Full text of Mid-Continent Banker : The Financial Magazine of the Mississippi Valley and Southwest : January 1927, Volume 23, No. 1

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Federal Reserve Bank of St. Louis

ST. LOUIS
January, 1927
The Financial Outlook for 1927
PAGE 7

Fifteen B oys Attract Custom ers to This Bank
PAGE 9

Little Elbert Takes a D ay Off to
Learn the Banking Business
PAGE 11

A Recent Collection L aw Decision
PAGE 12

Present Tendencies in the Bond Market
PAGE 19

OKLA

ARK

Mid-Continent Banker

2

St. Louis*
Largest Bank
But That’s N o t A ll

NATIONAL

BANK


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Federal Reserve Bank of St. Louis

In addition to largest
r e so u r c e s, th e F irst
N a tio n a l Bank in St.
Louis renders a service
to out-of-town banks un­
excelled anywhere in the
United States— through
the combination of its
efficient organization
and c o m p le t e and
m odern facilities.
Consider “ the First inSt. Louis
in your 1927 plans.

B ro a d w a y — L o cu st— O liv e

»

3

St. Louis, January, 1927

The

B o a tm e n ’s N ation al
B an k
o f St. L ouis
OLDEST

BANK

IN

M ISSO U R I

F o u n d e d in 1 8 4 -7

Y ou r Interests and Ours
There is a personal touch in the
handling of transactions through
this bank that indicates a thorough
understanding of what is required
and a keen interest in promoting
the welfare of our clients.

H IG H

GRADE

IN V E S T M E N T S

Seventy-nine years of experience
has fitted Missouri’s oldest bank
to serve you well.

KderalGammerceTrustfomnanv
Wk

affiliated

w ith

National B a n k °/ Commerce

^

in StLouis

O F F IC E R S :

JULIUS W. REINHOLDT, President
LEWY C. BRYAN. Vice-President and Cashier
A. W ALDHEIM.
Vice-President
A. WAGENFUEHR,
Vice-President
C. C. H AM M ERST El N,
Assistant Cashier
H. ALFRED BRIDGES.
Assistant Cashier

B. F. BUSH.
Vice-President
F. LEE MAJOR,
Vice-President
RUDOLPH FELSCH,
Assistant Cashier
O. W. KNIPPENBERG.
Assistant Cashier

OWNED BY

STOCKHOLDERS

EDGAR L. TAYLOR, Vice-President and Trust Officer
J. HUGO GRIM M . Vice-President and Counsel

OF

The National Bank of Commerce
in St. Louis
with which is affiliated the

FEDERAL COMMERCE TRUST COMPANY

2nd Floor, Broadway and Pine
RESOU RC ES:

O ver $ 2 5 ,0 0 0 ,0 0 0 .0 0

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Federal Reserve Bank of St. Louis

Telephone GA röeld 6300


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Federal Reserve Bank of St. Louis

$6,000,000 Memorial Plaza to be Built in St. Louis
Authorized, in $87,372,500 Bond Issue

The St* Louis of Today
St. Louis o f today presents a picture of
progress—an old city with new ideals. The city
is building for the future. Its progress—never spec­
tacular— has been steady and sound. Its growth is
certain and permanent. The business, financial and
commercial world has awakened to the resources
and facilities of St. Louis.

T

HE

Its central location, nearness to raw materials, and
unexcelled transportation facilities are essential
factors that make it a great industrial center.
For 27 years the M ercantile Trust Company has
been a leading element in the development of Greater
St. Louis. W e invite banks and bankers, corpo­
rations and business m en to utilize the valuable
knowledge of St. Louis affairs with which this expe­
rience has provided us.

mpany
Capila! J J i n p l u s
Ten Million Dollars

TO ST. CHARLES

S A IN T L O U IS

5

St. Louis, January, 1927
New Field Representative
for Union Trust
I11 order more effectively to serve
banks and business houses throughout
Illinois, Mr. A. C. Koch, vice-president
in charge of the Investment Depart­
ment of the Union Trust Company, one
of Chicago’s large downtown banks, an­
nounced today that beginning Decem­
ber 1, Mr. Robert H. Watson will repre­
sent the Investment Department of the
bank in this territory, with headquar­
ters in Chicago.
Mr. Watson is a native of Indiana and
a graduate of Purdue University. He
was affiliated for two years with the
financial sales department of the Gen­
eral Motors Acceptance Corporation,
representing that company in Illinois

The Financial Magazine of the Mississippi Valley

DO N ALD H. CL AR K
Editor and Manager
JAMES J. W E N G E R T
Associate Editor

ST. L O U I S
J A N . , 1927
VOL. 23

NO. 1

W IL L IA M H. M AAS
Vice-President
Manager Chicago Office
1221 First N at’l Bank Bldg.
Telephone, Central 3591

C O N T E N T S FOR JA N U A R Y
Page
The Financial Outlook for 1927— By George Woodruff...... ,.............. 7
Fifteen Boys Promote Good-will— By J. J. Wengert.............. ............. 9
A Prescription to Help Bankers Get More Hours of Restful Sleep
— By Geo. T. McCandless........................................................................ 10
Little Elbert Takes a Day Off to Learn the Banking Business—
By R. M ........................................... ................................ ............................ . 11
A Recent Collection Law Decision— By the Legal Editor................. 12
Foreman Banks Make Plans for Big Capital Boost............................ 16
Oldest Bank on Broadway Moves Back Downtown...... ..................... 16
Macon Banker Says 1927 Outlook Is Good.............................................. 17
Interest— Your Principal Expense— By R. S. Hawes......... ..............—- 29
News and Views of the Banking World— By Clifford DePuy........... 37
Cody Trust Opens Offices in Borland Building............. ..................... . 40
Along LaSalle Street....... .................................... ........................ ................—- 44
An Ode to a Bank.............. .............................. ............................................... 45
Merger Creates World’s Largest Trust Company.................................. 58
BOND AND

IN V E S T M E N T

SE C T IO N

The Tendencies in the Bond Market— By C. W . Sills............................
Losses on Commercial Paper Compared with Losses on Loans and
Bonds— By Roy A. Foulke.......................................................................
A Partial List of Current Offerings....... .....................................................
Think Cautiously and Act Decisively— By Milton O. Johnson..........
STATE

Robert H . Watson

and Indiana. Before joining the Union
Trust Company, Mr. Watson was asso­
ciated with Hathaway & Company, Chi­
cago, whom he represented in Illinois.
The Union Trust Company is one of
Chicago’s oldest banking institutions.
It has a capital and surplus of $6,000,000 and resources of more than
$82,000,000.
The Investment Depart­
ment has offices in Milwaukee, Minne­
apolis, and St. Louis.
C. A. Phillips
No w President.

C. A. Phillips was elected president
of the Henry National Bank, Henry,
111., at the last monthly meeting of the
board of directors. The position was
made vacant by the death of his father,
L. R. Phillips. Mr. Phillips has held a
position with the Henry National Bank
for 14 years and along with his father
has helped in making it one of the
large banking institutions of Marshall
County.


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Federal Reserve Bank of St. Louis

Illinois ........................................
Indiana __
Kentucky ....... ............... .'............
Arkansas ....
Tennessee .......................

NEWS

S E C T IO N S

42
46
48
50
51

Louisiana .
Mississippi
Oklahoma
Kansas .....
Missouri ...

19
25
34
36

52
53
54
55
56

Published by the Commerce Publishing Company, 408 Olive Street, St. Louis, Mo.
Clifford DePuy, President; James J. Wengert, Vice-President; W m . H. Maas, VicePresident; Donald H. Clark, Secretary-Treasurer.
Telephone Main 1342.
M E M B E R A U D IT B U R E A U OF C IR C U L A T IO N S ,
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Southwestern Bankers Journal
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St. Louis
Underwriters Review
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Insurance Magazine
Kansas City
New York office: Philip J. Syms, 150 Nassau St., phone Beekman 4836
Chicago office: W m . H. Maas, 1221 First National Bank Bldg., phone Central 3591
Kansas City office: G. D. Mathews, 405 Ridge Bldg., phone Harrison 5857
Fort Worth Office: Lawson Hetherwick, 409 F. 8s M . Bldg.
Des Moines Office: Clifford DePuy, 555 Seventh St., phone Walnut 2201
San Francisco Office: George Wight, 600 Baldwin Bldg; 25 Kearny St.
Entered as second-class matter at the St. Louis post office.
Subscription rates $3.00 a year; 35 cents a copy

6

Mid-Continent Banker

A t Your Service
in Saint Louis

The service that correspondent
banks require is facilitated by
the

— you will find that
your instructions re­
ceive prompt and in­
telligent handling at
the Broadway Trust.

personal interest of our

officers.

E. C. Adams, President
Geo. E. Raithel,
Vice-President

Leo G. Desobry,
Vice-President

THE NORTHERN
TRUST COMPANY

H. F. Hoener,
Secretary-Treasurer

F. Hoffman,
Ass istant-Secretary

Northwest Corner LaSalle and Monroe Sts.

BROADWAY TRUST
COMPANY

CH IC AG O

of ST. LOUIS

Capital, Surplus and Undivided
Profits Over $7,500,000


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Federal Reserve Bank of St. Louis

Œfje Cíjaáe jSational Panfe
of the City of New York
57 B R O A D W A Y

C a p i t a l ..................................... $ 4 0 ,0 0 0 ,0 0 0 .0 0
S u rp lu s a n d Profits
. . .
36 ,7 6 4 ,1 2 2 .2 3
D e p o sits (June 30 , 1926)
.
813,42 5 ,8 6 9 .6 5
O F F IC E R S

Albert H. W iggin
Chairman of the Board
John McHugh
Gates W . McGarrah
President
Chairman of the
Executive Committee
Robert L. Clarkson
Vice-Chairman of the Board
Vice-Presidents
George E. Warren
Samuel H. Miller
Carl J. Schmidlapp
George D. Graves
Prank O. Roe
Reeve Schley
Harry H. Pond
Sherrill Smith
Henry Ollesheimer
Samuel S. Campbell
William E. Lake
Alfred C. Andrews
Robert I. Barr
M. G. B. Whelpley
William P. Holly
Vice-President and Cashier
Second Vice-Presidents
Alfred W . Hudson
Alexander S. W ebb
James L. Miller
Frederick W . Gehle
Joseph C. Rovensky
George W . Simmons
Benjamin E. Smythe
Edwin A. Lee
Joseph Pulvermacher
William E. Purdy
Leon H. Johnston
George H. Saylor
Franklin H. Gates
M. Hadden Howell
Aiken
Arthur
Thomas Ritchie
Comptroller

Foreign and Trust Department Facilities

Saint Louis

Twenty-third Year

January, 1927

Number One
The Financial Magazine of the Mississippi Valley

The Financial Outlook for 1927
There M ay Be Some W a v e s A head in the Business
Sea, but the Tide Still Rolls in the Correct Direction
N 1920 we suffered a great decline
in the value of all sorts of com­
mercial and industrial stocks of
goods, but this liquidation did not ex­
tend to basic costs which had been
greatly increased during the years of
the war. In 1922 it looked as though
we were going to reduce our basic
costs and that in this reduction pro­
gram transportation and fuel would
lead the way. However, the settle­
ment of the coal and railroad strikes
on a basis of the then existing scales
was forced by the grant of increased
pay to common labor that had become
scarce because of the effect of the
then new immigration law.
In view of what has happened since
1922, it was perhaps just as well that
the readjustment of basic costs did
not then take place, for since that time
the nations of Europe have shown a
somewhat surprising slowness in get­
ting back to a producing basis that
would make possible any serious com­
petition with us. We have conse­
quently been able to develop a period
of great prosperity, even though our
activities have been carried on under
wartime costs.

I

B y George Woodruff
Vice-Chairman, The National Bank of
the Republic, Chicago

ways our present prosperity might be
brought to an end. First of all, we
might experience a great period of in­
flation, followed by the collapse that
always comes along behind. Second,
we might be called upon to meet quite
ruinous competition from Central Eu­
rope. This wTould cut our export of

Causes of Our Prosperity.

This period of great prosperity has
been based primarily upon our stock of
gold that has made possible a huge
supply of credit at extremely moder­
ate rates. It has also been supported
by good government, an unprecedented
building boom, good crops that have
sold at fair prices, a large export trade
and industrial peace. It has been
helped along by increased purchasing
power that has resulted from install­
ment buying, and the placing of orders
for “visible requirements” only and
good railroad service, both of which
have assisted in maintaining a steady
flow of goods. It has furthermore
been stimulated by comparative free­
dom from European competition and
by the fact that each favorable devel­
opment in connection with our eco­
nomic activities has helped to produce
favorable developments in other lines.
Many people have recently talked of
a possible business reverse and in this
connection let us consider in what

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Federal Reserve Bank of St. Louis

George Woodruff

goods to foreign shores, and in spite
of our tariff wall would gradually
bring down selling prices in America
to a point where industrial readjust­
ment would be forced. Third, we
might suffer from such domestic dis­
turbances as crop failures or a long
and widespread strike. This would
upset our present evenly balanced pro­
duction program, resulting in business
confusion that would spread to many
lines and that would bring an im­
portant change in our present mode
of business life.
Inflation.

In connection with the danger of in­
flation we must recognize the fact that
such a condition has been threatened
both in 1925 and in 1926. Neverthe­
less, we have been fortunate in having
a vast number of sound, conservative
business leaders who have withstood

the temptation to embark upon an in­
flationary course. It is true that cer­
tain lines have wandered from the
path of prudence, and we have seer,
examples of local inflation, as the
Florida land boom and the high prices
of stocks. However, these local infla­
tionary boomlets have flattened out
from time to time without seriously
disturbing the general trend and the
general commodity price index has re­
mained extremely steady. Even though
bank clearings and car loadings have
proved that business volume has made
steady gains, still the commodity price
index has shown that business men
have not enthused so greatly as to
bid up the price of everything to a
point where values would have become
inflated and the inevitable day of
reckoning would have ensued.
However, even though conservative
action in the past carries with it some
guarantee of conservative action in the
future, we must not forget that every
period of great prosperity has always
culminated in inflation and a business
reverse. A threat of shortage of freight
cars or the fear of shortage of coal
might quickly bring business men to
abandon buying from “hand to mouth”
and to substitute the old method of
“ stocking
up.”
Commodity
prices
would then be sure to rise and unless
our present economically sound mind­
ed government heads and the officers
of the Federal Reserve could put on
the brakes, we might find ourselves
headed towards one of the most spec­
tacular business joy rides in history
with the inevitable corollary of a busi­
ness crash.
European

Competition.

We should not fail to realize that
European competition is slowly gaining
and that while it can hardly hit us hard
in 1927, it will doubtless be the factor
that will ultimately bring about our
next great period of business readjust­
ment. If America were still a debtor
country we might be able to maintain
our prosperity on a basis of very high
production costs for a long time to
come, but the fact that we are now the
greatest creditor nation in the world
makes the cost of production in our

Mid-Continent Banker

8
country a decidedly serious matter.
The world must henceforth pay large
sums of money to America every year
and this can be done in but three
ways—by sending gold, by sending
goods or by sending stocks and bonds.
We do not want more gold and for­
eign countries do not possess suf­
ficient gold to send. Stocks and bonds
will doubtless come in large amounts,
but this cannot go on forever. Goods
then must come our way and the force
of competition will be felt by us in
foreign trade and here at home. Only
through the tariff can we guide from
our ports the goods that will do the
greatest harm and let in the things
that will hit domestic output least.
Domestic

Disturbances.

We must realize that present favor­
able conditions have been greatly
helped by the steady and regular man­
ufacture and sale of goods or what is
known as an even balance in indus­
try. A big strike or crop failure or
some such outstanding adverse factor
would, of course, upset the present

equilibrium of trade, and the weak
personal credit condition of the mass­
es of the people who have allowed
themselves to get into debt to a great­
er extent than ever before would re­
sult in a fairly serious setback. We
should recognize the fact that while
installment buying has helped to
bring prosperity about, and that while
its sudden curtailment would have a
bad effect, it has greatly weakened
the personal financial strength of
great masses of people and will ac­
centuate the problems of the next
period of trial.
Outlook for 1927.

Realizing that inflation does not at
least now appear to be a probable de­
velopment of the ensuing year, recog­
nizing the fact that while European
competition is growing, it will, how­
ever, fail to hit the bull’s eye for some
little time to come, and trusting to
Providence that we will not experi­
ence a major domestic disturbance,
we may say with a considerable degree
of safety that 1927 should be a pros­

perous year. Of course, it may not be
quite so good as 1925 or 1926, but we
can do much less than we have done in
1925 and 1926 and still be looked upon
as the most prosperous and happiest
nation in the world.
We are going to continue to have
easy money. We have every reason
to expect a continuance of good gov­
ernment. Our building boom is on
the wane, but, on the other hand, the
change will doubtless be at a slower
rate than some people seem to think.
The outlook for agriculture is fairly
good, although we have developed
some poor conditions in the South.
Our export trade may suffer some, but
the totals will still be very large. In­
dustrial peace bids fair to tarry with
us for quite some time to come. In­
stallment buying will doubtless still
maintain its active part in selling
goods. Production still is on an even
balance, although not quite so good
as some months back. Sound and
prosperous conditions in one line will
continue to develop sound and pros(Continued on Page 14)

W h a t Illinois Bankers Think About 1927
F re de rick H. Rawson, chairman of
the board, Union Trust Company, Chi­
cago, says: “Although I should not
be inclined to make definite predic­
tions for more than six months ahead
in any year, I believe we may expect a
continuance in 1927 of about the same
business activity that we have experi­
enced in 1926. Commerce in 1926 ex­
ceeded expectations and in general
more than sustained the progress it
enjoyed in 1925.
“ Car loadings up to the middle of
December, 1926, were greater than
they were for the same period in 1925.
Labor is maintaining its efficiency and
is well employed at top-notch wages,
which means a continuance of the pur­
chasing power of the nation. . . . Agri­
cultural conditions, while not wholly
satisfactory, are steadily improving and
are probably not so bad as the hurried
reading of the newspapers would lead
one to believe. . . . The national gov­
ernment has continued its confidenceinspiring policy of economy, close bud­
geting, non-interference with legitimate
business and stimulation of trade
through tax reduction. . . . Summing
up the situation, 1926 can be recorded
in no other light than as one of great
achievement. The fundamentals for
1927 are practically all favorable, with
commerce and industry on a plane of
encouraging prosperity.”
W a l t e r B. C raw ford, president of the


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Federal Reserve Bank of St. Louis

Illinois Bankers Association, says:
“The outlook for 1927 is very encourag­
ing. Business conditions are sound;
car loadings are apparently satisfac­
tory, and indications are that labor
will be employed at good wages. In
all probability there will continue to
be an adequate supply of money at low
rates for all who are entitled to credit.
I am optimistic when thinking of the
coming year.”
Addison Corneau, vice-president of
the Springfield Marine Bank, Springfield, 111., says: “At the moment there
is every reason to believe that busi­
ness will continue at present levels for
the time being and that the year Nine­
teen Twenty-seven can be approached
with confidence in continued activity.
Basic conditions are sound and trade
reports from the various centers are
apparently encouraging.”
W illia m Hazzard , vice-president of
the Commercial National Bank, Peoria,
says: “ Business activity shows some
recession though factory and mine em­
ployment remains good. Holiday trade
exceeded anticipations, and the out­
look is for good business during the
first six months of 1927. The only
seriously unfavorable factor is the ag­
ricultural situation, the effect of which
is becoming more marked with mer­
chants buying in smaller quantities and
promoting quicker turnovers.”

George C. Forrey, Jr., president of
the Fletcher American Company, In­
dianapolis, says: “I believe business
will be at a lower level during the first
half of 1927. Fundamental business
conditions are quite mixed with auto­
mobile production, building and agri­
cultural buying power bearish. The
bond market should continue high and
good, for easy money seems a certain­
ty during the next few months.”
H. R. Aisthorpe, cashier and secre­
tary of the First Bank and Trust Com­
pany, Cairo, Illinois, says: “ Contin­
ued prosperity of industry can not last
with unsatisfactory conditions of farm­
ers. Returns from cotton, corn and
other staples are seriously low and
general reduction of buying power
should make itself felt within the next
few months. The South and other sec­
tions of the country where over-pro­
duction has resulted are hard hit.”
A. M. Kenney, president of the Citi­
zens’ National Bank, Decatur, Illinois,
says: “Manufacturers in this section
had a good year. I see no reason for
any radical change. Retail trade is not
quite up to normal, partially because of
unseasonable conditions, but Christmas
trade was satisfactory. Farming condi­
tions are not good, but better grain
prices are in sight—livestock more re­
munerative—building conditions still
have reasonable favorable outlook-—la­
bor conditions good. General conditions
should average about normal for 1927.”

St. Louis, January, i ç 2 j

9

Fifteen Boys Promote Good Will and
Secure Customers for This Bank
F

AH-MINDED bankers are constant­
ly devising new plans to improve
the contact of their banks with
the public and build for the future.
They are alert to every opportunity to
keep their bank at the top of the list
in community esteem and service.
Christmas savings clubs, school sav­
ings clubs, window displays, exhibits,
farm clubs, boys’ and girls’ clubs, ad­
vertising campaigns and hundreds of
other ideas have been used to this end,
but it has remained for Hamp Williams,
president of the Community Bank &
Trust Company of Hot Springs, Arkan­
sas, to organize a Junior Council for his
bank.
This Junior Council is made up ol
fifteen bright young boy students in the
Hot Springs High School. Each of these
boys has purchased for cash or on the
installment plan a hundred dollars’
worth of stock in the institution, and
the Council holds regular monthly
meetings in the board room of the
bank, and has its own officers selected
from the boy members.
It is a unique organization. The
bank is promoting thrift and economy
and a general knowledge of banking
among the young people of the com­
munity and the boys are boosting for
the bank—they are not only boosting
—they are actually soliciting accounts
and getting them.
The boys are the sons of good fam­
ilies, but none of them are rich, ac­
cording to Mr. Williams. They were
selected because of their good charac­
ters and interest in banking and are
not required to announce their inten­
tions of entering the banking profes-

B y J. J. Wengert

Associate Editor, Mid-Continent Banker

sion when they finish school, because
Mr. Williams believes that a knowl­
edge of banking is beneficial in any
business.
Members of the Junior Council are:
Clyde Nance, president; Paul Humph­
reys, Fred Williamson, vice-presidents;

Hamp Williams

Wilton O’Neil, cashier; Douglas Wil­
son, Ernest Cole, James Johnson, as­
sistant cashiers ; Cecil Broughton, tel­
ler; Turi Muse, Theodore Johnson,
James Johnson, Discount Board; Rob­
ert Scudder, Earl Fulton, Howard Mid­
dleton, Ernest Dodd and Carleton Con­
rad, Advisory Board.

Concerning the organization of the
Junior Council and its purposes, Mr.
Williams says:
‘When we had made up our capital
stock for the Community Bank &
Trust Co., we had 144 stockholders.
Among these were fifteen high school
boys selected by myself and solicited
to take one hundred dollars stock each,
some having to pay their stock out by
installments which I allowed them to
do. I explained to them in the begin­
ning that a Junior Council would be
formed and I desired to have them as
members. The council was organized
and adopted suitable constitution and
by-laws, electing their own officers, as
soon as the bank opened for business.
“They have regular monthly meet­
ings in the Director’s Room of the
bank. The purpose of the organiza­
tion is for these boys to learn banking
and get contact with bankers and
business men of this and other cities
of Arkansas. We propound questions
on banking at each meeting to be an­
swered at the following meeting, and
they intend to invite bankers and busi­
ness men from time to time to ad­
dress them at their monthly meetings.
“ To be a member of this council the
boy must be in high school at the time
he joins, and must have one share of
stock in our bank, be of good moral
character and such a boy as our bank
would be willing to recommend for any
position of trust that he is capable of
holding. If every bank in Arkansas
would form similar councils there
would be thousands of boys brought to
the front and come in touch with busi(Continued on Page 32)

Hamp Williams takes the members of his boys’ club to New Orleans where they meet a number of prominent busi­
ness men, including the editor of the “Times-Picayune,” and have their picture taken for the paper.


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Federal Reserve Bank of St. Louis

10

Mid-Continent Banker

A Prescription to Help Bankers Get
More Hours of Restful Sleep
T

ier because of his power to hire or
HE year 1926 will go down in his­
B y Geo. T . McCandless
fire that officer. A certain bank direc­
tory as an eventful one. We en­
“ The Man Behind the Counter”
tor agreed to purchase a lot from a
tered it with some misgivings
but will say if the bank has no outlet man in a distant state. The deed and
and many hopes. The city bankers
report a profitable year as a general for such paper it had better refer pro­ abstract were forwarded for inspection
rule and say the year will average up spective borrowers with real estate se­ and approval to the bank of which this
well with a few high spots not so good. curity to some company which special­ man was a director, with instructions
The country bankers are not saying izes in that class of loans—it has no to collect and remit by a specified day.
much, but are sawing wood. I refer place in a purely commercial banking On that day the collecting bank re­
ceived a wire from the sending bank
especially to what may be called the institution.
I sincerely believe that if every to return the papers. The cashier
agricultural banks, those whose deal­
ings are principally with farmers. In­ banker reading this article would go called up the director to come in. On
dustrially 1926 was a good year; labor to his note pouch and take out every his arrival he said, “ Don’t send it back;
well-employed, a scale of high enough note tainted with excess, due from offi­ I’ll take it up this afternoon and will
prices to justify the payment of good cers, or of a capital nature, he would hold you harmless if they kick.” The
be cleaning house properly and would papers were delivered to him by the
wages; on the whole a satisfactory
state of affairs for those banks situated be eliminating 99 per cent of the causes cashier, a draft sent in payment and
in the manufacturing belt. One manu­ of possible disaster. The worst thing the business presumably settled, but
what happened? The draft was 're­
facturer in a western town shipped sev­
turned, a demand was made for the
eral trainloads of washing machines,
abstract and papers which had been
electrically equipped. Automobiles and
delivered to the prospective purchaser
automobile paper broke all records for
“ Too many banks have been
and a choice little lawsuit was incu­
distribution and bankers report the inpaying too much interest on de­
i
bated then and there because a bank
stallment paper as being the most li­
posits in order to swell totals;
cashier felt impelled to accommodate
quid they carry. I do not propose to
and asset is not an asset unless
one of his directors contrary to in­
launch a bromidic discussion on in­
it is paying its w ay. T h e co-op­
structions from an outsider. The di­
stallment buying; we will always have
eration of directors w ith officers
rector had no right to make the re­
optimists and pessimists. The best
during 1927, a discount board t h a t
quest he did without securing the cash­
piece of advice I have read was from
re ally functions, removal of ex­
ier in some tangible way; the cashier
the facile typewriter of a well-known
cess loans, overdrafts, loans to
exceeded his authority by failure to
statistician who said, in part, “keep up
officers
and
directors
(unse­
obey instructions of the collecting bank
your stocks to care for normal demand,
cur ed), capital loans and objec­
and the bank got more than its share of
but pay your debts this year for a
tionable real estate loans should
disagreeable notoriety.
change.”
make this year the best ever,
The co-operation of directors with of­
fro m a banking standpoint.”
In the larger cities business paper
ficers during 1927, a discount board that
is usually retired twice a year and it
really functions, removal of excess
isn’t a bad plan for every banker to
loans to officers and directors (unse­
write up the liability ledger which, will
show at a glance the total indebted­ any banker can do, besides fooling his cured), capital loans and objectionable
ness of every borrowing customer and board of directors, is to deceive himself real estate loans should make this year
as to the worth of his bills receivable. the best ever from a banking stand­
how they care for their obligations.
In the one-crop districts it is prob­ The most successful bank I know has point.
Too many banks have been paying
able that many customers have been in -.as its president a man who came from
debt continuously for years.
Their a small bank to the city many years too much interest on deposits in order
only hope for paying off the bank is to ago. On the first day he met with the to swell totals; an asset is not an as­
sell the farm—at least they would like­ board of directors he stated to them set unless it is paying its way. Co­
ly be obliged to do this if the bank that he proposed to rely on them and operation among competing bankers,
should force payment. The banker in their judgment; that they were not to co-operation of directors with officers,
the farm belt has his problems. On consider themselves mere ornaments, will prove a real blessing to the bank­
one ¡hand he wants to accommodate his but active workers. They met daily ing fraternity at large. We don’t want
customers. On the other hand he wants and to this day they meet at lunch and MORE banks, but we do find a place
in our hearts for BETTER banks, and
to keep his paper up-to-date, well-se­ discuss applications and policies.
I realize that country banks might it is the bankers’ problem to bring this
cured and well-distributed and subject
to as little criticism as possible by the not find this practical, but every loan about. The banking department wants
examiner. He is thus literally between should be rated or passed on by more to help you, but you must do your
two fires. In practically every case than one officer and should there be share. My remedy is not a cure-all,
failed banks disclose paper which any loans to officers or directors, such but I believe the prescription offered
caused their trouble and paper every loans should be the best in the bank. will help you and your bank and leave
The mere fact that a man is an officer you more hours for restful sleep than
good bank should therefore avoid, viz.:
excess loans, overdrafts, loans to offi­ or a director should not make him a you may have had for some time. Try
cers and -directors and capital loans. preferred risk in the liability ledger. it. I’ll guarantee it won’t hurt you a
I do not mention loans on real estate, No director should impose on the cash­ bit.


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11

St. Louis, January, 192/

Little Elbert Takes a Day Off to
Learn the Banking- Business
OP just looked at me kinda funny
when I ast him was he a big man.
Then he ast me why I ast him
that. So I told him I just wondered,
and then pretty soon I told him how
Benny Kline said his dad was the big­
gest man in town, and I just wanted to
know if my pop was a big man, too.
Then pop said, “Well, if I ain’t a big­
ger man than ole Ad Kline I’ll eat
my hat.”
Finally, after he read his paper a
while, pop ast me what I wanted to
be when I growed up. So I told him I
didn’t know. The pop said, “Do you
wrant to be a banker, Elbert?” so I told
him, “Yes, or else a lumber-yard man
like Benny Kline’s dad.”
So after a while I told pop how
Benny Kline’s dad lets him go down
to the lumber yard Satterdays and
sometimes after school. Pop just kinda
grunted, but after while when I ast him
could I go down to the bank with him
Satterday he said maybe I could, so
on Satterday I went down to the bank
with pop.

P

B y R. M .

“Not so good, George. We’ve got to
do something pretty soon to build up
our deposits. Running down every
day.” So I saw how they were talk­
ing about something else and I didn’t
listen any more.
Then I went over to where a woman
was running a funny kind of a ma­
chine, and putting sheets of paper in
it, and then changing her mind and
taking them out again, so I ast her
what she was doing and a few other
questions. But pretty soon she sucked
in a long breath and said I’d better get
away from there because something
was going to drop if I didn’t. So I ast
her what was going to drop, but she

didn’t say anything, so I thought may­
be I better get away before it dropped
because she didn’t seem to know where
it was going to drop and it might
even drop on me.
E lb e rt W a n ts to Help.

So then I picked my nose a while,
till I saw where a man was wrapping
up all kinds of money in little piece's
of paper, so I went over them Finally
I ast him what he was doing, so he
showed me how he could wrap up the
money in these pieces of paper, and it
would show on the outside how much
money there was in the paper. So I
ast him if I could do it, too, but he
wouldn’t let me, and he wouldn’t give
(Continued on Page 15)

W h y “ Pop” Laughed.

Finally after we got there pop told
me to set down and not get in any­
body’s way, and if I would watch him
I would soon learn how to be a banker.
So he kinda laughed. Then pretty
soon a woman come in and sat down
and pop said, “ Take a letter to A. R.
Groom,” but she didn’t act like she
was going to do it. So pop went on
talking to her, but she didn’t pay a
bit of attention to him, but just went
on making funny pictures in a little'
book. So pretty soon I went over
there to see what she was making, but
she couldn’t draw worth a cent, but
just made a lot of funny marks on the
paper. So finally I said, “Ain’t you
going to mind my pop?”
So then she said, “Huh?” and just
looked at me kinda dumb, so I just
looked at her mad as everything. So
finally I said to pop, “I’ll take the let­
ter to that man if she won’t.” But
instead of being ashamed or anything,
she just laughed right out and said,
“ Oh, is that it?” and pop he laughed,
too. So I didn’t know what to think.
Then pretty soon the woman got up
and left, and then a man come in and
said, “Well, Bert, how does she stack
up this morning?” to pop. So then I
thought surely pop would tell on her,
about the way she didn’t mind him
when he ast her to do things like tak­
ing letters to people, but pop just said,


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Federal Reserve Bank of St. Louis

Little Elbert Studies Banking

Mid-Continent Banker

12

A Recent Collection Law Decision
A n ^Acceptance of a Bill or Check Is the Signification
by^the Drawee of H is A ssen t to the Order of the Drawer
HERE a check is endorsed with­
out restriction by a depositor
and is at once passed to his
credit by the bank to which he de­
livers it he becomes the creditor of the
bank, and the bank becomes the owner
of the check and in making the col­
lection it is not the agent of the de­
positor, but as the owner of the check
assumes full responsibility and all of
the risk of not receiving the proceeds
after payment by the drawee bank, so
a high Federal Court has held.

W

In this particular case a check for
$5,000.00 was endorsed in blank by the
payee and deposited in the “ T” Bank,
and credited in the depositor’s pass
book—the check was then forwarded
to the “E” branch of the “D” Federal
Reserve Bank and from there direct
to the drawee bank in Arizona. The
drawee bank charged the check against
the drawer’s account, stamped it paid,
and returned it to the drawer. This
constituted payment and released the
drawer and endorsers.
The drawee
bank transmitted in lieu of cash its
own draft on another Arizona bank,
which was dishonored, both Arizona
banks having failed. The payee, the
check having been charged back against
his account, then sued the “ D” Federal
Reserve Bank, but the Court held that
there was no privity between the plain­
tiff and the defendant bank and that
he could not recover, as the “T” bank
was the owner of the check.
Acceptance and Certification.

An acceptance of a bill or check is
the signification by the drawee of his
assent to the order of the drawer. This
acceptance or certification must be in
writing and signed by the drawer.
Where a check is certified by the bank
upon which it is drawn, this is equiva­
lent to an acceptance, and where the
holder has it certified, the drawer and
all indorsers are discharged from lia­
bility thereon. A check is not an as­
signment of any part of the funds to
the credit of the drawer, and the bank
is not liable to the holder of a check
if it is not paid, unless and until it
certifies the same.
The drawer admits by drawing the
instrument, the existence of the payee
and his capacity to indorse, and en­
gages that on due presentment the in-


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Federal Reserve Bank of St. Louis

B y the Legal Editor

strument will be accepted, or paid, or
both.
The acceptor by accepting the instru­
ment engages that he will pay it ac­
cording to the tenor of his acceptance.
The action of a bank in holding
checks for more than twenty-four hours
without returning them does not con­
stitute an acceptance of them, and
make the bank liable for the amount
of the checks where it is shown that
the bank called up the other bank
which issued the checks and notified
it that it would pay them, and that no

Q uestions of interest to bankers
are discussed by the Legal Editor
each m o n th . Any subcriber has
the privilege of w riting for infor­
m ation and advice on legal su b ­
jects, and will receive a direct re­
ply fro m our attorney, w ithout
fee or expense. A brief of any
su bject involving research in a
com plete law library will be fu r­
nished for $10. In writing for in ­
fo rm a tio n , kindly inclose a 2 cent stam p for reply, and address
“ Legal Editor,
M id -C o n tin en t
Banker, 408 Olive Street, Saint
L o u is.”

demand had been made for their re­
turn.
An acceptance may be either general
or qualified. A general acceptance as­
sents without qualification to the or­
der of the drawer. A qualified accept­
ance in express terms varies the effect
of the bill as drawn. An acceptance
to pay at a particular place is a gen­
eral acceptance, unless it expressly
states that the bill is to be paid there
only and not elsewhere. An acceptance
is qualified which is conditional, that
is to say, which makes payment by the
acceptor dependent on the fulfillment
of the condition therein stated; when it
is partial, that is to say, when it is an
acceptance to pay part only, of the
amount for which the bill is drawn. An
acceptance is qualified also when it is
accepted to pay only at a particular
place.
The holder may refuse to accept a
qualified acceptance, and if he does not

receive an unqualified acceptance, he
may treat the bill as dishonored by nonacceptance. Where a qualified accept­
ance is taken, the drawer and the in­
dorsers are discharged from liability
on the bill unless they have expressly
or impliedly authorized the holder to
take the qualified acceptance or have
subsequently assented thereto.
A bank was requested to certify a
check by wire.
It refused on the
ground that the check did not trans­
fer the funds until it reached the bank
and that the depositor could revoke the
payment after it was certified. In this
case it was held that a bank can cer­
tify by wire and after such certifica­
tion the drawee has no right to stop
payment. It was also held that the ac­
ceptance was in writing and valid even
though it was not written on the bill.
Where a drawee bank simply answers
that the check is “ good” or “ all right,”
without coupling with such answer any
specific promise to pay, such answer is
insufficient to bind the bank as an ac­
ceptor.
In reply to a question as to whether
or not a check was good, the bank said
“yes,” and when asked if it would pro­
tect the bank holding the check, it re­
plied over the telephone “we will.” In
this case the bank declaring the check
to be good, which proved to be worth­
less, was not liable because the certifi­
cation was not in writing.

Southern Secretaries Hold
Meeting at Raleigh
The ninth annual conference of sec­
retaries of southern banking associa­
tions was held December 2-3 at Raleigh,
North Carolina. Paul P. Brown, secre­
tary of the North Carolina Bankers’ As­
sociation, was elected president of the
association, and Geo. B. Fower, secre­
tary of the Mississippi Bankers’ Asso­
ciation, was elected secretary. It was
decided that the next meeting is to be
held in Jackson, Mississippi.
Round-table discussions were conduct­
ed on such subjects as “Bank Super­
vision,” “ Deposits,” “ Loans,” “Legisla­
tion,” and “Agricultural Problems.”
Entertainment was provided by the
Raleigh Clearing House Association,
and Mr. and Mrs. Brown were hosts at
a dinner party on December 2.

St. Louis, January, 1927

13

iiiiimiiiiimimimimiiiiiiiiiiimiiiiimiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniii

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selecting your Chicago corresponden^wecordially invite you to investigatethose complete
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have enabled it to serve many correspondents
for ten, twenty, and even thirty years or longer.
N

W it h a balanced organization of correspondent banks and
private wires carefully built up over a long period of years,
we welcome the opportunity to serve our correspondents in
matters that require accurate credit information, intelligent
collection handling, and rapid turnover of funds in transit.
H arry A . W

Fr e d e r ic k H . R a w

h eeler
President

son
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C r a ig B . H

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V ice-P resid en t

UNION TRUST
COMPANY
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Offering the Seven Essentials o f a Banking Home
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Federal Reserve Bank of St. Louis

SPIRIT

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Mid-Continent Banker

14

The Financial Outlook

Throughout
T h e officers and employes
o f this institution, as in years
g on e by, recogn ize a dual
obligation o f profit and o f
service— to 3500 stockhold­
ers and 210,000 customers in
all parts o f the United States

TheCONTINENTAL W


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Federal Reserve Bank of St. Louis

COMMERCIAL

BAN KS
C H IC AG O

Re so u r c es H a l f

a

B illio n —a n d More

(Continued from Page 8)
perous conditions in others, but proba­
bly not to quite the same extent as
in 1925 and 1926.
In 1925 we had a business scare in
April and May. In 1926 we had a fit
of pessimism in March. In 1927 we
may very possibly develop the same
ideas. While this feeling, if it should
develop, may be somewhat more justi­
fied in 1927 than in 1925 and 1926,
nevertheless the outcome of the year
will doubtless prove that any consider­
able pessimism for 1927 was a horse
in the wrong garage.
Unless inflation should develop and
collapse, unless European competition
should gain in a sudden and spectacular
way, unless we should suffer a crop
calamity or a big strike, unless a scare
should develop in connection with the
continuance of a fair amount of con­
struction resulting in a widespread
stoppage of work, unless a panicky
feeling should spread regarding install­
ment buying that would suddenly cut
down the volume of this means of
financing the purchase of goods, there
is apparently no reason for a depres­
sion year in 1927.
The somewhat popular slogan of the
moment, “ Prosperity cannot go on
forever,” if translated into hesitation
in going ahead with the normal busi­
ness of the coming year, might lead
to uneven production and mix up the
cogs of the business machine, but the
evidence so far before the court
should convince any fairly intelligent
jury that this slogan is somewhat out
of place, and that while there may be
some waves ahead in the business sea,
the tide still rolls in the right direc­
tion.

Announce New and Enlarged
Board of Directors
The Sheridan Trust and Savings
Bank, Chicago, announces the forma­
tion and election of a new and en­
larged board of directors, consisting of
Emil G. Seip, chairman, president of
Calumet National Bank, and Gerhard
Foreman, chairman executive commit­
tee,
vice-president
The
Foreman
Banks. Other members of the board
are: George N. Neise, vice-president
of The Foreman banks; Weymouth
Kirkland, Milton S. Plotke, William A.
Burnette, William M. Dewey, L. W.
Ferguson, Ernest M. Hunt, R. Leroy
Huszagh, W. H. Powell, F. J. Macnish
and Edwin L. Read.
There is always a secure position at
extra pay for him who will do more
than his part.—The Silent Partner.

15

St. Louis, January, 1927
Little Elbert Studies Banking
(Continued from Page 11)
me a nickel, either, so finally I went
away from there.
Pretty soon I began to get hungi-y,
and everybody went away except me
and pop, and he said he would go to
lunch as soon as Mr. Crandall got
back. So just then the telephone rang
and pop answered it, and he said, “No,
I can’t just now. I’m here alone,” but
then he said, “Wait a minute,” and he
ast me could I stay there and watch
things while he stepped into Bates’
store next door. So I said yes, and so
he told the man all right he would be
right over. Then he told me if any­
body came in, to say that he would be
back in just a minute, and to tell them
where he was if they couldn’t wait.
So he went.
Pretty soon a fellow came in, and
he looked at me kinda funny, setting
back there behind the counter, and he
ast me where pop was. So I told him.
Finally he said he would wait, so I
ast him did he want to put in, or take
out. Then he looked at me kinda
funny, and said he thought he would
put in maybe. So I told him how pop
would be awful glad of that, because
he had told somebody named George
that they would have to do something
about their deposits pretty soon or
they wouldn’t have any bank left. So
this man just looked at me kinda dumb,
and he acted awful fidgety. So then he
said he gussed he wouldn’t wait for
pop after all, and then he went out.

me some money and told me to go to
a movie. He said not to come back
till after four o’clock, so I didn’t get
to learn any more about banking that
day at all.

National City Bank Makes
Big Capital Increase
The National City Bank of New York,
with total resources in excess of a bil­
lion dollars, has taken action which
will make it the largest commercial
bank in the world in point of capital,
surplus and undivided profits.
A $25,000,000 increase in capital
stock, approved by the directors, will
give the National City a total capital
surplus and undivided profits of approx­
imately $143,000,000, which compares
with $130,000,000 for the Midland Bank,
$129,000,000 for Lloyd’s Bank and $125,000,000 for Barclay’s Bank, London’s
three largest institutions.


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At the annual meting of the Missis­
sippi Valley Group of the Investment
Bankers Association, held Tuesday,
December 7th, the following officers
and members of the Executive Commit­
tee were elected: Harry F. Stix, chair­
man; John R. Longmire, vice-chairman,
and Oliver J. Anderson, secretary-treas­
urer.
Members of the Executive Commit­
tee were elected as follows: Walter
W. Ainsworth, Federal Commerce
Trust Company; Samuel C. McCluney,
McCluney & Co.; Roy W. Maule, Wm.
R. Compton Company; John E. Riley,
Francis, Bro. & Co.; Charles Scudder,
Whitaker & Co.; Garfield J. Taussig,
Taussig, Day, Fairbank & Co.; Henry
T. Ferriss, First National Company,
ex-officio, and Kelton E. White, G. H.
Walker & Co., ex-officio.

THE
FOREMAN
BANKS

An Easy Job.

Finally I noticed how that man that
was wrapping up the money had for­
gotten a lot of it, and I thought I would
help him out, and then he would be
sorry because he hadn’t given me a
nickel. So I wrapped up a lot of it,
and it was a lot of fun. I didn’t even
have to count it, because it always
showed right on the outside of the
roll how much there was. So then I
put it all in the vault, the way I had
seen him do.
Then in a minute pop came back and
Mr. Crandall, too, so pop and me went
out to lunch. So pretty soon we came
back, and after while Benny Kline’s
dad came in to see pop. So they stood
there and talked a while. Finally I
saw how pop had to look up to him,
because he was taller than pop, so I
said, “Well, pop, I guess you’ll have
to eat your hat, all right, because I
don’t believe you are a bigger man
than Mr. Kline, like you said you was,
after all.” But then pop kinda kicked
back at me, when he thought Mr.
Kline wouldn’t see, so I thought I
would talk about it some more after
we got home that night. So finally
when Mr. Kline went away, pop gave

Mississippi Valley Group
Elects New Officers

FOUNDED

We

invite

1862

your

business

on a 64 -year record of con­
tinuous

growth*

We

are

fully equipped to serve you
in every banking function.

The

Foreman National Bank

The Foreman Trust and Savings Bank
La Salle and Washington Sts.
Chicago
Combined Resources Exceed
One Hundred M illion Dollars

16

Mid-Continent Banker

Forem anBanksM akePlans
for Big Capital Boost
HE board of directors of the
Foreman Banks, Chicago, at their
December meeting, decided to
recommend to the stockholders that
the capital stock of the Foreman Na­
tional Bank, which carries with it
ownership in the Foreman Trust and
Savings Bank and the Foreman Se­
curities Company, be increased from
40,000 shares to 50,000 shares, the ad­
ditional 10,000 shares to be offered to
the present stockholders at $400 per
share. The present dividend rate of
$16 a share will be continued.
The $4,000,000 derived from the
sale of 10,000 additional shares will
be divided in the following manner:
$2,500,000 to the Foreman National
Bank, which will give it a capital of
$5,000,000, a surplus of $5,000,000, and
undivided profits of over $1,000,000;
$1,000,000 to the Foreman Trust and
Savings Bank, which will give it a
capital of $2,000,000, a surplus of
$1,000,000, and the remaining $500,000
to the Foreman Securities Company.
The plan will be submitted to the
stockholders at their annual meeting
on January 11, 1927, and, if adopted,
immediately thereafter rights for the
new stock will be issued, calling for
payment not later than January 27,
1927.

T

Profit to

Stockholders.

Inasmuch as the present market
value of the Foreman National Bank
stock is $500 per share, the issuance
of these rights constitutes a bonus.
It is indeed interesting to note the
development and progress of the Fore­
man Banks. It was founded in 1862
by Gerhard Foreman, one of our early
pioneers, and incorporated as a state
bank in 1897 under the name of Fore­
man Bros. Banking Company, with
deposits of less than a million dol­
lars. At that time the bank had only
three officers, Edwin G. Foreman,
president; Oscar G. Foreman, vicepresident, and George N. Neise, cash­
ier. Its progress and growth was
right in pace with that of the city,
and on July 1, 1923, a further step
forward was made by changing Fore­
man Bros. Banking Company to the
Foreman National Bank and the
Foreman Trust and Savings Bank.
On December 24, 1924, the Foreman
National Bank increased its capital
stock from 30,000 shares to 40,000—
the additional 10,000 shares being
sold to the public at $400 per share.
This was a decided change in policy

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Federal Reserve Bank of St. Louis

as the stock had previously been held
very closely. In disposing of the ad­
ditional 10,000 shares, over 800 new
stockholders were added, and the
money secured from the sale of the
stock was used in increasing the cap­
ital and surplus.
$100,000,000

Resources.

Since that time the bank has con­
tinued its growth and its resources at
the present time exceed $100,000,000.
The directors are: Oscar G. Fore­
man, Carl Nyquist, Albert D. Lasker,
William C. Cummings, Delos W. Cooke,
Edwin G. Foreman, Jr., John Hertz,
George N. Neise, Charles A. McCul­
loch, Emil G. Seip, Joseph W. Cremin,
Gerhard Foreman, John R. Thompson,
Jr., Samuel Phillipson, Alfred K. Fore­
man, L. B. Patterson, Oscar G. Mayer
and Harold E. Foreman.

Prominent St. Louis Banker
Dies Suddenly
Thomas Fitzhugh
Turner, wellknown banker and manager of the
Safe Deposit Department of the First
National Bank, was stricken at his
desk Tueday evening, December 14th,
1926, and died shortly after.
Mr. Turner was born in Charleston,
S C., in 1856, and came to St. Louis
as a young man, and for several years
was connected with the Midland Blast
Furnace Co. He then entered the in­
surance business for a short time. He
became associated with the Union
Trust Company, which consolidated
with the St. Louis Union Trust Com­
pany in 1902—Mr. Turner being man­
ager of the Safe Deposit Department
which later merged and became the
First National Bank—having one of
the largest Safe Deposit Departments
of the city.
Mr. Turner married Miss Georgette
Boswell, who survives him, together
with two daughters who reside in the
East and a son in California.

Oldest Bank on B roadw ay
M oves Back D ow ntow n
The Chemical National Bank will
move from 270 Broadway to 165 Broad­
way as soon as the construction work
now contracted for is completed. This
is the bank’s second move in 102 years.
The Chemical was the first bank on
Broadway, opening its original office
in 1824 at 216 Broadway and moving in
1848 to 270 Broadway, where it has
been domiciled ever since. Now, after
76 years in that location, it is moving
back downtown. This move is neces­
sitated by the fact that the bank has
entirely outgrown its present quarters
and also because of the great increase
in its business in the Wall Street dis­
trict.
A new six-story building especially
designed for banking will be erected at
the corner of Broadway and Cortland
street, connecting with and forming a
part of the 32-story building known as
the Benenson building. This will be
the bank’s office, for which some 50,000
square feet are being provided. It is
expected that the building will be com­
pleted early in 1928. It will be one of
the most up-to-date and attractive
banking offices in the country.
At the same time the bank an­
nounces that it will open a large office
at 320 Broadway in the heart of the
textile district. This was the location
of the Citizens’ National Bank before

it was consolidated with the Chemical.
The bank has two uptown offices now
operating very successfully—its Fifth
avenue office at 29th street, and its
Madison avenue office at 46th street.
This expansion and development of
a larger range of business has been an
outstanding feature of the bank’s
growth during recent years since the
inauguration by its president, Percy H.
Johnston, of a more progressive policy.
The Chemical has shown a steady
growth for the past few years, not
only in its regular commercial and
financial business, but in its trust, bond
and foreign activities.
The Chemical Bank is one of the
few institutions to preserve its name
and identity unchanged for more than
a century.
The Chemical has for a long time
been known in financial circles as “ Old
Bullion” because of its refusal during
the financial stringency of 1857 to dis­
continue specie payments, even though
all other Clearing House banks had
done so. Its stock at one time sold
at the peak of all bank stocks, going
as high as $5,000 per share. The bank’s
low capitalization and large surplus
were features that made it stand out
among the nation’s financial institu­
tions. The capital today is $4,500,000,
surplus and undivided profits $19,000,000.

17

St. Louis, January, 1927

M acon Banker Says 1927
Outlook Is Good
TT) EFLECTING the prosperity of
Northeast Missouri and the unusual
strength of one of its banks, is the an­
nouncement by the State Exchange
Bank of Macon that its regular divi­
dend checks to stockholders for the
last six months are just twice the
usual amount.
According to Chris R. Maffry, presi­
dent of the State Exchange, this in­
creased profit to stockholders is due to
the excellent conditions existing in
Macon and vicinity, and the result of
conservative management of the bank
tempered by sound progressiveness.
“ This year, generally speaking, has
not been one of increased profits in
country banking,” says Mr. Maffry.
“ The fact that our bank is able to
double its usual dividend indicates a
splendid degree of prosperity for this
section and points to a bright outlook
for 1927.
“Aside from the handicap of some
very bad weather during a large part
of the year, the farmers and the mer­
chants of Macon County will go into
the New Year in fairly good circum­
stances.
“There is evidence on every side
that the situation is improving. If you
compare conditions with this time last
year I would say there has been a de­
cided improvement.
“ Our deposits show a substantial
increase over those of last year, and
I feel quite sure other banks of the
county have experienced the same in­
crease.
“ The ¡increased number of people
who have gone into the dairy and the
poultry business are largely responsi­
ble for the increased deposits in our
banks.
“The farmer who has been fortunate
enough to have hogs has made more
money than he has made on hogs for
many years. That was because of the
spread between the cost of feed and
the cost of live pork. This difference
has brought a handsome return to the
raiser.
“ Most of the cattle feeders, however,
have been disappointed. The price has
not been what they expected.
“ Sheep have maintained a good
price. With the large pasturage acre­
age in this county this branch is ap­
pealing more and more to our farmers
and they are getting good results.
“With better weather conditions I
believe we would have enjoyed a record
yield in many crops. As it was beans
have been almost a total failure, the


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

corn crop was considerably damaged
and other crops were badly retarded.
“The dairy and poultry departments
have held up and have given the
farmer the necessary ready cash—that
and hogs, when he had them.
“ There remains but one thing to en­
able us to reach ultimate success in
the industry of dairying. That must
come through expert advice as to the
culling of our herds of milk cows to
the point where only good producers
are left. There are too many so-called
‘boarders.’ That is the worst obstacle
standing in the way of making money

The Measure of
a Bond House

Investment and finan­
cial advice is the es­
sence of what a bond
house sells.

* * *

It is just as important
that such advice be in­
telligent as it is that it
be sincere if the ends of
sound

investment

are

to be attained.

* * *

The

bond

house

that

is well managed grows
Chris R. Maffry

and prospers in direct

now in the dairy business in these
parts.
“Lately I have been reading up on
the way improvement in this direction
was brought about in Denmark. It
was made through experts, who are
paid on the basis of results. If he in­
creases production he gets paid for
it. If he fails he doesn’t. He has to
make good, or he gets no salary.
“ Technical training is the very foun­
dation of the Danish method, and in
Denmark the day of the unskilled man
in farming has gone forever.
“It has resulted in the raising of the
farmer’s butter yields six times, his
egg yield seven times, and his bacon
yields sixteen times over what it was
when he was not technically trained.
“The farmer will not take amiss
what I am going to say right here, I
trust, as I am sincerely interested in
seeing everything that can possibly
contribute to his success and the mak-

proportion to its per­
formance with respect
to

the advisory func­

tion.

This

Measure

of

is

“ The

a

Bond

H ouse.”

First Illinois Company
BONDS FOR INVESTM EN T

CHICAGO
AURORA

MILWAUKEE
DAVENPORT

ST. LOUIS
B oatm en’ s Bank Bldg.

18

Mid-Continent Banker

What Do You Want?
tell us and we will help you find it. W e have created this
new classified ad department as a free service to subscribers.
If you have something to buy or something to sell, or if you
want anything, you can make it known to the bankers in the
Mid-Continent territory without cost. If you are not a sub­
scriber, your check for $3 will pay for a year’s subscription
and entitle you to free use of the want ad columns.
P o s iti on
W anted
by assistant
cashier who desires better oppor­
tunity for advancement. Twentyeight years of age.
Pour years’
experience as assistant cashier.
Best
of
references.
Address
} • B.
M.,
The Mid-Continent
Banker— 7.
___ __
C o n t r o l li n g I n t e r e s t in good bank
for sale.
Small town state bank.
Capital $15,000.
Surplus $9,000.
Undivided profits $1,050. Cashier’s
salary $2,400. Net earnings 15 per
cent. Will sell half the stock and
divide salary with party, or handle
salary on that, basis, with sale of
stock anywhere from 60 shares up
to all of it.
Address D. N. H .,
The M id-Continent Banker— 7.
F o r Sa le:
Large, square door,
fireproof safe with inside money
chest with time lock.
In good
condition and priced reasonable.
Address Farmers & Merchants
Bank, Sterling, Okla.
Pos ition
W anted
as assistant
cashier in medium size bank by
young man twenty-eight years old.
College graduate, four years bank­
ing experience. Also enrolled with
the LaSalle Extension University,
Chicago, in Law.
Address V-12,
M. C. B.— 7 . ______
Pos ition W a n t e d as cashier in
good country bank or as assistant
cashier in larger bank by married
man. 15 years’ experience.
Now
employed.
Desire better opportu­
nity for advancement.
Best of
references. Address No. 1010, The
Mid-Continent Banker.
B a n k C on t r o l W a n t e d :
Country
banker desires to purchase control
of good bank in town of not less
than 1,000; American community
in Central Illinois preferred.
All
communications confidential.
A d­
dress No. 1011, The Mid-Continent
Banker.
In t e r e s t in B a n k W a n t e d : Would
like to purchase controlling interest
in a, good bank in a town of 2,000
to 4,000 or to purchase a minority
stock interest carrying with it an
official position. I have had six­
teen years’ experience in a state
bank.
Now with National Bank
with resources of $1,000,000, for
three years as cashier and active
manager.
Address No. 105, The
Mid-Continent Banker— 1.
Pos ition
W anted
in bank by
young man.
Opportunity for ad­
vancement desired.
No banking
experience but good business edu­
cation.
Two years’ college.
Fu­
ture prospects will be considered
more than large salary to start.
Best references. Can invest. A d ­
dress L. E. T., The Mid-Continent
Banker— 6.
S it u a t i o n W a n t e d :
Young lady
cashier of a country bank wishes
a position as teller in a larger
bank.
A1
references.
Address
No.
113.
The
Mid-Continent
Banker— 5.
F o r Sa le: One round screw door
Mosler Manganese Steel burglarproof bank safe; one Burroughs
Posting Machine; one Burroughs
Listing and Adding Machine, and
one Check W riter. These fixtures
are in good condition, and will be
priced right. Address O. J. W atts,
Napton, Missouri— 2.


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Federal Reserve Bank of St. Louis

B a n k e r , 39, with 20 years’ ex­
perience, now owns and is Cashier
of $10,000 bank, with $100,000 de­
posits in town of 500. Would trade
control and position for stock and
position in larger town.
Address
R.
H.
L.,
care Mid-Continent
Banker— 2.
W anted:
Physician
for good,
live town in Northern Illinois. 300
population. Unopposed. Near hos­
pital city.
Good opportunity for
young man to establish good prac­
tice. Nothing to buy. Protestant
community.
Give references and
qualifications.
Address No. 112,
The Mid-Continent Banker— 4.
For
Sale:
Large Victor bank
safe (with or without Manganese
Steel Screw Door Money Chest, 56
safety deposit boxes and book
section and drawers). A bargain
for large office or small bank. A d­
dress
No.
109,
Mid-Continent
Banker— 3.
F o r Sa le: Large safe cabinet, 84
inches high by 50 inches wide.
About 50 drawers, 2 letter files and
6 document files and locker. R e­
puted fire proof. Address No. 110,
Mid-Continent Banker— 3.

For Sa le: Controlling interest in
successful
National
Bank
with
$100,000 capital and $900,000 totals.
Located in good town of 7,500 pop­
ulation in good section of Illinois.
All investments and loans guar­
anteed. One or two official posi­
tions go with stock. Do not an­
swer unless you have the capital,
age and experience to manage a
good, going bank. Address I. E. S.,
Mid-Continent Banker— 11.
F i x t u r e s f o r Sa le :
Marble and
bronze screen surrounding Lobby,
72x20 feet.
Ten cages with thir­
teen wickets and other equipment.
Special
selected
English
vein
Italian marble.
Very attractive.
Also several sets of money chests.
Available at once.
Removal to
new building necessitates sale. In­
quiries solicited. Price very rea­
sonable. Address Commercial N a ­
tional Bank, Peoria, 111.
Pos iti on W a n t e d as cashier in
good country bank or assistant
cashier in larger bank by married
man with three years’ experience
as cashier in good country bank.
Now employed. Desire better op­
portunity for advancement. Best
of references.
Address No. 10S,
Mid-Continent Banker— 2.
W anted:
Excellent opportunity
for banker favorably known in
Missouri, Kansas and Oklahoma,
or all three states with progressive
Kansas City bank, well thought of
throughout that territory.
Would
want man capable of organizing
and supervising country bank de­
partment and one able to bring
considerable business to bank with
him. Future would depend entire­
ly upon growth and success of de­
partment.
Address No. 112, care
The Mid-Continent Banker,
408
Olive Street. St. Louis.
Sa v e M o n e y — B uy T h e s e :
Bur­
roughs
bookkeeping
machine
(practically
new).
flat-top
oak
desk, Underwood typewriter No. 5,
swinging desk stand for typewriter,
office chair. Address A. H. Hicks,
Altamont, 111.— 4.

ing of life better for the people of
the farm. From my study and knowl­
edge of conditions I feel that I must
say, in the final analysis, the bad sit­
uations that have come to my atten­
tion are chargeable to the individual—
his lack of expert knowledge in what
he hopes to accomplish. It matters not
whether you are running a farm, a
newspaper or a bank, you must have
expert management to succeed. That
is fundamental. There must be some
one at the head to think, to plan and
to guide the working out of what you
hope to do. And that management
must be held responsible for results.
“ The coming year? It looks good
to me. I may be of a naturally opti­
mistic nature—but that is what it
takes to make your ambitions work
out.”

Chemical National Votes
Big Stock Dividend
The directors of the Chemical Na­
tional Bank have voted a $500,000
stock dividend subject to the ratifica­
tion of the shareholders at the annua]
meeting on January 11th. The present
dividend rate of 24 per cent will be
maintained. This will make the cap­
ital of the Chemical $5,000,000, the sur­
plus and undivided profits $19,000,000.
For many years the Chemical Bank
has been known for its large surplus
as compared with its small capital. In
1907 the bank’s capital was increased
from $300,000 to $3,000,000 by a 900
per cent stock dividend made entirely
from the earnings of the bank. Prior
to that the bank had paid to the share­
holders an annual dividend of 150 per
cent. The stock of the Chemical Bank
sold at one time as high as $5,000 per
share. In 1920 when the bank consoli­
dated with the Citizens’ National Bank
the capital became $4,500,000.
The Chemical Bank was organized
in 1824, opening for business at 216
Broadway, opposite St. Paul’s Church,
as the first bank on Broadway far up
on what was then considered the out­
skirts of the city. The bank has been
known in financial circles as “ Old
Bullion” since the panic of 1857 when
it was the only bank to continue
specie payments.
Since Percy H. Johnston became
president of the bank he has added
to its conservative policy a program
of expansion and development which
has included two branch offices, one
on Fifth avenue and one on Madison
avenue, and it is understood that a
much larger program will be carried
out during the coming year. Since
Mr. Johnston came to the bank the
surplus has increased from $7,000,000
to $17,500,000.

19

St. Louis, January, 1927

Bond and Investment Section
The Tendencies in the Bond Market
E asy M oney Rates and Reduced Comm odity Prices
Point to Strengthening in Level of Bond Prices
Where do all the bonds go, is a ques­
tion that has been frequently asked
during the past year. Dealers them­
selves viewing the unprecedented out­
put securities during the year, and the
ready absorption almost immediately
following, have, at times, expressed
equal wonderment. The total volume of
financing, including both stocks and
bonds, in the United States during
the present year, according to present
estimates, will aggregate no less than
$7,000,000,000—the largest figure in all
history, excluding the period of Govern­
ment war financing. All of this, of
course, was not new capital, approxi­
mately 12% being for refunding pur­
poses.
To find an answer for the question
asked above, one must consider the
many factors that have been at work
over a several year period to create the
seemingly inexhaustible supply of sur­
plus funds that has been evident
throughout the year.
Primarily, of
course, it is due to the generally pros­
perous business situation which has now
continued for several years, resulting in
a wage-scale allowing many people a


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

B y C. W . Sills
Vice-President, Halsey, Stuart 8s Co., Inc.

larger surplus over living requirements
than ever before—much of which has
gone into the investment market, di­
rectly or indirectly.
A corollary of this situation has been
the ever-widening appreciation of the
merits of sound investment securities,
starting in many cases, with the pur­
chases of Liberty Loan Bonds, and de­
veloping from the widespread educa­
tional effort attending the large increase
in security distributing organizations,
with their largely increased sales
forces, and broader and more intelli­
gently directed advertising efforts.
Another factor of no small importance
in the increased demand for sound
securities has been the diminution in
output of fraudulent and highly pro­
motional securities—also the result, in
part, of increased educational effort
guiding the investing public toward
more intelligent selection of securities,
and
to
well-conceived
legislation
aimed at curbing the activities of the
Blue Sky vender. Figures are lacking

Suggesting

1927

as to the volume of unsound securities,
but it appears safe to say that despite
the prosperous conditions that have
for some time prevailed, which would
ordinarily result in a large outpouring
of such securities, the volume during
recent years appears to have shown an
actual decline.
Why

Sales

Have

Increased.

Such departures as the legalizing of
public utility bonds in certain of
the New England states; the creation
of the Farm Loan System (thereby
diverting considerable sums from the
mortgage field to the bond market);
the activity in building and the attend­
ing growth in the real estate bond field
are also factors distributing to the
present-day large supply and demand
for investment bonds. The tremendous
growth in savings deposits throughout
the country; the vast increase in life
insurance (much of which goes indi­
rectly into the bond market) have had
their influence. The change in market­
ing and merchandising methods has
also been a factor—less money, in other
words, is now tied up in inventories
than ever before, thus releasing it for

Investments

The following issues have been carefully selected by us
and are recommended for the investment of your funds.

STANDARD OIL CO. OF NEW YORK............................ .......
Twenty-five-Year Debenture 4%s.
PUBLIC SERVICE CO. OF NORTHERN ILL................... .......
Series of 1926, Debenture 5s.
NORTHERN INDIANA PUB. SERVICE CO................... .......
First and Ref. Mtge. Ser. C, 5s.
CENTRAL ILLINOIS PUB. SERVICE CO....................... .......
First Mortgage and Ref. Ser. E, 5s.
FIRST NATIONAL PROPERTIES, INC.......................... .......
First Mtge. (Closed) Serial e^s.
CITY OF YOKOHAMA, JAPAN....................................... .......
Ext. Loan 1926 Skg. Fund 6s.

PRICE

1951

97.75

4.65%

1931

99.50

5.00%

1966

98.50

5.09%

1956

97.00

5.20%

1932-36

99.50

6.50%

1961

93.00

6.55%

Fall descriptive circulars of these issues will be sent upon request.

P o t t e r , Ka u f f m a n & Co.
-------------------------------- ( i n c o r p o r a t e d

511 Locust Street

Saint Louis

Y IELD

DUE

GArfield 7460

20

Mid-Continent Banker

STICKNEY'DENYVEN&Co.
BONDS
SECURITY BL D G X ^^ ST. LOUIS, MO.
G a r fie ld 3140

7

• "

m

v

E have prepared a Folder containing- a
diversified and comprehensive list of bonds
for January Investment.
The securities are
selected from issues which we have underwritten
either singly or with associates or from those in
which we have acted as a participating distribu­
tor. The list is designed to meet the needs of
banks and every type of individual investor.

W

IN C L U D E D IN

T H IS L IS T A R E :

Public Utility Bonds
Water—electric light and power—gas
Yielding from 4.95 to 7.10 Per Cent

Corporate Building Bonds
Secured by first mortgages on some of the most
important office buildings of New York and Chicago
Yielding from 5.35 to 6.45 Per Cent

Miscellaneous Bonds
Obligations of foreign countries and industrial
corporations
Yielding from 6 to 7.15 Per Cent
Any of these securities may be purchased now
for delivery on or before January 15th, 1927.

Outlook f o r the Ne w Year.

Write for Folder

A

P. W . CHAPMAN Q CO.. ING.
CH ICAGO

NEW YORK
St .Louis Office:

1103 B oa tm e n ’s Bank Building
Telephone GA rfield 3840


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Federal Reserve Bank of St. Louis

other purposes, partly for investment.
This is due, in part, to the so-called
“hand to mouth buying” so prevalent
among both manufacturer and mer­
chandisers resulting, in a measure, from
greater conservatism on their part—
an outgrowth of the post-war deflation
period—and also to the vastly im­
proved transporation facilities which
make it possible to get orders quickly
from the jobbing centers. The lower
interest rates which have prevailed
during recent years have also been a
factor in releasing some funds for in­
vestment—that is, many organizations
have been able to refund at consider­
ably lower figures, thereby reducing
their fixed charges.
Improvement abroad has also had its
effect. In the first place, the broader
viewpoint of the American investor
has made him willing to purchase the
bonds of foreign countries and indus­
tries—a class of securities which pre­
viously he was a bit wary of due to his
own unfamiliarity with them. This im­
provement abroad has recently had
another effect affecting demand, in that
some foreign corporations and munici­
palities are now finding it possible and
desirable to repurchase their own issues
for the purpose of cutting down their
debts.
As for the more immediate causes of
the unprecedented financing of 1926,
first consideration should perhaps be
given to the easy money situation that
has prevailed throughout the year en­
abling corporations to borrow on favor­
able terms, and which has lead to
steadily strengthening bond prices. It is
a fact, of course that investors are more
inclined to buy on a rising than a fall­
ing market, and the past year has
proven no exception to that rule. The
lower trend of commodity prices dur­
ing the past year has also had its effect
on the price level—as the dollar buys
more, the price of bonds naturally
moves the other way. The continued re­
duction of Government debt through­
out the year, and the possibility of
further tax relief in the form of re­
ductions or refunds are factors which
have a bearing perhaps more on the
price level of securities than the out­
put.

St. Louis

Whether or not the existing favor­
able market will continue into the new
year is not so much debated as how
long it will continue, for opinion pretty
generally agrees that as far as it is
safe to predict, present conditions
promise to prevail in both industrial
and investment circles. Any diminu­
tion in the output of securities would,
of course, prove an important factor in
fixing the trend of prices, for, with the
supp’y of surplus funds maintained at

21

St. Louis, January, 1927
somewhat its present level, and the
output of securities decreased, there
would naturally be a further upward
swing in bond prices.
Investment
hankers, for several years past, have
been fearful that the supply of new
offerings might slow up somewhat, but
that eventuality has not as yet ma­
terialized, and there seems no serious
reason for believing that it will during
the new year. If business should slow
down, that might decrease the new of­
ferings—the necessity for expansion of
industry being curtailed, and consider­
able funds now employed in industry
being released for investment. There
appears no present reason for antici­
pating that this will happen, however.
There is the possibility that the build­
ing industry which has contributed so
largely both to general business pros­
perity, and to the output of securities,
may show recession during the new
year. There is also the possibility that
certain foreign countries which had to
look to us for financing during their
period of reconstruction and have now
attained more stable conditions, will be
able to do more of their own financing
thus cutting off a source of supply. There
still remain, however, many foreign
countries which have need of our help,
and from them we can expect a con­
siderable volume of financing, assuming
our willingness to meet their demands.
Railroad financing during the past
three years has been in declining vol­
ume, aggregating less during the
present year than the year preceding,
which, in turn, showed a decline over
the year before—this despite the fact
that earnings have shown rather steady
improvement and have been particu­
larly good during the present year.
The railroads are, of course, doing
very little expanding, and, for the most
part, are probably not seriously in need
of additional financing. Their capital
structure, however, in many instances,
is somewhat unbalanced, interest bear­
ing securities forming too preponderant
a part of the whole. There appears lit­
tle probability, therefore, of any con­
siderable increase in interest bearing
financing from the railroad field, though
unquestionably certain of the carriers
would welcome an opportunity to do
more stock financing. Whether or not
they would be able to do that is, of
course, problematical, though with the
continuance of present earnings it ap­
pears not unreasonable to anticipate
that they may be able to do this at a
not distant date. It is interesting to
note that in this connection, during
1926, stock financing on the part of
railroads was almost negligible—in
fact, at the time of writing it aggre­
gated only a little more than $10,000,000. One of the most interesting devel-


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Federal Reserve Bank of St. Louis

We Thank You
To our many friends and clients who
have so generously entrusted to us
their bond business during the past
year, we desire to express our deepest
appreciation.
For 1927 we wish each and every one
a full measure of prosperity and hap­
piness.
We pledge an impartial and reliable
investment service, such as we have
rendered in the past, and upon which
we have builded an enviable record.

BOND D E P A R T M E N T

U

m

o

i v

T

r
o f

Ferd. W. Hemker
John B. Clark
Thomas Powers
James Collins
Kermit Hemker

w

u
E

C

s t

a s t

S

t

IN

1N O i

.L

o m

p a n y

o u is

E. P. Keshner
Edward Ackerman
Noble Hemker
James Shannon

22

Mid-Continent Banker
opments of the year in the railroad
field was the inauguration, by the In­
terstate Commerce Commission, of com­
petitive bidding among banking institu­
tions for new equipment offerings. This
is a practice now firmly established in
the field of municipal financing—with
which equipments are somewhat com­
parable in point of ease of appraise­
ment, security and market distribution.
T ax -E x e m p t Financing M ay Decline.

ESTABLISHED 1877

LISTED
BONDS
W e are prepared

to

furnish accurate quo­
tations,

and

prompt

executions of buying
or selling orders for
listed bonds.
The experience
acquired during our
forty-seven

years

in

the investment field
is also at the disposal
of our clients.

*sfi*

Francis, Bro. & Co.
INVESTMENT SECURITIES
214-18 N. Fourth St.

Kennedy Building

ST. LOUIS

TULSA


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Federal Reserve Bank of St. Louis

In the tax exempt field there is the
possibility of some decline in the out­
put of securities. Domestic Municipals,
for instance, during the past three
years, have remained on about the same
volume level—incidentally at the high­
est point in history. Most of the de­
mand for public works, resulting from
deferment of such activities during the
war period, have now been met, and
there is undoubtedly a growing feeling
on the part of taxpayers that the tax
burden should not be materially in­
creased for improvements other than
those contributing directly to the wel­
fare or increased valuation of the com­
munities affected. As the Federal tax
burden is reduced from year to year,
there is, moreover, some diversion in
the demand for tax exempts to taxable
bonds resulting from the fact that
many, who in the high tax era were
forced by their tax liability to the pur­
chase of tax exempt bonds, are now
finding it advantageous to switch to
the taxable field. In so far as the large
output of municipal bonds was, there­
fore, a reflection of the active demand
for tax exempt bonds to avoid heavy
taxation, it is not unreasonable to ex­
pect that there will be some curtail­
ment in the supply. Incidentally, in
this connection, the present price level
of municipal bonds has not reflected
the same advance, over the past fouryear period, as that registered in most
other classifications. As a result some
purchasers who previously confined
their investments to taxable issues, can
now purchase tax exempts and obtain
a net yield closely comparable to what
they would obtain from high-grade cor­
poration issues. It is impossible, how­
ever, that the increased demand from
this source will offset the lessened de­
mand from the switch in the opposite
direction.
In the other field of tax exempt se­
curities—that is, Farm Loan bonds—•
there does not appear any reason to an­
ticipate an increase in output. In fact,
there may be even further recession
from this year’s figures, which in them­
selves are considerably lower than the
high level established during 1922 and
1923. The emission of such bonds, of
course, depends largely on conditions in
agriculture, which, during recent years,
have, as is common knowledge, been

SUPERIOR
SECURITY
SERVICE TO
BANKS
BANKERS and
BROKERS
D IR E C T T IC K E R SERVICE
for listed bond quotations
FA S T T H R O U G H W IR E S
to New York and every
other important market
A C T IV E T R A D IN G DEPT.
to furnish prompt quota­
tions on any security
S T A T IS T IC A L D E P A R T M E N T
to furnish latest data on
any security or company
M O N T H L Y Q U O T A T IO N SHEET
to list markets on many
inactive stocks and bonds
Y our inquiries incited

Mark C.
Steinberg
& Co.
O live 4600
B o a t m e n ’ s B an k
H otel
B ld g .
Jefferson
ST . L O U IS
M em bers N ew York Stock E xchange
M em bers St. L o u is Stock E xchange

Ten nationally'known paint'
ers—twice as many as before
— h e lp e d to m ake R e e d ’ s
Mass'magazine Plan for 19 27 .
See it fo r yourself.

23

St. Louis, January, 1927

HESE two once-daring young ban­
dits, who now are serving sentences
in prison, know the effectiveness
Federal Gas—the most modern form of
daylight protection. It stopped them—
and it saved the bank’s funds without
endangering anyone.
Federal Gas is endorsed and recom­
mended by the Underwriters’ Labora­
tories, and consequently carries a re­
duction in bank insurance rates.
Let us tell you more about this scientific
protection and its advantages.

T

A copy of o u r bo okl et , ‘• B e a t ­
ing t h e
B a n d i t , ” w h ic h
tells
w h a t F e d e r a l Gas is and h o w
it op er a te s , w i ll be sent to e x ­
e cu t iv e s
or
officials
w ithou t
obi ig at io n.

FEDERAL L A B O R A T O R IE S , Inc.
1631 L IB ER T Y AVE.

PITTSBUR GH , PA.

O ffices in N ew Y ork, P hilad elph ia, C le v e ­
land. T o led o , C hicago, Ind ianapolis, D e ­
troit, M ilw a u k ee, K a n sa s C ity and
St. L ouis.

1 9 2 7
Bank Advertising Rises to
N ew Standards of Excel'
lence Each Year.
—W h a t w ill Your Bank do
during 19 2 7 to establish its
Leadership in this as in
other respects?
—The day when one bank
could create an advertising
campaign of leadership is
dead: —but Your Bank can
still control the leading
cam p a ig n for its e n tire
trading territory.
Send for the full facts
on Reed’s Massunag'
azine Plan for 19 2 7 -

P.

M.

R E E D

Banker

Associates

TRIBUNE TOWER


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Federal Reserve Bank of St. Louis

C H IC A G O

none too favorable. In other words,
the farmer ordinarily borrows in periods
of prosperity, for the purpose of ac­
quiring additional land, new equipment,
or the erection of additional buildings.
With agriculture somewhat depressed,
there is a corresponding let-up in the
demand for these improvements and
expansions, and, therefore, a smaller
volume of Farm Loan bonds. There
has been some criticism of the Joint
Stock Land Bank System recently,
though the fact remains that they are
serving an important need, and, while
as would be expected in the very con­
siderable volume of loans negotiated by
these banks since their inception some
ten years ago, there have been some
defaults, and individual banks have not
shown a uniformly profitable record,
the relatively few foreclosures that
have occurred have not in any sense
impaired the intrinsic merits or perma­
nence of the system, nor the credit
ofstanding of conservatively managed
banks. It is significant of the greater
familiarity with the investment merits
ot' Farm Loan bonds that they sold
during the current year at the highest
price since the inception of the sys­
tem in 1916.
Public

U t i l it y

Financing
Billion.

T otals

Our
J an u ary
L ist
of sound, well-secured

Two

Perhaps the most interesting classi­
fication—and by a wide margin the
largest during the current year—is the
public utilities. The total volume of
public utility financing for the year will
probably aggregate no less than $2,000,000,000, or over 28| per cent of the esti­
mated total. During the year 4y2 per
cent public utility bonds on the part of
some of the large companies made their
first appearance and comment has al­
ready been made about their acceptance
for savings bank investments in cer­
tain of the New England states. Very
recently two important and extremely
favorable decisions were rendered by
the Supreme Court of the United
States. One of these held the law pre­
scribing $1.00 per 1,000 feet as the
maximum rate for gas in New York
City invalid because confiscatory. The
other affirmed the decision of the Dis­
trict Court of Indiana enjoining the pub
lie service commission of that state
from fixing the water rates of an Indi­
anapolis company at so low a figure as
to be allegedly confiscatory. Important
rulings were given in the latter deci­
sion having to do with the determina­
tion of fair values—one ruling being
that unless there was a marked trend
of prices, upward or downward, pres­
ent valuations were to be taken as a
fair measure of the value of the phys­
ical elements of the property. From
the standpoint of supply of utility offer­
ings there appears no reason to antici-

bonds is suited to the
requirements of conserv­
ative investors

whose

main considerations in
buying are safety of prin­
cipal and a steady, de­
pendable income.

Send for it

ChkagoTrust
Gompanv
Lucius Teter
President

JohnW O'Leary
Vice-President

BOND DEPARTMENT
J. W . Marshall,
Vice-President

J. P. Burlingham,
Manager

CHICAGO

24

Mid-Continent Banker

pate any marked curtailment of out­
put, for, despite the huge growth of
the industry during recent years, the
demand for the services of public util­
ities continues unabated due to the
ever-increasing uses to which gas and
electricity are being put, and in part,
of course, to the normal increase in
population.
The electric railways during the year
showed considerable improvement, and
the financing done in connection with
that industry, while not large, will prob­
ably exceed by a slight margin that
done in any previous year since the
war. There is a growing recognition
of the fact that in the large metropoli­
tan centers the electric railways have
a permanent place as the most econom­

ical agency for mass transportation
which it seems will inevitably lead to
the solution of some of the electric
railways’ other problems, principally
that growing out of inadequate fran­
chises. It appears not unreasonable,
therefore, to anticipate a further in­
crease in the output of bonds of such
companies.
With all indications pointing toward
a continuation of the present favorable
business situation, it is not unreason­
able to anticipate the extension, well
into the new year, of the generally
propitious conditions which now char­
acterize the market for investment
securities. There appears little doubt,
moreover, that for some time to come
money rates are going to continue

Jr.

4"

3

•r
\r

l ir a m w . i -

O ldest in the New Orleans
Field o f Safe Investments
Visioning the traditional South one immedi­
ately thinks of New Orleans. And when you
refer to the Investment South the Mortgage
& Securities Company comes to mind.
Consistently through the years we have
served two classes of investors. They who
rely upon self-judgment in selecting our offer­
ings and they who periodically seek our coun­
sel as to the type of investment that will best
suit individual requirements.
Twenty-two years' steady growth without
loss of a penny of principal or interest to any
client is a record of bond-buying confidence of
which we are iustlv proud.
Write for our current list of offerings.


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

O r le a n s

Will Represent Equitable
Trust in Philadelphia
The Equitable Trust Company of
New York announces the appointment
oi Thomas Graham as its representa­
tive in Philadelphia to succeed R. E.
Hanson. Mr. Graham is a native of
the Quaker City.
Shortly after he was graduated from
Haverford School, he entered the Traf­
fic Department of the Pennsylvania
Railroad Company. He spent six years
with this company, occupying several
important posts. He served in the
general offices, Philadelphia; in the di­
vision freight office, Harrisburg, and as
freight traffic representative of the
“Empire Line,” in Philadelphia terri­
tory.
In 1919 Mr. Graham became secre­
tary and treasurer of the Geyelin Com­
pany, shipping agents. Attracted to
the banking business by an offer from
the Guaranty Trust Company, Mr. Gra­
ham went to Wilkes-Barre in 1920 as
the Guaranty’s representative. Later
he was promoted to the Philadelphia
office of that institution. For the past
three years Mr. Graham has been con­
nected with Edward B'. Smith & Co.,
investment bankers, in Philadelphia.
Mr. Graham is well known in Phila­
delphia. He is a member of the Board
oi Managers of the Seamen’s Church
Institute, and belongs to the Racquet,
Philadelphia Cricket and White Marsh
Valley Hunt Clubs, as well as the First
City Troop of Philadelphia, organized
in 1774.
Mr. Graham, who entered the em­
ploy of the Equitable on December 1st,
will direct the Philadelphia office in
accordance with its present policies.

First National Bank 1926
Dividend Rate Is 1 6 %

Mortgage
Securities Co.
O H ew

easy, which, together with the possi­
bility of further reduction in commod­
ity prices, may find reflection in fur­
ther strengthening in the general level
of bond prices.

*

F. O. Watts, president of the First
National Bank in St. Louis, announces
that in addition to the regular month­
ly dividend of 1 per cent payable De­
cember 31st, 1926, an extra dividend
of 4 per cent was declared payable
December 16th to all stockholders of
record the same date.
This makes a total dividend paid by
the First National Bank for the year
1926 of $1,600,000.00 or a rate of 16
per cent.
Mr. Watts also announced that the
directors made a provision for pay­
ment of a Christmas bonus to em­
ployes of the bank.

25

St. Louis, January, 1Q27

Losses on Commercial Paper Compared
With Losses on Loans and Bonds
HE institution of commercial
banks, like the institution of
corporate business organizations,
rapid transportation and communica­
tion, factories, machine production and
skyscrapers, is a product of our very
recently developed age of credit. Every
well-known city in the world has its
commercial banks, some are local
banks, branches of a national banking
institution; while some in the case of
the less developed countries in Latin
America, Africa, the Indies and the
Far East, represent branches of for­
eign banks with headquarters in New
York, Toronto, or London.
Our American multiple system of in­
dependent banks is a product of our
own nineteenth century western ex­
pansion, our ever-growing commercial
and industrial prowess, the constant
extensive opportunity for individual
initiative, and the boundless energy of
a young, developing nation. Our banks
are the product of a rapid evolution­
ary process covered by one hundred
and forty-five years. But behind them
rest the historical background and the
developing practices of European com­
mercial and fiscal banking needs of
seven hundred and seventy-five years,
a period which started when the little
Republic of Venice at the head of the
Adriatic was becoming the most power­
ful political and commercial unit in
Europe.

T

If You Can
Answ er
These Questions
— and answer them correctly your
investment profits will show im­
mediate improvement.
(1) Is the trend of stock prices up—
or down?
(2) Is this a time to buy or to sell
stocks; what stocks?
(3) Are long or short term bonds
the best investment now?
The coupon is for your convenience
in securing authoritative informa­
tion. If the answers to these ques­
tions interest you clip it now. There
is no obligation.

BROOKMÏJ1E
ECONOMIC SERVICE, Inc,

B y R oy A . Foulke
Manager Bank Service Department,
National Credit Office

Banking institutions originally were
created for one of three different pur­
poses:
(1) To furnish funds to controlling
political powers, such as the forced
loan of Vitale Michiel II. of Venice in
the latter part of the twelfth century
resulting in the creation of the Bank
of Venice.
(2) To prevent the promiscuous
passing of lightweight coins when
metallic money was practically the sole
medium of exchange, resulting in the
establishment of such banks as the
Ba7ak of Amsterdam in 1609.
(3) To furnish the mechanism for
the issuance of paper money resulting
in the formation of such institutions as
the Bank of England in 1694.
Even our own national banking sys­
tem was originally created by Secre­
tary of the Treasury Chase in 1863 not
primarily to serve commerce and in­
dustry, but as a direct means of ob­
taining additional funds for carrying
on the Civil War.
The expansion in our banking facili­
ties was a very slow and gradual pro­
cess up to 1870. Until the enactment
of the National Banking Act of Con­
gress in 1863, practically all banks
were chartered under State laws and

r

We specialize in

our banking history was featured by
a wide range of State experiments
with consequent heavy bankruptcies,
casualties and monetary losses. In 1870
there were 1615 banks in operation, an
increase of but 223 during the preced­
ing decade.
By 1880 there were 3355 banks, 1890,
7999, and 1900, 10,382. Progress from
1900 to 1921 was very rapid each year,
keeping pace with our accelerating
commercial and industrial needs. On
June 30, 1921 there were 30,812 Nation­
al and State commercial banks and
Trust Companies, Savings Banks and
private banks in operation, one bank
for every 3200 men, women and chil­
dren in the country, a very remark­
able development.
The decade ending 1920 saw the be­
ginning of branch banking. With the
consequent mergers, consolidations,
and absorptions incident to the de­
velopment both of branch banking and
larger individual institutions, there
has come about another developing
stage in our banking industry, the
diminution in the number of banks. By
June 30, 1922 the aggregate number
of banks had decreased to 30,389. Every
year since then has seen a further re­
duction and on June 30, 1925, the last
available date of exact information,
there were 28,841 banks in active open
ation, a reduction of 1971 from the
peak.

High-Grade
Investment
Securities

Joint Stock
Land Bank
Stocks and Bonds

KOEPPE
LANGSTON
LOPER 6 CO.

Send for our current list

H. L. RUPPERT & CO.
Incorporated

25 W e st 45th St., N ew York
Please send
Name
Address

free Bulletin

M.B.

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


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Federal Reserve Bank of St. Louis

3 9 South LaSalle Street
Telephone 'Randolph O 98O
CH I CA G O

402 Pine Street
ST. LOUIS, MO.

Mid-Continent Banker

Protective
Equity
E UNDERW RITE
issues of desirable se­
curities and participate
in the
A

major

underwritings.

main consideration in the

selection of underlying securi­
by

this

house

is

that

these should be protected by
sufficient negotiable equity to
cover

the entire amount

principal and interest.

of

W h en

this condition has been met,
we do not hesitate to recom­
mend the securities.

A List o f Current Offerings
will be mailed upon request

.

BARTLETT & G O RD O N

.

.

ties

Banks for the five years ending June
30, 1925 are reported by the Comp­
troller of the Currency as follows:
1921
$179,885,000
1922 ...................................... 192 390,000
1923 ...................................... 160,438,000
1924 ...................................... 147,304,000
1925 ...................................... 141,134,000
Of the losses of $179,885,000 assumed
during the year ending June 30, 1921.
$76,210,000 was charged off on Loans
and Discounts and $76,179,000 on In­
vestments in Bonds and other Securi­
ties. The loss of $76,210,000 on Loans
and Discounts represents about 42.4 per
cent of the entire loss for the year and
the loss of $76,179,000 on Investments,
42.3 per cent. The charge-offs on both
of these items have fluctuated consid­
erably in the four following years, but
have continued to reflect very large
percentage losses for conservative
banking operations.
A comparison of these losses adjust­
ed to give effect to recoveries on
previously charged-off assets, with (1)
total Loans and Discounts, and (2)
total Investments held by National
Banks on fiscal date, exclusive of Unit­
ed States Government Securities and
stocks in Federal Reserve Banks, gives
a fairly accurate idea of the heavy
yearly drain upon our banking re­
sources.
Losses on
Loans and
Loans and
Discounts
Discounts
1921
$12,004,515,000$ 66,074,000
1922
11,248.214,000105,733,000
1923 ........... 11,817,671,000
81,898,000
1924
11,978,728,00078,755 000
1925
12,674,067,00068,702,000
The above losses on Loans and Dis­
counts and those mentioned in the fol­
lowing table on Investments in Bonds
and other Securities do not, however,
represent the aggregate losses for the
entire banking industry. These figures
represent only the returns from Nation­
al Banks which represent the more
conservative banking strength of the
country operating as Federal Corpora­
tions under Federal control. Both an­
nual and percentage losses of the 18,663 State Banks and Trust Companies
operating under the laws of forty-six
States with wide variations in supervi­
sion and control, would be considerably
greater.
Investments
in Bonds and
Bond
Securities
Losses
1921
$1,936,860,000$66,276,000
1922
2,207,291,00026,086,000
1923
2,303,995,00014,885,000
1924
2,588,232.00019,013,000
1925
3,119,189,00018,192,000
The outstanding maxim in our com­
mercial banking practice has always
.

however, the aggregate losses of Na­
tional Banks amounted to $141,134,000,
of which $95,552,000 was charged off on
Loans and Discounts, $25,301,000 on In­
vestments in Bonds and Securities,
$622,000 on Trust Department opera­
tions, $1,783,000 on Foreign Exchange,
and $17,876,000 Miscellaneous, leaving
net profits for the fiscal year of $223,935,000 or 9 per cent on the invested
capital. This compares with net pro­
fits of $195,706,000 or 81 per cent on
the invested capital for the preceding
fiscal period. These profits are moder­
ate and by no means abnormally high.
Losses assumed by the National

.

Banks

.

Losses of Na tional

Of the 28,841 banks in operation on
June 30, 1925, 8072 represented Na­
tional Banks, 18,663 State Banks and
Trust Companies and the remainder
Savings Banks and private banks. The
8072 National Banks represented about
eleven per cent less banking resources
than the total number of State Banks
and Trust Companies.
No figures have been made available
up to the present time by the Comp­
troller of the Currency for the opera­
tions of the National Banks during the
year ending June 30, 1926.
For the year ending June 30, 1925,

.

26

.

First National Bank Building, Chicago

.

.

IN C O R P O R A T E D

First W isconsin National Bank Building, Milwaukee

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

St. Louis, January, 1927
rightfully been concerned with the
length of time of loans extended to de­
positors. Commercial Banks, to be
maintained constantly in a thoroughly
sound condition, should extend only
short term credits to industrial and
commercial enterprises to cover the
peak of their manufacturing or dis­
tributing season and such credits, espe­
cially in the case of city institutions,
should be largely self-liquidating. It is
not among the functions of a Com­
mercial Bank to extend long term or
permanent loans; such a policy would
be admittedly unsound, unstable, haz­
ardous.
Due to the increased competition
among banks for business, a differ­
ential of increased credit lias, however,
been placed at the disposal of business
enterprises compared with conditions
two decades ago. As a result, it is
quite a common occurrence today for a
concern to borrow steadily—not from
the same bank—but from the aggre­
gate of its depositories, to borrow
steadily, year after year and rotate its
loans so that the banking industry as
a whole furnishes a very good percent­
age of the permanent—not fixed—capi­
tal of the larger business enterprises
of the country.
This fundamental change in the prac­
tical relationship between banks and
business enterprises, however, only
comes into the foreground in those un­
fortunate cases where concerns become
embarrassed from poor management
or a still further need of working capi­
tal, and losses are assumed by the con­
tributing interested banks.

27
of National Banks on direct Loans and
Discounts have been somewhat less,
measured both in dollars and percent­
ages since June 30, 1922, the contrast
between losses sustained in this man­
ner with the yearly losses assumed on
all purchases of Commercial Paper, has
been very striking.
The net losses of $105,733,000 as­
sumed by National Banks during the
fiscal year ending June 30, 1922, on
their direct Loans and Discounts com­
pare with total losses of $112,500 on
Investments in Commercial Paper dur­
ing the calendar year ending Decem­
ber 31, 1922. Losses of $105,733,000
represent .0095 of the oustanding Loans
and Discounts on the fiscal date while
losses of $112,500 on Commercial Paper

represent but .00013 of the average out­
standing amount of paper. For this
period the percentage loss on direct
Loans and Discounts was seventy-three
times as great as losses on Commercial
Paper.
The percentage of loss to National
Banks, not including State Banks or
Trust
Companies,
on
outstanding
Loans and Discounts for the twelve
months preceding June 30, 1923 was
.0069. For the year 1923, the percent­
age of loss on the average outstanding
Open Market Paper was .00023. The
comparison of these figures is more
easily visualized by the statement that
Loans and Discounts of all National
Banks were thirteen times greater
than the average amount of Commer-

Comparison of Losses

For the fiscal year ending June 30,
1921, National Banks assumed the
greatest net losses in their history on
Bonds and other Securities—the sum
of $66,276,000—and for the year end­
ing June 30, 1922, the greatest net
losses on direct Loans and Discounts
—the sum of $105,733,000.
The loss of $66,276,000 on Invest­
ments in Bonds and other Securities
represents the exceptionally large per­
centage loss when compared with the
aggregate Investments of National
Banks, exclusive of United States Gov­
ernment Securities and Holdings in
Federal Reserve Banks, of .0342. On
every $10,000 of investments, a net
loss of $342 was sustained. The loss
of $105,733,000 on Loans and Discounts
represents the large percentage loss
when compared with the aggregate
Loans and Discounts of National
Banks of .0095. That is, on every $10,000 of Loans and Discounts on June 30,
1922, a loss of $95 was assumed.
While the aggregate yearly net losses

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

OME of the values behind in­
vestment bonds are tangible,
others are intangible; some values
are more certain than others. The
soundness of any issue can be de­
termined only by gathering and
sifting all the facts.

S

Bonds good enough to receive
the National City recommenda­
tion must be good enough to with­
stand rigid tests developed through
our wide experience in many fields.

The National City Company
National City Bank Building, New York

Offices in more than 50 leading cities throughout the world
BONDS

•

SHORT

TERM

NOTES

•

ACCEPTANCES

28

Mid-Continent Banker

K n igh t, D ysart & G am b le
Investment Securities
CORPORATION
PUBLIC UTILITY
RAILROAD
MUNICIPAL

BO NDS

M E M B ERS
NEW Y O R K STOCK E X C H A N G E
ST. LOUIS STOCK E X C H A N G E

401 Olive Street
GA rfield 7790

L a w r e n c e S t e m and C o m p a n y
231 South La Salle Street • Chicago

BOARD OF DIRECTORS
W ILLIAM WRIGLEY, JR. .Chairman of

JOHN HERTZ,

Chairman o f the Board of
Y ellow Truck &, Coach Manufacturing C o.

the Board o f W illiam W r ig le y jr . Company

JOHN R . THOM PSON,

Chairman o f the
Board o f John R . Thom pson Company

ALBERT D . LASKER,

Chairman o f the
Board o f Lord & Thom as and Logan

STUYVESANT PEABODY,

President

CHARLES A. M cCULLOCH, President

President

cf

Balaban & Katz Corporation

ALFRED ETTLINGER, Vice
JOSEPH J. RICE,

of the Peabody Coal Company
of Parmelee Company

HERBERT L. STERN,
■*

President

Vice President

LAWRENCE STERN,

President

This company conducts a general securities business,
originating and participating in high-grade investment
issues and devoting special attention to first mortgage
real estate bonds.

DEPENDABLE SERVICE


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

IN VESTM EN T
SECU RITIES

cial Paper on the market, but losses
reported on Loans and Discounts of
National Banks were three hundred
and eighty-five times greater than on
all Open Market names.
The amounts and percentages of
losses on Open Market Paper for 1924
and 1925 expanded moderately while
adjusted net losses and percentages on
direct Loans and Discounts were kept
somewhat better in hand by the Na­
tional Banks. Losses on Commercial
Paper for 1924, however, amounted to
but .00105 and for 1925, 00087 of aver­
age outstanding paper, rates of losses
which are hut one-sixth of the percent­
age net losses suffered by National
Banks on their accounts with which
they were most familiar.
A most striking resume covering the
four-year period reveals the fact that
the percentage loss on direct Loans
and Discounts of National Banks is
twenty-nine times as great as the per­
centage loss on Open Market Paper.
Reasons For L ow Paper

What

G. H. WALKER & CO.
B R O A D W A Y A N D LO CUST
S T . L O U IS , M O .

Losses

There are four definite fundamental
reasons why losses on Commercial
Paper have been negligible in compari­
son with the losses on direct Loans
and Discounts. These are:
(1) In purchasing Open Market
Paper, a loaning official of a bank is
not subject to the influence encountered
in direct contact with a depositor. His
judgment is not affected by balances,
personal friendship, the necessity of
renewing a loan, or other mitigating
factors.
(2) The purchasing bank has a selec­
tion of names from which it may choose
those in any industry in any section of
the country.
(3) The purchasing bank may always
confirm, within the option period,
whether the paper has already with­
stood the criticism of the best credit
analysis in the country, while the as­
surance from the broker, negotiating
the sale, of the soundness of the note
is very important in many instances.
(4) As Commercial Paper offerings
are subject to intensive credit study
and broad exchange of opinion and
comment, more concise and accurate
outside assistance is available for
checking Open Market names than any
other form of offering.
He

Was

T ry in g

For.

Hospital Nurse: “ You wish to see
the young man injured in the motor
accident. You are the lady he was
with?”
Gwendoline:
“ Yes, I thought it
would he only fair to give him the kiss
he was trying for.”

St. Louis, January, 19 2 J

29

Interest— Your Principal Expense
A Proposal to Deduct Reserve Requirements from the
Deposit Items Before Calculating Interest P aym ents
HE principal expense item in the
banker’s budget today is interest
on deposits. This item has in­
creased by leaps and bounds during the
past few decades until today it con­
sumes over one-third of every dollar
of bank income. It has become an ex­
pense item of such importance that it
is not only making serious inroads upon
the return on invested capital in the
banking business, but is also becoming
a factor which may lead to the under­
mining in some sections of the country
of the soundness of our banking struc­
tures. Many bankers in their efforts
to meet competitive conditions and to
maintain established rates on deposits
are being practically forced into high
yield paper where the credit risk is
unduly burdensome. As a consequence,
neither the interests of the depositor
nor of the banker are being intelligent­
ly served by some existing practices
with respect to the payment of interest
on deposits. Established rates and
methods of calculating interest pay­
ments are largely an inheritance from
the past when conditions were quite
different from those that exist today.
American banking and the American
money market have undergone a pro­
found change in the past twenty years
and especially since the establishment
of the Federal Reserve System. These
changes call for a thorough revision,
among other things, of existing bank
practice with respect to the payment
of interest on deposits. New problems
have come upon the banking fraternity
so gradually that many bankers have
failed to appreciate their true signifi­
cance and the necessity for taking con­
certed action to meet them before seri­
ous damage has been done.

T

N e w Conditions Affect Rates

Post-war developments in the field of
finance, together with the operations of
our improved banking system, have ex­
erted important influences upon both
bank policy and loaning rates.
The
bankers, who should be keen to recog­
nize and appreciate those fundamental
changes, have up to the present time
failed to take any definite action to
meet new conditions. The situation
has now reached a point where definite
concerted action must be taken at the
earliest possible moment to effectually
protect the interests of all concerned
—namely, the depositing public and our
institutions of banking. As we see the
problem there are three phases that

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

B y R. S. Hawes
Vice-President, First National Bank
in St. Louis

call for consideration. First, a careful
analysis should be made of the facts
regarding the generally established pol­
icy of payment of interest on deposits;
second, the effects of the existing situ­
ation should be studied in all of its
ramifications, and third, consideration

should be given to some of the means
by which the problem might be solved
so as to satisfactorily protect the vital
interest of all concerned.
With respect to the first aspect of
the problem, namely, the facts regard­
ing the situation, there is at present
only a limited amount of information
available. It is something of an anom­
aly that the bankers who are constant­
ly calling upon their customers to make

B onds fo r B a n k s — W h y ?

;
■
■
■

:
;
■
*
l
:

No bank should put all of its available
funds into loans of one kind, or loans in
one locality. With a diversified list of
investments, a bank is not subjected to
difficulties when depression comes in any
one line of business.

■

;
*
■
;
;
■
:
:
;
|

Caldwell & Company offer with their
recommendation a selected list of highgrade municipal, corporation, and first
mortgage bonds for investment of bank
funds. Municipal bonds may be had of
practically any state in the South, corporation bonds of the South’s leading industries, and first mortgage bonds of income-producing properties in the largest
Southern cities.

■
■

■
■

Ask for Current Offerings

■
■
■

j Caldwell & Company

i

Southern Securities
117 North Fourth Street

St. Louis, Missouri

■

Offices in Principal Cities

l
\

Because of the constant industrial development, the
growth of towns and cities, and the inflowing
wealth of Southern states, the security behind
Southern bonds grows year after year.

B a n k e r s S a fe ty E n v e lo p e s

HECO ENVELOPE COMPANY
C h ic a g o , Illin o is

ENVELOPES-F o r E v e r y P u r p o s e
HECO — C H IC A G O

30

Mid-Continent Banker

careful analyses of their operating
costs and expenditures and to establish
budgetary control, so as to eliminate
inefficient and unsound methods, should
be among the last important group to
apply the same principles that they ad­
vocate for their customers in their own
line of business. In recent years the
Federal Reserve System has been mak­
ing studies of bank income and expen­
ditures which should prove very help­
ful to the banking fraternity. These
studies have uncovered some astound­
ing facts regarding the banking busi­
ness, especially with respect to the
trend of costs in banking. They show,
among other things, that for the fiscal
year, ending June 30, 1921, the gross

income of all member banks was $1,Expenses Are Increasing
829.671.000, and that for the calendar
While the Federal Reserve figures
year, 1925, gross income was $1,918,- are aggregates for all member banks,
094.000,
an increase of only $88,423,000 they, nevertheless, present a picture
during a four-year period of expanding that is substantially true of what has
business. On the other hand, interest
been actually taking place, and every
paid on deposits by the member banks
banker, if he studies his own situation
rose from $472,003,000 to $643,158,000,
will find it substantially in accord. Un­
an increase of $171,155,000, or almost fortunately, Federal Reserve figures are
double the increase in gross income.
obtainable for only recent years. While
On a percentage basis, interest being
it is true that 1921 and the period since
paid on deposits rose from 25.8 per
was unusual in many respects, the same
cent to 33.5 per cent of gross income.
principle holds true for the period since
Every banker has long known that in­ 1919, the earliest for which information
terest on deposits was rising out of
of this type is available. Summing up
proportion to income. These figures the essential factors regarding the
show definitely how far out of propor­ growth of interest payments in con­
tion the rise has gone.
trast with other bank items, the following are outstanding:
Interest on deposits has in­
creased since 1919.....................65.2%
Gross deposits have in­
creased since 1919.....................40.5%
Total resources have in­
creased since 1919.....................41.3%
All expenses except interest
on deposits have increased
since 1919 ................................. 48.5%
The result of this situation, as would
be expected, fell heavily upon the re­
turn earned on the invested capital in
the banking business. In 1919, earn­
Because of their excellent records dating back in some
ings were equivalent to 10.6 per cent
cases for three-quarters of a century, Foreign Mortgage
on capital and surplus, whereas last
Bank Bonds have been considered in Europe one of the
year they amounted to but 8.92 per
prime securities for trust and savings banks, ranking just
cent and for the period, 1922 to 1925,
under government obligations and ahead of the secur­
they averaged less than 8 per cent. In
other words, the average rate of return
ities of states and municipalities.
on invested capital shows a drop of
over 20 per cent during this period. It
Prior to 1913 more than five billion dollars of this class
should be recalled in this connection
of securities were held abroad. Foreign Mortgage Bank
that this occurred during a period that
Bonds are now coming into the American market and
was generally prosperous in practically
bankers and trust officers are urged to familiarize them­
all other business and commercial
lines. Furthermore, it must not be
selves with this type of investment.
forgotten that in dealing with averages
covering a great number of ¡hanks, al­
We have prepared an interesting booklet on “ The D e­
lowances must be made. In recent
velopment of the Mortgage Bank,” which we should be
years, some of the larger banks, whose
pleased to send you with our compliments.
ability to affect the averages' would be
considerable, have organized Invest­
ment Companies for the purpose of en­
gaging in underwriting industrial, pub­
lic utility, railroad, and real estate
ine.
mortgage loans. This has proven a
A SPECIALIZED SERVICE IN FOREIGN SECURITIES
profitable field in many cases and has
FOR BANKS AND DEALERS
done much to augment earnings for
such institutions, so that the showing
h i West Monroe Street
for many institutions would be con­
siderably less favorable than the aver­
Chicago
ages indicate.

Why Foreign Mortgage
Bank Bonds?

BAKER, KELLOGG & CO.,

LONDON^

TELEPHONE RANDOLPH 0 4 1 5

ENVELOPES—f o r E v e r y P u r p o s e
HECO — C H IC A G O

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

buenos

Afi?ES

Registered Mail Envelopes
HECO ENVELOPE COMPANY
C h ica g o , Illin o is

Paper Rate Shows Decrease.

The mounting cost of deposits as­
sumes an even more serious aspect
when we take into consideration the
decline in interest rates in recent
years. For example, if the average
commercial paper rate for 1919 is tak­
en as index 100, we find the average
rate for 1925 to be index 74.3, a de-

St. Louis, January, i ç 2 j
dine of almost 25 per cent in the
average rate obtained on this class of
paper. Similarly, the bond yield rate
shows a drop to index 89.9, a decline
of over 10 per cent in the average rate
secured on this type of investment.
On the other hand, the average rate
of interest paid on gross deposits by
all member banks increased from an
average of 1.84 per cent in 1919 to
an average of 2 per cent for last
year, which is equivalent to an increase
of over 8 per cent in the amount of
interest being paid on gross deposits.
The significance of this rise in the
rate paid on deposits during a period
of declining money rates cannot be
over-emphasized. Thus, from whatever
angle the problem is approached, the
facts show an unfavorable trend to
the course of interest paid on deposits,
as contrasted with other items of ex­
pense or income. In view of these facts
the outlook is not encouraging unless
the farseeing bankers of the country
get together and make an effort to
correct the situation, so as to bring
into closer accord the cost of money
to the rate which the banker can ob­
tain for it in the market.
The

B a n k e r’s Difficulty.

With respect to the second aspect—namely, the effects of this situation,
the facts speak for themselves. De­
posits are to the banker what raw
materials are to the manufacturer.
They are the banker’s principal stock
in trade. The banker, no more than
the business man, can pay an ever and
ever higher price for his raw material,
pay higher wages, meet increased costs
in every field, and steadily sell the fin­
ished product, bank credit, at a lower
price. Yet this is what the banker
has been attempting to do. That he
has met with difficulty is not surpris­
ing. The effects of this situation are
the same in the field of banking as
in other lines—namely, compelling the
banker to take chances and to indulge
in practices that sound business judg­
ment does not warrant, with the in­
evitable result that bank failures have
become more numerous. With lower
rates and increased costs the banker
cannot afford to assume the same
credit risk that he could under other
conditions. However, in his effort to
meet competitive conditions he is often
forced to accept risks out of all pro­
portion to either the needs of business
or the interests of his depositors. The
existence of such circumstances ob­
viously produces an unwholesome sit­
uation.
Ho w to Solve the

Problem.

With respect to the third aspect—
namely, some of the means by which
the problem might be solved, the fol­
lowing proposal appears to deserve

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

31

consideration. Banking practice with
respect to the method of paying inter­
est on deposits is rather illogical in so
far as it ignores reserve requirements.
Today, under the working of our Fed­
eral Reserve law, a definite proportion
of bank reserves are non-earning
assets. Years ago when interest was
being paid on only a relatively small
proportion of all demand deposits, the
burden of the loss entailed on non­
earning assets could be absorbed more
easily than today when the practice
has become very general.
Further­
more, before the establishment of the
Federal Reserve System all reserves
were non-earning assets to the same

extent that they are today. It would
appear that a logical step for the bank­
ers to take would be to apply the same
rule to the demand deposits of their
customers that the banking laws of
the country require of them—namely,
to deduct from net deposits before in­
terest is paid the reserve balance that
they must carry with the Federal Re­
serve. While it is true that the same
ultimate result could be accomplished
by a general lowering of interest rates
paid on deposits, such a change would
still leave the banker in the position,
technically at least, of paying interest
on funds not actually available for in­
vestment.

v4n additional

to y^ o

on y o u r reserves
H E banker who maintains a liberal margin o f cash

T

and quick reserves needs to earn every dollar o f

income he can safely obtain on his secondary reserve.
For this purpose “ short maturities” have too low an
earning power, and local commitments may not be suf­
ficiently liquid. Marketable long-term bonds are often
best suited for that part o f a bank’s assets which is least
likely to be needed.
H ow large that reserve should be and how invested,
depends o f course upon the nature and source o f depos­
its and the maturity o f customer loans o f the bank in
question. I f deposits are unstable and loans are o f the de­
ferred type, it might be advisable to put the secondary
reserve into short-term investments, even at some sac­
rifice in income.
But in most cases, there is no reason why that extra
income should be sacrificed. By a careful selection o f
bonds, readily marketable and properly adjusted to the
bank’ s liquid needs, a bond investment structure can
be built up o f substantial earning power.
Hundreds o f banks find our experience in this con­
nection o f marked assistance-, many rely upon us for
building and rebuilding their entire bond investment
reserve. T h e service is thorough and complete. Perhaps
your bank would find it equally useful.

H A LS E Y , S T U A R T & CO.
IN CO R PO R A T E D

C H IC A G O
NEW Y O R K
ZOI South L aSalle St. 1 4 W all St.
S T . L O U IS
North 4th St.

J19

P H IL A D E L P H I A
I l l South 15th St.

BO ST O N
85 Devonshire St.

D E T R O IT
601 Griswold St.

M IL W A U K E E
East W aterSt.

4»J

CLEVELAND
9 15 Euclid Ave.

M IN N E A P O L IS
6 10 Second A v e ., S.

32

Mid-Continent Banker
Deposits

Cost Too

Much.

A more logical method, before at­
tempting to scale down the rate of in­
terest being paid, would be to apply to
the deposit item the same requirements
that the laws of the country place upon
the banks. This should not be as dif­
ficult a proposition as would appear
at first thought. Those banks that
have an analysis department in which
commercial accounts are studied to
determine whether they are profitable
or not already utilize this principle
and have been educating their custom­
ers in this respect. In such analysis,
allowance for reserve requirements is
made and when the customer’s account
is not self-supporting all the facts are
laid before him and he is shown the
various costs involved in maintaining
his account, among which the reserve

requirements are included. He is then
usually given the choice of either in­
creasing his balance or making pay­
ment in some other way for the serv­
ice rendered. Where these methods
have been used, business men have
been quick to appreciate the require­
ments of the banker and little diffi­
culty should be experienced in widen­
ing the application of this principle.
While there is no way of definitely de­
termining the exact amount of saving
that might be made by the bankers
paying interest only on that portion of
deposits that is available for invest­
ment, it is quite apparent from the data
now at hand that the sum would be
very substantial and, on the average,
would probably approximate in the
neighborhood of 10 per cent of the total
amount now being paid. Such a policy

G eneral M otors
A cceptance C o rpo ratio n
Executive Offices:

250 West 57th Street, New York City
fH E obligations of this institution are select­
ed as appropriate and sound mediums for
short term investment by a large banking clientele.
They may be obtained in convenient denomina­
tions and suitable maturities.

7

D IR E C T O R S
Alfred H. Swayne,. .Chairman — Vice President, General
Motors Corporation
Curtis C. Cooper. . . President
Albert L. Deane. . . Vice President
Pierre S. duPont. . . Chairman, General Motors Corporation
and E. I. duPont de Nemours & Co.
Lammot duPont. . .Finance Committee, General Motors
Corporation.
O. H. P. LaFarge. .General Motors Corporation
Seward Prosser. . . .Chairman, Bankers Trust Company
New York
John J . Raskob. . . .C h a irm a n , F in a n c e Com m ittee,
General Motors Corporation
Alfred P. Sloan, Jr . President, General Motors Corporation
Jo h n J. Schumann, J r . Vice President
Donald M. Spaidal. Vice President


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

would apparently save the member
banks of the Federal Reserve System
approximately $50,000,000 annually, a
sum which would give considerable re­
lief in more ways than one, not only
in improving earnings but in eliminat­
ing the necessity on the part of bank­
ers to assume undue credit risks and
thus jeopardize the vital interests of
depositors.
This proposal of deducting from the
deposit item the reserve requirements
before calculating the interest payment
is admittedly not the only means by
which this important problem can be
solved. It is offered primarily as a
concrete constructive suggestion for
meeting a problem that calls for def­
inite action in the near future. Much
will have been accomplished toward
the final solution of this vexing prob­
lem if the bankers of the country can
be aroused with respect to its signifi­
cance. If they will give it the thought,
study, and attention that it deserves
we can look forward with confidence
to its ultimate satisfactory solution in
the near future.

Fifteen Boys Promote
Good Will
(Continued from page 9)
ness men whom they could never reach
alone.
“Any town that can support one
bank, can furnish fifteen boys, and
any town that can support two banks
can furnish thirty boys, three banks,
forty-five boys, and so on. I would not
recommend that high school boys
should be one of the qualifications for
membership, as in all towns some
might not have a high school, and
good boys should not be barred for
that reason alone; but they should be
school boys, however, as the ages
would indicate, fourteen to eighteen
years. All those details might be
worked out to suit the bank forming
the organization, but I think the mem­
bership should be fifteen. That num­
ber will get recognition where a
smaller number might not.”
One of the features of the council
that arouses a great deal of interest
and enthusiasm among the boys is a
trip which Mr. Williams gives each
year to members of the council.
The first trip was to Little Rock for
a day of sight-seeing. In Little Rock
they visited the Federal Reserve Bank,
of which Mr. Williams is a director,
and the boys saw more money than
they had ever dreamed of seeing.
Then they were conducted through
the plant of the Arkansas Gazette, by
Fred W. Allsopp, business manager.
At noon they were guests of the
Bankers Trust Company at a luncheon
at the Hotel LaFayette.
Robert E.

St. Louis, January, ip 27
Wait, secretary of the Arkansas Bank­
ers Association, addressed them, as did
R. C. Irvine and I. J. Steed of the
Bankers Trust official family.
The last visit was to the Gus Blass
Company’s store, where Julian Blass
devoted two hours showing them the
huge department store and explaining
the principles by which it is operated.
They returned to Hot Springs in auto­
mobiles about 4 o’clock in the after­
noon.
This year Mr. Williams took the
boys on an automobile trip to New
Orleans, where they visited the banks
and business men of the city and saw
the many interesting historical sights.
The boys had a writeup in the New
Orleans Times-Picayune. They met
the editor of the paper and had their
pictures taken for the paper. Natural­
ly, they had a wonderful and instruc­
tive trip, and they returned home bet­
ter citizens and ardent boosters for
the Community Bank & Trust Com­
pany.
Conclusive evidence that these boys
are a valuable asset to the bank is
shown by the fact that one of the
boys recently came to Mr. Williams
and said that he thought it would be
a good idea for him to write a per­
sonal letter to some of his friends ask­
ing them to do business at the bann.
Mr. Williams consented.
Here is a copy of one of the letters
he wrote:
Dear
E d w a rd :
The
first
fifteen
months
in business this bank has
opened about two thousand accounts.
Our deposits are gradually increasing,
and we are making new friends every
day.
It is a pleasure to me to see my
friends doing business w ith this bank,
and I would be more tha n pleased to
have you open an account w ith us— it
makes no difference w h e th e r large or
small, we appreciate it just the same.
Of course my increase in salary and
promotions depend solely on the new
customers t h a t do business on account
of my being here.
I wish you would
consider this seriously, Edward, and I
hope th a t you w ill ren der a decision
in our favor.
Looking fo rw ard to the tim e when
we may have the pleasure of serving
you, I am
Y o u r friend,
C. R. G R A H A M .

The bank has made many friends
and secured many accounts as a result
of the council. It has made young
business men out of school boys, and
the boys have made good for the bank.
They have made good in their own ef­
forts and they have attracted favor­
able attention and publicity to the

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

33

bank because their mothers, fathers,
brothers, sisters, uncles, aunts, cousins
and friends have been interested in
their progress.

Municipal Financing Shows
Decline in November
State and municipal bond flotations,
according to The Daily Bond Buyer,
of New York, were smaller in Novem­
ber than in any other month this year,
aggregating only $60,151,416, against
$105,789,241 in October, and $'71,522,706 in November of last year.
The total for 11 months of 1926
shows that municipal financing has fal­
len behind both 1925 and 1924. In each
of those years final total of new issues
exceeded $1,400,000,000.
This year’s

figure for the full 12 months will prob­
ably be nearer $1,300,000,000.
The following table compiled by The
Daily Bond Buyer of New York, shows
sales of State and municipal bonds in
November and the eleven months end­
ed November 30th, for ten years:
11 mos. ending
November November 30
1926 ...........$ 60,151,416 $1,205,777,089
1925 ........... 71,522,706
1,238,429,540
1924 ........... 120,243,926
1,373,088,678
1923
132,167,398
1,037,820,494
1922
93,600,366
1,226,056,132
1921 ........... 121,487,608
1,069,623,024
1920 ........... 64,612,511
692,107,121
1919
45,833,309
680,609,157
1918
19,659,392
236,934,567
1917
17,285,168
406,883,808

S h o rt T e r m P a p e r
fo r

Bank Investment

Affiliated with T he Fletcher A merican N ational Bank of I ndianapolis
INDIANAPOLIS

LOUISVILLE

DETROIT

W e underwrite and distribute Public
Utility, Industrial and Municipal Bonds,

Sp ecia l se rv ice to B an ks in bonds
f o r investm ent o r re-sale.

Full details on request.

A.C.ALLYN*NDCOMPANY
Established 1912

Planters Building—ST. LOUIS—Phone GArfield 2100
CH ICAG O
N EW YORK
BOSTON
PHILAD ELPH IA
M IL W A U K E E
M IN N EAPO L IS
SAN FRANCISCO

34

Mid-Continent Banker

A P A R T IA L L IST OF C U R R E N T O FFER IN G S
G u a r a n t y C o m p a n y of N e w
Lee, H ig g in s o n & Co.

R ed m o nd <6. Co.

York.

Offering- $6,848,500 The New York, Chi­
cago and St. Louis Railroad CompanyCumulative Preferred Stock, 6% Series
A. Dividends exempt from the present
normal
Federal Income
Tax.
Price
$103.50 per share, to yield about 5.80%.
Lehman

B ro t h e rs .

Offering 200,000 shares Patino Mines &
Enterprises Consolidated Capital Stock.
Price $25 per share.
A. B. Le ac h & Co., Inc.
H al s e y , S t u a r t & Co.
P o r t e r F o x & Co., Inc.

Offering $4,000,000 Central W est Public
Service Company First Lien Collateral
30-Year 5% %
Gold Bonds Series A.
Dated November 1, 1926. Price 99 and
accrued interest, to yield about 5.55%.
B aker, Fentress & C om pany
C o n t i n e n t a l <8. C o m m e r c ia l C o m p a n y
H a r r i s T r u s t <£, Sa v in g s B a n k
First National Company

Offering $6,500,000 Dierks Lumber and
Coal Company First Mortgage 6% Sink­
ing Fund Gold Bonds.
Price 100 and
interest, to yield 6%.

W i l l i a m R. C o m p t o n Co.
E. H . Rollins & Sons

Offering $6,500,000 New York Trap Rock
Corporation First Mortgage 6% Sink­
ing Fund Gold Bonds (closed mortgage).
Dated December 1, 1926. Due December
1, 1946. Price 98% and interest, yield­
ing over 6.125%.
H a l s e y , S t u a r t & Co.
E. H . Ro llins & Sons
H a l l g a r t e n & Co.
W . A. H a r r i m a n & Co., Inc.
A. B. Le ac h & Co., Inc.
W i l l i a m R. C o m p t o n Oo.

Offering $3,250,000 The Long-Bell Lum ­
ber Convertible Five-Year 6% Collateral
Gold Notes.
Due December 1, 1931.
Price 9S and interest, yielding about
6.50%.
Oti s <&- Co.
H a l s e y , S t u a r t & Co.
L e h m a n B ro t h e rs

Offering $10,000,000 Detroit City Gas
Company First Mortgage Gold Bonds,
Series “ B ” 5%. Dated October 1, 1925.
Due October 1, 1950. Price 100 and ac­
crued interest to yield 5%.
H . M. B yl le s by and Co.
F e d e r a l Se c u r it ie s C o r p o r a t io n
J a n n e y & Co.
H a m b l e t o n & Co., Inc.

Offering $10,000,000 Standard Gas and
Electric Company 6% Gold Debentures.
Dated December 1, 1926. Due December
1, 1966. Price 99 and interest, to yield
over 6.06%.

G. L. O h r s t r o m & Co.
L i b e r t y C e n t r a l T r u s t Oo.

Offering $7,000,000 New York W ater
Service Corporation First Mortgage 5%
Gold Bonds, Series “A ” . Dated Novem­
ber 1, 1926.
Due November 1, 1951.
Price 94% and Interest, to yield aboui.
5.40%.
W i l l i a m R. C o m p t o n Co.
E ld re d g e & Co.
J a m e s H . C a u s e y & Co.,

Inc.

Offering $1,350,000 Farmers’ Irrigation
District, Nebraska, 6% Bonds.
Dated
January 1, 1926.
Optional January 1,
1936. Due January 1, 1956 to 1971, in­
clusive.
Price 101.75 and interest, to
yield 5:75% to optional date and 6%
thereafter.

Geo. H . B u r r & Co.
T a u s s ig , D a y , F a i r b a n k & Co.,
L o re nz o E. A n d e r s o n & Co.

Inc.

Offering $500,000 Magnolia Compress and
Warehouse Co. (Houston, Texas) First
Mortgage Sinking Fund Gold Bonds.
Dated December 1, 1926.
Due Decem­
ber 1, 1936. Price 100 and interest, to
yield 6.50%.
P r in c e & W h i t l e y
E d w a r d B. S m i t h & Co.
Mis sissippi V a l l e y T r u s t Co.
C o n t i n e n t a l & C o m m e r c ia l C o m p a n y
Sp en ce r T r a s k & Co.
W a t l i n g , L e r ch e n & Co.

Year 6% Sinking Fund Gold Bonds
(Closed Mortgage).
Dated December 1,
1926.
Price 100 and interest, yielding

6%.

P. W . C h a p m a n & Co., Inc.

Offering $1,350,000 The Citizens W ater
Company of Washington,
Pa., First
Mortgage 5.50% Gold Bonds, Series “ A .”
Dated July 1, 1926.
Due July 1, 1951.
Price 99.50 and interest, to yield over
5.50%.
The

Hanchett

Bond C o m p a n y

Offering $50,000 City of McGehee, A r­
kansas,
Sewer District No.
1 5% %
Bonds.
Dated July 1, 1925. Price par
and interest, yielding 5% % .
St ein Bros. & Boyce
K a u f f m a n , S m i t h & Co., Inc.
Lo ve, V a n R i p e r & B r y a n , Inc.

Offering $6,000,000 Mortgage
Security
Corporation of America Guaranteed First
Lien 6% Certificates.
Dated December
1, 1926.
Price 100 and interest, to
yield 6%.
H arris Trus t &
Halsey, S tu a r t
M a r s h a l l Fi el d,
Spencer T r a s k

S a v in g s B a n k
& Co.
Glore, W a r d &
& Co.

Co.

Offering $7,500,000 Illinois Power and
Light Corporation First and RefundingMortgage Gold Bonds Series C, 5%
Thirty Years.
Due December 1, 1956.
Price 97 and interest, yielding about
5.20%.
Hayden, Van A tter &
W h i t a k e r & Co.

Co.

Offering- $2,000,000 The Celotex Company
Ten-Year Convertible Sinking Fund Gold
Debentures.
Dated November 1, 1926.
Price 100 and accrued interest, to yield

6%.

Bonbright & Company
Old C olo ny C o r p o r a t io n
T u c k e r , A n t h o n y & Oo.
John N ic k e r s o n & Co.

Offering $2,000,000 Electric Refrigeration
Building Corporation First Mortgage 10-

Offering $18,000,000 Arkansas Power &
Light Company First and Refunding
Mortgage Gold Bonds 5% Series Due

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Your Investment
Needs

BANK. ~
JT R L C T U R JL S
• B U I L T ' BY*
S P E C IA L IS T S

T h is n a tio n a l o rg a n iz a tio n is
th o ro u g h ly equipped to give
service fo r a ll of th e in v e s tm e n t
needs of y o u r b a n k .

W h o • c o tv fitv e t h e ir
e f f o r t s to t h is o h e
lin e s h o u ld b e . t h e
m o s t s a lt e d to th e

C o m m e rc ia l paper and s h o rt
te r m b o n d s fo rth e b a n k ’sfu n d s.

N e e d s o f t h e banker
a .tv d t o t h e c o m f o r t *
o f h is c u s t o m e r s .

In v e s tm e n t S e c u ritie s fo r y o u r
cu s to m e rs : M u n ic ip a l, In d u s ­
t r ia l and P u b lic U t ilit y Bonds.

GEORGE H. BURR & CO.

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Federal Reserve Bank of St. Louis

ATLANTA
PHILADELPHIA
PITTSBURGH

O U ih - - S E R V I C E .

L .D . R AC Y' C O M P A N Y

ST. LOUIS
NEW YORK
BOSTON
HARTFORD
CHICAGO

E IL T -U S T L L L Y O U A B O U T

S Y N D IC A T E . T R U S T
SAN FRANCISCO
LOS ANGELES
SEATTLE
CLEVELAND

b u il d in g

-

S T . L O U IS , M O .

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35

St. Louis, January, 1Q27
October 1, 1956. Price 95% and interest,
yielding over 5.25%.
A . C. A l l y n & C o m p a n y

Offering $700,000
Keystone
Telephone
Company of Philadelphia One-Year 5%
Gold Notes.
Dated November 1, 1926.
Price 100 and interest, to yield 5%.

A.

C.

A llyn

&. C o m p a n y

Offering $1,250,000 Central Service Com­
pany (Des Moines, Iowa) First Mortgage
Fifteen Year Sinking Fund 6% % Gold
Bonds Series “A .”
Dated October 1,
1926. Price 100 and accrued interest, to
yield 6y2%.
J. P. M o r g a n & Co.
K u h n . Lo eb & Co.
The N ational C ity Company
First National Bank, N ew York
Y o k o h a m a Specie B a n k . L t d .

N ew Y ork

Offering $19,740,000 City of Yokohama
External Loan of 1926 Sinking Fund 6%
Gold Bonds, unconditionally guaranteed
by the Imperial Japanese Government.
Dated December 1, 1926. Due December
1, 1941. Price 93 and accrued interest,
to yield over 6.50% to maturity.

A.

C.

Allyn

&

Company

Offering $2,000,000 Keystone Telephone
Company of Philadelphia First Lien and
Refunding Mortgage Gold Bonds Series
“ B ” 6%.
Dated October 1, 1926. Due
October 1. 1951. Price 98% and accrued
interest, to yield over 6.10%.

M a r s h a l l F ie ld , Glore, W a r d
B r o w n B r o t h e r s & Co.
E d w a r d B. S m i t h & Co.
B r o k a w and C o m p a n y
G. H . W a l k e r & Co.

Industrial Acceptance
»oration

&

Co.

Capital & Surplus Over $ 7, 000,000
?

COLLATERAL TRUST GOLD NOTES
(T he N ational C ity Bank o f N . Y ., Trustee)

The Notes o f this Corporation are regarded by a nation-wide
banking clientele as appropriate and attractive investment
fo r short term funds. They may be obtained under customary
option in varying maturities between 2 and 12 months. Com­
plete information available on request to any o f our offices.
Commercial Paper Offices

Offering 100,000 shares Associated Gas
and Electric Company $6.50 Dividend
Series Preferred Stock.
Cumulative— no
par value. Price 95y2 and accrued divi­
dend, to yield over 6.80%.

H a l s e y , S t u a r t & Co.
A. B. Le ac h & C'o., Inc.
H i l l , J o in e r & Co., Inc.

Offering
$10,000,000
Interstate
Public
Service Company First Mortgage and
Refunding 5% Gold Bonds, Series D.
Due December 1, 1956. Price 96 and in­
terest, yielding over 5.25%.

CHICAGO

NEW YORK

105 So. La Salle Street

SAN FRANCISCO

100 East 42nd Street

225 Bush Street

Fina ncing exclu sively dealers o f

THE S T U D E B A K E R C O R P O R A T I O N
OF AM ERICA

T h e N ational C ity Com pany
G u a r a n t y C o m p a n y of N e w Y o r k

Offering $35,000,000 Chile Copper Com­
pany Twenty-Year Five Per Cent Gold
Debentures. ~ Dated January 1, 1927. To
Mature January 1, 1947. Price 96% and
interest, yielding over 5.25%.
Dillon R ead •& Co.
H a l l g a r t e n & Co.
H a l s e y , S t u a r t & Co.
In te rn a tio n a l Acceptance
M en de lss oh n & Co.

Bank,

1

Inc.

mi UW il

Offering $20,000,000 Berlin City Electric
Company Twenty-five Year 6% % Sink­
ing Fund Debentures. Dated December
1, 1926. Price 98 and interest. To yield
over 6.65%.

T h e U n io n T r u s t C o m p a n y , C le ve la n d
T i ll o t s o n & W o l c o t t C o m p a n y
First N ational Com pany

Offering
Cleve’and
Terminal
Tower
Building Site Land Trust Certificates
representing
5750
Equal
Undivided
Shares of Equitable Ownership in the
Terminal Tower Building Site, being a
portion of the premises above the new
Cleveland Union Terminal Station to be
occupied by the Terminal Tower Build­
ing.
Price $1010 for each l/5750th in­
terest, plus accrued rental, to yield ap­
proximately 5.45%.

W a l d h e i m P l a t t & Co.
T h e M i n n e s o t a Lo an &
S t e r n B r o t h e r s & Co.

Trust

Company

Offering
$1,250,000
Omaha
Orpheum
Company First (Closed) Mortgage Fee
and Leasehold 6% Serial Gold Bonds,
guaranteed as to principal and interest
by Orpheum Circuit, Inc. Price to yield
5.50% to 6% according to maturity.

H i l l , J o in e r & C'o., Inc.
H a l s e y , S t u a r t <5. Co.
Pa in e , W e b b e r & Co.

Offering $1,000,000 Wisconsin Power and
Light Company First Lien and Refund­
ing Mortgage 5% Gold Bonds Series “ E .”
Due May 1, 1956. Price 96% and inter­
est, yielding over 5.20%.

Ge or ge

H.

Burr &

Morgan

& Co.

Offering $120,000,000 Standard Oil Com­
pany,
Incorporated
in
New
Jersey,
Twenty-Year 5% Gold Debentures. Dated
December 15, 1926. Price 100% and ac­
crued interest.


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

MIDLAND

BANK

LIMITED
HEAD OFFICE: 5 THREADNEEDLE STREET, LONDON, E.C. 2
Affiliated Banks: Belfast Banking Co. Ltd., Northern Ireland; The
Clydesdale Bank Ltd., and North of Scotland Bank Ltd., Scotland.

Co.

Offering $600,000 The Kinnear Stores
Company 8%
Cumulative Convertible
Preferred Stock Series “ A ,”
Unit:
1
share 8% Preferred Stock and 1 share
Common Stock.
Price per unit: $120
and
accrued
dividend
on
preferred
stock.

J. P.

The Midland Bank offers exceptional facilities for the transaction
of banking business of every description.
Together with its
affiliations it operates 2,250 branches in Great Britain and
Northern Ireland, and has agents and correspondents in all parts
of the world. The Bank has offices in the Atlantic Liners
Aquitania, Berengaria and Mauretania, and a foreign branch office
at 196 Piccadilly, London, specially equipped for the use and
convenience of visitors in London.

50% more color in Reed’s
Mass-magazine Plan for
1927; printed in full-color
gravure.

Three entirely new fea'
tures in Reed’s Massmagazine Plan for 1927

See it fo r yourself.

See them fo r yourself.

36

Mid-Continent Banker

Think Cautiously and A ct
Decisively
B y M ilton O. Johnson

Manager of Analytical Department, First Illinois Company
HE business situation, whether it
be that of an individual, a com­
pany, an industry or that compos­
ite of activities which we call general
business and financial conditions, must
always be examined for what it may
develop into as well as for what it is.
Before anyone can make an estimate
as to how long a period of prosperity
or depression will last, it must first be
ascertained what factors are likely to
bring about a change.
The question about the unevenly dis­
tributed present period of business

T

prosperity now isn’t how soon it is go­
ing to stop, but what’s going to stop
it—and how abrupt will the stop be.
Unbalanced production is the gen­
erally accepted explanation of business
depressions
and
the
fundamental
causes of an unbalanced situation are
in operation months, and even years,
before the depression or recession oc­
curs.
The first question about the extent
of any period of business prosperity is
what factors are likely to throw the
co-operative, complex and price-regu­

A Specialized Service
for Banks and Bankers, which is the result of
more than sixty years of experience, is offered by

T h e First National
B a n k o f C h ic a g o
and the First Trust
and Savings Bank
and provides complete facilities for active

and

inactive accounts, collections, B /L ’s, investments,
letters of credit and foreign exchange transactions
FR A N K O. W E T M O R E
C h airm an

M E LVIN A. T R A Y L O R
President

Combined Resources Exceed $ 4 5 0 , 0 0 0 ,0 0 0

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Federal Reserve Bank of St. Louis

lated economic organization out of
balance to the extent that there fol­
lows a sudden decline in business and
industrial activity or a slow and grad­
ual recession.
Stiffer money rates, declining for­
eign trade, lessened demand for build­
ing construction, increased competitive
price-cutting in the automobile indus­
try and falling purchasing power in
agricultural sections are symptomatic
of the existence of a less favorable
balance now than existed last year or
the year before between those funda­
mental factors which constitute the
sound basis for a period of sustained
prosperity.
It must be kept in mind, however,
that our economic system is never in
perfect balance—adjustments are con­
stantly being made through the organ­
izing function of prices, and while these
constant adjustments lower the ef­
ficiency of industry, they do not seri­
ously disturb the general state of bal­
ance.
When adjustments have been of con­
siderable magnitude and there has ex­
isted a genuine credit stringency, sud­
den declines in business and indus­
trial activity have come during the
past, while the slow and gradual reces­
sions have started and run their
courses in times of relatively easy
credit.
A state of credit inflation exists
when the amount of credit in use is
increasing faster than the volume of
physical production, and it must al­
ways be remembered that purchasing
power—whether immediate or deferred
payment be made—rests in production
—and more particularly in balanced
production.
At present there is no credit strin­
gency in prospect, and because of this
it is probable that any near-term
change in business and industrial ac­
tivity will be gradual rather than dras­
tic, and protracted rather than brief.
Such factors as hand-to-mouth buy­
ing, large stocks of gold, the open mar­
ket and rediscount rate policy of the
Federal Reserve Board, construction
activity and increased railroad operat­
ing efficiency, have been strong factors
in the present period of well sustained
prosperity, but equally important has
been the policy of an increasing num­
ber of merchants, manufacturers and
bankers to “ Think Cautiously and Act
Decisively.”
The present is no time for relaxation
from cautious thinking or the abandon­
ment of those conservative policies
which have proved their worth; there
is still need for a steady hand upon
the wheel and a clear eye ahead; there
is still need to “THINK CAUTIOUSLY
AND ACT DECISIVELY.”

St. Louis, January, 1927

37

story of money is the story of business.
In this we have faith.”

The Banking World'
B y C l ì - f - f o r d D e F *u y
Publisher De Pay Banking Publications

know of no bet­
ter way to express my New Year
greeting to you than in the words of
Edgar A. Guest, when he said:
Happy N e w Y e a r !

I

“This I would like to be—just a bit
finer,
More of a smiler and less of a
whiner,
Just a bit quicker to stretch out my
hand
Helping another who’s struggling to
stand,
This is my prayer for the New Year
to be,
Lord, make a regular man out of
me.”
$ ■
Congressman Dickinson believes that
the present administration should
either favor the McNary Farm Relief
Bill or present a new bill which will
help to solve the farming situation. Mr.
Dickinson puts it this way: “When­
ever a government or a party finds that
they cannot find a solution for the
problems that face our people, then
that party or that leadership sooner or
later has got to be discredited and new
leadership has got to be assumed.”
—$—
but New York
bankers made $10,000,000 in ten days
by purchasing the Victor Talking Ma­
chine Company for $115 a share and
selling it for $155 a share. It is under­
stood that “ His Master’s Voice” now
emanates from Wall Street.
—$—
T alk

may

be cheap

T h e high cost of the city gov ern ment
of Paris is indicated by the fact that

the budget for 1927 is 2,394,000,000
francs or seven times the cost of oper­
ating the city government before the
war. This represents a deficit for the
city of Paris of 102,000,000 francs. The
city council hopes to eliminate this
deficit by increasing the custom du­
ties on articles entering the city,
rather than increasing the present high
taxes.
—$—
If you w a n t to get rich, buy good
farm lands in any good agricultural
state. This is a buyer’s market. Five
years from now you can sell out and
make enough money to retire for the
rest of your life. Activity in the Iowa
farm real estate market in the last 30
days is indicated by the fact that one
farm of 160 acres was sold for $194 an
acre, another farm of 130 acres sold


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Federal Reserve Bank of St. Louis

for $225 per acre, and this transaction
was all on a cash basis. Another farm
sold for $160 an acre, and another one
for $250 an acre.
—$—
T he General Motors Corporation and
the U. S. Steel Corporation, which have
been fairly (?) successful as money
makers and also in declaring stock
dividends, have both been pushed off
the map by the Union Fabric Co. of
Derby, Connecticut, which has de­
clared a 3,900 per cent stock dividend.
The company was established in 1887
with a capital stock of $9,000, and this
is now being increased to $360,000. The
company manufactures covered corset
steels and radio parts.
—$—
de­
cided that they would not disturb the
community by blowing open the safe
of the Buffalo State Bank within the
city limits, so they took the safe and
placed it on a truck and then drove
out of town and had a “safe opening”
far from the angry mob.
Bank robbers in Buffalo, Kansas,

T h e U. S. Governm en t reduced its
public debt approximately $1,179,000,000 in 1926. The government obliga­
tions at the beginning of this year
were slightly over $19,000,000,000, with
$200,000,000 in cash on hand. Taxpay­
ers are interested to know that the an­
nual interest paid out by the govern­
ment has been reduced about $75,000,000.
—$—
Dr. C. H. Crennan, noted economist
of the Continental & Co mmercial Banks,

in “ The Trend of Business,” says,
“Good business is in prospect for the
first half of 1927. And this opinion can
be stated with a feeling of assurance,
it is based on correct statistics. Busi­
ness may be good throughout 1927.
But the first half of the year is a fore­
seeable period, whereas a prediction
as to what is likely to happen during
the entire year would be more of a
guess than a statistical forecast.
“ Money rates will be easy. And am­
ple credit and easy money sustain
business. They do not contract activ­
ity. The opinion that something like
the usual seasonal variation in money
at an easy level may be expected—
this is one of the main reasons for ex­
pecting business activity, good busi­
ness, during the first half of 1927. The

Representative Morton D. Hull has
divided the McFadden Bill into three
parts so that each one may be voted
upon separately during the present ses­
sion of Congress. Bill No. 1 provides
for renewal of the Federal Reserve
System charter; Bill No. 2 grants to
national banks all the forms of relief
contained in the McFadden Bill ex­
cept those referring to branch bank­
ing, Bill No. 3 contains the provisions
of the McFadden Bill in regard to
branch banking as passed by the
Bouse of Representatives, embodying
the Hull amendments.

—$—
A. J. Barak, agent for the National
Union Fire Insurance Co mp any of Pitts­

burgh, at Petersburg, Nebraska, calls
our attention to a large advertisement
which is being used in the local paper
in his community entitled, “How Old
is Your Oldest Doctor Bill?” The ad­
vertisement, while unsigned, is no
doubt sponsored by the medical pro­
fession, as it emphasizes the point that
the average individual pays the gro­
cer, the butcher, the baker and the
candlestick maker first, and the doctor
last. Any community, if it is to thrive
and prosper, must have a high credit
rating among its individual citizens.
Dead-beets are parasites upon any com­
munity.
—$—
W . C. D’Arcy, president of the D’Arcy
Ad vertisin g Agency at St. Louis, be­

lieves firmly in the installment plan
buying. In a recent address on this
subject he said: “The so-called ‘in­
stallment evil’ may exist for a few
people who make fools of themselves
by buying more than they can pay for,
but that should not cause the system
to be condemned.
“During one year in the United
States, there is sold $6,750,000,000
worth of goods on time payments and
from 10 to 40 per cent of this amount
is paid down in cash. The rest of the
debt is liquidated within one year, or
eighteen months at the longest. Why
is not this form of selling just as
sound, from a credit standpoint, as any
of the loans a banker makes? To any­
one who asks, do you believe in in­
stallment plan selling I reply: Do you
believe in the United States? Do you
believe in Liberty Bonds? Do you be­
lieve in land mortgages? The prin­
ciple is the same.”
—$—
Charles B. Mills, president of the
Midland National Bank and Trust Com­
pany, Minneapolis, sent me the follow­
ing story of which he says he is not

38

Mid-Continent Banker

the author, but which he heartily en­
dorses:
“When I used to tote nourishment
to the swine, I noticed something you
also have noticed if you are hogwise—
the tendency of every pig is to get its
feet into the trough. Keep that but­
termilk and kitchen refuse clean as
we would, the very minute it got into
the trough some porker who didn’t
stop to think or care where his hoofs
had been last, rammed them into the
food of all the rest.
“The rest said: ‘Well, it’s as dirty
now as it can get, so we’ll all try that,
and fight it out.’ So they did.

“Ever see people do the same thing?
They complain that printed matter is
lacking in truthfulness, yet they go
around dropping language as careless­
ly as if none of it meant anything.
“ They put their feet into the trough
of human life and dirty up everything
within reach. They say it is a shame
such and such a girl has been talked
about the way she has, when nine
cases out of ten that is the first time
some of those present ever heard that
that girl had been talked about.
“ Somebody whispers that a bank is
shaky. Everybody who has money in
that bank knows the destructiveness

T o officers of
corporations
Through its Corporate Trust
Department,The Equitable re­
lieves a corporation of much
clerical and technical detail and
effects a real economy in its

of a bank ‘run’ and then they fall over
each other to be the first to start it—
feet in the trough.
“In fact, a close study of pigs will
give one a very keen insight into hu­
man nature.”
Milton O. Johnson, manager of the
Analytical Depa rtm e nt of the First Illi­

nois Company, calls my attention to a
statement which appeared in this de­
partment in our December issue. Mr.
Johnson says:
“I notice in your ‘News & Views of
the Banking World’ that you make the
comment on Mr. Babson’s prediction
of a downward trend of commodity
prices during the coming year as fol­
lows. ‘During the past twenty-five
years, the trend of commodity prices
has been upward.’
“As a matter of fact, the trend of
commodity prices has been downward
since March of 1925, and very clearly
downward since December of that year,
as a great many business men and
bankers are quite aware of because
of the major influence exercised by
prices upon profits.”

overhead. The Equitable acts
in the following capacities:

Over $1,750,000,000

1 . As trustee under mortgages
and deeds of trust, securing
bonds of railroad, public

in Railroad, Industrial and
Public Utility Bonds

utility and industrial corpo­
rations.
2 . As transfer agent and regis­
trar of stock.
3 . As depositary under protec­
tive agreements or under
plans of reorganization of
railroad, public utility and
industrial corporations.
4 . A s agent and depositary
for voting trustees.

M O R T G A G E S securing over $ i ,750 ,0 0 0 ,0 0 0
in bonds of a number of the nation’ s important
industries are now in our care as trustee.
Our record as corporate trustee and our experi­
ence in the sound and businesslike administration
of these trusts is reflected in the continual growth
in volume of this business entrusted to our care.
The services of The Equitable are available to
local banks wishing to amplify their own serv­
ices for the benefit of their customers.
Send for our booklet: Schedule o f Fees f o r
Corporate T ru st Services.

5 . As assignee or receiver for
corporations under action

THE EQUITABLE
TRUST C O M P A N Y

for the protection of cred­
itors

OF N E W YORK
37 W A L L S T R E E T

6 . As fiscal agent for the pay­
ment of bonds and coupons

C

h ic a g o

: 105 South L a Salle Street
Telephone: Slate 8312

of states, municipalities and
corporations.
Without obligating you in any
way, we shall be pleased to go
into detail with regard to any of
the above-mentioned services.

D is t r ic t R e p r e s e n t a t iv e s
Ba l t im o r e
Ph il a d e l p h i a
Sa n F r a n c is c o
A tlan ta

F o r e ig n O f f ic e s
Lo n d o n
Pa r is
M e x ic o C it y

H o m e O f f i c e , 37 Wall Street, New York, connected by
direct private wire with Chicago office.
T o ta l resources m ore than $ 4 5 0 ,0 0 0 ,0 0 0
© E . T. C. <tf n . r . , 1927

ENVELOPES F O R B A N K S

HECO ENVELOPE COMPANY
Chicago, Illinois


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

Safety Pay Envelopes

HECO—C H IC A G O

Stable Money Advocates Meet
in St. Louis
Stable money advocates from all over
the United States assembled in St.
Louis recently to attend the series of
meetings held in connection with the
meetings of other national organiza­
tions interested in economic and social
problems.
The principal event of the meeting
of the Stable Money Association was a
dinner held at the Statler Hotel, where
experts of international reputation dis­
cussed matters relating to the stabili­
zation of the purchasing power of the
dollar.
Dr. W. F. Gephart, vice-president of
the First National Bank in St. Louis
and vice president of the association,
spoke on “ The Stable Money Move­
ment.” Other speakers included Ir­
ving Fisher, professor of economics at
Yale University; George Clarke Cox,
investment counsellor, New York City;
G. F. Warren, professor of agricultural
economics, Cornell University; Kelton
White, G. H. Walker & Co., St. Louis;
Norman Lombard, executive director
of the Stable Money Association, and
John R. Commons, professor of econom­
ics, University of Wisconsin.
Without philosophy we should be
little above the animals that dig or
erect their habitations, prepare their
food in them, take care of their little
ones in their dwellings, and have be­
sides the good fortune, which we have
not, of being born already clothed.—
Voltaire.

St. Louis, January, 192 j

Big Flower Display in Bank
Lobby Attracts Attention
Those who had occasion to visit the
Texarkana National Bank on a certain
day recently were astonished by the
sight of huge baskets of flowers that
supplemented the beautiful decorations
of the banking room.
They were the gift of Mrs. George
W. Bottoms, 512 Hickory street, a lover
of flowers and whose magnificent gar­
den at her home is annually one of the
city’s show places.
Mrs. Bottoms was in the bank re­
cently and remarked, “I see you get
little bouquets here sometimes, but I’m
going to send you a sure enough one
soon,” and sure enough she did.
The flowers were sent to John W.
Wheeler, president of the bank, and
his fellow-officers, and when the huge
assortment of all colored chrysanthe­
mums arrived the bank officers were
certain a florist’s shop had been moved
in by mistake.
The flowers attracted a great deal
of attention and proved that banking is
not just cold hard cash. A. R. Covney,
assistant vice-president of the hank,
expressed it as follows: “Just as the
flowers show the banking room in a
bright, cheerful mood, so it expresses
the human, natural side of our profes­
sion.”

39

For Louisville Branch:
W. P.
Kincheloe, managing director; John T.
Moore, cashier, and Earl R. Muir, as­
sistant cashier.
For Memphis Branch: W. H. Glas­
gow, managing director; S. K. Belcher,
cashier, and C. E. Martin, assistant
cashier.
For Little Rock Branch:
A. F.
Bailey, managing director; M. H. Long,
cashier, and Clifford Wood, assistant
cashier.
The following
branch directors,
whose terms expire at the end of this
year, were also reappointed by the
board of the parent bank to serve for

three years, beginning January 1,
1927:
Eugene E. Hoge, Louisville
Branch; John D. McDowell, Memphis
Branch, and Stuart Wilson, Little
Rock Branch.
Breckinridge Jones, St. Louis, was
re-elected to represent the Eighth Fed­
eral Reserve District in the Federal
Reserve District in the Federal Ad­
visory Council during 1927.
It is suggested that the way to get
the minimum satisfaction out of money
spent is to contribute it to the cam­
paign fund of an unsuccessful candi­
date.—Stuff and Nonsense.

Chemical National Appoints
Farwell Chicago Manager
The Chemical National Bank of
New York has announced the appoint­
ment of Thomas W. Farwell as man­
ager of its Chicago office, which is lo­
cated in the Illinois Merchants Bank
building, Chicago.
Mr. Farwell has been for twelve
years with the Illinois Merchants Trust
Company of Chicago, devoting himself
to business in Michigan and Indiana.
During the war he was a First Lieu­
tenant in the 130th Infantry, Prairie
Division.

Federal Reserve Directors
Elect 1927 Officers
According to announcement of Wil­
liam McC. Martin, chairman of the
Board of the Federal Reserve Bank of
St. Louis, the directors have re-elected
the following officers for the year 1927:
For parent bank at St. Louis: D.
C. Biggs, Governor; Olin M. Attebery,
Deputy Governor; J. G. McConkey,
counsel and secretary; J. W. White,
cashier; A. H. Haill, J. W. Rinkleff,
S F. Gilmore and F. N. Hall, assistant
cashiers; E. J. Novy, general auditor,
and E. I. Nowotny, L. A. Moore and
A E. Debrecht, assistant auditors.


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

ST. LOUIS NATIONAL BANK
Sc. Louis, Mo.

a banker to make an intelligent decision as to the advisability o f going into a building
project— our latest publication, “ Preliminary Service
for Contemplated Bank Buildings,” shows how we
present a comprehensive building program, including
plans, sketches and condensed specifications, together
with estimate of total cost.
A C O

ENABLE

A copy will be mailed you for the asking

St. L ouis B a n k B u il d in g
and Eq u ipm en t C o m pany
cBanks E x c lu siv e ly
N IN T H A N D SIDNEY STREETS

- *-

ST. LOUIS, M O .

40

Mid-Continent Banker

Cody Trust Opens Offices
in Borland Building
On January first, the Cody Trust
Company opened offices on the third
floor of the Borland Building, 105 South
LaSalle street, Chicago. It will handle
real estate loans exclusively, specializ­
ing in mortgages for life insurance
companies and in conservative bond is­
sues for banks, estates and private in­
vestors.
Officers of the Cody Trust Company
are: President, Arthur B. Cody; vicepresident and treasurer, Lewis W. Rid­
dle; vice-presidents, Hiram S. Cody
and Thomas T. Roberts; secretary,
Arthur C. Cody; assistant secretaries,
Edward S. Clark and Bester P. Price;

Company, originated in 1848 by Judge
Hiram H. Cody, was later developed
by the lawr firm of Gary, Cody & Gary.
This firm consisted of Judge Elbert H.

general counsel, Robert W. Campbell.
Cody Trust Company is the exclusive
loan correspondent in Chicago of State
Mutual Life Assurance Company of
Worcester, Mass.; Home Life Insur­
ance Company of New York, and Reg­
ister Life Insurance Company of Dav­
enport, Iowa.
It is one of the real estate loan cor­
respondents in Chicago and the state
of Illinois for the Life Insurance Com­
pany of Virginia, Richmond, Va., and
has direct connections with three other
large insurance companies, enabling it
to handle mortgages of any size.
The mortgage business of Cody Trust

THE

BANKER
The Banker, published in London by Eyre & Spottiswoode, Limited,
Printers to the King’s Most Excellent Majesty, is one of the most
distinguished financial journals in the world. Its contributors and
correspondents include such eminent authorities as Sir Robert
Horne, M . P., late Chancellor of the Exchequer; the Right Hon.
Philip Snowden (a former Chancellor of the Exchequer in the Govern­
ment of Great Britain); Joseph Caillaux, formerly Prime Minister
and Minister of Finance in the Government of France; Count
Volpi, Minister of Finance in Italy, etc.

Arthur B. Cody

Gary, now and for many years chair­
man and chief executive officer of the
United
States
Steel
Corporation;
Judge Hiram H. Cody, under whom

The Banker has the largest sale of any banking journal published
in the British Empire. The technical production is unsurpassed
and is worthy of its editorial distinction. All sections of the British
Press have paid tribute to its remarkable influence, and it is, per­
haps, the most quoted of all banking journals.
Each issue contains a comprehensive article on banking affairs in
the United States, and special advertisement positions are available
facing this section.
Many great American Banks will find it highly advantageous to be
represented in the advertising pages of The Banker. It is read by
the leading bankers of Europe and the British Empire, many of
whom are potential customers of American banks.
W e shall be pleased to send you a specimen copy of The Banker,
together with full particulars of the available advertisement spaces,
upon application.

EYRE & SPOTTISWOODE, Limited,
Printers to the King’s Most Excellent Majesty,
9 East Harding Street, London, E. C. 4 .


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Federal Reserve Bank of St. Louis

Hiram S. Cody

Judge Gary had studied law, and Noah
E. Gary, Judge Gary’s brother. Its of
flees were in the Reaper Block, still
standing at the northeast corner of

St. Louis, January, IÇ2J
Clark and Washington streets, Chi­
cago.
In January, 1910, Arthur B. Cody,
then of the law firm of Cody and Eaton
(the late Marquis Eaton) was ap­
pointed mortgage loan correspondent
of the State Mutual Life Assurance
Company of Worcester, Mass., of which
the firm of Gary, Cody and Gary was
appointed Chicago counsel in 1879.
In February, 1912, Arthur B. Cody
took into partnership his son, Hiram S.
Cody, and continued the general mort­
gage loan business under the name of
Arthur B. Cody and Son.
On March 1, 1919, the business of
Arthur B. Cody & Son was consoli­
dated with Chicago Trust Company,
Arthur B. Cody and Hiram S. Cody be­
ing made managers of the real estate
loan department of the bank, later be­
coming vice-presidents. Arthur B.
Cody was also elected a member of
the board of directors of the bank.
The division of the mortgage loan
business, between Chicago Trust Com­
pany and Cody Trust Company, as ar­
ranged two years in advance, takes
place under a complete and friendly
understanding between the two insti­
tutions.
The directors of Cody Trust Com­
pany are Senator William Alden Smith,
formerly United States senator from
Michigan, chairman of the board of the
Grand Rapids Savings Bank, Grand
Rapids, Michigan, and chairman of the
board of Goodrich Transit Company;
Robert W. Campbell, of the firm of
Knapp & Campbell, attorneys, 208
South LaSalle street, Chicago, presi­
dent of the Northwestern University
Board of Trustees, Evanston, Illinois;
Gilbert L. Daane, president of the
Grand Rapids Savings Bank, Grand
Rapids, Michigan; Albert W. Swayne,
builder of co-operative apartments,
Wriglev Building, Chicago; Arthur B.
Cody. Hiram S. Cody, Lewis W. Rid­
dle, Thomas T. Roberts and Arthur C.
Cody, of Chicago.

Committee Completes Survey
of Investment Advertising
The results of what is believed to be
the first concerted effort by practical
authorities to collect and catalogue
available information and data for the
purpose of increasing the efficiency of
investment advertising are now ready
in published form, it is announced by
C. H. Handerson, president of the
Financial Advertisers’ Association.
The Investment Department Re­
search Committee of the Association,
of which A. E. Bryson, Vice-President
and Director of Advertising of Hal­
sey, Stuart and Company, is Chair.


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Federal Reserve Bank of St. Louis

41

man, has spent approximately a year sponsored by the Financial Advertis­
in making a complete survey of the ing Association. All the members of
investment advertising field, and much the Investment Bankers Association
of what was learned is incorporated will receive a copy of the Research
in this report, which is divided into Committee’s report. Those interested
four subjects, each handled by a spe­ in receiving a copy but who are not
cial sub-committee. The Chairmen of members of the I. B. A. or the F. A. A.
the various sub-committees are as fol­ may obtain copies through Preston E.
lows: Markets, H. G. Hodapp, Adver­ Reed, Secretary, Financial Advertisers’
tising Manager, National City Com­ Association, 231 South LaSalle Street,
pany, New York; Media, H. B. Mat­ Chicago.
thews, Advertising Manager, S. W.
Straus and Company, New York;
All the makers of dictionaries, all
Methods, Paul T. Bollinger, Harris,
compilers who do nothing else than
Small and Company, Detroit; Direct repeat backwards and forwards the
Mail, Edmond B'oushelle, A. B. Leach
opinions, the errors, the impostures,
and Company, New York.
and the truths already printed, we may
It is expected that this work will
term plagiarists; but honest plagiar­
be used as the basis for the new text­ ists, who arrogate not the merit of in­
book on financial advertising to be vention.—Voltaire.

U nited States
Federal Reserve Bank
L ittle R ock, Arkansas

T h om pson & Harding
A rchitects

Architectural
woodwork, marble
and bronze, executed
by the

American Fixture Co.
Benton Plaza and Bellefontaine
K A N S A S C IT Y , M IS S O U R I

Mid-Continent Banker

42

amongst the most modern in all Chi­
cago, for no expense has been spared
in having everything of the best and
most up to date.

Illinois

W . B. CR AW FO RD

President

O F FIC E R S I L L I N O I S
BAN K E R S
A S S O C IA T IO N : W . B. Crawford, West
Frankfort, President: J. M. Appel, High­
land
Court,
Vice-President;
M.
A.
Graettinger, Chicago, Secretary; Olive
S. Jennings, Chicago, Assistant Secre­
tary; W . H. Drewel, Charleston, Treas­
urer.
GROUP C H A IR M E N :
I— E. F. Anson,
Kewanee; I I — G. K. Slough, Abingdon;
I I I — H. H. Badger, Am boy; IV — A. K.
Foreman. Chicago; V — C. A. Mueller,
Kankakee: V I — E. E. Core, Robinson;
V I I — E. B. Appleton. Litchfield: V I I I —
J. C. Whitefield. Quincy; I X — L. G.
Gee. Lawrenceville ; X — Earl Karraker,
Mound City.

South Chicago Bank
Opens Ne w Building.

The South Chicago Savings Bank,
Chicago, 111., opened for business in its
new home at the southwest corner of
Ninety-second street and Commercial
avenue on November 22nd.

1

9

J. F. Lee
Elected Cashier.

M. A. GRAETTINGER
Secretary

Home State
Opens New Building.

This new bank building is one of
the finest on the South Side and is
equipped with every modern conven­
ience known to bankers. The vaults
are practically impregnable to robbers
and the safety deposit department has
many unique features which places it

2

we extend our sincere wishes for a
most pleasant and profitable year,
and it is our hope that we may be
to

serve

in

ways that

will accom plish most for those who
entrust us with their business.

THE STOCKYARDS NATIONALBANK
THE STOCK YARDS TRUST& SAVINGS BANK


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

The Home State Bank of Princeville,
Illinois, recently celebrated the open­
ing of its fine new tank building with
a public reception attended by hundreds
of friends and customers.
In connection with the opening of
the new banking home, the bank issued
a very attractive booklet, “A Part of
Princeville.” The booklet contained a
history of the bank and its former
quarters, and went on to describe the
personnel and growth of the bank and
the part it had played in the develop­
ment of Princeville.
The building which has just been

Home State Bank, Princeville, Illinois

7

T o bankers of the M iddle W e st

privileged

J. F. Lee of Allenville has been ap­
pointed cashier of the Peoples’ State
Bank of Allenville, 111., to fill the
vacancy caused by the resignation of
D. G. Carnine, who was elected county
treasurer of Moultrie County.

o fC H

IC A G O

opened to the public is of true colonial
design, built of colonial brick and In­
diana limestone. The front portion of
the building, one story in height, con­
stitutes the main banking room which
is finished with panelled walls, tiled
floor and matched walnut counters.
The building was constructed by the
Geo. W. Stiles Company, and the vault
is furnished with a massive York vault
door.
Officers of the bank are: Peter
Auten, president; Wm. Gelling, vicepresident; Edward Auten, Jr., cashier,
and Chas. H. Auten, assistant cashier
Berwyn Bank
Opens Ne w Home.

The American State Bank, Twentysecond and Oak Park avenue, Berwyn,
111., held its formal opening November
20th in its magnificent new home built
of Bedford stone with an interior of
marble, together with fittings the most
modern that banking practice has de­
veloped.

43

St. Louis, January, 1927
T w o Toluca
Banks Merge.

A merger of the First State Bank of
Toluca, 111., with the Citizens’ National
Bank of that city, is being perfected.
The Citizens’ National Bank will as­
sume all the deposits of the other bank
and will continue to do business under
the same name and with the same
officers. James E. Hatton is presi­
dent; Frank Shipley and R. M. Barnes,
vice-presidents; F. J. Ghigbiri, cashier;
and Elmer J. Heun, assistant cashier.

P. L. McPheeters Now at
Wheaton
P. L. McPheeters, who has been
with the Champaign National Bank,
Champaign, 111., since 1907, and cashier
since 1913, is now the cashier of the
new Wheaton Trust and Savings
Bank, Wheaton, 111. Mr. McPheeters
began his banking career October 1,

P. L. McPheeters

1907. He served as bookkeeper and
general utility man until January 1,
1913, when he was elected cashier.
Mr. McPheeters has been active in
various public capacities in Champaign.
He is an Elk and has just resigned as
Exalted Ruler of his lodge preparatory
to removing to Wheaton. He is a
member of various Masonic bodies and
of the Champaign County Country
Club. For a number of years he has
been a director of the Champaign Loan
and Building Association, the largest
building and loan association in that
city.
A r th u r

E.

Zitt.

aged

53,

vice-presi­

dent of the People’s State Bank, Wau­
kegan, 111., died suddenly November
23rd.


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Federal Reserve Bank of St. Louis

“ ROLL of H0N01r
IN ILLIJNUlo

M

iNKS

It is an honor to be listed among the Honor Roll Banks of
Illinois. It indicates that the bank has Surplus and Undivided
Profits equal to or greater than its capital!
Such distinction is accorded to the banks listed on this page.
By careful banking and sound management they have achieved
this enviable position.
These banks will be especially glad to handle any collections,
special credit reports or other business in their communities which
you may entrust to them.
Correspondence is invited.

City
Bank
Capital
Abington....... First National..................... ...$
75,000
Alexander..... ...Alexander State.................
25,000
Assumption... ...Illinois State.........................
25,000
Beardstown... ...First State...........................
100,000
Berwick......... ...Farmers State.....
30,000
Bloomington ...American State.......
100,000
Bloomington ...Corn Belt State...................
100,000
Canton........... ...Canton National.................
125,000
Chapin.......... ...Chapin State
......
25,000
Chicago......... ...Central Mfg. District.........
500,000
Chicago......... ... Cont. & Com. Tr. & Svg.. ... 5,000,000
Chicago......... .. Drovers Tr. and Svg..........
250,000
Chicago......... .. First Tr. and Svg............. ... 6,250,000
Chicago......... .. First National..................... ... 12,500,000
Chicago........ .. Foreman National...............
4,000,000
Chicago......... .. Harris Tr. and Svg............ ... 3,000,000
Chicago......... .. Illinois Merchants............. ... 15,000,000
Chicago........
Northern Trust Co............ ... 2,000,000
Chicago......... ... State Bank of Chicago..... ... 2,500,000
Chicago........
Union Trust Company......
3,000,000
De Kalb......... ... First National.....................
100,000
Dixon............. .. City National..
100,000
Flora.............. ...First National.....................
50,000
Freeport........ ...First National......................
150,000
Grand Ridge......First National......................
25,000
Greenfield...... ....Farmers State
25,000
Joliet............... ....First National.....................
400,000
Joliet............... ... Toliet National.........
150.000
Joliet.............. . Joliet Trust and Savings Bank 100,000
La Salle........ .. LaSalle National Bank.
200,000
Murphysboro ...City National ......................
50,000
Mt. Vernon... .. Third National ..................
125,000
New Athens ... ....State Bank of New Athens
25,000
Rushville....... ...Rushville State
100,000
Tiskilwa......... ....First State.... ...................
25,000
Urbana........... ....First National
50 000
Warren.......... ...State Bank..... .......
75,000

Surplus
and Profits
$ 175,000
50,000
65,000
180,000
35,000
336,000
255,000
175,000
56 000
670,000
11,377,000
517,000
10,534,000
17,956,000
4,588,000
4,874,000
35,231,000
5,347,000
6,563,000
3.923,000
160,000
200,000
75,000
430,000
33,000
30,000
600,000
650 000
119,633
330,000
62,000
200,000
45,000
105 000
30,000
60 000
95,000

44

Mid-Continent Banker

ALONG L A SA L L E STR EET
Speaking financially, there is but one

Wall street. In Europe the same is
true of Threadneedle street in “ dear old
Lunnon.” By the same token, there is
but one LaSalle street, Chicago, U. S.
A. To the latter financial thorough­
fare this column is dedicated and will
appear as a regular feature of the MidContinent Banker in the future.
Not

unlike

the

Eastern

of these men now high up in Chicago’s
financial affairs. Of course, when this
subect is discussed, ’most everyone im­
mediately thinks of Melvin A. Traylor,
president of the First National Bank
and of the A. B. A. But three states
lay claim to him. Born and raised in
Kentucky, prosecuting attorney in
Texas, as well as resident of St. Louis
before removal to Chicago.

metropolis,

Chicago has attracted from outside cit­
ies some of its shining stars to help
guide its financial destiny. St. Louis
and a number of cities in the South­
west have contributed a goodly share

A

well

known

trio

that

mig ht

be

seen lunching at the Mid-Day or some
other noon day club in the Loop, con­
sists of Messieurs Leavell, Little and
Kauffman. When this writer was a fi­

nancial editor in St. Louis a number of
years ago, he agreed with other news­
paper men that the world would hear
a lot of this triumvirate in the years to
come.
Today, we find th a t James R. Leavell,

one time vice president of the old Mechanics-American National, St. Louis,
who married Miss Lorna Doone Carr,
is vice-president of the Continental &
Commercial Banks. Jim handles cot­
ton and other Southwestern accounts.
To retain and make perfect his con­
nections and interests in affairs in that
section, Jim makes frequent trips to
that territory. He even kept the old
colored butler, who has been with the
family lo these many years.
Alden H. Little, now well established

in his new berth as executive secre­
tary of the Investment Bankers Associ­
ation, was a great friend of Jim, while
they both lived in St. Louis. Alden
had his own bond firm, but he always
found time to work for the best inter­
ests of the I. B. A., having been on the
governing board and affiliated with the
Mississippi Valley Group for a long
time. No one could have been better
suited for the big job which is now
his.
Everybody in the St. Louis banking

territory, of course, knew R. King
Kauffman, executive vice-president of
the Mercantile Trust Company.
He
helped Festus J. Wade to bring numer­
ous industries to the Mound City. He
is one of the latest Chicago arrivals.
The John R. Thompson family
(in
whose restaurants even bankers are
said to munch sandwiches occasional­
ly) drafted King to look after their se­
curities. Welcome to Chicago.

Conservative Traditions
in Modern Banking

M any

In the Illinois Merchants Trust Company, the traditions of a
half century of conservative banking stand back of each trans­
action. fïïWith its large financial resources, its highly developed
and specialized facilities and organization, its intimate business
and governmental contacts at home and abroad, this institution
is today one of this country’s leading banks — a logical choice
for banks or commercial concerns establishing a Chicago bank­
ing connection. ^Personal attention to inquiries concerning
our specialized services will gladly be given by our officers.

I l l in o is M e r c h a n
Tru st co m pan y
Capital & Surplus

LA

SALLE, JAC K SO N , CLARK


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

45

AND

ts

éM illion D o lla rs

Q U IN C Y

STREETS

• C H IC A G O

changes calling fo r

increased

facilities and expansion have been made
by a number of the larger banks dur­
ing the past twelve months. The Fore­
man Banks, founded in 1862, have had
a remarkable year. Sixty-four years
young. Combined resources are now
well past the hundred million mark.
They recently took additional space,
spreading to the Andrews Building,
next door. The entire first floor has
been taken over and is being devoted
to the Foreman Trust & Savings Bank’s
savings department.
Fre de rick

H.

Rawson,

c hairm an

of

the board, Union Trust Company of
Chicago, tells us that “although I am
not inclined to make predictions for
more than six months ahead in any
year, I believe we may expect a con­
tinuance in 1927 of about the same
business activity as that experienced

45

St. Louis, January, 192"/
in 1926.” He further explains that the
financial sky is free of any serious
storm clouds, the country is fortunate
in having a conservative president, and
all in all, the business situation in the
United States was never better than
at present.
T he Ne w Y e a r ushers in a new tru st

company in Chicago—The Cody Trust
Company, with offices on the third
floor of the Borland Building, 105
South LaSalle street. It will handle
real estate loans exclusively, specializ­
ing in mortgages for life insurance
companies and in conservative bond
issues for banks, estates and private
investors.
T h is

is the tim e

T his changing w orld is ever moving

onward and onward. Six big Loop
banks have had important changes in
their advertising and publicity depart­
ments during the past year. In most
instances the head of the department
is promoted to an even more responsi­
ble position.
U pw ards of seventy-five w ell trained

bond men, representing Chicago houses
travel the state of Illinois regularly,
calling on banks and investors. These
men, as a rule, know their business,
and deserve a lot of credit. Listen to
these men and you seldom go wrong.
Compare this present situation of high
grade men selling high grade bonds to
that of the stock promoter and high
pressure Blue Sky era of a few years
ago. Things ARE getting better.
Do bank offifficials spend too

D.

Z ela rm m o ,

28-year-

old Filipino, is a Chicago hotel bell boy


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

Bank, to be opened at Congress street
and Wabash avenue, has announced
the election of Henry S. Henschen,
president. Other officers are: Philip

Formal announcement that the pro­
posed merger of the North Western
Trust and Savings Bank and the Home
Bank and Trust Company has been
abandoned, was made by John F.
Smulski and Peter L. Evans.

A n O de to a B a n k
The following poem was sent to us
by O. F. Anderson, first vice-president
of the Moline State Trust & Savings
Bank of Moline, Illinois. The poem is
by Marjorie Allen Seiffert, the author
of a volume of verse published a short
time ago. It was read at a banquet
given recently to the employes of the
Moline State Trust & Savings Bank:
As I look up and down this table
And know that all of you are able
To straighten tangled check-book stubs
I think the rest of the world are dubs!
When I sell tickets to a dance
I think I’m deep in high finance . . .
I think finance is higher still
When I check over the grocer’s bill.
Though I never get the amount they
say
I know they’re right . . . and so I pay.
But every month long hours I take
Adding it up for conscience sake!
For reasons such as this I thank
Heaven I know an honest bank!

much

time at their desk and not enough time
meeting their “public?” Of course, the
larger institutions are more and more
adding a high type of outside men for
their new business departments. Bond
salesmen, too, are working harder. In
an article in The Mid-Continent Banker
several years ago, Edward S. Jordan,
of automobile fame, said" that a man
would eventually become a ten thou­
sand dollar a year salesman if he would
call on or communicate in some way
with 18 prospects daily. Harold Leo­
pold, wealthy Chicago bachelor and in­
surance broker, tells this writer that
for the past ten years he has made
an average of ten calls a day on either
prospects or regular customers.
Eliseo

T h e new Congress T ru s t & Savings

F. W. Peck, vice-president; Thor H.
Erickson, cashier, and Oliver W. Reese,
assistant cashier. Directors, in addi­
tion to Mr. Henschen and Mr. Peck,
are Albert I. Appleton, Norman E. Bensinger, Vail R. Bucklin, Alfred Cowles,
Eugene R. Farney, Mitchell D. Follansbee, Adolph Lindstrom, Roy O. Nereim, J. A. O. Preus, Alexander H.
Revell, Jr., Paul Schulze, Ernest J.
Stevens and P. D. Swigart.

of the year, w ha t

with annual elections and changes to
take place, when many Juniors, hard­
working chaps in the banks are hop­
ing and praying for a move up to larger
things, including both compensation
and official recognition.

Senor

at night, and during the day is one of
the brightest students at De Paul
(school of commerce and finance) Uni­
versity. He is specializing in bank­
ing and no doubt some day will be a
big banker in the Philippines or else­
where. He owns neither flivver nor
raccoon coat and is rounding out his
sixteenth year of studious application to
his lessons. Some people still take
their life’s program quite seriously.

And Mr. A----- —’s stately style
That warms you with its pleasant smile
And the friendly T--------- T--------With the pleasantest greeting ever seen,
I will not mention another name
For in each face I see the same
Expression of helpful friendship grow
And I think of the awful things you
know!
Compound interest that makes me sick
And the secrets of darkest arithmetic.
I can add a little and multiply
But long division makes me cry,
And I’m never safe when I subtract . . .
My family knows this is a fact!
What would I do, Oh what would I do
Without the friendly help of you?
I’d keep my dollars in a sock
Or hide them under a small flat rock.
You are all people with wonderful tal­
ents
Able to make long columns balance . . .
I look at you with envious wonder,
You laugh off sums I’d break down
under,
I tell you truthfully I’ve never
Seen thirty people I think so clever.

What is a bank? Did you ever think?
A place where silver dollars clink,
A building of stone and metal cages,
And ledgers with a thousand pages,
With big steel vaults and adding ma­
chines
And pow-wows going behind the scenes,
Where balances are black and grand
If you have money left on hand,
Where crimson ink, like blood, is shed
If your account runs in the red.
It seemed that way to me for a minute
But there was something different in it.
Though it’s housed in a building tall as
a steeple
A bank like ours is built of people.

Here’s to you all. You ARE the bank,
There’s nobody but you to thank
If half the savings of our town
Are in hands capable and clean.

i)nd suddenly I saw it meant
Mr. H---------, the president
Handsome, tall and debonair
Giving the place a noble air

Battered Motorist
(waking
“Where am I? Where am I?”
Nurse: “This is number 116.”
Motorist: “Room or cell?”

But the most astounding one of all
Is Cora F, so handsome and tall.
I look at her in deep amaze
Thinking of the old High School days . .
I never knew how smart she’d be
When she was a careless kid like me.

u p):

46

Mid-Continent Banker

Indiana
O FFICER S IN D IA N A B A N K E R S AS­
S O C IA T IO N : Hugo C. Rothers, Huntingburg, President;
C. O. Holmes,
Gary, Vice-President; Forba McDaniel,
Indianapolis,
Secretary;
Jos.
W.
Springer,
Elizabethtown,
Treasurer ;
Jones, Hammond & Buschmann, Indian­
apolis, Counsel.
GROUP
C H A IR M E N :
I— Rollo
N.
Walter, LaGrange; I I — J. G. Wallick,
Elkhart; I I I — E. S. Goodrich, W in­
chester; IV — F. D. Thompson, Edin­
burg; V — C. C. Newlin, Terre Haute;
V I—
Walter Hungerford, Shelbyville ;Forba McDaniel,
Secretary
V I I — W . M. Wells, Scottsburg; V I I I
— A. J. Wedeking, Dale.

H. C. Rothert
President

Madison Bank
Opens Ne w Home.

The First National Bank of Madison,
Ind., opened its new home November
2Gth. The new bank is situated at

the corner of Main and West street on
the site of the old building. The front
and side of the building are of buff
Bedford stone with blue Bedford base.
Entrance to the main banking room

is through a large vestibule into the
public lobby, which is one of the very
attractive features of the building. In
the center of the building at the rear,
and in full view of the lobby, is the
vault, built of reinforced concrete with
walls, ceiling and roof twenty-seven
inches thick, reinforced with chrome
steel bars, placed six inches on cen­
ters, two ways.
Richard Johnson is president of the
bank; W. H. Horuff, vice-president;
Louis P. Scheik, cashier, and Joseph
F. Niesse, assistant cashier.
Ne w Bank
At Liberty.

The Farmers and Merchants’ Bank
of North Liberty, Ind., was opened for
business December 6th. Clyde A. Moor­
man is president; F. C. Fetzer, vicepresident, and Clyde Sheneman, secre­
tary and cashier.
Carl A. Ploch
Now Vice-President.

The Opening o f the

T^ewYork O ff ce
of a representative of The National Bank o f the Republic of Chi­
cago is another link in the " Republic’s” chain o f service. The new
office is located at No. i W all Street, and we cordially invite you
to make it your headquarters while in New York City.

Carl A. Ploch has been elected vicepresident of the Farmers’ Trust Com­
pany, Indianapolis, Ind. Mr. Ploch was
formerly vice-president of the Wash­
ington Bank and Trust Company and
has been succeeded there by Delmar
G. Patrick, assistant secretary.
M ulb erry Bank
Changes Name.

Because of a state law requiring the
reorganization of all state banks each
twenty years, the Mulberry State Bank,
Mulberry, Ind., has been reorganized
under the name of the Mulberry Bank
and Trust Company. The bank is
capitalized at $25,000.00. A. I. Yundt
is president and Genevieve L. Mills
cashier.
T he

116 F

e a t u r e s

If you are not personally acquainted with the length and breadth ot
"R epublic” Service, you will be particularly interested in our new
booklet— just off the press. It covers n 6 outstanding features of
our specialized service to correspondents— everything from our
loan policy on down to the act of making a hotel reservation for you
in Chicago, New York or Paris. Merely write for a copy o f “ A
Directory of Services Rendered to Correspondents.”


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

The National B ank o f the
R E P U B L I C
• •

O F

C H IC A G O

State

Bank,

A r lin g ­

A new organization to be known as

the Citizens’ Trust and Savings Bank
is being established at Mitchell, Ind.

A new bank and tru st company has

been organized at Mitchell, Ind., and
capital stock of $25,000 is already sub­
scribed.

* •

J o h n A . L y n c h , Chairman o f the B oard
D a v i d R . F o r g a n , Vice-Chairm an
G e o r g e W o o d r u f f , V ice-Chairm an
H . E. O t t e , President

© NBR 1926-13

Arlin gton

ton, Ind., has been chartered to suc­
ceed the Arlington Bank, with capital
of $25,000.00 and surplus of $10,000.00.
The officers of the institution are:
Frank Offutt, president and J. F.
Downey cashier.

Glen E. Foster, cashier of the A m e r ­

ican National Bank, Rushville, Ind.,
has been promoted to the position of
vice-president.

47

St. Louis, January, 192/

General Motors Has Larger
Number of Stockholders

HIGH

On December 11 when General Mo­
tors paid thé regular quarterly divi­
dend of $1.75 a share on the common
stock for the fourth quarter of 1926
there were 30,210 common stockhold­
ers of record, compared with 27,446
common stockholders of record for the
third quarter.
The total number of General Motors
common and preferred stockholders
for the fourth quarter of 1926 was 50,369, compared with 47,805 in the third
quarter.

Potter Now Vice-President of
Guaranty Trust Go.
W. C. Potter, president of the Guar­
anty Trust Company of New York, yes­
terday announced the appointment of
Archibald F. Maxwell as a vice-presi­
dent of the company. Mr. Maxwell is
already well known in financial circles
through his former connections here as
second vice-president of the National
Bank of Commerce, and more recently
as president of the Central National
Bank of New York.
Mr. Maxwell first entered the bank­
ing field as credit manager of the Mel­
lon National Bank in Pittsburgh. He
subsequently was assistant treasurer of
the Pittsburgh Gage and Supply Com­
pany, and came to New York in 1913 as
manager of the credit department of
the National Bank of Commerce. He
was made an assistant cashier in 1915,
and later, as second vice-president, with
an associate officer, was in charge of
the bank’s business in the New Eng­
land States and New York State. With
the organization of the Central National
Bank of New York in January, 1926,
Mr. Maxwell became its first president,
which position he now resigns to go to
the Guaranty Trust Company.

RATES

Short Term Bank Paper
Motor Lien Participating Certificates
Maturities 30 Days to 12 Months
Discount Rates 6%% to 7^4%
Payable, New York, New Orleans, Dallas, St. Louis

Guaranteed by Two Companies with Net
Assets Over $1,900,000
Ask for Circular M. B. for Full Particulars

PALM BEACH GUARANTY COMPANY
Net Assets Over $1,300,000

W e st Palm Beach, Fla.

Guaranty Building

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Q u a l i t y L ith o g r a p h e r s .

We

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in th e last

35

y ea rs

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I

M ö S rJ H M h i

Mr. Maxwell has been active in
credit circles for many years. He was
vice-president and director of the
Pittsburgh Credit Men’s Association,
and for several years vice-president and
director of the New York Credit Men’s
Association. In 1917 he was president
of the New York Chapter, American In­
stitute of Banking, and for several
years conducted a class in credits under
the direction of Columbia University.
Mr. Maxwell is a native of Daven­
port, Iowa, and a graduate of Cornell
College, Iowa. He is a charter member
of the Bankers’ Club of America, a
member of the Board of Governors of
the Pelham Country Club, and a mem­
ber of the Larchmont Shore Club.


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

B a n k e r s S a fe ty E n v e lo p e s

HECO ENVELOPE COMPANY
C h i c a g o , 111.

S ta te m e n t Envelopes

HECO — C H IC A G O

48

Mid-Continent Banker

Kentucky

R. E. Turley
President

O F F IC E R S : K E N T U C K Y B A N K E R S AS­
S O C IA T IO N :
President, R. E. Turley,
Richmond: Secretary, Harry G. Smith, 300
Louisville National Bank Bldg., Louisville;
Treasurer, J. W . Hardaway, Shepherdsville.
GROUP C H A IR M E N A N D V IC E -P R E S I­
DENTS:
I— J. D. Russell, Owensboro;
I I — M. W . Tucker, Camnbellsville ; I I I —
Matthews Hall, Shelbyville ; IV — C.
K.
Thomas, Paris; V — Jno. M. Yost, Pikeville;
V I — L. F. Brashear, Hazard; V I I — R. p,
Taylor, Winchester.

G. W . Rue
Elected Cashier.

George Welsh Rue has been elected
cashier of the Farmers National Bank
of Danville, Ky., succeeding J. Fleece
Robinson, resigned.
Mr. Rue was born in Danville, Ky.,
July 5, 1893, and was connected with
the Farmers National Bank from July,
1913, to October, 1917. He then left
Danville and became associated with
the Chicago Mill and Lumber Company.
He assumed his new duties on July 1st.
C. W . Miles
Is President.

The new president of the Farmers
Hxchange Bank of Union City, Ky..

Harry G. Smith,
Secretary

Charles W. Miles, is forty-two years old
and began his career with the Old Na­
tional Bank of Union City twenty years
ago as a clerk, being promoted later to
the position of assistant cashier. Mr.
Miles has been cashier of the Farmers
Exchange Bank for the past five and a
half years and succeeds the late Harris
Parks as president.
W . W . Peavyhouse
Elected President.

W. W. Peavyhouse, cashier of the
Comonwealth Bank and Trust Com
pany, Lexington, Ky., since its estab­
lishment last September 1, has been
elevated to the presidency of the in­
stitution to succeed Rausie Denton,

who resigned on account of failing
health.
Mr. Peavyhouse has had long experi­
ence in the banking business. Prior to
his going to Lexington he held posi­
tions as cashier of the Bank of Amsden, of Versailles, the Hargis Bank, of
Jackson, and the Perry County State
Bank at Hazard. He was also a dep­
uty state banking commissioner for
several years.
W. T. Gibson was named cashier of
the bank to fill the vacancy caused by
the promotion of Mr. Peavyhouse. He
has been connected with the bank as
assistant cashier since the bank opened.
Joseph T ra p p
Elected Cashier.

Ralph B. Threlkeld, 27, of Latonia,
Ky., has been appointed assistant cash­
ier of the Farmers’ State Bank at Alex­
andria, Ky. He takes the place of Jo­
seph 'Trapp, who has been promoted
to cashier, succeeding J. H. Blackburn,
who resigned. Mr. Threlkeld was for­
merly employed in the office of W. E.
Hunter, master mechanic of the L. &
N. Railroad at Covington.
T h e Paln ts ville Bank and T r u s t Co.,

Paintsville, Ky., has been changed to
a national Dank with capital increased
from $75,000.00 to $100,000.00.

Entering
Our
A “ Midsummer D ay” in April

New Orleans
X XV

Year of Progress

Tennis
Tennis is only one of the many year
’round sports enjoyed in New Orleans.
The courts at the tennis clubs, public
parks, country clubs, playgrounds,
schools and colleges provide the devo­
tees of the game with ample facilities for
its full enjoyment. The photograph
(above) shows Tilden and Chapin rest­
ing between sets during their exhibition
match on the New Orleans Country Club
courts April 12th, 1925.

Hibernia Bank


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

&

Trust Co.

New Orleans, U. S. A.

L IB E R T Y
IN S U R A N C E

BANK
L O U I S V I L L E

49

St. Louis, January, 1927
Dorsey Speaks
at Chicago Meeting.

Waterways were heralded as feeders
for railroads rather than transportation
rivals by F. C. Dorsey, vice-president
of the Liberty Insurance Bank of
Louisville at the recent meeting of the
Agricultural Commission of the Amer­
ican Bankers’ Association, held in Chi­
cago. Mr. Dorsey stated that railroads
are approaching the limits of their ca­
pacity and that the Mississippi River
and its tributaries could serve as use­
ful auxiliaries if properly developed.
N e w Bank
at Ludlow.

Articles of incorporation for a new
Farmers and Mechanics Bank of Lud­
low, Ky., with capital of $30,000 were
approved today by the Banking Com­
missioner. The old bank closed April
10, after a shortage had been dis­
covered in the accounts of a former
cashier, and the new institution will
take over assets of that company.

THE

Hanover National Bank
OF THE CITY OF NEW YORK
Corner Nassau and Pine Streets
ESTABLISHED 1851

C a p ita l
.
.
S u r p lu s a n d P ro fits


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

$ 5 ,0 0 0 ,0 0 0
$ 2 6 ,0 0 0 ,0 0 0

WILLIAM HAYWARD, President
E. HAYWARD FERRY, Vice-President
FREDERICK A. THOMAS, Ass’ t Cashier
HENRY P. TURNBULL, Vice-President
SAMUEL WOOLVERTON, Vice-President
WALTER G. NELSON, Ass’t Cashier
JOSEPH BYRNE, Vice-President
CHARLES B. CAMPBELL. Ass’t Cashier
JOSEPH S. LOVERING, Vice-President
WILLIAM B. SMITH, Ass’t Cashier
JAMES P. GARDNER, Vice-President
WILLIAM H. ALLEN, Ass’ t Cashier
GORDON H. BALCH, Vice-President
WILLIAM J. LOGAN, Ass’t Cashier
WILLIAM E. CABLE, Jr., Cashier
FRANK WOOLLEY, Ass’t Cashier
J. NIEMANN, Ass’t Cashier
ELTON E. OGG, Trust Manager
GEORGE E. LEWIS, Ass’ t Cashier
FOREIGN DEPARTMENT
WILLIAM H. SUYDAM, Vice-President and Manager
ROBERT NEILLEY, Ass’t Manager
FREDERIC A. BUCK, Ass’t Manager

Do business with this strong company,
which has gained a country-wide reputa­
tion as a “ National Institution of Serv­
ice.”

Two Large Cincinnati Banks
Are Merged
The Fifth-Third National Bank and
the Union Trust Company of Cincin­
nati, affiliated institutions for seven
years, enter the new year as one insti­
tution to be known as the Fifth-Third
Union Trust Company, thereby form­
ing one of the largest financial institu­
tions in the country. The capital of
the new institution is $5,000,000, sur­
plus and profits are more than $6,000,000, and total resources are more than
$90,000,000.
The formation of Cincinnati’s great­
est bank is the crowning achievement
of Charles A. Hinsch, president of both
banks, who will be president of the
united institution.
The united bank will operate under
an Ohio banking charter, with mem­
bership in the Federal Reserve Sys­
tem.
The merger will be accomplished
without any change in the personnel of
directors, officers or employes, or
without any change in the banking fa­
cilities of the present Fifth-Third-Un­
ion of Trust chain of branches.
A securities company to be known as
the Fifth-Third-Union Company, with
an authorized capital of $500,000 is to
be formed to conduct the bond and in­
vestment business heretofore handled
by both banks.
A third corporation, to be known as
“ The Fifth-Third-Union Safe Deposit
Company,” with an authorized capital
of $500,000, is to be formed to operate
the safe deposit business of the banks
and the branches.

.
.

The Federal Surety Company is managed
by experienced underwriters, and has
from its conception built for STRENGTH
rather than size.
Backed by Federal Service, these lines
are written— Accident and Health, Auto­
mobile, Burglary, Plate Glass, Public
Liability and W orkm en^ Compensation
Insurance, and Surety Bonds.

F E D E R A L SU R ETY COM PANY
C A S U A L T Y IN S U R A N C E

SURETY BOND S

W. L. TAYLOR, Vice-President and General Manager
H O M E O F F IC E

D A V E N P O R T , IO W A

BANK OF NEW SOUTH WALES, AUSTRALIA

Paid-Up Capital $30,000,000.00
Reserve Fund - 23,750,000.00
Reserve Liability of
Proprietors - 30.000,000.00
$83,750,000.00

e s t a b l is h e d

isiy

Head Office«

G E O R G E S T ., S Y D N E Y ,
New Sou th W ales
London Office:

TH READ N EED LE S T .,
E. C.

S h 's e p t^ T S } $410,975,720.00

OSCAR LINES, General Manager

431 Branches and Agencies in all A u stralian States, New Z ela n d , F i ji ,
Papua, M an dated Territory of New G u in ea and London
A u s tr a lia
Population, 6,000,000; Area, 2,974,581 square miles; Sheep, 80,110,000; Cattle, 14,350,000;
Horses, 2,400,000; Imports, $785,500,000; Exports,$805,600,000.
A n n u a l V a lu e o f A u s tr a lia ’ s P ro d u c ts
Agricultural, $405,625,000; Pastoral, $514,215,000; Dairying, $210,559,000; Mining, $111,159,500;
Manufacturing, $1,742,888,000; Total, $2,984,446,500.
FO REIG N BILLS C O L L E C T E D —Cable remittances made to, and Drafts drawn on Foreign
places D IR E C T . 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 L D .

S t. Louis A g en ts: N A T IO N A L B AN K OF C O M M E R C E

50

Mid-Continent Banker

A rk a n sa s N otes
L it tle Rock Bank
Has Splendid Growth.

The recent statement of condition
of the Federal Bank and Trust Com­
pany of Little Rock, Arkansas, shows
total resources of more than $2,266,600.
The bank, which was organized about
two years ago, now has more than
4,000 checking accounts and approxi­
mately an equal number of savings ac­
counts. It has just paid out $72,000
to the 2 300 members of its first Christ­
mas Savings Club.

Bank of Sherr ill
Opens for Business.

Ne w Bank
At Jonesboro.

The new Bank of Sherrill, Arkansas,
celebrated its formal opening recently.
Visitors from Little Rock, Pine Bluff
and surrounding cities and towns at­
tended. A program of music was ren­
dered and refreshments were served.
The bank building is constructed of
pressed brick and is 30x60 feet. It is
two stories high.
J. M. Barrett is president of the
bank, and W. I. Payne is vice-presi­
dent. The directors are: J. M. Bar­
rett, Jr., L. M. Quartelbaum, L. W.
Quartelbaum, P. Mitchell and Joe
Nickels. A. R. Merrett is cashier.

A charter has been legally granted
for the opening of a new banking
house in Jonesboro, Ark., the Arkan­
sas National Bank, with $100,000.00
capital and $10,000 surplus. The new­
ly organized company will replace the
First National Bank, which closed its
doors last summer.

Continuous Contacts—
at Your Service
in Memphis

Add T ru s t
Depa rtm e nt to Bank.

Addition of a trust department to
the Federal Bank and Trust Company,
Little Rock, Ark., has been announced
by Thomas R. Ashcraft, vice-president
and executive officer.
John R. Fletcher, who has been vicepresident and real estate loan officer,
has been elected trust officer in addi­
tion, and will have charge of the new
department.
T he Citizens State Bank of Monette,

Ark., was organized December 1st
with capital stock of $50,000.00. L. W.
Finch is president; John V. Hancock,
vice-president, and Robert Braden,
cashier.
W.

E ve ry business day since its founding

A.

Easterling

has

resigned

as

cashier of the Farmers and Merchants’
Bank of Huntsville, Ark.

in 69, the U & P h as been serving its
custom ers locally and out of town w ith­
out a m om en t s interruption by epidem ­
ics, natural disasters or economic dis­
turbances.
W e try to provide correspondent service
in the T r i-S ta te Region
its speed,

as unique in

accuracy and usefulness as

is our record of continuous operation—
which is unique in M e m p h is .

C.

E. Causey is now cashier of the

Bank of Tyronze, Ark., succeeding
Jerry Young, who resigned.
The

Cotton

Belt

Bank',

and

T ru s t

Company, Pine Bluff, Ark., has begun
business as the successor of the Cotton
Belt Savings Bank. C. C. Handley is
the new president.
H.

F. Grigsby of

L it tle

Rock,

Ark.,

for the last five years connected with
the state banking department, has be­
come associated with the Exchange
Bank and Trust Company, El Dorado,
Ark., as vice-president.
T h e new home of the Security Bank

'tKti

^3 js I'.ia's

B S S n & P lan ters
Il b : E3 Bs a s


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

Ü TRUST COMPANY
E 5_ï S e e s B i

: | ifi| L

Forward with MemphisSince ’ 69
MEMPHIS

and Trust Company, Paragould, Ark.,
situated at the corner of Pruet and
Court streets, has been formally opened
to the public. It has been completed
at a cost of $75,000.00.
F. G^ M c N air, who w ill be the execu­

tive head of the new Arkansas Na­
tional Bank, Jonesboro, Ark., has re­
turned from Washington, where he rep­
resented the bank at the granting of
the charter by the comptroller.

TENNESSEE
The

Bank of Sherr ill,

Arkansas, has

moved into its new $15,000 modern
bank building.

51

St. Louis, January, 1927

Tennessee Notes
E. C. Buchanan
Elected Cashier.

W. H. Roden, cashier of the Meigs
County Bank, Decatur, Tenn., has re­
signed to become manager of the Bluff
City Bank at Bluff City, Tenn., a branch
of the Bank of Bristol, Tenn. E. C.
Buchanan, former assistant cashier,
has succeeded Mr. Roden at the Meigs
County Bank, and E. W. Culvahouse
has been elected assistant cashier.
G. W. Venten
Elected President.

In the reorganization of the Farmers
Bank, Portland, Tenn., George W. Yenten has been elected president to suc­
ceed R. D. Moore, who resigned. R.
W. Enders, who has been cashier, will
continue to act as the executive in ac­
tive charge. The bank’s capital has
been increased from $15,000 to $25,000.

S. P. W i t t
Elected President.

Sterling P. Witt, formerly president
of the People’s Bank of Lenoir City,
'fenn., has been elected president of
the newly formed Ridgedale Savings
Bank of Chattanooga, Tenn.
J.

N.

Fisher,

president of the

City

National Bank of Morristown, Tenn.,
has resigned.
The

City

Bank

and

Trust

Co.,

Mc­

Minnville, Tenn., has moved into its
new home.

The Foreman Banks Take On
Additional Space
The Foreman Banks of Chicago
have taken on additional space by ac­
quiring the entire main floor of the
Andrews building, which adjoins the
bank to the west on Washington street,
an entrance having been made connect­
ing the new banking room with their
present quarters. This additional space
measures 60x180, the largest part of
which will be occupied by the Real
Estate Loan Department. Business
was not disrupted during the moving
and the new room was opened Monday
morning, December 6.

T he Bank of Adams, Tenn., has pur­

chased the People’s Bank and Trust
Company of Adams.

Three removes are as bad as a fire.—
Franklin.

Start W o rk
On N e w Building.

Construction work on a new home
for the Bank of Strawberry Plains,
Tenn., has been started. The building
will be of brick construction, with the
entire lower floor to be occupied by
the bank, and the upper story to be
designed for professional and business
offices. The cost will be $7,500.
T h u r m a n Smith
Elected President.

Thurman Smith, cashier of the Un­
ion Bank of Pulaski, Tenn., was elected
president, and Edward Russell, cashier
of the Farmers and Merchants Bank,
Centerville, Tenn., secretary, of Group
Six of the Tennessee Bankers Associ­
ation.
Purchases Stock
In C la rk s v ille Bank.

The majority of the stock of the
Northern Bank of Tennessee, Clarks­
ville, Tenn., has been purchased by
Emery Kimbrough, the president of the
First Trust and Savings Bank. Most
of the stock was owned by out-of-town
interests.
Mr. Kimbrough will con­
tinue as president of the First Trust
and Sterling Fort as head of the
other institution.

Our fifty-fifth year begins and finds us still the M idSouth’s highest capitalized and most resouceful bank

Ba n

k ° fC o m m e r c e
and t r u s t C o m p a n y
M E M P H IS

J. E. Ca ldwell
Elected President.

James E. Caldwell, president of the
Fourth and First National Bank of
Nashville, Tenn., has been elected
president of the Nashville Trust Com­
pany to succeed the late William Nel­
son.

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

CAPITAL, SURPLUS AN D U N D IVID ED
$ 5 , 0 0 0 , OOO. OO

Safety Pay Envelopes

HECO

C H IC A G O

NEED

P R O F IT S

ENVELOPES? W rite

HECO — C H IC A G O

52

Mid-Continent Banker
Bank & Trust Company. The bank
will erect a branch bank building there.

Louisiana

Bank Issues

OFFICERS LOUISIANA BA N K E R S AS­
SO C IA TIO N : P r e s i d e n t — Travis
Oliver, Monroe; Vice-President—W . P.
Connell, Baton Rouge; Secretary—J. C.
Barry, Lafayette; Treasurer — W . J.
Mitchell, New Orleans.

Travis Oliver, President

E X E C U T IV E C O M M IT T E E : L. O. Brous­
sard, Chairman, Abbeville; Leon Haas,
Opelousas; A. W . Watson, Natchitoches,
G. F. Provost, Mansfield: W . P. O’Neal,
New Orleans: T. J. Labbe, St. Martinville; Travis Oliver, Monroe: W . D.
Haas, Alexandria.
GROUP C H A IR M E N :
“ A ” J. P. Sealy.
Shreveport; “ B ” Jas. A. Christian, Pineville; “ C ” E. E. Soulier, Lafayette; “ D ’ ’
E. G Davis, Baton Rouge.

John P. M cK ean
Elected Director.

Foreign News Letter.

J. C. Barry, Sec’y

T he W h i tn e y Ce ntral

National Bank

of New Orleans, La., has purchased
$500,000 of the $1,250,000 Bay-Waveland seawall bond issue for improve­
ments on the New Orleans Gulf Coast.
The premium paid was $5,000. They
will bear interest of 5% per cent.

At a meeting of the Board of Di­
rectors of the Bank of Commerce and
Trust Co., Mansfield, La., held Decem­
ber lltli, John P. McKean, of Alexan­
dria, La., was elected a director, filling
a vacancy which occurred some months
ago.
Mr. McKean is well known through­
out North Louisiana. For many years
he was the traveling representative in
that section for Rice-Stix Dry Goods
Company, St. Louis, but has more re­
cently devoted his full time to his own
extensive interests. He has been a
stockholder of the Bank of Commerce
and Trust Co.
Mr. McKean is one of the partners of
Lee-Baker Dry Goods Co., Shreveport,
which operates mercantile establish­
ments at Merryville, La., Bel, La., and
De Queen, Ark., and owns the Red
Cross Drug Store in Alexandria.

The

Bank

of St.

Bernard,

La.,

has

let contract for the erection of a build­
ing to house their branch bank at St.
Cloude avenue near Angela street.
F. J. Dunkerley, vice-president of the

Mexico City Banking Corporation, died
in New Orleans recently.
H e n ry

P.

Gibbens, until

recently assist.

Ham­

ant cashier of the Bank of Baton
Rouge, La., has resigned to become
organizer of the Baton Rouge Securi­
ties Co.

mond, La., has purchased the assets of
the First State Bank & Trust Com­
pany.

changed its name to the St. Bernard

T he

Hamm ond

ix k

:

ix x i

S ta te

Bank,

ix k :

ix k

:

T he

ix k

:

F. A. A. M id-Year Meeting,
New Orleans, March 10
The mid-year conference of the
Financial Advertisers Association will
be held in New Orleans, March 10, 11
and 12, 1927. This conference will be
attended by officers, directors and as­
sociation representatives on the Na­
tional Advertising Commission. One
of the matters of business that will
come before this conference will be
the selection of the 1927 convention
city and the dates of that meeting.

Greenberg, a director of the

First State Bank and Trust Company,
Bogalusa, La., died recently. His place
on the Board of Directors has been
filled' by Elias Berenson.
S.

The Hibernia Bank & Trust Company
has just issued the second number of
its new monthly foreign news letter,
“Foreign News and Comments.” The
aim of the new publication is to give
brief but reliable information concern­
ing business conditions, in addition to
a monthly discussion of some outstand­
ing foreign trade subject.
The first issue contained an article
on “The Decline of the Franc” and the
second issue contained a discussion of
the “ German Internal Debt.”

Bank

of St.

Bernard,

La.,

has

IXiC

"«y

Spring A . B. A . Meeting to Be
Held at H ot Springs
The spring meeting of the A. B. A.
will be held at Hot Springs, Arkansas,
the first week in May. Headquarters
will be at the New Arlington Hotel.
Two hundred and twenty-five rooms
have been reserved at the hotel.
Greens fees will be waived on both
golf courses, but a charge of 75 cents
will be made for two-mile round trip
to the country club.
Site

:x*c

:x*c

IXJC

**2

X

W . J. P ILL O W , Cashier
A. J. C R O ZAT, Assistant Cashier
G. J. F R U T H A L E R , Assistant Cashier
W . N. LOUQUE, Assistant Cashier
W . D . K IN G S T O N , Trust Officer
R .W . B R A D Y , Ass’t-Mgr.ForeignDept.

L. M . POOL, President
J. A. B A N D I, Vice-President
W . T. M A R F IE L D , Vice-President
JOHN D A N E , Vice-President
F R E D BRENCHLEY,Vice-President
W . P. O ’N E A L, Vice-President

T h e M arin e B an k & Trust C o m p a n y

E=<

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

NEW ORLEANS, LA.

R esou rces O v er Thirty M illion D ollars
ACC O UN TS OF B A N K S A N D B A N K E R S IN V IT E D
YO U R IN TE R E STS W IL L R E C E IV E PER SO NAL A T T E N T IO N OF OUR O FFICERS

3<x:

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zxjc

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:xk:

IX X I

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:x k =£S

53

St. Louis, January, K )2j

Mississippi
Leo

Percy,

pla n te r

Notes
of

The

Greenville,

Miss., was re-elected Class B director
of the Federal Reserve Bank of St.
Louis by the member banks in Group 3.

W hitney-Central Banks

Rex Cannon, assistant cashier of the

Bank of Franklin, Meadville, Missis­
sippi, has resigned. He has accepted
an appointment as cashier of the Bank
of Clinton, in Clinton, Miss.
John

H.

Salmon,

org anizer

of

the

First National Bank of Pontotoc, Miss.,
and its president since that time, died
recently.
W arren

Potts,

pro minent

New Orleans, La.

We invite correspondence regarding the
far-reaching service we have to offer.

C a p i t a l and S u r p l u s , $ 6 ,6 0 3 ,0 0 0 .0 0

business

man of Kosciusko, Miss., has been
elected president of the Merchants and
Farmers Bank there, succeeding W.
B. Potts.

Announce Formation of New
Securities Company
Stone & Webster, Inc., and Blodget
& Co., announce the formation of a
new company under the name of Stone
& Webster and Blodget, Inc. The com­
pany begins operations on January 1st,
1927, with an authorized capital of
$10,000,000.
The corporation is a combination of
the securities department of Stone &
Webster, Inc., and the old investment
house of Blodget & Co. The engineer­
ing and construction, management and
investigating departments of Stone &
Webster, Inc., are not included and
will not be affected by the combination.
The consolidation follows the trend of
amalgamation in other fields, being
one of the first of importance in the
investment banking business.
Bayard F. Pope, now a partner of
Blodget & Co., will be president of the
new corporation. Other officers and
the directors will be drawn from both
the participating companies, all the
present partners of Blodget & Co. be­
ing officers of Stone & Webster and
Blodget, Inc.
The head offices of the new company
will be at 120 Broadway, New York
City.

(C^
£>© I
Capital
Surplus
Undivided
Profits
$3,500,000

j

0
Faithfully serving the needs of
Industrial St. Louis for the past 65
years, qualifies this bank to e x ­
tend its depositors experienced
financial co-operation.

The Merchants Laclede National Bank
of St. Louis

Negotiations Continued.

undersized Italian was married
to a strapping German woman. Recent­
ly he received a blackhand letter which
read: “If you don’t give $1,000 to our
messenger, who will call Sunday for
it, we will kidnap your wife.”
He replied promptly: “I don’t have
the $1,000, but your proposition inter­
ests me greatly.”—Pitt Panther.
An


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Federal Reserve Bank of St. Louis

3 New Features: 2.6.6% greater

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54

Mid-Continent Banker

Oklahoma

Notes

T w o H e n ry e tta
Banks are Merged.

The American Exchange Bank and
the People’s National Bank of Henry­
etta, Okla., have been merged under
the name of the American Exchange
Bank. K. V. Lucas is cashier and J.
T. Haymon active vice-president.
P. W . Samuel
Sells Bank Interest.

P. W. Samuel, active vice-president
of the Vinita National Bank, Yinita,
Okla., has disposed of his holdings to
his associates in the bank and has re­
signed. J. W. Ratcliff, the former as­
sistant cashier, was elected active vicepresident by the board to succeed Mr.
Samuel.
D r u m rig h t Bank
Remodels Building.

Dr. S. E. Mitchell

Chester Gates

Elected President.

Goes to Seminole.

At a meeting of the directors of the
First National Bank of Stigler, Okla.,
J. M. Duke resigned as president. Dr.
S. E. Mitchell was elected president to
fill the vacancy caused by Mr. Duke’s
resignation.

Chester Gates, assistant cashier of
the Drumright State Bank, Drumright,
Okla , has resigned to take a similar
position with the First State Bank of
Seminole, Oklahoma.

Central Na tional
Establishes T ru s t

all the bank stock formerly owned by
Judge C. B. Ames in the American Na­
tional Bank, Oklahoma City, Okla. The
consideration was $250,000.00.

General

Kenneth

Officers and directors of the Drumright State Bank, Drumright, Okla.,
have decided to have the present build­
ing now occupied by them enlarged,
and are now at work extending the
building to the rear in order to make
more room for the business of the in­
stitution.

Department.

The Central National Bank, Okmul­
gee, Okla., has established a trust com­
pany. The new department, in charge
of T. R. Marshall, assistant cashier, is
ready to function now. The officers
are: D. M. Smith, chairman of the
executive committee; H. E. Kennedy,
president; Senator W. B. Pine and T.
J. Baker, vice-presidents; H. E. Per­
kins, cashier, and Sam D. Morrow, T.
R. Marshall, E. A. Henley and R. L.
Robe, assistant cashiers.

W illia m s on

has

been

pro­

moted to the position of assistant cash­
ier in the First National Bank, Guymon, Okla.
W ilb u r

J.

Holleiman

has

M.

Meek,

who

has

been

active

vice-president of the Security National
Bank of Duncan, Okla., has sold his in­
terests in that institution to L. L.
Humphreys and associates.
T he

Bank

of

Meeker,

Okla.,

Richard A. Raborr president

of

The

Exchange

National

Bank, Pauls

Valley, Okla., has moved to its new
building.

READ THE

EVERY M ONTH

You Will Find:

Room, private toilet - - $2.50
Single Room with bath - 3.50

{

Double Roomwith bath - 5.00

The location is unique:
Subway, elevated, street cars, buses,
all at the door
Finest parking space in the city

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

the

First State Bank, Kinta, Okla., died re­
cently.

M. P. MURTHA, G e n era l M a n a g er

The NEW fourteen-story fireproof structure containing
every modern convenience and “ Servidor” service

has

moved into its new brick home, which
has just been completed on the corner
of Main and Fowler streets.

succeeded

Thomas H. Owen as trust officer and
general counsel for the American Na­
tional Bank, Oklahoma City, Okla.

n f i T E I E M D ID 17 Broadway al Sixty-Third
n U l C L Lilli t i l l Li Street NEWYORK CITY

M.

Roy Hoffman has purchased

— News of Ranks and Rankers.
— Legal Decisions and Free Legal Service.
— Investment News.
— Successful plans for increasing deposits, ad­
vertising your bank, co-operating with the
farmer and creating public good will.
— Discussions of Rank Problems by practical
bankers.

(This Coupon Brings Your First Issue)
M ID -C O N T IN E N T BAN K ER
408 Olive Street, St. Louis, Mo.

Date..............................

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

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

55

St. Louis, January, 1927
E. L Bacon

Kansas

Notes

Elected Cashier

After serving 17 years as president
of the People’s State Bank at Baldwin,

Org anize New
A. I. B. Chapter.

The bankers of Montgomery County,
Kansas, have organized the Mont­
gomery County Chapter of the Amer­
ican Institute of Banking, with the fol­
lowing persons as officers: R. H.
Shaw, People’s State Bank, Cherryvale,
president; E. E. Boys, Independence
State Bank, Independence, vice-presi­
dent; Amy V. Sevier, First National
Bank, Coffeyville, secretary, and G. E.
Cutler, Commercial National Bank, In­
dependence, treasurer.
F. S. Wettack, who has been admit­
ted to the bar, and is cashier of the
First National Bank, Coffeyville, was
chosen as instructor of the class.
N e w Bank
A t Glendale.

W.

B.

Lowrance, w ide ly

known

To­

peka attorney, has been elected to mem­
bership on the board of directors of
the Farmers National Bank of Topeka,
Kansas, succeeding J. E. Yingling, who
has resigned.
T he

Langdon

Better Bank Buildings
TH E J .H . W IS E C O N ST R U C T IO N C O M P A N Y
Manufacturers of Complete Interior Equipment

Engineers

State

Bank,

:

Designers

:

Constructors

SYNDICATE TRUST BUILDING

THE

Carl T. Johnson, who was cashier
of the Falun State Bank until he went
to California a few years ago, is to be
cashier of the American National Bank
of Glendale, Kansas, which is being
organized and will open for business
February 1. The bank will start with
a capital of $200,000 and a surplus of
$40,000. A new building will be erect­
ed for the bank on a prominent corner
in Glendale.

Kansas, J B Ross has sold his bank
stock to E L B'acon of Arnett, Okla,
who has assumed his duties as cashier
of the bank. F. M. Hartley, Baldwin
lumberman, who holds a block of the

Established 1856

ST. LOUIS, MISSOURI

NATIONAL PARK
of NEW YORK

BANK

214 BROADWAY
Uptown Offices:
Park Avenue and 46th Street : Seventh Avenue and 32nd Street
DIRECTORS
Charles Scribner
Richard Delafield
Francis R. Appleton
Cornelius Vanderbilt
Gilbert G. Thorne
Thomas F. Vietor
John G. Milburn
William Vincent Astoi

Joseph D. Oliver
Lewis Cass Ledyard, Jr.
David M. Goodrich
Eugenius H. Outerbridge
Kenneth P. Budd
John H. Fulton
Frank L. Polk
Benjamin Joy

Banking in all its branches

Commercial and Travelers’ Credit issued; Correspondents in all
principal Cities in the World. Foreign Exchange bought and sold.
Corporate and Personal Trusts; Safekeeping of Securities; Collection
of Income. Investment Service for Customers. Safes in our SafeDeposit Vaults at moderate rental.

Capital, Surplus and Undivided Profits $34,000,000

Langdon,

Kansas, is erecting a modern banking
building, which will be ready for oc­
cupancy soon.
James Johnson has resigned as pres­

ident of the LaCrosse State Bank, La­
crosse, Kansas, and A. D. Wilson has
been elected to fill the vacancy.

ifflL

The Best Bank for Yout
Is one whose ability to serve covers every
branch o f high class finance and where
each department is officered by a skilled
executive who is a specialist in his line.

T he Saxman State Ba nk is to be re­

organized at once and the bank reop­
ened, according to W. H. Hall, cashier
of the institution.
The

F a r m e r s ’ State

Bank

of

Vine-

land, Kansas, has merged with the
People’s Bank of Baldwin, the institu­
tion continuing under the management
of the Baldwin bank.

W.

M. Lukens has succeeded Dr. E.

N. Daniels as president of the Guaran­
ty State Bank, Beloit, Kansas.

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Federal Reserve Bank of St. Louis

The American is such a bank and, as such,
invites your business.
cAnother reason why
you should bank here

" A Greater Bank f or Greater Nashoille”

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56

Mid-Continent Banker
perfected. The new institution has
opened for business in the building
owned by the People’s Bank. R. A.
Barry is president; John C. Russell,
vice-president; Edward G. Rolwing,
second vice-president, and H. A. Coon,
cashier.

s so u r 1
OFFICERS M ISSOUR I B A N K E R S A S­
SO C IA T IO N : President, W . W . Pollock,
Mexico; Vice-President, Edward Buder,
St. Louis; Secretary, W . F. Keyser, Sedalia;Treasurer, E. B. Jacobs, Carthage.
GROUP C H A IR M E N : 1—W . C. Brown,
Macon; 2—O. H. Moberly, Harris; 3—G.
L. Wilfley, Maryville; 4—W . H. Erwin,
Urich; 5—C. A. Eaton, St. Louis; 6—
Henry Stocks, Malden; 7—C. W . Moody,
Springfield; 8—W . H. Waters, Jr., Jasper.
W . W . Pollock, Pres.

W . F. Keyser, Secretary

T w o Charleston
Banks Consolidate.

Consolidation of the Farmers


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Federal Reserve Bank of St. Louis

Ne w Bank
At Macon.

Ex-

change Bank and the Peoples Bank of
Charleston, Mo., under the name of
the People’s Exchange Pank, has been

Announcement has been made of the
formation of a new financial concern
in Macon, the Security Trust Company
of Macon, which has opened its doors.
Albert F. Smith, who for the past
three and a half years has been secre­
tary of the Rubey Trust Company, is
president of the new organization.
Judge N. M. Shelton is vice-president.
William C. Brown, who was assistant
for the Rubey Trust Company for
many years, is secretary and treasurer
of the new company.
T w o Chula
Banks Merge.

Announcement has been made of the
merging of the Bank of Chula and the
Farmers and Merchants’ Bank, the
latter taking over the other institution
by order of the officers and directors
of the Bank of Chula.
S. H. Davis
Elected President.

Th e M ississippi V alley
T ru st C om p a n y
H as F inanced Projects
in N early E very
State in the U nion
DG^oa

A p p lica tion s for Large
Loans on Im proved
Property
are Solicited
M lS S IS S iP P / lfiL lL E Y lh U S T
F o u r th

S. Hunter Davis has been elected
president of the Park National Bank,
Kansas City, Mo. Prior to his election
Mr. Davis was in the investment and
real estate loan business in Kansas
City for the past fifteen years.
Sells Stock
In Ne ttleton Bank.

Ellsworth Mackey, cashier of the
Nettleton Bank, Nettleton, Mo., has
sold his stock to Prof. Earl Teegarden,
a teacher in Kidder Institute. Mr.
Teegarden succeeds Mr. Mackey as
cashier.
Cameron Bankers
Elect Officers.

The bankers of Cameron, Mo., have
perfected an organization. R. C. A n
derson of the First National is presi­
dent; E. G. Urban of the Farmers
Bank, secretary, and Elbert Crawford
of the Cameron Trust Company, treas­
urer.
M artha s v ille Bank
Elects Ne w Officers.

O. E. Dickmann has been elected
cashier and Edwin R. Kienker assist­
ant cashier of the Savings Bank of
Marthasville, Mo. Mr. Ordelheide, the
present cashier, will soon take up his
work as county collector.

57

St. Louis, January, 1927
Rex C la rk
Elected Cashier.

Rex Clark has been elected cashier
of the Bank of Hollister, Mo., to suc­
ceed C. W. Moore. Mr. Clark began
his banking experience with what is
known as the American Southern
Trust Company of Little Rock, Ark., in
the year 1913 and stayed with them
until 1924 when he resigned on account
of ill health. He received his gradua-

“ ROLL of HONOR” BANKS
in MISSOURI
It is an honor to be listed among the Honor Roll banks.

It

indicates that the bank has surplus and undivided profits equal to
or greater than its capital.

Such distinction is accorded to the

banks listed on this page.

By careful management and sound

banking they have achieved this enviable position.
The banks will be especially glad to handle any collections,
special credit reports or other business in their communities which
you may entrust to them.

Correspondence is invited.
Surplus

City

Bank

tion certificate from the American In­
stitute of Banking in 1921, and for
three years was a teacher of the ele­
mentary banking class of this organ­
ization. Mr. Clark is thirty-two years
old and for the past year has been
connected with Henry L. Doherty & Co.
Revere Bank
Elects Ne w Officers.

At a special meeting of the board
of directors of the Bank of Revere,
Mo., Mr. and Mrs. Jacks resigned as
directors and cashier. Jesse Thomp­
son has been elected cashier of the
hank and C. E. Lucas a director.
Charles B. Linville, Jr., has been ap­

pointed assistant cashier of the Bank
of Edina, Mo.
T h e Union Savings Ba nk of Monroe

City, Mo., has been granted a charter
with a capital stock of $60,000.00.
“I had rather talk of saving pennies
and save them than theorize in millions
and save nothing.”—President Coolidge.
Religion is the eldest sister of philos­
ophy; on whatever subjects they may
differ, it is unbecoming in either to
quarrel, and most so about their in­
heritance.—Landor.


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

and Profits
$

10,000

Agency.............

Farmers Bank.................................$

10,000

Augusta...........

Bank of Augusta........................

26,000

Bigelow ...........

Bank of Bigelow ........................

20,000
10,000

Cameron.......... ...First National.............................

50,000

55,000

Clinton................ Citizens Bank...............................
Columbia......... Boone County Trust Co........
Rex Clark

Capital

12,000

25,000

33,750

75,000
50,000

200,000
20,000

Concordia

Concordia

Dalton

Bank of Dalton..........................

10,000

Everton............ Bank of Everton........................
Bank of Farmington...............

25,000

55,000

50,000

125,000

Savings....................

Farmington

52,000

Gilman City.... ... Gilman Bank...............................

25,000

30,000

Bank of Hardin...........................

75,000

87,000

20,000
Hayti .............. ...Bank of H ayti.............................
10,000
Iron County Bank....................
Ironton
100,000
Miners Bank................................. ...
Toplin.
Kansas City.... ...First National............................. ... 1,000,000

26,471.82

Hardin

21,000
175,000
3,470,000

Lebanon........... State B a n k ....................................

30,000

35,000

Maitland........... ...Peoples Bank...............................
lMeosho
First N a tio n al.............................

20,000

35,000

50,000

85,000

Bank of Odessa...........................

50,000

75,000

Peoples Bank...............................

25,000

50,000

10,000

27,000

Odessa
Perry.................

Raym ore.......... ...Bank of Raymore......................
St. Joseph........ ...First Trust Co........................... ...
St. Louis........... .. Jefferson B a n k .......................... ...

100,000

143,334

200,000

252,000

St. Louis........... Mercantile Trust Co................. ... 3,000,000
100,000
Citizens N ation al...................... ...

8,096,642

Sedalia

290,000

South Gifford.. ..Bank of Gifford...........................
Bank of Sullivan........................
Sullivan

10,000
10,000

82,000

First N a tio n al.............................
Steelville
Stover................ ..Stover Bank..................................

25,000

30,000

15,000

22,000

Tarkio............... ...Farmers B a n k .............................

20,000

32,000

T roy

Peoples Bank................................

50,000

115,000

Union..............

Bank of Union..............................

15,000

42,000

W a lk er.............. ..Farmers Bank.............................

10,000
100,000

146,900

40,000

60,000

W ellston

First N ation al...........................
W in d sor........... .. Citizens Bank..............................

14,900

12,000

58

Mid-Continent Banker

Sale of

MODERN BANK;
I FIXTURES i
\

■

!
;
\
\
■
■
■

M arble and Bronze Cashier
and Lobby Counter Fronts,
M ahogany Partitions and
Birch Counters, 8 cashier
cages and 75 ft. officers and
departm ent space. Owned
and for sale February 1st,
1927, by

M erger Creates W orld's
Largest Trust Company

rpH E American Exchange Irving Trust
-*- Company, representing a union of
the Irving Bank and Trust Company
and the American Exchange-Pacific
■
Bank, opened its doors for business at
■ its twenty-five banking offices through­
out Greater New York on December 13.
;
This institution, by virtue of the con­
\
solidation which became effective at the
.
■ close of business on December 11, takes
rank, in point of total resources, as the
■
\ third largest bank in New York City
I
and the largest trust company in the
world.
Its resources exceed $600,000,000, and its capital investment is
approximately $60,000,000, of which $32,X)00,000 represents capital and $28,000,000 surplus and undivided profits.
Lewis E. Pierson and Harry E. Ward,
■
chairman and president, respectively, of
the Irving Bank and Trust Company,
continue to hold those positions in the
continuing institution. Lewis L. Clarke,
formerly president of the American Ex­
change-Pacific Bank, is chairman of the
Executive Committee. There are three
vice-chairmen of the Board—Alexander

i Kokomo Trust j
Company
j
KOKOM O, INDIANA

■ 2.6.6% greater size in
Reed’s Mass^magazine
Plan for 192,7, but no in­
crease in price.
See it fo r yo u rself.
A MAGNIFICENT N EW H O T E L
4 0 0

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$3 —andup For One Person
$A~andup For Two Persons

g ^ /N E W Y O R K

W E S T 4 5 ^ STREET
Just East of Broadw ay

Times Square
Heart of

theatrical and Shopping District

Advertise
in the
Mid-Continent Banker

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

Lincoln Trust & Savings
Opens New Building
The Lincoln Trust and Savings Bank
of Chicago has recently issued a very
attractive booklet commemorating the
thirteenth anniversary of the bank and
the opening of the new bank building
at Lincoln avenue and Irving Park
boulevard.
The booklet describes the growth of
the bank and tells of the services of
the different departments and of the
new building.
The new building has a frontage of

Gilbert, of the former Irving, whose ac­
tive banking career covers more than
sixty years, and Walter H. Bennett and
Theodore H. Banks, both of whom were
vice-presidents of the American Ex­
change-Pacific.
The new Board of Directors of forty
members not only reflects the commer­
cial character of the business of the
two consolidated banks; it also typifies
the close co-operation between banking
and commercial enterprise that has
been one of the striking developments
of the last quarter-century. Many dif­
ferent classes of commercial, financial
and industrial activity are represented
by the Board’s personnel.
The work of transforming the Irving
and the American Exchange-Pacific into
the American Exchange Irving was ac­
complished in an astonishingly short
time. Between the close of business on
Saturday and the opening on Monday,
every outward evidence of the consoli­
dating institutions had disappeared
from all the banking offices.
137 feet on Lincoln avenue and 139
feet on Irving Park boulevard, with
entrances on both streets. The ex­
terior of the building is of Gothic de­
sign with a facing of Bowling Green,
a stone which becomes a purer white
with age. The spacious lobby of the
bank is flooded with daylight and its
beauty is enhanced by a multi-colored
dome.
Officers of the institution are: O.
B. Conklin, president; E. T. Behrens,
vice-president; H. O. Anderson, cash­
ier, and U. M. Foerster and B. J. Malburg, assistant cashiers.

59

St. Louis, January, 1927

Happy New Year!
R e s o lv e d : T h at all through 1927 we will continue

to be im m ensely useful to our correspondents.

(ornm erceyrust (ompany 2
Capital and Surplus 8 Millions
K A N S A S C IT Y

When your customers have

contracts payable in New York funds
UCH

S

occasions call for the services oi a N ew

Y ork correspondent with wide commercial ex­

perience. T h e Seaboard is chiefly a commercial bank.
Its varied experiences cover many years.

THE SEABOARD N ATIO N AL BANK

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

o f the City o f N ew York
MAIN

OFFI CES:

BROAD

AND

BEAVER

STREETS

C o rre s p o n d e n t B a n k s

Throughout the United States
Praise Our Free Advertising Service
Scores of complimentary letters have been
received from “Commerce” correspondents
throughout the nation, telling of the great
value they are deriving from our Advertis­
ing Service, which was organized a little
more than a year ago to furnish free copy
and other helps to patrons. Excerpts from a
few of these letters are published below:

A rkansas
“ W e are making rather free
use of the advertising material
you are sending us. W e find it
helpful and appreciate the
opportunity o f thus availing
ourselves o f this high class

C a lifo rn ia
“ I want to let you know how
much we appreciate your ad­
vertising copy. W e have been
using it three times a week in
our local papers and have re­
ceived a great deal of favorable
comment on these advertise­
ments. Personally, I think they
are super-excellent.”

G eorgia
“ Your A d v e rtisin g Service
Departm ent is to be highly
congratulated on the character
of advertisements gotten out
and it is indeed a privilege to
be numbered among your cor­
respondents.”

Illin o is
“ W e wish to thank you for the
special newspaper copy you
are sending us each week and


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Federal Reserve Bank of St. Louis

w ish to assure you we are
using it e x clu siv ely in our
advertising.”

Iow a
“ W e are today in receipt of
a n o th er lo t o f n ew sp a p er
copies put out by your adver­
tising department. W e think
them peppy and to the point.”

Louisiana
“ Your advertising is very use­
ful to us for our local papers
and w e want to express our
appreciation.”

M ississippi
“ W e deeply appreciate your
service and the high tone of
the advertisements. W e have
received many favorable com­
ments from the subject covered
and the excellent quality of
each advertisement.”

M issou ri
“ I am thoroughly sold on your
Advertising Service, as it cer­
tainly gets the results. I want
to thank you and express our
appreciation o f the Service
rendered.”

National B an
w ith w h ic h is a f f i l i a t e d t h e

Federal Commerce Trust Company
In v estm en ts

Don» r t u / a

N e w Jersey
“ I have carefully gone over the
budget of Advertising Service
you sent us and find the copy
is very w ell w ritten . It has
given me many new ideas and
I shall use them in our adver­
tising.”

O k la h o m a
“ The copy you supply us from
time to time, we find we can
use advantageously in our ad­
vertising campaigns— scarcelv
a sheet remaining unused. You
are to be commended for this
splendid service you are ren­
dering your friends over the
country.”

Texas
“ W e certainly feel under many
obligations to you for the ad­
vertising service you are ren­
dering us in addition to all that
you have heretofore done for
us.”

V irgin ia
“ W e have taken pleasure in
going over your advertise­
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only well-written, but should
bring good results.”

Commerce
in Saint Louis

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