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Federal Reserve Bank of St. Louis

•CONTINENT
B,A,N K E R

M ak e ’E m P ay— See H ow T hey Like it
B y Geo. T . McCandless

Page Seven

Telling the Public W h a t’s W h a t A bout Banking
B y Roscoe M acy

Page Nine

W here I Take M y Vacation and W h y
Page Eleven

Proper Diversification of a B an k’s Secondary Reserve
Page Thirty-five

News of Banks and Bankers

OKLA

A RK

Mid-Continent Banker

2

st
FIRST
Year A fte r Year
— IN ST. LOUIS

NATIONAL

BANK


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Federal Reserve Bank of St. Louis

IN ST. LOUIS
Reg. U. S. Pat. Off.

D eposits

St. Louis, July, 1927

3

A n estim ate o f serv ice
T ra de -

mark

Personal Protectograph

T o d e t e r m i n e the value
of an institution consider
how those it serves could
get along without it.
Over a million Protectographs
are guarding millions of checks.
S uppose these P ro tecto g ra p h s
were suddenly taken from busi­
ness houses and banks?
Over 200,000 banks and busi­
nesses buy their checks direct from
The Todd Company. Suppose the
banks were called upon at once
to supply this demand?
Todd Greenbac Checks flash
countless imprints of the word
“ V O ID ” the instant forger’s acid
is applied. Suppose that unpro­
tected checks were suddenly sub­
stituted for Greenbac checks?
Thousands of banks depend'
upon the B an kers’ S u p p ly Division
of The Todd Company for sup­
plies and advertising. Suppose
the activities of this Division were
stopped?
Thousands of Personal Protec­
tographs are relieving banks of
handwritten amount lines. Sup­
pose tellers were forced to de­
cipher scrawls once more?
T h e S u p e r-S p e e d P ro te c to ­
graph writes the amount line on
1200 checks an hour. Suppose it
was taken away from the count­
less industries that write thou­
sands of checks weekly?
Investigate Todd service. The
Todd Company. (E st. 1899 .) 1151
U niversity Ave., Rochester, N. Y .
Sole makers of the Protectograph,
Super-Safety Checks and Todd
Greenbac Checks.

The N ew Todd
Super-Speed

One of the standard models
of the Protectograph

Super-Safety Check

Todd Standard
Forgery Bond

TODD SYSTEM OF CHECK PROTECTION


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Federal Reserve Bank of St. Louis


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Federal Reserve Bank of St. Louis

Mid-Continent Banker

ST. LOUIS—

Its Civic Activities
The St. Louis Zoo ranks as one of the chief zoological gardens of
America. M an y experts have visited St. Louis to study the methods by
which the animal dens and paddocks are being transformed into near-tonature habitations. This is one o f the great municipal activities which
furnish entertainment and recreation for residents and visitors, keeping pace
with the city’s remarkable advancement as a business and industrial point.
The Mercantile Trust Company is proud of the part it has taken in the
last 27 years in the development o f St. Louis and its trade territory,
through various departments— Banking, Real Estate Loan, Bond, Corpo­
ration Finance, etc. W e have obtained sites for new industries and have
financed the construction of many industrial, business, church, school and
institutional buildings.
Our thorough understanding o j local conditions through gears o j dose
association with St. Louis’ progress enabtes us to render a valuable
service to bankers and banks, corporations and business men.

Mercantile Trust Company
M em b er F ed era /

C a pita ld S u rp lu s

R e s e r v e J /ir fe m

Ten M illion D olla rs

E IG H T H AND L O C U S T

-T O

SAINT LOUIS

ST. CHARLES

5

St. Louis, July, 1927
IN D E X T O A D V E R T IS E R S
A braham L in co ln L i f e ................................... 21
A llyn & C om pany, A . C., C h ic a g o .......... 56
A m erican F ix tu re Co., K an sas C i t y . . . . 31
A m erican B anks, N a sh v ille ........................ 21
A n d erson & Co., L oren zo E., St. L o u is. 54
A ugu stin e & C om pany, St. L o u is .............. 47
B aker, K e llo g g & Co., Ine., C h ic a g o ........ 55
B ankers T’rust C om pany, N ew Y o r k . . . . 17
B an k o f C om m erce & Trust, M ansfield,
L a ......................................................................... 16
B an k o f C om m erce & T’rust, M e m p h is.. 32
B ank o f N ew South W ales, S y d n e y ----- 42
B artlett & G ordon, Inc., C h i c a g o ............ 47
B erkow itz E nvelop e Co., K an sas C it y .. 49.
B oatm en ’ s N ation a l B ank, St. L o u i s . . . . 67
B ow m an & C om pany, St. L o u is ................ 56
B rook m ire E con om ie Service, N ew Y o rk 40
Burr & Co., G eorge H ., St. L o u is ............ 38
C aldw ell & C om pany, N a sh v ille ................. 37
Cam p, T h orn e & Co., C h ic a g o .................. 34
C hapm an & Co., P. W ., C h ic a g o .............. 36
Chase N a tion al B ank, N ew Y o r k ............ 67
C om m erce Trust, K an sas C ity .................. 63
C ontinental & C om m ercial, C h ic a g o . . . . 18
D aw es, M ay n a rd & Co., C h ic a g o .............. 46
D ’Oench, Duhm e & Co., St. L o u is ............ 49
E qu itable B ond & M tg. Co., C h ic a g o ----- 41
E qu itab le T ru st Co., N ew Y o r k ................ 14
F ed eral Surety Co., D aven port, I o w a .. . 46
F irst N ation al B ank, C h ic a g o .................. 25
F irst N ation al B ank, St. L o u is ................ 2
F letch er A m erica n Co., L o u is v ille .......... 50
F orem an B anks, C h ic a g o ............................ 24
F rancis, B ro. & Co., St. L o u is .................. 44
G eneral M otors A cct. Corp., N ew Y o rk . 42
H alsey, S tuart & Co., C h ic a g o .................. 53
H ibern ia B an k & T rust, N ew O r le a n s ... 29
H oa gla n d -A llu m & Co., C h ic a g o .............. 51
H otel E m pire, N ew Y o r k ............................ 62
H otel K n ickerbocker, N ew Y o r k .............. 49
H ow e, S now & B ertles, Ine., C h ic a g o ... 51
Illin ois H o n o r R o ll B a n k s .......................... 20
Illin ois M erch ants Trust, C h ic a g o ............ 28
Industrial A cce p ta n ce Corp., N ew Y o rk . 48
K night, D y sa rt & G am ble, St. L o u i s . . . . 46
K renn & D ato, C h ic a g o ................................ 50
L ib e rty C entral T rust, St. L o u is .............. 16
L ib e rty In su ran ce B ank, L o u is v ille ........ 29
M arine B an k & T ru st Co., N ew O rleans 60
M cC lin tock C om pany, O. B., M inneapolis 57
M ercan tile T ru st Co., St. L o u is ................ 4
M erchants L a cle d e B ank, St. L o u is .......... 60
M idland Bank, L ondon, E n g la n d .............. 56
M ississippi V a lle y T'rust, St. L o u is ........ 33
M issouri H o n o r R o ll B a n k s ........................ 65
M orrison H otel, C h ic a g o .............................. 58
M ortg a g e & S ecurities Co., St. L o u i s . . . . 52
N a tion al B an k o f C om m erce, St. L o u is. 68
N a tion al C ity C om pany, N ew Y o r k . . . . 40
N a tion al P a rk B ank, N ew Y o r k .............. 57
N orth ern B an k N ote Co., C h ic a g o !.......... 61
N orth ern P a cific R a ilroa d , M in n ea polis. 6
N orth ern Trust C om pany, C h ic a g o .......... 67
P otter, K au ffm an & Co., St. L o u is .......... 35
R eed and A ssociates, P. M., C h i c a g o .... 21
R og e rs P a rk H otel, C h ic a g o ....................... 61
R oss G ould Co., St. L o u is ............................ 48
R u p p ert & Co., H. L., St. L o u is ........••. . 49
St. L ou is B an k E qu ipm ent C o .................. 15
St. L ou is M utual L ife C o ............................ 16
S eaboard N a tion al B ank, N ew Y o r k . . . . 27
Smith, M oore & Co., St. L o u is .................... 45
S tein berg & Co., M ark C., St. L o u i s . . . . 49
Stern & Co., L aw ren ce, C h ic a g o .............. 50
S tickney, D en yven & Co., St. L o u is ........ 48
S tock Y ards N ation a l Bank, C h ic a g o ... 22
T od d C om pany, P hiladelphia, P a .............. 3
U nion & P lan ters B ank, M e m p h is.......... 30
U nion T ru st Co., C h ic a g o ............................ 26
U nion T ru st Co., E. St. L o u is .................... 43
U tility Securities Co., C h ic a g o .................. 39
W alk er & Co., G. H ., St. L o u is .................. 57
W a n t A d P a g e .................................................. 64
W esslin g Services, L y tton , I o w a .............. 23
W h itn ey C entral B anks, N ew O r le a n s ... 61
W illso n & Co., Jam es C., L o u isv ille .......... 46
W ise C om pany, J. H., St. L o u is .............. 13


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Federal Reserve Bank of St. Louis

The Financial Magazine of the Mississippi Valley

CLIFFORD DE PUY, Publisher
DONALD H. CLARK
Editor and Manager
JAMES J. W ENGERT
Associate Editor

ST. L O U I S
JU LY, 192 7
VOL 23

No 7

W ILLIAM H. MAAS
Vice-President
Manager Chicago Office
1221 First Nat’l Bank Bldg.
Telephone, Central 3591

CONTENTS FOR JULY
Page
“ Make ’ Em Pay—See How They Like It”—By Geo. T. McCandless 7
Special Train Sponsors Pure Bred Live Stock—By James J.
Wengert ...... ................. ....................................................... .......... 8
Telling the Public What’s What About Banking—By Roscoe Macy 9
Going Fishing—In a Private Car...... ............................ ....................... 10
Where I Take My Vacation and Why................................. ................ 11
“ IT ”—the Psychology of Success—By Miller Weir.......................... 12
How an Acorn Sprouted in a Small Bank........ ................................. 15
The Experience of Others—By the Legal Editor............... ,.............. 17
Illinois Bankers Meet at Danville.................... ........ ........................... 19
Who’s Who in the Indiana Bankers Association................................ 25
Organizing and Building a Small City Savings Department—By
Arthur R. Cooney............................................................................. 41
Two Inexpensive Window Displays..................................................... 66
BOND AND INVESTMENT SECTIO,N
Proper Diversification of a Bank’s Secondary Reserve.....................
St. Louis Stock Exchange Official Quotations...................................
How “ Investment Trusts” Operate—By William Welsh...... ..........
Along LaSalle Street—By Wm. H. Maas........................ ...................
Current Quotations ...............................................................................

35
44
45
53
59

STATE NEWS SECTIONS
Page
Page
Illinois ___________ .............. . 19
Oklahoma _______ ..................... 33
Indiana .................. ............. ....... 25
Kansas .................... .... ................ 33
Kentucky ....... ........ ..................... 27
Louisiana ____ ____ - .................. 60
Mississippi ............... ....... ............. 60
Tennessee
........ ...................... 30
Missouri .................... ..................... 62
Arkansas ................... ................... 32

Published by the Commerce Publishing Company, 408 Olive Street, St. Louis, Mo.
Clifford DePuy, President: James J. Wengert, Vice-President: Wm. H. Maas, VicePresident: Donald H .C la rk , Secretary-Treasurer. Telephone GArfleld 2138.
M EM BER A U D IT BU REAU OF C IR C U LA TIO N S,
F IN A N C IA L A D V E R T IS E R S ’ A S S O C IA T IO N
DE PUY PUBLICATIONS AND T H E IR T E R R IT O R Y
Mid-Continent Banker
St. Louis
Northwestern Banker
Des Moines
Trans-Mississippi Banker
Kansas City
Southwestern Bankers Journal
Fort Worth
Life Insurance Selling
St. Louis
Underwriters Review
Des Moines
Insurance Magazine
Kansas City
New York office: Frank P. Syms, 25 West 45th St.
Chicago office: Wm. H. Maas, 1221 First National Bank Bldg., phone Central 3591
Kansas City office: G. D. Mathews, 405 Ridge Bldg., phone Victor 5254
Fort Worth office: Lawson Hetherwick, 409 F. & M. Bidg. Phone 2—2513.
Des Moines Office: Clifford DePuy, 555 Seventh St., phone Walnut 2201
Minneapolis Office: Frank S. Lewis, 840 Lumber Exchange.
Entered as second-class matter at the St. Louis post office.
Subscription rates $3.00 a year; 35 cents a copy

Mid-Continent Banker

6

A Fishing Trip to
Minnesota in Y our Private Car!
The Northern Pacific has equipped a special car that may be char­
tered for fishing or hunting parties. It will accommodate 10 guests.
Chef and valet are provided. All arrangements are made in advance
for guide service, automobiles when required, boats, launches, etc.

SCHEDULE—Eight-Day Trip to the Lakes o f Minnesota
First Day—Leave Chicago (Union Station)
C. B. & Q., 6:30 P. M.
Second Day—Leave St. Paul (Union Station)
N. P. Ry., 8:50 A. M.
—Arrive Nisswa, Minnesota, 2:09 P. M.
Walk a few rods to your boat. Launch
service with tow o f row boats. Black bass,
wall-eyed pike, pickerel, great northern pike.
Third Day—Another day’s fishing on the
Nisswa Lake chain. Car moved during
night to Hackensack.
Fourth Day—Autos to Woman Lake. Row
boats equipped with Elto motors. Guides
for each boat—two guests to the boat. Bass,
pike, muskies, crappies, pickerel.
Car
moved during night to Walker.
Fifth Day—Fishing on the famous Leech
Lake. Launches meet party and take them
to pike fishing grounds. Guides and row
boats furnished. Car moved during night
to Blackduck, Minnesota.
Sixth Day— Autos to Blackduck or Moose

Lake. Fish for bass, pike, crappies, rock
bass, pickerel or muskellunge.
Seventh Day— Autos to Moose Lake, or
Dixon Lake, or Turtle River, if party pre­
fers river fishing. Boats furnished — no
guides.
— Leave Blackduck, 10:25 P. M.
Eighth Day—Arrive Minneapolis, 7:50 A. M.
Leave at once for Chicago by daylight trains
or spend day in Minneapolis and St. Paul.
Leave St. Paul (Union Station) C. B. & Q.,
9:00 P. M.
Ninth Day—Arrive Chicago (Union Station)
9:25 A. M.
You will appreciate the comfort of this
smoothly planned trip. It’s a scheme that de­
livers the sport—and the fish ! The cost is sur­
prisingly low.
Get up your own party of friends and travel
comfortably in a private car to the fishing
country that appeals to you! You’ll have a
real vacation, and you’ll come back with mem-

ories—and fish stories—to last a lifetime! Fill
out the coupon and I’ ll be glad to give you
complete information and help you with your
plans.
A. B. SMITH.

I A M IN T E R E S T E D
in the private car for fishing parties, and I
would like more information about Tour
-------- and the cost from__________________
There will b e ____ people in my party and
we want to go__________________________
Name
Address

Mail this coupon to A. B. Smith,
824 Northern Pacific Bldg., St. Paul, Minn.
286

N orth ern P acific R a ilw a y

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Federal Reserve Bank of St. Louis

Tw enty-third Y ear

Saint Louis

N um ber Six

June, 1927
The Financial Magazine of the Mississippi Valley

“Make 'em Pay—See How They Like It’’'
W ith Average Net Earnings of State Banks
6/4%, W h a t Profiteth a Man to Run a Bank?
HE usual flock of group meetings
and state conventions of bankers
are all but over and bankers have
returned home refreshed in body and
spirit. I know of nothing that will
brush away the dust and cobwebs from
weary brains better than these various
bank meetings. After a grinding siege
with delinquent borrowers and the
usual alibis, it is refreshing to brush
up against fellows in your own line
and with the same kind of problems
to solve. As Coue would say, if he
could speak, “ day by day” the banking
business is confronted with the ageold problem of how to pay its officers
living salaries and have anything left
to distribute as dividends to the stock­
holders. In an article I have just read
in my daily paper I note that the aver
age net earnings of our state banks
for the last year were 6% per cent, and
the writer asked the question, “Why
should a man take all the responsi­
bility which accompanies the manage­
ment of a bank for so small a return;
why not invest it in good bonds and
save himself the wear and tear on his
mind and body?” Truly, it does look
reasonable. But I suppose many a
banker has, asked himself that ques­
tion and wondered as he lies in his
Simmons and reclines luxuriously on
his Ostermoor or Sealy what it is all
about.
The answer to the question is not
impossible. Men are born bankers,
become bankers through training, or
are handed a bank by some worthy an­
cestor who didn’t know what else to
do with it when he embarked on the
long trail. I recall an instance of a
friend who raised his boy to be his suc­
cessor in the banking business and sent
him East to one of our great schools.
The result was that the boy stayed in
the East as an instructor in a school
of business, and papa still runs the lit­
tle shaving parlor in the old home
town.

T

VV/'E are children of habit. A pro’ * moter asked an old banker of the
old school of practical banking if he
would sell out, and the reply was, “No,
I couldn’t think of it—if I did I wouldn’t

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Federal Reserve Bank of St. Louis

B y Geo. T . McCandless

“ The Man Behind the Counter”
have any place to loaf.” He had been
coming down to work every day for
thirty years, and every object in that
bank room was familiar to him. You
have all read that the Iowa farmer
doesn’t sell the farm and move to Cali­
fornia to live, but to die; when he let
down work and adopted leisure the
grim reaper gained several laps on
him. One cannot change the habit of
years in a day and not discover the
difference to his sorrow.
There is a bank in New York that
pays 100 per cent dividends; its stock
is quoted at $3,500 a share, and worth
it, but the return to the investor is not
abnormal. I would say offhand that if
a banker can pay himself and other
employes fair salaries, pay a 6 per cent
dividend, and lay aside a little to sur­
plus each year, he should be well satis­
fied. Perhaps this is too modest, but
it is not far out of line.
HAVE just finished re-reading David
Harum. If there is a banker any­
where who has never read this book
I would say to him to read it as soon
as he can get a copy. There is more
practical good sense in that volume
than any I can name. Any banker who
can read it without profit would be a
rarity. The description of the clerk
who described Dave to the new man
as doing no work in the bank at all,
but just saying wTho can borrow money
and collecting the notes is a classic.
This is not a boost for David Harum
especially, but one recognizes that a
real banker must have been the au­
thor; he speaks the language.
An inspiring word would indicate
that the percentage of failures among
business of all kinds runs as high as
90 per cent, while the banking mortali­
ty is less than 5 per cent; I do not try
to explain this, but merely state it
as I read it. David Harum said if he
didn’t have a horse trade once in a
while his dividend from the bank would
not be possible. The modern banker
.may substitute bonds for horses and
T

thusi help out the P and L account,
and most of them do. The curse of
the present-day banking is interest on
deposits. What profiteth it for a man
to accept money on deposit at 4 per
cent and lend half of it out at 8 per
cent?
Old Man Overhead is standing around
the corner to take away the profit on
such a transaction. I pay for electric
lights, gas and water. As I glance
over the statement I see a line called
minimum service so much, whether I
use and enjoy the commodity or not.
The utility companies through the
adoption of service charges have trans­
formed themselves into good paying
properties by just this simple device
and nobody kicks very hard. If the
banks could adopt this same plan they
would all be better off, and I believe
the day is coming. I have in mind a
cute little bank at a resort town—
only bank—several had passed on
there—so this boy said, “I’ll make ’em
pay and see how they like it.” He did
and they did. First rule—no over­
drafts. Second rule—service charge
on accounts of less than $50. He told
me himself he had paid dividends,
modest, from the start, and had threefourths of his. loans in commercial
paper purchased through his city cor­
respondent. I’d as soon deposit my
money in that little bank as any bank
in the country and so would you.
law can take the place
N Oof guarantee
prudent, honest banking. One
of the few states retaining a bank guar­
antee law admits this, and the bankers,
operating under that guarantee are
confessing large deposits and small re­
turns after they pay their assessments
to pay the losses incurred by reckless
and incompetent men, wrongly de­
scribed as bankers. So cheer up, boys,
it might be worse, and there are a lot
of businesses that envy you, your short
hours and white collars and golf sticks
even if you yourself are not able to
leave your troubles locked up with the
rest of the supplies in the vault. There’s
always tomorrow, you know!

8

Mid-Continent Banker

Special Train Sponsors
Pure Bred Live Stock

Cut Courtesy Agricultural Commission, American Bankers Association
The smoke from the Purebred Livestock Train no longer lingers in the famous blue grass
hills of Kentucky, but the run it made will mark a new day on many Kentucky farms.
Sleek, well-bred sires found new homes, while scrawny, unprofitable scrubs boarded the train for
the yards. Hundreds of people gathered at every stop, saw the exhibits, and listened attentively
to the speeches. Purebred pigs, sheep, chickens and cattle were given away through the courtesy
of local and state breeders and business men. Men, women, boys, and girls, everybody interested
in farming found a new romance in the better farming exhibits.
The success of the train was a fitting tribute to the work of the county key bankers in
making the stops resultful, according to F. C. Dorsey, chairman agricultural commiteee Kentucky
Bankers Association. Thirteen state organizations and two railroads co-operated.

A N E of the outstanding examples
of banker-farmer c o o p e r a t i o n
that has taken place in recent years is
the Pure Bred Sire Special Train which
visited fifty-two Kentucky towns dur­
ing the months of April and May.
The train was operated under the
auspices of the Agricultural Commit­
tee of the Kentucky Bankers Associa­
tion, the College of Agriculture, the
Agriculture and Livestock Improve­
ment Association of the Louisville
Board of Trade, the Department of Vo­
cational Agriculture, of the State De­
partment of Education, the State De­
partment of Agriculture, Bourbon Stock
Yards, Louisville Live Stock Exchange,
Dairy Products Association of Ken­
tucky, Breeders of Registered Cattle, L.
& N. R. R., L. H. & St. L. Ry., Breed
Associations, Daily Press, Farm Press
and business organizations in the towns
visited
Realizing that the prosperty of Ken­
tucky depends upon the prosperity of
the farmer, and that this prosperity
could be materially increased through
the use of purebred sires, the Agricul­
tural Committee of the Kentucky Bank­
ers Association and the other organi­
zations mentioned above, cooperated in
operating this train. These organiza­

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Federal Reserve Bank of St. Louis

tions believe that better livestock
means better homes, better living and
better people.
The train, which consisted of eight
cars, carried exhibits illustrating the
improvement of live stock through the
use of pure bred sires. The College of
Agriculture had one exhibit car, and
speakers and authorities on live stock
subjects accompanied the train and
made talks at each of the meetings.
As a special feature of the meetings,
a registered bull was “ swapped” to one
farmer in each county in exchange for
a scrub bull. “Help make Kentucky
scrub free” was the slogan on the
train.
Excited crowds greeted the train at
each town where meetings were held
and old and young cooperated in mak­
ing the movement sponsored by the
organizations on the train a success.
Especial appeal was made to school
children and large crowds.of them at­
tended the exhibits.
Besides the forty-eight pure bred
bulls which the Agricultural Commit­
tee left in the forty-eight counties visit­
ed by the train, hundreds of registered
heifers, calves, hogs and chickens were
given as prizes by the merchants and
clubs in the various towns visited by

the train.
Among the interesting exhibits car­
ried on the special train were standard
type dairy barns, poultry and hog
houses and other farm buildings,
pure-bred bulls of all breeds, pure­
bred and mongrel poultry, a compari­
son of pure-hred and scrub lambs and
other instructive as well as interesting
displays. Features of the exhibit were
the mother of the State’s largest litter
of pigs in 1925 and the largest produc­
ing cow in the United States, the lat­
ter being owned by Ralph M. Baker of
Carrollton, Ky. The sow weighed ap­
proximately 1200 pounds.
The Kentucky College of
carried a very interesting demonstra­
tion car in which was found displays
of lungs of cows with and without tu­
berculosis; specimens showing the de­
fect of white diarrhoea on the egg pro­
ducing organs of the hen; charts show­
ing the value of pure-bred sires and
comparative methods used by the dairy
farms of the State. Bulletins of inter­
est were distributed among the farm­
ers.
The “key bankers” in each county in
Kentucky contributed largely to the
success of the train. Their work in
organizing all of the bankers in the
counties visited and their work in mak­
ing prelminary arrangements for the
local meetings was very valuable in se­
curing a large attendance at each
meeting.
Much interest in pure bred live stock
has been aroused throughout Kentucky
as a result of these meetings and it is
now hoped that the special train can
be made an annual affair.

L ay Corner Stone for State
Bank o f Chicago
Copies of all Chicago newspapers for
May 21a which related the epic of Lind­
bergh’s flight to Paris, and those for
June 6, reporting the ChamberlinLevine flight to Berlin, were sealed
June 7 in the corner stone of the new
State Bank building, at Monroe and
LaSalle streets, Chicago.
Leroy A. Goddard, chairman of the
Executive Committee of the State Bank
of Chicago, and officials of the bank
took part in the ceremony of laying
the corner stone. A history of the bank
since its inception nearly 48 years ago
and photographs of all the bank’s
officers also were sealed in the metal
container.
“We believe that these newspapers
will have a tremendous historical value
when the corner stone eventually is
opened up by future generations,” said
Gaylord S. Morse, one of the officials.
“The have been sealed up air-tight
and should remain in perfect condi­
tion.”

9

¡St. Louis, July, 1927

Telling- the Public W hat s What
About Banking
ANK depositors have always been
a perverse class of people. A
few years ago, the average de­
positor, every three or four months,
would find in his. mail a little folder
with the name of his bank printed
across the first page in bold type. If
he was not particularly busy, he might
read the statement at the bottom of
the page, in which the officers of the
hank admitted that they had been doing
a conservative banking business for
umpty years. He might even turn the
thing over, and be reassured to learn
that the bank still had some “ Safety
Department Boxes for Rent,” but his
curiosity rarely carried him farther.
There was sufficient proof in these two
items that his money was still in safe
hands., and the folder, still unopened,
was ready for the waste basket.

B

The distressing thing about all this
is that the statement which the de­
positor in those days never looked at
was probably a good statement. Late­
ly, when we bankers are most of us
wishing we could return to those good
old days, our depositors have developed
a disgustingly vulgar curiosity about
those figures we print on the inside
pages of our folders. In spite of the
fact that we still admit right on the
front page that we are sound and con­
servative, they have the bad taste,
nevertheless, to open the folder and
read the figures printed inside. Who
knows; maybe they even add up the
columns to see if the thing really bal­
ances!
No matter what we think of this sit­
uation, it is here, and we must face it.
The question is, what attitude shall we
take in meeting this new development?
Shall we take hammer and chisel, dig
out our frozen assets, and allow our
best customers to gaze upon their frostrimmed surfaces? Or shall we dress
our windows as the shopkeepers do,
hiding our second mortgages behind
unidentified “Bonds and Securities?” It
is the sense of this convention that we
should take the horns, boldly by the
bull, and adopt a policy of frankness
in our published statements which will
prove -to our depositors exactly why
they can’t have their money until next
year, or until Coolidge lets up a bit
on this copyrighted brand of prosper­
ity, or until something else happens.
With this idea in mind, the following
model statement of condition has been
prepared:

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

B y Roscoe M acy

“STATEMENT OF CONDITION
of the
PEOPLES SAYINGS BANK AND
TRUST COMPANY
of Turtle Neck, Kansouri.
(As reported on call of the State Bank­
ing Commission at the close of
Business, July 1, 1927.)
Assets.

BILLS RECEIVABLE........ $ 569,883.80
(You’d be surprised to
know how much some
people owe us. We don’t
understand o u r s e 1ves
how some of them ever
got into us, but the fact
remains that we have
been worked, for better
or for worse, for the
above amount of money.
The total is absolutely
correct; our Mr. Bentley
added it up on the ma­
chine.)
OVERDRAFTS ..................
1,993.94
(These overdrafts were
made by relatives, of some
of the best people in the
community — sons-in-law
of our good customers,

nephews of directors, and
tenants on farms owned
by officers of the bank.
We plan to do something
about these overdrafts
as soon as we can get
around to it. In fact, the
examiner said Aive had to.
Maybe we’ll send out
some notices, or some­
thing.)
U. S. GOVERNMENT
150.00
BONDS ...........................
(These bonds were or­
dered last week by a local
skinflint who was scared
about the bank. Before
the bonds arrived, he
checked out his balance
in cash, and left us to
hold the sack. We un­
derstand they are mar­
ketable.)
OTHER BONDS..................
148,200.00
(Bonds which we have
given as guardian, trus­
tee, and administrator
in various estates; also,
a few officers’ bail bonds
—mostly for minor of­
fenses,)
BUILDING AND
FIXTURES .....................
41,000.00
(Continued on page 50)

“ Presidential tears of sympathy come high. Charge at least forty-five cents
per tear, or two for seventy-five.

10

Mid-Continent Banker

Going Fishing—in a Private Car

Interior Northern Pacific Fishing Car, Showing Fish

Fine looking Walleyed Pike, aren’t
they?
These sportsmen are shown looking
over a few of their catch on a recent
trip to the Northern Minnesota lakes
aboard the Northern Pacific Railway’s
fishing car. The picture was taken in


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Federal Reserve Bank of St. Louis

the dining room-sitting room of the car.
The equipment also includes com­
fortable beds for ten persons, toilet fa­
cilities, ample closet space for clothing
and equipment, and a heating plant as
an emergency for cool weather. Two
servants—a chef and a porter-valet—accompany the car.

This service enables sportsmen to
charter their own private railroad car
for fishing trips at a moderate expense.
A.
B. Smith, passenger traffic man­
ager, Northern Pacific Railway, St.
Paul, is in charge of this special fishing
car service.

11

St. Louis, July, 1927

W here I T ake My Vacation—and W hy
UTDOOR recreation is favored by
many bankers in planning their
annual vacation. After ten or
eleven months inside or “behind the
counter” the call of fishing, hunting,
motoring or golf is almost irresistable.

O

Jos. W . Springer, cashier Farmers
and Merchants Bank, Elizabethto w n,
Ind., and tre a s ure r of the Indiana B ank­
ers Association, says: “ This year I

am planning to spend my vacation on
the shores of Cape Ann, Massachusetts.
Several years ago I spent some weeks
at this location and a vacation more
enjoyable I have never experienced
before or since. There is something
about the salt water air and that de­
licious fresh sea food that stimulates
the individual who is more or less shut
in the year.
“ There is fishing, clam digging, swim­
ming, motor boating and golf for those
who indulge. Beyond this, this, is one
of the most picturesque portions of
America it has been good fortune to
visit.
“ Two or three weeks spent in such
surroundings is, in my opinion, a most
ideal vacation for a banker.”
Eugene T. Hastings, manager of the
Bank Investment Division of the N a ­
tional
Republic
Company,
Chicago,

adds:
“ The simple pleasures that strug­
gling bond salesmen anticipate during
the enforced vacation, which usually
occurs in August, (since all the bond
buyers are taking their vacations and
the salesman might as well take his)
may not amount to much in your opin­
ion. For that reason I will not deal
with them at length. Suffice it to say
that eighteen holes of golf in the morn­
ing and eighteen holes in the after­
noon in an agreeable foursome playing
within your range, both medal and
match play and with bets large enough
to make the game interesting but not
to force you to hypothecate the rent
money, with a long session at the 19th
hole consisting of Scotch and the post­
mortem of the day’s play is, in my
opinion, a healthy and enjoyable man­
ner of recuperating the waste tissues
worn to a frazzle by the mental strain,
the nervous tension and the moral
temerity which are the results of
twelve months’ of bond selling.
“ The outstanding advantage of this
manner of relaxation is to my mind to
be found in the fact that golf is so
absorbing that it is impossible during
the day to worry about the bonds you
have sold that don’t look so sweet in
the present market and that golf con­
tains sufficient physical exercise to

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Federal Reserve Bank of St. Louis

vation of 10,000 feet in the Gros Ventre
Range.
“I could recite hundreds of most
pleasant experiences on these trips. I
E.
H. Cravens, cashier Clay County am merely complying with your re­
quest, though. Opinions differ, but I
State Bank,
Excelsior
Springs,
Mo.,
says: “For the last twelve years I was firmly convinced years ago if a
have been spending my vacations in man had a rugged enough constitution
some isolated remote part of the coun­ to stand up under outdoor life, moun­
try, just as far away from human be­ tain stream fishing and some of the
ings and civilization as I could pos­ pleasant hardships that go wfith it,
sibly get. To do this a person must there is but one vacation for an inside
love the great open spaces. Fishing man and that is the outdoors.
“This year I am contemplating a trip,
and hunting are my hobbies. For a
number of years I spent at least two in fact have it partially arranged, up
weeks fishing in some of the south into Ontario, Canada, on Antoine Creek.
Missouri or Arkansas streams, but in I am anticipating some of the best
recent years, since there has been such trout fishing I have ever had.”
W . H. Powell, president T h e Citizens
an influx of vacationists in the Ozark
region, which, by the way, I think is National Bank, Sedalia, Mo., says: “ I
one of the most beautiful countries, in cannot imagine a more ideal vacation
the United States, I have been seeking for a banker during the summer
other fields. For the past three years months than a trip to Steamboat
I have been fishing the Platte River Springs in the northwest part of Colo­
in Wyoming and the streams in Jack- rado. The scenery is beautiful, the
son Hole Country and the Hoback climate all that could be desired, and
Country south and west of Yellowstone. good fishing in and around the springs.
I have been headquartering in a little They have all kinds of mineral water
town over a hundred miles from the for drinking and bathing, and I have
railroad, and to get virgin fishing we never found any place more delightful
(Continued on page 16)
had to pack into a place with an ele­

make you so darned tired at night that
you can sleep through the hours usual­
ly spent in worry about these same se­
curities.”

A Favorite Spot for American Tourists

Sulgrave Manor, in England, the birthplace of George Washington
—Photograph courtesy Thomas Coo^ S Son

Mid-Continent Banker

12

“IT ”—the Psychology of Success
SYCHOLOGY—from psyche, soul,
and logos, treatise—the science of
the soul.
“It”—Elinor Glyn so names that mys­
terious something that enters the souls
of men and gives them that certain
“know how” and courage to overcome
difficulties and domesticate success,
which often, like fortune, “when pur­
sued, ever evades you, but when scorned
is plucking at your sleeve.”

P

The motion picture, “It,” taken from
the book of Elinor Glyn, greatly im­
pressed me, that there was more in
this than perhaps the author intended
or the audience realized: called des­
tiny by Napoleon, heritage by Welling­
ton, courage by John Paul Jones, who,
when told that he must surrender, as
his ship was on fire and sinking, and
his ammunition exhausted, answered,
“I have just begun to fight” ; named
efficiency of training by “ You-may-firewhen-ready” Dewey, the natural birth­
right of a courageous American gentle­
man for Admiral Winfield Scott Schley,
it was born in George Washington
through a long line of ancestors—he
the exponent of life, liberty and the
unobstructed pursuit of happiness. Lin­
coln, ‘God’s man,” like Moses, “the
law giver,” was a mighty instrument
of God, “the spokesman of freedom
and the arouser of public conscious­
ness,” a mystic, who “belongs to the
Ages.”
Of the many famed men that I have
heard speak on Lincoln, I think that
General Pershing in a Lincoln address
at Springfield most fully understood
the power that guided Mr. Lincoln; and
I then understood why the American
army under Pershing was invincible.
After the speech, I thought I would
test my intuition, and as the great
crowd filed by to grasp his hand and
his mind was fully occupied, I said,
“General Pershing, ‘In the name of
God, Amen’.” He was engaged in con­
versation with the Governor at the
time, but in a flash he came to atten­
tion, clicking his heels, and saluted
the name of the “Grand Commander”
of all, as did Washington.
I would that I had the power of Mr.
Wilson to use language, of which he
was one of the greatest masters. As I
write, this subject grows, so that I am
about swamped with material and illus­
trations.
I was going to mention “Buffalo Bill”
as an exhibit of a diploma from the
university of the rivers, mountains and
plains, who now sleeps upon the breast
of the mountain overlooking Denver;

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

B y Miller Weir

Manager Bank Department Equitable
Bond and Mortgage Company,
Chicago
and this brings to my mind another
“big brother” of the East and West,
Theodore Roosevelt. When he was in
flower, and Washington did obeisance,
one of the Roosevelt boys—Quentin, as
I remember, who later fell in action
across the water, and his father said,
“Let him sleep where he fell”—was
sent to the public school to become
Americanized. The teacher not know­
ing him, asked him what his father
did. His answer was, “ My father is
‘It’.” Truly spoken; certainly he was
E d ito r’s Note: T h is artic le was
w ritte n before Captain Lindbergh
became the w o r l d ’s “ It,” and was
reviewed before it w e n t to press.
Un der the inspiration of the sub­
je ct the re v ie w e r w rite s me as
fo I low's:
“ Nothing so appeals to the im­
agination of the crowd as e xtr aor­
d in ary
success. T h e
possessor
of “ It,” as demonstrated by the
greatest and daring young a i r ­
man, Lindbergh, instantly catches
the attention and adm iration of
all man kind. T h a t is w h a t makes
“ I t ” so vital and so w on de rfu l—
an indefinable, intangible some­
thing which exalts its possessor.
It may be possessed by a Prince
or a peasant, but w h e r e v e r it is
t h a t man is anointed and set
apart as God’s elect.”

a charter member of the Grand Lodge
of “Its.”
Mussolini is a mark of modern suc­
cessful “It,” an idealistic dictator who
has brought order, peace and obedience
to law, to Italy, out of the chaotic
crash of a liberty sick, God defying
Europe—self determination has in
places about ruined this good old
world.
May William Hale Thompson bring
peace and obediance to law to Chicago.
He is a master of crowd psychology
and deals in only large, live issues.
The populace shout approval of what
he is going to say before he speaks. A
Grand Master of the Grand Lodge of
political success. His crest should be
“It” ; arms, a Big Bertha, with a lion
couchant; motto,
Perpetual popular populace;
America, Chicago, ace.
which, freely translated, means, “ The
people like Thompson and Bill likes

the people; Chicago, first in America.”
Then I think of Mr. Coolidge. The
mysterious force surely abides with
President Coolidge, the undefeatable,
.silent and observant; he awaits the
psychic intuition that shapes his fu­
ture destiny and that of the nation.
Like Woodrow Wilson, he appears to
be an agent of destiny at the time of
a great national need for a wise guid­
ing, clear mind and a strong hand.
Consider the law and Illinois poli­
tics: the history of the political suc­
cess of former Senator J. Hamilton
Lewis and the come-back of former
Governor, Senator Deneen; Chicago’s
Harrisons and Oglesby, the elder, who
was Illinois’ father of eloquence—com­
ing from Kentucky. His mantle of
moving speech seems to have fallen
upon the shoulders of Attorney General
Carlstrom. This is not the first time
this mantle of convincing oratory has
hung in the Attorney General’s office.
Attorney General Hamlin, dead these
many years, wore it up and down the
state, an inspiration to Illinois. All
these men knew the magic of success
and of crowd psychology.
TV 7 HEN I began this article I in' ™ tended to write upon the sub­
ject of successful Illinois bankers, but
I have drifted out onto an ocean of
“who is who.” When I begin to write
of successful bankers of Illinois and
at large, I think of what Senator Kessinger says in his Mid-West Review,
“ It takes three generations to make a
gentleman and only three drinks to
spoil the job.” I suppose he means that
one drink is all right and two might
go but that three is too much. So I
must cut this article with only a limited
per cent of the material for my
psychological argument applied.
General Dawes, banker, and a “politi­
cal remarkable” ; without an effort on
his part the apples of success just fell
into his lap. I have heard him tell of
the early days, when the three aces of
astounding success, Dawes, Bryan and
Pershing needing the money, took their
regular meals on stools at a lunch
counter in Lincoln, Nebraska.
I can only touch some high spots on
magic bankers. Among the first are
the Secretary of the Treasury, Mellon;
the Morgans, father and son; the Rey­
nolds, the Forgans, Ralph Van Vechten, Leroy Goddard from Egypt, the
Foremans, the Greenebaums, and a
hundred other successful Chicago bank­
ers, all forceful, marked men, as Ford
and Edison. Every city or village has
its member or members. In a city of
success like Chicago, some day to be

13

St. Louis, July, 1927

JU L IU S K E S S L E R , Pre sid e n t .
G E O . W. R I N K E L , V i c e P r e s i d e n t .
H E N R Y D I L S C H N E I D E R . V ic e P
JOH N B .G H IO , C

a s h ie r

F L .W U E S T ,As s is t a

n t

¡Stette Jòcmk of iPeUston

CAPITAL,SURPLUS AND PROFIT

W E L L S T O N , MO.

resid en t

$ 2 0 0,0 0 0 .0 0

.

6200

C a sh ier

EASTON AVENUE

St.. Louis, Mo.

June ICth, 1927.

Mr. G. P. Lewis,
M illlk in National Bank,
Decatur, 111.
Dear S ir:
The successful results accomplished in
in terior equipment and decorating just completed
inspires th is le tt e r in behalf of the J . H. Wise
asked me to write you, in which we wish to voice

the additions, remodeling,
in our "banking quarters,
Company, In c. who have
our entire s a tis fa c tio n .

The co-operation of the Company, with the careful attention given
a l l matters, was esp ecia lly commendable. We were relieved of a l l the an­
ticip ated worry because of the complicated nature of our alte ra tio n work.
The gratifyin g solution of our problem has already resulted in a large in­
crease of business, wholly ju stify in g the expenditure of $8 0 ,0 0 0 , and the
increased f a c i l i t i e s as planned by the Company's engineers enables us to
handle th is business without any increase in our working fo r c e .
The entire project was placed in the Company's hands, to give us
a complete and finished jo b . We le f t everything to them abiding by th eir
suggestions, and were not disappointed in so doing.
The favorable comments of our Directors and customers bespeaks
th eir appreciation of th eir e ffo r ts in providing one of the most beautiful
banking rooms in th is section .
We cannot speak too highly of th is Company's in te g r ity , sin cerity
of purpose and a b ility as Bank B uilders.
Most

This enthusiastic letter from a satisfied client shows the high quality of the work
and service of this Company. Such complete and satisfying service is available for
the building and remodeling of YOUR BANK.
Further information as to our methods of co-operation will be furnished gladly
without obligation. Write:

THE J. H. WISE COMPANY, INC.
ARCHITECTS - ENGINEERS , CONSTRUCTORS
(ESTABLISHED 1899)

SYNDICATE TRUST BUILDING


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Federal Reserve Bank of St. Louis

ST. LOUIS, MO

Mid-Continent Banker

14

Past Grand of psychology as he was
of the Elks; Mr. Wolford and his new
hotel, another who is a part of Dan­
ville’s history, and so on, to Quincy,
East St. Louis, St. Louis, Louisville,
Kansas City, Denver and all points
west, world without end; to the Pan­
handle of Texas and Amarillo, where
lives W. H. Fuqua, President of the
First National Bank, with deposits of
about five million and carrying about
two million in cash and on deposit with
other banks.
“ Sitting pretty,” he is,
estimated to be worth several millions;
a strong bank and a successful banker.

the greatest city of the world, they
are countless in all professions.
My mind runs out, East, West, North
and South: to Springfield and the
Bunns, the Ridgelys and the Keys,
the old timers, Ed Payne, Ed Hall and
Howard Weber; to Jacksonville, the
Dunlaps, Russels, Elliotts and the Far­
rells: to Decatur, Mr. Millikin, long
since passed on, but his works never
forgotten, Mr. Gorin, who has time for
a chat and a good cigar, Mr. Meriweather, who does not belie or deny
his name and honorable ancestry, even
on a dour day, and A. M. Kenney of
the end bank in Decatur’s National
Bank row.

Amarillo is at the top of the plains,
where Fuqua is now the financal overlord of this once untilled, dry country.
Years ago it was said that it took about

In Danville, I think Uncle Joe Can­
non, “ the only,” now “called,” a true

To
JBocal B
‘ an ks
Through The Equitable
Trust Company o f New
York, you may supplement
your service to customers
by Equitable cooperation.

[1]
The Equitable is a lead­
ing foreign exchange bank
and its services in this field
are readily available for
facilitating your customers’
transactions.
[

2]

Through its own offices
in London and Paris, its
s u b s id ia r y ’ s o ff ic e s in
Hongkong and Shanghai
and its more than n ,o o o
correspondents, The Equi­
table can obtain extensive
foreign trade and credit in­
formation promptly.

[3 ]
The home office o f The
Equitable in New York
provides a constant con­
tact with the principal se­
curities m arkets o f the
world, permitting efficient
execution o f orders and ob­
taining o f quotations.

T

recently e?îtered its 57th y ea r
w e n t y - f iv e
years ago The Equitable
had 23 officers and employees and total
resources of approximately $7,500,000. To­
day it has more than 2,100 officers and em­
ployees, and its resources total more than
$475,000,000.

T

Thirteen years ago its foreign transactions
were handled by a subdivision of four men.
Today its foreign department is a major divi­
sion of 352 officers and employees and more
than 11,000 correspondents.
Ten years ago the bulk of its banking busi­
ness was of a purely local nature. Today it is
a modern commercial bank, dealing in na­
tional and international credits. In less than
a generation The Equitable has grown from a
small company to be one of the world’s largest
and strongest financial institutions, and one
of the best-known American banks abroad.

T'A EQUITABLE

[4 ]
Our E. T. C. Letters o f
Credit are available to Lo­
cal Banks. A bank may
issue these letters in its
own name and its custom­
ers will receive the same
well-rounded foreign service
extended to our own cus­
tomers carrying E. T . C.
Credits.

E q u it a b l e

he

tr u st c o m p a n y
OF

37 W A L L S T R E E T
C

h ic a g o :

105 South La Salle Street
Telephone: State 8312

D is t r ic t R e p r e s e n t a t iv e s
B A L T IM O R E • P H IL A D E L P H IA • SA N F R A N C IS C O

F o r e ig n O f f i c e s :

Banks contemplating in­
ternational business transac­
tions of any kind are invited
to communicate with our lo­
cal representative.


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Federal Reserve Bank of St. Louis

N E W YORK

Lo n d o n

•

p a r is

• ATLANTA

• Me x ic o

c it y

37 Wall St., New York, connected by
direct private wire with Chicago office.

H O M E O F F IC E :

Total resources more than $475,000,000

© E.

T . C .o f N . Y .,IQ 27

two acres to graze a steer and that in
places rain was seen so seldom that in
the kindergartens, the teachers used
colander or strainer to illustrate rain.
This country was even without dew,
and was like “ Salome where she
danced,” and the hull frog that had
never seen water, with throat so dry
that he could not croak above a whisp­
er. The Saturday Evening Post is au­
thority for this last.
At that time, back about 1900, I was
National Bank Examiner for North­
western Texas, New Mexico and Ari­
zona. Mr. Fuqua offered me a half
interest in his future prospects. I could
not see much there but a railroad
crossing the endless plains. It looked
to me like taking a very long chance,
so I declined. Mr. Fuqua never quite
forgave me and for years has watched
for me in the hotel lobby at conven­
tions of the American Bankers Asso­
ciation to tell them and the world the
story.
He had the faith and the diaphragm
to stay by the job and he now has the
world where he wants it and I am in­
formed that the land blooms like a
garden. I am now trying to square my­
self with Fuqua. This is just an in­
stance of the ever-occurring opportuni­
ties in life, which we are unable to re­
cognize and profit by simply because
we have not that magic “It” in neces­
sary volume. Amarillo is now a city
of thousands, and it sometimes rains
there.
O “strike when the iron is hot” and
to “play ball” means the applica­
tion of this form of psychology. “Al”
Smith, “Babe” Ruth, “ Red” Grange
and “Lou” Emerson, the vote getter
and banker from Mt. Vernon, are all
in this approved class; and so is Gov­
ernor Len Small, also a banker of dis­
tinction at Kankakee, who never turned
his back on a “ball” nor a friend.
Queen Victoria, memory’s premier
queen, was first a good woman and
then a queen. She ruled so long and
successfully through her God given
gift of great love for the world and her
subjects.
With the exception of Moses, John
Paul Jones, Washington, Queen Vic­
toria and a few others, I have person­
ally known all of the “Its” above men­
tioned.
Forsooth, “the world’s a stage”—
and the foregoing is but passing men­
tion of some few players who have
made “ their exits and their entrances,”
or who are still “ playing their many
parts”—they having such commanding
characteristics as to make them dis­
tinctive among their fellow men in
their several fields of action.

T

St. Louis, July, 1927

15

H ow an Acorn Sprouted in a Small Bank
In Lytton, Iowa, a typical cornfield
hamlet on a stub line of the Milwaukee
railroad, is an institution which is one
of the most curious and extraordinary
in the Middle West.
Thirty years ago the site of Lytton
was a farm. Then came the railroad,
some elevators, stores, a bank. Eleven
years ago a second bank was founded
by a boyish clerk from Green County.
It was the Lytton Savings Bank, and its
president and founder was D. R. Wessling, aged 28.
Five years ago, an original and
unique publicity program, which had

D. R. Wessling

been invented at the Lytton Savings
Bank and had been used there with
surprising success, was, rather, timidly,
put upon the market.
Other Iowa hanks tried it. They got
results—such results as they had never
dreamed possible.
Today the unique “Wessling way to
the patron’s heart” is employed by
bankers from the Atlantic to the Pa­
cific and from Canada to the Gulf.
And the power house, which sends
the current of ideas leaping across the
continent, is still at Lytton, Iowa, the
hamlet amid the cornfields.
Here a battalion of young men—
clean, bright-eyed chaps of eighteen to
twenty-five—work amid the hum of au­
tomatic and semi-automatic machinery.
The Wessling “boys” call their power
house the “Idea Factory.” Row upon
row of dark green steel filing cabinets
mount to the ceiling—a mine of infor­
mation about every section in the
United States. In other departments
work older men.

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Federal Reserve Bank of St. Louis

The field men, of whom Mr. Wessling
is the active and personal leader, are
men of ripe experience. They are not
mere salesmen. They are men trained
to understand bankers’ problems and to
weigh and appreciate peculiar local
conditions.
An idea which grows into nation­
wide organization in five years must
have merit, must have vitality. Such
recognition is not accidental. It must
be deserved. The Wessling idea is sim­
ple—as all great ideas are. It was

born out of the actual need of the
Lytton Savings Bank.
The problem needing solution was
this: How can one combine the econ­
omy of modern volume production of
artistic publicity with the indispensible
power of the intimate personal touch?
Mr. Wessling solved the problem—
solved it not as an outsider, but as a
banker himself. The solution, coming
as it did out of actual banking expe­
rience, is unique and simple, yet it has

Mid-Continent Banker

16

The Oldest Life Insurance
Company in the West
This ad is intended for men
who have demonstrated their
ability as Life Insurance Sales­
men.
Approximately seventy-five per
cent of the business done today
is based on confidence.
This has been established for
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the past sixty-nine years, low net
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service to policyholders and com­
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that compare favorably with the
best of Life Insurance companies.
These facts are the biggest as­
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a subtle grip about it that is not easy
to define in words. Whatever that ele­
ment of vitality may be, the Wessling
program works—works just as well in
North Carolina and Michigan as in
Kansas or Oregon.
The power house of ideas at Lytton
is adding new dynamos every month
to care for the rapidly increasing
“load,” from the east the west, the
north, and the south. And in those
tall rows of dark green steel filing cab­
inets is accumulating a mass of ma­
terial, carefully indexed, which should
prepare Wessling Service to serve the
bankers of the nation still more effi­
ciently in the years ahead.

W here I Take M y Vacation
and W h y
(Continued from page 11)
during the summer months.
“For a fall trip during October or
November, I could imagine nothing
more pleasant than a congenial party
to spend a few weeks camping and fish­
ing down on some of the beautiful
streams in the Ozarks in southern Mis­
souri. I have gone there every year
for twenty years, and do not know of
anything that is. more restful and in­
teresting, and believe that the people
are just beginning to realize the beau­
ties and delights of our own Ozark
country.”

M ake Us Prove These Statements

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3640 Washington Bind.
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Base 27 x 33

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all. Inside measurements, money
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inches

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Estimated cost new $1,200.00.

Price, F. O. B.
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$ 650.00

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BANK OF COMMERCE &
TRUST COMPANY
MANSFIELD,

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Federal Reserve Bank of St. Louis

LOUISIANA

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St. Louis, July, 1927

17

The Experiences of Others
By TH E LEG AL E D IT O R

ROM time to time there are many
interesting decisions rendered by
our courts which should be care­
fully read and considered by banks and
financial institutions dealing in com­
mercial paper. These decisions reflect
the experiences of others, and they are
sometimes very helpful to us. A few of
the following decisions will indicate
the consequences of a failure to take
notice of these decisions and of the
laws governing commercial paper trans­
actions.

F

A bank purchased a certa in nego­
tiable promissory note fro m a person
who was a s tranger to the bank, a t a
ve ry large discount.
It first took the


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Federal Reserve Bank of St. Louis

tence in a note as a part thereof which
modifies these elements is likely to de­
stroy the negotiable character of the
note and cause trouble generally. Thus,

H arry F uakck’ s

N ew Travel Book FREE
T o p u r c h a se r s o f A B A

A bank should be careful about re­
leasing the endorser of a note or other
commercial paper, or about releasing
any person who is secondarily liable
for the paym ent of such paper. It will

O rd in a r ily
a corporation
is only
authorized to conduct such business
and to perform such acts as are a uthor­
ized by its c h a rte r or articles of incor­
poration and as a rule a corporation
can not act as surety or guarantor,

A negotiable promissory note is said
to be an unconditional w ritte n promise
to pay a sum certa in in money unto a
definite person at a fixed or d ete rm in ­
able future date. Any clause or sen­

purchased a note endorsed for accom­
modation by a corporation, only to find
out in a subsequent action against the
corporation that the corporation in
question had no power to lend its credit
in this manner and that the corporate
endorser could not be held on the note.
Such an act is held to be ultra vires, or

precaution of determining the financial
ability of the maker, who was unknown
to the bank, but carelessly refrained
from any inquiry of the payee or other
persons as to the circumstances under
which the note was given and as to the
consideration thereof.
It developed
that the maker of the note had a good
defense against the payee which the
bank might have discovered upon rea­
sonable inquiry which it failed to make.
The court held that because of this
carelessness upon the part of the bank
in purchasing this note, that it was not
a holder in due course and, therefore,
did not take the note free from de­
fenses of the maker against the payee.

be remembered that the release of one
endorser automatically releases all sub­
sequent endorsers, for the reason that
endorsers are liable upon commercial
paper in the order of their endorse­
ment. In a certain case a bank brought
suit against one of the endorsers on a
note. It appeared that in consideration
of the sum of Two Hundred (200.00)
Dollars, the bank had previously re­
leased the first ^endorser. The reason
for so doing does not appear, but this
release operated as a release for all
subsequent endorsers. If this were not
true the subsequent endorsers would
be deprived of their right of action
against the prior endorsers. Owing to
the release it was held that the bank
could not recover against the second
endorser.

beyond the powers of a corporation.
It will be noted that the corporation
endorsed merely for accommodation
and if its assets were liable in a case
of this kind the stockholders of the
company would pay a note for which
they received no benefit.

p artic u la rly so w here it is not inter­
ested in the transaction, for to do so
is merely to pledge the corporate assets
to answer for the default of such other
person or corporation, and in this
method the assets of the corporation
are dissipated to the prejudices of the
stockholders. In a certain case a bank

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'"pHIS advertisement will appear during July in the Saturday
Evening Post, Literary Digest, Life, Time, New Yorker, Vogue,
National Geographic, Harpers, Atlantic Monthly, Review o f
Reviews, Asia, Travel, Country Life, American Hebrew, American
Legion Monthly and Army & Navy Journal.
It will be seen by nearly 7,000,000 families, including a large
number o f your depositors.
For the utmost safety and convenience in traveling advise your
customers to carry A'B‘A Certified Cheques. If they are going abroad,
give them a complimentary copy o f “ All About Going Abroad’’
when they buy their cheques.

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BANKERS
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Mid-Continent Banker

18

in a certain note containing this
waiver: “All benefits of the Statute of
Limitations,” it was held that this ab­
solute and unlimited waiver of the
statute was invalid. The result of this
decision being that the maker could
plead the statute of limitations as a de­
fense in a suit on this note, yet the
persons purchasing the note relied upon
this waiver of this defense.

For Check Collection
The Country Over
By train and plane, in

O rd in a r ily w he re collateral is pledged
to secure the payments of a p articu lar
note or obligation it cannot be applied
to the paym ent of any other note or
indebtedness.
Therefore, it is impor­

tant to see that a collateral note ex­
pressly provides that the collateral in
question may be held as. collateral upon
any indebtedness of the maker or
owner of such collateral. Where such
a clause is included in a collateral
note it should be clear and without
qualification. A certain note contained
the following clause: “All collateral
held by said bank to secure this note

a good day’s work, this
institution received and
dispatched over 160,000
o u t-o f-to w n checks

Questions of interest to bankers
are discussed by the Legal Editor
each month. Any subscriber has
the privilege of w ritin g fo r infor­
mation and advice on legal sub­
jects, and w ill receive a direct re­
ply fro m our attorney, w ith ou t fee
or expense. A brief of any subject
involving research in a complete
law libra ry w ill be furnished f o r
$1C.
In w rit in g for inform ation,
kindly inclose a 2-cent stamp for
reply, and address “ Legal Editor,
Mid-Continent Banker, 408 Olive
Street, St. Louis.”

TheCONTINENTAL and
COMMERCIAL


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Federal Reserve Bank of St. Louis

BANKS
CHICAGO

Resources H

alf a

b il l io n

-

a n d

M

ore

may, after the payment of this note, be
applied as herein provided to the pay­
ment of any other obligation or indebt­
edness, due by the maker hereof to
said bank.” The note secured by this
collateral was paid at maturity and the
bank sought to apply the collateral in
payment of another debt of the maker
to the bank, but the court construed
the clause above referred to, to mean
that the collateral could be applied to
other debts only in the event that it
was first applied to the note which it
secured, leaving a surplus to be applied
on other claims. This decision merely
indicates the consequences which may
befall a bank if it is careless in the
preparation of its note or is careless
in the use of forms which are not care­
fully prepared and considered by
counsel. If the note had provided that
the collateral might be applied to any
other debt owing to the bank, the re­
sult of this litigation would have been
otherwise and the bank would have
been protected by this collateral.

St. Louis, July, 1927

19

Illinois Bankers Meet at Danville
HE thirty-seventh annual conven­
tion of the Illinois Bankers Asso­
ciation held at Danville June 23
and 24, easily ranks as one of the best
in the history of the association. The
attendance was good, the program ex­
cellent and the entertainment provided
by Danville bankers was thoroughly
enjoyed.
The report of Secretary M. A. Graettin g e r of Chicago showed that 1,720
banks in the state are active members
of this association. Twenty-three banks
in other states are members too,
while bond houses and others inter­
ested bring the total membership up
to 1,811 at the close of this year.
One very successful department of
work being done by the Organization is
their campaign against the bank rob­
bers who were causing so much alarm
two or three years ago. During the
first five months of 1927 there was only
one robbery in the state. The lone
robber was quickly surrounded by the
town guard, and when he saw he was
caught killed himself and the stolen
money was again in the bank in a few
minutes.

T

the vast sum of money obtained in the
past year by the forgers and other
crooks working along this line. If we
can save this money for a single year
we can build 18 more Woolworth Build­
ings.” He told how the crook plays
his game. “ They usually work in
gangs of three,” he said.
“ The ‘Lifter up’ is the first man on
the job. His part of the game is to
obtain samples of good checks, with
real signatures. They do this in vari­
ous ways,” and he displayed checks
from some of the largest concerns in
the country and told how he obtained
them, just to prove how easy it is. for

N ew President I. B . A .

Senator
H ill as

A.

S.

Cuthbertson

of

Bu nker

he talked of the efforts being
made at Springfield to give the people
of the state real protection from crim­
inals. “We can travel to New York
in 20 hours, or to California in three
days. We can reach London by tele­
phone in a few minutes, but we are
slower than ever before in getting jus­
tice through our courts.”
Chas. A. Ewing of Decatur held the
closest attention of the convention as
he spoke on “The Banker’s Part in Our
Agricultural Crisis.”
“Two hundred million dollars—that
may not sound like much money if you
say it fast, said W m . L. B arn hart, resi­
dent vice-president
of
the
National
Sure ty Company of New York,
“but

when you remember that the famous
Woolworth Building recently sold for
eleven millions you begin to realize

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Federal Reserve Bank of St. Louis

ation, said: “We must encourage men
in every walk of life to co-operate with
their bankers, more freely.
We must
help them all to understand correct
banking methods and good business
methods. To build bigger banks we
must help to build bigger successes for
everyone doing business with the
banks.”
Chas. H. Meyer, chief examiner of
banks for the Chicago Clearing House,

said: “Not one single dollar of de­
posits has been lost, in the past 21
years by patrons of banks belonging to
the Chicago Clearing House. ‘The Chi­
cago Plan,’ as it is called, has been
adopted by other cities with equal suc­
cess. It is the best plan yet found to
prevent losses of depositors’ money.”
“ Banking is really a new thing,” said
“When you
compare it with the history of other
business it is, young. Most of the
banking systems of Europe are less
than 100 years old. The great Bank
of France started in Napoleon’s time
and the Bank of England is about 250
years old.
H a rla n Read of St. Louis.

President W a l t e r B. C raw ford of W e s t
F ra n k f o r t, president of the W e s t F r a n k ­
fort Bank & T ru s t Co., reviewed the

progress of the bankers association in
recent years and referred to plans for
the future. But he insisted the real
credit for the good work being done
belongs to the 1,800 banks in the state
that have been loyal and constant in
their co-operation in recent years.
“Without such team work from you
bankers we could do nothing,” he said.
“ It takes us three years to hang a
murderer and two years to send a gun­
man to the penitentiary,” said State

W a l t e r Swengel, the new director of
public relations for the bankers associ­

“You bankers have your faults,” said
Mr. Read, “but I will mention only one
of them. You do not compel the young
people to become thrifty. The old man
as he goes to the poor house may well
blame you because you did not hit him
over the head with a club and take 10
per cent of his wages to invest for his
old age. He has just cause for com­
plaint against you.”

J. M. Appel
President, State Bank of Highland Park

the crook to get his samples so his for­
geries will be perfect.
“ The ‘Scratcher’ comes next. He is
usually the ‘brains’ of the gang. He is
the clever man with the pen. He turns
out the checks, and he is an expert in
such work. In one case his checks
were so cleverly made the officer of
the company whose funds he was steal­
ing could not pick the real from the
false checks. The scratcher seldom
appears in public and he is, the one
most difficult to arrest.
“Last of all comes the ‘Layer Down’
for he is the man who takes the bad
checks to the bank or to some store
and gets the cash for them. He is the
clever, actor—he presents, himself as
the honest business man and works
his game in many ways.”

T he Chief of Securities Departm ent
of the Secretary of State, G. Gale Gil­
bert of Mt. Vernon, is thoroughly ac­

quainted with the laws of the state that
protect us against the “Blue Sky” sales­
man. “We will never know,” he said,
“ALL that has been saved for the peo­
ple of this state, but the records show
more than $600,000,000.00 of question­
able securities we have kept off the
market. Nearly three and a half bil­
lions in good investments have been
sold in this state in the past eight
years, with the approval of the secre­
tary of state. Over 700 brokers have
been investigated and approved dur­
ing the eight years since these laws
have been in force. Forty-six others
have applied for permit to sell their
stuff and have failed to pass the test.”
“ T he McFadden Act and Other M a t ­
ters,” was the subject announced for
the address by the president of the
Am eric an Bankers Association, M. A.
T r a y l o r of Chicago. He is also presi-

Mid-Continent Banker

20

“ ROLL of HONOIr U M S
1JN lLLlINUlo
It is an honor to be listed among the Honor Roll Ranks of
Illinois. It indicates that the bank has Surplus and Undivided
Profits equal to or greater than its capital!
Such distinction is accorded to the banks listed on this page.
By careful banking and sound management they have achieved
this enviable position.
These banks will be especially glad to handle any collections,
special credit reports or other business in their communities which
you may entrust to them.
Correspondence is invited.

City
Abington........

Bank

Capital

First National...................... _ ...$

75,000

Surplus
and Profits
$

175,000

Alexander....... ... Alexander S ta te ...................

25,000

50,000

Assumption... ... Illinois State............................

25,000

65,000

Beardstown... __First S ta te ...............................

10 0 ,0 0 0

180,000

Berwick........ ... Farmers S ta te ........................

30,000

35,000

Bloomington.. ...American S ta te ......................

10 0 ,0 0 0
10 0 ,0 0 0

336,000
255,000

125,000

175,000

Bloomington.. ... Corn Belt State......................
Canton............ ... Canton N a tio n al...................
Chapin........ ...Chapin State............................
Chicago.......... ...Central M fg. District..........
Chicago........... ...Cont. & Com. Tr. & Svg... ....

25,000

56,000

500,000

670,000

5,000,000

11,377,000

Chicago........... .....Drovers Tr. and S vg ...........

250,000

517,000

6,250,000

10,534,000

Chicago........... ...First N ation al........................ .... 12,500,000

17,956,000

Chicago.......... ...First T r. and S vg..... 4 ,......... ....
Chicago........... ...Foreman National................. ....

4,000,000

4,588,000

Chicago.......... ...Harris Tr. and S vg............. ... 3,000,000
Chicago.......... ...Illinois M erchants............... .... 15,000,000

4,874,000
35,231,000

Chicago..........

Northern Trust Co............. ...
Chicago........... ... State Bank of Chicago..... ...
Chicago.......... ...Union Trust Company...... ...
De Kalb.......... ...First N ation al........................

2 ,0 0 0 ,0 0 0

5,347,000

2,500,000

6,563,000

3,000,000

3,923,000
160,000

Downers Gr.

State Bank & Trust C o ....
Flora................ ...First National.......................

10 0 ,0 0 0
10 0 ,0 0 0
50,000

12 2 ,0 0 0
75,000
430,000

Freeport......... ...First National........................
Grand Ridge.. ...First National........................

150,000

Greenfield...... ... Farmers State........................
Joliet................ .....First National .....................
v Toliet National _________
Joliet...........

25,000
4 0 0 ,0 0 0

Joliet................ ...Joliet Trust and Savings Bank.

10 0 ,0 0 0

119,633

La S alle....
. La Salle National Bank....
Murphysboro ...City National ........................
M t. Vernon ... ....Third National ...................

200,000

330,000
62,000

25,000

150.000

50,000
125,000

33,000
30,000
950,000
650,000

20 0 ,0 0 0

25,000

45,000

10 0 ,0 0 0

105,000

Tiskilwa......... ... First S ta te ...... .....................
First National
Urbana...........

25,000

30,000

50.000

W arren........... ... State Bank..... .........................

75,000

60,000
95,000

New Athens... _State Bank of New Athens
Rushville State
Rushville


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Federal Reserve Bank of St. Louis

dent of the First National Bank of
Chicago.
The last minutes of the convention
were taken up by the election and in­
stallation of the new officers of the asr
sociation. The new president, Jacob
M. Appel, president of the State Bank
of Hig hland Park, accepted the gavel

with full appreciation of the honor con­
ferred upon him as well as the im­
portance of the work expected of him
in the year ahead.
The state officers as well as all of­
ficers of county and group organiza­
tions took luncheon with the members
of the new executive committee in the
banquet room of the Wolford Hotel.
They also elected for another year as
secretary M a r tin A. G ra e ttin g e r of Chi­
cago, who has already served more
than ten years in this office. Olive S.
Jennings of Chicago was re-elected as­
sistant secretary of the association.

First Trust and Savings Opens
Clark Street Entrance
The First Trust and Savings Bank,
Chicago, has opened its Clark street
entrance to its new section, providing
space for the savings, loan, real estate
loan departments and foreign travel
bureau, finished in bronze and white
marble, with indirect lighting.
This is the third operating unit
opened since the erection in 1925 of
the new Clark street building by the
First National and First Trust and
Savings Bank, the trust department
having been permanently located on the
fourth floor and the new vaults opened
earlier in this year.
The unification of the old Fort Dear­
born bank building with the First Na­
tional is progressing, and it is expected
that the entire project, involving more
than $7,000,000 in building and altera­
tions, will be completed early in 1928.
Gre enview Bank to Reopen
Soon Un der N e w Name.

Stockholders of the Marbold State
Bank of Greenview, Illinois, at spe­
cial meeting held at the high school
gymnasium, elected new directors to
take over the management of the re­
organized bank and authorized the
adoption of the new title, Greenview
State Bank.
Joseph Barnett, Edward Dencker,
John Evers, Ernest Tripp and Harry J.
Wernsing were elected directors to
serve for the balance of the fiscal year.
In the organization of the board, Harry
J. Wernsing was chosen as president;
Ernest Tripp, as vice-president; Paul
V. Deams as cashier, and H. H.
Mathews as. assistant cashier, all of
whom will be active in the management
of the bank. Leonard J. Dinkel was
retained as bookkeeper.

21

St. Louis, July, 1.927
fected. Guy Huston, former president
of the bank, has disposed of a ma­
jority of his stock to R. L. Cutler,
Charles K. Peck, Shelby C. Spielman,
S. M. Fra nk la n d
Glennon Argenbright and J. E. Hus­
Officer W e s te rn Cook County.
ton, and has resigned as president of
S. M. Frankland, vice-president and the bank and from the board of di­
cashier of the Argo State Bank, was
rectors. J. E. Huston resigned as viceelected vice-president of the Western
president of the bank, and the new
Cook County Bankers Federation at the
officers of the bank are all residents of
recent annual meeting at the Oak Park
B'landisville who are actively engaged
Arms Hotel. R. W. Teeter of the Ber­
in the management of this institution.
wyn State Bank was elected president.
Following are the directors of the
It was. also ladies’ night and among
bank:
Glennon Argenbright, Isaac
those present from Argo were Mr. and
Argenbright, Russell L. Cutler, Silas J.
Mrs. Frankland, Mr. and Mrs. M. S.
Grigsby, Charles N. Irish, Eben N.
Lambert, Mr. and Mrs. W. G. Pokorny
Irish, George B. Huston, J. E. Huston,
and Mr. and Mrs. C. L. Genesen.
Charles K. Peck and Shelby C. Spielman.
G reenville B a nk e r in
The directors have met and elected
St. Louis Land Bank.
G.
B. Hoiles, well-known Greenville the following officers: Russell L. Cut­
banker, is in St. Louis to assist D. M. ler, president; George B. Huston, viceHardy, secretary of the St. Louis Joint president; Eben N. Irish, vice-presi­
Stock Land Bank for an indefinite time. dent; Charles K. Peck, cashier; Shelby
Mr. Hoiles has had much experience C. Spielman, assistant cashier, and
in this work and was called upon to Ruty York, assistant cashier.
help when certain officials of the St.
E lm e r A. Borg Has
Louis Land Bank were required to de­
Resigned a t Bank.
vote their attention to reorganization
After five years at the Yocum Bank
of the Kansas City Land Bank.
in Galva, Elmer A. Borg resigned his
position. His plans for the future are
Clayton Banks
indefinite and it may be that he will
In Merger.
The Bartlett and Wallace State Bank continue in Galva or he may decide to
and the Clayton Exchange Bank of locate elsewhere.
Clayton have been merged and will con­
tinue under the former name. James Z im m e r m a n Heads
M ontg om ery Asssociation.
Moffett, president of the former, will
H.
H. Zimmerman of Harvel was re­
retain that position, and Fred A. Wever
elected chairman of the Montgomery
of the Exchange Bank will be cashier.
County Bankers Association at the an­
nual meeting held at the Hillsboro
Guy Huston Sells
Country Club. This is the tenth con­
Interests in Huston Banking Co.
Recently a reorganization of the di­ secutive time Mr. Zimmerman has been
rectors and officers in the Huston Bank­ thus honored.
Ei. A. Murray, cashier of the State
ing Company at Blandinsville was ef­

Illinois No t e s

What Are
You Going
to Do
To-night
?

•

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Insurance and make
some extra money”

If You Want
to Make M on ey Just Mail the
Coupon

In Nashville—
m

'^ T h e B e s t B a n k

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with the warmth that cordial human
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The American is such a bank and, as
such, invites your business.
Cj) cAnother reason why (c)
W you should bank here (p
" A Greater Bank for Greater Naslwille”

^A merican B anks

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Federal Reserve Bank of St. Louis

ABRAHAM LINCOLN LIFE
INSURANCE COMPANY
H . B. H IL L , President
F. M . F E F F E R
V ice-P residen t and A g e n cy D irector

Home Office

Springfield, Illinois

A brah am Lincoln Life Ins. Co.
Springfield, Illinois
Gentlemen :
Kindly send me information regard­
ing your plan for bank employees:

Name --------------------------------------- --------------------- Bank- -------------------------------- ---------------------------Town---------------------------------------------------------------

99

Mid-Continent Banker

Bank of Panama, was elected vicepresident, and Elmer Truitt of Nokomis
was elected secretary. Senator A. S.
Cuthbertson of Bunker Hill, and At­
torney Thomas Williamson of Edwardsville, former United States District At­
torney, were the speakers.
Findla y Banks
Are Merged.

The First National Bank and the
Farmers’ State Bank of Findlay have
consolidated, and in the future will
operate as one institution. The new
bank will be known as the First Na­
tional.
John Cribbet was named president
of the new institution, the other officers
being: Vice-president, H. C. Atkinson;
cashier, C. A. Askins; assistant cash­
ier, Miss Mabelle Melcher; bookkeeper,
Miss Ursula Shuck. Directors are: A.
C. Atkinson, John Cribbet, J. E. Dazey,

William C. Keilman, S. D. Parr, E. M.
Vennum and W. W. Younger.
N e w President Hancock
County National Bank.

At a meeting of the board of directors
of the Hancock County National Bank
of Carthage, Fritz J. Reu, until now
cashier of the State Bank at Burnside,
was elected president of the Hancock
County National Bank.
Mr. Reu lived in Pilot Grove town­
ship and attended the schools there.
For seven years he taught school in
this county. In 1907 he was elected
assistant cashier of the Basco bank and
remained there until 1918 when he be­
came cashier of the State Bank at
Burnside.
Dan G. Stiles Assumes
Post W ith Na tional Bank.

Changes in the personnel of the First

National Bank of Wilmette went into
effect on June 1 by Dan G Stiles as
suming his duties as vice-president and
director.
The official staff of the First Na­
tional Bank consists of the following:
E. B. Knudtson, president; C. D. Mas­
ters, vice-president; Dan G. Stiles, vicepresident; F. A. Andrew, cashier, and
N. A. Schwall, assistant cashier.
Death of
H e nry F. Gehant.

Henry F. Gehant, founder and presi­
dent of H. F. Gehant Banking Co., Inc.,
died at his home in West Brooklyn,
111., on May 17, 1927.
He was born in a log cabin in Shelby
County, 111., on May 4. 1863. He estab­
lished the bank in 1897.
Mr. Gehant served in the legislature
at Springfield during 1906-08 and has
been quite prominent in Democratic
circles for a number of years.
Ho me Savings and State
Bank Increases Capital.

W e Invite Your A cco u n t

More than half a century
of intimate experience
in the h a n d l i n g of
bankers’ accounts has
provided us with an un­
derstanding of bankers’
problems and an ap­
preciation of their needs,
which assures the ut­
most in satisfaction to
those who favor us with
their business.

THE STOCK YARDS NATIONAL BANK
TH E STOCK Y A R D S TRUST & SAVI MGS BANK
07 e C H I C A G O


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

A special meeting of the stockholders
of the Home Savings and State Bank,
Peoria, was held for the purpose of
voting to increase the capital stock of
the institution from $250,000 to $350,000.
The following additional directors
were elected, which increases the board
to ten: Thomas. G. Lovelace, Murray
M. Baker, Silas H. Altorfer, Franz
Puterbaugh, Walter E. May and Wal­
ter Puterbaugh.
Immediately after the adjournment
of the stockholders’ meeting a meeting
of the board of directors was held and
the following officers were elected:
Walter Puterbaugh, chairman of the
board; Henry W. Ulrich, president;
Emmet C. May, vice-president; Edward
C. Leisy, vice-president; Frank T. Mil­
ler, vice-president; Ray ,T. Belsley, cash­
ier and secretary, and Franz Puter­
baugh, treasurer.
E lk v ille State Bank
Celebrates T w e n ty - F i r s t Birthday.

The Elkville State Bank celebrated
its twenty-first birthday last week.
This institution has shown a substan­
tial growth during the past twelve
months under the present management
and its able directors. Deposits sub­
ject to check are listed at $114 822.10
with time deposits amounting to over
$40,000. The total resources are $224,617.29 at the present time, showing an
increase in business of $36,000 over the
previous year.
Pascal E. Hatch Elected
Head of F ir s t National.

Pascal E. Hatch, vice-president of the
First National Bank and First State

St. Louis, July, 1927
Trust and Savings Bank, Springfield,
has been elected president of the First
National Bank to succeed the late How­
ard K. Weber.
Mr. Hatch was secretary of the old
First Trust and Savings Bank, organ­
ized in 1905, in connection with the
First National Bank, which was. housed
at that time in the building at the
southeast corner of Sixth and Wash­
ington streets. Later he was elected
vice-president, and upon the consolida­
tion of several local banks about eight
years ago he was elected vice-president
of the First National Bank and also of
the First State Trust and Savings
Bank. He will continue as vice-presi­
dent of the First State Trust and Sav­
ings Bank.
E. A. Fresen Heads
Madison Co. Association.

23

dent. To the cashiership has been ap­
pointed William Desmond, Jr., who for
the last two years has been assistant
cashier.
Cashier of Lebanon
Bank Resigns.

The

board

of

directors

of Chicago

Trust Company at a meeting held June
9 declared an extra 1 per cent dividend
in addition to the regular 2y 2 per cent
quarterly dividend declared at that
time.

O.
S. Heinecke has resigned his posi­ I. S. Yaple, V ir g in ia banker, was
tion as cashier of the First National elected secretary pro tern, of the school
Bank of Lebanon. He will go into board to serve in the absence of C. R.
business with his brother at St. Louis Wilson, who leaves soon for California
to attend the Presbyterian convention
in the Heinecke Coal and Supply Co.
held there.

P E R S O N A L N O T E S OF
IL L IN O IS B A N K E R S
T.

C.

Blayney

of

Riverside

has re­

signed the presidency of the Riverside
State Bank in order to travel abroad.
George Morton, freight traffic manager
of the C., B. & Q., is. to succeed him.

Ed w ard

Spencer,

president

of

T he

new Citizens

Bank

reorganized

at Bluffton with capital of $50,000.

E'. A. Fresen, cashier of the Edwardsville National Bank, was elected presi­
dent of the Madison County Bankers
Association during the annual meeting
at Granite City.
Mr. Fresen . succeeds Arthur F. Seligmann of Troy, who has headed the as­
sociation for the past year. Other
officers chosen were:
George W. Harris, of Highland, vicepresident; Roy Barney, of Granite City,
secretary-treasurer.
Roy M c K in n e y Employed

In the Moore State Bank.

The Moore State Bank of Monticello
has. secured the services of Roy Mc­
Kinney, formerly cashier of the State
Bank of Bernent. Mr. McKinney has
had thirteen years of banking experi­
ence, going into the State Bank of
Bernent upon his graduation from the
high school there in 1914 and having
been with them continuously since with
the exception of a year spent in the
United States Navy during the war.
F ra n k J. King Heads
Ogle Banker Group.

Frank J. King, president of the Farm­
ers’ State Bank at Kings, was elected
president of the Ogle County Bankers
Association at a meeting recently held
at Oregon. Mr. King succeeds John
Barry Hayes of Rochelle.
Frank T. Gantz, assistant cashier of
the Oregon State Savings Bank, was
named vice-president, and Howard N.
Johnston was re-elected as. secretary
and treasurer, a post he has capably
filled for several years.
Advance Woodstock
Bank Officials.

The directors of the American Na­
tional Bank of Woodstock, 111., have
elected Charles L. Quinlan, cashier for
the last nineteen years, a vice-presi­

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

An Age of Speed
A long step, indeed, from the pony ex­
press and stage coach to the air mail! Time
is money in this age of unprecedented progress
—the air mail had to come.
Years of actual banking
experience, ideas gathered
from every corner o f the
land:
the
concentrated
efforts of a remarkable staff
of workers; art work cost­
ing thousands o f dollars—
all this is combined and
put at your command in
an economical Wessling
program.

It is a long step, too, from the old clumsy,
inefficient, expensive hit-and-miss method of
bank publicity to the modern Wessling way!
Wessling Services, like the air mail, had to
come. They relieve the banker of a burden,
they save him money, they get permanent re­
sults in half the time that would have been
thought necessary a decade ago.
The Wessling way reaches the
heart!

patron’s

TVosslina
S E R V I C E S

PLANNERS AND CREATORS

OF

the

Marseilles National Bank, died sudden­
ly at his home just as his wife and
family were preparing to leave home
on a trip through the west.

O R IG IN A L

BANK

^

SERVICES

fr o m

IO W A
at L Y T T O N .

Mid-Continent Banker

24

F ir s t

Claudon State Bank, passed away sud­
denly. The Coroner’s jury found that
Mr. Claudon came to his death “from
a poisonous drug, the name of which
and by whom administered is unknown
to us.

National Bank, in Marion, dropped dead
at his home recently. Mr. Mitchell had
not been ill previous to the attack,
which cost him his life, and his death
stunned the community, being so un­
expected.

rectors of the National Bank of Shawneetown, R. N. Harmon was elected as
director to the directorship of the late
Geo. F. Rubenacker.

T h e Smith T r u s t and Savings

Bank

of Morrison, 111., has organized a trust
department to be operated as a definite
part of its, service.
J.

C.

Mitchell,

Cosmopolitan

cashier

State

of the

Bank,

Chicago,

declared the regular quarterly dividend
of 2 per cent and an extra dividend of
1 per cent, payable July 1 to stockhold­
ers of record June 20.
A.

B.

Claudon,

Jr.,

cashier

A t a meeting

of the

F ra n k

of

Crenshaw,

the

board

president

of di­

of

the

State Bank of Stronghurst, passed
away at his home in Stronghurst where
he had been seriously ill for more than
three weeks. His death was caused
from neuralgia of the heart and conges­
tion of the lungs and his condition had

been critical since he was first taken
sick.
John

B.

Brady, 60 years, prominent

Granville business man and vice-presi­
dent of the Granville State Bank, died
at. St. Margaret’s Hospital, Spring Val­
ley, following an illness of several
days.
H.

M.

W a t k in s was

made president

of the Iroquois Farmers State Bank,
Iroquois, Illinois, to fill the vacancy
caused by the death of Salem Ely last
year. D. C. Strand was made assistant
cashier on account of resignation of
Mrs. B. M. McCarty.
T h e F ir s t State Bank of Sikes, Louis­

iana, has been reopened with capital of
$15,000.00. B. Q. May is president and
H. J. Waters cashier.
Resources Now
O ver $1,478,000.

The recent statement of condition of
the Union State Savings Bank and
Trust Company of Kewanee, Illinois,
shows total resources of $1,478,197.84,
with deposits of $1,287,504.59. The
bank has a capital of $150,000 and sur­
plus and profits of more than $35,000.
Officers include T. F. Oliver, presi­
dent; R. P. Palmer, vice-president and
cashier; Burt Craig, vice-president; L.
L. Priestman and H. E. McDonald, as­
sistant cashiers.

Friendly Service

ENVELOPES—for

927

jD A N K S availing themselves o f
our extensive and perfected
facilities offer their depositors the
widest service possible . . . This
bank lends a personal note to all
dealings, one born o f a friendly
interest and a desire to serve.

The Foreman National Bank
The Foreman Trust and Savings Bank

Bank Advertising Rises to
New Standards of Excel'
lence Each Year.
—W h a t will Your Bank do
during 192.7 to establish its
Leadership in this as in
other respects?
—The day when one bank
could create an advertising
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dead: —but Your Bank can
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campaign for its entire
trading territory.
Send for the full facts
on Reed’s Mass-mag'
azine Plan for 1 9 2 7 .

La Salle and W ashington Streets, Chicago

RESOURCES


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

EXCEED

100

MILLION

DOLLARS

Every Purpose

H E C O — C H IC A G O

P.

M.
B an k er

TRIBUNE TOWER

R E E D
A s s o c i a t e s
IS ^ B ]

C H IC A G O

25

St. Louis, July, 1927

W h o ’s W h o in the I n d i a n a B a n k e r s A s s o c i a t i o n

w.

M. W E L L S
Scottsburg

M. J. K R E ISLE
Teil City

W. A. C OLLIN GS
Crawfordsville

C. C. NF.WLIN
Terre Haute

W . M. W ells, c ha irm a n of Group
Seven of the India na Bankers Associa­
tion, is president of the Scottsburg

State Bank, of Scottsburg. His bank­
ing career started in 1907 when he was
17 years of age, as bookkeeper in the
bank with which he has been connected
ever since. He held the positions of
assistant cashier, cashier, and then was
made president in 1920. He was elected
secretary of Group Seven in 1926, and
chairman this year. He is a member
of the nominating committee of the
state association for the 1927 conven­
tion.
Mr. Wells has been president of the
Citizens Security Company of Scotts­
burg since its organization. The com­
pany is engaged in automobile finance.
He is also business manager of the
Scott County Journal, which is edited
by his father S. B. Wells. He has been
city treasurer twice, is a member of
the school board, and treasurer of the
Scottsburg Water company. He is a
Shriner and member of the Lions Club.
“ My hobby outside of motoring and
travel,” says Mr. Wells,” has been to
learn the country banking business,
with the idea in mind that there are
but two real reasons for the existence
of a country bank: first, to earn money
for its stockholders, and second, to be
of service to the community.”
M. J. Kreisle, cashier of the T e ll City
National Bank, T e ll City, is secretary

of Group Seven. Mr. Kreisle “ got his
start” as office boy with the Tell City
National in 1904, later serving as clerk,
bookkeeper, teller, and assistant cash­
ier. He entered military service in
1918 and upon his return to civilian life
in 1919 was made cashier of the bank,
which now has resources of $1,250,000.
Mr. Kreisle is also secretary of the

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

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

The First National
B ank of C h ica g o
and the First Trust
and Savings Bank
and provides complete facilities for active and
inactive accounts, collections, B /L ’s, investments,
letters of credit and foreign exchange transactions
FR A N K O. W E T M O R E
C h airm an

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

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

26

Mid-Continent Banker

Peoples Building and Loan Association,
president of the Tell City Desk Co.,
director of the Tell City Furniture Co.,
the Southwestern Furniture Co., the
Tell City Creamery Co., and the Kreisle
Manufacturing company. He is a di­
rector and former president of the
Chamber of Commerce, and is a direc­
tor of Kiwanis Club. He is a Mason,
Shriner, Odd Fellow and Moose. In
addition to his activities with Group
Seven, he is a member of the Agricul­
tural Commttee of the Indiana Bankers
Association.

fordsville from 1909 until 1919, when
he became cashier of the First Na­
tional.
C. C. Newlin, secretary of the C iti­
zens T ru s t Company of T e r r a Haute, is

chairman of Group Five. From 1908
to 1910 he was in the auditor’s office of
the Pennsylvania Railroad, then was
bookkeeper and teller of the AmericanGerman Trust Company from 1910 to
1913. In 1913 he was made assistant
secretary of the Citizens Trust com­
pany, and in 1922 was elected secre­
tary. He was secretary of Group Five
W.
A. Codings, cashier of the First of the I. B. A. last year.
National Bank of Craw fordsville, is sec­
He is an Elk, and a member of the
retary of Group Five. Mr. Codings was
Kiwanis club. His hobbies are quail
engaged in the law business in Craw- hunting, bird dogs, and golf.

1

1

Indiana Notes
M e r g e r of First National
And First T r u s t at Argos.

The First National Bank of Argos,
Indiana, and the First Trust and Sav­
ings Bank, Argos, have been merged,
the First Trust and Savings taking
over the First National. L. N. Schafer
is president and F. M. Pickrel, cashier.
Ne w Buffalo State
Is Building Home.

Work on a new building to house the
New Buffalo State Bank, New Buffalo,
Ind., has begun. The structure will be
one-story high and modern in every de­
tail, with waiting rooms, safety deposit
boxes, booths and a commodious vault.
It will cost approximately $25,000.00.
M erge r at
Valparaiso.

The Citizens Savings and Trust Com­
pany, Valparaiso, Ind., has been merged
with the Valparaiso National Bank, un­
der the name of the latter. The com­
bined bank has a capital of $150,000.00
and surplus and undivided profits of
$100,000.00. Charles W. Benton is
president; James H. McGill, vice-presi­
dent; A. J. Louderback, cashier, and
T. L. Applegate, assistant cashier.

Never Out of Touch
with His Bank
H

E W A S surprised and gratified— this official of one
of our correspondent banks— that throughout his
Chicago visit he was never out of touch with his own bank.
A s he scheduled his day— at his hotel, at this Bank, and
about the city— our private wire facilities were constantly
available, so that within a few minutes he could always
consult his files, receive advices, send instructions, and
make reservations.


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

This is only one of many conveniences and courtesies
which it is our pleasure to afford our correspondents at
every point where we can further their business interests.

1869

1927

Frederick H. R aw so n
H a r r y A . W heeler
Chairman of the Board
President
C raig B. H azlew ood
V ice-President

U N IO N T R U S T
COMPANY

Codings Is
Ch airman Group Five.

William A. Codings, cashier of the
First National Bank, Greencastle, Ind.,
was elected chairman of Group Five of
the Indiana Bankers Association at the
annual meeting held at Crawfordsville.
H. R. Curtis of Frankfort, Ind., was
named secretary.
Henderson Is
Cashier at Jasonville.

J. M. Henderson of Patricksburg,
Ind., has been elected cashier of the
People’s State Bank, Jasonville, Ind.,
succeeding Rex Poe, who resigned.
DeKalb County
Bankers Elect.

At the annual meeting of the DeKalb
County Bankers Association, T. J.
Kniseley of Butler, Ind., was elected
president. Other officers elected were:
H. M. Casebeer of Auburn, vice-presi­
dent; Arthur Gallatin of Garrett, secre­
tary; and Willis Rhoads of Auburn,
treasurer.
New Bank
A t Angola.

The new Angola State Bank, Angola,
Ind., was opened for business on June
1st, with capital of $50,000.00 and sur­
plus of $12,500.00. Frank B. Rowley

27

St. Louis, July, 1927
is president; A. M. Baker, vice-presi­
dent, and W. W. Elston, cashier.
Death of
H a rle y A.

Logan.

Harley A. Logan, president of the
First National Bank of Plymouth, Ind.,
died recently.
W a l t e r Heads
Group One.

Rollo N. Walter has been re-elected
chairman of Group One of the Indiana
Bankers Association. Mr. Walter is
secretary and treasurer of the LaGrange County Trust Company.
Lee Is Cashier
Plymouth State.

Roscoe G. Lee, assistant cashier of
the Plymouth State Bank, Plymouth,
Ind., has succeeded Oliver G. Soice as
cashier. Willard Johnson, a teller in
the bank, was made assistant cashier.
Mr. Soice, who was. cashier of the
bank since its organization, died sud­
denly May 17th.

Your foreign exchange
problems

Sampson Heads
Farm e rs State, Chrisney.

As your correspondent
in New York, the tech­
nical knowledge of our
well-rounded organiza­
tion can facilitate any of
your Foreign Exchange
transactions. Instruc­
tions by mail, telephone
or wire receive immedi­
ate attention.

John M. Sampson has succeeded A.
G. Eceman as president of the Farmers
State Bank, Chrisney, Ind., and Wayne
Schriefer has. succeeded S. F. Tower
as vice-president.
Anderson Is
Cashier at T ell City.

Sam Anderson, former county clerk,
has succeeded Louis Stamp as cashier
of the Citizens National Bank, Tel]
City, Ind.

Kentucky Notes
First National Purchases
South Louisville Bank.

The South Louisville Bank has been
purchased by the First National Bank,
Louisville, Ky., and is to be operated
as a branch of that bank. Deposits of
the South Louisville Bank now amount
to $1,000,000.00.
J. A. Cheek Heads
Citizens of Danville.

M. J. Farris, Sr., for fifty years pres­
ident of the Citizens National Bank at
Danville, Ky., has resigned because of
ih health. J. A. Cheek has been named
to succeed Mr. Farris and Maurice J.
Farris, III, has been elected vice-presi­
dent of the institution.

The Seaboard
National Bank
o f the City o f New York
115 Broadway

J L. Sherwood Is
President Law renceburg Na tional.

J. Louis Sherwood has been elected
to the presidency of the Lawrenceburg

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

Broad and Beaver Streets

(Main Office)

24 East 45th St.

28

Mid-Continent Banker

National Bank, Lawrenceburg, Ky. He
had for several years been one of the
assistant cashiers of the bank.
Robert E. Johnson, former assistant
cashier, was appointed to the position
made vacant about a month ago by the
death of his father, Jessie M. John­
son, who was cashier. Ollie O. Salvers,
bookkeeper, was made assistant cash­
ier.

M illion Dollar
Bank at Ludlow.

Ludlow, Kentucky, has a million dollar
bank. In a statement issued by officials
of the First National Bank of Ludlow,
Ky., the assets of the bank are $1,014,503.91. Deposits in the bank total
$995,000.00.

Death of
W . H. McK enzie.

Cates Is Cashier
A t Elizabethtown.

W. H. McKenzie, cashier of the I).
W. Davidson & Company Bank at Au
burn, Ky., died recently in a Louisville
hospital.

Conrad Cates has been elected as­
sistant cashier of the First Hardin Na­
tional Bank, Elizabethtown, Ky.

Harg is Bank
Changes Name.

Behm Is Cashier
State Bank of Dayton.

The Hargis Commercial Bank and
Trust Company, Jackson, Ky., has in­
creased its capital from $75,000.00 to
$100,000.00 and changed its name to
the Hargis Bank and Trust Company.
J. C. Po rte r Resigns
From Georgetown National.

J. C. Porter has, resigned as assistant
cashier of the Georgetown National
Bank, Cynthiana, Ky. He will move to
Detroit, Mich.

G. T. Behm, former assistant cashier
of the First National Bank, Latonia,
Ky., has been elected cashier of the
newly-formed State Bank and Trust
Company, Dayton, Ky.
O tley Is No w
T r u s t Officer.

Harry S. Otley, for the past twentyfour years cashier of the Smith Mills
Deposit Bank, Henderson, Ky., has suc­
ceeded A. Y. Clay as trust officer of
the Farmers Bank and Trust Company.
N e w Ad vertisin g M anager
Of F ir s t National, Louisville.

Walter Distelhorst, formerly adver­
tising manager of the Security National
Bank of Sheboygan, Wis., has been ap­
pointed advertising manager of the
First National Bank of Louisville, Ky.,
and its affiliated institutions, accord­
ing to a recent announcement by Em­
bry L. Swearingen, president of the
First National Bank.
Lets Contra ct
For New Building.

M e e t in g th e b a n k in g n e e d s
o f m o d e m b u sin e ss
Business today demands banking facilities on an unprece­
dented scale. T h e ability and willingness to meet these de­
mands of business characterize the service of the Illinois
Merchants Trust Com pany. Its specialized facilities for
commercial banking, foreign banking, investment banking,
savings, and trusts are attuned to present day requirements.
Banks, investment houses, manufacturers, public utilities,
merchants, importers and exporters— all are accustomed to
having their widely varying requirements met adequately
and satisfactorily by this m odern banking institution.

Illinois M erchants
Trust Company

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Federal Reserve Bank of St. Louis

Capital & Surplus

45 cM illio n Dollars

CHICAGO

The Boyle Bank and Trust Company
of Danville, Kentucky, has let the con­
tract for a new one-story bank build­
ing, the exterior of which is to be fin­
ished in “Bowling Green” stone.
The building will have a directors’
room, a mezzanine floor, and separate
rooms for committee meetings. Fix­
tures will be of marble and bronze and
the building will be fireproof and will
contain every modern convenience.
The vault contract has been let to
the Mosler Safe Company, and the
vault door will be Don steel, fifteen
inches thick.
Deposits Show
Large Increase.

Deposits of the Bank of Taylorsville,
Taylorsville, Kentucky, increased from
$354,931 in May, 1926, to $429,984 in
May, 1927. E. D. Bourne, who organ­
ized this bank in 1881, is now eightyone years of age, and is active presi­
dent of the institution. Edw. A. Reid,
cashier, has been connected with the
bank for twenty years. The bank
erected a beautiful new building in
1923.
G.

T.

Reynolds,

president

of

the

Farmers State Bank of Augusta, Au­
gusta, Kentucky, died recently.

29

St. Louis, July, 1927

First National of Louisville
Plans New Home
A building project, in which the in­
genuity of the bank officers has been
severely taxed to provide space for the
uninterrupted operation of three affili­
ated institutions while their new home
is under construction, is that of the
First National Bank, the Kentucky
Title Trust Co., and the Kentucky Title
Co., Louisville, of which Embry L.
Swearingen is the president.
The new building will be completed
later in the year. It is L.shaped, with
an east frontage of 78 feet on Fifth
Street and a north frontage of 43 feet
on Market Street. The intersection
marks one of the city’s busiest cor­
ners. In the recently completed Mar­
ket Street wing, which is 124 feet long
and two stories high, with a small ad­
joining building, all the workings of
the three institutions are being tempo­
rarily carried on at considerable handi­
cap.
Construction is being pushed by the
contractors, L. Jacobson & Sons, Louis­
ville, as rapidly as possible on the Fifth
Street wing, which is the larger of the
two. It has a depth of 140 feet along

Court Place, bounding the block on the
south, and is three stories high. This
will be the First National entrance,
while the other will be the Kentucky
Title Trust entrance, savings, checking
and other departments occupying the
main floor there.
The Trust Department and the Title
Organization will occupy the second
floor, while the splendid safe deposit
and other vaults are on the basement
floor. The building is modern through­
out, thoroughly fireproof and admirably
adapted for banking purposes.
Construction is of concrete and steel,
the exterior being of red Colonial brick
and Georgia white marble.
With its open counters of American
walnut, massive pillars reaching to the
ceiling, the spacious Lrshaped lobby,
gives at the same time an impression
of dignified simplicity and sturdy
strength, together with an unmistaka­
ble note of hospitality, often missing
from other interiors, which run largely
to white stone and cold marble.
Four states were scoured for the
necessary walnut, owing to the length

of the supply required for the pillars
and counters.
The spirit of America and of the
south has been captured in many of
the details of the bank’s plan by the
architect, Carl A. Ziegler, Philadel­
phia, R. A., A. I. A. The officers’ desks
are replicas of the desk on which the
Declaration of Independence was. signed.
Other details are in keeping.
The construction of the building is
such that additional stories may be
added as the expansion of the business
of the institutions may require, the
unprecedented growth of Louisville in
recent years, necessitating this mark of
foresight in the banks’ planning.
The Kentucky Title Co., which is the
parent organization, is the oldest title
company west of Philadelphia. The
First National is the South’s oldest
national bank, the Kentucky Title Trust
being the oldest savings bank in the
southern metropolis. The First Na­
tional operates four branches in its
home city and will shortly open others.
On the Louisville exchange the First
National’s stock recently reached a new
high level of $700 a share.
Walter Distelhorst, well known in
financial advertising circles, has. joined
the First National as advertising man­
ager.

Serving
the Fourth
Generation
A co m p le te up-to-th em inute bank, o ffe rin g
every m od ern b a n k in g
service

LIBERTY

INSURANCE

BANK

N e w Orleans
X X V II
Industrial Canal

A five-mile $20,000,000 canal
inside the city limits connects
L ake Pontchartrain w ith the
Mississippi River and provides
deep water frontage for the un­
limited growth of industrial units.
The development already con­
sists of great plants employing
millions of capital and manufac­
turing a variety of staples includ­
ing cement, steel, twine, roofing
and bagging.

LOUISVILLE
R E S O U R C E S O V E R $28,000,000


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Federal Reserve Bank of St. Louis

Hibernia Bank & Trust Co.
N ew Orleans, U. S. A.

30

Mid-Continent Banker

Operate School
Savings System.

The First National Bank of Hopkins­
ville, Kentucky, is rounding out its
third years’ operation of a school sav­
ings system. The system was not en­
thusiastically welcomed by some of the
Hopkinsville school teachers in the be­
ginning, but they are now nearly all
warm advocates of this plan to incor­
porate the principles of thrift in the
education of the pupil.
George C. Long, president of the
bank, recently celebrated his eightieth
birthday and is still on active duty in
the bank when not fly fishing in one of
the numerous bass streams in that sec­
tion.
—
Kane-Kendall
Bankers Elect Officers.

At the recent annual meeting of the
Kane-Kendall Bankers Federation of
the Kentucky Bankers Association,

George W. Glos of Elgin was elected
president. C. B. Hagans of Geneva
was elected vice-president for Kane
County, and Charles M. Jones of Plano
was elected vice-president for Kendall
County.
--------H. C. Hanson, a director of the State

Bank of Geneva, Geneva, Kentucky, has
been elected Mayor of Geneva.
W i l l Erect
Ne w Building.

The merger of the First National
Bank, Latonia, Kentucky, and the Latonia Deposit Bank has fallen through,
and the Latonia Deposit Bank has in­
creased its capital from $25,000 to $50,000, selling the additional stock at $300
per share. Surplus of the Latonia De­
posit Bank is $100,000. The bank re­
cently purchased a new site and will
erect a new bank and office building
this summer.

What Every
Banker Knows
It pays to use the correspondent
service o f a bank to w h ich you
can refer an item and then “ for­
get it,” so sure are y ou o f its b e ­
ing p roperly handled.
T h a t’s the sort o f service w e try
to provid e.

.

AC

H ttp s & P lanters
jg S M S lil TRUST

¡ niilllU l - l t i f Be 8i


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Federal Reserve Bank of St. Louis

COM PANY

iTiinrT>6_B.mBT

\y » ifii à- è

M E M P H IS ,
TENN.

T Ô T

Forward with Memphis— Since ’ 69

Tennessee Notes
Resources Now
O ver $32,500,000.00.

The recent statement of condition of
the Union & Planters Bank & Trust
Company of Memphis, Tennessee,
shows total resources of more than
$32,500,000.00. Deposits of the bank
are more than $28,600,000.00. Capital
stock is $2,500,000.00 and surplus and
undivided profits amount to approxi­
mately $600,000.00.
T h i r d National of
Na shville Organized.

Third National Bank, Nashville, Ten­
nessee, has been organized with cap­
ital of $500,000.00 and surplus of
$100,000.00. Watkins Crockett, vicepresident of the Fourth and First Na­
tional Bank, Nashville, has resigned,
and will be president of the new bank.
Frank Farris, formerly cashier of the
American National Bank, is vice-presi­
dent; Walter Diehl, assistant manager
of the Cumberland Valley branch of the
American National Bank, has been
elected assistant cashier.
Oglesby Is Ne w
Vice-Presid en t of Jackson.

H. E. Oglesby has been elected vicepresident of the Security National Bank,
Jackson, Tenn. He had been represent­
ing the loan department of the National
Life and Accident Insurance Company
of Nashville in West Tennessee, rot
some time.
Mr. Oglesby was for several years
connected with the First State Bank at
Brownsville and was later a national
bank examiner.
Chattanooga A. I. B.
Has Ne w Officers.

A E. Smith of the Chattanooga
Savings Bank and Trust Company,
Chattanooga, Tenn., has been elected
president of the Chattanooga Chapter,
American Institute of Banking. Other
officers elected were: J. B. Frierson,
vice-president; Miss Martha LaBar,
secretary, and O. U. Dykes, treasurer.
Wilson Heads
Bank at Fra nk lin .

S. J. Wilson has been elected presi­
dent of the First Bank and Trust Com­
pany, Franklin, Tenn., a new financial
institution which opens for business
July 1st. Newt Cannon, Jr., is cashier
and J. M. Burke, assistant cashier.
G. N. A lb rig h t
Is N e w Cashier at Stanton.

G. N. Albright has succeeded John
M. Jackson as cashier of the Bank of

St. Lonis, July, 1927
Stanton, Tenn. Mr. Albright has been
assistant of the bank for some time.
New Bank at
Sm ith ville.

The new First National Bank has
been opened at Smithville, Tenn., with
capital of $30,000.00.

John M , Jackson Is Cashier
Brownsville Bank
At a recent meeting of the board of
directors of the Brownsville Bank,
Brownsville, Tenn., John M. Jackson,
Stanton banker and business man, was
the unanimous choice of the directorate
for the position of cashier of that in­
stitution, made vacant several weeks
ago by the death of S. F. Thomas.
Mr. Jackson entered upon his new
duties July 1.
Other appointments
were:
Howard Bennett, assistant

31
stantial financial institutions. For more
than 50 years it has held a prominent
place in the financial affairs of Browns­
ville and Haywood County.
Following is the list of officials and
directors: J. O. Borner, president; D.
D. Shaw, vice-president; Board of Di­
rectors: Wm. Kinney, T. A. Freeman,
J. W. Byrn, J. H. Sevier, N. R. Dupree,
D. D Shaw, J O. Bonier.
Mem phis Ca pter A. I. B.
Chooses N e w Officers.

R. H. Matson of the Union and
Planters Bank and Trust Company was
elected president of the Memphis Chap­
ter of the American Institute of Bank­
ing at the annual session recently. Mr.
Matson was vice-president last year
and automatically ascended to the
presidency.
A. A. Hitchcock of the Union Plant­
ers Bank and Trust Company was

elected treasurer. W. M. Daniel, as­
sistant cashier of the Fidelity Bank
and Trust Company, was named secre­
tary. F. M. Cockrill of the Bank of
Commerce and Trust Company was
named assistant secretary.
Ne w Officers
Na shville A. I. B.

At the recent annual meeting of the
Nashville Chapter of the American In­
stitute of Banking W. J. Stephens of
the West Nashville branch of the
Fourth & First National Bank was
elected president for the ensuing year,
succeeding Herbert Fox. Other officers
elected were Perry Burton of the Com­
merce Union Bank, vice-president; Miss
Thelma Leonard of the American Na­
tional Bank, vice-president; Mac Hanner of the Nashville Trust Company,
secretary; and L. G. Sadler of the
American National Bank, treasurer.

BANK
EQUIPMENT

John M. Jackson

cashier and teller; Frank Chapman, as­
sistant cashier; Alma Cates, book­
keeper, and Mrs. Bernard Lanier, ste­
nographer and bookkeeper.
The new cashier goes to the Browns­
ville Bank after six and one-half years
as cashier of the Stanton Bank. Under
his administration that bank has been
very successful.
He has not only
proved himself to be an able and sound
banker, but a progressive citizen as
well. During his stay in Stanton he
has done much constructive work
among the farmers of that section. This
year he has established one of the larg­
est hatcheries in West Tennessee.
Through his efforts many thousands of
purebred chicks have been placed
throughout Haywood County. Mr. Jackson takes an active interest in civic
and religious activities.
The Brownsville Bank is one of
West Tennessee’s oldest and most sub-


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Federal Reserve Bank of St. Louis

AMERICAN FIXTURE CO.
KANSAS CITY, MO.

Mid-Continent Banker

32

Arkansas
T.

J.

Faulkner,

cashier of the Dairymen’s Bank, Car­
lisle, Ark., died recently.

Notes

aged

72,

vice-presi­

dent of the First National Bank,
Helena, Ark., died May 30th. B. A.
Dunlay, also 72 years of age, an officer
of the Peoples Bank, Helena, died
about the same time.
W illiam

A.

McD onnell,

prominent

Little Rock attorney, has been elected
vice-president of the Federal Bank and
Trust Company, Little Rock, Ark.
John

C.

Gardner,

president

of

the

Arkansas Valley Trust Company, Fort
Smith, Ark., died recently. Mr. Gard­
ner has been identified with the busi­
ness world in Fort Smith for thirty-five
years.
A lb e r t

B a rn e tt


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Federal Reserve Bank of St. Louis

Cameron,

aged

47,

Jas.

L.

Woodfin

has

been

elected

president of the Monroe County Bank,
Brinkley, Ark., to succeed T. T. Bate­
man who resigned.
T he

capital

stock of the Southwest

Joint Stock Land Bank, Little Rock,
Ark., has been increased from $250,000.00 to $350,000.00.
T h e new home of the Exchange Bank

and Trust Company in the Exchange
Realty Building, El Dorado, Ark., has
been formally opened. The building
was constructed at a cost of more than
$600,000.00.
Miss Bernice E llio tt has been elected

cashier of the Producers State Bank,
Siloam Springs, Ark.

For more than 50 years a bulwark
of strength in the business life of
M em phis and the M id -S ou th .

The fifth annual conference of the
Junior Bankers Section of the Arkansas
Bankers Association was held at Hot
Springs, with an attendance of 75
junior bankers from all over the state.
The opening feature of the convention
was a dinner at the Southern Grill,
where the visiting bankers were enter­
tained by the senior bankers. Follow­
ing the dinner a dance was tendered
the young bankers at the Arlington
Hotel.
The convention was called to order
by Zack Wood of the Union Trust Com­
pany, Little Rock, president of the as­
sociation. The address of welcome was
extended by Robert Neill, vice-president
of the parent association.
Cledice
Jones, assistant cashier, Citizens Bank
and Trust Company, Batesville, gave
the response to the address of welcome.
Chas. Evans, vice-president of the
Home Life Insurance Company, Little
Rock, took the flight of “ Slim” Lind­
bergh as an inspiration for a fifteenminute talk. He was followed by
Henry P. Anderson, vice-president of
the Interstate National Bank, Helena,
who spoke on “Development for Suc­
cess in Banking.” Lamar Williamson,
a Monticello attorney, outlined “The
Relation of the Law and the Lawyer to
the Banker.”
'At a luncheon given the visiting
bankers at noon by the Hot Springs
banks, Robert E. Wait, secretary of the
Arkansas Bankers Association, was the
principal speaker.
The following officers were elected
for the ensuing year: President, W.
H. Mapes, Merchants National Bank,
Ft. Smith; vice-president, John Keirsey,
Arkansas National Bank, Hot Springs;
treasurer, J. H. Latimer, Planters Bank
and Trust Company, Nashville; secre­
tary, Ethel Susan Srygley, American
Southern Trust Company, Little Rock;
historian, Helen Brownell, First Na­
tional Bank, Ft. Smith; sergeant-atarms, G. B. McCracken, Bank of Brookland, Brookland.
W illiam

Bank OF Commerce
andtrust Company
MEMPHIS

CAPITAL, SURPLUS A ND U N D IV ID E D
$ 5 , 0 0 0 , OOO. OO

Junior Bankers of Arkansas,
H ave Fifth Conference

P R O F IT S

A.

Hudspeth

has

been

elected cashier of the Farmers and
Merchants Bank of Harrison, Ark.
Mr. Hudspeth, who is only nineteen
years old, is the youngest bank cashier
in Arkansas.
Helps Business, An yh o w

Teacher: “ Honesty is the best pol­
icy.”
Son of an Insurance Agent: “You
are wrong, teacher. Twenty Pay Life
is the best policy.”

St. Louis, July, 1927

Oklahoma

33

Notes

George

H.

Hu nte r,

president of the

First National Bank, Wellington, Kan­
sas, died recently.

T he Union T r u s t Company, W ichita,

Officers Tulsa
Ch apter, A. I. B.

G. E. Putman, assistant cashier of
the Central National Bank, has beeD
elected president of the Tulsa, Okla.,
chapter of the American Institute of
Banking. He succeeds J. F. Matchett
of the Exchange National Bank. Other
officers elected to official posts in the
organization are: Albert H. Westerman, discount department of the Ex­
change National Bank, vice-president;
B. H. Stout, Central National Bank,
secretary; and Mile Klima, Producers
National Bank, treasurer. The national
convention of the American Institute
of Banking will be held in Detroit,
July 11 to 15.
A

ers State Bank at Corning, Kansas,
since April, 1907, died recently.

c h a r te r has been

granted

Kansas, has opened offices at 231 West
English street, and will conduct a gen­
eral trust company business.
L. A. Libel of W a th e n a, Kansas, was

elected president of the Doniphan
County Bankers. Association at their
meeting held at Sparks, Kansas.
The

Thomas

County

Bank,

Colby,

Kansas, has increased its capital stock
from $25,000.00 to $50,000.00.

T he

Citizens

St ate

Bank,

Claflin,

Kansas, has been converted to the First
National Bank of Claflin.
J.

H.

Moore of Oketo,

Kansas,

C.

F. Astle has sold his interest in

the Farmers State Bank at Yoder,
Kansas, to J. Showalter of McPherson.

to the

Bank of Commerce, McAlester, Okla.t
with capital stock of $50,000.00 and
paid in surplus of $10 ,000 .00 .
H a r r y B. Gale has been elected vice-

president of the Producers National
Bank, Tulsa, Okla. He was formerly
city superintendent for the Western
Union Telegraph.
T h e H a rts ho rn e Natio nal Bank, Harts-

-Thirty-seven Years of Experience
—Thirty-seven Years of Service
—Thirty-seven Years of Growth
without a Merger or a Consolidation

horne, Okla., will open for business
about July 1st. It has a paid-up capital
stock of $50,000.00.
T h e Provident T r u s t Company, Tulsa,

Oklahoma, has been chartered with
$10 ,000.00 capital.
O. E. Thompson, who has been con­

nected with the McCurtain County
Bank, B'rokenbow, Okla., for the past
four years as president, has resigned
and has been succeeded by Fay Park
of DeQueen, Ark.
Carl Sebring has resigned as cashier

of the Liberty National Bank, Pawhuska, Okla.
The

stock

of

the

Oklahoma

State

Bank, Enid, Okla., has been purchased
by B. M. Athey and his two sons.

Kansas

Notes

W e ig h t m a n of Top ek a
Has A. B. A. Office.

Matt Weightman, Jr., vice-president
of the Fidelity Savings State Bank, To­
peka, Kansas, has been elected na­
tional vice-president for Kansas of the
Savings Bank Department of the Amer­
ican Bankers Association.
Joseph Stiers, president of the F a r m ­


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Federal Reserve Bank of St. Louis

has

been elected president of the Marshall
County Bankers Association.

This is the record of the Mississippi
Valley Trust Company of St. Louis

34


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Federal Reserve Bank of St. Louis

Mid-Continent Banker

St. Louis, July, 1927

35

Bond and Investment Section
Proper Diversification of a Bank’s
Secondary Reserve Account
W in n e r s of “ H onorable M e n tio n ”
B y Guy Redmond

Wm. R. Compton Co., St. Louis
The word “Diversification” has be­
come very important in the investment
field in the last few years. It covers
such a large scope of territory that it
is many times used to justify the de­
sires of the one using it. However,
the intended meaning is the balancing
of your investment list to protect you
against unforeseen conditions that may
arise and endanger the security and
marketability of your investments. The
Investment Banker who handles only
one class of securities may define it
as only relating to issues, but in my
judgment it should be taken in the gen­
eral sense, including class, character
and issues.
In forming a secondary reserve, I
would first divide my list into five
classifications,
namely, corporation,
utility, municipal, foreign and real es­
tate.
Having accomplished this, I
would sub-divide the different classi­
fications as follows: The corporation
to include railroads, building material,
oils, motors, amusements and other en­
terprises that the public will not or
cannot do without.

T he articles on this and fo llo w ­
ing pages are w inn e rs of “ hon­
orable m ention” in the contest re­
cently held by the M id-Continent
Banker, St. Louis, and the N o rth ­
western Banker of Des Moines,
on the subject, “ Proper Diversifi­
cation of a B a n k ’s Secondary Re­
serve.”
A rticles w inning first, second,
and third prizes, were published
in M ay and June.
W in n e rs of “ honorable mention”
are :
H. R. Bailey, Kansas City;
John Thomas, St. Louis; Charles
E. Howard, Evansville, Ind iana;
Guy Redman, St. Louis; F ra n k E.
Sm ith, Kansas City; E. L. Zoernig, St. Louis; Winston Jones, St.
Louis, H. H. Jones, Indianapolis,
and A r th u r M. Idler, St. Louis.
No a tte m p t is made to rank
the “ honorable m e n tio n ” essays,
as all are given equal mention by
the judges.

The utilities to be composed of elec­
tric power and light, gas and water
service and these should be separated

as to locality as well as kind of utility.
In the municipal field, location and
stability of community should be the
important factor, also separating them
into communities depending on differ­
ent avenues of business for existence,
such as agriculture, mineral and in­
dustrial. It may also be well to divide
them into direct obligations of state,
county, city and districts.
The first and most important point
to be gained by diversification is the
security of your investment as a whole.
Next to this the important and neces­
sary object is the marketability of your
securities as after all this is the pri­
mary reason for having a reserve of
this kind. However, I feel that a bank­
er can well make this reserve a very
profitable asset to his bank by keep­
ing in touch with the market at all
times and profit by the turnover, as
well as the yield he maintains in his
bond account.
I think the following percentage
would give a well balanced list and as
good a yield as could be expected with
the maximum amount of safety.
Thirty per cent corporation with an
average yield of 5y 2 per cent.

It Means More than Variety
V a r ie t y is e s s e n t ia l! A ll e g g s shou ld not
be kept in the sam e b a sk e t— b u t p ro p er di­
v e rsific atio n o f a b a n k ’s in ve stm en t accou n t
m eans m ore th an v a rie ty — it m ean s a c a re ­
ful co n sid eration of y ield , s a fe ty and m a r­
k e ta b ility .
T h e re m u st be a p rop er b alan ce of a n u m ­
b er of kin d s o f sec u rities— and fu tu re b u y ­
in g sh ou ld be b ased on an a n a ly s is of
p resen t h old in gs w ith a v ie w to secu rin g

th is b alan ce and m eetin g the n e c e ssa ry re ­
q u irem en ts.
A reliab le in ve stm en t b an k er can be of
m a terial serv ice in fu rn ish in g in fo rm atio n
th at w ill m ake such an a n a ly sis of real
valu e.
I f no one is co -o p eratin g w ith yo u in th is
re sp ect now , w e w ill be g la d to go o ver
y o u r list in stric te st confidence, w ith o u t o b ­
ligatio n on y o u r part.

Potter, Kauffman & Co.
--------------------------------- ( i

511 Locust Street


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Federal Reserve Bank of St. Louis

n c o r p o r a t e d

Saint Louis

"

GArfield 7460

Bonds selected wilh the advice of a reliable investment banker are essential to the strength and stability of any bar.k

Mid-Continent Banker

36

Twenty per cent utility with an aver­
age yield of 5 per cent.
Twenty-five per cent municipal with
an average yield of 4% per cent.
Twenty per cent foreign with an av­
erage yield of 614 per cent.
Five per cent real estate with an
average yield of 6 per cent. (Lease­
hold.) This gives a general average
of about 5.38 per cent.
While I realize that there is no hard
and fast rule that can be followed and
that the banker must take into con­
sideration his local demands and con­
ditions, I feel that a secondary reserve
balanced as above, would be my ex­
planation of the true meaning of “ Di­
versification” in your secondary re­
serve.
B y E . L. Zoernig

A. B. Leach & Co., Inc., St. Louis
With few exceptions, most banks

have always carried a “Bond Account”
of some kind or other. But with bank­
ing conditions existing as they do to­
day, it is almost imperative that every
bank carry and maintain a strong, sub­
stantial bond account or “ secondary re­
serve.”
The “ first reserve” of a bank should
consist of not less than 20 per cent
of its deposits, in cash and exchange,
and the “ secondary reserve” should con­
sist of about 20 per cent of its deposits
in government bonds and short time
paper and about 20 per cent of its total
assets in a “ general bond account.”
This will leave something like 40 per
cent of its total assets for local pur­
poses.
In building up a bank’s bond ac­
count or “ secondary reserve” proper
diversification and vigilance are the
two important factors the banker
should consider. By proper diversifi­

THE OLDEST
PUBLIC U T IL IT Y
Bonds o f well managed

W ater

C om ­

panies approach more nearly the security
o f municipal issues than any other type
o f public utility investment.
ings o f a W ater

C om pany

The earn­
are perhaps

more stable than those o f any other in­
dustry inasmuch as water consumption
continues

at practically the same rate

regardless o f business conditions.
A special list o f W ater Com pany bonds
will be sent upon request.

A

B y H . R. Bailey

P. W. CHAPMAN & CO.. INC.
170 W . M onroe St.

4 2 Cedar Street

C H IC A G O


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Federal Reserve Bank of St. Louis

cation, the following general rule might
be applied: holdings in blocks of $5,000.00 each; type of bonds to be dis­
tributed 35 per cent in public utilities,
20 per cent railroads, 15 per cent indus­
trials, 10 per cent foreigns, 10 per cent
municipals, 10 per cent real estate and
miscellaneous.
Next in importance is the matter of
maturities, a feature often overlooked.
How should investments be selected or
apportioned with reference to maturi­
ties? These are matters for the bank­
er to approximate, determined largely
by the nature of the bank’s business,
which varies in different localities.
Working on an average, however, I
would recommend about 27 per cent
maturing in 1 to
3
years,
maturing in 3 to
5
years,
maturing in 5 to
10
years,
maturing 11 years and over(with 2 y 2
per cent maturing each 11 to 28 years).
The next step to be considered is
“marketability,” which in its practical
application means a wide and ready
market for a given security, where the
spread between bid and asked price is
narrow and the market is stable. A
bank’s entire holdings, while absolutely
safe, may not always be readily mar­
ketable, and with that thought in mind
the recommendation would be for 25
per cent to be very active, 30 per cent
active and 45 per cent fairly active.
Geographical location is another im­
portant factor to be considered. Busi­
ness depressions often occur in only
one state, or in a certain section, and
it is well, therefore for a bank’s in­
vestments not to be confined to a sin­
gle county or state, or even to one
section of the country.
Income flow enters into the question
and this is a matter of adjustment to
meet a bank’s needs as they may vary
from month to month.
Vigilance, while the last, is by no
means the least of the basic principles
applying to bond purchasing. But the
seven basic principles set forth in this
article are the sign posts that direct
the way to soundness and safety, and
if these fundamentals are adhered to
when making original purchases, or
when making realignments and addi­
tional purchases, a strong investment
structure is assured.

N EW YORK

S t. Louis Office:
1103 B o a tm e n ’ s Bank Building

Telephone GA rfield 3480

Commerce Trust Company, Kansas City
The matter of a secondary reserve
for a commercial banking institution
is becoming more and more a subject
of discussion whenever bankers or
financiers gather together.
Many banks which are regarded as
most conservative institutions are un­
dertaking to maintain a secondary
reserve amounting to 25 per cent of

13percent
16percent
44percent

St. Louis, July, 19.27
their demand deposits. This operates
in conjunction with a primary cash re­
serve also amounting to 25 per cent of
the demand deposits.
Let us, therefore, assume that a
bank has average demand deposits
amounting to approximately $1 ,000 ,000 .
The secondary reserve consists of a
bond account amounting to $250,000 and
the diversified investment of such an
amount of money is the subject of dis­
cussion in this article.
At present, the majority of bonds
suitable for investment of bank funds
fall into five principal classes:
1. Government, municipal and farm
loan bonds.
2 . Railroad bonds.
3. Public utility bonds.
4. Industrial bonds.
5. Foreign bonds.
Thus from the standpoint of equal
division, one-fifth of the total fund
could be allotted to each of the above
mentioned classifications. However, on
account of the greater favor with
which certain classes are regarded by
investment authorities, a better plan of
diversification would probably result
from the following ratios:
Government, municipal and farm
loan ............................................... 15%
Railroad ........................................... 30%
Public Utility ................................... 20%
Industrial ..........................................20%
Foreign Government ...................... 15%
In each of the above classes, certain
diversification can be obtained, particu­
larly on the point of the length of ma­
turity of the bonds. It is an excellent
policy to diversify as to the term of the
investment as well as to the class of
enterprise. In the past it has been
quite universal for bankers to endeavor
to arrange their note cases so that their
paper would not all mature at any
given period, and likewise, bond invest­
ments may be similarly arranged.
Thus, about 40 per cent of each of the
classifications above mentioned should
be devoted to short term issues, that
is bonds running from two to five
years.
The balance could well be
placed in long term issues, particularly
those enjoying a listed market or an
active over-the-counter market.
Divers ify in Each Class

There should also be diversification
within each class. For instance, all
railroad issues should not be the obli­
gation of the same system, all public
utility securities should not be obliga­
tions of any one company. In the case
of railroads, consideration should be
given as to class of commodities han­
dled and communities served and
geographical location. All roads of the
same type are subject to the same set
of conditions.
Intelligent diversification is not


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Federal Reserve Bank of St. Louis

37

The diversification of the obligations
of the United States Government is,
according to the best opinion, unneces­
sary. Therefore, such issues should be
selected as will show the best market
action. The diversification of govern­
ment issues as to maturity should, of
course, be kept in mind. In the pur­
chase of municipal bonds, it is well to
place the investments in the obliga­
tions of conservative municipal cor­
porations, dividing the blocks among
cities located in different parts of the
country for the reason that a natural
calamity or depression in one section
would not unfavorably affect the mar­
ket on the remaining bonds which are
obligations of municipalities in other
sections. The same policy would ap­
ply to farm loan bonds.
The diversified selection of railroad
securities involves the consideration of
many factors. Geographical location of

achieved merely by the selection of
numerous securities. A list of several
different securities of inferior quality
is better than putting all the money in
any single one of them, but it does not
create a sound financial program. Di­
versification is practiced because of the
safety of principal being paramount.
The element of uncertainty exists to at
least a remote extent in every security
and it is this element that should be
reduced to a minimum.
Intelligent diversification, therefore,
requires the consideration of several
important factors. The types of invest­
ments have been enumerated as have
the percentage of each type to the
whole. Both of these factors are es­
sential and should be determined at the
outset. Although the type of security
and the percentages may not be strictly
adhered to, they will serve as a valu­
able guide.

Financing Sound Growth
A tota l o f 1,275 sep arate bon d issues on S outhern m u ­
nicipalities, industries an d p rop erties’— bond issues ru n ­
ning' fa r into the hundred m illion s o f dollars— have been
u n derw ritten b y C aldw ell & C om pan y and sold through
th eir offices o v e r the cou n try.
M oney, th e red blood o f v ig orou s industry, w a s thus
draw n from ev ery part o f A m erica to build th e m uscle
an d braw n o f the South toda y.
It is a m a tter o f p a rticu la r p rid e to C aldw ell & C om ­
p a n y that not on ly w as its fa ith in the S ou th ’ s fu tu re
w ell placed, bu t also the individu al recip ien ts o f its loans
w ere w ell chosen , as proven b y the splendid record o f
ev ery issue brou gh t out.
T he p osition o f C aldwell & C om p an y as lead in g in v e st­
m ent bankers o f the S outh assures their cu stom ers e x ­
p erien ced in v estm en t counsel, a w id ely diversified list o f
secu rities to m eet ev ery need, and a p rom p tn ess o f serv ice
u n excelled an yw here.

C aldw ell

&

C ompany

S o u th e r n S e c u r itie s

114 North Fourth St.

St. Louis, Missouri

Offices in Principal Cities
B

Mid-Continent Banker

38

issuing companies is essential. Another
consideration is that of principal com­
modity handled; for example, there are
several railroads known as “ coal car­
riers,” which are located in different
parts of the country. Thus, investing
in the securities of more than one oxtwo “coal” roads would be unsound.
In short, railroad bond investing should
be distributed among railroads in dif
ferent parts of the country; supported
by different kinds of commodity hauls
and managed or controlled by different
factors. The last is important in view
of the fact that the Missouri Pacific,
Denver & Rio Grande and Western Pa­
cific, then under one control, all became
involved in difficulties together.
Railroad investments should, there­
fore, include obligations of various
classes, such as a soft coal road, a

trunk line, a terminal loan and equip­
ment issues.
The selection of public utility bonds
so as to properly distribute the risk is
a comparatively easy matter. First,
there are several separate enterprises,
known as public utilities, such as,
power and light companies, also gas
companies, water companies, telephone
companies, etc. Aside from the tele­
phone bonds, it is possible to get bonds
of companies having entirely separate
and different control operating in com­
munities far apart geographically and
supported by diversified industrial ac­
tivities.
All utility bonds should not be the
obligations of a power and light, nor
gas nor traction nor telephone; nor
should industrials all be based on one
industry. In the case of industrials,

Special Reports on
Specific Securities
They are often of vital
i m p o r t a n c e to t h e
banker... compiled, as
you request them, by
experien ced in vest­
ment men in our Sta­
t i s t i c al D e p t , You
are invited to ma k e
use o f these facilities.
A Regular D eta il o f
Our Investment Service

h

GEO, H. BURR & CO.
I n v e s t m e n t S e cu r ities

506 Olive S t.


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Federal Reserve Bank of St. Louis

S t. L ouis

care should be taken to avoid invest­
ing in the bonds of companies which
are all engaged in the same general or
allied enterprises.
The selection of foreign bonds should
be done with a view to dividing the
risk among unassociated races and
localities. Thus, while there are a num­
ber of countries in the Balkan States,
the purchase of bonds of each of these
countries would result in but compara­
tively small diversification. On the
other hand, by dividing the issues
among the Anglo-Saxon, Scandinavian
and Latin races and among European
and North and South American coun­
tries, distribution of risk is well ac­
complished.
Like evex-ything else, there is a
happy medium in diversification. Too
intensified diversification would result
in the ownership of so many issues it
would be difficult to watch the market
action and general trend of the indus­
try or economical status of the obligor.
Each individual case must be studied
and a policy adopted which best meets
the requirements of the institution in
question, but the observance of the re­
quirements as generally outlined above
will result in obtaining a high degree
of safety from diversification.

B y H . H . Jones
Haskey, Stuart & Co.
Indianapolis

It appears that the proper diversifi­
cation of a secondary reserve is accom­
plished by the same methods that are
applied in the successful operation of
any bank—the methods of sound judg­
ment and principles. A set of strict
rules to be followed would, without
question, simplify the erection of the re­
serve; however, because each bank dif­
fers so greatly in its problems, the im­
possibility of a set of rules is readily
acknowledged.
We turn, therefore, to the discussion
of principles which have proven to be
worthy of general application.
Broadly speaking, the responsibility
of the banker lies under the two head­
ings—the responsibility of having avail­
able whenever they are needed or
called for, all depositors’ funds; and
the responsibility in providing worthy
lines of credit, within reasonable limits,
to his community. It is here that the
question of the proportion of a bank’s
assets that should be maintained in
highly liquid form to supplement cash
reserves must be determined. This
must be done in spite of the nominal
earning power of such liquid assets.
The remainder of the bank’s assets
must be distributed in a manner which
is to the best interests of stockholders
and depositors of the bank and of the

St. Louis, 'July, 192',
community. Generally speaking, these
remaining assets are divided between
local loans and outside loans or bonds,
the latter constituting the secondary
reserve. The purpose of this second­
ary reserve is found in its name—a
reserve standing directly behind the
primary reserves that is available for
contingent and pre-determined require­
ments.
The size of the secondary reserve
account is wholly dependent upon indi­
vidual conditions. With equally active
local demands, it is natural to assume
that a bank who has local loans of
diversified and moderately liquid char­
acter has not the need for an account
as large as the bank whose loans are
confined to one or two industries or
fields and possess very little liquidity.
It is probably true that a majority of
leans made by banks, outside of the
Metropolitan centers, of the middle
west are agricultural in character. It
is unnecessary to comment upon the
rude awakening that bankers expe­
rienced who did not have the agricul­
tural loans properly fortified with other
diversified assets in ample amounts.

39

the banker will but use his good judg­
ment in determining his probable re­
quirements. It might be said here that
seasonable demands for local loans
must, naturally, comprise the chief
factor in the requirements.
Diversification as to types of bonds
must be considered along with that of
marketability. Here, again, must sound
judgment be used; as the conditions
affecting governments, agriculture and
industry are ever changing. Bonds
must be chosen from a wide range of
interests to insure the safety of the
account as a whole from the impair­
ment of any one interest. From con­
sensus of opinion of bankers through­
out the middle west, the obligations of
public utilities, industrial companies,
railroads, and foreign governments,

A

n

n

o

u

comprise the safest and most profitable
securities for secondary reserve pur­
poses. The amounts to be invested in
each respective group is, of course,
wholly arbitrary. It is probable, how­
ever, that no great exception could be
taken to the following division: Public
utility, 50 per cent; industrial, 30 per
cent; railroad, 20 per cent, and foreign
government, 10 per cent. These per­
centages have been based upon the
conditions in each respective group
today and their application to the aver­
age bank of the middle west whose
loans contain a large portion of agri­
cultural paper.
Diversification should also definitely
determine the maximum amount to be
invested in any one security.
By limiting these amounts to a small

n

c

i

n

g

T he P r im a r y Factor

The primary and most important fac­
tor to be considered in diversifying the
reserve is the character of its local
loans.
Necessarily, if the local loans are of
a non-liquid character, the greater the
need for marketability in the reserve.
Also, if the loans have been confined to
one or two local fields, such as farmers
and merchants, the reserve must con­
tain a wide variety of types of securi­
ties.
There is no question but what mar­
ketability costs money.
Other things
being equal, each dollar decreased
income should represent an equal
amount of increased marketability. A
portion of the account must be justly
carried in bonds which are not as read­
ily marketable in order to build up the
income from the account as a whole.
The amount of this division of the ac­
count may be determined by careful
examination of probable requirements
of the bank in the future.
Many
bankers have found that a revolving
fund of bonds maturing consecutively
in the next few years to be of distinct
advantage. This fund provides for dennite amounts maturing each year which
may be used locally or reinvested in
other short term obligations. Also, the
shortness of maturity in these bonds
automatically makes them less subject
to price fluctuation. It is then possible
to consider issues of longer terms as
more permanent investment, whose in­
come return is greater. It may readily
be seen that the factor of marketability
is important, and is not complicated if


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Federal Reserve Bank of St. Louis

Our New Chicago Offices on
the Ground Floor at
2 3 0 S o u t h L a S a lle S tr e e t
S to ck h o ld e rs o f th e C o m m o n w e a lt h E d iso n C o m p a n y , M id d le W e s t
U tilities C o m p a n y g r o u p , a n d o th e r p u b lic u tility co m p a n ie s w h ic h
w e rep resen t h a ve in crea sed in th e past five years fr o m 6 5 ,0 0 0 to
m o r e th a n 3 3 1 ,0 0 0 , reflectin g the in crea sin g p o p u la rity o f th e p u b lic
u tility securities in w h ic h w e sp ecialize.
T h e pa ra llel g ro w th o f this C o m p a n y , in p e r s o n n e l a n d sc o p e o f
service, has n o w m a d e necessary o u r re m o v a l to sp a ciou s a n d m o re
co n v e n ie n t ly a rranged m a in flo o r offices in th e h eart o f C h ic a g o ’ s
fin a n cia l d istrict, at 2 3 0 S ou th La Salle Street.
U p o n req u est w e shall b e g la d t o sen d y o u o u r cu rren t list o f p u b lic
u tility securities y ie ld in g m o r e th a n 6 % .

U t il it y Se c u r it ie s C o m p a n y
230

S o u th L a S a lle Street, C H I C A G O

Telephone WABash 9700
M ilw a u k e e

I n d ia n a p o lis

Mid-Continent Banker

40

per cent of the total amount, the de­
gree of risk is automatically lessened.
Broad distribution of the geographical
location of obligatory interests should
also be considered as adverse condi­
tions affecting one section of the coun­
try or world might have no affect
whatsoever on other sections.
It would appear that a secondary re­
serve account created upon the lines
we have discussed, of diversification
starting with marketability, maturities,
types of obligatory interests, invest­
ment unit, and geographical location,
would place the account on a sound and
profitable basis.
A bank following
these principles would have a wellformed investment policy which should
result in added strength and increased
profits.

A.

B.

A. C O M M I T T E E P U B L I S H E S
P A M P H L E T ON R U S S IA .

A pamphlet on “Industry, Govern­
ment, Finance and Foreign Trade in
Soviet Russia” has been published by
the Commission on Commerce and
Marine of the American Bankers As­
sociation, largely based on documents
and publications in the files of the De­
partment of Commerce.
“Russia under the Soviets is to many
in America an even greater mystery
than was Russia under the czars,” the
pamphlet says. “It is impossible to
present in brief form the changes
which have taken place since the ‘revo­
lution from czarist misrule and the
Bolshevik coup d’etat, now called the
revolution.’ This pamphlet outlines in

general form the machinery which the
Soviets have set up in the domains of
government, industry, finance and for­
eign trade, and suggests the tendencies
and results of Soviet policy in these
fields.”
The members of the American Bank­
ers Association Commission on Com­
merce and Marine are: Fred I. Kent,
vice president Bankers Trust Company,
New York, chairman; W. S. Bucklin,
president National Shawmut Bank,
Boston; Earl S. Gwin, president Lin­
coln Bank & Trust Company, Louis­
ville, Ky. ; L. E. Jones, president First
National Bank, Philadelphia; J. R.
Kraus, vice-president Union Trust Co.,
Cleveland; John B. Larner, president
Washington Loan & Trust Co., Wash­
ington, D. C.; John G. Lonsdale, presi­
dent National Bank of Commerce, St.
Louis, Mo.
John McHugh, president Chase Na­
tional Bank, New York; Robert F.
Maddox, chairman of board Atlanta &
Lowry National Bank, Atlanta, Ga. ;
David H. Moss, vice-president First
National Bank, Seattle, Wash.; Lewis
E. Pierson, chairman of board Ameri­
can Exchange Irving Trust Co., New
York; Charles H. Sabin, chairman of
board Guaranty Trust Co., New York;
R. C. Stephenson, vice-president St. Jo­
seph County Savings Bank, South Bend,
Ind. ; John R. Washburn, vice-president
Continental & Commercial National
Bank, Chicago; F. O. Watts, president
First National Bank, St. Louis; W.
Espey Albig, secretary, New York.
Safety Pay Envelopes

H E C O -C H I CAG O

B r i n g i n g y o u t h e fa c t s
I f Y o u

C

A n s w e r

A L L S from National C ity bond men,
either in person or b y telephone,

are welcomed by nearly 3,000 bankers
every business day — welcomed because
these representatives share with

C a n

T h e s e

Q u e s tio n s

— and an sw er th em co rre ctly y ou r
in v estm en t p rofits w ill show im ­
m ediate im provem en t.

our

(1) Is the trend o f stock prices up—
or d ow n ?

clients the investment information avail­
able through the fact-gathering facilities

(2) Is this a tim e to bu y or to sell
sto ck s; w h at sto ck s?

of a nation-wide organization. T hey are
at your service.

The National City Company
National City Bank. Building, New 1 ork

(3) A re long or sh ort term bon ds
the best in v estm en t n ow ?
T he cou p on is fo r y ou r con ven ien ce
in secu rin g au th orita tiv e in fo rm a ­
tion. If the an sw ers to these qu es­
tions in terest you clip it now . T here
is no obligation .

BROOKMIRE
ECONOM IC S E R V IC E , Inc.

Offices in more than 50 leading cities throughout the world
BONDS


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Federal Reserve Bank of St. Louis

*

SHORT

TERM

NOTES

'

ACCEPTANCES

25 W e s t 4 5 t h S t ., N e w Y o r k

P lease
N am e
A d dress

send

free

B ulletin

M .B.

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

St. Louis, July, 1927

41

Organizing and Building a Small
City Savings Department
are to a savings
department what a constitution
is to any organized body. There­
fore, the adoption of regulations should
he given careful consideration, taking
into account the many contingencies
that may arise. The fine point about
regulations is that of establishing ex­
act terms of doing business between
the customer and the bank. On this
account the terms adopted should be
as nearly permanent as possible so as
to avoid changes and amendments that
would disturb regularity of future oper­
ations.

R

e g u l a t io n s

B y Arthur R . Cooney
Assistant Vice-President The Texarkana
National Bank, Texarkana, Texas

Once a customer detects an actual er­
ror in his interest, no matter how small,
and no matter if it is promptly cor­
rected, that customer is very liable to
have doubts about the interest of the
past and the future also. So, I believe
that it pays well to exercise the great­
est care in the matter of computing the
interest due each and every one of the
people who give us that confidence.
It may be a surprise to mention that

In my opinion, the most im p ortan t
rule to be followed is the one opposed
to the payment of checks against sav­
ings accounts w ith o u t the pass book
being presented. In some communities
this rule is neglected by banks and
customers alike. In a new or small de­
p a r tm e n t there appears to be no seri­
ous inconvenience connected w ith the
practice of handling a savings account
as if it w ere a checking account, but
th e habit is one th a t w ill eventually
gro w and become an unjust burden on
those banks who accord the checking

The New Home
of the

Equitable Bond &Mortgage Co.
Located at 180 W est Washington
Street, Chicago, is rapidly nearing
completion.
The confidence which has been
placed in this company by our

privilege to savings depositors.

The rate of interest is among the
first things to be decided in starting a
new savings department, and it is also
the first question many prospects con­
sider. If there is one question that is
asked more than all other questions it
is this: “What interest do you pay?’’
And, after the answer is given, the
most popular remark will be another
question, usually directed as a reflec­
tion: “ Is that all?” Still it calls for
an answer. The answer given to this
second question is worth some consid­
eration, for the reason that the per­
son is often a prospect with more than
an average sum to deposit. If it is
simply stated that the rate is fixed at
so much per cent, then the chance to
get the account of the prospect be­
comes limited. On the other hand, if
the opportunity is taken advantage of
by explaining that the rate paid is the
very best rate the bank can afford to
pay, following up this lead with an hon­
est effort along the lines of safety, then
there is an excellent chance to secure
a valuable account.
Another thing about interest is that
people generally expect—and they have
a right to expect—-the bank to compute
the amount of interest exactly right.


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Federal Reserve Bank of St. Louis

in some city banks, the savings busi­
ness is conducted without separate
quarters and equipment. In such places
even the accounts are kept in the same
ledger with checking accounts. How
they can distinguish between the two
forms of accounts with any systematic
regularity is hard for me to understand.
But it goes without saying that good
methods call for separate quarters and
special equipment to conduct a savings
department properly. To do so does
not require anything elaborate as may
be supposed by some bankers.

rapidly growing clientele has made
this expansion both possible and
necessary.
W e are assured that our new home
will be ready for occupancy on
or about

August 1, 1927
^

CURRENT

OFFER IN GS

S e c u r ity .
R a te
T h e A m b a s s a d o r A p a r tm e n ts F ir st M tg . F e e
— L o u i s v i l l e ...............................................................................
6V2
E d g e w a te r P la z a A p a r t m e n t s F ir s t M tg . F e e
— C h i c a g o .....................................................................................
7
180 W e s t
W a s h in g to n
B u ild in g
F i r s t M t g .’
L e a s e h o ld — C h ic a g o
.......................................... ..
ey2
T h e O x fo r d A p a r t m e n t s F ir s t M tg . F e e — C h i­
cago
.......................................... s ....................................................
6y2
T h e M o z a r t A p a r t m e n t s F ir s t M tg . F e e — C h i­
cago
.......................................................................
7
T h e S o u th la n d A p a r t m e n t s F ir s t M t g . F e e —
L o u is v ille
..................................................................................
6%
T h e T r a e m o u r A p t. H o te l F ir s t M tg . F e e —
C h ic a g o
............................................. .........................................
7
T u d o r M a n o r A p a r t m e n t s F ir s t . M t g . F e e —
C h ic a g o
..................................................... ..........................
7
S e c u r e d C o l l a t e r a l T r u s t G o ld N o t e s
S e r ie s A
. ..................................................... ......................... 5 % - 6

M a tu r ity

P r ic e

Y ie ld

-C

100

6 .5 0 %

193 3 M - D - C

100

7 .0 0 %

193 7

1944 M - D - C 1 100

6 .5 0 %

193 4 M - D - C

6 .5 0 %

1 9 3 4 -3 6 M - D - C

100

7 .0 0 %

1933 M - D - C

100

6 .5 0 %

1 9 3 0 -3 7 M - D - C

100

7 .0 0 %

1 9 3 2 -3 4

100

7 .0 0 %

1 yr. 6 m o.

M -D -C

M -D -C

^uitaT&le
BOND & MORTGAGE CO.
Rank Floor. 1 1 0 N. D E A R B O R N STR E E T.
C H IC A G O

R E P R E S E N T A T IV E S

IN

1 00

20 P R IN C IP A L

C IT IE S

100 5 .5 0 -6 %

Mid-Continent Banker

42

shorts term

U R

obligations haves been p u r­
chased by more thart-> yooo
banks in the United States.

G
A

M

e n e r a l

c c e p ta n c e

C

Executive Office * 2.5O WEST

o to rs

o r p o r a t io n
57™

ST. / New York City

Ca-pital, Surplus & Undivided
Profits • $36,4x8,000.00

B A N K OF N E W S O U T H W A L E S , A u s t r a l ia
Paid-Up Capital
Reserve Fund - 23,750,000.00
Reserve Liability of
Proprietors - 30.000,000.00
$83,750,000.00

EST AB L ISH ED 1817

Head Office i

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

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

» 1 5 . A m s } $410,975,720.00

OSCAR LINES, General Manager

431 Branches and Agencies in all A u stralian States, New Z ela n d , Fiji,
Papua, M an dated Territory of New G u in ea and London
A u s t r a li a

PoDulation, 6.000,000; Area. 2,974,581 square miles; Sheep, 80,110,000; Cattle, 14,350,000;
Horses, 2,400,000; Imports, $785,500,000; Exports,$805,600,000.
A n n u a l V a lu e o f A u s tr a lia ’ s P ro d u c ts

Agricultural, $405,625,000; Pastoral, $514,215,000; Dairying, $210,559,000; Mining, $111,159,500;
Manufacturing, $1,742,888,000; Total, $2,984,446,500.
FOREIGN BILLS COLLE C TE D —Cable remittances made to, and Drafts drawn on Foreign
places D IR E C T. Circular Notes issued, NEGOTIABLE THROUGHOUT TH E W ORLD.

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


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

Very much of what has just been
mentioned about equipment applies
also to the accounting of a savings de­
partment, and few other things about
accounting need be said here, without
going into a lot of commonplace de­
tails. There are several equally good
systems a small city bank may use to
its advantage. I believe that nearly all
banks now keep their accounts by num­
bers, which is certainly a great advan­
tage in several ways. Beside that, I
want to mention just a few things I
like about modern savings account rec­
ords, such as the vertical card ledger.
It is the clearest, exact accounting sys­
tem imaginable. When a day’s work is
done and checked, it is disposed of—
with the totals of each day carefully
verified, the accounts are always in
balance and all transactions are entered
on the proper individul cards. Such a
satisfactory condition as this cannot be
attained in the checking department,
for there the proof sheets do not prove
ALL that the daily proof sheet of a
savings ledger does.
In the numerical card system, we
have perfection to a degree that I
would rank next to the adding machine
for being reliable.
If I were to classify all of the meth­
ods used to secure savings accounts,
I would list them under three separate
divisions; Advertising, Soliciting and
Good Will.
Throughout the country are hundreds
of advertising firms, devoted to the spe­
cial business of promoting savings de­
partments. These people are so ener­
getic and active in their work of selling
their services to large and small banks
everywhere, that the small city bank is
constantly faced with the problem of
elimination. It does not appear to me
that there is any danger of a savings
department neglecting to do enough ad­
vertising.
Many advertising firms appear to
have the idea that their service will fit
in everywhere; that it can be afforded
everywhere and that it will get the
same results everywhere. What they
do not take into consideration, the
banker should before he buys. There
are so many good propositions he can­
not buy all of them; even if he could,
his field would not produce the results
that, are “assured” him. Therefore, it
is to his best interests to select care­
fully what he will use, considering how
the thing will take in his own locality.
Such a policy leaves him free to get the
most for his money, with a great vari­
ety of choice, rather than accept all
the attractive offers as quickly as they
come along, until the funds are ex­
hausted for the time being.
Advertise? Certainly, but be sure

St. Louis, July, 1927
you are right before you buy.
How about soliciting: I refer first
and more especially to the work of one
or more persons who are hired on com­
mission to make a canvass of the com­
munity. In this there are advantages
and disadvantages. The advantage is
that it affords a definite, direct way of
placing a certain number of names on
the bocks in a short period of time.
With the number of customers thus se­
cured, there will always be a percent­
age of valuable accounts developed.
What the percentage proves to be de­
pends very much on the quality of
work performed by the solicitors. If
the workers are of the highest type,
devoting an honest effort to sell the
bank’s services to desirable prospects,
then the ultimate returns should be
worth the effort and expense.
Close co-operation between the bank
and solicitors will, of course, improve
the results. Courteous attention to the
new customers combined with follow­
up work will add to the advantages.
To have a regular solicitor employed
to solicit savings accounts, seems to
me to be the ideal way to go outside
the bank to develop business. Where
the field is large enough to keep a cap­
able salesman steadily engaged, I can
not doubt that the results would be al­
together profitable. In the smaller
cities over the country such an arrange­
ment would be too expensive to be
adopted, for the reason that the more
active the work, the sooner would re­
turns diminish, until the community
would have more savings accounts than
there would be income to sustain.
Good-will, it seems to me, is one of
the most important means to develop
savings business. I suppose that be­
cause it is not a tangible thing that one
may buy, or see, or run, we do not of­
ten consider its real value, and how to
use it to further our progress. It has
the peculiar fact that while we know
it works, we do not always observe it
working.
If there is any mysterious something
that will get wonderful results, I be­
lieve it must be that unseen thing we
call good will. There is nothing else
quite like it, so far as I have been able
to learn. The mystery about it is that
we do certain things in ways that we
think are right and proper, in a friendly
spirit, because it is most pleasant to
do things that way; then—it may be a
day or a year later—some result comes
about in a most unexpected way.
One might say that influence, by
friendly contact is a slow and uncertain
way to build. But it is no less satis­
factory than quick, expensive methods.

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

43

S u ita b le
I n v e s tm e n ts
fo r B a n k s
O u r investment list in cludes b o n d s
o f cou n ties, cities, districts and o f
industrial, railroad
and p u b lic
service
corporations.
Each
security we o ffe r has been p u r ­
chased outright for the investment
o f o u r o w n funds and is offered
with ou r r e co m m e n d a tio n .
O u r fifty-one years o f experien ce
assures careful selection o f invest­
ments; careful selection means not
on ly inherent security and adequate
yield, but also s u ita b le n e s s for the
exacting requirem ents o f a b a n k ’ s
b o n d a c c o u n t.
W r i t e or w ire f o r
cu rren t

o ffe rin g

I d v i o i v Tis i s t
o f

ou r
list.

C o m pa n y

E a s t S t .L o n s

Member Federal Reserve System

Mid-Continent Banker

44

St. Louis Stock Exchange
O F F IC IA L Q U O T A T IO N S

T ru st C om pan y S tocks
M ercan tile T ru st ................................
Street R ailw ay S tock s
St. L ou is P u b lic Service,

ESTABLISHED

1877

LISTED
BONDS
W e are prepared to
furnish accurate quo­
tations,

and

prompt

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

years

investment

in

field

is also at the disposal
of our clients.

♦
F r a n c is , B r o . &

Co.

INVESTMENT SECURITIES
2 14 -18 N. Fourth St.

Kennedy Building

S T . L O U IS

TULSA


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

C o m ..

Ju ne 20th M on th ’ s P rice R an g
L a st Sale P ric e L o w
H ig h
........
152
154
........
275
282
150
150
152
........
167%
1671

100
N o P ar

M iscellaneous S tocks
A m erica n C redit In dem n ity ........
A . S. A lo e Co., C o m ........................
A . S. A lo e Co., P f d ..........................
B aer, S tern berg & Cohen,
1st pfd.
B aer, S tern berg & Cohen, 2nd pfd.
B aer, S tern b erg & Cohen, C o m ..
B e r ry M otor ........................................
B e st C lym er C om p an y ................ ..
B o y d -W e ls h Shoe ..............................
B row n Shoe, p f d ................................
B row n Shoe, C o m ..............................
C erta in -teed P rod u cts, 1 st p f d ...
C h icag o R y. E qu ip., p fd ..................
M se n sta d t M a n u factu rin g, p f d . . .
E. L. B ru ce, C o m ..............................
E . L. B ru ce, p fd ..................................
E ld e r M fg., 1st p f d . . . . ..................
E m e rso n E lectric, p fd ......................
E ly & W a lk er D ry G oods,
1st pfd.
E ly & W a lk e r D ry G oods, 2nd pfd.
Eily & W a lk e r D ry G oods, C om . .
E ld e r M fg ., “ A ” ....................................
F red M eda rt M fg., C o m ..................
F u lton Iron W ork s, p fd ..................
F u lto n Iron W o rk s, C o m ................
F. B u rk art U n its ..............................
H a m ilto n -B ro w n Shoe ....................
H u ssm a n R efr., C om 1........................
H u ttig S. & D., p fd ............................
H u ttig S. & D., C o m .....................
H y d ra u lic P ress B rick , p fd ............
H y d ra u lic P ress B rick , C o m ..........
In d ep en d en t P a ck in g , p f d ................
In d ep en d en t P ack in g, C o m ..............
In tern ation a l Shoe, p fd .................
In tern ation a l Shoe, C o m ..................
Joh ansen S hoe ..................................
Joh n son -S . & S. S h o e ......................
L a c le d e Gas L igh t, p fd ..................
L a c le d e S teel C o ..................................
M o.-Ills. Stores, p fd ..........................
M o.-Ills. Stores, C o m ..........................
M o. P o rtla n d C em ent .............
M o. P ortlan d C em ent, 20% p a id ..
M oloney E l., p fd ...................................
N at. C andy, 1st p fd .........................
N at. C andy, 2nd p fd .........................
N at. C andy, C o m ...................................
P e d ig o -W e b e r Shoe ..........................
P lan ters R ealty, p f d ........................
P ola r W a v e I. & F., “ A ” ..............
R ic e -S tix D ry G oods, 1st p f d ..........
R ic e -S tix D ry G oods, 2nd p fd ........
R ic e -S tix D ry G oods, C o m ..............
S c ru g g s -V .-B . D. G., 1st p fd ----S c r u g g s -V .-B . D. G., 2nd p f d . . . .
S c ru g g s -V .-B . D. G., C o m ............
Scullin Steel, p fd ..................................
S ecu rities Inv., C o m ........................
Sheffield Steel, C o m ..........................
S kou ras B ros., “ A ” ..........................
S ou th w estern B ell T el., p fd ............
St. L o u is A m u sem en t “ A ” ..............
St. L o u is Car, C o m ..........................
St. L o u is Car, p f d ..............................
S tix -B a e r & F u lle r..............................
W a g n e r E lectric, C o m ......................
W a g n e r E le ctric C orp., p fd ............
W m . W a ltk e & Co., C o m ................
W m . W a ltk e & Co., p f d ....................
W a b a s h Tel. S ec., p fd ....................

25
20
100
100
100
N o P ar
No Par
No P ar
N o P ar
100
100
100
25
100
N o P ar
100
100
100
100
100
25
100
No P ar
100
N o P ar
No Par
25
N o P ar
100
N o P ar
100
100
100
N o Par
100
N o P ar
N o P ar
N o P'ar
100
100
100
N o P ar
25
25
100
100
100
100
N o P ar
100
N o P ar
100
100
N o Par
100
100
100
N o P ar
N o P ar
N o P ar
No P ar
100
N o-P ar
10
100
N o P ar
N o P ar
100
N o P ar
100
100

Mining S tocks
G ran ite B i-M eta llic ................
C onsolid ated L ead & Z in c Co.,
“ A ” ......................................................

N o P ar

S treet R ailw ay Bonds
E a st St. L ou is & Sub. Co., 5 s . . . .
St. L. & Sub. R y ., Gen. M ort. 5s
C /D .......................................................
U nited R ailw ays, 4 s..........................
U n ite d R ailw ays, 4s, C /D ................

429 y2

35
96
97
30
35 V2

428

430

77

24

26

4251

60
36%

142
585
35
25
50
215
125
1167
155
144
225
36
127

53
35

102%

10734
3114
50
10

98
22 %
75
4%
109%
179
26
58
107
39
100%

107
36

96
97

21%

22

15
24
37%
115
33%
107%
35
97
105%
107%
115
91
3iys
66

30
45
8

30
35
31
97

22%
70
4%

19%
26%
117%

26%
36

10

15
34
39
118
36%
112

23
101

35
97
107
111

115
92
33%
68%
30
50
10

31%
37
31%
98
25
75
5

110
21

110

109
178%
26
58
113%
170
107
15%
41%
39
100 %
1 12 %
107

110 %

101

34
93%
32%
110

19 y2.

102%

96
97

22
101

97

Sales M ay 20
to June 20
Shares
61
42
714
25

99
19 Vs
80
82
19%
37
34
26%
39
116%
43
IS

24
185
28
58
119
170
108
15%
47
39
100 Vi
113
107
1 10 %
36
93%
3« i l
110
100

19%
80
82
20

38
35
28%
40
119
44
18%

20
111

85
20

40
61
90
1610
21.5
16
125
570
1269
365
257
192
285
S45
285
90
160
440
1171
225
70
244
7
45
400
1041
244
85
17
120

2062
1733
10
454
250
220

970
10

15
435
582
675
630
585
963
75
215
10

100

100

26
33
87%
75
112 %
104

27
39%
90
77
112%
105

35
5915
486

30

CO
o

P ar
Bank S tock s
V alu e
B o a tm e n ’ s B an k ................................
100
F irst N ational B an k ........................
100
N a t’l B an k o f C o m m e r ce ................
100
S ta te N ation al B an k ......................
100

1321

220

5
190

12%

13 %

792

Y ear
1932

89%

91%

44000

1923
1934
1934

83%
79%
79%

8'3%
80%
79%

4000
113000
50000

10 0 %
100%

10 0 %
102

103%

103%

100

100

9000
15000
23500
32500

M iscellaneous Bonds
K in lo ch L on g D istan ce, 5 s..............
1929
W a g n e r E lectric M fg., 7 s.............. Serial
H ou ston Oil, 6 % s ...............................
1935
Scullin Steel, 6 s ....................................
1941

12%

79%

45

St. Louis, July, 1927

How “Investment Trusts” Operate
TABLE

B y William W . Welsh

Baker, Kellogg & Co., Inc., Chicago
T HE sudden acquisition of a large
portion of the world’s supply of
capital and credit, such as 'has
taken place in the United States in re­
cent years, and the large increase in
savings as a result of general pros­
perity, have created problems hereto­
fore unknown to and unappreciated by
the American investor. The inevitable
result of these conditions has been a
lowering of interest rates and a de­
creasing yield on investments, which
may sooner or later approach the point
of unprofitableness for many investors.
When such a point is reached it be­
comes desirable for capital to seek em­
ployment in markets offering more at­
tractive returns. To meet similar con­
ditions, Great Britain, between 1880
and 1890 originated the investment
trust.
Great Britain was then attaining the
position of creditor nation of the world,
which it held up to the outbreak of the
war. During this time interest rates
were low and the supply of capital was
in excess of home demands. At the
same time there were many countries
throughout the world, such as the west­
ern part of the United States, where
capital was needed and attractive re­
turns were offered on sound invest­
ments. Scottish and English capital ac­
cordingly sought these more remunera­
tive fields abroad.
The United States is now the chief
creditor nation of the world, and it is
likely that savings will exceed the capi­
tal requirements of domestic industries.
Within the next several decades un­
doubtedly this country will see the cre-

Sm

B— P R I C E

RANGE

921/2
2471/2
425
96%

A r m y & N a v y 5% cum . p r e f . .
D o. d e f........................
B ritish In vestm en t d e f...............
Do. 4% & 5% cum . p r e f............
F o re ig n & C'ol. Invest. 5% non -cum.
p re f............................
Do. d e f........................
Gov. Stk. & O ther Sec. 5% n on -eu m .
p re f............................
Do. d e f.........................
G uardian In vestm en t, 4% % p r e f............
Dio. d e f........................
In tern ation a l 4% % cum . p re f. .
Do. d e f........................
M erc. Invest. & G eneral 5% cum . pref.
D o. o r d ........................
M e rch a n ts’ 4% cum . p r e f..........
Do. ord .......................
M etrop olitan ord. .
Om nium 5% cum . p re f................
Do. d e f........................
P re m ier In vestm en t ord ............
D o. 5% cum . p r e f ..
Do. 4% deb. red. 1961................
R a ilw a y Deb. iV2 % cum . p ref.
D o. o r d .......................
R a ilw a y Shre. 5% % cum . p ref
Do. ord. s t o c k ........
R iv e r P la te & Gen. 4i%% cum . p ref. ..
D o. d e f................................................

92%
I.341/2

TABLE

£

%

891/2
1271/2

108
134%

91
1313/2

84%

100
113
913/2
97
86
733/2
108
120%
86
126
226 % x
99
103
104
98
993/2
93 X
105 X
SI 261/2
76
97
187

87
164%
791/2

5.74
831/2
6.08 1773/2
82i/2
5.72
5.73 2021%
5.89
74 X
5.78 I 651/2X
5.35
93%
5.39 2851%
5.44
72 X
5.99 218i%x
5.29 370
5.78
83%
5.46 1641%
6.23 164
82%
6.06
5.75
83i%
5.59
773%
5.70 1353%
6.13
99'
5.98 1453%
5.71
79
5.58 3091%

6.05
5.64
5.45
5.19
6.08
5.01
5.35
4.90
5.55
5.49
5.00
5.99
6.08
6.10
6.06
5.85
5.84
5.90
5.55
5.50
5.7S
5.65

72%
1%
5
993%
262 3%x

5.51
5.70
3.34
5.53
5.34

172

196
791/2
1571/2
96 V2
272
76
205
360
87
180
168
88
84
811/2
1443/2
100
145
81%
289

751/2
123 y2

93
230y2
72
1901/2
320
83
120%
124
80 1/2
80%
78
134
98 y,
113%
79
245%
72%

98%
106
205%
t 1re
cum . pref. stock .
AND

69,011
36,814
54,093

7
5%
5

57,520
44,289
55,473

194,293
83,932
63,115
90,843
38,318
42,074
65,577
48,907
48,431

7
8
13
13
6y,

248,994
103,531
94,584
92,394
43,413
51,554
72,628
65,368
60,295

7

7
5
n

172,909
67,659

18

10

74%
1%,
43/4
100%
235

89%
134%

5.69
5.58

5.45
5.75

4.70
5.48
5.96

1925
N et R ev. D iv.
%

£

49,485
207,882
130,030

12
20
7%
10
10
8

68,335
47,630
59,029

12
11
17%
16
8

8
7%
6%
14
(10B
(15 A
12%

264,347
108,512
115,364
117,057
44,533
61,331
76,293
68,573
64,204
191,855
115,416

13
12
18 3/2
17
8
10

s

7%

16
(10B
(20A
14

up liquid secondary

reserves,

Co.
consisting

of

Maintenance of bond accounts at the peak of efficiency.
T he partners will be pleased to give the benefit of their
long experience in this field to your investment problems.
J.

5 0 9

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Federal Reserve Bank of St. Louis

H ern d on S m ith

O liv e

S tre e t

C h a s. W . M o o r e

W m . H . B u rg

W.

S t.

C. M oreh ea d

L o u is ,

278,902
114,475
119,038
144,820
73,525
65,272
77,763
82,997
67,940

M o.

10

10%
8%
14
12
18%
18
10
10
8
g
173%

(10B
210,711
143,735
1,988,744

For many years we have been successfully serving banks
and institutions in:
Building
sound bonds.

1926
N et R ev. Div.
£
%
51,094
14
219,852
20
137,082
7%
72,037
66,032
63,469

1,789,926

, Moore &

it h

5.50
5.70

DIVIDENDS

8
10
7

1,608,421

5.60
5.18
4.55
5.40

5.45
4 .S8

1741/2

95

5.30

88%
2703%
440
921/2

5.53

76%
138%
93%
2411/2
73%
200%
350
86 1/2
1463/2
160%
82%
82%
8O1/2
140%
SI221/2
125%
791/2
287%

414

1924
N et R ev. D iv.
£
%
12
47,158
203,392
19
127,269
7%

9%
14
8

1,433,405

903/2
220
410
94

1271/2
791/2

42,719
188,940
145,939

160,927
59,472

106
177%
259%
103

931/2

A— R EVENUES

1913
N et R ev. Div.

88
195
395
93 %

89
1801/2

S cottish A m . Invest. 4% p ref.
75
Do. ord. “ B ” ( £ 1 )
..........1 13/16
D o. ord. “ A ” ( £ 1 )
5%
U. S. D eb. 5% % cum . p r e f . . . .
101%.
260
Do. ord. s t o c k ........
t— £ 1 shares. s— 7 % %

S cottish A m er.
In v est......................
U. S. D eb ..................

YIELDS

P rice
Ju ly 30, Mar. 30, 1926 Mar. 17, 1927P rice o f 1926
P ric e Y ield P rice Y ield
H igh est R ow est
1914

C om pan y

C om pan y
T ru sts
A r m y & N a v y ..........
B ritish In v estm en t.
F oreig n & C olonial
Govt. S tock &
O ther S ecu rities.
G uardian ..................
International ..........
M ercan tile In v estm ent & General.
M erch an ts’ ..............
M etrop olitan ..........
N o rth ’ n A m e rica n .
Om nium ...................
P rem ier ....................
R y. D eben tu re . . . .
R a ilw a y . S h a re ........
R iv e r P la te & G en’l

AND

(20A
14

Mid-Cont inent Banke r

46

Knight, Dysart & Gam ble
Investment Securities
C O R P O R A T IO N
P U B L IC U T I L I T Y
R A IL R O A D
M U N IC IP A L

BO N D S

401 Olive Street
St. Louis
G A rfield 7790

M EM BERS
N E W Y O R K STO C K E X C H A N G E
ST. LOUIS STO C K E X C H A N G E

S e c u r i t i e s

D

a

w

e

,

s

ill

M

a

y

n

f o r

a

r

I n v e s t m

d

4

e n t

C

o

m

p

a

n

y

W EST MONROE STREET
C H IC A G O

Do bu siness w ith this stron g com p an y,
w h ich has gain ed a co u n tr y -w id e re p u ta ­
tion as a “ N ational In stitu tion o f S erv ­
ice .”
T h e F ederal S urety C om pan y is m anaged
b y exp erien ced un derw riters, and has
from its con cep tion built fo r S T R E N G T H
rath er than size.
B a ck ed b y F ederal Service, these lines
are w ritten — A ccid en t and H ealth , A u t o ­
m obile, B urglary, P late Glass, P u blic
L ia b ility and W o rk m e n 's C om pen sation
Insurance, and S urety Bonds.

FEDER AL SURETY COMPANY
C A S U A L T Y IN S U R A N C E

SURETY BO N D S

W . L. T A Y L O R , Vice-President and General Manager

H O M E O F F IC E

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

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

ation and development of investing
companies to an extent at least equal
to, if not surpassing, that Which took
place in Great Britain.
Aggregate Capital of $70,000,000

Reviewing the development of the in­
vestment trust in Great Britain, we
find that in 1886 twelve of these were
listed in London, with an aggregate
capitalization of about $70,000,000.
At the present time about one hundred
and seventy-nine are listed, having an
aggregate capital of over $1 ,000 ,000 ,000. The striking progress, and in­
crease in value of the British invest­
ment shares, may be seen from the ac­
companying tables taken from the
London Economist, and showing com­
parative share prices of a group of
representative trusts. It should not be
forgotten that during the period shown
the World War occurred, with its aftermath of chaos and dislocation in In­
vestment markets.
The success of the British investment
trust has been based on the application
of two fundamental principles of in­
vestment banking, namely, diversifica­
tion of investment risk and competent
management. The principle of diversi­
fication of investment risk under com­
petent management is acknowledged
the world over to be fundamentally
sound. If any proof of this were need­
ed, all that is necessary is to glance at
the result achieved by the leading Brit­
ish trusts during 1926. It might have
been thought that a year which was
marked by exceptional difficulties m
Great Britain would have resulted in
the receipt by investment trusts of
smaller revenue, owing to dividend re­
ductions by industrial enterprises. As
a matter of fact, however, the reverse
was the case, for an analysis of the ac­
counts of seventeen representative con­
cerns shows that they all earned higher
profits than in 1925. The total profits
of the group in respect of the past
twelve months were £1,789,926 for
1925, £1,608,421 for 1924, and £1,433,405 for 1913. The shareholders bene­
fited from this prosperity.
Diversifying Inv estment Risk

Diversification of investment risk
may be obtained through the selection
of securities as to the date of maturity,
as to the character of the issuing en­
tity, as to the type of the security of­
fered, and as to location. Diversifica­
tion as to the character of the issuing
entity is distribution of investments ac­
cording to the nature of the issuer, i. e.,
as to whether the issuer be government,
a railroad, a public utility, or indus­
trial corporation. Diversification as to
the kind of security offered refers to
the distribution of investments as to
common and preferred stocks and as to
secured and unsecured bonds. Diversi-

St. Louis, July, 1927

47

fication as to location refers to the dis­
tribution of holdings as to the country
of origin.
Any large investment will embrace
as great a diversification in the various
ways as is practical and as can be ob­
tained with a satisfactory return upon
the total investment. Diversification is
not an end in itself and should never
be subordinated to the intrinsic worth
of the security. It is merely a means
of applying the law of averages to risk
and reducing that factor by mechanical
means.
Investm ent T r u s t

_

'

—

i

r

=

=

Conservative Securities
B artles-M agu ire Oil C om p an y 1st M t g . 6 / 2 %
due 3 / 1 / 3 6 @ 100 to yield 6 / £ % .

Benefits

Southern Daries, In c., 6 %

N o te s

due

5 /1 /3 0

@ 99.50 to yield 6 .1 8 % .
G oodyear Tire & R u bber 1st and Collateral 5 %
due 5 / 1 / 5 7 @ 97 to yield 5 .2 0 % .
Iow a Public Service

C om p an y

1st M t g .

5%

due 6 / 1 / 5 7 @ 97 .5 0 to yield 5 .1 6 % .
U n ited Public U tilities C om p an y 5 / 2 %

N o tes

due 4 / 1 / 2 9 @ 99.25 to yield 5 .9 0 % .
Federal Public Service C orporation 6 %

N otes

due 6 / 1 / 2 8 @ 1 0 0 to yield 6 % .

C o n c e s s io n s to B a n k s
S u b je c t to P r i o r S a le a n d C h a n g e in P r i c e

BARTLETT & GORDON
INCORPORATED
First National B ank Building
C H IC A G O
First Wisconsin National Bank Building

W a tc h in g the W o r l d ’s M arkets


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Federal Reserve Bank of St. Louis

—

H i

The benefits of the investment trust
under competent management are de­
rived from:
1. Its ability and experience in the
science of investing money qualities
not often found in the average investor
but without which no management
should undertake to handle an invest­
ment trust.
2. The facilities at its disposal for
obtaining and collating information on
which to base its actions, and the con­
nections which it can maintain through­
out the world for obtaining such infor­
mation and for carrying out its deci­
sions. The expenses of such facilities
and connections can well be afforded
where a large amount is involved but
are out of the question for the small
investor.
3. Special discounts or more favor­
able terms for large purchases which
are not available to private investors.
4. The constant supervision and at­
tention which the managers give to the
fund with a view toward shifting from
one security to another whenever con
ditions of yield or probable change add
materially to the income of the trust
both in annual return and in capital
profits from purchases and sales.
In so far as compatible with the
policy of diversification, the managers
of an investment trust are always
searching to find the cheapest markets
in which to make investments, and also
are seeking to determine when securi­
ties are overpriced in any market, with
the idea of selling such holdings as they
may have there.
It is a recognized
fact that economic cycles of prosperity
and depression take place in every
country and that the phases are never
the same in all countries at the same
time. With the information and sta­
tistics at its disposal and with its con­
nection abroad, the investment trust
takes advantage of this fact to an ex­
tent which the small investor never
could hope to equal.
Not only does the investment trust
carefully watch the various markets of
the world with the idea of investing in

..

MILWAUKEE

P

i|
_______________________________________________ •-------------------------•
------------------

^
—

________

—

~

—

T e le p h o n e y o u r s u b s c r ip tio n s for B o n d s o f A ll N ew Is s u e s to us
r e v e r s in g p h o n e c h a r g e s .

A U G U ST IN E & CO.
608 Security Bldg.

ST. L O U IS , M O .

Long Distance Telephone L. D. 32 or GArüeld 6270
M E M B E R S T . L O U IS

NEED

ENVELOPES?

W rite

H E C O — C H IC A G O

STOCK EXCHANGE

S ta te m e n t Envelopes

H E C O — C H IC A G O

)

I

Mid-Continent Banker

48

(T X / f'O R E than 2,000 banks o f the United
S S 0 v States purchase these notes fo r prime,
short-term investment.
Checkings available in any fin ancial center
and complete credit data on request.

Industrial
A ccep tan ce
Corporation
FINANCING STUD KB AKER

DEALERS

Collateral
Gold

EXCLUSIVELY

Trust

Notes

(THE N A T IO N A L C I T Y BANK OF NE W Y O R K , T rustee)

E xecutive Offices
GRAYBAR

BUILDING,

NEW

YORK

[Lexington Avenue at 43rd Street]

Commercial Paper Offices
NEW YORK

1

DALLAS

*

M IN N E A P O L IS

*

SA N F R A N C IS C O

C H IC A G O r 105 South La Salle Street
ST. LOUIS

f

Boatmen’ s Bank Building

the ones which offer the best oppor­
tunities but it is also continually ana­
lyzing in the light of new developments,
each individual security which it holds
as well as other securities which it does
not hold, in a constant effort to better
the intrinsic value and return on its
investment.
American investment trusts, strictly
speaking, as judged by the standard of
British writers, did not exist prior to
1920. There have been many so-called
investment trusts organized in the past
few years in the United States but a
close analysis of their structure shows
that many fall without the limits laid
down by the principles governing the
British investment trust.
Some are merely holding companies
whose purpose is to control and enter
into the active management of the busi­
nesses whose securities they purchase.
To sell their securities would defeat the
purpose of the holding company. While
one can secure a certain amount of
diversification by purchasing the securi­
ties of a holding company—for example,
in the purchase of securities of a public
utility holding company—such a pur­
chase confines the list to one class of
securities and to one management.
Others sometimes called “ bankers
shares” issue trust certificates which
simply represent ownership in a select­
ed lits of securities, trusteed with some
American trust company and are not
subject to substitution of their holdings
except under the most restricted con­
ditions. As a result they lose the bene­
fits that accrue to a proper investment
trust from the active supervision of its
holdings given by its management
whose aim is to secure to the invest­
ment trust the profits obtainable
through the proper adjustment of its
holdings to the varying conditions of
the investment market.
Is An

STICKNEY'DEN YV EN &CO.
STO CKS

BONDS

SECURITY B L D G > Ä ^ ST. LOUIS, MO.
G a r fie ld 3140

Mailing Lists
Will help you increase sales
Send for FREE catalog giving
counts and prices on classined
names of your best prospective
customers — National, State
and Local — Individuals, Pro­
fessions, Business Concerns.
GUARANTEED 5 ^ each


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Federal Reserve Bank of St. Louis

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

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

ENVELOPES FOR BAN KS

HECO ENVELOPE COMPANY
Chicago, Illinois

Investing Agency

The investment trust, as conceived
by the British, is, strictly speaking, an
investor. It is an agency for consoli­
dating the funds of many investors and
investing them with the object of ob­
taining the maximum return commen­
surate with the highest possible factor
of safety. This it accomplishes by di­
versification of its holdings under the
active supervision of a skilled and com­
petent management. The investment
trust does not acquire securities with
a view to controlling and actively man­
aging enterprises. It is not a finance
company, underwriting securities on a
large scale. It is purely an investor
buying securities of satisfactory re­
turn and the highest intrinsic worth.
Here in America two forms of invest­
ment trusts that may be properly
called such have grown up; the “re-

St. Louis, July, 1927

49

H igh-G rade
In vestm en t
S ecu rities
Send for our current list

W e specialize in locating
markets for unlisted se­
curities.

H. L. RUPPERT & CO.
(I N C O R P O R A T E D )

ST. LOUIS, MO.
402 Pine Street

M A in 1082

M em b er St. L ou is S to c k E xch ange

A MAGNIFICENT NEW HOTEL

4 0 0 R oom s with Baths
$Z>~andup For One Person
andup For Two Persons

r

HOTEL

^

Knickerbocker
ÿ.'NEWYOBKj
W E ST

45^

STREET

Ju st E ast o f B r o a d w a y

T im e s S q u a r e
h e a r t oF

theatrical and Shopping District


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Federal Reserve Bank of St. Louis

stricted” and the “free hand” trust.
The first class limits the investment
policy by certain preconceived rules
and regulations; the other gives the
management unrestricted choice in
matters of investment policy.
The limitations usually imposed upon
the limited type of investment trust
have to do chiefly with the diversifica­
tion and character of the securities pur­
chased. Investments are only eligible
for purchase in certain fixed rations,
for example, only a certain portion of
the funds may be invested in govern­
ment bonds, such and such a portion
in railroad bonds, public utilities, in­
dustrials, etc., or the ratio of bonds to
common and preferred stocks may be
fixed, or the amount of the investments
in any one country may be limited.
Sometimes investments are limited as
to amount in all these different ways.
Further, in order to be eligible for pur­
chase, certain preconceived standards
as to past record, earnings etc. are set
up. Corporation securities must show
a certain ratio of earnings to interest
requirements, the company must have
been established a certain number of
years have a certain ratio of surplus
to capital, etc. The result of these va­
ried restrictions is that a very large
percentage of sound available securi­
ties are automatically excluded from
the investment list of the trust.
F avor

Great

B r it a i n ’s Plan

Many students of the investment
trust, believing that self-imposed re­
strictions in matters of investment
policy, even when drawn up with great
foresight, do not remedy lack of ability
or sound judgment on the part of the
management, but may prohibit by their
very restrictions the changes of policy
necessary to meet changed conditions,
are inclined to favor the free-hand
trust which has proved so successful in
Great Britain.
It is believed that the investments
purchased by a carefully managed
large trust will naturally embrace a
wide range of securities if they are
chosen in accordance with intrinsic
worth and a satisfactory rate of re­
turn. Diversification thus becomes a
natural result of the effort to employ
funds properly rather than an end and
aim in itself. Advocates of the “free
hand” trust feel that investment secu­
rities are so varied in their character
and responsive to so many intangible
factors that preconceived standards of
judgment of this sort though of great
value in one set of conditions may be
entirely useless in other circumstances.
It is probably too early to express
any opinion as to the probable trend of
the development of the American in­
vestment trusts. It may be that the

ARKANSAS
ROAD BONDS
T he p rim ary and secon d a ry h ig h ­
w a y s h a v e been taken ov er b y the
State an d the road bon d issues
n ow
ou tstan d in g
a g ain st
th ese
roa d im provem en t d istricts a g g r e ­
g ate $58,000,000.00. T h e in terest and
prin cipal o f these b on d s is now
bein g paid by the S tate from a u to ­
m ob ile licen ses an d fees, g asolin a
and m otor oil taxes.
In our opinion, it makes these
bonds practically State obligations.
W e offer $150,000.00 of these bonds,
interest rate 5%, various issues
and maturities, subject to prior
sale, at 100 and accrued interest.
C ir c u la r s o n R e q u e s t

D’Oench, Duhme
Company, Inc.

&

507 L o c u s t S tr e e t
S T . LO U IS, M O .

T e le p h o n e G A rfie ld 6940

S U P E R IO R
S E C U R IT Y
S E R V IC E T O
BANKS
B AN K ER S and
BROKERS
D IR E C T T IC K E R SE RVIC E
for listed bond quotations
F A S T T H R O U G H W IR E S
to New York and every
other important market
A C T IV E T R A D IN G D EPT.
to furnish prompt quota­
tions on any security
S T A T IS T IC A L D E P A R T M E N T
to furnish latest data on
any security or company
M O N T H L Y Q U O T A T IO N SH EET
to list markets on many
inactive stocks and bonds
Your inquiries incited

M ark C.
S te in b e r g
& Co.
Olive
Boatmen’s Bank
Bldg.

4600
Hotel
Jefferson

ST. L O U IS
Members New York Stock Exchange
Members St. Louis Stock Exchange

Mid-Co nti nent Ban her

50

Lawrence Stern and Company
231 South La Salle Street « Chicago
B O A R D

O F

D IR E C T O R S

W IL L IA M W R IG L E Y , JR., Chairman of
the Board of William Wrigley Jr. Company

J O H N H E R T Z , Chairman of the Board of
Yellow Truck & Coach Manufacturing Co.

A L B E R T D . L A S K E R , Chairman of the
Board of Lord & Thomas and Logan

H E R B E R T L. ST E R N , President of
Balaban & Katz Corporation

STUYVESAN T PE AB O D Y,
of Peabody Coal Company

ALFREE) E T T L IN G E R , Vice President

President

JOSEPH J. R IC E , Vice President

C H A R L E S A . M cC U L L O C H , President
of The Parmelee Company

L A W R E N C E S T E R N , President

&

T h is com pany conducts a general securities business, originating
and participating in high-grade investm ent issues

O

f

f

e

E d ith

r

i

n

g

W H A T ’S

R o c k e f e lle r M c C o r m i c k T r u s t

First M o rtg a g e Bonds and N otes

Yielding
5 % to 6 %
BOND DEPARTMENT

KRENN &

D A T O , In c.

E x c lu s iv e A g e n t fo r E d ith R o c k e fe lle r M c C o r m i c k T r u s t

111 Broadway

39 S. LaSalle Street

916 W a ln u t Street

NEW Y O R K

CHICAGO

KANSAS CITY

S h ort T e r m P aper
fo r

Bank Investment

A ffilia te d w ith

INDIANAPOLIS


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

T

he

F letcher A

American trust will have a wider field
than the British investment trusts,
strictly speaking, and embrace many
functions not generally found in the
British trusts. In view of the present
state of flux and the newness of the
American trusts, it is probably desir­
able for an American investment trust
to adopt a form that is entirely flexible
and responsive to the changing condi­
tions with which investment trusts will
be confronted over a period of years.
If so, the provisions of its charter
should be sufficiently broad to enable
the directors to adapt it successfully
to that form of investment trust which
proves to be most successful in
America.
It is evident from a study of the con­
ditions which determine the success of
an investment trust that careful man­
agement is the most important single
factor of success. The experience of
British investment trusts bears out
this point. The untimate success of
any investment trust will, in the last
analysis, depend upon its management.

m e r ic a n

N a t io n a l B a n k o f I ndian apolis

LOUISVILLE

DETROIT

WHAT

ABOUT

B A N K IN G

(Continued from page 9)
(We agree that this is
quite a chunk of money to
have invested in a bank
building, but then, on
the other hand, a build­
ing can’t take bankrupt­
cy. The fact that we car­
ried this item at $36,000
in our last statement is
proof that it has been a
good investment. We’d
have continued to carry
it along at the old figure
but for the fact that some
of our stockholders were
clamoring for a dividend.
We have occupied this,
building for 14 years now,
and not a bit of deprecia­
tion has ever come to our
attention.
As soon as
we notice
any, we’ll
charge it off.)
OTHER REAL ESTATE...
63,378.54
(Representing not less
than $800,000 worth of
land, according to unbi­
ased appraisers.
How­
ever, we are going to
have it reappraised in the
near future, having dis­
covered that the mort­
gages ahead of us total
some $950,000. When and
if sold, any margin over
said mortgages will be­
long to us and our attor­
neys. Proper allowance
is made in the above fig-

51

St. Louis, July, 1927
ure for land on which
prior
mortgages
have
been foreclosed and the
redemption, periods have
expired. In such cases,
we
have
relentlessly
lopped off 50 per cent of
the amount of our claim.)
CASH ON HAND AND
IN OTHER BANKS.......
17,377.97
(Here is convincing proof
of what we have been
telling you right along—that no bank could pay
out if all its depositors
demanded their money on
the same day. Go ahead
and start a run, if you
want to accept “ Cash
Items” in payment of
your deposit.
OTHER ASSETS...............
NONE
(We are too conscientious,
to accept the fiction that
“Expense Account in Ex­
cess of Profits” is an
asset.
Some unscrupu­
lous bankers adopt this
expedient to make their
statements balance, but
we belong to the old
school, and scorn such
practices.)
TOTAL RESOURCES....... $1,773,861.09

Sound Bonds
oi Diverse Types
R ate

D ue

Y ield

Canadian National Ry. Co. . . . 4 's

1957 4.60%

Hudson Coal C o............................ 5s

1962 5.09%

City of Copenhagen, Denmark . . 5s

1952

5-25%

Iowa Southern Utilities Co. . . . 5is 1950 5.50%
State-Randolph Bldg. Corp.
C irc u la rs

H

o

a

g

l a

n

d

on

, A

. . . 5)s 1942 5.75%
Request

l l u

m

&

( o

.

Incorporated

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

34 Pine S t
N E W YORK

Liabilities.

DEPOSITS ......................... $ 416,889.70
(Is this fair? Here we
have loaned out over
$569,000 to help this com­
munity and swell our in­
terest account, and yet
our depositors have less
than $417,000 left on their
accounts!
5 per cent
paid on deposits.)
BILLS PAYABLE................
NONE
(We have advertised for
years that we had no
Bills Payable, and this
proves it.)
REDISCOUNTS ................
261,543.88
(As few of you know
what Rediscounts are, it
should be explained that
like Deposits and Capital,
they represent a liability
of the bank.)
CAPITAL STOCK..............
50,000.00
(This is the safety fund
which guarantees, the de­
posits of the bank. Our
stockholders must lose
their entire investment
before depositors can lose
a cent. You must not be­
lieve this; some of our
stockholders.
d i d n ’ t,
either, until they got
their assessment notices.)
TOTAL LIABILITIES...... $1,773,861.09

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

INVESTORS—
OUR BU LLETIN SERVICE
Will Help You
K eep thoroughly acquainted with the status o f your own hold­
ings and

secure

im portant data on general business and market

conditions.
Particular attention given to

inquiries on Public

Utilities,

in

which field we have specialized for years.
W rite for our descriptive circular 2-7.

H O W E, SNOW <& BERTLES
Incorporated
Investment Securities
Federal C om m erce T ru st B ld g ., St. Louis

New York

Chicago
Minneapolis

Detroit
San Francisco

Grand Rapids

Mid-Continent Banker

52

NOTE: As our head bookkeeper is
sick, it will be a favor to us if you
will kindly refrain from adding up the
columns. There was some disagree­
ment, even among the members, of our
staff, as to the correct totals, but you
can see plainly that the two sides are
even, so everything is all right.
ANNOUNCEMENT TO CUSTOMERS:
It may be that some of you who have
examined this statement of ours have
already suspected that there is some­
thing wrong with it. Your suspicions
are well grounded. We are short an
item under “liabilities.” There are no
“ Undivided Profits.” Now, we don’t
care about ourselves; it is our de­
positors we are thinking of at all times.
For your protection, we are going to

have to get some undivided profits to
divide. Of course, we do not have any
losses on our books now, but suppose
one of our bills receivable should get
into the waste basket through an over­
sight, and be burned up. Or suppose
a hold-up man should rob us. of some
of our cash items. To what account
could we charge the loss?
These terrifying possibilities have
led us to adopt a new policy with refer­
ence to services to customers. We find
that we have been doing too much work
for nothing. We have, therefore, de­
termined to institute a nominal charge
for certain items of service which our
customers have come to expect of us.,
and these charges are explained in the
following schedule:

Our Offerings CarefullyJudged
by aJury ofInvestment Censors
J7IR ST mortgage bond

a council of able financiers pass
expert opinion upon every
phase of the enterprise.

in­

vestments do not need
constant watching on your
part. For watchfulness and
supervision are our tasks.

During our twenty-two years
constructive investment serv­
ice it is significent that no
Mortgage and Securities bond
holder has ever lost a
dollar of principal or in­
interest. W r i t e f o r o u r

Before one penny is loaned on
an underwriting— and rarely
is more than 5 0 % of the
value of sound real es­
tate advanced— a jury of
investment bankers and

cu rren t

lis t

of

o ffe r in g s.

Mortgage &P
Securi ties Co.
C

M


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

e w

O

r l e a

n

s

*

S

a

i n

t

J

b o u

i s s ,

1. Making out Borrowers’ Finan­
cial Statements(each)............... $2.85
2. Legal Advice (covering any
given situation)..............................20
3. Drawing up Chattel Mortgages
in Favor of Bank (each)................ 75
4. Same (if taken for “additional
security” ) ................................ 1.35
5. Admission to Bank:
(a) For Purpose of Making
a Deposit...................... FREE
(b) To take out......................... 30
(c) Customers wearing rub­
ber boots (ordinary)........... 20
(d) Same (if worn previous­
ly in the feed lo t)............. 95
6 . Prescribing for sick horse........... 80
7. Market Forecasts:
(a) For
prophesying
low
market ................................ 25
(b) For prophesying high
market ................................ 85
8 . Overdraft and note due no­
tices (each)................................... 50
9. SYMPATHY RATES:
(a) Ordinary tale of woe
(listening
only — per
hour) ....................................40
(b) Responsive ejaculations
(“Well!
Well,”
“ Do
Tell!” etc.............................65
(c) Suggestions for plain and
fancy cussing
........... 1.00
(d) Tears of Sympathy:
(1) Shed by President—
each, .45 (per pair).. .75
These are guaran­
teed p r e s i d e n tial
tears of the first
water. Your money
back for drops of less
carat
than
%
weight.)
Shed by Cashier—each, .30 (per pair).. .50
Ordinary
Tellers’
Tears (per pint). . . . .60
(Note: Customers should place their
orders early, as we are using a great
many of these in our own business, and
the demand is likely at any time to
exceed the supply.)
10. In addition to the above items, our
Cashier has a series of lectures
which he will be glad to deliver
at any time for a fixed charge of
$1.00 each. The titles are:
“ How to Run a Farm.”
“How to Manage a Mercantile
Business.”
“How to Operate a Lumber Yard.”
“ How to Pay Off Your Past Due
Notes.”
“ How to Become a Millionaire
Through Systematic Saving,”

53

St. Louis, July, 1927

A lon g L a Salle Street

goes to his new duties with the best
wishes of hundreds of friends in the fi­
nancial district.
— M. C. B.—

B y W m . H . M aas, Chicago, Vice-Pres. The M id-Continent Banker
Soloman
One hundred and tw e n t y million dol­

lars is the estimated annual expendi­
ture of banks, trust companies and
bond houses in the United States for
financial advertising. This figure, of
course, is an estimate, but students of
the'situation say that it approaches the
actual expenditure near enough to give
the laymen an idea of the importance
which the printed word is. taking in
merchandising finance. Eighty per
cent of this amount, advertising ex­
perts say, is being spent by investment
houses.
2 i
— M. C. B.—
Just w h a t is a bank? T h a t question

seems, to be answered in the Chicago
Trust Company booklet recently dis­
tributed in connection with their twen­
ty-fifth anniversary celebration:
“A
bank is a storehouse of financial en­
ergy. It receives from its customers
raw material in the form of currency,
checks, drafts and notes and returns,
it to them in the finished form of
usable credit. What the banks re­
ceive from business, they vitalize and
return and neither goes far without the
other.”
— M. C. B.—
deposits in Chicago

Maas of The Mid-Continent Banker.
Effective July 1st, John Watson W i l ­

der, successful financial advertising
man who had his offices in the Trib­
une Tower, joins the well known bond
house of Thompson Ross & Co.
His
agency has- been dissolved and the
business sold to Doremus & Co.
Mr.
Wilder has been one of the outstand­
ing financial advertising writers in Chi­
cago for a number of years and he

Smith,

president

Ed w ard Hin tz, cashier of the Peoples

A N K E R S know that it pays the bank cus­

banks

tomer to form a definite banking connection

continue to record an annual increase.
Savings for the past year were $667,141,000.00, or an increase of $12,500.000.00. Chicago has 207 banks, which
is more than any other city in the
world.

and hold to it. I f the customer is worth while

Savings

— M. C. B.—
Chicago bankers and bond men

de­

siring Monday morning stimulus with
which to start the working week, might
drop in the office of Darby Day, gen­
eral agent, Union Central Life Insur­
ance Company, eighth floor of the Illinois-Merchants Bank Building.
This
master salesman and human dynamo,
endowed with selling personality plus,
talks to his men at that hour every
Monday morning. You will leave the
meeting with enough inspiration to give
you a good start on the week’s work.
The

— M. C. B.—
Financial A d ve rtis e rs ’ Associa­

tion in Chicago have announced the
following committee to look after the
activities of the association in this city
during the coming year: J. M. Easton,
Northern Trust Company, chairman;
Murlin Hoover, Reliance State Bank;
C. J. Eastman, Taylor-Ewart & Co.;
J. F. Gardiner, H. M. Byllesby & Co.;
Fred Mathison, Security Bank; H.
Fred Wilson, Continental & Commer­
cial National Bank, and William H.

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

the

Trust & Savings Bank, missed the Illi­
nois Bankers, Association convention at

The Value to Banks
of a
Strong Investment Banking
Connection

B

of

Northern Trust Company, has an­
nounced the appointment of James O.
Wallace as representative of the bank
in the Southwestern states. Mr. Wal­
lace was for a number of years bank
examiner of Missouri and more recent­
ly with the Fidelity National Bank and
Trust Company of Kansas City.

and the bank is able to render him adequate
service, the relationship grows in mutual value.
T h e same applies to a connection between a
bank and an investment banker. E very bank
should choose a bond house capable o f render­
ing the service it needs, and give that house its
confidence. T hat, too, will result in a relation­
ship o f reciprocal advantage.
Halsey, Stuart & Co. serves thousands of banks
in varying degree. T o all, it gives the benefit o f
resourceful facilities directed by a personnel that
is well trained in the application o f bond in­
vestment to bank needs,whether large or small,
always with consideration to local conditions.
W ithout obligation, we shall be glad to discuss with
your officers any problems relating to bond investments

HALSEY, S T U A R T & CO .
INCORPORATED

CHICAGO
NEW YORK
PHILADELPHIA
DETROIT
CLEVELAND
201 South La Salle St. 14 Wall St.
i l l South 15th St. 601 Griswold St. 925 Euclid Ave.
ST. LOUIS
BOSTON
MILWAUKEE
MINNEAPOLIS
319 North 4th St. 85 Devonshire St.
425 East Water St. 608 Second Ave., S.

Mid-Continent Banker

54

Danville, his first absence from this
annual gathering in thirteen years. Ed
and Mrs. Hintz are on their way to the
Yellowstone for a well deserved vaca­
tion.
Eugiene T.

— M. C. B.—
Hastings, one of George

Woodruff’s star salesmen for the Na­
tional Republic Company, is back at
his desk after an extended vacation.
— M. C. B.—
T h e w e e k of June 10th was a gala

one for the Utilities Securities Com­
pany. It marked the opening of their
splendid new quarters on the ground
floor at 230 South La Salle street.

D iv e r sifie d


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Federal Reserve Bank of St. Louis

Ten

pro minent financial

— M. C. B.—
Chicago bond men and bankers found

it difficult last month to “cover” all the
state bank association conventions,
which were held on somewhat conflict­
ing dates. Illinois, Iowa, Wisconsin
and Kentucky conventions were held
during the week of June 20th.

In v estm en ts

Stocks or Bonds . . . Local
or N ational. . . a large list
o f highly diversified Se­
curities . . . selected with
Safety o f the Principal
as o f prime im portance.

L O R E N Z O E. A N D E R S O N & CO.
711

advertising

men of Chicago, headed by Preston E.
Reed, secretary of the Financial Adver­
tisers’ Association, were delegates to
the annual meeting of the International
Advertising Association held in Den­
ver last month.

ST . C H A R L E S ST.

S T . L O U IS

First N ational Com pany, St.
Louis, Opens Real Estate
Departm ent
F.
O. Watts, president, First Na­
tional Bank in St. Louis, announces the
establishment of a real estate depart­
ment by the First National Company,
investment division of the bank.
This new department of service will
specialize in assisting the manufac­
turer in making essential studies neces­
sary in the selection of a location where
the greatest economy in operation can
be effected.
The real estate department will be
managed by Forest K. Woodruff, who
is intimately acquainted with real es­
tate problems and experienced in the
work of fitting business needs to avail­
able properties.

Northwestern National Life,
Enters Non-Participating
Field
The Northwestern National Life of
Minneapolis will enter the non-partici­
pating field with a full line of non-par­
ticipating policies, in addition to the
participating contracts it now issues,
according to an announcement made by
President C. J. Arnold. These will be
issued at low competitive rates. It is
also planned to issue policies at rates
based on the new American Men Mor­
tality Table just as soon as that table
is adopted or made permissive by the
states, in which the company operates.
The company’s new business is to be
placed on a 3 per cent basis.
To put these plans into effect the
company’s board of directors has called
a meeting of policyholders, at which
time the necessary amendments to the
company’s charters will be acted upon.
The proposal is that without depriving
any present policyholder or any future
holder of a mutual participating policy
of any of the rights, privileges and
powers that belong to the members of
mutual companies, the company will
issue $1 ,100,000 of capital stock for the
protection of non-participating business.
Dividends on the stock will be limited
by charter provision to the interest on
the capital investment and to profits
derived from non-participating busi­
ness, No part of the surplus derived
from the company’s present business,
which is all on the mutual participating
basis, nor from future mutual partici­
pating business, can be diverted to
shareholders.
The greater the obstacle, the more
glory in overcoming it, and difficulties
are but the maids of honor to set off
the virtue.—Moliere.

55

St. Louis, July, 1927

W hat Men Expect Affects
W hat They Do
B y M ilton O. Johnson

N EARLY everything that men do
is done with the expectation that
certain events will take place in the
future.
Much of that composite of economic
activities which we call general busi­
ness and financial conditions is the re­
sult of acts performed in accordance
with plans based on the expectation
that certain events will take place in
the future.
The merchant or jobber who follows
a hand-to-mouth buying policy rather
than stock his shelves with goods may
do so because he believes that as the
result of such factors as more rapid
and efficient transportation facilities
or excess manufacturing facilities he
will have little difficulty in getting
goods promptly, or, because he believes
that a declining commodity price level
is likely to continue.
Installment selling, with its roots in
a plethora of cheap money making
“ customer financing” possible and prof­
itable, and excess productive capacity
resulting in vigorous competitive pres­
sure for distributive outlets, will re­
sult in increased prosperity or malad­
justment, depending upon what those
who finance installment sales expect
will be the result of the methods' used
—particularly with respect to type of
merchandise, the amount of the down
payment and the provisions for the
payment of the balance.
Whether or not construction activity,
which has proceeded at an unparalleled
rate in this country for five years, will
be carried beyond present needs and
cause an unprofitable tie-up of capital
depends largely upon what those who
finance these activities expect will be
the demand for space at rentals which
will yield at least a fair competitive
return on the invested capital.
Fluctuations in the price level of a
group of dividend paying common
stocks over a period of years are due
to changes in the value of money,
changes in the amount of dividends
paid, and changes in that composite of
manipulation and expectation of events
to occur in the future sometimes re­
ferred to under the group term of
“ speculation.”
It matters little what the question at
issue may be, human conduct is based
largely on the expectation that certain
events will take place in the future,
and in gauging the outlook for general

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

business it must be kept in mind that
business sentiment or expectation is an
important factor, for what men think
affects what they do.
Recent expressions of opinion by fi­
nancial and industrial leaders as to
what they expect in 1927 have varied
from conservatism to pessimism. There
is little of that almost universal overconfidence which has immediately pre­
ceded all major business depressions
in the past. The predominant state
of mind now is, undoubtedly, one of

conservatism, and the extraordinary in­
crease in the collection, classification,
tabulation and interpretation of busi­
ness statistics during the past five
years plus a better understanding of
the uses and limitations of such statis­
tics as a tool has, undoubtedly, led to
a better understanding of the relation­
ship of production, prices, purchasing
power and prosperity—and, particu­
larly, the necessity of balanced pur­
chasing power as a basis for the con­
tinuation of a period of prosperity.
Conservative sentiment gives assur­
ance that we are not facing an adjust­
ment of such magnitude as a business
depression, but conservative sentiment
if it borders on doubt may promote a
reactionary tendency in general trade,
which would not disturb the general
stat6 of balance but which would lower
the efficiency of operation.

Do You K now —
That Italy, in order to indirectly improve her economic
condition, has allotted for educational purposes during
1927 a sum six times that of pre-war expenditures?
That the actual collections for revenues of the Republic
of Colombia exceeded the budgetary estimate for the fiscal
year ending December 31, 1926, by 42f^%.
That in Norway, the Norges Bank has reduced the bank
rate several times within the past year, and it now stands
at 4/4% as compared with 6% a year ago?
Successful investment in foreign securities
necessitates careful study of the current
changes in the financial and economic condi­
tions throughout the world.
The results of our survey of world condi­
tions are placed at the disposal of banks and
dealers without obligation.

BAKER, KELLOGG & CO., Inc,
A SP EC IA LIZE D SE R VIC E IN F O R E IG N SE C U R ITIES
FOR B A N K S A N D D E A LE R S

i n W e st M onroe Street
Chicago
NEW YORK
LONDON

TE LE P H O N E R A N D O LP H 041 5

DETROIT
BUENOS AIRES

Mid-Continent Banker

56

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

Special service to Banks in bonds
fo r investment or re-sale.

Men make many mistakes but they
are seldom due to reckless disregard
of the future, but are mainly the re­
sult of one or both of two causes: first,
the inadequacy and unreliability of
data; second, faulty reasoning. What­
ever the basis and method used in
formulating “expectations” they are an
important factor in the determination
of general business and financial con­
ditions, for “What Men Expect Affects
What They Do.”
B A N K E R ’S SON A C C O M P A N I E S
M a c M IL L A N TO A R C T IC .

Full details on request.

Ä.C.ALLYNandC O M P A N Y
National Bank of Commerce Bldg., St. Louis
CHICAGO
D E TR O IT

NEW Y ORK
M ILW AU KEE

BOSTON
M INNEAPOLIS

El IE

PHILADELPHIA
SAN FRANCISCO

i

The Midland Bank offers exceptional facilities for the transaction
o f banking business o f every description. Together with its
affiliations it operates nearly 2 4 0 0 branches in Great Britain
and Northern Ireland, and has agents and correspondents in
all parts o f the world. The Bank has Offices in the Atlantic
Liners A q u ita n ia , B eren ga ria and M a u reta n ia , and a foreign
branch office at 19 6 Piccadilly, London, specially equipped for
the use and convenience o f visitors in London.

M ID L A N D

B A N K

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

Affiliated Banks : Belfast Banking Co. Ltd., Northern Ireland; The
Clydesdale Bank Ltd., and North of Scotland Bank Ltd., Scotland.


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Federal Reserve Bank of St. Louis

T ) ANKERS and business men of
the country, confronted with the
problem of education and the desire for
travel on the part of their sons, might
follow the example of Mr. Frederick H.
Rawson, chairman of the board of the
Union Trust Company, Chicago, accord­
ing to newspaper men here. Last year
an opportunity presented itself for his
fourteen-year-old son Kenneth to ac­
company Commander Donald B. Mac­
Millan, the explorer, on an expedition
to the Far North. Kenneth was not a
lazy lad nor of the “ spoiled child” type.
He had taken his school work seri­
ously, particularly history and English.
Consequently, as a reward, it was pos­
sible for him to obtain parental con­
sent to make the hazardous trip.
He has narrated his experiences as
the first school boy to go to the Arc­
tic in an interesting book which re­
cently came off the press, entitled “A
Boy’s-Eye View of the Arctic,“ pub­
lished by The MacMillan Company. It
is well worth reading by every high
school boy in America.
When the Bowdoin sailed from Wiscasset, Maine, in 1925, outward bound
for the Arctic, it carried Kenneth Rawson as a cabin boy. He was then 14
years old. He had previously sailed
quite a bit during his vacation, and one
summer had helped with the scientific
work for the Bureau of Fisheries on a
small schooner. He tells the story of
the exciting months under Commander
MacMillan with a detail that other
boys will appreciate.
The book, dedicated to his mother,
is illustrated with photographs taken
by the author and others on the expe­
dition, and contains an introduction by
Commander Donald B. MacMillan:
“Under starlit skies and unruffled sea;
in the semi-darkness of his 10-11 watch,
I watched him as he stood at the
wheel ‘giving her a spoke’ now and then
to keep her on her course, his
small sheepskin-covered form outlined
against the black of the ocean,” writes
the Commander. “In howling winds and
with the Bowdoin plunging and buck­
ing head seas, decks awash and life
lines stretched, the same huddled form,

57

St. Louis, July, 1927
eyes on the compass card, doing his
best, with never a trace of quit, I, a
shipmate for four months, knew him.
Young Rawson made good.”
Prom the opening chapter, “Here
Endeth The Lesson,” wherein he de­
scribes his feelings while up in his
room at The Hill School studying, and
suddenly receiving a long-distance tele­
phone call from his father suggesting
he take advantage of the opportunity
to make the trip, on through until the
last chapter when he tells of “ Storm
and Stress and—Home!” every one of
the one hundred and forty-two pages of
the book are chock full of youthful ro­
mance and adventure.
As proof of his confidence in the
lad, Commander MacMillan took him
again to the Arctic this year, the ex­
pedition returning to the States re­
cently.
Both

TH E

N A TIO N A L

P A R K

B A N K

o f NEW YOR K
214 BROADW AY
Uptown Offices:
Park Avenue and 46th Street—Seventh Avenue and 32nd Street

Established 1856

D IRECTO RS
Charles S crib n er
R ichard D elafield
F ra n cis R. A p pleton
Cornelius V an d erb ilt
G ilbert G. T h orn e
T h om as F. V ietor

John G. M ilburn
W illiam V in cen t A s to r
Josep h D. O liver
L ew is Cass L edyard , Jr.
D avid M. G ood rich
E u gen iu s H . O u terbridge

K en n eth P. B udd
John H. F u lton
F ra n k L. P olk
B en jam in Joy
G eorge M. M offett

Banking in all its branches
Commercial and Travelers’ Credit issued.
Correspondents in all
principal Cities in the World. Foreign Exchange bought and sold.
Corporate and Personal Trusts; Safekeeping of Securities; Collec­
tion of Income. Investment Service for Customers. Safes in our
Safe Deposit Vaults at moderate rental.
Capital, Surplus and Undivided Profits $34,000,000

Right

As a steamer was leaving the harbor
of Athens a young passenger ap­
proached the captain, and pointing to
the distant hills, inquired:
“What is that white stuff on the
hills, captain?1”
“ That is snow, madam,” replied he
capain.
“Well,” remarked the lady, “ I thought
so myself, but a gentleman just told
me it was, Greece.”—Smiles.

ENVELOPES- F o r E v e r y P u r p o s e

H E C O — C H IC A G O

Registered M ail Envelopes

HECO ENVELOPE COMPANY
Chicago, Illinois

O B MCCLINTOCK COMPANY

MINNEAPOLIS, - - MINN.

G. H . W A L K E R & C O .

Complete
Investment Service


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Federal Reserve Bank of St. Louis

BONDS

Government,
Municipal,
Public Utility,
Railway,
Corporation

□

Especial Attention Given
Investment Accounts of
Country Banks and their
Clients.
□

We invite inquiries by wire at
our expense.

D irec t

p r iv a t e

e n a b le u s

to

w ire s

to

a ll

ren d er p r o m p t

p r in c ip a l

m a rk ets

a n d effic ie n t s e r v ic e

in b u y i n g a n d s e l l i n g l i s t e d b o n d s ,

t

*

,

Y

□

Ja m e s C. W il l s o n & Co.

MEMBERS NEW YORK, ST LOUIS AND
CHICAGO STOCK EXCHANGES

IS O S O U T H T I T T H S T R E E T
L O U IS V IL L E . K E N T U C K Y

TsEcimiTf^lU

BRO A DW A Y a n d LO CUST
S t . L o u is , M o .

, ,

Mid-Continent Banker

58

N ew A . B . A . Booklet on
Credit Bureaus

The New Morrison, when completed, will he the world’ s
largest and tallest hotel, 46 stories high, with 3,400 rooms

W h e n in C H IC A G O
Enjoy your stay—at the superb new

MORRISON
HOTEL
M adison and Clark Streets

The Tallest Hotel in the World
Forty-six Stories High
Closest in the city to offices, theatres, stores and
railroad stations
H om e o f the Boston Oyster House

1 9 4 4 R oom s

L o w e st R a te s

A L L rooms are outside, each with bath, running ice water,
bed head lamp and Servidor. A housekeeper is stationed
on each floor. All guests enjoy garage service. The famous
Terrace Garden provides good food, sparkling entertainment
and sprightly dance music.


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

Write or Wire for Reservations

A treatise on credit bureaus for city
and county bank groups giving in detail
methods, operations, functions, forms
and numerous practical suggestions has
been issued by the Committee on Credit
Bureaus, Clearing House Section, Amer­
ican Bankers Association. The infor­
mation presented in the booklet is ap­
plicable to the formation and adminis­
tration of credit bureaus whether oper­
ated independently or in connection
with clearing house associations al­
ready organized. In a foreword the
committee says:
“It is the hope of the committee that
this pamphlet will be found useful and
instructive to those cities, counties and
districts composed of groups of coun­
ties that wish to promote efficiency and
to stimulate co-operation among their
banks by organizing such a bureau for
their mutual benefit, for the purpose of
checking and analyzing duplicated cred­
its and maintaining in a central file
such information as is thus obtained.”
The text presents in complete detail
several plans of credit bureaus already
in practical operation so that those
seeking to establish a new bureau may
select a plan most suitable for their
particular needs. The booklet says in
regard to credit bureaus:
“ A credit bureau may be operated as
a department of a clearing house or­
ganized for the usual purposes. How­
ever, where no clearing house associa­
tion exists, either in a city, in a county
or in a given community, a credit bu­
reau may be organized in the same
manner as a clearing house association
as described in the booklet, entitled
“ The Clearing House,” prepared by the
Clearing House Section of the Amer­
ican Bankers Association. Such a credit
bureau may be operated as a central
credit department for its member banks
or, strictly speaking, may be made a
clearing house for loans, for collateral
and for investment securities carried by
the banks of a community.
“Its efficiency in this respect can not
be disputed, especially in communities
not yet prepared to avail of the service
of a clearing house examiner, but in
which it is most important that proper
check be kept on loans and duplicated
credits.
“Details regarding the financial worth
of borrowers may, or may not, be con­
tained in the files of a credit bureau,
depending upon the scope of the bu­
reau. Such information, however, if
not maintained in the file of a credit
bureau, should be made available to its
manager at all times.”

St. Louis, July, 1927

59

CURRENT

QUOTATIONS

On a representative list of H I G H G R A D E R A I L R O A D , P U B L IC
U T I L I T Y , I N D U S T R I A L , C A N A D I A N and F O R E I G N B O N D S
Furnished by CAMP, THORNE 8s CO., Inc , 29 South La Salle Street, Chicago
Security
B id A sk ed
A b itibi Pr. & Pap. Co., Ltd. 6s,
1928
10034
100%
102
A d irond ack Elec. Pr. Co., 5s, 1 9 6 2 .1 0 1 %
100 %
A la b a m a Pr. Co., 5s, 1 9 5 1 .................100%
98
A lb e rta (C a n a d a ), 4 % s, 1956 .......... 97%
102
Am er. C hain Co., 6s, 1 9 3 3 .................. 101%
104%
A m er. R oll. M ills Co., 6s, 1 9 3 8 .. 104%
A m er. Sm elt. & R efg . Co., 5s,
101%
.101
. 10434, 104%
.1 0 2 %
103
A m er. Tel. & Tel. Co.,
.1 0 0 %
101
89%
. 89
104%
A n acon d a Cop. M in. Co., 6s, 19515.104
A n g lo -A m e r. Oil Co., L td ., 4 % s ,
. 99%
100
101%
A p p alach ian Pr. Co., 5s, 1941.
.1 0 0 %
99
. 98%
A rgentine, 6s, 1958 ........................
102%
.1 0 2 %
A tch . Top. & S. Pe. R y., 4 % s,
. 99
99%
1962 ...........................................
100
. 99%
96 3/«
A tl. Coast Line R. R ., 4s, 1952. . 96%
98%
. 98%
103%
.1 0 3 %
107%
.107
101%
.101 %
5.00% 4 .9 0 %
B. & O. R . R ., Eq. 6s. 1934.
92%
. 92%
98%
. 98%
97
. 96%
B elg iu m , 6s, 1955.
1013/«
.1 0 1 %
IO33/4
.1 0 3 %
97
. 96%
B erlin E . E. & Und. R ys., 6 % s,
94%
1956 ...................................................... . 943/«
99%
B eth . Steel Corp., 5s, 1 9 3 6 . . . . . 99%
99%
. 99%
91%
. 91%
102%
.1 0 2 %
.IO 334, 10 3%
98
. 97%
B ritish Colum bia, 4 % s , 1951.
.1013/4
102
105
.1 0 4 %
115
B rooklyn U nion Gas, 6s, 1 9 4 7 ., .1 1 4 %
10 0 %
B uenos Aires, 6 % s, 1955 ............ .10 0 %
96%
B uenos A ires, Prov. 7s, 1 9 5 2 ., . 96%
105
.1 0 4 %
102%
.102
101%
C alif. G. & E. Co., 5s, 1937 ------ .1 0 1 %
98
C alif. Pet. Corp., 5 % s , 1 9 3 8 . . . . . 97%
99
.
98%
Canada, 4 % s , 1 9 3 6 ..........................
Canad. N a t’ l R y. Co., E q. 4 % s ,
98%
. 97 %
99 3/4
99%
Canad. N a t’ l R y. Co., 4 % s . 1930
Canad. Pacific R ys., 4 % s , 1 9 4 6 .. . 97%
97%
Car. Clinch & O. R y ., E q. 6s, 1930 4 .8 0
4 .7 0
Cent, of G. R y., 6s, 1 9 2 9 ..................1 01%
101%
Cent, of G. R y., 5s, 1 9 4 5 .................... 104%
104%
Cent. 111. Lt. Co., 5s, 1 9 4 3 ............... 1 01%
101%
Cent. M aine Pow. Co., 5s, 1 9 3 9 ...1 0 3 %
1 03%
Cent. N. Y. Gas & E. Co., 5s,
1941
1 00%
100%
Cent. Pacific R y., 5s, 1 9 6 0 ............. 102%
102%
C.
& O. R y. Co., 5s, 1 9 2 9 .....................1 00% 100%
C.
& O. R y. Co., Eq. 5s, 1 9 3 0 .. .. 1 0 0 %
100%
C. B . & Q. R. R ., 4s, 1 9 4 9 ................. 973/«
97%
C. B . & Q. R. R ., 4 % s, 1 9 7 7 ............ 9 7 %
98
C
C. C. & St. L. R. R ., 6s, 1 9 2 9 .1 0 2 %
102%
C.
C C. & St. L. R. R .. 5s, 1929 .10 0
100%
C.
C. C. & St. L. R. R ., 5s, 1 9 6 3 .1 0 3 %
1033/«
Ch. Gas L. & Coke Co., 5s, 1 9 3 7 ..1 0 2 %
102%
Cligo., Mem. & Gulf R. R ., 5s,
1940
97%
98
C., M il. &, St. P. R y. Co., 4s, 1989. 86 %
87
C. & Nor. W e s. R y., 4 % s , 2 0 3 7 .. . 97%
98
101
C. R. I. & P. R. R „ 5s, 1 9 2 9 ..........100%
Chgo. U nion S tai., 4 % s , 1962 .......... 99
99%
Childs Com pany,
5s, 1 9 3 0 .............. 99% 100
Chile, 6s, 1960 ........................................... 90%
90%
Chile M tge. B a n k of, 6 % s , 1 9 5 7 .. 94
94%
C hippew a Pr. Co., 6s, 1 9 4 7 ............. 105% 105%
Cincinn. G. & E.
Co., 5s, 1 9 5 6 ...1 0 1 %
102
Cincinn. G. & E.
Co., 5 % s , 1 9 6 1 .1 0 4 % 105
C'iev. U nion T erm ., 5s, 1 9 7 3 .............1 04% 104%
Cologne (G e rm a n y ), 6 % s, 1 9 5 0 .. 97%
97%
Colom bia, 6 % s, 1 9 2 7 ...........................100
100%
Colorado Pr. Co.,
5s, 1 9 5 3 ............... 1 00% 101
Col. R y., Pr. & Lt. Co., 5s, 1 940 .10 0
100%
Commonwealth Ed. Co., 4 % s , 1956. . 9 6
96%
Cons. Gas, B a it., 4 % s , 1 9 5 4 ............ 9 9 %
99%
Cons. Gas, N. Y ., 5 % s , 1 9 4 5 ............ 1 05%
106
Consum ers Pr. Co., 5s, 1 9 3 6 ............1 02%
102%


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

Security
Cont. G. & E l. Corp., 5s, 1 9 2 7 ..
Copenhagen (D e n m a rk ), 5 % s ,
1944
.......................................................
Corn Prod. R ef. Co., 5s, 1 9 3 4 .. .
Costa R ica, 7s, 1957 ..........................
Cuba R ailroad, 5s, 1 9 5 2 .................
Cudahy P ack. Co., 5s, 1946 ..........
C zechoslovak, 7 % s , 1 9 4 5 .................
D allas Pr. & Lt. Co., 5s, 1952.
D anish Con. Mun. Loan, 5 % s ,
1955 .........................................................

B id
.100

A sk ed
10 0%

.1 0 0 %
.1 0 1 %
■ 93%
■ 95%
. 99
.1 0 4 %
. 99?4

100 3/«
102.
94
96
99%
105
100

. 98%
. 100%
. 101%
D elaw are & H udson Co., 4s, 1943 . 94%
D en m ark , 5 % s , 1955 ........................ . 99%
D enver G. & E. Lt. Co., 5s, 1951 • 99%
D et. & Suburb. Gas Co., 5s, 1928 • 99%
D et. C ity Gas Co., 5s, 1950 .......... • 99%
D etroit E dison Co.,._5s, 1 9 4 9 . . . . .1 0 3 %
D om in ican R epublic, 5 % s , 1942. • 98%
D uquesne -Lt., 4 % s , 1 9 6 7 . . ............ ■ 95%
D utch E a st Indies, 6s, 1 9 4 7 .......... .1 0 2 %
Edison Elec. 111. Co., 4 % s , 1928 .100
E d m on ton (C a n a d a ), 5s, 1 9 3 4 .. . . 97
Elec. Pr. Corp. (G e rm a n y ), 6 %i S ,
. .9 6 %
Eduit. Gas Lt Co., 5s, 1 9 2 9 .., . 100
Erie R. R ., Eq. 6s, 19 3 2 ............
. 4 .9 0
F ield (M arsh a ll) & Co., 4 % s ,
. 5 .0 0
F la. Pr. & Lt. Co., 1st 5s, 1954 . 93 3/«
F lorid a W e s t Shore R y ., os, 1934 . 9534
Ft. W o r th Pr. & Lt. Co., 5s, 1931 .1 0 0 %
France, 7s, 1949 .................................... .1 0 4 %
Fruit Growers Express Co., 6s,
1928 ......................................................... . 4 .7 0
G eneral Elec. Co., 3 % s , 1 9 4 2 .. . . 92%
Gen. M otors A cc. Corp., 5s, 1928 .100
General Pet. Corp., 5s, 1 9 4 0 . . . . .1 0 0 %
Ga. & A la b a m a R y., 5s, 1 9 4 5 .. . . 98
G eorgia P. Co., 5s, 1967 ................. • 95%
G eorgia R y. &, El. Co., 5s, 1932. . 1 00%
G erm an, 7s, 1949 ................................. .106
G erm an Cen. A g r. B k „ 7s, 1950. .1 0 0 %
G erm an Con. Mun. Loan, 7s, 194'7 99 %
G erm an Ge. Elec. Co., 6 % s , 1940 .1 2 5 %
Grand T runk W e st. R y., 4s. 195<0 .8 7 %
G reat F a lls Pr. Co., 5s, 1 9 4 0 . . . . .1 0 3 %
Grt. N or. R y. Co., 4 % s , 1 9 7 6 .. . . 96 34
Gt. Nor. R y., Canada, 4s, 1 9 3 4 ... 92 34
G reat W e ste rn Pr. Co., 5s, 1946. • 99%
G ulf Oil Corp., P a., 5s, 1 9 4 7 .. . . 98%
G ulf Oil Corp., P a., 5 % s , 1928. .1 0 0 %
G ulf Term in al R y. Co., 4s, 1957. . 88%
H aiti, Republic, 6s, 1952 ................. . 9 9 34
H a m b u rg (G e rm a n y ), 6s, 1946. ■ 9 7 %
H ershey Choc. Co., 5 % s , 1 9 4 0 ... • 1 0 2 3/g
H ock. Val. R y ., Eq. 6s, 1 9 3 5 ... . 4 . 8 0
H udson County Gas Co., 5s, 1949 .1 0 2 %
H u m ble Oil & R efg . Co., 5 % s ,
.1 0 1 %
.1 0 2 %
111. B ell Tel. Co., 5s, 1 9 5 6 ..
. 103%
111. Cent. R y., 4 % s , 1 9 6 6 ...
• 9 7 %
111. Cent. R. R ., Equip. 5s, 1934.. 4 . 9 5
111. Steel Co., 4 % s , 1 9 4 0 .................. 9 8
Ind. Pr. & Lt. Co., 5s. 19 5 7 ........... 9 7
In gersoll-R an d - Co., 5s, 1935 ............ • 9 9 %
Inland Steel Co., 5 % s , 1945 ............. 1 0 3 %
Internat. P aper Co., 5s, 1 9 4 7 . . . .. 9 7 34
Internat. Silver Co., 6s, 19 4 8 ........... 1 0 8 %
In terstate Pr. Co., 5s, 19 5 7 ..........• 9 6 %
Italy, 7s, 1 9 5 1 ............................................ 9 4 3 /«
Jones & Laugh . Steel, 5s, 1 9 3 9 ... 1 0 3 %
K . C. Pr. & Lt. Co., 5s, 1 9 5 2 . . . .. 1 0 4 %
K . C. Pr. & Lt. Co., 4 % s , 1 9 6 7 ..• 9 8 %
K . C. Southern R y. Co., 5s, 1950.. 9 9 %
K a n sa s Elec. Pr. Co., 5s, 1 9 5 1 . . . .• 9 6 %
Laclede Gas Lt. Co.. 5s, 1 9 3 4 . . . .. 1 0 1 1/2
L a S alle H otel Co., 5 % s , 1 9 3 0 . . . .. 9 9 %
L eh igh V a lle y R. R ., 4 % s , 2 0 0 3 ..• 8 7 %
L igg . & M yers Tob. Co., 5s, 1951., 1 0 4 %
Long Island R. R ., Bq. 6s, 1 9 3 2 .., 4 . 8 0
L ouisiana & A rk an sa s R y., 5s,
1927 ............................................................ 9 9 %
L. & N. R. R. Co., 4s, 1 9 4 0 . . . ., 9 6 %
L. & N. R. R. Co., Eq. 6 % s , 1933i 4 .6 0
L ouisville G. & E. Co., 5s, 1 9 5 2 .. 100%
Louisville L igh tin g Co., 5s, 1 9 5 3 ..,102
M aine Cent. R. R ., 4 % s , 1 9 3 5 . . . . 9 6 %
M anitoba Pow er Co., 5 % s , 1 9 5 1 .. 9 S %
.M ark M fg. Co., 6s, 1927-39 .............. 102%
M ass. Gas Co., 4 % s . 1 9 3 1 ................. 9 8 %
M ich. Cent. R. R. C'o., 5s, 1 9 3 1 .. 101%
Mid. Steel & Ord. Co., 5s, 1 9 3 6 .. 9 8 3/«
M ilw au kee Gas Lt. Co., 4 % s , 1967’ 9 4 3 4
M inn., St. P. & S. S. M. R y., 4s,

98%
1003/«
101%
94%
100
99 34
99%
100
103%
98 34
96%
102%
100%
97 34

87%

97
100%
4 .8 0
4 .9 0
93%
96%
100%
104%
4 .6 0
92%
100%
100%
98%
96%
100 3/«
106%
101
99%
125%
87%
104
96%
93%
100%
9 8 3/«
100%
8 8 %
9 9 %
9 7 34

102%
4.70
103

102
102%
104
9 7 34
4.85
9 8 %
9 7 %

10 0%
10 3%
9 7 %
109
96%
9 4 %
10 3%
104%
9 8 34

100
9 6 3/«

101%
100
88
10 4%
4.70

100
9 6 %
4.50

101
102%
9 7 %
99

102%
99
IO I
9 8 %
9 4 %

34

8 7 .%

Security
B id
Miss. R iv. Pr. Co., 5s, 19 5 1 ............. 1 0 1 %
M o., K as. & T. R. R ., 4s, 1990 . .. 88%
Mo. Pac. R. R ., E q. 5s, 1931
. 4 .7 5
Mo. Pac. R. R ., 5s, 1 9 7 7 ...
. 98%
M obile Elec. Co., 5s, 1 9 4 6 ..
. 99%
.1 0 2 %
■102%
. 98%
. 84%
.1 0 1 %
• 99%
N atio n al Tube Co., 5s, 1952 .......... .104
N etherlands, 6s, 1 9 5 4 ........................ .1 0 3 %
N ew B runsw ick (C a n .), 4 % s ,
1936 ......................................................... .1 0 0 %
N ew Eng. Tel. & Tel. Co., 4 % s ,
1961 ........................................................ . 97 3/«
N ew foundland, 5 % s , 1 9 4 2 ............. .104%
N. Orleans T erm . Co., 4s, 1953. . 87%
N. Y. Cent., Eq. 4 % s , 1 9 2 9 .......... . 4 .65
N. Y. Cent. Lines, 4 % s , 2013. 100%
N. Y ., Chgo. & St. L-., Eq. 5s, 193 , 4 .6 0
N. Y. Tel. Co., 4 % s, 1 9 3 9 ...............
98%
N ia g a ra F a lls Pr. Co., 5s, 1932. 102%
Nor. Ind. G. & E. Co., 5s, 1929. 100%
N or. Pac. Ry. Co., 4s, 19 9 7 ............
93%
Nor. States Pr. Co., 5s. 1 9 4 1 .. . 101 %
N orw ay, K in g d o m of, 5s, 1 9 6 5 .____
O gden Gas Co., 5s, 1 9 4 5 .................100%
Ohio Pr. Co., 5s, 1 9 5 2 .......................... 98%
Ohio R iv. Edison Co., 5s, 1 9 5 1 . . . . 98%
Ontario, Prov. of, 4 % s , 1931 .......... 99%
Ontario Pow er Co., 5s, 1 9 4 3 . . . . 102%
O regon & C alif. R. R., 5s, 1 9 2 7 .. 99%
O regon Sht. Lin e R. R ., 4s, 1929. 99%
Oslo (N o rw a y ), 5 % s , 1946 ............ 99%
P acif. Coast Pr. Co., 5s, 1 9 4 0 .. .. 1 0 0 %
P acif. Fruit E xp., E q. 7s, 1 9 2 9 .. 4 .7 5
P acif. Gas & Elec. Co., 5s, 1 9 5 5 .-1 0 1 %
P acif. Pr. & Lt. Co., 5s, 1 9 3 0 . . . . 100*%
P acif. Tel. & Tel. Co., 5s, 1 9 5 2 ..1 0 2 %
P a n am a, 5 % s , 1 9 5 3 ............................... 103
Penn. R. R. Co., 5s, 1 9 6 4 .................. 103%
Penney, J. C., 5 % s , 1945 ................. 97%
Penn. R. R. Co., Equip. 6s, 1931. 4 .5 5
Penn.. Ohio & D et. R. R ., 4 % s ,
1977
96%
Peoples Gas Lt. & Coke Co., 5s,
1947
102%
Pere M arqu ette R y., 5s, 1 9 5 6 .. .. 1 0 4 %
Peru, 7 % s, 1956 ...................................... 99%
P hila. Elec. Co. (P a .). 4s, 1 9 6 6 .. 92%
P illsbury Flour M ills Co., 6s,
1943 ...........................................................104%
Pressed Steel Car Co., 5s, 1 9 3 3 .. 94%
Prussia (G e rm a n y ), 6 % s , 1 9 5 1 .. . 97%
Pub. Service Co., O kla., 5s, 1961. 9 6 %
Queensland (A u s tr a lia ), 7s, 1941.113%
Rio Grande Do Sul, 7s, 1 9 6 6 . . . . 97
Rio de Janeiro, 8s, 1 9 4 7 .................104%
R ock ford Elec. Co., 5s, 1 9 3 9 .. .. 1 0 1 %
R otterd am
(H o lla n d ), 6s, 1 9 6 4 .1 0 4 %
St. L., Ir. M t. & So. R y ., 5s, 1931 .10 1
St. L. & San Fran. R. R ., 6s, 1928.101%
St. Paul Gas L t Co., 5s, 1 9 4 4 .. .. 1 0 1
St. Paul Union Stk. Yd s. Co., 5s,
1946
.........................................................100
Salvador, 8s, 1 9 4 8 ................................. 108%
San Paulo, C ity 8s, 19 5 2 .................... 112%
San Paulo, State. 8s, 1 9 3 6 ..................104%
Saskatchew an, Prov., 5s, 1 9 4 3 . . . . 102%
Sauda F a lls Co., 5s, 1 9 5 5 .................. 100%
Saxon Pub. W k s ., 7s, 1 9 4 5 ............. 101%
Seaboard A ir Line, Eq. 4 % s , 1936 4 .7 0
Seattle Elec. Co., 5s, 1 9 2 9 ............ 100
Sherm an H otel Co., 5 % s , 1 9 3 0 .. . 99%
Siem ens & H alske, A . G. 7s, 1 9 3 6 .1 0 2 %
Sine. Crd. Oil Pur. Co., 6s, 1 9 2 8 .1 0 0 %
Sioux City Stk. Yds. Co., 5s, 1 9 3 0 .1 0 0 %
61 B road w ay B ld g ., 5 % s , 1 9 5 0 .. . 99%
So. Car. & Ga. R y.. 5 % s , 1 9 2 9 ...1 0 0 %
Southern C alif. Edison Co., 5s,
1953^
99%
So. Pac. R y., Eq. 5s, 1 9 3 2 .............. 4 .5 0
So. Pac. R y., 4s, 1929 ........................... 98 %
Southern Pr. Co., 5s, 1 9 3 0 . . ............ 100%
Southern R y ., Eauip. 6s, 1 9 3 5 . . . . 4 .9 5
Southw est B ell Tel., 5s, 1 9 5 4 .. .. 1 0 3 %
Spring R iver Pr. Co., 5s, 1 9 3 0 .. 100%
Stand. Oil Co., N. Y .. 4 % s , 1951. 94%
Stand. M ill Co., 5s, 1 9 3 0 .......................102%
Sun Oil Co., 5 % s, 19 3 9 .......................100%
Sw edish G ovt., 5 % s , 19 5 4 ................104%
Sw ift &. Co., 5s. 1 9 4 4 ............................101%
Swiss G ovt., 5 % s , 1 9 4 6 .......................105%
Toronto, Canada, 5s, 1 9 3 4 ................100%
Union Oil Co., C alif., 5s. 1 9 3 5 .. . 96 %
U nion Pac. R. R ., 4s, 1947 ................. 96%
U ruqu ay, 6s, 1960 .................................. 95%
W a r d (M on tgom ery) & C|o., 5s,
1946 ............................................................ 98 %
W e ste rn E lectric Co., 5s, 1 9 4 4 .. . 102%
W estern
P acif. R. R ., 5s. 1 9 4 6 .. 99%
W estern U nion Tel. Co., 4 % s ,
1950 ........................................................... 98
W esth se. Elec. & M fg . Co., 5s,
1946
102%
W in n ip e g (C a n a d a ), 4 % s , 1 9 4 6 ... 97%

A sk ed
101%
88%
4 .6 5
98 3/«
100%
102%
102%
99
84%
101%
100%
104%
1 03%
101
97%
105
87 34
4 .5 5
100%
4 .5 0
99
102%
100 3/«
93%
101%
100%
100%
98%
98%
99%

102%
99%
99%
99%

100%
4 .6 5
101%

100 %
102%
103%
103%
98%
4 .4 5
96%
102%
104%
100
93%
104 %
94%
97%
96%
113%
97%
104%
101%
104%
101%

101%
101%

100%
108%
112 %
105
103%
100%

101%
4 .6 0
100%
300
102%
100%
100%
99%
100%
99%
4 .4 0
99%

101

4 .8 5
103%

100%

94%
102%
100%
104%
102
106
101%
96%
96%
95%
98%

102%
98%

102%
98

Mid-Continent Banker

60
Orleans has been selected as. the next
convention city.

L o u is ia n a N o te s

Bank of Gueydan
Has Opened.

F irst State
Opens at Sikes.

The First State Bank, Sikes, La., has
been opened for business with capital
of $15,000.00 and a contingent reserve
of $15,000.00. Officers are: B. Q. May,
president; S. R. Newsom, vice-presi­
dent, and H. J. Waters, cashier.

The Bank of Gueydan, La., has been
opened for business. A. Kaplan is
president; R. F. Smith and Leo P.
Bonin, vice-presidents; and John G.
Neelis, cashier. The bank is. capital­
ized at $25,000.00.
Algiers T r u s t and
Savings Has Ne w Home.

Ne w Orleans W ill
E n terta in Reserve City Bankers.

The Algiers Trust and Savings Bank,
J.
F. Flournoy, vice-president of the Algiers, is now quartered in its hand­
Whitney-Central
Bank,
and
Fred some new banking home, recently com­
B'renchley, vice-president of the Marine pleted. The new banking home is the
consummation of the efforts and hopes
Bank, both of New Orleans, La., were
elected to official positions in the As­ of the founders and directors of
sociation of Reserve City Bankers at “Algiers Home Bank” after a half dozen
the recent Pittsburgh meeting. New years, and in it they have ample bank­

Capital
Surplus
Undivided
Profits

$3,500,000

F aith fu lly se r v in g th e n e e d s o f
In d u stria l S t. L o u is for th e past 65
y e a r s , q u a lifies this han k to e x ­
ten d its d ep o sito rs e x p e rie n c e d
fin an cial c o -o p e r a tio n .

ing room and one of the most complete
banking homes to be found in Louis­
iana. The building is of rough orange
brick with massive pressed stone out­
lines, forming a harmonious, and im­
pressive whole.
Jackson Parish Bank
Plans New Building.

The Jackson Parish Bank has an­
nounced plans for the erection of a
$40,000 brick and stone banking home.

Bank of Commerce Purchases
Peoples Bank of Mansfield
The Bank of Commerce and Trust
Company of Mansfield, La., has ac­
quired the assets and assumed the de­
posits of the Peoples Bank of Mans­
field. Frank Hunter, for many years
cashier of that institution, will be con­
nected with the Bank of Commerce as
vice-president.
The People’s Bank was organized in
1910 and at the time of the purchase
was handling about $400,000.00 of busi­
ness.
The quarters formerly occupied by
the People’s Bank, next door to the
Bank of Commerce, will afford room
for ground floor expansion. A consid­
erable portion of the space thus, made
available will be occupied by the De
Soto Securities Company, Inc.

M is s is s ip p i N o te s
DeLoach Is
President at Greenwood.

The Merchants Laclede National Bank
o f S t. L o u is

R. G. DeLoach, formerly vice-presi­
dent of the First National Bank, Green­
wood, Miss., has succeeded Gid Montjoy, Jr., as. president; M. P. Saunders,
formerly cashier, is vice-president; H.

txk:

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

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

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


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Federal Reserve Bank of St. Louis

NEW ORLEANS, LA.

R e s o u r c e s O v e r T h ir ty M illio n D o lla r s
ACCO UN TS OF B A N K S A N D B A N K E R S IN V IT E D
YO U R IN TER ESTS W IL L R E C E IV E PER SO NAL A T T E N T IO N OF OUR O FFICERS

IXiCZJ

St. Louis, July, 1927

61

V. Parker, formerly assistant cashier,
cashier, and Asa Hatch has been added
as assistant cashier.
Jackson Has
N e w A. I. B. Officers.

At a recent meeting of the Jackson
chapter of the American Institute of
Banking, Miss Ava Woodham, teller of
the savings department of the First Na­
tional Bank of Jackson, was unani­
mously elected president of the Jackson chapter for the next twelve months.
The Jackson chapter is now five years
old and is the only chapter in Missis­
sippi. The newly elected officers in
addition to Miss, Woodham are: Lee
Hagaman, vice-president; Miss Ruth
Clay, secretary; Frank Allred, treas­
urer.
Lee M. Russell
Heads Pass Christian Bank.

Lee M. Russell, former Governor of
the state of Mississippi, has been
elected president of the Pass Christian
Bank, succeeding Captain S. L. McGlathery, who has withdrawn from
office.
H. H. Mitchell
Is Cashier at Heidelberg.

J. H. Jones has resigned as cashier
of the Citizens State Bank, Heidelberg,
and has been succeeded by H. H.
Mitchell, of Sandersville. This elec­
tion comes to Mr. Mitchell by way of
a promotion. He is also cashier of the
Union and Farmers Bank of Sanders­
ville, which position he will still hold,
spending half of his time there and his
afternoons with the Citizens State
Bank.

The
Whitney-Central Banks
N ew Orleans, La.

W e invite correspondence regarding the
far-reaching service we

have to offer.

Capital, Surplus and Profits over $ 8 , 0 0 0 , 0 0 0 . 0 0

Your Home
Single Rooms as low as $ 3.00
per day. Larger suites correspondingly low. W rite or wire
fo r inform ation and iates.

Away from
Home

may prepare your own
You intensify the pleasure
meals. Yet dining room
o f your stay in Chicago
_____________ service is excellent. A beau­
when you select the Rogers
tiful park slopes down to
Park Hotel as your abode.
Located on world famous Sheridan Road, a wide, sandy beach— and just beyond it,
it offers you every service that a thought­ Lake Michigan. Nowhere is there a finer
ful, efficient management can devise for your panorama of its sparkling waters.
comfort, convenience and pleasure.
La Salle Street and the busy, noisy Loop
All rooms are outside rooms—large, airy are but 22 minutes removed—with splen­
and cheerful; some with kitchen where you did transportation service 24 hours daily.

ROGERS PARK HOTEL
SH E R ID A N R O A D A N D PR A T T B O U LE V A R D

Im pro vem ents at
F ir s t National, Brookhaven.

Approximately $8,000 will be ex­
pended in improving property recently
acquired by the First National Bank
of Brookhaven for a bank home. The
size of the building now occupied by
the bank will be materially increased.
The man who has not anything to
boast of but his illustrious ancestors
is like the potato—the only good be­
longing to him is underground.—Sir
Thomas Overbury.

The importance of price is minimized
by the value of the responsibility

A man without mirth is like a
wagon without springs, in which one
is caused disagreeably to jolt by every
pebble over which it runs.—Henry
Ward Beecher.
“ Clothes give a man a lot of confi­
dence.”
“Yes, they certainly do. I go a lot
of places with them that I wouldn’t go
without them.”—Hardware Age.

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Federal Reserve Bank of St. Louis

we accept for our clients.

m

m

m

m

CHICAG O

Mid-Continent Banker

62

MISSOURI

BANK

NEWS

O FFICERS M ISSO URI B A N K E R S’ A S S O C IA T IO N : President, Edward Buder, vice­
president-treasurer Mercantile Trust Company, St. Louis; Vice-President, E. B.
Jacobs, cashier First National Bank, Carthage; Secretary, W. F. Keyser, Sedalia;
Assistant Secretary, E. P. Neef, Sedalia; Treasurer, F. B. Brady, vice-president
Commerce Trust Company, Kansas City.
GROUP C H A IR M E N :
1— Gus Delaney, cashier Hurdland State Bank, Hurdland;
2— E. O. Welch, cashier Citizens’ National Bank, Chillicothe; 3— R. W. Holt, presi­
dent Heaton Bank, Craig; 4— F. W. Pendleton, vice-president Bank of Independence,
Independence; 5— A. A. Speer, president First National Bank, Jefferson City; 6— Geo.
U. Shelby, vice-president Charleston-Mississippi County Bank, Charleston; 7— C. H.
White, cashier Bank of Seymour, Seymour; 8— E. C. Williams, president Bank of
Noel, Noel.
GROUP S E C R E T A R IE S: 1— W. L. Weaver, cashier Hannibal National Bank, Hanni­
bal; 2— E. C. Brownlee, cashier Brownlee Banking Company, Brookfield; 3— O. S.
Berndt, cashier Farmers State Bank, Stanberry; 4— F. C. Barnhill, cashier W ood &
Huston Bank, Marshall; 5— N. S. Magruder, president Savings Trust Company, St.
Louis; 6— L. C. Leslie, cashier First National Bank, Oran; 7— Chas. F. Ellis, cashier
Citizens’ Bank, Marshfield; 8— Otto W. Croy, vice-president Conqueror Trust Com­
pany, Joplin.

Edward Buder, Pres.

J. A. Buckley Heads
Lew istown Savings Bank.

Carroll County
Bankers Elect Officers.

At the annual meeting of the stock­
holders of the Lewistown Savings Bank,
Lewistown, Mo., Joseph A. Buckley
was elected president to succeed J. L.
Brightwell, who has served in that ca­
pacity for the past three years. Judge
Brightwell will continue to be the at­
torney for the bank.

The Carroll County Bankers’ Asso­
ciation elected the following officers for
the ensuing year: Jay W. Higginbottom, Tina, Mo., president; J. J. McKin­
ney, DeWitt, vice-president; Otto Hale,
Carrollton, secretary, and H. H. Coburn,
Bogard, treasurer.

H a rris Sells Interests
In Cla y County State.

assistant cashier of the Citizens State
Bank, Fairplay, Mo.

Fred K. Harris has sold his control­
ling interest in the Clay County State
Bank, Excelsior Springs, Mo., to John
Emmett Wagner of Wichita, Kansas.

Dent County Bankers
Association Is Formed.

Mrs. Sylv ia Gamble has resigned as

tion was organized at a meeting held
at Salem, Mo. Louis Dent is presi­
dent; I. A. Hulsey, vice-president, and
G. L. Gamblin, secretary-treasurer.
W . E. Teel
Resigns at Albany.

W. E. Teel has resigned as cashier of
the Farmers’ Bank, Albany, Mo., and
will engage in the fire insurance and
farm loan business. Mrs. Minnie Enyart is the acting cashier until a new
one can be elected.
H. E. Creagan, president of the F a r m ­

The Dent County Bankers Associa­

READ THE

W. F. Keyser, Secretary

ers Trust Company, Boonville, Mo., has
resigned.

UATCI rn/IDTDF Broadway al Sixty-Third
HU ILL LlYiriKL Street NEW YORK CITY
M . P . M U R T H A , G en era l M a n ager

You W ill Find:
— News of Banks and Bankers.
— Legal Decisions and Free Legal Service.
— Investment News.
— Successful plans for increasing deposits, ad­
vertising your bank, co-operating with the
farmer and creating public good will.
— Discussions of Bank Problems by practical
bankers.
(This Coupon Brings Your First Issue )
M ID-CONTINENT BANKER
Date............................
408 Olive Street, St. Louis, Mo.
Please enter my subscription for one year (12 issues) for which I
will remit $3 upon receipt of your bill.

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

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Federal Reserve Bank of St. Louis

The NEW fourteen-slory fireproof structure containing
every modern convenience and “ Servidor” service
R oom , private toilet - - $2.50
Single R oom with bath - 3.50

{

Double R oom with bath -

5.00

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

St. Louis, July, 1927
F loyd A . M acD on ald N ow
W ith Drovers N ational
Floyd A. MacDonald joined the
Drovers National Bank, Kansas City,
as manager of the bond department.
Mr. MacDonald is a bond man of wide
experience, having served a number of
years as senior salesman for a leading
bond house, and for the past four years
as manager of the bond department of
the People’s Trust Company of Kansas
City. He has also acted as secretary

F loyd A . M acD onald

of the Bondmen’s Club of Kansas City,
and is well known in the bond fraterni­
ty throughout the country.

Three St. Louisans N am ed
on M . B . A . Comm ittees
Three St. Louis bankers have been
appointed chairmen of standing com­
mittees of the Missouri State Bankers
Association by Edward Buder, presi­
dent of the association and vice-presi­
dent of the Mercantile Trust Company,
St. Louis.
Walter B. Weisenburger, vice-presi­
dent of the National Bank of Com­
merce, was appointed chairman of the
Committee on Education and Public
Relations; Thomas C. Hennings, vicepresident of the Mercantile Trust Com­
pany, was. appointed chairman of the
Committee on Legislation, and Dale
Graham of the Mississippi Valley Trust
Company, chairman of the Committee
on Analysis.
Other chairmen of standing commit­
tees are: J. E. Garm, Joplin, taxation;
E. B. Jacobs, Carthage, rewards; Chris
R. Maffry, Macon, agriculture; E. N.
Van Horne, St. Joseph, county organ­
ization; E. H. Zimmerman, St. Joseph,
stabilization of the money standard.

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Federal Reserve Bank of St. Louis

63

Mid-Continent Banker

64

What Do You Want?
— tell us and we will help you find it. W e have created this
new classified ad department as a free service to subscribers.
If you have something- to buy or something- to sell, or if you
want anything, you can make it known to the bankers in the
Mid-Continent territory without cost. If you are not a sub­
scriber, your check for $3 will pay for a year’s subscription
and entitle you to free use of the want ad columns.
P o s i t i o n W a n t e d b y ex p erien ced
ba n k er n o w em ployed as a ssista n t
ca sh ie r and d ire cto r o f a ba n k in.
a sm all Illinois city . P re fe r p o si­
tion in larg er c o u n try ba n k w ith
o p p o rtu n ity fo r a d van cem en t. H a ve
had norm al sch ool and legal tra in ­
in g and ex p e rie n ce a s a tea ch er in
a d d ition to eigh t years b a n k in g
experien ce.
A d d ress R LG , T h e
M id-C on tin en t B an ker— 6.
B a n k O f f i c e r s a n d E m p l o y e s m ay
add to th eir in com e b y w ritin g
life in su ran ce fo r one o f the stro n g ­
est old line com p an ies, w ith low
net rates.
O penings in eastern
M issouri and sou th ern Illinois. F o r
full details, w rite F. S., T h e M idC ontinen t B an k er— 9.
F o r S a le :
F in e set m arble and
m a h og a n y fixtures, officers’ qu a r­
ters, 5 cages, savin gs cage, c u s ­
tom ers1’ room and teleph one booth,
m arble w ain scotin g.
A d d re ss A r ­
kansas V a lle y T ru st C om pany, F o rt
Smith, A rkansas.

as assistant
cash ier in m ediu m size bank by
y o u n g m an tw e n ty -e ig h t y e a rs old.
C ollege gradu ate, fo u r y ea rs b a n k ­
in g experien ce. A lso enrolled w ith
the L aS alle E x ten sion U niversity,
C hicago, in L aw .
A d d ress V -12,
M. C. B .— 7.
P o sitio n

W a n te d

S t u d e n t o f F i n a n c e w ish es c o n ­
n ection in St. L ouis. T w e n ty -fo u r
y ears o f a g e ; g radu ate o f A m e r i­
can In stitu te o f B an k in g and A c ­
cred ited H ig h School. F o u r years
o f resp on sibility as assista n t c a sh ­
ier o f N ational ba n k; g o o d c o r ­
resp on d en t; interested in cred its.
H as studied a cc o u n ta n c y ! n o w e m ­
ployed.
A d d re ss S. G. M., care
M id -C on tin en t B an k er—7.
W a n te d :
P o sitio n in bank or as
bond salesm an b y m arried m an,
ag e 38, p rotestan t, M ason. F o rm e r­
ly assista n t cash ier o f state bank
in C olorado, fo r p ast six years
ca sh ie r o f N a tion al bank in Illinois
to w n o f 1600.
H a ve had e x p e ri­
en ce in selling'
bonds.
B est o f
referen ces.
A d d ress W . A . W .,
care M id -C on tin en t B anker.
F o r S a l e : C on trollin g in terest in
a m o n e y -m a k in g , clean little b a n k
in a tow n o f 500— th irty -fiv e m iles
from K a n sa s City.
G ood H igh
School and C hurches.
$20,000 will
handle. C apital and surplus, $13.000; deposits $120,000— all ch eck in g
e x ce p t $25,000.
Good reason fo r
selling.
In v estm en t w ill m ake
$5,000 per year. W rite E. R. R.,
care M id -C on tin en t B anker.

P osition as cash ier in
g ood c o u n try ba n k or assistant
ca sh ie r
in
m e d iu m -size
bank.
T h irty -fiv e y ears o f age.
C ollege
gradu ate.
G raduate o f L a Salle
E x ten sion U n iv ersity in banking
and finance.
E nrolled as student
o f la w in sam e sch ool— tw o years
com pleted.
T h irteen y e a r s ’ b a n k ­
in g experien ce. Can fu rn ish h ig h ­
est g rade referen ces. W rite J. P.
G., ca re M id -C on tin en t B anker.
W a n te d :


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

B a n k e r , age 36, at p resen t r e c e iv ­
in g a salary o f $230 per m onth as
cash ier o f a na tion al ba n k in an
Illinois tow n o f 4,000, d esires to
m ak e ch a n g e w h ere there w ill be
g rea ter op p ortu n ity fo r a d v a n c e ­
m ent. P refers p osition in g row in g
bank in a tow n o f from 5,000 to
15,000 popu lation .
T ota l fo o tin g s
o f bank o f w h ich he is n ow cash ier
have in creased fro m $160,000 to
$350,000 in past fou r y ears.
B est
o f referen ces and m ore detailed in ­
fo rm a tion fu rn ish ed on request.
A d d ress A . F. B ., c - o M id -C o n ti­
nent B anker.
A Good O p e n i n g :
W ill con sid er
sale o f $10,000 sto ck in g ood A r ­
kan sas ba n k to a ctiv e banker.
B an k is tw e n ty y ea rs old and has
a cap ital o f
$50,000.
D ep osits
a v era g e $350,000. P a y in g d ivid en d s
sin ce organ ization . Sale to ca r ry
a ctiv e m a n a gem en t a t sala ry of
$3,000. W o u ld ex p ect p u rch aser to
tak e o v e r m odern dw elling in tow n
w ith lights, w ater, sew era g e and on
p aved h igh w ay. E x cellen t sch ool;
fo u r chu rches. A d d ress M. J. T .,
c -o M id -C on tin en t B anker.
B a n k e r , m arried, a g e 36, u n i­
v e r sity
gradu ate.
O ver
fifteen
y e a rs ex p erien ce in banking, the
p ast ten y ears as cash ier and only
a ctiv e officer o f g ood sized c ou n try
bank, has sold in terest in p resen t
ba n k and desires to ch an ge. S p len ­
did record as a bu siness builder
an d g ood on credits. P refers co u n ty
seat tow n or city . B est referen ces.
Can invest.
A d d ress J. A . B.,
c - o M id -C on tin en t B anker.
F o r S a le :
159 S a fety D ep osit
B o x es in g ood condition , and split
up in ■con v en ien t nests so sam e
m ay be stack ed laterally o r v e r ti­
cally.
F o r p a rticu la rs a n d term s
w rite us.
F a irb u ry B ank, F a irbury, Illinois— 6.
W a n te d :
Y ou n g m an to help in
sm all c ity bank.
P a r ty w an ted
m ust k n ow h ow to o p era te a p o s t­
in g m ach in e and m ake statem en ts
fo r custom ers, . Salary, $75.00 a
m on th to start w ith ch an ce for
ad van cem en t. Can room and board
at h om e o f assista n t cash ier o f
th e bank, fo r $7.50 a w eek. A d ­
dress T. A. W ., M id -C on tin en t
B an ker— 6.
F i x t u r e s f o r S a le :
M arble and
bron ze screen su rrou n din g L obby ,
72x20 feet.
T en ca g es w ith th ir­
teen wickets- and oth er equipm ent.
S pecial
selected
E nglish
vein
Italian m arble.
V e r y attractiv e.
A lso several sets o f m on ey chests.
A v a ila b le at once.
R em ov a l to
n ew bu ildin g n ecessitates sale. In ­
qu iries solicited.
Place v e r y re a ­
sonable. A d d ress C om m ercial N a ­
tional B ank, P eoria , 111.

CLARENCE RAYMOND BRAMBLET

Mr. Bramblet was connected with the
Mercantile! Trust Company in 1910.
Since that time he has held various
positions of importance in smaller
banks throughout the state. In June
he again joined the Mercantile Trust
Company as their representative in
Missouri.
After leaving the St. Louis company
seventeen years ago, Mr. Bramblet
went to Flat River, Missouri, as cash­
ier of the Miners and Merchants. Bank
and he held that position for ten years.
From there he went to Cape Girardeau
where he became the president, first
of the Exchange Bank of that city and
later of the First National Bank.
This proves an interesting back­
ground for him as representative of the
larger bank since he has studied the
needs of the bankers through the
smaller cities and knows their prob­
lems.
Samuel C. T rim b le , 77, pioneer bank­

er and merchant of Seymour, Mo., died
recently. He was the father of S. E.
Trimble, vice-president and cashier of
the Union National Bank of Springfield.
A. L. Locateli, f o r m e rly cashier, has

been named vice-president and cashier
of the Tower Grove Bank, St. Louis.
Rodney

W o u ld

L i k e to p u rch ase c o n tro l­

lin g interest in a g ood bank in a
tow n o f 1,000 to 4.000 in S ou th ­
w est M issouri or N orth ern A r k a n ­
sas. W rite A. C. T ., ca re M id -C o n ­
tinent B anker.

C.

Hull

has

been

elected

cashier of the Bank of Centerview, Centerview, Mo.
George R. W o l f has been elected as­

sistant cashier of the Shaw Bank, St.
Louis.

65

Si. Louis, July, 1927
Crystal State Bank
Enters N e w Home.

Crystal State Bank at Crystal City,
Mo., transferred its. activities from the
old quarters, which have served since
1911, to its new $30,000 home.
The bank is now in its own building,
a two-story structure, designed by J.
E. Robinson, with the first floor devoted
to banking rooms and the second to
offices, rented out by the bank. Mod­
ernized in every way, the Crystal State
Bank now has 280 safety deposit boxes
and burglar-proof vaults.
The Crystal State Bank, organized
with a $20,000 capital in 1911, had long
ago outgrown its first quarters. Officers
are: D. W. Oakes, president; S. M.
Porter, vice-president; A. W. Thomp­
son, cashier; W. W. Bradley, assistant
cashier, and Leon Herrick, E. J. Fallert and H. H. Hanna, directors.

N ew Business for Banks
— a N ew Book
One of the outstanding contributions
to the banking literature of the year
is “New Business for Banks,” written
by Frederick Kerman, assistant vicepresident, Bank of Italy, San Francisco,
and Bryant W. Griffin, manager, Busi­
ness Extension Department, National
Newark & Essex Banking Co., Newark,
N. J. The book gives facts from actual
experiences applied to all bank depart­
ments.
This book also shows how to organ­
ize a new business department; how to
make a bank more attractive to the
public; how to make every employe a
business-getter; how to handle solicita­
tion for deposits and trusts; the meth­
ods found best for budgeting adver­
tising by mediums and departments;
how to write, display and place news­
paper advertising and hundreds of other
basic banking questions—with practical
systems, suggestions for adaptation,
and a wealth of valuable facts. The
section savings department is replete
with keen interest, practical application
and lasting profit. It covers compre­
hensively, industrial savings, Christmas
clubs, methods of getting savings ac­
counts and the actual process employed
by many successful banks, in the prepa­
ration and writing of savings copy.
Not Made of A i r

1st Bookkeeper: “What was all the
rough talk down in the basement this
morning?”
4th Bookkeeper: “Fella walked into
the vault.”
1st: “Well, what of it?”
4th: “ Oh, nothing, only the door
was shut.”

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Federal Reserve Bank of St. Louis

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

It

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

Such distinction is accorded to the

banks listed on this page.

By careful management and sound

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

Correspondence is invited.

Surplus
Capital and Profits
Bank
City
10,000
10,000 $
Agency............. Farmers Bank..................... ........$
26,000
20,000
Bank of Augusta................ ........
Augusta
31,667
25,000
Buffalo............. O ’Bannon Banking Co.... ........
55,000
50,000
C a m e ro n
First National.............................
200,000
75,000
Columbia......... Boone County Trust Co...
52,000
50,000
Concordia........ Concordia Savings............ ........
20,000
........
10,000
Bank
of
Dalton..................
Dalton..............
55,000
25,000
Everton............ Bank of Everton................ ........
125,000
........
50,000
Farmington..... Bank of Farmington........
30,000
25,000
Gilman City.... . Gilman Bank.......................
87,000
75,000
Bank of Hardin.................. ........
Hardin
26,471
20,000
Hayti .............. ..Bank of Hayti.................... .......
21,000
10,000
Iron County Bank............ ........
Ironton
175,000
100,000
Miners Bank......................... ... ....
Joplin
3,470,000
Kansas City.... ...First National..................... ........ 1,000,000
35,000
30,000
Lebanon........... ...State Bank........................... ........
35,000
20,000
Maitland........... ..Peoples Bank....................... ........
85,000
50,000
First National.............................
lMenshn
75,000
50,000
Odessa.............. ..Bank of Odessa.................. .......
50,000
25,000
Perry................. Peoples Bank....................... ........
27,000
10,000
Raymore.......... Bank of Raymore.............. ........
143,334
100,000
St. Joseph........ ..First Trust Co.................. ........
252,000
200,000
Jefferson Bank.................. ........
St. Louis
8,377,530
Mercantile Trust Co.......... ........ 3,000,000
St. Louis
290,000
100,000
Citizens National.............. ........
Sedalia
14,900
10,000
South Gifford... ..Bank of Gifford.................. ........
82,000
10,000
Bank of Sullivan................ ........
Sullivan
30,000
25,000
First National..................... ........
Steelville
22,000
15,000
Stover............... ..Stover Bank......................... ........
32,000
........
20,000
...Farmers
Bank....................
Tarkio
Peoples
Bank...............................
50,000
115,000
Troy
Bank of Union.............................
15,000
55,000
Union
10,000
12,000
Walker............. Farmers Bank.................... ........
100,000
Wellston....... . ..First National.................... ........
146,900
40,000
Windsor........... Citizens Bank.....................
60,000

Mid-Continent Banker

66

Chattanooga Bank Erects Fine
New Building

ing type, controlled by an electric dis­
patch system.
The banking room is being fitted up
in bronze and marble with the new
cageless type fixtures. The mammoth
new vault is being located in the base­
ment and is of the new Federal Re­
serve steel crete construction and is
equipped with complete burglar alarm
and hold-up system.
The bank has been in existence since
1889 and is building its fourth new
home. It was the first bank in Tennes­
see to join the Federal Reserve Sys­
tem and has been a pioneer in many
of the forward movements of banking.
Y O U R O P P O R T U N IT Y .

Any man who is willing to work
eight hours a day can make a living.
But

he must

work

nine

to

make a

profit.

New home of the Chattanooga Savings Bank & Trust Company, Chattanooga, Tennessee

The new home of the Chattanooga
Savings Bank and Trust Company,
Chattanooga, Tennessee, is one of the
most distinctive structures in the en­
tire South, being an assembly of the
finest parts that the architect could se­
lect. The building is framed on a base

of granite and is finished of mat glazed
terra cotta throughout its exterior. All
entrances to the building are through
solid bronze doors, as are also the ele­
vator entrances. The elevators them­
selves are a feature of the building be­
ing of the high speed micro self-level­

Men of ordinary brains, who are sat­
isfied to stand still, can always “get
by” if they work the so-called “full
day.” But men of a higher type must
pay a higher price for the satisfaction
of large success. The ninth and tenth
hours are the golden hours of profit—
hours that are spent, not in indolence
or pernicious grouching, but in work
and study and self-equipment for the
better opportunity that is sure to come.
To make your life increasingly effective
and happy, seize the Ninth Hour and
use it for Pr ogre ss! —New England
Pilot.

Two Inexpensive Window Displays

T he w in d o w at the left has a cut-out cloud line for a background.
In fro nt of this are four ocean waves, the one in
the foreground being labeled “ This M on th ,” the others “ N ext Month .” Riding along on the first w a v e is a skiff flying the
name “ T he Household.” T h e w ife is sitting in the foreground and the husband has his hands on the rudder which is a
savings pass book.
Frosted w ave tips add to the attractiveness of the window.
T he w in d o w at the right pictures a
young lady who has real money in one hand and a bank advertising pencil in the other.
T he large sign ‘ Ho w Much
W i l l You Save?”— is supplemented by a sm aller sign— “ Double Y o ur Savings— It Can Be D o n e ! ”
Metal banks, pass­
books and fill-in book banks, into which bills are p a r tia lly inserted, complete the window. Both w indow s are the w o rk
of N. E. Hodnett, advertising manager of the Am erican Natio nal Bank, Lincoln, Illinois.


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

67

St. Louis, July, 1927

T he

C orrespondent banks find
our location

in the heart

of the financial district a
fa c to r in expediting

Boatmen’s National
Bank
o f St. Louis

their

transactions.
OLDEST BANK IN MISSOURI

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

W h y N o t Entrust Your

THE NORTHERN
TRUST COMPANY
Capital, Surplus and Undivided
Profits Over $7,500,000
Northwest Corner LaSalle and Monroe Sts.

CHICAGO

Œlje Cíjaáe National Pank
of the City of New York
57 BROADWAY

C a p i t a l ..................................... $ 40 ,0 0 0 ,0 0 0 .0 0
S u rp lu s a n d Profits
. . .
38 ,7 4 2 ,7 3 5 .9 5
D ep o sits (M a rch 23, 1927)
7 4 4,877,636.06
O F F IC E R S

St. Louis A ccount
to the B O A T M E N ’S N A T I O N A L
Bank,

whose

unbroken

record of

eighty years of successful banking
is a guaranty of safe and satisfactory
service?

O F F IC E R S :

JULIUS W. REINHOLDT. President
LEROY C. BRYAN. Vice-President and Cashier
AARON W ALDHEIM.
B. F. BUSH.
Vice-President
Vice-President
EDGAR L. TAYLOR.
J. HUGO GRIM M .
Vice-President and
Vice-President and
Trust Officer
Counsel
ALBERT WAGENFUEHR.
F LEE MAJOR.
Vice-President
Vice-President
C. C. HAM M ERSTEIN.
RUDOLPH FELSCH.
Assistant Cashier
Assistant Cashier
H. ALFRED BRIDGES.
OLIVER W K.NIPPENBERG,
Assistant Cashier
Assistant Cashier

A lb ert H. W ig g in
C hairm an o f the B oard
John M cH u g h
P residen t

R obert L. C larkson
V ice -C h a irm a n o f the B oard

V ic e -P re sid e n ts
Sam uel H. M iller
G eorg e E. W arren
Carl J. Schm idlapp
G eorg e D. G raves
R e ev e S ch ley
F rank O. R oe
Sherrill Sm ith
H a rry H. P ond
H e n ry O llesheim er
Sam uel S. Cam pbell
A lfred C. A n d rew s
W illia m E. L a k e
R o b e rt I. B arr
M. G. B. W h e lp le y
W illia m P. H olly
V ic e -P re s id e n t and C ashier
S econd V ic e -P re s id e n ts
F re d e rick W . Gehle
Jam es L. M iller
G eorg e W . Sim m ons
Josep h C. R o v e n sk y
E d w in A . L ee
B en ja m in E. S m ythe
W illia m E. P u rdy
Joseph P u lv erm ach er
G eorge H. S aylor
L e o n H. Joh nston
M. H adden H ow ell
F ranklin H. G ates
A lfre d W . H u dson
A rth u r M. A iken

RESOURCES:

T h om as R itch ie
C om p troller

O v er $ 2 5 , 0 0 0 , 0 0 0 . 0 0

Foreign and Trust Department Facilities


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

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

Scene of the N a tio n s most
outstanding economic devel­
opment, the Great Southwest.

/ V e believe in our territory, in its fertility, its
capacity, its diversified wealth. For years our
interests have been the Southwest’s interests. A
“Commerce” connection is one of the gateways
to this vast landed domain of prosperity.

National Bank^ Commerce
w ith w h i c h is a f f i l i a t e d t h e

Federal Commerce Trust Company

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