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Federal Reserve Bank of St. Louis


Ba n k e r


Assignment of Life Insurance as Collateral
By B. L. Holland
Page Seven



for Cotton, But
Cream Separators
By Paul Edwards



Page Nine

All in the Morning’s Mail
By Roscoe Macy
Page Eleven

The Executive and the Auditor
By F. Lee Major
Page Thirteen

Whither Are W e Drifting?
By R. S. Hecht
Page Fifteen

The Effect on Europe of Tight Money in
By B. M. Anderson, Jr.
Page Forty-Two

Bond and Investment Section
Page Thirty-One

AUGUST, 1929
The Financial Maqazine of the Mississippi Valley

August, 1929

M id -C o n t in e n t B a n k e r


in St. Louis

Capital, Surplus and
Undivided Profits

R E G . U . S . P A T . O FF .

Our E v e r-In c re a sin g N u m b e r o f C o r r e s p o n d e n ts
are Located T h ro u g h o u t th e E n tire U n ited S tates
The Mid-Continent Banker is published monthly by the Commerce Publishing Company, 408 Olive Street, St. Louis, Mo. Subscription price $3.00
No. 8. Entered as second class matter at St. Louis Postoffice. Additional entry as second class matter at Fulton, Mo.

per year. Volume 25.
Federal Reserve Bank of St. Louis

August, 1929
Federal Reserve Bank of St. Louis

M id -C o n t in e n t B a n k e r

—Build small unprofitable savings into profitable
—Revive dormant savings accounts
’—Establish a Real Estate l.oan Department
—Advertise for large construction loans
—Advertise for small housing loans
—Solicit correspondent bank accounts
—Sell commercial banking to business men
—Sell the checking account as a financial service
—Inaugurate and announce the service charge on
checking accounts
—Meet trust objections in selling
—Fit trust advertising into a general campaign
—Analyze the trust department
—Prepare institutional copy for investi njiit houses
—Develop sales promotion for investment houses
—Coordinate sales, buying, advertising £;nd sales
promotion for investment houses
---------------------- — T O F IN D O U T — A T T E N D T H E ’--------------------------

Fourteenth Annual Convention


O c t o b e r 30

N o vem ber 2

A t l a n t a - Georgia


Federal Reserve Bank of St. Louis

August , 1929

M id -C o n t in e n t B a n k e r

O n request, w e w ill
furnish a list o f highgrade securities, which
are recommended by
us for the investment
account of banks, and
for resale to clients


*»Eighth ~ St. Charles
St. Louis

August, 1929


M id -C o n t i n e n t B a n k e r

Personal Comment
A banker in Love County, Oklahoma,
writes us an optimistic letter which
makes us feel that the adage about
the worm must turn, i t ’s a long road
that has no curves or there must be
a silver lining is true. At any rate,
the banker tells us that during the
past seven years there has been but
one good crop. Another one is well
on its way, now, he says, and the bank­
ers as well as other persons in that
vicinity are looking forward with real
satisfaction in seeing this crop de­
velop. In spite of six crop failures
the banks of this territory show good
statements. One reason for this may
be seen in the fact that this section of
the state has been building up its dairy
and poultry industries. A crop fail­
ure, though serious, is not as disas­
trous as it would be if the people de­
pended on a cotton crop almost entire­
ly as they used to do.
W. V. Davis, cashier of the First Na­
tional Bank of Monett, Missouri, at­
tended the council of administration of
the Missouri Bankers Association at
Kansas City recently, being chairman
of (iron]) Eight.
One of the Mid-Continent Banker’s
representatives recently called on
Hoyleton State and Savings Bank at
Hoyleton, Illinois. H. H. Weigel,
cashier of the bank, is, we believe, the
youngest cashier in the state of Illi­
nois. Mr. Weigel is only nineteen
years old. Other officers of the bank
are: W. E. Breuer, president; D. Rixmann, vice-president; Miss Corinne
Beckmeyer, assistant cashier.
H. R. Aisthorpe, cashier of the First
Bank and Trust Company, Cairo, Il­
linois, celebrated the end of his thirtythird year of banking service in June.
Mr. Aisthorpe recently wrote to the
Mid-Continent Banker: “ I enjoy read­
ing your paper and believe that I re­
ceive much good from the practical ar­
ticles which you publish.”
A few days ago we received a post
card from D. K. Snyder of the Dro­
vers National at Kansas City. The
card was sent from New York City and
brought the following message : ‘ ‘ Here
on my first real vacation in fifteen
years. Having the time of my life
and learning a lot. Call money surely
looks like a good investment to me.
New York Bankers very optimistic in
regard to future business conditions.”
Federal Reserve Bank of St. Louis


Ba n k e r

T h e Financial M agazine o f the M ississippi V alley
Editor and Publisher

Associate Editor

Associate Publisher

Assistant Editor

V O L . 25

ST. L O U IS , A U G U S T , 1929

NO. 8

Assignment of Life Insurance as Collateral—B. L. Holland


Foreman Banks— State Bank Merger







No Money for Cotton, but Plenty for Cream Separators
—Paul Edwards
All in the Morning’s Mail—Roscoe Macy


The Executive and the Auditor— F. Lee Major


Whither Are We Drifting?—R. S. Hecht


News of New York and Eastern Bankers


Secondary Reserve Problem of Bank Management—Eugene
H. Burris
- - - - - - - 3 1
Effect on Europe of Tight Money in America—B. M. Ander­
son, Jr.
- - - - - - - 4 2
Along La Salle Street—Howard W. Clark
St. Louis Stock Exchange Quotations
Current Quotations


- -

How Insurance Companies Invest
Legal Tender Section
- -


- -



- -



- -



- -


- -

- 5 3


- . 7 5

Texas - Oklahoma










Tha Mid-Continent Banker is published monthly by the Commerce Publishing
Company; Donald H. Clark, president; Howard W. Clark, vice-president;
James J. Wengert, secretary and treasurer.

Telephone GArfield 2138
C H IC A G O O F F IC E : A1516 IN S U R A N C E E X C H A N G E
B U IL D IN G , 175 W . J A C K S O N B L V D .
H ow ard W . Clark, vice-president and manager
T eleph on e H A R rison 8109
H. M. Love Organization
11 West 42nd Street
Telephone LONgacre 7194

Frank S. Lewis, Manager
840 Lumber Exchange Building
Telephone MAin 3865

Subscription price $3.00 a year; tw o years $5.00; 40 cents a copy
The Mid-Continent Banker is entered at the St. Louis postoffice as second
class matter; additional entry as second class matter at Fulton, Missouri.




M id -C o n t in e n t B a n k e r

August, 1929

It is the aim o f the
M ississippi Valley
M e r c h a n ts S ta te
Trust Company to
render each


spondent every pos­
sible service, in a
way that will make
them feel their

is t rul y


M ississip p i Valley M erchants State
Federal Reserve Bank of St. Louis

<^7Wid-Continent Banker^



Volume T w enty-Five




Number Eight

o f Life Insurance
O bankers and others who lend
money the decisions of some of
the courts defeating certain collateral
assignments of life insurance policies
are of very great importance. All
courts agree that life insurance poli­
cies are assignable and their use as
collateral has properly become wide­
spread. However, some of the courts
have defeated such assignments mere­
ly on the ground that in making the
assignments the correct procedure has
not been followed.
It is generally understood that if a
life insurance policy is payable to a
beneficiary, other than the insured’s
estate, without privilege of change, the
beneficiary has a vested interest in the
policy which can not be defeated with­
out the consent of the beneficiary.
However, there seems to be a popular
notion that if the insured has reserved
the right to change the beneficiary he
is the owner of the policy and can as­
sign it without regard for the inter­
ests of the beneficiary. Most life in­
surance policies issued today contain a
provision which reserves to the insured
the right to change the beneficiary.
Such policies usually require that in
order to change the beneficiary the in­
sured shall file a written notice of the
change at the home office of the in­
surance company together with the
policy for indorsement of the change
thereon by the company. The poli­
cies issued by most companies do not
contain any provisions specifically giv­
ing the insured alone the right to make
an assignment of the policy even
though he has reserved the right to
change the beneficiary.
The question, therefore, is whether
the insured can assign such a life in­
surance policy for collateral purposes
without complying with the provisions
of the policy for making a change of
beneficiarjG The basis of the decisions
of those courts which have answered
this question in the negative is well


Federal Reserve Bank of St. Louis

Attorney for the Phoenix Mutual Life
Insurance Company o f Hartford,

illustrated by the case of Anderson
versus Broadstreet National Bank, 90
N. J. Eq. 78, 105 A. 599, decided in
1918. In that case the policy was pay­
able to the insured’s wife if living at
the death of the insured, but if not
then living to the estate of the in­
sured. The policy reserved to the in­
sured the right to change the benefi­
ciary. The insured made a collateral

because the policy contained the usual
provision that a change of beneficiary
should be made by filing a notice of
change with the company at its home
office together with the policy for in­
dorsement. Consequently, since the
beneficiary was living at the death of
the insured and had not been changed
as provided in the policy, the bank was
unable to recover anything under its
collateral assignment.
HE case of the Broadstreet Naj tional Bank is only illustrative
of a number of cases which have reach­
ed this result. The following cases
have supported this view:



''A nyone desirin g to ta k e an
assign m en t o f a life in su rance
p olicy as collateral is in a very
p recariou s p osition unless th e


th e

ben eficiary

h a r e b een p ro p erly d isp o sed
o f.”

assignment of the policy to a bank.
On the death of the insured the court
held that the beneficiary took the en­
tire interest in the policy and the bank
was entitled to recover nothing on its
collateral assignment. The decision
was based upon the theory the wife as
beneficiary took an interest in the pol­
icy which could not be defeated dur­
ing her lifetime without her consent
unless the beneficiary was changed in
accordance with the provisions of the
policy. The collateral assignment did
not constitute a change of beneficiary

Johnson v. New York Life Ins. Co., 56
Col. 178, 138 P. 414 (1914)
Muller v. Penn Mutual Life Ins. Co., 62
Col. 245, 161 P. 148 (1916)
Douglass v. Equitable Life Assurance So­
ciety, 150 La. 519, 90 S. 834 (1921)
N. J.
Sullivan et al v. Maroney et al, 77 N. J.
Eq. 565, 78 A. 150 (1910)
Metropolitan Life Ins. Co. v. Zgliczenski,
94 N. J. Eq. 300, 119 A. 29 (1922)
N. Y. Schoenholz v. New York Life Ins. Co.
et al, 234 N. Y. 24, 136 N. E. 227
Mahoney v. Eaton et al, 205 N. Y. S.
707, 123 Misc. 231 (1924)
Okla. Dictum in Third National Bank of Lawton v. Lewis et al, 73 Okla. 329, 176
P. 237 (1918)
Barner v. Lyter, 31 Pa. Sup. Court, 435

On the other hand the following
cases have been decided that, where
the insured has reserved the right to
change the beneficiary, he is the owner
of the policy and has the right to make
an assignment without regard to the
interest of the beneficiary:



Mutual Benefit Life Ins. Co. v. Swett,
220 Fed. 200 (C. C. A. 1915)
Rawls v. Penn Mutual Life Ins. Co., 253
Fed. 725 (C. C. A. 1918)
Loringer v. Gavan, 270 Fed. 298 (S. D.
of N. Y. 1920)
Dictum in Mente v. Townsend, 68 Ark.
391, 59 S. W. 41 (1900)
Farmers State Bank v. Kelly, 155 Ga.
733, 118 S. E. 197 (1923)
Merchants Bank et al v. Garrard, 158 Ga.
867, 124 S. E. 715 (1924)
Ratteray v. Banks, 31 Ga. App. 589, 121
S. E. 516 (1924)
Equitable Life Ins. Co. v. Mitchell, 248
111. App. 401 (1927)
Mayer v. 111. Life Insurance Company,
211 111. App. 285 (1918)



M id -C o n t i n e n t B a n k e r

Mass. Atlantic Mutual Life Ins. Co. v. Gannon
et al, 179 Mass. 291, 60 N. E. 933
Mich. Bland v. Bland, 212 Mich. 549, 180 N.
W. 445 (1920)
Miss. Lamar Life Ins. Co. v. Moody, 122 Miss.
99, 84 S. 135 (1920)
Bank of Belzonie v. Hadges et al, 132
Miss. 238, 96 S. 97 (1923)
Missouri State Life Ins. Co. v. Cali­
fornia State Bank, 202 Mo. App. 347,
216 S. W. 785 (1919)
S. C. Antley v. New York Life Ins. Co. et al,
139 S. C. 23, 137 S. E. 199 (1926)
overruling Deal v. Deal 87 S. C. 395,
69 S. E. 886 (1911) and Barron v. L ib­
erty National Bank, 131 S. C. 443, 128
S. E. 414 (1925)
Texas McNeill v. Chinn, 45 Texas Civ. App.
551, 101 S. W. 465 (1907)
Dictum and Farracy v. Parry, 12 S. W.
(2d) 651 (Tex.-C. C. A. 1928)
Wash. Schade v. Western Union Life Ins. Co.,
145 Wash. 200, 251 P. 251 (1923)

While the latter class of eases is
quite large, nevertheless the number
and standing of the courts which have
refused to permit the insured alone to
make an assignment of the policy with­
out complying with the provisions of
the policy for changing the beneficiary
are so great that anyone desiring to
take an assignment of a life insurance

policy as collateral is in a very pre­
carious position unless the interest of
the beneficiary has been properly dis­
posed of. Accordingly, unless the life
insurance policy specifically gives the
insured alone the right to make the
assignment, one taking an assignment
of the policy should be certain that
the interest of the beneficiary has been
made subject to the assignment. Usual­
ly this may be done by securing the
signature of the beneficiary to the as­
signment. However, often this can not
be obtained because the beneficiary
may be a minor, or will not consent.
In other cases the insured’s wife may
be the beneficiary and may be pre­
vented by local statutes from pledg­
ing her property for a debt of her hus­
band. When the signature of the
beneficiary can not be secured the in­
sured should be required to change the
beneficiary to his estate before the as­
signment is made.

Forem an Flanks and State Fiank o f
Chicago Announce M erger
of the Foreman
banks and the State Bank of
Chicago has been arranged to form a
$222,000,000 banking group for Chi­
cago, the third largest in the city
and representing the fifth major com­
bination in Chicago banking circles
within the last year. Arrangements
for the amalgamation were completed
at a joint meeting of the directors and
officers of the two banks.
The two banks go into the consol­
idation on a share for share basis, ac­
cording to the terms announced. The
new Foreman National Bank which will
be the principal organization of the
consolidated group will issue 110,000
shares of $100 par value, of this 60,-


m a l g a m a t io n

Lef't to right:

000 shares will go to the present Fore­
man National stockholders and 50,000
shares to the State Bank stockholders.
These respective amounts exactly equal
the present outstanding shares of the
two consolidating banks.
Resulting from the union, there will
be three separate units consisting of
the Foreman National Bank, the Fore­
man-State Bank and Trust Company
and the Foreman National Corpora­
tion. Into the first named, which will
have an invested capital of approxi­
mately $25,000,000 will be concen­
trated the commercial and foreign
business of both present banks. The
trust, savings and mortgage loans busi­
ness will be segregated to the Fore­

Harold E. Foreman, Walter W . Head, Oscar H. Haugan and Oscar
G. Foreman.
Federal Reserve Bank of St. Louis

August, 1929
man-State Bank and Trust Company
which will have an invested capital
of approximately $5,000,000. The re­
cently formed Foreman National Cor­
poration will be expanded to have an
invested capital of $8,000,000 and take
over the entire investment business.
The stock of the Foreman-State Bank
and Trust Company and Foreman Na­
tional Corporation will be owned or
trusteed for the benefit of the stock­
holders of the Foreman National Bank.
The combined resources of the
merged banks as of the date of the
last bank call, June 29, 1929, totaled
$221,780,574 with combined deposits
totaling $179,673,518.
The executive officers of the new in­
stitution will be Oscar G. Foreman,
chairman of the executive committee
of both banks; Harold E. Foreman,
chairman of the board of both banks;
Oscar H. Haugan, vice-chairman of
both banks; Walter W. Head, presi­
dent of both banks, and Gerhard Fore­
man, president of the Foreman Na­
tional Corporation.
The members of both boards of di­
rectors will form the new board and
the officers of both banks will con­
tinue as officers of the consolidation.
All employes will be retained by the
merged institutions. Leroy A. God­
dard, vice-chairman of the State Bank
board will continue an active interest
in the new institution as a member of
its board of directors.

C h ica g o B o n d H o u s e Buys
In su ran ce fo r E m p lo y es
The Equitable Bond and Mortgage
Company of Chicago, has announced
the purchase of more than $200,000 of
group life insurance for the benefit
of its employes, through contract with
the Metropolitan Life Insurance Com­
pany. The program features the co­
operative method of paying premiums,
with employer and employes sharing
the cost.
Individual life coverage is based on
salary, and for the employes in the
main classification covered, amounts
to $1,000, $2,000 or $3,000. The en­
tire amounts are payable in monthly
installments if total and permanent
disability occurs before age 60.
While sick or injured, insured em­
ployes are offered the advantages of a
visiting nurse service. The regular
distribution of pamphlets on health
conservation and disease prevention is
a part of this service.
Courtesy is a natural thing— there
ought to be no need of your forcing
yourself to be courteous.

A story o f what the banks of a small Missouri
town have done to wake up the farmers o f their
community and put them on a "paying basis."

N o Money for Cotton* but Plenty
ORNIN’, Ponder. Quite a rain
we had last night. Came across
the bottom this mornin’ and some of
it had washed quite a little.
“ What I came into see you about
—would like to borrow ’bout $250 for
some seed. Want to put in some cot­
ton and thought I might try a little
cane this year, too.”
“ Sorry, John. Darned if I know if
I can do it. Seems as if you fellows
stick in a little cotton and corn and
cane each year and then never seem
to get anywhere with it. I f you’d
come in and said, ‘ Ponder, I want to
borrow $250 to buy a couple of jerseys
and some chickens,’ we might have
been able to find you the money.
“ See what I mean, John. If you
were milking a few good cows and had
a few chickens you’d have a ‘ living’
coming in each week and darned if you
wouldn’t about clear what you’d make
off your crops.
“ Now here’s what I ’ll do, John— ”
And that will give you sort of an
introduction to what the banks of Don­
iphan, down in Ripley County, Mis­
souri, are doing in the way of mak­
ing better farmers out of the farmers
of Ripley County.
No money for cotton, but lots of
money for cream separators.
No money for automobiles, but lots
of money for dairy cattle.
No money for corn, but lots of
money for baby chicks.
Five years ago Ripley County was
about like any other Missouri Ozarks

Federal Reserve Bank of St. Louis


for Ripley County. Dairying and poul­
try were the only things concentrated
on at first.
Pure bred bull clubs were formed
and only pure bred animals were

county. The farmers eked out a bare
existence from the few acres of land
they farmed.
planted a little cot­
ton and corn. Some­
times they h a d a
crop; sometimes not.
I f they didn’t, they
cut up a few ties
from the hills and
brought them to town
to pay for their gro­
Now t h e y
bring their poultry,
eggs, cream and what­
not to town.
pay cash for their
groceries, have a nice
bank balance and live
better than they ever
dreamed of living be­
A typical group of dairy cattle.
And here is how
bought. Each bull club included the
this has been brought aboiat.
Five years ago, under the leader­ farmers in a certain territory. Serv­
ship of E. K. Ponder, cashier of the ice fees were charged which eventual­
Ripley County Bank, and A. D. Shep­ ly paid for the original cost of the
pard, editor of a local newspaper, the bull for each club. In the meantime
Doniphan Chamber of Commerce was the banks put up the money for the
reorganized. All the business men
bulls and charged no interest on the
were called together. With them met
the various farmers associations, an
Money was lent freely to farmers
expert from the Missouri Pacific Rail­
buying baby chicks and setting eggs
road and another from the Sugar Creek
—if they bought approved stock.
Creamery Company. As a result of
Farmers meetings were held through­
this a four year program was laid out
out the county and the plan explained
to the farmers. Somewhat skeptical
at first, the farmers soon saw the ad­
vantages of the plan and set to work.
This plan under way, it was neces­
sary to put over the idea of proper
feed for the new dairy stock and poul­
try. The good stock could not be fed
in the same way that the old scrub
stock had been fed. The new county
agent, with the cooperation of the
State College of Agriculture, worked
out the proper feed ratios for the
stock and the farmers were urged to
use this sort of feed. Once they start­
ed using it, they were “ sold on it”
for good. Soy beans and other leOne of the many highly developed poultry farms.

gumes were introduced and the farm­
ers were urged to grow them.
Once this program was under way,
the “ powers behind the movement’ ’
started in urging the farmers to set
out fruit trees. Recently sheep clubs
have been formed.
And have the farmers taken to this
new program? Ask any of them when
the Doniphan Dairy Show is in prog­
ress. They’ll tell you that they “ never
seen nothin’ like it.” Most every
farmer has a few good jersey cows
and a flock of chickens. He raises a
lot of fruit. Corn and Cotton? Sure.
They raise just as much as ever, hut
they are not dependent on it. Come
what may, they have a good living
coming in every week from their cream
and poultry alone.
The farmers are raising more cat­
tle. They’ve found there’s good
money in it. Last year the prize win­
ners in the fat lamb show topped the
St. Louis market for the year by a
very good margin. Here are compar­
ative figures for the amount of cream,
eggs, hogs and veal shipped out of
Doniphan for the years 1924 and 1928.
These figures do not include any stuff
trucked out.

M id -C o n t in e n t B

a n k er

In 1924 there were 138,760 pounds
of cream shipped out of Doniphan.
In 1928 this figure reached more than
a million pounds. In 1924 there were
twelve cars of eggs shipped out. In
1928 this figure reached 60 cars.
Twelve cars of hogs were shipped out
in 1924 and in 1928 there were 110
cars. In 1924 there were 138 head of
veal shipped out; in 1928 this figure
reached 1,450.
As for acres of legumes planted, in
1924 there were 547 acres in the whole
county. In 1928 there were 5,500 acres
planted. Such has been the agricul­
tural development of the county.
And have the banks profited by it?
The spring call in 1924 showed the
three banks of Doniphan to have to­
tal deposits of $522,079.65. The spring
call of 1929 showed total deposits of
$736,926.73. Bills payable and redis­
counts in 1924 totalled $121,095.56. In
1929 they had been reduced to $14,000 and one of the banks showed none.
In one month the foreign cream, poul­
try and dairy checks cleared by one
bank averaged more than $1,000 per
day and it is estimated that the amount
runs between $35,000 and $45,000 per

W ood Netherland Heads Federal L and
Bank, St. Louis
OOD NETHERLAND, vice-pres, ident and treasurer of the Fed­
eral Land Bank of St. Louis, formerly
cashier of the First National Bank of
Fort Smith, Arkansas, has been elected
president of the Federal Land Bank
of St. Louis. The office carries with
it the presidency of the Federal Inter­
mediate Credit Bank of St. Louis.
Mr. Netherland succeeds H. Paul
Bestor, who resigned recently when he
assumed the chairmanship of the Fed­
eral Farm Loan Board at Washington.
He is the son of W. R. Netherland,
banker of Perry, Ralls County, M o./
and had been engaged in the banking
field at Fort Smith for eighteen years
before coming here last August. He
also was interested in a chain of banks
and had been president of the Bank of
Mulberry, Ark.
Mr. Netherland also has been ap­
pointed district director by the board
at Washington to fill the unexpired
term of Bestor.
Other district directors of the bank
are: L. M. Smith, Ozark, Illinois and
A. P. Patton, Jonesboro, Arkansas;
and local directors, C. E. Hopkins,
Pontiac, Illinois; W. W. Martin, Don­
iphan, Missouri, and Oliver J. Lloyd,

Federal Reserve Bank of St. Louis

director at large. A local director
will be elected soon from Arkansas
to fill the unexpired term of the late
L. M. Burge.

August , 1929
month for the whole county. Figure
it out yourself.
Of course such a program as has
been carried out by Ripley County has
only been made possible by the ut­
most cooperation from all parties con­
cerned. By carrying out their policy
the banks made the farmers “ see the
The local newspapers ham­
mered on the program in every edi­
tion. Merchants of the town lent their
help at every turn. Merchants’ meet­
ings were attended by merchants and
farmers alike. In the same way mer­
chants of the town drove many miles
to attend every farm meeting. When­
ever a poultry, dairy or seed demon­
stration was held there were almost as
many merchants in attendance as there
were farmers. Everyone cooperated
in the carrying out of the program.
Five years ago if one walked down
the streets of Doniphan he wouldn’t
have seen much activity. Maybe a
few farmers were in from the hills in
their wagons for some groceries. Now
one sees a busy little community.
Farmers come into town in their cars
and they stay to buy because they have
the money. People come for miles to
attend the annual dairy and poultry
show. The first show was held in a
tent. Now they have their own build­
ings where they proudly exhibit their
chickens and pure-bred stock.
All of which goes to show what the
banks of a community can do when
united for the common good of that
community, for truly the banks of
Doniphan have from the beginning
been the motivating power behind the
development of Ripley County.

B o a rd o f T rad e O p en s S to c k
E x c h a n g e at K an sas City
The Kansas City Stock Exchange
was recently opened as a department
of the Kansas City Board of Trade.
Operating with this connection the new
venture will have the many advantages
that this relationship can give: space
and wire service, 217 eligible traders
now on the Board of Trade with about
fifty of them already signifying their
intention of operating.
Walter R. Scott, secretary of the
Board of Trade, will be manager.
Other officers are: J. J. Ivraettli, pres­
ident; Roland A. Jeanneret, first vicepresident; F. A. Theis, second vicepresident.

Assets of the bank, according to the
latest statement, total $111,000,000 and
of the Federal Intermediate Credit
Bank $5,400,000.

A couple of rival but friendly shop­
keepers were talking things over.
‘ ‘ When does your opening sale
close?” asked the first.
“ When our closing-out sale opens,”
the second replied.

All in the Morning’s Mail
U p o n R eturning From H is V acation Roscoe Looks
O ver the M ail T h a t H as A ccum ulated on H is Desk


N' the romantic and hazardous life
of the busy banker, there is no oc­
casion more highly spiced with the
spirit of adventure than that day up­
on which he returns to his desk after
a few days’ absence, to find a moun­
tainous stack of mail awaiting him
there. Who knows what delightful
surprise may be lurking in that pile of
unopened letters ? Perhaps a forgot­
ten uncle may have perished, leaving
his entire fortune to the nephew who
knocked off his hat with a snowball in
the winter of 1908. Long-deferred
recognition may be hidden somewhere
in the heap, in the form of an invita­
tion from Washington to sit on an im­
portant governmental commission. Pos­
sibly there is a letter from the old
college, asking the
privilege of confer­
ring a degree upon
one o f her worthiest
So it is with a
feeling of keen an­
ticipation that his
hand, almost trem­
bling slits open the
first letter, and he
“ Dear Sir:
“ Several w e e k s
ago, we mailed you
a n assortment o f
our R e d d i-M a i d
neckties and NeerSilk hosiery, f o r
which you were requested to remit us
the sum of $2.98 or to return the goods
by first mail. The package has not
been returned, nor have we received
your remittance, although we have sent
you several statements of same.
“ In this transaction, we have pro­
ceeded upon the theory that we were
dealing with a responsible and hon­
orable person. Our experience with
this particular shipment appears to in­
dicate that we may have been mis­
“ I f you do not wish to take advan­
tage of our offer, please inform us and
we will send instructions for return­
ing the package. On the other hand,
if, as we believe, you are even now
wearing some of these goods, you will
avoid further trouble by remitting the
Federal Reserve Bank of St. Louis

amount due without further delay.
“ Yours very truly,
‘ ‘ Haberdashers, Inc. ’ ’
OT so good. Stifling a sigh o f
disappointment, our hero reaches
for the next:
“ Gentlemen: LET LTS
BANK! We love
to sell banks; it
is a sort of hob­
by with us. Why
not give us a
chance at yours
“ T h e r e are
plenty of buyers
for banks; sta-


IS spirits sinking, the adventurous
banker slowly opens a third let­
ter, and the following meets his eye:
‘ ‘ Gentlemen:
“ We have not yet received returns
on our collection of May 27, 1927,
which was sent with instructions to
collect or return within ten days.
Please report.
“ Nickel Savings
Bank. ’ ’
Somewhat impa­
tiently, our h e r o
ruffles through the
letters, and singles
out an import ant­
looking yellow en­
velope, which upon
being opened, gives
out the following in­
formation :


“ ProDably there is a letter from the
old college asking the privilege of con­
ferring a degree on one of her worthiest
sons. ’ ’

tistics indicate that there is one born
every minute. Don’t forget to enclose
your latest statement. I f you haven’t
one of your own, send us your neigh­
bor’s. We can’t sell your bank with­
out a statement.
“ All information is confidential.
Your name will not be mentioned, as
you can see by examining this sample
listing from our latest circular:
“ No. XY2861—Largest bank in a
thriving Buddhist community. Of the
seven leading bootleggers in the town,
five patronize this bank, and allow its
officers a substantial trade discount.
It will be worth your while to accept
an assignment of a controlling interest
in this bank, and assume the mortgage
on the cashier’s residence.
‘ 1Respectfully yours,
“ The A. B. Company.’ ’

“ Sir:
“ You are hereby
summoned to appear
before the judge of
the Superior Court
on August 3rd, at 2
o ’clock p. m., to an­
swer to the charge
o f parking after
dark without a taillight.
*‘ Respectfully,
D. D. Smith, Clerk.”
Wearily, almost
without hope, Mr.
Banker scans t h e

next missive:
‘ ‘ Gentlemen:
“ Will you please send us the names
of 12 to 18 boys in your town, under
the age of twelve, whom you consider
qualified to sell our Qualitee Products'?
We encourage all our young salesmen
to start bank accounts, and some of
our boys carry checking balances as
high as $22.50 in their local banks.
“ We shall be glad to reciprocate
at any time—by sending you the names
of 12 to 18 boys in our town.
“ Cordially yours,
“ Qualitee Products, Inc.”
T last, there appears a letter which
would have carried just a trace
of romance but for its obvious boiler­
plate composition:




M id -C o n t in e n t B a n k e r

‘ ‘ Dear Sirs :
“ I am a poor, lone stenographer,
with blue eyes and yellow hair. Mr.
Jones, the man I work for, sells wall
paper and paints—or he would if he
could get some orders. Mr. Jones is
a wonderful man to work for; he steps
out with me every Tuesday and Fri­
day nights, and really shows me as
good a time as could be expected, the
way the orders are coming in.
“ I am writing this letter without
Mr. Jones’ knowledge, asking you to
send me the names of all the painters
and paper-hangers in your community.

After the names are all in, I will give
Mr. Jones a splendid surprise by giv­
ing him these names, and I know he
will like it, as he doesn’t know many
painters or paper-hangers.
“ Then, if each one of these names
will send Mr. Jones an order, he will
be able to show me a better time on
Tuesday and Friday evenings, and we
will draw our drafts through your
bank, so that you can share in our
happiness, and collect your exchange
from the drawee.
“ Thanks; I just knew you would be

N orthern Trust, Chicago, Celebrates
Fortieth Anniversary August Twelfth

Remodeled Building of The Northern Trust Company.

UGUST 12 marks the fortieth an­
niversary of the founding of The
Northern Trust Company of Chicago.
This institution opened its doors for
business August 12, 1889, and has
served its clients with an unbroken
identity for forty years.
Coincident with its fortieth anni­
versary and to meet the needs of grow­
ing business The Northern Trust Com­
pany has found it necessary to add two
complete floors to its building and to
make extensive alterations throughout.
The first floor, where are located the
Savings and Investment Departments,
is to be remodeled with new type of
cages installed and balcony extended.
The Commercial Banking Depart­
ment on the second floor is to be pro­
vided with additional facilities for ex-

Federal Reserve Bank of St. Louis

pediting the business of its customers.
Cages of modern design will be extend­
ed to the north wall. The floor al­
ready has been continued to the south
wall to provide an enlarged, newly
furnished, officers ’ platform.
The third floor, containing the trust
department, is to be completely rebuilt
and refurnished. It will be confined
solely to the reception of trust custom­
ers and to the transaction of their af­
fairs, assuring greater comfort and in­
creased privacy.
The fourth, fifth and sixth floors
will be devoted to the mechanical de­
tails and administrative operation of
the institution.
New vault facilities are being com­
pleted to provide additional accommo­
dation for trust department use.

August, 1929
glad to help out a poor working girl.
“ Sincerely yours,
“ Sadie Smith.”
Still hoping against waning hope,
our romantic friend opens several im­
portant-looking envelopes in succes­
sion :
“ Dear Sir:
‘ ‘ Knowing you will appreciate the
opportunity to assist in the raising of
the Lame Ducks’ Endowment Fund,
we are enclosing an order blank for
five Lame Duck Memorial half-dollars
at $1.25 each, postage paid. Etc.
“ Cordially yours,
“ Lame Duck Memorial A ss’n.”
‘ 1Gentlemen:
“ Experienced bank executive, 22
years of age, desires position with pro­
gressive bank as president or cashier,
with Wednesdays and Saturdays off.
Speaks Sanscrit and Hog-Latin fluent­
ly. Choice of Catholic or Protestant.
Unmarried, but hopeful. At present
unemployed, since last directors’ meet­
ing. Will accept anything over $8,000
as a starter.
“ Western Employment Bureau.”
‘ ‘ Gentlemen:
“ Can you recommend a live sales­
man with a car, to sell our “ Little
Beauty” gasoline engines to farmers
in your vicinity? I f we form a con­
nection with a man recommended by
you, and he succeeds in placing 50 or­
ders for our engines, we shall be glad
to send you, free of charge, one 30-inch
collapsible rotary fly-wheel.
“ Yours very truly,
11Gray Motor Company. ’ ’
‘ ‘ Dear Sirs :
“ Do you have shooting pains, fallen
arches, lack of will power, or loss of
sleep? Let us send you the appliance
described in the enclosed circular, on
30 days free trial. Shipped in plain
package; no publicity.
“ Surgical Supply Co.”
Need we pursue this tragedy fur­
ther? Let us rather draw the veil of
sympathy upon the scene, in respect
for the feelings of our disconsolate
friend who approached his mail with
such high anticipation a few minutes
ago. But wait! Why, dog-gone him,
he doesn’t even deserve our sympathy;
hear him dictating his reply to the
first letter on the list, and adding this
gem to the archives of Inspirational
Business Correspondence: “ G e n t s :
Yours of the 13th inst. received and
contents noted. In reply beg leave to
state that------ !! ”
The men who are lifting the world
upward and onward are those who en­
courage more and criticize less.

EXECUTIVE and the
HE auditing department may be
one of the most important and
useful of the bank or it may be almost
a mere sinecure; its importance de­
pending not solely on the personnel of
the department but probably to a
greater extent on the attitude of the
operating executives toward it.
The auditor is expected to keep upto-date statistics covering the bank’s
business, to assemble all data and pre­
pare all regular and special reports of
the activities of the various depart­
ments and the bank as a whole, whether
for officers, directors or executive com­
mittees. He assists the department
heads in the proper conduct of their
departments and the directors in their
consideration of the bank’s affairs.
To intelligently direct the bank’s
affairs the directors and executive
officers should be furnished with in­
formation that will assist them to this
end and it is here that the auditor can
be of great usefulness. Such assistance
requires more than mere detail reports
on department audits.
At the outset I wish to state that it
is not my intention to discuss auditing
methods and procedure, but rather I
desire to discuss, in a general way, the
attitude of the executive toward the
auditor and the reciprocal relations
between them, especially as these rela­
tions are affected by the auditor’s re­
ports on the various departments and
the bank as a whole.


O ascertain something of these re1 lations I made inquiry of bank
executives in a number of cities. One
reply so clearly sums up all that I give
it to you as the general opinion:
“ It is my idea that the auditor is
one of the most important key-men in
any institution and his services to a
bank are just as important as an ex­
ecutive officer of the institution. Some­
times I feel that we regard the work of
the auditor as merely mechanical. By
that I mean that the work of the audi­
tor merely means to verify cash, verify
control accounts, collateral notes, led­
gers, outstanding items in our transit
department and the like. I think, how­
ever, that the work of an auditor and
his assistants should be more far reach­
ing than this. The importance of this
work cannot be questioned, but an

Federal Reserve Bank of St. Louis

Vice-President, Boatmen’s National Bank,
St. Louis

auditor s h o u l d have constructive
thoughts in his work as well as the
proper preparation of reports.
“ On the other hand, in the auditor’s
work he should really know more about
the mechanical operations of the bank
than any other person in it. For in­
stance, he sees increased costs in the
various departments of an institution
and can really tell whether items are
being handled along economical lines.

''The A uditor
is on e o f
the most im portant
in any institution
his services to a ban k
a re just as
im portant as an executive
o f the institution'''

He can also quickly tell the efficient
employes in the bank. I f this be true,
he should not have much trouble in
suggesting betterment along the line.
Proper comparative and analytical re­
ports should be made by the auditor
and his department.”
The auditing department is not so
concerned with the value of assets as
it is in the proper custody of the as­
sets, in seeing that all income to which
the bank is entitled is received, that
efficient accounting methods are em­
ployed and that opportunities for dis­
honesty are minimized.
The aim of every auditing depart­
ment should be to keep in such close
control of all branches of the bank’s
work that no dishonesty or error of
importance can long go undiscovered.



If this is to be accomplished it is im­
portant that the auditing department
be absolutely divorced from the op­
erating end of the bank.
In many institutions proper auditing
is considered of such importance that
the auditor is responsible directly to
the board of directors because it is felt
that the auditor should feel perfectly
free to call attention to any irregulari­
ty, regardless of the person or depart­
ment responsible therefor.
INCE the auditor is responsible for
maintaining a suitable system of
accounts and records and for making,
from time to time, such changes and
improvements in devices and methods
as may prove desirable to simplify and
clarify the work, it almost goes with­
out saying that he should always be
consulted regarding any contemplated
changes in departmental accounting
Coming in contact with every depart­
ment of the bank, the auditor has al­
most countless opportunities for mak­
ing suggestions on efficiency of oper­
ating methods and if unsound prac­
tices are found in any department it
is his duty to report them to the proper
executive for attention and correction.
A proper audit control, periodic de­
partmental audits and continual scrut­
iny by the auditing department tend to
increase efficiency of the operating
force and reduce expenses.
The auditor, no more than the execu­
tive, can accomplish the perfect hand­
ling and recording of all transactions,
but if he fails to find and to report
even slight deviations, just to that ex­
tent has he failed to be a good auditor.
On the other hand, when these devia­
tions are reported, the executive who
fails to take prompt corrective action
has also failed to “ measure up.”
An instance may be cited where the
auditor was criticised for an apparent




M id -C o n t i n e n t B a n k e r

interference with a strictly organiza­
tion question. When auditing a cer­
tain department the auditor was alert
to observe conditions in that depart­
ment not strictly pertaining to his work
and overheard a conversation between
two clerks to the effect that they were
gambling and spending considerable of
their spare time in night clubs and

cabarets. Of course it is true this did
not concern the auditor but he brought
it to the attention of the officer in
charge but nothing was done. Later
the auditor heard one of these two
clerks say he had lost $800.00 the pre­
vious day playing the horses. Again
this was called verbally to the atten­
tion of the vice-president in charge, but

T he New Economic Philosophy Since the
Reign o f Raskob and H enry
HE other day we received the fol­
lowing letter from one of our read­
ers, Gibbons Poteet, cashier of the First
National Bank at Roxton, Texas.
Mr. Donald H. Clark,
Editor and Everything,
M id -C on tin en t B an k er , St. Louis.
Dear Mr. Clark :
We note that you would like a news
item concerning our bank. Dadgumit,
we wish we could send you one—a
“ news item”—but we just can’t do it.
There is nothing new in this country ex­
cept automobiles. We are down here in
tilt! “ rich blackland belt” of Texas and
our people used to make a living raising
cotton. But since the “ after-the-war
readjustment” and the coming of the
cars they are not making a living at
anything. In the pioneer days in Texas
the folks used to FARM TO MAKE A
LIVING but in these latter years they
have drifted unconsciously into the
MONEY. Of course it would make some
of the folks mad to tell them that but
they might as well get mad as not. Their
intentions are good—the majority of
them—but their actions are bad.
There is an old saying— “ Whom the
gods would destroy they first make
mad.” But it has now come to where in
this country banking business in this
neck of the woods we would have to
make it read this way: “ Whom we
would SAVE we must first make mad.”
I heard of a cuss who got mad a few
years ago at his credit merchant because
the merchant would not agree to carry
his whole year’s account over into the
new year and then furnish him the value
o f another little farm in order that he
might go through the motion of making
another crop. The merchant offered to
furnish him about half what he called
for and that to be prorated at so much
a month. The farmer flew off the
handle and said if he could not get what
he wanted the way he wanted it he
would just do without anything. The
story goes that he did make his crop
without anyone’s assistance. A few
years later his noble son came to the
time to take a wife and pa fitted son up

Federal Reserve Bank of St. Louis

with a nice little farm that he had paid
for with his own cash, and he remarked
to a neighbor that he still had some more
money— and that he had not made a
dadgumed debt since he got mad at his
merchant that time. So, while getting
mad is usually a bad thing, that was one
time that it saved a man. But country
bankers are usually pacific and long suf­
fering. We want to belli our custom­
ers—we like them—we want to save
them, but if we were to attempt to save
every one by making him mad we would
likely get beat up for our pains and
that would be painful indeed.
The new economic philosophy is the
main cause of our trouble. Before the
war and the coming of the cars and the
reign of Raskob and Henry—before
that our people were working along on
the old Ben Franklin philosophy of
thrift and economy with the result that
they usually paid their debts. And for
50 or 75 years this pioneer community
got ahead a little. The old philosophy
taught them that it was best to produce
before you spend and then not spend
quite all of it. But Mr. Ford and Mr.
Raskob have preached a new doctrine,
the new idea to buy ahead of the game
and get into debt so you will have to
work harder to get out. The old doc­
trine was “ sow before you reap” ; the
new to “ reap before you sow” and reap
off of every cuss you can. Well, it has
worked pretty well for those smart boys
—their system is good— don’t blame
them a dadgumed bit—they hold a
string on the thing they sold and can
jerk it back quick if the boys don’t “ pay
the installment.” But it don’t work
good for the “ GROCER AND BAKER
can’t “ repossess” their goods, with the
result that the car boys get about all the
income from our little old crops and the
dealer in the old staples o f life has to
wait “ Till Mary calls the cattle home
across the sands of Dee.”
Yes, yes, there’s nothing new around
here but cars ami the new economic
Yours truly,
G ibbons P oteet .

August, 1929
it was too late, for a shortage was dis­
covered a few days later when the em­
ployee suddenly became ill.
As the result of the operations of
different departments and the bank as
a whole, the auditor makes his analysis
and reports.
An intelligent report
from the auditor is absolutely the best
way in which an executive can ascer­
tain whether or not his department is
functioning properly.
All reports of the auditor are not
equally important nor of equal interest
to all executives, yet certain reports
are of interest and importance to all
executives. Departmental audit reports
are of importance to department heads
only to the extent that they are acted
upon by them.
When reports are made they should
be given due consideration and any
necessary action taken as promptly as
possible. It is not only discouraging to
the auditor to have his report unacted
on but it also, to a great extent, de­
stroys the effectiveness of the auditor’s
work. Lack of cooperation and action
by the executive in these matters are
soon detected by the “ force” and a
large part of the usefulness o f the
auditing department is thus lost. The
form of reports depends to a large ex­
tent on the ideas of the man writing
them but must, of course, conform to
the requirements of the executive for
whom they are prepared.
After all, every bank is in business
to make profits. Of course, the banker’s
first duty is to his depositors but after
every precaution to protect depositors
lias been taken, the aim of every banker
is to make the best possible return for
his stockholders. With this in mind
every bank executive must constantly
be on the alert. The problems of in­
creasing costs, high interest rates paid
for deposits and decreasing returns
from investments, with resultant de­
creased net earnings, have caused much
concern to bankers, especially in the
smaller cities and rural sections.
O be successful the banker must
be well informed about the lines
of business engaged in by his custom­
ers. Without such knowledge he can­
not intelligently pass on lines of credit
nor can he advise with his customers
about their financial problems.
The banker has given much attention
to the analysis of his customers op­
erating costs and ratios, production
costs, turnover, budgets, etc., and right­
fully so, for without these he would be
in poor position to extend credits. He
insists on audits setting out these im­
portant things. But how about the
analysis of his own business? How


(Continued on page 23)

T h e first rem edy o f banking fo r the present is not
branch banking or chain banking, but "better”
banking. It is not so much a question o f system
as one o f m anagem ent that m akes banks safe.

W H ITH ER are
FEW years ago, while still Secre­
tary of Commerce, President
Hoover, in an address before the United
States Chamber of Commerce, re­
marked that we are almost unnoticed
going through a revolution of our
economic life, and that we are passing
from a period of extremely individual­
istic action into an era of “ associational ’ ’ activities.
It is equally true that we are present­
ly passing through a period of farreaching changes in the financial world,
changes which must inevitably affect
the fundamentals as well as the destiny
of our banking system. I will not say
that we are passing through these
changes unnoticed, but it is a fact that
most of us are so thoroughly absorbed
in the daily problems of running our
individual banks that we really have
not the time to study and analyze the
daily occurrences in the financial world,
especially when they do not seem to
have any direct bearing on our own
It seems worth while, therefore, to
stop just a little while to scan the
horizon of our financial world and see
if by thorough study and careful
analysis of present day conditions we
can determine the meaning of the trend
o f recent events and discover if pos­
sible whither the path we are traveling
may lead.
The remarkable commercial and in­
dustrial expansion going on in all lines
of business has necessarily altered in
no small degree the method of carrying
on the banking business. As a conse­
quence banking ideas of 1929 are radi­
cally different from those of 1909. It
seems worth while, therefore, to take
stock and weigh the advantages and
disadvantages which these changes
have brought with them.


T is certainly true that we are living
in an age of mergers and combina­
tions of all kinds, and throughout
America there is a transition from the
small business to the big unit. This is
true in the field of production as well
as in the field of distribution. It has

Federal Reserve Bank of St. Louis

become a daily occurrence to see the
little one-man-business disappear and a
branch of some great corporation take
its place. For a time this tendency
towards the elimination of competition
and the building up of gigantic units
aroused considerable opposition and
antagonism, but more recently the pub­
lic has taken quite a different view and
now seems to have developed a consid­
erable degree of confidence in the
soundness and economies of large scale
NTERWOVEN as our banking sys­
tem is with the economic and busi­
ness conditions of the country, it was
inevitable that this same general trend
towards greater concentration should
spread to the financial world. Time
and space are being annihilated and
goods, thoughts and people are beingtransported at an amazing speed. The
world is becoming more closely knit
together and the banker of today can
no longer live in comfortable isolation
but must be responsive to changed con­
ditions, and play his proper part in the
new order of things. It has been well
said that banks are but the hand­
maidens of business and industry and
must follow their lead.
The gigantic industrial combinations
which have developed require banks
with immense resources to provide com­
mensurate facilities for them. As a
consequence, the movement towards
bank combinations gained great mo­
mentum during the past year, and the
style set by bank mergers in the recent
past overshadows in magnitude any­
thing that has been previously done by
any other line of business, even in this
era of enormous combinations.
Reliable statistics giving the details
of all these bank mergers are not avail­
able, but we do know that during 1928
there Avere approximately 700 bank
mergers, and the number of consolida­
tions already announced in 1929 is
about 250. But the significant fact is
that about 40 of these recent mergers
involved total assets Avell in excess of
12 billion dollars— or more than one-


President, Hibernia Bank and Trust
Company, New Orleans

sixth of all the banking resources of
the country.
But even these figures do not give
any adequate idea of the extent to
which concentration of banking power
has already developed.
The total number of banks has de­
creased from 30,812 in 1921 to 26,213
in 1928. In the same period the re­
sources of all banks rose from about
45 billions to more than 71 billions.
The decrease in number is in large
measure due to the failure, and in some
cases the orderly liquidation, of weak
institutions with inadequate capital
and inefficient management.
However, not an inconsiderable per­
centage of these banks disappeared as
a result of mergers not infrequently
brought about in the case of the smaller
and unprofitable institutions by the
pressure of the Banking Departments.
ORE recently the mergers have
been between some of the largest
and strongest banks in the principal
cities of the country. In these cases
there has usually been a double pur­
pose. Perhaps the primary one was the
desire to create larger units to keep
pace with the greater demands made
by the larger industrial organizations
and to get the benefit of the great
economies which could be accomplished



by such joining of forces. But the
secondary motive was the growing de­
sire to become what Mr. Giannini has
so well described as “ department stores
of finance.”
This accounts for the
fact that we have seen so many mer­
gers of national banks with trust com­
panies, commercial banks with invest­
ment houses, domestic institutions with
those having important international
connections, and banks doing all of
their business in one central office with
those having a large number of
The only official figures in regard to
the number of bank mergers are those
referring solely to member banks of the
Federal Reserve System which indi­
cate a steady increase in number of
combinations during the past ten years.
The record shovrs:
No. of
No. of
Year mergers
It may be stated in this connection
that the decrease in the number of
banks as a result of mergers has not
carried with it a decline in banking
facilities, because usually the consol­
idated banks have continued their for­
mer head offices as branch banks, and
in many cases have added a number of
additional offices besides.
A few years ago this trend towards
giant bank consolidations would in­
evitably have stirred up much popular
protest, and we would have heard loud
complaints to the effect that we are
drifting into a state of financial feud­
alism and economic vassalage to a
limited few. But, strange to say, in­
stead of the sponsors of these gigantic
combinations being brought before the
bar of an outraged public opinion, the
general attitude of the people has be­
come quite tolerant on this subject,
and far from denouncing this reduction
of competition among banks as a move
in the direction of a financial monopoly,
it is in the most unexpected quarters
being hailed with satisfaction as a step
towards greater safety, calculated to
accelerate industrial growth, stabilize
business conditions, and strengthen the
position of the investor.
In not a few instances bank ex­
aminers have publicly encouraged the
movement, and have used the influence
of their office to bring about such con­
solidations. And only last month the
Comptroller of the Currency made one
of the strongest arguments yet pre­
sented in favor of this tendency.
As a consequence it is but natural
to expect that this trend towards
Federal Reserve Bank of St. Louis

August , 1929

M id -C o n t in e n t B a n k e r

mergers and consolidations will go on
unabated and at an accelerated pace,
with the inevitable result that credit
and financial control will be concen­
trated more and more in the hands of
relatively few men in the banking cen­
ters of this country.
In this connection you will, I am
sure, be interested in some very recent
figures which I have had compiled for
the 26 American cities with a popula­
tion of 300,000 or more.
The number of banks in these finan­
cial centres differs greatly but in about
half of these cities more than 75 per
cent of the total deposits of their re­
spective communities are held by three
to five banks. These figures further
disclose the interesting fact that the
256 largest banks in these 26 cities
control $20,318,000,000 out of total
deposits in these same cities of
Inasmuch as the total deposits of all
banks in the country aggregate about
$60,000,000,000, it will be seen that the
256 largest banks control over one-third
of the nation’s deposits, or, to put it
another way, less than 1 per cent of the
total number of banks (approximately
26,000) now hold over 33 1 /3 per cent
of all the deposits of the nation.
And around this question of the
growing concentration of resources
there is likely to wage during the next
few years a great struggle of opposing'
forces, with the ultimate outcome, for
the present at least, very much in
“ Evolution,”
“ makes this development in the bank­
ing world quite inevitable, because only
banks with tremendous resources can
render commensurate service to the
gigantic twentieth century industrial
organizations which have been formed,
and banking must be conducted on a
proportionate scale. ’ ’
“ Monopolistic control is un-Ameri­
can,” comes back the strong challenge
from others who fight against this
record - breaking expansion, because
they feel that these “ associational ”
efforts are being overdone and that the
spirit of enterprise and originality and
the individual initiative of the Ameri­
can business man are being killed as a
They argue that the
benefits of collective efforts are not
great enough to justify the reduction of
the individual from his former high
estate as an independent creator to the
level of an insignificant cog in the tre­
mendous wheel of overorganized indus­
try and commerce.
UT, unfortunately, the discussion
does not end there, for, in addition
to this growing tendency towards con­


centration of resources through actual
mergers, there has of late been great
activity in the formation of groups and
chains of banks in practically every
section of the country. And this de­
velopment has in turn brought about
renewed agitation in favor of state- and
nation-wide branch banking, a question
which has undoubtedly caused more
debate and- controversy in the councils
of the American Bankers Association
than any other banking topic ever did.
During the past twenty-five years the
number of branch banks has practically
doubled each five years, as may be seen
from the following figures taken from
a recent Federal Reserve Bulletin. The
record of branch banks is given as
follows :
In 1900
It is not difficult to figure out how
few years it would require to almost
entirely eliminate unit banking if this
development continued at the same rate
of speed. Moreover, some of our lead­
ing bankers are of the opinion that
nothing can stop nation-wide branch
banking, and that it is coming much
sooner than most people anticipate, the
prediction being frequently made that
it will require not more than five years
at the most to overcome the present
opposition to the plan.
T is barely two years since the McFadden-Pepper bill became a law.
Few changes in our banking law* have
ever been the subject of more bitter
debate than this Act. It was de­
nounced as a “ branch banking bill ’ ’ by
one group and attacked as an “ Anti­
branch banking” bill by another. The
advocates of branch banking were not
satisfied because it did not go far
enough, while the supporters of the
unit banking system felt that the bill
was dangerous, not only because of
the privilege it gave to national banks
to open additional branches with cer­
tain restrictions, but even more because
of the fear that future amendments
might let the barriers down still more
and provide for the further extension
of branch banking in a larger territory.
The McFadden-Pepper bill was de­
signed to enable the national banks of
the country to meet the competition of
state chartered institutions as to
branches as well as to some other de­
tails o f operation, and its passage was
hailed as offering definite assurance

Federal Reserve Bank of St. Louis


M id -C o n t i n e n t B a n k e r

August, 1929

A tm ater K en t

r ad io

Now 32 acres— now doubly the largest radio factory in the world

ACH YEAR we make a national


R adio, are felt by A tw ater Kent

survey to find out what the public
and the retailers really want in radio.
Upon the reports of this survey,

dealers in large sales volume, rapid
capital turnover and secure profits.
Bankers, with their appreciation of

supplemented by constant exchange

facts as distinguished from guess­

of views with the trade, we base our
manufacturing and sales policies.

work, will appreciate what this means

Ascertained facts, thus massed be­
hind the production of Atwater Kent

Atwater Kent dealers come to their

when the financial requirements of

A . A tw a te r Kent, P residen t

4748 Wissachickon Avenue

Philadelphia, Pa.


M id -C o n t i n e n t B a n k e r

against the further disintegration of
our national banking system.
However, this hope has not material­
ized, for within six months 79 national
banks, with aggregate resources of
nearly $3,000,000,000, have taken out
state charters, and as a result of re­
cent mergers the national system has
lost some of its oldest and proudest
names. It is hardly fair, however, to
attribute these defections from the na­
tional system to the question of branch
banking, because all the institutions
that changed their charters remained
members of the Federal Reserve Sys­
tem, and as such will have no greater

latitude in expanding their branch
offices outside of their city limits than
they would have had if they had re­
mained in the national system.

banks to remain in statu quo only be­
cause Congress desired to create a situ­
ation under which this movement could
be studied for a few years without per­
mitting it to expand.
OWEVER, Comptroller Pole, in a
The Comptroller then pointed out
_ speech delivered before the Mary­ “ that in view of the existing situation
land Bankers Asociation recently, ar­
with reference to unit banking, the
gues very strongly that the McFaddencurtailment of branch banking by Fed­
Pepper bill was not intended to be a eral Statute, and the increasing number
permanent settlement of the branch
of bank mergers under trust company
banking question, and that it was
charters, the time appears to be oppor­
merely a compromise measure. He
tune to re-examine the basic structure
further expresses the view that the
of our entire banking system and to
McFadden-Pepper bill permitted all
formulate a new banking policy to
branches already operated by member meet present day conditions.”
The Comptroller leaves no doubt that
he intends before long to lay before
Congress new amendments on our bank­
ing laws, but states that he will call
into consultation a group of bankers
and students of finance to assist him
in the formation of such recommenda­
similar attitude, but the conservatism
It looks very much, therefore, as if
and individualistic character of French
the banking fraternity will once more
business psychology is a stubborn
be drawn into a long and bitter debate
as to whether the branch and chain
check to alien infiltration. Foreign
banking system or the unit banking
domination is automatically excluded
by the regime now in control in Spain, system is best adapted to the needs o f
American business and best suited to
and while Italy is desirous of obtain­
American ideals.
ing our aid in the upbuilding of her
In any event it must be conceded
industries, she does not wish control
that one of the predictions of the op­
of those industries to pass beyond her ponents of the McFadden-Pepper bill
has come true very quickly. They ar­
The situation would seem to be that
gued at the time that the passage of
American interests will not be per­ that bill would drive a wedge into the
mitted to exceed a certain point in their independent bankers’ stronghold, and
stock investment, in British or Conti­ that having once succeeded in putting
nental enterprises, which carries voting their foot in the door the advocates of
rights, and that whereas they may have branch banking would spare no effort
a voice in management they will not
to open it a little wider at every op­
dominate. It may well be, however, portunity.
that our participation will enable us to
Of course, as yet branch banking
arrange favorable terms regarding for­
outside of city limits is largely con­
eign markets, that otherwise would not
fined to a few states, for out of 3,230
be possible.
branch offices in operation at the end
The United States has been unspar­
of June 1928, 1855, or more than half,
ingly criticised because our tariff regu­ were reported for banks located in
lations make difficult the payment of
three states— California, New York,,
European debts in goods, although
and Michigan— and over 1,500 were op­
there is no evidence that European
erated by banks located in four cities
countries are permitting home indus­
of these three states, namely, San
tries to be menaced by competitive
Francisco, Los Angeles, New York,
merchandise imported under low tariff and Detroit. California had 865 branch
offices, being about two-thirds of all
schedules. Indeed the contrary is the
case, and tariff barriers are one of the
the banking offices in that state. New
most serious obstacles to European re­ York had 607 branches and Michigan
construction. In the matter of invest­ 422 branches.
Under present provisions of State
ment, however, the United States o f­
Banking Codes, 10 states permit the
fers sharp contrast to the rising tide
establishment of branches in and out­
of nationalism in Europe. The world
side of the home city of the parent
is free to buy and sell in the security
bank; 12 states permit the establish­
markets of the United States, and to
erect such industrial establishments and ment of branches only in the home
city or county of the parent bank; 20
make such agreements, under the laws
of the country, as may be deemed prac­ states do not permit banks to establish
any branch offices either in or outside^
tical and expedient.


Several European Companies ¿M ove to
Limit Foreign Stock Ownership
NE of the theories underlying our
absorption of foreign securities
has been that investment in bonds of
industrial undertakings which gives no
participation in management, would in
time change its direction and become
a movement toward purchase of stock
issues with consequent voting control.
Commenting on this situation, the
Central Union Trust Company of New
York calls attention to recent develop­
ments in Great Britain and on the
Continent which indicate that this
theory may become fact in part only.
The action of the Marconi Interna­
tional Marine Communications, Ltd.,
in ruling that foreign stock ownership
shall be restricted to 25 per cent of
issued shares and that directors must
be natural-born British subjects, fol­
lowing action of an analagous nature
by Imperial Airways and the General
Electric Company, are definite evi­
dence of the present trend.
The steady absorption of British
public utilities in Latin America by
American interests has placed the sit­
uation in high relief, and many British
industrialists and exporters believe
that in a comparatively short time
Latin America will be a closed market
to a -wide variety of their products.
It is argued that several of our indus­
trial groups are engaged not merely in
selling their merchandise, but in buy­
ing markets.
The German press is keenly alert
to the situation and public attention
is being repeatedly called to the par­
ticipation in German industry by for­
eign, particularly American, interests,
and to the danger of alienation. The
discussion is especially active at the
moment regarding the automobile
trade. The French press manifests a

Federal Reserve Bank of St. Louis

August, 1929

August, 1929
the home city (although 8 of these
states permit the continuation of
branches established prior to enactment
of prohibitory legislation). In 6 states
where no branches are presently op­
erated the law is silent in regard to
the matter.
HAT this subject of branch bank­
ing is one that is close to the
hearts of middle western bankers is
demonstrated by the important part it
has had in state banking conventions
during the past few years. I may
be mistaken, but I believe I see signs
that even in the Middle West the oppo­
sition is not as strong as it once was ;
at least I know that many of those who
have most loudly protested against
branch banking have found it to their
interest to resort to group or chain
banking by controlling a number of
strategically located banks under the
same management. In Illinois, while
no branches are permitted, and Chicago
banks can do business only in one office,
it is nevertheless true that out of the
316 so-called outlying banks, all of
which are theoretically independent in­
stitutions, a large percentage belong to
various groups containing anywhere
from two to sixteen banks. It is hard
for me to believe that beyond this de­
velopment of group banking there does
not ultimately lie the next logical step,
i. e. branch banking if only in a limited
form to begin with.
On the other hand, I may be wrong.
You may still be as strongly opposed as
ever to the recent trend in banking
conditions, and prefer to have the unit
banking system continue undisturbed.
But if so, let me tell you that you are
doomed, to defeat from the start if
you fail to recognize the fact that you
are facing a new and bitter battle over
this question, and one in which the ad­
vocates of the branch banking system
have found new and powerful allies,
some of them high in the administra­
tion of our Government. For at least
two of the members of the Federal Re­
serve Board, namely, Vice-Governor
Platt and Comptroller Pole, have al­
ready publicly expressed their senti­
ment in favor of such a change, and
there is reason to believe that they are
not alone in their views among the
powers that be in Washington. How­
ever, in the last analysis it will be im­
possible to make a great deal of head­
way with nation-wide branch banking
unless and until the various states
change their laws on the subject, and
in the end the battle will have to be
fought out more in the legislatures of
the different states than in the halls
of Congress in Washington.
Personally, I am neither an advocate

Federal Reserve Bank of St. Louis


M id -C o n t i n e n t B a n k e r

of the branch banking system nor do I
wish to be considered as its opponent.
As chairman of the Economic Policy
Commission of the American Bankers
Association, it has simply fallen to my
lot to become a close student of the
problem, and I am striving to present
the facts as I find them without pre­
judice on either side. However, I be­
lieve it takes no great vision to foresee
that group, chain, and branch banking
will continue to develop unabated and
at an even more rapid rate whether
such a development may be to our
liking or not.
Nor do I think that we have any
right to look upon the question from

a narrow and selfish standpoint. If
the inexorable pressure of the times
makes it necessary for our banking
system to go through a period of re­
adjustment and evolution in order to
keep pace with the tendency towards
large scale enterprises everywhere, we
may have to yield to the change.
I f on the other hand there is good
reason to believe that our passage from
the Unit Banking System to a more
concentrated form of financial control
is not in the interest of general
economic welfare, and that the Nation
would not benefit by the individual
losses of autonomy and independence,
then bankers cannot be blamed for

(HE enthusiastic reception accorded Jenny Lind in 1851
was an early indication o f Nashville’s determination to
enjoy the finer pleasures o f life. Appreciative Nashville audi­
ences have heard the world’s greatest artists. And Nashville in
return has sent forth many to the world’s applause. Its splendid
educational institutions have gained for the city a position of
cultural eminence Their influence for the betterment of the
city and the refinement of community life has attracted thou­
sands of worthwhile residents, and has aided the growth and
prosperity o f the city until today, Nashville is known as a city
of culture as well as of substantial business interests.

J e n n y L in d , t h e S w e d is h N ig h t ­
in g a le , g a v e t w o c o n c e r t s a n d a
m a t in e e in N a sh v ille M a r c h 31
a n d A p ril 2, 1851, u n d e r t h e m a n ­
a g e m e n t o f P. T . B a r n u m . S u c h
a m u s ic a l tr e a t h a d n ev er b e fo r e
b e e n e x p e r ie n c e d h e re . I m m e n s e
p r e p a r a tio n s h a d b e e n m a d e t o
p a c k p e o p le in t o t h e A d e lp h i by
b u ild in g n ew g a lle rie s a n d u tiliz ­
in g sp a ce g e n e r a lly . D e m a n d ( o r
sea ts w as s o k e e n th a t c h o i c e
sea ts w ere a u c t io n e d , t h e t o p
b id , t w o h u n d r e d d o lla r s , b e in g
a s ta rtlin g p r ic e fo r th o s e d a y s.
O th e r tic k e ts , six d o lla r s — s ta n d ­
in g -r o o m , th r e e d o lla r s . T h e
h o u s e w a s p a c k e d t o ov e rflo w in g ,
a n d e v e ry o n e w a s filled w it h e n ­
th u s ia s m .

One of the best illustrations o f Nashville’s remarkable expan­
sion is the fact that today, the more than thirty thousand
customers o f the American Banks Group outnumber the entire
population of Nashville at the time of Jenny Lind’s visit.
There is a reason for this huge patronage. Come in and let us
explain what we mean by “service” and you will gain a new
conception o f the usefulness o f a modern bank to its depositorsThis Airways Beacon, placed atop
the American Trust Building, may
fie seen from a distance o f 40 miles.

ä Amerigan


'¡American National N A S H V I L L E - ^ S ' p a S y ^

N ational Com pany





August, 1929

M id -C o n t i n e n t B a n k e r
Y e o —The Original Rotary

A Service


o f this Great New Bank
is a

Yeo Rotary
The Yeo Rotary
in the National
Bank o f C o mmerce at Houston
i s b u t another
example of Yeo
service. It is of
special design and
finish, in rich non­
Beued i c t m e ta l, to
match the bank’s
beautiful interior.
Thus does t h e
Yeo Rotary keep
always up-to-date !
Exclusive fea­
tures o f th e
Y e o R o t ary:

Its r o t ar y

w eig h s 1,000
lbs. C y lin d er
w a l l s 3 l/i "
thick. Electric­
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fo r banks so
equipped. D e­
posit chest is

d y nami t e -

p r o o f . 100%
w a t e r t i gilt,
10 0%
crookp ro o f, 100%
b u r g larproof.
And no up­
The officers of this bank realize that,
by rendering this night service to its
customers, they are equipping their in­
stitution with a proven source of new
accounts and larger deposits. They al­
so know that, because the Yeo Rotary
eliminates the “ three o’ clock line” at
their windows, they will rid their staff
of the expensive overtime work neces­
sary to catch up with last-minute de­
Do you want to cut down your over­
head and increase your deposits? In­
stall a Yeo Rotary!
Manufactured and Installed by

Bank Vault
Inspection Co.
Samuel P. Yeo, President
Offices: 5 South 18th St., Philadelphia, Pa.
Sales Engineers in A ll Principal Cities

Mail Coupon!
Bank Vault Inspection Co.,
5 South 18th St., Philadelphia, Pa
(check square for information.desired)

□ Please send complete information on
the Yeo Rotary Night Depository.
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Name o f Bank ..........................................




8— MCB

Yeo“ The Original Rotary
Federal Reserve Bank of St. Louis

using their combined influence to pre­
vent if possible the undue spread of
the chain or branch bank system and
fight for the maintenance of their inde­
pendent institutions.
Certain it is that the problem is be­
coming increasingly important, and we
shall have to determine just what our
attitude should be towards this ever­
growing tendency of having all our
financial institutions concentrate in one
form or another into a few great sys­
tems. In 1820 we had but 300 banks
in all the United States. One hundred
years later these had multiplied more
than one hundredfold to over 30,000
banks. Evolution now seems to have
turned back into the opposite direction
and the time may come again when we
shall have an even smaller number of
banks than we had in 1820.
This prediction would almost cer­
tainly come true if such a development
were not likely to be at least consid­
erably delayed if not entirely prevented
by restrictive legislation existing in our
various states.
HETHER the concentration of
banking resources through the
affiliation of banks into groups and
chains is any more desirable than
branch banking is a question on which
there is a great difference of opinion.
I had occasion to find this out when in
my capacity as chairman of the Econ­
omic Policy Commission, I recently
started an investigation for the pur­
pose of presenting if possible a national
picture of this group and chain bank­
ing problem.
In our effort to get some reliable
statistics on the subject, and in the
hope of receiving some practical help
and suggestions along that line, we ad­
dressed ourselves to all the bank com­
missioners in the United States, with
the request that they give us their
views on the subject and also advise
us to what extent apparently inde­
pendent banks in their respective states
were actually owned and controlled by
other banks, holding companies, and
investment trusts.
We received the cordial assistance
of these commissioners as far as they
were able to give it, but most of them
quite frankly confessed that they really
had no means of getting at these facts,
first, because their examinations never
touched on the question of who owned
the stock of the banks, and secondly,
because even when they had reason to
believe that an institution was prac­
tically owned by some other organiza­
tion they found that the method of
such control was often so hidden that
no amount of investigation would dis­
close the actual situation.


We have therefore failed so far in
compiling any figures which would even
approximately show the total resources
of apparently independent banks which
are really controlled members of groups
or chains. But one has but to follow
the reports contained in the daily
papers and the financial press to be
convinced that the total membership
of such groups and chains is increasing
at an amazing rate.
About three years ago Dr. H.
Parker Willis testified before the Sen­
ate Committee that at least one thou­
sand so-called independent banks were
included in chain systems. I think it is
ultraconservative to say that this num­
ber has at least trebled since that time
and that today considerably more than
10 per cent of all our banks are inde­
pendent only in name but not in fact.
The diagnosticians cannot agree as to
what really ails our banking system,
and the doctors are inclined to prescribe
a variety of remedies. It is small won­
der, therefore, that there should exist
such violent differences of opinion on
the subject in the rank and file of our
banking fraternity.
The small unit bankers faced with
the possible loss of their independence
naturally view this growing tendency
towards concentration with suspicion
and anxiety and are inclined to fight
its further spread with all the weap­
ons at their command.
In several states they have recently
succeeded in having new legislation
enacted to prevent the further spread
of chain banking, although it is diffi­
cult to see how laws can well be devised
that will effectively halt the onward
march of this economic development,
especially as legislation aimed merely
to curb chain banking and holding cor­
porations is apt to seriously affect
other forms of investment.
Chain banking has its faults as well
as its virtues, and the old saying un­
doubtedly applies that “ No chain is
stronger than its weakest link.” But
I doubt that we are likely to stop its
growth or cure its shortcomings by
such legislative restrictions.
O me the most hopeful sign in this
development is the fact that lately
some of our able bankers — men of
vision and courage— have come out into
the open and, doing away with much
of the mystery surrounding the forma­
tion of such chains in the past, have
declared their purpose to engage in
this modern form of banking. Thus a
number of outstanding and well-man­
aged banks in various sections of the
country have definitely announced their
plans for welding a large number of
sound banking institutions in their re-


August, 1929
spective territories into larger and, in
their judgment, more effective organiza­
tions by operating them under the
group or chain system. To that extent
at least the chain banking system has
been improved.
But who can doubt that it is only one
short and logical step from this form of
chain banking to branch banking, and
that the development of these groups
is but the prelude to renewed efforts to
obtain legislation to later convert these
controlled unit banks into a nation­
wide system of branch offices?
Unit bankers may as well be pre­
pared, therefore, to hear repeated once
more the perennial arguments in favor
of branch hanking which members of
the A. B. A. have so frequently listened
to in the past. And bear in mind that
the favorite as well as the strongest
argument of those who favor branch
banking is the larger number of fail­
ures we have had in the United States
among the unit banks. Unfortunately,
that particular criticism is well justi­
fied, and the record of the Unit banking
system for the past nine years is not
one to be proud of. For during the
fiscal years from June 20th, 1920, to
1928, a total of 4,458 state, private and
national banks have closed their doors.
Of course, most of them were very
small institutions, a large percentage
of them with a capital of less than
$25,000 and located in agricultural dis­
tricts where economic conditions had
been exceptionally bad.
Most of the banks had been a factor
in the development of their respective
communities, but their executives over­
looked the absolute need for diversifi­
cation even in a small institution, and
when as a result of the aftermath of
the war, values of both land and pro­
ducts tumbled at an almost unpre­
cedented rate, they had no secondary
reserves to fall back on nor any liquid
assets with which to tide over the
emergency. The inevitable result was
the wholesale closing of these unit
However, neither chain nor branch
banking is necessarily a panacea for
such conditions. Over expansion and
frozen credits can occur under one sys­
tem as well as another. This is best
illustrated by the fact that within the
same period covered by the above sta­
tistics we had failures such as the
Bankers Trust Co. chain of Atlanta,
which a few years ago caused 83 ap­
parently independent banks in two
states to close their doors within 48
hours, the failure of the Home Bank
of Canada with 78 branches, and the
practical failure and forced absorption
Federal Reserve Bank of St. Louis


M id -C o n t in e n t B a n k e r

^06 Î


o9 '


X "

X *

■ N


Yo u r O u s t
C a s h an A. B. A. C

im e

Every t im e your customers cash an
A .B .A . C heque they see the nam e of
your bank and the signature of one of
your officers. Throughout the trip they
are thus frequently reminded of your
bank and the com pleteness of your
banking service. W h y not take ad­
vantage of this opportunity to build
good-will by re co m m e n d in g A . B . A .
C heques to your customers?
A. B.A. C heques a reth e official travel
cheques of the A m erican Bankers
A s s o c ia t io n . C e r t i f i e d by B a n k e r s
T ru s t C o m p an y of N e w York, A.B .A .
Cheques are accepted throughout the
world. T h e f a c t t h a t m o r e t h a n 6 0 , 0 0 0 , 0 0 0 cheques have been negotiated
during the last 2 0 years attests to the
degree of their acceptance.
A.B.A. cheques are convenie nt to
c a rry , a ffo rd c o m p l e t e p r o te c tio n
against loss or theft, and abroad com ­
mand the favorable exchange rate of
bankers’ paper.
Your b an k ’s n a me on A. B. A. Cheques
creates a favorable impression on your

A. B. A.

/ i V\






August, 1929

M id -C o n t in e n t B a n k e r

of the Merchants Bank of Canada with
400 branches.

to the REST o f

A IR MAIL and air passen■^•ger service, faster train
service, improved transit
service through the Federa_
Reserve System, a great
movement of population
here from all over the At­
lantic and Middle Western
States— all these have made
Southern California closer,
more familiar and more
important to the rest of the
United States.
e c u r i t y -F i r s t
Na t io n a l B a n k
o f Los A n g e l e s


Resources over 600 m illion dollars

The great regional bank of the
southern part of California,
with a Branch system in prin­
cipal cities from Fresno and
San Luis Obispo south to the
Mexican boundary.
2 4 -H O U R T R A N S I T service w ith
speeded-up communications over
the hank’s system.

The logical Southern California
Banking Connection.

e c u r i t y -F i r s t

N a t io n a l
Co m p a n y

tA n Investment Company, identical in
ownership w ith Security-First N a tio n a l
The m any
branches o f the B an k , through which
S e c u r i t y -F ir s t N a t i o n a l C o m p a n y
reaches the investing public, give it
extraordinary facilities f o r the sale o f
high-class investm ent securities.
Federal Reserve Bank of St. Louis

FTER all good banking is not a
matter of size. A properly con­
ducted small country bank can be as
safe as a large city institution with
many branches. Success in the bank­
ing field depends on good management,
whether the unit' be large or small. It
cannot be denied, of course, that larger
institutions can and usually employ
more capable men with greater ex­
perience and sounder judgment than
can the average small unit bank. They
also have on the whole better facilities
for standardizing their business, keep­
ing themselves properly informed, and
thus escaping many losses resulting
from actual operations as well as from
poor credits.
However we have reached a point in
our profession where most of the de­
ficiencies of the small town bankers
can be supplied, not necessarily by
making any fundamental changes in
our banking system or by giving up
any of the unit bankers’ independence,
but merely by bringing about a better
spirit of co-operation and mutual help­
The time has passed when a banker
can afford to “ go it alone” and ignore
what his neighbors around him are
doing. Individualism in banking must
in a large measure give way to co­
operation, though not necessarily to
combination. We need to develop a
new spirit of mutual respect and con­
fidence in each other, and to realize
that only through combined efforts and
concerted action can we hope to meet
the changed conditions and avoid seri­
ous financial troubles in the future.


E should strive to get better and
more uniform banking laws and
closer supervision by proper authori­
ties. We should co-operate to curb
the undue increase in the number of
banks, especially those of a capitaliza­
tion of less than $50,000. At the recent
Los Angeles convention, Mr. Bone,
then bank commissioner of Kansas, in
an address in which he discussed the
troubles of the banking departments,
stated that what our unit banking
system is suffering from is “ too many
banks and too few bankers.” This is
very well expressed.
Some years ago there was a perfect
mania for starting new small banks
throughout the country, and too often
these were established not because of
“ public convenience or necessity,” but
because someone wanted to enjoy the
dignified standing of being the banker
of his community. There is no doubt


that the danger of bank failures would
be greatly reduced if we could stop
this unnecessary multiplication of the
number of small new banks. The main
reason for our troubles in the past has
been that so many banks were poorly
managed by so-called bankers whose
previous knowledge of credits and
finance was practically nil, and who,
with the best intentions to do other­
wise, permitted their banks through
lack of experience and shortsighted
policies to get into such a weak and
unsound condition that they were ut­
terly unable to withstand the effects
of the deflation period, and went down
in the first financial storm that came
UT the first remedy for that con­
dition is not branch banking or
chain banking, but “ better” banking.
It is not so much a question of the
system as it is one of management that
makes for the safety of the banks. No
new laws, no matter how carefully de­
vised, can ever be regarded as a sub­
stitute for sound policies of administra­
tion. The unit system is on trial and
must vindicate itself. It depends on
the unit bankers themselves whether
the system shall continue to live or be
ultimately swept away by the rising
tide of branch and chain banking.
However, I can see no good reason
why any of us should take a pessimistic
view of the situation, nor display any
undue anxiety for the future, for after
all an intelligent and alert banker can
operate a safe and sound institution
under almost any kind of a law.
But it behooves us to put our house
in order and take the initiative in cor­
recting the evils from which the unit
banks have suffered. For the final test
will be what system really renders the
best service. In other words, it will in
the end be a question of the survival of
the fittest. If unit banks are properly
and profitably run by experienced ex­
ecutives, if they observe sound banking
principles, if they get together and
formulate effective plans of co-opera­
tion, and if the public interest and
public welfare are always their prime
consideration, there can be no doubt of
the ultimate outcome. We have come
to the crossroads of our financial fu­
ture, the choice lies between improved
banking practices among the unit banks
or ultimate absorption by a centralized
system. The answer is largely in our
own hands and notwithstanding the
inroads being made by the branch and
chain banking system, I believe that
our unit banking system will live at
least for many years to come.


August, 1929


M id -C o n t i n e n t B a n k e r

The Executive and the


(Continued from page 14)

carefully does the banker scrutinize his
own costs'? Has he, through careful
investigation, analyzed his own busi­
ness so that he knows where profits are
being made and losses sustained and if
so what steps are being taken to stop
the losses'?
These matters of costs and analyses
are now having attention in most
banks, but there is yet much to be ac­
In 1927 the Committee on Bank Costs
of the New York Bankers Association
reported to that body. This report is
the result of much work and study and
is deserving of the attention of every
bank executive and auditor. Far too
little has been done in this direction.
Why should there not be some stand­
ardization of expenses and costs by
which every bank, no matter what the
size or where located, will be able to
measure its own operations.
It would be difficult to formulate a
system of accounting universally adapt­
able to all banks for no one institution
is so precisely like another that the
same procedure would be exactly ap­
plicable, but this would in no wise
affect the working out of a standardi­
zation of expenses and costs.
There is no uniformity of practice
regarding auditors’ reports but each
institution uses such reports as are
best fitted to its requirements. I shall,
therefore, not set out any specific re­
port forms for they would probably be
adaptable only to the bank using them,
but I will mention some of the general
reports in which the executives should
be interested.
Daily Statement— This statement to
be in condensed form, showing re­
sources and liabilities and so prepared
that it will indicate the liquidity of its
resources, the amount of its reserve
and the paper that is eligible for re­
discount with the Federal Reserve
A comparative statement with pre­
vious week, previous month and pre­
vious years is of interest.
Overdrafts— Statements showing the
amount of overdrafts on the books at
the opening of business each day.
Past Due Paper— Statement showing
the amount of paper that was not paid
at maturity. This statement to be pre­
pared weekly or monthly.
New and Closed Accounts — State­
ment showing names and amounts of
Federal Reserve Bank of St. Louis

Guaranty Trust Company
of New York
140 Broadway
L on d on



L iv erp ool

H avre

Antw erp

Condensed Statement, June 29, 1929
Cash on Hand, in Federal Reserve Bank,
and Due from Banks and Bankers
U. S. Government Bonds and Certificates
Public Securities...........................................
Other Securities ...........................................
Loans and Bills Purchased........................
Real Estate Bonds and Mortgages.........
Items in Transit with Foreign Branches
Credits Granted on Acceptances.............
Real Estate ...................................................
Accrued Interest and Accounts Receiv­
able ..............................................................
Capital ................................... $70,000,000.00
Surplus .................................. 90,000,000.00
Undivided Profits ............. 26,418,067.72
Outstanding Bills .........................................
Bills Payable .................................................
Accrued Interest, Reserve for Taxes,
etc. ................................................................
Agreements to Repurchase United
States Securities Sold ............................
Acceptances ...................................................
Liability as Endorser on Acceptances
and Foreign Bills ....................................
Deposits .............................. $981,193,799.47
Outstanding Checks . . . .




M id -C o n t in e n t B

new accounts opened and accounts
closed with balances withdrawn.
Investments — Statement to be pre­
pared at least once a month showing in
detail the amount of securities on hand
at a certain date, with the interest
rate at which they are being carried.
Earning Statement — This statement
to be made up at the close of business
the last day of each month and to show
the gross earnings and expenses in de­
tail. Every three months the state­
ment should also include the gross earn­
ings and expenses for the quarter, to
be compared with the earnings and ex­
penses of the previous year, and a final

statement drawn up at the end of the
year showing the gross earnings and
expenses for the year and the figures
of the previous year for comparison.
Statement Showing Various Rates at
Which Investments, Loans, Etc., Are
Carried and Rates of Interest Paid on
Deposits — This statement to be pre­
pared the end of each month and the
figures arrived at compared with pre­
vious month which will indicate the
rise or fall in the return being received
on the earning assets of the bank.
Run-Down Accounts—Each month a
statement showing accounts whose pre­
vious monthly balance is considerably


T o the summer tourist the attractive
feature o f his “ Circle T our” is the
time he m a y' spend at each point o f
interest on the way.
But w h y ' send your collection items
on vacation?—a d ay' in one bank, a
night in another, with innumerable
side trips into Post Office boxes at
y o u r expense.
Take advantage o f o u r continuously
operating direct collection service.
All items received at par.

. . . THE . . .



Incorporated X8o3

Capital and S u rp lu s..............................................$50,000,000
Federal Reserve Bank of St. Louis

August, 1929

a n k er

below the average balance heretofore.
With this information the customers
can be approached and it can be de­
termined whether the drop of the bal­
ance is due to dissatisfaction or other
Statement of Large Accounts Show­
ing Balances Over Certain Amounts—It is desirable to have this statement
prepared each week, showing the bal­
ances of large accounts and the amount
of their borrowings.
Loans Against Average Balances —
This statement to be prepared once a
m o n t h showing average balances
against the average loans. This will
show whether the borrowing customers
are maintaining proper balances in pro­
portion to their loans.
Continuous Loans— This statement to
be prepared every six months, not less
than once a year, and to show loans
which have been running continuously
for more than one year.
Balances and Loans Separated as to
States—Balances and loans assembled
in this vray and grouped according to
sections will show the amount of de­
posits from each section and the
amount loaned in each section.
These are some of the more import­
ant and useful general reports which,
of course, may be supplemented by such
others as may be required by the ex­
ecutives of each institution.
UDITS of the various departments
throughout the bank should be
made at irregular intervals. As a de­
partmental audit is completed a report
should be prepared showing the condi­
tion of the department as viewed by
the auditor.
This detailed report
should go to the officer in charge of
bank operations, together with a sum­
mary, calling his attention to any dis­
crepancies or other criticisms of im­
portance. A copy of the report also
should go to the manager of the de­
partment audited.
The head of each department is of
course interested in the operating re­
sults of his department. Comparative
reports are interesting and useful.
These reports should be clear and con­
cise and deal mainly with facts rather
than opinions. Graphs, when properly
designed, add materially to the effec­
tiveness of such reports.
I believe if more graphs were used
in reports they would more vividly
portray the salient comparative points.
Probably one reason so many reports
die a sudden death when they reach the
executive is that they are not prepared
in such a way that they are readily
digested. In other words— the officer
must “ dig in ” and read columns and


August, 1929
sometimes volumes of figures to get the
facts in which he is interested.
To summarize, the auditor should
prepare reports which reveal the great­
est possible amount of information to
assist the executives in forming proper
policies. When these reports have been
prepared they should have careful con­
sideration by the executives.
through close cooperation of the ex­
ecutives and auditor can proper super­
vision be maintained and departments
function to the highest degree. And
unless every department is functioning
to the highest degree the bank, as a
whole, has not reached that efficiency
whereby maximum returns are avail­
able for stockholders.

B iggs Is V ice-P residen t
St. L ou is U n ion Trust
Davis Biggs, for the past five years
trust officer of the National Bank of
Commerce, has been elected vice-presi­
dent of the St. Louis Union Trust Com-


M id -C o n t in e n t B a n k e r

S tatem en t o f H ib ern ia B an k
S h ow s In crea se
The semi-annual statement of the
Hibernia Bank and Trust Company of
New Orleans as of June 30, 1929,
showed total resources of $62,700,000
as compared to $54,600,000 one year
ago. Deposits this year are $50,200,000 which is an increase from $48,200,000 as of June 30, 1928.
The capital account, which includes
surplus, undivided profits and reserves,
totals this year $6,520,000 while the
amount last year was $4,940,000. This
increase is accounted for by a new cap­
ital stock issue authorized by the stock­
holders for the purpose of taking care
of the growing business of the bank.

The regular quarterly dividend of
5 per cent was distributed to stock­
holders on July 1st and the usual quar­
terly dividend on salaries divided
among the employees, this distribution
being based on salaries and length of
He was a slick-haired sheik and he
Avas superbly conscious of all his man­
ifold physical attractions as he drew
his car up beside a solitary girl hiker
on a lonely road.
“ How about a ride, girlie? ” he
“ Are you going east?” she asked.
“ Yes,” he replied, preening himself.
“ Look out for the ocean.”




pany, it was announced by Isaac II.
Orr, president of the trust company.
Judge Biggs is considered an author­
ity on probate and fiduciary matters.
He was born in Pike County and prac­
ticed law in St. Louis with his father,
Judge William H. Biggs, Avho was
Judge of the St. Louis Court of Ap­
peals for twelve years.
During the late war, Judge Biggs
was appointed legal adviser of the Ord­
nance Department of the United States
Department of the United States Army
for the St. Louis District. He served
as commissioner of the Court of Ap­
peals for five years following the war.
He is a graduate of the University
of Virginia and Washington Univer­
sity Law School.
Federal Reserve Bank of St. Louis

A c h e c k is a very important financial
document, often one that should re­
main for many years a permanent,
usable record. With this consideration
the new Super-Safety Check Paper
was conceived. It is a superior kind
of paper designed only for check use
— a strong, tough, light paper with a
life at least seven times longer than
that of the usual check paper.
This remarkable new, genuine check
paper remains fresh and strong for
many, many years, with no tendency
to become brittle or to crack and
And long life is only one of its fea­
tures. The new Super-Safety Paper
has an extraordinary ability to resist
sharp folding. It has a delightful silky
Avriting surface on which ink instantly
“ takes” without blurring or blotting.
Its strength is phenomenal— the nat­
ural result of long, tough fiber and
the minimum sizing used in its making.
The new Super-Safety Checks are
among the most distinctive and most
beautiful checks ever offered to banks.
They carry a “ service of protection”
for depositors by exposing imme­
diately with a glaring spot any at­
tempt to alter them. These new checks
are never sold in blank sheets. They

are made only to individual order,
and to prevent counterfeiting their
manufacture is guarded as the govern­
ment guards bank-note paper. The
superior quality of these fine new
checks is immediately evident in their
unusual durability and strength as
well as in their velvety writing sur­
face and beautiful tints.
Super-Safety Checks are surpris­
ingly low-priced. They provide a dig­
nified means of advertising your ser­
vice. Let us send you samples. Return
the coupon today. Bankers’ Supply
D iv i s io n , T h e T o d d C o m p a n y .
(Established 1899.) Rochester, Chi­
cago, New York, St. Paid, Denver,
Dallas, Birmingham, Buffalo.
Ba n kers’ Su p p ly D ivisio n


1151 University Ave., Rochester, N. Y.
Send me more information about
Super-Safety Checks made of the new
Super-Safety Paper.
Name of Bank___________________________
Name of Officer_________________________
Street __________________________________ _



M id -C o n t in e n t B a n k e r

August, 1929

oAbout New York and Eastern Bankers

Irving ‘Trust Company Building
now being erected at
One W all Street, N ew York

T ested
Banking Service
"O ur business relation s w it h you
h a v e been extrem ely p lea sa n t
a n d most satisfactory."
"O ur connection w it h y o u r b an k
h a s been a long a n d p lea sa n t one.
IV?f e e l thatyou h a v e trea ted our
v a r io u s a ffilia te d corporations
lib er a lly a n d h a v e g r a n te d them
accom m odations w it h in reason
a t a l l times. ”

T hese statements by customers, one
of whom opened an account with us
in 18 9 0 , the other in 1908, were
prompted by the competent service
which Irving Trust Company has
given them for many years.
This Company’ s Out-of-Town
Office, which is a complete banking
unit devoted solely to handling the
business of out-of-town correspon­
dents and their customers,offers tested
service developed through many years
of wide experience.
This Company’ s resources of over
$6 50 ,000,0 00 are sufficient to meet
every seasonal demand.

O U T - O F - T O W N O F F IC E




C ompany

Woolworth Building, New York
Federal Reserve Bank of St. Louis

James N. Chrystie has been appoint­
ed assistant manager of the foreign
department, and John Thompson, as­
sistant secretary of the London offices
of the board of the Guaranty Trust
Company of New York.

were: George M. Lindsay, Bancamerica-Blair Corporation, vice-president;
Milton S. Harrison, Field, Glore &
Company, secretary; John W. Cutler,
Edward B. Smith & Company, treas­

R. P. Stevens has been elected a di­
rector of the Commercial National
Corporation, the securities affiliate of
the Commercial National Bank and
Trust Company of New York.

J. D. Harrison, F. L. Moore, and F.
P. Sheppard, vice-presidents, and F. C.
\ an Cloef, second vice-president, were
appointed at a recent meeting o f the
executive committee of the board of
the Guaranty Company of NeAV York.

Irving H. Eckstein and Edgar H.
Hall have been appointed assistant
vice-presidents of the Interstate Trust
Company of New York.

William A. B. Ditto, F. Rogers Par­
kin & Cornelius J. Murray, assist­
ant vice-presidents, have been appoint­
ed vice-presidents of the Seaboard
Bank of the City of New York.

Russell C. Irish, assistant vice-presi­
dent of the Bank of Manhattan Com­
pany, New York, has resigned to be­
come second vice-president of the
Chase National Bank, in charge of the
bank’s Hamilton Trust Branch.

Benjamin Strong has been elected
assistant vice-president of the Interna­
tional Acceptance Bank, Inc., of New

Pierpont V. Davis, vice-president of
the National City Company, New York,
Avas recently elected president of the
the Bond Club. Other officers elected

James F. Cavagnaro, vice-president
of the Bank of America, N. A., has
been elected a director of the Italian
Savings Bank of New York.

N eed o f Cooperation Between Banks,
Trust and Insurance Companies
LOSE cooperation between banks,
trust companies and life insur­
ance companies was stressed in an ad­
dress recently by Julian S. Myrick,
president of the New York State Life
Underwriters’ Association, before the
officers and personnel of the Central
Union Trust Company of New York.
Mr. Myrick stated that some $750,000,000 of life insurance was noAV covered
by trust agreements held by American
banks and trust companies, and that
the figures Avould mount up to billions
before many years.
“ It lias been of tremendous value
for life insurance to have banks and
trust companies take up so actively
the idea of trusteeing the proceeds of
life insurance policies,” Mr. Myrick
said. “ During coming years this idea
will grow and will strengthen the char­
acter and value of life insurance as
well as greatly expand the usefulness
of banks and trust companies. For
one of the great problems lias been to
conserve the proceeds of policies left
to dependent beneficiaries and prevent
their dissipation, thus making effec­
tive the \7ery purpose of the policyhold­
er in taking out the insurance.
“ I11 1928, approximately $1,700,-


000,000 were paid out to life insurance
policyholders and beneficiaries, and we
care not Avhether the insured conserves
his insurance estate through life in­
surance companies or through trust
companies or banks, so long as he does
it. There should be no competition be­
tween the two institutions. They
should work together and supplement
each other’s efforts by the closest sort
of cooperation. Under certain condi­
tions results can best be obtained by
trusteeing the proceeds through a bank
or trust company, while in other cases
the proceeds of the policy may best be
handled by the insurance company.
Then again it may be best to have both
the insurance company and the finan­
cial institution handle the situation. ’ ’
The speaker called attention to the
need of developing a carefully trained
personnel for this work. Advertising
alone is inadequate. Results of a con­
structive sort from the standpoint of
the insurance company, the bank or
trust company and the public, can only
be achieved by developing well consid­
ered sales practice in the approach to
regular customers of the bank or trust
company, the general public or the in­
surance underwriters.

August, 1929


U n ion P lan ters M e m p h is ,
G ets N a tion al C h arter
Effective July 10, the Union Plant­
ers National Bank and Trust Co. of
Memphis, Tennessee, began operating
under its new national charter, round­
ing out the program of broader bank­
ing facilities for Memphis inaugurated
last January when the Union and
Planters and the Manhattan Savings
Bank and Trust Company came under
joint management.
As a result of this completed pro­
gram, these two associated banks give
Memphis and the Tri-State Region
every banking service under both state
and national law, together with higher
capitalization and greater lending
power. The set-up of the two banks
is strikingly parallel to that of the
National City Bank and the Farmers
Loan and Trust Company of New York,
two of the nation’s great financial in­
stitutions— one a national bank, the
other a state bank and trust company.
Under this new charter the Union
Planters National is the largest bank
of any kind in Tennessee. With its
invested capital of $8,750,000 it is the
second most highly capitalized national
bank in the South. It and its asso­
ciate, the Manhattan Savings Bank
and Trust Company, with combined
capital funds of $11,200,000 comprise
the second largest banking group in
the South in point of capital assets.
The investment, stock and bond busi­
ness hitherto conducted by the bond
department of the old Union and Plant­
ers will be continued by the Union and
Planters Company, owned by the stock­
holders of the Union Planters National.

C aldw ell A n n ou n ces In su ran ce
H o ld in g C o m p a n y
Organization of a $20,000,000 hold­
ing company to acquire controlling in­
terests in some of the leading life in­
surance companies of the southern
states has been announced by Cald­
well & Company, investment bankers
o f Nashville, who will finance the move
to bring the separate companies into
one cooperative group.
The holding company, to be known
as Associated Life Companies, Incor­
porated, will begin with a paid-in cap­
ital of approximately $6,000,000 and
with substantial stock interests in the
Inter-Southern Life Insurance Com­
pany of Louisville, Kentucky, and the
Southeastern Life Insurance Company
of Greenville, S. C. Other southern
life insurance companies, according to
the plan of organization, will be in
Federal Reserve Bank of St. Louis


M id -C o n t in e n t B a n k e r

eluded in the group from time to time
as its operations are developed.
Each company in the group will re­
tain its identity in every respect, with
the same officers and directors and the
same scope of operations as before.
Through close cooperation with each
other, however, the separate compa­
nies will be able to effect large econ­
omies in various departments of their
business and to give greater protec­
tion and broader service to their pol­
icyholders. The entire resources of
the holding company will in effect be
back of each company.

A ssociation o f B a n k W om en
to M eet in C alifo rn ia
For the second time in three years
the Association of Bank Women is to
hold its annual convention in Califor­
nia. This year their slogan is “ On to
San Francisco” where they will meet
in conjunction with the American
Bankers Association from September
30th to October 3rd.
Their official and registration head­
quarters will be the Sir Francis Hotel
with residential headquarters at the
Western Women’s Club.

“ But, Officer, no other train will do.

I must catch the Wabash—

“B an n er Blue Lim ited



S T .L O I 1I S


Leaves St. Louis 12:20 noon. Arrives Chicago 6:50 p. m.
Leaves Chicago 11:30 a. m. Arrives St. Louis 6:00 p. m.
Fast Wabash Trains Between St. Louis and Chicago
F rom St. L ou is

F rom Chicago

Ir. Chicago 3:45 p. m.
12:20 NOON
Ar. Chicago 6:50 p. m.
9:52 NIGHT*
Ar. Chicago 7:05 a. m.
Ar. Chicago 7:35 a. m.

k .-*«»«.

11:30 MORNING*
Ar. St. Louis 6:00 p. m.
Ar. St. Louis 10:00 p. m.
9:55 NIGHT*
Ar. St. Louis 7 :03 a. m.
Ar. St. Louis 7 :27 a. m.

* Stops at Delmar Boulevard. Station or St. Louis

Delmar Boulevard Station a Great Convenience
On your trip from C h icago to St. L ou is en joy the
convenience o f leaving your train at Delmar B ou le­
vard, 20 minutes before it arrives in U nion Station.
H. E. Watts, Passenger Traffic Manager, St. Loins

- W A B A S H _



1 8 3 8 ---------


M id -C o n t in e n t B a n k e r

August, 1929

Where you can drink of

Nature’s Greatest Health Waters
Am id Surroundings o f Unsurpassed
Comfort and Elegance!
Visitors to this finely appointed, luxurious hotel acclaim it
one o f the very finest resort hotels in America. Refurnished,
redecorated and equipped with unsurpassed elegance, The
Elms will appeal to the most fastidious or most critical guest.
Here you can tone up your system, regain your health with
our world famous mineral waters and baths and if you wish,
enjoy all the pleasures o f resort life, golfing, swimming,
horse-back riding, boating, tennis, etc. For reservations or
beautifully done book, fully illustrating the beauties o f The
Elms and Excelsior Springs, write, wire or phone F. F. Hagel,
Managing Director.

The Elms is only 28 miles from
Kansas City, nestling amid surroundings o f natural beauty,
with paved highways leading
in all directions.

One ofthe "WorldsMod TurnonsMineral SpringsPesorts
Federal Reserve Bank of St. Louis


M id -C o n t in e n t B a n k e r

August, 1929

M cC arth y Is A d v a n ce d by
M ercan tile-C om m erce
J. A. McCarthy, former assistant
trust officer of the newly consolidated
Mercantile-Commerce Bank and Trust
Company, St. Louis, has been ad­
vanced to the position of associate
trust officer of the institution. He al­
so recently succeeded Davis Biggs as
vice-president and trust officer of the
National Bank of Commerce in St.
Louis, the corporate existence of which

the Federal Commerce Trust Company
from the time of its organization.
A few years ago Mr. McCarthy was
active in work of the American In­
stitute of Banking and was among the
first in St. Louis to hold a graduate
certificate from that organization.
His activities gave him a wide ac­
quaintance in banking circles.

L ic k lid er H e a d s St. L ou is
A dvertisin g C lub
Joseph P. Licklider, director of pub­
licity and sales research for the Mis­
souri State Life Insurance Company,
has been elected president of the Ad­
vertising Club of St. Louis, Missouri.

His election, which took place at a re­
cent meeting of the board of governors,
became effective July 1. The St. Louis
Advertising Club, with close to a thou­
sand members, is the second largest
organization of its kind in the United
Mr. Licklider has been prominently
identified in advertising circles for
many years. In recent years he has
been especially active in the insurance
advertising field, and is well known as
an authority on this particular subject.
He has been associated with the St.
Louis Advertising Club in various
ways, having served as first vice-pres­
ident during the last year.

Capital and Surplus
‘Protecting the Funds



. M cC a

rth y

has been continued for the purpose
of caring for its trust business.
Mr. McCarthy has been engaged in
various phases of trust work for twen­
ty-two years, having been an assistant
trust officer at the National Bank of
Commerce for eleven years. At the
same time he served as secretary of
Federal Reserve Bank of St. Louis

$ 2 5 ,00
o f Customer Banks





Shawmut Bank



The ownership by a bank of a Herring-Hall-Marvin vault denotes not
alone security, but also complete satis­
faction in the possession of the product
of a master builder. Outstanding supe­
riority of design, construction and finish
is coupled with service whose fidelity
and completeness are beyond question.
Our Engineering Department will
prepare plans, specifications and cost
data for vault work to meet your actual
requirements without cost or other
obligation on your part.

Herring-Hall-Marvin Safe Co.
St. Louis Office
Tower Grove Bank, St. Louis, Mo.

308 N. Fourth Street


August, 1929

M id -C o n t in e n t B a n k e r

C a m p, T

horn e




in c .



M ain Office 29 South La Salle Street, Chicago


Federal Reserve Bank of St. Louis

Street, N e w Y o r k City







Reserve Problem of
Bank Management
URING the period since the war
there has been an increase of
about 50 per cent in operating costs of
banks, particularly in the costs of sal­
aries, rent or building expenses, light,
heat, stationery, etc. Service functions
have multiplied without compensatory
returns to the banks.
itself creates new costs. These are the
natural comcomitants of the higher
plane to which banking has evolved.
There is a further important factor
operating to increase the cost of bank
management—interest on deposits. This
has come into increased importance as
a result of our changed economic status
as a nation. Of course it is apparent
that the prosperity which has developed
in this country in the past fifteen years
has naturally reflected itself in the in­
creased total deposits of member banks

Federal Reserve Bank of St. Louis

Ames, Emerich 8C Co., Inc.

of the Federal Reserve System from
$6,429,000,000 in 1914 to $32,605,000,000
as of June 13, 1928.
The significance, however, is not to
be derived from these figures, in the
mass, but when we look at the segrega­
tion between demand and time deposits,
we note some interesting facts. De­
mand deposits have shown a net in­
crease from $5,196,000,000 to $19,166,000,000, it is true, but it is an increase
of not quite four times. There is a
great contrast apparent when we note
that time deposits have increased from
$1,233,000,000 to $13,438,000,000, or
thirteen times over the same period.

IME deposits, which in 1914 were
only 19% of the total deposits of
the member banks of the Federal Re­
serve System, now represent 41% of
the total deposits. As you know, time
deposits are relatively twice as costly
as demand deposits in the fixed interest
charge paid on respective balances.
Of course, it is impossible for banks
of their own accord to escape the rising
costs of management; but they can off­
set them. However, our research has
discovered the fact that member banks
in 1928 failed to earn $40,000,000 be­
cause they did not align their invest­
ment policies with their changing re­
quirements for liquidity. This failure
to offset the rising costs of management
.justifies a closer scrutiny. It is obvious




M id-Continent B anker

that emphasis is shifting from demand
deposits toward time deposits.
When we consider the situation ex­
isting as of June 13, 1928, we find that
many banks are carrying the same pro­
portion in liquid assets against their
total deposits as they were accustomed
to in 1914, namely 30%. This means
that they have failed to adjust the pro­
portions of liquidity in their assets, to
take into consideration the shift in the
types of their deposits. To apply the
formula just referred to, 35% of de­
mand deposits and 10% of time de­
posits, to the condition as of June 13,
1928, we find that the total reserve
necessary to comply with this approach
to recognized proportions would be
about 24% of the total deposits of
June 13, 1928.

The difference between 30% and
24% of the total deposits is about
$2,000,000,000 which was carried by
these member banks in excess of their
requirements for liquidity because no
consideration was given to the fact that
the major increase in their deposits had
been from the time deposits which do
not require such great liquidity behind
them. Under normal conditions, 4% is
about the return from liquid assets
satisfactory for secondary reserve and
6% is ordinarily the return on invest­
ments which have ample safety, but
which are not so necessarily and readily
convertible into cash as to qualify
them for secondary reserve purposes.
This difference in the potential income
which the member banks of the Federal
Reserve System might have realized in

Federal Reserve Bank of St. Louis

David O. True, President

231 South La Salle Street
Telephone Central 6556



August, 1929
1928— 2% on $2,000,000,000 amounts
to about $40,000,000 which member
banks of the Federal Reserve System
could have earned for 1928, but which
they allowed to escape them. Do you
believe that management costs for the
member banks of the Federal Reserve
System for 1928 exceeded their man­
agement costs for 1927 by as much as
$40,000,000 ? Surely, herein lies the
answer for the problem of increased
cost of management.
HE second problem which con­
fronts the banking field today
arises from the fact that there have
been as yet no established standards of
operation to guide individual bankers
in the operation of their banks. In
this connection, Craig B. Hazelwood,
president of the American Bankers
Association, recently conducted a sur­
vey among a large number of banks in
various sections of the country. Re­
plies to this survey made it obvious
that there was complete lack of agree­
ment as the management policies and
some of the specific results will prove
interesting to you, I believe, as an in­
dication of the lack of uniformity
which exists in the banking field in this
According to the various answers re­
lating to the individual banks’ re­
sources :
Cash reserves varied from 5 to 72%
Secondary Reserves varied from 0%
to 75%
Customers loans from 0% to 90%
Other bonds and stocks from 0% to
Local mortgages from 0% to 71%
The percentages of the banks ’ capital
and surplus in fixed assets varied
from 0% to 100%.
Particular attention should be di­
rected to the fact that of the number
of banks which answered the ques­
tionnaire, 9% had no secondary re­
serves whatsoever, and 51% had 15%
or less of their resources invested in
liquid Secondary Reserves. In other
words, over half of the banks in the
United States were frozen because, ac­
cording to the American Bankers As­
sociation, the minimum reserve which
a bank should have for adequate pro­
tection is 20%.
In the matter of whether banks con­
cerned in the survey by Mr. Hazelwood
followed a definite policy with respect
to the investment of their funds, over
74% admitted that they had established
no definite policy. When three-quar­
ters of the banks are not sufficiently
liquid, and the other half according to
our experience are penalizing their
stockholders by carrying more liquid,
low income producing assets than they


need, surely there is a great field for
scientific research into these banking
UT, I believe that there is another


answer to this problem.

To clari­

fy the discussion which follows, may I
make three definitions:

Primary Reserve consists of those
funds which are immediately available
to meet the demands for cash made
upon the bank.
Cash in vaults, de­
mand deposits with other banks, and
deposits with the Federal Reserve
Bank, comprise this reserve.
Secondary Reserve is composed of
those income-producing assets from
which funds may be quickly and easily
obtained whenever the primary reserve
has been rendered inadequate for any
reason to such an extent that it be­
comes necessary to replenish it. A s­
sets which fall under this classification
are call loans, bankers acceptances,
commercial paper, rediscountable loans
and discounts, and securities whose
marketability is immediate and which
have in addition price stability. The
short term bonds are most effective in
this last consideration.
Investment Reserve consists of all
other assets of the bank’s resources.
It is in this portion of the assets that
there is reflected the service which the
bank provides to its community. The
assets here include real estate bonds
and mortgages which are fixed term in­
vestments with relatively high return;
loans and discounts which provide a
relatively high return and are generally
of short term, ostensibly, but the ex­
perience unfortunately is that all too
often loans and discounts are not paid
when due, but are renewed. The third
element in the investment reserve is
composed of investment securities se­
lected with safety of principal as the
first consideration and profitable return
rather than the immedite marketability
with price stability as in the case of
Secondary Reserve items.
O W with these definitions estab­
lished, I want to make the point
very clear that a study of general
figures, averages, etc., as a basis for
establishing a policy of management
for an individual and independent unit
bank is dangerous. Each community
where a bank may operate represents
a certain set of economic conditions,
dependent upon agriculture, business,
and industrial enterprises which may
be operating there and the particular
requirements of such a specific com­
munity are reflected in the experience
of the bank, or banks, which serve that
community. Therefore the solution of

Federal Reserve Bank of St. Louis


M id -C o n t i n e n t B a n k e r

August, 1929

the problem of scientific bank manage­
ment lies in determining what are the
requirements of a particular bank for
liquidity as reflected in a study of its
past history. To illustrate this, let us
consider this graphic chart of the
financial position of (— ) Bank, show­
ing ebb and flow of funds over a period
of years.
The principal factor in the liabilities
of this bank which concerns require­
ments for liquidity is demand deposits.
It is obvious that over the period of
six years considered here, in the fluc­
tuation of the total demand deposits,
there are seen to be withdrawals to the
amount of $200,000 in the maximum,
which occurred twice within the period.
This pretty conclusively demonstrates

the fact that, barring unforeseen con­
tingencies, the maximum expectancy of
withdrawals which determines this
bank’s requirements for liquidity, was
$200,000. In the analysis of this bank’s
assets, we found liquid assets to meet
this requirement of $200,000, in the
amount of $400,000— twice as much as
they had ever needed in their experi­
ence. Of course, there must be some
buffer to provide against unforeseen
contingencies, but to be twice as liquid
as necessary, inflicts a penalty on the
bank which it might be embarrassing
to explain to intelligent stockholders.
W ouldn’t it be amply conservative to
have a pad of 50% in excess of their
experience ?
When you liberate $100,000, for invest-


...when you have
reserve funds
to invest
F or y ou r reserve funds y o u naturally seek secu ri­
ties w h ich are, first, th orou ghly s o u n d ; and secon d,
readily salable. T he National City C om pany offers
y ou a ch oice o f desirable issues o f the various
kinds . . . G overnm ents, M unicipals, Railroads,
P u b lic Utilities, Industrials, Foreigns. Just tele­
p h on e ou r nearest office . . . an experien ced Na­
tional City man w ill gladly discuss y ou r needs.
O ff i c e s :

Albany. . Atlanta. . Atlantic City.. Baltimore.. Boston.. Buffalo.. Chicago.. Cin­

cinnati . . Cleveland . . Dallas . . Davenport. . Denver . . Detroit. . Hartford. . Houston
Indianapolis . . Jacksonville, Fla. . . Kansas City . . Los Angeles . . Louisville, Ky.
Memphis . . Miami, Fla. . . Milwaukee . . Minneapolis . . Newark . . New Orleans
Oakland, Calif. . . Omaha . . Pasadena . . Philadelphia . . Pittsburgh . . Portland, Me.
Portland, Ore. . . Providence . . Rochester . . San Diego . . San Francisco . . Scranton
Seattle . . St Louis . . St. Paul . . Tacoma . . Toledo . . Washington . . Wilkes-Barre
Montreal.. Toronto.. London.. Amsterdam.. Copenhagen.. Geneva.. Tokio.. Shanghai.

The National CityCompany
National City Bank Building, N ew York








M id -C o n t in e n t B a n k e r

merit, not at 4 % , but at 6 % , the in­ I shall not go into the details of this
creased income of $2,000 realized in
bank’s experience further, but I do
this bank represents 2 % earned on
want to indicate the method of tying
their capital stock.
This, of course,
in proportions of licpiidity held or car­
was accomplished without any addi­
ried in the assets, with the determined
tional expense and rvas available for an
requirements for liquidity. Consider­
extra dividend, or an additional pay­
ing the established requirements for
ment into surplus, or could have been
liquidity, this phase of the analysis
used as a bonus to employees.
crystallizes the actuality existing in
Let me recall the $40,000,000 which
assets with regard to liquid Sec­
member banks of the Federal Reserve
ondary Reserve items — their require­
System failed to earn in the year 1928
ments for liquidity having been cared
because they had not adjusted their
for by means of call loans, commercial
assets to meet the shift in their type
paper, bankers acceptances, and short­
of deposits. A similar situation exists
term securities. The rest of the assets
in this small bank where an increase of
could then be considered for the pur­
total deposits from $1,520,000 to $1,pose of securing the maximum return,
720,000 was accomplished entirely
and, most effectively serving the re­
through the increase of certificates of
quirements of the community for
deposit at a cost to the bank of 4%
for interest.

August, 1929


N the investment reserve the mort­

gages and loans and discounts are
the means whereby the bank finances
its customers. I should like to point
out this one fact. Real estate mort­
gages, by their very nature, are frozen
assets. Loans and discounts we have
found from our analytical work, and as
you no doubt have found from your
operating experience, are somewhat
mythically liquid. A t any rate, beyond
establishing standards of quality as to
these commitments, the banker cannot
arbitrarily determine the degree of
liquidity which will exist in these port­
folios, but can only take what his com­
munity has to offer. In his bond ac­
count, however, lie finds an adjustable
medium to create the proper balance
in liquidity between his requirements
and his assets, for he can buy either
liquid securities or less liquid securi­
ties, the latter having the higher in­
For the purpose of crystallizing the
degree of liquidity which exists in the
bond account, it is constructive to con­
sider the securities from the point of
view of marketability and quality, for
these two factors determine the liquid­
ity and price stability represented by
the bonds. Then, to tie in these find­
ings with the secondary reserve and
investment reserve structure, is to put
into operation scientific principles of
bank management.
ECAUSE there is nothing so con­


e a r n in g s
properties protecting the bonds
issued by this institution are
record of which we are justly
proud, that no investor in these
securities has ever lost a dol­
lar of principal or interest.

When our name is associated
with a bond you can depend
upon it that every maturing
coupon shall be promptly met
and principal will be paid on
due date.
Mortgage & Securities Co.
Southern bonds have brought
millions of dollars to the South;

have increased many fold the
earnings of Southern proper­
ties; providing, at the same
time, safe investment oppor­
tunities at attractive interest
return for those with funds to
Let us give you more detailed
information regarding this type
of Southern investment. Allow
us to send you a description of
one of our offerings.
and insurance companies pur­
chase these securities in volume
of many millions annually.
They invest in them because
they are safe.
Write us for Circular jj_8

M ortgage &>
Securities Co.
SHjew Orleans + S a in t J I d o u ü t*
Federal Reserve Bank of St. Louis

stant as change, it is vital to pre­
pare against changes within the bond
portfolio effecting the securities them­
selves, and stabilization can be secured
through scientific diversification. There­
fore, the third consideration of our
analysis has to do with the type of
borrower represented in the bond port­
folio, and to bring this consideration
down to a finer point, the diversifica­
tion factors appearing within the type
are brought to the surface by a more
minute break-down.
In discussing the secondary reserve
qualifications of bonds with bankers at
this present time, when nearly every­
one is appalled to look into his bond
account and see the market deprecia­
tion which stares at him, regardless of
the quality wdiich may be reflected by
the securities he holds, this solution
which I have been presenting here has
quite often naturally been ridiculed.
However, the fault does not lie in the
bonds as such, but in the lack of scien­
tific principles which should be used
in the construction of the bond account.
Perhaps I can make that clear with the
aid of an illustration which shows the
efficiency of a revolving fund of short­
term maturities to protect the liquid

August, 1929
position of the bank’s secondary re­
serve in bonds.

II«............. .

Here is a bond account

constructed to meet the requirements
of this same bank, where their
maximum of expectancy of demand
withdrawals was $200,000. In this ac­
count is found $100,000, plus $90,000,
plus $80,000, or a total of $270,000
worth of securities maturing within
the three next succeeding years. In
first line of liquid reserve in this port­
folio, there has been experienced rela­
tively little market depreciation even
under the excessive pressure imposed
on the bond market in general by the
prevailing high money rates. Because
the constantly recurring maturities of
these bonds provide their principal
amount at par, always imminently
available, the market price of these
securities has not declined as has the
market price of the long term, under­
lying railroad bonds, for example,
which fell off an average of about
3i/2% , as a class, over the year 1928.
By this means, liquidity in the bond
account is assured from two points of
The ready marketability of
these short term bonds is possible with
price stability close to par, and in
addition, as the first year elapses, there
comes into the bank, through maturi­
ties, $100,000 in cash for current re­
quirements, or this amount can be
plowed back into the succeeding im­
mediate years in order to make this
liquidity factor perennial.

St. L ou is B an kers P rom in en t
in D ev e lo p m en t o f A v iation
Well-known bankers who have fig­
ured prominently in St. Louis’ rapid
aernautical development are: Harold
Bixby, vice-president of the State Na­
tional Bank, Walter W . Smith, presi­
dent of the First National Bank, and
Marvin E. Holderness, vice-president
of the First National Bank. Mr. Bix­
by has been interested in aviation for
a number of years, and was instrumen-
Federal Reserve Bank of St. Louis


M id -C o n t i n e n t B a n k e r






HE O B L I G A T I O N S o f

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

G M A C paper is obtain­

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

G e n e r a l M o to r s
A c c e pta n c e C o r p o r a t io n




Executive Office - BROADWAY at 57 t h St r e e t - Nev> Yorl{ City





« t r »T i m i n m m m i i i n M u n m n u M h i

718 Locust Street

Underwriters and
Distributors of Municipal,
Real Estate and Corpora­



O l i v e r fJ. A n d e r so n & (]o.

tion Securities



in t

Lo u



Listed and Unlisted
Stocks and Bonds Bought
and Sold on Commission
Private W ires to Principal


August, 1929

M id -C o n t in e n t B a n k e r

tal in the formation of the Air Board
of the St. Lonis Chamber of Com­
merce. He 1was one of the original
hackers of Lindbergh’s flight. Walter
Smith and Mr. Holderness are both
serving on the Chamber’s Air Board,
and Mr. Holderness is also a member
of the Air Port Commission which will
have supervisory powers in the devel­
opment of the city’s new $2,000,000
air port, recently authorized by a bond
Recommendation has been made for
the establishment of a new and direct
transcontinental air mail line operat­
ing from Kansas City, Missouri, via St.

Louis to New York. This line would
afford more expeditious mail service
to the East and would be the eastern
leg of a proposed second transconti­
nental air mail route operating be­
tween New York and Los Angeles.
From Kansas City it is subsequently
planned to have the line run through
Oklahoma City, Tulsa, Phoenix, Ariz­
ona, into Los Angeles.
In addition to initiating a move­
ment that has already given St. Louis
two air mail lines operating over reg­
ularly constituted routes, the Air
Board of the Chamber has under con­
sideration plans for a new line to the

Invest in the Path
of Our
Business Grow th

M E R I C A ’ S bu siness g r o w th is d efin itely h eaded

in the d irection o f fo r e ig n m arkets. A u to m o b ile s,
fa rm m a ch in ery and the scores o f oth er m a n u fa ctu red
p rod u cts in universal dem an d sw ell the ca rg oes fr o m
ou r ports.

S u pp lem en tin g the n orm a l benefits d eriv ed fr o m in ­
creased ocea n traffic, recen t ch a n ges in o u r sh ip p in g
law s fa v o r investm ent in A m e rica n vessels u n der effi­
cient p rivate op era tion .

U n ited States L in es, In c., P a rticip a tin g P r e fe r e n c e
S tock o ffe r s y o u an o p p o rtu n ity to acq u ire an interest
in the L eviath an and ten oth er sp len d id A m e rica n
ships. T h e stock is o ffe r e d at a m od era te p rice, w ith
partial paym en ts i f d esired.

Listed on the New York Curb Market and Chicago Stock Exchange

Southwest to be operated as a spur
from the proposed new transcontinen­
tal line.

The spur line would connect

with the Transcontinental at Springfield, Missouri, and would end at Dal­
las and Fort Worth.



Tentative plans




direct route from Memphis to New
Orleans from this city. In addition
to these routes, however, St. Louis
will be one of the principal centers
of the new Transcontinental Air Rail
Line to be operated from New York
City to Los Angeles by the Transcon­
tinental Air Transport, Inc., in con­
junction with the Pennsylvania Rail­
The natural advantages of St. Louis
as an aviation center have attracted
virtually three million dollars worth
of aviation construction activities to
the airport since the beginning of
1928. Among the companies now in
operation are the Curtiss-Robertson
Co. and the B. F. Mahoney Co., build­
ers of the famous “ Spirit of St.
Louis. ’ ’ In addition, the Parks Air
Lines, Inc., are now erecting a plant
on their airport just south of East
St. Louis for the production of planes
on a commercial scale, while the Car­
dinal Aircraft Company was recently
formed as a subsidiary to the St.
Louis Car Company for the produc­
tion of commercial planes. Three fly­
ing schools also are located in St.
Louis. The
Corp., the Yon Hoffman Aircraft
Co., and the Parks Air Lines, Inc.
St. Louis’ most recent forward step
has been the approval of the $2,000,000 bond issue to provide an airport
that will be the equal of any field in
the United States or Europe. This
new flying field is comprised of 693
acres— more than a square mile and
will have 8 hard surface runways. In­
corporated in the plans is a terminal
building with a 200 feet span large
enough to accommodate the largest
multi-motored craft now being con­
structed either in this country or

Price at the Market

The New Five and Ten.

115 West Adams Street

42 Cedar Street

Federal Reserve Bank of St. Louis


St. Louis Office
1103 B O A T M E N ’S B A N K BLDG.

There was great excitement in Punkville. A new 5 and 10-cent store had
been opened by a man named Cohen.
A woman came in one day and selected
a top for which she handed the pro­
prietor a dime.
“ Excuse, lady,” said Cohen, “ but
these toys are 15 cents.”
“ But I thought this was a 5 and 10cent store,” protested the customer.
“ Yell, I leave it to you,” came the
reply, “ how much is it five and ten
cents ? ’ ’

August, 1929

First N ation al an d Tulsa
N a tion al M erg e
The recent merger of the First Na­
tional Bank and Trust Company of
Tulsa and the Tulsa National Bank,
Tulsa’s oldest and youngest banks, re­
sulted in the creation of an institution
with a capital structure of $5,000,000
and combined resources in excess of
Waite Phillips was continued as
chairman of the board, R. Otis McClin­
tock and A . E. Bradshaw were reelect­
ed president and executive vice-pres­
ident respectively, and Fred L. Dunn,
president of the Tulsa National Bank,
was elected vice-president in the mer­
ger, which took place on June 22, 1929.
The name of the new bank is the
First National Bank and Trust Com­
pany and it is quartered in the First
National Bank Building.
The tremendous growth of the oil
industry and the increasing size of its
transactions, has made necessary the
creation within the immediate oil coun­
try of strong financial institutions with
important connections in the money
centers to insure the handling of im­
mense deals here. Tulsa is the recog­
nized capital of the oil industry and
is rapidly making a name for itself as
a financial center for oil transactions.

M in n ie A . B u z b ee S p e a k s
on B a n k A dvertisin g
Miss Minnie A . Buzbee, Manager
Business Extension and Advertising
Department, American Southern Trust
Company, Little Rock, gave an illus­
trated talk on bank advertising at the
recent convention of the Arkansas
Press Association, held at Fayetteville,
Miss Buzbee spoke of the growth and
improvement of bank advertising dur­
ing the past 10 or 15 years, and re­
minded the editors that good adver­
tising by good banks raised the char­
acter of their paper and made a good
talking point for the solicitation of
other advertising and subscriptions.

G a b b e r t an d M ich aels J o in
H . M . B y llesb y & C o.
Benton S. Gabbert and Harold U.
Michaels have joined the sales organ­
ization of the St. Louis office of H.
M. Byllesby & Co., of which J. D.
McCutcheon is manager.
Mr. Gabbert, upon graduating from
the University of Missouri became as­
sociated with the First National Com­
pany, St. Louis, in the municipal bond
buying department. Later he joined
Federal Reserve Bank of St. Louis


M id -C o n t i n e n t B a n k e r
the sales force of that institution.
Mr. Gabbert will travel in Missouri
for H. M. Byllesby & Co.
Mr. Michaels, upon graduating from
Washington University in St. Louis,
joined the sales force of the First Na­
tional Company. He will devote his
efforts to the development of local St.
Louis business for H. M. Byllesby &

Louis, Fenner &

Before opening their new branch of­
fice at 324 North Fourth Street, St.




study to be made of St. Louis.
A summary of the results of their
study is contained in their bulletin on
philosophy of empire building, “ W hy
American Cities Grow— St. Louis.”
This summary will later be used as
a chapter introduction in a volume to

F en n er & B ea n e Issues
Bulletin on St. L ou is


bankers, caused a


“ Philosophy


eral circulation.
Meanwhile, these summaries are used
as bulletins, and are given wide inter­
national circulation.

B o n d s A r e Still the
Medium of Stability .



E I N G strictly a p rom ise to pay, b on d s are an evid en ce o f
in debtedn ess and the b o n d h o ld e r a cred itor. T h e secu rity
fo r the loan is specifica lly stated.

T h e in v estor receives, th rou g h bon d s, secu rity fo r his capital,
a steady in com e, a stable investm ent.
B ecau se o f their fix e d
secu rity and fix ed return, b on d p rices m o v e s low ly m arketw ise.
E co n o m ists have p oin ted ou t that a fte r the late w a r the fix ed
retu rn fr o m bon d s, as ex p ressed in pu rch a sin g p o w e r, w as re ­
d u ced b y the risin g cost o f livin g.
N o w , sin ce co m m o d ity
p rices h ave tu rn ed d o w n w a rd , b on d interest is b u y in g m o re and
m ore. T h is operates as n o sm all fa c t o r in the b o n d h o ld e r’ s
fa v o r .
W it h m on ey rates m ou n tin g to h igh figu res, fix ed -in terest-ra te
secu rities have been n eglected in recen t m on th s until an e x ­
ception al o p p o rtu n ity is presen ted fo r investm ent in b on d s at
this tim e.

Our current list of offerings zvill be mailed upon request.

Caldwell & Company
Southern Securities
1 1 7 N o r t h F o u r th S tre e t


Building, ’ ’ and to be published for gen­

S t. L o u i s , M i s s o u r i

Offices in Principal Cities


M id-Continent B anker

B o a rd o f G ov ern ors, I. B . A .
A d o p t N ew R esolu tion s
A t a recent meeting of the Board of
Governors of the Investment Bankers
Association, based on the recommenda­
tion of the Sub-committee on Distribu­
tion, the board adopted the following
resolution :
Resolved, that it is the opinion of
the Board of Governors of the Invest­
ment Bankers Association of Amer­
ica that the present employer of a
salesman should be notified before an­
other house discusses with such sales­
man the question of employment, and
that the use of blind advertisements
for salesmen is disapproved.
Based on the further recommenda-

tion of the Sub-committee on Distribu­
tion at the same meeting, the Board of
Governors adopted the following reso­
lution :
Resolved, that it is the opinion of
the Board of Governors of the Invest­
ment Bankers Association of America
that the phrases used in many adver­
tisements, such as “ All these bonds
have been sold”

August , 1929

B ern h ard t J o in s S ecreta ry ’s
S ta ff, I. B . A .
Jack Bernhardt, formerly engaged
in promotion publicity work for the
Arkansas Bankers Association, on Aug­
ust 1 joined the Illinois Bankers A s­
sociation in a similar capacity.
Mr. Bernhardt has been connected
with the National Bank of Commerce,

or “ This issue has

been sold and this advertisement ap­
pears as a matter of record only” are
often misleading and should be abol­
ished except in such cases wherein the
issue has actually been over-subscribed
by the investor and the securities ad­
vertised are not available for sale by
the advertising houses.

W h y D o Investors
P re fe r T h is Security?
F IRST mortgage real estate bonds present

one of the most satisfactory forms of
investment when they are secured by high
grade, well-located city property producing
ample and continuous earnings. Real Estate
Bonds appeal to many investors because
the security is easily seen and easily under­
stood. But the careful investor selects only
those bonds whose fundamental safety is
assured and investment stability apparent.
Such stability is found in the First Mort­
gage Real Estate Bonds of Robert S. Strauss
& Company. The security is permanent
because real estate values in the city of
Chicago are steadily increasing, and because
the bonds mature year by year, thereby
decreasing the loan and increasing the
margin of safety.
Please send for full information and list of
current offerings yielding 6 J £ % .

R o b e r t S .S t r a u s s & C o.



Investment Bonds—First Mortgages

Offices in Other Cities

R O B E R T S. S T R A U S S & C O .
105 W . M on roe St., Chicago, 111.

xJViail \This
pon >
Federal Reserve Bank of St. Louis

Gentlemen: Please send me without obligation
full investment information and current offerings.
C ity ....

. State.

St. Louis, now merged with Mercan­
tile Trust Company as the MercantileCommerce Bank and Trust Company,
and the Cotton Belt Savings and Trust
Company of Pine Bluff, Arkansas.
While active in the banking business,
Mr. Bernhardt took a great interest
in his state association, having served
as chairman of his group and as treas­
urer of the association. For ten years
he was a member of the State Board of
Education of Arkansas.

N ew E d u cation al C om m ittee
o f M . B . A . A n n o u n ced
F. B. Brady, vice-president of the
Commerce Trust Company of Kansas
City, Mo., and newly elected president
of the Missouri Bankers Association,
has announced the following commit­
tee to conduct the educational work of
the association during his administra­
tion :
G. V. Kenton, assistant advertising
manager Mercantile-Commerce Bank
and Trust Company of St. Louis, as
chairman ; C. E. Lin ville, assistant
cashier, Bank of Skidmore, Skidmore;
C. W . Moody, cashier, McDaniel Na­
tional Bank, Springfield; H. H. Mohler, vice-president, St. Joseph Stock
Yards Bank, St. Joseph; Fred Wightman, cashier, First National Bank,
Braymer, Mo.

August, 1929

W . H . Y o u n g & B ros. N ow
H a s T w en ty -F ire O ffices
W . H. Young & Bros., Inc., St. Louis,
announces the installation of four neAv
branch offices during the past thirty
days, giving them a total of twentyfive offices in Missoui'i, Kansas and Ne­
Offices have also been opened at 150
Broadway, New York City, under the
supervision of Paul M. O ’Neill. The
primary purpose of this office is to
take care of the Eastern wholesale
connections of W . H. Young & Bros.
Mr. O ’Neill is a man of years of ex­
perience in the wholesale end of in­
vestment banking.
This house has grown more rapid­
ly, perhaps, than any other invest­
ment brokerage concern in the Cen­
tral West during the past three years
and is continuing its policy to open
new territory as rapidly as suitable
men can be found and trained in the
policy of the company and prepared to
assume charge of the new offices.
The policy of this house is to ac­
cept orders for any stocks or bonds in
any market but, as underwriters and
dealers in specialties, they maintain a
department for research and the in­
vestigation of investment opportuni­
ties, under the management of M. L.
Barrett, an industrial engineer of wide
experience in this work, who has been
very successful in his former connec­
tion with the Wurdack Securities Com­
pany of St. Louis and other Wurdack
enterprises and in his own develop­
ments. They endeavor to maintain a
diversified list of stocks and bonds
which are calculated to serve the in­
vestment needs of the various classes
of investors and give the diversifica­
tion necessary for well-balanced hold­
The house of W . H. Young & Bros.,
Inc., has adopted a policy generally
of becoming interested in the issues it
features and the management is en­
deavoring to remain interested in those
issues for the purpose of protecting
the interests of its clients, as well as
for the purpose of investment.

L o n sd a le M ak es P lea fo r
R edu ction o f T axes
Speaking at Swampscott, Massachu­
setts, in the outskirts of Boston, where
Americans 156 years ago registered
their first organized objection to taxa­
tion by dumping three shiploads of tea
into the harbor, John G. Lonsdale,
president of the Mercantile-Commerce
Bank and Trust Company of St. Louis
and first vice-president of the Ameri­
can Bankers Association, criticised
Federal Reserve Bank of St. Louis

M id -C o n t in e n t B a n k e r
present-day taxation methods and made
a plea for the reduction of levies on
the income of corporations and indi­
The gathering which heard Mr. Lons­
dale’s address was composed of bank­
ers’ groups from all the New England
Comparing the conduct of business
with the science of navigation, the
speaker warned: “ Have a lookout in
your business, or look out! ’ ’
“ A t no time in the history of Amer­
ican business,” he continued, “ has
there been cause for keener outlook,
for deeper perception, for more judi­
cial judgment of the specks on the
horizon that may become mountains
of obstruction, on the way to greater
business success. ’ ’
Stressing the fact that taxes in­





part of bankers and business men to
conduct careful investigations to see
that tax moneys

are being expended

“ The income tax on corporations is
too high and siphons out revenue which
should belong to industry,”
“ This



he said.

the corporate form of doing business
should be removed in the interest of a
plan of taxation more adapted to the
uncertainties of the future. Here is
an obvious responsibility of business
men and bankers.
“ The tax on earned incomes, too,
should be reduced, because in its pres­
ent status it imposes a penalty on

C o p p e r highways
HE copper highways of
the Bell System reach
out to the most isolated
places. 19,500,000 telephones
—68,000,000 miles of copper
wire — are making America
one vast community. There
are more than 2,500,000 tele­
phones on American farms,
practically all of which con­
nect with the Bell System’s
nation-wide network of wires
and cables. And eight times
as much wire as is seen is
tucked away in underground and
aerial cables.


Vital Facts f o r Investors about
American Telephone and Telegraph
Company Stock

Back of this stock is a capital in­
vestment of more than three and a
hall billion dollars. In 1928 ninetyfive million dollars was expended by
the Bell System for central office
equipment,one hundred and eightyfive million for aerial and under­
ground lines, and another hundred



pointed out the growing need on the

million for subscribers’ telephone
equipment and private branch ex­
changes. The growth of the Bell
System is increasing in rapidity. Be­
tween 19 12 and 19 17 over 3,083,000
telephones were added to it; be­
tween 19 17 and 1922 some 3,511,000
telephones; between 1922 and 1927
more than 4,315,000 telephones.
And in 1929 this growth is con­
tinuing at the rate of more than
2,000 telephones a day.
M ay we send you a copy o f our
booklet, “ Some Financial F acts"?


New York City


M id -C o n t in e n t B a n k e r

Forem an National Corporation Is New
Nam e o f Company
F F IC IA L announcement has been


made of the change in the name
of the Foreman Securities Company,
securities affiliate of the Foreman Na­
tional Bank, Chicago, to the Foreman
National Corporation, and of an in­
crease in capitalization from $500,000
to $5,000,000. The Foreman National
Corporation will begin business with a
paid in capital and surplus of $6,000,000, which is trusteed for the benefit
of Foreman National Bank stockhold­
This change in name, it is thought,

will more definitely identify the com­
pany with the Foreman National
Bank, and is in line with an expansion
policy that is expected to make the
Foreman National Corporation an im­
portant factor among the underwriting
and distributing houses in the middle
Executive direction of the Foreman
National Corporation will be in the
hands of Robert B. Whiting, Edwin M.
Stark and Harold W . Wood, vice-pres­
The Foreman National Corporation

W hat Is a Bank
Investment Account?
W hat is its purpose?
What is its utility to a bank?
How large should it be?
Of what should it be composed?
Should it include bonds? Should it have no bonds?
Should it be composedpartly of bonds and partly of other assets?
What kinds of bonds should be included therein?
Should it contain short term or long term bonds?

T h e s e and o th e r
sim ila r q u e stio n s are d is­
cussed in a b r o c h u r e p re­
pared by ou r e c o n o m is t,
D r . P au l M . A tk in s, e n ­
title d :
Bank Secondary
Reserves a n d Investments.
W e shall be glad to sen d any
b an k a c o p y u p on req u est.

Ames,Emerich Co.
105 South La Salle Street, Chicago
509 Olive Street, St. Louis
First Wisconsin Nat’l Bank Bldg., Milwaukee
New York
Federal Reserve Bank of St. Louis


San Francisco

Los Angeles

A u g u st, 1929
will occupy the entire sixth floor of
the new Foreman National Bank Build­
ing at 33 North La Salle Street, Chi­
cago. A branch office will be opened
soon in New York.
D. T. Richardson, for nine years as­
sociated with the municipal bond house
of A. T. Bell & Co., the last two of
which he was manager of both the buy­
ing and sales departments, has been
appointed manager of the municipal
department of the Foreman National
Corporation, securities organization of
the Foreman National Bank of Chi­

T en n essee

C om p an ies


T en n essee B o n d Issu e
Ready acceptance of the state of
Tennessee’s $21,000,000 bond and note
issue was reported by the bankers who
undertook the distribution of these
A group of Tennessee banks, headed
b}7 Caldwell & Company and the Amer­
ican National Company, both of Nash­
ville, bought the bonds from the state
and distributed them through a bank­
ing syndicate composed of some of the
leading investment institutions of the
Of the total issue of $21,000,000, the
sum of $7,500,000 is in 4 % % Bridge
Bonds, due June 1, 1944, for payment
of which the state has pledged the tolls
collected for the use of the bridges to
be constructed out of the bond proceeds.
Likewise all funds accruing to the Uni­
versity of Tennessee from the proceeds
from the state tobacco tax are pledged
for the payment of the $500,000 42/2%
University Building Bonds, which are
included in this issue.
The remainder of the total issue is
made up of $12,500,000 of 4i/2% High­
way Notes due February 15, 1939, and
$500,000 of 41 / 2 % Highway Notes due
April 29, 1932. All of these bonds and
notes are general obligations of the state
of Tennessee and are legal investments
for savings banks and trust funds in
New York and other states. They are
exempt from all federal income taxes
and from all state, county and city taxes
in Tennessee.

C apt. M a h a ffe y Is D irector o f
First N a tion al , St. L ou is
F. O. Watts, chairman of the board of
the First National Bank in St. Louis,
announced that Capt. Birch O. Ma­
haffey, president of the McBride Oil
Company, has been elected a director of
the First National Bank to fill the va­
cancy on the bank’s board, caused by
the recent death of Eugene H. Angert.

August, 1929

Sims Submits



M id -C o n t in e n t B a n k e r

Report Showing


The decrease

number of state banks





The decrease in the number of national

Figures on State Banks o f U. S.

banks totals 210.
“ This makes a total increase in all


N, SIMS, secretary-treasurer of

the National Association of Su­
pervisors of State Banks, and vicepresident of the Hibernia Bank and
Trust Company, New Orleans, has sub­
mitted to the association a statement
which shows in detail by states the
capital, surplus and undivided profits,
deposits, loans and discounts, stocks,
bonds and securities, and total re­
sources of all state banking institu­
tions of the continental United States,
together with totals of these items of
the national banks, and all covering as
of March 27, 1929.
The report of Secretary Sims covers
the only available accurate and de­
tailed data of the state banking insti­
tutions comparable with the report of
the Comptroller of the Currency which
covers the national banks.
Mr. Sims said : ‘ ‘ The figures given
are very gratifying and reflect, as a
whole, a healthy condition of the bank­
ing institutions of our country.
“ The capital, the deposits, and the
total resources of our banks are larger
than ever before.
“ On March 27, 1929, there was a
total of 25,932 banks of which 18,357
were state banks and 7,575 national
banks, and in round numbers a total
capital, surplus and undivided profits
of $9,274,242,341, total deposits of $58,610,581,757, and total resources of
$72,666,752,001. Total deposits of all
banks were $1,896,064,896 above the
previous high record of February 28,
1928, and total resources $3,227,280,777 above resources of that date.
“ On March 27, 1929, in round num­
bers the capital, surplus and undivided
profits of the state banks were $5,573,901,341, and of the national banks
$3,700,341,000 showing the capital re­
sources of the state banks to be 50 per
cent in excess of the national banks.
The deposits of the state banks were
$35,737,701,757, and of the national
banks $22,872,880,000 showing the de­
posits of the state banks 56 per cent
in excess of the national banks. The
total resources of the state banks were
$43,644,840,001, and of the national
banks $29,021,912,000, showing the re­
sources of the state banks 50 per cent
in excess of the national banks.
“ Between March 27, 1929 and Feb­
ruary 28, 1928, deposits of the state
banks increased $1,302,266,896, and de­
posits of the national banks increased
$593,798,000. During the same period
total resources of the state banks in­
Federal Reserve Bank of St. Louis

creased $1,779,055,776,

and total re­

sources of the national banks increased
“ Since June 30, 1919, which was the
date of my first complete statement,
capital, surplus and undivided profits
of the state banks have increased $2,674,238,664, and the national banks $1,336,863,000.
The deposits of state
banks have increased $14,104,879,745,
and the national banks $6,948,015,000.
Resources of the state banks increased
$17,679,164,165, and the national banks

banks of the United States since June
30, 1919 as follows:
Capital, surplus and undivided
p ro fits.......................... $4,011,101,664 or76%
Deposits ............$21,052,894,745 or 56%
R esources......... $25,901,526,165 or 55%
Number of institutions 2,881 (decrease)
“ Both classes of banks perform
ecjually useful and necessary functions
and I do not make comparisons for
the purpose of disparagement, but to
emphasize the colossal size of the two
great banking systems.



W 4

Price Movements







What these forces are and how the successful
investor uses them to reap financial rewards
by anticipating changing conditions and new
developments are clearly set forth in a set of
graphs which have just been prepared by our
Department of Economics and Surveys.







Federal Reserve Ratio, Call Money Rates,
Commercial Paper Rates, Commodity Prices
and their relationship to fixed interest bearing
securities are shown on these graphs and ex­
plained in language that will easily be under­
stood by all classes of investors.





These graphs will be of special interest to
bankers and their corporation customers.
W e shall be very glad to mail this instruc­
tive folder on request.
Send for A H -8



. C

. A




N a n d c o







Investment Securities


418 Olive Street, St. Louis



New York

■ ■■



San Francisco




The Effect on Europe o f Tight
Money in America

HE ever growing demands of the
American stock market for loan


funds, with progressively higher rates

Economist o f the Chase National Bank,

of interest in the United States, have

New Y ork

had a far-reaching




money markets of almost the entire
world. Our high rates of interest have
operated to tighten money in the
world outside in two main w ays:
First, by reducing very sharply the
placing of foreign bonds in our mar­
ket; and second, by attracting foreign
money to be loaned on call to our
stock market.
In Europe, the result has been to
create a very definite financial strain.
The lending countries of Europe have
ceased to be ready lenders to the bor­
rowing countries, and, in some cases,
have withdrawn funds previously lent.
The borrowing countries of Europe,
which for several years had adjusted
their economic life to a large inflow of
foreign funds, have found themselves
suddenly pulled up short, with the ne­
cessity of paying rather than borrow­
A borrowing country is an import­
ing country. It brings in the pro­
ceeds of foreign loans in the form of
goods primarily. Domestic demand is
strong, resisting the export of domestic
goods and attracting foreign goods.
But when loans cease and repayment
must be made, the scene shifts. The
borrowing country must develop an ex­
cess of exports over imports. When a
transition of this sort must be sudden­
ly made, it is almost inevitable that
there should be a period of depression
during which labor and resources shift
from production for the domestic mar­
kets to production for export, and dur­
ing which prices are reduced to permit
more effective comj)etition in the ex­
port trade.
The lending countries of Europe in
the past few years have been England,
The Netherlands, Sweden, Switzerland,
and, more recently, France. London
appears to have little leeway for fur­
ther loans to the continent at present.
The Netherlands have been withdraw­
ing funds from other countries, espe­
cially from Germany.
Sweden has
ceased to be a ready lender. Switzer­
land and Belgium could spare funds
for investment abroad on a moderate
scale. But the only European coun
Federal Reserve Bank of St. Louis

try which is in a position to make for­
eign loans on a great scale is France.

P osition o f G erm an y

money markets, lent the necessary tem­
porary assistance. Confidence is now
restored, German funds are returning
home, and the Reichsbank’s reserve
ratio, which had gone to around 40
per cent, rose to 51.5 per cent by June

But the essential difficulties remain.
Germany, if unable to get large for­
eign loans, must reverse the direction
of her industrial and trade activities,
reducing long-time construction and
domestic consumption and increasing
production for export.

The tightening of the money mar­
kets of the world, with the sharp re­
duction of foreign loans to Germany,
came at a time when Germany was
under the necessity of increasing her
payments under the Dawes Plan from
P osition o f H u n g ary
1.750.000. 000 marks per year to 2,500.000.
000 marks. Germany has made The sharp cessation of foreign loans
to Hungary found her, from one point
of view, better prepared than Germany
was. There had not been such intense
activity in Hungary as in Germany.
" O u r h ig h rates o f interest Her financial position was better liqui­
dated, and the immediate shock was
h a v e o p e r a te d to t i g h t e n
not so severe. On the other hand,
m o n ey in th e ou tsid e w orld in Germany has carried much further
than Hungary her industrial rehabili­
two m ain ways: First, b y red u c­ tation, and can much more readily
begin an early development of an in­
ing very sh arp ly th e p lacin g creased export trade. Germany’s plans
o f fo re ig n b o n d s in ou r m ar­ are largely carried through. Hun­
gary’s are in the half-way stage. I f
k e t; a n d s ec o n d , b y attractin g Hungary does not get adequate foreign
credits in the near future, she will be
fo re ig n m o n ey to b e lo a n ed on obliged to cut short various half com­
pleted plans. This will not mean a
call in ou r m arket
financial break. The exchange rates
will hold.
The national bank will
dominate the money market and pro­
tect the currency. But the standard
these payments, and continues to make
of life of the people will be reduced,
them. But the difficulties have been
and there may be even a pathetic emi­
real, the German money market has
gration of part of the dense popula­
been very tight, and Germany has been
very short of cash.
T h e P osition o f L o n d o n
An acutely critical situation arose
when the negotiations which culmi­
The British banks, in their effort to
nated in the Young Plan appeared late
revive British trade by extending bank
in April and at the very beginning of
credit, have allowed the percentage of
May in danger of being broken off.
their “ advances,” i. e., customers’
With memories of the collapse of the
loans and overdrafts, to rise to over 56
mark in mind, a great deal of nervous­
per cent of their deposits, whereas 50
ness manifested itself in Germany, and
per cent is looked upon as the normal
a quiet but very substantial movement
upper limit. In addition, the drains
of funds out of Germany began, which
upon the gold reserve of the Bank of
greatly intensified an already difficult
England, particularly those of June
and early July, have reduced the re­
But the Reichsbank held the situa­
tion vigorously in hand, and the Ger­
man banks held together loyally. New
York, and possibly some other foreign

serve ratio of the banking depart­
ment from 55.8 per cent on May 22 to
41.9 per cent on July 10. Britain’s
capacity to extend loans to the rest of

August, 1929


M id -C o n t in e n t B a n k e r

These bonds are legal fo r the investment o f Life Insurance
Companies and are acceptable collateral fo r
State Funds in the State o f Missouri


aP^ew Issue o f 6%


$ 650 ,000.00
The Pierre Chouteau


Pierre Chouteau bonds
are jointly and uncon­
d ition ally guaranteed
by the Federal Surety
Company and the New
J e r s e y Fidelity and
Plate Glass Insurance
C o m p a n y , both of
whom have been ap­
proved by the United
S ta te s Treasury De­
partment as sureties on
Federal bonds.
joint guaranty, binding
on either or both com­
panies, runs directly to
the bond holder, is uncancellable, and is a
binding contract on the
part of the surety com­
panies that i n s u r e s
p r o m p t payment of
principal and interest.


r o v id e n t

134 North La Salle Street
Federal Reserve Bank of St. Louis

The Pierre Chouteau
Apartments are located
on Lindell Boulevard,
in the City of St. Louis.
L in d e ll Boulevard is
one of the best known
residential streets in
the United States, and
is the best location in
St. Louis for a building
of this type.
Bonds dated July 1,
1929, maturing semi-an­
nually from January 1,
1932 to July 1, 1939.
D e n o m i n a t i o n s of
$1,000, $500 and $100.



S e c u r it ie s C o .


M id -C o n t i n e n t B a n k e r

Eui-ope is evidently greatly reduced,
and new issues in London have not
been going very well.
Concern lest our high rates should
pull in a great deal of gold from Eng­
land was a restraining factor in Fed­
eral Reserve policy during the whole
of 1928. The rise in the discount rate
of the Bank of England from 4^2 per
cent to 5Y2 per cent early this year
relieved the situation for a time. But
the pressure on sterling continued.
One contributing factor is presumably
the very large holdings by the Bank of
France of sterling exchange.
opinion is expressed in London that

whenever sterling shows any strength,
there is French selling.
But a further very important factor
in the persistent weakness in sterling
and loss of gold by England has, of
course, been the cessation of Amer­
ican loans to Europe, and the steady
flow of funds from Europe to New
York attracted by the high rates at
the New York Stock Exchange. The
drain on England’s gold has begun
much earlier this year than last year.
The foregoing does not mean, of
course, that Britain’s position is fun­
damentally weak. Basically, Britain
has immense financial strength. I f the

Buy Bonds, Too
The recent popularity of the stock m arket
has withdraw n a certain am ount of atten ­
tion from the general list of bonds, depress­
ing prices and developing m any opportuni­
ties for excellent purchases.
Do not forget th at one of the cardinal
principles of investment is diversification.
Build your financial structure on a firm foun­
dation of sound bonds.

W e will be glad to discuss the situation with
you and assist in finding the proper bonds
to suit your needs.

CEntral 3 0 0 0
Federal Reserve Bank of St. Louis



711 St. Charles St.

iMembers New York Stock Exchange

August, 1929
Bank of England chose to use its dis­
count rate in accordance with pre-war
policy, she could undoubtedly protect
her position quickly and effectively,
just as The Netherlands Bank, by rais­
ing its discount rate in the spring, con­
verted an outflow of funds into an in­
flow of funds. Incidentally, the best
Dutch financial opinion in May was
that the increased rates of interest in
The Netherlands had not interfered
with business in The Netherlands.

P osition o f F ran ce
The French money market is the one
money market which has immense
strength and great capacity to expand
credit. The Bank of France has a gold
reserve of 44 per cent against demand
liabilities, which is not high, since 40
per cent is looked upon by the finan­
cial authorities as the point below
which they would not wish to go. But
the Bank of France has, in addition,
over a billion dollars of gold exchange,
the major part of which is probably
held in London, though a large part is
also in New York.
France has a natural and justifiable
desire to convert her foreign exchange
into gold. As a first-rate financial cen­
ter, she is unwilling to carry perma­
nently her reserves in foreign coun­
tries. Moreover, France sees clearly
the dangers of unsound credit expan­
sion throughout the world when great
countries employ the gold-exchange
standard rather than the strict gold
But France can bring in gold only
by taking it away from other coun­
tries, chiefly England, but also the
United States. In the present situa­
tion, France is moving slowly, cau­
tiously and with special consideration
for all the interests involved. She
took gold from London in 1927 and
1928, and she took 310 million dollars
of gold from New York in these years.
Even in 1929, France has been able
to add about 182 millions dollars to
her gold reserves, but she has obtained
much of this from Germany, while
Germany in turn has taken the gold
from London.
France has no wish to disturb the
international money market. But those
who look forward to very easy money
in the near future will do well to have
in mind that easy money, in all prob­
ability, would be an immediate signal
to France to bring gold from New
York and London, with a tightening of
rates in New York and London.

Is M o n ey G ettin g E asier?
In gauging the position of the Amer­
ican money market, we must take a
world-wide view, and we must have a

August, 1929


M id -C o n t i n e n t B a n k e r

certain perspective in time— at least
enougil to allow for seasonal varia­
tions. I f we compare our position in
June and July of 1929 with the same
period of last year, it is clear that
money is decisively higher than it was
a year ago, although we thought then
that it was very high.

Sound Bonds

The “ high” for call money in July
of last year was 10 per cent as against
15 per cent this year. On July 5 of
last year, call money “ renewed” at 6
per cent, and the renewal rate stood at
5 1/2 and 6 per cent down to July 11.
This year, the renewal rate was 7 per
cent on July 5. It rose to 9 per cent
on July 9, at which figure it remained
unchanged down to July 15. Time
money at the New York Stock Ex­
change was 5% to 6 per cent in late
June and in early July in 1928, where­
as it has ranged from 7y2 to 8 per
cent in the same period in 1929. Com­
mercial paper stood at 4 % to 5J4 per
cent in this period of 1928 as against
a straight 6 per cent in late June and
early July in 1929. Acceptances, de­
spite the easing in July of this year,
still stand a full 1 per cent above last
year’s quotations at the same time.

Investment Stocks

I M C O f c







14 S. La Salle St.


34 Pine St.

And if we look at the position of
the world at large, it is clear that
money is far tighter than it was a year
ago, and the financial strain is greater
than it was a year ago.— Taken from a
recent address before the Montana
Bankers Association.

Lp w .B rq an & Co.

T rem b le R esigns as O fficer o f
F id elity N ation al
George T. Tremble, senior vice-pres­
ident of the Fidelity National Bank
and Trust Company, Kansas City, Mo.,
resigned July 1.

M em bers
Federal Reserve Bank of St. Louis

N ew

Y ork S to c k E x c h a n g e

I New York Curb Exchange ( Associate)


Mr. Tremble has been contemplating
this step for the last several years, but
has been hesitant to leave the Fidelity
and at one or two previous suggested
dates of resignation has been per­
suaded to stay by the directors and
management of the bank. He is leav­
ing because he feels that his private
interests should receive his complete
attention and the devotion of his full
Mr. Tremble has been a vice-presi­
dent of the Fidelity since September
5, 1916, coming to the Kansas City
bank from a bank of which he was at
that time, and still is, president— the
Central National Bank of Ellsworth,
Kansas. Mr. Tremble is heavily in­
terested in a number of Kansas banks,
in addition to large ranch and cattle
interests in that portion of the state
near Salina and Ellsworth.


P in e S t r e e t , S t. L o u i s

a n n ou n ce the op en in g o f a

N e w Y o r k O ffice

50 Broadway
fo r


tran saction



gen eral

in ­

vestm ent and S tock E x c h a n g e business.
Telephone W H I tehall 3853

16, 1929

M em b er N e w Y ork Stock Exchange


M id -C o n t i n e n t B a n k e r






August, 1929

(IN C O R P O R A T E D )


United Investment Assurance Trust
Founders Trans-Oceanic Trust
United Investment Assurance Corp.

Founders Securities Trust

Underwriters and
D istrib u to rs o f
^Bonds and Stocks

Fiscal oAgents
National Union Bank Building, Boston
37 W all Street, New York



Municipal Bonds



Safety o f Principal
A ll Maturities
A ll Denominations


Tax Exemption

Governm ent,
M unicipal,
Public U tility,
C orporation

4/£ to 6.00 per cent




service in buying and selling listed bonds.

¡Vrite fo r offerings and Bank Discounts


Direct private wires to all principal markets
enable us to render prompt and efficient

3heM aa^tUJSond€k

Members New York, St. Louis and
Chicago Stock Exchanges

Incorporated 1910

National Bank of Commerce Bldg.
St. Louis

Federal Reserve Bank of St. Louis





St. Louis, Mo.

August, 1929


M id -C o n t in e n t B a n k e r



Howard W. Clark, V ice-P resid en t,

M id -C o n tin e n t B a n k er, C hicago


“ While there are still a few indus­
tries that have not shared in the wide­
spread prosperity, the outlook general­
ly for the near future appears exceed­
ingly favorable.”

Gene Burke, formerly a leading bank­

“ The half year just ended has not

Steuben Securities Corporation of

er-citizen of Champaign, 111., has be­
come a resident of Chicago. This an­
nouncement caused no little regret in
his home town but a hearty welcome
awaited him in Chicago banking cir­
cles as he took over the reins as pres­
ident of the new Upper Avenue Bank
on North Michigan Boulevard.
Eugene I. Burke, was formerly vicepresident and cashier of the Citizens
State Bank of Champaign, with which
institution he had been affiliated 29
years. The Burkes are an interesting
family. Mrs. Burke is an accomplish­
ed musician. A son, E. I., Jr., is as­
sistant bank examiner for Illinois,
stands 6 foot two and weighs 200

only witnessed a continuance of the
very prosperous conditions that exist­
ed in 1928, but generally speaking a
marked improvement has been shown
in most lines,” according to an analy­
sis made by Babcock, Rushton & Co.

105 West Adams Street, today an­
nounced that the business heretofore
conducted under that name will be


P riva te W i r e C on nection s to P rin cipa l Cities

Security Building, St. Louis



F ourB illionD ollarI ncrease
This is the increase recorded by one of the world’s largest industries
in the market value of its stock over a period of sixteen years, or a
yearly increase of two hundred and fifty million dollars.
Large or small investors should participate in its future possibilities.
Write or phone for information on the above.

Hale, Waters & Company, Boston
and New York, have opened a Chicago
office at 120 South La Salle Street.
The Chicago territory will be in charge
of Louis V. Francoeur, formerly with
Peabody-Houghteling & Company.

was made

Public Utility

George W. Meyer, president of the

Wilbur A. Gorman, formerly mana­

The announcement

Underwriters and Distributors
of Investment Securities

Opening of a Chicago office at 208

ger of the bond department of Packer,
Cooke & Company, has become asso­
ciated with Guibord, White & Com­
pany, Inc., 105 West Adams Street.
He will be in charge of their whole­
sale department.


by Stephen Miniter, president.

A . B. L e a c h & C o ., Inc.

South La Salle Street, under the man­
agement of James E. Cairns, resident
partner, was announced by E. W . Clucas & Company. The company also
has offices in New York, Philadelphia
and Jersey City.

Bank of Edwardsville, 111., writes this
department advising that his good
looking young son recently left for
California in a $40.00, 1921 Dodge car.
The young explorer expects to be gone
about eight weeks.

known in the future as Miniter & Com­

G* W* Thompson. & Co.

208 S. La Salle St.
Chicago, 111.

506 Olive St.
St. Louis, Mo.

John J. O’Brien, formerly advertis­
ing manager for Brokaw & Company,
has joined the staff of Prince & Whitely, 208 S. La Salle Street, where he will
be in charge of the statistical depart­

Warren Crawford & Alfred J. Dyer
announce the formation of CrawfordDver & Co. to underwrite and distrib­
ute general market securities with of­
fices at 231 South La Salle Street and
also in the Dwight Building, Kansas
Federal Reserve Bank of St. Louis


Y V E T T E C O . , In c .

C h a in S y s t e m

Preference and Common Stocks listed on Chicago Stock Exchange.
W e recommend the purchase of these securities for yield and profit.
C om p lete inform ation w ill be furn ish ed on request.

E. H . O T T M A N


Investm ent Securities

Bankers Building, Chicago



M id-Continent B anker

officers of the company are W . E. Seaberg, vice-president and Emil Horween,
Members of the
board of directors, in addition to offi­
cers, are R. L. Redheffer, Charles Y.
Clark and A. F. Spitzglass.
Mr. Crawford formerly was con­
nected with E. H. Rollins & Sons and
Lee, Higginson & Co., and Mr. Dyer
until recently was secretary and treas­
urer of L. L. Davis Co.


v e s t


In Life’s Necessities
Light, heat and power are
among the necessities of life
used the year-’round by every­
one. To invest in these essen­
tials is to be sure of complete
safety of your principal and a
steady income, unaffected by
good times and bad. Call or
write for our list of public util­
ity securities.


Phone GArfield 3993

L ore Bryan and

August, 1929

£o. Enlarges St. Louis

Office and Opens One in N ew York
N July 1 Love, Bryan & Co., St.


Louis investment house, became
a member of the New York Stock Ex­
change, and on July 11, an associate
member of the New York Curb Ex­
change. A partnership has been form­
ed which includes John A. Love, P.
Taylor Bryan, Jr., W . I. Christopher,
John J. Little, Louis A . Ochs and W il­
liam D. Stewart, Jr., the latter of New
York and a new member of the or­
On July 16 announcement was made
of the opening of a New York office
at 50 Broadway, which is to be in
charge of Mr. Love, with Mr. Stewart
as floor member.
On July 31, W . Arthur Stickney,
resident partner in St. Louis of Rich­
ards & Company, was admitted to mem­
bership. W ith Mr. Stickney’s resigna­
tion from Richards & Company, that
company will close their St. Louis office
and Love, Bryan & Co. has agreed to
extend their services to include Rich­
ards & Company’s clients in St. Louis.
Mr. Stickney will be manager of Love,
Bryan & Co. ’s Stock Exchange De­
The banking rooms formerly occu­
pied by the State National Bank at
Fourth and Locust Streets have been
leased and when the extensive altera­
tions now in progress are completed
Love, Bryan & Co. will be equipped to
render a complete investment banking
The bond department and
real estate loan department will be
continued and a board room and di­
rect wire connections to New York and

other principal cities will be added to
their facilities.
The new offices will probably be
opened early in September and in the
meantime prompt trading service with
New York and principal cities is of­

St. L ou is O ffice, F o ld s, B u ck
& C o. D o in g W ell
The St. Louis office of Folds, Buck
& Company, which opened May 1 in
the Boatmen’s Bank Building under
the management of Irwin K . Cozzens
and Charles L. Stone, Jr., has built up
a remarkable clientele in its first three
months, according to those in charge.
Folds, Buck & Company, with head­
quarters in New York, Chicago and
Milwaukee, handles both bond and
stock issues. The St. Louis office will
serve St. Louis and the surrounding
Among the issues which Mr. Coz­
zens and Mr. Stone have been pushing
since opening the office are: American
Commercial Alcohol, common and pre­
ferred; Bulova Watch Company, com­
mon and preferred; General Independ­
ent Alcohol, 6y2 convertible bonds,
General Theaters Equipment Incorpo­
rated 6 per cent convertible deben­
tures; and General Theater common.
Before coming here Mr. Cozzens and
Mr. Stone were connected with the Chi­
cago office of Folds, Buck & Company.
Both men are St. Louisans, having
been born here and having attended
Washington University.





H ibernia S ecurities C o., Inc.
High Grade Investment Securities



Federal Reserve Bank of St. Louis





423 Bank o f C om m erce Bldg.




August, 1929

M id -C o n t i n e n t B a n k e r



Quotation Record
T h is b o o k le t g iv es the fo llo w in g in fo rm a tio n
o n b on d s listed on the N e w Y o r k S to ck E x ­
ch ange, the N e w Y o r k C u rb, as w ell as on
active unlisted issue.

1925 and 1926 P R I C E R A N G E







5— Y I E L D — I F H E L D T O M A T U R I T Y


Y o u W i l l F in d\
— News of Banks and Bankers.
— Legal Decisions and Free Legal Service.
— Investment News.
— Successful plans for increasing deposits,
advertising your bank, co-operating with
the farmer and creating public good will.
— Discussions of Bank Problems by practi­
cal bankers.

Copy Mailed on Request

(This Coupon Brings Your First Issue)

Knight, Dysart & Gamble

408 Olive Street, St. Louis, Mo.

Investment Securities

Please enter my subscription for one year (12 issues) for
which I will remit $3 upon receipt of your bill.

401 O L IV E ST.

em bers






h ic a g o

, S


. L

o u is


to ck


xch an ges

Investment Service





Officer .....................................................................................
Bank .......................................................................................
City ................................................ State.............................





Public Utility

p resen t

m ark et

a ffo r d s


op p or­

t u n it y o f in v e s t in g in a ll c la s s e s o f h ig h g r a d e

1 11 11



Ùn l::î
S i;

b o n d s t o g iv e lib e r a l y ie ld s .

Buy your bonds now !




i S
MB» i II H «SW 1

Ja m

e s C W il l s o n & C a
L O U IS V IL L E . R E i m J C R Y * g .

Our list of current offerings will be
sent on request

H .L . R U P P E R T & C O M P A N Y

¿ M e m b e r o f the St. L o u is Stock E xcha nge

402 Pine Street
Our nationwide investm ent wire system en­
ables us to offer our Bank clients the best
buying and selling prices on securities in
any recognized market. IVe invite you to
make use o f this service.
Federal Reserve Bank of St. Louis

MAin 1082

cDire£t ‘‘Private JVires to cAll ‘Principal ¿Markets


August, 1929

M id -C o n t i n e n t B a n k e r

S t

L o u is

S t o c k






furnish accurate quota­
tions, and prompt execu­
tions of buying or selling
orders for listed bonds.
The experience acquired

our fifty-two

years in the investment
field is also at the dis­
posal of our clients.

Francis, Bro.
& Co.

Tune 20 to
July 20
Sale Price

p ar

No Par
No Par
No Par
No Par
No Par
No Par
N o Par
No Par
No Par
No Par
No Par
No Par
No Par
No Par
No Par
No Par
No Par
No Par
No Par
No Par
No Par
No Par
No Par
No Par
No Par
No Par
No Par
No Par
No Par
No Par
No Par
No Par
No Par
No Par

Boatmen’s Nat’l Bank........................
First National Bank............................
Mercantile-Commerce ........................
Franklin-American T r u s t ..................
Mississippi Valley Merchants, Etc. .
St. Louis Union Trust........................
A. S. Aloe Co., P fd ..........................
A. S. Aloe Co., Com ............................
Alligator, C om ......................................
Amer. Inv. “ B ” .................................. ..
Baer, Sternberg & Cohen, C om ........
Bentley Chain Stores, C om ................
Michigan-Davis C o..............................
Boyd-Welsh Shoe ..............................
Brown Shoe, C om ................................
Burkart Mfg., P ref..............................
Burkart Mfg., C om ..............................
Boyd-Richardson, P fd ........................
Century Electric C o ............................
Chicago R 3'. Equip., Com ................
Chicago Ry. Equip., P fd ....................
Coca-Cola Bottling, S ec....................
Consolidated Coal ..............................
Consolidated Lead & Zinc, “ A ” ........
Corno Mills C o ....................................
Elder Mfg., 1st P fd ..............................
Elder Mfg. “ A ” ....................................
Elder Mfg., C om ..................................
Emerson Electric, P fd ...................
Ely & Walker Dry Goods, 2nd Pfd. .
Ely & Walker Dry Goods, C om ........
Fred Medart Mfg., C om ....................
Fulton Iron Works, P fd ....................
Fulton Iron Works, Com ..................
Globe-Democrat, P fd ..........................
Hamilton-Brown Shoe ......................
Hussmann Refr., Com ........................
Huttig S. & D., Com. ........................
Hydraulic Press Brick, C om ............
Independent Brew. 1st, P fd ..............
Independent Packing, Com................
International Shoe, P fd ......................
International Shoe, Com ....................
Johansen Shoe ....................................
Johnson-S. & S. Shoe..........................
Key Boiler Equipt................................
Knapp Monarch, P f d . . . . ..................
Knapp Monarch, C om ........................
Laclede-Christy Clay Prod., P f d . . . .
Laclede-Christy Clay Prod., C o m ...
Laclede Gas Light, P fd ........ .............
Laclede Steel C o..................................
Landis Machine, Com........................
Moloney Electric “ A ” ........................
Mo. Portland Cement........................
Meyer Blanke, Com ............................
Nat. Bearing-Metals, P fd ..................
Nat. Bearing Metals, C om ................
Nat. Candy, 1st P fd ............................
Nat. Candy, 2nd P fd ..........................
Nat. Candy, C om ................................
Nicholas Beazley ................................
Pedigo-Weber S h o e ............................
Pickrel Walnut ..................................
Rice-Stix Dry Goods, 1st P fd ............
Rice-Stix Dry Goods, Com ................
Scruggs-V.-B. D. G., 1st P fd ............
Scruggs-V.-B. D. G., 2nd P fd ..........
Scruggs-V.-B. D. G., Com ................
Scullin Steel, P fd................................
Securities Inv., C om ..........................
Southwestern Bell Tel., P fd ..............
Stix, Baer & Fuller, C om ..................
St. Louis Car, Com ..............................
St. Louis Public Serv., Pfd. “ A ” . .. .
St. Louis Pub. Serv., C om ..............
St. Louis Screw & Bolt, Com ............
Steinberg Drugs, P fd ..........................
Wagner Electric, Com ........................
Wagner Electric, P fd ..........................

E x c h a n g e
Month’ s Range Price
110 %
110 %













Established 1877

Investment Securities










Fourth & Olive Streets

Federal Reserve Bank of St. Louis






Members :
N ew

Kennedy Building


C H e s t n u t 0922

S ecu rity B ld g ., St. L o u is

Y o r k S to c k E x c h a n g e

C h ic a g o S to c k E x c h a n g e
S t . L o u i s S to c k E x c h a n g e

N ew Y o r k Offices:
3 7 W a ll S treet
2 5 0 P ark A v e n u e

W . A r t h u r S tic k n e y , Resident Partner

August , 1929

M ercan tile-C om m erce A d o p ts
M on th ly D iv id en d P olicy
Stockholders of the recently consol­
idated Mercantile-Commerce Bank and
Trust Company of St. Louis on July
1 received an initial monthly dividend
of one per cent on their holdings. A
statement accompanying the dividend
and signed by the president, John G.
Lonsdale, stated:
“ The policy of one per cent month­
ly dividends has been adopted after
careful deliberation.
The conserva­
tism of this program will appeal to
you, I feel sure. After a definite earn­
ing record has been established an­
other study of the subject will be
made, so that the stockholders may
feel that every consideration will be
given to the increase in the income
to the stockholders whenever it may
be consistent with conservative busi­
ness judgment.
“ It gives me pleasure to advise you
that the merger has been carried out
with very little inconvenience to our
customers, and all of our departments
are functioning splendidly.”
The new bank resulted from a mer­
ger of the Mercantile Trust Company
and the National Bank of Commerce
in St. Louis.


M id -C o n t in e n t B a n k e r
of life insurance in force, the exact
amount of business on the books as
of June 30, 1929, being $100,107,095.
This is a goal for which the com­
pany has been striving for some time
and its achievement was the occasion
of an impromptu celebration at the
home office when the news became
The company’s written business for
the month of June was $2,610,557, or
a gain of 30.2 per cent over the same
month of last year.


S tark Is D irector B ro o k ly n
N a tion al C orp oratio n
Edwin M. Stark, vice-president and
director of the Foreman Securities
Company, Chicago, has been elected
to the board of directors of the Brook­
lyn National Corporation, affiliated
with the Brooklyn National Bank, of
which W . C. Redfield, former secretary
of commerce, is president.
He recently resigned from the board
of directors of Woods Brothers Corpo­
ration in which he represented Red­
mond & Co., on the directorate.
I am not so lost in lexicography as
to forget that words are the daughters
of earth, and that things are the sons
of heaven.— Samuel Johnson.




to New York and every
oth er

tations on

any security

to furnish latest
any security or

data on

to list markets on many
inactive stocks and bonds

Your inquiries invited

Mark C.
& Co.

Garfield 4600
Boatmen’s Bank
Members New York Stock Exchange
Members St. Louis Stock Exchange

San F ran cisco M ak es R ead y
fo r A . B . A . C on v en tion
W ith the convention period for the
American Bankers Association set for
September 30 to October 3, the San
Francisco committee in charge of local
preparations announces that already
most of the details of the convention
have been arranged.
This is the first year that the con­
vention has been held in San Fran­
cisco and elaborate plans are beinglaid by that city.
“ During your stay the city will be
literally yours and everything will be
done to make your visit a memorable
one. W e hope that your plans will
make it possible to come early and stay
over after the convention,” declared
the committee in a letter to bankers.
The convention this year marks a
half century of progressive achieve­
ment for the American Bankers A s­

C on tin en tal Passes H u n d red
M illion M ark
Announcement has been made by
President Ed Mays that the Continen­
tal Life Insurance Company, the home
offices of which are in St. Louis, Mo.,
has passed the hundred million mark
Federal Reserve Bank of St. Louis





A R E A L E state Loan reputation extending back to 1848 gives the Codi^ T ru st
Company an enviable background of honor­
able connections and unusually successful
accomplishment. This experience, these
connections and this proven integrity as­
sure you profitable service.

105 South La Salle Street

Corner of Monroe Chicago

Telephone, Randolph 6600

FirSt Mortgage Real Estate Bonds


August, 1929

M id -C o n t i n e n t B a n k e r

ST . L O U IS , M O .
705 Olive St.

K A N SA S C IT Y , M O .
Commerce Bldg.

Dealers in
D iversified Investment Securities
' i!
Federal Reserve Bank of St. Louis

112 W . 3rd St.,
Carthage, M o.

10th and Jefferson,
St. Charles, M o.

613 W . 5th,
Coffeyville, Kansas.

Bank of Saline Bldg.,
Marshall, M o.

305 Commerce Bldg.,
Pittsburg, Kansas.
Exchange Natl. Bk. Bldg.,
Columbia, M o.
M organ Bldg.,
Hutchinson, Kansas.
Central Trust Bldg.,
Jefferson City, M o.
202 Joplin Natl. Bank Bldg.,
Joplin, M o.
601 Huron Bldg.,
Kansas City, Kansas
109 W . M cPherson,
Kirksville, M o.

411 E . Promenade,
M exico, M o.
518 W . Reed Ave.,
M oberly, Mo.
1241/2 South W o o d St.,
N eosho, M o.
107 W . 5th St.,
Newton, Kansas.
150 Broadway,
New York City, N. Y .
313 Corby Bldg.,
St. Joseph, M o.
415 Natl. Bk. of Am er. Bldg.,
Salina, Kansas.
4 2 0 ^ Court St.,
Savannah, Mo.

N o. 7 Traders Bank Bldg.,
Lexington, M o.

H otel Bothwell,
Sedalia, M o.

227 Stuart Bldg.,
Lincoln, Nebr.

1028 Landers Bldg.,
Springfield, M o.

209 Kresge Bldg.,
Topeka, Kansas.

505 First Natl. Bank Bldg.
Wichita, Kansas.

A u g u st, 1929

M id -C o n t i n e n t B a n k e r


O n a representative list of H IG H G R A D E R A IL R O A D , P U B L IC
U T IL IT Y , IN D U S T R IA L , C A N A D IA N and F O R E IG N B O N D S
Furnished by CAMP, T H O R N E & CO., Inc., 29 South La Salle Street, Chicago
Alabama Pr. Co., Ss, 1951.............. 99
Alberta, (Canada), 4% s, 1956........ 90%
Amer. Chain Co., 6 s, 1933................ 9676
American Radiator, 4%s, 1 9 4 7 .... 99%
Amer. Roll. Mills Co., 5s, 1948___ 95%
Amer. Smelt. & Refg. Co., 5s, 1947.. 99%
Amer. Sugar Refg. Co., 6 s, 1937...10376
Amer. Tel. & Tel., 4% s, 1933.......... 97%
Amer. Tel. & Tel. Co., 5s, 1960------10276
Amer. Tobacco Co., 4s, 1951.......... 84%
Amer. Wtr. Wks. & Elec., 5s, 1934 9876
Appalachian Elec. Pr. Co., 5s, 1956 95%
Appalachian Pr. Co., 5s, 1941.. 99%
Argentine, 6 s, 1958............................ 99%
Associated Oil Co., 6 s, 1935............ 10076
Atch. Top. & S. Fe. Ry., 4 4 , 1962.. . 95%,
Atl. Coast Line R. R., 4s, 1 9 5 2 .... 8976
Australia, 5s, 1955.............................. 95%
Austrian, 7s, 1943...............................10376
Baden Consol. Mun., 7s, 1951........ 9276
Bald. Loco. Wks., 5s, 1940............... 10676
B. & O. R. R., 5s, 2000............ 1005/6
B. &. O. R. R., 4%s, 1933........ 97%,
Batavian Pet. Co., 4%s, 1942.......... 9 2 4
Bavaria, Germany, 6%s, 1945........ 947-6
Belgium, 6 s, 1955................................. 10076
Bell Tel. Co., Canada, 5s, 1955_____9976
Bell Tel. Co., Penn., 5s, 1948...........10376
Berlin (Germany), 6%s, 1950.......... 9576
Berlin E. E. & Und. Rys., 6 7 6 s, 1956 90%
Beth. Steel Corp., 5s, 1936.............. 9976
Bolivia, Rep. of, 7s, 1969.................. 8776
Boston Cons. Gas Co., 5s, 1947... 10076
Brazil, 6 7 6 s, 1957.............................. 9176
Bremen (Germany), 7s, 1935........... 100%
Brisbane, Australia, 5s, 1957............ 89%
British Columbia, 4% s, 1951 .......... 91*4
Brooklyn Borough Gas, 5s, 19 67... 10074
Brooklyn Edison, 5s, 1949................ 10276
Brooklyn Union Gas, 6 s, 1947........ 114%
Buenos Aires, 6 7 6 s, 19 55 ................ 10 176
Buenos Aires, Prov., 7s, 1952 .......... 10 176
Buffalo Gen. Elec Co., 5s, 1939...10174
Bush Terminal Bldg., 5s, 1960........ 9876
Butte Electric Pr. Co., 5s, 1 9 51... 100*4
Calif. G. & E. Co., Ss, 1937............ 9976
Calif. Pet. Corp., 5 4 s , 1938............ 99%
Canada, 4%s, 1936.............................. 9676
Canad. Nat’l Ry. Co., 474s, 1 9 57... 9376
Canad. Pacific Rys., 4%s, 1 9 4 6 .... 9574
Carolina Pr. & Lt. Co., 5s, 19 56 . . . 97 76
Cauca Valley, Dept, of, 7s, 1948.. S876
Cent, of Ga. Ry., 5s, 1945............... 9876
Cent. 111. Lt. Co., 5s, 1943.............. 99*4
Cent. 111. Pub. Serv., 5s, 1956.......... 95%
Cent. New Eng. Ry., 4s, 1961.......... 75 76
Cent. Pacific Ry., 5s, 1960.............. 10076
Cent. Pr. & Lt. Co., 5s, 1956.......... 91
C. & O. Ry. Co., 5s, 1939................. IOI7 6
C. B. & O. R. R., 4s, 1949........ 89
Chgo. Mem. & Gulf R. R., 5s,1940 95 74
C. Mil. & St. P. Ry. Co., 4s, 1989. 8176
C. & Nor. Wes. Ry., 474s, 2037__ 93%
C. R. I. & P. R. R., 4s, 1934................ 93*/6
Chgo. Union Stat., 4%s, 1963........ 9576
Chile, 6 s, 1960.................................... 9276
Chile Mtge. Bank of, 674s, 19 57... 9674
Cincinn. St. Ry., 574s, 1952............ 9476
Cities Service Co., 5s, 1966.............. 8476
C. C. C. & St. L. R. R., 4s, 1993. . 8 5
C. C. C. & St. L. R. R., 474s, 19 7792 76
C. C. C. & St. L. R. R., 5s, 1963..10176
Clev. Union Term., 5s, 1973............. 10276
Cologne (Germany), 674s, 1 9 5 0 .... 9376
Colombia, Rep. of, 6 s, 1961..... 8 576
Colorado Pr. Co., 5s, 1953.......... . 98%
Columbia Gas. & Elec., 5s, 1 9 52... 97 76
Columbus Ry. Pr. & Lt.,
Commonwealth Ed. Co., 4%s, 1956 95 74
Connecticut Lt. & Pr. Co., 4% s, 1956 9774
Cons. Gas N. Y., 5 74s, 1945 ............ 104 76
Consumers Pr. Co., 5s, 1952............ 1017 6
Copenhagen (Denmark), 5s, 1952. . 9476
Costa Rica, 7s, 1951.......................... 94 76
Cuba Railroad, 5s, 1952.................... 87%
Cuba, Rep. of, 5 74s, 19 53 ................ 103 76
Cudahy Pack. Co., 5s, 1946............ 9976
Cumberland Co. Pr. & Lt. 4%s 1956 8974
Czechoslovak, 8 s, 1 9 5 1 . . . . . ........... 10976
Federal Reserve Bank of St. Louis

97 4
85 76
8 5 74
94 74
103 74

Bid Asked
Danish Con. Mun. Loan, 5 74s, 1955 97%
Delaware & Hudson Co., 4s, 1943.. 9176
Denmark, 5 74s, 1955........................ 9976
Denmark, King of, 6s, 1942............ 10376
Denver G. & E. Lt. Co., 5s, 1951.. 98 76
Det. City Gas Co., 5s, 1950............ 98
Detroit Edison Co., 5s, 1949.......... IOO7 6 10074
Dominican Republic, 5 74s, 1 9 42... 9576
Duquesne Lt. Co., 474s, 1967........ 9674
Dutch East Indies, 6s, 1947............10276
Edison Elec. Ilium., 4%s, 19 30... 9874
Elec. Pr. Corp. (Germany) 674s 19 50 9176
Finland, Rep. of, 6s, 1945.................. 9276 9274
Fla. Pr. & Lt. Co., 1st, 5s, 1954... 8 6 7 6
Ft. Worth Pr. & Lt. Co., 5s, 1931.. 99
France, 7s, 1949.................................. 10974
General Elec. Co., 3*4s, 1942........... 9474 9476
Gen. Motors Acc. Corp., 5s, 1930. . 9874
General Pet. Corp., 5s, 1940.............. 1017 6 10174
Ga. & Alabama Ry., 5s, 1945 .......... 85 76
Georgia P. Co., 5s, 19 67 ................. 95 76
Georgia Ry. & El. Co., 5s, 1932_____ 98%
German, 7s, 1949................................10576
German Cen. Agr. Bank, 7s, 1950. . 9676
German Con. Mun. Loan, 7s, 1947. 9476
German Ge. Elec. Co., 674s, 1940..12 2 76 123
Goodyear T. & R., 5s, 19 57 .............. 9 176
Grand Trunk West. Ry;, 6s, 1936 .. 103 76 104
Grt. Nor. Ry. Co., 474s, 1976............ 9376 94
Great Western Pr. Co., 5s, 1946... 9974
Greek Gov’ t, 7s, 1964........................ 9676
Gulf Oil Corp., Pa., 5s, 1947............ 99% 99 76
Haiti, Republic, 6s, 19 52 .................. 96 76 96 74
Hamburg, Germany, 6s, 1946............ 9476 94)4
Hocking Valley R. R., 474s, 1999.. 9476 95
Hudson County Gas Co., 5s, 1949. . 99% 99%
Humble Oil & Refg. Co., 5%s, 1932.10074 10076
Hungary, Kingdom, 774s, 1 9 4 4 .... 9976 100
Hungary Municipal, 774s, 1 9 4 5 .... 9476
Idaho Power Co., 5s, 1947.................. 98
111. Bell Tel. Co., 5s, 1956................ 102%. 10276
111. Cent. Ry., 474s, 1966................ 9876
111. Pr. & Lt. Co., 5s, 1956................ 9276 9276
111. Steel Co., 474s, 1940.................... 9774 97%
Ind. Mich. Elec. Co., 5s, 19 57 ......... 100 74 100 74
Ind. Pr. & Lt. Co., 5s, 1957 ............. 9776 98
Inland Steel Co., 474s, 1978.............. 90% 90%
Internat. Paper Co., 5s, 1947.......... 8674
Internat’l Ry. C. A., 674s, 1947... 9476
Interstate Pr. Co., 5s, 1957............ 8976
Iowa Pub. Serv. Co., 5s, 1957........ 94%
Italy, 7s, 1951 ...................................... 95
Japanese Gov’ t, 674s, 1954.............. 9976 100
K. C. Pr. & Lt. Co., Ss, 19 52 ........ 10 176 101%
K. C. Southern Ry. Co., 5s, 1950.. 97%,
K. C. Term. Ry. Co., 4s, 19 60 ........ 87 76
87 74
Kansas Pr. Co., 5s, 1947.................. 8974
Laclede Gas Lt. Co., 5s, 1934........ 99
Lehigh Valley R. R., 474s, 2003 . . . 9 576
9 5 %2
Ligg. & Myers Tob. Co., 5s, 1951. 99%
Lorillard Co., 5s, 1951....................... 8174 81 76
L. & N. R. R. Co., 4s, 1940............ 9176
Louisville C. & E. Co., 5s, 1952... 10074 IOO76
Louisville Lighting Co., 5s, 1953 .. 99 74
Lyons, City of, 6s, 1934.................... 9976 100
Maine Cent. R. R., 474s, 1935........ 9374
Manitoba Power Co., 5 74s, 1951... 9874
Mass. Gas Co., 474s, 1931................ 98
Mich. Cent. R. R. Co., 5s, 1931___ 9976 100
Mid. Steel & Ord. Co., 5s, 1936___ 9876
Milwaukee Gas Lt. Co., 474s, 1967 9 5 76 9 6
Minnesota Pr. & Lt. Co., 5s, 19 55 98 74 99
Minn. St. P. & S. S. M. Ry., 4s, 1938' 8 6 7 6
Miss. Riv. Pr. Co., 5s, 1951............ 9874
Mo., Kans. & T. R. R., 4s, 199 0 . . .
83 76 83 74
Mo. Pac. R. R., 5s, 1977 ................... 9676 9 7
Montana Power Co., 5s, 1943.......... 10176
92 76
7s, 1952. . .101 5 6 10174
Montreal (Canada), 4% s, 1 9 4 6 .... 9174
Morris & Co., 474s, 193 9 ................. 8376 84
Mutual Fuel Gas Co., 5s, 1947........ 10076
Narragansett Co., 5s, 1957.............. 97%
97 76
National Press Bldg., 574s, 1950. . 93 7 2
National Tube Co., 5s, 1952............ 10076
Netherlands, 6s, 1972........................ 10576 106
New Brunswick (Can.), 474s, 1936 9574
New Eng. G. & E. Co., 5s, 1947... 91%
New Eng. Tel. & Tel. Co., 4%s, 1961 97 76
Newfoundland, 574s, 1942................ 100 74 10174

N. Orleans Term. Co., 4s, 1 9 5 3 .... 87
New South Wales, 5s, 1958............ 91j6
N. Y. Cent. Lines, 4%s, 2013........ 9476
New York Edison Co., 5s, 1944...102
New York Pr. & Lt. Co., 4%s, 1967 9076
N. Y. Tel. Co., 474s, 1939................ 97%
Niagara Falls Pr. Co., 5s, 1 9 32....100
Nor. Ind. Pub. Service Co., 5s, 1966 98
Nor. Pac. Ry. Co., 4s, 1997............ 8 6 7 6
Nor. States Pr. Co., 5s, 1941.......... 9976
Norway, Kingdom of, 5 74s, 1965... 9976
Nuremburg, City of, 6s, 1952.......... 8 6 7 6
Ohio Pr. Co., 5s, 19 52 ..................... 99 76
Ohio Riv. Edison Co., 5s, 1 9 5 1 .... 9676
Ontario, Prov. of, 4% s, 1931.......... 9674
Ontario Power Co., 5s, 1943..........101
Oreg. Wash. R .R . & Nav. Co;. 4s 1961 85
Oslo, Norway, 5 74s, 1946................ 9674
Pacif. Coast Pr. Co., 5s, 1940........ 9874
Pacif. Gas & Elec. Co., 5s, 19 42... 10076
Pacif. Tel. & Tel. Co., 5s, 19 52 . . . 102 76
Panama, 574s, 1953............................ 98
Penn. Central Lt. & Pr., 474s, 1977. 8974
Penn. R. R. Co., 5s, 1964................10176
Penn., Ohio & Det. R. R. 474s, 1977 9476
Penn. Pr. & Lt. Co., 5s, 1953........100
Peoples Gas Lt. & Coke Co., 5s, 19471.10176
Pere Marquette Ry., 5s, 19 56 ..........100 76
Peru, 6s, 19 60 .................................... 8576
Phila. Elec. Co. (P a.), 4%s, 1967. 9674
Pillsbury Flour Mills Co., 6s, 1943.104%
Potomac Edison Co., 5s, 1956........ 9476
Pressed Steel Car Co., 5s, 1 9 3 3 .... 9076
Prussia (Germany), 674s, 1 9 5 1 .... 9274
Pub. Service Elec. & Gas 4%s, 1967 96%
Queensland (Australia), 7s, 1941...10676
Republic Iron & Steel, 5s, 1 9 40... 100 76
Rhine-West. Elec. Pr., 7s, 19 50. . . . 10 176
Rio Grande do Sul, 7s, 1966............ 9476
Rio de Janeiro, 8s, 1946.................... 10576
Rotterdam, (Holland), 6s, 196 4 . . . . 103 76
St. L., Ir. Mt. & So. Ry., 5s, 1931.. . 98 74
St. Paul Gas Lt. Co., Ss, 1944........ 9874
St. Paul Union:Stk. Yds. Co., 5s, 1946 98l
Salvador, 8s, 1948..............................108 76
San Joaquin, Lt. & Pr., 5s, 1957.. . 97%
San Paulo, City, 8s, 1952.................... 10874
San Paulo, State, 8s, 1936..................10476
Saskatchewan, Prov., 5s, 1943........ 9774
Sauda Falls Co., 5s, 19 55 ................ 100 76
Saxon Pub. Wks., 7s, 1945............ 9676
Shawinigan Wtr.&vPr. Co., 474 s, 1967 9174
Shell Union Oil, 5s, 1947 ................ 9 576
Sherman Hotel Co., 5 74s, 1 9 3 0 .... 98%
Siemens & Halske, A. G., 7s, 1936.102 76
Sinclair Pipe, 5s, 1942 ...................... 9 376
Sixty-one Broadway Bldg., 5 74s, 1950 9674
Solvay Amer. Inv., 5s, 1942............ 9576
Southern Bell Tel & Tel. Co. 5s 1941.10076
Southern Calif. Edison Co., 5s, 1951 9974
So. Pac. Ry., 474s, 1968.................. 9276
Southern Ry. Co., 4s, 1956.............. 85 74
Southwest Bell Tel., 5s, 1954............ 10276
Stand. Oil Co. N. Y., 474s, 1951... 9476
Stand. Mill. Co., 574s, 1945.............. 9976
Sun Oil Co., 574s, 1939.................... 99 76
Swedish Gov’t, 574s, 1954.................. 10376
Swift & Co., 5s, 1944........................101
Swiss Gov’t, 5 t4 s, 1946...................... 10276
Texas Pr. & Lt. Co., 5s, 1937........ 98
Toronto, Canada, 5s, 1934.................. 9674
Union Oil Co., Calif., 5s, 1935______97%,
Union Pac. R. R., 4s, 1947................ 9276
U. K. Gt. Br., 5 74s, 1937...................10274
United Steel Wks., 674s, 1 9 5 1 .... 84 76
Uruguay, 6s, 1960.............................. 9676
Utah Lt. & Tr. Co., 5s, 1944 .......... 9 176
Va. Ry. & Pr. Co., 5s, 1934 ............ 99 76
Wabash Ry., 5s, 1976.......................... 9676
Wash. Wtr. Pr. Co., 5s, 1939............ 9976
West Penn. Pr. Co., 5s, 1946............. 10176
Western Electric Co., 5s, 1944...........IOI7 6
Western Md. Ry., 4s, 1952................ 77%
Western Pacif. R. R., 5s, 1946.......... 9776
Western Union Tel. Co., 4 4 s , 1950 . 95 76
Wheeling Steel Corp., 4 4 s , 1953... 86
Winnipeg (Canada), 4%s, 1 9 4 6 .... 9 0 4
Yadkin River Pr. Co., 5s, 1 9 4 1 .... 9 9 4
Youngstown Sheet & Tube, 5s, 1978 9976

99 74
96 74
102 74
100 74
85 74
103 74
98 76
108 74
9 5 74
102 74
997 6
91 74
9 54


August, 1929

M id -C o n t in e n t B a n k e r

Illinois Wank N ew s
State Bank, Wenona, president; W. R. McGaughey, vice-president, Citizens
National Bank Decatur, vice-president; Ervin T. Geist, president, Joliet Trust
and Savings Bank, Joliet, treasurer; M. A. Graettinger, Chicago, secretary:
Olive S. Jennings, Chicago, assistant secretary.
GROUP CHAIRM EN : 1. H. F. Strickler, cashier, Commercial Trust and Savings
Bank, Lomax; 2. M. O. Williamson, president, Peoples Trust and Savings Bank,
Galesburg; 3. John Bruce, vice-president, First National Bank, Freeport; 4. N. L.
Johnson, vice-president, Batavia National Bank; 5. S. J. Marshall, assistant
cashier, Peru State Bank; 6. Frank Page, président, Hughes State Bank, Hume;
7. W. R. Camp, president, First National Bank, Bernent; 8. S. E. Pierson,
cashier, Greene County State Bank, Carrollton; 9. Louis Kuhrtz, cashier, Buena
Vista State Bank, Chester; 10. G. R. Corlis, cashier, Anna National Bank;
11. E. A. Hintz, cashier, The Peoples Trust and Savings Bank, Chicago.
GROUP SECRETARIES: 1. Raus Cooper, cashier, First State Bank, Oquawka;
2. J. B. Fleming, cashier, Bank of Peoria; 3. F. C. Baker, vice-president, Still­
man Valley Bank; 4. A. R. Blackburn, assistant cashier, Joliet Trust and Sav­
ings Bank; S. T. E. McNamara, assistant cashier, Union National Bank, Streator;
6. F. W . Claar, cashier, The National Trust Bank, Charleston; 7. R. A. M c­
Kinney, assistant cashier, The Moore State Bank, Monticello; 8. J. L. Thomas,
president, Quincy-Ricker National Bank and Trust Company, Quincy; 9. Rufus
Grant, cashier, Third National Bank, Mount Vernon; 10. H. H. Nooner, cash­
ier, Elkville State Bank; 11. T. F. Chamberlain, president, Austin National Bank,

The next annual meeting of the Illi­

The recent statement of condition

nois Bankers Association will be held
at Peoria.

of the State Trust and Savings Bank
of Peoria shows total resources in ex­
cess of $2,700,000, and deposits of more
than $2,140,000.

The Morrisonville State Bank has
total resources in
deposits of more
capital of $50,000,
ment of condition

excess of $430,000,
than $360,000 and
as shown by state­
as of June 29.

The recent statement of condition of
the First Bank and Trust Company
of Cairo shows total resources in ex­
cess of $2,799,000, deposits of more
than $2,350,000 and capital of $250,000. Officers of the bank are : Reed
Green, president; W . H. Wood, O. B.
Hastings and H. E. Halliday, vicepresidents; H. R. Aisthorpe, cashier
and secretary; H. C. Steinel, H. E.
Emerson and V . M. Brown, assistant

V. W. Spann has resigned as cashier
of the First State Bank of Thebes.

The Citizens State Bank of Keithshurg has installed a vault ventilator
in its vault.

Dr. H. L. Patterson has been elected
president of the Citizens State Bank
of Creai Springs, succeeding the late
W . S. Brim.

Recent statements of condition of
the six banks of Aurora show the six
banks to have total deposits in excess
of $15,400,000.

The Second Northwestern State Bank
of Chicago recently celebrated its tenth

Henry C. Schumacher, president of
the Elmhurst State Bank, recently cele­
brated the completion of his thirtyfifth year of service to that institution.

The newly organized Main


Bank of Chicago recently held formal
opening of that institution.

A. W. Moore, of Cowden, has been
elected president of the Shelby Coun­
ty Bankers Association.

cess of $379,000, deposits of more than
$324,000 and capital of $25,000. Since
surplus and undivided profits of more
than $27,000 exceed the capital it is
an honor roll bank. Officers of the
bank are: J. L. Tober, president; E.
B. Simmons and F. E. Whitfield, vicepresidents; H. L. Warner, cashier; W .
I). Patton, assistant cashier.

The State Bank and the First Na­
tional Bank,
been merged.





G-. C. Kiest, for more than 20 years

The Home Bank and Trust Company

assistant cashier of the Lincoln State
Bank of Lincoln, has resigned. He is
succeeded by Albert Schweikert.

and the Hatterman and Glantz State
Bank, Chicago, have been merged un­
der the name of the Home Bank and
Trust Company.

The Citizens State Bank of Park
Ridge recently held formal opening of
that institution.

William H. Engbring, president of
the Effingham State Bank, recently
celebrated the end of his fiftieth year
in the banking business.

The Edwardsville National Bank and
the Citizens State and Trust Bank of
Edwardsville have been merged un­
der the name of the Edwardsville Na­
tional Bank and Trust Company, with
a capital stock of $200,000 and a sur­
plus of $100,000. The combined re­
sources of the two institutions total
more than $4,000,000.

Lester Wilhelm has been elected
cashier of the Dixon National Bank,
succeeding the late Mahlon Forsyth.
Howard G. Byers has been elected as­
sistant cashier to succeed Mr. W il­

The First National Bank of Marissa
has installed a fire-resisting and burg­
lar-proof vault.

The Citizens National Bank of Chi­

The statement of condition as of

cago Heights recently opened for busi­
ness with a capital of $200,000.

June 29 of the Farmers State Bank of
Medora shows total resources in ex­
Federal Reserve Bank of St. Louis

M. A. G r a e t t i n g e r

The bank force of the Dime Savings
Bank of Carthage recently gave a sur­
prise party for Fred Salm, cashier of
the bank, the occasion being Mr.
Salrn’s birthday.

The building of the First National
Bank of Libertyville is being remod­
eled and enlarged.

Dunbar W. Vollor, assistant cashier
of the Home Banks of Elgin, and old­
est employe of the bank from point
of service, having recently completed
his thirty-ninth year with that insti­
tution, died recently at his home in
that city.

A. Horning,

cashier of the First

State Bank of Westmont, has resigned.

The capital stock of the Union State
Bank of South Chicago has been in­
creased from $200,000 to $250,000.

The recent statement of condition
of the Bethalto State Bank shows to­
tal resources in excess of $217,000, de­
posits of more than $179,000 and cap­
ital of $25,000. Officers of the bank
are: J. M. Olin, president; R. E. Mar­
shall, vice-president; H. E. Kelsey.

August, 1929
cashier; L. C. Bowman, assistant cash­


M id -C o n t i n e n t B a n k e r
signed to accept a position in Evans­
ville, Indiana.

000, deposits of more than $400,000
and capital of $50,000.

The Plymouth Exchange Bank re­

The recent statement of condition

Total resources of the Gillespie Na­

cently celebrated its thirty-third anni­

of the First National Bank of Annap­
olis shows total resources in excess
of $200,000, deposits of more than
$150,000 and capital of $25,000.

tional Bank are more than $1,500,000
and time deposits are approximately
$850,000. Since surplus and profits ex­
ceed the capital of $50,000 by $25,000
it is an honor roll bank.

The building of the Fox Lake State
Bank has been remodeled.

The recent statement of the First
The First State Bank of Princeville
has opened for business, succeeding the
defunct Home State Bank of that city.

The First National Bank of Barring­
ton recently held formal opening of
its new banking home.

Officers of the recently formed Group

National Bank of Livingston shows to­
tal resources in excess of $440,000,
deposits of more than $370,000 and cap­
ital of $25,000.

Emil G. Winter, Commerce Guardian
Trust and Savings Bank, Toledo, Ohio,
recently visited his father, cashier of
the Lenzburg State Bank.

The Martinsville State Bank, accord­

The recent statement of condition of

ing to its recent statement of condition
has total resources in excess of $475,-

the First National Bank of Nashville
shows total resources in excess of $1,-

Ten Clearing House Association are:
F. Guy Hitt, Zeigler, president; John
B. Lee, Harrisburg, vice-president;
Kenneth E. Cook, Zeigler, secretarytreasurer.
A full line of
charges have been installed by the
member banks.

The Lemont National Bank, Lemont,
has recently equipped its banking floor
with “ P latt7’ bandit and bullet proof
equipment. This is the second bank
at Lemont which has been equipped
with this protective installation by the
J. H. Wise Company of St. Louis.

New officers of the Marshfield Trust
and Savings Bank of Chicago are:
Henry F. Hawkins, president; Andrew
Theil and and J. A. Ross, vice-presi­
dents; Edward Umbricht, cashier; G.
M. Jacobs, assistant cashier.

The Drovers State Bank of Vienna
has total resources in excess of $260,000, deposits of more than $200,000
and capital of $50,000, according to its
recent statement of condition.

The recent statement of the Fin?
National Bank of Christopher shows
total resources in excess of $1,400,000,
deposits of more than $1,300,000 and
capital of $60,000.

ANKS who use us as a Chi­
cago correspondent have
available to them the in­
vestment advice and counsel of an
organization which has devoted
nearly forty years to the invest­
ment of millions of dollars of its
own funds and those of
its customers.


The Farmers State Bank of Hoffman,
according to its recent statement of
condition, has total resources in ex­
cess of $124,000, deposits of more than
$100,000 and capital of $15,000.

The City National Bank of Harris­
burg has total resources in excess of
$1,380,000, deposits in excess of $1,100,000 and capital of $100,000, accord­
ing to its recent statement of condi­

William Stevenson, president of the
First State Bank of Tilden, is on a
vacation in California.

Leo Engert, assistant cashier, First
National Bank, Murphysboro, has re-
Federal Reserve Bank of St. Louis

In the Heart of the Financial District



M id -C o n t in e n t B a n k e r

120,000, deposits of more than $730,000 and capital of $75,000.

The First National Bank of Colum­
bia, according to its recent statement
of condition, has total resources in
excess of $1,180,000, deposits of more
than $1,000,000 and capital of $50,000.
Since surplus and profits of $66,000
exceed the capital it is an honor roll

The recent statement of condition
of the First National Bank of Vienna
shows total resources in excess of
$580,000, deposits of more than $360,000 and capital of $60,000.

The First National Bank of West
Frankfort has total resources in ex­
cess of $1,800,000, deposits of more

Augnst, 1929

than $1,680,000 and capital of $25,000. Since surplus and profits exceed
the capital it is an honor roll bank.

The recent statement of condition of
the First State Bank of Olmstead
shows total resources in excess of
$127,000, deposits of more than $100,000 and capital of $20,000.

The First National Bank of Ray­
mond and the Raymond State Bank
have merged.

Paul Zimmerman, president of the
Oak Park Trust and Savings Bank, de­
livered an address before a recent meet­
ing of Melrose Park Chamber of Com­

New officers of the St. Clair County
Bankers Association are: W .



nady, First National Bank, East St.
Louis, president; D. L. Schaefer, presi­
dent, Summerfield State Bank, vicepresident; George B. Gieser, assistant
secretary, First National Bank, O’Fal­
lon, secretary; Cyrus Thompson, First
National Bank, Belleville, treasurer.

J. E.

Easterday, cashier, Ramsey

National Bank, Ramsey, has been elect­
ed president and C. A . Griffith, of
Brownstown, has been elected secretary
of the Fayette County Bankers Associa­

The building of the State Bank of
East Moline has been remodeled.

The new officers of the Stephenson
County Bankers Federation are : Geo. L.
Baldwin, Lena State Bank, chairman;
W . C. Pfender, State Bank of Freeport,
vice-chairman; K . H. Ivnowlton, Knowlton State Bank, Freeport, secretarytreasurer.

The recent statement of condition of
the State Bank of Colusa shows total re­
sources in excess of $139,800, deposits of
over $104,900 and capital of $25,000.
Officers of the bank are : Geo. W .
Singleton, president; Jesse Lionberger,
vice-president; Everett Dorothy, cash­
ier. Mr. Dorothy has been cashier of
the bank since last November and suc­
ceeded O. T. Pettet, who went to the
State Bank of Nauvoo as cashier.

Lloyd Borngasser has resigned as
assistant cashier of the Fairbury Bank
at Fairbury.

New officers of the Henry County


Bankers Association are : Frank Tap­
per, Woodhall, president; Walker W .
Kerr, Orion, vice-president; Harold
Fischer, Kewanee, secretary-treasurer.

Henry Struble has been elected pres­

ILLIN G N ESS and the ability to


perform any service are the prime
requisites o f a bank. Our unlimited facilities,
here and abroad, equip us to serve you. A
friendly bank where it’s a pleasure to do business.

The Foreman Trust And Savings Bank
La Salle and W ashington Streets, Chicago

Federal Reserve Bank of St. Louis





ident of the River Forest State Bank.

Reed Bridgford, Farmers Bank of
Joy, has been elected chairman of the
Mercer County Bankers Federation.

The building of the State Bank of
Hoiles & Sons, Greenville, has been re­
modeled and enlarged.

E. P. Hull and F. J. Reu have been
elected directors of the State Bank of
Burnside. Mr. Reu was formerly cash­
ier of the bank and is now president of
the Hancock County National Bank of
Carthage. George W . Singleton has
been elected a vice-president of the
Smart people find out your secret—
and keep it to themselves.
Those who are often pickled are not
usually well preserved.

August, 1929

Special Train


M id -C o n t in e n t B a n k e r

panses of North Dakota farm lands are

W illCarry Bankers
next visible untilOver
night veils the view.

Minneapolis and St. Paul are reached
the following morning, October 11, and
here the party will be guests of the Min­
nesota Bankers Association on a trip
about the Twin Cities. The special will
arrive in Chicago the morning of Octo­
ber 12. Members of the party who are
from St. Louis or Kansas City territory
may go direct to these points from St.

N orthern Route from A. B. A . M eeting
N opportunity for bankers to see
the scenic areas of the Northwest
will be provided by a special train which
will traverse the scenic northern route
from San Francisco to Chicago after the
close of the A. B. A. convention.
The special will leave San Francisco
the evening of October 3 and proceed
northward through Portland and Seat­
tle. From Portland the trip east will
be made over the Northern Pacific Rail­
way. By this route a large part of the
most famous scenes in America may be
viewed, the Shasta Mountains, the dis­
tant Coast Range, the Cascades and the
Standard Northern Pacific equipment
will provide enjoyable travel comforts
for this trip. There will be open sec­
tion, compartment, and drawing room
sleepers, dining cars, baggage car and
observation library car. “ Famously
good” meals en route will feature deli­
cious foodstuffs produced in the North­
Stops will be made at Portland, Long­
view, Tacoma and Seattle for auto trips
and sightseeing at the large Pacific
Northwest lumber mills, docks, etc. A
short ocean sidetrip will be taken from
Seattle to Victoria, B. C. and return,
occupying one day, October 7. Leaving
Seattle that evening, the train will cross
the Cascade Range, the first of a pro­
cession of 28 mighty mountain ranges
which come within view of Northern
Pacific train windows during the trans­
continental journey. *
The next morning a stop will be made
at Yakima, Washington, for a trip
through the apple producing area which
supplies apples not only to American
markets but to foreign countries. Spo­
kane will be viewed by an auto tour
which will include the great power
projects and the Falls of the Spokane
River and the party will entrain again
after a dinner dance at the Hotel
Superlative Rocky Mountain scenery
will be the next day’s treat in the “Land
of Sparkling Water” and green forests.
Much of the journey across the moun­
tains and plains traces the trail Lewis
and Clark blazed in 1805.
Montana Bankers Association will be
host at Helena. Eastward from that
point the train crosses the Old Indian
and cattle country, following for miles
the weirdly beautiful Yellowstone River,
a portion of the 1,406 miles of rivers
along the way between Seattle and
Western North Dakota presents the

Federal Reserve Bank of St. Louis

spectacle of the Bad Lands. For thirty
miles the train passes weird and gro­
tesquely shaped buttes, hills and mounds
into which color was burned by great
lignite fires of past ages. In this region
Roosevelt once ranched. The broad ex-

...................................................................................... ...

¡Ra n k e r s F l a p
- GL U E -L O C K E D f


Xjour Im p o rta n t M a il
................................................................... „ “

B e r k o w it z En v e l o p e
..K A N S A S C I T Y - S T . L O U I S l I

111111111111 11111111111111111111111


A Complete Banking Service
The Midland Bank offers exceptional facilities for transacting
banking business of every description. Together with its affilia­
tions it operates over 2 4 5 0 branches in Great Britain and Northern
Ireland and, in addition to offices in the Atlantic Liners Aquitania,
Berengaria and Mauretania, has agents and correspondents in all
parts of the world.
The offices of the Bank in Poultry, London,
E.C. 2 and at 19 6 Piccadilly, London, W. 1 are specially equipped
for the use and convenience of visitors in London.


H E A D O F F I C E : 5 T H R E A D N E E D L E S T R E E T , L O N D O N , E .C . 2

E S T A B L IS H E D 1817

With which is amalgamated TH E WESTERN A U STRALIAN BANK
Paid-Up C a p ita l....$ 37,500,000
Reserve fund............ 29,500,000
Reserve Liability of
Proprietors .......... 37,500,000
Aggregate Assets

Sept. 30, 1928


General Manager, A L F R E D C H A R L E S D A V I D S O N .
H E A D O F F IC E , George Street, Sydney, N ew South W ales.
L O N D O N O F F IC E , 29 Threadneedle Street, E . C. 2.
549 BRANCHES AND AGENCIES in the Australian States, Federal Territory,
Zealand, Fiji, Papua, Mandated Territory of New Guinea, and London.


Population, 6,300,000; Area, 2,974,581 square miles; Sheep, 104,267,100; Cattle, 11,964,000;
Horses, 2,123,000; Imports, $740,024,445; Exports, $143,055,559.

Annual Value of Australia’s Products
Agriculture, $491,475,000; Pastoral, $596,860,000; Dairying, $234,899,800; Mining, $120,037,000; Manufacturing, $2,043,465,000; Total, $3,486,736,800
F O R E IG N B IL L S C O L LE C T E D — Cable remittances made to, and drafts drawn on Foreign
places DIRECT. Circular notes 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 LD .

St. Louis Agents: N A T IO N A L B A N K O F C O M M E R C E

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is now the owner of the First State
Bank of Hedley. The merged institu­
tion is operating in the Security State
Bank building.


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August, 1929

M id -C o n t i n e n t B a n k e r






Bryan Harrell, assistant cashier of

Bankers Association for the coming
year are: President, L. B. Griffith;
W. Murphy, Jr., was recently ap­
first vice-president, W . A. Canon ; sec­
pointed assistant cashier of the Guar­
ond vice-president, D. H. Moyers; sec­
antee National Bank of Houston.
retary and treasurer, H. F. Huffaker.

the First National Bank of Bishop has
gone to Robstown where he is to be
connected with the Gouger National
Bank of that place.

Brownwood is remodeling its


The officers of


D. Towery recently became a di­



shows resources of $161,914 in its last
statement. The bank has deposits of
more than $140,000. It is capitalized
at $15,000.

A recent statement of the First Na­

rector of the Crockett State Bank. He
fills a vacancy left by the resignation
of J. M. Ellis.

tional Bank of Iowa Park shows re­
sources of more than $1,125,000. De­
posits are over a million dollars.

The Security State Bank of Hedley

The First State Bank of Petersburg

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11111111111111111111111111111111111 11111111111111111111111111111111111111111111


The Farmers State Bank of Center
has just moved into its new $40,000
banking home.

The last statement of the Continen­
tal National Bank of Houston reveal­
ed resources of more than $11,000,000.
Deposits of the bank amount to near­
ly $10,000,000. Capital stock of the
bank is $750,000. Surplus and undi­
vided profits are more than $430,000.

Under the managership of



James, cashier of the First State Bank
of Pendelton, that bank has continued
a steady growth since Mr. Janies came
three years ago. The directors de­
clared a semi-annual dividend of 6 per
cent in June.

Officers for the Panhandle Bankers
Association for the coming year are:
J. C. Anderson, president; J. M.
Crews, first vice-president; Holman
Kennedy, second vice-president; L. B.
Steele, secretary; and C. A. Gibner,
treasurer. Amarillo has been selected
as the next meeting place.

T. E. Harrison and George W. Coats
are the new assistant cashiers of the
First State Bank of Stamford.

F. L. Pelton has assumed his duties
as cashier of the Stockyards National
Bank of Fort Worth.



U n io n

B ou le v a rd

E n tra n ce


F o re s t

P ark .

St. Louis, Mo.
T h e G a tesw orth a ffo r d s the m ost ideal liv in g con d ition s
fo r b oth perm an en t and tran sien t gu ests. A c c o m m o d a ­
tion s ra n g e fr o m H o t e l R o o m s and Su ites, to com p letely
fu rn ish ed and serv iced A p a rtm en ts.
T h e G a tesw orth is rea d y and eq u ip p ed to serv e y o u fo r
an y length o f tim e fr o m a d a y to a year.

Daily Rates from $3.50.
Apartments $115.00 to $300.00 per month.

'.aiiiiiiiiiiiiiiiiiiiiiiiiiiiiH fliiiiiiiiiiiiiiiiiiiiM iiiiiiiiiiiiiiiiiiiiiiiiiiiiiim iiiiiiiiaiiiim iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii::
Federal Reserve Bank of St. Louis

The statement of the First National
Bank of Cincinnati, as of June 29,
shows total resources in excess of $58,000,000, deposits of more than $42,000, capital stock of $6,000,000, sur­
plus of $3,000,000 and undivided profits
of more than $2,000,000.

The statement of the Birmingham
Trust and Savings Company of Bir­
mingham, Alabama, as of June 29,
shows total resources in excess of $21,900,000, deposits of more than $18,000,000, capital of $1,000,000, surplus
of $1,200,000 and undivided profits of
more than $260,000.

The combined statement of condition
of the Bank of Manhattan Company,
New York, as of July 1, shows total re­
sources in excess of $675,000,000, de­
posits and due to banks and customers
of more than $519,000,000, capital of
$22,250,000, surplus of $30,000,000 and


M id -C o n t i n e n t B a n k e r

August, 1929
undivided profits of more than $13,2 0 0 ,0 0 0 .

The statement of the First National
Bank of Philadelphia as of June 29
shows total resources in excess of $70,000,000, deposits of more than $57,000,000, capital of $2,500,000, surplus
of $5,500,000 and undivided profits in
excess of $1,590,000.

The statement of the Fourth Nation­
al Bank of Atlanta, Georgia, as of
June 29, shows total resources in ex­
cess of $42,500,000, deposits of $36,500,000, capital of $1,400,000, surplus
of $1,800,000 and undivided profits of
more than $1,000,000.

The recent statement of condition
of the Angleton State Bank of Angleton shows total resources in excess of
$770,000, deposits of more than $720,000 and capital of $25,000. Officers of
the bank are: Louis J. Wilson, presi­
dent ; E. L. Boston, vice-president; E.
L. Lehman, cashier; Mrs. T. J. Ben­
nett, assistant cashier. The Angelton
State Bank recently completed the re­
modeling of their bank building and
the installation of marble fixtures.

L. M. Pollan has been elected active
vice-president of the recently reorgan­
ized First State Bank of Rice.

The New Morrison, when
completed, w i l l b e t h e
world’ s largest and tallest
hotel— 46 stories high, with
3,400 rooms

The recent statement of condition
of the Continental National Bank of
Port Worth shows total resources in
excess of $11,400,000, deposits of more
than $10,300,000 and capital of $750,-



The recent statement of condition of
the First National Bank of Eldorado
shows total resources in excess of $527,000, deposits of more than $36,000 and
capital of $75,000. Officers of the
bank are: J. N. Christian, president;
R. P. Hinyard and J. E. Hill, vicepresidents; W . O. Alexander, cashier;
L. L. Baker, assistant cashier.

The recent statement of condition of
the Swenson National Bank of Swen­
son shows total resources in excess of
$140,000, deposits of more than $93,000 and capital of $25,000. Officers of
the bank are: R. S. Ward, president;
J. D. Patterson and T. Houston Ward,
vice-presidents; Miss Willie Stafford,

The recent statement of condition of
the First National Bank of
shows total resources in excess
000, deposits of more than
and capital of $50,000. Robt.
ton is cashier of the bank.

of $230,$160,000
M. Bar­

The recent statement of condition of
the First National Bank of Midland
shows total resources of more than $1,-
Federal Reserve Bank of St. Louis

C o m e r M a d is o n a n d C la r k S tre e ts

1 .
Every room is outside, with bath, circulating
ice water, bed-head reading lamp, telephone
and Servidor, which assures privacy by means
of its “ grille” feature (exclusive with the M o r­
A housekeeper is assigned to each
floor, and all guests enjoy garage privileges.
W rite or W ire for Reservations

Home of the


? , t ° t e S 'A

C A °s e


M id -C o n t in e n t B a n k e r

498,000, deposits in excess of $1,200,000 and capital of $100,000. Since
surplus and profits of $164,000 exceed
the capital it is an honor roll bank.
Officers of the bank are: Clarence
Scharbauer, president; E. P. Cowden
and W . H. Cowden, Jr., vice-presi­
dents; M. C. Ulmer, cashier; Jno. P.
Butler and Bert Ross, assistant cash­

The recent statement of condition of
the Oakwood State Bank shows total
resources in excess of $318,000, de­
posits of more than $289,000 and cap­
ital of $25,000. Officers of the bank
are: 0 . Wiley, Jr., president; R. R.
Wiley, vice-president and cashier; L.
L. Haley and Miss Stacy Keller, as­
sistant cashiers.

rell, cashier; Howard E. Farmer, as­
sistant cashier.

The recent statement of condition of
Peoples State Bank of Hallettsville
shows total resources in excess of
$234,000, deposits of more than $194,000 and capital of $40,000. Officers
of the bank are: Dr. C. T. Dufner,
president ; W . D. Timm, vice-president ;
M. I. Bozka, cashier; H. J. Schornack,
assistant cashier.

Orin W. Whitley has been elected
cashier and a director of the First Na­
tional Bank of Robstown. J. E. Gar­
rett/ is president of the bank and F. M.
Stubbs is vice-president. The capital
of the bank is $50,000, surplus and un­
divided profits $10,000 and deposits

The recent statement of condition of
the First National Bank of Franklin
shows total resources in excess of
$500,000, deposits of more than $349,000 and capital of $50,000. Since sur­
plus and profits of $57,000 exceed the
capital it is an honor roll bank.

The recent statement of condition of
the First National Bank of Baird
shows total resources in excess of $1,000,000, deposits of more than $980,000 and capital of $50,000. Officers of
the bank are: Tom Windham, presi­
dent; Henry James, Ace Hickman and
A. R. Kelton, vice-presidents; W . S.
Hinds, active vice-president; Bob Nor-

August, 1929

The recent statement of condition of
the Irving State Bank of Irving shows
total resources in excess of $159,000,
deposits of more than $134,000 and
capital of $20,000. Officers of the
bank are : D. W . Gilbert, president ;
E. O. Terry, vice-president ; A. P.
Mauk, cashier.

The recent statement of condition of
the Grapeland State Bank of Grapeland shows total resources of more
than $217,000, deposits in excess of
$152,000 and capital of $20,000. H.
A. Layne is cashier of the bank.

The recent statement of condition of

O pens M id -A u gu st


the Muenster State
resources in excess
posits of more than
ital of $17,500. J.

Bank shows total
of $165,000, de­
$120,000 and cap­
M. Weinzapfel is

The recent statement of condition of
the First National Bank of Troup shows
total resources in excess of $295,000,
deposits of more than $206,000 and
capital of $25,000. Since surplus and
undivided profits of $63,000 exceed the
capital it is an honor roll bank. Of­
ficers of the bank are: J. H. Sharp,
president; S. Jarvis, vice-president;
John Walton Pace, cashier; Newman
F. White, Miss Edna Marwilsky and
Max A. Jarvis, assistant cashiers.

The recent statement of condition of
the First State Bank of Carthage
shows resources in excess of $450,000,
deposits of more than $400,000 and
capital of $25,000. Officers of the
bank are: B. F. Payne, Jr., president;
Horace R. Allison, cashier; R. L. Oden,

The recent statement of condition of
First National Bank of Mesquite shows
total resources in excess of $296,000,
deposits of more than $218,000 and
capital of $50,000. Officers of the
bank are: Chas. A. Tosch, president;
Bedford Galloway and J. D. Bruton,
vice-presidents; N. E. Shands, cashier.
Last March this bank took over the
First State Bank of Kleburg.


U fi

111 S O U T H


t | F| Dl M il if
1 1 L I Ml i l l IL

____ ^ f l O T E L



CNewest an d M o s t
M o d em H otel in the
City ~ C on ven ien tly
L ocated ju st 2 B locks
from Monument Circle

New York’s new hotel truly expres­
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pleasant rooms each with Servi­
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»50 AND UP

and radio provisions.


General Manager


>00 AND UP


Federal Reserve Bank of St. Louis





M a n a g in g
D ir e c to r



M id -C o n t i n e n t B a n k e r

August, 1929

Harry H. Rogers, president of the


Exchange National Bank of Tulsa, has
been elected a director of the First
National Bank of Guthrie.

deposits of more than $62,000,000. The
combined surplus, undivided profits,
and capital stock of both banks amount
to $6,428,676.

Darwin E. Wells has succeeded G.
L. Thompson as cashier of the Bank
of Hunter.

A late statement of the State Na­
tional Bank of Weleetka shows re­
sources of $421,593, deposits of $382,994, and surplus and undivided profits
of $13,599. Its capital stock is $25,-

The statement of the First State

Frank A. Sewell, president of the

Bank of Tuskahoma on June 29 shows
resources of $115,778. Its deposits are

First National Bank of Texhoma has
been connected with the bank since its
organization in 1906. Arthur Littell,
vice-president, has been with the bank
for nineteen years, and E. Lee Nichols,
cashier, is serving his seventeenth year.
All of the officers are active in the
management of the bank.

The First National Bank of Antlers
shows in a recent statement resources
of $847,624. Its deposits are $669,395, surplus and undvided profits
amount to $37,000. The capital stock
of the bank is $100,000.

00 0.

The Security National Bank of Lawton has become a bank and trust com­
pany operating under state charter.

The last statement for the First Na­
tional Bank and Trust Company of
Tulsa shows resources of more than
$42,000,000. Deposits are in excess of
$38,000,000. The bank is capitalized
at $2,500,000, and shows surplus and
undivided profits of more than $1,157,000. Waite Phillips is chairman of
the board of directors. R. Otis McClintock is president.

The Oklahoma National Bank of
Chickasha is considering constructing
a new six-story office building.

Harold Mullins has been elected di­
rector of the Morris National Bank.
He takes the place of William N.
Moore who died recently.

The Farmers and Merchants Na­
The new home of the Security Na­

tional Bank of Fairview, with a cap­
ital of $25,000, shows resources of more
than $329,000. Deposits are $282,663.
Surplus and undivided profits amount
to nearly $8,000.

tional Bank of Clinton which is now
being built will cost nearly $100,000
and will be a model of its kind.

The combined statement of the Ex­
change National Bank and the Ex­
change Trust Company of Tulsa shows

The Prague National Bank has add­
ed a saving department to its service.

Total resources of the First Bank
of Roosevelt, according to its last
statement, are $572,877. D e p o s i t s
amount to more than $475,000. The
bank has a surplus of $25,000 which
ecpials its capital stock. Its undivided
profits are $12,985, thus making it an
lionor roll bank.

The last statement of the Oklahoma
State Bank of Mulhall shows resources
of more than $384,000. The bank has
more than $11,000 in surplus and un­
divided profits. Deposits exceed $350,-



J. M. Berry, of Tulsa, who has re­
tired as chairman of the board of the
Tulsa National Bank, which has since
merged with the First National Bank
and Trust Company of Tulsa, of which

©beCbaseRational IBank
o f the City o f clSerw York
Pine Street corner of Nassau
Surplus and Profits
Deposits (June 29, 1929)





H. W

ig g in

Chairman of the Board



cH u g h

Chairman o f the Executive Committee


L. C l a r k s o n


Carl J. Schmidlapp
Charles A. Sackett
Hugh N. Kirkland
Reeve Schley
Henry Ollesheimer
James H. Gannon
William E. Purdy
James T. Lee
George H. Saylor
Sherrill Smith
M. Hadden Howell
Alfred C. Andrews
Joseph C. Rovensky
Robert 1. Barr
Ruel W. Poor
George E. Warren
Edwin A. Lee
George D. Graves
Leon H. Johnston
Frank O. Roe
William H. Moorhead
Harry H. Pond
Horace F. Poor
Samuel S. Campbell
Edward E. Watts
William E. Lake
J. Sperry Kane
Vice-President and Cashier
W i l l i a m P. H o l l y
T. Arthur Pyterman
Frederick W. Gehle
Ambrose E. Impey
Alfred W . Hudson
Robert J. Kiesling
James L. Miller
Lynde Selden
Joseph Pulvermacher
Thomas B. Nichols
Franklin H. Gates
George S. Schaeffer
Arthur M. Aiken
George A. Kinney
,S. Frederick Telleen
George G. Milne, Jr.
Otis Everett
Frank M. Totton
Russell C. Irish
Harold L. VanKleeck

Foreign and Trust Department Facilities
Federal Reserve Bank of St. Louis

3 0



Per Day
and Up

800 Baths

O ld Fashioned Hospitality
in a M odern Setting
In the Grand Central Section, 10 minutes
from Penn. Station, near Times Square,
Fifth Avenue shops and important com ­
mercial centres and theatres.

¿Radio in ¿very Room->
Single Rooms $3 to $5 per day
Double Rooms $4 to $6 per day

S. Gregory Taylor,

P resid en t

Oscar W . Richards,

M an ager





August, 1929

M id -C o n t i n e n t B a n k e r

lie is a director, was recently present­
ed a handsome platinum watch by the
directors, officers, and employees of
the bank, commemorating the fortyeight years he has spent in the bank­
ing business.

Total resources of the First National
Bank and Trust Company of Watonga
are in excess of $750,000 according to
the recent statement of the bank’s con­
dition. Deposits are more than $675,000. The bank has nearly $20,000 in
surplus and undivided profits.

The Bank of Gotebo has recently
remodeled part of its building.

installed a new vault and safety de­
posit boxes. The Bank of Gotebo con­
solidated with the First National Bank
of Gotebo about the first of the year
and since then has been using the
building formerly occupied by the First
National Bank. The consolidated bank
had deposits of $380,000 at the last
call for statement.

John R. Holmden, who has been con­
nected with the First National Bank
of Nash for three and a half years,
recently had to give up his position
on account of his health.

It has

The Wilburton State Bank, which

opened for business April 25, 1928, has
gained steadily in deposits since its
organization. On April 25, 1929 it had
deposits of $153,409. On June 6, it
had deposits of more than $195,000.
The bank has earned ten per cent
since its founding, and it now is build­
ing a new home. P. S. Coleman is
president of the bank. R. C. Small­
wood is cashier.

The Hopeton State Bank celebrated
its tenth anniversary on July 19, by
giving a party for its customers and
friends. John Mackey is president of
the bank; J. R. Warwick and Dr. D.
B. Ensor, vice-presidents; J. F. Field­
er, cashier, and O. D. Cook, assistant

The Washita County bankers were
hosts to the bankers of Kiowa and
Custer Counties at a general get-to­
gether recently. Part of the program
consisted of the unveiling of the Ben
Kiehm memorial at Bessie. The gran­
ite monument was erected by the Okla­
homa Bankers Association as a memo­
rial to Mr. Kiehm who lost his life
while defending his bank against ban­

The First National Bank of Cordell
in its last statement shows resources
of more than $375,000. Its deposits
are in excess of $335,000.


Good food, cheerful rooms, restful comfort and
superior service will make your stay at The New
Bismarck linger as a pleasant memory long after
your departure.
European hospitality, American conveniences,
Reasonable rates.
All our dining rooms are air-cooled and delight­
fully comfortable even in mid-summer.
All Outside Rooms, $2.50 up.
W ith Bath, $3.50 up.

L. Mullins, who was made an as­

sistant cashier of the Morris National
Bank, has now been made a director
of that institution. George M. Reeves,
cashier of the same bank, has made an
admirable record as liquidating agent
for the closed Security State Bank of
Morris. The bank closed on January
12, 1929 and since that time it has
paid seventy per cent. The bank is
expected to pay out in full.

The Sallisaw State Bank in its re­
cent statement shows resources of
$241,698. Deposits of the bank are
more than $241,000.

The First State Bank of Wister holds
a record of having paid in its twentyone years, forty-two dividends each av­
eraging ten per cent. Its capital has
been increased from $10,000 to $20,000.


The First National Bank of Snyder

Federal Reserve Bank of St. Louis




shows resources of $336,298
cent statement.
$300,000. S u r p l u s and
profits are more than $8,000.
is capitalized at $25,000.

in its re­
are over
The bank

Harry Owens has been added to the
staff of the Bank of McAlester as as­
sistant cashier.

August , 1929


M id -C o n t i n e n t B a n k e r

How Insurance Companies Invest






creased during 1928 by about $1,-

600,000,000 and again during the year
the investment activities of the com­
panies were characterized by a strong
emphasis upon mortgage loans, accord­
ing to Meredith C. Laffey, treasurer of
the Equitable Life Assurance Society.
The growth of the country in business,
and in urban population, has necessi­
tated a gigantic program of building

and despite the set-back in bond prices
during the summer, the yields on the
best issues remain low.
Public utility bonds, which only a
few years ago were a negligible fac­
tor, have loomed larger than the rails
in life company purchases, particular­
ly during the last few months of the
year. The year’s increase in such
holdings is about $250,000,000. Qual­
ity for quality, utility securities af­
ford a little better return than do the

rails, which are held up in price by
the limited supply, their old estab­
lished position as prime investments
and by their exclusion until recently
from the list of investments eligible
for savings bank investment in such
important states as Massachusetts and
New York. The public utilities have
been making enviable records and
their well secured obligations are not
surpassed in desirability by any form
of corporate securities.

and rebuilding, he points out.
In a statement for the Chicago
“ Journal of Commerce” Mr. Laffey
Here and there occasionally one finds
some overbuilding, but in the main the
real estate situation remains sound and
justifies the pouring, by the life in­
surance companies, of hundreds of mil­
lions of dollars into a field which is
both safe and remunerative. The in­
crease in loans of this type is about
$500,000,000, producing a total of $4,278,000,000. Because of the exception­
ally high investment standards im­
posed upon life insurance companies
by the nature of the funds they are
handling, special purpose buildings sel­
dom form the basis for their loans.
Such buildings, necessary as they are,
frequently introduce a more or less
speculative element, and, their financ­
ing is therefore left to more appropri­
ate sources of capital.
Farm loans occupied a most impor­
tant position in life insurance port­
folios, and while they are still bought
in volume, relative to other classes of
real estate mortgages their acquisitions
have declined. This tendency is in no
sense a reflection upon their investment
desirability, but is rather an indica­
tion that other sources of supply,
chiefly the Federal Land Bank and the
Joint Stock Land Banks, with their
ability to issue bonds, the income on
which is free from federal income tax,
have to some extent supplanted the life
companies in this field.
money at moderate rates is available
in quantities to the good agricultural
districts and their economic needs,
once largely dependent upon the sup­
port of life insurance money, are pro­
vided for by these other sources.
The life companies have been fair­
ly steady buyers of railroad bonds
throughout the year, but their aggre­
gate purchases have not loomed large.
There has been comparatively little
new railroad financing ($161,000,000
during the first ten months of 1928),
Federal Reserve Bank of St. Louis

Louisville Bank to H old

$1,000 Y a rd

and Çarden Contest






Garden Contest has been an­
nounced by the Liberty Bank and
Trust Company, Louisville, Kentucky,
and the Courier-Journal and Louisville
Times in cooperation with a group of
leading nurserymen, merchants and
manufacturers of that city.
prizes totalling $400; garden stock
prizes totalling $300; and miscella­
neous garden prizes totalling more
than $300 will be offered.
The object of the contest, according
to J. E. Huhn, president of the Lib­
erty Bank and Trust Company, is to
stimulate a city-wide interest in beau­
tifying home grounds.
Louisville is
already known throughout the nation
as a city of beautiful homes. Improv­
ing home grounds by artistic planting
will enhance this enviable reputation
which the city has earned.
Real estate appraisers attest the
fact that a good lawn, trees and shrub­
bery increase the value of residential
property at least 10 per cent. Thus
the slogan of $1,000 Yard and Garden
Contest, “ You W in I f You Lose” is
proved correct.

3. To enter the contest simply sign
the coupon below, indicating the class
in which you wish to enter and mail'
to the Yard and Garden Contest De­
partment, Liberty Bank and Trust
Company. Main Office, Market at
4. All those entering must send snap­
shots or photos of home grounds taken
between January 1, 1929 and April 1,
1929. These photographs must be in
our hands by April 15, 1929. These
photographs are necessary so that, in
judging, improvement may be noted.
5. Gardens will be judged by a com­
mittee of garden experts to be an­
nounced later, judging to take place in
early part of August.

B a n k Vault In sp ectio n C o.
O p en s N ew Y o r k O ffice
The Bank Vault Inspection Com­
pany, Philadelphia, makers of the Yeo
Rotary night depository for banks,
have opened a branch office at 175
Fifth Avenue, New York City, with
E. S. King as manager. Associated
with Mr. King is J. Herbert Rooke.
This location will make possible bet­
ter service to customers and prospects,
and will effectively take care of the
greatly increased night depository busi­
ness in the New York territory.

Fred D. Diehl, vice-president of the
Liberty Fire Insurance Company, and
chairman of the presale committee of
the National Flower Show held in
Louisville last year, will be chairman
of the committee handling the details
Going Fishin’
of the Yard and Garden Contest. The
judges in the contest and the complete
Two elderly men, both extremely
list of prizes will be announced later.
deaf, met on a country road. “ Dave”
had a fishing pole in his wagon. When
Rules of the contest follow:
The contest is open to all. There he saw his friend “ Jim ” he stopped
the horse.
is no entrance fee, or cost or obliga­
“ Goin’ fishin” ?” shouted Jim.
tion of any kind.
“ I ’m goin’
There will be four classes as in­ “ N o ,” Dave replied.
fi shin ’. ’ ’
dicated below in coupon. Entries will
“ Oh,” said Jim, “ I though mebbe
compete only against other entries in
you was going fishin’. ”
the same class.


M id -C o n t i n e n t B a n k e r

August, 1929



N ew Orleans ‘D ebating Team Wins



Trophy at Tulsa

The recent statement of condition of
the Canal Bank and Trust Company
of New Orleans shows total resources
in excess of $125,000,000, deposits of
more than $93,000,000 and capital of
$6,000,000. Capital, surplus and un­
divided profits total more than $10,500,000.

Construction is under way for the
new branch bank of the Hibernia Bank
and Trust Company of New Orleans,
to be located at Broadmoor.

The capital of the Bank of Commerce
at St. Francisville has been increased
from $30,000 to $50,000 and the name
of the institution has been changed to
the Bank of Commerce and Trust Com­

The New Orleans Chapter, American
Institute of Banking Debating Team,
won the national championship at the
A . I. B. convention in Tulsa, Okla­
homa, where they defeated the Phil­
adelphia Chapter’s team on the sub­
ject, Resolved:
“ That appointment
to official position in a bank should in
the future be conditioned by law upon
the successful passing of educational,
technical and moral tests by the pro­
posed appointee.”
New Orleans up­
held the negative.







Mark Bartlett, captain, Hibernia Bank
and Trust Company, D. R. Hanemann,
Canal Bank and Trust Company, A. E.



ternate, Whitney
Savings Bank.



The New Orleans Chapter, by vir­

ing Trophy for one year.

The Bank of Commerce and Trust

A charter has been issued to the La­
fourche National Bank of Thibodaux.
Capital stock is $50,000.

Left to right:

New Orleans ’
Oldest ‘Bank
Established 1831

Mark Bartlett, D. It. Hanemann, A. E. Romershauser and
P. J. Thibodeaux.

W elcomes the O pportunity
to serve banks and their
cu sto m ers at th e p o rt of
New Orleans

C .
a n k and
Federal Reserve Bank of St. Louis


o fû ^ e z v O rlea n s


tue of their victory will have posses­
sion of the John H. Puliclier Debat­

Company at Mansfield, according to its
statement of June 29, has total re­
sources in excess of $2,875,000, de­
posits of more than $2,000,000 and cap­
ital of $200,000. Officers of the bank
are: E. T. Robinson, chairman; Ben
Johnson, president; R. T. Moore, G. F.
Provost, Frank Hunter and Ned W .
Jenkins, vice-presidents; W . F. Moore,
cashier; J. C. Coyle and Hall Peyton,
assistant cashiers.

The only reason a great many Amer­
ican families don’t own an elephant is
that they have never been offered an
elephant for a dollar down and easy
weekly payments.— Nashville Banner.


tional Bank, and P. J. Thibodeaux, al­


A u g u st, 1929

M id -C o n t in e n t B a n k e r

■i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i



iiiiiiiiiiiiiiiiiiiiiiiiiiimiiiiiiiiiiiiiim miiim mimm imiiiiiiiim

The Indiana National Bank of In­
dianapolis has total resources in ex­
cess of $32,900,000, deposits of more
than $27,700,000 and capital of $2,000,000, as shown by its statement of
June 29. Since surplus and undivided
profits of more than $2,500,000 exceed
the capital of $2,000,000 it is an hon­
or roll bank.
John H. Cox, 86 , president of the
American State Bank of Sheridan,
died recently at the home of his son
in Richmond.

River on Wednesday evening on the
Steamer Washington. Supper will be
served on the boat and there will be
Marcus S. Sonntage, of Evansville,
is the general convention chairman.

Announce Dates of Fifth
Trust Conference
The Fifth Mid-Continent Trust Con­
ference will be held in Detroit, Mich­
igan, November 7 and 8 under the aus­
pices of the Trust Company and Na­
tional Bank Divisions of the American
Bankers Association. Robert O. Lord,


president of the Guardian Trust Com­
pany of Detroit, will serve as general
chairman of the conference.
Trust companies and banks doing a
trust business in the states of Arkan­
sas, Colorado, Illinois, Indiana, Iowa,
Kansas, Michigan, Minnesota, Mis­
souri, Nebraska, North Dakota, Okla­
homa, South Dakota, Texas and Wis­
consin will participate in its sessions.
The meeting will be devoted to the
consideration of the problems of ex­
tending trust service.
To stumble twice against the same
stone is a proverbial disgrace.— Cicero.

The Farmers National Bank of Shelbyville has absorbed the Union State
Bank of Flat Rock.
The banking rooms of the St. Joseph
Valley Bank at Elkhart have been re­
A new bank is to be established at
West Harrison.

Condensed Statement of the

Commercial National Bank
Shreveport, Louisiana

An addition is being built to the
building of the Floyd County Bank at
New Albany.
Resources of the Bank of Gary now
total more than $26,000 and deposits
are in excess of $20,000,000, as shown
by their recent statements of condi­
An addition is being built to the
building of the Peoples Bank of
The Sullivan State Bank is behind
a selling plan for the sale of jersey
milk cows for that community.
Formal opening of the remodeled
rooms of the Irvington State Bank was
held recently.
New fixtures are being installed in
the Citizens Bank of Anderson.

JUNE 29, 1929

Loans and Discounts.........$12,999,497.55
Overdrafts ..........................
U. S. Consols, City of
Shreveport, School Bonds
and Other Securities......... 2,087,068.49
CP her U. S. Government
Banking House, Real Es­
tate, Furniture & Fixtures 1,067,240.18
Cash in Vault, with Banks
and in U. S. Treasury. . . . 2,707,069.01
Interest Earned But Not
Collected ..........................
Customers’ Liability Ac­
count, Letters of C re d it...
T o t a l................................... $19,391,566.83


D ep osits............................
Capital ...$1,000,000.00
Surplus . . .
590,000 00
P ro fits.........


Unearned Interest Col­
lected ..................................
Reserved for Interest,
Taxes, etc..........................
Dividends Unpaid...........


T o t a l................................... $19,391,566.83

A new home for the Greensburg Na­
tional Bank at Greensburg is to be

Combined Capital Responsibility

The Brownstown Loan and Trust
Company recently held formal open­
ing of its new banking home.

Capital ................................................................................................ $1,000,000.00
Undivided Profits .........................................................................

Indiana Bankers to Meet at
Evansville, September 11-12

Capital ................................................................................................
Undivided Profits .........................................................................


The thirty-third annual convention
of the Indiana Bankers Association
will be held at Hotel McCurdy, Evans­
ville, Indiana on Wednesday and
Thursday, September 11 and 12.
Registration begins Tuesday evening,
September 10. Arrangements have
made for a trip down the beautiful Ohio
Federal Reserve Bank of St. Louis



C O M P A N Y , Inc.

oAâti've U n ited States ‘D ep o sita ry
Established 1886

42 Years o f Continuous Service


M id -C o n t in e n t B a n k e r

ai iii ii iii iii ii i ii ii ii ii ii im ii ii im ii ii ii ii ii ii ii ii ii im im m ii m ii ii i ii ii

The Phoenix National Bank of
Nashville has taken control of the Co­
lumbia Bank and Trust Company.
The merged banks have capital stock
T. Brownlee, of Knoxville, pres­
of $250,000 and deposits of $1,500,ident of the Commonwealth Trust Com­
pany and chairman of the board of
the Appalachian Mills Company, is in
The Citizens Bank and Trust Com­
Russia with a delegation of business pany of Rutledge has recently install­
men from New York.
ed a new modern burglar alarm sys­
The Security National Bank of Jackson recently moved into its new bank­
After forty years as president of the
ing home.
First Citizens National Bank of DyersT ENN ESSEE


The Bank of Coltewah recently filed
an amendment increasing its capital
stock from $10,000 to $20,000.

burg, J. N. Parker has retired. John
M. Tarrant was elected to succeed Mr.
Parker as president.

an Old Friend
N oU V

---- a National bank, with the second largest capital struc­
ture among all National banks in the South.
N o 'W

---- the l a r g e s t
National bank in

N o 'W

----with its associate,
the Manhattan
Savings Bank and
Trust Company,
the second most
highly capitalized
banking group in
the South.

N o 'W

----in its 60th Anni­
versary Year.

U nion P lanters


&l T R U S T C O .

cAssociated With

Manhattan Savings Bank & Trust Company
Federal Reserve Bank of St. Louis

<jl 1 A A A A A A


F o r w a r d with ¿M em p h is— Since ’6 9

August, 1929
Clarence Thomas was recently elect­
ed president of the Bank of McKen­
zie. He fills a vacancy caused by the
death of R. B. Moore.
Application has been made for a
charter for the Sweetwater Bank and
Trust Company. It is to be capital­
ized at $75,000.
Joseph Toy Howell, a pioneer lead­
er in Nashville financial development
and vice-president of the American Na­
tional Bank of Nashville, died at his
home June 15.
The First National Bank of Chatta­
nooga in its last statement shows re­
sources of more than $30,000,000. Its
deposits are $24,206,635. The bank is
capitalized at $2,500,000 and has a sur­
plus of $1,500,000 with undivided prof­
its of more than $775,000.
Combined resources of the American
Banks of Nashville are now over $36,000,000 according to the last state­
ment. Deposits are nearly $28,000,000. Capital Stock amounts to $3,000,000. Surplus and profits are $2,560,885.
The Southern Industrial Banking
Corporation was recently capitalized
at $1,000,000.
The fiftieth anniversary of the Gib­
son County Bank of Trenton was pass­
ed recently. T. K. Happel is president
of the institution.
E. T. Murray, formerly connected!
with the Fourth National Bank of
Atlanta, Ga., has been made manager
of the Main Street branch of the First
National Bank in Chattanooga. He
succeeds F. L. Gardener who resignedA recent statement of the Hamilton
National Bank of Chattanooga reveals;
resources in excess of $26,500,000. The
bank has deposits of $21,017,567. The
bank is capitalized at $2,000,000. Sur­
plus and undivided profits amount to.
Two of a Kind.
A soldier went to his colonel and'
asked for leave to go home to help his.
wife with her spring cleaning.
“ I don’t like to refuse you,” said
the colonel, “ but I ’ve just received a
letter from your wife saying that you
are no use around the house.”
The soldier saluted and turned togo. At the door he stopped, turned
and remarked;
“ Colonel, there are two persons in
this regiment who handle the truth
loosely, and I ’m one of them. I ’m not
married. ’ ’

August, 1929




The statement of the Hawesville De­
posit Bank shows total resources in
excess of $750,000. Surplus and undi­
vided profits exceed the capital by
nearly $60,000, making it an honor
roll bank.
Claude Slater, 49, a director of the
Citizens Bank of Erlanger, died re­
cently at his home in that city.
The Commercial Bank of Liberty re­
cently declared its sixty-sixth dividend.
Plans are being made to start a new
bank at Sunrise.
Frank A. MacNeill has been elected
an assistant cashier of the NorwoodHyde Park Bank and Trust Company
of Covington.
George Rue has resigned as cashier
of the Farmers National Bank of Dan­
ville and Janies Robinson has been
elected to succeed him. J. Fleece Rob­
inson has been made chairman of the
board and executive vice-president of
that institution.
The Bank of Pembroke has a dairy
loan department which has done a
Federal Reserve Bank of St. Louis


M id -C o n t i n e n t B a n k e r


1 1 1 1 1 1 1 1 1 1 1 1 1 ■ I M1 1 1 1 1 1 1 1 1 1 ■ 1 1 1 1 1 1 1 1 1 ■ 1 1 1 ■ 1 1 1 1 1 1 ■ 1 1 1 B 1 1 ■ I ■ 1 1 1 . . . . . . . . . 1 1 ■ ■ ■ ■ I

great deal in helping the farmers of
that community build up their dairy

Surplus and undivided profits total
more than $22,000 and exceed the cap­
ital, making it an honor roll bank.
Officers of the bank are: Joe L. Price,
president; Tullus Black, vice-president;
B. L. Trevathan, cashier; J. E. Cross,
assistant cashier.

Directors of the Shelbyville Deposit
N. Manning, president of the Ken­Bank, which opened for business July
tucky Joint Stock Land Bank, Lex­ 1, are: Burnett Wallace, H. D. Mar­
ington, has announced that Robert R.
tin, D. I. Cooper, Roy D. Ratcliffe and
Plays has been chosen as counsel for
Hart Wallace.
the bank.
J. P. Carver, cashier of the Citi­
Montgomery County bankers are con­ zens National Bank of Somerset, has
structing a limeshed at Mt. Sterling in been elected president of the Somerset
order that farmers may have an avail­ Chamber of Commerce.
able supply of limestone.
Andrew J. Gerrein has been elected
The recent statement of condition
of the Bank of Pembroke shows total
resources in excess of $150,000, depos­
its of more than $127,000 and capital
of $20,000. Douglas Graham is presi­
dent of the bank and Chas. W. John­
ston is the cashier.
Leo F. Keller has been elected a di­
rector of the City National Bank of
The Bank of Marshall County at
Benton, according to its recent state­
ment of condition, has total resources
in excess of $550,000, deposits of more
than $510,000 and capital of $20,000.



president of the Bank of Dayton, suc­
ceeding the late Frank C. Vogelback.
T. B. Stephens has been elected cash­
ier of the First National Bank of Latonia.
J. W. Hodge has resigned as cashier
of the Citizens Bank of Morehead and
has been succeeded by Allen H. Points.
The Peoples National Bank of Pa­
ducah has total resources of approxi­
mately $760,000, deposits of more than
$510,000 and capital of $100,000, ac­
cording to its recent statement. Offi­
cers of the bank are: W. A. Black­
burn, president; D. A. Yeiser, Jr. and


American Company
Indiana’s Largest Investment House



The Fletclier American N ational Rank
Largest Ban\ in Indiana




August, 1929

M id -C o n t in e n t B a n k e r

W. E. Cochran, vice-presidents; J. R.
Vallandingham, cashier.
Resources of the First National
Bank of Paducah total more than $4,000,000, deposits in excess of $3,600,000 and capital of $150,000, accord­
ing to its recent statement of condition.
Since surplus and undivided profits
are in excess of capital it is an honor
roll bank.
The recent statement of condition of
the Citizens Savings Bank of Paducah
shows total resources of more than $2,800,000, deposits in excess of $2,500,000 and capital of $100,000. Surplus
and undivided profits total more than
$137,000, making it an honor roll bank.
The City National Bank of Paducah
has total resources of more than $5,000,000, deposits in excess of $4,000,000 and capital of $300,000, according
to its recent statement.
....................................................................................................................................i i i i i i i




ii i i i

■1111 ii m u 1111

Harry C. Landman, for several years
assistant cashier of the First National
Bank of Huntsville, has been elected
cashier of that institution following
the resignation of Raphael Semmes.
J. B. Haslam, credit analyst for the

Birmingham Trust and Savings Bank,
has been elected president of the Bir­
mingham Chapter, American Institute
of Banking.
Henry A. Carpenter has been elected
assistant cashier of the First National
Bank of Jacksonville.
The Peoples Bank of Jemison has
been granted a charter and the bank
has been opened with a capital of
$25,000. H. G. Boyd, president of the
Peoples Savings Bank of Clanton, is
The East Gadsden Bank, Gadsden,
has been organized with a capital of
$25,000 and surplus of $5,000.



.... .
The recent statement of condition of
the Columbus National Bank of Colum­
bus shows total resources in excess of
$1,900,000, deposits of more than $1,600,000 and capital of $100,000. Of­
ficers of the bank are: Jno. W. Slaugh­
ter, president; Geo. P. Waller, vicepresident and cashier; E. R. Hopkins,
trust officer; H. Y. Wingfield and T.
E. Patton, assistant cashiers.
The Kosciusko Bank at Kosciusko,
as shown by its statement of condition

as of June 29, has total resources in
excess of $1,000,000, deposits of more
than $890,000 and capital of $50,000.
Officers of the bank are: F. Z. Jackson, president; E. L. Ray, vice-presi­
dent; J. H. Cain, cashier; W. H. Cain
and C. M. Jackson, assistant cashiers.

Mercantile-Commerce Co.
Finances Many Churches
A booklet just issued by the Mer­
cantile-Commerce Company of St.
Louis shows that it, or its predecessors,
financed churches for a total of $2,317,000; hospitals, $9,230,000; and in­
stitutional buildings, $10,894,000.
The Mercantile-Commerce Company
is the investment unit of the newlyconsolidated Mercantile-Commerce Bank
and Trust Company and has taken
over the business formerly handled by
the real estate loan and bond depart­
ments of the old Mercantile Trust Com­
pany and the Federal Commerce Trust
Company. The latter institution was
the investment division of the old Na­
tional Bank of Commerce.
The booklet lists each project and
points out that for more than a quar­
ter of a century a financing service
has been extended to churches, schools,
hospitals, convents and allied build­
ings, throughout the United States.



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M id -C o n t i n e n t B a n k e r

August, 1929


The seven banks of Arkansas Coun­
ty have installed a charge on all checks
returned because of insufficient funds.
The Mcllroy Bank and Trust Com­
pany of Fayetteville has passed the
million dollar mark in deposits.
J. D. Block, president of the Na­
tional Bank of Commerce, Paragould,
and a director of the Cross County
Bank at Wynne, died recently.
The recent statement of the Bank of
Searcy shows total resources in excess
of $730,000, deposits of more than
$630,000 and capital of $50,000. Since
surplus and undivided profits of $51,000 exceed the capital it is an honor
roll bank. Officers of the bank are:
Tlios. A. Watkins, president; Wyatt
Sanford and Otho King, vice-presi­
dents; H. K. Wood, cashier; Guy J.
Ellis, assistant cashier.

Charles A. Gordon, cashier of the
Simmons National Bank at Pine Bluff,
has been elected president of the Pine
Bluff Clearing House Association.

ident; J. N. Coppock, vice-president;
J. O. Langley, cashier and trust offi­
cer; Herman Gillham, assistant cash­

The Planters Bank and Trust Com­
pany of Forrest City has purchased
new quarters which are being remod­
eled prior to the moving of the bank.

Fount Earl, vice-president of the
First National Bank of Fayetteville,
has been elected cashier of that insti­
tution, succeeding K. C. Key.

The Community Bank and Trust
Company of Hot Springs National
Park has total resources in excess of
$1,000,000, deposits of more than $900,000 and capital of $100,000, as shown
by its statement of June 29. Officers
of the bank are : Hamp Williams, pres-

Thos. C. McRae, Jr., has been elected
president of the Bank of Prescott, suc­
ceeding Ex-Governor McRae, who died
The ignorant can never adjust them­
selves to the unaccustomed.—Ibsen.

The Bank of Eastern Arkansas at
Forrest City has recently installed a
large, new vault.
The statement of the Simmons Na­
tional Bank at Pine Bluff, as of the
last call, shows total resources in ex­
cess of $7,000,000, deposits of more
than $6,000,000 and capital of $200,000. Since surplus and undivided
profits of $530,000 exceed the capital
it is an honor roll bank.
J. W. Hawkins, president of the
First National Bank of Lamar and
vice-president of the First National
Bank of Clarksville, has been appoint­
ed a national bank examiner for the
Eleventh Federal Reserve District.
The three banks of Stuttgart have
combined deposits of more than $2,000,000 and combined assets in excess
of $2,400,000, as shown by their recent
A. C. Bridewell, cashier, and Walter
Allen, assistant cashier, have been
elected directors of the Bank of East­
ern Arkansas at Forrest City.
The statement of the Bank of Baux­
ite, as of June 29, shows total re­
sources in excess of $166,000, deposits
of more than $143,000 and capital of
$20,000. Officers of the bank are: A.
B. Banks, president; Robert F. Lam­
beth, vice-president; W. A. Jennings,
cashier; Lucy Young, assistant cash­
The Citizens National Bank of Har­
rison has been converted into a state
bank and is now known as the Citi­
zens Bank and Trust Company.
Federal Reserve Bank of St. Louis

When in

TT is generally expected that you are
stopping at the Hotel Chase— where
those desiring the best in hotel accom­
modations make their headquarters.
Hotel Chase is ranked among the out­
standing hotels of the country. Its
quiet, unobtrusive service has made it
nationally famous.
On your next trip to St. Louis make
the Hotel Chase your home. 500 large
outside rooms— each with its own bath.

Lindell at Forest Park
C. C. BUTLER, ¿¡Managing Direftor


M id-Continent B anker


August, 1929

First National Bank, both of Neodosha,
have been merged.

....... .................................................... .

T. J. Rhodes, of Frankfort, has been
elected assistant state bank commis­
sioner and Dale R. Ainsworth has been
elected first special assistant.

The Farmers State Bank of Scottsville has been opened for business.
Officers are: B. C. Culp, president;
Ira Keller, vice-president; Lester
Shamburg, cashier.

0. C. Neiswender has been elected a
director of the Fidelity State Bank of
Topeka, succeeding the late John E.

The First National Bank of Burlin­
game is planning to open a savings de­

The oldest banker active in business
in Kansas is the title enjoyed by W.
C. Robinson, chairman of the board
of the Security National Bank of Ar­
kansas City.

Biley Burcham, formerly assistant
cashier of the American National Bank,
Baxter Springs, has been elected first
assistant cashier of the Baxter State
Bank. C. Fred Weiss and Howard G.
Lumbley have also been elected assist­
ant cashiers of the Baxter State Bank.

J. D. Cannon has been elected presi­
dent of the First National Bank of
Toronto to succeed the late R. Sample.

A. R. Cochran, for the past six years
cashier of the Rock State Bank, Rock,
has resigned and has been succeeded
by E . L. Cobel.

Union Trust of Cleveland
Appoints Two Managers

The building of the Prairie State
Bank of Augusta is to be remodeled.

Herbert E. Zdara and Harry Black,
of the Union Trust Company of Cleve­
land, have been appointed managers
of the two new offices of the bank
which were completed last month.
Harry Black, who will manage the
office at East 185th, and Landseer
Road, began his banking experience
with the Citizens Savings and Trust
Company in 1910, and remained with
the organization when it became a part
of the Union Trust Company. Since

A new buildng is to be built to house
the First State Bank of Mullinsville,
replacing the building recently de­
stroyed by fire.
The First State Bank of Cherokee
and the First National Bank of that
city have been merged.
The Union National Bank and the

1925, he has been assistant manager of
the Cedar-Lee office.
Mr. Zdara who will manage the Corlett-E. 116th office, has had 14 years
of banking experience, beginning with
the old Broadway Savings and Trust
Company. For the last 6 years he has
been employed at the Kinsman-140th
office of the Union Trust Company.
He is an attorney-at-law and a member
of the American Institute of Banking.
Arthur Johnson will be assistant
manager of the Landseer-E. 185th of­
fice, and Edward Kubec will assist
Zdara at the Corlett-E. 116th office.

$4.50 Stolen Forty Years
Ago Returned
A letter containing two $20 bills
and one $10 bill was received by Rolla
Wells, chairman of the board o f direc­
tors of the Federal Reserve Bank of
St. Louis, from a man who identified
himself as a former employee wish­
ing to return $4.50 with 6% interest
that he had taken when employed by
Mr. Wells. Figures shoAV that it
takes more than 40 years for $4.50
at 6% interest to amount to $50. The
letter was apparently written with
an aged and shaky hand.
Mr. Wells started a savings ac­
count with the money at the Boat­
men’s National Bank for his first
great grandchild.

The Mid-Continent Banker


has been the leading
Financial Journal

1978 250

Mississippi Valley


for the

$ and PINE- Opened Mar.



fatheHeart of America.


past twenty-five years



Tconq M Y








Federal Reserve Bank of St. Louis

o f the


S E R V IC E t

August, 1929


M id -C o n t in e n t B a n k e r

Çroup Sight R egional Clearinghouse
(¡AssociationPut in Operation


V. DAVIS, cashier of the First
National Bank at Monett, Mis­
souri, has sent the Mid-Continent
Banker the following account of the
organization of the Regional Clearing­
house Association of Group Eight, Mis­
souri Bankers Association.
“ At a recent meeting the permanent
executive committee and officers o f the
clearinghouse were elected. Since the
group meeting last fall an organization
committee composed of two men from
each county and headed by W. Y. Davis
has been at work on the details.
“ The first step in this organization is
in the nature of a credit bureau which is
patterned directly after the Jasper
County Bureau which has been in opera­
tion for several years. The Group
Eight clearinghouse is the first of these
organizations to be formed in the state
and has been sponsored by S. L. Cantley, commissioner of finance. It is Mr.
Cantley’s idea to have the examiner in
charge o f the district make use of the
credit information and in any other way
possible make use of the organization.
“ Although it was not expected that a
large percentage of the banks of the
group would pioneer on this organiza­
tion, the night of the meeting at which
the bureau was set in operation found
40 banks signed up and the assurance
that within a short time over 50 per cent
of the banks of the group would be sign­
ed up. Of course it is only possible to
obtain 100 per cent efficiency when all
of the banks are members. As usual,

in such a move we find a great number
expressing themselves favorably but
wanting to see their neighbors in the or­
ganization before they come in. We
hope within a very short time to have all
of these in the organizations and to
make the membership as nearly 100 per
cent as possible.”
The officers of the Group Eight Clear­
inghouse Association are: C. R. Chinn,
Jr., Webb City, president; A. G. Cofer,
Joplin, vice-president; W. E. Carter,
Carthage, secretary-treasurer.
The executive committee consists of
the officers and one representative from
each county as follows: E. C. Williams,
Noel; J. J. Jack, Ritchey; C. L. Bol­
linger, Carthage; W. V. Davis, Monett;
M. T. Easley, Aurora; B. H. Hart,
Milo; G. L. Koltermau, Golden City;
O. PI. Reran, Lockwood; W. F. Rhodes,
El Dorado Springs.

Industrial Corporations Show
Large Earnings
A comparison of cpiarterly earnings
of 169 industrial corporations in the
United States for the past five years
shows that in the first quarter of 1929
no fewer than 26 companies, or 15 per
cent of the total, reported the largest
earnings of any of the 17 quarters in
the 1925-1929 period, according to the
Midland Bank, Cleveland. The record
of the entire 169 corporations combined
was almost as good, their first quarter
earnings being exceeded only by the
third quarter o f last year.

Just Out!
A New and Revised Second Edition


D . K IL B O R N E

Professor o f Banking and Finance,
The Amos Tuck School o f Administration
and Finance, Dartmouth College.
559 pages, 5 1-2 x 8 1-2, Illustrated
Buckram, $5.00
One of the most widely used books on money and
banking ever published in this country. A book
explaining the factors that lie back of the politicoeconomic forces in business today. It explains
the laws and nature of money; the machinery of
foreign exchange; its effect on business; the in­
tricacies of the Federal Reserve System; the
functions of commercial and Federal Farm
Loan Banks. These, and a host of others, are
thoroughly analyzed in the light of developments
since the war.

Sections o f the B ook
1. Money
2. Foreign Exchange.
3. Commercial Banking and the Federal Re­
serve System.
4. Non-Commercial Banking.
In this revised edition there is a new chapter on
banking operations and the bank statement and
there is much new material in the chapter on
brokers’ loans. The provisions of the McFad­
den Act are explained and other important addi­
tions have been made. Emphasis in this book is
on essentials— upon principles rather than upon
structure. Because of their current importance,
more space than is usual has been devoted to
money and foreign exchange.

Covers such topics as:
— Bank Credit and the Price Level
— The Clearing House
— Bank Supervision
— Commercial Paper Houses
— The Defects of the Old National Banking
— The Fundamentals of the Federal Reserve
— The Operations of the Federal Reserve System


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Non-Commercial Banking
— Trust Companies
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— The Federal Farm Loan System
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This book is the first real economic approach to
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O rd er fr o m

Mid-Continent Banker
S H J W W A L K E It
Federal Reserve Bank of St. Louis

3 0 7 N . 4th Street
<Between Olive and Locust )


408 Olive St., St. Louis, Mo.


M id -C o n t in e n t B a n k e r

A u g u st, 1929

tMissouriBank New s
OFFICERS M ISSO U R I BANK ER S A S S O C IA T IO N : President, F. B. Brady, vicepresident Commerce Trust Company, Kansas City; vice-president, R. W . Holt,
president, Heaton Bank, Craig; treasurer, Chas. B. Mudd, cashier, First National
Bank, St. Charles; secretary, W . F. Keyser, Sedalia; assistant secretary, E. P.
Neef, Sedalia.
GROUP C H A IR M E N : 1. V . J. Howell, cashier, Kirksville Savings Bank, Kirksville; 2. J. M. Smith, cashier, Osgood Banking Company, Osgood; 3. J. E. Barnes,
cashier, Round Prairie Bank, Fillmore; 4. J. E. Hurley, cashier, Sedalia Na­
tional Bank, Sedalia; 5. J. J. Bowman, president, Peoples Bank, Bonne Terre;
6. J. M. Himmelberger, assistant secretary, Morehouse Trust Company, More­
house; 7. W . S. Pettit, vice-president, Union National Bank, Springfield; 8. O. H.
Reran, cashier, Farmers State Bank, Lockwood.
GROUP SECR ETAR IES: 1. J. E. Deaver, president, Paris National Bank, Paris;
2. E. R. Hauser, assistant cashier, Farmers Bank, Polo; 3. L. C. Ringle, cashier,
Farmers Bank, Dearborn; 4. J. L. Mann, vice-president, secretary-treasurer,
Lexington Savings Trust Company, Lexington; 5. Frank C. Hunt, vice-president,
First National Bank, St. Louis; 6. W . O. Bowman, vice-president, First N a­
tional Bank, Cape Girardeau; 7. Irene Young, cashier, Bank of Salem, Salem;
8. W . V. Davis, cashier, First National Bank, Monett.

J. H. Black, president of the Farm­
ers Bank at Hurdland, died at his
home recently.
The recent statement of the Citizens
Bank of Clinton shows resources in
excess of $425,000. Surplus and un­
divided profits of $31,000 exceed cap­
ital by $6,000, thus making it an hon­
or roll bank.
The Washington County Bank, Potosi, has had its banking room equipped
with bullet proof glass and the “ Platt ”
devices, which is a protection making
the bank immune to daylight hold-ups.
The equipment was installed by the
J. H. Wise Company of St. Louis.
Final plans have been made for the
new six-story building to house the
First National Bank of Independence.
Howard C. Murphy has been elect­
ed president of the Miners Bank of
Joplin. He was formerly chairman of
the board of directors. Victor L.
Young and W. H. Landreth were elect­
ed vice-presidents and Virgil H. Board,
The Bank of Poplar Bluff is recon­
structing its building.
At a recent meeting of the board of
directors, Louis C. Muencks was elect­
ed to succeed C. Reinenmer as presi­
dent of the Overland State Bank.
A new building for the Farmers and
Traders Bank of California is in the
process of construction.
A. L. Gosch is the new cashier of
the Malta Bend Bank.
The combined statements of the
“ First” Banks of St. Joseph as of
June 29, show resources in excess of
$9,919,000 and surplus and undivided
profits of more than $694,000. Their
capital stock is $700,000. Deposits are
The recent statement of condition
Federal Reserve Bank of St. Louis

of the Cole County Bank of Jefferson
City shows total resources in excess
of $1,000,000, deposits of more than
$900,000 and capital of $50,000. Otto
J. Busch is cashier of the bank.
The Farmers and Merchants Bank of
Linneus, according to its recent state­
ment of condition, has total resources
in excess of $250,000, deposits of more
than $198,000 and capital of $30,000,
of which $20,000 has been earned. F.
L. Fitch is president of the bank and
J. N. Carter is cashier.
The recent statement of condition
of the Atlanta State Bank shows to­
tal resources in excess of $330,000, de­
posits of more than $280,000 and cap­
ital of $25,000. Since surplus and
profits are more than $31,000 it is an
honor roll bank. W. J. Dealing is
president of the bank and Paul L.
Jones, cashier.
The Bank of Spickardsville has total
resources of more than $167,000, de­
posits in excess of $140,000 and capi­
tal of $15,000, according to its recent
statement of condition. Officers of the
bank are: W. Fred Wolz, president;
G. M. Wolz, vice-president; C. 0. Minter, cashier.
The recent statement of condition
of the Exchange National Bank of Jef­

ferson City shows total resources in
excess of $2,370,000, deposits of more
than $2,000,000 and capital of $100,000.
The Boone County Trust Company,
Columbia, has total resources in ex­
cess of $2,460,000, deposits of more
than $1,290,000 and capital of $75,000.
Since surplus and undivided profits of
$194,000 exceed the capital it is an
honor roll bank.
Officers of the First State Bank of
Lathrop are: W. C. Young, president;
H. C. Sheppard and C. B. Fagin, vicepresident; Joe T. Doherty, cashier;
J. B. Nicholas and Anna Andrews, as­
sistant cashiers.
The recent statement of condition of
the Ray County Savings Bank of Rich­
mond shows total resources in excess
of $390,000, deposits of more than
$316,000 and capital of $50,000. Offi­
cers of the bank are: G. E. Higdon,
president; T. B. Fowler, vice-president;
B. W. Dunn, cashier; M. H. Hauser,
assistant cashier.
The statement of the First National
Bank of Sweet Springs shows total
resources in excess of $200,000, depos­
its of more than $150,000 and capital
of $50,000. Floyd Ripley is cashier of
the bank.

Missouri Group Meetings
Group I .......... . . Paris .......................................................... .October
I I ........ .. .Chillicothe ................................................ October
I I I . .. . . . .St. Joseph (Joint meeting with Group I
of Kansas) ....................................... October
I V . . . . ...Independence............................................ .October


Group V III. . .. El Dorado Springs.....................................
V I I . . . .. . Springfield ................................................
V ........ .. .St. L o u is ....................................................
V I . . . . . ..Sikeston ....................................................




A u g u s t, 1929

The Bank of St. James has total re­
sources in excess of $550,000, deposits
of more than $475,000 and capital off
$50,000. G. A. Muller is cashier of
the bank.
The recent statement of condition of
the Columbia Savings Bank at Colum­
bia shows total resources in excess of
$746,000, deposits of more than $600,000 and capital of $100,000. H. H.
Banks is president of the bank and
B. C. Hunt is cashier.
The First National Bank of Cowgill,
as of June 29, had total resources of
$320,000, deposits in excess of $165,000 and capital of $35,000. Since sur­
plus and profits of $40,000 exceed the
capital it is an honor roll hank.
The Commercial Trust Company of
Fayette, according to its recent state­
ment of condition, has total resources
in excess of $420,000, deposits of more
than $300,000 and capital of $50,000.
Officers of the bank are: L. W. Jacobs,
president; W. E. Miller, vice-presi­
dent; L. W. Jacobs, cashier.
The Bank of Westphalia has total re­
sources in excess of $385,000, deposits
of more than $339,000 and capital of
The recent statement of condition
of the Peoples Bank of Sumner shows
total resources in excess of $111,000,
deposits of more than $79,000 and cap­
ital of $20,000.
G. I. Taylor has been president of
the Sumner Exchange Bank for twen­
ty-five years, J. T. McCormick, cash­
ier for sixteen years and C. E. Wanamaker, assistant cashier for thirty-six
The recent statement of condition of
the Bank of Brunswick shows total re­
sources in excess of $370,000, deposits
of more than $300,000 and capital of
$20,000. Since surplus and undivided
profits exceed the capital it is an hon­
or roll bank.


M id -C o n t in e n t B a n k e r

1 he Boatm en’s N ational
Bank of St. Louis
A BROAD, sound, well rounded banking service

plus a warm personal relationship characterizes
the association at Boatmen’s.
For more than eighty years, Boatmen’s has rendered
experienced banking assistance to great business and
individuals and during this period Boatmen’s has been
a potent factor in the growth and progress of St. Louis
and the Southwest.
In all departments of its business, Savings, Commer­
cial and Individual Banking, Safe Deposit Vaults and
Trust Service you will always find that same personal
warmth and sympathetic understanding which has been
associated with Boatmen’s for more than three quarters
of a century.
Through Boatmen’s National Company, a thoroughly
experienced and well qualified Investment Service is
provided to assist in the sound investment of funds of
any size.
O ldest Bank in é Missouri


Chairman of Board

Vice Chairman



Vice-President and Cashier





Assistant Cashier



Assistant Cashier

Assistant Cashier



Assistant Cashier




Vice-President and Trust Officer

Vice-President and Counsel

The Farmers and Merchants Bank of
Chillicotlie has total resources of more
than $440,000, deposits in excess of
$395,000 and capital of $30,000.
J. H. Cusick has been connected with
the Mooresville Savings Bank for the
past twenty-five years, since organiza­
tion of that bank, and has served twen­
ty years of this time as cashier.
The recent statement of the Wood
and Huston Bank at Marshall has to­
tal resources in excess of $1,900,000,
deposits of more than $1,500,000 and
capital of $100,000. Since surplus and
undivided profits of $222,000 exceed
Federal Reserve Bank of St. Louis

C a p ita l.......................$2,000,000.00
S u rp lu s......................


M id -C o n t i n e n t B a n k e r

August, 1929

the capital it is an honor roll bank.
Officers of the bank are: L. D. Murrell,
president; F, C. Barnhill, vice-presi­
dent ; Cary Huston, cashier; J. C. Lamkin and J. P. Hnston, assistant cashiers.
The Bank of Hardin, according to its
recent statement of condition, has total
resources in excess of $460,000, depos­
its of more than $320,000 and capital
of $75,000.

July 10, 1899, the Fi­
delity opened its doors
to offer a complete finan­
cial service to Kansas
City and the Southwest.
Today it offers its outof-town bank clients, as
well as all other cus­
tomers, a service based
upon the ripe experience
of the 30 years behind
this bank.

The Farmers Trust Company of
Braymer, according to its recent state­
ment of condition has total resources
in excess of $230,000, deposits of more
than $130,000 and capital of $50,000.
The First National Bank of Stewartsville, according to its recent
statement of condition, has total re­
sources in excess of more than $300,000, deposits in excess of $168,000 and
capital of $50,000.
The Farmers Bank of New Boston
has total resources in excess of $113,000, deposits of more than $80,000 and
capital of $15,000, according to its
recent statement of condition.
The recent statement of condition
of the First National Bank of Chillicothe shows total resources in excess
of $1,200,000, deposits of more than
$800,000 and capital of $100,000.
The First National Bank of Cowgill
is one of the two banks in Caldwell
County that is an honor roll bank, hav­
ing surplus and profits equal or in ex­
cess of capital. The First National
was founded in 1887 by James Cowgill
and Sid F. Thomson, cashier, has been
connected with the bank for over twen­
ty years.

Fidelity National Bank
""'Trust Company


FidelityNational Company


Kansas City, Missouri
Federal Reserve Bank of St. Louis

The statement of the First National
Bank of Washington as of June 29
shows total resources in excess o f $1,000,000, deposits of more than $930,000 and capital stock of $25,000. Sur­
plus and undivided profits of more
than $54,000 are in excess of capital
making it an honor roll bank. Officers
of the bank are: G. F. Ivahmann, pres­
ident; E. H. Otto and Emil E. Backer,
vice-presidents; W. H. Kahmann, cash­
ier; Edwin H. Thias, assistant cashier.
The Treloar Savings Bank has total
resources in excess of $197,000, de­
posits of more than $150,000 and cap­
ital of $25,000. Frank E. Hoelscher
is president and A. J. Koewing is cash­
The recent statement of the Peoples
Bank of Hermann shows total resources
in excess of $1,000,000, deposits of
more than $900,000 and capital of
$25,000. Since surplus and undivided


a bank


there must be a reason.
W e like to think that
our assets have quad­
rupled in twelve years
because of our courte­
ously efficient service.

Capital, Surplus, Profits



Largest Bank in R ural

August, 1929


M id -C o n t in e n t B a n k e r

profits of $38,000 are in excess of cap­
ital it is an honor roll bank.
The Bank of Union, according to its
recent statement, has total resources
in excess of $720,000, deposits of more
than $600,000 and capital of $15,000.
Since surplus and undivided profits of
$61,000 are in excess of capital it is
an honor roll bank. L. C. Allersmeyer
is president of the bank and F. H.
Muenstermann is cashier.
The Farmers Bank of Treloar, ac­
cording to its recent statement, has
total resources in excess of $480,000,
deposits of more than $400,000 and
capita] of $40,000. Theo. F. Koch is
president of the bank and A. L. Wessel is assistant cashier.
The recent statement of condition of
the Bank of Washington shows total
resources in excess of $1,900,000, de­
posits of more than $1,700,000 and
capital of $100,000. O. W. Arcularius
is president of the bank and A. C.
Rumpelt is cashier.
The Hermann Savings Bank has to­
tal resources of $1,017,000, deposits
of more than $880,000 and capital of
$60,000. Since surplus and profits of
$72,000 exceed the capital it is an
honor roll bank. John H. Helmers is
president of the bank and E. F. Rippstein is cashier.
H. J. Baker has been elected cashier
of the Bank of Palmyra, succeeding
H. J. Smith, who was dismissed from
service because of misuse of the bank’s
funds. Mr. Baker had previously been
connected with the bank.

S C O N V E N I E N T to the
financing o f the wheat crop
as box cars are to its trans­
portation— such are the facilities
o f the Commerce Trust Company
for the collection o f Grain
Drafts through 24 hour
Transit Service.

According to J. C. Brown, president
of the Bank of Wentzville, the build­
ing of the bank is being remodeled
According to the recent statement
of condition of the Central Missouri
Trust Company of Jefferson City that
bank has total resources in excess of
$2,700,000, deposits of more than $2,498,000 and capital of $150,000. Offi­
cers of the bank are: Sam B. Cook,
president; Howard Cook and Cletus V.
Zuber, vice-presidents; Paul A. Schae­
fer, secretary; L. W. Weiler, trust
$1,847,000 resources, $1,465,000 de­
posits and $200,000 capital is shown
by the recent statement of the Farm­
ers Trust Company of Maryville. Offi­
cers of the bank are: G. L. Wilfley,
president ; W. C. Pierce, W. F. Phares
and G. R. Ellison, vice-presidents; A.
K. Frank, cashier and secretary; M.
S. Hamilton, assistant cashier; H. D.
Snyder and W. H. Allen, assistant
Federal Reserve Bank of St. Louis

Send G R A I N D R A F T S to

(ommercejrust (ompany*
Resources Sxceed 100 ¿Millions

C IT Y ,



M id -C o n t in e n t B a n k e r

A u g u st , 1929

Official Publication o f the St. Louis Chapter


t AMERICAN i n s t i t u t e


August, 1929

L. K. ARTHUR, Editor, Federal Reserve Bank.
utive Secretary, 324 Merchants Laclede Bldg.


A. L. GORDON, President, Federal Reserve Bank.

A. C. RIEDELL, Exec­

Notices intended for publication should be in the hands of the Editor the fifteenth of each month. Write on only one
side of paper and double space. Chapter Headquarters, 316-324 Merchants Laclede Bldg. CHestnut 9280.

LEGAL TENDER is published to promote good fellowship among Chapter members, to record the activities of the Chapter
generally, and to maintain the high ideals of the American Institute of Banking along educational lines of endeavor.

American Institute of Banking
Membership 1929-30
Two thousand A. I. B. members for
the St. Louis Chapter for the ensuing
The local membership has been close
to the one thousand mark for the past
several years, and should be doubled
in comparison to the ratio of educa­
tional enrollments.
Five hundred students were enrolled
in classes last year and with the aug­
mented curriculum, and increased fa ­
cilities for the accommodation of the
members, the total enrollment is ex­
pected to reach the eight hundred
With this expectancy practically as­
sured, no barrier or delay should keep
any banker or bankerette from becom­
ing an A. I. B. member, and one of
the 2,000.
Other large cities in our national
A. I. B. organization are increasing
their membership each year so much
that it leaves St. Louis with an actual
quota of 1,960 members due for 192930.
This is our year— St. Louis.
Mr. John G. Lonsdale, president of
Mercantile-Commerce Bank and Trust
Company takes the office of President
of the American Bankers Association
(the highest bank office in the United
States). The American Bankers As­
sociation is the parent organization of
the American Institute of Banking;
with this incentive and with Colman
Mockler representing St. Louis on the
National Executive Committee of the
A. I. B., we ought to show enough local
pride to put St. Louis on the map in
a big A. I. B. way and get that 2,000
Consuls and committees have been
appointed in each bank and wait to
serve you in signing your membership
Bank employees $3.00 per annum.
Bank officers $5.00 per annum.
Federal Reserve Bank of St. Louis

Other features of interest are af­
forded the A. I. B. member in addition
to the educational opportunities.
A program will be sent to each pros­
pect directly, and the outline ought to
be sufficient to engage your active in­
The American Institute of Banking
is the answer to the present day prob­
lem of success— opportunity through
study— and practical daily application.
Let us help you to help yourself!
Be one of the 2,000 !

Denver in 1930
With the annual A. I. B. Conven­
tion scheduled to be held next summer
in the delightful city of Denver, what
better opportunity is offered to expe­
rience the inspirational activities of
an A. I. B. Convention and at the
same time enjoy a vacation in the land
of wonders, memories of which will
never be forgotten? The size of the
Rockies, if you have never seen them,
will overawe you, and the gorgeous
works of nature will stir the imagina­
tion of the most skeptical.
Mr. Ben Aley, of the Denver Chap­
ter, came to St. Louis directly after
the close of the A. I. B. Convention at
Tulsa. While here Mr. Aley spoke in
part of what sounded like a very in­
viting entertainment program. You
may be sure that with Mr. Aley play­
ing the part of host nothing will be
too good for the entertainment of his
So decide now to attend the 1930
A. I. B. Convention, and you will have
no reason to regret it. In fact, it may
be wise to start accumulating a fund
for that Denver Trip.

As an added stimulus to intensive
study, it has been our custom to award
a prize of $5.00 to the students who
make the highest grades in the va­
rious subjects.
These prizes are earned in the face
of a high order of competition, as is
attested by the fact that a grade rang­
ing in the upper nineties is usually
necessary to win. One can not do a
great deal of catching up on sleep in
class, nor can he be sparing of the
midnight oil if he is to achieve a mark
such as that. It is not argued that a
small cash prize is adequate recogni­
tion of such work; that must come
from the added good will that is ac­
corded the winner by his fellows.
There is also a vast satisfaction in the
consciousness of work well done.
Following is a list of names of the
winners. They are deserving of our
sincere good wishes.
Accounting I : C. F. Stevens, Fed­
eral Reserve Bank; Accounting I I : E.
Sibille, Boatmen’s National Bank;
Banking Fundamentals: Helen G. Rose,
Alton National Bank; Business Fore­
casting: W. L. Gregory, Federal Re­
serve Bank; Commercial Law: Alden
W. Blank, Belleville Savings Bank;
Credits: Bert Zaehringer, First Na­
tional Bank, Belleville; Economics:
David L. Colby, Boatmen’s National
Bank; Public Speaking: W. L. Greg­
ory, Federal Reserve Bank; Income
Tax: Lawrence Iv. Arthur, Federal Re­
serve Bank; Investments: I. A. Long,
Mercantile-Commerce Bank and Trust
Co.; Negotiable Instruments: Leslie
Bloom, First National Bank; Standard
Banking: David L. Colby, Boatmen’s
National Bank; Trust Functions: Haz­
el Hurst, Northwestern Trust Co.

Awards for Highest Grades

Our Graduates

The St. Louis Chapter of the Amer­
ican Institute of Banking has always
sought to encourage a high standard
of scholarship in its courses of study.

Just a few days ago, we received
from the national office in New York,
a number of very handsome certificates
bearing the names of those of our

members who have completed the PreStandard, Standard and S p e c i a l
Courses of the American Institute of
Although the list of graduates is not
so great as might be desired, we are
happy to report that a great many of
our members, by means of work com­
pleted in the past year, have placed
themselves in such position that they
can easily earn their certificates in the
year that is now just around the cor­
Those who are to receive the PreStandard Certificate are to be congrat­
ulated for the reason that they have
acquired a considerable store of knowl­
edge that will stand them in good stead
in their daily work, but, more than
this, they have now an excellent foun­
dation on which to build for the fu­
ture. The Standard Certificate should
be their next objective, with the Spe­
cial Courses as the ultimate goal.
The graduates in the Standard
Course are now fully prepared to do
effective work in the Special Courses
such as Credits, Trust Functions, In­
vestments, Business Forecasting, State­
ment Analysis, Income Tax, Account­
ing and Public Speaking. Here is to
be had a body of specialized banking
knowledge so necessary to a lasting
success in the present time. We can
not afford to rest on our laurels, else
we shall be left behind by the con­
stantly moving procession.
Those who have earned certificates
in the past year are as follow s:
Herbert L. Lucks
Earl H. Chapin
Walter Nentwig
David L. Colby
Harvey Obenhaus
Roy H. Irwin
L. C. Phillips
Lester C. Jost
Elmer F. Schachsieck
Walter L. Kaltwasser
Elmer H. Tonsing
Nova B. Kiergan
H. H. Kranefuss
P R E -S T A N D A R D

Harry H. Holekamp
Alden W . Blank
Lester C. Moore
Robert A. Brennecke
Edward L. Sanders
Dorothy O. Brown
Raymond Schmitt
L. Gregory Dowling
Charles W . Shute
Raymond A. Ehret
Ernst R. Stein
Beatrice Geminden
Norman Vogel
Lura O. Grady
Winifred C. Whitney
Norman B. Hacker
(Trust Functions and Investments)
Edwin W . Hudspeth
John J. Lackey
Alexander B. Landgraf

Examination Papers Are
As a number of our students ex­
pressed a desire to have their exami­
nation papers returned to them, we
asked the national office to send all
Federal Reserve Bank of St. Louis


M id -C o n t in e n t B a n k e r

August, 1929


papers back after official credit had
been given.
These papers are now in the local
office and it is urged that those who
are interested call for them as soon as
possible. Because of their bulk, it was
considered inadvisable to send them
out by mail. The papers will be held
in the office until October 1, at which
time all that have not been called for
will be destroyed.
There is no doubt that the stu­
dent may profit by a carefid review
of his paper, as he is thus enabled to
determine the points in which he is
weak to remedy the fault by means of
a reading or two of the topic in ques­
Call for your examination papers at
the earliest opportunity.

Our New Editor
Many of our readers will have no­
ticed that Mr. Lawrence K. Arthur
is the new editor of Legal Tender.
He is indeed well qualified for the po­
sition, as he is an Institute graduate
and has been a member of St. Louis
Chapter for a number of years. His
wide acquaintance among Institute
members, local and national, will stand
him in good stead in the work of our
chapter publication.
Let us all give him a little help.
I f you have a news item concerning
your bank, send it in as it is only in
this way that we can be assured of
the best results possible. Address all
communications to Lawrence K. Ar­
thur, Federal Reserve Bank. We can
make Legal Tender a better and new­
sier chapter paper.

Edward G. Grubb
It is with sorrow that we record the
death of Edward G. Grubb, our in­
structor in Trust Functions. Mr.
Grubb was trust officer of the St. Louis
Union Trust Co., having been connect­
ed with that company since his grad­
uation from Washington University
Law School ten years ago. He died
of a brain abscess in a hospital at Ut­
ica, N. Y., on June 27, while en route
to consult a specialist in Washington.
Mr. Grubb had been a patient at
Barnes Hospital, St. Louis, since March
1, having to give up his class shortly
before that time, and it was our hope
that he would soon recover and re­
sume his teaching. He had a keen

D E I \

knowledge of the subject of Trust
Functions and brought a wealth of
experience that has set a high stand­
ard for the class. His personal charm
and sincerity of manner impressed all
and he was held in great esteem by his
associates. It is with deep regret that
we have to give him up.
Our sincere sympathies are extend­
ed to his wife, daughter, and mother
in their hour of bereavement.

The First Party of the Year
The first A. I. B. dance of the sea­
son is to be held on the roof of the
Boatmen’s National Bank Building on
Thursday evening, September 5, 8:30
p. m.
The roof-garden of the Boatmen’s
Building is well suited to our purpose.
A good floor for dancing and a free
sweep for the cool breezes. What
more could we ask? There will be ex­
cellent music and some punch for the
thirsty. No charge for admittance.
All members of the Chapter and all
employees of banks within the district
served by our Chapter are cordially
invited to attend.
Do not forget the date, for you may
not receive another notice. Thursday,
September 5, 8 :30 p. m. Come up and
spend a pleasant evening with your

Promotions at Mississippi Val­
ley Merchants State Trust
We are pleased to announce that
0. A. Rowland, credit manager of the
Mississippi Valley Merchants State
Trust Company, has been made a vicepresident of that institution. F. W.
Krieger and E. J. Walter have been
made assistant secretaries. These men
are Institute members of long stand­
ing and they have the good wishes of
the chapter.

What Are You Doing About
Chairman, Educational Committee
Would you like to go back to the
good old days of candle light, horse
and wagon, no telephone, uncertain
water supply and homespun? Posi­
tively no. Those days are gone for­
ever. But stop a moment. What
made all our modern conveniences pos-


M id -C o n t i n e n t B a n k e r

August, 1929

sible—brain power, knowledge acquired
by sacrifice and diligent application.
Oh, how much easier is it today to be­
come informed; to get the knowledge
necessary for success. What are you
doing about it?
The A. I. B., fostered by the Amer­
ican Bankers Association, supported by
the Clearing House Association and
other banks in the community, is of­
fering, for little or nothing, an op­
portunity to help yourself ; to obtain
sound banking fundamentals, the
knowledge of which will be of bene­
fit to you throughout your business
career. It does not seem possible that
anyone can afford to pass up a propo­
sition like this. What are you doing
about it ?
The Clearing House Association and
the other banks in the community have
a motive in contributing to the support
of this enterprise, namely the raising
the caliber of their employees. But
what are you doing about it?
The American Bankers Association
is realizing more and more the need
of some means to determine ability and
qualifications of bank men and women.
It is not a far cry to say that A. I. B.
certificates will be generally recognized
by the American Bankers Association
members and holders thereof will be
sought out, and rightly so because the
A. I. B. educational supervision and
instruction staff is on a par with any
educational institution. What are you
doing about it?
Although registration for 1929-30
classes is some weeks off, it is well
that you give thought to this most im­
portant subject. Within a day or so
you will receive a copy of our educa­
tional program. You are urged to
read it thoroughly and determine what
class or classes you will attend during
the 1929-30 term. By giving yourself
sufficient time for deliberation or con­
sulting your consul, board members or
chapter officers you avoid making a
last minute decision, which may not
prove satisfactory. Do it now.

Committee Chairmen for
Educational— Al. S. Brooks, Asst.
Cashier, Eirst National Bank.
Public Speaking and Debate—Fred W.
Schulte, Boatmen’s National Bank.
Membership—John J. Lackey, Mercan­
tile-Commerce Bank and Trust Co.
Federal Reserve Bank of St. Louis

Publicity— Laurence K. Arthur, Fed­
eral Reserve Bank.
Public Affairs—Frank Ryan, Missis­
sippi Valley Merchants State Trust
Entertainment— Oliver W. Knippenberg, Asst. Cashier, Boatmen’s Na­
tional Bank.
Finance—Herman H. Reinhard, VicePresident, Mercantile-Commerce Bank
and Trust Co.
Supervisor Public Education—Dan D.
Goode! 1, Asst. Secretary, First Na­
tional Bank, East St. Louis, 111.
Women’s— Miss Hazel Hurst, North­
western Trust Co.

Alice Davis Represents St.
Louis in European Tour
Miss Alice Davis, of the Advertising
Department, Mercantile-C o m m e r c e

ness although it specializes in the re­
quirements of women, and accepts no
men clients. The offices are comfort­
able, attractive and homelike.
The purpose of the Good Will Tour
is to encourage an international fed­
eration of business and professional
women, in order that women of all
nations may work together more ac­
tively to promote world peace. This
group, which includes 100 representa­
tive women from America, will be re­
ceived by prominent women leaders in
the large cities of Europe, and au­
diences will be arranged through the
Department of Commerce, with many
people prominent in European political

Cleveland Bank Opens Two
New Offices
The Union Trust Company of Cleve­
land has opened two new offices, mak­
ing the total number of offices of the
Union Trust Company now twentythree.
The East 185th-Landseer office, which
was opened June 22, is managed by
Harry W. Black, formerly of the
Cedar-Lee office of the Union Trust
Company. The East 116th-Corlett of­
fice, opened June 29th, is headed by
Herbert E. Zdara, formerly of the
Kinsman-140th office.
The two new banks are of colonial
design, and mark a new departure for
neighborhood banks in Cleveland. Each
bank is completely equipped with
seven tellers’ cages and a large safedeposit vault. The design of the fix­
tures and furniture is in keeping with
the spirit of the colonial architecture.




Bank and Trust Company, St. Louis,
will represent St. Louis on a Good
Will Tour to Europe, conducted by the
Federation of Business and Profes­
sional Women’s Clubs. She will al­
so attend the International Advertis­
ing Convention in Berlin in August.
The first good will tour by business
and professional women was made last
year, and as a result of their encour­
agement there has been established in
Rotterdam, Holland, a bank operated
entirely by women, for women. Miss
C. M. Meyers is at the head of this
unique institution and will be one of
the hostesses to the group this year.
The bank does a general banking busi­

Lonsdale Again Heads
C. of C. Committee
John G. Lonsdale, president of the
Mercantile-Commerce Bank and Trust
Company, has been reappointed as
chairman of the Finance Department,
United States Chamber of Commerce,
for 1929-30. He has served in the
same capacity since 1925.
Other bankers and business men who
will serve on the committee are: Vicechairman, Felix M. McWhirter, pres­
ident, Peoples State Bank, Indian­
apolis; William J. Filbert, comptroller,
United States Steel Corporation, New
York; J. H. Frost, president, Frost
National Bank, San Antonio, Texas;

M id -C o n t t n e n t B a n k e r

A u g u s t , 1929

W. F. Gephart, vice-president, First
National Bank in St. Louis, St. Louis;
George J. Gruen, Gruen Watch Man­
ufacturing Co., Cincinnati; George W.
Holmes, president, First National
Bank, Lincoln, Nebraska; Fred I. Kent,
financier, New York; Thomas W. Lamont (ex-officio), J. P. Morgan & Co.,
New York; Walter Lichtenstein, execu­
tive secretary, First National Bank,
Chicago; E. E. Lincoln, economist, In­
ternational Telephone and Telegraph
Corp., New York; W. S. McLucas,
chairman of board, Commerce Trust
Company, Kansas City; Prof. 0. M.
W. Sprague, Harvard Graduate School
of Business Administration, Cam­
bridge, Mass.; Oscar Wells, president,
First National Bank of Birmingham;
Rollin A. Wilbur, president, Investment
Bankers Association, the Herrick Com­
pany, Cleveland; Theodore Wold, vicepresident, Northwestern N a t i o n a l
Bank, Minneapolis.

rado State Bankers Association on
“ Bank Banditry and Its Contribution
to the Crime W ave.”
Mr. Gum as secretary of the Okla­
homa Bankers Association has had
many years of combatting bank ban­
dits, and has had a prominent part in
unraveling the Lamar bank robbery of
more than a year ago.

Frazier Jelke Writes on
Future o f Aviation
“ Ultimately, it seems to me, the
aviation industry has an enormous fu­
ture market, and the answer to the
question: Who will buy airplanes?
will be found among thousands of pri­
vate individuals as well as among the
regular transport companies,” says
Frazier Jelke, of Frazier Jelke & Co.,
New York investment bankers, in a re-

cent issue of The Spur. Last year the
number of persons receiving pilot li­
censes increased from 1,500 to more
than 11,000. During the year the De­
partment of Commerce listed nearly
5,000 planes as either licensed or with
license pending, and of that number
approximately 3,000 were privately
“ Undoubtedly the market is there;
it is a question of who is going to cap­
ture it. As in any new industry, there
are a large number of small and weakly financed companies in aviation ac­
counting for a limited and spattered
production. Many of these will be ab­
sorbed or will drop out of existence,
and the investor in aviation securities
should consider very carefully the
character, the backing and the pros­
pects of the company with which he is
thinking of placing his funds.”

My Bank and Me

N ew Seaside H otel Opens
at Atlantic City
Cook’s Sons Corporation have re­
cently announced the opening of their


B y J.

W .



LIKE my Bank in a general way
But most of it’s hazy to me,
There are a lot of questions I ’d like
to ask
If I could just feel that free,
But all I can see is locks and bars
Adding machines and books,
A serious bunch of busy folks
At least that’s the way it looks.


NOTICE yoiing fellows out on the
Who pause and curiously stare,
And I can tell by the way they gaze
They really don’t know if they dare
Go in and see what it’s all about
But how would they be received?
Maybe some one would order them out
Nor would my Banker believe

HEY want to make a start them­
Yet don’t know how to begin,
And that would be Tom’s job and mine
To explain how they can win,
By saving a little of every pay
Plant it and lielj^ it grow,
But never check a cent of it out
Except to invest, you know.


ND Tom would keep a reference
Concerning these calls each day
For me to read and devise a plan
To add new accounts, and say!
I ’d specialize on Savings Accounts,
I ’m looking away ahead,
’Cause youngsters are changing from
colt to horse
Not waiting ’till Daddy’s dead.


Seaside Hotel, Atlantic City

new hotel, the Seaside Hotel, at Atlan­
tic City. The first Seaside Hotel was
first biult in 1873.
A particularly home-like atmosphere
is to be found in a visit to this hotel.
The new lobby resembles a great Span­
ish lounge.
The Seaside is centrally located at
the end of Pennsylvania Avenue, be­
tween the Steel Pier and the Steeple­
chase Pier.

Eugene P . Gum Addresses
Colorado Bankers
Eugene P. Gum, secretary of the
Oklahoma Bankers Association, spoke
before the recent meeting of the Colo
Federal Reserve Bank of St. Louis

HEN Tom and I would teach them
To invest their savings too,
Just as soon as they had enough
Depending on how it grew.
W e’d sell them perhaps a good sound
Then a lock box to keep it in
And urge them to confide in us
Same as if we were kin.





F I was to tell him what I know
About folks as they really are
And how many more accounts he’d get
I f the Bank was not so far
Above the heads of the younger men,
Struggling to get their start,
And how it could be a help to them
In fighting life ’s busy marts.
OW if I owned a Bank I ’d put a
_ sign
In the window and print it plain:
“ Come in and ask for Tom P. Jones,
I t ’s a part of his job to explain
Just what this Bank can do for you
And to answer your questions frank,
You will find a hearty welcome here
’Cause i t ’s really a friendly Bank.”

’LL confess I never owned a Bank
So maybe I am all wet,
But I ’d try to build for the future
And I ’m willing to lay a bet
That in a few short years beyond
I ’d have a Bank that would pay,
And I ’d like to see some “ has been”
Try to lure those friends away.

August, 1929

M id -C o n t in e n t B a n k e r



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 any­
thing, you can make it known to the bankers in the Mid-Con­
tinent territory without cost. If you are not a subscriber, your
check for $3 will pay for a year’s subscription and entitle you to
free use of the want ad columns.
For Sale: Bank fixtures for small bank.
One Victor Manganese steel screw door
bank safe; one Victor Safe and Lock Com­
pany vault door; one Burroughs posting
machine; one Burroughs adding machine.
Address, H . K. Chenoweth, care Ayers Na­
tional Bank, Jacksonville, Illinois, 5-29.
W anted: Position as stenographer and
general secretary in bank. Am a graduate
of business college, have had four and a half
years experience as stenographer and gen­
eral secretary in bank with total resources
of half a million dollars. Making change
account of consolidation of banks. Can
give best of references, report for duty at
once, and willing to commence work for a
moderate salary. Address L. S., care MidContinent Banker, 408 Olive Street, St.
Louis, Mo., S-29.
An organization with fifteen years definite
accomplishment and with a wonderful
future program has an opening in St.
Louis and territory for a mature developed
sales executive whose past record shows
earnings in excess of $8,000 a year. The
line is protective equipment and the per­
sonal sales of the man wanted will be
largely to banks although other salesmen
under his control will sell every class of
store and business. Apply by letter only to
the Anakin Company, Chicago, Illinois.
Wanted: Position as cashier in country
bank. Over six years banking experience,
can carry enough stock to qualify as director
if necessary; have family. Can furnish
good references from institution now con­
nected with; salary open. Address E. C. S.,
care Mid-Continent Banker, 4-29.
W anted: To purchase control of good
bank carrying position, in town of at least
2,500 people, county seat or near city. W ill
also sell control in good small state bank,
carrying position. Address B. E. E., care
Mid-Continent Banker, 408 Olive Street, St.
Louis, 4-29.
Farm Manager : Position with bank that
has farms. Ten years experience buying
and selling grain and livestock. Experi­
enced with the construction and main­
tenance of farm buildings, fences and soils.
Can also assist in real estate department.
Am not a white shirt man. Plenty of
references. Prefer state of Indiana or Illi­
nois. Write F. L. Longstreth, Deedsville,
Indiana, 7-29.
W anted: Established La Salle Street,
Chicago first mortgage bond house wants
two salesmen and Salesmanager, with clien­
tele. Work in Illinois. Salary and com­
mission basis. Splendid cooperation. Reply
giving full particulars and references.
W . H. M ., care Mid-Continent Banker, \-29.
Position Wanted: By young man 29
years of age with eleven country bank re­
ceivership and collection experience. W ill
invest. Address K. V . V ., care Mid-Con­
tinent Banker, 408 Olive Street, St. Louis,
Attention Trust Officers: A young man
who understands trust work, accounting,
income tax, investments and insurance
trusts, desires to make a change. Would
need thirty days notice. Can furnish good
references. Address L. A. D., care MidContinent Banker, 4-29.
Federal Reserve Bank of St. Louis

Business Opportunity: W ill sell control
or less amount to right man in good na­
tional bank $1,000,000.00 deposits, good live
town— 8,000 population. Assets guaranteed.
Investment to carry presidency, or if less
than control is desired, to carry position as
vice-president. _ One of strongest and most
popular banks in county. Good reason for
selling. Address P. P. I., care Mid-Con­
tinent Banker, 1-29.

W anted: By
bank of_ substantial size, young man with
personality and experience to take charge
of Bond Department. Replies confidential.
Give age, experience and education. A d ­
dress S. B. Y ., care Mid-Continent Bank­
er, 2-29.
Trust Officer Seeks Change: Assistant
trust officer in moderate sized bank, good
organizer and accustomed to taking full
charge, seeks transfer to an institution
which would appreciate painstaking, meth­
odical service. Address W . H . S., care
Mid-Continent Banker, 5-29.
W anted: Cashier for bank in good
southwest Missouri town. Requires invest­
ment commensurate with salary. Write in
confidence to H. A. D. care Mid-Continent
Banker, 6-29.

W anted: A bond house long established
in Illinois and with extensive clientele can
offer the right man a position as Manager
of an established branch office in Central
Illinois. The man we want must be ex­
perienced and preferably one who has
covered the central and southren part of
Illinois. Apply by letter stating age,
qualifications, experience and former con­
nections. Address R. P. I., care Mid-Con­
tinent Banker, 2-29.
W anted: To purchase the controlling in­
terest in a small bank located in Missouri
or Iowa. Address D. W . V ., care MidContinent Banker, 1-29.
Wanted: Stock in bank in good south­
west Missouri town carrying cashiership.
Prefer town with two banks.
W ill take
up to control. Right price subject to ex­
Replies treated confidential.
Answer Box 2-W
care Mid-Continent
Banker, 6-29.
Capable Bank Executive desires to make
change. 36 years old, 17 years experience.
A-N o. 1 Credit man and accountant. A d ­
dress Box A . C. I., Mid-Continent Bank­
er, 2-29.
Chicago Bond House has exceptional op­
portunity to offer right man to open and
take charge of new branch soon to be es­
tablished in St. Louis. Also two openings
for bond salesmen to travel the Illinois
territory. Address C. K., care Mid-Con­
tinent Banker, 6-29.
For Sale: Good Mosler safe. Fire proof,
7 2 " x 4 2 " x 4 2 ", with inner burglar-proof
triple Yale time lock money chamber.
Cost $1,500, will take $550. Also, good set
oak country bank fixtures at great bargain.
Dee German, First National Bank, Porter,



Appoints N ew Officers
Seven new officers of the Bankers
Trust Company, New York, were ap­
pointed at the regular meeting of the
board of directors held recently. They
are: Julius Paul and H. C. Bock, as­
sistant vice-presidents; Miss Jean A.
Reid and Noel Henzl, assistant treas­
urers ; Charles A. Borman, assistant
auditor; Clifford G. Haviland and
Clinton A. Zollinhofer, assistant secre­

New Quarters for Brooklyn
Office, Irving Trust
The Irving Trust Company, New
York, has announced that it has leased
new quarters in the Brooklyn Chamber
of Commerce Building, at Court and
Livingston Streets, Brooklyn, for its
Brooklyn office, now at 350 Fulton
Street. Alterations to the property
have been started, and it is expected
that the new quarters will be ready
by August 1.
The space leased includes the ground
floor of the southern half of the build­
ing fronting on both Court and Liv­
ingston Streets, with basement and
part of the second floor. The total
floor space will be 6,500 square feet,
as compared to 4,500 square feet oc­
cupied by the present Brooklyn Office.
A complete modern safe deposit vault
will be installed.
The Brooklyn Office of the Irving
was originally the National City Bank
of Brooklyn, founded in 1850. It en­
tered the premises at 350 Fulton Street
in 1893, and was merged with the Irv­
ing Trust Company in 1919.

J. W . M yers Joins Devlin
& Bennett, Chicago
Devlin & Bennett, Incorporated, Chi­
cago, have announced that J. W.
Myers has been appointed to an execu­
tive position with that company. Mr.
Myers has been associated with the
Illinois Bankers Association for the
past five years and the demi-decade
previous to that worked for the Con­
tinental and Commercial Bank, Chi­
cago, to which he had come from the
First National Bank at Grand Ridge,
A. B. Creal, formerly of the Colum­
bia Phonograph Company, New York,
has also joined the field executive staff
of Devlin & Bennett, Inc.
I always make it my business to be
just a quarter of an hour ahead of the
other fellow.— Lord Nelson.

August, 1929
Aladdin Hotel, Kansas City................................. 81
Allyn & Company, A. C., Chicago...................... 41
American Banks, N ashville................................... 19
Ames, Emerich & Company, Chicago.................. 40
Anderson & Co., Lorenzo E., St. Louis............. 44
Anderson & Co., Oliver J., St. Louis............... 35
Atwater Kent Manufacturing Company, Phil­
adelphia .................................................................... 17
Bankers Trust Company, New Y ork............... 21
Bank of New South Wales, Sidney, Australia 57
Bank Vault Inspection Co., Philadelphia.... 20
Bell Telephone Securities Co., New Y ork......... 39
Berkowitz Envelope Co., Kansas City............... 57
Boatmen’s National Bank, St. Louis.................. 73
Boydo Company, LaSalle, 111............................... 81
Caldwell & Company, Nashville............................. 37
Camp, Thorne & Company, Chicago.................. 30
Canal Bank & Trust Co., New Orleans............. 64
Chapman & Co., P. W ., Chicago........................ 36
Chase National Bank, New Y ork........................ 61
Cody Trust Company, Chicago............................ 51
Commerce Trust Company, Kansas City......... 75
Commercial National Bank, Shreveport, L a. . 65
Continental Illinois Bank & Trust Co., Chicago 83
Couden Syndicate, Elliott R., St. Louis........... 48
Elms Hotel, Excelsior Springs, M o .................... 28
Eppley Hotels Co., Omaha, Nebraska............... 68
Fidelity Nat’l Bk. & Trust Co., Kansas City. . 74
Financial Advertisers Association ....................
First National Bank, Jefferson City.................... 74
First National Bank, St. Louis............................. 2
Fletcher American Company, Louisville........... 67
Foreman Banks, Chicago...................
Founders Securities Trust Co., Boston............. 46
Francis Bro. & Company, St. Louis.................... 50
General Motors Acceptance Corp., New York 35
Guaranty Trust Company, New Y ork ............... 23
Hanchett Bond Company, Chicago.................... 46
Herring-Hall-Marvin Safe Co., Hamilton, Ohio 29
Hibernia Securities Company, New Orleans.. 48
Hoagland, Allum & Company, Chicago............. 45
Hotel Chase, St. Louis............................................ 69
Hotel Gatesworth, St. Louis................................. 58
Hotel Governor Clinton, New Y ork.................... 60
Plotel Montclair, New Y o rk ................................... 61
Irving Trust Company, New Y ork ...................... 26
Knight, Dysart & Gamble, St. Louis.................. 49
Leach & Company, A. B., Chicago...................... 47
Lee Hotels, Robert E., St. Louis........................ 70
Liberty Bank & Trust Co., Louisville............... 68
Love, Bryan & Company, St. Louis.................... 45
McGraw Hill Book Company, New Y ork......... 71
Mercantile Commerce Bank & Trust Company,
St. L o u i s ................................................................. 84
Mercantile Commerce Company, St. Louis. . . .
Mid-Continent Banker .......................................... 70
Midland Bank, London, England........................ 57
Mississippi Valley Merchants State Trust Co.,
St. Louis ...............................................................
Morrison Hotel, Chicago................................
Mortgage & Securities Co., New Orleans......... 34



May-June issue of the

A m e r ic a n B a n k R e p o r te r
Convenient for Desk Use and to
carry with you
Issued Twice a Year
Printed on Bible Paper 6x3 J Inches
Red Leather Binding
Contains a complete list of Banks,
Bankers, Savings Banks, Trust Com­
panies, Investment, Acceptance and
Discount Corporations, in the United
States and Canada with names of Of­
ficers, Capital, Surplus, Undivided Prof­
its, Loans, Deposits, Principal Corre­
spondents, List of Foreign Banks, Etc.


Price $8.00 delivered
Lowest Priced Bank Directory on
the Market

Steurer Publishing Go.
149th S t., cor. Bergen A v e .
Federal Reserve Bank of St. Louis


M id -C o n t in e n t B a n k e r

N ew Y o rk City

National City Company, New Y ork ...................
National Shawmut Bank, Boston........................
New Bismarck Hotel, Chicago.............................
New Lockerbie Hotel, Indianapolis ...............
Northern Trust Company, Chicago......................



Ottman & Company, E. H., Chicago.................. 47
Philadelphia National Bank, Philadelphia.... 24
Provident State Securities Co., Chicago......... 43
Richards & Company, St. Louis.......................... 50
Rogers & Company, N. L ., Peoria...................... 46
Ruppert & Company, H. L., St. Louis............... 49
Security First National Bank, Los A n g e le s... 22
Shaw Walker Company, St. Louis...................... 71
Steinberg & Co., Mark C., St. Louis.................. 51
Strauss & Co., Robert S., Chicago...................... 38
Steurer Publishing Company, New Y ork......... 81
Thompson & Co., G. W ., Chicago...................... 47
Todd Company, Rochester, New Y ork............. 25
True Securities Company, Chicago...................... 32
Union Planters Bank & Trust Co., Memphis. . 66
Wabash Railway Company, St. Louis............... 27
Walker & Company, G. H., St. Louis................46
Want Ad P a g e ........................................................... 80
Willson & Company, James C., L o u isv ille .... 49
Young & Bros., W . H ., St. Louis........................ 52
.................................................................................................... min


Bank of Luther. The name of the new
bank is the Luther State Bank. P. M.
Vorel, who was cashier of the Luther
State Bank for the past fourteen years,
was made president of the new insti­
tution. O. M. Willeford, who was
president of the Guaranty Bank of
Fallis, is now cashier of the consoli­
dated bank.

l i t the
H e a r t

o f

a n s a s

C ity




The First National Bank of Porter
which is nearly twenty-five years old
shows deposits of $150,000. Dee Perman, cashier, is in charge of the bank.
W. S. Vernon, president, is also presi­
dent of the First National Bank of
Coweta where he is actively engaged,
and is in addition vice-president of
the First National Bank of Muskogee.
C. C. Hnlquist, vice-president, is also
vice-president of the First National
of Coweta and is connected with the
First National Bank of Muskogee.
The First National Bank of Okemah
in its last statement shows deposits of
more than $770,000. The bank has
surplus and undivided profits of $15,000 and capital stock of $50,000. The
total resources are in excess of $860,000.
The First National Bank of Billings,
which is thirty years old, has resources
of $248,717 according to a recent state­
ment. Its deposits are in excess of
$217,000. Hal Jones is president of
the bank.



12IS O










bath, <
lating ice water,
all o u tsid e ex­
posures. Home
ofKMBC. Park
ing and garage
Howard Brunt.
M an ager

South o f 1 2 tb

N ow is the time to plan your
campaign for

The oldest bank in Jefferson County
is the First National Bank of Ryan.
The bank has been in existence since
1895. It has deposits of $346,000.

Savings Accounts

The First National Bank of Yukon
shows resources of more than $400,000
in its last statement. Deposits of the
bank are in excess of $344,000. The
bank has been operating for thirty-six
years. D. B. Phillips is president of
the organization. J. W. Rliodyback is
vice-president and D. A. Phillips acts
as cashier.

The B O Y D O C O M P A N Y system is
very high grade. It is entirely differ­
ent from the ordinary premium plan,
and each of the accounts

The Guaranty Bank of Fallis is now
consolidated with the Luther State

per unit than their actual value.

For information write

The B oydo Com pany

r r 71

August, 1929

M td-C o n t i n e n t B a n k e r


rr H u t

f | 7

1 1

W O U ld

\ /

r r

Y ou

H a v e


H o tter

Dale Graham Elected a Direc­
tor o f F. A . A .

P ro v in g T h a t the P resident D o e s
N o t A lw a y s G iv e A l l the O rd e rs

NCE upon a time, a man walked
into a bank. He looked around
for a chair, selected one, and drew it
up to the check desk in the middle of
the lobby. Then he sat down and pro­
ceeded to place a pair of very large
and very dirty boots on the desk and
make himself perfectly comfortable.
He remained in this position for about
five minutes, forcing the customers to
walk around him. The first bank offi­
cial to notice him was no less a per­
sonage than the president himself.
Immediately that dignitary rang for a
lobby officer.
“ Bill,” he said, “ do you see that
fellow out there with his feet on the
check desk? Well, go and tell him to
take them off, quick! ’ ’
In two minutes the officer was back.
“ 1 told him, Mr. Jones, but he said he
wouldn’t do it.”
“ See here,” said the president,
“ you go and tell him that the presi­
dent of this bank said he should take
his feet off that check desk! ’ ’
Again the uniformed man returned.
“ W ell,” said the president, “ what did
he say?”
“ Beg your pardon, sir,” said the
guard, ‘ ‘ but he told me to tell the pres­
ident of this bank to go to hell!”
“ He did, eh?” said the president.
“ Hum-m-m-m.
Call the vice-presi­
dent. ’ ’
“ Look here,” he said when the vicepresident arrived. “ Do you see that
fellow out there with his feet on that
check desk? Well, tell him to take
them o ff!”
So the vice-president went out in
the lobby and said to the man, “ Y ou ’d
better take those muddy feet of yours
off that desk!”
“ Is that so?” said the man. “ Lis­
ten, buddy; if you don’t like the mud
on them feet, you just wipe it o ff!”
Not knowing what to do, the vicepresident went back to the president.
“ Mr. Jones, he said that if I didn’t
like the mud on his feet, I should wipe
it off.”
“ W ell,” said the president, “ I ’ll
tell you what w e’ll do, Smith. W e’ll
both go and talk to him.”
So they went up to the man, and
the president said, “ Now, my good
man, you’ll simply have to take your
feet off that check desk.”
“ I ’d like to know why,” said the

Federal Reserve Bank of St. Louis

“ Are you a depositor of this bank?”
said the president.
“ Y ou’re darn tootin’ I ’m a depos­
itor,” said the man. “ I ’m a big pa­
per mill owner from up north and this
morning I deposited one million two
hundred and eighty-five thousand dol­
lars in this here bank. What of i t ? ”
The president turned to the vicepresident. “ Look here, Smith—I ’m
going where he told me to go. You


stay liere and do what he told
to d o !’ ’-F ir s t Wisconsin Teller.

Dale Graham, assistant vice-president
of the National Park Bank of New
York, has been appointed a director of
the Financial Advertisers Association.
Mr. Graham has been active in financial
advertising circles for a good many
years, having been advertising manager
of the Mississippi Valley Trust Com­
pany of St. Louis before going to New
York. He has also been interested in
the work of the Association, which is
composed o f the Advertising Managers
of the principal banks, trust and in­
vestment organizations of the country.

National, Louisville Puts in BanditP roof Equipment at Branches


N the two years that the First Na­
tional Bank of Louisville has been
operating branches throughout the
city it has had three hold-ups. Two of
these were in one branch, newly or­
ganized, and one was in another, the
latter being an old bank which had
been in operation some years before its
purchase by the First National. The
latter bank had also suffered another
hold-up before.
The hold-ups of the first branch took
place barely six months apart. The
experience put a severe strain on the
morale not only of the manager and his
assistant but of the staffs of the five
other branches. It was decided, there­
fore, to make all the branches as ban­
dit-proof as the South Louisville
Branch, at Fourth and Central, which
has enjoyed this protection since 1921.
Under the management of its presi­
dent, Pope McAdams, safety features
were installed which made it a pioneer
among the banks of the United States
in this work.
When the South Louisville bank be­
came a member of the First National
family Mr. McAdams joined the First
National staff as vice-president and it
was under his direction that the work
was done in the five other branches.
The new branch which was held up
twice is located at Preston and Oak
Streets and is under the management
of George Tepe. The branch which
was held up once before it was pur­
chased by the First National and once
since, is located in the Portland sec­
tion of Louisville, at 26th and Bank
Streets. The manager is Howard C.

The installation of these protective
features, costing some $15,000, has just
been completed. All metal grill work
has been replaced by bullet-proof glass
1 Ys inches thick, all the woodpaneling
of the counters has been reinforced
with a backing of sheet steel and the
space between the top of the fixtures
and the ceiling has been covered with
a heavy wire netting of close mesh
which is almost as impenetrable to bul­
lets as the glass itself. Tellers’ win­
dows are covered with the bullet-proof
glass down to the level of the coun­
ter, under the bottom edge being a sunk­
en tray of metal through which all
transactions between teller and custom­
ers take place. The arrangement
makes it impossible to threaten the
teller with a pistol. All inside doors,
moreover, are lined with steel and
equipped not only with self-locking
devices but electric alarm connections
as well.
For offensive purposes an automat­
ically-locking porthole is p r o v i d e d
through which members of the staff
may push the barrel of their weapons
and open fire upon their attackers.
The equipment throughout is as ban­
dit-proof as it is practical to make it,
and at the same time the use of the
handsomely bronzed netting and the
clear glass have added very much to
the attractiveness of all the branch
Besides the three branches mention­
ed this safety equipment has been in­
stalled also in the branches at Shelby
and Broadway, Bardstown Road near
Douglass Boulevard and the Shawnee
Branch at 34th Street and West Broad­

A u g u st, 1929
Federal Reserve Bank of St. Louis

M id-Continent B anker

Credit Information
The officers of this institu­
tion have at their command
205,000 up-to-date credit files,
coveringseveraitimes that many
names in all lines of business
in all sections of the country

C o n t in e n t a l I l l in o is

Federal Reserve Bank of St. Louis