which included P melodramatic gun flourishing and one of which resulted in murder, and then gives the following directions: “Out of these four experiences I shall give, in the form of ‘Bullet End Epi grams,’ a summary of what I have learned: “Keep cool, hold your hands high and make no motions that might be misun derstood, as the bandit is under an in tense nervous strain and might mistake the most innocent action and begin to shoot. “Talk quietly to the bandits if possi ble, as it lessens the tension. “Study their features and compare their faces with some one you know. The noting of a small mole on the cheek of one bandit made his identifica tion absolutely sure for me. “Keep your note case away from your safe or money drawer during the day. They might think it contained bonds and take it. They usually ask: ‘Where are your bonds?’ I reply: ‘I carry them with my city correspondent.’ “ Don’t, keep pistols wnere excited customers might seize them. Have them hidden where you can reach them when they leave. “ Carry heavy burglary insurance and Call on Us--| ~ ^ 0 N O T confine the use of our services to the handling of your bank account. Our Banker friends should feel free to call on us for services of every description — personal and other wise. Interstate Trust and Banking https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Company NEW ORLEANS Storm O. W haley keep the smallest possible amount of money in your safe and till. “I have been locked in my vault so much that I have to wear colored glasses when I go out in the sun, and am thinking about installing a kitchen ette in the vault to be sure of regular meals. “Don’t throw the vault door bolts so that the door cannot be locked without ruining the combination. This is dan gerous. They are in a hurry. If they find the door will not close, you leave them nothing to do but to shoot you, knock you unconscious or take you with them. “I have a phone hidden in my vault. I can tell the operator just what to do. “ The best remedy for bank robbers is the death penalty. When they receive life sentences they only smile. When there was danger of the electric chair they whine like curs. “All were young men. Don’t watch middle aged or elderly men. The young man who asks for change and looks around is spotting your help, doors and vault door. When they come keep cool, hold them high, study their faces, obey orders and remember your chance will come later.” St. Louis, April, 1927 33 BANK OF COMMERCE & TRUST CO. L O U I S I A N A B A N K E R S A S S O C I A T IO N ANNUAL C O N V E N T IO N Resources $ 2 ,5 0 0 ,0 0 0 .0 0 DE SOTO SECURITIES CO., Inc. Baton Rouge April 20-21 Resources $ 6 0 0 ,0 0 0 .0 0 Under Joint Management Sp eakers fo r the first day in clude T. R. Preston, president of the H a m ilto n National Bank, Ch attanooga; subject, “ Some Gre at Opportunities.” Second Day Dr. Geo. F. Dyer, professor of Economics, V a n d e r b ilt U n iv e r sity, “ T r u e A m e ric a nis m .” J. S. Brock, State Bank Com missioner for Louisiana, “ G re a te r S ta b ility of Institutions Under Sta te Ba nk Commissioner’s Su pervision.” S A V IN G S : C O M M E R C IA L : TRUSTS : IN V E S T M E N T S M A N S F IE L D , LO U ISIAN A The Whitney-Central Ban ks New Orleans, La. Mississippi Notes We invite correspondence regarding the far-reaching service we have to offer. A. H. Dent has been elected assistant cashier of the Rosedale National Bank, Rosedale, Miss., succeeding C. B. Black. D. L. Capital, Surplus and Profits over $ 8 , 0 0 0 , 0 0 0 . 0 0 Bingham, active vice-president and manager of the Bank of Indianola, Miss., since 1914, has been elected vicepresident of the Fidelity Bank & Trust Company, Memphis, Tenn. A fine building, now nearing comple tion, is being erected by the Bank of Pontotoc, Mississippi. ¿Jiiiimiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiitiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimii^ I Commercial National Bank [ | of Shreveport, Louisiana I | | * The Largest Bank ln Louisiana Outside o f N ew Orleans I | Capital, Surplus and Profits Over $1,588,000.00 | | Resources Over $20,000,000.00 | = | am = = Disclose N ew Trend in the M ethods o f Forgers A new trend in the methods of forg ers is indicated by a decrease in the percentage of losses due to the altera tion of checks and an increase in the percentage due to forgeries of signa tures and indorsements, according to J. Scofield Rowe, president of the Met ropolitan Casualty Insurance Company of New York. Instead of concentrating their efforts on the “raising” of checks, says Mr. Rowe, crooks in their effort to “ beat the game somehow” are now paying more attention to the imitation of genuine signatures. Although the increase in this form of forgery is not in the ratio of the decrease in check alterations, the tend ency noted by Mr. Rowe, attributed by him to the difficulties presented to suc cessful check alteration by the general use of mechanical protective devices, is shown by a recent analysis of indemni fication payments by surety companies on forgery bond losses. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ■■ | | | Unsurpassed Facilities for Handling Louisiana, Arkansas, Texas and Mississippi Collections i | AH HE | % | | | E E | O FFICERS | = E = = R. T. Moore, Chairman of Board Ben Johnson, President Val H. Murrell, Cashier S. G. Sample, Vice-President R. F. Sebastian, Asst. Cashier P. C. Willis, Vice-President A. O. Graves, Asst. Cashier M. Ricks, Asst. Vice-President J. A. Walden, Asst. Cashier Tyson Cleary, Asst. Cashier E E E E E E = E Finn...................... . J. G. O’Brien, Trust Officer E 34 Mid-Continent Banker Bank of Baton Rouge Has Remodeled Interior ished in mahogany and marble and con tains officers’ quarters at both sides of the main entrance. The vault, located at the rear of the lobby, is guarded by a circular Mosler vault door made of manganese steel and weighing approximately 40,000 pounds. There are 1,500 safe deposit boxes. The bank, which is the oldest bank in Baton Rouge, now has total deposits of more than $0,650,000, and total re sources of more than $7,675,000. Officers include: Joseph Gebelin, president; Eugene Cazedessus, King H. Knox, W. L. Ward and Samuel G. Laycock, vice-presidents; D. I. Cazedessus, vice-president and trust officer; W. T. Palfrey, cashier; and Fred S. Bowes, assistant cashier. T. J. Eddins has been elected presi dent of the Bank of Slidell, La., suc ceeding C. A. Everett. According to t h e ir March 23rd state Bank of Baton Rouge, Baton Rouge, La. The Bank of Baton Rouge, Baton Rouge, Louisiana, has completed exten- sive improvements to the interior of its banking home. The interior is now fin ment, the Bank of Commerce & Trust Company, Mansfield, La., has total re sources of $2,508,068.69, with deposits of $2,124,426.57. Ben Johnson is pres ident of the Bank; R. T. Moore, vicepresident; G. F. Provost, vice-president and cashier, and J. C. Coyle, Hall Pey ton and W. F. Moore, assistant cash iers. N ew Orleans XXVI T h e I n t e r n a tio n a l T r a d e E x h ib it io n T he N ew Orleans Permanent Intern ation al Trade Exhibition (above) has on display acres of local, dom estic and foreign man ufactured and natural products of every class and type. T h e Exhi bition enjoys a monthly average attendance o f 30,000 visitors from all parts o f the w orld, and the E x h ib ition Company maintains its ow n selling organization for the benefit of exhibitors. Hibernia Bank & Trust Co. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N ew Orleans, U. S. A. Install a Complete Sound W ave Burglar Alarm System in the vaults of your bank. I t W ill in c re a se con fid e n ce a n d p r e s tig e , to o . O . B. M cC L IN T O C K C O M P A N Y , M inneapolis, M in n . T h e L a r g e st a n d M o s t C o m p lete O rg a n iz a tio n o f I ts K i n d in the W o r ld St. Louis, April, 1927 35 Association President THE Hanover National Bank OF THE CITY OF NEW YORK Corner Nassau and Pine Streets E ST A B L ISH E D 1851 C a p it a l . . S u r p lu s a n d P r o fits . . $ 5 ,0 0 0 ,0 0 0 $ 2 6 ,0 0 0 ,0 0 0 W IL L IA M H A Y W A R D , P re sid e n t E. H A Y W A R D F E R R Y , V ic e -P re s id e n t H E N R Y P . T U R N B U L L , V ic e -P re s id e n t F R E D E R IC K A . T H O M A S , A ss’ t C ash ier SA M U E L W O O L V E R T O N , V ic e -P re s id e n t W A L T E R G . N E L SO N , A ss’ t C ash ier JO SE P H B Y R N E , V ic e -P re s id e n t C H A R L E S B . C A M P B E L L . A ss’ t C ash ier JOSEPH S. L O V E R IN G , V ice -P re sid e n t W IL L IA M B . S M IT H , A ss ’ t C ashier JA M E S P. G A R D N E R , V ice -P re s id e n t W IL L IA M H . A L L E N , A ss’ t C ash ier G O R D O N H . B A L C H , V ic e -P r e s id e n t W IL L IA M E. C A B L E , Jr., C ashier W IL L IA M J. L O G A N , A s s ’ t C ash ier J. N IE M A N N , A ss’ t C ashier F R A N K W O O L L E Y , A s s ’ t C ash ier G E O R G E E, L E W IS , A ss’ t C ash ier E L T O N E. O G G , T r u s t M a n a g e r F O R E IG N D E P A R T M E N T W IL L IA M H . S U Y D A M , V ic e -P r e s id e n t a n d M a n a ge r R O B E R T N E IL L E Y , A ss’ t M a n a ger F R E D E R IC A . B U C K , A ss ’ t M a n a ger W . P. Connell W . P. Connell, as president of the Louisiana Bankers Association, will preside at the annual convention of the association to be held in Baton Rouge, April 20-21. M r. Connell is president of the Louisiana National Bank and the Louisiana Trust & Savings Bank of Baton Rouge. W i l l Attend Louisiana Bankers Convention FED E R A L SU RETY COM PANY C A S U A L T Y IN S U R A N C E SURETY BONDS W . L . T A Y L O R , V ic e -P r e s i d e n t a n d G e n e r a l M a n a g e r HOME OFFICE Irving Gumbel Manager Commercial Paper Dept. Inter-State Trust & Banking New Orleans, La. C a p ita l S u r p lu s U n d iv id e d P r o fit s $3,500,000 Faithfully serving the needs of Industrial St. Louis for the past 65 years, qualifies this bank to extend its depositors experienced financial co-operation. Co. Teacher: “Johnny, I’m only punish ing you because I love you.” Johnny: “I wish I was big enough to return your love.” https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis | I | | 1 DAVENPORT, IOWA The Merchants Laclede National ßank of St. Louis Mid-Continent Banker 36 Educational Committee Has 565 Speakers rriH E third year of the educational campaign being conducted by the Missouri Bankers Association for the dissemination of banking knowledge throughout the State is meeting with greater success than ever before, ac cording to W. W. Pollock, president of the Missouri Bankers Association and head of the North Missouri Trust Com pany of Mexico, Mo. “While our campaign was successful from the very start in 1925, its influ ence and effectiveness are continuing to mount each year,” said President Pollock. “This year we are better or ganized than last season, as we now have 109 county chairmen and 565 speakers at work.” When the campaign began three years ago, Walter B'. Weisenburger, vice-president of the National Bank of Commerce in St. Louis, was appointed chairman of an educational committee —a position he continues to hold. The plan of operation called for division of the State’s 114 counties into eight dis tricts, with a chairman over each. Each group chairman then was called upon to appoint a chairman for each county in his district. The county chairman in turn selected as many speakers as he needed for his territory. While the primary purpose is to carry the banking A Specialized Service for Banks and Bankers, which is the result of more than sixty years of experience, is offered by The First National B ank of C h ica g o and the First Trust and Savings Bank and provides complete facilities for active and inactive accounts, collections, B /L ’s, investments, letters of credit and foreign exchange transactions FR A N K O. W E T M O R E C hairm an M E LVIN A. T R A Y L O R President Combined Resources Exceed $ 4 5 0 ,0 0 0 ,0 0 0 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis message before the grammar and high schools, speakers often are supplied to civic clubs, where the audiences are made up of grown persons. Chairman Weisenburger is enthusi astic over the work and believes it is laying an excellent foundation for the future citizens of Missouri. “In addi tion to the instruction received by the pupils in the schools,” said Weisen burger, “the movement results in the best general advertising in the world, and the junior officers of the banks, who compose our speakers for the most part, are brought into direct contact with the civic life of the community. “As our campaign is now conducted we begin organizing anew each fall, ob taining pledges of service from county chairmen and asking them to mail in their lists of speakers. On receipt of these lists, printed material, on which the talks are to be based, are mailed out. These talk outlines are supplied by the American Bankers Association and begin with elementary topics for the grade schools. For the high schools talks of a more technical nature are supplied. The first talks deal with what a bank is, the need of such an institu tion, how a bank is started, how it keeps money safe, how it aids one to success, and other general facts. The high schools hear addresses on wealth, how banks help business, foreign trade and the farmer, the Federal Reserve System and banking as a vocation and a profession. “ The State Superintendent of Schools, Charles A. Lee, and the school authori ties in the various districts have given us full co-operation. Letters are sent out to superintendents throughout the State, telling them that speakers are available and urging them to get in touch with the county chairmen or the speakers themselves. “The State press also has been a big help in publishing notices of the cam paign, describing meetings or giving the details of the speeches. Each speaker is furnished publicity material for his local editor.” Report cards are mailed in from time to time by the speakers, these being supplied by Chairman Weisenburger. With 565 speakers out among the State’s schools, it is easy to realize what a powerful influence is at work for dis semination of banking knowledge. If each speaker averaged four talks in a season that would be 2,260. And if the average audience consisted of twenty pupils, that would be reaching a total of 45,200 youths. It is safe to say that within another four or nve years, wnen these boys and girls become the citi zens in their communities, banking will experience a new thrill and an uplift. St. Louis, April, 1927 37 Utews§Çfwfs^ T h e B a n k in g B y C / îffo r d W o r ld ' D e Duy P u blisher De Puy Banking Publications Ed gar L. Mattson, vice-president of the Midland National Bank & Trust Company of Minneapolis, is being urged by his many friends to be a candidate for the second vice-presidency of the American Bankers’ Association conven tion in Houston, October 24-29. Mr. Mattson is ably qualified to fill the position of second vice-president of the A. B. A., which position automati cally leads to the presidency of the as sociation. He is a student of banking affairs, a successful banker, a past pres ident of the Minnesota Bankers Asso ciation, and has been active in the na tional bank division of the A. B'. A. He withdrew two years ago and his friends believe that the Houston convention would honor itself and honor him by placing him on the third round from the top of the A. B. A. ladder. of the M o r t of America, at a recent meeting, passed a resolution to refuse membership to real estate bond houses that do not place the pro ceeds of bond issues with separate trustees. The new regulation is de signed specifically to prevent confusion in the minds of investors as to the rela tive merits of various bond issues, based on buildings in the course of construction. What effect this resolution will have on real estate bond houses may only be conjectured, but it at least empha sizes that the Mortgage Bankers’ Asso ciation is giving increased considera tion to placing the proper safeguards around the issuing of real estate bonds. The legitimate real estate bond houses are now complying with every require ment, which means increased safety to them and to their plants. With the tremendous increase in the amount of bonds being sold in the United States, additional regulations will be neces sary, first, to protect the bond buyer, and second, to protect the legitimate real estate bond houses from having unscrupulous bond dealers enter the field. T he Board of Governors gage B a nk e rs ’ Association Percy J. Ebbott, vice-president of the Seaboard National Bank, New York, tells us that a prominent business man who is a customer of the Seaboard, and who has steadfastly refused to sell goods on the installment plan, is to https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis be made the subject of Bruce Barton’s next book, “ The Man Nobody Owes.” — $— Oscar Wells, past president of the A. B. A., is a candidate for member ship on the board of directors of the United States Chamber of Commerce, according to a circular sent out by the Birmingham Chamber of Commerce. Oscar Wells began his banking ca reer in Missouri. In 1905, he went to Texas as cashier of the Fort Worth National Bank. The next five years brought him rapid promotion until he became vice-president of The First Na tional Bank of Houston. In 1915, he served as governor, Federal Reserve Bank, Dallas, and as a Class A direc tor of that institution. For many years he has been active in the Birming ham Chamber of Commerce, and today serves as a director. Governor Baker of Missouri has be fore him a bill which will tighten the banking requirements of state bank and trust companies in his state. This bill is in line with what other states are doing and makes the minimum require ment of capital stock for banks $15,000 Mid-Con tine nt B anke r 38 instead of $10,000, and requires that the capital stock must be paid up in full. The previous law allowed banks to capitalize for $10,000, with only half of the capital paid up. The new bill applies only to banks in towns of 1,000 population or less. ternal Revenue Bureau, covering statis tics of income for 1924, as reported to the government for tax purposes as the basis for his estimate. Mr. Mc Coy estimates that there were between 4,000,000 and 5,000,000 subscribers to each of the Liberty Loan issues. government actu ary, has estimated the total number of holders of stocks and bonds in the United States at only 3,000,000, where as most of the leading economists have figured the number in the neighborhood of 15,000,000. Mr. McCoy uses the report of the In- —$— farm organization expert, believes that agriculture is vastly bigger than legislation, and says that before larmers can complain of the lack of legislation that they should set their own house in order. Speak ing specifically of Iowa, Mr. Holden said: “The state needs first of all bet- Joseph S. McCoy, Pe rry J. Holden, A Six Million Dollar Group of Bank Buildings — that w e h a ve erected♦ C 7 VT)HEN you approach the subject o f a new \sls building, there are many things you want to k n o w . Generally it is a matter o f deliberation long before you decide to build. Our booklet, “ Preliminary Service for Conteim plated Bank Buildings,” is valuable in bringing all necessary data before you— floor plans, interiors, exteriors, a r c h ite c tu ra l d e ta ils , furniture and fixtu res— togeth er w ith detailed estimate o f complete c o s t— a cost we are prepared to guarantee. Ma;y we send you a copy ? St . L o u i s and Ba n k Eq u ipm en t ‘B a n k s Com pany E x c lu siv e ly N I N T H A N D S I D N E Y STRE ETS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bu ild in g ST . L O U IS , M O . ter roads. Following that, the estab lishment of traveling libraries in all ru ral communities, direction of boys and girls work by civic organizations, home ownership and a study of conditions as they exist outside of the state must follow.” Mr. Holden further said: “Although Germany proved that legislation could either make or break agriculture, the fact remains that Iowans are intelli gent enough to get together, face their own problems and work out their own solution.” —$— Stu art Chase has recently compiled the holdings of the fifteen richest fam ilies in the world, and all but six of these estates are located in this coun try. The six outside this country are located in England, Japan, Bolivia and Belgium. Another interesting feature is that banking ranks first as a classification from which men have made their wealth, with three men in this classi fication; oil and real estate have come second with two men each, and the bal ance is divided equally with one in dividual representing shipping, lumber, railroads, tin, mines, inheritance and munitions. The four richest estates in the world are: Ford, $1,200,000,000‘; Rockefeller, $600,000,000; Mellon, $200,000,000; Duke of Westminster, $200,000,000. —$— F ra n k M e rrill, publicity director of the Northwestern National Bank of Minneapolis, calls our attention to the following “Modern Business Letter,” but does not state whether it produced the desired results. We assume it did. “Dear Sir: Our records reveal that you have again become delinquent in your orders to us. Your past record has been only fair. You have not been giving us 100 per cent of your business. We feel that we have been very lenient with you in this matter. Your actions indicate a disposition to impose upon our laxity. • “Unless we have an order from you on or before Easter Day we will be forced to place the matter entirely in the hands of our super-salesman, Mr. Go-Getham, who needs no introduction to you. “Hoping you will make such a dras tic step unnecessary, we remain “Very truly yours, “JONES MERCANTILE CO., “Per Johnnie Jones, Sales Mgr.” —$— Over thirty-five ers now own the thousand stockhold stock of the B'ank of Italy, which is a broader distribution of ownership than has any other bank in the United States. The bank now has St. Louis, April, 1927 1,087,000 depositors and the accounts ot these customers total $575,000,000. The bank ranks second in the United States in the amount of invested cap ital, with capital, surplus and undivided profits of $105,000,000. —$— publisher of the Coast Banker, has been mentioned as state corporation commissioner of Cali fornia. Governor Young announced that he would appoint a southern Cali fornian, and this might disqualify Mr. Edwards, who lives in Oakland and has his office in San Francisco, although he also maintains an office in Los An geles. Mr. Edwards’ long experience with the banking conditions of his state most admirably fits him for such a position. —$— Craig B. Hazlewood, vice-president of the Union Trust Company, Chicago, who believes very strongly in advertising in financial journals, sent us a clever paragraph from the menu of a leading restaurant where he frequently dines: “Day before yesterday these beautiful oysters were frolicking under the last rays of sunshine along the sandy bot toms of Delaware Bay. Cruel fate, by the hand of man, snatched them from their playground. They were inspected, shucked and shipped to us by express the same day, and here they are to ap pease that craving so long suppressed.” George P. Edwards, The A m erican 39 of the United States in investing in fraudulent promotions of one kind or another. Mr. Dewey pointed out that the Fed eral government is deeply interested in the development of legislation which will protect the investing public to the greatest degree possible against the wastage of capital, which directly re sults from these improper practices. Robert R. Updegraff, advertising ex pert of New York, believes that bank ers should be better salesmen. He says: “ Some bankers shy at the idea of salesmanship. They think it means Bank e rs ’ Association reports a 100 per cent membership in Nevada. That speaks well for the as sociation, and we trust it did not take any undue salesmanship to sell the thirty-four banks in Nevada. The national association of mutual savings banks at its annual convention in Philadelphia recently, passed a reso lution in which they said: “Insistence by the United States government on the principle of integrity and sanctity of national financial obligations, is strongly commended, as essential to the maintenance of national credit and the avoidance of future complications in international relationship.” We heartily agree with the national association and believe that when debts are made they should be paid, and there is no more reason why we should cancel European debts than there is that we should cancel our own personal obligations. —$— Charles S. Dewey, assistant secre tary of the United States treasury, at a banquet of the Associated Stock Ex change, held in St. Louis recently, brought out the fact that over $500,000,000 per year is lost by the people https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis high-pressure urging. It does not; there should be no pressure to bank selling, nor need there be. As retail ers, bankers must learn an important truth: that selling is just a form of teaching.” Strange as it may seem, there is a lot of teaching which will still have to be done if the American public is to fully understand the character of bank service and what banks have to offer them in their respective communities. —$— Col. W i l l i a m G. Edens paid a very fine tribute to Craig B. Hazlewood re cently, among other things, listing Mr. o f your customers will soon be making arrangements for their trips abroad. W hy not issue a letter o f credit in your own name and capitalize to the full the good-will and pub licity which a seasoned letter o f credit creates? ANY M We will issue our ETC Letter o f Credit in your bank’s name. The courtesies o f our foreign offices and foreign correspondent banks will then be accorded your customers. Besides being known and honored throughout the world, the ETC Letter o f Credit entitles the holder to the conveniences of the Travel Service Bureau in our Paris Office. For further particulars, write immediately. t h? E q u it a b l e TRUST C O M P A N Y OF N E W YORK 37 W A L L STREET C h ic a g o : 105 South L a Salle S treet Telephone: state 8312 D is t r ic t R e p r e s e n t a t iv e s BALT IMORE • PH I LA D E LP H I A • SAN F RA NC IS CO • A T L A N T A F H ome O f f ic e o r e ig n O f f ic e s : Lo n d o n • p a r is • Me x ic o c it y , 37 Wall Street, New York, connected b y direct private wire with Chicago office. Total resources more than $475,000,000 © E. T .C .o f N . Registered M ail Envelopes HECO ENVELOPE COMPANY C h ica g o , Illin o is r .,1927 NEED ENVELOPES? Write H E C O — C H IC A G O Mid-Continent Banker 40 Hazlewood’s activities, a few of which are as follows: “ He is a member of the Executive Council, American Bankers Associa tion, and member of the Economic Pol icy Commission, and chairman, State Legislative Committee of the A. B. A. He is also one of the pioneers of the Chicago chapter of the American In stitute of Banking, having attracted unusual interest through his ability as a speaker in inter-city debates under auspices of that organization. Mr. Hazlewood is vice-president of the Bankers Club of Chicago and president of the Association of Reserve City Bankers. He has two hobbies, viz.: his family, including Mrs. Hazlewood and three kiddies, and golf.” The F ir st National Bank of Detro it is planning to erect a garage of eight een stories. The garage will accommo date 700 cars and provide space for the use of bank customers and tenants of the bank building. Congested traffic in the business sec tion was the reason for the erection of the garage, according to the bank officials. We also suggest that they arrange for a landing station on top of the building, as this will be needed in a few years, according to Arthur Brisbane. Prof. Irv ing Fisher of Yale says that the value of the dollar is 68 pre-war cents. He also says: “The unstable dollar has picked the pockets of the bondholders for the benefit of the stock holder. When prices are rising, the stockholder wins from the bondholder and when prices are falling, the bond holder wins from the stockholder. The bondholder’s steady income is a delu sion and an error so long as we do not stabilize our dollar.” In other words, Professor Fisher does not want us to accept the dollar at its face value unless we wish to be hum bugged. There are those of us, how ever, who are glad to accept it any any basis if we can only get it. H e n r y Ford says that he is “too busy living” to make a will. Perhaps Henry can get along without a will, but for the most of us our estates will be bet ter off if we put down in writing what we would like to have done with them. Judge D avis Biggs Elected Vice-President Davis Biggs, tional Bank of was given the president at a trust officer of the Na Commerce in St. Louis, additional title of vicerecent election. Under To Have Lived Long is To Have Served W e ll Over one hundred years ago, in the days o f experiment, speculation, and uncertainty, tw o o f the outstanding banks o f the city were the Philadelphia Bank and the Bank o f Stephen Girard. W ith little banking precedent to guide them, less banking law, and no supervision whatever, only those institutions could survive the times whose management was in the hands o f direc tors and officers who needed neither law nor supervision. T od a y this, the leading bank in Philadelphia, enjoys the same careful, experienced, unbroken succession o f able managem ent as characterized the Philadelphia and Girard Banks as separate institutions. D . C. Wise N ow President o f Miners Bank, Joplin THE P H IL A D E L P H IA - G IR A R D N A T IO N A L B A N K P H IL A D E L P H IA , PA. Capital, Surplus and Profits https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Judge D avis Biggs the direction of Mr. Biggs the trust de partment of the bank, which is one of the oldest and largest organized under national banking laws, has continued to expand rapidly. . . . $28,500,000 Delmar C. Wise, a vice-president of the Miners’ Bank, Joplin, Mo., for four teen years, was elected to the presi dency of the institution at a special meeting of the board of directors at the bank March 9th. He will occupy the office held by his father, the late John F. Wise, who died February 17 following a long illness. A new position, chairman of the board of directors, was created, and Howard C. Murphy, who, with the new St. Louis, April, 192', president, served as a vice-president under the late Mr. Wise, was selected for the position. Victor L. Young and William H. Landreth were named vice-presidents, succeeding Wise and Murphy in those positions. Virgil L. Board, cashier, was elected to the directorate and was named secretary to succeed Young. He continues in his capacity as cashier, however. Board fills the vacancy on the board caused by the death of the late presi dent. Julius C. Finke and W. J. J. Leffen are the other two members of the board. Pioneer St. Louis Banker Is D ead F. A. Peterson, an assistant cashier of the National Bank of Commerce in St. Louis, died March 21 at the Mis 41 souri Baptist Sanitarium in St. Louis following an operation. Mr. Peterson, who was 71 years old, had been in the employ of the National Bank of Com merce for more than forty-three years, having joined the staff of the institu tion as a worker in the exchange de partment in November, 1883. Mr. Peterson was well known for his interest in billiards, baseball and other sports. His excellence as an amateur billiard player was attested by the fact that he held the world’s record for a high run in three-cushion billiards. He set the mark at 14 in 1903 and it has stood at that. Friends of Mr. Peterson knew him as a man of even temper. Associates at the bank say they always found him in good humor and never knew him to be angry. He was unmarried. His nearest relative, a brother, Eugene W. Peterson, resides at Toronto, Canada. Gives Talk on Unprofitable Checking A ccount Problem W. E. Devlin, vice-president of Dev lin, Merrill, Price & Bennett, Inc., Chi cago, Illinois, delivered an address on the subject of the unprofitable checking account problem before the annual meeting of the Vermilion County Bank ers Association at the Hotel Wolford, Danville, Illinois. Mr. Devlin pointed out the fact that when the low balance checking account depositors realize the value of checking account service and the value of making an adequate bal ance then the banks could make a rea sonable service charge without incur ring any ill-will. Never look for a small vision. Turn the telescope and take a peek through the little hole into a larger vision. The small opening is always the big oppor tunity !—Exchange. The above bank building and interior equipment was designed for the Thornton National Bank, Nevada, Mo. Note the effective and economical treatment of exterior, in cream glazed Terra Cotta and tapestry brick. This exterior faced in Bed ford Stone would still carry the same pleasing results. Information as to cost o f this building upon request. A rile us for consultation on your requirements. No obligation for this service. Th e J. H . W I S E CONSTRUCTION C O M P A N Y , Inc. BANK BUILDERS—DESIGNERS—ENGINEERS—CONSTRUCTORS SYNDICATE TRUST BLDG. Manufacturers of Interior Equipment S X . LOUIS, MISSOURI https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mid-Continent Banker 42 TO Q U IT OR N O T T O Q U I T . If you know you’re beaten in an un dertaking, quit that undertaking. You’re wasting time. But if you love any un dertaking in which you’re engaged, get pleasure from it and give help through it; don’t quit, for you’re probably doing exactly what you should do. If you’re not making enough money at it—com ing down to brass tacks and the phase that concerns you, and properly con cerns you, too—study yourself. Elimi nate what you don’t need—your undesir able traits or habits—and strengthen the insufficiently strong, good qualities. AVork hard for yourself. Work for your self as if you yourself were your own employe. You know what you’d ex pect from anyone you’d employ. You wouldn’t tolerate indifference, procras tination, shirking, sulking, pessimism. In fact, you are your own employe. Don’t be too easy with yourself. There may be—there are, of course—things in your life over which you can have little or no control—as with all men—but to a great extent what you can achieve in your life is absolutely within your con trol.—Mutual Life Points. An English Definition. Pedestrians in America who are reck less in crossing busy streets are known as “jay-walkers.” Those who do the same silly thing in London are more often described as “ the deceased.”— London Punch. Pain has its own noble joy, when it kindles a strong consciousness of life, before stagnant and torpid.—Sterling. R oyal Union Will D evelop Arkansas Agency Force A. C. Tucker, president of the Royal Union Life Insurance Company of Des Moines, states that his company has un der way extensive plans for extending their agency forces in Arkansas and materially increasing their volume of Arkansas business. The Royal Union came into existence in August, 1886. In February, 1924, this company was merged with the State Life Insurance Company of which Mr. Tucker was president, and the Royal Union has been under his direc tion since that time, and has been mak ing splendid progress. During 1926 the company gained al- Nothing is more unjust or capricious than public opinion.—Hazlitt. Guaranty Trust Company of New York 140 Broadway LONDON PAR IS BRUSSELS LIVERPO OL H AVRE AN TW E R P Condensed Statement, March 23, 1927 RESOURCES Cash on Hand, in Federal R eserve Bank and Due from Banks and Bankers........................... $134,276,081.48 U. S. Governm ent B onds and Certificates.......... 29,026,045.33 A. C . Tucker P u blic Securities ......................................................... 42,647,156.04 most $2,000,000 of admitted assets. To O ther Securities ........................................................... 20,961,116.00 tal admitted assets as of December 31, Loans and Bills Purchased...................................... 383,623,158.79 1926, was $23,291,765. The Royal Union R eal Estate B onds and M ortga ges....................... 1,512,500.00 has insurance in force of over $142,000,Item s in Transit with Foreign B ranches............ 6,643,485.08 000 and has paid to policy holders more Credits Granted on A cceptances........................... 51,083,894.89 than $22,000,000. R eal Estate .................................................................... 7,981,150.16 The company’s board of directors is A ccru ed Interest and A ccou n ts R eceivable.................................... 8,553,785.56 composed of the company’s officials—a number of Iowa’s prominent business $686,308,373.33 men and bankers and also includes Mr. Atlee Pomerene, former United States L IA B IL IT IE S senator from Ohio, and Charles S. Capital .................................................. .........................$ 25,000,000.00 Alves, prominent Kansas City banker. Surplus Fund ............................................................... 25,000,000.00 Undivided Profits .................................-.................... 1,854,667.67 L. T . Claiborne Elected Cashier. $ 51,854,667.67 The Bank of Holly Grove, Ark., has A ccru ed D ividend ....................................................... 914,000.00 elected L. T. Claiborne of Marion, Ark., A ccru ed Interest, Reserve for Taxes, etc........................................ 5,436,060.63 cashier to succeed the late J. I. Mat A cceptances ................................................................. 51,083,894.89 thews. Mr. Claiborne has been con Outstanding Treasurer’s C hecks............................. 22,478,863.80 nected with the Bank of Marion for D eposits .......................................................................... 554,540,886.34 several years. Mr. Matthews, who died last Janu $686,308,373.33 ary, was one of the organizers of the Bank of Holly Grove, twenty-seven years ago. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 43 St. Louis, April, 1927 Am erican National Elects W etterau Vice-President The American National Bank of Nashville has announced the promo tion of three officers. Charles H. Wet terau, former assistant vice-president, has been elected vice-president; Morris E. Barr, former assistant vice-president, has been elected cashier; and P. D. Castleman, former manager of the col lection department, has been elected assistant cashier. Mr. Wetterau, new vice-president, is well known in Nashville state and na tional banking circles, and has served the American National Bank for 26 years. Mr. Wetterau was born at Hickman, Ky., and in 1899 he came to the Amer- C. individual bookkeeper and in the col lections department he was appointed manager of the collection department in 1918. New Advertising M anager for Taylor, Ewart & Co. Taylor, Ewart & Co., Inc., investment bankers, have announced the appoint ment of Charles J. Eastman as adver tising manager. Mr. Eastman has been engaged in advertising agency work for the past twelve years, being with Williams & Cunningham, Chicago, until 1923, and since then an officer of the BrennanPhelps Company of the same city. He will be located at the Chicago office of Taylor, Ewart & Co., Inc., but will be in charge of advertising and publicity for their entire organization. H . W etterau ican National Bank as runner and stenographer and since that time has steadily advanced through all depart ments of the institution. He was appointed assistant cashier in 1910, and upon the consolidation of the American National Bank and the Cumberland Valley National Bank in 1921 he was elected assistant vice-presi dent, a position which he has held until his promotion. In addition to his services in the American National Bank, Mr. Wetterau has been prominent in Nashville busi ness circles. He served as president of the Nashville Clearing House asso ciation in 1925 and 1926, and is treas urer of the Nashville Booster Club and the Nashville Ad Club. He is treas urer of the Vine Street Christian Church and is a member of the Rich land Golf Club. In the national field Mr. Wetterau in recent years has won an enviable reputation as an authority on adver tising and business development. He https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis has been a leader in the expansion of the Financial Advertisers Association and was elected third vice-president of that organization last September, at which time he also won first prize in the association’s national advertising contest. Mr. Barr also came to the bank as a runner, first becoming associated with the institution in 1907. He soon was promoted to assistant teller and then served in the bookkeeping department. After serving as a teller he was ap pointed assistant cashier in 1919 and was elected assistant vice-president in 1925. Mr. Castleman entered the employ of the American National Bank as a bookkeeper in the transit department. He was transferred to the country books department and then to the in formation window. After service as an Built for a Long Future 'T 'l I E files o f W esslin g ' Services c o n t a i n a priceless mine o f infor m ation about every Stale in the U n ion . M r . D . R . W esslin g and his co workers are constantly . ncreasing their store o f fa cts by p erson al inter views with thousands o f bankers and laymen in every part o f the country. PLANNERS The W esslin g program o f original publicity stands upon the solid rock foundation o f actual banking expe rience. T h e simple, unique W esslin g way to the patron’s heart brings m eas urable returns which are both prom pt and lasting. “ It is the best service for a bank, re gardless of price,” one banker w rote re cently. “ W e have renewed our con tract solely on the results o f the serv ice.” This is the verdict o f hundreds of bankers, in small tow n s and large cities. AND CREATORS OF O RI GIN AL WESSLING SERVICES L Y T T O N . IO W A 44 Mid-Continent Banker D esobry N ow President o f Broadw ay Trust Com pany AdditionalProfit for Your Bank T o tell a banker w ho has had little experience with the security market that there is a source of sure p ro fit to him in his secondary reserve ac count is often to arouse a feeling of skepticism. H aving been “ sold” bonds that declined in value or that were marketable only at a loss, the experienced banker is a bit suspicious of all investment securities. Leo G. Desobry, vice-president of the Broadway Trust Company of St. Louis, has been elected president of that in stitution succeeding E. C. Adams. Mr. Adams remains on the board of di rectors. H. F. Hoener, former secretary and treasurer, becomes vice-president and secretary; F. A. Hoffman, formerly as sistant secretary, becomes treasurer, and J. Irvin Obst becomes assistant secretary. Other officers include H. L. Rogers, vice-president, and Leopold Grossberg, vice-president. Mr. Desobry has been with the bank Y et hundreds of banks in Missouri and Illinois show an extra profit of one or two per cent a year, simply be cause their secondary reserve account is handled with care and intelligence. These banks with the advice of their investment banker, make their bond account pay dividends. Proper investment of a bank’s sec ondary reserve account is a matter of careful study and continual con tact with the market through a re liable and experienced investment banker. M any banks feel that our fifty-one years of experience merits their confidence; this experience is available for your bank. l Tx i o x Tui o f W R IT E https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FOR OUR E ts a s t LIST t S OF t .L C o o f is m C U R R E N T p a Leo G . Desobry n OFFERINGS y and its predecessor, the Broadway Sav ings Trust Company, for about four years; prior to that he was with the National Stock Yards National Bank, National Stock Yards, Illinois. He has been in the banking business for more than twenty years and has a host of banker friends throughout the Mid-Con tinent territory. The Broadway Trust Company which is now two years old has assets of about $2,000,000. Directors of the bank in clude Leo G. Desobry, E. C. Adams, H. F. Hoener, F. A. Hoffman, J. Irvin Obst, Leopold Grossberg, Joseph A. Hafner, H. L. Rogers, W. R. Rogers, George E. Raithel and Frank B. Young. THE P R IN C E . The Prince of Wales does not ride a sword much better than a horse. He tripped over his when encumbered by a long red robe at the opening of parlia ment by King George. The lords and ladies gasped at the mishap, the news says, but the prince grinned. 45 St. Louis, April, 1927 i Bond and Investment Section A P A R T I A L L I S T OF C U R R E N T O F F E R I N G S Offering- $30,000,000 C hicago, B u rlin g ton & Q u in cy R ailroad C om p an y F irst and R e fu n d in g M o rtg a g e 4 % % G old B onds, S eries B. D ated F e b ru a ry 1, 1927. D u e F e b ru a ry 1, 1977. P r ic e 97% and a ccru e d interest, to yield 4.65% to m atu rity. S traus B ro th e rs Com pany. O fferin g $350,000 “ T he M issouri H o te l” , Jefferson City, M issouri. F irst M o rtg a g e 6% % Serial G old B ond s. P rice d to yield 6% to 6V2%. Lorenzo E. A n d e r s o n & 1952. P r ic e 91% an d a ccru ed interest, to yield ov er 7.25% to m atu rity. J. R. E d w a r d s & Co. K n i g h t . D y s a r t & G a m b le . J. P, M o r g a n & Co. F ir s t N a tio n a l B a n k, N e w Y o rk . N a tio n a l C it y C om p a n y. Co. O fferin g $50,000 F lo re n ce C ounty, South Carolina, H igh H ill D rain a g e D istrict Serial 6% B onds. D ated F e b ru a ry 1, 1927. D u e serially F e b ru a ry 1, 1930-47. P ric e d to yield 5.40% to 5.59%. O fferin g $386,200, T h e V u lca n L a s t C om p a n y 7% C um ulative P referred S tock. Closed Issue. P a r v alu e $100 p er share. P rice 100 and a ccru ed dividend. D illo n , Read & C o . H e m p h i l l , N o y e s & Co. O fferin g $11,000,000 Americlan C hain C om pany, Inc. 7% C um ulative P referred S to ck (w ith com m on s to ck p u rch ase w a r r a n ts). P rice $100 p er sh are an d a ccru ed dividend. J. P. M o r g a n & Co. K u h n , L o e b & Co. N a tio n a l C ity C om pany. F ir s t N a tio n a l B a n k, N ew Y o rk . Y o k o h a m a S p e c ie B a n k , L t d . O fferin g $1,300,000 P en n sy lv a n ia S ta te W a te r C orporation F irst L ien 5.50% G old B ends, S eries “ A ” . D ated M arch 1, 1927. D u e M arch 1, 1952. P rice 98 a n d interest, to yield ab ou t 5.65%. J o h n N i c k e r s o n & Co. C. D. P a r k e r & Co. G oldm an, Shearson, Chapman & Co. , In c . O fferin g $1,000,000 Indian a Ice & Fuel C om pan y F irst M o rtg a g e G old B onds, 6% % S eries “ A ” . D ated M arch 1, 1927. D u e M arch 1, 1947. P rice 100 a n d a ccru e d in terest to yield 6.50%. Lehm an B rothers. L a w re n c e S tern and C om pany. A m e s , E m e r i c h & Co. O fferin g 75,000 sh ares M andel B roth ers, Inc., Capital S to ck (n o p a r v a lu e ). Pricel $48.50 p er share. M c C lu n n e y & Co. O fferin g $1,500,000 O'hmer F a re R e g iste r C om p an y T h r e e -Y e a r 5% Gold N otes. T o be dated A p ril 1, 1927. P rice 99% an d a c cru ed interest, to yield ab ou t 5.10%. M i s s !s s i p p i V a l l e y T r u s t S a c h s & Co. H a m m i l l & Co. O fferin g 80,000 sh ares th e C onde N ast P u blication s, Inc., C om m on stock . P rice $28.50 per share. A . C. A l l y n & Co. W . C. L a n g l e y & C o . In c . Love, Van R ip e r & B ryan. O fferin g $300,000 A tla n ta P a rcel P ost Office F irst M ortg a g e 5% % S inkin g F un d G old B onds. D ated M arch 1, 1927. D u e M arch 1, 1937. Bond Company. O fferin g $170,000 M ississippi C ounty, M issouri, L ev ee D istrict N o. 3 Serial 5% B onds. D ated F e b ru a ry 1, 1927. D u e seri ally, F eb ru a ry 1, 1929-47. Fe d e ra l C o m m e rc e T r u s t C o m p a n y . O fferin g $600,000 C entury E le ctric C om pany, St. L ouis, M o., F irst M ortg a g e and S ecured 5 % % Gold B onds. D ated M arch 1, 1927. D ue serially, M arch 1, 1930-33. P rice to yield 5% to 5 % % a c c o rd in g to m aturity. H ow e , S n o w & B ertles. M a r k C. S t e i n b e r g & Co. R. E. W i l s e y & Co. O fferin g 100,000 shares N ation al P u blic S erv ice C orporation C lass “ A ” C om m on Stock. Love, V a n R ip e r & B ry a n . O fferin g $1,750,000 W a sh in g to n Gas an d E le ctric C om pan y F irst M ortg a g e G old B on d s 5V2% S in k in g F und, Series o f 1947. D ated F eb ru a ry 1, 1927- P rice 98 an d in te re st to yield o v e r 5.65%. O fferin g $350,000 N orfolk P a rcel P ost Office F irst M ortg ag e 6% S inking F und S old B onds. D ated M arch 1, 1927. Due M arch 1, 1935. P rice 100 and interest, to yield 6% T a y l o r E w a r t & Co., In c . P. W . C h a p m a n & Co. , Inc . C ald w e ll & C om pany. D r e x e l & Co. B o n b rig h t & C om pany. H a r r is T r u s t & S a v in g s O fferin g $2,500,000 H ou ston G u lf G as C om p an y T w o -Y e a r 6% S ecu red Gold N otes. D ated A p ril 1, 1927. P r ic e 99 and interest to yield a b ou t 6.50%. Company. O fferin g $225,000 M cC u lloch O ffice B u ild ing, O km ulgee, O klahom a, F irst R eal E s ta te M ortgage, 5 % % G old N otes. D ated Ju ly 1, 1926. D ue serially, J u ly 1, 1927-36. P rice d to yield 4(4% , a c c o rd in g to m a tu r ity. Co. C o ., O fferin g $3,000,000 M ortg a g e B an k o f C olom bia, T w e n ty Y e a r 7% S inkin g EMnd Gold B o n d s o f 1927. D ated F eb ru a ry 1, 1927. P ric e 97% and accru ed in terest to y ield o v e r 7.23%w B u rk h o ld e r O fferin g $20,640,000 C ity o f T ok io E x tern al L oa n o f 1927 S in kin g F u n d 5% % Gold B onds, u n con d ition a lly gu a ra n teed b y th e Im perial Ja p a n ese G ov ern m en t a s to p rin cipal, in terest an d sin king fu n d b y en d orsem en t on each bond. D ated A p ril I, 1927. D ue O ctob er 1, 1961. P r ic e 89% % and a ccru e d interest, to< y ield about 6.25% to m atu rity. P. W . A m es, E m e ric h & B a k e r, K e llo g g & J. P. M o r g a n & C o . N a tio n a l C ity C om pany. F ir s t N a tio n a l B ank, N e w Y o rk . Bank. O fferin g $45,000,000 G eorgia P o w e r C om p an y F irst and R efu n d in g M ortg ag e G old B onds 5% Series, d ue 1967. D ated M arch 1, 1927. P ric e 97 an d in terest to yield ab ou t 5.18%. H alsey, S tu a r t & Co. A n g lo Lon d o n P a ris C om p a n y. O fferin g $30,000,000 C ity o f R om e E x te r nal L oan o f 1927 S inkin g F un d 6% % G old B onds. D ated A p ril 1, 1927. D u e A p ril 1, O fferin g $10,000,000 H ea rst M agazin es 6% Serial Gold D eben tu res o f 1927. D ue $1,000,000 an nu ally each M arch 1, 1929 to •A P A R T IA L LIST OF C U R R E N T O FFER IN G S W H IC H W E R E C O M M E N D FOR IN V E S T M E N T MISSOURI PACIFIC RAILROAD COMPANY.................. ....... First and Refunding Mortgage Series “F” 5s ASSOCIATED GAS AND ELECTRIC COMPANY............. ....... Convertible Gold Debenture 5MiS. NORTH SHORE COKE AND CHEMICAL COMPANY. . . ....... First Mortgage Sinking Fund Series “A” 6s. WARNER-QUINLAN COMPANY....................................... ....... Fifteen-Year Convertible Debenture 6s. DUE 1977 PRICE $100.00 YIELD 5.00% 1977 95.75 5.75% 1947 100.00 6.00% 1942 99.00 6.10% F u ll descriptive circulars o f these issues will be sent on request P o t t e r , K a u f f m a n & Co, in c o r p o r a t e d 511 Locust Street https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Saint Louis “ GArfield 7460 Bonds selected with the advice of a reliable investment banker are essential to the strength and stability of any bank 46 Mid-Continent Banker 19S8, inclusive. P rice d to yield 6.27%, according- to m atu rity. 6% to H a l s e y , S t u a r t & Co. I l l i n o i s M e r c h a n t s T r u s t Co. H a r r is T r u s t & S a vin g s B a n k. C o n t i n e n t a l & C o m m e r c i a l Co. F ir s t T r u s t & S a v in g s B a n k. F irs t N a tio n a l C om pany. M ississip pi V a lle y T r u s t C om p a n y . G. H . W a l k e r & Co. O fferin g $1,000,000 T rin ity P ortlan d C e m ent C om p an y F irst M ortg a g e C ollateral T ru st T h r e e -Y e a r 5% % Gold N otes. D ated J a n u a ry 3, 1927. P rice 100 and interest, to yield 5% % . O fferin g $15,000,000 C om m onw ealth E d i son C om pan y F irst M ortg a g e C ollateral 4%’% Gold B onds, Series D. D ue Ju ly 1, 1957. P rice 96 and interest, yield in g 4.75%. T a y l o r , E w a r t & Co., S m i t h , M o o r e & Co. In c . O fferin g $1,800,000 C arth ag e M arble C o r poration , F irst M o rtg a g e 6 % % S inkin g F hnd Gold B onds, Series ‘A ” . D ated M arch 1, 1927. D u e M arch 1, 1942. P ric e 100 and interest, to yield 6.50%. B la ir & St. Louis to Entertain “ Springtonic” Bankers Co. O fferin g $7,000,000 Julius K a y s e r & Co. T w e n ty -Y e a r C on vertib le 5 % % S inking F und Gold D eben tu res. D ated M arch 1, 1927. P rice 96% and in terest, to yield ab ou t 5.80%. St. Louis bankers will be hosts to members of the executive committee of the American Bankers association, and other bankers from Chicago and the mid-west, en route to the “ Springtonic” meeting at Hot Springs, May 2-5. The bankers will arrive in St. Louis L O R E N Z O E. A N D E R S O N & C O , Investm ent Securities M E M B E R S N E W Y O R K STOCK E X C H A N G E NEW YO RK COTTON EXCH AN G E N E W YO R K CURB ASSOCIATION C H IC A G O B O A R D ST. S T O C K https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis L O U IS OF on the Wabash “ Springtonic Special” from Chicago, at 9:30 a. m., Saturday, April 30. The special will stop in For est Park at Union and Lindell boule vards, and the bankers will be divided into two groups—one consisting of golfers to be rushed to Bellerive Coun try Club, while the other group will make an automobile tour of the city and county ending up at the Bellerive club for lunch. Baseball between the Cardinals and the Cincinnati Reds will be the attrac tion of the afternoon (for those who can leave the links). The bankers will leave on a Missouri Pacific special at 6 o’clock, dinner to be served on the train after departure. The train is due in Hot Springs before breakfast the next morning. Edward Buder of the Mercantile Trust, is chairman of the entertainment committee, acting for the St. Louis Clearinghouse Association and the Bankers Club of St. Louis. Others on the committee are W. J. Bramman, Merchants-Laclede National Bank; M. E. Holderness, First National Bank; M. R. Sturtevant, Liberty Central Trust Co.; L. C. Bryan, Boatmen’s National Bank; A. O. Wilson, State National Bank; Hord Hardin, Mississippi Valley Trust; E. J. Mudd, National Bank of Commerce. Life, to be worthy of a rational being, must be always in progression; we must always purpose to do more or bet ter than in time past.—Johnson. N ew St. Louis M anager for Camp, Thorne & Co., Inc. T R A D E E X C H A N G E 7 11 ST. C H A R L E S ST. ST. L O L I S A. H . Goette A . H. (Gus) G o e tte , fo r m e r ly w ith W eil, M cK e y & C o ., is n o w a ssocia ted w ith C a m p , T h o r n e & C o ., I n c ., as re sid e n t m a n a g e r o f th e ir S t. L ou is o ffices, lo ca te d in th e R ailw a y E xch an ge B ld g . St. Louis, April, 1927 47 A lo n g L a Salle Street = By Wm. H. Maas — M a r tin G ra e ttin ge r of the Illinois Bankers Association has announced the 1927 Group meeting dates for next month, the first sessions starting at Barry on May G and ending at Casey, while the second swing will start at Dixon on May 23. Many of the wellliked old timers on the special again this year will include such familiar faces as Bill Gates, A1 Foreman, Charley Burns, Johnny Grier, et al. Chicago will also send a delegation to attend the Indiana group meetings, which start at Indianapolis on May 23. Four juic y wild turke y s w ere bagged by Hiram H. Maynard of Dawes-Maynard & Company, last month on his an nual mid-winter hunting expedition near Biloxi. The shooting, to be exact, took place on the famous game pre serves owned by Frank W. Boyken of Mobile. E v e rett L. H a rris has joined the ex ecutive staff of Lackner-Butz & Co., as vice-president and director of sales. He was with the Federal Reserve Bank of Chicago, bank relations department, for eight years. For the past year he has been affiliated with Lee-Higginson & Co. T his w riter has always part of the month of March at French Lick Springs. T h e problem of w h a t to do w ith the vast accumulation of records, many of which may not be called for once in a decade, if ever, is to be solved by the Chicago Trust Company by means of a $40,000 fireproof building, now being erected on the near west side. H a rp e r (P at) L. Shillin gla w , Bayard, age in finance The fact that the League of Nations is doing much to promote co-operation between Euro pean countries along commercial lines is signifi cant to the investor, and particularly to the buyer of foreign bonds. Europe’s rehabilitation means greater security of principal, and assures continued service of the loans already in investors’ hands. Con structive developments now taking place on a large scale are creating further demands for American capital, as is also the revival of trade on a pre-war basis. In other words, foreign bonds are becoming a better investment every day. W e solicit your orders or inquiries with regard to any type of foreign investment vice-president secretary, Carman, Snider & Company, bond house, spent https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis changing had a high of Forgan-Gray & Co., receives almost as much wholesome publicity as VicePresident Dawes. Aside from selling bonds, he is constantly engaged in some charity drive or American Legion ac tivity. Recently the Cook County Legionnaires presented him with a handsome watch. He has already made his reservation for the Legion trip abroad in September. George of Shelbyville, T his BAKER, KELLOGG & CO.,Inc. A SPECIALIZED SERVICE IN FOREIGN SECURITIES FOR BANKS AND DEALERS h lond X 8 RK i daily brings to attention new and varied maneuvering of both sexes in the old desire to make money and make it fast. Now comes before us news of two young and comely maidens, bank clerks of modest weekly wage in a large na tional bank in a Middle Western city, who have been “doing very well” in the E U R O P E Is “ C om in g B a c k ” regard for the judgment of Ben Ed wards, president of the National City Bank of St. Louis. He is not only a good banker, but knows how to sur round himself with able lieutenants. His assistant, for instance, Edward B. Clark, has been affiliated with the bank ing profession of Illinois for forty years. He can enter and leave the front door of practically every bank from Chicago to Cairo. Ed. has been spending a good part of his time in Chicago and Cook County, where his friends are always glad to see him. David K elly 111., who has been selling bonds to Illi nois and Indiana banks for the past eight years, first with the Central Trust of Illinois and more recently as a junior partner in the firm of Dawes-Maynard & Co., has recently resigned to study in foreign universities. With his charm ing wife, Pat will pursue his hobby of archaeology and anthropology at the American Institute of Pre-Historic Re search, with headquarters in Paris, and later will travel to numerous parts of the Old World. The many friends of this young couple will wish them well in their novel undertaking of study and adventure. W est Monroe Street Chicago TELEPHONE RANDOLPH 0 4 .5 bu enos I ir e s Mid-Continent Banker 48 stock market. One of these girls made a profit of $1,700.00 last week, which is probably more than her fifty-two weeks salary. $ 3 5 0 , 0 0 0 FIRST MORTGAGE &h% BONDS Secured by “ THE MISSOURI HOTEL” JEFFERSON CITY, MO. This issue is secured by laud and building, under construction, valued at $630,000. H orwath & H orwath, leading hotel accountants, after a thorough investigation, estimate annual net incom e at $60,120— more than tw o and a half times the greatest annual interest charge. F or years Jefferson City has needed this m odern hotel to accom m odate the numerous visitors who come to the State Capital. The M ayor, Governor, leading citizens and corporations recognize that this hotel w ill sup ply a long felt need. They are w hole-heartedly behind this undertaking and have subscribed fo r securities ranking ju n ior to these First M ortgage Bonds. These bonds bear the personal guarantee of James J. O ’Brien, w ell-know n St. Louis lawyer and business man. Denominations, $1,000, $500 and $100. Ma turities, 1929 to 1937. Prices to net 6 % to according to maturity. T his w r i t e r is glad to join w ith hun dreds of banker friends throughout the state in showering words of congratula tion on Martin A. Graettinger, who this month is celebrating his tenth anni versary as secretary of the Illinois Bankers Association. The past decade under his able management has wrought many changes and improve ments in the interest of Illinois bankers and today the association stands as a model and pattern for other similar bodies throughout the country. Coolidge Invited to Spend His Vacation in Ozarks Send for Special Bank Offering TH E STRAUS BROTHERS COMPANY Planters Building, St. Louis, M o. Telephone: MAin 2868 Collateral Trustee Shares of the NEW ENGLAND INVESTMENT TRUST, Inc. (Federal National Bank of Boston— Trustee) are offered b y investment bankers in 43 cities throughout the United States and Canada Secured b y listed stocks of 80 leading American corporations D ividends in 1926 over 8 % on the present selling price Write fo r Circular M B N E W E N G L A N D IN V ESTM EN T T R U S T , Inc. 85 D E V O N S H I R E S T R E E T , B O S T O N N ew Y ork https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W i t h the annihilation of distance and conquering of space, Chicago bond men visiting in London now transact little matters of business through four thou sand miles of air via the telephone. One of the most recent to employ this modern method is Lawrence Stern, president of Lawrence Stern & Com pany, Chicago, now visiting in Europe, who chatted with his La Salle street associates over long-distance a few days ago. Springfield Grover C. James, president of the Ozark Playgrounds Association, Joplin, Mo., on March 9th extended an invi tation to President Coolidge to spend all or part of his contemplated summer vacation in the Ozarks. The invitation was sent by telegram and followed an announcement of the President that he expected to spend his vacation in the West, but is desirous of remaining closer to the national capital than the west coast. James, besides extolling the vacation advantages of the Ozarks, explained to the chief executive in his message that to spend the summer there would afford him “a close contact with and insight into the heart of America,” and that “ample facilities for all your pur poses are at your command.” The following reply was received from the President, through Mr. Everett Sanders, his secretary: “The President wishes me to extend his thanks to the Ozark Playgrounds Association for its cordial invitation to visit that country during his summer vacation. He has heard of its beauties and hopes some time to know them in timately. Whether he may have that pleasure this summer cannot be told at this time. His vacation plans will not be determined for some time yet.” St. Louis, April, 1927 49 Diversification and Liquidity B y the J. S. Bache Com pany NE of the most encouraging de velopments in the United States at this time is the trend toward investment in securities on the part of industrial workers. This manifests it self mainly in their acquisition, on the installment plan, of stock in the com panies in which they find employment. The aggregate amount thus acquired runs up into hundreds of thousands of shares and is increasing constantly. These stocks which the worker huys he naturally knows a great deal about, and also there is generally attached to them a bonus feature which gives him greater benefit than the general public receives from purchase of the same stocks. When it comes to general-public buy ing, the attention is more often turned toward bonds. The war undoubtedly educated a vast number of people into what was before a mystery to them— namely, the advantage of buying good bonds—and this came about through the strenuous Liberty Bond sales. What is stated in this article is not new, but it is intended to be a restate ment of facts well known in quarters where the subject has received atten tion. Money is like electricity, or any other power, and should be made to work. Like other power, it is easy to dissipate it uselessly or to have the fuse burn out or to get an explosion. Therefore, the first consideration in buying bonds should be safety of principal, which is vastly more important than size of in come. O Sm it h Diversification. mortgages, second mortgages and re funding mortgages or debentures. A debenture bond of a high-class company may be superior to a first-mortgage bond of some concern not doing a profitable business and hampered with insufficient assets. Another recommendation is that the investment should be diversified (that is, scattered over widely different in dustries). Whether or not it was Andrew Car negie who was first to warn against putting all the eggs in one basket, it is a good thing to have bond holdings in different classes of business, so that if the tide turns against one kind, the others will keep on pulling and one’s entire capital and interest will not be impaired. This is a good rule for banks, as well as individuals. A general division of bonds into classes would be about as follows: United States government bonds. State and municipal issues. Railroad bonds. Public utility bonds. Industrial bonds. Real estate bonds. Foreign government bonds. Of course, United States Government bonds are the prime investments of the world at present, as far as safety is con cerned. From one point of view, they are just about as good as gold. State and municipal bonds are graded in desirability through the effects of geographical location, population, wealth per capita, and natural and In dustrial resources of the community making the issue. Railroad, public utility and industrial bonds must be judged by the security back of them and the rate of earnings of the issuing company. There are first You cannot safely say to an inquirer, “Buy a railroad bond,” and expect him to go straight. Each issue must be sep arately judged and appraised, and the general credit and history of the issuing company must be considered. Real estate bonds and loans must especially receive consideration as to the local situation, and this requires intimate acquaintance with the real es tate conditions in any given locality. Foreign government securities are not a mortgage of the issuing country, but only a moral obligation to pay back the money borrowed with interest; therefore, the general credit and past record of the borrowing country must be considered as well as the natural resources, size of issue, diversification of industries, and wealth per capita in that country. The date when a bond falls due is an important matter to the investor. A bank especially should have the larger portion of its money invested in securi ties placed in those which mature in the near future; that is, what is known as short-time paper. This is advisable because short-time bonds do not fluctu ate in price as much as long-term secur ities, and it is much easier to realize upon them at a stable price. , M & C o. oore Ev e ry Issue Different. For many years we have been successfully serving banks and institutions in: Building up liquid secondary sound bonds. reserves, consisting of Maintenance of bond accounts at the peak of efficiency. The partners will be pleased to give the benefit of their long experience in this field to your investment problems. J. Herndon Smith Chas. W. M oore 5 0 9 Olive Street https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W m . H. Burg W. C. Morehead St. Louis, Mo. Mid-Continent Banker 50 If long-term investments are bought, the time of maturity should be diversi fied. It is inadvisable to have a major part of one’s capital coming due in the same period of time, as this necessi tates all the money being invested again at once, and this might be at a time, when money being very easy, the price of bonds would be corresponding ly high. Bonds also should be purchased with the idea of having coupons mature in various months, so that the income will be spread over the year and not all paid in at one time. Certain classes of funds, under the laws of various states, have to be in vested in what are termed “ legal secur ities.” These state laws naturally dif fer as to what constitutes legal securi ty. The laws of the states of New York, Massachusetts and Connecticut are the most rigid and are generally considered the most acceptable. Under these laws executors and trustees are empowered to invest trust funds in se curities which can be depended upon to be almost invariably absolutely safe and gilt-edged. It is wise, therefore, for people who desire the utmost safety and have no means of investigating the standing of different bonds, to guide themselves by selecting bonds which are authorized Conservative Securities $ 7 ,5 0 0 ,0 0 0 F e d e r a l U tilitie s , Inc. First Lien Collateral Trust Gold Bonds 5 U % Series o f 19 2 7 D ue M arch 1 , 19 5 7 Property Appraised at $ 1 4 ,000 ,0 0 0 These bonds will constitute, in the opinion of counsel, a first lien on the constituent properties. subject only to $1,712,000 of underlying bonds. Earnings Gross . . . . . . Operating Expenses including Maintenance and Local Taxes Net Earnings . . . . Total Annual Interest Requirements . . . . $2,833,863.37 1,704,440.54 1,129,422.83 498,120.00 Price $94.75 to yield about 5% % Concessions to Banks. BARTLETT & GORDON IN C O R P O R A T E D First National Bank Building CHICAGO First Wisconsin National Bank Building MILWAUKEE .. i 1=1---- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ~ ' .... - ■ ~ under the laws of the states mentioned. Liquidity. Another point of much importance in bond investment is the liquidity of the securities; that is, whether or not they possess the quality of being immediate ly converted into cash in case the in vestor wishes to realize promptly on all or a part of his investments. Emer gencies of this kind often arise, so that it is wise for the investor to keep a larger part of his capital in what are termed “liquid securities.” Liquidity is dependent upon various factors. Securities listed on a reputa ble stock exchange are those generally most liable to find a ready market. The advantage here also is that current quo tations can be watched; any violent fluctuation in price might indicate something unfavorable to the prosperi ty or soundness of the company issu ing the bond. The size of an issue of the amount of bonds already outstanding might make some difference—even quite a differ ence—in the marketability or liquidity of the bonds. Where the issue is large, with more people interested in it, the price would not be liable to be as great as if it were a smaller issue, with fewer people in the market or interested in it. If a concern is nationally known, it is generally better to invest in its bonds than in a local property, although the local business may be sound, because generally the local security would have a limited market. There are many other points of in terest in considering bond investments, but in addition to safety of principal (of course, rate of yield has to be con sidered), the two features which have been discussing—namely, Diversifica tion and Liquidity—are, we think, next in importance to safety. One thing the investor, whether bank or individual, must not forget; namely, that very few investments can be al lowed to remain unwatched. Situations affecting nearly all investments are con stantly changing and the security owner must keep himself informed re garding them. This is more important in stocks than in bonds, but even as to the latter it is well to get good information on the securities owned, once or twice a year, from reliable sources. Bankers and other investors may be considering whether this is a good time to buy bonds. On this subject, a recent issue of the Bache Review says: “ There is no reason why the best se curities should not be bought at this time for the long carry. * * * The business prospect, while it may include some minor recessions, is, on the whole, good enough to create confidence ISt. Louis, April, 1927 in buying such securities and holding them. “This applies, of course, to bonds as well as good stocks. The ease in money conditions, with little prospect for any change except for even larger supply, encourages belief in bonds at present prices, when, as is the case, the outlook is for lower and lower yields as the years go by and as the long trend of interest rates continues downward.’ Present D a y M ethods (Continued from page 15) or no at the right time. It requires a lot of tact and discretion at times to keep from offending people who seek to cash checks without observing the usual rules and regulations. “The number of schemes that are worked out by shrewd individuals to defraud a bank is astounding. When a fellow thinks he has about learned all the tricks that man could invent, up bobs a new one. In my work, I have always been on the alert to detect for geries and counterfeits. A teller in time comes to be more or less of an expert on handwriting and learns to quickly suspect a signature that does not look just right. “ I recall one case of attempted for gery at the National Bank of Com merce in St. Louis, in which the culprit was caught red-handed and sent to prison for twelve years. This man had forged all the necessary papers using the name of one of our customers and had written a letter from New Orleans, notifying us he would call on a certain date for $9,000. Our cashier brought the letter and credentials to a teller who at once detected something sus picious about the signature and sent a query back to New Orleans. A reply came back, showing the signature was not authentic. A few days later, when the man who wrote the letter, saun tered up to the teller in airy fashion to collect his $9,000, he was greeted by a reception committee of detectives, who hustled him off to the city bastile. I heard later that after this fellow fin ished his term he got into the same sort of trouble again. “ In the old days bank hold-tips, such as we hare now, were never heard of. They have developed largely with the automobile, which enables bandits to make a quick getaway. There was one robbery, however, at the old St. Louis National, in which $2,500 in cur rency disappeared, never to be traced. It came about in an unusual way. At that time it was customary for the cashier and president to sign all cur rency issued by the bank. A fresh https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 51 bundle of currency had arrived from Washington and the cashier had af fixed his name and passed it on to the president. After signing $2,500 worth of the bills, the president was called away from his desk for a few moments. When he returned the bills were gone. But the thief evidently knew his busi ness, for he took only those that had been signed. “It is marvelous when we stop to consider the improvements in banking during my time. When I began there were no telephones, none of the new time-savers in rapid calculation, and officers wrote their own letters by hand instead of pushing a button for a typist to come and take dictation. Bank em ployes then had to be better at figures and had to write a good, legible hand. “I sometimes hear young people talk ing about the days of their fathers and grandparents and bemoaning the fact that they don’t have the opportunities their ancestors had. Bnt, let me tell you, the young man or the young woman of today has a lot more oppor tunities than any generation ever had before. The complexity of civilization has opened up new and varied fields and thus increased the chances for gainful and successful occupation.” Mid-Continent Banker 52 A Unique D evice for Bankers W ho Clerk Sales U R sh orts term obligations h a ves been p u r chased by more thaiis y o o o banks in the U nited States. G e n e r a l A c c ep ta n c e M o to r s C o r p o r a t io n Executive Office * 2.50 W E S T 5 7 ™ S T . r New York City Capital , Surplus & Profits • Undivided $36,4x8,000.00 Lawrence Stem and Company 231 South La Salle Street • Chicago B O A R D OF D IREC TO RS And then there is the neat case con taining tickets to the corn-measuring. Many clerks, including the writer, are noted for their fluency in measuring round cribs of corn, and I have known people to come to sales from miles around, just to hear me measure a round corn-crib. Until recently, I have furnished this attraction without any additional compensation, but with the Cler-Kit we are now able to sell tickets to the after-show, with the understand ing that if a sufficient number of tick ets are not sold, we will measure the corn under our breath or in a low voice. And lastly but not leastly, there is the crowning achievement of the inven tors of the Cler-Kit: the Macerator. This instrument is operated by a coil spring. At lunch time, it may ho wound up and set running, and the clerk’s lunch is then dumped into the hopper. An attachment resembling a sausage grinder then disintegrates the various elements composing the lunch, and drops the macerated product into a basin containing pepsin and gastric juice. The lunch in this way is masti cated and digested without requiring the slightest attention on the part of the clerk, so that he is left free to set tle with the many buyers who always leave immediately after lunch. The fin ished product of the Macerator is an excellent feed for young chickens, and by munching a chocolate bar while the hogs are being sold, the clerk will be able to keep going until evening. J O H N H E R T Z , Chairman of the Board of W I L L I A M W R IG L E Y , JR. , Chairman of the Board of W illiam W rigley Jr. Company Y ellow T ruck <fc Coach Manufacturing C o. J O H N R . T H O M P S O N , Chairman ofthe H ERBERT L. Board o f John R . Thom pson Company STERN, P resident of Balaban & Katz Corporation A L B E R T D . L A S K E R , Chairman o f the Board of Lord <fc Thom as and Logan A L F R E D E T T L IN G E R , V ice President S T U Y V E S A N T P E A B O D Y , President of the Peabody Coal Company JO SE PH J. R IC E , Vice President C H A R L E S A . M c C U L L O C H , President L A W R E N C E S T E R N , President o f Parmelee Company a T h is co m p an y condu cts a general securities business, originating and participating in h igh-grade in vestm ent issues an d devotin g special attention to first m ortgage real estate b o n d s. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (Continued from page 14) the heavy belt, studded all around with six-inch spikes, which is worn to pro tect the clerk from being smothered to death in the crowd when the household goods are sold. And there is a sharp hook hung on the back of the kit for filing garnishment papers, with a neat ly-lettered notice just above it: NO TICE TO THE SHERIFF—The Answer to the Interrogatories is “NO. File your papers on this hook and don’t bother me.” Ne w Bank At Morrilton. The First State Bank of Morrilton, Ark., has been organized and has taken over the assets of the Bank of Morril ton, which was closed some time ago. The new bank is capitalized at $50,000, with surplus of $10,000. A. B. Banks, president of the American Trust Com pany, Little Rock, is president; R. L. Deal of Little Rock, vice-president and cashier, and E. E. Mitchell, Jr., assist ant cashier. 53 St. Louis, A pril, 1927 The Advantages of C o m m e r c ia l P a p e r as a B a n k I n v e s t m e n t B y J . H E R B E R T CASE Deputy Governor of the Federal Reserve Bank in New York City HE commercial bank has a dual responsibility to the community. On the one hand, it must take into custody and safeguard the current funds of individuals, business houses and other organizations, who are its depositors, and be prepared to repay its depositors on demand. On the other hand, it must employ these funds in such manner as to assist in the mainte nance of industry, trade and agricul ture. Of course, the primary responsi bility is to its depositors, and in ad dition to keeping cash reserves suf ficient for all ordinary purposes, the bank’s investments must provide liquid assets which can readily be converted into cash to meet any extraordinary demands. T Safety must be the first consideration in the investment of the funds en trusted to a bank. Next in importance is liquidity; that is. the readiness with which invest ments can be converted into cash when required. Experience has shown com mercial paper to be a valuable asset with reference to both of these require ments. In every financial crisis the commer cial assets of banks have proved a source of great strength, because in dustry and commerce were not as acute ly disrupted as the security markets are. Commercial banks have for years been large purchasers of commercial paper in that market, and it has proved a safe and liquid asset. The short ma- turities provide funds at brief and definite intervals; and even in such times- as the panic of 1907 and the out break of the World War in 1914, pay ments were made promptly on a very large proportion of maturing commer cial paper, and actual losses were ex ceedingly small. The liquidity of commercial paper as an investment is due not only to its short maturities, but also to the fact that it is based on current, selfliquidating assets rather than fixed immovable property. It represents the promissory note of a manufacturer or merchant, based on his financial stand ing and record for honesty and prompt ness in meeting his obligations, backed by all of his resources, and issued for Positive Protection in G u a r a n t e e d M o r t g a g e B o n d s The Evidence of Their Safety: 1— First Mortgages are accepted on Completed Properties only, largely Owner-Occu pied Homes. 2— Mortgages are limited to 60% o f a conservative, certified appraisal, and in ac tual practice, average nearer 50% . A ll loans are amortized by monthly, quar terly, or semi-annual payments, deposited with the Trustee. 3— 4— Mortgages are accepted only from progressive cities in a restricted territory. Guaranty Fund $54,000,000.00: The United States F id elity and Guaranty Company, with assets of over $54,000,000.00, guarantees every mortgage securing these bonds, and its entire resources are pledged to protect the bondholders. We recommend these bonds to Investment Bankers, and solicit in quiries regarding their sale and distribution. Maturities to suit your requirements. Rates and concessions quoted upon application. W H I T E -P R I C E 'C O M P A N Y BAKER BUILDING https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MINNEAPOLIS 54 Mid-Continent Banker the purpose of financing current busi ness. Commercial paper provides funds to carry goods through the proc esses of manufacture to the distribu tor, or to carry stocks for the selling season of the wholesale or retail dealer. In the case of the manufacturer, the goods pass to the distribu tor within a comparatively short space of time and become account receivable, which, in turn, are soon paid and pro vide the manufacturer with the funds to meet payment of his notes at ma turity. Similarly, the merchant’s stock is sold to the consumer within a few months, and, as payment is usually received in cash or on accounts pay able within thirty days, the funds are soon provided to liquidate the mer chant’s indebtedness. In this way, the loans represented by commercial pa per are of service to the entire com munity, as they help to maintain the steady flow of goods through manufac turing and distributing channels to satisfy the wants of the entire popula tion. A further advantage of commercial paper as an investment is that it has a fixed value and short maturity, so that a definite amount in payment can be counted upon. Investments in stocks and bonds fluctuate in value and cannot always be liquidated to ad vantage. In fact, at times of finan cial strain, when it is most desirable to convert investments into cash bal ances, security market conditions are usually unfavorable, so that it is not T he Securities o f the Bell Telephone System are based on Service https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Ä ? <Ä? T (R ? H E physical properties o f the System have a b o o k value o f m ore than $2,800,000,000, but be sides that there is a scientific and technical force o f 5,000 people engaged solely in seeking to fur ther develop the science o f tel ephony and to im prove m ethods for making the service better. T h e activities o f this force furnish de pendable assurance o f continued im provem ent in the plant o f the System and its service to the public. T h e sto ck o f A . T . & T . , p a re n t c o m p a n y o f the B e ll S y stem , c a n b e b o u g h t in the o p e n m a r k e t to y ie ld a g o o d re tu rn . W r ite fo r b oo klet, S o m e F in a n c ia l F a c t s .” ELL T E L E P H O N E SECU R ITIES CO. Ik D.F. Houston, President iQ5 Broadway NEW YORK " T h e P e o p le ’s M e s se n g e r ” always possible to realize on stocks and bonds without loss. The security back of investments in stocks and bonds usually represents fixed assets—land, buildings and the equipment necessary to conduct an in dustry or business. While such assets are of a relatively permanent character, their value, and the value of the se curities based upon them, depends upon the ability to employ them profitably and fluctuate with changing business conditions. Thus it is the revolving character of the security back of the short term note that constitutes its especial value with reference to the liquidity of the investment. Every bank needs a diversity of investments and in this diversity ample provision should be made for liquidity. Commercial paper purchased in the open market very frequently can be employed to advantage by the commer cial bank to supplement direct loans to its customers. It is issued mainly by large and well established business organizations, which cannot afford to injure their reputations by failure to meet their obligations promptly; and the purchaser of commercial paper in the open market expects prompt pay ment at maturity, whereas in the case of the customer’s loan, renewal of the loan may he dictated by the sense of responsibility for assisting the cus tomer in the successful conduct of his business. A number of banks may participate, through the commercial paper market, in extending a volume of credit to a concern, which could not be made by a single bank in the form of customers’ loans. A further important advantage of purchased commercial paper in a bank’s investments is that maturities may be so arranged as to fall at times v/hen large withdrawals will have to be met or when it may be desirable to have ready funds for new commit ments. In other words, it constitutes an ideal investment for seasonal fluc tuation. Direct loans to customers have to be placed according to the cus tomers’ business requirements, and so may not mature when the bank is in greatest need of funds. Since the es tablishment of the Federal Reserve System, it has been possible to con vert holdings of commercial paper into cash even more readily than formerly. Paper that is eligible under the rules of the Federal Reserve System may be rediscounted by a member bank at the district Reserve Bank, and the pro ceeds promptly withdrawn in cash or used to increase the member bank’s reserve. In recent years the place of commer cial paper in the liquid assets of a bank has been shared by the bankers 55 St. L o u is, A p r il, 1927 acceptance, the market for which has had a rapid development in this coun try within a relatively few years. The acceptance is not only based on the credit of the concern drawing the pa per, but is a direct obligation of the “ accepting” bank. Owing to this lat ter fact, the yield on prime commercial paper is ordinarily three-fourths to one per cent higher than that on the bank ers acceptance. The aggregate amount of purchased paper outstanding has been reduced during the last few years by changes in business policy and conditions of transportation. Formerly, as a result of transportation difficulties and a greater disposition on the part of the wholesalers, retailers and consumers of raw materials to anticipate their re quirements, especially in times of ris ing prices, forward buying of merchan dise in substantial amounts was the regular practice. During recent years, however, the general policy of the busi ness community has been to depend for profits upon the rapid turnover rather than price appreciation of mer chandise stocks, and the high degree of efficiency reached by the transpor tation system of the country has aided factories and mercantile establishments in buying raw materials and merchan dise close to their immediate require ments. Consequently, goods have been moving more rapidly than ever before through the processes of manufacture and channels of distribution to the consumer, and the amount of funds needed to finance these business oper ations, relative to the volume of busi ness done, has diminished. The strong cash position of our in dustries and business houses, due to the highly prosperous conditions in a majority of lines during the greater part of the last four years, has been another factor tending to limit the amount of commercial borrowing. At the same time the supply of gold under lying our banking system has been greatly increased by heavy gold impor tations and fairly easy money condi tions have resulted. This ample supply of funds, how ever, has not altered the need for care ful selection of investments for a bank’s funds. The type of investment repre senting fixed assets such as industrial plants and equipment, is now selling at approximately the highest level in re cent years, and opinion as to the out look for security prices is divided. But the investment in commercial paper, with its short and definite maturities and fixed value, providing as it does for known requirements and also for unforseen eventualities, continues to be a most desirable part of the earn ing assets of any bank. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mound C ity T ru s t Elects N e w Officers. George W. Clarkson has been elected to the presidency of the Mound City Trust Company, St. Louis, Mo. He suc ceeds J. T. Dodds, who acted as presi dent after the retirement of N. S. Magruder. Mr. Dodds has become chair man of the board of directors. C B. Jackson Elected Cashier. Claiborne B'. Jackson, assistant cash ier of the Southern Bank of Mexico, Mo., for several years, has been elected cashier by the board of directors, to succeed his father, A. D. Jackson, who has been named active vice-president of the institution. W. C. Williams, who has been connected with the bank for more than fifteen years, is the new as sistant cashier. Dr. J. I. T u c k e r Elected President. The Farmers’ State Bank of Inza, Mo., has been reorganized. Dr. John L. Tucker has been elected president to succeed William J. Klepper, who sold his interest in the bank to five mem bers of the directorate. William Mc Cauley is vice-president and Ernest H. Hyde cashier. In America there is not one single element of civilization that is not made to depend, in the end, upon public opin ion.—Beecher. S e l e c t e d b y b a n k s n a t io n -w id e for P R I M E S H O R T -T E R M I N V E S T M E N T M aturities i to n months. Customary i o -day Option. Checkings in any Financial Center. Complete Credit D ata on Request. ALWAYS MOST CONSERVATIVE Industrial A c c e p ta n c e C orp oration F I N A N C I N G S T U I ) KB A K E R DEALERS EX C LU SIV E LY Collateral Gold Trust Notes ( T H E N A T I O N A L C I T Y B A N K OF N E W Y O R K , T rustee) Executive Offices IO O EAST 4 2 ND STREET, NEW YORK Commercial Paper Offices NEW YORK i D AL LA S *• M I N NE A PO L IS *• C H IC A G O 1 105 South La Salle Street ST . L O U IS 1 Boatmen’ s Bank Building SAN FR AN CISCO M id-Continent Banker 56 The Evil of Unnecessary Concessions I T IS foolish perhaps to endeavor to rectify a situation by appealing to those who benefit the most by rea son of the existence of the condition itself. However, as the condition in question is both unreasonable and un fair, it is my belief that when a thor ough understanding of the facts is brought before the commercial banker, he will be quick to see its unfairness. A great deal of adverse criticism upon a great diversity of counts has been laid at the door of the commercial bank er, but in spite of all the accusations made against him, I still believe him to be both fair and reasonable. I am biased, perhaps, in this belief as I my self was a commercial banker for some years before forsaking, in a misguided moment, those Elysian fields for “the business of many troubles”—invest ment banking. In the past there have been three distinct steps in the distribution of an issue of securities; the underwriting house bought the issue and advanced the money to the borrower, and set a retail offering price for the securities; a number of dealers then bought the entire issue or parts thereof at a set-up By George R . Bayard Secretary, Carmen, Snider & Co., Inc. Chicago and New York price, thus showing a profit upon the whole transaction to the originating house. These dealers then sold the se curities to individual purchasers at the retail price previously agreed upon. Banks, insurance companies, and other institutional purchasers were sold by dealers at the retail price, less a small ......................................................... . IN which M r. Bayard asks “ W h en is a bond departm en t n ot a bond d e p a rtm en t?” and answers it by another question, “ Do they earn their bread and butter selling se cu rities?” nil il Ii'll 11 m i 11 hi i il il Im i .................... .... i m in i m in i 11 m i n ill i mi quantity discount mutually agreed upon in advance. This discount was ordi narily one-quarter to one-half of one per cent and was based upon the as sumption that banks and other institu tional buyers purchased in larger amounts than the individual investor. Of recent years a situation has arisen which may best be described by telling of one concrete example known to me personally. This example typifies a general condition which is becoming more and more prevalent. A General Condition. A good bond salesman whom I have known for many years, a man of long experience in the business, has one client which is a very excellent bank situated in a small town in a middle western state. He has enjoyed mutually profitable and pleasant relations with this customer for years. About two years ago he began to notice that he could not sell this customer orders from new issues of a type that had usually attracted the buyer in the past. He finally realized that his inability to sell his client was limited to the under writings of one house. Upon asking his customer the reason, he was told that this bank had been placed upon the syndicate list of the house of origina tion and was able to buy direct from them with the same profit that offer ings were made to all dealers. The bank in question makes no pre tensions to maintaining a bond depart ment, buying solely for its own invest- We are pleased to an n oun ce that the fo l lowing have b eco m e affiliated with this C om p a n y as Officers and D irectors: H E R M A N L. B R O C K S M IT H Complete Financial Service In Charge of St. Louis Stock Exchange Department. H . H A R R ISS LO N G In Charge of Unlisted Trading Department. The above were formerly connected with M A R K C. ST E IN B E R G & C O M P A N Y in similar capacities. W e S o lic it Y o u r St. Louis Account JO SE P H H . LYNCH In Charge of Sales Formerly with Mark C. Steinberg & Co. W e S o lic it Y o u r I n q u ir ie s a n d K i n d l y Ask. tha t Y o u P la c e O u r N a m e o n Y o u r C o r res p o n d e n t L is t . Correspondence Invited H. L. RUPPERT & CO. Incorporated IN V E S T M E N T S E C U R IT IE S 402 P IN E ST. ST. LOUIS, MO. PO STAL L O N G D IS T A N C E https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M A in 1082 Member St. Louis Stock Exchange ffiïR fv Central Trust Company M EM BER FEDERAL RESERVE ST. L O U IS SYSTEM St. Louis, April, 1927 ment account. Its maximum purchase is $10,000 of any one issue. The dealer buys from $25,000 to $100,000 and up ward of an issue and receive the same profit that is extended to the bank. Naturally, the salesman can not attract his bank client with a legitimate onequarter to one-half discount on a par ticular issue when that client has been offered the same issue with the dealers profit. This increasing practice upon the part of several of our larger underwriting houses is giving the smaller dealer in creasing concern. There are, no doubt, several causes contributory to this situ ation. Competition is perhaps the great est cause, the creation of theoretical bond departments by many banks is an other, a natural anxiety of the under writing house to secure widespread dis tribution for his secondary market may be a third factor. However good these reasons may appear, it seems short sighted upon the part of both under writer and banker to continue tactics which may eventually “kill the goose that lays the golden eggs.” In the first instance, while competi tion is unquestionably keen, it would seem that a small sale occasionally lost to a bank which insists upon dealer’s concessions would soon be returned one hundred fold to the underwriting house by increasing dealer participations. It is manifest that as a dealer’s inability to sell his banker client increases so his own buying power decreases. The combined distributive power of the smaller dealers in the country is now, and always will be, far greater than that of the smaller banks. They are organized for different purposes and each has his own distinct sphere in the economic structure. I have heard many theories upon the subject, “When is a bond department not a bond department?” It seems to me the best answer is “Do they earn their bread and butter selling securi ties?” If they do they are dealers and as such are entitled to dealers’ conces sions; if they do not, they are entitled only to the institutional concession mu tually agreed upon. Secondary Markets. The best secondary markets are maintained by dealers. The commer cial banker receives better information, more personal service, more sound, un selfish advice on securities from the dealer. It is the dealer’s business; he lives bonds, thinks bonds, talks bonds and earns a living buying and selling bonds. The question of concessions or discounts in any business, be it bonds, dry goods, or groceries, is fundamental- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 57 K night, Dysart & G a m b le Investment Securities C O R P O R A T IO N P U B L IC U T I L I T Y R A IL R O A D M U N IC IP A L 401 Olive Street G A rfield 7790 BONDS MEMBERS NEW YORK STOCK EXCHANGE ST. LOUIS STOCK EXCHANGE Securities for Investment D aw es, M ayn ar d # Co m pan y 111 W E S T M O N R O E S T R E E T C H IC A G O S h o rt T e r m P ap er fo r Bank Investment Fletcher AdiiericianCompanif Affiliated with T heFletcher A merican National Bank of Indianapolis INDIANAPOLIS LOUISVILLE DETROIT Mid-Continent B anker 58 Harriss Long and Joseph H. Lynch as officers and directors of H. L. Ruppert & Co., St. Louis investment bankers. Herman L. Brocksmith has been elected a member of the St. Louis Stock Exchange. Mr. Brocksmith is well known on the St. Louis Stock Exchange where for the past six years he has been in charge of the trading for Mark C. Steinberg & Company. Mr. Long, for the past five years, has been in charge of the Trading Depart ment of Mark C. Steinberg & Company, and previous to this was connected with the Bond Department of the Liberty Central Trust Company. Joseph H. Lynch, for the past five years, has been connected with the re tail sales organization of Mark C. Stein ly based upon a quantity purchase. It is a well-known fact that a manufac turer will sell a large order of goods at a better price than he will a small one. This is economically sound. Quantity purchase always has been and should be entitled to larger dis counts. Allied lines, it is true, extend the courtesy of some discount, but the real profit in any business should be confined to those who make it a life work and whose very existence is de pendent upon that particular occupa tion. Ruppert & Com pany Elect Three New Officers Announcement has been made of the election of Herman L. Brocksmith, H. berg, and will be in charge of the sales in his new connection. Messrs. Long and Brocksmith will continue in similar capacities with H. L Ruppert & Company, who plan to en large the scope of their activities to include a general brokerage business. H. L. Ruppert & Company have been doing business at 402 Pine street dur ing the past few years and will con tinue at their present location. H. L. Ruppert has been elected presi dent and treasurer, and will have charge of the office and of the finances of the company. D. Hedenkamp of the St. Louis Bank Building and Equipment Company, has been elected vice-presi dent and will lend his active support. H. Harriss Long, Herman L. Brocksmith and Joseph H. Lynch will also serve as vice-presidents. T. Henry Ruppert, vice-president of the Staudte-Ruecklioldt Manufacturing Company, has been elected secretary. T w o Chicago Investment Houses Combine Many Experts CarefullyJudge Our Offerings -Jit no extra Costtoybu for. The agreed amount of capital must be retired every year until the underwriting is liquidated. make the safest known investment — first mort gage bonds— safer, we per sonally investigate every angle of the offering. / T vO These and other safeguards are exercised to protect your investment and assure: The property must have real value. It must be located in a section of rising values. Titles are examined. Insur ance and taxes properly cared Safety of Principal Adequate Interest Yield Marketability Write for our current list of offerings M S o e r c t u g r a i t i g e e s f i r * C o . ETfew Orleans ■* <SaintUs>ouisj) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis George M. Forman & Co., and Coffin, Forman & Co., Inc., have announced that the general investment business of Coffin, Forman & Co., Inc., has been combined with the business of George M. Forman & Co., with executive offices' at 112 West Adams street, Chicago, and 120 Broadway, New York. The officers and directors of George M. Forman & Co. will remain the same as heretofore, and in addition Charles Howells Coffin, formerly president of Coffin, Forman & Co., Inc., becomes a director and vice-president of George M. Forman & Co., in charge of originat ing and purchasing new securities. John H. Ellis, formerly secretary of Coffin, Forman & Co., Inc., becomes a vice-president, assisting in the buying and syndicating departments. Robert T. Chambers, formerly man ager of the New York office of Coffin, Forman & Co., Inc., becomes a vicepresident in charge of the company’s office in New York City. George M. Forman & Co. conduct a general investment business in do mestic and foreign securities, purchas ing entire issues of government, munic ipal, public utility, real estate and in dustrial securities for distribution at wholesale and retail, and participating in national underwritngs. Branch offices are maintained in St. Louis, Pittsburgh, San Francisco, Des Moines, Minneapolis, Indianapolis, Lex ington, Springfield and Peoria. “ To be a king is to know one’s self, and knowing, have charity; to be one’s self amid the storm and stress of life.” St. Louis, A pril, 1927 59 Olive Street Notes Clarence O. Gamble, of the firm of Knight, Dysart & Gamble, has been nominated to be president of the St. Louis Stock Exchange. He is scheduled for election on April 5th, by which time it is hoped that the formal opening of the new quarters of the Stock Exchange can take place. The inform al opening of the new quarters of the St. Louis Stock Ex change took place March 21, when the first trade recorded was in Aloe pre ferred. A. H. (Gus) Goette, fo r m e rly of W e il, Irving L. Jones, assistant tre a s ure r of the Mercantile Trust Company, cele brated his silver anniversary of service to the bank on March 24, and spent the day receiving congratulations from his friends and associates. Mr. Jones, who entered the employ of the bank as man ager of the transit department only twenty-seven months after the bank was organized, is a direct descendant of “ Lighthorse” Harry Lee of Revolution ary War fame. Leo G. Desobry, fo r the past four years vice-president of the Broadway Trust Company of St. Louis, has been elected president of that institution. He succeeds Earl C. Adams, who re mains on the board of directors. H. F. Hoener, former secretary and treasurer, becomes vice-president and secretary, and F. Hoffman, former assistant secre tary, becomes treasurer. J. Irvin Obst is now assistant secretary. Charles F. Ford, fo r m e rly w ith W i l liam R. Compton Company, has recent ly become associated with Taussig, Day, Fairbank & Co. Saint abroad, and a devil at home— Bunyan. There is no heroic poem in the world but is at bottom a biography, the life of a man.—Carlyle. Mc'Key & Co., is now associated with Camp, Thorne & Co., Inc., as resident manager of the St. Louis offices which are located in the Railway Exchange building. Joe Dillon of W h i t a k e r & Co., is men tioned in a recent issue of the Adver tising Club Weekly as one of the new members of the advertising club of St. Louis, who is “ coming to the front with rapid strides.” Joe has recently been appointed chairman of the program committee of the Ad Club. N ecessary ? P R I V A T E W I R E — over 1 1,0 0 0 miles o f it — connects our offices in over fifty principal cities of the country and brings our banker-customers every where in almost instant touch with the great investment centers. An nouncem ent has been made of the election of Herman L. Brocksmith, H. Harriss Long and Joseph H. Lynch as officers and directors of H. L. Ruppert & Co., who plan to enlarge the scope of their activities to include a general brokerage business. H. L. Ruppert is president and treasurer of the company. These facilities are yours to command when y ou want quick action on a bond offering or seek market quotations or other investment information. Among the recent tra nsfers of mem berships on the St. Louis Stock Ex change are the following: O. J. An derson to Arthur C. Hilmer; John Nick erson to J. W. Fotheringham, and J. D. P. Francis to Talton T. Francis. Gus Riesmeyer, Jr., president of the International Bank, has recently been elected a director of the Securities In vestment Company, whose directors in clude E. H. Angert, S. L. Geisinger, E. K. Ludington, A. E. Brooker, S. C. McCluney, Isaac H. Orr, J. F. Schlafly, W. W. Smith, Mark C Steinberg, J B'. Strauch and T. C. Tupper. The com pany, which is now nine years old, has paid cash dividends on the common stock in every year since 1918 and on the preferred stock regularly since its issuance. Both the preferred and com mon stocks are listed on the St. Louis Stock Exchange. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The National City Company National City Bank Building, N ew York Offices in more than 50 leading cities throughout the world BONDS * SHORT TERM NOTES * ACCEPTANCES 60 M id-Continent Banker Purchase Control o f Heine Boiler Com pany Holders of the Heine Boiler Com pany first mortgage 6y2 per cent bonds, due serially, 1927-33, will be interested to learn that the International Com bustion Engineering Corporation re cently purchased control of the Heine Boiler Company. It is understood that the new company plans extensive im provements to the St. Louis plant, which, if accomplished, will materially increase the security of the bond hold ers. For the past several years, manufac turing concerns, making only boilers, have had difficulty in marketing their Telephone yo u r subscriptions for B on ds of A ll New Issu es to us reversing p h on e charges. AUGUSTINE & CO 608 Security Bldg. ST. L O U IS , M O . Long Distance Telephone L. D. 32 or GA rfield 6270 M E M B E R S T . L O U IS STOCK EXCHANGE product. For this reason most of the large companies have either effected consolidations or made additions to their plants that they might furnish complete heating units which are de cidedly more salable. The International Combustion En gineering Corporation furnishes com plete heating units and will probably use the Heine Boiler Company in con junction with other of its plants in this country and those affiliated in France and England. The International Combustion En gineering Corporation does a world wide business, manufacturing and in stalling boiler room equipment and various devices, such as automatic stokers, ash handling systems, etc. It is the largest company of its kind in existence. The company’s resources have in creased from $7,500,000 in 1921, to over $25,000,000 as of June 30, 1926, and net working capital has increased from $1,241,751 in 1921, to $7,837,049. The funded debt of the company, as of June 30, 1926, amounted to only $371,250. D e W olf & Com pany N ow H ave New Office Quarters Wide Distribution A selected list of short term secur ities especially adapted to the needs of banks will be sent on request. B y effecting a wide distribu tion o f securities, the twenty branch offices o f Caldwell & Com pany provide an unusu ally good market for the resale o f their issues. This m arketability, com bined with safety and good yield, is an especially attractive fea ture o f Caldwell securities. Caldwell & Company Southern Securities 117 N orth Fourth Street https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis St. Louis, Missouri OFFICES IN PRINCIPAL CITIES Announcement is made of the re moval of the Chicago offices of De Wolf & Co., investment bankers, on February 28th to the new building at 100 West Monroe street. De Wolf & Co. will occupy a large part of the second, or “bank floor.”' Their offices are said to be among the handsomest and most efficiently ar ranged of their kind. The office en trance is of black and gold carved mar ble with plate glass doors and an orna mental bronze grille. The interior is completely panelled in walnut from floor to ceiling. Cork tile floors are used throughout, and the ceilings are of special accoustical Celotex to dis tribute and deaden both office and street noises, reducing them to a mini mum. The lighting fixtures of orna mental cast bronze are of a design said to be unusual in business buildings. A mechanical ventilating system furnish es washed air, heated in winter and cooled in summer. The 100 West Monroe building, re cently completed in record time, has a distinctive feature in the decorative treatment given its main lobby. The walls and stairways are of buff-colored marble with trim of carved oak cof fered ceiling with oak beams. Talking and eloquence are not the same; to speak, and to speak well are two things. A fool may talk, but wise men speak.—Johnson. 61 St. Louis, A pril, 1927 New Form o f Real Estate Investm ent Offered \ N interesting and significant devel- opment in the investment field in Chicago is marked by the consumma tion of a trust agreement between the llllinois Merchants Trust Company ■and the Chicago Title and Trust Com pany, as trustee, by which the Illinois Merchants Trust Company is enabled to offer for the first time a new type of security known as the First Real Es tate Mortgage Collateral Gold Bonds. These bonds, yielding 5y2 per cent, are a direct obligation of the Trust, and are secured specifically by deposit with the trustee of first mortgages up on improved real estate located in the “ Greater Chicago” district. The significance of the announce ment is twofold. It gives investors the first opportunity to benefit by the Chi cago Title & Trust Company’s long ex perience and conservatism in the se lection of real estate mortgages. Pre viously, this company has purchased mortgages only for its own account and for trust funds under its control. Secondly, it is the occasion of the Illi nois Merchants Trust Company’s first entrance into the real estate mortgage field. Fundamentally the plan represents an application of the investment trust idea which has long been accepted in England. By pooling a large number of carefully selected investments in the limited field of high grade mortgages it provides an unusual stability and distribution of risk. Commenting on the new develop ment, Mr. Roger K. Ballard, vice-presi dent of the Illinois Merchants Trust Company, in charge of the bond de partment of that institution, states that the decision to enter into the trust agreement was strongly influenced by a growing demand on the part of in Testers and financial houses for a real estate security which would have broader safeguards than those com monly offered. When the opportunity came to make an agreement with a house of such high standing as the Chicago Title and Trust Company, and it became possible to back the bonds with such unquestionable security as this plan offers, the bank welcomed the opportunity to go ahead. The selection of the mortgages which provide the security is made by the Chicago Title and Trust Company, every mortgage being legal for the in vestment of trust funds under the Illi nois law. No mortgage exceeds 60 per cent of the trustee’s appraised value of the property. In excess of the par value of the new bonds issued there is a 10 per cent https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis margin of additional real estate mort gages supplied out of the trustee’s own holdings and held in a special pro tective fund. The soundness of the se lection of mortgages by the trustee is indicated by the trustee’s forty years of experience as a purchaser of real es tate mortgages in large amount for its own investment as well as for trust funds under its control. During these forty years purchases by the trustee have been in excess of 1200,000,000, of which more than 150,000,000 is now be ing carried for the trustee’s own ac count and in trust funds. In the few instances in which foreclosures have been necessary, the net result to date has been a substantial profit. STICKNEY'DENYVEN * Co. SECURITY B L D G i ^ ^ ST. LO UIS, MO. G a r fie ld 3140 T T VE solicit inquiries for buying or selling r r orders in the following securities: Y ield A ppalachian E lec. Pr. Co., 1st & R ef. M tg. 5s, M ay, 1956 ........................................................................ 5.25 Birm ingham W a ter W k s. Co., 1st M tg. Oct., 1954 .... 5.15 Gulf, M obile & No. R. R. Co., 1st M tg. 5s, Oct., 1950 ...................................................................... 4.90 M ichigan H om e T el. Co., 1st M tg. 6s, N ov., 1946...... 5.80 M innesota P ow er & Lt. Co., 1st & Ref. M tg. 5s, June, 1955 ...................................................................... 5.02 N ew R och elle W ater Co., 1st M tg. 5j4s, N ov., 1951 ...................................................................... 5.38 P u get Sound Pr. & Lt. Co., 1st & R ef. M tg. 5 % s, June, 1949 ............................. 5.47 St. L ouis C ounty W a ter Co., 1st M tg. 5J / 2s, D ec., 1945 ...................................................................... 5.25 Southw estern Pub. Ser. Co. 1st M tg. 6s, July, 1945... 5.88 O ur trading departm ent maintains an active market in a large num ber o f high grade public utility and rail issues, such as the above list. T h e yields indicated above are su bject change in accordance with the market. P. W. CHAPMAN & CO.,INC. 170 W. Monroe St. CHICAGO 42 Cedar Street NEW YORK 1103 B oa tm e n ’s Bank Building St. Louis Telephone GArheld. 3480 to M id-Continent Banker 62 Wuensch Heads Indianapolis | B ond M en ’s Club Edwin J. Wuensch of the Fletcher American Company has been elected president of the Indianapolis Bond Men’s Club. Other new officers include Hugh Niven of the National City Com pany, vice-president, and Clair McCon nell, secretary-treasurer. This year the club is making a special effort to provide Indianapolis with Bonds fo r Bankers M unicipal B onds are am ong the safest form s of invest m e n t. They are m ost desirable for resale to your custom ers or for purposes of secondary reserve. W rite us for prices and descriptive circulars. BONDS IN V E S T M E N T ESTABLISHED 1877 S E C U R IT IE S D’ Oench, Duhme LISTED BONDS & Company, Inc. 507 Locust Street S T . LO U IS, M O . Phone GArfield 6940 W e are prepared to furnish accurate quo tations, and prompt executions of buying or selling orders for listed bonds. The experience acquired during our forty-seven years in the investment field is also at the disposal of our clients. rf? M em ber, S t. L o u is S to c k E xch a n ge E d w in J. W u e n s ch something unusual and quite worth while in the way of investment bankers meetings. Of these meetings the first was held on March 11th, when Mr. Paul Clay, vice-president of the John Moody’s Investors Service of New York, spoke on “ The New Era in the Bond Market.” The meeting was also attended by Mr. Roger K. Ballard, of Chicago, vice-president of Blair & Co. A number of out of the city bank ers attended. The committee in charge of the meeting was Ernest G. Mueller, Cecil Weathers and J. Craig Fisher. S U P E R IO R S E C U R IT Y SE R V IC E T O BANKS B A N K E R S and BROKERS D IR E C T T IC K E R SE RVIC E for listed bond quotations F A S T T H R O U G H W IR E S to New York and every other important market A C T IV E T R A D IN G D EPT. to furnish prompt quota tions on any security S T A T IS T IC A L D E P A R T M E N T to furnish latest data on any security or company M O N T H L Y Q U O T A T IO N SH EET to list markets on many inactive stocks and bonds Y o u r in q u ir ie s in c ite d Francis, Bro. & Co. INVESTMENT SECURITIES 214-18 N. Fourth St. Kennedy Building ST. LOUIS TULSA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mark C. Steinberg & Co. O liv e 4600 B o a tm e n ’s B an k B ld g . H o te l J e f fe r s o n ST. L O U IS M e m b e r s N e w Y o r k S to c k E x c h a n g e M e m b e r s S t. L o u is S to ck E x c h a n g e St. Louis, A pril, 1927 63 Augustine N ow an Officer o f National Shawmut We specialize in Joint Stock Land Bank For your own funds or for William F. Augustine, formerly vicepresident of the Merchants National Bank and later of the First & Mer chants National Bank of Richmond, Virginia, has recently resigned to be come a vice-president of the National Shawmut Bank of Boston, Massachu setts. those o f clients, you can rely upon Fidelity First Mortgage 6 1-2% Bonds Stocks and Bonds Denom inations $100, $500 and $1000 KOEPPE LANGSTON LOPER 6 CO. W r ite Fid e l it y .1 . BOND^NORTGAGB COi l J.U. M 3 9 S o u th LaSalle Street Telephone-Randolph O for list of issues E N T E E R .P re sid en t c-va I N C O R P O R A T E D 1913 H om e Office, 651 Chemical B ldg., St. Louis Chicago— Denver 98O C H I CA G O Fidelity Guarantees Every Bond K877 If You Can Answer These Questions — and an sw er th em c o rr e c tly y ou r in v estm en t p rofits w ill show im m ediate im provem en t. W . F. Augustine (1) Is the trend o f stock p rices up— or d ow n ? In leaving Richmond, Mr. Augustine also resigned as secretary of the Vir ginia Bankers Association and secre tary of the Clearing House Association of Richmond. He has for many years taken an active part in the affairs of the Virginia Bankers Association and also in the American Bankers Associ ation, in which latter organization he was at one time president of the State Secretaries Section, and is at present chairman of the Executive Committee of the Clearing House Section. (2) Is this a tim e to bu y or to sell sto ck s; w h at sto ck s? (3) A re long or sh ort term bon ds the best in vestm en t n ow ? T he cou p on is fo r y ou r con v en ien ce in secu rin g a u th orita tiv e in fo rm a tion. I f the an sw ers to these q u es tions in terest you clip it now . T here is no obligation . B R O O K M ÏR E ECONOMIC SERVICE, Inc. 25 W e s t 45th St., N e w Y ork Mr. Augustine is a graduate of the University of Richmond and a member of Phi Kappa Sigma fraternity. P lease N am e A d dress AMAGNIFICENT NEW HOTEL send free B ulletin ........................................................ 4 0 0 R o o m s w ith B a th s $3—and up f o r One Person $4-~andup For Two Persons W Hormis JWliaP HOTEL K nickerbocker 12th Street and Baltimore Avenue KANSAS CITY, MO. N the very center o f the business district, the combined buying power giving the best in room accommoda tions,cafe and dining service at fair prices, S. J . W h i t m o r e , I ^ /N E W Y O B K , g W E S T 4r5J -H - STR EET Just East o f B ro a d w a y T im e s S o u a r e heart of Jheatrfcal and Shopping District https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Chairman J o seph R e ic h l , V-P. and Gen. Mgr. 500 ROOM S M .B . ............................................................ William S. Mitchell, Res. Mgr., Hotel Baltimore 500 ROOMS M id-Continent Banker 64 M orning or E vening? Entire Issues R oger B. Williams, J r ., & Co. IN V E S T M E N T B O N D S 67 W all Street New Y ork G. H. W ALKER & CO. BONDS GOVERNMENT MUNICIPAL PUBLIC UTILITY RAILWAY CORPORATION (Continued from Page 11) stocks. That they have met with suc cess in this effort has been forcefully demonstrated in many ways. Recently the National Industrial Conference Board published a report in this con nection which showed that today the industrial toiler, as representative of the mass of the people, is as good if not a better prospect for the purchase of investment securities than the socalled professional element, which, in the past, has largely been presumed to reflect the investment class. This re port shows that less than two years ago two very large electrical companies sold issues of stock to a total of 13,856 purchasers and an analysis reflect ed the occupation of the nine largest of these stockholder groups to be as fol lows: 3,347 Housewives 1,054 Miners 949 Clerks 401 Salesmen 336 School Teachers 326 Laborers 250 Stenographers 237 Farmers 178 Grocers and butchers. These nine groups comprised over 7,000 stockholders or fully two thirds of the entire list of subscribers. Statis tics show that during the past four years more than $25,000,000,000, have been invested in various stock issues and it is estimated that fully 90 per cent of these investors were people of the middle or even lower classes. Building and Loan Associations. D irect private wires to all principal markets enable us to render prom pt and efficient service in buying and selling listed bonds. . „ . „ 1,, . M E M B E R S N E W Y O R K , ST . LO U IS A N D C H IC A G O S T O C K E X C H A N G E S As a result of the housing shortage that existed at the close of the War a great impetus was given to the devel opment of Building and Loan Associa tions. Because of certain special serv ices which these companies could offer to prospective home builders or pur chasers, they have been able to at tract to themselves a considerable vol ume of savings. In s ta llm e n t BROADW AY AND ST. LOUIS, LO CU ST MO. ENVELOPES—For Every Purpose Safety Pay Envelopes H E C O — C H IC A G O H E C O —C H IC A G O https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Buying. The enormous increase in the volume of installment buying is, from one standpoint, a savings aspect. There is but little doubt that by means of this system of selling, many individuals have been able to acquire automobiles, radios and countless other articles which they would not have acquired had they been first compelled to save the full purchase price. By enabling individuals to realize immediately the aim for which they would otherwise have had to save, an incentive of great force was created. While there are many different opinions on the subject St. Louis, April, 1927 65 of installment sales, there is but little doubt that this sales policy, if kept within proper bounds, has unquestioned merit. Problems. With this picture before us, it is evi dent the Savings Banker faces keen competition, since it is his duty to preach the gospel of thrift; keep his deposits intact and constantly to see to it that these deposits in the aggregate show a steady increase. This is by no means an easy problem to solve when we visualize the numerous agencies outside the financial field that seem to have developed into real com petitors. I firm ly believe t h a t a new day is daw ning in the Savings Field— th a t we must necessarily go out into the high ways and the byways w ith savings mes sages containing human interest t h a t we may a tt r a c t the younger generation and teach them the hab it of t h r i f t and savings. T h e n we must unselfishly lead them fro m our Savings De pa rtm ents into the inv estment classes and la te r on in life offer the m the services of a d ep a rtm e n t t h a t m ight be termed the “ Ho me B uild ing” department, where all Sound Short Term Notes Maturity General Necessities Corp. Serial 6 s ............................ July, 1928 Associates Investment Co. 6 s ........................................... Feb. 1929 Consolidated Public Service Co. 5 s .......................................... Mar. 1928 General Furniture Co. Coll. Trust 6^s . . . . Aug. 1931 Yield 5-75% 6.20% 6.00% 6.50% Circulars on Request H oagland, A llum & C o. Established 1 9 0 9 — Incorporated 14 S. La Salle St. CHICAGO 34 Pine St. N EW YORK banks should be prepared to give coun sel and advice; fre e ly make loans to savings depositors for home building and buying at reasonable rates of in terest. T h is is a service t h a t w ill ce ment closer friendship between the saver and his bank and w ill help us to meet certa in types of competition. There are few businesses that need good advertising more than the Sav ings Bank. This is particularly true in the present period when spending is made so easy and when the standard of living is steadily increasing. If the merchandisers, as previously pointed out, have learned the value of high powered advertising and have used it so effectively, why should the Savings Banker he so passive. It should become a part of his business to make saving just as easy a habit to acquire as it has been made easy to spend through the installment selling plan. Thrift is purely a matter of education and salesmanship, and it is up to the banking interests to broadcast more ef fective advertising than ever before. The prospective savers are not seeking the banks—so the banks must neces sarily seek the saver with frank, hon est, human interest appeals. There is no action so slight, nor so mean, but it may be done to a great purpose and ennobled therefore; nor is any purpose so great but that slight ac tions may help it much, most especially that chief of all purposes, the pleasing of God.—Ruskin. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W e underwrite and distribute Public Utility, Industrial and Municipal Bonds. Special service to Banks in bonds fo r investment or re-sale. Full details on request. A.C.ALLYN"® COMPANY N a t i o n a l B a n k o f C o m m e r c e B l d g ., S t . L o u i s C H IC A G O D E T R O IT N EW YORK M IL W A U K E E BOSTON M IN N E A P O L IS Advertise P H I L A D E L P H IA S A N F R A N C IS C O i n t he M ID -C O N T IN E N T BANKER Mid-Continent Banker Ten Years Service W ith I, B. A. entitled to the positive safety of the money entrusted to the banks and has persistently led in the encouragement of safe and sound banking, steering the course charted back in 1910 when as vice-president of the Wisconsin Bank ers Association and cashier of the Mer chants and Manufacturers Bank in Mil waukee he addressed the Wisconsin Bankers Convention on the desirability of the bankers providing protection to depositors by establishing mutual su pervision through voluntary clearing house associations organized under the authority of the state association, there by making membership in the associa tion a standard of safe banking and its insignia displayed by a member a sym bol of assured safety and confidence. During all of these years he has led the bankers of Illinois toward this goal; already a number of federations have organized Credit B'ureaus; great inter est is aroused over the Bank Manage ment Program, and the Code of Ethics is prominently and proudly displayed in hundreds of the banks, so it can he seen very readily that the next step will be supervision and safety through volun tary mutual examination and supervi sion. Williamson County Ranks High in County Federation Work M a r t i n A . G r a e t t in g e r Martin A. Graettinger celebrated his tenth anniversary as secretary of the Illinois Bankers Association on April 1st. In these ten years the I. B. A. has grown from a purely social organization to one of great activity, providing direct services to the memoer banks that have aided considerably in adding to their profits. Ten years ago the bankers in Illinois were perfectly satisfied if the secretary looked after pending legislation and kept them advised of what was going on in Springfield and Washington and provided them with an opportunity to meet each o', her at the annual conven tion, the mid-winter dinner and the group meetings. Today these features are just as popular, but the members have been awakened to the value of organization with the result that active federations exist in every county in https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the state which hold monthly meetings at which all the topics of interest are discussed. Town Guards have been or ganized, resulting in a most gratifying decrease in bank burglary and robbery losses, as well as providing protection to the homes and businesses generally in the rural communities. Then, too, a very complete criminal investigating bureau is operating throughout the state that has succeeded in providing enforced vacations for several hundred undesirable citizens and is keeping up its record of three a week. Through h:s energy and co-operation the bankers are actively represented in all movements to better the condi tions in the state—agriculture, law en forcement, better citizenship, industrial, economic and social developments all seek his council and advice. He has de termined that the people of Illinois are The Illinois Bankers Association has named Williamson County as one of the “model” counties in the state of Illinois relative to County Federation activi ties. The Williamson County Bankers Federation has adopted most all of the major activities as outlined by the state association and carried out the differ ent programs to a successful conclu sion. The Credit Bureau and Protective Program are fully organized and func tioning. The tax adjustment idea was carried out with considerable savings to the member banks. Many other sug gestions from the state association have been favorably acted upon, and always with profit to the members of the Federation. The county is now in the throes of “ service charges” and many of the banks already are converted to the ben efits to be derived for a fair charge for services rendered. Bradford Bank Is Reorganized The Phénix Bank of Bradford, one of the long established banking institu tions of Stark County, has been reor ganized. The bank building is one of Bradford’s best properties, and the lower floor is occupied by the Phénix Bank and the Bradford post office. St. Louis, April, 1927 0 % * \ fillip 67 I l l i n o i s B a n k N e w B s / « V ■ r O F F IC E R S I L L IN O IS B A N K E R S A S S O C IA T IO N : W . B. Crawford, W est Frankfort, President; J. M . Appel, Highland Court, Vice-President; M . A. Graettinger, Chicago, Secretary; Olive S. Jennings, Chicago, Assistant Secretary; W . H . Drewel, Charleston, Treasurer. x 1 .u j A J fp G R O U P C H A I R M E N : I — E . F. Anson, Kewanee; I I — G . K . Slough, Abingdon; I I I — H . H . Badger, A m b oy; I V — A . K . Foreman, Chicago; V — C. A . Mueller, Kankakee, V I — E . E . Core, R obinson; V I I — E . B . Appleton, Litchfield; V I I I — J. C . Whitefield, Quincy; I X — L. G . Gee, Lawrenceville; X — Earl Karraker, M ound City. W . B . Crawford, Pres. G R O U P S E C R E T A R I E S : I —C . D . DePauw , K ew anee; I I — John B . Fleming, Peoria; I I I — F. P. Baker, Stillman Valley; I V —W . M . Givler, Naperville; V — W . D . Kitchell, Danvers; V I — G . H . Baker, U rbana; V I I — J. E . M cD avid , R aym ond; V I I I — George D yson, Rushville; I X — Henry Eversm an, Effingham; X — B . G . Gulledge, M arion. M a r k Roberson Resigns as Cashier. Org anize N e w Bank at Cheltenham. Mark Roberson, who for the past five years has been cashier of the People’s State Bank, Colchester, has resigned his position with that bank. Last fall Mr. Roberson built a chicken hatchery at his home in this city and the busi ness had increased to such an extent that he felt that it was necessary to give it his undivided attention. Russell Carson, who for some time has been assistant cashier in the bank, has been advanced to cashier. Ray Shelly has been named as assistant cashier. The Cheltenham State bank is now in process of organization at Chelten ham. It will be located at the southwest corner of 79th street and Escanaba avenue, a block west of the 79th street station of the Illinois Central. IA . A . Graettinger, Sec’y Among the organizers are Roy P. Roberts, formerly president of the Auburn Park Trust and Savings Bank and Milledge Mickelberry, formerly secretary and sales manager of the Mickelberry Food Products Co. It is planned to have the bank open for business in April, with a capital of $ 200, 000. W . R. Davis Now W i t h St ate Bank of Chicago. W. R. Davis, for 12 years cashier of the Smitbfield State bank, has been made a department head in the State Bank of Chicago. Before going to Smithfield Mr. Davis was connected with the First National Bank in Cuba. V e t t e r Now W it h Lak e Forest Bank. Walter Vetter has taken a position with the First National Bank of Lake Forest. Mr. Vetter was connected with the Continental & Commercial Na tional Bank, the Fort Dearborn Nation al Bank, and the Northern Trust Com pany for over 13 years. He has, there fore, a wide banking experience which will serve him well in his new connec tion. * 1 fH E t e s t e v i d e n c e o f t k e s a t is - fa ction d e riv e our from tan k er cu stom ers t k e ir c o n n e c t i o n w it k u s lie s in t k e s t e a d y g r o w t k o f t k e a c c o u n t s t k e y k e e p w it k u s . Y o u , t o o , c a n p r o fit t k r o u g k a con n e c t i o n w itk tk is s t r o n g , p r o g r e s s i v e Ladoga State Ba nk Is No w Open. The newly organized Ladoga State Bank is now open for business. James S. Albin is cashier. The new bank occupies the old home of the Citizens’ State Bank. The directors are Frank Davis, John M. Myers, Homer F. Graybill of Lado ga, James I. Randel, Fred L. O’Hare, Conrad C. Gautier and Fred Lucas of Greencastle. Officers are: President, Fred L. O’Hare; vice president, Homer F. Graybill; cashier, James S'. Albin. The new bank is capitalized at $25,000 with a paid-in surplus of $5,000. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis in s t itu tio n . THE STOCKYARDS NATIONALBANK THE STOCK YARDS TRUST&SAVINGS B AN K C H IC A G O 4150 SOUTH HALSTED STREET Mid-Continent Banker 68 J. M. Strong, Form e r Missourian, Heads Asheville Clearing House. J. M. Strong, former state bank ex aminer in Missouri, and now vice-presi dent of the Wachovia Bank and Trust Company, of Asheville, has been elected president of the Asheville Clearing House Association. Mr. Strong was born and raised at Jackson, Missouri. In a recent interview in the Asheville Citizen, Mr. Strong predicted a large business increase in his city this spring and added that general business throughout western North Carolina dur ing this year will surpass the records of 1926. ______ Nig hting ale Is Cashier G ilm an St ate and Savings Bank. W. R. Nightingale, of Watseka, has been made cashier of the Gilman State and Savings Bank, Gilman, 111. The controlling interest in the bank, held by J. N. and S. J. Yanderpoorten, has been bought by A. A. Grant, E. W. Myer, William Classen and Mr. Nightingale. Other stockholders in the bank are J. G. Holch and William Haubacb. County Bankers Elect Officers. John McCormick of Danville was elected president, James A. Foster of Ridgefarm vice-president, and Stanley Mires of Danville secretary and treas urer of the Vermillion County Bankers Association at the annual election of officers held with a banquet at the Ho tel Wolford. The usual business meet THE FOREMAN BANKS F O U N D E D 1862 W e invite you r business on a 65-year record o f con tin u ou s growth* W e are fully equipped to serve you in every banking function. The Foreman National Bank The Foreman Trust and Savings Bank La Salle and Washington Sts. Chicago Resources Exceed 100 Million Dollars https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ing was held in conjunction with the election and banquet, many important questions being discussed. A total of 180 bankers, representing nearly every bank in the county, were present. Plans were discussed during the evening for the Illinois Bankers Association’s annual convention which is to be held in Danville June 23 and 24. It is planned to entertain at least a thousand delegates here at that time. T. R. Storm Elected Cashier Gays Bank. At a meeting of the directors of the Farmers State Bank of Gays, Mack Gammill, who conducts an extensive and successful general store, resigned as cashier because he felt that the store needs his personal service, and in his place T. R. Storm was elected cashier and Mack Gammill, the retiring cashier, was elected assistant cashier. Mr. Gammill expects to put in part of his time at the bank each day in a su pervisory way. Ed Storm is the presi dent. First Na tional, of Columbia, Makes Fine Statement, The First National Bank, of Co lumbia, 111., now has deposits of $969,537 and resources of $1,120,322. Officers are Charles Schuler, president; E. A. Weinel, vice-president; H. N. Kunz, cashier; E. H. Burcker and R. C. Kunz, assistant cashiers. F irst Na tional, of G ra nville, In N e w Bank Building. The First National Bank, of Gran ville, Granville, 111., is now at home in a fine new building built of sawed Bed ford stone and red brick. J. G. Pletsch is president of the bank; J. H. Buhn, vice-president; E. J. Buhn, cashier; J. W. Hopkins and H. B. Anderson, as sistant cashiers. The bank has re sources of $746,841 and deposits of $650,772. W es te rn Springs State Has N e w Building. The Western Springs State Bank, Western Springs, 111., opened its new home to the public a short time ago, at which time a large crowd was at hand during the entire day. H a vana Bank Issued $50,000 T ru s t Charter. A charter for a trust department has been issued by the state of Illinois to the Mason county bank at Havana. The charter was issued on deposit of $50,000 in Liberty bonds for correct transaction of business under the trust charter. St. Louis, April, 1927 69 B. F. Chestnut Heads M id d le tow n Bank. N a tha n A. Petrie, 84, president of the Ashton State bank, pioneer financier of B. F. Marbold, former president of the community, died recently. the Marbold State Bank of Middletown, having recently sold all his holdings in S. P. Tomasco who has been assistant the bank to members of the board of cashier of the Madison Square State directors, tendered his resignation upon Savings Bank of Chicago, now known the completion of the transaction. as the Madison State Bank, has been Vice-President B. F. Chestnut is now elected cashier. acting in the capacity of the former president. The Board of directors state Al C. Smith who for the past eleven the name of the bank will be changed years has been cashier of the First Na and while no name has been definitely tional Bank of Marengo, 111., has re decided upon at this time it is quite signed to become vice-president of the likely it will be “ Middletown State American National Bank at Woodstock. Bank.’’ --------N e w Bank at Fox R iv e r Grove. Ralph McHenry County now has a new bank at Fox River Grove. It is housed in a new building, modern in every par ticular, finished, and only awaiting thorough drying and setting of the thick masonry enclosing the up-to-date safe deposit vaults, for experts to in stall the time locks and other delicate mechanism necessary in the equip ment of a modern banking institution. W e lc h, assistant cashier of the Kane State Bank, has been appoint ed assistant cashier in a bank at Woodriver. Mr. Welch is widely known in Masonic circles as the youngest Wor shipful Master in the state, being Mas ter of Kane lodge. T h e recent s tatem en t of condition of the American Bank & Trust Company of Danville, Illinois, shows total re sources of $1,162,247, with deposits of more than $815,726. A. M. Bushnell is president of the bank and James A. Foster is cashier. The recent sta tem ent of condition of the Palmer National Bank of Danville, Ilinois, shows total resources of more than $2,697,682, with deposits of $1, 836,772. M. J. Wolford, one of the old est bankers in Illinois, is president of the bank. J. E. Walker is cashier and C. A. White, assistant cashier. Garfield P a rk State Plans Ne w Building. Work will start soon on new Garfield Park State Savings bank on West Mad ison street, Chicago. PE RSO N A L NOTES OF ILLIN O IS B A N K E R S Paul Eiche, president of the State Bank of Commerce of Effingham, has returned from a three weeks’ vacation in Alabama, Louisiana, Tennessee and Mississippi. R. T. Hicks, cashier of the F ir s t N a tional Bank of Pittsfield, has a unique record in the fact that in his 62 years connection with that institution he has missed but two of its annual meetings. He is now 77, and is still active as cashier of that bank, a position he has held since 1865. George N. World-wide Banking Service Through more than fifty years of constant growth and thou sands of direct business connections established both here and abroad, the Illinois Merchants Trust Company has built a service for importers, exporters, banks, travelers, and inves tors, which is truly world-wide in character. The resources of this bank are large; its organization is well-developed; its facilities highly-specialized and its board of directors com posed of leaders in every branch of commerce and industry. Your inquiries concerning our services and our ability to meet your banking needs are cordially invited. Machen, president of the Commercial State Bank of Savanna, died at his home in that city, following an illness of two years. He has been connected with the bank since its or ganization. H. C. McC aughan, native Sparta n, Illin o is M erchants Trust Co m pan y was recently elected vice-president of the Erie Trust Company of Erie, Pa. M artin Rehn is the new cashier up at the Opheim bank. J. C. Clyman, who has been there the last three or four years, has gone to Letts, Iowa, to take charge of a bank. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Capital & Surplus LA SALLE, JACK SO N , CLARK 45 AND ^Million Dollars Q U IN C Y STREETS > C H IC A G O Mid-Continent Banker 70 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IL L IN O IS GROUP M E E T IN G F irs t W eek SCHEDULE Group M ay M ay M ay M ay Miay 6— B a r r y ............................................ 17— L itch field ...................................... 18— M u rph ysboro .............................. 19— Mt. V ern on .................................. 20— C’a s e y ............................................ M ay M ay M ay M ay M ay 23—-Dixon ............................................ 24— K e w a n ee ............. 25— P e o ria ........ 26— P o n tia c ............................. 27— W o o d s to c k .................................. Second 8 7 10 9 6 W eek 3 1 2 5 4 Marion Banks Have Night Ses sion for School Students The banks of Marion, Illinois, lend valuable assistance to the high school in their city by co-operation with the teaching staff in the school’s commer cial department. Once each year the classes from this department hold a night session in one of the city’s banks and the bank force demonstrates prac tical banking to the students. The stu dents are initiated into the mysteries of checks, drafts, deposits, notes, mortgages, acceptances, correspondent banks, collections, etc., in addition to being made more or less familiar with bank equipment and routine. The banks as well as the students anticipate with much pleasure these annual classes and the banks really learn about as much as the students, anyway the enthusiasm of the students is infectious and the banks always feel as though many new banking friends are made each year. W. D. Kitchell Has Vacation Trip Through Southwest W. D. Kitchell of Danvers, secretary of Group Five of the I. B'. A., is making an automobile trip through the South west, and writes from Texas as fol lows: “From San Antonio south they are shipping car after car of cabbage, beets and spinach, and in a short time onions will be ready. The country is beautiful with wild flowers of all kinds, with the state flower, Bluebonnet, in the lead. The fields are literally cov ered with them. Everything points to a very prosperous year for this section of the country. Plenty of rainfall for the early truck crops and the cotton is mostly up and doing well and plenty of grass for the cattle. Have been spending most of my time since I ar rived hunting jack rabbits and coyotes with dogs and an automobile at night and fishing in the day time. Will be back on the job in another two weeks and will be able to give you some bank ing news then. Thanks for the lunch.” Our estimate of a character always depends much on the manner in which that character affects our own interest and passions.—Macaulay. 71 St. Louis, April, 1927 Flies from St. Louis to Ziegler to Prevent Bank Run 40% / = In te re st is an extremely high rate of i nt e r e s t , in fact you must gamble or speculate before you can get that rate of interest. But, many men have, during the past month, shown a keen— Interest In Our Bank plan, whereby bank employes can increase their incomes, after banking hours, by writing insur ance. First National Bank in St. Louis sending $200,000 by plane to one of its correspondents, the First National Bank of Ziegler, Illinois, to avert run on the bank caused by false rumor. M r. R. Palmer M cE lro y, assistant vice-president (with goggles), made the trip with the pilot. A run on the First National Bank of Ziegler, Illinois, caused by false rumors that a former employe had defaulted, stopped when $200,000 in cash reserves were rushed from St. Louis by airplane'. With two sacks full of greenbacks, R. Palmer McElroy, assistant vice-presi dent of the First National Bank in St. Louis, made the flight of 120 miles in an hour and ten minutes, with Philip R. Love, mail pilot employed by the Rob ertson Aircraft Corporation. The re turn trip was made in fifty mnutes. McElroy and Love arrived in Ziegler at 11:30 in the morning, and were met by President F. Guy Hitt and other officials of the bank and an armored car to escort the cash to the bank. There it. was heaped up before the eyes of depositors who had lined up to with draw their money, doing much to re store confidence in the strength of the institution. By 4 o’clock the “run” had subsided. You may not know my supreme hap piness at having one on earth whom I can call friend.—Lamb. Deposits which you are now making in your bank can be increased by your extra earnings, in the form of commission Checks sent to you from the Home Office of the— ABRAHAM LINCOLN LIFE INSURANCE COMPANY (Formerly Named Mutual Life of Illinois) H. B. H IL L , President H o m e O ffic e A R oyal W elco m e A w aits You A b r a h a m L in coln Life Insu ran ce C o m p a n y Sp ringfield, Illin o is T he R o g e rs P ark H otel is 22 m inutes rem ov ed from the dirt and din o f “ d o w n to w n ” C hicago. In the hea rt o f the beau tifu l N orth S hore D istrict, on on e o f the w o rld ’ s m ost fa m ou s bou levard s, it offers your L igh t, a iry ou tsid e suites o f 1, 2, 3 and 4 room s (m a n y w ith k itch e n s) — th e co m fo rts and refinem ents th at assu re ab solu te g u e s t -s a tis fa ctio n . S ervice at the R o g e rs P ark is effi cien t, in tellig en tly rendered and u n ob tru siv e, in k eep in g w ith the sp len did repu ta tion th at this h otel e n joy s. D in in g -room g oodn ess. of N A M E --------- ------------------------------ B A N K __________________________ A ttr a c tiv e ly low rates prevail. S ingle room s as low as $3.CO per d a y ; tw o room k itch en ettes, fo r tw o p e o ple, $5.00 and up. T O W N --------------------------------------- Write or wire for further information. Sheridan Road and Pratt Bind. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis are K in d ly send me details o f you r plan fo r bank, em ployes. sav ory ROGERS PARK HOTEL C H IC A G O , IL L IN O IS m eals S p r in g fie ld , Illin o is F. M . F E F F E R Vice-President and Agency Director S en d fo r beautifully illus trated booklet showing map o f Chicago’s fa m ou s Park and Boulevard S ystem , loca tion o f G olf L in k s, points o f interest and how ro reach them. Clip This Coupon M id-Continent Banker 72 W. B. Crawford Is President West Frankfort Bank BANK ENVELOPES W e sp e c ia liz e o n h ig h g r a d e K r a f t a n d L e a th e r o id e n v e lo p e s f o r B a n k s and In v e stm e n t H o u se s. W e in v ite y o u r in q u irie s f o r e n v e lo p e s o f a ll k in d s , in c lu d in g e v e r y th in g f r o m s m a ll p a s s b o o k ja c k e ts t o th e la r g e r s iz e e n v e lo p e s f o r m a ilin g o r filin g . Quality Park Envelope Co. M id w a y S t. P a u l, M in n . I "Again—-Thank Mutual confidence increases with each new op p ortu n ity to serve, steadily strengthening the bond of friendship be tween this Bank and the many fine in stitutions for which it has acted as Chicago correspondent throughout ten, twenty, and even thirty years or longer. 1869 1927 § H ar r y A . W heeler President Frederick H. R aw son C ha irm a n of the Board C raig B . H azlew ood V ice-President U N IO N TRU ST COMPANY CH ICAG O I C o m p le te P r iv a te W ir e S e rv ic e — D i r e c t B, L and C o lle c tio n F a c ilitie B a n k e r s S a fe ty E n v e lo p e s ENVELOPES FOR B A N K S HECO ENVELOPE COMPANY HECO ENVELOPE COMPANY C h i c a g o , 111. C h ic a g o , Illin o is https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W. B. Crawford, president of the Illi nois Bankers Association, has been made president of his own institution, the West Frankfort Bank and Trust Company, following five years’ service as vice-president. Mr. Crawford joined the bank in 1916 as cashier, after many years in busi ness. At that time the bank had re sources of $150,000, while today they are $1,300,000. Commencing in 1917 as secretary of Group Ten, Mr. Crawford has been ac tive in affairs of the Illinois Bankers Association throughout his entire bank ing career. He was vice chairman, then chairman of his group, and served on the executive council of the state asso ciation from 1919 to 1922. In 1925 he was elected vice-president of the I. B. A. and at the 1926 convention was ad vanced to the presidency. He served as chairman of the Protective Commit tee 1924 and 1925, during which time detailed plans were worked out for the statewide “home guard” and protective system which has proven so effective. Mr. Crawford organized and is presi dent of the West Frankfort FinanceCompany. He is secretary-treasurer of the Pyramid Coal Corporation owning and operating mines at Marion and Pinckney ville; is president of the West Frankfort Mercantile Company and president of the West Frankfort Build ing and Loan Association, one of the largest and strongest loan institutions in Southern Illinois. Following the disastrous tornado of March 18, 1925, which perpetrated one of the darkest pages in the history of the city, taking a toll of 142 lives and property losses running into the mil lions, Mr. Crawford was instrumental in the organization and was elected chairman of the Franklin County Relief Association, through which body and under whose directions the American Red Cross later expended more than a million dollars in rehabilitation and re lief work. The West Frankfort Rotary Club, which now has fifty-four members, was organized by Mr. Crawford in 1922 and he served as its first president. He was also instrumental in the organization and establishment of the Franklin County Country Culb. It was Mr. Crawford’s privilege to render his city valuable service recent ly when he was named as a member of a citizens’ finance committee to work out a solution to the financial situation and restore the city to good graces with the financial interests. Within less than a year the committee, through theapplication of practical business meth- St. Louis, April, 1927 ods, had reduced the municipal debt by $100,000 and greatly relieved the em barrassed situation in which the city administration had found itself, with a half million dollar water proposition under consideration. Mr. Crawford is a 32nd Degree Mason, Shriner and a member of other fra ternal orders, a member of the First Christian Church. 73 at Charleston, Miss., and in 1925 or ganized the Peoples Bank & Trust Co. of Dyersburg, Tenn., and was its active vice-president. Mr. Parrish has been active in civic organizations, having organized several Rotary Clubs, and was first president of the Charleston, Miss., and the Dyers burg, Tenn., clubs. He has moved his family to Pana, and took charge of his office on April 1. Ernest L. White is president of the Pana Bank, and J. A. Werner is cashier. T h e State Ba nk & T ru s t Company of Evanston, 111., is erecting a new build ing at Orrington avenue and Davis street. Group Nine Bankers Attend Chicago Meeting S. J. Gee, president of the Farmers State Bank of Lawrenceville, and chair man of Group Nine; Henry Eversman, vice-president and cashier of the Effing ham State Bank, and secretary of Group Nine; P. S. Abt, vice-president of the Southern Illinois National Bank of East St. Louis, and member at large of ad ministrative committee, attended the meeting of the administrative commit tee of the Illinois Bankers Association, which was held at Chicago, Wednesday, March 16. THE Established 1856 NATIONAL PARK of NEW YORK BANK 214 B R O A D W A Y Uptown Offices: P a rk A v e n u e and 4 6 t h S treet— S ev en th A v e n u e an d 3 2 n d S treet D IR E C T O R S Charles S crib n er R ichard D elafield F rancis R . A p pleton C ornelius V an d erb ilt G ilbert G. T h orn e T h om as F. V ie to r C. B. Parrish Now With Pana National Bank John G. M ilburn W illia m V in cen t A s to r Josep h D. O liver L e w is C ass L edyard , Jr. D avid M. G ood rich E u gen iu s H . O u terbridge K en n eth P. B ud d John H. F u lton F ra n k L». P olk B en jam in J oy G eorg e M. M offett Banking in all its branches Commercial and Travelers’ Credit issued. Correspondents in all principal Cities in the World. Foreign Exchange bought and sold. Corporate and Personal Trusts; Safekeeping of Securities; Collec tion of Income. Investment Service for Customers. Safes in our Safe Deposit Vaults at moderate rental. C. B. Parrish, of Dyersburg, Tenn., has been elected active vice-president of the Pana National Bank at Pana, 111. Mr. Parrish for several years was cashier of the Tallahatchie Home Bank, Capital, Surplus and Undivided Profits $34,000,000 READ THE Correspondent banks find us dependable and experi enced in the transaction of their business. EVERY M ONTH Conveniently Located Firmly Established Thoroughly Experienced THE NORTHERN TRUST COMPANY Capital, Surplus and Undivided Profits Over $7,500,000 N orthw est Corner LaSalle and M onroe Sts. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C H IC A G O Y o u W ill F in d : — — — — N ew s o f Banks and Bankers. Legal Decisions and Free Legal Service. Investm ent New s. Successful plans for increasing deposits, ad vertising your bank, co-operating with the farmer and creating public good will. — Discussions of Bank Problems b y practical bankers. (This Coupon Brings Your First Issue ) M ID-CONTINENT BANKER 408 Olive Street, St. Louis, Mo. Date............................ Please enter my subscription for one year (12 issues) for which I will remit $3 upon receipt of your bill. Officer................................................................................................................... B a n k ..................................................................................................................... C i t y ................................................................ S ta te ........................................... Mid-Continent Banker 74 IN D IA N A “ ROLL of HONOR” BANKS IN ILLINOIS It is an honor to be listed am o n g the H o n o r R o ll B an ks of Illinois. It indicates that the bank has Surplus and U ndivided Profits equal to or greater than its cap ital! Such distinction is accorded to the banks listed on this page. B y careful banking and sound m an agem en t th ey have achieved this enviable position. T h ese banks w ill be especially glad to handle any collections, special credit reports or other business in their com m unities which you m a y entrust to them . C orrespondence is invited. C ity A b in g to n ......... .... First B ank Capital N a tio n a l........................ A lex a n d er______A lexan d er $ 75.000 Surplus and Profits $ 175,000 S t a t e ........................ 25.000 50.000 A ssu m p tio n ....... Illinois State.................................. 25.000 65.000 B eard sto w n ____ F irst S t a t e .................................... 100,000 180,000 B erw ick .......... ..... F arm ers S t a t e .... ........................ 30.000 35.000 B lo o m in g to n ..... A m erican S t a t e .......................... 336.000 B lo o m in g to n ..... Corn B elt S tate........................... 100,000 100,000 C anton.................. C anton N a tio n a l........................ 125.000 175.000 C hapin..................Chapin S tate.................................. 25.000 56.000 500.000 670.000 C h icago............... C ont. & C om . T r . & S v g ...... 5,000,000 11.377.000 C h icago............... D rovers T r . and S v g ................ 250,000 517.000 C h icago............... F irst T r . and S v g ........................ 6,250,000 10.534.000 C h icago............... .First N a tio n a l............................. 12,500,000 17.956.000 C h icago............... F orem an N a tio n a l...................... 4,000,000 4.588.000 Chicago...-........... H arris T r . and S v g ................... 3,000,000 4.874.000 M e r c h a n ts ................... 15,000,000 35.231.000 C h icago......... ...... N orthern T r u st C o .................. 2,000,000 5.347.000 C hicago...............State B an k of C h icago.......... 2,500,000 6.563.000 C h ica g o ...............U n ion T ru st C o m p a n y .......... 3,000,000 3.923.000 D e K a lb .............. F irst N a tio n a l.............................. 100,000 160.000 D ix o n ................... C ity N a tio n a l................................ 100,000 200,000 Flora.....................First N a tio n a l............................... 50,000 75.000 Freeport............. First N a tio n a l............................... 150,000 430.000 Grand R id g e.....F irst N a tio n a l............................... 25,000 33.000 S tate.............................. 25,000 30.000 Joliet..................... F irst N a tio n a l.............................. 400,000 600.000 Joliet.....................Joliet N a tio n a l.............................. 150,000 650.000 Greenfield.......... Farm ers Joliet.....................Joliet T r u st and S avin gs Bank. 100,000 119,633 L a Salle.... ............L a Salle N ation al B an k ......... 200,000 330.000 M u rp h ysb o ro .... C ity N ational ............................. 50,000 62.000 125,000 200.000 M t. V e rn o n .......T h ird N ation al .......................... N e w A th e n s___ State B ank of N e w A th e n s 25,000 45.000 R u sh ville............ R u sh ville S t a t e ............................ 100,000 105,000 T isk ilw a ........ ...... F irst S t a t e ..... . ......................... 25,000 30.000 U rban a................ F irst N a tio n a l................. 50.000 60.000 W a r r e n ................State 75,000 95.000 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B an k .......... ........................... M E E T IN G The following schedule for the spring group meetings of the In diana Bankers Association has been agreed upon: F irst We ek. May 23, Monday—Group 4—Indi anapolis. May 24, Tuesday — Group 5 — Crawfordsville. May 26, Thursday — Group 7 — West Baden. May 27, Friday—Group 8—Wash ington. Second W eek. ---------------------Group 3—Anderson June 1, Wednesday—Group 6— Newcastle. June 2, Thursday — Group 2 — Bluffton. June 3, Friday—Group 1—Indiana Harbor—East Chicago. State convention of the Indiana Bankers Association will be held at the Claypool Hotel, Indian apolis, September 21 and 22, 1927. 255.000 C h ica g o ................ Central M fg . D istrict.............. C h icago....... ........ Illinois GROUP DATES ANNO UNCED. W illia m L. B arn ha rt, 71 years; of age, vice-president of the Exchange Bank at Churubusco, Ind., died No vember 25th. The Citizens Bank, Pekin, Ind., has been organized with capital of $25,000.00. Pleasant Nale is president and J. W. Hiestand cashier. Charles M. Durham , cashier of the Whiteland National Bank, Whiteland, Ind., is dead. Charles W. Smalley, vice-president of the Continental National Bank, In dianapolis, Ind., died recently. Silas E. Benham has been elected president of the Union State Bank of Crothersville, Ind., to succeed S. G. Bovard, who resigned. The last state ment of the A m eric an National Bank, Rushville, Ind., shows total resources of $1,063,995.14 and de posits of $848,959.84. T he Kokomo T ru s t Company, Koko mo, Ind., has total resources of over $2,000,000.00 with deposits of $1,341,462.00, according to their statement of December 31st. St. Louis, April, 1927 to ing the day, and Frank Owens, presi dent of the bank, reported that through the larger quarters and the increased interest of the public, the bank will soon be able to take in several new departments. Indiana H . C . Rothert President O F F IC E R S I N D I A N A B A N K E R S A S S O C I A T I O N : H ugo C. Rothers, H untingburg, President; C. O. H olm es, Gary, Vice-P resident; Forba M cDaniel, Indianapolis, Secretary; Jos. W. Springer, Elizabethtown, Treasurer; Jones, H am m ond & Buschmann, Indian apolis, Counsel. GROUP C H A IR M E N : I — Rollo N. W alter, L aG ran ge; I I — J. G. W allick, E lk hart; I I I — E. S. Goodrich, W in chester; I V — F. D . Thom pson, Edin bu rg; V — C. C. Newlin, Terre H aute; Forba M cDaniel, V I— W alter Hungerford, Shelbyville ; Secretary V I I — W . M . W e lls , Scottsburg; V I I I — A . J. W edeking, Dale. Samuel P. McCrea, president T h e City T ru s t Company, Ne w Bank A t Ladoga. A charter has been granted to the Ladoga State Bank, Ladoga, Ind., with capital of $25,000.00. The new bank re places the State Bank of Ladoga, which was closed a short time ago. F. L. O’Hare is president; Homer Graybill, vice-president, and James S. Albin, cash ier. Company, Kokomo, Ind., in its new quarters in the former Kokomo Trust Company Building. Toys and marbles were given to the children, carnations to the ladies and souvenirs to the meh. Many new accounts were opened dur Win field Fleming, 83, president of the West Lebanon Farmers Bank, Lebanon, Ind., died recently. West The Best Bank for Y oit Is o n e s e r v i n g th o s e e n g a g e d in t h e active b u sin e ss life o f th e c o m m u n ity . T h i s is d eter m in e d b y th e v o lu m e o f cle a rin g s h a n d le d . T h e A m e r ic a n e x c e ls in cle a r in g s, h a n d l i n g n e arly fifty p e r c e n t o f N a s h v ille ’s to ta l, an d o n a b asis o f a c tiv e se rv ice t o th e c o m m u n ity , in v ite s y o u r b u sin e ss. gAnother reason why you should bank here New Bank A t Sheridan. The Sheridan National Bank of Sher idan, Indiana, has been organized to succeed the First National Bank of Sheridan. The capital stock of the new institution is $40,000.00 and the sur plus is $8,000.00. Philip Hare has been elected president. L afayette, Ind., has been chartered to take over the City National Bank of Lafayette. In Nashville— L. G. W ild Heads N e w Indianapolis Bank. Leonard G. Wild, formerly of Ander son, Ind., and for many years associ ated with J. F. Wild & Company Bank at Indianapolis, is president of the new financial institutions, the Inland Bank and Trust Company and the In land Investment Company of Indianap olis. The companies have a capitali zation of $250,000.00. of the Farmers National Bank, Shelbyville, Ind., for thirty years and prominently associated with the business life of the city, died recently. " A Greater Banfi; fo r Greater N ashville” A B anks m erican S S ' “ 1 N A S M V IL L E S S L . ; _____ '-America nrNnfiorini T Company (AFFILIATED) X V ‘ ..... T A. J. Thu rs ton Heads Sh elbyville Bank. Arthur J. Thurston has been elected president of the Farmers National Bank, Shelbyville, Ind., to succeed the late Samuel P. McCrea, who served as head of the bank for twenty-five years. C. V. Crockett, formerly cashier, has been elected vice-president and cash ier. Mr. Thurston was one of the organ izers of the Farmers National Bank and has been active in the affairs of the institution since it was started. He is seventy-nine years old and has re sided in Shelbyville practically his en tire life. Kokomo Bank Has N e w Quarters. More than 7,000 people attended the grand opening of the American Trust https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CÌ1BCJS3 « L E T rS iiH M IS yA nn im r s s ts r iia s i i ■A : A A b ility - D epen dability Quality « Service Four great principles on which we stand Mid-Continent Banker 76 K entucky Notes M cN e ill Now W it h Federal Land Bank. W. A. McNeill, manager of the farm department of the Fidelity & Columbia Trust Company, Louisville, Ky., has resigned to accept a position with the Federal Land Bank of Louisville. Prior to going with the Fidelity and Columbia Trust Company a year ago, Mr. Mc Neill was connected with the Farm Loan Bureau of Washington. T w o Latonia Banks Consolidate. The First National Bank of Latonia, Ky., and the Latonia Deposit Bank have been consolidated and in the future will be operated as the First Latonia Bank & Trust Company. The new bank is capitalized at $60,000, and has surplus and undivided profits of nearly $100,000. Deposits are in excess of $1,250,000. T w o Mayfield Banks Consolidate. The City National Bank and the First National Bank of Mayfield, Ky., have been merged, under the name of the First National B'ank, with capital and surplus of over a million dollars. Resources of the bank are in excess of four million dollars. Ed Gardner, formerly president of the First National Bank, is president of the consolidated institution; T. P. Smith, president of the City National Bank, is vice-president and trust officer, 'and C. C. Wyatt, cashier of the First Na tional Bank, is cashier of the new bank. T he State Bank and T ru s t Company, Dayton, Ky., has been chartered with capital of $50,000. The E rla n g e r Deposit Bank and the Citizens Bank of Covington, Ky., have been merged under the name of the Erlanger Citizens Bank, with capital of $100,000. F ra n k A. Allen, 77 years old, retired president of the Exchange Sharpsburg, Ky., died recently. Bank, T h e Campbell County Bank, Bellevue, Ky., has increased its capital from $25,000 to $75,000. Errol W . Pace has resigned as assist ant cashier of the Bank of Murray, Ky. The Gua ranty Bank & T ru s t Com pany, Lexington, Ky., has organized a n flT r i Serving the Fourth Generation bond department under the direction of James E. Denman. A. V. C. Grant, president of the First National Bank of Ludlow, Ky., died re cently. Lawson Reno.. chairman of Charles H. James Resigns as Vice-President Charles H. James has retired as vicepresident of the First National Bank of Philadelphia after a service covering a period of forty-two years. He entered the bank in a clerical capacity in 1885, was elected assistant cashier in 1892, and vice president in 1920. Mr. James’ special hobby is to travel in foreign countries. In recent years he has devoted considerable time to two trips around the world, from East to West and from North to South, visit ing practically all the nations of the world, as far north as North Cape, and as far south as Australia and New Zealand. At the present time he is in the Hawaiian Islands. EMDIDE HU IL L LlYlilKL M . P. M U R TH A , Broadw ayat Six‘y-Third Street NEW YORK CITY G en era l M an ager A complete up-to-theminute bank, offering every modern banking service L IB E R T Y INSURANCE BANK L O U I S V IL L E The NEW fourteen-story fireproof structure containing every modern convenience and “ Servidor” service iR o o m , private toilet - - $2.50 R A T E S : < Single R oom with bath - 3.50 (D ouble Room with bath - 5.00 The location is unique: Subway, elevated, street cars, buses, all at the door R E S O U R C E S O V E R $ 2 8 ,0 0 0 ,0 0 0 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the board of directors of the Central Trust Company of Owensboro, Ky., died re cently. Finest parking space in the city 77 ¡St. Louis, April, 1927 Tennessee Notes Salem Bank Has Splendid Grow th. T h e F ir st State Bank & T ru s t Com Edw in Bird Wilson, Incorporated, has pany, Collierville, Tenn., has changed its name to the Citizens Bank. been appointed advertising agent for Union National Bank of Knoxville, Tenn. John H. Raines has been elected vice- At the recent annual meeting of the First National Bank of Selmer, Ten nessee, J. L. Alexander was elected president; A. L. Smith, vice-president; P- L. Basinger, cashier, and W. L. Weatherly and Aubrey E. Davis, as sistant cashiers. The bank declared its regular dividend of 10 per cent and an extra dividend of 10 per cent in ad dition to adding nearly 10 per cent to the undivided profits account. Total resources of the bank are now consid erably more than a half million dollars. Resources have almost doubled in the past two years. Cleveland Bank Has Ne w Building. president of the Merchants Bank, Humboldt, Tenn. State Charles F. F arnsw orth, vice-president of the First National Bank, Memphis, Tenn., for the past ten years, has re signed. Sam. L. Barg er has been elected as sistant cashier of the Bank of Hollow Rock, Tenn. T. W . Vin to n has been appointed trust officer and James L. Ross, assistant trust officer of the Bank of Commerce & Trust Company, Memphis, Tenn. J. R. Craig has been elected assistant cashier of the First National Memphis. Charles B. M ara ble has C. W. Thompson has The new C ity Savings Bank, C. B. Ro w le tt and K. Complete Investment Service Especial Attention Given Investment Accounts of Country Banks and their Clients. We Invite inquiries by wire at our expense. ident of the Gates Banking & Trust Company, Gates, Tenn., succeeding R. J. Moore. T he B a rre tts v ille Bank & T ru s t Com pany, Barrettsville, Tenn., has amended its charter, increasing its capital stock from $15,000 to $30,000. J. S. Falls, form er cashier of the Arlington Bank & Trust Company, Ar lington, Tenn., has been elected pres ident of the bank. His son, John H. Falls, has been elected cashier. T h e F irst Na tional Bank, Big Sandy, Tenn., has applied for a charter, with capital of $25,000.00. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Ja m e s elected B. Monypeny have been elected assistant cashiers of the Second National Bank, Jackson, Tenn. Mem J. W . Pearson has been elected pres been vice-president of the Fidelity Bank & Trust Company, Memphis, Tennessee. T w o Johnson City Banks are Merged. phis, Tenn., has completed its organiaztion with the election of William White as president; L. G. Van Ness, vice-president, and Eldridge Armistead, cashier. succeeded Eric Rauscher as cashier of the Bank of Erin, Tenn. Mr. Rauscher had been cashier of the bank for the past twen ty-five years. The formal opening of the new home of the Cleveland Bank & Trust Co., Cleveland, Tenn., will be held April 5th. The building, together with the equipment, cost approximately $50,000. The Franklin State Bank and the Guaranty Bank & Trust Company, John son City, Tenn., have been merged under the name of the Franklin Guar anty Bank. F. L. Wallace is president of the consolidated institution, which is capitalized at $65,000.00; George W. Keys is vice-president; Bruce A. Lacy, cashier, and R. V. Wills, assistant cash ier. Bank. C.W i l l s o n & Co. 4 0 7 M A R IO N E .T A Y L O R BLDGL C U IS V IL L E ^ K E N T U C K Y 78 Mid-Continent Banker Oklahoma What Do You Want? —tell us and we will help you find it. W e have created this new classified ad department as a free service to subscribers. If you have something to buy or something to sell, or if you want anything, you can make it known to the bankers in the Mid-Continent territory without cost. If you are not a sub scriber, your check for $3 will pay for a year’s subscription and entitle you to free use of the want ad columns. P o s itio n W a n te d b y assista n t cash ier w h o d esires better o p p o r tu n ity fo r a d van cem en t. T w e n ty eigh t y e a rs o f age. P our years’ ex p e rie n ce as assista n t cash ier. B est of referen ces. A d d ress V. B. M ., The M id -C on tin en t B an ker— 7. Bank fo r S a le : Sm all inland town, S outhern Illinois, 600 p op u la tion. C apital stock , $15,000. S u r plus, $9,000. U ndivided p rofits w ill be $4,000 b y M arch 1st. D ep osits and loan s a v e ra g e aroun d $60,000. N et earnin gs last y e a r w e re 20%. C ashier’ s salary, $2,400 per year. Small bank, but a m on ey m aker. Good reason s fo r sale. N ew m a n agem ent can in cre a se bu siness. A ll paper gua ra n teed. P rice, $200 per share, cash. I f size, tow n, bank, location and p ric e d o n ’ t interest, please do n ot m ak e inquiries, as these details should be enou gli in form ation fo r p a rty w an tin g to bu y a bank. A d d re ss N o. 1000, ca re M id-C on tin ent B anker. P o s itio n W a n te d as assista n t cash ier in m ediu m size bank by y o u n g m an tw e n ty -e ig h t y e a rs old. C ollege gradu ate, fo u r y e a rs b a n k in g experien ce. A lso enrolled w ith th e L aS alle E x te n sio n U niversity, C hicago, in L aw . A d d re ss V -12, M. C. B .— 7 . ---------S t u d e n t o f F i n a n c e w ish e s c o n n e ctio n in St. L ou is. T w e n ty -fo u r years o f a g e ; grad u ate o f A m e r i can In stitu te o f B an k in g and A c c re d ite d H ig h S chool. P o u r y ears o f resp on sibility a s a ssista n t c a s h ier o f N ational ba n k; g o o d c o r resp on d en t; in terested in cred its. H a s studied a c c o u n ta n c y ; n o w e m ployed. A d d ress S. G. M ., c a r e M id -C on tin en t B an ker— 7. B a n k C on tro l W a n te d : C ountry ba n ker d esires to p urch ase co n tro l o f g o o d bank in tow n o f n ot less than 1,000; A m e rica n com m u n ity in C entral Illinois preferred . A ll com m u n ica tion s confidential. Ad dress N o. 1011, T he M id-C on tin en t Banker. M issouri tow n o f 600 p opu lation is ba dly in need o f th e serv ices o f a g o o d m edical D octor. T o w n is loca ted five m ile s sou th o f Io w a line on paved h ig h w a y N o. 65 F e d eral er S ta te N o. 3, M issouri. G ood D o c to r can h a v e a large p ra ctice. S uitable offices available a t r e a son able rent. A d d re ss P. B. M , c a r e M id -C on tin en t B an k er— 7. P o sitio n W a n te d in ba n k by y ou n g m an. O p portu n ity fo r a d v an cem en t desired. N o b a n k in g ex perien ce bu t good business ed u cation. T w o y e a r s ’ college. Fu ture p rosp ects w ill be consid ered m ore than larg e salary to start. B est referen ces. Can invest. A d dress L. E. T., T h e M id -C on tin en t B an ker— 6. W a n te d : E x ce lle n t o p p o rtu n ity fo r ba n ker fa v o r a b ly k n ow n in M issouri, K a n sa s and O klahom a, o r all three states w ith p ro g ressiv e K a n sa s C ity bank, w ell th ou g h t o f th rou g h ou t that territory . W ou ld w an t m an ca p a b le o f org an izin g and su pervisin g co u n try bank d e p artm en t and on e able to bring con sid era b le bu siness to bank w ith him . F u tu re w ou ld depend e n tire ly upon g ro w th an d su ccess o f d e p artm ent. A d d re ss N o. 112, care T he M id -C on tin en t B an ker, 408 O live Street, St. L ouis. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B a n k e r , a g e 36, at p resen t r e ce iv in g a salary o f $230 per m on th as cash ier o f a n ation al ba n k in an Illinois tow n o f 4,000, d esires to m ake ch a n g e w h ere th ere w ill bet g re a ter op p ortu n ity fo r a d v a n c e m ent. P refers p osition in g row in g bank in a tow n o f from 5,000 to 15,000 p opulation. T ota l fo otin g s o f bank o f w h ich he is n ow cash ier h a ve in crea sed fro m $160,000 to $350,000 in p ast fou r years. B est o f refe re n ce s an d m ore detailed in form a tion fu rn ish ed on request. A d d ress A . F. B ., c - o M id -C o n ti n en t B anker. W ill con sid er sale o f $10,000 sto ck in g o o d A r k an sas bank to a c tiv e banker. B an k is tw e n ty y e a r s old and has a capital o f $50,000. D ep osits a v era g e $350,000. P a y in g dividends sin ce organ ization . Sale to c a r ry a c tiv e m an a gem en t at sa la ry o f $3,000. W o u ld e x p ect p u rch aser to tak e ov er m odern d w ellin g in tow n w ith lights, w ater, sew era g e and on p aved h igh w ay. E x cellen t sch ool; fo u r ch u rch es. A d d re ss M. J. T., c - o M id -C on tin en t B anker. A Good O p e n in g : B a n k e r , m arried, a g e 36, u n i v e r s ity gradu ate. O ver fifteen, y e a r s’ ex p erien ce in banking, th e p ast ten y e a rs as ca sh ier an d on ly a ctiv e officer o f g ood sized co u n try bank, has sold in terest in p resen t ba n k an d desires to chan ge. S plen d id r e co r d as a bu sin ess bu ilder an d g ood on cred its. P re fe rs c o u n ty seat tow n o r city . B est referen ces. C an invest. A d d re ss J. A . B ., c - o M id -C on tin en t B anker. B a n k I n t e r e s t f o r S a l e : W a n t to sell in terest ca rry in g p osition o f cash ier w ith salary o f $2,400. S tock holdings, $6,000. B an k in firstclass con d ition , good, w e ll-o r g a n ized business. C ity o f 1,200 p op u la tion, fertile fa rm in g com m u n ity. W ould n ot sell ex cep t to e x p eri enced m an. A ddress N o. 2010, care M id-C on tin en t B an ker. F o r S a l e : C on trollin g in terest in su ccessfu l N ational B ank w ith $100,000 ca p ita l and $900,000 totals. L o ca ted in g ood tow n o f 7,500 p o p ulation in g ood section o f Illinois. A ll in v estm en ts an d loan s g u a r an teed. One or tw o officia l p o s i tion s g o w ith stock . D o n ot a n sw er unless you h a ve the capital, a g e and ex p erien ce to m an a ge a g ood, g o in g bank. A d d ress I. E. S., M id -C on tin en t B an k er— 11. F i x t u r e s f o r S ale: M arble and bron ze screen su rrou n din g L ob b y , 72x20 feet. T en c a g es w ith th ir teen w ick ets and oth er equipm ent. S pecial selected E n glish vein Italian m arble. V e r y attra ctiv e. A lso several sets o f m on ey chests. A v a ila b le at on ce. R em ov a l to new bu ildin g n ecessita tes sale. In qu iries solicited . P ric e v e r y rea sonable. A d d ress C om m ercia l N a tional B ank, P eoria , 111. S a v e M o n e y — Buy T h e s e : B u r rou gh s b ook k eep in g m achine (p ra ctica lly n e w ). fla t-to p oa k desk, U n d erw ood ty p ew riter N o. 5, sw in gin g desk stand fo r typ ew riter, office chair, a W riterp ress d u p li ca tin g m ach in e w ith full equ ipm ent o f type, stand, tra ys, fu rn itu re, etc. A d d ress A. H. H icks, A lta m ont, 111.— 4. Benton S. Brooks Notes has resigned as cashier of the First National Bank, Mo Alester, Okla. T he Citizens Na tional Bank and the American National Bank, Sallisaw, Ok lahoma, have been consolidated under the name and management of the American National Bank. D. H. Marsh has succeeded M. H. Cochrane as cashier of the First State Bank of Alluwe, Oklahoma. E. C. Tea pe has retired as president of the First National Bank, Lone Wolf, Okla., and has been succeeded by S. M. Alexander. T h e Exchange Bank of Perry, Okla., has increased its capital from $25,000.00 to $35,000.00. Chester Gates has been elected cash ier of the First State Bank, Seminole, Okla. D. C. M cAlpine has succeeded Sam Morley as president of the First State Bank, Wilburton, Okla. W. L. Stephenson, who t w o months ago was named cashier of the Central National Bank, Enid, Okla., to succeed E. A. Pendarvis, has been elected a director of the bank. W ilb u r J, Hollem an has succeeded Thomas H. Owen as trust officer and general counsel for the American Na tional Bank, Oklahoma City, Oka. E. C. Tea pe has sold his interests in the First National Bank, Lone Wolf, Okla., to S. M. Alexander, cashier, who has been elected president of the bank. Dan Carte r, for the past seven years assistant cashier of the State Bank of Eufaula, Okla., has been named cashier of the bank, to succeed Ray Jordan, who has resigned to accept the cashiership of the First National Bank in Okemah. T h e Blackwell Exchange Bank, Black- well, Okla., has been chartered to suc ceed the Blackwell National Bank. Wm. H. Pauly is president; J. W. Morse, vice-president, and L. E. Troxel, cash ier. W i l l i a m Russell, for two years assis tant cashier of the Bank of Picher, Okla., has been elected cashier of the Bank of Treece, succeeding P. G. Lamb. 79 St. Louis, April, 1927 Kansas Notes F O R T IE T H A N N U A L C O N V E N T IO N KANSAS BANKERS T IO N . MANHATTAN, A S S O C IA KANSAS M A Y 18, 19, 20. Eugene O’ Keefe has accepted a posi tion as cashier of the First National Bank of Hugoton. R. B. Garnett, fo r m e rly connected w ith the Citizens State Bank of McCracken, Kansas, has purchased stock in the Farmers & Merchants Bank of Hill City, Kansas. He has been elected a director and vice-president of the bank. Geo. D. Lyon, who has been vice-pres ident of the Kansas, has idency. He resigned on National Bank of Chetopa, been promoted to the pres succeeds R. H. Muzzy, who account of ill health. James W . Chestnut, who has been as sistant cashier of the Union State Bank of Clay Center, Kansas, for a number of years, has resigned to become cash ier of the State Bank of Oak Hill, Kan sas. Donald E. Jones has been elected as sistant cashier of the Eureka Bank, Eureka, Kansas. C. C. Eaton has been elected vice- president of the State Bank of Hills dale, Kansas. J. J. Schuetz has succeeded H e nry Kneisel as vice-president of the Farm ers State Bank of Mercier, Kansas. Clyde Snapp has resigned as assis tant cashier of the Natoma State Bank, Natoma, Kansas, and has been suc ceeded by Roy Van Wie. W . A. Soller has been elected vice- president of the Washington National Bank, Washington, Kansas. Don C, Snyder and L. E. Soller are now assis tant cashiers. David W a l t e r has resigned as presi dent of the State Bank of Kingman, Kansas, because of ill health. Lew is M i ll e r has been elected assis tant cashier of the Fidelity State Bank, Independence, Kansas. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 80 Mid-Continent Banker M isso u ri B a n k N e w s O F F IC E R S M IS S O U R I B A N K E R S A S S O C I A T I O N : President, W . W . Pollock, M exico; Vice-President, Edward Buder, St. Louis ; Secretary, W . F. Keyser, Sedalia; Treasurer, E . B . Jacobs, Carthage. G R O U P C H A I R M E N : 1— W . C . Brown, M acon ; 2—O. H . M oberly, Harris; 3— G. L. W ilfley, M aryville; 4 — W . H . Erwin, U rich; 5— C. A . Eaton, St. Louis; 6 — Henry Stocks M alden 7—C . W . M ood y, Springfield; 8 — W . H . W aters, Jr., Jasper. G R O U P S E C R E T A R I E S : 1—Gus Delaney, Hurdland; 2— W . E . T odd Brookfield; 3— R . W . H olt, Craig; 4 —F. W . Pendleton, Independence; 5— A. A. Speer, Jefferson C ity; 6 — G . U . Shelby, Charleston; 7— C . H . W hite, Seym our; 8 —E . C . W illiam s, N oel. W . W . Pollock, Pres. County Association Holds M onth ly Meetings. F. W. Pendleton, vice-president https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the Bank of Independence, Independence, Missouri, and secretary of Group of Four of the Missouri Bankers Associa- The Mississippi Valley Trust Company of St. Louis combines world-wide banking facilities with personal service to correspondents W . F . K eyser, Secretary tion, announces that the banks of Jackson County have been holding a series of monthly meetings that have accom plished a great deal in fostering a bet ter spirit of co-operation and giving a clearer insight as to conditions prevail ing over the county. Mr. Pendleton says that from thirty to forty bankers have been attending these meetings. Conditions Are Good in Group Eight. E. C. Williams, president of the Bank of Noel, Noel, Mo., reports that general conditions in Group Eight of the Mis souri Bankers Association are good. “ Wheat looks fine,’’ says Mr. Williams. “We have had plenty of rain for plow ing and seeding spring crops and farm ers are looking forward to the largest strawberry crop in history, which will liquidate their indebtedness. “ The Pet Milk Company is planning the erection of a $250,000 condensary at Neosho, Missouri, and will extend milk routes all over Newton and McDonald counties. With these activities under way 1927 looks like another good year for Group Eight.” Pioneer Holt County Banker Is Dead. J. F. Bridgmon, president of the Bank of Bigelow, Missouri, and a pioneer of Holt County, died March 11 at his home in Bigelow. Mr. Bridgmon was nearly 86 years of age and had lived in Holt County since he was 11 years old. He was a successful and highly respected citizen and will be greatly missed by his community. He had been president of the Bank of Bigelow for the past twenty-two years. Ne w Mad rid Bank Elects Ne w Officers. At the annual stockholders meeting of the Commercial Trust Company, New Madrid, Mo., L. A. Lewis Sr., was promoted from the position of first vicepresident to president, succeeding F. M. Robbins, who resigned. J. K. Rob bins is now first vice-president; W. N. O’Bannon, second vice-president; L. A. Lewis, Jr., secretary-treasurer, and L. H. Lewis, assistant secretary. 81 St. Louis, April, 1927 Farm s Sold A t Low Prices. R. W. Holt, president of the Heaton Bank, Craig, Missouri, reports that there is no indication of an upward trend in the price of farm lands in Atchison County. Mr. Holt says: “A 200-acre farm, six miles from Fairfax, sold recently for $79 per acre, and an other farm of 295 acres, in settling up an estate, brought $95 per acre. While these farms are far from being the best lands, both being rather thin and rough, still the price at which they sold was a distinct disappointment to those who thought the corner in farm land prices had been turned. “ ROLL of HONOR” BANKS in MISSOURI It is an honor to be listed a m o n g the H o n o r R o ll banks. It indicates that the bank has surplus and undivided profits equal to or greater than its capital. Such distinction is accorded to the banks listed on this page. By careful m an agem en t and sound banking th ey have achieved this enviable position. T h e banks w ill be especially glad to handle any collections, New First State Bank of St. Joseph Is Opened The new First State Bank of St. Jo seph, Missouri, has opened for business with a paid-in cash capital of $100,000 and a paid-in cash surplus of $25,000. It will be affiliated with the First National Bank and the First Trust Company of special credit reports or other business in their com m unities which y ou m a y entrust to th em . Farm ers $ 10,000 20,000 10,000 12,000 B u ffa lo ............... ...O’B annon B an king C o ............ C am eron ........... First N a tio n a l............................... 25,000 31,667 50,000 55,000 C olu m bia.......... B oon e C ou n ty T r u st C o .......... Cnnrnrrlia Concordia S a vin gs..................... 75,000 200,000 50,000 52,000 D a lto n ................ B ank of D a lto n ............................. 10,000 20,000 26,000 B ank of E ve rto n .......................... 25,000 55,000 F a rm in gto n ..... B ank of F a rm in gto n ................. 50,000 125,000 B an k ................................. 25,000 30,000 B an k of H ard in ............................. 75,000 87,000 H a y ti ................ ..B ank of H a y ti................................ Iron ton ............... Iron C ou n ty B an k ...................... 20,000 26,471.82 G ilm an C ity ..... G ilm an H ardin 10,000 21,000 100,000 175,000 N a tio n a l............................... ... 1,000,000 3,470,000 L eb an o n ............ ...State B a n k ...................................... 30,000 35,000 P eoples B an k .................................. 20,000 35,000 N eo sh o ........ ...... F irst N a tio n a l............................... 50,000 85,000 O d essa ................ .B an k of O d essa ............................. 50,000 75,000 P erry ................... P eoples B an k .................................. 25,000 50,000 Joplin M iners B an k .................................... ... K an sas C ity First M aitlan d........... https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 10,000 B an k of B ig e lo w .......................... E v e rto n ............. St. Joseph, being one of the three mem bers of the family of “First” banks. The bank has taken a long term lease on the banking room, furniture, fixtures and safe deposit boxes located on the ground floor of the building located at the corner of Felix street and Frederick avenue. Officers of the new institution are: George E. Porter, managing partner of Ford & Porter, president; E. L. Ford and I. A. Vant, vice-presidents; L. A. Walker, cashier; and A. C. Johnson, assistant cashier. Directors include: Judge R. E. Cul ver, E. L. Ford, S. M. Jasper, G. E. Por ter and I. A. Vant. B an k ............................... ...$ Surplus and Profits A u g u sta ............. B an k of A u g u sta .......................... B ig elo w George E. Porter Capital B ank C ity A g e n c y .............. Correspondence is invited. 10,000 27,000 100,000 143,334 St. L o u is ........... 200,000 B a n k ............................. ... M ercantile T r u st C o ................... ... 3,000,000 8,096,642 Sedalia C itizens N a tio n a l........................ ... R a y m o re........... ..Bank of R a y m o re........................ St. Joseph......... . F irst St. L ou is T r u st C o ............................. ... Jefferson 100,000 252,000 290,000 South G ifford.. ..B ank of G ifford............................. 10,000 14,900 Sullivan B an k of Su llivan ........................... 10,000 82,000 Steelville 30,000 F irst N a tio n a l................................ 25,000 Stover................. ..S tover B an k ..................................... 15,000 22,000 T a rk io ....................Farmers B a n k ................................ 20,000 32,000 T r o y .................... P eoples B an k .................................. 50,000 115,000 B an k of U n io n ................................ 15,000 42,000 U n ion W a lk e r ............... F arm ers B an k ................................ 10,000 12,000 W e lls to n ......... . ..First N a tio n a l................................ 100,000 146,900 40,000 60,000 W in d s o r ............ C itizens B an k .............................. Mid-Continent Banker 82 New Hotel for Jefferson City Missouri Hotel, Jefferson City, M o. ^ ///////////yyyyy/yy//yyyyzy2y7yyyyyyyyyy/yy///yyy.yy/y7777y7/////////yyyyyyyyyyyy/yy/y////////y77y777yy/7y777: A Bank With More Than 800 Doors Over 800 banks now have the benefit o f a door opening into the N ational Stockyards. By crediting to our custom er banks the proceeds from stockyard shipm ents on the D A T E O F S A L E we save them interest that would other wise be lost in sending stock sale proceeds b y m ail. I f you are losing m oney in this w ay, lose no tim e in establishing a connection with us. A ll your items will be handled as we would want you to handle ours. THE NATIONAL STOCK YARDS NATIONAL BANK OF NATIONAL CITY N A TIO N A L STO CK Y A R D S, ILLINOIS O. J. SU LLIV A N , President H . W . K R A M E R , Vice-President J. W . M IN T O N , Assistant Cashier W . H. L A N D , Vice-President O K E Y M IL L E R , Assistant Cashier R. D. G A R V IN , Cashier ^ y/yyyyyyyy;y/yy//yyyyyyy7/y/yyyyyy/yyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyy/yy/yy7?777yyy/y/yy/y//y//y///)^ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Work Now Well Under Way on New Missouri Hotel Jefferson City, capital of Missouri, situated midway between St. Louis and Kansas City, with a steadily growing population that is expected to reach 20,000 before 1928, has long felt the need for a modern, fireproof hotel. Being a capital city Jefferson City is not entirely dependent for its ex istence on its agricultural and indus trial products. In addition to ordinary requirements, commercial travelers, so cial and commercial organizations in the city itself, it is required to accom modate politicians, lawyers and others who come to the capital on official busi ness throughout the year. Consequently, it is a matter of great satisfaction to those interested in the welfare and progress of Jefferson City to know that work is well under way on the new “ Missouri Hotel” that is being erected to meet these demands. The site, at the corner of High and Adams streets, is well chosen, in as much as the city is expanding in an easterly direction. Government roads Nos. 50 and 63 pass in front of the hotel. The hotel has been designed by Kennerly & Rumford, architects, of St. Louis, and will be six stories high. Pro visions are made for three additional stories to be added as soon as condi tions warrant. There will be two stores, large lobby, a dining room, banquet hall on the first floor, and 140 hotel rooms, each with bath or shower above. In the basement will be a garage, barber shop, sample rooms and a large health gymnasium and swimming pool. The mezzanine will contain writing and lounging rooms for the use of guests. The hotel will conform to the most modern standards, and be equipped with mechanical ventilation, vacuum cleaning system, ice water circulating system, mail chutes, freight and pas senger elevators. When completed it will be a real asset to the community and to the city’s numerous visitors. The Straus Brothers Company, with offices at 10 South La Salle street, Chi cago, and Planters building, St. Louis, have underwritten a $350,000 first mort gage bond issue secured by this project. Leading citizens of Jefferson City have subscribed for $100,000 second mortgage bonds, ranking junior to the first mort gage issue. The principal stockholder in the building corporation is James J. O’Brien, prominent St. Louis lawyer and business man, who personally guar antees the first mortgage bonds. The land and building are appraised at $630,000, and Horwath & Horwath, leading hotel accountants, estimate net income at $60,120. St. Louis, April, 1927 83 ^ /////////////////////////////////////////////^ ^ ^ ^ JOPLIN 3 Fine Trains Daily from Fast Overnight Service from KANSAS CITY SAINT LOUIS Lv. S t. L o u is 6 :2 8 p m L v. T o w e r G rove 6 :3 7 p m L v. J efferson C ity 9 :40 p m L v. K a n s a s C ity 8 :3 0 a m 5 :3 0 p m 1 1 :2 0 p m 2 :1 5 p m 1 0 :4 5 p m C a fe C lu b car on 7 :0 0 a m day 1 1 :13 p m L v . S e d a lia A r . J o p lin t r a in s ; 7 :00 a m A r . J o p lin S ta n d a r d d r a w in g -r o o m s ta n d a r d d r a w in g -r o o m sleep ers e r s ; d in in g -lo u n g e o n n ig h t tr a in s . e v e n in g lu n c h e s . C o u r te o u s a t t e n t io n to y o u r travel r e q u ir e m e n ts . a n d re serv a tio n s a t C ity T ic k e t O ffic e : sleep car servin g S ecu re tic k e ts In K a n s a s C ity , 707 W a ln u t S tre e t (V ic to r 6 1 0 0 ); in S t. L o u is , 318 N o r th B ro a d w a y (M A in 1000). A . D. BELL, Passenger Traffic M anager M ISSO U R I PAC IFIC R. R . CO. Railway Exchange Bldg. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis St. Louis, M o. MISSOURI PACIFIC LINES 'Uff# *‘A Service Institution” Is back in 1857, when this l \ institution had its beginning, its founders held a firm belief in the future. These men o f vision kn ew how to build. Service and integrity were their cornerstones. A w ay If R. M. Funkhouser, pictured here, o r any o f the other men associated with him 70 years ago when the St. Louis Building and Savings A ssociation began its career, could view this bank today with its specialized departments and many activities, they would be amazed. And yet the basic principles they laid down remain the same. To be in service three score years and ten is no small achievement. Yet the life o f this constantly expanding institution is on ly begun. Realizing the best is yet to com e, it is looking into the future and planning for even a more constructive service in the years ahead. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis O f COM M ERCE SAINT « r a g j i fir n LOUIS
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