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ID CONTINENT
BANKER
The Financial Magazine of the Mississippi Valley

ST. LOUIS
■an
ryi

I»

JANUARY,

1929

IN T H IS ISSU E

W h a t B a n k e rs in th e M id -C o n tin e n t T e r r ito r y
T h in k o f th e O u tlo o k fo r 1929
9

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Federal Reserve Bank of St. Louis

Page Eleven

W h a t ’s the M a tte r W i t h the B a n k in g B u sin e ss
— H o w C a n E a r n in g s B e In cre a se d ?
Page Fourteen

M a k in g N e w s p a p e r A d s D e c la re D iv id e n d s
Page Nineteen

T w e lv e M o n th s R e c o rd o f P r o g r e s s
Page Thirty-O ne

T u r n Y o u r E y e s T o w a r d L a tin A m e r ic a
Page Forty-N ine

BOND AND INVESTMENT SECTION
Page 45

M id-C ontinent B anker

January, 1929

FIRST
year after year

NATIONAL IN ST. LOUIS
BANK
in Size and
in Service
FIRST N ATIO N AL B A N K

Broadw ay— Locust— Olive

-IN ST. LOUIS
REG. U. S. PAT. OFF.

Start the New Year Right—

Investigate Our Service
The Mid-Continent Banker is published monthly by the Commerce Publishing Company, 408 Olive St., St. Louis, Mo. Subscription price $3 00

per year. Volume 25. No. 1. Entered as second class matter at St. Louis Postoffice. Additional entry as second class matter at Fulton, Mo.
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Federal Reserve Bank of St. Louis

M id-C ontinent B anker

January, 1929

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Federal Reserve Bank of St. Louis

Your Investment Account
ncluded

in our diversified list of high grade securi

ties are M unicipal bonds having the following
characteristics: the unqualified approving opinion of
a nationally known bond a tto rn e y ... low ratio of
net debt to the assessed valuation o f taxable property
. . . serial maturities. . . exemption from all Federal
income taxes and the maintenance o f an active secon
dary market for the resale o f all issues— all o f which
features not only insure a safe security, but a particu
larly desirable investment. Inquiries are welcome
from banks and investment houses seeking securities
suitable for the investment o f the secondary
reserve, and for the requirements o f large
investors, trustees and corporations.

f * FIRST
I

NATIONAL
COMPANY

JH L

INVESTMENT DIVISION

-IN.ST.LOWS

m $ r NATtQNAL BA N K

of the

BROADWAY-LOCUST-OLIVE

SAINT LOUIS, MO.

M id-C ontinent B anker

January, 1929

E v e n m or e c o m p r e h e n s i v e u n d e r w r i t i n g
and d i s t r i b u t i n g service . . .

. . w hen th e n ew
C O N T IN E N T A L

ILLINOIS

is o p e n e d in
th e n e a r fu t u r e
company

HE Bond Department of this bank and the
Continental National Company will soon
unite to form the C o n t i n e n t a l I l l i n o i s
C o m p a n y . Our present customers and those who come to
us in the meantime will benefit definitely by the size and
scope of this new | 2 o , o o o , o o o investment company.
It will be affiliated with the forthcoming billion dollar
C

o n t in e n t a l

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Federal Reserve Bank of St. Louis

llinois

ank

l l i n o i s

r u s t
jResources

and

C
Over

e
o

45°

rust

c
p

h
a

eSlillion ‘Dollars

CHICAGO

om pany

a
n

n
y

t s

January, 1929

M id-C ontinent B anker

In many of America’s
greatest banks
National Posting Machines are
providing a new protection

I n th e s a v in g s d e p a r tm e n ts o f m a n y o f th e m o s t p r o m in e n t b a n k s
in th e c o u n try , b o th d e p o s ito r a n d b a n k are g e t t in g a n e w se rv ice and
p r o te c tio n w ith N a t io n a l P o s t in g M a c h in e s . F o llo w in g are a fe w o f
th e m a n y w h o h a v e c h o s e n th is n e w s y s t e m w h ic h e lim in a t e s th e
w e a k n e s s e s o f p e n a n d ink p o s t i n g :
Anglo-California Trust Co., San
Francisco, Calif.
Bank of Nova Scotia, Montreal,
Que., Canada.
Federal-American National Bank,
Washington, D. C.
Harris Trust Co., Chicago, 111.
Northern Trust Co., Chicago, 111.
Equitable Trust Co., Baltimore, Md.
Atlantic National Bank, Boston,
Mass.
First National Bank, Boston, Mass.
First National Bank, Kansas City,
Mo.
Marine Trust Co., Buffalo, N. Y.

Broad & Market National Bank,
Newark, N. J.
National Bank of Niagara & Trust
Co., Niagara Falls, N. Y.
Dayton Savings & Trust Co., Dayton, Ohio.
Provident Savings Bank & Trust
Co., Cincinnati, Ohio.
Frankford Trust Co., Philadelphia,
Pa.
Guarantee Trust & Safe Deposit
Co., Philadelphia, Pa.
National Copper Bank, Salt Lake
City, Utah.
First W isconsin National Bank,
Milwaukee, W is.

For detailed information on this new machine write or wire the
Accounting Machine Division, The National Cash Register Company.

THE NATIONAL POSTING MACHINE
Product of The National Cash Register Company

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Federal Reserve Bank of St. Louis

M id-C ontinent B anker

January, 1929

W . H. YOUNG & BROS., Inc.
705 Olive Street
St. Louis, Mo.

Investment Securities

Sp ecializing in Municipal Bonds
and Insurance Stocks

BRANCH OFFICES
Kansas City, Mo.
Commerce Bldg.

St. Joseph, M o.
312 Corby Bldg.

Joplin, M o.
202 Joplin Natl. Bk. Bldg.

Marshall, M o.
Farm ers’ Savings Bk. Bldg.

Hannibal, M o.
208 Broadway

Sedalia, Mo.
Bothwell Hotel Bldg.

Jefferson City, Mo.

Denver, Colo.

Central Trust Bldg.

758 United States Nat. Bk. Bldg.

Topeka, Kansas
209 K resge Bldg.

Columbia, M o.
Exchange Nat. Bk. Bldg.

W ichita, Kansas
First Natl. Bank Bldg.

Lexington, M o.
Traders Bank Bldg.

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Federal Reserve Bank of St. Louis

ECURITIES have a new importance in the business

o f banks — as secondary reserve, as collateral to

secure loans and in meeting the investment demands

o f customers. Because o f this, it has become more important
for a bank to maintain a connection with an investment
house that has contact with banks and an understanding
o f bank ing p rob lem s.

ou tsta n d in g con nection

o f such character will be available to banks through the
uniting o f the Continental National Com pany and the
Bond Department o f the Illinois Merchants Trust C om
pany as the Continental Illinois Company. T his company
will have a capitalization o f 20 million dollars and will be
affiliated with the Continental Illinois Bank and Trust
Company. W ith headquarters in Chicago and offices in N ew
Y o r k and eleven other cities, the united investment organ
ization will engage in underwriting on an even larger scale
and provide a wider range o f investment choice and counsel

CONTINENTAL
N ATIO N AL BANK
& TRUST COMPANY
OF CHICAGO

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Federal Reserve Bank of St. Louis

M id-C ontinent B anker

in St. Louis, gives the Mercantile Trust
Company centralized advantages o f real
value to its Correspondents.
From St. Louis the principal cities o f fo u rteen states may be reached by overnight
sleeping car without loss of business time.
Twenty-seven main-line railroads at this
cross-roads of traffic reach out ” to every
where.” Time-saving in personal travel,
in transfer o f documents by railway and
air mail, and in collections, constantly
speeds routine business and may be price
less in emergencies.
All the resources and facilities which many
years’ activity in Mid-West business
circles have brought to the Mer
cantile Trust Company are at the
service o f its Correspondents.

ST. LOUIS

January, 1929

M id-C ontinent B anker

January, 1929

The Financial Magazine o f the Mississippi Ualley
D O N A L D H. CLARK, Editor and Publisher
JAMES J. W E N G E R T and W IL L IA M H. MAAS, Associate Editors
PA U L EDW ARDS, Assistant Editor
V O L . 25

The Mid-Continent Banker Territory

N o. 1

ST. L O U IS , J A N U A R Y , 1929

CO NTEN TS FOR JANUARY
10

St. Louis Bankers and Their Families .........................................................................
W h a t Bankers Think of Outlook for 1929 ................................................................
H ow Can Bank Earnings Be Increased?— By Clyde D. H a r r i s ....................
Are Balance Sheets W h a t They Seem?— By Samuel Newberger ................
Scientific M anagement of Banks Essential— By A . A . Speer .........................
Making Newspaper Ads Declare Dividends— By D. R. W esslin g ................
First N ational-U nion Trust M erger in Chicago .................................................
Liability of Directors— By Legal Editor ................................................................
Position of U . S. A . in International Trade— By W . F. Gephart ................
Mississippi Valley Merchants Trust Company Form ed ...............................
A Credit Book That Gives U s Complete Information— By H . J. W ernsing
Bank of America and Central Trust Consolidate in Chicago ........................
Kansas Banker Says Service Charges Prove Successful .................................
A 12-M onths Record of Progress— By Roscoe M acy ............................... ..........
Clarifying Trust Functions in the Public Mind— By Frank C. Mortimer
N ew s and View s of the Banking W o r ld — By Clifford D ePuy ......................
Insurance Section .................................................................................................................
Legal Tender Section ........................................................................................................

BOND

AND

IN V E S T M E N T

11
14
17
18
19

21
22
23
25
26
28
30
31
33
39
41
74

S E C T IO N

H ow Stocks A re Bought on N ew York Exchange— By John R. Longm ire
Turn Y ou r Eyes Toward Latin America— By Dr. Clyde W . Phelps . . . .
Law s Governing Investment of Bank’s Secondary Reserve Funds .........
Stock Market H as Made People Forget Bond Market .................................
A lon g La Salle Street— B y W illiam H . Maas ........................................................
Current Quotations on Representative List ............................................................

S T A T E N E W S S E C T IO N S
Illinois ............................................................
Indiana
.........................................................
Kentucky
.....................................................
Louisiana ........................................................
Tennessee .....................................................
Mississippi

78
82
86
86
88

Alabam a ........................................................
Arkansas ........................................................
Texas ..............................................................
Oklahoma .....................................................
Kansas ............................................................
Missouri
........................................................

The Mid-Continent Banker is published monthly by the Commerce Publishing Company. Donald H.
Maas, Vice-President; James J. Wengert, Secretary and Treasurer

Clark,

89
89
90
91
92
95

President:

William

408 O L I V E S T R E E T , S T . L O U I S , M I S S O U R I
Telephone GArfield 2138
CHICAGO O F F IC E :
William H. Maas, Vice-President
1221 First National Bank Building,
Telephone CENtral 3591

M IN N E A P O L IS O F F IC E :
Frank S. Lewis, Manager
840 Lumber Exchange Building

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

M E M B ER A U D IT B U R EAU

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Federal Reserve Bank of St. Louis

O F C IR C U L A T IO N S ,

F IN A N C IA L

Additional entry as second

A D V E R T IS E R S

class matter at

A S S O C IA T IO N

M id-C ontinent B anker

January 1929

mm
■

■

1. Mr. and Mrs. Chas. Maull and their daugh
ter, Mrs. Conner B. Shanley, and son,
Charles, Jr. Mr. Maull is president of the
Northwestern Trust Company.

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2. Mr. and Mrs. V. A. McKee. Mr. McKee is
assistant cashier of the Citizens National
Bank of Maplewood.

■

3. Mr. and Mrs. Louis Boeger and their three
sons, (left to right) Walter, Herbert and
Louis, Jr. Mr. Boeger is president of the
North St. Louis Trust Company.
4. Mr. and Mrs. J. C. Tobin and their four
children, (left to right) Robyn, J. C. Jr.,
Tommy and Mary Louise. Mr. Tobin is
vice-president o f the Mound City Trust
Company.

The Mid-Continent Banker
THE

FINANCIAL

Volume Tw enty-Five

MAGAZINE

OF T H E

MISSISSIPPI

VALLEY
Number One

ST. LOUIS, JANUARY, 1929

W h a t ^Bankers in the £M id - Continent Territory
Think o f the Outlook fo r 1929
Farm

Conditions Normal in
Southern Illinois
By JOS. V. CAPEL

President, First Trust and Savings Bank,
Harrisburg, 111.

The coal trade in Saline County is
rather disappointing. Much of our
contract trade has not yet been recov
ered since the new agreement.
Farming conditions are about nor
mal. The acreage of winter wheat
sown is about sixty per cent of last
year and it is going into the winter in
good condition. The corn crop was be
low average, not enougli for home con
sumption, and as a consequence the
farmers are selling their hogs before
they are really ready for market. The
prospect for a large corn acreage crop
next year is good. The oats crop was
normal; clover seed crop, short; hay,
about average; fruits, plentiful.
General business conditions for this
section are hardly satisfactory, yet
our merchants are materially benefited
by advantage of hard roads leading in
from all directions, bringing trade
from adjoining counties, especially
south, much of which trade we enjoy
from the Ohio River counties. Bank
ing conditions are about normal.

1 9 2 9 Promises to Be an
Excellent Year
By A. Gf. BROWN
President, First National Bank,
Greencastle, Ind.

In this particular section of Indi
ana, conditions for the year 1928 ended
with better business than was antici
pated sixty days ago. An average
corn crop insures a good livestock con
dition in this territory. This is a sec
tion where stock, as well as corn, is
produced on the farm, and all grain is
marketed through livestock. With a
fair corn crop, therefore, farming
should be greatly improved in 1929

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over 1928. Retailers report that cred
it conditions are better so that they
have an average prospect for increase
in volume during the coming year.
Locally speaking, Greencastle is in
a very healthy condition, not only due
to DePauw University, which is expe
riencing one of its best years in his
tory, but the cement and stone indus
tries located here are working full
time and labor is all employed. Build
ing permits hit a new high mark
every month, which places Greencastle
in a more solid condition from a real
estate value standpoint than most of
surrounding county seat towns. All in
all 1929 promises to be a good year.

1 9 2 9 Prospects for Oklahoma
"H a v e N ever Been Better”
By FRANK P. JOHNSON
President, American-First National Bank,
Oklahoma City, Okla.

General business conditions in Okla
homa City have never been better and
the same applies to the greater part
of Oklahoma City’s trade territory.
During this year we raised excellent
crops which were sold at fair prices.
The consequence is that banks and
business houses generally have had ex
cellent business during this year. The
recent discovery of an oil field on the
edge of Oklahoma City adds consider
able to the optimism of our people.
Looking ahead as far as the next
six months we see no bad clouds in the
horizon, so far as this section is con
cerned. We believe that the greatest
development in the United States will
take place in the Southwest during the
next ten years. All major corpora
tions, such as the Bell Telephone Sys
tem, Oklahoma Gas and Electric Com
pany, Southwest Light and Power Com
pany, and Oklahoma Railway Com
pany, are making improvements on a
large scale and getting ready for a
greatly increased volume of business
in this section.

Conditions A re G ood
Central Missouri

By W. E. ZUENDT
Vice-president, First National
Jefferson City, Mo.

Bank,

Conditions in our territory are good,
as is evidenced by increased bank de
posits and the better frame of mind
in which we find the farmer.
There has been somewhat less con
struction this year than last with con
stant slackening of employment in the
trades concerned, but unemployment
is not pronounced and has not affected
business noticeably. Our manufac
turers report an excellent year, with
sales strong at this time and collec
tions good. Our merchants also re
port a good year, with volume equal
or slightly in excess of that of last
year, except in certain lines that have
felt the effect of unseasonable weather.
The wheat crop in our territory this
year was poor, nearly a failure, but
the corn crop was large and of excel
lent quality. Our section was also
fortunate in having a large number of
cattle and hogs ready for market at
the time prices for them were at the
peak, bringing in considerable volume
of funds which have increased bank
deposits and reserves.
The outlook for the coming year, in
our opinion, is good and we can not
see why it should not prove to be as
prosperous as the one just drawn to
a close.

Farm Conditions O nly Fair in
Northwest Oklahoma
By W. L. PITTMAN
President,

Seiling State Bank,
Oklahoma

Seiling,

About two-thirds of the customers
of our bank are engaged in wheat
farming and our wheat crop this last
year was a little light. This reduced
the purchasing power of the wheat
11

M id-C ontinent B anker

farmer in this section. Another thing,
the average farmer is carrying too
much indebtedness for tractors, com
bines and other traction equipment.
Collections were good this fall, but our
customers do not have as much money
as they usually do at this time of the
year.
Another item that frequently brings
considerable money to this section is
turkeys. Last year we had one firm
in this town which bought over $30,000
worth of turkeys. I do not believe
that the three dealers here paid out
$10,000 for turkeys. This shortage of
turkeys interfered with the Christmas
trade of the merchants in this section.
There was a large acreage of wheat
sown here this year and its condition
is good as the farmers got a good stand
and they have plenty of moisture to
begin the winter.
The cattle market has been good and
our customers who had very many cat
tle in the past year have made good
money.
The hog raisers of this section are
complaining about the price of hogs
at the present time.
A little cotton is raised here which
made a fair crop, with good prices.
Broomcorn was hardly an average
crop, most of it selling around $11 a
ton.
Corn and feed crop was unusually
good so our customers will not have to
buy their feed next spring, as they
have had to do for some years in the
past.

Conditions Rather Poor —
Outlook for 1 9 2 9 Better
By L. G. GEE
President, Farmers State
Lawrenceville, 111.

Bank,

Conditions in our territory are
rather poor due to the fact that agri
cultural people did not harvest a
wheat crop this season because of the
winter kill, and the oil interests are
still at a low ebb, and are barely pay
ing operating expenses. Merchants re
port that collections are slow, and we
find that the community in general is
in a little bit closer circumstances than
usual.
The outlook for 1929 at this time
seems favorable. We can not expect
to have an agricultural year any worse
than the one we have just passed
through, and the winter wheat is at
least average, and at this time looks
to be in a satisfactory condition.
There is some feeling in the oil busi
ness that conditions are no worse and
the general expression seems to be
more optimistic for better results dur
ing 1929.

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Federal Reserve Bank of St. Louis

Business

Conditions

A re

Generally Satisfactory
By OMAR H. WRIGHT
President, Illinois Bankers Association,
president, Second National Bank,
Belvidere, 111.

The business situation in this vi
cinity is in a generally satisfactory
condition. Manufacturing and indus
trial concerns are busy and, with a few
minor exceptions, their profits will be
equal, if not better, than last year.
There is quite a surplus of common la
bor, largely because of the cessation o f
out-of-door work of all kinds, but the
price being paid for the same is be
low the figure which makes it possible
for the laborer to support his family
properly.
Purchases o f various appliances and
articles formerly classed as luxuries
upon the deferred payment plan, to
gether with extortionate rates of in
terest, continues to a very large de
gree. As a result, the merchants sup
plying the necessities of life are be
ing compelled to carry a larger vol
ume of credit and there seems to be
more than the usual complaint upon
the inability to make prompt collec
tions of past due accounts.
The agricultural situation has not
improved. Farm values of all kinds
are extremely depressed and foreclos
ures are frequent and the farmers *
morale is breaking down.
While crop returns last season were
generally excellent it is yet too early
to expect any benefits as a result of
the same. Farmers generally are not
reducing their indebtedness and where
they are laboring under a heavy in
terest charge their outlook is gloomy
indeed.
In strictly agricultural districts and
in the smaller towns the situation is,
of course, hampering and retarding
business and the business problem in
such communities becomes increasing
ly difficult.

Business Outlook Bright for
Kosciusko District
By F. Z. JACKSON
President, The Kosciusko
Kosciusko, Miss.

Bank,

Our town and Attala County have
shown quite an improvement during
this past year. This has been largely
brought about by the Pet Milk Com
pany building a plant in this city.
The Attala County Developing Board
is endeavoring to put from 5 to 50
cows on every farm in the county and
they now have about one-fourth of our
farmers selling milk and cream. They

January, 1929
are all very much pleased with these
new conditions since our land is very
well adapted for dairying.
The deposits in the three banks of
Kosciusko and the three other banks
of the county are larger now than ever
before, totalling between three and
four million dollars, of which the ma
jority belongs to the farmers. These
deposits are given preference in loan
ing farmers money with which to buy
cows. When we have all of our farm
ers on the Pet Milk Company’s pay
roll, Attala County will be on a cash
basis.
Our county is just completing a road
system and there are to be twelve hard
surfaced roads leading into Kosciusko
over which to haul milk the year
around. Our city has also just com
pleted paving the principal streets and
a new sewerage system was completed
about three months ago. Kosciusko
has doubled in population during the
last eight years.
We are expecting next year to find
general business conditions the best
that we have ever had, both for the
farmers and the merchants.

Business Is Best It Has Been
for Several Years
By CHAS. F. ELLIS
Cashier, Citizens Bank, Marshfield, Mo.

Business in general throughout this
section is better than it has been for
several years. Deposits are stronger
and people seem to have more money.
There seems to be no strain in any
way. Dairying and poultry are our
best products, with dairying leading.
I see no reason why the present good
conditions should not continue dur
ing 1929. It looks as if we have a very
good year before us.

Business Conditions Normal
in Western Illinois
By R. P. PALMER
Vice-president,
Union
State
Savings
Bank and Trust Company, Kewanee, 111.

Business conditions in our territory
are about normal for this time of the
year and agricultural conditions are
the best they have been for several
years. The farmers seem to be entirly satisfied with their 1928 crop and
believe that prices will be satisfactory.
As to the outlook for 1929, will say
that I do not see any particular rea
son to look for an increase in busi
ness or better agricultural conditions
other than just the normal increase
which should come from year to year.
I do expect this normal increase rather
than any decrease in either line.

W ith

Favorable

Weather

Outlook Is G ood
By W. L. BALDON
Farmers Exchange Bank, Elvaston, III.

The business of this community is
based on the conditions of the rural
community by which we are sur
rounded. The climatic conditions for
the past four years have given this
community a terrible jolt, the last har
vest being our first crop in that many
years. Consequently conditions have
changed for the better, but are not as
yet flourishing.
Our outlook for 1929 is very g ood ,,
most everyone getting his wheat in at
the right time and in good condition,
and again—with favorable weather, we
expect a good year during 1929.

Outlook for 1 9 2 9

V ery

Encouraging
By A. G. HARTNAGEL
Cashier, First National Bank,
Nashville, 111.

Nashville is located in an agricul
tural district. The 1928 wheat was
light on account of the severe cold
weather last winter, but the summer
crops, oats, corn, hay, etc., were good,
and will be a great benefit to the
farmers as feed, as a great deal of
milk is produced in Washington Coun
ty. We also have a coal mine which
has a railroad contract and is running
full time. Under these conditions the
outlook for 1929 is very encouraging.

Considerable Im porvem ent
Expected During 1 9 2 9
By C. G. McHUGH
Cashier, Astoria State Bank, Astoria, 111.

Conditions in our territory are slow
ly improving, particularly crops, and
somewhat better average prices are
helping our farmers to get back on
their feet again. I f crop conditions
and prices continue favorable through
1929 we look for considerable further
improvement.
We all, of course, are hoping that
the government will be able to give our
farmers some assistance along the lines
suggested by President-Elect Hoover.

Believes

Farm

Prices

Will

Advance During 1 9 2 9
By CHAS. P. HEUSER
Cashier, Citizens Bank, Palmyra, Ind.

Conditions in southeastern Indiana

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Federal Reserve Bank of St. Louis

M id-C ontinent B anker

January, 1929

are fair. Farm lands have gradually
depreciated since 1920, but we believe
that the tide is at low ebb. We notice
several inquiries for farms and it is
our opinion that 1929 will find farm
land tending to better prices.

Continuation o f

G ood

Business During 1 9 2 9
By FREDERICK H. RAWSON
Chairman of the hoard, Union Trust
Company, Chicago

1928, after getting away to a
bad start, has gradually improved
and the last quarter has been one
of marked activity both in pro
duction and distribution so that all
in all we have every reason to be
satisfied with results for the year.
We look forward to 1929 with
every confidence and belief that we
may expect a continuation of good
business. The reasons which con
tribute to this spirit of optimism
are the following:
The political situation.
Mr.
Hoover’s election spells a contin
uation of the same policies and
high ideals so ably defined and
practiced by President Coolidge.
The great basic industries, such
as steel, automobiles and building,
are keeping up in a highly satis
factory degree. There has never
been a period of depression so far
as I can remember during periods
of building activity.
The railroads had poor earnings
to start but have gradually im
proved their condition so that
most of them at the present time
are showing earnings almost equal
to and in some cases exceeding
last year’s.
There is a much better feeling
throughout the agricultural sec
tion. The farmers are showing in
creasing intelligence in the rota
tion of their crops and in cheaper
production by utilizing, to a great
er extent, modern farming ma
chinery; and it is to be hoped un
der President Hoover’s wise ad
ministration the condition of this
very important class of people will
be still further stabilized and im
proved.

We believe that amortization pay
ments is the only solution for pres
ent conditions of the American farm
er. Amortization payments should ap
ply to-personal property the same as
real estate.

1 9 2 9 Outlook Is Better Than
That for Past Year
By W. R. McGAUGHEY
Vice-President, Citizens National Bank,
Decatur, 111.

Business conditions in our territory,
on the whole, are very satisfactory.
Agricultural conditions are much
better than those of a year ago. The
corn crop is of excellent quality and
is bringing a price that will net the
producer a little profit. Quite a move
ment of corn is already in progress,
which is putting considerable money
into circulation.
But to this fact, and also that there
is very little unemployment in this
city, retail trade is showing some in
crease over a year ago.
Practically all of our factories are
working full time and most o f them
have had a fairly good year.
In my opinion, 1929 will be a more
satisfactory year in every way than
was 1928.

Banking Conditions All That
Could Be Expected
By DR. C. W. BOWEN
President, Bank of Brunswick,
Brunswick, Mo.

Banking conditions in Chariton
County are all that could be expected.
Recent statements published show that
the sixteen banks of our county are on
a firm foundation. They all seem to
be doing well and only two have a
small amount of bills payable. So
far, there have been no bank failures
and most of the banks have declared
dividends.
The prospects for 1929 are very good.
Crops this last year were splendid,
with the exception of some high water
which hurt the corn slightly. Several
farmers have won prizes on their corn
at the state fair and International
Corn Show at Chicago.
We are going into winter quarters
in good condition.

Outlook

G ood , But

Credit

Should Be Curtailed
By L. M. CALKIN
Cashier, First National Bank,
Stoutland, Mo.

While conditions here are not at
their best right now, times have been
good in this community during the
past year. We look for good hog
prices, good corn prices and fair cat
tle prices in 1929. It seems to me that
now is as good a time for one to make
and save money as there has ever been,
(Continued on page 83)

W h a t’s the M atter W ith the Banking Business
— H o w Can Earnings B e Increased?
OO many banks officers have lost
sight of the fact that the primary
aim of a bank is to make a profit for
its shareholders. In their laudable ef
forts to win public confidence and
good-will, they have over-emphasized
the idea of public service institutions
and have left the impression that their
services are free. Such stock adver
tisements as “ One Dollar Opens an
Account,” “ This Is Your Bank,” etc.,
are familiar to all of us— and while
any plan to make banking popular is
very much to be desired, we do not
want to leave the impression that a
bank’s services should be f r e e .
Whether a bank officer succeeds or
fails depends in the final analysis on
his ability to make satisfactory earn
ings for his shareholders. More than
one bank president or cashier has been
“ made” or declared a failure because
of his ability or inability to operate
his bank at a profit.
The bank is the very heart of the
business community and there is no
reason why it shouldn’t operate at a
reasonable profit. Through it circu
lates the very life blood of industry
and commerce. Those engaged in
other lines of business regard bankers
as successful men who are capable of
making money.
Customers expect
their banks to make profit and have a
higher regard for it if it does. I f a
bank fails to pay dividends and add
to its surplus regularly, it is the sub
ject of community comment, and don’t
you forget it. The public wants good
banks and is willing to pay the price
for what it wants. It is far more in
terested in having safe banks than it
is in free services and high interest
rates!
Generally speaking, the more pros
perous banks are the safest. In the
long run banks must have adequate
earnings above expenses to be safe. It
is necessary for the net profits to be
sufficient to pay a reasonable dividend,
provide for charging oft depreciation
and losses, build up a surplus fund
adequate for a constantly growing
business and take care of the extra
ordinary losses that are bound to come
in the life of every bank. Wholly un
profitable banks must sooner or later
pass out, from necessity!
Bankers are quick enough to dis
criminate against the borrowing cor
poration whose profit and loss sheet
14

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CLYDE D. HARRIS

President, First National Bank, Cape
Girardeau, Missouri

The article on this page is the first
of a series of three articles dealing
with the subject of bank income and
operating expenses. The entire series
has been written especially for the
Mid-Continent Banker by Mr. Harris
who has spent several months studying
and analyzing the causes of reduced
earnings of banks and the best methods
of offsetting the reduction. In the ar
ticle appearing this month, figures are
cited by Mr. Harris showing that a
bank must now have twice the amount
of deposits that it had twenty years
ago if it expects to make the same rate
of return on its invested capital.— Ed
itor’s Note.

continually shows a deficit. They are
ready enough to suggest to their cus
tomers methods for curtailing losses
due to unsound business principles,
and insist on the discontinuance o f
practices that fail to show profits, yet
many of the same bankers are negli
gent in analyzing their own profit and
loss account to find out why their
banks are not earning. More often,
having found the reasons why they do
not show proper earnings, they lack
the courage to put into practice what
they know to be necessary. This may
constitute charges for services ren
dered or reducing the rate of inter
est paid on deposits. When more
drastic action is necessary to show
proper earnings, such as restoring im
paired capital, etc., mental paralysis
seems to obsess them. It is hard to
understand why many bankers seem
to lose sight o f the fact that the prin
ciples of sound business must be ap
plied to banking as well as to other
lines o f business.
ITHIN the past few years more
attention has been given to thq
subject of bank income. It is realized
that something must be done to in
crease bank earnings. Although much
attention has been given to the sub
ject a very small percentage of the
banks outside of the larger cities have
had the courage, it seems, to do what

they know is necessary to be done
to bring about satisfactory earnings.
Both state and national bankers’ as
sociations have committees actively
pointing out the way to solve the prob
lem. The Missouri Bankers Associa
tion, for instance, has the committee
on Analysis of Accounts and Service
Charge, and the Clearing House Sec
tion of the American Bankers Associa
tion is particularly alive to everything
bearing in any way on the problem.
Bank commissioners in a number of
states are giving more than usual at
tention to the matter of the banks’
income and are directing the banks
under their charge along right lines.
Wise bank managers have put their
thought to this ahead of everything
else, because they realize that every
bank activity must result in satisfac
tory profits. The Federal Reserve
agent of the Federal Reserve Bank
of New York has prepared tables
of the earnings of various sizes
of banks in his district to enable
banks to compare their own opera
tions with those of other banks. The
National Bank Division of the Amer
ican Bankers Association has com
piled figures of all national banks for
the year ending June 30, 1927, show
ing the percentage represented by the
various items of income and expense
to gross earnings. Private banks and
bank consultants have also prepared
statistical analysis tables of earnings
and expenses that are available. These
various tables provide a “ yard stick”
for comparing the earnings and ex
penses of one’s own bank with the
average of a state or the United
States.
ANK income does not compare fa
vorably with the income received
in other lines of business. A few
years ago the Bureau of Business
Standards, Inc., of Chicago, studied
the income reports of 26,477 firms rep
resenting 108 different lines of busi
ness, which were grouped into 27
classifications. The classification was
made on the basis of percentage of
earnings to capital invested. Only
concerns were considered whose income
was above a certain per cent. Com
mercial banking stood twenty-sixth
from the top in the list of twenty-seven
classifications. Measured in terms of
ratio of earnings to capital invested,

January, 1929
the average of all the national banks
in the country for the year ended
June 30, 1927, was 9.24 per cent. One
has only to compare this with the earn
ings of the leading merchants in his
town to realize how far short of sat
isfactory the comparison is.
Public utility corporations are prac
tically assured a reasonable return on
their invested capital. The railroads
may depend upon the Interstate Com
merce Commission to see to it that
rates are high enough to insure an ade
quate return after all operating ex
penses, interest on bonded indebted
ness, taxes, etc., are taken care of.
Bankers are not so fortunate. The
maximum rate of interest has been
fixed in all states by statute and we
have never heard of any rates having
been increased. I f banks increase
their earnings it must be through good
management and without outside as
sistance. Expenses must be reduced,
services charged for, or the volume of
business increased.

H o w to Measure Bank Incom e
ANK income may be measured in
either of two ways. It may be
measured by considering the return on
invested capital-—-that is, by taking
the ratio of earnings to capital or by
considering the return on total depos
its— that is, by taking the ratio of
earnings to deposits.
The reports of the comptroller of
the currency for the past twenty years
show that the ratio of earnings to cap
ital invested has not decreased. There
have, of course, been years when the
rate of return was lower and higher,
but the average return has been about
the same. In 1908 the average earn
ings of all the national banks in the
country was 9.10 per cent on capital
and surplus, and in 1927 it was 9.24
per cent. This is true only because
the ratio of capital to deposits has
been lowered. Or putting it in an
other way, we may say that banks
have a lot more money on deposit in
proportion to their capital stock than
formerly. In 1908 the national banks
had an average of $1 of invested cap
ital for each $4.28 of deposits. In
1927 for each dollar of invested capi
tal there were $8.16 of deposits. (It
will be understood that we use the fig
ures of national banks because the re
ports of the comptroller are accessi
ble, continuous, and cover nation-wide
conditions and should be representa
tive of all banks). The fact that the
banker has been able to lower the ratio
of capital to deposits has enabled him
to realize the same percentage of re
turn on his capital. But notice that
it requires twice the volume of business

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M id-C ontinent B anker

to make the same ratio of return as it
did twenty years ago!
While the average ratio of earnings
to capital has held its own, the ratio
of earnings to total deposits has de
creased. In 1908 the net average re
turn for all national banks was 2.12
per cent on total deposits. For the
year ending June 30, 1927, it was only
1.13 per cent. This bears out the
statement made in the previous para
graph that it requires twice the amount
of deposits to make the same rate of
earnings. Or, in other words, it is
necessary to transact twice the amount
of business to make the same profits.
I f the ratio of deposits to capital had
remained the same the percentage of
profit would be only half what it was
twenty years ago. In this respect
banks are experiencing what every
other line of business is experiencing,
namely, that the percentage of net
profits on the volume of business trans
acted has been greatly reduced. For
that reason it has been found neces
sary to greatly increase the volume
of business, so that the operating costs
which have greatly increased, may be
spread over a greater volume of busi
ness and the same rate of earnings on
capital invested be maintained.
HIS effort on the part of business
management to reduce the ratio
of operating expense to volume of busi
ness transacted, and to maintain the
ratio of earnings on invested capital,
accounts for the chain store system
and the consolidation of firms engaged
in the same lines of business. In
banking it accounts for the consolida
tion of banks and the branch banking
system. It is inevitable. Banks have
been rather slow to apply the sound
principles which apply to all business.
However, this statement does not apply
to banks in the larger centers. To
meet the changed conditions following
the war, many banks of the larger cit
ies resorted to mergers to solve their
problems. More recently many banks
in the smaller communities have con
solidated. That there are far too
many banks in most states for most of
them to make satisfactory earnings is
admitted by most everyone. There
will have to be many more consolida
tions before the present over-banked
condition is remedied. The fact that
banks in the smaller communities have
not merged heretofore is not because
their managements have been slow to
realize changed conditions and the ne
cessity of meeting them, but because
there exists more jealousies and fac
tions among the banking groups in the
smaller towns and cities, and it is
harder to bring these elements together.
The banking commissioners are lend

ing their efforts in many of the states
to decrease the number of banks and
are openly advocating the consolida
tion of banks as a most constructive
plan to solve some of the problems of
bank income.

Causes o f Reduced Earnings
N looking about for the causes of re
duced earnings on the volume of
business transacted let us first consider
the income side of the ledger. The
sources of income are: interest from
loans and investments, exchange, rent
from safety deposit boxes, commis
sions, service charges, office rentals (if
the bank owns its building), etc. The
main source of income, however, is in
terest received from loans and invest
ments. Since 1921 the returns from
this source have decreased in most
banks. This is due to the fact that
demand for loans has gradually de
creased and, consequently, loans and
discounts have decreased, while the
amount invested in bonds and securi
ties has correspondingly increased.
The total amount of earning assets has
not decreased, as the total of loans and
investments is practically the same, but
the income derived is less, for the rea
son that the rate of interest received
on bonds is lower than that received
on loans.
As an example we will take the fig
ures from a bank in the Middle West
whose total deposits have remained
practically the same over a six year
period, and whose available earning
assets have consequently not changed:

Year

Interest
Rec’ d from
Loans

Interest Rec’ d
from Invest
ments

Total
Interest

$60,620
1922
$ 4,716
$65,336
55,036
8,786
63,822
1923
1924
52,382
9,755
62,137
51,063
10,614
1925
61,677
14,704
1926
42,646
57,350
40,668
14,206
54,874
1927
Even though the total amount of
earning assets was as large in 1927
as in 1922, the gross earnings were con
siderably less due to lower rates of in
terest received on the amount loaned
and due to the fact a much greater
portion of the bank’s funds was in
vested in bonds, which have a lower
rate than loans. The experience of the
bank cited is typical o f most banks.
It is obvious that this bank has had
to find other sources of income to make
up for the loss in interest, or reduce
its expenses in proportion, in order to
show the same net returns as formerly.

H o w to Offset Reduction in
Earnings
HERE are three ways by which a
bank may increase its earnings:
first, by increasing volume of business,

M id-C ontinent B anker

16
without at the same time increasing its
expense in proportion; second, by in
troducing other sources of income; and
third, by decreasing its expense of do
ing business; or by all three methods.
Most banks have not been able to in
crease their volume of business during
the past few years. This is especially
true of banks depending largely on
agricultural communities, which have
done well to “ hold their own.” The
fact that there are too many banks
makes it difficult to increase deposits
to any great extent.
The best solution of the problem
seems to be in introducing new sources
of income. The large metropolitan
banks do not rely solely on income
from interest on money loaned, rentals
from building and safety deposit
vaults, but have added departments un
til they are vast financial department
stores, selling bonds, insurance, real
estate and handling extensive trust
funds. Someone has pictured the bank
of the future as having two distinct de
partments. On one side of the lobby
will be the discount department where
the customers pay for the use of money
and on the other side of the lobby
will be all the other departments where
the customer pays for all services o f
any kind, either by ample compensat
ing balances or in fees, and I am not
sure but that the banks that survive
will be modeled after this style of bank.
Undoubtedly banks must have added
sources of income. These sources must
be available to country banks as well
as city banks and sources that any
bank can tap. Broadly stated, they
should provide for charging the pub
lic for every service of value to the
public.
In many counties and states banks
have already gone far toward making
up their deficit in earnings. In the
state of Georgia, county clearing house
associations have been established in
112 of the 149 counties, the main pur
pose of which is to introduce uniform
charges for services rendered and
sound principles of banking. Here is
a list of the charges and principles
introduced:
1. The service charge on unprofitable
accounts (usually 50 cents a month,
minimum balance $50).
2. Service charge on checks drawn
against insufficient funds (usually 25
cents per item).
3. Service charge on notes allowed
to run over due (usually 25 cents a day
plus accrued interest).
4. Service charge for overprinting
checks (usually actual amount of the
printer’s bill).
5. Service charge on small loans fig
uring less than $1 discount (the differ
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ence between $1 and the actual amount
of interest is calculated as a service
charge; this avoids liability for usury).
6. Exchange on out-of-town checks
cashed by non-customers.
7. Fee for cashier’s checks.
8. Limitation of interest on time and
savings deposits.
9. To require statements of assets
and liabilities from all borrowers in
excess of $500.
10. The establishment of credit bu
reaus for the interchange of informa
tion between banks to forestall dupli
cate and multiple loans.
Many banks also charge for making
out income tax returns, automobile li
cense applications, wills, deeds, mort
gages, escrows and other forms of
service that represent expense to the
bank and possess value to the public.
Think what it means that 112 out of
the 149 counties have already put these
services and principles into effect. In
a short while the whole state will have
adopted these sound banking practices.
What has been done in Georgia is be
ing done in other states.
Recently the Missouri Bankers Asso
ciation sent out a questionnaire to its
membership to ascertain to what ex
tent the service charge on unprofitable
accounts had been put into effect. Out
of thirteen hundred banks in the state
there are eleven hundred and twentyfour banks which have not introduced
it. Another questionnaire sent out by
the Missouri Bankers Association re
vealed the fact that 61 per cent of all
checking accounts were in the “ $1 to
$100” class and that 41 per cent of
all checking accounts were in the “ $1
to $50” class. So it seems worthwhile
to continue to present its advantages.
T would seem that after a bank has
analyzed its checking accounts and
found that more than sixty per cent
of the accounts fall in the list that is
costing the bank money to handle, it
would promptly take steps to “ break
even” in handling these accounts. It
is easy to see that if all the accounts
under $100 are lost by introducing the
service charge only a small percentage
of the bank’s business would be lost.
But the experience of banks that have
put in the service charge is that only
the very smallest accounts have been
closed. The others are transferred to
savings accounts or increased beyond
the minimum on which charges are
made. The total deposits of most
banks have increased when the service
charge was introduced and quite a
number of banks that have reported on
this show that approximately 40 per
cent of the accounts that originally
averaged under $100 are most willing
ly paying the service charge. About

January, 1929
30 per cent have built up the balances
considerably in excess of $100 and o f
the remaining 30 per cent who closed
their checking accounts, about one-half
transferred their checking accounts in
to savings accounts, so that in reality
only about 15 per cent of the total
number of accounts which originally
averaged below $100 were lost.
This article does not permit a thor
ough discussion of the service charge
on unprofitable accounts as that sub
ject is important enough for an article
in itself. At any rate, the banker
should learn to make use of cost ac
counting. It is as important to him
as it is to a manufacturer who always
knows the cost of manufacturing each
unit of his product.
It is sound banking practice to make
use not only of the charge on unprofit
able accounts but also on all of the
items included in the list which is be
ing used by the 112 counties in Georgia.
National and state bankers associa
tions are glad to assist in every way
when banks in any community express
a desire to put these charges in effect.
County banker associations can put
their attention to nothing that will pay
their membership bigger returns.
So much for the income side of the
profit and loss ledger. Next month we
will consider methods of reducing op
erating expenses without decreasing
salaries to officers and employes.

Shawmut Bank, Boston, Elects
N ew Director
Robert M. Leach has been elected a
director of the National Shawmut
Bank of Boston. He is a well-known
business man and has been, since 1900,
with the Glenwood Range Company
of Taunton, Massachusetts, of which
he is now treasurer. He has been
president of the National Association
of Stove Manufacturers and is a trus
tee of the Taunton Savings Bank,
Taunton, Massachusetts. He is a
graduate of Philips Andover Academy
and of Darmouth College.
Mr. Leach was elected to fill out the
unexpired term of Congressman W il
liam S. Greene.
In the World War, Mr. Leach was
commissioned as Captain in the U. S.
Army and was assigned to the Ord
nance Corps. He has been Comman
der of Post 103 of the American Le
gion, Taunton, and in 1926 gave this
post its new home.
Mother: “ What kind o f a show did
papa take you to, B obby?”
Bobby: “ It was dandy, mama. They
had ladies dressed in stockings up to
their necks.”

A re Bank Balance Sheets W hat They Seem?
T h e L a y m a n S h o u ld B e E n a b le d to S ee at a G la n c e th e
R ela tio n

H is

HENEVER I see the published
statements of condition of
banks or other financial institutions,
I ask myself, “ Why are hankers afraid
to tell the truth about their own busi
nesses ? ”
It is all right to be conservative,
one has a perfect right to be wrapped
up in red tape or be years behind the
times. But no one—banker or other
wise—has the right to publish misin
formation.
Truth in advertising means the
whole truth and nothing but the truth.
Partial truths call for a letter of
explanation from and to the Better
Business Bureau.
I f a business man presented a finan
cial statement (sometimes called a bal
ance sheet; a statement of condition or
a statement of assets, liabilities and
capital) to his banker for the pur
pose of obtaining credit, and if this

B ank’s

Liabilities

Bear

By SAMUEL NEWBERGER, C.P.A.
O f Samuel Newberger & C o ., Accountants
and Auditors, 38 Park Row,

Its

C apital

millions, is impressive until the state
ment is analyzed and digested for the
benefit of the man who is neither a
banker nor an accountant.

New Y ork

statement of condition showed that the
man’s liabilities equaled his assets, the
banker quite naturally would consider
the balance sheet valueless for credit
purposes, and the banker would be jus
tified in asking the would-be borrower
to show how much was his capital or
net worth in order to justify his be
ing granted a line of credit.
Similarly, when a bank advertises to
its depositors (its creditors) or to the
public (whose deposits it would like
to have) a statement of financial con
dition in which the assets equal the
liabilities, it is both uninformative and
misleading.
A long list of figures, all up in the

HAT part of the statement of con
dition called “ liabilities”
is
usually incorrect because under the
heading of “ liabilities” are included:
(1) Capital stock issued; (2) surplus;
(3) undivided profits.
These three items are not “ liabil
ities” ; they constitute the bank’s cap
ital or net worth. They represent the
bank’s “ margin of safety.”
A bank’s statement of conditions
should show its “ liabilities” (what the
bank owes to depositors and others)
grouped in one section and totaled, and
its “ capital” items grouped in an
other section and totaled. The sum of
the liabilities and of the capital items,
properly called ‘ ‘ liabilities and capi-

An Analysis o f Statements o f Condition o f Some New York Banks as o f June 30, 1928
Total Assets
or
Resources

Liabilities
or
“Due to Others”

Capital or Net
Worth “Margin of
Safety”

Manufacturers Trust Co........ .$ 342,840,224.14
33,216,427.89
Lawyers Trust Co....................
69,234,839.18
Fidelity Trust Co....................
69,298,156.93
French American B k ’g Co.. .
121,317,562.73
International Acceptance Co.. .
17,878,097.13
Banco Di Sicilia Trust Co........
117,735,110.01
State Bank & Trust Co............... .
Chase National Bank.............. . . 1,103,742,061.07
91,585,004.00
United States Trust Co........
115,955,921.05
Bank of New York & Trust Co. .
3,144,796.26
World Exchange Bank...........
18,245,002.22
Fulton Trust Co........................
, Bankers Trust Co...................... . . 734,425,404.06
81,802,642.58
Title Guarantee & Trust Co.. . .
24,138,239.12
Grace National Bank................
National City Bank.................. . 1,623,714,808.84
196,164,795.68
Hanover National Bank.........
Equitable Trust Co.................... . . 600,774,786.61
258,938,418.28
Corn Exchange Bank............. .
252,069,847.73
National Park Bank......... ..
406,998,539.53
Bank of America N atT Assn.. .
210,436,802.18
Seaboard National Bank. . . . .
177,424,887.00
Bank of United States...........
3,863,361.27
Melrose National Bank.........
912,270,694.30
Guaranty Trust Co................. .
665,749,286.49
Amer. Exch. Irving Trust Co.. .
57,686,738.53
J. Henry Schroeder Bk ’g Corp
20,530,881.35
Banca Com. Italiana Trust Co.
392,247,561.05
Central Union Trust Co........
81,443,233.76
U. S. Mortgage & Trust Co.. . .
New York Trust Co................. . . 327,810,036.02
222,124,616.47
Chemical National Bank. . . . .

$ 292,818,052.58
26,371,242.73
61,586,335.08
64,566,739.88
105,189,427.59
15,836,539.37
106,103,395.73
996,269,358.90
66,932,832.63
97,080,705.37
2,792,639.23
15,669,317.96
634,425,404.06
49,945,285.26
21,044,098.79
1,459,746,545.12
164,103,856.25
545,183,809.18
230,175,671.18
217,000,362.86
344,987,547.61
189,085,731.17
158,889,187.23
3,213,255.07
813,038,950.37
601,743,600.38
51,608,234.47
16,529,779.00
342,142,719.19
70,491,838.30
293,800,516.78
196,110,117.19

Totals.................................... . .$9,354,808,783.46
Thirty-two banks selected at random.

$8,254,483,096.51

$1,100,325,686.95

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Federal Reserve Bank of St. Louis

50,022,171.56
6,845,185.16
7,648,504.10
4,731,417.05
16,128,135.14
2,041,557.76
11,631,714.28
107,472,702.17
24,652,171.37
18,875,215.68
352,157.03
2,575,684.26
100,000,000.00
31,857,357.32
3,094,140.33
163,968,263.72
32,060,939.43
55,590,977.43
28,762,747.10
35,069,484.87
62,010,991.92
21,351,071.01
18,535,699.77
650,106.20
99,231,743.93
64,005,686.11
6,078,504.06
4,001,102.35
50,104,841.86
10,951,395.46
34,009,519.24
26,014,499.28

Percentage of
Approximate Safety in Event
Ratio of Capital of Shrinkage
of Assets
to Total Assets
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1

to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to

7—
5
9
14 1/2
7 1/2

9
10 +
11—
4—
6+
9
7+
7+
3—
8
10—
6+
11—
9
7.2
6 1/2
10—
9 1/2

6
9
10.4
9.5
5
8—
8—
10—
9—

1 to 8 1/2

Capitalization

14.59
20.61
11.05
6.83
13.29
11.43
9.88
9.74
26.92
16.28
11.20
14.12
13.62
38.94
12.82
10.10
17.94
9.25
11.11
13.91
15.23
10.15
10.45
16.83
10.87
9.61
10.54
19.49
13.04
13.45
10.38
11.71

Excellent
High
Good
Low
Excellent
Good
Fair
Fair
High
Excellent
Good
Excellent
Excellent
High
Good
Fair
Excellent
Fair
Good
Excellent
Excellent
Fair
Fair
Excellent
Fair
Fair
Fair
High
Excellent
Excellent
Fair
Good

11.76

Good

M id-C ontinent B ank er

tal, ” should balance or equal the sum
The banks listed in the table here
of the resources—-hence the term “ bal with could have saved the writer a
ance sheet.”
great deal of time in analyzing their
The layman should be enabled to
statements of condition if they had
see at a glance the relation his bank’s published readily understandable bal
liabilities bear to its capital. Is the
ance sheets. As it was, the writer had
“ margin of safety” sufficient?
to segregate the “ liabilities” and the
Especially in a small bank, doing
“ capital” items in order to arrive at
a local business only, this margin of
the
approximate ratio of capital or
safety should be carefully watched.
In the case of the larger banking margin of safety to total assets or re
institutions with many branches, un sources.
In addition to being able to compare
der-capitalization would be dangerous.
the ratio of capital to assets, whether
In times of financial stress, lack of
a bank has a low capitalization or a
sufficient “ margin of safety” to take
high capitalization, the accompanying
care of unusual losses might cause one
table, in the case of branch banks, o f
of these banks to go to the wall and
create havoc in the business and finan fers a means of comparison (if the
number of a bank’s offices are known)
cial world.
NE banking authority states that,
“ although it is generally recog
nized that a bank’s capital and sur
plus should be maintained at not less
than ten per cent (10%) of its total
deposit liabilities, the owners desire
N answer to a letter asking his opin
to keep down their investment so that
ion as to whether or not bankers
their percentage of profit may be
should
be required to pass a qualify
larger. Experience, however, h a s
shown the 10 to 1 ratio to be necessary ing examination before being per
for the proper protection of the depos mitted to conduct the affairs of his
itors. Generally accepted as these fig bank, A. A. Speer, president of the
ures are, it is only necessary to check Missouri Bankers Association and
through the statements of banks in president of the First National Bank
at Jefferson City, Missouri, stated:
various communities to note the wide
“ The public is entitled to the best
divergence from this standard.”
talent that can be found to conduct
Another authority writes that “ the
the banking business. Banking is not
margin of safety in most banks should
a private affair. The public is inter
be about 12%, or a ratio of one dollar
ested and has rights that ought to be
of capital to eight or nine dollars of
safeguarded. The public is not inter
assets. ’ ’
ested alone in the safeguarding of
In other words, before a bank could
deposits; the people are interested in
become insolvent there would have to
the best service that good management
be a shrinkage in value of the bank’s
of a bank can render in the develop
assets of 11%, if a ratio of one dollar
ment of a community. Much of the
of capital to nine dollars of assets was
community’s welfare and prosperity
maintained.
is dependent upon our banking insti
I f a ratio of one dollar of capital to
tutions. Banking is our chief and
eight dollars of assets was maintained,
greatest business agency.
there would have to be a shrinkage in
‘ ‘ Certain definite standards should
value of the bank’s assets of 1 2 ^ %
be set up to be required of bank o f
before the bank could become insol
ficers. I believe that the present su
vent.
pervision of the state banking depart
The public which deposits its money
ment and of the comptroller of the
in our banks and the people to whom
currency does not go far enough. I
the banks advertise are entitled to
am of the opinion that standards of
know what measure of protection they
character and qualifications should be
are receiving or may expect to re
established. I believe that this is
ceive from the banks in which they
basic. I f definite and uniform stand
deposit their money.
ards of qualifications for officers were
T the present writing, few banks required before men are permitted to
publish their statements of finan enter the business of banking, manage
cial condition in such form that they ment of banks would be much im
may be readily understood by laymen. proved. Certain of these qualifica
The writer, in the accompanying tions should be required of directors,
also.
table, has analyzed the statements of
“ Scientific management of banks
condition as of June 30, 1928, of a
number of New York banks selected at has always been desirable and for the
random. In only one or two cases is future scientific management of banks
will be essential and indispensable.
their capitalization low.

January, 1929
of determining the average amount of
capital per branch office, as well as the
average amount of liabilities per
branch office.
One bank with 30 branches has ap
proximate liabilities of $10,000,000 per
branch and an approximate capital
of $1,633,333 per branch, while another
bank with 60 branches has approxi
mate liabilities of $3,833,333 per
branch and an approximate capital of
$480,000 per branch.
There is no reason for banks to be
afraid to shed a little light on ‘ 1what is
what” in the financial world.
At no extra cost whatever banks
can publish statements of condition
that will be truthful, interesting and
enlightening.

Scientific ¿Management o f Banks W ill
Be Essential in the Future

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Federal Reserve Bank of St. Louis

Loose methods and incompetent man
agement have been responsible for
many bank failures. It is true that
the distress of agriculture has been a
factor in the failure of many country
banks, but if the management of these
banks had been properly trained and
were properly qualified, many of the
failures could have been avoided.
Proper knowledge of the necessity for
a secondary reserve and for the safe
limitation of local loans would have
saved many banks. Knowledge of the
necessity for liquid assets and that
knowledge applied would have pre
vented many disasters.
“ In regard as to how satisfactory
examinations could be conducted, I
think that such a function should
properly be vested in the state and
national banking departments. A good
start could be made by the passage of
state laws requiring a questionnaire,
to be answered much as required in
the educational department o f the
state, to be answered by those seeking
to enter the banking business, and
this law to be administered by the
state finance department. This would
be effective in keeping out the unfit and
unqualified and measures of this sort
would do much to increase the confi
dence of the public in banks. Con
sidering the responsibility of banks to
the people, why should men unfit and
without qualifications be permitted to
exercise the right of franchise for
banking? The standard of banking
should be raised and this is not in
tended as a criticism of banks that
are efficiently managed. But there
have been many banks lacking the
most elemental knowledge of good
banking in their management.”

M aking N ewspaper Ads D eclare Dividends
M e r c h a n ts in a T o w n A d v e rtise to S ell G o o d s — T o o
M a n y B an kers A d v e rtise to H e lp the L o ca l Papers

E bankers are popularly thought
of as close fisted business men
who never part with $1.00 unless it
will bring back $1.08. Yet when it
comes to newspaper advertising many
bankers are the soul of generosity.
The merchants in town advertise to
sell goods; many bankers advertise to
help the local paper.
Such bank ads often are donations,
too. Their authors are not deceiving
themselves.
Now it is granted that the news
paper is frequently a benefit to the
town; it should be supported. But a
bank is not an organization for res
cuing newspapers from poverty. More
over, of late, good newspapers have
not needed charity any more than have
some banks.
The situation reduces to this:
Either the banker ought to make his
newspaper ads declare a dividend or
he ought to quit running them. Ex
perience, fortunately, has shown that
bank advertising can be made to pay
dividends.
Here and there one may find a bank
er who will say, confidentially, that
advertising has never sold him any
thing. Yet, as Roy S. Durstine quite
aptly says, “ Inquiry probably would
have developed that he was awakened
by a Big Ben, shaved himself with a
Gillette, brushed his teeth with a
Prophylactic tooth brush, put on his
B. Y. DPs, Holeproof’s, Regal shoes,
E. & W. collar, Arrow shirt, and had
Kellogg’s cornflakes, Beechnut bacon,
and Yuban coffee sweetened with Dom
ino sugar, for breakfast. . . .
Of
course, advertising never sold him any
thing. ’ ’
But can newspaper copy sell some
thing that the bank has to sell? It
can.
In the first place, it can sell spe
cific services. Just to mention a few
concrete examples: (a) Advertising
can show the advantages of keeping a
good-sized checking account balance
rather than a small one. (b) It can
show the reasons why a certificate of
deposit is a superior form of invest
ment for ready money, (c) It can
strike up new motives for saving
money, (d) It can forestall various
kinds of unwise investments, (e) It
can educate the public with respect to

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Federal Reserve Bank of St. Louis

By D. R. WESSLING
President, Lytton Savings Bank
Lytton, Iowa

estates, showing how a modern kind
of will, with the bank or the banker
as executor, can prevent the dissipa
tion of property. These are just a few
out of many examples.
In the second place, newspaper ad
vertising, by the skillful use of sug-

D. R. W E SSLIN G

gestion, can build good-will. There is
nothing vague and misty about good
will. This word is just a shorthand
way of talking about certain habits
and attitudes of individual customers.
I f habits can be maintained or changed
toward a particular make of automo
bile, by repeated indirect suggestions
in advertising, habits can be main
tained or changed toward a particular
bank. The psychological process is
the same in both cases.
EWSPAPER space costs money.
You pay the same whether you
fill your space with the bank name and
the traditional “ We pay 3 per cent on
Savings Deposits— Save for Your Old
Age,” or whether you write a message
which will catch the reader’s eye, tie
in with some of his underlying desires,
and move him to act upon your sug
gestion.

Disregarding the bank across the
street, you have hundreds of competi
tors real estate dealers, mortgage
houses, building and loan associations,
bond houses and piano companies.
The manufacturers of automobiles,
phonographs, radios, jewelry and
clothing, with their installment plans,
are all fighting for their share of your
customer’s dollars. Many of them are
going after these dollars in a convinc
ing way through advertising designed
by artists and copywriters who are ex
perts in their fields. They are becom
ing less and less haphazard about their
methods and are getting results.
The banker is not the man to sit
back and accept the stray dollars that
come to him after the other fellows are
through with his customer. Besides
his personal stake in the matter, he
has a duty and a responsibility to his
community to direct the people’s
money into the proper channels.
Let us suppose you have determined
the size of your advertising appropria
tion and have apportioned 50 per cent
of it to the newspaper medium. You
face still another type of competition.
Your rather small ad is competing for
attention with larger ads and with the
news items. All of them are clamor
ing to be read. Will yours be read?
Dignified copy in a small space can
be made effective, “ if the ad is as in
teresting as your best friend’s con
versation and as well-dressed as you
want the officers of your bank to be.”
The attention value of an ad lies in
its individuality almost as much as in
its size.
The advertising solicitor may “ fix
it up” for you. But glance over your
newspaper pages and you will find it
quite evident that he has done likewise
for many others— and from all ap
pearances the time was short before
the paper went to press. The business
of the man soliciting you for an ad
vertisement is selling it, not making
it. The man who sold you your latest
adding machine could assemble pieces
of metal and keys into a form that
would resemble the real product—but
would it work?
The advantage of using a good bank
publicity service, prepared by special
ists, obviously comes in here—but that
19

20
is a subject outside of the scope of the
present article. Let us assume that
you have the time and desire to pre
pare the advertisement yourself.
The most important factor is the
copy. It should be dignified yet sin
cere, frank yet friendly. It should be
framed to meet the wishes of your cus
tomer, not yourself—which is saying,
in other words, that the “ you-attitude” should be maintained through
out, instead of a “ we-attitude.”
Above all it must say something, not
ramble on in generalities; it must
talk to your people, not at them.
FTER attention has been secured,
the task of the copy, and the big
gest one of all, is (1) to show a man
that he has a problem, (2) to present
a plan whereby he can settle it, and
(3) to urge him to settle it without
delay. I f you are accomplishing this,
you are getting a good return on your
investment.
In planning your ad, center on one
core idea; then arrange your headline,
illustration, type, copy, and general
layout to get that idea across. Too
many subjects in one advertisement,
like too many articles in a show win
dow, nullify its good effect and leave
the reader bewildered. You must al
ways bear in mind that the ad is be
ing prepared for the average casual
reader, not yourself, and that his men
tal ability to absorb the thought is
probably below yours.
Beautiful typography and layout
add much to the convincingness as well
as the attention value of your news
paper space. One type style should
be used rather consistently in order
that this type may become associated
in the mind of the customer with your
ad and your bank. Caslon, the use
of which has often been advocated, is
a classic, dignified face. I f your
printer does not have this type, some
thing not too delicate, yet gracefully
substantial, will do. Avoid the use
of many all-capital lines—they are less
easy to read than “ upper and lower
case,” as the printers call it. Occa
sional italic lines add a pleasing va
riety
Use pictures when you can—pro
vided they fit in. An appropriate pic
ture in harmony with the remainder
of the advertisement is worth, to quote
Arthur Brisbane, “ a million words.”
Plenty of white space should be al
lowed and the border should be rather
inconspicuous.
No matter how often your ad ap
pears there is a certain advantage in
having it occupy the same position in
each issue of the newspaper. People

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Federal Reserve Bank of St. Louis

M id-C ontinent B anker

become accustomed to looking for it
in that place. For example, Campbell
Soup’s red and green ads are always
to be found immediately following the
main reading section of the magazines.
Don’t allow your space to be “ bur
ied” deep in the page; have it near
the top and surrounded by as much
reading matter as possible. Every
newspaper is different, but each one
has a consistent individual makeup.
Select a page which you think will be
read and see that your ad is placed on
it in a specified position.
Now these are just a few observa
tions which have grown up out of ex
perience. The writer does not mean
for them to be taken too literally. Ad
vertising is not yet a science, though
it is rapidly progressing in that direc
tion. There are still exceptions to al
most every rule.
In conclusion, it should be said that
the more prestige you have in your
community the more reason why your

January 1929
copy should be carefully prepared.
While it is being read-it is your bank’ s
personal representative. The newpaper advertisement has within itself the
power to strengthen or weaken the
people’s respect for their banker as a
leader in his community.

Trust Conference to Be H eld
in N ew York
The tenth annual mid-winter trust
conference under the auspices of the
Trust Company Division, American
Bankers Association, will be held in
New York City February 13, 14 and
15, at the Commodore Hotel. Invita
tions will be sent to more than five
thousand trust companies and banks
doing a trust business, throughout the
United States, asking them to partici
pate in the conference which will deal
with the foremost problems of settling
estates and administering trusts.

Pioneer St. Louis Broker Publishes Book
o f Life on 100th Birthday
Ma t t h e w s , pioneer
St. Louis banker and broker, who
celebrated his 100th birthday on Decem
ber 17tli, has set down the story of his
life in book form for distribution among
his descendants and friends. The book,
“ A Long Life in Review,” reaches far
back into the nineteenth century.
In 1842 he came to Missouri and set
tled at St. Francisville. The gold rush
of 1849 carried him with it to Cal
ifornia where he became interested in
several mercantile ventures and accum
ulated $25,000.
Soon after 1851 he began his busi
ness career in St. Louis as a retail
druggist with his brother, William.
Others were admitted to the firm and
finally Mr. Matthews sold out his in
terest. In 1870 he set up a brokerage
and banking business with the late Ed
wards Whitaker, from which he retired
in 1888. The firm is now known as
Whitaker & Company. Later still, he
became vice-president of the Union
Casualty Company.
His stories of early life and customs
in St. Louis are particularly interest
ing. He tells of Civil War days when
$10,000 in gold was buried in the base
ment of his drug company. He recalls
the organization of the first St. Louis
ball team, the St. Louis Cyclones; the
great era of railroad building and the
first trial of telegraphy.
He tells of when the government
customs and post office was to be built
eonard

in 1872, his partner and he turned over
the block of property bounded by
Seventh and Eighth and Pine and
Chestnut for the building without tak
ing any commission for themselves.
He shows that the movement to
deepen the Mississippi River began as
far back as 1898 and he was one of
those delegated to Washington “ to
get Congress to deepen the Missis
sippi. ’ ’
Mr. Matthews writes that during the
early days merchants, banks and insur
ance companies kept drinks that were
free to all. He tells of a party at a
St. Louis home.
“ That night, or
rather, the next morning, many car
riages were upset or driven the wrong
way, as each driver had a bottle of
champagne.” In referring to the use
of candles for artificial light, Mr. Mat
thews says: “ The social standing of
our people was frequently alluded to
according to their position as tallow
or spermaceti.”
In writing of slavery he tells of pur
chasing a negro himself. “ In 1848
my father owned several negroes and
sent me to attend a slave auction at
the house of Rocky McPike, a few
miles west of Bowling Green, in Pike
County, Missouri. At this sale I pur
chased Jack, a very fine-looking man,
for $700, taking him home with me.”
The book contains 178 pages and is
written as if he were addressing his
children.

W etm ore and Rawson to B e Qo-Qhairmen o f N ew
Chicago Bank
ITH the announcement December
4 of the merger of the First
National Bank and the Union Trust
Company, Chicago is assured of an
other bank of the first magnitude
among the world’s financial institu
tions.
Growth of the industry and trade
of the central and Mississippi states
and its rapid integration into larger
units of control and operation has
brought a demand for financial serv
ices on an even larger scale. This is
assigned for the main reason of the
merger, but in addition it is designed
to effect economies and to open up
possibilities of enhanced financial ef
ficiency.
The general plan is announced by
the senior officers of the two banks as
follows: “ In order to more nearly
equalize the respective book values of
the First National Bank and the
Union Trust Company, the First Na
tional Bank will, prior to the consol
idation, increase its stock by the is
suance of a 33 1/3 per cent stock divi
dend to its present stockholders, thus
increasing the capital of the First Na
tional Bank from $15,000,000 to $20,000,000. Thereupon the commercial
banking business of the Union Trust
Company will be consolidated with
that! of the First National Bank, which
bank will issue $4,000,000 of stock in
exchange for the total outstanding
capital of the Union Trust Company,
of like amount.
“ After the Union Trust Company

Formed by M erger

F. O. WETMORE

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Federal Reserve Bank of St. Louis

M E L V IN A. TRAYLOR

stockholders have become the holders
of $4,000,000 of stock in the First Na
tional Bank, the latter will issue to
all of its then stockholders $1,000,000
of new stock to be sold at $600 a share
pro rata according to their holdings.
The premium on the $1,000,000 of
stock thus sold, amounting to $5,000,000, will be used to increase the capi
tal of the First Chicago Corporation,
which has full legal power to buy, sell
or hold securities of all kinds.
“ It is contemplated that the name
of the First Trust and Savings Bank
be changed to the First Union Trust

H. A. W H EE LER

and Savings Bank, or a name similar
thereto. It will, under state charter,
continue the trust, savings, bond and
real estate loan business now conducted
by the Union Trust Company and the
First Trust and Savings Bank and be
the legal successor to both these banks.
The stock of the First Union Trust and
Savings Bank, together with the stock
of the First Chicago Corporation, will
continue to be held for the benefit of
the stockholders of the First National,
including of course those stockholders
of the Union Trust Company who be
come stockholders of the First Na
tional Bank as the result of the consol
idation. The commercial banking busi
ness of all three banks will be con
ducted by the enlarged First National
Bank of Chicago operating under a
Federal charter.”
F.
O. Wetmore and F. H. Rawson
will be co-chairmen of the consolidated
bank. H. A. Wheeler will be vicechairman and M. A. Traylor, presi
dent. Craig B. Hazlewood, president
of the American Bankers Association
and vice-president of the Union Trust
Company, and B. G. McCloud, vicepresident, Avill be elected vice-presi
dents of the First National Bank.
These officers, together with Edward
E. Brown and John P. Oleson, vicepresidents of the First National, will
complete the general staff. C. R.
Holden, vice-president and general
counsel of the Union Trust Company,
will become a vice-president of both
the First National and the First Union

F. H. RAW SON

January, 1929

M id-C ontinent B anker

Trust and Savings Bank. All other
Union Trust Company officers will be
placed in similar positions in the con
solidated bank .to those they now hold
and with proper titles.
This consolidation, resulting in a
larger capitalization, will enable the
consolidated bank to benefit greatly
all its customers and clients through
not only the increased loaning power,
but the increased facilities in every
other way. They will continue to do
their business with the same officers
they have heretofore come in contact
with, and in addition will be brought
into contact with many other officers
of the consolidated bank.
The Union Trust Company will give
up its present banking office which will

be disposed of at the earliest favorable
opportunity.
Combination of the last published
statements of all three of the institu
tions affected by the present merger
gives an indication of the business, and
resources with which the new bank will
begin its work.
As of October 3, 1928, the total de
posits were, $491,027,141.36, an ag
gregate exceeded by only two Amer
ican banks outside of New York City
and by six in New York. Total as
sets as of October 3 were $584,935,808.19. The combined loans and dis
counts of the institutions amounted to
$396,161,432.37. They held $30,314,294.60 of United States securities and
$42,497,790.94 of other bonds and se

curities. Cash and money due from
banks aggregated $100,043,531.07. The
buildings, leaseholds and vaults were
carried at $9,552,359.87, other assets
$878,075.32. In the liabilities of $584,935,808.19 were included capital, sur
plus and undivided profits of $69,498,729.97.
What They Own
Angry Motorist: 1‘ Some of you pe
destrians walk along just as if you
owned the streets. ’ ’
Irate Pedestrian: “ Yes, and some of
you motorists drive around as if you
owned the ca r! ’ ’
Don’t knock your competitor. Study
his methods and improve upon them.

Liability o f ‘D irectors fo r ^Permitting ‘Hank to
Accept D eposits W h ile Insolvent
HE plaintiff had deposited certain
sums of money in the “ X ” Bank,
during the year 1923. The “ X ” Bank
had been in charge of the state finance
commission, and in 1922 had been re
organized, and the defendants were
elected directors. The petition alleges
that at the time of the said deposits
the bank was insolvent, or in a failing
condition, and that the defendants, as
directors, knew the bank’s condition.
It was first asserted in this suit that
the finance commissioner was the only
person who could institute this action,
but the court held against this conten
tion and that the depositor could bring
this action. Most of the deposits were
made in the months of January and
February, 1923, and in July, 1923, the
“ X ” Bank had over $60,000 of notes
which were more than 30 days past
due.
It was held by the court that the
plaintiff was required to show that the
bank was insolvent when the deposits
were accepted, and that the defendants
had actual knowledge of its insolvency
at such time, and that such insolvency
was not proven by showing that the
bank held past due uncollected notes,
without showing what effort had been
made to collect such notes and that
they were in fact worthless and uncol
lectible. Insolvency, as applied to
banks, is defined as inability to pay
debts in the usual and ordinary course
of business. Another test of solvency
is the excess of assets over liabilities.
It also implies as well the present abil
ity of the debtor to pay out of his
estate all of his debts, as also such
condition of his property as that it

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

By the LEGAL EDITOR

Questions of interest to bankers are
discussed by the Legal Editor each
month. Any subscriber has the privi
lege of writing for information and
advice on legal subjects and will re
ceive a direct reply from our attorney,
without fee or expense. A brief of any
subject involving research in a com
plete law library will be furnished for
$10. In writing for information, kind
ly inclose a 2-cent stamp for reply, and
address “ Legal Editor, Mid-Continent
Banker, 408 Olive Street, St. Louis.’ ’

may be reached and subjected by pro
cess of law, without his consent, to the
payment of such debts. Insolvency is
also said to be that condition of affairs
in which a merchant or business man
finds himself when he is unable to meet
his obligations as they mature in the
usual course of business.
A bank is in failing circumstances
when in a state of uncertainty whether
it will be able to sustain itself, depend
ing upon favorable or unfavorable con
tingencies, which in the course of busi
ness may occur, and over which its
officers have no control.
The court said: “ The position of an
officer of a state bank with respect to
the reception of deposits is not an en
viable one whenever there is any ques
tion of the impairment of the assets of
his bank. I f there is any possibility
that his bank may subsequently be

deemed insolvent, through its failure
to realize on assets whose immediate
value is affected by temporary condi
tions, acceptance of deposits is peril
ous because the statute makes the sub
sequent failure prima facie evidence of
his knowledge of such insolvency. If,
out of abundance of caution, he refuses
to accept a deposit, he may just as
well call his board of directors together
and send for the commissioner of
finance to come and take charge of his
bank. Such course might cause un
necessary loss to other depositors and
his stockholders. He is torn between
fear of the penitentiary and his duty
to his bank and its depositors. In
such situation, the bank official can
not justly be chargeable with the ex
act knowledge of his bank’s condition
which a fair and disinterested bank ex
aminer might acquire by carefully go
ing over the assets and liabilities of
the bank. Certainly such officer can
not be held to the same knowledge of
the exact condition which is disclosed
to the liquidating officer who only
comes on the scene after disaster has
overtaken the bank. The test fixed by
the statute is knowledge of insolvency
or knowledge that his bank is in fail
ing circumstances at the time he as
sented to the reception of the deposit.”
In the instant case it was held that
such insolvency and knowledge of such
insolvency was not shown by merely
showing that the bank had past due
uncollected notes, without showing
what effort was made to collect them,
and under the circumstances the de
fendants were not liable to the plain
tiff.

T h e Present Position

the U nited States

International Trade and Finance
NTERNATIONAL trading and in
ternational financing are two busi
ness activities of such small volume
in comparison with our domestic busi
ness and financing that their impor
tance is not realized by the average
man who seldom comes in direct con
tact with either activity. And yet
both our foreign trade and foreign in
vestments have a significance and an
influence on our prosperity far beyond
the mere percentage relationship which
they have to our total volume of trade
and finance. It is probably true—for
actual facts are not known— that our
foreign trade is not much more than
10 per cent of our total domestic trade
and relatively it is not much if any
greater than it was twenty years ago.
But, the character of our exports has
been changing and the significance of
having and increasing foreign markets
is of outstanding importance.
For one hundred years after the
founding of the country the people of
the United States were primarily en
gaged in agriculture and other extrac
tive industries. The surplus products
of these industries sold themselves in
the markets of the world inasmuch as
such products have a world-wide de
mand and do not vary in grade and
quality as do those of the manufac
turing industry.
Our population increased very rapid
ly and in time the manufacturing in
dustry developed, but even so, the
problem of finding markets for these
manufactured articles was not difficult,
since our rapidly increasing popula
tion absorbed the very largest percent
age of these manufactured goods. In
other words, the problem of foreign
markets was for the first one hundred
years of our existence of no very great
significance.
But the situation during the past
fifty, and especially during the past
twenty-five years, has greatly changed.
The manufacturing industry in many
sections of the country has developed
so rapidly that the physical produc
tive capacity is now so great that the
domestic market no longer can absorb
the production. There have been a
great number of inventions and the
application of science to the industry
has been so extensive that the United
States has been among the nations of
the world the best example of a scien
tific organization of the manufactur-

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

By DR. W . F. GEPHART
Vice-President, First National Bank,
St. Louis
iiiiiiiiiim m im iiiiiiiiiiim m iiiiiiim iiiim iiiim iim m im iiiiiiii

This article is taken from an ad
dress made by Dr. Gephart before the
Foreign Trade Club of Houston, Texas.
Dr. Gephart says, “ The United States
has definitely become an international
investing as well as an international
trading nation. Economically, social
ly, and politically, whatever some of
our citizens may think or wish, we are
a member of the family of nations and
must interest ourselves in whatever oc
curs in any part of the world.”
im ii ii i ii i ii ii iii iii iii iii iii iii iii iii i iii iii iii iii iii iii iii iii i iii iii iii iii n ii

ing industry, which peculiarly ex
presses itself in mass production and
low unit cost. One of the outstanding
problems today in American business
is, therefore, that of how to secure and
hold foreign markets for our surplus
producing capacity. While we con
tinue to have a surplus of some prod
ucts in the agricultural and extractive
industries, yet the most striking
change during recent years in our ex
port trade has been the increase of
manufactured and semi-manufactured
products and the importation of crude
and semi-finished raw products to be
used in our manufacturing industries.
Before surveying the present status
of our international trade it is well
to clearly understand just what the
economic significance of a market for
our surplus productive capacity in the
manufacturing lines really is. Al
though the domestic market in most
manufacturing lines does absorb the
vast majority of our products, yet it
is this small percentage which may be
called the marginal part that must
find a market in foreign countries.
The relation of this marginal part to
our mass production and low unit cost
is of the greatest significance. Much
of the ability to produce at a low unit
cost while paying high wages is very
directly dependent upon the market
ing of this marginal surplus.
T is well, therefore, before discuss
ing the future of our foreign trade
and foreign financing to understand
clearly what the present situation is

with respect to both the products sold
and the markets of the world in which
we are now selling as well as any un
derlying changes that are occurring.
International trade has not yet re
covered from the effects of the World
War, although during the past sev
eral years very gratifying progress has
been made. The 72 principal interna
tional trading nations had an export
trade in 1913 of about 20 billion dol
lars and in 1925 this trade amounted
to about 21 billion dollars as measured
by the 1913 values, thus representing
a very small gain and far below what
it would have been had not the de
structive effects of the World War oc
curred. In 1927, the 82 leading inter
national trading nations which have
about 95 per cent of the world’s trade
had exports as measured by 1913 val
ues of about 22j/2 billion dollars. In
other words, between the years 1913
and 1927, the world had increased its
export trade as measured by the 1913
dollar only about 2^2 billion dollars.
I f a further analysis of these statis
tics is made it will be found that the
chief gain in our exports has occur
red during the past three years which
is indicative of the rapidity with which
the ravages of the World War as re
gards international trading are being
displaced. The amount of the world’s
export trade is, however, now undoubt
edly much less than it would have been
had it not been for the interruptions
of the great war. In 1900, the ag
gregate export trade of the world was
only about 10 billion dollars but by
1913, it had practically doubled during
a period of thirteen years, notwith
standing that during this time the
Russian-Japanese war and the Balkan
war had occurred. But from 1913 to
1927 instead of the exports becoming
40 odd billion dollars, as they would
have done had the same rate of in
crease occurred as between 1900 and
1913 they amounted only to 21^2 bil
lion dollars on the basis of the 1913
dollar. Otherwise expressed, there is
an accumulated shortage of world ex
ports during the past fifteen years
which amounts to over 200 billion dol
lars. I f anyone doubts the costliness
of war they have only to go into an
analysis of the statistics of interna
tional trade.
One of the most outstanding char
acteristics of the export trade of the
23

24
world during the past three years has
been the remarkable advance made by
Europe. The 27 nations of Europe
since 1925 have increased their export
trade by about 10 per cent and are now
within about 90 per cent of the vol
ume of export trade which they had
in 1913, although if the war had not
intervened the volume would have been
many times greater than that of the
year 1913. During the period from
1913 to 1927 our foreign trade has in
creased by over 1 billion dollars, while
that of the rest of the world has in
creased by only a little more than
twice as much based upon 1913 values.
Of the European countries the most
notable progress during the past sev
eral years has been made by Germany,
whose exports have increased between
1925 and 1927 about 22 per cent. In
1925, Germany was exporting only
about 58 per cent of her pre-war ex
ports but she has now raised that per
centage to more than 70 and has
passed France to become the world’s
third largest exporting nation. Eng
land, owing to the very serious effect
of the coal strike, has had a decrease
in her foreign trade since 1925 and
is not yet up to its 1913 volume, but
probably when statistics are available
for 1928, she will have equalled at
least her 1913 record. Another strik
ing fact about the export trade of
Europe is the remarkable gain shown
by the eastern European countries, es
pecially, Russia, Roumania, Czecho
slovakia, and Poland.
In other parts of the world the one
section that shows the most notable
increase has been South America and
the rapidity with which many of these
nations are advancing in an indus
trial way is of outstanding importance
to the people of the United States, and
especially to those of the Middle West
and South who are geographically and
economically in a position to share
largely in this trade. During the past
ten years these South American coun
tries have increased their exports 13
per cent and as compared with 1913
have made an increase of about 29 per
cent. Europe still leads all continents
as an exporter, being twice as great as
Forth America, its nearest competitor.
Among nations, the United States has
replaced England as a leader in ex
ports. In the pre-war period, the
United States was second with about
12 per cent of the world’s exports and
we are now first with about 16 per
cent and England has taken our place
as second with about the same percent
age as we had before the war—name
ly, 12 per cent. Germany still ranks
third as an exporting nation as she
did in 1913.

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Federal Reserve Bank of St. Louis

M id-C ontinent B anker

It is scarcely necessary to discuss
the significance of the invisible exports
and imports by any great international
trading nation. It is quite apparent
that these in many respects play just
as important a role as does the export
or import of commodities. I f Ameri
can tourists spend 700 million dollars
annually in Europe, this, so far as
international exchange and interna
tional trade is concerned, is largely
the same as if Europe had exported
to us 700 million dollars worth of com
modities. There are many other forms
of invisible exports and imports, such
as remittances sent by recent immi
grants, freight charges, insurance pre
miums, etc., each of which has its in
fluence upon the settlement of interna
tional balances.
UMMARIZING the situation then
so far as our foreign trade is con
cerned, we find:
F irst: That we are definitely pass
ing out of the stage where the great
bulk of our exports consist of agri
culture and other raw products of the
extractive industries, although we shall
for many years have an export trade
in these products. However, our pop
ulation has increased so rapidly that
we are using an increasing amount of
these products. Our standard of liv
ing is so high that our per capita de
mand for consumption goods is great
er than it was fifty years ago.
Second: There has been a very rapid
development of our manufacturing in
dustry characterized by the enormous
use of labor saving machinery, the
adoption of new appliances, the appli
cation of science and more efficient

Effectiveness in Magazine
Advertising
In all magazines, popular, trade,
or class, the cover space brings a
higher advertising rate than the
inside pages. Professor George B.
Hotchkiss, of the Bureau of Busi
ness Research of New York Uni
versity, made a comprehensive test
of comparative values of different
positions in magazines, and found
the following relative values :
Using a full page, black and
white, as the standard, 100% :
page has avalueo f ......... 47%
% page has a value of . . . . 71%
1 page has avalue o f ............ 100%
1 page of color has a value
of ..................................... 113%
1 double-spread page has a
value of ........................... 114%
Inside front cover has a
value of
....................... 263%
Back Cover has value of . .. 281%

January, 1929
business organization of industry, all
of which has resulted in mass pro
duction and low unit cost and thereby
creating an increasing arhount and va
riety of manufactured products which
must find a foreign market.
Third: The high standard o f living
of our people creates a demand for a
great variety of imported products
from all parts of the world.
Fourth: The highly diversified char
acter of our manufacturing industry
requires the importation of an increas
ing amount of raw and semifinished
products.
F ifth : The rapid increase in the
wealth of our people makes possible
the investment of our capital in many
foreign nations.
Sixth: Our proximity to the coun
tries of the North— Canada— and the
Latin American countries with their
vast amount of undeveloped natural
resources supplies a particularly good
field for the investment of our surplus
capital. At the same time there is af
forded a natural basis for a mutually
profitable international trade with
these nations, since in many instances
the products of these nations are com
plementary to those of the United
States.
The position of the United States
in international finance is relatively
so new that it is an extremely difficult
matter to obtain reliable and complete
facts about the subject. We well
know that the United States for many
years after the formation of the coun
try absorbed from Europe in partic
ular and from the world in general
large amounts of capital. In order to
exploit our natural resources, to build
our railways and canals, and in nu
merous other ways to build up our in
dustrial organization our capital re
quirements were large. Europe, be
cause of its age, the high development
of its industrial system and the large
accumulations of savings was the chief
source of our supply of capital. It
was to this continent in particular that
we looked not only for our financing
but also for our labor supply, the two
requisites that any new country must
have for the exploitation of its nat
ural resources and the building up of
an industrial organization.
There is no adequate source of in
formation as to the extent o f European
capital invested in this country pre
ceding the outbreak of the great war,
but it is safe to state that it amounted
to several billions of dollars. What
ever American capital was invested
abroad before the war was in the na
ture of private direct investments. Very
little of it represented the holding of
(Continued on page 34)

iMississippi ^Valley ^Merchants Truft Com pany
Is Form ed by M erger o f Tw o St. Louis Banks
HE Mississippi Valley Trust Com
pany and the Merchants-Laclede
National Bank of St. Louis will be
merged into one institution to be
known as the Mississippi Valley Mer
chants Trust Company.
The consolidated banks will have de
posits in excess of $60,000,000. The
present combined capital, surplus and
undivided profits of the two banks now
total $12,000,000, but the merged bank
will have capital of $5,000,000, sur
plus $2,500,000 and $1,000,000 of un
divided profits, totaling $8,500,000.
Stockholders of the two banks will re
ceive $3,701,581 on the basis of the
reorganization, this amount to be dis
tributed “ from time to time” follow
ing the completion of the merger.
The new bank will be the third lar
gest in St. Louis in point of deposits,
and will rank fourth in capital, sur
plus and undivided profits.
George E. Hoffman, now president
of the Merchants-Laclede Bank, will be
chairman of the board of the new in
stitution, and J. Sheppard Smith, pres
ident of the Mississippi Valley, will
be president. The entire staff of each
bank will be retained in the merger.
The quarters of the two banks which
now adjoin each other, occupying the
entire west side of Fourth Street from
Olive to Pine, will be retained and
made into one banking house. A plan
for remodeling the interior is now be
ing worked out by architects.
Besides President Smith, the prin
cipal officers of the Mississippi Val
ley are: Vice-presidents Hord Har-

J. SHEPPARD SM ITH

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Federal Reserve Bank of St. Louis

din, John R. Longmire, who is bond
officer; A. Holt Roudebush, counsel;
Guy C. Phillips, T. J. Kavanaugh,
James A. Weaver, Dan W. Jones and
Ralph W. Bugbee. C. H. Turner, Jr.,
is secretary; Fred A. Gissler, trust o f
ficer; William R. Cady, real estate o f
ficer; Samuel B. Blair, mortgage loan
officer; Herbert S. Heil, safe deposit
officer; James M. Turley, auditor; O.
A. Rowland, credit manager, and W.
A. Crockett, savings manager.
Directors are Eugene H. Benoist, Au
gust A. Busch, Jr., Herbert D. Condie,
Shelby H. Curlee, Nelson R. Darragh,
John Duncan, J. D. P. Francis, Fred
erick D. Gardner, Arthur C. Garrison,
Columhus Haile, Frank R. Henry, W il
liam G. Lackey, Frank J. Lewis, George
A. Mahan, Edwin H. Peters, Charles
E. Schaff, Richard T. Shelton, Brad
ford Shinkle, J. Sheppard Smith, Ar
nold G. Stifel, Clement Studebaker,
Jr., George S. Tiffany and J. Gates
Williams.
Breckinridge Jones, who died last
November 21, was chairman of the
board.
The Mississippi Valley, according to
the statement of June 30, has capital
of $3,000,000, surplus and undivided
profits of $5,317,879, and deposits of
$38,989,468.
Besides President Hoffman, officers
of the Merchants-Laclede are A. L.
Shapleigh, W. J. Bramman and W. J.
Hein, vice-presidents; J. P. Bergs,
cashier, and C. M. Walter and J. F.
Reuter, assistant cashiers.
Directors are: W. W. Alexander,
Judson S. Bemis, W. J. Bramman,
John A. Bush, E. P. Cave, AV. Palmer
Clarkson, R. C. Day, D. R. Francis,
Elias S. Gatch, Ewing Hill, George E.
Hoffman, E. R. Hoyt, Thomas S. Lytle,
Stewart McDonald, Benjamin McKeen,
Dick Oliver, W. J. Polk, F. D. Seward,
A. L. Shapleigh and Louis B. AVoodward.
The June 30 statement showed the
Merchants-Laclede
with
$1,700,000
capita], $2,018,016 surplus and undi
vided profits and $19,706,071 deposits.
Both banks have long played an
important part in the financial his
tory of St. Louis and are among the
city’s oldest financial institutions.
The Mississippi Valley was founded
in 1890, under the leadership of the
late Julius S. Walsh, who was presi
dent for a number of years, later be
coming chairman of the board and be
ing succeeded in the presidency by Mr.

Jones. Following Mr. Walsh’s death
Mr. Jones became chairman of the
board and was succeeded in turn by
J. Sheppard Smith.
The Merchants-Laclede has had an
even longer life. The Merchants Bank
was chartered by the state in 1857. In
1865, after the Civil AVar, it was pro
posed to reorganize as a national bank
with a capital of $700,000. This was
a heavy capitalization for St. Louis of
that day and James E. Yeatman, cash
ier, was sent to New York where he
was successful in securing subscrip
tions to a considerable portion of the
total stock.
The Laclede Bank was originally the
banking house of Bartholow, Lewis
& Co., formed soon after the Civil AVar,
with Gen. Bartholow, of the Union
Army, in charge, and William J. Lewis
and John D. Perry associated with
him. It was a partnership at first and
was later incorporated in 1872. In
1881 the firm became the Laclede Bank,
with John D. Perry as president. In
1885 the Valley National was merged
with the Laclede, the consolidation
forming the Laclede National, with
Samuel E. Hoffman as president. Mr.
Hoffman was president until 1895,
when the Laclede National united with
the Merchants National, forming the
Merchants-Laclede National with AVilliam H. Lee as president. Mr. Lee be
came chairman of the board several
years ago and was succeeded in the
presidency by George E. Hoffman.

GEO. E. H O FFM AN
25

A QuSlomers’ Qredit Book That G ives Us Qomplete
Information on A ll o f Our Borrowers
COMPLETE knowledge of the
the same. Then when “ Bill Jones”
By H. J. WERNSING
credit rating of a cummunity is
comes in to renew his note or borrow
President, Greenview State Bank,
a vital factor in any business. In
some more money, a glance at his
Greenview, 111.
banking this is particularly so. Yet it
sheet reminds you of something that
is surprising to learn that many bank
we really use our credit book as a you heard six months before. It
ers attempt to carry all the inform asupplement to a statement. The infor gives one a decided advantage to
tion received regarding the habits, mation in the credit book is really an know, without having to ask him, that
character, family life and business aid to the customer who has given an Bill has bought a new car or has been
management of their customers in their honest financial statement and at the mismanaging his affairs in some way.
minds when this information should same time gives one a better insight
One does not even have to remember
be, in some manner, filed
dates in any specific
away for easy refer
case because the infor
ence.
mation is written under
------------------------------------------------------------------------------------------------------- -------------------------------------------------------------.
There are doubtless
his name in the credit
many ways of keeping in
book. Opinions and con
W illia m J . Jon es
formation regarding cus
versations can be framed
R I E.tate
R. E. Encumbrance*
MtK. d a te d 3 / l / 2 6
160 a c r e s .
tomers.
In our bank
XX i
accordingly from this.
H
eld
b
y
W
.N
.L
ife
Ir
s
•
NW £ S e c t io n 2 1 ,
C >.
Term s, 5 y e a r s , 5 ^
2 0 0 0 .0 0
Tn 1 9 , R 5 .
we keep for this pur
A glance at the il
I n t e r e s t p a ya b le
pose a very simple loose
s e m ia n n u a lly
60l0 ) ,00
lustration of the sam
leaf, indexed b i n d e r
ple sheet on this page
with its sheets classified
shows clearly the type
Personal
Bourfit c a r 4 /7 /2 8
. 22, 1928.
as shown in the accomof information used and
a t $ 5 0 0 .0 0 , $ 2 0 0 .OC
3 0 0 .0 0
5 cows
50 s h o u t s , 75 l b s .
3 5 0 .0 0
down, b a la n c e in
p a n y i n g illustration.
its value in giving nec
m on th ly in s ta llm e n t 3
7 h orses
35 0 .0 0
2 m ules
o f $ 2 5 .0 0
I 5 0 .0 0
This classification was
i 25 ,00
essary information to
c/m gn c o r n Farm ers
Farm im plem ents
TOo o . oo
evolved by our cashier,
1 0 ) ,00
2000 bu c o r n
13 0 0 .0 0
the banker.
Paul V. Deames, and
s o n ’ s n o te f o r
10 00 ,00
Tax Valuation*
Last but not least
Land
[2 0 0 0 .0 0
covers most of the items
3 0 0 .0 0
P erson al
important in keeping
which are of interest
this record is the in
Dr!TTT? „i ,
to us concerning our
T T ~
formation passed be
Far mlng
borrowers and potential
tween banks which op
borrowers.
Life In.urance
Cream, b u t t e r , eccrs
erate within our dis
50 00 .00
a v e ra g e $ 5 0 .0 0 pe£
M .X . L i f e I n s . C o.
A sheet in this book
m onth .
W ifo i s b e h e f i c i a r
trict. Of course in ex
is allowed each person
changing information in
Also Bank. With
and the methods we em
this way there must be
ploy in keeping it upsome sort of coopera
Property In Wife’. Name
50 a . a d jo i n i n g
85 OO ,00
to-date are very simple.
tion
between the banks,
C le a r .
Our first information of
b eh in d l a s t 3 v r s .
which is best obtained
S lo w .
course comes from the
from some sort of a
Father’. Name
customer himself.
We
Lea...
Acre.
county
organization.
D eceased
Owned By
i n t e r v i e w him and
When credit informa
........... .
L
gather as much informa
A J—
tion is freely exchanged
i n t e r e s t in 80 a . lar 1
_ l ____________________________
tion as possible without
v a lu e d a t $ 1 8 0 .0 0 peí
between banks in a dis
acre.
giving the interview the
trict, this file is partic
aspect of a cross exam
ularly effective in as
ination which so often
sembling information so
Sample customers’ credit sheet.
irritates t h e p e r s o n
that it is easily ac
q u e s t i o n e d . We all
cessible.
know that in giving a financial state into the character of the man who has
A sheet in our credit book, although
ment many borrowers become afflicted misrepresented his.
necessarily similar to a financial
with a lapse of memory or an exag
As I have pointed out, we pay atten statement, is more in detail and more
gerated view of their actual worth.
tion to the rumor and gossip of the personal. The information is easily
Individual financial statements are street, simply because it is an old es acquired and it is important that it
very good as far as they go, but to re tablished fact that information con be kept up-to-date.
inforce the information we obtain
cerning citizens of a community gen
from the individual the active employes
erally reaches the ears of the man on
Poverty, like many other miseries of
and interested friends of the bank the street before it reaches the ears life, is often little more than an imag
keep an “ ear to the ground’ ’ for the
of those most vitally interested. When
inary calamity. Men often call them
rumor and gossip of the street.
we get information from this source
selves poor, not because they want
Of course we do not under-estimate it may be good, bad or indifferent, but
necessaries, but because they have not
the value of a financial statement and it is written into the credit book just
more than they want.—Johnson.

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Federal Reserve Bank of St. Louis

January, 1929

M id - C o n t i n e n t R

a n k e r,

Officers of the Merged Bank
H enry C. F lower
Chairman o f Board

¿Meeting

Joh n F. D owning
Chairman, Executive Com.
L ester W . H all
President
George T. T remble
Vice-President
G eorge G. M oore
Vice-President
D. A. M cD onald
Vice-President
R obert J. C ampbell
Vice-President
A lfred D. R ider
Vice-President
F rederic T. C hilds
Vice-President
A lbert R. Strother
Vice-Pres. and Trust Officer
!

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

A lbert H. S mith
Cashier
D ouglas W allace
Assistant Vice-President
C harles O. D avis
Assistant Vice-President
E. J. M cC reary, Jr.
Assistant Vice-President
W

illiam P hares
Assistant Vice-President

E. R. S wentzel
Assistant Vice-President
D. M. Connor
Assistant Cashier

January 2, 1929 the merger of the Fidelity Na
tional Bank and Trust Company and New England
National Bank and Trust Company was completed
and the business of the united banks combined un
der the name of the Fidelity National Bank and
Trust Company.
Customers of both former institutions will find
no break in continuity and will feel thoroughly at
home with the united bank for their business will
be handled in identically the same manner as it
has been handled heretofore.
W ith Capital and Surplus of $4,000,000.00 and
total resources of more than $50,000,000.00 we offer
to Kansas City and the Great Southwest a National
Bank which has the largest capital of any National
Bank in Kansas City.
Business in the Southwest has been growing with
great rapidity and it is our feeling that we should
in this reserve city, location of Federal Reserve
Bank No. 10, provide a greater commercial bank
to fit these growing needs.

R obert R. L ester
Assistant Cashier
C h a s . H . G riesa
Assistant Cashier
T homas C. C lark
Assistant Cashier
M rs. K athryn B erkley
Assistant Cashier
W. W. W
Auditor

New Demands

alton

Therefore the united bank offers its services to
this territory and its cooperation in helping to for
ward the growth of the Great Southwest.

J. F. Jamison
Assistant Trust Officer
W

m . E. E stes
Assistant Trust Officer

D a y and alS[ight Transit Service

Fidelity National Bank
w Tru s t Company
“ U N D E R T H E OL D TO W N C L O C K "

K A N S A S C IT Y , M IS S O U R I

Bank o f oAmerica and Central Trust, Chicago,
Consolidate to Form

ters of the Continental National Bank
and Trust Company, which recently
merged with the Illinois Merchants
Trust Company. The Greenebaum in
vestment business will be expanded,
according to W. J. Greenebaum, vicepresident, and will occupy the entire
banking floor of the Bank of America
building.

of the Bank of
America of Chicago by the Cen
tral Trust Company of Illinois has been
agreed upon by the directors of both
institutions. The stockholders of both
banks will be called to act on the pro
posal during the first week of January.
According to officials of the banks,
total assets of the consolidated insti
tution will be approximately $160,000,000, including deposits of about $133,000,000 and combined capital surplus
and undivided profits of approximately

c q u is it io n

N ew Y ork Banks W ith H alf
Billion Resources M erge

$ 21 ,000 , 000 .

Under the plan agreed on by the di
rectors, the Consolidated bank will
keeip the name of the Central Trust
Coijnpany of Illinois and will have a
capital stock of $10,500,000, of which
$8,000,000 is represented by the pres
ent outstanding capital stock of the
Central Trust Company. The stock of
the Bank of America will be repre
sented by outstanding stock valued at
$2,500,000. The new stock of the
merged banks will be issued to Bank
of America stockholders on a share
for share basis.
The officers of both banks expect
that at the time the consolidation will,
be effective the book value of the stock
of both institutions will be substan
tially the same. The stockholders of
the Bank of America will be given the
privilege of purchasing at asset value
shares of the Central Securities Corpo
ration, the Central Trust Company’s in
vestment subsidiary.

C. H OW ARD

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Federal Reserve Bank of St. Louis

M A R FIELD

Bank

JOSEPH E. OTIS

Charles G. Dawes, retiring vicepresident of the United States, wn.ll
become chairman of the board of di
rectors of the new bank after March
4 when the Hoover administration is
inaugurated. M. E. Greenebaum, now
chairman of the board of the Bank
of America, will be vice-chairman of
the board, and C. Howard Marfield,
president of the Bank of America, will
take the office of chairman of the exe
cutive committee.
Joseph E. Otis, president of the
Central Trust Company, will remain
president and chief executive officer.
The Greenebaum Investment Com
pany will remain in existence, not fig
uring in the consolidation.
After the merger is effective the en
larged bank will move into the quar-

CHAS. G. D A W E S

Banking resources totaling approxi
mately $500,000,000 will be brought
under centralized control through a
plan, announced December 20, for an
affiiliation of the Bank of Manhattan
Company and the International Ac
ceptance Bank, Inc., which was or
ganized by Paul M. Warburg seven
years ago.
The plan is not to merge the two
institutions, but rather to merge the
two groups of shareholders by an ex
change of securities, maintaining the
International Acceptance Bank, Inc.,
as a separate and distinct institution
functioning as it does today.
J. Stewart Baker, president of the
Bank of Manhattan Company, will be
come vice-chairman of the board of
the International Acceptance Bank.
P. Abbot Goodhue will remain as
president of the International Accept
ance Bank and will become a member
of the board of the Bank of Manhattan
Company.

G REEN EBAU M

January, 1929

id - C o n t i n e n t

anker

M armor N ow W ith Liberty
Bank and Trust Company
Joseph P. Marmor, for the past
eighteen years connected with the Fi
delity and Columbia Trust Company
of Louisville, Kentucky, has resigned
as cashier of that institution to be
come vice-president and trust officer
of the Liberty Bank and Trust Com
pany of Louisville.
Mr. Marmor will be associated with
William S. Kammerer in the trust de
partment. He will divide his time be
tween the main office and the Fourth
Street office, spending most of his time
at the latter.
Wilbur C. Fisher, assistant trust of
ficer, will retain his position at the
main office.
Mr. Marmor was superintendent and
assistant general manager of the Louis-

SO M E W A Y S
W E HELP

customers wish to

b a n k s

Buy or Sell
Stocks or Bonds

C re d it
In fo rm a tio n
In ve stm en t
In fo rm a tio n

A wire or letter to our offices

F o re ig n B a n k in g
F acilities

w ill put you in quick touch
w ith markets for either pur

B an kers
A c cep tan ces

chase or disposal o f securities.
We can execute orders for our

T ru s t
Services

out-of-town customers w ith as
much promptness as if our doors

P urch ase o r
Sale o f S to ck s
o r Bonds

adjoined.

Our experience in

sures intelligent understanding
o f your instructions.

M a rk e tin g
In fo rm a tio n
P erso n al
S e rv ic e

JOSEPH P. M ARM OR

ville Woolen Mills before he became
connected with the Fidelity and Co
lumbia Trust Company. He began as
manager of the stock transfer depart
ment, was promoted to assistant treas
urer and five years ago was made cash
ier of the trust company.
Mr. Marmor is a member of the
Louisville Board of Trade, Young
Business Men’s Club, is trustee of St.
Andrews Episcopal Church, and the
church home and infirmary.

The Seaboard

National Bank
OF THE C I T Y OF N E W Y O R K

M A IN
Alw ays on Time

Tommy was meandering homeward
much later than his usual supper time.
A friend of the family who happened
to meet him said:
“ Why, Tommy, aren’t you afraid
you’ll be late for supper?”
“ Nope,” replied Tommy, “ I ’ve got
the meat.”

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Federal Reserve Bank of St. Louis

O F F IC E : B R O A D

AND

BEAVER

STR EETS, N E W

YORK

id - C o n t in e n t

anker

K an sas B an ker Says S ervice Charges
H a v e P ro v ed V ery Successful
HE success and practicability of
service charges, reducing interest
rates and cutting down the number of
days on which interest is charged back
is brought out by H. A. Bryant, presi
dent of the Parsons Commercial Bank
at Parsons, Kansas, in a recent letter to
the M i d - C o n t i n e n t B a n k e r .
He says: “ In the early part of 1925
we found our operating costs had con
stantly increased to a point where it
became necessary for us to take some
corrective measures.
“ At that time we adopted a service
charge of fifty cents per month on ac
tive individual checking accounts with
an average balance under $50.00.

“ Briefly, our experience with this
charge was as follows: During the first
month five hundred ten accounts were
closed, with the total amount of bal
ances withdrawn o f $7,038.03 or an av
erage of $13.80 for each account closed.
About two hundred customers increased
their balance until they were not subject
to the service charge and two hundred
eighty-one customers paid the charge of
fifty cents for the first month. Since
then our average revenue from the serv
ice charge has been $127.00 per month
and we were able to reduce our clerical
force about $200.00 per month. With
the additional income and the reduction
in salaries, together with the saving in

BANK
EQUIPMENT

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Federal Reserve Bank of St. Louis

AMERICAN FIXTURE CO.
KANSAS CITY, MO.

January, 1929
bank books, check books and ledger
supplies, our net saving has been about
$400.00 per month.
“ In addition to all this, our over
drafts resulting from the small active
checking accounts previously carried
have been reduced to a minimum and
the continual annoyance, arising with
customers about overdrafts and return
ed checks has been eliminated.
“ We have five banks in our town,
three of them applied the service charge
at the same time and the other two
banks did not then and have not since
made the service charge. The result
has been that these two banks have ac
cumulated many unprofitable accounts
and according to their own statements
they are not well pleased with the pres
ent arrangement.
“ We are more than pleased with the
application of the service charge from
all these angles and would not think of
going back to our former method.
“ In addition to the above charge we
make a charge o f $1.00 for printing
customers’ names on check books and a
service charge of fifty cents, plus ten
cents per hundred, on Liberty Bonds
and other bonds collected or exchanged.
Also, a charge of twenty-five cents per
hundred for buying bonds for customers
and a charge of fifty cents per hundred
on coupon bonds bought from customers
and $1.00 per hundred on registered
bonds purchased from customers.
“ For years we have been collecting
interest coupons for customers without
a charge. We do not yet make any
charge on Liberty Bond coupons, but
all other coupons which must be sent
direct under registered cover we make a
charge of twenty-five cents for the first
$50.00 and thirty-five cents on any
amount over $50.00 and up to $1,000.00.
“ We have found some little objection
to all of these charges but as a whole,
after our position has been explained,
there has been no objection and the cus
tomers have continued to pay the
charges.
“ Up to 1925 we had been paying in
terest on savings accounts from the first
of each month on deposits made up to
the tenth of any month. At the time
we applied the service charge we re
duced this time to five days, which has
been our practice since that time. We
believe the five-day method is also a
mistake and expect to correct same at
our next interest paying time which is
January 1st and July 1st. We never
have allowed any additional days of
grace on savings accounts during the
two interest paying periods.”
The best form of installment buying
that we know about is when a man
buys his own notes.

Twelve ¿Months "Record o f Progress
A

M o d e l A n n u al R eport

S to ck h o ld ers as S e t F o rth

Ezra W h o o p d in g le , C ash ier o f th e State B a n k o f B ullfinger

S the threshold of a new year is
anced up in the evening with the cash
By ROSCOE MACY
account overdrawn.
reached, it is fitting that the con
Our other real estate account has
scientious banker should make a care
shown a gratifying growth during the
ful review of the record of his hank on the first and third Thursdays of
each month. This has been a great
year. Though we have only a small
during the past twelve months. For
comfort both to ourselves and to our
additional acreage, we have placed in
his own information, he will want to
depositors— and especially to our re operation, since the last visit of the
know exactly what progress has been
ceiving teller, who is permitted to vis
state examiners, a system of valuation
made and in which direction; in some
it
his girl over in Objibway Center on
upon the basis of either cost or market,
extreme cases, it might be all right
alternate Thursdays.
whichever is higher. The results have
even to take his stockholders into his
O u r undi
been so satisfactory to us that
confidence, if they can be trusted to
vided profits
we look for it to be recom
keep the secret. To this end, the bank
executive can do no better than to
mended by the state depart
take as a model the following Report
ment of banking
to Stockholders, which was pre
for adoption in all
pared by Cashier Ezra Whoop
banks under its ju
dingle, of the State Bank of Bullrisdiction. Of course
finger :
the department has
My Fellow-Stockholders
sometimes d i s a pIn describing the busi
pointed us by its
ness of our bank
rulings on matters
during the p a s t
of
this sort, but we
year, we may fit
really do not see
tingly borrow the
how they can over
unique and forceful
look the advantages
phraseology of our
of this system.
nation’s president
On the second
exclaiming with him,
day of last June,
in those words that
we p u r c h a s e d a
will echo and re
Ezra’ s Vigilance Committee receives International recognition.
check-writer which
echo down the cor
was
admitted by its
ridors of history:
account has gained $1,468.92 since a manufacturer to be positively the best
“ 1928 has been a prosperous year! ! ’ ’
on the market. Two weeks later, how
One year ago, our total deposits were year ago, showing a balance today of
ever, we succeeded in buying back our
$88,132.60. Today they stand at $89,- $248.88. To your officers, this clearly
old machine from the merchant on
indicates
that
the
twenty-five
per
cent
060.15! . This gain may be attributed
assessment which we levied in May whom the salesman had unloaded it.
to three principal influences: first, to
good management; secondly, to the of 1928 has not yet been exhausted. By this characteristic quick action, we
corrected what for a time promised
growing confidence of the community Furthermore, the salaries of your man
to be a serious situation, having suf
aging officers are paid up to June of
in the State Bank of Bullfinger; and
fered only temporary inconvenience.
the coming year; this fact is cited as
thirdly, to our educational activities,
During the past twelve months, your
additional proof of the policy of conwhich have just culminated in the flo
officers
have made signal advancement
versatism
uniformly
followed
by
your
tation of a $35,000 bond issue by the
in their chosen profession. The as
officers.
Bullfinger school district, the proceeds
sistant cashier of a year ago is now
On April 14th of the year just
of which bond issue are even now on
cashier, the former cashier having been
passed, we established a record which
deposit with us.
elevated to the vice-presidency, the
will probably stand for generations.
You will notice that the windows of
vice-president has become president,
our bank have just been washed. One We opened for business that morning
and your president of a year ago is
with exactly $33 in currency, and re
year ago today, this had not been done.
(Pray do not misunderstand me. I do mained open throughout the day, bar now out in the country selling stock
remedies, with the idea of getting
not mean that it had not ever been ring occasional periods when one or
enough money together to buy his way
another member of the force was out
done, but that it had not been done
back into the bank as assistant cash
borrowing a five or a ten. Prior to
within the year.)
ier. We are proud to state that in
that
date,
according
to
all
records
With the splendid cooperation of our
our institution there is always room
available, we had never opened up in
depositors, we have during the past
at the top.
year worked out a schedule for bank the morning with less than $125 on
By careful attention to the matter
hand, though we have occasionally bal
runs. Runs on our bank are now held

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Federal Reserve Bank of St. Louis

id - C o n t i n e n t

January 1929

anker

of setting our burglar alarm system
at closing time, we have succeeded in
reducing false night alarms, from
nineteen in 1927 to seventeen in 1928.
We anticipate a further substantial re
duction during the coming year, as the
batteries can’t hold out much longer.
HE problem of loafing in the bank
premises has received our care
ful attention, and, as is usually the
case when your officers attack a prob
lem earnestly, we have arrived at an
ingenious solution. By adhering strict
ly to a screen-door schedule of “ Down
in March, up in August,” and a roomtemperature schedule of “ Plot in sum
mer, cold in winter,” we have prac
tically eliminated outside loafing com
petition, leaving the field almost en
tirely to the working force, as we
sometimes call them.
Early last year, we organized our
annual Vigilance Committee, deputized
under the county sheriff, and armed
by the bank at considerable expense—
as a safeguard against robberies and
holdups. We effect such an organiza
tion each year, and our institution re
ceives untold benefit from this prac
tice— especially in the form of the
country-wide advertising we receive
when the members of each committee
move away during the year, carrying
with them the expensive guns and pis
tols engraved with the name of our
bank. We now have at least one such
weapon in every state of the union,
and several in foreign countries.
Just the other day we received an or
der for two thousand cannons from a
rebel general down in Central America
whose army had obtained a gun with
our name stamped on it, and thought
we were in the gun-making business.
Our bank clock was repaired last
February, and ran for nearly two
weeks. No doubt it would start run
ning again right now if it were wound
and shaken. W e’ll take the matter up
at the directors’ meeting immediately
following this session.
These are only a few of the high
lights in the record of your bank for
the past year. In smaller matters, a
like improvement is shown. Your
vice-president has taken to wearing a
necktie, and the cashier hasn’t had
eggs for breakfast since he had his
vest dry-cleaned. All in all, we have
had a wonderful year.
And now, my stockholders, all your
officers join with me, on this, the oc
casion of your annual meeting, in wish
ing you many happy returns of the
day.

L ouisville N a tio n a l
B a n k & T ru st C o m pa n y
Louisville, Kentucky

N o w under construction; 75 feet w ide and 175 feet
deep; four stories; to be completed M arch, 1929.
A partial list o f banks
n o w under construc
tion bp u s :
Carbondale Nat’l Bank, Carbondale, 111.
South Side Trust Co. - St. Louis, Mo.
Ripley Nat’l Bank - - - Ripley, Ohio
- - Elgin, 111.
Home Banks
First Nat’l Bank - - Wellston, Mo.
Chippewa Trust Co. - - St. Louis, Mo.
First Nat’l Bank - • Loveland, Colo.
Sedalia Nat’l Bank - - Sedalia, Mo.
First Nat’l Bank - ■ Abingdon, 111.

We sh a ll he gla d to explain our Service which includes:
P r e l im in a r y Su r v e y s
A r ch itec tu r al D esigns
*
E n g in e e r i n g
C o n s t r u c t io n
~
I n t e r io r E q u ip m e n t

¿ D e s ig n e r s , E n g i n e e r s and ¿ B u ild ers f o r ¿B anks E x c l u s i v e l y

SAINT

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Federal Reserve Bank of St. Louis

LOUIS

r r

CHICAGO

' / /

MEMPHIS

A town is no worse or better than
the people who live in it.

January, 1929

id - C o n t i n e n t

anker

—
W h a t A r e the Principal
W a y s to D iversify?

Broadcasting
Investment Information
to the Millions
T

H E R E e x ists an “ u r g e n t n e e d fo r m o r e e n lig h t
e n e d u n d e r s ta n d in g o f in v e s t m e n t ,” as C o n g r e s s m a n

L o u i s T . M c F a d d e n e x p r e s s e d it, s p e a k in g last A p r i l
o n th e o p e n in g n ig h t o f th e H a l s e y , S tu a rt & C o . R a d io
P r o g r a m s . “ N e v e r b e fo r e . . . h a v e s o m a n y p e o p le had
a s u r p lu s ,” said M r . M c F a d d e n . “ E m p l o y i n g th is vast
n e tw o r k . . . to b r o a d c a s t th e p r in c ip le s o f s o u n d in
v e s tm e n t is re a lly a u n iq u e u n d e r ta k in g in th e h is to r y
o f fin a n c e .”

H o w to Plan the

T h a t , b r ie fly , in te rp re ts th e rea son f o r and th e p u r p o s e
o f th e ra d io p ro g ra m s s p o n s o r e d b y H a l s e y , S tu a rt &
C o ., b r o a d c a s t ea ch T h u r s d a y e v e n in g o v e r a n e tw o r k

Fam ily’s Financial

o f t w e n t y -s i x s ta t io n s in th e E a s t , S o u th and M id d le

P ro g ra m

W e s t . T h e O l d C o u n s e llo r , w h o has a lr e a d y b e c o m e a
d e fin ite r a d io p e r s o n a lity , a n sw e rs o n th ese p r o g r a m s
q u e s tio n s c o m m o n a m o n g in v e s to r s . H i s s im p le , n o n
te c h n ica l d is c u s s io n s o f in v e s t m e n t p r o b le m s are h ea rd

Is Li
nge A n
* * ? * * * *
S3lability?

ea ch w e e k b y a vast a u d ie n c e o f in te r e s te d listen ers.
F r o m tim e t o tim e , le a d e rs in v a r io u s fie ld s o f b u s
in e ss, in d u s tr y , a n d fin a n ce a lso s p e a k o n th e se p r o
g ra m s. N o t e w o r t h y d u r in g th e p ast m o n th s , in a d d itio n
to M r . M c F a d d e n , h a v e b e e n a d d resses b y G o v e r n o r
R o y A . Y o u n g o f th e F e d e r a l R e s e r v e B o a r d , S a m u el
I n s u ll, Silas H . S traw n , fo r m e r p r e s id e n t o f th e A m e r i
can B ar A s s o c ia t io n a n d C ra ig B . H a z l e w o o d , p re sid e n t
o f th e A m e r ic a n B a n k e r s A s s o c ia t io n . A n in stru m en ta l
e n s e m b le o f s e le c te d artists p r o v i d e s m u s ic o f v a r ie t y
a n d d is tin c tio n .

O f Special Benefit to Banks and Bankers
T h e a u d ie n c e r e a c h e d b y th e s e p r o g r a m s is la rgely
m a d e u p o f b a n k c u s t o m e r s — actual o r p o te n tia l. T h e
h a b it o f in v e s t in g , o r a d esire to in v e s t , leads n a tu ra lly
to th e u s e o f v a r io u s b a n k fa cilities. I t is fe lt, th e r e fo r e ,
th a t th e s e p r o g r a m s are r e n d e r in g a v a lu a b le s e r v i c e to
b a n k s , b o t h in d e v e l o p i n g an in v e s t m e n t se n se a m o n g
th e ir c u s to m e r s a n d in o th e r w is e s tim u la tin g b a n k p a t
r o n a g e . S u p p o r t o f t h e s e p r o g r a m s fr o m b a n k s t o a
g r a tify in g d e g r e e is a lr e a d y e v id e n t , and it is h o p e d th at
th is in te re st a n d s u p p o r t w ill g r o w as b a n k e r s g e n e r a lly
b e c o m e fa m ilia r w ith th e p u r p o s e o f th e u n d e r t a k in g .

HALSEY, STUART & CO.
IN CO RPO RATED

W e shall be glad to mail in a handy pock
et size folder, to any bank official, a
complete set of the more than fifty topics
thus far discussed by the Old Counsellor
and guest speakers. Ask for Folder a c t

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Federal Reserve Bank of St. Louis

Chicago 201
Philadelphia 111
st . louis

S . L a S alle S t.

South F ift e e n t h S t.

319 At

F o u r th S t .

Milwaukee 425

new york

Detroit 601

boston

E a s t W a t e r S t.

W a l l S t.

G r is w o ld S t.

D e v o n s h ir e S t.

Cleveland 925

Pittsburgh 307

Minneapolis 608

E u clid A -v e .

F ifth A v e .

S econ d A v e . , S .

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

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Federal Reserve Bank of St. Louis

January, 1929

anker

Chattanooga Banks Consolidate to Form
Third Largest Bank in Tennessee
ERGER of the First National
Bank, Chattanooga, Tennessee,
and the Chattanooga Savings Bank
and Trust Company has been an
nounced by the directors of the two
institutions.
Through the consolidation of these
two banks, Chattanooga is provided
with the third largest institution in
the state, with capital and surplus of
more than $4,500,000, and in addition
a trust company with a capital of $1,000,000; deposits in excess of $25,000,000; and total resources exceeding
$32,000,000. These figures do not in
clude the trust assets of the two insti
tutions amounting to approximately
$22,000,000, making a total of $54,000,000 of assets administered by the
bank.
After all financing in connection
with the merger has been completed,
which will include the sale of some
additional stock, the First National
Bank and its affiliates, the First Se
curities Company and the Chattanooga
Savings Bank and Trust Company, will
have an invested capital of more than
$5,500,000, the First National Bank
having a capital of $2,500,000, surplus
and undivided profits of $2,100,000, and
the Chattanooga Savings Bank and
Trust Company and the First Securi
ties Company a combined capital of
approximately $1,000,000.
Under the terms o f the merger
the stock of the Chattanooga Savings
Bank and Trust Company and the
First Securities Company will be held
by trustees for the pro rata benefit of
the First National Bank.
The business of the First National
Bank will be conducted in the build
ing owned by the Chattanooga Sav
ings Bank and Trust Company. The
banking rooms will be arranged so as
to take care of the additional business.
Under the terms of the agreement, the
Chattanooga Savings Bank and Trust
Company and the First Securities
Company do not surrender their char
ters or lose their identity.
J. P. Hoskins, president of the First
National Bank, is to be president of
the new institution. W. A. Sadd,
president of the Chattanooga Savings
Bank and Trust Company, is to be
chairman of the board of directors,
with Z. C. Patten and W. E. Brock
as chairman and vice-chairman, re
spectively, of the executive committee.
The consolidation brings together
two of Chattanooga’s oldest banks,

the First National having been estab
lished in 1862 and the Chattanooga
Savings Bank and Trust Company in
1889.
J. P. Hoskins, president of the First
National Bank, made the following
statement in regard to the merger :
“ The relationship between the First
National Bank and the Chattanooga
Savings Bank and Trust Company has
always been close and cordial and the
scope of activity of the two institu
tions has been along somewhat differ
ent lines. Officials and directors of
the two institutions feel that by con
solidating the two banks much du
plication of effort can be eliminated.
“ Negotiations for the consolidation
have been pending for some time, and
we have had to deny rumors we were
contemplating a consolidation until o f
ficial action had been taken by the
directors of both banks.”
In commenting on the merger, W. A.
Sadd made the following statement:
‘ £The officers and directors of the
Chattanooga Savings and Trust Com
pany realize that this is a period of
consolidations and mergers, and hav
ing in view what was best for the com
munity, the city and state, feel that
this combination will be of great bene
fit to all. With the enlarged capital
o f the combined institutions, all busi
ness propositions can be handled with
greater facility and ease, and same
will place our city in the lead by hav
ing one of the largest financial insti
tutions in the South.”

Present

Position

United

States in International Trade
(Continued from page 24)

securities of foreign governments or of
foreign corporations. It was largely
invested in branch plants and subsid
iaries of American corporations. In
terest rates in the United States were,
as in all comparatively new countries,
so much higher than in the old na
tions of Europe that even if we had
not had need of all of our surplus cap
ital in our own country, the difference
in the prevailing interest rate would
have prevented its investment in Eu
rope. In other words, we were before
the World War decidedly a debtor
nation, even though our American
manufacturing companies had certain
amounts invested in their branch
plants in Canada and Europe and in

January, 1929
mining companies in the Latin Amer
ican countries, oil companies in Mex
ico, in the Far East, and such other
minor investments as that of our
sugar companies and fruit companies
in the West Indies and the Latin
American countries.
But the capital invested by these
American companies was made out of
their own assets or on the basis of
general credit and not by the issue
of securities to the general American
public. This method of direct pri
vate investment has continued with
out interruption up to the present
time, notwithstanding the large volume
of securities of foreign nations which
have within recent years been floated
in the United States. It is well to
remember, however, that American
companies are still directly investing
their capital in mining and oil develop
ments in Latin America, in the Far
East, in sugar plantations, in rubber
plantations, in packing plants in South
America, and in many other ways and
in many other countries. There is al
so somewhat of a disposition to secure
capital for these foreign investments
by American corporations by the sale
of securities to the public since we
have, during recent years, become more
familiar with the securities of foreign
corporations and foreign governments.
Many have believed that the people of
the United States would show a dis
position to purchase more largely cor
porate securities from foreign nations
since our investors became acquainted
during and since the war with the
bonds of foreign governments. That
is, we would be willing to take a pro
prietary interest in the foreign corpo
rations through a purchase of their
stocks and bonds, just as the English,
the Dutch, and the people o f other Eu
ropean nations have long since been
accustomed to purchase our corporate
securities.
The Department of Commerce has
recently made an analysis of the situa
tion and among other things it shows
that during the year 1926-27 corporate
loans were very definitely established
from these countries and that during
these years corporate securities sold
in the United States were greater in
volume and in amount than govern
ment securities. But nevertheless, the
larger proportion of these corporate
securities that were sold to us were
bonds rather than stocks and in many
cases these corporate bonds were guar
anteed by foreign governments. There
is no indication at the present time
that the American investor is disposed
in any large way to assume a proprie
tary relationship to foreign corpora
tions through the ownership of their

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Federal Reserve Bank of St. Louis

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

anker

H A T is tlie chief
reason for an exceptional
reputation in hanking and
trust w ork?
— an inquiry.

IR E C T

dealing,

a minimum o f red tape,
prompt decisions and th e
p e rso n a l

a tten tio n
(licers to

proh i em

hand.

LIS

policy is typical o f this
C om pany.

C entral U

n io n

TRUST COMPANY OF NEW YORK
TRUSTS

B A N K IN G

4 2 n d S treet O ffice:

P la za O ffice:

Fifth Avenue
at 60th St.

80 B R O A D W A Y

JMadison Avenue
at 42nd St.

N O SECURITIES FOR SALE
Capital, Surplus and Undivided Profits Over 50 JMillion Dollars

id - C o n t i n e n t

anker

First H om e of the Boatmen’s Bank
N o. 16 Locust Street

FOUNDED IN 1847

P R O G R E S S I V E institution founded
upon eighty years of sound conservative
banking practice.

OFFICERS
JULIUS W. REINHOLDT,
LE ROY C. BRYAN,

P r e sid e n t

V ic e -P r e s id e n t

and

C a sh ie r

AARON W ALD H EIM

EDGAR L. T A YLO R

V ic e -P r e s id e n t

V ic e -P r e s id e n t and
T r u s t O ffic e r

J. HUGO GRIMM
V ic e -P r e s id e n t

ALBE R T

and

W AGENFUEHR

V ic e -P r e s id e n t

H. ALFRED BRIDGES

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Federal Reserve Bank of St. Louis

A ssista n t

F. LEE MAJOR

C ou n sel

C a sh ie r

V ic e -P r e s id e n t
C.

H AM M ERSTEIN

A ssista n t

C a sh ie r

RUDOLPH FELSCH
A ssista n t

C a sh ie r

OLIVER W. KNIPPENBERG
A ssista n t

C a sh ie r

January, 1029
stocks. For the fourteen year period
1914-27 inclusive, 1,571 different bonds
and stock issues were marketed in this
country with a total par value o f over
11,600 million dollars. Of this total,
only 174 were issues of stock, pre
ferred or common, with a total value
of about 673 million dollars or less
than 6 per cent of the total foreign
underwritings. This seems to show
that the American investor prefers the
fixed yield of foreign bonds and pre
ferred stocks to the risk connected
with dividends on common stock.
In some countries where there is a
strong sentiment against foreigners,
Americans or otherwise, assuming con
trol through the ownership of common
stock, the American investor has been
willing to take fixed yields securities
in small amounts. Not only have
American investors shown a decided
inclination to prefer corporate bonds
rather than corporate stocks, but they
have likewise preferred securities of
certain types of industry.
Of the foreign corporate securities
offered publicly in the United States
since January 1, 1914, the following
lead in the amounts purchased by the
citizens of the United States. Public
utilities, 723 million dollars; railways,
720 million dollars; banking and credit
companies, 492 million dollars; sugar
companies, 347 million dollars; paper
companies, 346 million dollars; mining
companies, 239 million dollars; oil
companies, 175 million dollars; iron
and steel companies, 135 million dol
lars, and steamship companies, 82 mil
lion dollars. These represent the ten
types of industries in whose securities
the investor in the United States has
been willing to employ his capital.
There have been large sums of capital
supplied by American investors as a
result of purely private financing of
which there are no available public
records.

I T is estimated that the return on

CAPITAL AND SURPLUS

$2,750,000.00

long time American investments
amounted in 1927 to about 738 million
dollars. This is an invisible item in
our international trade and is a credit
item in our international balances, rep
resenting in effect the same as if we
had sold that value of commodities to
foreign nations.
With respect to foreign investments
in the United States, accurate and de
tailed facts are again not available.
We were undoubtedly before the war
the greatest debtor nation in the his
tory of the world and it is idle to sup
pose that there is not yet a very large
amount of foreign capital in the
United States. Sir George Paish esti
mated that the amount was about 6

January, 1929

I
billion dollars with Great Britain hav
ing 3i/2 billion, Germany 1 billion,
Netherlands % billion, France 650 mil
lion and other countries 100 million
dollars. It was also estimated that
France had in 1914 over 1 billion dol
lars invested in the United States.
These investments of foreign capital
in the United States were chiefly,
first, in our railways, second, our in
dustries, and third, our public util
ities.
During the war a very large amount
of our securities held abroad were re
turned since the hardpressed western
European governments were using
every available source of funds, and
these American securities readily
found market or were bought back by
our own people. It is estimated that
during 1915 alone almost a % billion
of American railway securities were
returned from Europe to the United
States and purchased by our people.
When Great Britain established a spe
cial committee, known as the Dollar
Securities Committee in 1916, this
committee acquired from British hold
ers securities valued at 1,322 million
dollars. The Trade Commissioner of
London estimated at the close of 1927
that British investments in the United
States amounted to from 750 millions
to 1 billion dollars, although the De-

-C

o n t in e n t

anker

partment of Commerce estimated that
it is 1,360 million dollars.
During recent years a number of the
European countries, particularly the
British and Dutch investors, are again
buying American securities. Likewise,
the Canadians are buying our securi
ties just as we are placing large
amounts of our capital in Canada.
American stocks and bonds are regu
larly dealt in in practically all the
leading stock markets of the world.
Taking all these factors into considera
tion, the Department of Commerce es
timates that the investments of for
eign capital in the United States at the
end of 1927 amounted to 3,700 million
dollars.
The United States has thus definitely
become an international investing as
well as an international trading nation.
Capital, like goods, will flow from and
to our nation. Economically, socially,
and politically whatever some of our
citizens may think or wish we are a
member of the family of nations and
must interest ourselves in whatever oc
curs in any part of the world.

Continental Life Declares
Stock Dividend
Ed Mays, president of the Continen
tal Life Insurance Company, St. Louis,

Mo., announces that the board of di
rectors of the company by unanimous
vote has declared a stock dividend of
33 1/3 per cent on all outstanding stock
of the Continental Life Insurance
Company, of record Monday, Decem
ber 17. This gives each of the 600
shareholders in the company an addi
tional share of stock for each three
shares now held.
President Mays says the Continen
tal Life has had one of the most pros
perous years in its history, the com
pany now having life insurance in
force to the amount of $96,000,000.
The mortality record for the past
year, according to the report to the
board, was unusually favorable, the
November figures being the lowest in
the history of the company. Another
fact that has contributed largely to
the earnings of the company is the
very favorable returns from the in
vestments of its $14,000,000 of assets.
The Continental Life recently un
derwent a thorough examination by a
committee composed of the represen
tatives of Insurance Commission from
eight states and the report was highly
complimentary to the management of
the company.

Wije C fja s e n a t io n a l P a n h
of the City o f cPfeew York
Pine Street Corner of Nassau

Capital
Surplus and Profits
Deposits (October 3, 1928) -

$ 60,000,000.00
78,807,343.06
892,388,858.54

O F F IC E R S
A l b e r t H. W ig g in
C h a ir m a n

th e

B oa rd

R obert L. C lar kson

J o h n M cH u g h
C h a irm a n o f th e E x e c u t i v e C o m m it te e

P r e sid e n t

V IC E -P R E S ID E N T S
Harry H. Pond
Samuel H. Miller
Samuel S. Campbell
Carl J. Schmidlapp
William E. Lake
Reeve Schley
Sherrill Smith
Charles A. Sackett
Hugh N. Kirkland
Henry Ollesheimer
James H. Gannon
Alfred C. Andrews
William E. Purdy
Robert I. Barr
George H. Saylor
George E. Warren
M. Hadden Howell
George D. Graves
Joseph C. Rovensky
Frank O. Roe
V ic e -P r e s id e n t

and

C a sh ie r

W i l l i a m P. H o l l y

SECOND V IC E -P R E S ID E N T S
William H. Moorhead
Frederick W. Gehle
Harold L. Van Kleeck
Edwin A. Lee
T. Arthur Pyterman
Alfred W. Hudson
Ambrose E. Impey
James L. Miller
Joseph Pulvermacher
Robert J. Kiesling
Leon H. Johnston
Lynde Selden
Thomas B. Nichols
Franklin H. Gates
George S. Schaeffer
Arthur M. Aiken
J. Sperry Kane
S. Frederick Telleen
George A. Kinney
Otis Everett
C o m p tr o lle r

T h o m as R it c h ie

Foreign and Trust Department Facilities

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Federal Reserve Bank of St. Louis

AVIRST IMPRESSIONS
”

are often Lasting and
they must be good
^ h e entrance to the B a n k should
be a ttra c tiv e ,in v itin g , f r ie n d ly .
Only the especially gifted designer
can accom plish such a result.
C o n s u lt us w i t h o u t cost o r o b li g a t i o n

(¿D. Lacy Company
Designers and Constructors °fBank Buildings
1206 SYNDICATE TRUST BLDG.

ST. L O U IS , MO.

SEND FOR. OUR. B O O K L ET "DISTINCTIVE B A N K B U IL D IN G S ’'

id- C o n t in e n t

Charles Arthur Hinsch,

anker

Ohio

Banker, Dies Following Operation

January, 1929
form a service more economically, lie
made arrangements ten years ago by
which the Fifth-Third National Bank
and the Union Trust Company were
operated under joint ownership. On
February 23, 1927 these two institu
tions were merged and now operate
under state charter as the Fifth-ThirdUnion Trust Company.
Mr. Hinsch was president of the Un
ion Trust Company from 1919 until the
merger in 1927. In that capacity he
added to that bank the Courthouse
Savings Bank, the Winton Savings
Bank and the First National Bank of
Madisonville.
Mr. Hinsch was treasurer of the
Cincinnati Chamber of Commerce in
1897, president of the Cincinnati Clear
ing House in 1913, president of the
Ohio Bankers Association in 1904, vicepresident of the American Bankers As
sociation in 1916 and then president
in 1917.
He was general chairman of the
Community Chest drive of Cincinnati
this last April and was president of
the executive board for 1928-29, in
which post he was serving at the time
of his death. Before that he had
served on the executive committee of
the Council of Social Agencies.

Hibernia Bank Distributes
Christmas Bonus

CHABLES A. H INSCH

C HARLES ARTHUR H I N S C H ,
president of the Fifth-Third-Un
ion Trust Company, Cincinnati, Ohio,
and former president of the American
Bankers Association, died Tuesday,
December 18, following an operation
at Christ Hospital, Cincinnati. He
had been stricken with an attack of
appendicitis the preceding Friday
morning.
Mr. Hinsch was bom in Cincinnati
October 22, 1865, and was educated in
the public schools of that city. He
entered the Exchange National Bank
in a minor clerkship at the age of
16, in 1881. Later he went with the
Cincinnati National Bank and in 1887
he became deposit receiver at the Fi
delity National Bank, remaining there
two years. In 1889 he joined the
Fifth National Bank as cashier.
It was with this institution that he
dedicated every ounce of energy that
he possessed until it grew7 this year to

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Federal Reserve Bank of St. Louis

an institution with $100,000,000 re
sources. He worked under John M.
Kirtley and Robert M. Nixon, presi
dents of the bank, until September 20,
1897, when he succeeded Mr. Nixon as
president.
The first consolidation took place
under Mr, Hinsch’s leadership, when
the Third National wTas combined with
the Fifth National under the name of
the Fifth-Third National Bank. The
business of the American National
was taken over in 1908 and in 1910 the
private bank of S. Kuhns & Sons was
acquired.
On June 1, 1919, the business of the
Market National was acquired, large
ly through his efforts, and he gained
as powerful financial allies Casper H.
Rowe, Joseph B. Yerkamp, Bolton S.
Armstrong, George Puehta and others,
who still are directors.
Realizing that the time was at hand
when large units would control most
of the business because they could per

The board of directors of the Hi
bernia Bank and Trust Company of
New Orleans have declared the quar
terly dividend on the salaries of all
employes payable as a Christmas
bonus. For several years it has been
the practice of the Hibernia Bank to
declare a dividend on salaries four
times a year at the same time that the
regular dividend is declared on the
stock of the bank. These salary divi
dends are graded to each employee on
the basis of the length of his term of
service, those having been with the
bank five years or more receiving the
maximum.
The directors of the bank also de
clared out of the profits of the bank
for the fourth quarter of 1928 a quar
terly dividend of 5 per cent or $1.25
for each share of $25 par value. This
dividend, which is payable January
first to stockholders of record Decem
ber 24th, combines the quarterly divi
dend of $1.12y2 per share on the stock
of the bank and 1 2 ^ c per share on
the stock of the Hibernia Securities
Company, Inc.
Advertising may not pay, as some
say, but it has made a lot of merchan
dise sell itself.

January, 1929

id -C o n t i n e n t

anker

The Banking World''
B y C liffo r d D e P u y
P u b lis h e r De Pay Banking Publications

I do not know how I could better
express the greetings for the New
Year than in the words of Fred W.
Sargent, president of the Chicago,
Northwestern Railroad, whose holiday
greeting card to me expressed this
sentiment, ‘ ‘ Christmas time, with its
hallowed memories and golden hours
of other years is here again. May
it be for you and those dear to
you a joy and sweet association prom
ising a bright New Year of ever in
creasing happiness and prosperity. ”
And why shouldn’t 1929 be «a bright
New Year? Never in all our history
have we entered a year with business
conditions and general prosperity as
sound as they are today.
There is one thing certain, that 1928
will go down as a year of mergers of
all kinds in which bank mergers played
an important part.
I was talking with Arthur Reynolds
the other day and he told me when he
first suggested the idea to his officers
and directors of the merging of the
Continental with the Illinois, that they
laughed at him and said it couldn’t
be done. Later on when the subject
was presented to the directors of the
Illinois Merchants Trust Company, he
said they laughed twice as hard. Nev
ertheless, the thing which many people
thought couldn’t be done was done
and Chicago today has a billion dollar
banking institution.
‘ 1Where there is a will there’s a
way, ’ ’ especially if the final result
means better service to customers and
greater help to the community which
is served.
According to George B. Caldwell,
vice-president of the United States
Bond and Mortgage Corporation of
New York, the realtors of the United
States have added approximately $10,000,000,000 of new value each year in
new buildings of all kinds to our cities
and suburbs.
Thirty-five per cent of this has gone
for residential construction; twenty
per cent for public works and public
utilities; twenty per cent for indus
trial buildings; fifteen per cent for
commercial buildings; six per cent
for educational buildings; four per
cent for hospitals and institutions.
In addition to this he estimates that
we should add $2,500,000,000 for
ground value, and thus he figures that
the annual capital requirement to

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Federal Reserve Bank of St. Louis

finance the real estate operations per
year in the United States, is now at
least $12,500,000,000.
The United States is growing and
growing rapidly.
Henry Ford has been getting a lot of
publicity lately over his statement that
young men to succeed should spend
their money.
In spending their money, however,
Mr. Ford said that they should spend

it for things to improve themselves and
their mind. His exact statement was
“ You often hear advice given to young
boys that to succeed they must work
and save their money. This is partly
wrong. No successful boy ever saved
any money. They spent it as fast as
they could for things to improve them
selves. ’ ’
I f every young man should invest
in himself by spending money on good
books and travel he would be much
better fitted for his life work, what
ever it might be.
The answer to the whole problem is
‘ ‘ For what is he spending his money ? ’ ’
I f foolishly, then of course the money
is lost and he has gained nothing.
However, if money is spent wisely for
self improvement the dividends will

WH, ERE you can
discuss your most im
portant banking prob
lems with assurance of
experienced guidance.

1929

F R E D E R IC K H . R A W S O N

H A R R Y A . W HEELER

Chairman o f the Board

President

C R A IG B. H A Z L E W O O D
Vice-President

U N IO N

T R U S T

COMPANY
C H IC A G O

return many many times during the
coming years.

id -C o n t i n e n t

anker

Louis, wrote his friends a special good
will letter as his holiday greeting and
how could it be better said than this:
‘ 1A tragic trend in our fast moving
world is the diminishing opportunity
for the exercise of friendship, but we
still have Christmas and New Year, and
they grow dearer apace because they
bring a favorable season and afford
an appropriate setting for expressions
of good will.
“ At this Yuletide I am thinking of
you as one good friend thinks of an
other. ’ ’

George Woodruff has been elected
president of the Bankers Club of Chi
cago. Mr. Woodruff has made a most
enviable record since he became active
ly interested in the National Bank of
the Republic and this same energy and
enthusiasm will be carried with him
into his office as president of this
very influential organization.
Marvin E. Holderness, vice-president
of the First National Bank of St.

A Distinctive Service
fo r

Banks and Bankers
T h r o u g h a sp ecial d iv isio n , h a n d lin g e x
c lu siv e ly th e a cc o u n ts o f b a n k s, a se rv
ice is offered w h ich is c o m p le te , efficient
an d d istin ctiv e. T h is d iv isio n , in ch a rg e
o f fo u r officers, is c o -o rd in a te d b y the o f
ficers w ith o th er d iv isio n s a n d d e p a rt
m e n ts o f the tw o

ba n k s.

O u r service

fo r b an k s and b a n k ers, d e v elo p ed since
1863, is c o m p le te ly o u tlin ed in a b o o k
let w h ich b a n k ers h a v e fo u n d h e lp fu l.
W e w ill g la d ly m a il y o u a c o p y on re
qu est.

F IR S T N A T IO N A L
B A N K ofC H ICAG O
Affiliated

FIRST TRUST AND
SAVINGS BANK
R e so u rc e s E x c e e d
$450,000,000.00

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Federal Reserve Bank of St. Louis

F ra n k O. W e tm o re , C h a irm a n
M e lv in A . T r a y lo r , P re s id e n t

January, 1929
The A. B. A. spring meeting of the
executive council will be held April
15th at the Edgewater Gulf Hotel.
Many of the bankers will remember
what a delightful place this is as the
special Faltonic train stopped here on
the way to Houston a year ago.
The Bureau of Research, School of
Commerce, University of Illinois at
Champaign, has issued a booklet en
titled “ An Analysis of Bankers’ Bal
ances in Chicago.”
This book reveals that approximate
ly 9,000 banks or one out of every
three in the United States have corre
spondents in Chicago. In almost 7,000
instances are Chicago banks reported
as correspondents by banks in the
greater part of the Middle West.
Leonard P. Ayres, the official prog
nosticator of the Cleveland Trust Com
pany, believes that general business
will be good in the first quarter of
1929 and this is chiefly because it is
so good in the closing quarter of 1928
that its momentum may be trusted to
carry it ahead at about present levels
well into the new year.
There is a possibility he thinks, that
there may be a slight slacking of busi
ness the second half of 1929 due to re
duced automobile production. How
ever, taking the year as a whole, he
looks forward to one of real pros
perity and business activity.
Otto H. Kahn, well known New
York banker, philanthropist and pa
tron of the arts, spoke recently upon
the important subject of the use which
we make of our leisure hours. “ Be
ing given reasonably good health,”
says Mr. Kahn— “ and the use of our
leisure hours has much to do, of course,
with the making or marring of our
health— I doubt whether the world has
ever known a time when such wonder
ful opportunities are available as there
are now for making the life of the
average man in the leading countries
full and rich and interesting and stim
ulating; more especially in our own
country. ’ ’
Emphasizing the fact that we should
not get into a rut in our daily occupa
tions or in our daily thinking, Mr.
Kahn says: ‘ ‘ As the soil of agricul
tural land requires rotation in order
to produce the best results, so does
the soil of our inner being require va
riety of treatment in order to re
main elastic and fertile, and to enable
us to produce the best of which we are
capable. ’ ’
Money never made any man
but his mind. He that can order
self to the law of nature, is not
without the sense, but the fear of
erty.— Jonson.

rich,
him
only
pov

INSURANCE SECTION
Y ork L ife H om e Office Building Is on Site
o f O ld M adison Square Garden
HE newest and one of the most
beautiful examples of modern
skyscraper architecture, is the new
home office of the New York Life In
surance Company on the site of the
old Madison Square Garden, New

to hear the president of the company,
Darwin P. Kingsley, who addressed
them over the radio on December 12 at
a dinner celebrating the formal open
ing o f the new building. Guests at
the dinner included prominent news
paper editors and publishers, life in
surance presidents and executives, di
rectors and officials of the company,
and others.
Mr. Kingsley has had a most inter
esting and colorful career. Following
his graduation from the University of
Vermont, from which he received the
degrees of B.A., M.A., LL.D. and
L.H.D., he became a newspaper editor
in Colorado. Later he was appointed

as auditor and superintendent of in
surance for Colorado.
In 1889 he entered the service of the
New York Life at Boston, as inspector
of agencies for New England. He was
then called to the home, office as super
intendent of agencies, and rose rapid
ly through the positions of third vicepresident and vice-president to the
presidency of the company, to which
he was elected on June 17, 1907.
Under his management, the New
York Life Insurance Company has had
a remarkable growth. On January 1,
1928, its assets amounted to $1,401,076,821, while its insurance in force is
now $6,800,000,000.

D A R W IN P. K IN G S L E Y

York City. Here, in the fifties, was
located the depot of the New York and
Harlem Railroad. The depot was re
placed in 1889 by Madison Square
Garden, Stanford W hite’s masterpiece,
crowned with St. Gauden’s famous
bronze, Diana, the Huntress.
Shortly after the Democratic conven
tion of 1924, the New York Life In
surance Company which owned the
site, razed the garden and began the
construction of its new home office.
The building which occupies the en
tire block, was designed by Cass Gil
bert and built by Paul Starrett. It
is set back under the zoning law and
rises, in terraces, thirty-four stories.
The central tower portion is surrounded
by a golden pyramidal roof, the top
of which is 617 feet above the side
walk.
The total ground area of the new
building is 81,696 square feet and the
rentable floor area is 925,000 square
feet. There are five basement levels
below ground. In the building there
are 38 elevators and 2,180 windows.
The New York Life Insurance Com
pany with about 3,500 employes will
occupy 600,000 square feet of floor
space in the building.
Most of the 2,300,000 policyholders
of the company had an opportunity

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Federal Reserve Bank of St. Louis

New Home of New York Life Insurance Company
41

id - C o n t i n e n t

anker

January, 1929

Royal Union Declares 1 0 0 Per

SEVEN

(7)

POINT FULL COVERAGE

AUTOMOBILE POLICY

S f y o u a re in te r e s te d
in ttelin m ta t e s f e n
IJ o u rsélf^ (jM S id e tj

What the Republic Has to Offer
1 . A chance fo r a g e n ts to share profits w ith
th e C o m p a n y .

2,. A h a n d y c o m b in ed A u to m o b ile In su ra n ce
P o lic y , b ro a d

in c o v e ra g e ,

an d

100 per

cen t secure.
3. A

fa ir an d squ are deal fo r a g e n ts.

4 * Service fr o m
w a y s.

C h ic a g o w ith o u t d e la y , a l

5 . P r o m p t p a y m e n t o f cla im s.

PROGRESS

REPUBLIC
CASUALTY

and S U R E T Y

COM PANY

3 5 East W a c k e r D riv e

CHICAGO

AUTOMOBILE

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Federal Reserve Bank of St. Louis

INSURANCE

Cent Stock Dividend
A 100% stock dividend has been au
thorized by the stockholders of the
Royal Union Life Insurance Company,
Des Moines, Iowa. A. C. Tucker, pres
ident of the company, who recently
returned to his office after almost a
year’s illness, explained that the in
crease in capitalization from $250,000
to $500,000 was made to place the ad
ditional $250,000 surplus into working
capital.
Ray Yenter, Iowa c o m m i s s i o n e r ,
lauded the company’s action, declar
ing “ it is a notable achievement on
the part of an Iowa company, in the
face of adverse business and financial
conditions of the past few years.”
At a meeting the same day of the
board of directors, B. M. Kirke was
elected vice-president and field man
ager, filling the vacancy caused by the
resignation of William Koch, and W.
I). Haller was made secretary and ac
tuary, relieving C. E. Dailey of the
secretaryship. Mr. Dailey will devote
his entire time from now on to invest
ment matters. Mr. Haller and R. A.
Yarcho were selected as the new direc
tors. Mr. Koch, former vice-presi
dent, remains on the board.
A financial statement laid before the
meeting placed gross admitted assets
at $26,878,120, of which more than
$7,000,000, or nearly 25% is in govern
ment, state and municipal bonds. The
stock dividend brings the surplus to
policyholders, including the capital, to
approximately $985,000. This includes
a contingent reserve of $235,000 set up
as a safeguard against real estate and
investment fluctuations. The report al
so shows the assets had increased $1,651,528 during the first nine months o f
1928. On September 30 the company
had $141,000,000 of insurance in force.
Mr. Tucker reorganized the State
Life in 1924, merging it with the Royal
Union Mutual. Later the business of
the following companies was acquired:
National American, Burlington, Iowa;
Western Life, Des Moines; Universal
Life, Dubuque; and the Medical Life,
Waterloo, Iowa.
Pre-War
“ Any seconds on the eggs, Sarge1?”
timidly inquired a rookie— and you
could tell he was a rookie for asking
such a fool question.
“ Seconds, hell!” snorted the mess
sergeant. “ Them eggs was seconds
when we first got them! ’ ’
Our bravest lessons are not learned
through success, but misadventure.—
Alcott.

January, 1929

id -C o n t i n e n t

anker

J^ew Louisville cBond House Organized
by M rs. Ora M . Ferguson

Why Do Our
Salesmen
Succeed When
Others Fail?
ii iiiiii iiiiiiiiii

HERE IS THE ANSWER:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

MRS. O. M. FERGUSON

O NE of the few bond houses in the
country to be organized and man
aged by a woman is Ferguson and
Company, of Louisville, Kentucky, or
ganized last month by Mrs. Ora M.
Ferguson of that city.
Mrs. Ferguson was formerly with
Chas. D. Barney & Company, and prior
to that with Reynolds & Company
which was purchased by Chas. D. Bar
ney & Company a few months ago.
She entered the bond business in
1918 when she became associated with
James C. Willson & Co., of Louisville,
and two years later became manager of
the Louisville office of the FletcherAmerican Company of Indianapolis
where she remained until January,
1928, when she assumed charge of the
bond department of the Fifth and
Main Street office of Reynolds & Com
pany of Louisville.

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Federal Reserve Bank of St. Louis

During the ten years which Mrs.
Ferguson has been in the bond busi
ness she has established a reputation
as one of the most successful women
bond salesmen in the country.
In the short space of a few years
time she has built a splendid clientele
and made a great number of friends
all over the country. She never misses
an opportunity to attend a banker’s
convention, and as a result, she num
bers a great many bankers among her
friends and customers.
Mrs. Ferguson happened to get in
the bond business because she became
interested in it through various war
activities, including the Liberty Loan
drives. She says that she is going to
stay in the bond business because she
can’t imagine doing anything else.
Offices of Mrs. Ferguson’s new com
pany are located at 234 Starks Bldg.

Non-Medical
Monthly Premium
Juvenile Policies
Payor Insurance
Salary Savings
Participating
Non-Participating
Sub-Standard
Female Insurance
Sales Promotion Dept.
Educational Course
Direct Mail Advertising
Salesman’ s Folio
School for General Agents
Accident and Health

Abraham Lincoln Life
Insurance Co.
H om e Office

Springfield, Illinois

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January, 1929

anker

Camp, T horne & Co., in c .
CH ICAGO

N E W YO RK

INVESTMENT BONDS

Main Office 29 South La Salle Street, Chicago
LATIN AMERICAN AND. EUROPEAN SERVICES
AND BUYING OFFICE
30 Pine Street, N e w Y o r k City

SAN FRANCISCO
ST. LOUIS
BAY CITY MICH.

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Federal Reserve Bank of St. Louis

MINNEAPOLIS

MILWAUKEE
JANESVILLE, WIS.

DAVENPORT
WEST FRANKFORT, ILL.

SEATTLE
DES MOINES
LaSALLE, ILL.

BOND and INVESTMENT SECTION
H ouv Stocks and Bonds A re Bought and Sold on
the <7fi{eew Y ork Stock Exchange
I N the primitive days, before the
dawn of civilization, the human
race eked out its existence with very
little cooperative effort among indi
viduals. By and by, however, the
smarter members of the savage tribes
learned that by a division of labor
and a distribution of the fruits of such
labor, everyone could have and enjoy
more than if he attempted to provide
himself with game, fish, grain, and
clothing, all by his own personal ef
forts. The man who excelled at hunt
ing supplied meat for the man who
was best at making the rude clothing,
and they each had more than an abun
dance of both meat and clothing. This
enabled them to exchange their surplus
meat and clothing to others for grain
and fish.
During the days of savagery, the
simple method of exchange sufficed.
Later, a third element—money—was

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

By JO H N R. LONGMIRE
Vice-President and Bond Officer, Mississippi
Valley Trust C o ., St. Louis

The article on this page is the first
of a series of articles by Mr. Longmire, written for the Valley Trust
Magazine, monthly house organ of the
Mississippi Valley Trust Co. This ar
ticle, which appeared in the November
issue of the Valley Trust Magazine,
deals with stock markets— particularly,
the New York Stock Exchange, and
how it operates.—Editor’s Note.

introduced, first as beads or shells or
skins, and then, as civilization ex
tended, gold and silver. But even
barter and sale by means of money
did not long meet the needs of people

of growing intelligence and with broad
ening desires. So a new institution
was created—the market. Here those
who would buy and those who desired
to sell met on common ground and ex
changed their goods.
The market is almost as old as civil
ization itself, and today the world has
millions of small markets— and quite
a few gigantic ones. It is to these that
I shall confine my remarks.
Perhaps the major markets of the
United States are (1) the stock mar
kets, (2) the grain markets, (3) the
cotton markets, and (4) the livestock
markets. The largest and most impor
tant in its influence is the stock mar
ket, and when we speak of the stock
market we naturally think of the New
York Stock Exchange, the largest of
such institutions in the world.
The stock exchange does not deal in
actual commodities; but rather in

An A rtist’ s Sketch of the Trading Tloor, New York Stock Exchange
45

tokens of value in the form of shares
representing the ownership in corpo
rations, and bonds representing debts
secured by the property of such cor
porations. Hundreds of millions of
shares of stock are “ listed’ ’ on the
exchange, representing billions of dol
lars of value.
HE New York Stock Exchange had
its origin in 1790, although it
was not a new idea, for a stock ex
change in London had been operating
for about seventeen years. The New
York exchange arose primarily to meet
the needs of the young republic, for
in 1790 the first Congress authorized

id -C o n t i n e n t

the issue of eighty millions of dollars
in bonds, and at the same time three
important banking institutions were
incorporated and their stock sold to
the public. The creation of these secu
rities created the need for a market
where investors could dispose of or
add to their holdings.
The New York Stock Exchange had
its real birth under a buttonwood tree
which stood at what is now known as
No. 68 Wall Street, not very far from
the site of the present building. Here
a dozen or so men held daily meetings
and exchanged bonds and stocks.
They were the first stock brokers in
the United States.

Bank Service That Is
Up-to-Date
Bankers, like merchants, resent any im
plication that their services are not upto-date. Demand for a new banking
service usually meets with a commensu
rate response.
The demand for investment bonds has
steadily increased since the World War.
Many bankers, especially those in the
smaller cities and rural sections, have
discovered a profitable source of income
in selling bonds, as well as a means of
increasing the patronage for other bank
ing services. They have found, too, that
bonds lend security to the bank that holds
them.
Caldwell & Company offer banks a com
prehensive list, including municipal, cor
poration, and First Mortgage Bonds,
that possess the essential requirements of
sound investments : safety of principal,
good yield, diversification and market
ability.
M ay we send you our current
list o f issues particularly adapted
to bank requirements, with spe
cial price concessions?

C ald w ell & C o m pan y
Southern Securities
117 N O R T H F O U R T H S T R E E T , ST. LO U IS, M O .

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Federal Reserve Bank of St. Louis

Offices in Principal Cities

January, 1929

anker

In 1792, a formal organization was
effected. By this time there was a
group of twenty-four brokers, and they
signed an agreement binding them
selves to certain regulations and re
strictions in the matter of commissions
for the execution of orders and in their
dealings with one another. In 1817,
rooms were engaged at No. 40 Wall
Street, and here the first indoor se
curities market in the United States
began to function. By the time of the
Civil War, so many new types o f se
curities had come into existence that
the Exchange had to expand and move
into a new building on Broad Street,
near Wall, which site it still occupies.
In 1922, an additional structure was
added to the classic old building with
its famous Corinthian columns.
Trading on the New York Stock Ex
change is confined to members. A
membership, known as a “ seat,” in
the Exchange can be held only by an
individual, and subject to the Com
mittee on Admissions may be trans
ferred by sale or gift. Seats at one
time sold for only a few thousand dol
lars, but have enhanced in value un
til the present price is approximately
one-half million dollars.
HE trading floor of the New York
Stock Exchange is a vast room,
with a ceiling several stories in height.
Scattered around the floor are “ trad
ing posts,” being in the form of cir
cular cushioned seats through the mid
dle of which protrude cylindrical
“ posts” about two feet in diameter
and approximately ten feet high.
These are numbered, and each stock
is assigned to a definite post. Stock
of the U. S. Steel Corporation, for ex
ample, is assigned to Post No. 2.
That means that all buying and sell
ing of U. S. Steel stock must be done
within a few feet of Post No. 2. There
are several dozen such posts in the
exchange and to each is assigned a
list of stocks or bonds. By this means,
it is insured that all bids and offers
will be made within the hearing of any
broker who is interested in buying or
selling.
By means of the network of tele
phone, telegraph, and ticker wires that
connect the floor of the Exchange with
brokers’ offices all over the United
States, it is possible for a person in
almost any city of even medium size
to keep in as close touch with the
market as if he were himself present.
Furthermore, it is possible for him to
buy or sell from a thousand miles away
just as if he were sitting in an office
across the street from the New York
Stock Exchange building. Briefly, here
is how the trading is conducted:
A person desiring to buy or sell one

January, 1929
hundred shares of stock, for instance,
whether he be in New York or San
Francisco, may scribble down in pencil
on a “ buying” or “ selling” order,
what he wants to buy or sell and at
what price. This is immediately con
veyed by telegraph and telephone to
the broker’s telephone clerk in New
York who occupies a small booth at
the edge of the trading floor.
Suppose we continue to use the
United States Steel Corporation stock
for the purpose of illustration, and say
that the prospective buyer is willing to
pay the market price for one hundred
shares. By means of the ticker, he can
know before he places the order what
the prevailing price for U. S. Steel
stock was a few minutes before. Now
when the telephone clerk receives the
order for 100 shares of “ Steel” at the
market, he pushes a button in his
booth. This button controls a certain
number on the huge annunciator lo
cated on the wall of the Exchange.
This number appears in plain view of
the member, wherever he happens to
be on the floor, and he immediately
goes to the booth and gets a slip bear
ing the order to buy U. S. Steel at the
market.
Hurriedly, the broker proceeds to
Post No. 2, and “ listens in ” on what
is going on. He hears U. S. Steel o f
fered 161% (161.50 per share) and
hears another trader bidding 161%
(161.37% per share). Having instruc
tions to buy at the market, he catches
the eye of the member offering the
stock at 161% and informs him that he
will take 100 shares. Both traders make
a memorandum of their own, but no
slip of paper passes between them. All
contracts for the sale of stock are
oral, or sometimes made by merely a
nod of the head. Thus, the man who
wanted the 100 shares of U. S. Steel
at the market got it at $161.50 per
share, plus the small brokerage fee and
the government tax.
It will be remembered that one of
the other traders was bidding 161%.
He doubtless had an order from a pur
chaser who had set that price.
Perhaps, a little later, some broker
had an order to sell at 161% and he
got his stock. Or, it might have hap
pened that an order came in to sell
at the market, and 161% being the
highest offer, the sale was made at
that price.
The broker on the floor immediately
sends the memorandum of a purchase
or sale to the telephone clerk who
promptly conveys the information to
the office, from which the information
is transmitted to the purchaser him
self or to his broker, if he resides in

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Federal Reserve Bank of St. Louis

-C

o n t in e n t

anker

another city. The whole transaction
is often completed in scarcely more
than a minute.
The trading floor is covered by re
porters, who make a note of each sale
and give the information to the opera
tor of the typewriter-like machine,
who sends it out all over the United
States over the “ stock ticker.” The
“ ticker” prints the record of sales
on tape, and, in many brokerage o f
fices, reflects it on a screen so that
the customers may sit in comfortable
chairs and watch what is happening on
the Exchange in New York.
Orders are taken by brokers for the

“ day only,” or “ open,” (until can
celed), or for any length of time the
customer dictates. Thus, the person
who wanted to buy U. S. Steel at 155
might put in an “ open” order at
that figure. He would not have bought
it while the price was 161%, of course,
but if the price ever dropped that low,
or lower, his order would be auto
matically executed by the trader.
Should it happen that the price sud
denly dropped below 155 and back up
again, and the broker through error
failed to make the purchase while it
was down, the customer would never
theless be entitled to the stock at 155

C o m m u n ity W a te r Service C om p an y
Supplying w ater to over 1,000,000
people in tw elve states
'■ p iI I S Company is
one of the larg
est in the oldest and
most essential branch
of the public utility
field.

Water

conservatively

financed,

Pennsylvania State W ater
Corporation
Williamsport W ater Co.
New Jersey W ater Co.
New Rochelle W ater Co.
Peoria W ater W orks Co.
Cairo W ater Company
Citizens W ater Company
o f Washington, Pa.

universal necessity
and

SUBSIDIARIES
and affiliated Comaanies

well-man

Lexington W ater Co.
O hio Cities W ater Corp.
Westmoreland W ater Co.
Greenwich W ater 8C Gas
Company
St Louis County W ater Co.

Company have stead
ily increased.

Their

properties have rec
ords

operation

successful
extending

over long periods of
y e a r s — up

years in some cases.
The bonds of the
Communit y W a te r

aged companies sup
plying this necessity have a

Service Company and its sub

stability of earnings which en

sidiaries represent well secured
investments suitable for in

ables them to pay their ob

dividuals, banks and cor

ligations, year after year.

porations,

The earnings of the Com
munity

Water

and

yield

from 4.80 to 6 per cent.

Service

Full Information on Request

P. W . CHAPMAN © CO.. INC.
A
115 W . Adams Street

42 Cedar Street

C H IC A G O

NEW YORK
St. Louis Office

1103 B O A T M E N ’S B A N K B L D G .

and the broker would let him have it,
absorbing the loss himself.
ITH the exception of a few highpriced stocks, purchases and
sales on the New York Exchange are
limited to 100-share lots. Orders of
persons desiring to buy or sell less
than 100 shares are executed through
a ‘ ‘ part-lot ’ ’ broker, who buys and
sells in 100-share lots himself, but par
cels the stock out in smaller lots. He
is bound to buy or sell at the last sale
price prior to receiving the order, but
receives an added commission of l/8
(12y2 cents per share). Very often
he makes money on the day’s trading;
sometimes he loses. It depends on
how lucky (or skillful) he is in buying

id - C o n t i n e n t

and selling the larger lots to take care
of the smaller orders.
The New York Stock Exchange is
very strict in its regulations as to the
activities of its members. In the first
place, before a member is admitted he
is investigated very thoroughly as to
his history, his character, and general
record for honesty and integrity.
Members must actually “ execute” on
the floor every order for the purchase
or sale of stocks or bonds, and restric
tions are enforced as to their own
dealings in securities. Unquestion
ably, the New York Stock Exchange
is made use of by speculators who
make and lose fortunes by gambling
on whether stocks are going up or
down, but the Exchange itself prob
ably enforces the highest code of busi-

M eeting N ew Dem ands
for C u sto m e r Service
Bank customers today demand a great deal more
than ten years ago. They not only deposit
money, make loans, join Christmas Clubs, have
savings accounts and keep a safety deposit box,
but also invest and speculate in bonds and stocks.
The banker, realizing that it is to his own ad
vantage to direct the investment o f his custom
ers’ funds into safe channels, is anxious to give
the best possible advice.
Y o u have at your command for this purpose
our Department of Economics and Surveys,
closely in touch with markets, industries and
economic conditions in every part o f the coun
try. Full use o f this service is available, without
cost or obligation, for reports on customer or
bank holdings, individual industries and sug
gested purchases.

Our booklet, “ A Valuable Aid
to Banks and Investors,” de
scribes this service more fully.
Setid for a copy. Ask for
A H -10

A.C.ALLYIN G C O M P A N Y
IN CO R PO RA TED

Investment Securities
N ational Bank of C om m erce B uilding
ST. LOUIS
CH ICAGO
D E T R O IT

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Federal Reserve Bank of St. Louis

NEW Y O R K
M IL W A U K E E

BOSTON
M IN N E A P O L IS

January, 1929

anker

P H IL A D E L P H IA
SAN FRANCISCO

ness ethics known to modern business.
The fact that billions of dollars in
trading is done daily without the pass
ing of even a written memorandum of
sale between the traders is an evidence
of the fact that the highest standards
of honesty are observed. The penalty
for unethical dealings on the part of
members is expulsion from the Ex
change— a severe penalty, indeed.
Other interesting features of trad
ing on the Exchange are “ short-sell
ing” (selling stocks today and bor
rowing the stock for delivery, hoping
that they may be purchased cheaper
at a later date), the “ call loan” desk,
the professional “ bulls” and “ bears”
and the “ pool operators.”

S T. LOUIS has a stock exchange of
its own, operated on a much small
er scale but along the same general
lines as the “ big board” in New York.
Here are listed something less than
two hundred stocks and bonds, mostly
of local corporations. Trading is done
in much the same manner as in New
York, and local brokers accept orders
for purchases and sales on the St.
Louis Stock Exchange in exactly the
same way.
The St. Louis Stock Exchange had
its birth on April 14, 1899, when a
group of men met at the Columbian
Club and decided upon its organiza
tion. It first was quartered in the o f
fice of Charles R. Drummond, one of
the original members, at 214 North
Fourth Street. From there it moved
to 411 Olive Street, in what was known
as the Continental Bank Building, and
thence back to 314 North Fourth
Street. These quarters became inad
equate and it moved into the Mer
chants Exchange Building, in the rear
of the Pierce Building. On April 5,
1927, the St. Louis Stock Exchange
moved into its commodious new quar
ters at the corner of Fourth and Lo
cust Streets.
Although stock exchanges are un
questionably used by many for gam
bling purposes, they serve a very neces
sary purpose in our financial world.
In no other way could securities be
bought and sold by bona fide investors.
In no other way could financing be pro
vided to do the big things we are doing
in the business world today.

Chapman

Co.

Organize N ew Department
P. W. Chapman & Company, Chi
cago, have announced the organization
of a new department to deal in insur
ance shares and insurance financing.
Prank H. Ellis is to have charge of
this new department.

January, 1929

id - C o n t i n e n t

anker

Turn Y our Eyes Toward Latin America
More American Money Is Going Into Latin American
Countries Than Into Any Other Section of the World

HY did Herbert Hoover, imme
diately upon election to the
presidency of the United States, de
cide to embark upon a good-will tour
of Latin America ? Why did he do
this which no other president-elect
has ever done? That which calls
forth this significant action of a new
ly elected Chief Executive of the
United States must be of the most
vital importance to the interests of
our country. It is ! It is the recent
tremendous development of our finan
cial and commercial relations with the
countries of Latin America.
During the past fifteen years the
United States has risen to the posi
tion of supremacy in the world’s eco
nomic organization. Our trade, in
vestments, and banking are reaching
out over the world and their direction
is strongly toward Latin America.
Banker, business man, and student are
turning their eyes toward Latin Amer
ica.

By DR. CLYDE W . PHELPS
Head o f the Department o f Economics,
Chattanooga University, Consulting
Economist, R . J. Beaman Co.,
Public Accountants

every one of the republics of Latin
America and we are selling more to
them than Great Britain, Germany,

I N 1913 the United States ranked
in third place among the great ex
porting nations of the world. Today
we are first. Before the World War
European nations led in sales to the
countries of Latin America, and the
United States occupied a position of
minor importance in this trade. To
day we are the leading exporter to

DR.

CLYDE

PH ELPS

and Prance (the three other great ex
porting nations of the world) com

bined. A generation ago our trade
with Latin America was a small item
in our total foreign commerce; today
it accounts for one-fourth of all our
exports and imports. It is evident
that Latin American business is be
coming increasingly important to
American exporters and importers.
When the World War broke out Amer
ican shipping had almost disappeared
from the high seas and American trade
with the countries to the south of us
was mainly dependent upon British
ships. Today American lines carry
goods from New York to Buenos Aires
in only 18 days and to Valparaiso,
Chile in only 20 days. Efficient Amer
ican shipping is now greatly facilitat
ing our trade with the countries of
Latin America.
The United States which was the
greatest debtor nation in the world in
1913 has become the greatest creditor,
the foreign investments of its citizens
now totaling about $14,500,000. We
are lending or investing abroad about
one billion dollars a year and it is
interesting to note that more of this
money is going into Latin American
countries than into any other section
of the world. Our investments abroad
at present are distributed as follows:
Latin America $5,200,000,000; Europe
$4,300,000,000; Canada $3,900,000,000;
all others $1,100,000,000. Today we are

Sm it h , M oore &

Co.

For many years we have been successfully serving banks
and institutions in:
Building up liquid secondary reserves, consisting of
sound bonds.
Maintenance of bond accounts at the peak of efficiency.
The partners will be pleased to give the benefit of their
long experience in this field to your investment problems.
Chas. W. Moore

JVm. H . Burg

509 Olive Street

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

W. C. Morehead

R. B. Smith

N. R. Dutson

St. Louis, Mo.

not only leading other countries in trade
with Latin America but we are leading
other nations in financing Latin Amer
ica.
Along with our trade and invest
ments American banks are also reach
ing out into foreign lands. In 1913
only four American trust companies
had established offices abroad. They
had altogether only six foreign offices.
One of these was in Mexico and the
other five were in London and Paris.
Today five of our trust companies and
three of our national banks possess
a total of 112 banking offices in for
eign lands and 58 per cent of these
offices are in Latin America. The 112
banking establishments abroad of
American national banks and trust
companies are located: 66 in Latin

id - C o n t i n e n t

anker

America, 25 in Europe, and 21 in the
Far East.
It is clear from the foregoing that
our trade, our investments, and our
banking are tending strongly toward
Latin America in their foreign expan
sion. This is the reason why bankers,
business men and students are study
ing with great interest the markets
of Latin America and the commercial,
financial and political relations be
tween the United States and those
markets.
HAT is Latin America? The
term includes all the countries
to the south of us, those of Central
America and the Caribbean as well
as those of South America.
The three principal countries of
South America are Argentina, Brazil,

A N A T IO N A L C IT Y
M AN CAN H ELP Y O U

...when you want
speedy action on
investments
Speed is one of the essentials you have a
right to expect from your investment house
— speed in executing transactions — speed in
obtaining quotations, speed in finding re-sale
markets, speed in getting information for
your customers. The National City Company
is equipped to give you the quick service you
require. It maintains an eleven-thousand-mile
private wire system to facilitate transactions
for its customers. A National City man at
the nearest office puts this equipment to
work for you whenever you say the word.

T he N atio n a l C ity C om pany
National City Bank Building, New York
Offices in more than 50 leading cities throughout the world
BONDS

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

SHORT

TERM

NOTES

ACCEPTANCES

January, 1929
and Chile— the so-called A B C .
Argentina has a population of 8,500,000 and is the richest country per cap
ita in the world. It is the great
stock-raising and agricultural country
of South America due to the Pam
pas (rich, grassy plains) which cover
a great territory about the size of
Texas or about a quarter of the total
area of Argentina. This country is
one of the greatest stock-raising and
wheat, corn, and meat-exporting coun
tries in the world, and its develop
ment has only just begun. Argentina
could support a population at least
six times greater than its present pop
ulation and still not be more thickly
populated than American farming
states. Great development is bound to
occur accompanied by increase in the
trading of American manufactured ar
ticles for Argentine raw materials and
foodstuffs. In Argentina, Chicago
packers have built large meat plants,
Standard Oil interests have invested
several millions in oil fields, and some
American manufacturing and engi
neering companies have commenced op
erations, but only a start has been
made. British investments in Argen
tina are still larger than ours and it
appears that Americans have been ne
glecting this rich field.
Brazil is the greatest in area and
population of all Latin American coun
tries. The population of Brazil is
now over 30,000,000 and the area of
this country is greater than that of
the United States by 248,719 square
miles. Here is a tremendous country
covering more than half of the conti
nent of South America and destined
for a wonderful future of growth and
power. The future in Brazil should
offer American trade, investments, and
banking a most extraordinary, fertile
field. Trade between the United
States and Brazil should continue to
grow into imposing figures for Brazil’s
climate is different from ours. The
climate of Brazil corresponds to that
climate which exists all the way from
Florida to the equator. Thus, due to
climate Brazil is especially fitted to
produce certain things for us that we
can not produce or would have to pro
duce at great expense— and vice versa.
Brazil is the great coffee producing
and exporting nation of the world,
producing around 80 per cent of the
world’s total coffee crop, and it is
rapidly developing its production of
rubber and cocoa. And the United
States is the greatest coffee, rubber,
and cocoa consuming nation in the
world. American interests have large
meat packing establishments in Brazil
doing about a quarter of all the pack
ing business of the country, and the

T h i s F o ld e r , is s u e d m o n t h l y ,

w ill b e s e n t

m o n th ly

fr e e o n

re q u e st.

q u o t a t io n

F ile

f o r f u t u r e r e fe r e n c

s h e e t

(See inside Pages for Quotation*)
The purpose o f this sheet is to furnish Investors periodically with m arkets on securities o f widespread interest. Those men
tioned herein include listed and unlisted, active and inactive bonds and stocks and, while the number quoted is necessarily
limited, we will always be glad to Furnish, on request, and without obligation, quotations or iniorw atiou on any security in
which the investor may he interested.
'

M ARK C. STEINBERG & COMPANY
M em bers N«w York Stock Exchange, Chicago Stock Exchange, St- Louis Stock Exchange, Chicago Board of Trade

M E Z Z A N IN E — B O A T M E N ’S B A N K B U IL D IN G
BRANCH OFFICE—JEFFERSON HOTEL

GA rfield 4*500
S T . L O U IS
GA rfield 46
LISTED AND UNLISTED STOCKS AND BONDS— ACTIVE AND INACTIVE SECURITIES— IN ALL MARKETS
_________

______________ _________

J a n u a r y , 192 9 _____________ ___________________________________________

The Prospect for 1929
In our previous annual forecasts we have begun with a review of the preceding year but we feel that so much publicity has already beei
given to the financial events of 1928 that they require no comment on our part. In almost everything pertaining to finance, it was a year o
new high records and the question in everyone’s mind is “ What will the New Year bring?” Many fundamental reasons point to a continu
ance of the prosperity enjoyed by the American people during the past few years. Corporate earnings are increasing much more rapidly
than before the W ar and indications are that 1928 profits in the aggregate set a new high record, exceeding 1927 by at least 10% . Americai
wealth is increasing at the rate of about 5 % per annum, which indicates a gain of roughly $20,000,000,000 each year and in addition, th(
savings available for new securities and improvements are now approximately $10,500,000,000 per annum as compared with approximately
$3,000,000,000 prior to the W ar. Another factor which is playing an increasing part in the market for securities is the rapid growth of invest
ment trusts. A recent compilation indicates that there are approximately 200 such organizations in this country with fully $1,000,000,001
subscribed capital. W ith all this tremendous wealth practically forced to seek investment in securities, it seems likely that the prediction!
of eight and ten million share days may be realized in 1929, especially when it is recalled that the largest single day’s transactions to date
(6,954,000 shares) were less than 1% of the total number of shares listed on the New York Stock Exchange. A return of capital to invest
ment channels and of gold to this country would result in a lowering of money rates. It is our belief that these developments appear prob
able and should result in a reviving interest and higher price levels for the bond market.
Influences which should contribute to the favorable development of business during 1929 are expanding production and consumption
the country’s sound banking system and increasing foreign trade.- Conditions in the rubber industry have been greatly strengthened by the
removal of restrictions and the outlook for tire companies has definitely improved. Automobile parts and accessories, food, copper, amuse
ment, oil, railway equipment, and radio are among the businesses which should show expansion in profits during the early months of 1929
Basic economic conditions are sound, credits and collections satisfactory, wages are high and unemployment has been reduced, all of whicl
indicates a favorable outlook for 1929.

A L I S T OF I M P O R T A N T N E W BOND ISSUE S O F F E R E D IN D E C E M B E R , 1928.

$35,000,000
14,000,000
12,000,000
11,415,000
11,275,000
10,000,000
8,000,000
6,000,000
6,000,000
5,250,000
5,000,000
5,000,000
4,755,000
4,500,000
3,100,000
3,000,000
3,000,000
3,000,000
2,700,000
2,600,000
2,500,000
2,500,000
2,489,000
2,000,000

Canadian National R ailw ay C om pany, F o r t y - Y e a r ..........................................................
State Line Generating C om pany, T w o - Y e a r N o t e s . .....................................................
Q u e b e c P o w e r C om pany, First Collateral T r u s t “ A ” .....................................................
C on su m e r s P o w e r Com pany, First Lien & Unifyin g M o r t g a g e .............................
N ew York, C h ica go & St. Louis R. R., Ref. Mtge. Se rie s “ C ” .................................
City o f An tw erp , External L o a n .............................................................................................
Delaware Ele ctric P o w e r C om pany, D e b e n t u r e ..............................................................
N ew Y o r k & For eign Investing Corporation , Debenture S e rie s “ A ” ..................
N ew England Gas & E le ctric A s s o cia tio n , Co n ve rtible D e b e n t u r e ........................
One LaSalle Street Building, First M ortgage L e a s e h o l d ............................................
Capital A dm in is trati on Com pany, Ltd., Deb ent ure S e rie s “ A ” ...............................
Realty A s s o c ia te s S e cu rit ie s Corporation , G u a ra n te e d .................................................
City o f San An ton io , T e x a s ......................................................................................................
Inte rcontinents P o w e r C o m pa ny , Deb enture Se rie s “ A ” ............................................
Delaware P o w e r & Light Com pany, First M o r t g a g e ...................................................
Dortmind Municipal Utilities, Sin king Fund M o r t g a g e ........................................
Pittsburgh & W e s t Virgin ia R. R., First Mtge. S e rie s “A” ........................................
F. & W . Grand Pro pe rtie s Corporation , C on vertible D e b e n t u r e .............................
A m e rica n State s Public S e rv ice Com pa ny , First Lien S erie s “A” ......................
Met ropolit an Chain Properties, First Mort gage C o n v e r t i b l e ....................................
W is c o n s in P o w e r & Light Com pany, First Lien & Re fundin g Ser. “ F” .............
C o m m o n w e a lt h Utilities Corp ora tion, C o n ve rtible Debent ure Ser. “ A ” .............
Harris County, Tex as, R o a d ......................................................................................................
H ousto n Natural Gas Corp ora tion, First C o lla t e r a l.....................................................

4 / 2% due
5 / 2% due
5 % due
4 / 2% due
4l/2% due
5 % due
5 / 2% due
5 / 2 % due
5 % due
6 % due
5 % due
6 % due
4 / 4 % due
6 % due
4 / 2 % due
6 / 2 % due
4/ 2% due
6 % due
5 / 2 % due
6 % due
5 % due
6 % due
4 / 2 % due
6 % due

Original
1968 @
1930 @
1968 @
1958 @
1978 @
1958 @
1959 @
1948 @
1948 @
1949 @
1953 @
1943 @
1929-68 @
1948 @
1959 @
1948 @
1958 @
1948 @
1948 @
1948 @
1958 @
1938 @
1929-58 @
1943 @

Offering
to
96
99.10 to
97
to
97
to
9 4 % to
to
94
9 6 / 2 to
92
to
to
97
100
to
99
to
100
to
9 9 / 2 to
to
96
94/2 to
s i y* to
96/2 to
107/2 to
96/2 to
105
to
to
100
99
to
Prices to
100
to

3rices.
4.72%
yield
6.00%
yield
5.15%
yield
4.65%
yield
4.80%
yield
yield
5.40%
5.75%
yield
yield
6.20%
5.25%
yield
6.00%
yield
5.07%
yield
6.00%
yield
yield 4.27-4.75%
6.35%
yield
4.82%
yield
7.30%
yield
4.72%
yield
yield
5.38%
5.80%
yield
5.57%
yield
5.00%
yield
yield
6.10%
yield 4.35-4.50%
yield
6.00%

An additional list of investment suggestions will be found on the outside back page of this sheet.
Digitized for
T hFRASER
e a b ove bond s are quoted s u b je ct to ch a n g e in market.
https://fraser.stlouisfed.org
S u b scrip tio ns re ce iv e d fo r all new issues.
Federal Reserve Bank of St. Louis

W e will be pleased to a c c e p t ord ers f o r any issue at cu rre n t prices.
O rd ers by c o r r e s p o n d e n c e given careful attentio

Members New York Stock Exchange, Chicago Stock Exchange, St. Louis Stock Exchange, Chicago Board of Trade
last Direct Wires to All Principal Markets
BOATMEN’S BANK BUILDING, ST. LOUIS
Garfield 4600- Prompt Service by Phone— Garfield 4600

Q U O T A T IO N S —J A N U A R Y , 1 9 2 9
BANK AND TRU ST COM PANY STO CKS
BANK STOCKS

Bid

merican Exchange Natl........ 135
210
125
*20
oatmen’s National B an k. . . . 185
450
300
130
130
idelity Bank & Trust Co......
irst National Bank................
irst National, Clayton, M o. .
irst National, East St. Louis.
irst National, Wellston, Mo .

110
340
300
200
375

180
uaranty Bank & Trust C o .. . 125
[amilton State Bank.............. 130
[odiamont Bank..................... 135
325
225
.afayette-South Side............... 390
/«may Ferrv Bank.................. 225
200
235
lerchants Laclede National. . 340
iational Bank of Commerce.. 174
national C ity B an k.................. 120
Natural Bridge B an k ............... 147
600
It. Louis National Bank......... 125
iecurity N at’l Sav. & T rust... 175
Shaw B ank.................................. 140
louthern Commercial & Sav. . 190
Southern Illinois N ational. . . . 375
iouthwest Bank......................... 125
700
State National Bank................. 180
'o v e r Grove B ank................... 300
Jnited States B ank................... 130

Div.
Asked Rate
140

175
120
350

131
137>S
140

6
6
6
a

400
240
360
175
125
152
ÌS5
150
135
190
350
120
135

i’ranklin-American T ru st........
iirkwood Trust C o m p a n y ....
.aelede Trust C om pany..........
Jberty Central Trust C o ........

220
155
160
135

It. Louis Union Trust Co.......
savings Trust C o .......................
ritle Guarantv Trust C o .........
Jnion Trust, E. St. Louis. . . .
/andeventer Trust (50% paid)
Vebster Groves Trust C o. . . .
Vellston Trust C om pany........
Vest St. Louis Trust C o .........

200

150
135

Mercantile Trust C om p a n y .. .
Mississippi Valley Trust C o.. .
Mound City Trust Company..
Sortii St. Louis Trust C o........

10
12Î
d
12
12Î
12

Ihippewa Trust C om pany___ 140
Ihouteau Trust C om p a n y .. . . 105

175
205
145
150
125
150
505
370
130
175
275
135
480
225
190
18
150
150
200
245
165

8t
16J
8t
12Ì
10$
4

150

RUST COMPANY STOCKS

580
380
145

12
8
12
n

8i
8
12Î
9
6
6t
12
4
aa
ad
8Î
12Î
ot
25t
8
8Î
6
6Î

When Payable
Jan. and July.
Feb. quarterly.
Dec. annually.
Jan. quarterly.
Feb. 28 quarterly----Dec. 31 and June 30.
D ec. 31 and June 30.
M ar. quarterly...........
Dec. annually.
Jan. and July.
Jan. quarterly.
1 % m onthly.

6
24 Î
16e

EOO
250
25
160
225
310
185

Mar. quarterly
June 30 and Dec. 31.
Jan. and J u ly .............
June and Dec. 1 ........
Jan, quarterly............
Jan. quarterly............
Dec. 24 annually. . . .
M ar. quarterly...........
Mar. quarterly...........
Mar. quarterly...........
Mar. quarterly...........
Jan. and July 1 .........
Jan. quarterly............
Feb. 28 quarterly.. . .
Jan. quarterly............
Y % m onthly.............
June and Dec. 1 5 . ...
M ay 31 and N ov. 30
Jan. and J u ly.............
No fixed dates...........
N o set tim e...........................
Jan. quarterly.......................
Jan. and J u ly.......................
Jan. quarterly.......................
Jan. and J u ly........................
June and D ec........................
Mar. quarterly.....................
Began business 2-2-24........
Jan. quarterly.......................
June and D e c.......................

6
6
6Î
10
9
CÎ

6
6
16Î
12
8
8
$6
ci

8Ì
6

Mar. quarterly.....................
Feb. quarterly.................
March quarterly..................
Mar. quarterly.....................
2M % quarterly...................
Jan. 1 quarterly...................
Last 1y 2 % Jan. 1, 1925. . .
Feb. quarterly......................
2 % m onthly.........................
Jan. quarterly......................
Jan. quarterly.......................
April and Oct........................
Jan. and J u ly .......................
Mar. 31 quarterly...............
Jan. 2 quarterly...................
1% m onthly..........................
Feb. quarterly......................
Last 1% April, 1924...........
Jan. and J u ly.......................
April and O ct.......................
June and D ec.......................
Jan. and J u ly........................
Mar. quarterly.....................

IN S U R A N C E S T O C K S
Bid

80
km. Automobile Insurance (810 par).
60
km. Credit Indemnity (825 p a r). . . .
84
km. Druggists ($25 p a r)......................
Digitized
forAssurance
FRASER($50 p a r).......... 70
km. N at’l
km. Surety Co. ($50 p a r).................... 300
https://fraser.stlouisfed.org
33
Central States Life ($5 p a r)................
16
ChicagoReserve
Fire & Marine
p aLouis
r ),. . .
Federal
Bank ($10
of St.
93
Continental Assurance, ($10 par) . . . .

Asked
63
88

80
325
18
97

Div.
Rate

W hen Payable

Jan. quarterly
Jan. quarterly
Mar. annually
. None being paid
$10ss Mar. 81 quarterly
f Jan. 31 annually
Last paid 40c 1926
éi.60
Jan. quarterly
$2
$4
10

M IS C E L L A N E O U S S T O C K S — C o n tin u e d

Book I
Value]

Bid

Asked

108
80
32

82
33
110
89
90
do
2nd p f d ................................
30
32
do
com m on...............................
108
Emerson Electric M fg., p fd ................. 106
94
93
Empire Gas & Fuel, p fd ........................
97
98
do
do
.........................
92 K
Empire Power, pfd. (no p a r)...............
93)3
59
63
Fidelity Bond & M tge. ($50 par). . . .
18
17>S
Ford M otor Co., Ltd. (England) £1 par
315
Frost Lumber Industries, I n c ............. 300
do
do

class “ A ” com m on............
com m on (no p a r)..............

Globe-Dem ocrat Pub., p fd ...................
Godchaux Sugars, Inc., 1st p fd ..........
Goldman Sachs Trading (no p a r ).. . .
Hussmann, Harry L., R fg. & S u p ....
Huttig Sash and Door, p fd ..................
do
com m on (no p a r)..............
Hydraulic Press Brick, p fd ..................
Illinois Power &Light, pfd. ($100 par)
do
pfd. (no p a r).......................
Indianapolis Power &Light, p fd . . . .
Industrial Finance, 1st p fd ..................
International Shoe, p fd .........................
do
co m m o n ..............................
International Utilities, pfd (w. w.) . . .
¡Jersey Central Pr. & Lt., p fd ..............
jJohansen Bros. Shoe C o. (no p a r )... .
Johnson, Stephens &Shinkle..............
IKansas City Public Service, pfd. v.t.c.
do
com m on, (no par), v . t . c . .
j Kirsehbaum (A. B.) C o., com m on. . . .
1Koplar Company, preference (no par).
Laclede Gas & Elec., pr. lien p fd . . . .
do
com m on...............................
Laclede Power & Light, co m m o n .. . .
Laclede Steel C om pany........................
Landis Machine Co., com m on............

6
115
75
117
38)4
19
24
17
69)4
95
94
105
89
50
109
74
96H

ioiy3

39
62
40
4J4
17
52
100
100
221
300
370
44

do
common (no p a r)..............
Mississippi Glass, capital ($25 par). .
M o.-Portland Cement ($25 p a r)........
M oloney Electric Co., Class A .........
Monsanto Chemical Works, common.
National Candy, 1st p fd ......................
do
2nd p fd ................................
do
common (no p a r)..............
National Gypsum, p f d ..........................
National Public Serv. " A ” com m on..
do
Series “ A ” p fd ...................
National Tile, com m on................ .......
Niese Grocery, p f d ................................
N. O. Nelson M fg., com m on...............
North American Lt. & Power, p f d ...
North Continent Utilities, com m on. .
do
p fd ........................................
Northwest Engineering, com m on. . . .
Ohio Bell Telephone C o., p fd .............
Pacific Gas & Elec., pfd. ($25 p a r )...
Parke, Davis & Co. (no p a r ) .............
Pedigo-W eber Shoe, com . (no p a r). . .
Penney (J. C.) Company* com m on...
'
do
common (new) w. i...........
Pet M ilk Company, p fd .......................
Piggly-W iggly Corp., p fd .....................
Pittsburg Plate Glass, com. ($25 par)
Procter •St Gamble Co., p f d .................
Remingtoe Arms Co., Inc., 2nd pfd ..
Riee-Stix D. G.. 1st p fd .......................

57
90
30
35
43
54 %
104
106
95
20
50
12
25
95
36
75
50
92
13
98
43)â

112

27
54
32)4
334

121
llO

104
49)3
63

7
6
$1.50t
7
6
7
$6
8

12
7
7

$2.50pp
7
$1.50
6**

93
20
71
3J4
98
6
98
*6
106
6)3
93
6
55
ec
110
6
74)3 $2.00
100
7
103
7
39 >3 $1.50w
64
$2ak
.45
$7ae
6
21
54
$4.40
102
7
5
245
10
380
45

8m
$3

38
109

P U B L IC U T I L I T Y B O N D S
R ate 1 Bid

When Payable
Jan. quarterly
Jan. quarterly
Jan. quarterly
Jan. and July 15
Jan. and July 15
Mar. quarterly
Jan. quarterly
M onthly
M onthly
Jan. quarterly;
Jan. quarterly
N ot yet announced
N o fixed dates
11-1-23 last paid
Mar, quarterly
Last paid 10-1-1923
N ot yet announced
N ot yet announced
6-1-28 last paid
Jan. quarterly
Jan. quarterly
Jan. quarterly
Jan. quarterly
None being paid
Jan. quarterly
Feb. quarterly
Jan. quarterly
Feb. quarterly
N o cash paid yet
)3 % m onthly
Jan. quarterly
Feb. quarterly
Jan. quarterly
Mar. quarterly
Mar. quarterly
Jan. quarterly
None being paid
None being paid
Mar. quarterly
Mar. quarterly
Mar. 15 quarterly
None being paid
Jan. quarterly
Feb. 15 quarterly

6 )3
57
$2
25
$2
7
35
$2
45
gk
44
S2
56
$4
106
$2.50ar
7
100
7
$1.75
20)4
55
7
14
25)4 $1.60
97
7
38
$3
7
75
6
94
$6
15
loo
7
45
$2
113
7
27
6
56
$1*
33 )3 $2.50dd
340
56mm
126
115
1- 7
8
50
64
$2vv

110)3 111
91
34
108

8
«5

7
117
79
117 )3
39
20

100
McQuay-Norris M fg. (no p a r)...........
Medart (Fred) M fg., com m on............

Div.
Rate

Mar. 15 quarterly
Jan. quarterly
Feb. quarterly
Feb. quarterly
July annually
N ot yet announced
Feb. quarterly
Jan. quarterly
Jan. quarterly
Jan. quarterly
Jan. quarterly
Jan. quarterly
Passed 10-1-28
None being paid
Mar. 15 quarterly
Jan. quarterly
Feb. quarterly
Jan. quarterly
Jan. and July
Jan. quarterly
None being paid
Jan. quarterly
Feb. quarterly
Jan. quarterly ^
Feb. 15 quarterly
Jan. quarterly
i(
Jan. quarterly
Irregular
Not yet announced
Jan. quarterly :
Ct
Jan. quarterly ;-)
None being paid
Mar. 31, quarterly
Mar. 15 quarterly
Last paid 7-1-24
None being paid
Jan. quarterly

American Gas & Electric, D e b ,.............
j Appalachian Power, D e b ..........................
Arizona Edison C o., 1st " A ” . .................
Arizona Power Co., 1st M tg e ..................
Associated Gas and Elec. Conv. D e b ...
Bloomington, Decatur & Champaign.. .
Central Illinois Public Service.................

5
6

Cities Service Co., Debenture.................
do
do
with warrant .
Citizens Independent T elephone............
do
Ref. & E x t ..............................
C ity Light A Tr. of Sedalia, M o .............
C ity & Suburban Pub. Serv., Ser. “ A ” .
Columbus R y., Pwr. & Lt., 1st & R e f ..
Commonwealth Subsidiary C o rp ............
Community Pwr. & Lt, 1st M tge. C oll. .
Dallas Telephone Company, 1st.............
E. St. Louis & Interurban W ater...........
do
1st & R ef. “ B ” . ....................
E. St. L. & Suburban, Coll. T r ............. .

5
5
5

Edison Electric Illuminating...................
Georgia Power, 1st & R e f ........................
Houston Lighting & Power, 1st L ien.. .

4)3

Illinois Electric Power Co., 1st...............
Illinois Power & Light, 1st & R e f..........
Intelaiate Public Service, 1st **F” .........
Jersey Central Power & Light, 1 s t . . . . .
Kansas City Gas, 1st M tg e ......................
Kentucky Utilities, First L ien ................
Keystone W ater Works, 1st L ien...........
Laclede Gas Lt., 1st Coll. & R ef............
do
10-Year N o te s........................
do
R efunding...............................
Lexington Utilities, 1st & Ref. M t g e .. .
Memphis Power & Light, 1st “ A ” ........
Memphis Union Station, 1st...................
Mississippi Power & Light, 1st...............
Northern Indiana Gas & E lec.................
Northern States Power, 1st & G eni. . . .
Northwest Engineering C o., D e b .. . . . .
Oklahoma Railway, 1st & R e f................
Ozark Power & Water, 1st M tg e ...........
Public Service of Colorado, 1st........ ......
Public Service Co. of N o. 111., 1st..........
do
1st Lien..................... ..............
St. Clair County Gas & E lectric.............
St. Louis County Water, 1st....................
St. Louis P. S., Conv. N otes...................
San Antonio P. S. Co., 1st & Ref. M tg.
Southern Ice & Utilities, 1st C o n v ........
Southern 111. Light <fc Power, 1 st............
Soutiiwestern Beil Telephone, 1st..........
Southwestern Power & Light, D e b ........
do
1st Lien....................................
Suburban Tel. (Clayton, Alo.), 1st........
Texas Electric Railway, 1st & R e f........
do
Conv. D e b ..............................
Union Electric Light & Power, 1st........
do
Refunding & E x t...................
Union Electric Light & Power of 111.. ..
Union Electric Light & Power of M o . . .
United Light & Power, D e b ....................
United Light & Railway, D e b ................
do
1st Lien & Con. M tg e ..........
do
1st & Ref. M tg e .....................
United R y. of St. Louis, C enerai...........
Virginian Power C o., 1st & C o l).............
Western Power, Conv. Coll. T r...............

6
6

5)3
5
4)3
7

5
5
4 Mi

5)3
5
5
5
6

5
5
5
5

6
6
6
4)3
5 )3
6
6

5
5)3

5)3
5

5
5
5
5
5
5

6
6
5)3

6
5
5
5)3
5
5)3
5
5
5)3
6
5
6
6

5
6

5
5
5
6

5
5
5
5)3

5
6 )3
6
6
5
4

5
5 )3

97
104)4
99
99)4
99)4
86)4
90
100
87
101)4
98)4
100
93)4
90
93
97
92
100
95)4
100)4
95)4
98)4
99' '
98
100
103)4
102
102)4
91
100)4
106
100
96
94
104
ioo )4

ioi)4

94
101
100
100
94)4
105
104
102)4
98

100)4
99
102
105
100
98)4

ioi)4

81
96
94
101
104
107
97)4
97
60
60
ioo )4
100)4

101

101
101
99
96K
100
96)4
80)4
100
112)4

Asked
97)4
105)4
100

101)4

100
89)4
£1

Due

Interest Dates

May & N ov.
2024 Jan & July
1945 Apr. A Oct.
1933 May & N ov.
1053

1977
1940
1967
1933
89
1958
102)4 1963
100
1936
▼
1950
1952
91
1934
94
1957
98
1948
94
1957
101
1933
97)4 1942
102
1942
96)3 1932
1940
100
1930
98)4 1967
1953
1953
104
1943
103)4 1953
92
1958
102
1945
108
1942
1947
97
1961
97
1952
105
1953
ioi)4 1935
102)4 1934
96
1952
103
1948
1930
1959
95)4 1957
107)4 1952
105
1948
104
1950
100
1938
66
1941
102
1952
101
1954
103
1956
107
1962
102
1959
1951
103)4 1945
88
1933
97
1958
96
1946
103
1931
104)4 1954
108
2022
98)4 1943
1936
62
1947
63
1942
1932
101
ioo)4 1933
1954
ioi)4 1954
1967
101
1974
98
1973
102
1952
98)4 1932
81
1934
102
1942
113
1957

Feb. & Aug.
M ay & Nov.
June & Dec.
Apr. & Oct.
M ay & Nov.
Jan. & July
M ay & N ov.
June & Deo.
Jan. & July
Jan. & July
Mar. & Sept.
Mar. & Sept
Apr. & Oct.
Jan. & July
Jan. <fc, July
Apr. & Oct.
M ay & N ov.
Mar. & Sept.
M ar. & Sept,
Apr. & Oct.
Apr. & Oct.
Mar. & Sept
Feb. & Aug.
Feb. & Aug.
Feb. & Aug,
June & Dec.
Feb. & Aug.
Feb. & Aug.
Apr. & Oct,
Feb. & Aug.
Jan. & July
M av
June
M ay
M ay

& Nov.
& Dec.
& N ov.

& Nov.

Jan. & Julv
Jan. & July
M ar. & Sept.
Mar. & Sept.
Apr. & Oct.
June & Dec.
M ar. & Sept.
June & D ec
Jan. & July
Jan. & July
Feb. & Aug.
Jan. & July
Feb. & Aug.
M ar. & Sept.
June & Dec.
M ay & Nov.
Jan. & July
Jan. & July
Mar. & Sept.
M ay & N ov,
Jan. & July
Feb. & Aug.
M ay & N ov.
Jan. & July
Apr. & Oct.
June & Deo.
Jan. & July
June & Dec.
Jan. & July

IN D U S T R IA L A N D R A IL R O A D B O N D S
American Toll Bridge, 1 st........................
Associated Simmons Hardware Cos......
Bowser (S. F.) & Co., 1st M tg e .............
Campbell Baking Co., 1st M tg e .............

7
7

6)3
7

6)3

104)4
98

101
103

100
87
103

1937
1945 Apr. & Oct.
1933 Jan. & July
1934 M ay & N ov.
1943 Jan^jMjuly

^
.¿i Life (St. L.) ($10 par).'. .
i'idehty & Deposit Co. of M d. ($50 par) 300
International Co. of St. L. ($1 p a r)..
35
International Life Ins. ($25 p a r)........
Inter-Southern Life ($1 p a r )...............
Maryland Casualty Co. ($25 p a r )... . 165
87 K
^lissouri State Life ($10 p a r).............
■rational Surety ($50 p a r )................... 138
15 H
lew W orld Life Ins. ($10 p a r)...........
•forth American Life Ins. ($50 p a r).. 210
10
Standard Am. Fire Ins. ($25 p a r). . . .
37 K
Southern Surety ($10 p a r)...................
30
Title Insurance Corp. ($25 p a r). . . . .

174

89K

139

$8ac Lf*v. .%
gh
gh
gh
gh
$4.50kk

$1.20

17K

$5
80c

hh
12
39K $1.60

None reported
Mar. quarterly
Mar. 31 quarterly
Jan. quarterly
Mar. annually
N o fixed dates
N ot published
Jan. quarterly
Mar. quarterly

A E R O N A U T IC A L S T O C K S
22K
22)4
Setlanca Aircraft Corp. of Amer., com.
26
26 K
Curtiss A. & M ., Inc., com . (no par).
22
Jurtiss F ly’g Service, com . (no par)..
22 K
Jurtiss-Robertson M fg., units............ 140
18
f'okker Aircraft Corp., com . (no p a r).
18K
27
27 K
Ireat Lakes Aircraft, Class A (no par)
59
59 K
peystone Aircraft Corp., com. (no par)
17
lahoney-Ryan, com. ($5 p a r)...........
17K
213
Jiles-Bement-Pond Co., com. (no par) 211
28
Pranscon. Air Tr., Inc., com. (no par).
27 K
Iniversal Aviation, com (non p a r).,
Î9 K
185*
273
fright Aero. Corp., com, (no p a r). . . 271

$1.50

None being paid
Mar. & Sept. 15
None being paid
None being paid
None being paid
N ot yet declared
None being paid
None being paid
None being paid
None being paid
None being paid
Feb. 28 quarterly

M IS C E L L A N E O U S S T O C K S
33
Hoe (A. S.) Company, com m on........
do
preferred.............................. 103
American Stove C om pany................... 116
American Superpower, 1st p fd ...........
98K
'Lssociated Gas & Electric, p fd ........... 100
48
Kso. Simmons Hardware, p fd ...........
lank of America, N. A. ($25 p a r). . . 188
18
lerry M otor Car, com. (no par)........
12
Phe Best-Clymer C om pany.................
41
3oyd-Weish Shoe Co. (no p a r)...........
drown Shoe Co., preferred.................. 118
46
do
common (no p a r)..............
95
druce, E. L. Co., preferred..................
45
do
common (no p a r)..............
42
dutler Brothers ($20 p a r)....................
83
Jelotex Company, preferred...............
65
do
common (no p a r)..............
50
Central Coal & Coke, preferred.........
45
do
com m on................................
124
Tentury Electric C o ..............................
80
ertain-teed Products, p fd ...................
30
do
com m on................................
Chicago R y. Equip., pfd. ($25 p a r). .
175*
7
do
common ($25 p a r)............
Pity Ice & Fuel (Cleve.) pfd._............ 104
Plaude Leon Lights, new (w. i.).......
41K
Commonwealth Power, p fd ................. 101K
36
Pomm’th Utilities “ B ” Com. (no par)
94
Pommunity Pr. & Lt., pfd (no par) . .
Ponsolidated Lead & Zinc " A ” ..........
liK
Pons. Retail Stores, pfd., w. w........... 118
30
Ponsolidated Retail Stores, com m on.
)i Giorgio Fruit, units.........................
90
Jriver-Harns Co., p fd ..........................
do
com m on............................... 124
101
St. L. & Inter. Water 1st p fd ........

120
100
101
51
193
15
43
120
47
99
42K
87
66
55
55
128
88
18K
10
106
43 K
102K
37
96
12
32
45
100

Jan. quarterly
$2.50
Jan. quarterly
7
Mar. and Sept.
10
Jan. quarterly
$6
GK Mar. quarterly
Last paid, Apr. 1, 1924
7
Jan. quarterly
$4
Mar. 31 quarterly
$1.20
Last 75c, Nov. 1926
bb
Jan. quarterly
$3
Feb. quarterly
7
Mar. quarterly
$2.50
Jan. quarterly
7
Jan. quarterly
$2.50
Feb. 15 quarterly
$2
Jan. quarterly
7
Jan. quarterly
$3
Last paid, Jan. 15,1924
5
Last paid, I K % l-15-24
Jan. quarterly
gg
Jan. quarterly
7
Last paid Oct. 1, 1928
Jan. quarterly
7
Last 3 7K c, Oct. 1927
GK Mar. quarterly
None being paid
Feb. quarterly
6
gf
gf
Feb. quarterly
$6
ah
Irregular
Jan. quarterly
8
Jan. quarterly
$1
None being paid
Jan. quarterly _
7
None being paid
Mar. quarterly
7

ose
St. Louis Car Co., pfi
do
com m on ..............
St. Louis Independent Packing..........
do
p fd.........................................
St. Louis N at’l League B. B. C lu b ...
St. Louis National Stock Y a rd s.........
St. Louis Public Service, co m m on ... .
do
p fd .........................................
St. Louis R ocky M tn. & Pac., co m ...
St. Louis Screw & Bolt, p fd ................
do
common ($25 p a r)............
Scruggs-Vand’voort-Barney, 1st pfd..
do
2nd p fd .................................
do
common ($25 p a r)............
Scullin Steel, Preference (no p a r). . . .
Securities Investment, p fd ...................
do
com m on................................
Shapleigh Hdwe. 1st pfd. (par $ 2 5 )..
do
common (par $25)............
Sheffield Steel, com m on........................
do
preferred...............................
Sieloff Packing (no p a r).......................
Skouras Bros., Class “ A ” .....................
Southeastern Power & Light, p f d .. . .
Southern Acid & Sulphur, p fd ............
do
com m on.................................
Southern Ice & Utilities, p fd ...............
do
common, Class “ A ” .........
Southwestern Bell Telephone, p fd . . .
Stix, Baer & Fuller, com m on..............
Studebaker Mail Order, Class “ A ” . . .
Truax-Traer Coal, com . (no par). . .
Union Elec. Light & Power, M o., pfd..
do
do
p fd ........ ...........
do
of Illinois, p fd ....................
Union Metal M fg., p fd .........................
do
common (no p a r)................
United Accounting Machine, c o m ... .
do
units (1 pfd. and 1 com .).
U. S. Dairy Products, Class “ A ", com.
Univ. Traffic Control ($10 par)..........
Wabash Telephone Securities, p fd . . .
Wagner Electric M fg., p fd ...................
do
common (no p a r ) ..............
do
do
n o w (w .i.).........
Walgreen Company, p f d ......................
do
com m on................................
do
option warrants.................
Western Cartridge, p fd .........................
do
com m on................................
Winchester-Simmons, p fd ....................

, 1st M tg e ................
ruuafi.y Packing Com pany, D e b ...........
Dold
(Jacob)
Pack.
C o., 1 st....................
rr
rr
Ferry Station Post Office, 1 st..................
Jan. quarterly
8
99K
Fleisher,
Inc.
(S,
B.
& B. W .), 1 st.........
21
None being paid
Fox-New Eng. Theatres, Conv. D e b . . .
82
Jan. quarterly
7
Fox
St.
Louis
Theatre
1st Fee & Lshld .
Jan. quarterly
2
Godchaux Sugars, Inc., 1st M tg e ...........
Feb. quarterly
7
Hearst
Publications,
Inc.,
1st & C o ll.. .
Mar. quarterly
25
$1
Heine Boiler C o., 1st M tg e ........... ..........
80
Jan. and July
6
Houston
Oil
C
o.,
Convertible
N otes. . .
Jan. and July
7
Illinois Glass, D ebenture..........................
Passed 2-1-28
18K
Income
Leasehold,
1st
M
tg
e
...................
Jan. quarterly
$3
34K
Independent Brewery C o., General.......
Jan. quarterly
8
Indiana Limestone. Deb., wdth w r ts ....
Jan. quarterly
$3
37K
Joplin
Union D epot, 1st G uar................
6
Feb. quarterly
Kansas C ity Bolt & Nut, 1st & R e f .. . .
8
61
$5
Kellogg
(Spencer) & Sons, Inc., D e b . . .
$2aj Jan, quarterly
Little R ock & H ot Springs W estern----106
Jan. quarterly
7
Long-Bell
Lumber, 1st “ A ” .....................
Jan. quarterly
17K $1.20
do
series “ B ” .................................
Feb. quarterly
54
$3
do
scries “ C ” .................................
Jan. quarterly
107
7
do
Conv. Coll. T r .......................
Jan. quarterly
7
Ludlum Steel Co., 1st M tg e ....................
Mar. 15 quarterly
48
$3
Manila
Railroad
(Southern L in es).........
-Mar. quarterly
89
7
M ay Building (St. Louis), 1 st.. .............
15
None being paid
Medart Company, 1st M tg e ...................
Jan. quarterly
7
120K
Mengel Company, 1st M tg e ...................
Mar. quarterly
38 K $1.50
Missouri A Illinois Bridge B elt...............
Mar. 20 quarterly
28
$2
Missouri-Illinois R ealty C o., 1st M tge
26
N ot yet declared
Missouri Pacific R. R ., Secured..............
Jan. quarterly
111
7
M oloney Electric Co., D eb ..................
Jan. quarterly
103
6
Monsanto Chemical W orks, 1st M tge.
Jan. quarterly
103
6
National Bearing Metals, 1st M t g e .. .
Jan. quarterly
8
National Tile. D ebenture.......................
$3
Jan. quarterly
50
New Orleans Great No. R y., 1st..........
N ot published
22
Nugent Realty, 1st Lshd., Ser. A .......
None being paid
38
Pacific
Mills, 5-Year N o te s....................
Feb. 28 quarterly
49
$4
Peoria Railway Terminal, 1st Guar. . .
None being paid
11
Pickering
Lumber Co., 1st M tg e ..........
100 105
7
Jan. quarterly
Piedmont & Northern R y., 1st.............
Jan. quarterly
7
106K 108
Prichard
Hotel,
1st M tg e .......................
172
M ar. quarterly
174
$6
St. Clair, Madison & St. L. B e lt..........
N ot yet announced
43K 44
St.
Louis
Car
Co.,
1st M tg e ..................
106
108
GK Jan. quarterly
St. Louis Coal A Iron, 1st M tg e ...........
87
None being paid
88
St.
Louis
M
erch.
Bridge
Ter., 1st. . ..
60
61
St. Louis National Stock Yards, 1 st...
100
Jan. quarterly
6
St.
Louis
Screw
&
Bolt,
1st
M tg e ........
Jan. 15 quarterly
6
125
Santa Ana Sugar, 1st M tg e ...................
None being paid
18
Schaffer Oil & Refining, Conv. N otes..
Scru ggs-V andervoort-Barney.................
F O R E IG N B O N D S
Scullin Steel, 1st M tg e ............................
Interest Dates
Due
Asked
Rate
Bid
Sevilla-Biltmore Hotel, 1st M tg e .........
Sheffield Steel Corp., 1st M tg e .............
90
1940 Apr. & Oct.
Bolivia (Republic of), $ ...........................
6
85
Southern III. & M o. Bridge, 1 st...........
Brazil, Loan of 1895, £ .............................
72
73
1957 Feb. & Aug.
5
Truax-Traer Coal Co., Conv. D e b ... .
57
Brazil, Loan of 1889, £ .............................
4
58 l_1900 Apr. & Oct.
Cuba, Internal Loan of 1905, $ ..............
100
None M ay & N ov. 28 United Post Offices, 1st M tg e ...............
5
98
Wagner Electric M fg. C o., 1st M tge . .
100
European Mortgage & Inv. 1st, $ . . . . . .
97
1950 M ay & N ov.
7K
Ward Baking C o., 1st M tg e ..................
French Premium Loan, fes.......................
42
43
19S0 M ay & Nov.
5
Wayne Pump Co., D eb. with w r ts .. . .
38
None Feb. 16 quar.
French Victory Loan, fes.........................
5
35 K
Whitaker Paper Co., 1st M tg e .............
Italian Cons. Loan (perpetual rentes). .
5
44 K None Jan, & July
4 2K
Wickwire-Spencer Steel, S e c..................
Karstadt (Rudolph), 1st Mtge, $ ...........
1930 Apr. & Oct.
7
101
bn
Wright Building, 1st M tg e ....................
94
Sao Paulo (City of), Ext. $ .....................
6
93
1943 M ay & Nov.
Wurlitzer (Rudolph) Co., D e b .............
1945 June & Dec.
United Industrial (Germany), $ .............
6
87
89

|— Paid 25% each Dec. 24, 1922, 1923, 1924 and 1925 and 5% Dec. 24, 1928. Also paid 100% in stock Jan.
15, 1926.
-Paid 6% Dec. 1925, 3% in June and 4% In Dec., 1926 and 1927, and 3% June 30. 1928.
lb— Entire issue called for payment at 103 and interest Feb. 1, 1929.
-Paid $1 extra Dec. 31, 1928.
Id— Paid 2% Jan. 1, 1925, 3% Feb. 1, 1926, 2% Feb. 1, 1927. 5% Feb. 1, 1928, and 6% Dec., 1928.
-Reduced quarterly dividend payment to $1 from $1.75 on Oct. 1, 1928.
Ig— Paid $7 July 25, 1928, on dividend arrears.
Lh— Paid 2»c July 2. 1928, and Jan. 1, 1929.
. , . ,
f j— Paid 33%% in stock July 1, 1928. and 50% Oct. 10, 1928. W ill also pay 1% in stock quarterly during 1929.
Ik— Paid 25c extra Jan. 3, 1928, and 1929.
[r— Stockholders of record Jan. 12. 1929, will be given right to subscribe for stock at $50 per share in the
ratio of one share for each seven held. Privilige expires Feb. 11. 1929.
I-—Paid 10c extra Jan. 3, 1928.
lb — Acquired by Preserves and Honey, Ire. Name changed to M ichigan-Davis Co.
|>h— Entire issue called April 1, 1929, at 101 and interest.
-Paid 15% June 30 and 12% Dec. 31 in 19.8,
[d— Paid 50c extra December 22, 1927.
-W ill pay 4% extra Jan. 2, 1929
I— W ill pay 35c extra Jan. 2, 1929.
,
-In arrears 48%. Paid 1% July 1, 1925, and 1% Jan. 1, 1926, on the back dividends.
| — Also extra dividend in 1928: Baden, 2%; Belleville Savings Bank, 2%; Boatmen’ s National Bank, 2% ;
Bremen Bank, 8%; Cass Avenue, 2%; Easton-Taylor Trust, 2%; First National Bank, St. Louis, 5%;
First National Bank. Wellston, Mo.. 5%; Laclede Trust, 2%; Lemay Ferry, 2%; Lowell. 2%; Mercantile
Trust, 2%; M erchants-Laclede National, 6%; Natural Bridge Bank, 1%; North St. Louis Trust, 3%;
Union Trust 6%; Southern Commercial & Savings Bank, 2%: Southern Illinois National, 4%;
DigitizedSt.
forLouis
FRASER
Southwest
Bank. 1%; State Bank of Wellston, 15%; Tower Grove Bank, 4%; W ater Tower Bank, 1%:
Wehster Groves Trust, 5%: Wellston Trust. 8%.
_____________________________ —— .
https://fraser.stlouisfed.org
W e fu r n isBank
h q u oof
ta tio
s o f o th e r
Federal Reserve
St.nLouis

secu rities o n req u est.

97 K
101
98
87
99
86
103
99
100
97K
96
98
100
100
15X
91
95

io iK
98

86
90
90
90
96
106K
73K
99K
105
104
100
95
93
99
103
102K
83
96
94 K
90
9 8K
96
97
78
100K
89
99
97K
99
99K
98K
98K
99K
102
99K
78
103K
97 K
103K
95
108
89
95
101

•«K di'Hh

___

Ö9K 1948 Apr. & Oct.
103
1939 Mar. & Sept.
98 K 1937 Apr. & Oct.
87K 1942 M ay & Nov.
101
1934 Apr. & Oct. 15
87
1939 June & Dec.
105
1943 Feb. & Aug.
101
1942 Apr. & Oct.
103
1941 June & Dec.
29-47
M ay & Nov.
99K
100
29-33 Apr. & Oct.
99
1938 June & Dec.
101
1933 Jan. & July
1936 Jan. & July
20X 1943 June & Deo. Y
95
1936 May & N ov.
1940 May & N ov.
98
V
1939 Feb. & Aug.
100
1938 Jan. & July
1939 Jan. & July
92
1942 Jan. & July
92
1943 Apr. & Oct.
1946 Feb. & Aug.
92
1931 June & Dec.
n
1943 Feb. & Aug.
74 K 1939 May & N ov
29-39 May & N ov.
1937 Mar. & Sept,
1934 Mar. & Sept.
70
1951 Jan. & July
29-36 June & Dec.
97
31June 56
& Deo
94
1943 June & Dec.
101
1942 M ay & Nov.
104
1947 May & Nov.
ah
1937 Feb. & Aug.
85
1955 Feb. & Aug.
98
1944 June & Dec
95K 1931 Feb. & Aug
93
1937 Jan. & July
1946 May & Not ,
97K 1954 Jan. & July
102
29-39 Feb. & Aug.
81
1951 Jan. & July
101
1935 May & Nov.
1934 Mar. & Nov.
1930 Apr. & Oct.
1930 Jan. <fc July
29-35 Mar. & Sept.
101
1931 Apr. & Oct.
99K 1933 Mar. & Sept.
100
29-39 Mar. & Sept,
looK 1941 Apr. & Oct.
104
1937 May & Nov.
1948 Mar. & Sept.
82
1951 May & Nov
104K 1943 May & Nov. 15
99
1935 Feb, <&Aug.
32Feb. 37
& Aug.
R
104
1937 June
Dec. 151
98
1948 June & Dec.
1942 May & Nov.
1932 Mar. & Sept.
1931 Jan. & July
103
1938 Jan. & July 15

ee— Paid 25% in stock 9/15/27. No cash payments,
f— No fixed rate. Paid 17% 1926, 18% 1927.
ff— Paid 50c Feb. 15. 1928. None since.
g— To be retired Feb. 1, 1929, at prices ranging from 100% to 104%, according to maturity,
gf— Pays 50c in cash and 1/20 share of stock annually,
gg— Paid $4.50 in cash and 5% in stock during 1928.
gh— Taken over by Missouri State L ife Insurance Company, Details on request.
gk— Recently split on 4 for 1 basis.
hh— Paid 43% stock dividend Jan. 10, 1925, also $5 cash each Jan. and July, 1926.
j j — Paid 10c extra Jan. 16, 1928.
k-—Dividend pavments irregular. Record furnished on request,
kk— Paid 50c extra Dec. 22, 1927 and 1928.
km — Paid 4% January 31st and 3% June 1. 1927. Paid 2% Jan. 25. Apr. 1 July 1, and Oct. 1, 1928.
m— Paid 7% extra Dec. 13, 1928, 5% Dec. 13, 1927, Dec. 10, 1926, and 4% Dec. 10, 1925
Directors
voted a 50% stock dividend and split-up on a five for one basis.
mm— Stockholders will be given two shares at $7 per share for each share held.
n— Entire issue called for redemption Feb. 1. 1929, at 107% and interest,
nn— Paid extras of $1 and 20% stock 1/15/26; $1 on 12/1/26, also $1 extra 1/15/27.
rr— Paid $5.00 (20%) October, 1928, each on Preferred and Common stocks,
s— Payable $2 on March 1 and $1 quarterly,
ss— Paid $1 extra Dec. 31, 1827.
t— Paid 75c extra Jan. 16, 1928.
v — To be retired in connection with new financing,
vv— Paid 10% in stock Dec. 1, 1928.
w— Paid 12V>c extra Per. 1. 1927. and Mar.. June and Went. 1. 1928. X — Sells flat. Y— In default.
Q uotations are nom inally as of Decem ber 31, 1928, and can be bled for fu tu re reference

h&ve I

W E M A IN T A IN A D E P A R T M E N T E X C L U S IV E L Y FO R T H E P U R C H A SE A N D SA L E O F
L IB E R T Y B O N D S A N D U N IT E D ST A T E S G O V E R N M E N T O B L IG A T IO N S

Our New Year Recommendations
FOR INVESTMENT FUNDS
For the reinvestment of maturing bonds or for idle funds, we offer and recommend, among many others,
the following attractive securities, which combine, to a high degree, the cardinal principles of all sound invest
ments, viz., Safety, Liberal Return and Marketability.

PUBLIC UTILITY, INDUSTRIAL, REAL ESTATE AND FOREIGN BONDS
Rate
Federal Land Bank........ ........ — ........................... ................................. ........................----Youngstown Sheet and Tube Co., First Mortgage, Series A ....................... .......
Central Illinois Public Service, First Mortgage.................................................. ____
Columbia Gas and Electric Corporation, Debenture................................ — ____
Fred Medart Manufacturing Company, First Mortgage Real Estate----- ___
Firestone Cotton Mills, Guaranteed........................................................................ ......
Delaware Electric Power Company, Debenture.................................................. ......
Detroit Cold Storage and Terminal Company, First Mortgage................... ... .
Foos Engine Company, First M ortgage............................................................... .___
Fulton Finance Company, Collateral Trust..........................:...............................
Rudolph Karstadt, First Mortgage.............................................. ........................ ...... ..
Koholyt Corporation, First (Closed) Mortgage................................................... .
Ruhr Flousing Corporation, First M ortgage...................................................... .......

4% %
5%
5 %
5%
5 / 2%
5%
5 /2 %
6%

(>%

6 %
6 / %
6 /a %

Maturity
1958
1978
1968
1952
1937-58
1948
1959
1933-37
1933-38
1931
1943
1943
1958

Approximate
Yield
4.25%
4.95%
5.UU%
5.04%
5.50%
5.55%
5.75%
6.00%
6.00%
6.00%
6.15%
6.75%
7.15%

MUNICIPAL BONDS
City of Atlanta, Georgia............................................. ...........................................
City of Hartford, Connecticut.............................................................................
City of New Rochelle, New Y ork.....................................................................
City of Racine, W isconsin......................................................................................
City of Charlotte, North Carolina........................................................................
City of New Orleans, Louisiana..................................... .................................... .
State of Arkansas...................................................................................................... .
City of Norfolk, Virginia.......................................................................................
Other Aiunicipals to Yield Up to........................................... ......... ...........

------ 4 / %
......4 *4 %
....... 4J4 %
____ 4 / %
...... 4 / %
----- 4 / %
----- 4 ¡4 %
.— 4 / 2 %

4.00%
4.00%
4.10%
4.125%
4.20%
4.30%
4.30%
4.40%
5.00%

1947-54
1930-53
1938-63
1939-46
1934
1964
1949-58
1956

CUMULATIVE PREFERRED STOCKS
U. S. & International Securities Corp., Preferred ( W . W .)
Selected Industries, Inc., Units (5 0% Paid)............................
Engineers Public Service Company, Preferred ( W . W . ) ......
Brown Shoe Company, Preferred..................................................
Southwestern Bell Telephone Company, Preferred.................
Standard Gas & Electric Co., Preferred.......................................
Electric Investors, Inc., Preferred..................................................
Union Electric Light & Power Company, Preferred.............
Rice-Stix Dry Goods Company, Preferred................................
Kraft Phénix Cheese Corporation, Preferred............................
Lexington Utilities Company, Preferred.....................................
Federal W ater Service Corporation, Preferred........................
Commercial Investment Trust, Preferred.....................................
Laclede Gas & Electric Company, Prior Lien............................
Securities Investment Company, Preferred.................................

Rate
------- $5.00
........ $5.50
____ $5.50
........ 7 %
------- 7 %
_____ $4.00
........ $6.00
........ 6 % & 7 %
......... 7 %
......... 6 / %
........ 6 / 2%
......... $6.50
........ 6 /4 %
'
........ 7 %
........ 8 %

Price
Mkt.

u
u
il
il
il
il
il
II
li
II
il
li
II

Approximate
Yield
5.00%
5.50%
5.59%
5.88%
5.88%
6.06%
6.06%
5.74-6.25%
6.36%
6.50%
6.50%
6 60%
6.71%
6.76%
7.47%

A ll offerings subject to prior sale and change in price.
W rite for detailed circulars on any of these issues or ask to have one of our representatives call.

M A R K C. S T E IN B E R G & C O M P A N Y
M em b ers N ew Y ork, C h icago, S t. Louis S tock E xch anges an d C hicago B oard o f Trade

M ezzan in e—B o a tm e n ’ s Bank B uilding
GA r f le ld 4 6 0 0

BRANCH OFFICE—JEFFERSON HOTEL

C A r field 4600

S T . L O U IS
Careful Investors Benefit by Considering Our Offerings

W» do not guarantee the information and statistica in this pamphlet, but have obtained them from sources deemed reliable
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

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January, 1929

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largest mining concern in Brazil is
owned by the United States Steel Cor
poration. About four score American
manufacturing companies are doing a
big business in the country and Amer
ican capital has gone into a great va
riety of native industries.
Chile, the long, thin country on the
west coast of South America, is the
great mining country of the continent.
Next to the United States, Chile pro
duces more copper than any other
country in the world, and it furnishes
a quarter of the world production of
nitrates. While Chile has not offered
a great opportunity for American
trade because it is a small country
(not quite one-tenth as large as the
United States) and has a population
of only 3,750,000—it has been and is
still very attractive and important as
a field for American investment. More
American money has been invested in
Chile than in any other South Amer
ican country, and American interests
control nearly all the copper output
and a large part of the nitrate pro
duction.
Space does not permit a treatment
of the countries of South America
other than the three leading nations
discussed above. But a survey of all
the South American countries would
indicate as in the case of Argentina,
Brazil, and Chile the great and grow
ing opportunities for American trade,
investment, and banking which are
being appreciated and seized by Amer
icans in increasing measure.

I N the northern section of Latin
America, which embraces the coun
tries from South America to the Rio
Grande and the islands in the Carib
bean Sea, the leading countries are
Cuba and Mexico.
Cuba is the jewel among all the
countries in this region and in it
Americans have invested more capital
than in any other foreign country in
the world except Canada. Our in
vestment of $1,500,000,000 in Cuba is
thirty per cent of all of our invest
ments in Latin America. Cuba is the
largest sugar producer in the world,
and two-thirds of its output is con
trolled by citizens of the largest sugar
consumer in the world—the United
States. Almost all of the railway sys
tem of Cuba is American owned and
millions have been invested by Amer
icans in manufacturing and commer
cial enterprises and in tobacco and
fruit lands.
The island of Cuba is approximately
the same size as our state of Pennsyl
vania and it has a population of 3,500,000. It was not always so pros
perous as it is today. It was quite
a backward and miserable country un-

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Federal Reserve Bank of St. Louis

id- C o n t i n e n t

anker

til the last quarter of a century.
American capital and American inter
vention (called ‘ ‘ Imperialism’ ’ by the
critics of the United States) have
made Cuba the splendid country it is
today. Twenty-two of the seventyfive years before armed intervention
by the United States in 1898 were
given over to violent insurrections—
and unrest and turmoil ruled between
insurrections.
Mexico is more than seventeen times
as large as Cuba and has a population
of 15,000,000. But both its exports
and its imports are far less than those
of Cuba. It is three-fourths as large
as Argentina and possesses most won-

derful potential resources, but the
Mexican people have not been able to
develop the possibilities by themselves.
This is due to the peculiar and unfortu
nate character of the Mexican popula
tion. One-third of it is Indian and
more than one-half is composed of
Mestizos (white and Indian halfbreeds). Only about 15 per cent of
the population is white. Eighty-five
per cent of the people are illiterate.
As a result of this make-up of the
population Mexico has been hampered
by political instability which has made
progress toward prosperity extraordi
narily difficult.
Nevertheless $1,400,000,000 of Amer-

Bankers and Investors consldenn§
th e

pur

chase of Foreign bonds should have a general
knowledge of the offering government, its
political and industrial history, and the place
it holds in the commercial and diplomatic
world.
To secure this information, the investor must
either spend a great deal of time and effort in
careful research, or rely upon expert opinion.
That is one of the functions of Baker, Kellogg
& Company, Inc., to furnish, without obliga
tion, expert advice on all phases of Foreign
bond investment.

Our highly trained staff will be glad
to answer any inquiry relative to
Foreign bonds.

BAKER, KELLOGG & CO., Inc.
qA

Specialized Service in Foreign Securities fo r

BANKS and INVESTORS
111 W e s t M o n ro e Street
C H IC A G O
Telephone Randolph 0415
NEW Y O R K
LON DON

BOGOTA
BUENOS A IR E S

ican capital has been invested in Mex
ico. Next to the United States, Mex
ico is the greatest petroleum produc
ing country in the world. We con
sume far more petroleum than we pro
duce and most of the Mexican produc
tion is taken by the United States.
Over one-third of our investment in
Mexico is in oil which means that al
most three-fourths of Mexico’s oil pro
duction is controlled by American com
panies. About one-fourth of our in
vestment in Mexico is in mining and
one-sixth of the Mexican railway sys
tem is American owned. It is con
servative to state that at least one
billion dollars more of American cap
ital would have been invested in our
southern neighbor had it been more
stable politically in the recent past.
The seven Central American coun

id -C o n t i n e n t

tries extending from Mexico to South
America are rich in resources but like
Mexico they have been very unstable
politically and frequent uprisings have
hindered progress. These little coun
tries, which altogether are about as
large as Texas, are often referred to
as the “ Banana Republics.” They ex
port more bananas than all the rest of
the world and practically all of their
exports are sent to the United States.
These countries might more aptly be
called the “ Coffee Republics” for the
value of their coffee exports is from
three to five times as large as the
value of their banana exports. All
through these Banana Republics Amer
ican capital has slowly begun to en
ter and to try to make progress and
prosperity possible. As, and if, these
republics and Mexico become more able

What is a
“Satisfied Investor”?
* I 'HERE are several factors that go to make an
investor satisfied— but the important thing
is safety. Knowledge that principal is protected
— that its security is sound and ample— breeds
peace of mind in high degree. And this satisfac'
tion is essential to the investments of institutions
and individuals alike.
Robert S. Strauss & Company is in a position to
offer investors a selection of high grade first
mortgage real estate bonds secured by well
located income^producing properties in the City
of Chicago. The safety of these bonds is
assured. A list of current offerings will be sent
upon request.

Robert
S.Strauss—
&
C
o.
—
—
—
—
—
—
—
—
—
Investment Bonds—First Mortgages
1 0 5 W e s t M o n r o e St.
C H IC A G O

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Federal Reserve Bank of St. Louis

1 5 0 B ro a d w a y
NEW YO RK

January, 1929

anker

to maintain law and order the oppor
tunities for increase in American
trade, investment, and banking will be
almost unlimited.
HE really important and difficult
problems now faced by the coun
tries of Latin America are the prob
lems of securing foreign capital and
foreign business ability. These are all
young countries and they desire to
build up great progressive and pros
perous civilizations, following more or
less the example of the United States.
They have the basis upon which to
build consisting of wonderfully rich
natural resources. But like all young
countries they lack capital and this
capital must be practically all secured
from the great creditor nation of the
world—the United States. They have
a fair quantity of labor and can easily
increase it by stimulating immigra
tion from the over-populated nations
of Europe. But they need foreign
business executives of high ability and
it appears that such men must prin
cipally be drawn from the country
of scientific business management—the
United States.
Here we find the one fundamental
and over-shadowing problem of the
countries of Latin America. Capital
is timid. Business executives are not
eager to face extreme uncertainties.
Political instability with its uncertain
promise of law and order repels capi
tal and business enterprise. Onfy
those Latin American countries where
political stability with law and order
is maintained will secure an adequate
amount of American capital and busi
ness enterprise.
Argentina, Brazil, and Chile have
proven that they are such countries
and so too, it appears, have the other
countries of South America. But the
countries of northern Latin America,
those from South America to the Rio
Grande and those of the Caribbean,
have not been able to duplicate the
achievement o f the South American
nations. In many of these countries
the United States has had to intervene
at one time or another to secure po
litical stability and protect life and
property. The intervention of the
United States from time to time in
such countries as Nicaragua, Panama,
Haiti, San Domingo, Cuba, and Mex
ico has been necessary to give those
countries political stability when they
were unable to protect life and prop
erty themselves.
The American policy of interven
tion in Latin America has called forth
a great amount of protest from the
critics of the United States but it ap
pears to an unprejudiced observer that

January, 1929
our policy is beneficial to both Amer
icans and Latin Americans. Our pol
icy of keeping weak southern govern
ments stable when they are unable to
govern themselves benefits them in the
following ways: 1. keeps up the flow
of foreign capital and foreign busi
ness ability to the Latin American
countries by assuring law and order
in those countries; 2. keeps down the
interest rates paid by Latin Ameri
cans on foreign capital; 3. protects
Latin American countries from any
armed invasion by European powers
to safeguard European investments in
Latin America (the European powers
might not follow the policy of the
United States which is to withdraw
from a country as soon as possible
after intervention) ; 4. gives Latin
Americans peace when their own gov
ernments are unable to do so. Amer
ican intervention in Latin American
countries benefits the United States in
these ways: 1. protects American lives
and investments when Latin American
governments are unable to do so ;
2. keeps European powers from ex
panding into our hemisphere on the
pretext of protecting their investments
in Latin America: 3. sometimes we
have been forced to intervene for the
very self-preservation of the United
States itself as in the case of the
Panama Canal affair and as in Nicaraugua where our rights to build a canal
must be protected.
HE nations of South America are
quite successful in maintaining
political stability but the countries ly
ing between them and the United
States are kept stable only by the in
fluence of the United States and its
policy of intervening whenever nec
essary. This policy of intervention in
Latin America has been followed by
the United States for more than a cen
tury and has been upheld by both
Republican and Democratic parties.
Therefore it is logical to suppose that
it will be continued in the future in
spite of the protests of anti-American
critics. It must continue if Latin
American countries are to progress
at the most rapid rate and if Amer
ican trade, investment, and banking
in Latin America are to have the won
derful expansion that the future war
rants.
The financial and commercial rela
tions between the United States and
Latin America merit the careful at
tention and study of every farsighted
business man, banker and student.
Tremendous developments in these re
lations are going to occur in the next
decade and in the next few genera
tions.

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Federal Reserve Bank of St. Louis

id - C o n t i n e n t

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N ew Stock Rights Issued to
Cities Service Stockholders
The 100,000 common stockholders of
the Cities Service Company are to be
given an opportunity to purchase ad
ditional common stock at $65 per
share on the basis of one share for
every ten shares owned. This right
will be issued to registered holders of
record at the close of business January
8, 1929, and must be exercised before
February 7, 1929. Holders of Cities
Service Company Debentures, due
1963, to which are attached warrants
to purchase Cities Service common
stock, will also be given the opportu
nity to participate in this offering.
The funds from this financing, which
may total as much as $40,000,000, will
be used for further expansion, includ
ing new construction work, additions
to subsidiary properties and for other
corporate purposes. This company
has about 400,000 security holders and
25 per cent of this number own Cities
Service common stock.
Some of the recent developments in
the activities of the organization
which calls for expansion include its
large new refinery to be built at Chi
cago during 1929, its one-half interest

in a 600 mile pipe line now being
built from the Mid-Continent oil fields
to Chicago, its extensive interests and
operations in the new oil pool which
it recently discovered near Oklahoma
City, and electric light and power and
gas development work in Colorado,
Ohio, Kansas and Missouri.

M id-W inter Session I. B. A .
To Be H eld January 2 4
The executive council of the Illinois
Bankers Association will meet on
Thursday, January 24, at the Palmer
House, Chicago, for its annual mid
winter session. Reports of the several
committees of the association will be
presented and acted upon; the activi
ties of the first six months of the as
sociation year will be reviewed.
The session will be followed by the
annual mid-winter dinner at which
nearly a thousand bankers from all
over the state are arranging to attend.
The toastmaster at the dinner will be
the president of the Illinois Bankers
Association, Omar H. Wright, presi
dent, Second National Bank, Belvidere.
Frederick R. Young, chief justice of
the Supreme Court, and Captain Nor
man Allan Imrie, Culver Military
Academy, will address the meeting.

E. H. O TT M A N & COMPANY, Inc.
Investment Securities
U n d erw riters, W h o le s a le r s , P articipating D istribu tors

Public Utility, Industrial and
First Mortgage ‘Real Estate
Bonds
B a n k e rs B u ild in g

Your Hom e
Aw ay from
Hom e

C h ic a g o

Single

R o o m s a s lo w as

per d a y.

sp o n d in g ly lo w . W r i t e o r w ir e
f o r in fo r m a tio n a n d r a te s.

You intensify the pleasure
o f your stay in Chicago
when you select the Rogers
Park Hotel as your abode.
Located on world famous Sheridan Road,
it offers you every service that a thought
ful, efficient management can devise for your
comfort, convenience and pleasure.
All rooms are outside rooms— large, airy
and cheerful; some with kitchen where you

may prepare your own
meals.'^et dining room
___
service is excellent. A beau
tiful park slopes down to
a wide, sandy beach— and just beyond it,
Lake Michigan. Nowhere is there a finer
panorama of its sparkling waters.
La Salle Street and the busy, noisy Loop
are but 22 minutes removed— with splen
did transportation service 24 hours daily.

ROGERS PARK HOTEL
SH E R ID A N R O A D

$ 3.00

L a r g e r su ite s c o r r e

AND

PRATT BOULEVARD

C H IC A G O

Demand for N ew York City
First Mortgages Unabated
From a survey of the real estate
and building construction situations in
the metropolis, issued recently by the
New York Title and Mortgage Com
pany, it is estimated that this com
pany will have loaned approximately
$240,000,000 during 1928 on first mort
gage, secured by improved real estate
in Greater New York, Long Island and
Westchester County.
“ It is now a safe assumption,” the
survey declares, ‘ ‘ that the total build
ing volume in the metropolitan zone,
for the first nine months of this year,
exceeds $1,000,000,000. The total of
building contracts awarded, during the
period under review, amounts to $1,152,604,400, an increase of 14% over
the same period a year ago.”
Concerning the subject of conserva
tive appraisals, in the first mortgage
field, a subject which has received
much attention of late, the report ad
vocates strict adherence to the most
conservative appraisal standards, stat
ing that this policy presents one of the
chief features which distinguish the
conservative first mortgage lending or
ganization among its institutional as
well as individual clienteles.
Upon the subject of first mortgage

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January, 1929

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appraisals, the survey states that the
New York Title and Mortgage Com
pany is unalterably opposed to the
practice of having land valued by one
appraiser and building by another, in
stead of considering the entire prop
erty as a unit. To quote, “ The Real
Estate Securities Committee of the In
vestment Bankers Association, at their
17th Annual Convention, during Oc
tober last, reported, the moment a
building is completed, the land and
building become a unit having a mort
gage value as such until the building
becomes obsolete or too old for use.
“ For many years, the conservative
first mortgage institution,” the survey
continues, “ has pioneered along the
lines now recommended by this com
mittee, particularly adhering to the
policy of requiring that joint valuation
of land and buildings, based on phy
sical values, be checked from the stand
point of earnings, trend of neighbor
hood, obsolescence, economic adequacy,
etc., before arriving at a scientific de
termination of true valuation.”
The principle, that real estate values
invariably follow population is again
strikingly brought out in the survey,
by the statement that the increase
alone in New York City realty assess
ments during the year, amounting to
about $1,500,000,000, is greater than

Municipal Bonds

the total assessed valuations of real
estate in four of the largest American
cities, viz., Dallas, Denver, Indian
apolis and Kansas City.

N ew

York

Trust

Com pany

Is Trustee for Hospital Funds
The Central Union Trust Co. of New
York has been appointed campaign
treasurer for the funds raised by the
drive for the projected $3,000,000
Irish Memorial Hospital to be erected
on the east side of Manhattan, in the
“ Fifties.”
The Central Union has maintained
for many years, as one of its trust
services, a special division which han
dles the finances of hospitals, churches,
schools and other public institutions.
For some time it has served in the ca
pacity of treasurer for the Cathedral
of St. John the Divine, St. George’s
Church, St. Luke’s, Roosevelt, W o
man’s and Orthopedic hospitals, as
well as for certain schools, seminaries,
missionary societies and homes.
Health is the foundation of wealth,
and a whole body is a help toward a
holy soul.
I f you will not hear Reason, she will
surely rap your knuckles.—Franklin.

N. L. ROGERS
andC

O M P A N Y

(IN C O R PO R ATED )

Safety of Principal
A ll Maturities
A ll Denominations

INVESTMENT
SECURITIES

Tax Exemption
4/i to 6.00 per cent
%

JVrite for offerings and Bank Discounts

JheJfanchettJQondGo
Incorporated 1910

MUNICIPAL BOND?
National Bank of Commerce Bldg.
St. Louis
C H IC A G O

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

NEW

YORK

D E T R O IT

Underwriters and

PEORIA

D istrib u tors o f
Bonds and Stocks

DECATUR
DANVILLE

January, 1929

-C

o n t in e n t

Law s Governing the Investm ent o f a
Bank’s Secondary Reserve Funds
I NQUIRIES addressed to state bank
commissioners in the Mid-Continent
territory have disclosed the fact that
very few states have definite laws gov
erning the investment of a state bank’s
secondary reserve funds.
In reply to a number of letters sent
by the M id-C o n tin e n t B a n k e r to state
bank commissioners, asking what re
strictions are placed on the investment
of a state bank’s secondary reserve
funds, the following answers were re
ceived :
S. L. Cantley, commissioner of
finance in Missouri, says: “ The law
does not impose any restrictions on
state banks in Missouri with reference
to the type of securities they may pur
chase for reserve funds, the only excep
tion being that they can not purchase
stocks. However, this department has
repeatedly attempted to advise with ref
erence to the character of securities to
be purchased for secondary reserves.
There is a tendency among bankers in
Missouri to buy the wrong kind of
securities, unlisted, unmarketable real
estate mortgage bonds having no pos
sible market except through the house
originating them, and that is indeed a
very limited market at best and fre

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

anker

quently when most needed no market
at all.”
J. S. Love, superintendent of banks
for the state of Mississippi, writes:
“ The Mississippi law is silent con
cerning the investment of such funds.
The banking department, however, re
quires, or tries to see, that this money,
which we term secondary reserve, be
invested in liquid and readily convert
ible paper or bonds; that the major
portion of it be invested in municipals ;
a small percentage can be invested in
commercial paper; a percentage in
short time, readily marketable bonds.”
R. G-. Dickinson, assistant commis
sioner of banking for the state of
Arkansas, writes: “ The only restric
tions imposed upon a state bank as to
the investments which it may make are
as follows : First, it is prohibited from
investing in the capital stock of other
corporations. Second, the amount of
the securities of any one issuer is lim
ited to twenty-five per cent of the
bank’s capital and certified surplus.
Effective March 18, 1929, this limit
will be further reduced to twenty per
cent of the bank’s capital and sur
plus. ’ ’

Thos. D. Barr, deputy bank commis
sioner for the state of Indiana, writes:
“ The Indiana law makes no restric
tions as to securities which state banks
may purchase for the investment of
their secondary reserve funds.”
Oscar Nelson, auditor of public ac
counts for the state of Illinois, writes:
“ Our law makes no mention of this
matter whatsoever, but the department
has always insisted upon the purchase
of readily marketable bonds for in
vestment purposes by banks.”
H.
L. Grigsby, superintendent of
banks for the state of Tennessee,
writes: “ We have no statutes on this
subject and this department does not
undertake to make an ironclad rule
as to the purchase of securities. We
encourage the idea of an adequate re
serve of this nature, but we reserve
also the right to criticise such invest
ments if they do not come up to the
recognized commercial standards. ’ ’
Roy L. Bone, bank commissioner for
the state of Kansas, writes: “ Section
12 of the Kansas Banking Laws reads
as follows: ‘ Every bank doing busi
ness under this act shall hold and main
tain a reserve consisting of fifteen
per cent of the aggregate amount of
its demand deposits and five per cent
of the aggregate amount of its time
deposits. One-half of said reserve
shall be kept in cash in its vaults, or
in balances with correspondent banks,
none of the stockholders o f which are

Complete Investment
Service
Private telephone and telegraph wires to all im portant
financial markets

Fleidker Am erieban Com patiti
Affiliated w ith T he F letcher A m e r ic a n N a t io n a l Ba n k
Detroit

INDIANAPOLIS

louisvillb

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Kentucky
State Telephone Company
First Mortgage 6 % Gold Bonds
Series “A ”
\

D ated S e p te m b e r 1 , 1 9 2 8

D u e S e p te m b e r 1, 1 9 4 8

Price 99 and Interest
to Yield 6*08%
The Company agrees to pa y interest without deduction fo r any
normal Federal Income Tax up to 2% .
The following information is taken from official sources:

The properties of the Company are located in 9
counties in the well known Blue Grass region
and the rapidly developing coal and industrial
area of Eastern Kentucky, serving a combined
population of 98,000. The Company serves
3,494 stations. The properties are excellently
located for future expansion, and it is the inten
tion of the Company to materially increase the
present number of stations and communities
served.
Hagenah & Dorsey, Independent Engineers,
have valued the physical properties of the Com
pany at a reproduction value new of $699,079,
and after allowance for depreciation a sound
value of $381,308, or 199% and 166% , respec
tively, of this $350,000 issue of bonds, the sole
funded debt of the Company.
Earnings available for interest
audited by Messrs. Haskins &
to $48,708.17, or more than 2.3
mum annual interest charges of

requirements as
Sells, amounted
times the maxi
$21,000.

Management of the Company is in the hands of
executives and engineers who have had many
years of practical experience in the telephone
business.

W e r e c o m m en d th ese b o n d s fo r
in v e s tm e n t a n d sh a ll b e p l e a s e d
to s e n d c ir c u la r s d e s c r i b i n g th e
is su e in d e ta il.

TRUE SECURITIES CO.

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

David O. True,

P re sid en t

231 South La Salle Street
Telephone Central 6556

CHICAGO

January, 1929

anker

stockholders in the depositing hank,
except when approved by the state
bank commissioner, as a primary re
serve; and the other half of said re
serve in lieu of being held in such
cash or balances may be invested in
bonds or other interest-bearing secu
rities or evidences of indebtedness of
the United States government, or in
Kansas municipal bonds, or in Kan
sas municipal warrants, or secured
bonds of private corporations which
have been engaged in business not less
than ten years and which bonds are
secured by property worth more than
twice the amount of such bonds, con
ditioned that such bonds shall have
the approval of the state banking
board, as a secondary reserve : Pro
vided, that no bank shall make new
loans or pay dividends unless at the
time the required reserves are main
tained. ’
‘ ‘ I wish to call your attention to
the last portion of this section of the
law with reference to securing bonds
of private corporations.
“ The banking board, shortly after .
the amendment to this section of the
law became effective, adopted a res
olution disapproving of all industrial
or corporation bonds, for the reason
the legislature failed to provide any
facilities for the investigation of such
bonds ; also because the members of
the banking board did not want to
take the responsibility of passing on
such securities for the banks.”

Planes Fly

3 ,3 0 6 ,2 0 7

Miles

W ithout Accidents
“ National Air Transport planes have
flown 3,306,207 miles without the slight
est injury of any kind to a passenger,
or the loss of a single ounce of mail, or
express, since the beginning of opera
tions, May 12, 1926.” This announce
ment was made recently by Lester D.
Seymour, assistant general manager of
the company.
This tremendous mileage, a distance
equal to more than 132 times around the
earth at the equator, was flown on regu
lar N. A. T. routes, over half of it dur
ing the night, through all kinds of
weather, a remarkable tribute to the
safety and reliability of modern avia
tion.
“ In this flying,” said Mr. Seymour,
“ there was no stunt flying of any nature
whatsoever. Every mile was made over
either our 725 mile Chicago-New York
or our 995 mile Chicago-Dallas regular
routes, carrying hundreds of passengers
and tons of mail and express.
“ Our pilots and ground crews are re
sponsible for this fine record, of which
we are justly proud.”

January, 1929

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T he ‘R ecent Spectacular Stock M arket H as M a d e
T eop le Forget Firmness o f B on d M arket
ITH its gyrating price quota
tions, the spectacular stock
market lias been dazzling the public
so effectively that many have failed to
perceive what firmness lay in the bond
market,” says Halsey, Stuart & Co.,
in its current quarterly bond review
issued recently. It then goes on to
point out several very significant facts
regarding recent activities in both the
stock and bond markets, saying:
“ While stock prices were pyramid
ing, stock yields were, of course, de
clining— and to such an extent that
since January of this year the average
yield of common stocks listed on the
New York Exchange has been actually
less than that of bonds of the same
corporations. Moreover, while opti
mistic stock prices made new stock
financing extraordinarily easy and pop
ular, this very process has tended to
‘ fill in ’ large, new capital equities be
hind the mortgage obligations, and
thus to enhance the security of bonds.
“ A standard public utility was able,
recently, to market a 5% preferred
stock at par. This demonstrates not
only how accessible this supply of cap
ital funds has been, but it shows in
a remarkable way how much junior
money is being placed behind the
bonds in such fields at the present
time. That is why, too, there are bet
ter values in the bond market today,
even at the same rate of interest, than

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

before $1,000,000,000 of new stock is
sues were marketed during the past
five months.”
The most significant as well as the
largest item of financing in the fourth
quarter of 1928 is the government’ s
$500,000,000 December refunding pro
gram, according to the report. This
financing was oversubscribed on a
B/4% interest basis. Commenting on
this, the review says:
“ In this case the rate of interest is
more significant than the volume be
cause it records a drop of ^2% in the
coupon rate for government financing
in the last sixty days. The Treasury’s
October financing came out at 4% %
with the announcement that thereafter
government borrowings would attempt
to follow market trends in interest
rates. From this it now appears that
the Treasury Department recognizes a
definite recession in market interest
rates for time loans. Also, since the
government redeemed some $665,000,000 of bonds due December 15 it is
clear that a net balance of about
$165,000,000 above its new borrowings
was paid to investors in redemption
of these excess bonds. This sum is,
itself, nearly equal to the monthly av
erage of new bond financing in recent
months and should be felt in the mar
ket. ’ ’
Realizing that there is wide interest
in the volume of bond sales during re

fo r you r S E C O N D A R Y

cent months, the review points out
some significant facts, saying:
“ Bond sales on the New York Stock
Exchange were substantially heavier
in volume during November than in
October, and they showed a 25% in
crease over September of this year.
Further indications of renewed inter
est in bond buying is the fact that
the investment market of 1928 to date
appears to have absorbed more bonds
than it did during the corresponding
period in 1927. Although the new
capital bond offerings of the first ten
months in 1928 were less in volume by
$750,000,000 than in 1927, careful es
timates indicate that the market also
absorbed something over $800,000,000
which the banks liquidated from their
reserves during the July-September
stringency period. Individual inves
tors and institutions, without the help
of the bank purchases, therefore, seem
to have bought more bonds this year
by from fifty to a hundred million than
were absorbed last year when the
banks were also buying heavily.
“ Furthermore, according to invest
ment statistics of 600 odd banks which
report weekly to the Federal Reserve
Board, liquidating on the part of these
banks ceased about the first of October,
and since November 1 they have been
buying bonds steadily. This, of course,
indicates that a new demand has re
entered the bond market, which should

R E SE R V E

B a n k in g a u th o ritie s a g re e th a t w e ll c h o sen and care
fu lly diversified b o n d s o ffe r th e ideal m e d iu m fo r the;
in v e stm e n t o f a b a n k ’s s e c o n d a ry reserve.
S u ch b o n d s offer the b e st c o m b in a tio n o f liq u id ity
an d an a d eq u a te rate.

Let Us Send You a List o f Our Current Offerings

507 L O C U S T S T R E E T

ST. L O U IS , M O.

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A. B. Leach & Co., Inc.
Underwriters and Distributors
o f Investment Securities
Government
Municipal
Public Utility
Industrial
Private Wire Connections to Principal Cities

Security Building, St. Louis
CHICAGO

SA N FRANCISCO

N E W YORK

A Complete Banking Service
The Midland Bank offers exceptional facilities for the transaction
of banking business of every description. Together with its
affiliations it operates over 2400 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.
AMERICAN DEPARTMENT : POULTRY, LONDON, E.C.2

M ID L A N D

BANK

LIMITED

HEAD

O F F IC E :

T H R E A D N E E D L E S T R E E T , L O N D O N , E .C .2

$1,000,000

East Coast! Utilities Company
Six Per Cent Convertible Gold Debentures, Series “ A ”
Due November 1 , 1933
These debentures are convertible into Seven Per Cent Cumulative
Preferred Stock
Price 99 and Accrued Interest, to yield over 6.2%

Concession to Banks and Dealers

Write for Descriptive Circular

H.LRUFPERT & COMPANY

MAIN

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

(INCORPORATED)

MEMBERS ST. LOUIS STOCK EXCHANGE

INVESTMENT SECURITIES
4 0 2
1082

PINE

STREET

ST. LOUIS

MAIN 1082

January, 1929
prove a supporting factor to bond
prices.
“ Dividend and interest distributions
during November and December have
been in much larger volume than ever
before. In December alone it is esti
mated that these figures, plus those of
Christmas bonuses and special yearend disbursements, will exceed a bil
lion dollars. ”
Commenting on the various condi
tions in the bond field, the review says:
“ The past five months has been a
period in which prosperity for most in
dustries has coincided with a period
of rising stock prices and thus of easy
stock financing. On this account very
many industrial concerns have taken
advantage of the opportunity to rein
force their capital structures with jun
ior money obtained by the issuance of
preferred and common stocks. How
extensively this has been going on is
indicated by the fact that while the
monthly average of new industrial
financing from January to June shows
49% stock and 51% bonds, from July
to November stocks increased to 82%
of the total with bonds only 18%. To
the thoughtful investor this is convinc
ing evidence that new and substantial
security has been set up behind many
of his industrial bond holdings.
“ The volume of foreign borrowings,
both corporate and governmental, in
the United States since July 1 has av
eraged considerably less than one-half
the amount for the same period last
year. Although some inquiries from
prospective foreign borrowers have
found the present interest rate here
too high and these have concluded, for
the present, to get their capital in
home markets, still the volume of cor
porate borrowings from abroad is con
tinuing to gain on that of government
bond issues. As in other fields, prices
of foreign bonds are lower, and with
steadily improving conditions abroad,
present some real opportunities to in
vestors.
“ Municipal financing has been more
regular and normal in its volume dur
ing the last quarter than has any other
class in the bond market. Three is
sues of premier American municipali
ties, New York, Detroit, and the Chi
cago Sanitary District have provided
the recent market with standard issues
of large volume. In spite of this vol
ume, however, the general market price
level has not been noticeably affected.
Evidence that present long term mu
nicipal bonds are generally regarded
as attractive is indicated by the fact
that long maturities are now selling on
a lower yield basis than are the shorter
term maturities. The general firmness
of the municipal market this fall has
been credited to the fact that institu-

January, 1929

tional buyers and professional inves
tors have continued to invest regularly
in spite of recent flurries in the money
market. The unusual shortage in rail
road and utility bond offerings has
doubtless also contributed to the firm
price situation for municipals.”

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11111111111111111il 111111itit 111......

Chain Store Bond
Convertible into common stock

Arthur C. H iem enz N ow With

over a period o f years

Augustine & Co.
Augustine & Company, St. Louis,
have announced that Arthur C. Hie
menz has become associated with that
company, effective January 1.
Mr. Hiemenz is the son of the late
Henry C. Hiemenz who was a partner
of the firm of Francis, Bro. & Com
pany, St. Louis. Before going with
Augustine & Company, Mr. Hiemenz
was associated with Francis, Bros, for
twenty-one years.

N ew

Officers

details on cRequeft

Bankers

Com pany o f N ew York

George Bh Burr & Company

The directors of the Bankers Com
pany of New York, a recently formed
subsidiary of the Bankers Trust Com
pany, have elected the following offi
cers: J. Howard Eager, E. F. Dunston,
and J. F. Grimm, vice-presidents;
B. P. Leeb, F. M. Hampton and W.
Laud-Brown, assistant vice-presidents.
Mr. Eager, Mr. Dunston and Mr.
Grimm were formerly assistant vicepresidents of the company; Mr. Leeb
was formerly sales manager; Mr.
Hampton, syndicate manager; Mr.
Laud-Brown, sales manager of the
Fifth Avenue branch.

506 O L IV E S T R E E T

St. Louis
NEW YORK

WHOLESALE

CH IC A G O

K A N SA S C IT Y

DALLAS

RETAIL

S A N FRANCISCO

D I S T R I B U T O R S

B o b b y Jones W ith Atlanta O f
fice N ew Y ork Title Firm
Robert T. (Bobby) Jones o f golfing
fame has now become an officer and
director of the Atlanta agency o f the
New York Title and Mortgage Com
pany.
The agency, as the Georgia Title and
Guaranty Company, recently opened
quarters in the Atlanta Trust Company
building. Besides Robert T. Jones, Jr.,
0. M. Fuller, Samuel Nesbit Evins,
E. C. Powers and R. P. Jones will be
officers and directors of the organiza
tion, the purpose of which is to fur
nish title insurance in Atlanta, where
they will issue the policies of the New
York Title and Mortgage Company.
“ Daddy, are you going to get that
new job down at the bank I heard you
talking about?”
“ No, I don’t believe so.”
“ Have you tried throwing yourself
on the floor and kicking, like I d o ? ”

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

Background
A

R E A L E s ta t e L o a n re p u ta tio n e x te n d -

in g back to 184 8 g iv e s the C o d y T r u s t
C o m p a n y an en viable b a c k g ro u n d o f h o n o r
able co n n e ctio n s and u n u su a lly su ccessfu l
a c c o m p lish m e n t.
T h is
exp erien ce, th ese
co n n e ctio n s and th is p roven in te g rity a s
sure y o u profitable service.

CODY TRUST COM PANY
105 South La Salle Street

C orn er o f M o n r o e

Telephone, Randolph 660 0
F ir SI M o r t g a g e R e a l E sta te B o n d s

Chicago

id - C o n t i n e n t

anker

January, 1929

St. Louis Broker Admitted to
N ew York Stock Exchange

Investment Records
for the Bank’sCustomers
W e p u b lis h a b la n k fo r m , f o r k e e p in g
r e c o r d s o f in v e s t m e n ts , th a t is all o n
o n e s h e e t. It is u n u s u a lly c o m p le t e a n d
p r a c tic a l, y e t v e r y s im p le t o u se. I f a n y
b a n k w o u l d lik e a n u m b e r o f th e s e fo r
d is t r ib u t io n t o in v e s t o r c u s to m e r s , w e
sh all

g la d

fu r n is h

th e m

upon

re q u e s t.

o a g l a n d

A llum & (b.

IN C O R PO RA TE D

14 S. La Salle St
C H IC A G O

34 Pine St
N E W YORK

A SHORT TIME INVESTMENT
FOR BANKS
C o m m o n w e a lth T e le p h o n e C o m p a n y
C ollateral 5 </0 N o te s
D u e S e p te m b e r 1 , 1 9 2 9

P r ic e 9 9

G. W . THOM PSON & CO.
208 South La Salle Street

Chicago, Illinois

M E R V Y N J. W A R R E N , St. Louis Representative
506 Olive Street

not only yield a more liberal return than bonds but are free from
Federal Normal Income T a x — and are free from all Federal Income
T a x when held by an individual whose income, after all deductions,
does not exceed $10,000.
A considerably greater income can often be secured by including in
your list of investments a substantial proportion of good preferred
stocks.

Specific Recommendations Submitted Upon Request

Elliott R. Couden Syndicate
ST. LOUIS, MISSOURI
1602-1603 Landreth Bldg.
Phone Garfield 3993.

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

Millard A. Waldheim, a member of
Waldheim-Platt & Co., investment
brokers, St. Louis, has been admitted
to membership in the New York Stock
Exchange.
The admission followed the purchase
on November 22 of a seat in the Stock
Exchange for $480,000 by WaldheimPlatt & Co., Inc., of which firm Mr.
Waldheim was vice-president. The
firm will be dissolved as a corporation
and become a partnership, it has been
announced, as only partnerships can
hold seats. The price paid was $115,000 less than the most recent price of
$595,000.
The firm, which is engaged prima
rily in the bond business, will not
change its policies, members said, but
the seat was purchased to enable it to
give a broader service to its clients.
The partners of the firm are Waldheim,
Edward G. Platt and Oliver G. Henry.
The corporation was formed October
1, 1924.
The purchase of the seat by the com
pany gives St. Louis eleven members
of the New York Stock Exchange.
The last purchase by a St. Louisan was
by Oliver J. Anderson, investment
broker, about two years ago, when the
price was about half of the most re
cent figure. Predictions have been
made that the price will reach $1,000,000 in the next year or two years.

Brisbane Advocates Rate
Equality for N ew Orleans
The strength of the position of the
Board of Commissioners of the Port
of New Orleans in opposing the re
cently announced differential in favor
of New York on jute imports, and a
strong evidence of the sentiment of the
country as a whole on the question of
preferences accorded the northern har
bor, are indicated tersely in a recent
editorial by Arthur Brisbane. Says
Mr. Brisbane:
“ Shipping Board handicaps New
Orleans by a differential of sixty cents
per ton on importation of burlap from
India. New York harbor gets the
benefit of the differential.
“ Uncle Sam should treat all his
children alike. Why handicap Louis
iana because the great harbor of New
Orleans happens to be some miles West
of New York?
“ Has the Supreme Court of the
United States had a chance to pass
on that question?”
Just praise is only a debt, but flat
tery is a present.—Johnson.

January, 1929

id - C o n t i n e n t

W orld’s Largest Capital
The combined capital structure of
the National City Bank and affiliated
companies, New York, will be $311,000,000 after the stockholders approve
its newest authorized stock issue on
January 8. This is the largest capi
tal stock of any bank in the world.
In point of deposits and resources
it still ranks below England’s three
great banking houses, Midland, Lloyds
and Barclays, according to most re
cent statements available, but its cap
ital structure of $100,000,000 paid in
stock and $100,000,000 surplus is at
least $50,000,000 greater than the com
bined capital assets of these great
British institutions, and greater, also,
than the capital and surplus of the
New York Federal Reserve Bank.
The National City Bank’s newest
stock increase is being accomplished by
a split-up of shares into $20 par value
stock.
In the matter of deposits, Britain’s
three great banks range in the neigh
borhood of $1,800,000,000, with this
figure considerably topping the Na
tional City’s depository total of $1,102,426,000, on last October 3.
Co-incidental with the growth of the
bank has been the expansion of the

ESTABLISHED 1817

D
I

ealers

nvestm en t

nder

th e

London Office:
THREADNEEDLE ST.,
E. C.
OSCAR LINES, General Manager

518 Branches and Agencies, 192 Branches in New South Wales, 55 Branches in Victoria,
51 Branches in Queensland, 7 Branches in South Australia, 65 Branches in Western
Australia, 3 Branches in Tasmania, 1 Branch in Federal Territory, 61 Branches in New
Zealand, _3 Branches in Fiji, 2 Branches in Papua, 2 Branches in Mandated Territory of
New Guinea, 1 Branch in London.

AUSTRALIA

Population, 6,200,000; Area, 2,974,581 square miles; Sheep, 103,600,000; Cattle, 13,300,000;
Horses, 2,250,000; Imports, $824,000,000; Exports, $724,400,000.

Annual Value of Australia’s Products

Agriculture, $446,500,000; Pastoral, $566,750,000; Dairying, $236,000,000; Mining, $120,000,000; Manufacturing, $2,001,750,000; Total, $3,371,000,000.
518 Branches and Agencies in all Australian States, New Zealand, Fiji, Papua, Mandated
Territory of New Guinea, and London.
FOREIGN BILLS COLLECTED—Cable remittances made to, and drafts drawn on Foreign
places DIRECT. Circular notes issued. NEGOTIABLE THROUGHOUT THE WORLD.

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

Com pany

u il d in g

in
e c u r it ie s

an ag em en t

MRS. ORA M. FERGUSON
F

orm erly

of t h e

s s is t a n t

ond

eynolds

L ouisville, K entucky
D ecember 12, 1928

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

anager

epartm ent

and

Head Office:
GEORGE ST., SYDNEY
New South Wales

$103,250,000
Aggregate Assets
30th Sept., 1927 $438,905,640

IN C O R P O R A T E D

Starks B

A man who feels that his religion
is a slavery has not begun to compre
hend the real nature of religion.— Titcomb.

Paid-Up Capital.. .$ 37,500,000
Reserve Fund....... 28,250,000
Reserve Liability
of Proprietors... 37,500,000

o f Offices o f

234

whom are concentrated in New York
and the metropolitan branches of the
city, while the remainder are located
in strategic banking locations all over
the commercial world. The Wall
Street office employs 3,288 persons.

BANK OF NEW SOUTH W ALES, AU STRALIA

Announcing the Opening

and

anker

National City Company, securities
holding subsidiary of the National
City Bank, from its creation as a
$10,000,000 concern by a stock divi
dend in 1911, to its projected 1929 rise
of $50,000,000 capital and $50,000,000
surplus, plus substantial undivided
profits.
Today the National City Bank and
the National City Company is an or
ganization of 10,094 people, 5,095 of

National City Bank to H ave

Fer g u so n

o m pan y

T elephone
C ity 547

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

anker

A L O N G L A SALLE STREET
By Wm. H. Maas, Chicago, Vice-President, The Mid-Continent Banker
Happy New Year and best wishes
to friends, readers and advertisers
everywhere!
With this issue of the Mid-Continent
Banker, the publication enters its 25th
year of existence. It is but human to
glory in triumph and while we are
justly proud of the splendid growth
of the magazine, we realize that we
are under obligation to our readers
and advertisers for their hearty co
operation these many years. Many
and varied changes have taken place
in the financial fabric of the country

UNDERWRITERS

and

since the first issue of the magazine.
The Federal Reserve System is one of
the outstanding changes since that
time. Financial advertising likewise
has played a great part in the success
of numerous bankers. However, we
believe that the most important change
that has come about in the past quar
ter century is the new humanized per
sonnel among bank executives. They
are more accessible, more friendly and
even play golf with their competitors.
All of this bespeaks a better day for
the American banker.

DISTRIBUTORS

CORPORATION SECURITIES

OR many years Brokaw and Company has
specialized in Packers, Equipment Trust,
Pacific Coast and Canadian Securities.

With representatives throughout the MiddleWest and direct wire connections to the larger
Eastern centers, we are able to render a compre
hensive investment service to Banks, Bankers,
Corporations and Individuals.

M a n a g er o f T ra d in g S e r v ic e D e p a r tm e n t

T H O M AS F. FORD

BROKAW
AN D

COM PANY

105 South La Salle Street, Chicago

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

January, 1929
Unusual interest is attached to the
announcement of the appointment o f
James R. Leavell as executive vicepresident of the Continental National
Company, the investment organization
affiliated with the Continental Na
tional Bank and Trust Company. He
is vice-president of the bank and will
retain that position.
“ Jimmy” Leavell came to Chicago
in 1920 from St. Louis where he had
been vice-president of the First Na
tional Bank. He is one of the out
standing bankers of the present day
and has many friends in the southern
states, as well as the Middle West.
He married Miss Lorna Doone Carr,
after whose family Carr Street and
Carr Park of St. Louis were named.
The first thing a banker thinks about
when he is asked to make a loan, is
the moral risk involved. Does the bor
rower pay his debts promptly? Has
he a good record? Has he a reputa
tion for honesty? Has he ever been
involved in shady deals? All of these
things flash through the banker’s mind
according to E. S. Clark, assistant
cashier of the Union Trust Company
o f Chicago.
Frank F. Winans, well-known in
vestment banker, has been elected
president of the Chicago Association
of Commerce, succeeding Wm. R.
Dawes, who was recently elected pres
ident of the Mississippi Valley Asso
ciation. Mr. Winans is vice-president
of the National City Company. James
B. Forgan, Jr., of the First National
Bank, was elected general secretary
and Harold E. Foreman, of the Fore
man National Bank, was elected gen
eral treasurer of the association.
“ Fickle money” and not the socalled “ boot-leg loans” is the proper
descriptive term for the privately ar
ranged loans that are causing concern
in bank circles in the opinion of Eu
gene M. Stephens, president of the
Continental Illinois Bank and Trust
Company. He takes the position that
there is nothing wrong with short
term private loans from the viewpoint
of the lender but that the borrower
had better exercise some forethought
as to; the renewal of such loans if con
ditions should change.
The cornerstone of the new Foreman
National Bank Building, Chicago, was
laid in the afternoon of December 12th
during a ceremony attended by prom
inent bankers and city officials.
Mrs. Edwin G. Foreman, Sr., mother
of the president, and two vice-presi
dents of the bank, attended to the ac
tual laying of the stone. With trowels

January, 1929

of cement she fastened the stone to the
structure.
A sealed leaden box, containing ar
ticles which the bank officials believe
will interest future generations, was
enclosed in the stone. Among the ar
ticles were pictures of the city’s sky
line, copies of fashion magazines, cop
ies of the daily newspapers, airmail
schedules, pictures and stories of Col.
Charles A. Lindbergh, new coins and
current postage stamps.
Harold E. Foreman, president of
the bank, assisted his mother in plac
ing the box within the stone. Among
those taking part in the ceremony were
Edwin G. Foreman, Jr., Alfred K.
Foreman, Gerhard Foreman, all vicepresidents of the bank.
Illinois bankers in every section of
the state who recall the work of John
L. Schlener while in the Protective De
partment of the Illinois Bankers As
sociation several years ago, will re
joice in the progress which he has been
making since entering the bond busi
ness. Several years ago on leaving the
association work, John established
himself with the well known security
house of P. W. Chapman & Co, Inc.
By way of closing his third year in
the bond business John built a new
home for his family at Elmhurst, Il
linois. Congratulations, John.

Japan

Desires

Cooperation

W ith America and England
Burnett Walker, vice-president of
the Guaranty Trust Company and
Guaranty Company of New York, re
turned to his office November 13 after
a two weeks visit in Japan where he
went to confer with the staff which
the Guaranty now maintains in Japan
and with the Japanese interests with
whom the Guaranty is closely asso
ciated.
Mr. Walker said that one of the
chief purposes of his trip was in con
nection with the Japan Electric Bond
and Share Company. This company
was organized in Japan two years ago
by American, English and Japanese in
terests. Executive officers were not
elected at that time, as it was con
sidered advisable, for local reasons,
to defer active operations. The com
pany has now elected Sir Kengo Mori,
K.B.E., chairman of its board of di
rectors, Y. Matsunaga, president, and
Henry A. Chapman, managing direc
tor.
The American interests associated
with the Japan Electric Bond and
Share Company, besides the Guaranty,
are the International General Electric
Company, and the Electric Bond and
Share Company through its foreign

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

id - C o n t i n e n t

anker

subsidiary, the American and Foreign
Power Co.
Mr. Walker said there was good rea
son for being gratified by developments
in Japan. The attitude toward Amer
icans, he said, is cordial. The forma
tion of Japan Electric Bond and Share
Company Mr. Walker pointed out, il
lustrates the desire on the part of
powerful Japanese interests to coop
erate with the American and English
on the basis of partnership with them
selves. This company was organized,
in part, to own and operate electrical
properties, not merely to provide sen
ior money, which has been the chief
participation of American and English
capital heretofore.
Somewhat contrary to the situation
two years ago, when Mr. Walker was

67
last in Japan, the leading bankers and
industrialists are now conservatively
optimistic and confident, though they
fully recognize that among other steps
necessary for a full measure of Japa
nese prosperity a satisfactory settle
ment of their trade situation in China
and restoration of free specie payment
are needed. There was considerable
optimism as to the Chinese trade.
Bankers and business men in Japan
desire stability in China, and above
all, peaceful relations. While leading
Japanese bankers and business men
agree that the gold embargo should be
lifted, the precise date has not yet been
settled.
Grant but memory to us, and we can
lose nothing by death.— Whittier.

68
ff

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

anker

Economic Briefs o f Latin oAmerica
Published by Am es, Emerich & Co.

HE r e c e n t good-will trip of
President-Elect Hoover to the
countries of Latin America is focusing
public attention on the ever-increasing
intimacy of the economic, political and
cultural relations between the United
States and these countries. The latest
data to appear on these countries has
just been published by Ames, Emerich
& Co., investment bankers, under the
title ‘ ‘ Economic Briefs of Latin
America. ’ ’ In this book is discussed
in a, concise but comprehensive fashion,
the economic development of the Latin
American nations during recent years.
In opening their discussion of this

region to the south of us, the bankers
say, “ There can be no doubt about the
increasing commercial relations which
exist between the United States and
Latin American countries as compared
with a few years ago. Government
statistics reveal this clearly. Imports
from Latin America, which averaged
$435,500,000 for the years 1910-14, in
creased to $1,018,900,000 in 1927, a
gain of 133.8 per cent. Latin America,
on the other hand, has been becoming
an increasingly important market for
exports from the United States. The
average amount of these exports for
the years 1910-14 was $332,800,000,

A Good Investment
is a precious thing. T h e G overnm ent esti
mate o f $800,000,000 lost in this country an
nually through w orthless securities em pha
sizes by contrast the fortunate position of
the investor w ho ow ns a good , safe invest
m ent payin g a reasonable incom e.
Since conditions vary, how ever, m any inves
tors find it well w orth-w hile to have their
lists analyzed regularly. A report from our
Investm ent Service D epartm ent checking
the status o f each security by itself and of
the list as a w hole, w ith recom m endations
attached, gives an authoritative guide for
im proving you r holdings.

This report involves no obligation. Investors
are invited to avail themselves of the service.

711 St. Charles St.

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

ST. LOUIS

Central 3000

Members New York Stock Exchange

January, 1929
while in 1927 the amount increased to
$839,800,000, a gain of 152.3 per cent.
“ The financial relations which exist
between the United States and Latin
America are quite as close as are the
commercial relations. The Latin Amer
ican countries have been increasingly
heavy borrowers in the United States.
In 1914 they floated loans in this coun
try to the amount of $13,903,750, while
in 1927 the volume of financing had
increased to $365,269,300, a growth of
2518 per cent.”
This book, written by Dr. Paul M.
Atkins, economist for the bankers, is
a companion volume to “ Economic
Briefs of Europe,” which was pub
lished by them last year.
Economic Stability of the principal
nations of Latin America has increased
9.9 points since 1922, as reflected in
the average stability of all South
American currencies. This stability,
or lack of fluctuation, in foreign ex
change was 95.2 in 1927 as compared
with 91.7 in 1926 and 84.3 in 1922.
This increase, according to Ames,
Emerich & Co., investment bankers,
who have compiled the data, is one of
the clearest indications of South
America’s prosperity.
The book contains copious and up-todate economic and financial data cover
ing the 29 republics and dependencies
to the south, as well as a general dis
cussion on the present economic posi
tion of Latin America as a whole, and
the relations of the United States with
that general territory.
Following is a comparative table
showing the stability of foreign ex
change of eleven of the principal Latin
American countries :
1923 1925 1927
Country
96.3
90.1
Argentina ........ . . . 80.7
94.2
88.9
Bolivia ............ . . . 76.3
95.9
66.5
Brazil ............. .. . 72.5
97.2
84.6
Chile ............... . . . 77.0
98.9
97.8
Colombia ........ . . . 89.5
99.8
99.8
Cuba ............... . . . 99.7
89.2
76.7
Ecuador .......... . . . 81.5
95.3
97.2
Mexico ........... . . . 98.1
90.0
90.6
Peru ............... . . . 92.8
95.2
99.8
Uruguay .......... . . . 82.8
95.5
97.4
Venezuela ........ .. . 94.2
95.2
89.4
. . . 85.9
Average
“ It is particularly satisfying,” say
the bankers in this volume, “ to note
the steady progress in exchange sta
bility which has been made by these
countries in recent years, for it shows
that they are becoming more steady
and dependable elements in the eco
nomic structure of the world, that they
are rapidly recovering from the post
war business and financial depression,
and that they are reaching the point
where extensive amounts of foreign

January, 1929
capital can. be invested there with
safety and profit, bearing in mind that
there are marked individual differ
ences existing among them. Latin
America is still in the formative stage
from the economic standpoint, but
there appears to be no question that
many of the countries will now expe
rience an economic development such
as came to the United States a genera
tion or two ago.”

St. Louis Bank O ne o f First
to Use Airplane Service
The National Bank of Commerce in
St. Louis extended air greetings to a
number of banks and business firms
in Indiana, Tennessee and Georgia on
the initial trip of the new Interstate
Air Line that connects St. Louis with
Atlanta. The new route goes east
from St. Louis to Evansville and from
there dips south and southeast to At
lanta, touching Nashville and Chatta
nooga en route.
The first mail, which left St. Louis
on Saturday morning, December 1, was
not distributed at most places until
the following Monday, but bankers and
business men are generally agreed
that the new line will prove a valu
able factor in bringing Atlanta and in
tervening communities much closer to
gether in a business way.
The National Bank of Commerce
in St. Louis was one of the first banks
to make general use of airplane service
in the handling of bank items, and its
officers are on the alert to take advan
tage of new air-lines wherever a saving
of time can be effected. John G. Lons
dale, president of the bank, has made
a close study of aviation and is on a
number of committees of various or
ganizations, which are watching new
air developments.

Growth o f Trust Departments
D ue to Increased Wealth
Our enormously increased wealth as
a result of this country becoming the
money center of the world and the
greatest industrial nation has been re
flected in a greatly augmented personal
and life insurance trust business in
banking institutions throughout the
United States, according to Walter
Tresckow, of the Central Union Trust
Company of New York. It is not pos
sible to estimate the total of personal
and life insurance trusts, Mr. Tresc
kow states, because complete figures
are not available and also because the
different banks and trust companies
keep their books by different methods.
Over and above this, the tremendous
gain in the number of incorporated

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

-C

o n t in e n t

a n k er,

industrial enterprises has swelled the
aggregate of corporate trusts to many
billions of dollars, including those
handled by state banks and trust com
panies as well as by national banks.
In addition to the necessity for safe
guarding properly the enhanced wealth
of the nation, another factor promot
ing the creation of personal trusts has
been the general realization of the
value of experienced banking and
trust company officers in handling the
investment of trust funds and in set
tling estates.
“ In the banking field,” it was
stated by Mr. Tresckow, “ a result of
our appreciation in wealth has been to
increase materially the number of
banks and trust companies having
trust powers so that at present not

far from one-fifth of all the banks and
trust companies in the United States
are acting as trustees in either the
personal or corporate trust branches
or in both.
“ A survey of the situation shows
that in the 26,389 state, national, sav
ings banks, and trust companies in
continental United States, 4,925, or
18%, now have trust powers. As is
natural, the older and wealthier states
where there are large industrial units,
and where numerous large private for
tunes have been built up, are found
the higher percentages of banks so
empowered. ’ ’
All the sobriety which religion needs
or requires is that whreh m al earnest
ness produces.— Beecher.

One poor investment can
easily wipe out the profits
of many good investments.

th o s e b o n d s a n d e v e r y in
t e r e s t c o u p o n w o u ld h a v e
b e e n p a id in fu ll.

W h a t s to ry does y o u r
s a f e t y d e p o s it b o x te ll ?
D o e s it h o ld a n y b o n d s th a t
w ill n e v e r b e p a i d ?
A re
th e r e a n y in t e r e s t c o u p o n s
th a t y o u w ill n e v e r c o lle c t ?

M o rtg a g e
& S e c u r it ie s
S o u th e r n b o n d s a r e s a fe in
v e s tm e n ts , p r o t e c t e d b y se
c u r it y d o u b ly a n d tr e b ly
s u f f ic ie n t t o liq u id a te th e
p r in c ip a l a n d in te r e s t.

Y o u r s a fe t y d e p o s it b o x
co u ld h a v e b e e n in u se f o r
o v e r t w e n t y -f o u r y e a r s ;
m ig h t h a v e h e ld m illio n s o f
d o lla r s in S o u th e r n b o n d s
issu e d b y th is in s titu tio n —
a n d i f it h a d , e v e r y o n e o f

W o n ’t y o u le t us sen d
y o u d e ta ile d d e s c r ip t io n o f
o n e o f th e s e issu e s so th a t
y o u m a y s tu d y its m a n y
d e s ir a b le fe a t u r e s .
W r it e u s f o r C ir c u la r H -l

Twenty-Fourth Year—Never a Loss to a Client

Mortgage 64*
Securities Co.
SN iw Orleans + sSaint Jbouisj)

-C

o n t in e n t

January, 1929

anker

St. Louis Stock Exchange

Listed
Bonds
We

are

prepared

furnish accurate quota
tions, and prompt execu
tions of buying or sell
ing

orders

for

listed

bonds.
The experience acquired
during our fifty years in
the investment field is
also at the disposal of
our clients.

Francis, Bro.
& Co.
Investment Securities

Fourth & Olive Streets
ST. LOUIS
Kennedy Building
T U LSA

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Federal Reserve Bank of St. Louis

Bank Stocks
Boatmen’s Nat’l Bank...................
First National Bank.......................
Lafayette-South Side Bank...........
Nat’l Bank of Commerce...............
State National Bank.....................
Trust Company Stocks
Mercantile Trust ..........................
Mississippi Valley Trust................
St. Louis Union Trust..................
Miscellaneous Stocks
A. S. Aloe Co., Pfd.......................
A. S. Aloe Co., Com.....................
Beck & Corbitt, Pfd.......................
Bentley Chain Stores, Pref...........
Bentley Chain Stores, Com...........
Best Clymer Company...................
Boyd-Welsh Shoe . . ; . ..................
Brown Shoe, Pfd..........................
Brown Shoe, Com........................
Bruce (E. L.), Com.......................
Burkart Mfg., Pref.......................
Burkart Mfg., Com.......................
Century Electric Co.......................
Champion Shoe Mach., Pfd............
Chicago Ry. Equip., Com...............
Chicago Ry. Equip., Pfd................
Coca-Cola Bottling, Sec..................
Consolidated Lead & Zinc, “A” ....
Corno Mills Co.............................
Elder Mfg., “A” ............................
Elder Mfg., Com............................
Emerson Electric, Pfd....................
Ely & Walker Dry Goods, 1st Pfd..
Ely & Walker Dry Goods, 2nd Pfd.
Ely & Walker Dry Goods, Com....
Fred Medart Mfg., Com................
Fulton Iron Works, Pfd................
Fulton Iron Works, Com..........
Globe-Democrat, Pfd.....................
Granite Bi-Metallic .......................
Hamilton-Brown Shoe ..................
Hussmann Refr., Com....................
Huttig S. & D., Com.....................
Hydraulic Press Brick, Pfd...........
Hydraulic Press Brick, Com..........
Independent Packing, Com...........
International Shoe, Pfd................
International Shoe, Com................
Johansen Shoe .............................
Johnson-S. & S. Shoe...................
Koplar Co., Pref..................... ••••
Laclede-Christy Clay Prod., Pfd...
Laclede Gas Light, Pfd..................
Laclede Steel Co............. ..............
Landis Machine, Com....................
Mahoney-Ryan Aircraft ...............
Meletio Sea Food, Com..................
Moloney Electric, “A” ..................
Mo. Portland Cement....................
Marathon Shoe Com.....................
Meyer Blanke...............................
Nat. Candy, 1st Pfd.......................
Nat. Candy, 2nd Pfd.....................
Nat. Candy, Com..........................
Pedigo-Weber Shoe .....................
Pickrel Walnut ...........................
Rice-Stix Dry Goods, 1st Pfd........
Rice-Stix Dry Goods, 2nd Pfd......
Rice-Stix Dry Goods, Com.............
Schoeneman, J., Pfd.....................
Scruggs-V.-B. D. G., 1st Pfd..........
Scruggs-V.-B. D. G., 2nd Pfd........
Scruggs-V.-B. D. G., Com.............
Scullin Steel, Pref........................
Securities Inv., Pfd.......................
Securities Inv., Com.....................
Sedalia Water, Pfd.......................
Sheffield Steel, Com.......................
Sieloff Packing, Com.....................
Skouras Bros., “A” .......................
Southern Acid & Sulphur. Com---Southwestern Bell Tel., Pfd..........
Stix, Baer & Fuller, Com...............
St. Louis Car, Pfd........................
St. Louis Car, Com.......................
St. Louis Public Serv., Pfd. “A” ...
St. Louis Pub. Serv., Com.............
Wagner Electric, Com...................
Wagner Electric, Pfd...................
Wagner Com. Part Paid................
“Wagner Rights” ........................

OFFICIAL QUOTATIONS
Nov. 20 to
Par
Dec. 20
Value
Sale Price
100
100
545
100
174
100
100
100
100
100
100
20
100
No Par
No Par
No Par
No Par
100
100
No Par
No Par
No Par
100
100
25
25
$1.00
No Par
100
100
No Par
100
100
100
25
No Par
100
No Par
100
10
25
No Par
No Par
100
100
No Par
100
No Par
No Par
No Par
No Par
100
100
100
25
5
No Par
No Par
25
25
No Par
100
100
No Par
No Par
No Par
100
100
No Par
100
100
100
25
No Par
100
No Par
100
No Par
No Par
No Par
No Par
100
No Par
100
10
No Par
No Par
100

575
395

Month Range Price
High
Low
192
185
334
345
400
400
184
166
180
180
545
354
475
103
32^
82
47
25%
ny2
39Vs

117
44%
43
is%
9

38%
11

8
17
25
3
110
74

375
45
17%
44

23%

34%

121
10314
7
17
37
9
135
79
33
108
109
88
29
20
70
8
11154
52c
16
20
20
71
3
12
109
72
39
62
52
98
100
320
43
16J4
30
54
4254
52%
1954
10854
96
17
33
2254
105
95
1854
95
78
80
1754
33
10654
36
10 0 5 4

140
139
15

65
1754
52
48
119%
3354
100
24
78
19
121
108
139
10%

Sales
for
Month
104
111
2
657
73

575
395
500

240
105
1305
3454
82
20
629
51
3654
31%
509
1754
660
43
110
120
305
47
1336
45
20
966
432
10
22
130
68
105
24
7
168
18
182
40
4360
12%
19
135
845
80^2
533
3354
55
10854
110
25
90
172
3272
3354
20
50
70
100
10
460
117
20
5625
$1.00
300
2154
563
25
205
2154
108
74
2057
3%
140
1554
417
11154
12212
8054
525
41
2700
6754
3374
5554
63
98
10
100
221
375
365
45
5393
2254
30
30
4016
58
4150
46
120
5454
. 1245
20
10
108%
45
96
4242
19
649
3654
800
24
216
10854
100
100
32760
27
158
98
11
82
398
80
1434
18
3263
39
35
108
2330
39
102
10154
600
68
25
17%
1680
57
15
48
273
12154
533
36
120
101
435
2454
186
81
1455
23
2746
. 150
269
108%
25
139
11857
14

The Mid-Continent Banker is read by more bankers in the
central and southern Mississippi Valley states than any other
banking magazine.

134
107
10

It has been the “personal journal” of

bankers in ten states for more than twenty-four years.

January, 1929

id - C o n t i n e n t

anker

Denmark, $67,955,000; Finland, $75,918,000; France, $400,545,000; Ger
many, $1,152,731,400; Great Britain,
$172,727,000; Greece, $30,970,000; Hol
land, $45,900,000; Hungary, $64,178,000; Italy, $274,308,000; Norway, $193,796,000; Poland, $122,375,000; Sweden,
$55,000,000; Switzerland, $49,000,000;
Jugo-Slavia, $57,172,000. Total, $3,149,799,400.

Germany Leads Foreign Bor
rowers in America
European and South American loans
now outstanding in the American in
vestment markets approximate $4,455,660,400, according to records compiled
by the International Acceptance Bank,
Inc. This total includes all loans out
standing as of November 18, 1928, but
does not represent the total amount of
American capital loaned to Europe and
South America since the war as some
of the original loans have been re
tired or reduced through sinking fund
operations within the past few years.
The amount loaned to European coun
tries, represented by dollar bonds ag
gregates $3,149,799,400, while South
American loans aggregate $1,305,861,000.
The detailed figures covering the bor
rowings of European countries, includ
ing Government, State, Municipal and
corporate borrowings, show that Ger
many, with 87 separate issues, leads
the list with a total of $1,152,731,400,
France is second with a total of $400,545,000 and Italy is third with a total
of $274,308,000/
The borrowings of European coun
tries follow : Austria, $109,966,000;
Belgium, $226,887,000; Bulgaria, $4,500,000; Czechoslovakia, $32,124,000;

Walter R. Queenan N ow W ith
G u y S. Osborne & Co.
An announcement of unusual inter
est in the Chicago financial district
last week by the Guy S. Osborne &
Company revealed the addition to the

staff of this organization of Walter
R. Queenan. He will serve as finan
cial representative on La Salle Street.
Mr. Queenan has been with the firm
of Albert Prank & Company, financial
advertising agency, for the past twelve
years, having joined their organization
April 5, 1916. During the past several
years he has served as space buyer and
account executive. This announcement
of the call to the larger field of endeav
or will be a source of gratification
to his many friends.
The Osborne organization represents
the New York Times, Des Moines Reg
ister-Tribune, St. Louis Globe-Demo
crat, Philadelphia Public Ledger and
New York Post.

We take pleasure in announcing that

MR. ARTHUR C. HIEMENZ
will be associated with this company as
Vice-President, effective January 1, 1929.

AUGUSTINE & CO.
STOCKS AND BONDS
SECURITY BUILDING

St. Louis

W e wish to announce the formation
of the partnership of

Waldheim-Platt

Complete
Investment Service

8C Co.

Members New Y ork Stock Exchange
Members St. Louis Stock Exchange

To continue the Investment Bond busi
ness heretofore conducted by WaldheimPlatt & Co., Inc., and to further serve our
clients and friends through membership in
the New York Stock Exchange.
Merchants-Laclede Building
St. Louis
Telephone Central 8400

Ja m e s G W
E. G.
M .

A .

Co.

a l d h e im

M em ber N . Y . Stock Exchange
B. H e n r y

December 10, 1928.

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

il l s o n

latt

Our nationwide investment wire system en
ables us to offer our Bank clients the best
buying and selling prices on securities in
any recognized market. W e invite you to
make use of this service.

id -C o n t i n e n t

G. H. W ALKER & CO.

January, 1929

anker

FIXED TRUST SHARES
Issued by

BONOS

The Equitable Trust Company
OF N E W Y O R K
T rustee

Government,
Municipal,
Public

Utility,

Railway,
Corporation

Direct private wires to all principal markets
enable us to render prompt and efficient
service in buying and selling listed bonds.

p>ANKERS throughout the country are recognizing the
merits of Fixed Trust Shares and are recommending
them wholeheartedly for investment. Some of the outstand
ing reasons are:
Scientific Diversification—Earning Power of 30 great
American Basic Industries provides generous income. Av
erage yield for past six years over 7 per cent on today’s price.
Marketability—Absolute marketability through trustee of
any number of shares in addition to a national syndicate
market.
Reserve Fund for Stabilizing Dividends—Obviates ulti
mate investor dissatisfaction arising from excessive divi
dends one year and lean the next—a condition unsuited to
the needs of most investors.
W r ite fo r

d e ta ils o f

o u r p la n f o r y o u

to y o u r

Members New York, St. Louis and
Chicago Stock Exchanges

to s e ll th e s e

cu sto m e r s

Knight, Dysart & Gamble
Investment Securities

BROADWAY and LOCUST

St. Louis, Mo.

401 O L IV E ST.

ST. L O U IS

M e m b e r s N e w Y o r k , C h ic a g o , S t . L o u is S to c k E x c h a n g e s

A Complete S ervice
For Our Customers

Insured Bonds
National Distributors of Guar
anteed First Mortgage Real Es
tate Bonds yielding 6 per cent.
These bonds are indorsed by
Surety Companies whose names
appear on the Government A p
proved list.
Bank
invited.

and

Dealer Inquiries

In keeping with the modern
trend, we have recently installed a
comprehensive wire service, en
abling us to furnish fast, accurate
quotations from the more impor
tant markets. W e solicit the op
portunity to execute your orders for
both listed and unlisted securities.

Davis, Smith McAnulty
(INCORPORATED)

Complete Investment Service

H. SM ITH

8i C O .

The Bankers Building
105 West Adams St.

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

CH IC AG O

M ONROE A T FIFTH

Springfield

Illinois

January, 1929

id - C o n t i n e n t

anker

CURRENT QUOTATIONS
On a representative list of H IG H G R A D E

R A IL R O A D ,

P U B L IC

U T I L I T Y , IN D U S T R IA L , C A N A D IA N and F O R E IG N B O N D S
Furnished by CAMP, THORNE & CO., Inc., 29 South La Salle Street, Chicago
Security
Bid
Alabama Pr. Co., Ss, 1951...............101%
Alberta, (Canada), 4%s, 1956....... 94%
Amer. Chain Co., 6s, 1933............. 97%
American Radiator, 4%s, 1947....... 98%
Amer. Roll. Mills Co., 5s, 1948....... 96%
Amer. Smelt. & Refg. Co., 5s, 1947.. 100%
Amer. Sugar Refg. Co., 6s, 1937.... 103%
Amer. Tel. & Tel. 4s, 1929.............. 99%
Amer. Tel. & Tel. Co., 5s, 1960........105%
Amer. Tobacco Co., 4s, 1951.......... 89%
Anaconda Cop. Min. Co., 6s, 1953.. 105%
Appalachian Elec. Pr. Co., 5s, 1956 98%
Appalachian Pr. Co., 5s, 1941..........100%
Argentine, 6s, 1958........................ 99%
Associated Oil Co., 6s, 1935........... 102%
Atch. Top. & S. Fe. Ry., 4%s, 1962. . 97%
Atl. Coast Line R. R., 4s, 1952....... 91%
Australia, 5s, 1955......................... 95%
Austrian, 7s, 1943.......................... 102%
Baden Consol. Mun., 7s, 1951........ 96%
Bald. Loco. Wks., 5s, 1940.............. 106%
B. & O. R. R., 5s, 2000................... 101%
B. & O. R. R., 4%s, 1933............... 98%
Batavian Pet. Co., 4%s, 1942......... 92%
Bavaria, Germany, 6%s, 1945......... 97%
Belgium, 6s, 1955........................... 99%
Bell Tel. Co., Canada, 5s, 1955........101%
Bell Tel. Co., Penn., 5s, 1948........ 104%
Berlin (Germany), 6%s, 1950......... 98%
Berlin E. E. &Und. Rys., 6%s, 1956 92
Beth. Steel Corp., 5s, 1936............. 99%
Birmingham Ry. Lt. & Pr. 4%s, 1954 94%
Birmingham W. Wks., 5s, 1954.... 96%
Brazil, 6%s, 1957........................... 94%
Bremen (Germany), 7s, 1935........... 100%
Brisbane, Australia, 5s, 1957.......... 91%
British Columbia, 4%s, 1951........... 95%
Brooklyn Borough Gas, 5s, 1967.... 102%
Brooklyn Edison, 5s, 1949............. 104
Brooklyn Union Gas, 6s, 1947........ 117%
Buenos Aires, 6%s, 1955.............. 100%
Buenos Aires, Prov., 7s, 1952........ 99%
Buffalo Gen. Elec. Co., 5s, 1939.... 103%
Bush Terminal Bldg., 5s, 1960........ 103%
Butte Electric Pr. Co., 5s, 1951.... 103%
Calif. G. & E. Co., 5s, 1937............. 103%
Calif. Pet. Corp., 5%s, 1938........... 102%
Canada, 4%s, 1936......................... 98%
Canad. Nat’l Ry. Co., 4%s, 1930____99%
Canad. Pacific Rys., 4%s, 1946....... 97%
Carolina Pr. & Lt. Co., 5s, 1956__ 101%
Cent, of Ga. Ry., 6s, 1929............... 99%
Cent, of Ga. Ry., 5s, 1945............. 102%
Cent. 111. Lt. Co., 5s, 1943............. 101
Cent. 111. Pub. Serv., 5s, 1956......... 99%
Cent. New Eng. Ry., 4s, 1961......... 83%
Cent. Pacific Ry., 5s, 1960...............102%
Cent. Pr. &Lt. Co., 5s, 1956............ 96%
C. &. O. Ry. Co., 5s, 1939................ 103%
C. B. & Q. R. R., 4s, 1949.............. 93%
C. C. C. & St. L. R. R., 6s, 1929__ 99%
C. C. C. & St. L. R. R., 5s, 1929____ 99%
C. C. C. & St. L. R. R, 5s, 1963....... 102%
Chgo., Mem. & Gulf R. R., 5s, 1940. 95%
C. Mil. & St. P. Ry. Co., 4s, 1989. . . 85%
C. & Nor. Wes. Ry., 4%s, 2037__ 97%
C. R. I. & P. R. R., 4s, 1934........... 93%
Chgo. Union Stat., 4%s., 1963........ 99%
Chile, 6s, 1960............................... 92%
Chile Mtge. Bank of, 6%s, 1957.... 96%
Cincinn. St. Ry., 5%s, 1952............. 98%
Cities Service Co., 5s, 1966........... 88%
Clev. Union Term., 5s, 1973.............104%
Cologne (Germany), 6%s, 1950.... 98%
Colombia, Rep. of, 6s, 1961............... 88%
Colorado Pr. Co., 5s, 1953................100%
Columbia Gas & Elec., 5s, 1952...... 99
Columbus Ry. Lt. & Pr., 4%s, 1957. 92%
Commonwealth Ed. Co., 4%s, 1956.. 98%
Connecticut Lt. &Pr. Co. 4%s, 1956.100%
Cons. Gas, N. Y., 5%s, 1945..........105%
Consol. Hydro-El. U. Wurt., 7s, 1956 97%
Consumers Pr. Co., 5s, 1952.............102%
Copenhagen (Denmark), 5s, 1957... 94%
Costa Rica, 7s, 1951......................... 94%
Cuba Railroad, 5s, 1952.................. 97%
Cudahy Pack. Co., 5s, 1946.............. 99%
Cumberland Co. Pr. &Lt., 4%s, 1956 94%
Czechoslovak, 8s, 1951...................... 109%

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

Asked
102
95%
97%
98%
97
100%
103%
99%
105%
90
105%
98%
100%
99%
102%
98
92
95%
102%
97
106%
101%
98%
92%
97%
100
101%
105
98%
92%
100
95
96%
94%
100%
91%
96%
102%
104%
117%
101
100
104
103%
103%
103%
102%
98%
99%
98
101%
100
102%
101%
100
84
102%
97
103%
93%
100
99%
102%
96%
86
97%
94
99%
92%
97
98%
89
104%
98%
88%
100%
99%
92%
98%
100%
106
98
102%
95
94%
97%
99%
95
109%

Security
Bid
Danish Con. Mun. Loan, 5%s, 1955 99%
Delaware & Hudson Co., 4s, 1943... 91%
Denmark, 5%s, 1955....................100%
Denmark, King of, 6s, 1942.......... 104%
Denver G. & E. Lt. Co., 5s, 1951... 101%
Det. City Gas Co., 5s, 1950............. 100%
Detroit Edison Co., 5s, 1949..........103%
Dominican Republic, 5%s, 1942.... 98%
Duquesne Lt. Co., 4%s, 1967........ 99%
Dutch East Indies, 6s, 1947.......... 103%
Edison Elec. Ilium., 4%s, 1930...... 99%
Elec. Pr. Corp. (Germany) 6%s 1950 92%
Finland, Rep. of, 6s, 1945............... 94%
Fla. Pr. & Lt. Co., 1st 5s, 1954....... 90%
Ft. Worth Pr. & Lt. Co., 5s, 1931. .. 99%
France, 7s, 1949........................... 106%
General Elec. Co., 3%s, 1942.......... 94%
Gen. Motors Acc. Corp., 5s, 1929... 99%
General Pet. Corp., 5s, 1940........... 100%
Ga. & Alabama Ry., 5s, 1945.......... 88%
Georgia P. Co., 5s, 1967................ 98
Georgia Ry. & El. Co., 5s, 1932....... 99%
German, 7s, 1949......................... 105%
German Cen. Agr. Bk., 7s, 1950.... 97%
German Con. Mun. Loan, 7s, 1947.. 97%
German Ge. Elec. Co., 6%s, 1940... 119%
Goodyear T. & R., 5s, 1957............. 92%
Grand Trunk West. Ry., 6s, 1936...105%
Grt. Nor. Ry. Co., 4%s, 1976.......... 97%
Great Western Pr. Co., 5s, 1946.... 101%
Greek Gov’t, 7s, 1964.................... 98%
Gulf Oil Corp., Pa., 5s, 1947.........100%
Haiti, Republic, 6s, 1952........ ........ 99%
Hamburg, Germany, 6s, 1946.......... 97%
Hocking Valley R. R., 4%s, 1999. . . 99%
Hudson County Gas Co., 5s, 1949.. 103%
Humble Oil & Refg. Co., 5%s, 1932.101%
Hungary, Kingdom, 7%s, 1944.......100%
Hungary Municipal, 7%s, 1945....... 97%
Idaho Power Co., 5s, 1947............. 100%
111. Bell Tel. Co., 5s, 1956..........103%
111. Cent. Ry., 4%s, 1966.............. 99%
111. Pr. & Lt. Co., 5s, 1956............. 94%
111. Steel Co., 4%s, 1940................ 98%
Ind. Mich. Elec. Co., 5s, 1957........100%
Ind. Pr. & Lt. Co., 5s, 1957........... 99%
Inland Steel Co., 4%s, 1978........... 92%
Internat. Paper Co., 5s, 1947.......... 94%
Internat’l Ry. C. A., 6%s, 1947....... 95%
Interstate Pr. Co., 5s, 1957........... 95%
Iowa Pub. Serv. Co., 5s, 1957........ 96%
Italy, 7s, 1951............................... 96%
Japanese Gov’t, 6%s, 1954.............100%
Jones &Laugh. Steel, 5s, 1939....... 104%
K. C. Pr. & Lt. Co., 5s, 1952......... 103%
K. C. Southern Ry. Co., 5s, 1950... 99%
Kansas Elec. Pr. Co., 5s, 1951........ 96
Laclede Gas Lt. Co., 5s, 1934......... 101%
Lehigh Valley R. R., 4%s, 2003.... 98%
Ligg. & Myers Tob. Co., 5s, 1951... 99%
Lorillard Co., 5s, 1951.................. 90%
L. &N. R. R. Co., 4s, 1940............. 95
Louisville G. & E. Co., 5s, 1952...... 103%
Louisville Lighting Co., 5s, 1953.... 102
Lyons, City of, 6s, 1934................ 98%
Maine Cent. R. R., 4%s, 1935........ 94%
Manitoba Power Co., 5%s, 1951.... 99%
Mass. Gas Co., 4%s, 1931............. 98%
Mich. Cent. R. R. Co., 5s, 1931....... 98%
Mid. Steel & Ord. Co., 5s, 1936...... 99
Milwaukee Gas Lt. Co., 4%s, 1967.. 98%
Minnesota Pr. &Lt. Co., 5s, 1955. . .100%
Minn., St. P. & S. S. M. Ry. 4s, 1938 88%
Miss. Riv. Pr. Co., 5s, 1951........... 100%
Mo., Kan. & T. R. R., 4s, 1990....... 84%
Mo. Pac. R. R., 5s, 1977................ 98%
Montana Power Co., 5s, 1943........ 101%
Montevideo (Uruguay), 7s, 1952... 101%
Montreal (Canada), 4%s, 1946...... 96%
Morris & Co., 4%s, 1939............... 87%
Mutual Fuel Gas Co., 5s, 1947.........100%
Narragansett Co., 5s, 1957............. 99%
National Press Bldg., 5%s, 1950.... 98%
National Tube Co., 5s, 1952............103%
Netherlands, 6s, 1954...................... 100%
New Brunswick (Can.), 4%s, 1936.. 98%
New Eng. G. & E. Co., 5s, 1947..., 96%
New Eng. Tel. & Tel. Co., 4%s, 1961 99%
Newfoundland, 5%s, 1942..............101%

Asked
Security
Bid
Asked
99%
N. Orleans Term. Co., 4s, 1953.
. 90% 903%
91% New South Wales, 5s, 1958....
. 92% 93
100%
N. Y. Cent. Lines. 4%s. 2013..
• 99% 99%
104%
•103% 104
102
•
933% 93%
100% N. Y. Tel. Co., 4%s, 1939........
99-5%
•
103% Niagara Falls Pr. Co., 5s, 1932....... 99% 102 %
98% Nor. Ind. G. & E. Co., 5s, 1929...... 99% 99%
99%
Nor. Pac. Ry. Co., 4s, 1997............. 90% 90%
103%
Nor. States Pr. Co., 5s, 1941........ 100%
%
99% Norway, Kingdom of, 5%s, 1965...100% 100
100 %
92% N
City of,
' Turemburg,
'
' 6s,
' 1952
88% 8 8 %
95
Ohio Pr. Co., 5s, 1952...........
100% 100 %
90%
Ohio Riv. Edison Co., 5s, 1951
97% 97%
99%
Ontario, Prov. of, 4%s, 1931..
98% 99
106%
Ontario Power Co., 5s, 1943............._/o
92% 92%
94% Oregon Sht. Line R. R., 4s, 1929__ 98%
99
9S%
Oslo, Norway, 5%s, 1946............... 99% 99%
101
Pacific Coast Pr. Co., 5s, 1940........ 100% 100 %
89
Pacif. Gas & Elec. Co., 5s, 1955__ 102% 103
98%
Pacif. Tel. & Tel. Co., 5s, 1952.......104% 1045%
99% Panama, 5%s, 1953........................102% 102 %
106
Penn. Edison Co., 5s, 1946.............. 100% 101
98
Penn. R. R. Co., 5s, 1964.............. 102% 102 %
97% Penn., Ohio & Det. R. R., 4%s, 1977 96% 96%
120
Penn. Pr. & Lt. Co., 5s, 1953..........102
102 %
92%
Peoples Gas Lt. &Coke Co. 5s, 1947.104% 1045%
105% Pere Marquette Ry., 5s, 1956...........102% 102 %
97%
Peru, 6s, 1960............................... 88% 89
102
Phila. Elec. Co. (Pa.), 4%s, 1967. • 99% 99%
98%
Pillsbury Flour Mills Co., 6s, 1943...103%
103% 103%
100%
Potomac Edison Co., 5s, 1956.
• 98% 98%
100
Pressed Steel Car Co., 5s, 1933
• 96% 97
97%
Prussia, Germany, 6%s, 1951.
■ 95% 953%
99%
Pub. Service Co., Okla., 5s, 1961.... 96% 96%
103%
1095% 109%
Queensland (Australia), 7s, 1941... 109%
101% Republic Iron & Steel, 5s, 1940
.1013% 101%
100%
Rhine-West. Elec. Pr., 7s, 1950
1015% 101%
97%
Rio Grande Do Sul, 7s, 1966. .
. 96% 97
100% Rio de Janeiro, 8s, 1946. ......
.105% 106
103%
Rotterdam, (Holland), 6s, 1964.......103%
.1033% 103%
99%
St. L., Ir. Mt. & So. Ry., 5s, 1931..• 995% 993%
95
St. Paul Gas Lt. Co., 5s, 1944........ ■100% 101%
99
St. Paul Union Stk. Yds. Co. 5s 1946.100%
.100% 1003%
101
Salvador, 8s, 1948.........................110%
.110% 111
99% San Joaquin Lt. & Pr., 5s, 1957__ 101%
101% 101%
92% San Paulo, City, 8s, 1952...............113
113% 113%
95
San Paulo, State, 8s, 1936. . .
.1043% 104%
96
Saskatchewan, Prov., 5s, 1943
100
100%
95% Sauda Falls Co., 5s, 1955....
1003% 101
97
Saxon Pub. Wks., 7s, 1945...
993% 99%
97
Shawinigan Wtr. &Pr. Co., 4%s, 19677 93%
93
94
100%
Shell Union Oil, 5s, 1947......
983% 98%
104%
Sherman Hotel Co., 5%s, 1930
99% 100
104
Siemens & Halske, A. G., 7s, 1936..102%
102% 102%
99% Sinclair Pipe, 5s, 1942.................... 94
94%' 94%
96%
Sixty-one Broadway Bldg. ¡5%s, 1950.101
.101
101%
101%
Solvay Amer. Inv., 5s, 1942..
97% 97%
98% So. Car. & Ga. Ry., 5%s, 1929
993% 99%
100
Southern Calif. Edison Co., 5s, 1951.1011
.101% 101%
91
So. Pac. Ry., 4s, 1929........
99
99%
95% Southern Ry. Co., 4s, 1956. .
875% t>7%
104
Southwest Bell Tel., 5s, 1954..........103% 103%
102%
Stand. Oil Co., N. Y., 4%s, 1951... 97% 97%
99
Stand. Mill. Co., 5s, 1930.
.100% 100%
94% Sun Oil Co., 5%s, 1939...
.101% 101%
100
Swedish Gov’t, 5%s, 1954
.102% 103
98%
Swift & Co., 5s, 1944..................... .102
102
102%
99
Swiss Gov’t, 5%s, 1946..........
.102% 103
99% Texas Pr. & Lt. Co., 5s, 1937..
.100
100%
99
Toronto, Canada, 5s, 1934. . . .
100
100%
100% Union Oil Co., Calif., 5s, 1935
99% 100
88% Union Pac. R. R., 4s, 1947. . . .
94% 94%
100%
U. K. Gt. Br., 5%s, 1937................ 103%
103% 1033%
85
United Steel Wks., 6%s, 1951
90
90%
98% Uruguay, 6s, 1960..........
973% 97%
102
Utah Lt. & Tr. Co., 5s, 1944.
96% 963%
101%
Va. Ry. & Pr. Co., 5s, 1934. . .
100% 100%
97% Wabash Ry., 5s, 1975..........
993% 99%
873% Ward (Montgomery) &Co., 5s,, 1946.101
.1013% 101%
100% West. Penn. Pr. Co., 5s, 1946.
102% 102%
99% Western Electric Co., 5s, 1944
101% 1015%
98% Western Md. Ry., 4s, 1952............. 81
103% Western Pacif. R. R., 5s, 1946........ 98% 81%
983%
100% Western Union Tel. Co., 4%s, 1950. 973% 97%
100
Westhse. Elec. & Mfg. Co., 5s, 1944.102%
102% 103
96%,
Winnipeg (Canada), 4%s, 1946...... 95
95
95%
99% Yadkin River Pr. Co., 5s, 1941.......100%
100% 100%
102% Youngstown Sheet &Tube, 5s, 1978.100%
100% 100%

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January, 1929

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L E G
O fficial P ublication o f flic

Chapter

A M E R IC A N IN S T IT U T E ° f B A C K I N G
VOLUME

JANUARY, 1929

NUM BER;

A. C. RIEDELL, Editor and Executive Secretary, 316-324 Merchants Laclede Bldg. R. N. ARTHUR, President, Missis
sippi Valley Trust Co. MISS M ARGARET S. COONS, Associate Editor, 1st National Bank.
Notices intended for publication should be in the hands o f the Editor the fifteenth of each month. W rite on only one
side o f paper and double space. Chapter Headquarters, 316-324 Merchants Laclede Bldg. CHestnut 9280.
LEG AL TENDER is published to promote good fellowship among Chapter members, to record the activities o f the Chapter
generally, and to maintain the high ideals o f the American Institute o f Banking along educational linos o f endeavor.

Louis E. Walter Resigns
On November 24, Louis E. Walter
tendered his resignation as secretary
of the St. Louis Chapter. His resig
nation followed an offer from an out
side source which gave promise of a
very bright future and immediate ad
ditional remuneration. Although the
board felt that the chapter would suf
fer a distinct loss, it was unable to
compete with the many attractive fea
tures of the new position and regretful
ly accepted his resignation. The board
at its meeting on the 7th day of Decem
ber adopted the following resolution:
Whereas, Louis E. Walter has, dur
ing his tenure of office, as Secretary
of the St. Louis Chapter, American
Institute of Banking, rendered such
efficient service, and
Whereas, he has been highly instru
mental in aiding the Chapter to at
tain the present degree of efficiency in
accomplishing its purpose of organiza
tion,
Be it therefore resolved, that we ac
cept his resignation with extreme re
gret, and that we extend to him, unan
imously, our sincere good wishes for
his future welfare and prosperity.
St. Louis Chapter American Insti
tute of Banking.
President.
Attest :

secretary for 1916 and vice-president
in 1917. During the year 1917-18 he
served as president for the unexpired
term of John V. Keeley who died dur
ing his term of office, and at various
times has been a member of the mem
bership, public affairs, publicity and
educational committees; has attended
conventions at Boston, Minneapolis
and Detroit; served the chapter as as
sociate editor and editor of Legal Ten
der and during the last four years
has been an instructor in various
classes.
Lou Walter was the first chapter
executive secretary, coming to the or
ganization in the fall of 1923 and
practically creating his work. He has
been invaluable to the organization
due to his interest and work in its be
half. Only those who have served the
chapter in the capacity of president
and committee chairman can appre
ciate the amount of time and thought
that he has put into the work. In his
new position he has the best wishes not
only of the board and officers but of
all the members of the Institute.
Through his constant interest in the
organization, A1 Riedell is well known
to the members and his very interest
points to his assured success as the
new chapter secretary. St. Louis
ranks as one of the larger and more
aggressive organizations and with the
experience and enthusiasm of A1 we
expect to continue.

Secretary.
The Board of Governors of St. Louis
Chapter.
A committee appointed to secure a
new secretary after careful considera
tion recommended to the board A. C.
Riedell who has been a member of
the chapter since 1913. It is indeed
fortunate that a man of Mr. Riedell’s
experience and knowledge of chapter
affairs was secured. Having gradu
ated with the standard certificate in
1915, he then became a member of
the board for that year; was elected

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Federal Reserve Bank of St. Louis

Mockler for Executive Council
Whereas, The American Institute of
Banking occupies a position of increas
ing importance in the field of Amer
ican Banking, and
Whereas, great and growing respon
sibilities rest upon its various officers,
and demand of them qualifications of
a high order, and
Whereas, St. Louis Chapter, deeply
conscious of this need for leadership of

ability, has watched one of its mem
bers develop and demonstrate in no
uncertain way, in local and National
Institute affairs, that he possessed the
qualifications necessary for such lead
ership, and feeling confident he will
devote to the National Organization
that energy and facility of accomplish
ment, which has already gained him
widespread recognition, and
Whereas, he has attained the Insti
tute Standard Certificate, has held the
office of first and second vice-presi
dent, as well as the presidency of St.
Louis Chapter, was a member of the
Chapter Debate Team in 1922, a mem
ber of the Board of Governors in 192224, chairman of Chapter Public A f
fairs Committee in 1923, chairman of
the Membership Committee in 1924,
the Educational Committee in 1925, a
member of the National Public A f
fairs Committee in 1926 and has at
tended consecutively the last seven Na
tional Conventions as well as having
rendered numerous other valuable
services to the Chapter and the Insti
tute,
Now, therefore, be it resolved, that
St. Louis Chapter in recognition of his
past services, and with faith in his
ability to handle positions of greater
responsibility, hereby, presents the
name of Colman Mockler as a candi
date for the Executive Council of the
American Institute of Banking, for
election in 1929.
By order of the Board of Governors.
A. C. R iedell ,
Executive Secretary.
R obert

N. A rth ur ,
President.

Campaign Committee.—-Henry Aehle,
Arthur F. Barnes, H. J. Brenner, R.
W. Bugbee, Margaret S. Coons, A. L.
Gordon, Hord Hardin, R. S. Hawes,
W. J. Jones, Robert D. Kerr, Byron W.
Moser, Chairman, H. H. Reinhard,
Fred W. Schulte, W. C. Tompkins,
Mathilde M. Woltjen.

January, 1929

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___ ________

G A L
Colman M ockler for the
Executive Council
W E ’LL PUT HIM OVER
By Alice Davis
Mercantile Trust Co.

At last it has happened. Now the
great emotional enthusiasm of St.
Louis Chapter can be released. Every
member of our A. I. B. can jump in
to the air, click his heels together and
let out a long, lusty yap. St. Louis
Chapter will be looked-up-to, respected.
Some people think a great club like
ours should have a mission, an aim in
life, like doing a good deed every day.
Others believe that every great or
ganization should have one outstand
ing ideal. But better than these:—
better than a great cause, better than
a great ideal, better much—is having
a great candidate.
Ah! glorious, superb, delight. In
this auspicious year 1929, we have a
candidate for the Executive Council
of this great educational organization,
the greatest and the largest of its
kind, in the world.
And what a candidate he is. To
have a candidate is something. To be
able to express our emotions in the
great caucus meetings. To have some
thing to give away at conventions—-a
card, a pencil— any candidate is grand.
But oh my dears, we have such a can
didate.
That friendly smile! That deep, ex
hilarating laugh! And with it all
that reassuring, wonderful poise. On
ly a man trained in the high offices of
the St. Louis A. I. B. could have such
polish. Only a man whose duties lead
him through the mountains and plains,
conversing with correspondents of the
Mercantile Trust Company could be so
human. Yes, human.
H e’s been a banker since 1917. He
came here fresh—he admits it, fresh,
from school. He joined the A. I. B.
in 1920. In 1922 he went to a na
tional convention—now it ’ s a habit.
He never misses. Colman has stirred
multitudes with his oratory on our
Debate Team. He has been president.
He has served on every local commit
tee. Name them. He has also served
on the national committee o f Public
Affairs. Naturally he has developed.
Colman Mockler has developed
depth. A deep understanding of hu
man nature. A crafty method of
evading women, that is so adroit one

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Federal Reserve Bank of St. Louis

T E N D E R

hardly notices it. You don’t find
many men with personality nowadays.
Colman’s a man with possibilities.
Colman’s going to be a big man some
day. H e’s going to be a member of
the Executive Council. And all us
proud and praising St. Louisans are
going to be glad that we distributed
literature for him at a convention in
Tulsa in 1929. Some day when we’re
all old and living on pensions some
body will say “ I worked for Colman
Mockler when he was running for Exe
cutive Council in 1929.”
Oh friends, isn’t it wonderful? Life
is good to us. Life is rich and sweet.
What if we are plodders ? What if
we do live from hand to mouth?
W e’ve got something to live for.
Something to look forward to. We
can go to Tulsa in the warm brilliant
summer and have a grateful part in
electing to the Executive Council—the greatest man the Executive Coun
cil has ever known.

The Minstrel and Dance
We are perhaps in error in designat
ing the entertainment that was given
by the Chapter Glee Club on the eve
ning of December 12 as a minstrel, for
it was a great deal more than
that. It was song recital of rare
beauty, rendered by a group of chor
isters and soloists well trained in their
art. From the opening chorus to the
fall of the final curtain, it was evi
dent that this offering had been per
fected only after long and careful
training by a group possessed of real
talent.
Richard Klein, Anna Mae Grolock,
Emil Bode, Herbert Heil, Helene Hedtkamp, Herbert Grahl, Elliot Beckett,
Frank Parker, and Blase Goelz, all re
vealed in the rendition of their solo
parts, a wealth of talent that should
permit each of them to go far in their
musical careers. In the supporting
cast were a number of others, each en
tirely capable of sustaining a solo part,
and it is to be regretted that we could
not hear all of them in turn. This is
a pleasure that is happily reserved to
us for another occasion. Those of us
who are faithful in our attendance at
chapter functions are well aware that
the members of the Glee Club do not
stint in giving of their wonderful tal
ent.
It need not be feared that, in re
counting the accomplishments of the
cast, we have forgotten the dancing of

Minnie Smith. It is only that, in our
utter inexperience in the reviewing of
an event such as this, we preferred
to take things one at a time. Even
little Willie, experienced as he is in
counting the caramels in his pocket
the while he is reciting his arithmetic,
can not be certain that his double per
formance is perfect in each of its
phases. But we were talking about
Miss Smith—Minnie of the twinkling
toes. She was the personification of
grace in her performance of the Hun
garian Gypsy Dance, and she shakes
a rhythmic tambourine.
The Messrs. Prince, Boniface, and
Bode were all happily cast in their
parts as minstrels, indeed, it was sole
ly through their efforts that the per
formance was given its pleasing nuance
of minstrelsy. “ Some of my closest
friends are Scotch.”
The account of any musical event
sponsored by St. Louis Chapter would
be incomplete, indeed, did it not make
mention of A. Lawton Gordon, vicepresident of our Chapter, and director
of our Glee Club. In the organization
and in the uniformly excellent per
formance of our Glee Club, Mr. Gor
don has always had a prominent part.
In fact, it has been his unselfish effort
and his rare ability that have made
possible our undoubted success in our
musical activities. “ For he’s a jolly
good fellow,” and he is not afraid of a
lot of the hardest kind of work.

Music
By FRANK M. TOTTON
President, American Institute o f Banking

Have you ever experienced the de
light of being sung to sleep by the
lullaby of rippling waves on shore?
What music that is! Have you everpaddled a canoe, either with or with
out your lady love, through the twi
light shadows as a gorgeous full-orbed
moon rose o ’er the dark trees fringing
the lake ? Have you ever heard thei
gentle lap of waves on bow as your
paddle dipped in and out and your
craft glided softly under the over
hanging branches? Have you? Then
you know the music of the lake.
Have you ever sat on the stern of
a transatlantic liner and watched the
churning, foamy wave from the pro
peller dissolve in the bluish green haze
of the distance? Have you ever
leaned over the bow and seen and
heard the swish of the spray as the

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W hen in

ST. L O U IS
J T is generally expected that you are
stoppin g at the H otel Chase— where
those desiring the best in hotel a ccom
m odations make their headquarters.
H otel Chase is ranked am on g the out
standing hotels o f the country.
Its
quiet, unobtrusive service has m ade it
nationally fam ous.

O n you r next trip to St. Louis make
the H otel Chase you r home. 500 large
outside room s— each w ith its ow n bath.

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Federal Reserve Bank of St. Louis

H O TEL CH ASE
Lindell at Forest Park

C. C. BUTLER, ¿Managing Director

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January, 1929
big boat cut through the water?
Have you sat on deck at night mar
veling at the brilliancy of the twin
kling constellations in the firmament
above and then felt yourself soothed
to slumber by the peaceful, balmy
night wind of the open sea ? Have
you been in a storm at sea when the
angry wind roared and lashed the
waves to a fifty-foot height, and as
the boat dipped and bowed and rocked
and rolled, on crest and in trough,
you sensed your own littleness and the
ocean’s might? And out of it all your
ears caught the mighty bass chorus of
whistling wind and crackling lightning
and deafening thunder? Have you
heard this gigantic cantata played
with all the gusto of nature’s full
strength symphony? Have you? Then
you’ve heard the music of the deep.
I love music, whether it be nature’s
in the great out-of-doors or man’s in
the home and concert hall.
But, do you know, the sweetest
music in this grand old world is not
nature’s melody in the tune of wind
and wave, nor the measured beat of
orchestra scores, but it is the exquisite
harmony of a friendly life. What can
compare with the music of a tuneful,
rhythmic, harmonic life? They say
music is a universal language. Yes,
and so it is, but friendly words and
acts sing as sweetly. They are recog
nized by all of whatever tongue or dia
lect. Whenever you see a well or
dered, fruitful, sympathetic life, you
may rest assured that it has attuned
itself, with nice precision, to the forces
within and without.
So, the Institute sings in my heart
the song of friendship. In moments
of discouragement of loneliness, I turn
a secret dial that has a cruising radius
of greater power than any radio set
and I am back again with friendly
folk, cheered by the strains of the
haunting melody of kindly recollec
tions. Each of us is a broadcasting
station of unlimited power. The
music o f the universe sings in us and
through us. It is up to us to keep the
program happy and high class.

W e D o M ore
We note in the current news, that
the Chinese government has issued an
edict commanding all of its citizens
to celebrate January 1 as the begin
ning of the new year. We have never
disputed the right of the Chinese to
have a year that is all their own, but
we are nevertheless inclined to regard
this new step as one of progress. We
have seen that “ store clothes” do not
detract from the well known efficiency
of Wong Lee, in fact, there prevails

January, 1929
a feeling among Americans in general
that the new garb makes for world
peace, in that it is the means of keep
ing W ong’s hands out of his sleeves.
Be that as it may, we will gladly share
our calendar with him.
At this rate, it is entirely possible
that the Russian will wear his shirt in
side his pantaloons and begin again
the raising of wheat instead of some
of the more dubious products that have
lately been his principal items of ex
port.
The Turk, having already shed his
fez, may divest himself of his scimetar,
make his peace with his Armenian
neighbor and rededicate the Bosphorus
as a public highway. We may even
be able to dissuade him from sending
us his annual output of water pipes
and Turkish tobacco.
We, on the other hand, may be per
suaded to speed up our courts of jus
tice, abolish our “ lame duck” Con
gress, our Electoral College, our na
tional committees for the investiga
tion of investigators, and any other
excrescences on the body politic.
Yes, Luella, it is perfectly true that
the foregoing has very little to do with
banking, but it seems to indicate a
growing spirit of progress, and prog
ress has come to be one of the watch
words of our profession. I f we take
no heed of the international “ weather
sock,” how are we to read the trend
o f the times?

Trust Conference to Be H eld
in N ew York
By GURDEN EDWARDS
Director of Publicity, American Bankers
Association

Yew York—the tenth annual mid
winter trust conference under the aus
pices of the Trust Company Division,
American Bankers Association, will be
held in New York City February 13,
14 and 15, at the Commodore Hotel.
Invitations will be sent to more than
five thousand trust companies and
banks doing a trust business, through
out the United States, asking them to
participate in the conference which
will deal with the foremost problems
of settling estates and administering
trusts.
The eighteenth annual banquet of
the trust companies of the United
States will be held the evening of
February 14 at the Commodore Hotel
in New York in conjunction with the
conference.
When labor is employed, labor can
consume; when it is not employed, it
cannot consume.— Webster.

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Federal Reserve Bank of St. Louis

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The New Morrison, when completed, will be the world’s
largest and tallest hotel—45 stories high, with 3,400 rooms

Chicago’s

MORRISON
H O TEL
Corner Madison and Clark Streets
Tallest Hotel in the World, 46 Stories High
Closest in the City to Stores, Offices, Theaters and Railroad

1944 Rooms, $2.50 Up
— all outside, with bath, running ice water, telephone, bed-head lamp, and
Servidor. A housekeeper on every floor. All guests enjoy garage
privileges.
W r i t e o r w ire f o r reserva tion s

TERRACE GARDEN, MORRISON HOTEL

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January, 1929

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Illinois ‘B ank N ew s
OFFICERS ILLINOIS BANKERS ASSOCIATION: Omar H. Wright, president,
Second National Bank, Belvidere, president; Lyon Karr, president, First State
Bank, Wenona, vice-president; William B. Dorris, cashier, First National Bank,
O’Fallon, treasurer; M. A. Graettinger, Chicago, secretary; Olive S. Jennings,
Chicago, assistant secretary.
GROUP CHAIRMEN: 1. C. D. Tedrow, cashier, Citizens National Bank, Princeton;
2. E. L. Parks, president, Bank of Farmington; 3. G. R. Haas, cashier, Ogle
County State Bank, Oregon; 4. Wm. M. Givler, cashier, First National Bank,
Naperville; 5. W. D. Kitchell, cashier, Farmers State Bank, Danvers; 6. J. C.
Brydon, cashier, First National Bank, Martinsville; 7. T. A. Scott, cashier, Scott
State Bank, Bethany; 8. George Dyson, president, Rushville State Bank; 9. Henry
Eversmann, cashier, Effingham State Bank; 10. B. Glenn Gulledge, assistant cashier,
Marion State & Savings Bank, Marion; 11. P. E. Zimmerman, president, Oak
Park Trust & Savings Bank.
GROUP SECRETARIES: 1. Glenn Sheesley, cashier, Farmers National Bank, Viola;
2. John B. Fleming, cashier, Bank of Peoria; 3. F. C. Baker, cashier, Stillman
Valley Bank; 4. Frank W. Reed, president, First National Bank, Lake Forest;
5. J. C. Corbett, president, Commercial National Bank, Chatsworth; 6. J. D.
Morse, cashier, Morse State Bank, Gifford; 7. C. R. Hilll, cashier, First National
Bank, Sullivan; 8. R. R. Wallace, cashier, First National Bank, Hamilton; 9.
Arthur Eidmann, cashier, St. Clair National Bank, Belleville; 10. L. K. McAlpin,
cashier, First National Bank, Metropolis; 11. Wm. F. Graupner, cashier, Des
Plaines State Bank.

Herbert Mohler
Elected President.
Herbert Mohler has been elected
president of the newly organized State
Bank of Moweaqna, which opened for
business January 1. Capital stock of
the new bank is $25,000 and surplus
$ 10 , 000 .

Other officers of the new bank are:
C. A. Stout, vice-president; Paul W.
Neff, formerly assistant cashier of the
State Bank of Cerro Gordo, cashier.
Two Onarga
Banks Consolidate.
The Onarga State Bank and the
Farmers State Bank, both of Onarga,

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Federal Reserve Bank of St. Louis

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M. A. Graettinger
Secretary

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have consolidated under the name of
the former.

Petersburg. This gives Petersburg a
bank with a capital stock of $200,000.

I. N. McBroom
Elected Vice-President.
I. N. McBroom has been elected vicepresident of the First National Bank
at Geneseo. J. H. White was made
a director at the same time.
The elections were made to fill the
vacancies caused by the death of W. J.
McBroom, Sr.

Statement of
Lawrenceville Bank.
The last statement of the Farmers
State Bank of Lawrenceville shows to
tal resources of more than $2,200,000
and deposits of more than $1,800,000.
Capital stock is $125,000,000 and sur
plus and undivided profits are more
than $145,000, making it one of the
honor roll banks of Illinois.
Officers of the bank arc : S. J. Gee,
chairman of the board ; L. G. Gee,
president; G. W. Lackey, G. W. Mul
lins and W. B. Hiteshew, vice-presi-

Two Petersburg
Banks Consolidate.
Announcement has been made of the
merger of the Frackelton State Bank
and the First National Bank, both of

e w Y o rk s’
N ew est flotelA djacent T o CveRy A ctivity
600 Bright S u n lit Rooms.
■Each W ith Ba th , -Ele c tr ic
« ® fAN, Ice W a t e r « «
Single Room X Ba t h $3 —
Doudle Room * Ba th $4 —
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W i r e A t O ur -E x p e n s e

*>F or Reservations ®*

W est

CCADILLy

4 5 ’-* S t . at »'w a y ••• New Xorl.

f.K . t d f l t l t

~ M * N A t iN C

Dm.

January, 1929
dents; S. R. Nigh, cashier; H. A. Seed,
L. S. Bobbitt and Karl A. Glover, as
sistant cashiers.
M. E. Randell
Elected President.
M. E. Randell has been elected pres
ident of the Eirst Trust and Savings
Bank, Augusta, to succeed Sterling P.
Lemmons, who died recently. L. S.
Harrison continues as cashier and
Mrs. Grace Clark as assistant cashier.
New Windsor Bank
Absorbs Ophiem Bank.
The Ophiem State Bank was taken
over December 1 by the Farmers State
Bank of New Windsor. Deposits of
the Ophiem bank totaled $65,000. P.
C. Briggs was president of the bank
and Martin E. Rehn was cashier.
John W. Petrie is president of the
New Windsor bank and Chester A. Ol
son is the cashier.
Elected Federal
Reserve Director.
John C. Martin, vice-president and
cashier of the Salem National Bank,
Salem, has been elected class A di
rector by the members of group three
of the Federal Reserve Bank of St.
Louis. Mr. Martin will serve in this
capacity for three years, beginning
January 1.
Louis Clemens, cashier of the LaRose National Bank, LaRose, has been
elected cashier of the Bank of Naper
ville, Naperville.
The last statement of the First Na
tional Bank at Dwight shows total re
sources of more than $1,400,000.
Leon W. Mitchell, vice-president and
secretary of' the Rock Island Stove
Company, has been elected a director
of the Rock Island Savings Bank,
Rock Island, to fill the vacancy caused
by the death of his father, Phil
Mitchell.
Otto J. Deschauer, a director of the
Berwyn Trust and Savings Bank, Ber
wyn, died recently at his home in that
city.
George C. Williams, formerly a Des
Moines, Iowa banker, has been elected
treasurer of the Chicago Joint Stock
Land Bank.
John Haugan and Maurice H. Karker have been elected directors of the
Citizens State Bank at Glencoe.
The Lake County State Bank of
North Chicago is planning to erect a
new building.
James J. Pesicka, president of the
Depositors State Bank, Chicago, died
December 7 at his home in that city.

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Federal Reserve Bank of St. Louis

H.
State
joint
cials

id - C o n t i n e n t

anker

C. Moore, cashier of the First
Bank, Mounds, recently held a
meeting and dinner of the offi
and stockholders of that bank.

The First National Bank, Second
National Bank, Commercial Trust and
Savings Bank and the American Bank
and Trust Company, all of Danville,
are installing Yeo night depositories.

The First National Bank, Libertyville, is enlarging and remodeling its
building.
Gail Barker has been elected cashier
of the Zeigler State Bank, Zeigler,
succeeding A. M. Carter, who has be
come president of the First National
Bank at Murphysboro.

Edward McNamara, 50, banker of
Plano, died recently at his home in
that city.

Plans are being made for the re
opening of the Illinois Valley Bank,
Griggsville.

Nick Reines, cashier of the Virgil
State Bank, Virgil, died recently at
his home in that city.

The Griggsville National Bank is
moving into new and remodeled quar
ters.

''HIS is the season of the Y ear when your customers start
for Southern California.
----___------- - T„
--------\It you w ill pro1 vid e them w ith
CARDS
Ml cards or letters of
introduction to
this Bank, they
w ill receive spec
ial consideration
at any one of the
5 4 offices and
Branches of the Bank, covering
the entire Los Angeles Metropolitan Area.
Besides complete Banking
facilities, we have unusual
ly well developed arrange
ments, with in fo rm a tio n
desk, maps, literature &c for
making their stay in South
ern California pleasant.

You will find these special intro
duction cards a convenience. A
handy book of them sent on request.
[F C lflR IT Y
V

s a v in g s

t r u st

TSA I V K

Resources over $250,000,000

Los Angeles

You Need Another Bank?
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operations— rich in practical experience gain
ed through nearly a hundred years o f service
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service notably able and sincerely accommo
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T H E

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Shawmut -Bank
40 Water Street, BOSTON, MASS.

Chicago Building Conditions
for N ovem ber
A campaign to re-educate the prop
erty owning public as to the advan
tages of winter construction is urged
by the Cody Trust Company in its
month-end review of Chicago building
conditions for November. The indi
cated permit total for the month, based
on permits filed to November 28th, was
$19,000,000—the lowest figure for the
month in the last five years.
“ In 1923 and 1924,” the review
points out, “ there was a determined
nationwide movement to end the sea-

id -C o n t i n e n t

anker

sonal winter slump in the building in
dustry. The New York building con
gress in particular made an intensive
investigation of the subject and found
that while the additional equipment
necessary for work on a large build
ing during the winter months ran
about 5 per cent of the cost of the
job, this was more than off-set by the
ability to obtain more efficient me
chanics, the somewhat lower cost of
materials during the winter months,
and the absence of any necessity for
overtime and bonuses to mechanics.
11Despite the general publicity given
these advantages at the time, the ratio

Your Bank
and the
Coming Year
Each new year brings many
changes; some planned; some
the natural results of growth.
Each year brings to us addi
tional numbers of

banks at

tracted by the painstaking serv
ice rendered to all correspond
ents.

m p
Your business is invited.

THE NORTHERN
TRUST COMPANY
C H IC A G O
IN THE HEART OF THE
FINANCIAL DISTRICT
Northwest Corner LaSalle and Monroe Streets

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Federal Reserve Bank of St. Louis

January, 1929
of building permit totals in Chicago’s
fourth quarter, compared to the entire
year, has changed but little.
“ Figures for the final quarter of
this year are still incomplete and there
fore must be estimated. The indicated
total for October and November is
$47,000,000. Due to the fact that the
merchandise mart will probably be
taken out next month, a good showing
seems assured. If the permits be es
timated at $30,000,000— a figure ahead
of the permits for the like month of
the last three years, a total of $77,000,000 is indicated, Avhile the yearly
total will be in the neighborhood of
$325,000,000.”
Dealing with conditions during No
vember, the review says : ‘ ‘ Permits
during the first twenty-seven days of
the month totaled $17,035,900, indi
cating a monthly figure of approxi
mately $19,000,000, providing that no
exceptionally large permit is filed dur
ing the two remaining working days.
This compares with the totals of pre
vious Novembers as follows:
1923,
$27,137,000; 1924, $29,265,000; 1925,
$33,145,400; 1926, $27,269,000; 1927,
$27,454,000. ’ ’

Chicago Bank Announces
Three N ew Vice-Presidents
The directors of the Reliance Bank
and Trust Company, Chicago, have an
nounced the appointment of three new
vice-presidents. They are: Walter S.
Corbly, formerly bank examiner for
the Chicago Clearing House Associa
tion; A. C. Cremerius and Martin T.
O ’Brian.
Mr. Corbly has been connected with
the Chicago Clearing House Associa
tion for more than twenty years and
since 1924 has been one of its chief
examiners. He is prominent in ath
letics, specializing in basketball. Be
sides his activity in Masonic circles, he
is a member of the Colonial Club of
Oak Park and the Glen Oak Country
Club.
Mr. Cremerius started his banking
career with the old Reliance State
Bank in 1918. He was made secretary
in 1924 and will retain that position
in addition to being a vice-president.
He is a graduate of the De Paul Uni
versity Law School and a member of
the Chicago Bar Association, Riverside
Golf Club, Columbian Country Club,
Phi Alpha Delta law fraternity, De
Soto council, and the La Salle General
Assembly of the Knights of Columbus.
Mr. O ’Brian has been manager of
the real estate loan department of the
bank since 1924, and he will continue
with these duties. He is a graduate
of Northwestern University School of
Commerce.

January, 1929

Illinois

Bank

Issues

"First

National Bank M essenger”
The First National Bank, Wilmette,
Illinois, issued on December 15 its
first issue of house organ, the “ First
National Bank Messenger.” On the
same day the bank held its formal
opening of its new bank building at
1150 Wilmette Avenue.
The “ First National Bank Messen
ger” contains a very interesting his
tory of the First National, a story of
a contest being held in connection with
the opening of the bank and a short ar
ticle on cultivating thrift.
Officers of the bank are : Edwin B.
Knudtson, president ; C. D. Masters,
vice-president ; Dan G. Stiles, vicepresident and cashier; N. A. Schwall,
assistant cashier.

W oodruff Is Vice-Chairman
Chicago Bankers Club

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The Whiteside County Bankers As
sociation at a recent meeting decided
to provide a rifle range for the bank
guards of that county.
The seven banks of Henderson Coun
ty have total resources of $2,093,642.74.
Joe Peltier has been elected cashier
of the Iroquois County State Bank at
Cissna Park.
The Villa Park Trust and Savings
Bank, Villa Park, recently moved in
to its new $150,000 bank building.
The Citizens National Bank at Deca
tur has installed a night depository.

National

Park

Bank

Opens

Fourth U p-Tow n Branch
The National Park Bank of New
York opened its fourth up-town Man
hattan branch in Madison Square on
December third. The new office is lo
cated at the corner of Madison Avenue
and 26th Street in the recently com
pleted building of the New York Life
Insurance Company.
W illie: ‘ ‘ Did Mr. Edison make the
first talking machine, p a ?”
Pa: “ No, my son. God made the
first talking machine, but Edison made
the first one that could be shut off.”

Offering Complete
Facilities to Correspondents

George Woodruff, president of the
National Bank of the Republic, was
elected vice-chairman of the Bankers
Club of Chicago at the annual meeting
of that organization held at the Blackstone Hotel on December 12th. The
Bankers Club is composed of the lead
ing bank officers of Chicago.
Henry A. Haugan, chairman of the
board of the State Bank of Chicago,
died last month in that city.
The Carbondale National Bank, Carbondale, moved into its new building
December 10.
William Clark Estee, 73, for 50 years
an Aurora banker, twelve years as
president of the Merchants National
Bank, died December 3 at his home in
that city.
Andrew Hebei has been elected pres
ident of the Peru National Bank, Peru,
to fill the vacancy caused by the death
of the late Henry Ream. Harry F.
Ream, son of the late president, has
also been elected a director.
H. L. Vaneil has been elected cash
ier of the Farmers Bank at Morrisonville.
Everett Dorothy, assistant cashier
of the State Bank of Burnside, has been
appointed cashier of the State Bank
at Colusa.
Thomas F. Oliver, 71, president of
the Union State Savings Bank at Kewanee, and for 36 years a director of
that institution, died recently at his
home in that city from, a heart attack.
Jacob Jacobson, 69, for the past 18
years president of the Bank of Bishop
Hill, died at his home in that city.

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

The Bank of America, corner
La Salle and Madison Streets,
Chicago, also showing Chica
go Central Aerial Beacon.

Banks desiring to form a connection with a strong,
progressive financial institution in Chicago, are in
vited to avail themselves of our comprehensive cor
respondent facilities.
N ot only are we adequately equipped to meet every
demand of modern banking, but we also endeavor
to establish a friendly, mutually advantageous rela
tionship with each of our many correspondents.

h e

a n

o f

e r i c a

Founded 1855

CH ICAG O - ILLINOIS
Resources over thirty-five million

miimmmmmimiiiiimeimiiiiiiiiimiiiiimiiiimmmiiiiiimii

INDIANA

NOTES

111111111111111111111111111111111111111111111111111111111111111111111111111111111
The Dale State Bank, Dale, has ab
sorbed the Farmers and Merchants
Bank, also of Dale.
The Eaton State Bank and the Farm
ers State Bank, both of Eaton, have
merged with total assets of over $400,000.
Articles of incorporation for the
American State Bank, Ligonier, Noble
County, have been approved. This is
a consolidation of the Citizens Bank
and the Mier State Bank, both of
Ligonier, and it will be capitalized at

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anker

Merger of two of Laporte’s oldest
banks, the First Trust and Savings
Bank and the First National Bank, has
been announced to become effective
January 2. The name of the new bank
will be the First National Bank and
Trust Company and will have a com
bined capital, surplus and undivided
profits of over $700,000.
J. G. Allen, president of the East
Chicago-Indiana Harbor C l e a r i n g
House Association and vice-president
of the Indiana Harbor National Bank,
is dead.
The Bloomfield State Bank, Bloom
field, has moved into new quarters.
Approximately $120,000 was paid to

$100,000.

January, 1929
holders of Christmas Savings Clubs
by the banks o f Wabash.
Leo P. Swoverland, cashier of the
Peoples State Bank, Gary, has been
made a director of that institution.
Frank Dale Thompson, of the
Thompson State Bank at Edinburg, has
been appointed as a member of the
educational committee of the state
bankers association.
The Farmers State Bank and the
Waldron State Bank, both of Waldron,
have merged under the name of the
State Bank of Waldron. Earl Haymond, president of the latter bank,
will be president of the new bank; V.
L. Roberts, cashier of the Waldron
State Bank will be the cashier.
Benjamin Murphy, 66, director of
the Peoples American National Bank,
Princeton, died, at his home in that
city December 6.
The First National Bank of South
Bend recently celebrated its 65th an
niversary.
The Milroy Bank and the First Na
tional Bank, both of Milroy, have been
merged and will be known as the First
National Bank of Milroy.

V V B A N K y /T R tiS T -A N O f,

George A. Bell has been elected pres
ident of the Marion National Bank,
Marion, succeeding the late E. E.
Blackburn.
E. C. Rice, 89, president of the Cam
den State Bank, Camden, died recent
ly at his home in that city.

Banking Detail
detail that must be handled by
X

your bank — any bank— is tremendous.

Constantly situations arise in which a strong,
efficient correspondent bank is indispensable.
Our world-wide facilities make this an ideal
banking connection for you.

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

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Federal Reserve Bank of St. Louis

EXCEED

100

MILLION

The Lincoln National Bank and
Trust Company, Fort Wayne, is build
ing a new twenty-two story bank and
office building. The bank will occupy
the first three floors of the building.
The Sellersburg State Bank, Sellersburg, has been organized with a capiital stock o f $25,000.

Dividends o f St . Louis Bank
Total 1 7 Per Cent for 1 9 2 8

The Foreman National Bank

RESOURCES

The First Trust and Savings Bank
at Hammond paid out over $90,000 to
their 1,800 members of their Christ
mas Savings Club.

DOLLARS

F. O. Watts, chairman of the board
of the First National Bank in St.
Louis, has announced that in addition
to the regular monthly dividend of 1
per cent, payable December 31, 1928,
an extra dividend of 5 per cent or
$500,000.00 was declared, payable to
all stockholders of record at close of
business December 15. This makes
total dividends declared by the First
National Bank in St. Louis for the
year 1928 of $1,700,000.00 or at a rate
of 17 per cent.

January, 1929

W hat Bankers Think o f
^Prospects fo r 1929
(Continued from page 13)

except during the abnormal period
during the World War.
Business men in this part of the
country are entirely too loose. People
are spending too much money and the
bad part of it is that they are bor
rowing most of it. People are abus
ing their credit wonderfully, and
would do it more if we would allow
it. The business outlook for 1929 is
good, but I think business men should
try harder to curtail credit.

Business Conditions O nly Fair

M id-C ontinent B anker

than shipped in, and the marketing of
this livestock will bring in consider
able fresh capital.
Our people are turning more to
dairying each year and we find that
a large percentage of our farm pop
ulation now producing their actual liv
ing from their “ side-lines,” rather
than meeting such expenses from their
regular crops.
Our fall rains were late, hence the
winter wheat, our main crop, was late
in getting a start. However, an open
fall has done much to advance the
planting and we have a normal acre
age and a very satisfactory stand.
There will not be much wheat pasture
which ordinarily is a cheap source of
feed for both the dairymen and owners
of stock cattle.
Generally speaking, retail trade con

ditions have been better than the av
erage. This town is supported wholly
by the agricultural, livestock and mill
ing industries, and in spite of the fact
that more new buildings have been
erected in the past year than in many
years, there is not at this time a vacant
room, or a vacant dwelling in town.

Prospects G ood for Wheat
Farmer in Kansas
By FRED NODURFT
Cashier, The Frederick State Bank,
Frederick, Kan.

In regard to conditions in the wheat
belt and central Kansas, if the
ITooverian age does anything at all
for the wheat farmer, he should be
entering into one of the most pros-

Because o f Poor Crops
By H. C. MOORE
Cashier, First State Bank, Mounds, 111.

The outlook for 1929 is hard to
judge at this time as our farmers are
already buying corn, it being the first
time in history that they have had to
buy corn at this time of the year.
Strawberry beds are in good shape.
The 1928 strawberry crop was almost
a complete failure because of the late
season. Peach trees are in good shape
and prospects for a bumper crop are
good.
Railroad business has improved
about forty per cent during the past
sixty days. Our merchants are get
ting more strict with their credit busi
ness because of rather poor collections.
Banking business has been about nor
mal and our collections and renewals
have been good. Because of the poor
crops deposits are somewhat below nor
mal.
__________

Farmers Had G ood Year in
Central Oklahoma

SHORT

TERM

INVESTM ENTS

FOR

BANKS

shorts term
obligations have-; been pur
chased by more than-; 6,000
banks in the United States.
U R

By B. C. BRIGHAM
Vice-president and cashier, Peoples Na
tional Bank, Kingfisher, Okla.

Kingfisher County harvested a very
good wheat crop this year, and about
two-thirds of this crop sold at a very
satisfactory price. The remaining
third is being held in the hopes of an
advance in the market. This will all
be sold by the first of April.
The cotton crop locally was a little
under average, but the price received
for the crop has enabled the cotton
farmer to care for his obligations and
have something left for himself. The
corn crop was excellent. Some of it
will be milled, but the larger part of
it will be fed to cattle and hogs. Al
though the price of hogs has been far
from satisfactory, most of our stock
hogs are produced by the feeder rather

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Federal Reserve Bank of St. Louis

G eneral Motors
A cceptance Corporation
Executive Office * BRO A D W A Y at 5 7 ™ ST - New York City
Capital, Surplus & Undivided
Profits . $52,156,000

perous periods he has ever known. The
farmers of this territory have just fin
ished paying for a lot of high priced
labor-saving machinery and they should
be able to raise their crops at a mini
mum cost. Most of the proceeds of
the wheat crop will stay with the
farmer and be used to improve his con
dition rather than go for farm power
machinery, which has been a constant
drain on this section during the last
six years.

Conditions H a re Been Poor —
Future M uch Brighter
By C. A. MORRIS
Cashier, The Elberfeld State Bank,
Elberfeld, Ind.
Conditions in our im m ediate vicin ity

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have been far from satisfactory. This
being largely a farming community,
the matter of crops goes far in deter
mining general business conditions.
With crops below the average in 1926
and 1927, climaxed with an almost
complete failure of both wheat and
corn in 1928, the effect has been very
depressing here.
We have one mine in Elberfeld
which, until recently, has been closed
since last February, and this has
added to the general business depres
sion here.
Wheat, of which we now have at
least a normal acreage, is looking fine
and promises to be able to withstand
a reasonably severe winter. This, to
gether with the reopening of the mine,
makes us quite hopeful for 1929.

The average check
pas s e s through
seventeen pairs of
hands.

AN ENTIRELY NEW KIND OF
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T he Todd Company has developed a
new kind of paper — one highly spe
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made upon checks— a new Super-Safety
Check Paper. The continued expansion
in the use of checks, subjecting them to
wider circulation and multiplied han
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for this stronger, more durable, more
lasting check paper.
Today the requirements of an ideal
check paper have become: Foldability.
The new Super-Safety Paper has ex
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handsome checks, but does not spread
laterally. Long life—the

lack of any tendency to
become brittle with age.
The new Super - Safety
Paper has at least seven
times the life of ordinary
check paper. Strength— ■
very long fiber and little

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Federal Reserve Bank of St. Louis

sizing give the new Super-Safety Paper
intrinsic resistance against destruction,
without brittleness or bulk. Low cost—
This fine new paper costs no more than
the m od erately p riced S u p e r-S a fe ty
Paper it supersedes.
The Todd Company has exclusive con
trol of the new Super-Safety Check
Paper. This, the first real check paper,
cannot be duplicated by anyone else in
the world. Nearly two million dollars
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developing this exclusive new paper. The
com plete p rocess o f m a n u factu re is
known only to one man.
Every bank will be interested in this
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January, 1929

Outlook Encouraging in
Southwest Louisiana
By E. N. HAZZARD
Vice-president, Calcasieu National Bank,
Lake Charles, La.

It has been twelve months since I
last wrote about the prospects for the
coming year for you and I am still
in that same happy frame of mind.
Our district has not only actually ex
perienced the progress I thought it
would, but it is continuing on a still
higher plane.
The agricultural situation in this ter
ritory (comprising a district some
thing over 100 miles square) has grad
ually improved, in line with the gen
eral situation throughout the country,
as we find ourselves further away from
the disasters of 1920.
Rice is our largest money crop. The
weather for the harvest was ideal, the
crop having all been saved in good
condition, with a satisfactory normal
yield and quality. While the price is
still too near the cost of production to
allow much margin to the grower, and
is out of proportion with the prices in
industries, yet one by one, our farm
ers are getting from under their heavy
load and are more hopeful of the fu
ture. Our present crop is about fifty
per cent sold and we find that the
price is strengthening, so that better
returns are anticipated for the un
sold portion.
The growing of cotton is becoming
more universal, not as an exclusive,
but as a step in diversification. The
price this season has been quite satis
factory and can show a profit when
grown as a diversified crop. Other
agricultural commodities are being
grown more and more, and the truck
ing and berry industry is increasing
on a more satisfactory footing.
Some small movement in developing
in real estate. For 1929 the outlook is
very encouraging. We anticipate a nor
mal planting of rice, increase in cotton
and a considerable increase in our gen
eral farming, truck and forage crops.
We should not overlook mentioning
the citrus fruit industry which is grow
ing quite rapidly in several of our
southwest Louisiana Parishes. We es
timate that at least 5,000 acres are now
planted to the Satsuma orange, the
successful cultivation of which has
been demonstrated beyond question in
this section.
W h ile we believe that farm in g p ros
perity must begin w ith the individual
farm er, yet the prom ised legislation
w ill have an effect o f building up the
m orale and thus rendering encourage
ment, which should thus result in the
farm ers helping themselves.

January, 1929
The livestock, dairy and creamery
industries are all receiving a great im
petus.
When our port was opened just two
years ago we thought that we had
warehouse facilities to last us for many
years, but during the past year we have
been obliged to enlarge, so that now
our wharfage, sheds and port facilities
have been increased five times orig
inal capacity. During the last three
months of 1928, we have had approxi
mately fifty ocean-going vessels clear
from our docks, which we feel is very
satisfactory, indeed, for an entirely
new port.
Our district has ten or more dis
tinct oil fields, all of which are ex
panding, and development work con
stantly in progress. The money re
ceived in royalties by our local peo
ple is a considerable factor in the gen
eral welfare. Other fields are in pro
cess of immediate exploitation.
A thirty million dollar bond issue
was recently voted by the state for
the building of concrete roads, several
of which will cross or penetrate our
district. Lake Charles is the converg
ing point of three Federal highways.
On October 27th, our own bank
moved into new quarters, representing
a total investment in building and fix
tures of around $500,000.00.
A new ten-story hotel is now under
construction, and will be ready for oc
cupancy about March 1st. Many new
houses are also being built, all of which
places the building trade in splendid
position. Our outlying towns are all
in prosperous condition.
Everything is apparently in readi
ness for the beginning of work by the
government in the widening and deep
ening of the Intracoastal Canal, and
work is expected to start by the first
o f the year.
Taken all in all the general situa
tion in this district is very encourag
ing for the coming year.

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anker

The new entity will operate through
established division branches in San
Francisco and Los Angeles, and will
cover the territory thoroughly between
the Oregon and Mexican borders.
This development has been more
than two years in working to fruition.
In the autumn of 1926 Marco H. Hellman and his associates, merged Hellman Commercial Trust and Savings
Bank, known as The Heilman Bank,
with Merchants National Bank. He
was at that time president of Heilman
Bank, although devoting much time to
the estate of H. W. Heilman of which
he is executor. Control of Merchants
National rested within the family.

This large banking project has de
veloped from the $100,000 Southern
California National Bank. Its poten
tial greatness began materializing in
1899 when Herman W. Heilman be
came president. It progressed rapid
ly and soundly during the years to
1906 when his death closed that chap
ter. Actual consolidation bring the
Heilman family rise in west coast
banking to a great climax.
C. R. Bell who has been closely as
sociated with the Heilmans for many
years, will be active in the newly con
solidated institution.
E. J. Nolan, the president, was for
years prior to this consolidation, at
torney for the Heilmans.

Group Banking
A P P R O X IM A T E L Y
a

90%

o f the

banks in the United States have

deposits

o f less than $ 2 ,5 0 0 ,0 0 0 .

Such banks cannot afford the special
ized personnel to deliver the same
service that large city banks supply.
The customer o f the smaller bank,
however, is entitled to banking ser
vice

par

with

metropolitan

institutions.

A brochure describing the manner in which this
is made possible through the Group Banking
operations o f American Financial Corpora
tion o f TSew York and its affiliated regional
companies, will be sent upon request.

$ 4 0 0 ,0 0 0 ,0 0 0 Bank M erger
Effected on Pacific Coast
Heirs of the late Herman W. Hellman effected recently a consolidation
around properties he established.
Assets exceeding $400,000,000 will
be operated through 145 branches;
and, the deposit totals of $387,000,000
are exceeded by only 10 banks in the
entire nation.
By working out this merger with
United Security Trust and Savings
Bank, Marco H. Heilman and Irving
H. Heilman, sons of the late Los An
geles pioneer banker have brought in
to the new Bank of America in Cal
ifornia, an institution with $151,000,000 in resources.

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

Ne w Y o r k .

Kentucky

Bank

-C

o n t in e n t

January, 1929

anker

The Farmers and Peoples Bank,
Campbellsville, formally opened its
new building December 1.

News

Ill
Wallace J. Williamson has resigned
as president of the First National
Bank, Williamson, after completing
twenty-five years of service in that
position.

Formal opening of the Whitley Na
tional Bank, Corbin, was held recently.

The Union Central Bank, Louisville,
has announced the opening of a real
estate department with Gaylord S. Gil
bert as its head.

James S. Ellington, assistant cash
ier of the Cabel County National Bank,
Huntington, West Virginia, has been
appointed a national bank examiner
for the Fifth Federal Reserve District.

The Farmers and Traders Bank,
Germantown, formerly opened their
new bank building December 1.
George H. Gearhart has been elected
a director of the Guaranty Bank and
Trust Company, Lexington.
Paul Jagielky has been promoted
from teller in the discount department
to manager of branches of the First
National Bank, Louisville, to succeed
the late J. Dudley Winston.
Carl B. Early, active vice-president
of the National Bank of Commerce,
Louisa, has resigned from that posi
tion to take a similar position with
the Capital City Bank, Charleston.
The Citizens Bank of Cumberland,
Harlan County, has been organized
with a capital stock of $28,000.

The Formal opening of the Farmers
and Traders Bank, Germantown, was
held December 1.

Peyton S. Head, for more than thir
ty years president of the Oldham Bank
and Trust Company, died at his home
in LaGrange recently.
The official opening of the new build
ing of the First National Bank, Rus
sell, was held December 12.
The building of the Lothair State
Bank, Lothair, was burned to the
ground December 7. Loss was esti
mated to be approximately $20,000.
Walter H. Girdler has been elected
a director of the Louisville National
Bank and Trust Company, Louisville.
The Bank of Maysville, Maysville,
paid its 176tli consecutive dividend to
its stockholders on January 1.

Illlllllllllllllll.....1111111111111...... 11111111111111111MillIII

LOUISIANA

NOTES

.................. ............... f...... ............................ .
Elected Vice-President
Louisiana Finance Association.
Hall Peyton, assistant cashier of the
Bank of Commerce and Trust Com
pany, Mansfield, and vice-president of
the DeSoto Securities Company, Inc.,
its affiliate, has been elected president
of the Louisiana Finance Association
at the recent annual meeting of that
body.
This association is composed of those
companies which do an automobile and
chattel loan business, and Mr. Pey
ton has for some time been active in
its affairs.
New Orleans Bank
Increases Capital Stock.
Capital stock of the American Bank
and Trust Company, New Orleans,
will be increased to $1,000,000 and
surplus to $500,000, doubling the cap
italization of the bank.
Also, the election of Eben Hardie,
Jr., to the directorate o f the bank has
been announced by John Legler, pres
ident.

L I B E R T Y BANK
AND TRUST
COMPANY

New Orleans
XXXII
Southern Yacht Club

L O U I S V I L L E

R eso u rces S 3 3 ,0 0 0 ,0 0 0 .0 0

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Federal Reserve Bank of St. Louis

New Orleans, bordering on the South
ern shore of Lake Pontchartrain, easily
a c c e s s i b l e by water to the Gul f of
Mexico, is ideally located for pleasure
boating and yachting. The S o u t h e r n
Yacht Club (pictured above) has a mem
bership of 1,500 and a fleet of more than
500 yachts. The Club acts as host to
numerous regattas, including the Lipton
Trophy Races.

Hibernia Bank and Trust Co.
New Orleans, U. S. A.

January, 1929

James S. Bartee, who has been cash
ier of the Exchange National Bank
and Exchange Bank and Trnst Com
pany, both of Shreveport, since 1925,
has been promoted to vice-president
of the Exchange National Bank and
vice-president and trust officer of the
Exchange Bank and Trust Company.

id - C o n t i n e n t

¿ fjn

anker

e n n e s s e e

Nashville is the stragetic center
for your banking business.

August J. Claverie, vice-president of
the St. Bernard Bank and Trust Com
pany, New Orleans, died recently in
Waveland, Mississippi.

In N a sh oille—
The direct routing facilities o f the
American Banks speed the presenta
tion and realization o f your business.

H. H. Hoag, manager of the Jen
nings Branch of the Calcasieu Na
tional Bank, has announced the
starting of work on remodeling o f
the building of the branch bank,
which will cost $25,000.

tjf

The bank where more one-third of all Tennessee \L
Bankers bank is a good bank for your business. J r

eA M E R IG A U B a m k s

F. E. Dolhonde and F. T. Mayer
have been elected to the directorate
of the Amite Bank and Trust Com
pany, Amite City.

N A SM V ILLT AmTo^anyS^
(AFFIL1
ATED)
4 '

American N a tion a l C om pany

F. E. Patenotte, cashier of the Se
curity Bank, Amite City, has been
elected to the directorate of that in
stitution.

Whitney-Central

The total movement of vessels in the
New Orleans Inner Harbor Navigation
Canal for November, 1928, amounted
to 772 craft of all classes, with a ton
nage measurement of 358,148. This
is an increase of 87,948 tons over the
traffic accommodated in the same
month of the previous year.

the Only N A T IO N A L
Bank in N ew O rleans

Adam G-ambel, 79, a director of the
Canal Bank and Trust Company, New
Orleans, died recently at his home in
that city.
Emydge Ory, a director of the Bank
of St. Johns, died recently at his home
in Lions.

N ew Orleans’

Welcomes the Opportunity

O ldest B a n k

customers at the port o f

to serve banks and their
New Orleans

Established 1831

»C A N A L

Ba n k and Trust C o.

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

o f ¿N ew Orleans

id -C o n t i n e n t

January, 1929

anker

The Shreveport office of the Morris
Plan Company, Inc., has been opened
for business, with A. T. Baumgartner
in charge.
Power exhibits itself under two dis
tinct forms— strength and force— each
possessing peculiar qualities, and each
perfect in its own sphere. Strength
is typified by the oak, the rock, the
mountain. Force embodies itself in
the cataract, the tempest, and the
thunderbolt.—Garfield.
IiiiiiiiiiiiiiiiiiiiiiiililPllllllllllllllllliiiiiil(ililiiliilvil1lla|aal||a|1*1

TENNESSEE

NOTES

iiiiiiiiiiiiiiiiiiiiiiiiimmiiiiiiiimiiiiiiiiiiiiiiiiiiiiiiiniiiMliiiiiiii

Commercial
National Bank

Tennessee Farmer
Recommends Cotton.
Jno. M. Jackson, cashier of the'
Brownsville Bank, Brownsville, Ten
nessee, sends us the following letter
which he received in reply to a form
letter sent out in regard to a carload
of cotton seed distributed by his bank:
“ Mr. Jackson I Write this to let
you here frome Me. My Cotton just
true out fine in Wait and lent too.
Just fine evy way I like it fine Just
so fine. Seling Cotton I Reckment it
to all my friends.
S e n c a k C arter .”

Shreveport, La.
Established 1886

C A P IT A L

$1,000,000

SURPLUS A N D U N
D IV ID E D P R O FITS

700,000

OFFIC ERS
R. T. Moore
Chairman of Board
Ben Johnson, President
S. G. Sample, Vice-Pres.
P. C. Willis, Vice-Pres.
Val H. Murrell,
Vice-Pres.-Cashier
R. F. Sebastian, Ass’t Cashier
A. O. Graves, A ss’t Cashier
J. A. Walden, Ass’t Cashier
Tyson Cleary, Ass’t Cashier
J. G. O ’Brien, Trust Officer

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

Statement of
Memphis Bank.
The statement of condition as of
November 24 of the Union and Plant
ers Bank and Trust Company of Mem
phis shows total resources of more
than $32,000,000, loans and discounts
in excess of $18,000,000, deposits over
$27,000,000 and capital stock is listed
at $2,500,000.
Officers of the bank are: Frank
Hayden, president; Gilmer Winston,
John J. Heflin, Edw. C. Teift, Noland
Fontaine, Frank S. Bragg and N. B.
Gentry, vice-presidents; R. H. Matson, cashier; C. T. Denton, secretary.
Maurice
signed as
branch of
pany, has
Knox.

L. Knox, who recently re
cashier of the Bradyville
the Cannon Banking Com
been succeeded by R. P.

The Farmers State Bank, Hunting
don, has increased its capital stock
from $30,000 to $40,000.
A charter has been granted to the
First Trust Company, Smithville.
Application has been made for a
charter by the American Bank and
Trust Company, Watertown.
The Commerce-Union Bank, Nash
ville, has declared an extra stock divi
dend. The shares will be split up on
a five for one basis, with the 5,000
shares now outstanding at $100 a share

Money Earning
and

Money Saving
Bank Equipment
Complete Electrical Bank Protection
Electrical Chime Clock Systems
The Automatic After Hour Depository
The Vault Ventilator
Made by

MASTER BUILDERS
in the factories of

O. B. McCLINTOCK CO.
The Largest and Most Complete
Organization of its Kind in the World

MINNEAPOLIS, MINN.

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FREE SAMPLES
o f our Steel Die
E m bossed Stationery for

BANKS
L ook s far better and
costs no m ore
A postal brings Samples and Prices

oArt £raft Shops C°1525 Olive Street
St. Louis, Mo.

January, 1929

-C

o n t in e n t

being automatically converted into
25,000 shares with a par value of $20
each. Officers of the bank are: A. E.
Potter, president; Edward Potter, Jr.,
vice-president; Joe S. Boyd, vice-pres
ident; Charles E. Lovell, vice-president
and trust officer; George W. Bates,
cashier.

J. W. Randle, president of the Farm
ers and Merchants Bank of Foley, has
been elected managing director of the
Robertsdale State Bank at Robertsdale. Other officers of the bank are:
W. I. Cleverdon, president; William
McIntosh, vice-president; R. G. Pear
son, cashier.

The Manhattan Savings Bank and
Trust Company, Memphis, recently
held its formal opening of its new
banking quarters.

J. J. Johnson, Sr., 76, president of
the Citizens Bank, Geneva, died re
cently at his home in that city. Mr.
Johnson was one of the most promi
nent men of southeast Alabama.

i l i u m 11 ii

............. ............................................................................. i n n m i

MISSISSIPPI

NOTES

l i m n i m u m m i i i .......m i i m m m i i ........i m m i i ....... ...................m i n i

The Calhoun County Bankers Asso
ciation has elected J. M. Chestman,
cashier of the Calhoun County Bank,
president, and M. W. Tindall, cash
ier of the Peoples Bank of Calhoun
City, secretary, of the association.
The First National Bank, the Yazoo
State Bank and the First Savings
Bank, Itta Bena, have consolidated.
Coincidentally with the announce
ment by the First National Bank of
Meridian of the election of A. D. Simp
son, active vice-president of the bank,
to the position of president of the in
stitution, succeeding L. Rotherberg,
resigned, the bank also announces the
election of Lew Carter and F. W.
Whitfield as vice-president and cash
ier respectively. Mr. Carter was for
merly cashier and Mr. Whitfield, as
sistant cashier. E. L. Robins was al
so elected a director.
................................... m m m m m i i ....... m u ............... h i u i u i i i h i i i i i i i i i

ALABAMA

NOTES

Record of
Athens Banks.
The banks of Athens, after being ex
amined, show an unusually good record
for the past year. The Farmers and
Merchants Bank has total assets of
over $1,300,000. The Limestone Coun
ty Bank, which is only one year old,
shows total resources of $280,000.
The Citizens Bank, which has a branch
at Elkmont, has paid an extra divi
dend of 25 per cent to its stockholders.
The Alexander City Bank, Alexander
City, recently moved into its new twostory home. H. Herzfeld is president
of the bank.
The last statement of the Bank of
Ensley, Ensley, shows total resources
of $5,289,449, loans and discounts in
excess of $3,000,000, deposits of more
than $4,500,000, capital $200,000 and
surplus and profits of $307,305. R. E.
Chadwick is president of the bank and
S. C. King is vice-president and cash
ier.

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

anker

The inevitable consequences of pov
erty are dependence.— Johnson.

•ii uiiuiiiimiiiiiii iiii iiiiii im iiiiiii iiiiii iiiim iiii iiiiii im iium ui.

ARKANSAS

NOTES

iiiiu iiiii uiiiiuiiiiuiiiu iiii m ii iiiiii iiiiii iim iiiiii iiiiii iiiiii m m i

The election of C. E. Crossland as
vice-president and cashier and W. A.
McDonnell as a director of the Bank
ers Trust Company of Little Rock has
been announced by F. W. Niemeyer.
H. L. Berg, Leo Berg and J. H.
Meek, bankers of Camden, have pur
chased the controlling interest in the
Camden Bank and Trust Company.
Election of Wilbur P. Gulley, secre
tary and manager of the Pulaski Build
ing and Loan Association, as vice-

This Y ea r W e Celebrate
O ur 60th Birthday
S ixty years ago this m onth, plans were being
w orked out to form the U n ion and Planters
Bank o f M em phis. A s a result, in A ugust,
1869, the U & P succeeded the D e Soto Insur
ance and T rust Com pany, founded in 1858.
W e ’re planning to celebrate our 60th anniver
sary y e a r i n
a very practical
w ay— b y try
in g t o g i v e
even betterthan
u s u a l corre
spondent s e r
vice through out
t h e T ri-S tate
R egion.
Forward ‘with
iMemphis

— Since ’69

U n io n & P la n t e r s
BANK 6c TRUST COMPANY
M E M P H IS, T E N N .

president of the Home Insurance Com
panies and member of the executive
committee of the American Southern
Trust Company, has been announced
by A. B. Banks, president of both in
stitutions.
The eight banks of Little Rock paid
out slightly more than $693,000 in sav
ings clubs during the month of De
cember.
The Exchange National Bank and
the Exchange Trust Company, both of
Little Rock, have combined under the
charter of the national bank. John
M. Davis was president of both insti
tution.

id - C o n t i n e n t

January, 1929

anker

0. P. Cook became cashier of the
Bank of Ola, Ola, on January 1, suc
ceeding Bob Lipsey, who resigned to
accept a position with the First Na
tional Bank at Dardanelle.

State Bank, Prairie Grove, has ac
cepted a position as assistant cashier
of the Mcllroy Bank and Trust Com
pany at Fayetteville, effective January
1.

The Peoples Bank and Trust Com
pany of Morrilton has purchased the
entire assets of the First National
Bank, also of Morrilton. This merger
gives Morrilton a $1,000,000 banking
institution. Officers of the Peoples
Bank and Trust Company are: J. S.
Moose, president; A. J. Stephens,
vice-president; J. C. Neme, secretary;
Fred Spires, cashier.

Judge T. T. Bateman, 70, pioneer
Monroe County Banker, died December
11 at his home in Brinkley. He was a
former president of the Monroe Coun
ty Bank, Brinkley, and at the time
of his death was president of the Mer
chants and Planters Bank, Clarendon.

E. P. Pyeatt, cashier of the Farmers

Plans are under way for the con
solidation of the Exchange National
Bank and the Exchange Trust Com
pany, Little Rock, under the charter of
the National Bank.
W. A. Hicks has resigned as vicepresident of the American Southern
Trust Company, Little Rock, to be
come president of the Peoples Sav
ings Bank and a member of the board
of directors.
V. A. Rogers, cashier of the Bank
of Grand Prairie, Grand Prairie, has
resigned.
Effective January 1, the banks of
Hope are installing a service charge
of 50c a month on all checking ac
counts having an average daily bal
ance of less than $50 during the month.
Arkansas has 59 trust companies
with total resources of over $96,-

000, 000.
During the last year bank deposits
have gained 21^ per cent in Van
Buren.
New officers of the Howard County
Bankers Association are: Joe Keener,
Dierks, chairman; C. G. Hughes, Nash
ville, vice-chairman; Hunter Hughes,
Nashville, secretary; Rudolph Dicken
son, Mineral Springs, treasurer.

F o r m ore than 55 years the M id -S ou th ’s
highest capitalized

and m ost

resourceful

bank has been a strong, safe bank.

Ba n k

OF C o m m e r c e

and t r u s t

Co m p a n y

MEMPHIS

CAPITAL, SURPLUS AND UNDIVIDED PROFITS
$ 5 , 0 0 0 , OOO. OO

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

The Bank of Elkins, Elkins, has
changed cashiers. Ernest Bunch has
succeeded R. C. Bunch, who has gone
to Springdale to enter the automobile
business.

Resources Total M ore
$ .2 7 2 ,0 0 0 ,0 0 0

Than

The resources of the Cleveland Trust
Company, Cleveland, Ohio, according
to the statement as of October 3, total
more than $272,000,000. The bank is
capitalized at $10,000,000 and has total
deposits of approximately $250,000,000.
Harris Creech is president of the
bank, J. W. Woodburn is treasurer,
and E. B. Roberts and H. S. Yenne are
trust officers.
Power is with a good deal of accu
racy measured by purpose.— Parkhurst.

January, 1929

TEXAS

NOTES

The First National Bank, Ballinger,
has opened new banking rooms.
W. B. Sellers, Brownsville, has ac
quired the controlling interest in the
First State Bank, Lyford.
The Luhhock National Bank, Lub
bock, has moved into its new building.
P. H. Manire has been elected a di
rector of the Marshall National Bank,
Marshall, succeeding W. L. Martin, de
ceased.

id - C o n t i n e n t

anker

Thomas Johnson, vice-president and
cashier of the Collin County National
Bank, McKinney, has been elected a
director of the Dallas Joint Stock
Land Bank.
Consolidation of the Mercantile Na
tional Bank and the Mercantile Trust
and Savings Bank, Dallas, with a com
bined capital of $1,250,000 and sur
plus and undivided profits of $640,000
has been announced by officials of the
two organizations.
P. A. Murray, 54, active vice-presi
dent and director of the Victoria Bank
and Trust Company, Victoria, died re
cently at his home in that city.

..........................................................l i m i l i ............ i i i i i i i i i i i i i i i i i i i i i i i i i i i i

O K L A H O M A NOTES
........................................... m m i i i M imi .... .......................

The Exchange National Bank and
the Exchange Trust Company, Tulsa,
has become associated with a group of
National banking interests in the for
mation of an investment trust manage
ment corporation with an initial capi
talization of $20,000,000.
The Farmers and Merchants Bank,
Boley, has absorbed the First National
Bank, also of Boley.
The Farmers State Bank, Greenfield,
has opened for business with a capi
tal of $15,000. W. D. Gualtney is the

J. J. Jordan, a director and assistant
cashier of the Hill County State Bank,
Hillsboro, died recently.
A deal has been closed whereby the
First National Bank, Decatur, pur
chased the City National Bank, also
of Decatur.
The new building of the First State
Bank, Tenaha, has been formally
opened.
The United Savings Association,
Houston, has been chartered with $1,000,000 capital.
The Citizens Industrial Bank, Aus
tin, has been chartered with $25,000
capital.
A $1,000,000 increase in the capital
stock of the Alamo National Bank,
San Antonio, and a $600,000 increase
in the surplus and undivided profits
accounts has been voted by the stock
holders of the bank.
The National Bank of Commerce,
San Antonio, has just completed a
$100,000 remodeling campaign in its
bank building.
J. W. Neal and J. Robert Neal, his
son, have purchased an interest in the
Second National Bank, Houston, and
J. W. Neal lias been made chairman
of the board and J. Robert Neal, vicepresident.

Your
S t. L o u is O f f i c e
C o r r e s p o n d e n t s o f th e
L ib e r ty C e n tr a l T ru st C o m

The Farmers State Bank, Bertram,
recently held a formal opening of its
new bank building.

p a n y e n jo y all the advan

Work has been started on a new
building for the Farmers State Bank,
Center.

. . .w ith o u t the e x p e n s e .

The First National Bank, Sweet
water, has installed a night depository.
Marcus Lane Tansey, cashier of the
First State Bank, Smithville, is dead.
R. L. Thornton, president of the
Mercantile National Bank, Dallas, has
been elected a director of the Jefferson
Bank and Trust Company, also of that
city, to succeed M. G-. Young, resigned.

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

tages o f a St. Louis office

L IB E R T Y CEN TRAL
TRUST C O M P A N Y
Southwest Corner Broadway and Olive r St. Louis

Felix E. Gunter, Pres.
M E M B E R

F E D E R A L

R E S E R V E

S Y S T E M

id -C o n t i n e n t

president; M. R. Northcutt, cashier;
and Mrs. M. R. Northcutt, assistant
cashier.

Shelley has also been elected vice-pres
ident for the ensuing year, and 0. L.
Barlow has been re-elected treasurer.

Colonel Tom Dwyer, dean of the
bankers of Chickasha, retired January
1 from the Chickasha National Bank.
He sold his interests to a group of
Chickasha stockholders headed by Roy
Smith, now cashier of the bank.

Robert Riggs has accepted a position
with the Sallisaw State Bank, Sallisaw.

At the annual election of officers J.
H. Comer, cashier of the Hominy Na
tional Bank, Hominy, was elected pres
ident, succeeding R. F. Mullendore,
who has served in that capacity during
the past year, during which time Mr.
Comer was vice-president. F. H.

was made by the Mosler Safe Com
pany and equipped with a burglar
alarm.

Following the purchasing of an in
terest in the First State Bank, Vian,
by E. A. Estep, C. B. Haddock and
Lewis Brockman, H. H. Moore was
D.
J. Smith, president of the Farm
elected president to succeed H. A. Mc
ers and Merchants State Bank at El
Cauley; Mr. Estep vice-president to
Dorado, has sold his entire interest in
succeed R. B. Carlile; Ross Martin re
the bank to E. M. Francis, president
elected cashier.
of the First National Bank of El Do
rado.
The Waurika National Bank, Waurika, has consolidated with the First
The Security State Bank, Miami,
National Bank of Addington. A. Iv.
has moved into its building which has
Gossom, president of the Addington
been remodeled. The new steel vault
Bank, will be president of the new
bank, which will be located in Adding
ton.

Those who
Summer abroad will Winter

January, 1929

anker

1®IEM M U 1IA

The First National Bank at Bartles
ville, through Frank Phillips, presi
dent, has announced the appointment
of George C. Watson, of New York, as
trust officer of the bank.
The First National Bank and the
Security State Bank, both of Paden,
have been merged. The First Na
tional bought the Security State paper,
fixtures and building.
Work has been started on the re
modeling and redecorating of the First
National Bank, Medford.
...... ....................■■■■■■....................... m i........... ............... ..

KAN SAS

NOTES

................ .............................. Ill............... ,,,,,........ ........ .......

Albert Watkins, assistant cashier of
the Farmers and Merchants Bank, Ox
ford, for the last two years, has been
promoted to the cashiersliip.
Conrad Gabriel has become presi
dent of the First National Bank, Gar
den City.

A new American fancy, this winter siesta in Bermuda . . .
and the 48 hours each way. Enjoyed equally by habitues of
the great ocean liners and those who are getting their first
taste of Transatlantic travel. A sailing every Wednesday
and Saturday on the new 20,000 ton motorship “ Bermuda”
and the famous “ Fort Victoria.”

ROUND TRIP
FARES FROM

$70

Inclusive Rates
on Application

i v k v k s s
CBeMruLcliL J uul
34 Whitehall St.

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

565 Fifth Ave., New York

or any Authorised Agent

W. W. Anderson, cashier of the
State Bank of Canton, Canton, recent
ly became mayor of the city.
New officers elected at the last meet
ing of the Brown County Bankers As
sociation are: Roy Nelson, Hiawatha,
president; Chester G. J ones, Reserve,
secretary; Stanley Moser, Hiawatha,
treasurer.
The State Bank of Buffalo and the
Citizens State Bank, both of Buffalo,
have been merged.
A. H. Moffet, president of the First
National Bank of Larner, has been
elected head of the Kansas Federation
of the National Farm Loan Associa
tion.
A new bank is being started at
Altoona.
George Walter, who has been asso-

January, 1929

-C

o n t in e n t

anker

ciated with the Farmers State Bank,
Dwight, since August, 1926, has ac
cepted a position as cashier of the
State Bank at Rantoul.

Announcement has been made of the
death of William Knox, vice-president
of the Home National Bank at Eu
reka.

W. H. Rudy has been elected a direc
tor of the Fidelity State Bank, Kan
sas City, Kansas, to succeed Dr. J. A.
Jones, who recently resigned.

Urban Tracey is the new cashier and
director of the Farmers and Merchants
State Bank at McPherson. He suc
ceeds H. L. Austin.

The Farmers and Merchants State
Bank at Oxford has been merged with
the Oxford Bank. N. C. Dunn is pres
ident and Homer Jester, cashier.

A. B. Evans, president of the Citi
zens State Bank at Belleville, is dead.

B. E. Schmoker, assistant cashier,
has succeeded the late F. S. Butts as
cashier of the Protection State Bank,
Protection.

J. T. Cooper, of the Wilson County
Bank, Fredonia, is the new president
of the Wilson County Bankers Asso
ciation.

The Watkins National Bank and the
Lawrence National Bank, both of Law
rence, have been merged.
Frank M. Wilson, cashier of the
Bank of Soldier, at Soldier, is dead.
G. C. Pitney, cashier of the Neodesha National Bank at Neodesha for
the last 12 years, has been elected pres
ident of the bank to succeed the late
A. M. Sharp.
R. N. Downie has been elected ac
tive vice-president of the Fidelity
State Bank at Garden City.

G. B. Rooney has purchased the in
terest of James McAdams in the Peo
ples State Bank, Minneola, and is now
president of the bank.
Carl D. Cayot, for
years cashier of the
Rantoul, Rantoul, has
sition and is moving

the past nine
State Bank of
resigned his po
to California.

Appointment of Fred H. Wright,
manager of the newly created personal
loan and savings department of the
Farmers National Bank, Topeka, has
been announced by George W. Stans- .
field, president.
J. H. Edmondson has been elected
president of the Citizens State Bank,
Topeka, succeeding E. S. Gresser. H.
P. Betzer, F. S. Southwick and Mr.
Edmondson have been elected direc
tors.
New bank fixtures are being installed
in the new bank building of the Peo
ples Bank of Commerce, Clianute.
Herman W. Smith has been elected
a director of the First National Bank,
Parsons, succeeding the late W. L.
Bartlett.
Statement
Of Kansas Banks.
The last statement of the state and
private banks and trust companies of
the state of Kansas as compared with
that of a year ago shows a decrease of
over $2,000,000 in loans and discounts
and an increase of over $10,000,000 in
deposits. Figures were compiled by
Roy L. Bone, state hank commissioner.
The State Bank at Clearwater and
the Home State Bank, also of that
city, have consolidated and will be
known as the Home State Bank. S. C.
Bishop is the president.
The Exchange State Bank at Doug
lass has taken over the State Bank of
that city. A. G. Steinberg, cashier of
the Exchange State Bank, continues as
cashier.

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Federal Reserve Bank of St. Louis

~ ■

A "Banks and Bankers”
Department
I *HE National Park Bank has a special
JL department, with a separate staff of
vice-presidents and junior officers, whose
sole work is serving to out-of-town
correspondents.
*

/Ti

(Ln r

•.

attonal fjark
o f Ncui IJork.

-C

o n t in e n t

January, 1929

anker

James

Leavell

Elected

Vice-President

IN 1929
Com m erce T rust C om pany is al
w ays studying, developing and
using new and efficient w ays to
perform the functions o f m odern
banking.
In 1928— it becam e the First 24H ou r Transit Bank in the South
west.
In 1929— it is not proph ecy to
say that when som e new m ethod,
device or m edium is found w hich
w ill enlarge its scope o f useful
ness to its custom ers, the C om
m erce will be a pioneer in using
it.

(ommercejrust (ompanjo

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Federal Reserve Bank of St. Louis

Resources Exceed 100 Millions

Kansas City

James R. Leavell has been elected
executive vice-president of the Conti
nental National Company, the invest
ment organization affiliated with the
Continental National Bank and Trust
Company of Chicago. He is a vicepresident of the bank and will retain
that position.
Mr. Leavell came to Chicago in 1920,
as vice-president of the Continental.
Prior to that time he had been vicepresident of the First National Bank
in St. Louis and assistant cashier of
the Mechanics American National
Bank, also of St. Louis.
Mr. Leavell is widely known, par
ticularly among business men and
bankers of the South and Southwest.
He was born in Missouri, educated in
that state and received his early bank
training under his father. He was
elected to his first official bank posi
tion in 1913.

Nine St. Louis Banks Give
Liberal Christmas Bonuses
The boards of directors of nine
downtown St. Louis banks voted a
total of $1,020,000 in the form of extra
Christmas dividends to their stock
holders and about $257,000 in Christ
mas bonuses to their employes.
These extras were approximately 20
per cent higher than the total for the
same institutions last year, and the
total of bonuses to employes is 68 per
cent higher than last year.
The largest disbursement was made
by the First National Bank, which
voted a 5 per cent extra dividend, or
$500,000 to stockholders, and a month’s
salary to employes.
Action by other banking concerns
was as follows:
Boatmen’s National Bank, 2 per
cent extra dividend, or $40,000, and
one month’s salary to employes;
Franklin American Trust Company,
one month’s salary to employes; Na
tional Bank of Commerce, two weeks
salary to employes; Mercantile Trust
Company, 2 per cent, $60,000, extra
dividend, and one month’s salary to
employes; State National, one month’s
salary to employes; Mississippi Val
ley Trust Company, 4 per cent, or
$120,000, extra dividend, and one
month’s salary to employes; National
City Bank, 10 per cent of year’s sal
ary to employes; St. Louis Union
Trust Company, 6 per cent, or $300,000, extra dividend and month’s sal
ary to employes.

M id-C ontinent B anker

January, 1929

iM issouriBank

A. A. S peer
President

OFFICERS MISSOURI BANKERS ASSOCIATION: President, A. A. Speer, presi
dent, First National Bank, Jefferson City; vice-president, F. B. Brady, vice-president,
Commerce Trust Company, Kansas City; treasurer, E. N. Van Horne, cashier,
American National Bank, St. Joseph; secretary, W. F. Keyser, Sedalia; assistant
secretary, E. P. Neef, Sedalia.
GROUP CHAIRMEN: 1—W. L. Weaver, cashier, Hannibal National Bank, Hannibal;
2—E. C. Brownlee, cashier, Brownlee Banking Company, Brookfield: 3—C. S.
Berndt, cashier, Farmers State Bank, Stanberry; 4—F. C. Barnhill, cashier, Wood &
Huston Bank, Marshall; 5—L. L. Will, assistant cashier, Lowell Bank, St. Louis;
6—L. C. Leslie, cashier, First National Bank, Oran; 7—Chas. F. Ellis, cashier,
Citizens’ Bank, Marshfield; 8—H. A. Richardson, vice-president, Conqueror First
National Bank, Joplin.
GROUP SECRETARIES: 1—V. J. Howell, cashier, Kirksville Savings Bank, Kirksville;
2—James M. Smith, cashier, Osgood Banking Company, Osgood; 3—J. E. Barnes,
cashier, Round Prairie Bank, Fillmore; 4—J. E. Hurley, cashier, Sedalia National
Bank, Sedalia; S—J. J. Gowman, president, Peoples Bank, Bonne Terre; 6—John M.
Himmelberger, secretary, Morehouse Trust Company, Morehouse; 7—W. S. Pettit,
vice-president, Union National Bank, Springfield; 8—O. H. Keran, cashier, Farmers
State Bank, Lockwood.

Capital of Troy
Bank Is Doubled.
At a meeting of the stockholders of
the Farmers and Mechanics Savings
Bank at Troy on December 5 it was
voted to increase the capital stock of
the bank from $25,000 to $50,000. Sur
plus and undivided profits of the bank
total $67,427 and total resources are
$729,322.67, according to published
statement at the close of business No
vember 15.
Sixty per cent of the new stock
will be issued as a stock dividend to
the present stockholders, and the re
maining forty per cent will be sold
at $250 per share.
H.
F. Childers is president of the
bank; S. R. McKay, vice-president;
E. C. Dickenhorst, cashier; Fred Har
rison and R. E. Copher, assistant cash
iers.
Charter Issued
To Boonville Bank.
A charter has been issued to the
Kemper State Bank, Boonville, the

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Federal Reserve Bank of St. Louis

bank is to have a capital of $50,000
and a surplus of $10,000.
The new bank re-organizes and takes
over the Old Trails Bank. The board
of directors of the new bank are: R.
C. Kemper, T. T. Kemper, T. A. John
son, R. A. Johnson and Ross H. Rheem.
The new organization will assume all
of the deposits of the Old Trails Bank.
Chariton County Banks
Show Good Statements.
The state banks of Chariton County
show very healthy condition accord
ing to the published statements called
for by the state as per November 15.
The total resources of the banks ag
gregate $3,971,012.47, while the same
banks show a capital stock surplus of
$619,852.91. There are sixteen hanks
in the county.

000, capital stock $25,000, and deposits
more than $275,000.
Officers of the bank are: J. J. Cox,
president; Janies Alley, vice-president;
Edward Gloshen, cashier; Gussie A.
Gloshen and J. L. Lowry, assistant
cashiers.
Citizens Bank
of Marshfield.
The statement as of November 15 of
the Citizens Bank of Marshfield shows
total resources of $739,613.78, loans
of over $480,000, capital $50,000, and
deposits of more than $660,000.
Officers of the bank are: Roy Nel
son, president; B. F. Julian and W.
P. McKnight, vice-presidents; Chas.
F. Ellis, cashier; W. B. Miller and
G. W. Dailey, assistant cashiers.
Statement of
Bank of Odessa.
The statement as of November 15
of the Bank of Odessa, Odessa, shows
total resources of $1,038,455.09, loans
over $875,000 and deposits of over
$900,000. As the surplus and undi
vided profits exceed the capital of $50,-

Statement
of Mercer Bank.
Statement of condition of the Peo
ples Bank of Mercer as of November
15 shows total resources of over $300,000, loans and discounts of over $130,-

A new type of vault entrance with interlocking
vestibule. The reinforcing rods of the concrete
wall extend into the massive channel shaped vesti
bule casting and are tied through its heavy ribs.
When the concrete is poured the vestibule becomes
a part of the wall itself.
Manufactured and installed by

Herring - Hall - Marvin Safe Co.
Hamilton, Ohio
St. Louis Office

308 N. Fourth Street

St. Louis, M issouri
—

—

r T&->

The Herring-Hall-Marvin Safe Co. for nearly a century has
built and will always continue to build the same undeviating
quality into its products.

96
000 by over $34,000, it is one of Mis
souri’s honor roll banks.
'Officers of the bank are: J. C. Caliee, president; J. F. Martin, vicepresident; Walter Powell, cashier.
Peoples Bank
of Bonne Terre.
The statement as of November 15
of the Peoples Bank of Bonne Terre
shows total resources of approximately
$900,000, loans of almost $250,000 and
deposits in excess of $800,000. It is
an honor roll bank as capital is $25,000
and surplus and undivided profits over
$35,000.
Officers of the bank are: J. J. Bow-

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

id - C o n t i n e n t

anker

man, president; Albert Marshall, vicepresident; P. L. Benham, cashier; C.
F. Dinwiddie, assistant cashier.
State Exchange
Bank of Macon.
The statement of condition of the
State Exchange Bank of Macon as of
November 15 shows total resources in
excess of $1,500,000, loans and dis
counts of over $900,000, deposits over
$1,200,000 and capital stock of $100,-

000.
Officers of the bank are: Chris R.
Maffry, president; John P. Shea, cash
ier; Chas. E. Sear and R. E. Lauck,
assistant cashiers.

January, 1929
Missouri Bank
Adopts New Statement Form.
The Callaway Bank at Fulton has
adopted a unique idea in making its
regular statement in accordance with
the call from the state banking depart
ment, by offering an explanatory state
ment with every item listed on the
statement.
A great deal of favorable comment
was passed on the last statement of
The Callaway Bank. Oftimes people
are not able to obtain much informa
tion from a bank statement, as it is
usually prepared in terms with which
they are not familiar, and this expla
nation helps a great deal in making
every item clear.
Officers of the bank are: W. C. Har
ris, president; D. P. Bartley and T. C.
Harris, vice-presidents; T. H. Van
Sant, cashier; Lola E. Frank, assist
ant cashier.
Clay County State
Bank, Excelsior Springs.
The statement of condition of the
Clay County State Bank at Excelsior
Springs as of November 15 shows to
tal resources of over $1,100,000, loans
and discounts in excess of $600,000
and deposits of approximately $1,000,000. Surplus and undivided profits
are more than ten times over the cap
ital of $10,000, making it an honor
roll bank.
Officers of the bank are: John E.
Wagner, president; T. E. Crawford,
vice-president; E. H. Cravens, cash
ier; S. C. Sherwood, F. L. Kimber,
T. C. Hockensmith and Edna Eastin,
assistant cashiers.
Robert Cramer has been elected vicepresident and a member of the board
of directors of the Bank of Sandy
Hook, Sandy Hook.
Chester M. Murphy has been elected
assistant cashier of the Bank of Wes
ton, Weston.
J. B. McKay has purchased an in
terest in the Citizens Bank, Edina.
He has also been elected president,
taking the place of A. Pettit, who is
retiring from active service because of
poor health.
John Taylor, of the John Taylor
Dry Goods Company, has been elected
a director of the Missouri Savings
Bank and Trust Company, Kansas
City, in the place of Dr. Herbert G.
Tureman, who died several months
ago.
Joseph H. Rephlo has resigned as an
officer of the First National Bank,
Jefferson City.
The Miners Bank, Joplin, has an
nounced the opening of a peronsal
loan department.
The Farmers State Bank of Bran
son has been merged with the Bank of
Branson

January, 1929

M id-C ontinent B anker

Announcement has been made of the
death of Alexander M. Lewis, assist
ant vice-president of the Liberty Cen
tral Trust Company, St. Louis.

SERVICE

Carl H. Schupp, Bunceton, has been
elected vice-president and cashier of
the newly organized Kemper State
Bank at Boonville.
Jesse A. Mitchell, for the last eight
years cashier of the Citizens Bank of
Ava, has accepted a position with the
state finance department.

C a p ita l

F a ith fu lly se rv in g th e needs o f I n -

S u rp lu s

d u stria l S t. L o u is fo r th e p a s t 65

U n d iv id e d

^ c

y ea rs, qualifies th is b a n k to e x te n d

its d e p o sito rs exp erien ced financial

P ro fits

R. M. Marshall, Mrs. G. T. Hauenstein, W. S. Stillwell, E. P. Clark and
L. A. Wright have been elected direc
tors of the Bank of Tuscumbia.

$ 3 ,5 0 0 ,0 0 0

co o p era tio n .

The Merchants Laclede National Bank

The First National Bank of Kansas
City has declared a 10 per cent stock
dividend.

o f Saint Louis

Benjamin C. Howard, trust officer
of the Commerce Trust Company, Kan
sas City, who has been connected with
the bank since 1908, has resigned.
The Farmers Bank, Mt. Vernon, has
been reorganized under the name of
the Farmers State Bank of Mt. Ver
non.

Do business with this strong company, which
has gained a country-wide reputation as a
“National Institution of Service.”
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, Automobile,
Burglary, Plate Glass, Public Liability and
Workmen’s Compensation Insurance, and Sure
ty Bonds.

Walter Powell has been elected cash
ier of the Bank of Odessa. He was
formerly cashier of the Citizens Bank
at Odessa.
The capital stock of the Southeast
Missouri Savings and Loan Associa
tion, Cape Girardeau, has been in
creased from $2,000,000 to $3,000,000.

FED ER AL SURETY COMPANY

The Bank of Washington, Washing
ton, has installed an electric ventilator
in its vault.

C A S U A L T Y IN S U R A N C E — S U R E T Y B O N D S
W . L . T A Y L O R , Vice-President and General Manager

The Foreman National Bank

H O M E O F F IC E

D AVEN PO R T, IO W A

Building Nears Completion
On Wednesday, December 5th, the
topmost piece of structural steel was
set in the Foreman Bank Building and,
as is the custom, the American flag
was unfurled on the 40th story. A
party composed of Mr. Edwin G.
Foreman, Jr., the architects, builders,
newspaper men and photographers,
scaled the side of the building, from
the 36th floor where the elevator stop
ped, up to the 40th floor by means
of ladders. They perched perilously
on the steel work and attended to the
flag raising ceremonies while the pho
tographers ground out many feet of
film.
Chicago’s tallest bank building is
rapidly nearing completion. Work is
being carried on in the interior of the
building while the beautiful granite
and limestone is being set on the out
side. The building will be ready for
occupancy, May 1, 1929.

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

•______ m b m JU I

M id-C ontinent B anker

January, 1929

N ew Directors o f St. Louis
Federal Reserve Board

Your
Job Is
Anakin’s •
Y o u r R e sp o n sib ility
as a banker is to defeat the bandit,
day and night. Little as you may
relish it, this is a burden placed
upon your shoulders which you
cannot evade or sidestep.

B u t 8 ,7 4 6 B a n k s
have successfully solved the ques
tion of night burglary by install
ing famous Anakin Locks and Gas.
That 133 banks have been saved
from the attack of the skilled bank
burglar.

A n d N o w A n a k in
is ready to

assume guardianship
against

D a lite H o l d -U p
as a fitting companion protection.

JU ST A

POST

CARD

will secure particulars

The Anakin Co.
CHICAGO

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

ILLINOIS

According to announcement of Wm.
McC. Martin, chairman of the board of
the Federal Reserve Bank of St. Louis,
at a meeting held December 19, the
directors of the parent bank elected
the following branch directors to suc
ceed those appointed by it whose terms
expire at the end of this year.
For Louisville Branch—John T. Rey
nolds, Greenville, Ky., for three years,
and W. P. Kincheloe, Louisville, one
year. For Memphis Branch— John W.
Alderson, Forrest City, Ark., three
years, and W. H. Glascow, Memphis,
one year. For Little Rock Branch—
Jo Nichol, Pine Bluff, Ark., three
years, and A. F. Bailey, Little Rock,
one year.
The board of directors of each
branch consists of seven members, four
of whom are appointed by the parent
Federal Reserve Bank in St. Louis and
three by the Federal Reserve Board in
Washington. The managing director
is elected annually, but the other six
directors serve for terms of three years
each. Of the latter, the terms of one
director appointed by the Federal Re
serve Board and one appointed by
the Federal Reserve Bank expire each
year.
The recent statement of the Clay
County State Bank, Excelsior Springs,
Missouri, shows total resources of
more than $1,050,000 with deposits of
more than $948,000. The bank is an
“ honor roll” bank with capital of
$10,000 and surplus and profits of
more than $97,000.
Heads St. Louis
Safe Deposit Association.
Yal E. Heubach, manager of the safe
deposit department of the United
States Bank of St. Louis, was elected
president of the St. Louis Safe De
posit Association at a meeting held
in that city November 21.
The St. Louis Safe Deposit Asso
ciation has a membership of thirtysix banks and trust companies and
five associate members. A list of
country banks has been made up and
will be solicited for associate member
ship. The practical operation of safe
deposit departments and the actual
experiences of its members make up
the programs for the meetings. Mr.
Heubach has been active in the affairs
of the association for several years.
L. S. Haff has resigned as assistant
cashier of the First National Bank of
West Frankfurt, Illinois. He has been
connected with this bank for eleven
years.

" A m ighty g o o d bank
to do business with”

That’s what they
say of us, and we
are sure y o u ’ ll
find it is true—
f ry us.

Capital, Surplus and Profits
$ 3 8 0 ,0 0 0 .0 0

‘Resources $ 5 ,0 0 0 ,0 0 0 .0 0

Largest Bank in Missouri in a
City of Less Than 32,000
Population

M id-C ontinent B anker

January, 1929

A ir M a il Saves $125 to $1,000 Interest
Per M onth on (Collections
T a meeting held last month in
Hot Springs, Arkansas, John G.
Lonsdale, chairman of the Aeronantics
Committee of the Chamber o f Com
merce of the United States, made a
report on aeronautical development
showing the tremendous strides avi
ation is making in America.
Lonsdale, who also is president of
The National Bank of Commerce in
St. Louis, reported that banks, busi
ness concerns and insurance companies
are making wide use of air mail. On
this point his report said:
“ Savings in interest on collections
ranging from $125 to $1,000 monthly,
due to the quicker delivery by air mail
and express as compared with former
modes of transit, were reported by a
number of banks. This was prior to
the reduction in the air mail rate which
went into effect August 1, 1928, and
the new rate should encourage the
sending of even smaller collection
items profitably.
“ In the first month following the
inauguration of the new rate, the quan
tity of air mail carried jumped from
214,518 pounds in July to 418,821
pounds in August, and this is consid

ered one of the quietest months of
the year.
“ Planes of the air mail operators
are flying approximately 30,000 miles
a day over 36 states, touching at 102
cities which are centers of trade areas
having 70 million population. These
planes are carrying approximately 7
tons or a half million letters a day
exclusive of parcel mail, express and
passengers. These planes fly nightly
in both directions over 7,000 miles
of lighted airways and they are mak
ing distant cities over night neigh
bors.
“ Under the continuous pressure of
improvements in aeroplane and engine
design and instrument perfecting, the
map of the United States is being con
tracted in aeroplane hours, Mexico
City and New York are only fifty-five
hours apart over scheduled air routes
including a lay-over at the border of
nineteen hours as compared with six
days by railway mail. With the open
ing of lines to Mexico City and Mont
real air mail may now be sent to Can
ada at the domestic air mail rate and
to Mexico at a flat rate of 20c an
ounce. Distances are being shortened,

boundary lines wiped out and better
understandings with our neighbor coun
tries are being effected through the
operations of these commercial ships
of the air.
“ Great credit is due the Post Of
fice Department for the pioneer work
it has carried out in connection with
the establishment of air mail service
and the progress made in both day and
night flying. The Aeronautics Branch
of the Department of Commerce re
ports the carrying of 1,654,000 pounds
of mail by twenty operators during
the year 1927 as compared with 611,000 pounds carried by sixteen opera
tors during the previous year. In
1926 five airways operators trans
ported 1,734,000 pounds of express
matter while during the year 1927
eleven operators transported more
than 2,263,000 pounds.
“ Business men are realizing more
and more the benefits to be derived
from quicker delivery of mail and im
portant articles. Commercial organi
zations are becoming increasingly ac
tive in the promotion of aeronautical
development and in encouraging this
comparatively new industry in their
localities. They are forming commit
tees and working for airports in their
localities as well as for air mail routes
to bring them into the net work of the
speedier service. ’ ’

Playing Its Part in

The

HANOVER

Getting Things Done

N A T I O N A L BANK
This

o f the
C I T Y

O F

Shaw - Walker

Worker’s

N E W

Chair

Clerical
designed

to conserve e n e r g y .

Y O R K

The

comfortable curved back and
deep-cut

H EAD OFFICE

seat

con

form to body lines, assuring
natural posture. $ -fl / ^ . 5 0

PINE A N D N ASSA U STREETS
E S T A B L IS H E D

saddle

1851

W ell constructed.

Choice of
Oak, Mahogany or W alnut Finish

CAPITAL
SURPLUS

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

and

$ 5 ,0 0 0 ,0 0 0

PROFITS

$ 2 7 ,0 0 0 ,0 0 0

S haw-Walker
No. 932

3 0 7 N . 4th Street
S T . L O U IS , M O .

100

id - C o n t i n e n t

anker

W h a t Do Y o u W a n t?
— 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 subscriber, your check for $3 will
pay for a year’s subscription and entitle you to free use of the want
ad columns.
An organization with fifteenyears definite
accomplishment and with a wonderful
future program has an opening in St.
Louis and territory for a mature developed
sales executive whose past record shows
earnings in excess of $8,000 a year. The
line is protective equipment and the per
sonal sales of the man wanted will be large
ly to banks although other salesmen under
his control will sell every class of store
and business. Apply by letter only to the
Anakin Company, Chicago, Illinois.
Additional Capital: St. Louis Invest
ment House, expanding business, invites
the association of men of means, active
or inactive basis. Address C. R. E. care
of Mid-Continent Banker, 12-28.
Wanted: Seasoned banker 34 years of
age—12 years experience, desires to pur
chase substantial or controlling interest in
bank in good town of 1,000 population up.
Any territory considered. L. W., care
Mid-Continent Banker, 408 Olive Street,
St. Louis, Mo., 10-28.
For Sale: Bank fixtures, four-stall mar
ble and steel constructed cage, also mar
ble check table approximately 8 feet long
and 40 inches high. If interested will
forward photographs of cage and sample
of marble. Address O. J. Connell, El
Dorado, Kansas. 12-28.
Wanted: Established La Salle Street,
Chicago first mortgage bond house wants
two salesmen and Salesmanager, with clien
tele. Work in Illinois. Salary and com
mission basis. Splendid cooperation. Reply
giving full particulars and references. W. H.
M., care Mid-Continent Banker, 1-29.
Business Opportunity: Will sell control
or less amount to right man in good national
bank $1,000,000.00 deposits, good live town
—8,000 population. Assets guaranteed. In
vestment to carry presidency, or if less than
control is desired, to carry position as vicepresident. One of strongest and most popi lar banks in county. Good reason for sell
ing. Address P. P. I., Mid-Continent Bank
er, 1-29.
Wanted: Experienced and well qualified
banker wants to buy control or less
amount in some good bank carrying posi
tion. Prefer Kentucky or Tennessee, but
will consider any other location. Now
employed but desire larger field and better
town with good living conditions. Able
to handle large proposition. Let me know
what you have. Address G. B., care MidContinent Banker, 6-28.
For Sale: Illinois National bank. Only
bank in a modern town of SOO people.
Chicago territory. All denominations of
churches. An exceptionally good, clean
and profitable bank. Capital $25,000. De
posits $300,000, of which 70 per cent is
checking. No “other real1estate.” Large
reserve. Salary of cashier $3,000. Large
surplus and undivided profits. Bare con
trolling interest offered at book value. In
vestment of. about $30,000 could be ma
terially reduced by distribution of un
divided profits. Address A. E. D., care
Mid-Continent Banker, 11-28.

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Federal Reserve Bank of St. Louis

Man, of all-round banking experience,
having sold his former holdings, now
wishes to make new connection. Wants to
buy interest in a bank carrying official
position.
Can furnish A1 references.
Give full details of what you have to
offer. Address M. M., care Mid-Continent
Banker, 10-28.
Wanted: Coupon booth. Give details
and price.
Address GDM, care MidContinent Banker, 6-28.
Capable Bank Executive desires to make
change. 36 years old, 17 years experience.
A-No. 1 Credit man and accountant. Ad
dress Box A. C. I., Mid-Continent Bank
er, 2-29.

Banker-Lawyer wants connection with
bank, trust company or loan company.
Seven years a country banker as cashier,
three years practicing law. Thirty-one
years of age, married. Salary open. Now
in small town. Available at once. Ad
dress X-2, Mid-Continent Banker, 6-28.

Wanted: To purchase the controlling in
terest in a small bank located in Missouri or
Iowa. Address D. W. V., care Mid-Conti
nent Banker, 1-29.
Wanted: Position as cashier or active
officer in bank in town of not less than
1,000 population with good schools, church
and social conditions, and the community
not dependent upon any one crop for its
support. Have had 25 years bank experi
ence from janitor to vice-president, can
furnish best of references, now connected
with bank more than _half million dollar
resources. Would be interested in organ
izing bank in town that has not had bank
or where bank may have closed and the
citizens desire reorganization and they
would take half to three-fourths of stock.
Address S. P. C., care Mid-Continent
Banker, 11-28.
Wanted: Revolving door for bank. Oak
finish preferred. Address W. V. M., care
Mid-Continent Banker, 11-28.
Chicago Bond House with established
St. Louis office has exceptional opening
for another salesman to cover Southern
Illinois territory calling on banks and in
vestors. Address J. W. M. care MidContinent Banker, 12-28.
California Bank for Sale: San Joaquin
Valley country bank. National charter,
capital $25,000. Only bank in town.
Control can be had at par—less than
book value. Fast growing community.
Shipping has increased 500 per cent in
last three years. Present owners have
other interests, however, they desire to
retain sufficient stock to qualify as direc
tors. Buyer must be experienced in man
agement of country bank. Address V. A.
S. care Mid-Continent Banker. 12-28.

January, 1929
INDEX TO ADVERTISERS
A
Abraham Lincoln Life, Springfield, 111...... 43
Allyn & Company, A. C., Chicago........ 48
American Express Company, New York.. 103
American Financial Corporation, New
York .................................................. g5
American Fixture Co., Kansas City........ 30
American Banks, Nashville....................... 87
Anakin Company, Chicago....................... 98
Anderson & Company, Lorenzo E., St.
Louis .................................................. 68
Art Craft Shops, Inc., St. Louis.......... 88
Augustine & Company, St. Louis.......... 71
B
Baker, Kellogg & Company, Chicago.... 55
Bank of America, Chicago................
81
Bank of Commerce & Trust Co., Memphis 90
Bank of New South Wales, Sydney........... 65
Bank Vault Inspection Co., Philadelphia.. 34
Berkowitz Envelope Company, Kansas. City 101
Boatmen’s National Bank,St. Louis.... 36
Brokaw & Company, Chicago.................. 66
Burr & Company, George H., St. Louis... 63
C
Caldwell & Company, Nashville............. 46
Camp, Thorne & Company, Chicago...... 44
Canal Bank & Trust Co., New Orleans.... 87
Central Union Trust Company, New York 35
Chapman & Company, P. W., Chicago.... 47
Chase National Bank, New York............ 37
Cody Trust Company, Chicago................ 63
Commerce Trust Company, Kansas City. . 94
Commercial National Bank, Shreveport.... 88
Continental National Banks.....................
7
Couden Syndicate, Elliott R., St. Louis.. 64
D
Davis, Smith & McAnulty, Springfield.... 72
D’Oench, Duhme & Company, St. Louis....61
F
Federal Surety Company, Davenport, Iowa 97
Ferguson & Company, Louisville............. 65
Fidelity National Bank, Kansas City........ 27
First National Bank, Chicago.................. 40
First National Bank, Jefferson City, Mo... 98
First National Bank, St. Louis...............
2
First National Company, St. Louis........
3
Fletcher American Company, Indianapolis 59
Foreman Banks, Chicago......................... 82
Francis, Bro. & Company, St. Louis...... 70
Furness Bermuda Lines, New York........ 92
G
General Motors Acceptance Co., New York 83
H
Halsey, Stuart & Company, Chicago........ 33
Hanchett Bond Company, Chicago............ 58
Hanover National Bank, New York........ 99
Herring-Hall-Marvin Safe Co., Hamilton.. 95
Hibernia Bank & Trust Co., New Orleans 86
Hoagland-Allum & Company, Chicago.... 64
Hotel Chase, St. Louis............................ 76
Hotel Kings-Way, St. Louis..................... 101
Hotel President, New York..................... 65
I
Illinois Merchants Trust Co., Chicago.... 4
K
Kissell, Kinnicutt & Company, Chicago.... 67
Knight, Dysart & Gamble, St. Louis........ 72
L
Lacy Company, L. D.,, St. Louis............... 37
Leach & Company, A. B., Chicago........ 62
Liberty Bank and Trust Co., Louisville.... 86
Liberty Central Trust Co., St. Louis....... 91
M
McClintock Company, O. B., Minneapolis 88
Mercantile Trust Company, St. Louis.... 8
Merchants Laclede National Bank, St.
Louis ................................................... 97
Midland Bank, London, England............ 62
Mississippi Valley Trust Co., St. Louis.... 96
Morrison Hotel, Chicago.......................... 77
Mortgage & Securities Company, New Or
leans .................................................... 69
N
National Bank' of Commerce, St. Louis.... 104
National Cash Register Co., Dayton........
5
National City Company, New York........ 50
National Park Bank. New York............... 93
National Shawmut Bank, Boston, Mass... 79
Northern Bank Note Company, Chicago. . 97
Northern Trust Company, Chicago.......... 80
O'
Ottman & Company, E. H., Chicago........ 57
P
Piccadilly Hotel, New York..................... 78
PrenticerHall, Inc., New York................ 101
R
Republic Casualty/ & Surety Co., Chicago. . 42
Rogers & Company, N. L., Peoria.......... 58
Ruppert & Company, H. L., St. Louis.... 62
S
St. Louis Bank Bldg. & Equip. Co.......... 32
Seaboard National Bank, New York........ 29
Security Trust & Savings, Los Angeles.... 79
Shaw-Walker & Co., St. Louis.................. 99
Smith & Company, H., Chicago............... 72
Smith, Moore & Company, St. Louis........ 49
Steinberg & Co., Mark C., St. Louis, 51-2-3-4
Strauss & Company, Robert S., Chicago... 56
T
Thompson & Co., G. W., Chicago........... 64
Todd Company, Rochester, New York.... 84
True Securities Company, Chicago............ 60
U
Union & Planters Bank, Memphis............ 89

January, 1929

Union Trust Company, Chicago...............
W
Waldheim-Platt & Company, St. Louis....
Walker & Company, G. H., St. Louis....
Want Ad Page.........................................
Whitney Central Banks, New Orleans....
Willson & Company, James C., Louisville. .
Y
Young & Bros., Inc., W. H., St. Louis...

39
71
72
100
87
71
6

But Arose to the Occasion
The Observer was attending a ban
quet a few nights ago when an ac
quaintance of his, a traveling salesman,
was called upon to make a speech.
"Ladies and gentlemen,” lie began,
"n o t until this minute has a word been
said to me about making a speech, and
you want me to get up and make a fool
of myself without a bit of prepara
tion. ’ ’— Columbus Dispatch.

id - C o n t i n e n t

N ew Officers

101

anker

St. Louis

F. A . A . for
Recently the Financial Advertisers
Association of St. Louis elected the
following officers for the ensuing year:
Arthur S. Goodall, publicity manager,
First National Company, president;
Frank Ryan, manager, publicity de
partment, Mississippi Valley Trust
Company, secretary; Frank K. Harris,
publicity manager, Lafayette-South
Side Bank and Trust Company, treas
urer. The St. Louis group meets reg
ular once a month at the Missouri Ath
letic Association to discuss various
matters of interest to the members and
the banks they represent.

See How
M any of the
Foremost Banks
Obtain Business
banks have discarded
the common methods of
getting busine^. The book en
titled—

The New

Hotel Kings-Way
T ' H E e x p e n d it u r e o f n e a r ly a h a lf m illio n d o lla rs
has tr a n s fo r m e d a tra d itio n a lly fa m o u s h o s te lr y
in to th e m o d e r n , e fficie n t, e x p e r t ly m a n a g e d H o t e l
K in g s -W a y , s itu a te d in St. L o u i s ’ e x c lu s iv e W e s t
E n d re s id e n tia l s e c tio n .

any

" N e w B u sin ess f o r B an k s

by Kerman and Griffin
— shows how many of the
foremost banks actually obtain
the most profitable business
for their Commercial, Savings,
Safe Deposit, Bond, and Trust
Departments.

R e fu r n is h e d , r e fitte d a n d r e d e c o r a t e d th ru o u t—
a h o te l p e r f e c t ly s u ite d to th e n e e d s o f re s id e n tia l
o r tra n sien t g u e sts.

Every plan is illustrated by one or
more examples taken from the
records of fifty named banks.
The book is filled with specific
suggestions for large and small
banks.

Single room and bath from $65.00 per month— $75.00 for two
persons. Tw o room suites — bed room and large living room
from $140.00. Daily rate, room and bath from $2.50. Phone
Delmar 5820.

Y ou may exam ine this 326-page
book fo r five days w ithout cost.
Then, if you decide to keep it,
remit $5. Please use coupon below.

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Federal Reserve Bank of St. Louis

Hotel

K IX G S W A Y
KINGSHIGHWAY AT WEST PINE

Prentice-Hall, Inc.,
70 Fifth Avenue, New York, N. Y.
Without obligation to me, you may
send me a copy of “NEW BUSINESS
FOR BANKS,” for five days’ FREE
EXAMINATION. Within that time, I
will either remit $5 in full payment, or
return the book to you.
Firm ..................................................
(Please Print)

Under Same Management as
HOTEL MAYFAIR
St. Louis

Name ................................................
Address ............................................

102

id - C o n t i n e n t

anker

Lindell Trust Company, St. Louis, Opens
T^eoii) Banking H om e

January, 1929
elected president and general manager.
He succeeds Edward V. Harman, capi
talist of New York City, former pres
ident, who had been president since
February of last year when important
eastern connections were made which
greatly enlarged the scope of the com
pany.
The election of Mr. Caughlan reveals
an interesting business romance. The
Citizens Finance Company was ‘ ‘ born ’ ’
in a small room on the sixth floor of
the Chamber of Commerce Building in
St. Louis just eight years ago. One of
the co-organizers was Mr. Caughlan,
who gave up an extensive insurance
brokerage business in Atlanta, Ga., to
enter the industrial banking field.
Marvin E. Singleton, then president of
the Missouri State Life Insurance

View of lobby on opening day, Lindell Trust Co.

HE Lindell Trust Company, Grand
Boulevard and St. Louis Avenue,
St. Louis, Missouri, formally opened
its new bank building December 10.
The banking rooms occupy the north
half of the building 37 feet by 122
feet, and the south half of the first
and second floors and the basement is
used by a furniture store. The third
floor and the remainder of the second
floor are occupied by doctors, there be
ing 27 offices in all.
The entrance to the bank is guarded
by a solid bronze door. At the front
to the left and right are officers’ quar
ters and stretching the full length of
the room on either side are teller’s
cages, of which there are twelve. At
the back of the room a bronze grill
guards the entrance to the safe deposit
vault.
The main banking room is finished
in Italian black and gold marble and
the fixtures are of bronze, marble and
tapestry glass. The floor is of mar
ble and the walls are of panelled Coen
stone. The ceiling is decorated with
mosaic work and finished in a soft
gray. Three large bronze light fix
tures hang from the ceiling in the main
lobby.
In the center of the room are two
marble customers’ desks, six feet long,
with heavy glass tops and bronze fix
tures.
The vault is protected by an im
mense door weighing 27,000 pounds.
It is sixteen inches thick. This door
was installed by Eerd Munz, St. Louis

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Federal Reserve Bank of St. Louis

representative for the Diebold Safe
and Lock Company. The vault has
room for 3,000 safety deposit boxes
and is equipped with a burglar alarm
system. Above the vault is the direc
tors’ room.
The Lindell Trust Company was or
ganized January 2, 1924. It is cap
italized at $200,000 and has surplus and
undivided profits of $82,000 and de
posits of nearly $2,000,000. Total re
sources are approximately $2,300,000.
Officers of the bank are: Chas. H.
Peters, president; F. W. Brickenkamp,
vice-president; F. A. Sudholt, vicepresident ; A. W. Dehlendorf, secretary
and treasurer; F. A. Kaiser, assistant
treasurer; Harry Graeff, assistant sec
retary.
Directors of the bank are: George
Bilgere, F. A. Brickenkamp, Dr. Stan
ley S. Burns, A. W. Dehlendorf, Her
man Dischinger, Jr., Murtha J. Hachett, Wm. T. Jones, Henry Marquard,
Chas. H. Peters, Edgar F. Peters, B.
J. Spaeth and F. A. Sudbolt.
Wedemeyer and Nelson were the ar
chitects who designed the building. It
was built by the Haessler Construction
Company.

Caughlan N ow President o f
Citizens System
Frank B. Caughlan, vice-president
and general manager of the Citizens
Finance Corporation of St. Louis,
owners and controllers of the Citizen
System of industrial lending, has been

F R A N K B. C A U G H L A N

Company, was president of the orig
inal company and continued in that
capacity until succeeded by Mr. Brit
ton in 1924.
AVith the St. Louis company well
under way and a second company at
St. Joseph, Missouri, organized, Mr.
Caughlan began an intensive develop
ment plan among other large cities.
Kansas City was next organized, fol
lowed by Denver. The industrial bank
ing idea, common to the East, had never
penetrated this far west before.
Mr. Caughlan continued the work of
organizing new companies in state
after state until today there are 70
companies located in fifteen states.
They have a combined capital in ex
cess of $15,000,000 and do an an
nual business of over $30,000,000.
With the election o f Mr. Caughlan
as president announcement was made
that consolidations are under way
which will greatly increase the scope
of the enterprise.

January, 1929

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Federal Reserve Bank of St. Louis

id -C o n t i n e n t

103

anker

O h , how good that
hat band looked
on foreign soil
~almost like a n
sight o f thefla g
" E V E R sin ce retu rn in g fr o m o u r t r ip ...
I h av e b e e n m e a n in g t o w rite an d tell
y o u h o w m u ch w e d id e n jo y every m o
m e n t o f it, and thank y o u fo r all y o u d id
t o m a k e it su ch a success. I ca n ’t te ll y o u
h o w m u c h th e A m e rica n E xpress m ea n t
t o us all th e w a y r o u n d , w h e th e r it was
at th e o ffice s o r at th e d o c k s o r stations.
W e h ad such d e lig h tfu l treatm en t every
p la c e ” ... This is the exact wording o f a tribute

to American Express Service from two womer
patrons.
T r a v e lin g

u n e sco rte d

A rou n d

the

W o r l d , these g ratified w o m e n travelers
tell o f their a p p re cia tio n o f th e H e lp fu l
H a n d o f A m e rica n E xpress Service.
W h e r e v e r tou rists gather, the smart,
u n ifo r m e d represen tatives o f the A m erica n
E xp ress— w h o ty p ify th e H e lp fu l H a n d
— are alw ays ready t o m a k e jou rn ey s
h a p p ie r a n d safer. E ach m an is a Service
S t a t io n s p e c ia lly m a in t a in e d b y th e
A m e rica n E xpress t o g iv e p e rso n a l assist
ance t o all p a tron s and particularly th o se
w h o carry A m e rica n E xpress T ravelers
C h equ es.
\team ship tickets, hotel reservations,
CzA itineraries, cruises and tours planned
and hooked to any p a rt o f the w orld hy
the Am erican Express T ravel Department

T h is v a lu a b le
ten d ed t o

your

service a b road

„

d eg ree w h e n
th ey carry

S fHr

is e x

d e p o s ito r s t o th e fu llest

Wm ]where

IjRI CAN
EXPRESS

Travelers Cheques

H E National Bank of Com'
e
W ith officers who are alert
merce in St. Louis early in its to trade conditions and the
career selected a tradem ark needs o f industry, broad poli
that is suggestive of the busy cies fostering conservative de
m arts o f th e w o r ld — a
velop m ents have b een
sta u n ch th re e -m a s te d
carried out w ith increas
vessel majestically sailing
ing e ffe c tiv e n e s s , n o t
the seas.
only in St. Louis but in
L ivin g up to its tra d e
the vast territory linked
mark has been a natural
up in trade and banking
Grow With
task fo r “ C o m m e rc e ”. “ Commerce” relations w ith this city.

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Federal Reserve Bank of St. Louis

National Bankof Commerce
and —

—-------------------'Z------------------- in St. Louis

federal

CommerceTrust Company

BROADWAY

OLIVE TO PINE