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APRIL
1940
AT TH E D EN VER CONFERENCE
O n th e le f t, R o b e r t M . H a n e s , p r e s id e n t, a n d H . W . K o e n e k e , s e c o n d v ic e p r e s id e n t,
of th e A m e r ic a n B a n k e r s A s s o c ia tio n .
2,000,0 0 0 Customers W ith a Sales Volume of $500,000,000
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Page 11
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Services
M erchants N ational B an k ex ecu tiv es are con stan tly in touch
w ith new m eth o d s o f h ank o p era tio n , special d ev elo p m en ts and
u n u su a l b a n k in g p ro b lem s in all parts o f Iowa.
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T h ro u g h th ese fa r-flu n g contacts plus ou r own years o f e x p e r i
en ce, the M erchants N ational B ank is able to offer m any “ extra"
services to co rresp o n d en t h an k s, over and above the ordinary
rou tin e o f c o rresp o n d en t b a n k in g . We invite you to share in
th is type o f co o p era tio n .
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A CEDAR R A P ID S B A N K
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SERVICING ALL IOWA.
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MERCHANTS
M
NATIONAL BANK
O F F IC E R S
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J ames E. H amilton , Chairman
S. E. Coquillette, President
H. N. B oyson, Vice President
Roy C. F olsom, Vice President
Mark J. Myers, V. Pres. & Cashier
George F. Miller, V. Pres. & Tr. Officer
Marvin R. S elden, Vice President
F red W. S mith , Vice President
J ohn T. H amilton II, Vice President
R. W. Manatt , Asst. Cashier
L. W. B roulik, Asst. Cashier
P eter B ailey, Asst. Cashier
R. D. B rown, Asst. Cashier
0. A. Kearney, Asst. Cashier
S tanley J. Mohrbacher, Asst. Cashier
E. B. Zbanek , Building M anager
Cedar R apids
Iow a
Member Federai Deposit Insurance Corporation
N o r th w e ste r n B an k er, p u b lish e d m o n th ly b y th e D e P u y P u b lis h in g C om pan y, In c ., a t 555 7th S tr e e t, D e s M o in e s, Io w a .
S u b sc r ip tio n , 35c per co p y , $3.00 per yea r . E n tere d as s e c o n d - c la s s m a tter a t th e D e s M o in e s p o st office. C o p y r ig h t, 1940.
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il H a n k ers' B an k
U n e x c e lle d p h y s ic a l fa c ilitie s — a n e x p e rie n c e d , frie n d ly
p e rs o n n e l a n d clo se, p ro m p t a tte n tio n to th e s m a lle s t d e ta il
— th e s e a re th e re a s o n s w h y w e a re s e rv in g a n e v e r -in c re a s
in g n u m b e r of c o rre s p o n d e n t a c c o u n ts .
"
ty s ü é n d ly Î9 a n k "
CENTRAL NATIONAL BANK
AND T R U ST COM PANY
MEMBER
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Federal Reserve Bank of St. Louis
FEDERAL
DEPOSIT
INSURANCE
CORPORATION
R EA S O N S W HY B ANKS P R E F E R
L A M O N T E S A F E T Y PA PER S
PROTECTIO N
GOOD
W ILL VALUE
RECO G N IT IO N
PRESTIGE
IN D IVID U ALITY
ACCEPTANCE
P R O T E C T I O N
O u r S oldiers, S ailo rs a n d M a rin e s in sp ire a fe e lin g of
s a fe ty —a sa tisfy in g se n s e of se cu rity . L e a d in g In d u s
trialists a n d B a n k ers w h o sp ecify L a M o n te S afety
P a p e rs for th e ir ch e ck s, e x p e rie n c e a sim ila r g ra tify
in g fe e lin g of sa fe ty a n d se cu rity . T h ey k n o w th a t
" th e sa fe ty p a p e r w ith th e w a v y lin e s" m e a s u r e s u p
to th e ir e x a c tin g d e m a n d s for g u a lity a n d p ro tec tio n .
G E O R G E LA M O N T E & S O N , NUTLEY, N. J
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Federal Reserve Bank of St. Louis
5
PROTECTING
I N V I S I B L E
VALUES
STORM CRIPPLES
PRODUCTION
but expense
marches on!
LL BE W E E K ?
B E F O R E WE
¿A N (SET INTO
RUNNING ORPER
A G A IN .
Like a colossus from the clouds, hostile
winds rush earthward to vent their fury
upon m an’s fragile handiwork. Left in
their devastating path are the untold
effects of property damage . .. plants torn
asunder, power lines down, machinery
bogged, production crippled.
But expense m arches on! Lor when
output is stopped and orders unfilled, in
come is canceled. Yet during the period
of inactivity to follow, payrolls come up
and notes, taxes and other current charges
must be met.
Here is proof that m anufacturers re
™
age, explosion. Invisible income values,
sustained by the whir of wheels and the
buzz of production, should also be haz
ard-proof.
Th ose in te re s te d in the su ccessfu l
operation of certain m anufacturing plants
may consult agents of The Home on the
ad vantages of Use and Occupancy Insur
ance. This valuable supplem entary form
reim burses for loss suffered during inter
ruption of normal business as the result
of hazard.
IT f i l l I?
11UiVI h
i nsurance
company
NEW Y O R K
LI RE — A U T O M O B I L E — MAR I N E
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Federal Reserve Bank of St. Louis
quire protection for more than direct loss
caused by windstorm, fire, aircraft dam
and
ALLIED
LINES
OF
INSURANCE
6
B y estab lish in g corresp o n d en t
relatio n sh ip s w ith th e C hase, banks
th ro u g h o u t th e c o u n try give th eir ow n
custom ers— farm ers, m an u factu rers, m e rc h an ts— th e a d v an ta g e s
of a d d itio n a l facilities. In tu rn th e C h ase calls on these banks
for m a n y v a lu a b le services a n d th ro u g h th e m fig u rativ ely feels
th e pulse of th e n a tio n ’s business. T h ro u g h th e C hase, corre
sp o n d en t banks speed th eir collections, secure lo a n a c c o m m o d a
tions on short notice, o b ta in u p -to -d a te in fo rm atio n on tra d e
co nditions a n d in vestm en ts, ex p ed ite transfers a n d k eep posted
on th e c u rre n t fin an cial sta n d in g of A m erican a n d foreign
corporations. T h u s th e y b ro a d e n th eir o w n service to custom ers.
THE CHASE NATIONAL BANK
OF
THE
C IT Y
OF
NEW
YORK
M em ber Federal Deposit Insurance Corporation
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Federal Reserve Bank of St. Louis
FORTY-FIFTH Y E A R
N U M B E R 633
Oldest Financial Journal West of the Mississippi River
IN THIS ISSUE
Editorials
8
Across the Desk from the Publisher.
C LIF F O R D DE PUY
Publisher
R A L P H W. M O O R H E A D
Associate Publisher
H E N R Y H. H A Y N E S
Editor
J. STU A R T D A V IS
Associate Editor
Feature Articles
Frontispage—“The Meadow Brook” ...........................................................................
2,000,000 Customers ............................ .................................................K. R. Cravens
A . B. A . Regional Conference........... ............................................................................
Regional Conference Pictures........................................................................................
Operating Ratios of Ninth D istrict Federal Reserve Banks...................................
News and Views................................................... ................................Clifford D ePuy
How to Save Steps and Time in Your Bank......................................... C. M. Amann
Operating Ratios of Seventh Federal Reserve District Banks...............................
Legal Departm ent .............................................................................................
Farm ers to Continue to Get Government Benefits............ .......... Paul F. Lavezzo
10
11
12
13
14
16
17
18
20
21
Insurance
Hail Does Damage Crops in Iowa.......................................................C. P. Rutledge 23
W hat Auto Insurance Means to the General Public..................... George Olmsted 25
Agency Q uarters Improved.... ..................................... ................................................. 27
555 Seventh Street,
Des Moines, Iowa
Telephone 4-8163
•
•
N E W Y O R K OFFICE
Frank P. Syms
Vice President
330 West 42nd Street
Telephone Bryant 9-5490
M IN N E A P O L I S OFFICE
Bonds and Investments
Business Trend Somewhat U ncertain............................................................... ..........
The Month’s M arket Maneuvers..................................................... James H. Clarke
Iowa Investment Banking News..... ..............................................................................
Nebraska Investment Banking News...................... .....................................................
28
30
32
35
State Banking News
Nebraska News ..... /........
Omaha Clearings ...
Lincoln Locals ____
South Dakota News ......
Minnesota News ............
Twin City N ew s......
North Dakota News......
Montana News ..............
Iowa News ......... .............
...................................... 39
...................................... 41
................ ...........................................
43
...................................... 45
................................................
47
James M. Sutherland 51
...................................... 53
.........................................54
.........................................55
J. A . Sarazen
Associate Editor
Telephone Hyland 0575
Savings and Loan
Savings and Loan in the Smaller Community................................. C. H. W am ock 71
The Directors’ Room
A Few Short Stories to Make You Laugh
78
M EM BER
A udit Bureau of Circulations
Financial Advertisers Association
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Federal Reserve Bank of St. Louis
Across the Desk
From the Publisher
The Illinois B ankers
Association is opposed to
a m andatory rule for a
fixed ratio of capital to deposits, such as the old
10 to 1 ratio. A subcom m ittee of the association
believes th a t it would be ill advised if such a
program was enacted into law.
In the re p o rt of the com m ittee they emphasize
th a t a high ratio of capital to deposits has alw ays
failed as an adequate protection to depositors
and th a t the character of a b a n k ’s assets is more
im portant th an the capital to deposits ratio.
In a resolution passed by the comm ittee they
have this, to say: “ A study of the causes of bank
failures made by the Federal Reserve Board fails
to prove that the non-maintenance of any definite
ratio between capital structure and deposits was
a contributing cause for the recent avalanche of
bank failures. Furthermore, a study made of
bank failures does not prove that the ultimate
closing or failure was influenced by the bank’s
ratio of capital structure to aggregate deposits” .
In the final analysis there is no su b stitu te for
good m anagem ent and if there is good m anage
m ent th ere should be a high quality of assets and
these afford b etter protection to the depositors
th an an y thing else.
O ppose Arbitrary
Capital Ratio
Profits and Jobs
0 O Hand
There have been times
when em ployers have felt
• i_j
i
th a t the labor unions were
in
fighting them and they
had a rig h t to believe so, b u t a recent statem ent
from the executive council of the A m erican F e d
eration of L abor places them definitely on the side
of the capitalistic system and in favor of profits
as the follow ing statem ent will in d icate: “ We
have learned the lesson that when opportunities
for profits diminish, opportunities for jobs like
wise disappear” . Thus at long last labor realizes
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the fundam ental tru th th a t if business succeeds
they will succeed. If business is starved, labor
will starve. W ith official figures showing th a t
9,379,000 people are still unem ployed, perhaps this
statem ent of the council is a sign of b etter things
to come and a b etter un d erstan d in g between
capital and labor.
Increase New Uses
onr opinion one of
of Farm Products the basic Pr i n d pals of
any farm program for
either the dem ocratic or republican p a rty should
be to p u t increased efforts on new uses fo r farm
products.
A lready beaver-board is being m ade out of corn
stalks and m any other examples m ight be cited.
B ut in our endeavor to increase our m arkets
abroad let us also give serious thought to our
research laboratories to see if from them we can
secure new ideas and new form ulas to m ake use
of farm products which we are alread y growing.
H enry F o rd is using soy beans in the m anufac
tu re of autom obiles, w hich is ju st another example
of w hat can be done w ith proper research.
Believes America
W ill About Face
L o o k in g ahead w ill
Amerioa become more
regim ented, will the gov
ernm ent become more centralized, will our n a
tional leaders become v irtu al political d ictato rs!
There are questions which none of us can answ er
definitely b u t in the past the tre n d has been
certainly tow ards centralization.
In a recent article by B oger W. Babson, he be
lieves th a t our whole present political pictu re will
m ake a definite about-face.
He puts it this w ay:
“ G overnm ent u ltim ately will entirely ‘aboutfa c e ’ in its policy of ‘p ro te c tin g ’ industry , p ro
tecting labor and protecting capital. In place
of the present ‘nursing b o ttle ’ program we will
re v ert to free m arkets fo r commodities, labor,
and money. The governm ent will m erely referee
the game and see th a t all play it fairly. S hort
hours, easy term s and other present day utopian
policies will be throw n in the scrap heap. Too
bad? P erh ap s so—but it is coming.
“ Y oung people will aw ake from th eir present
playboy dream . Once again life will be serious.
They will realize th a t neith er the governm ent nor
anyone else owes them a living—th a t there is no
more reason why someone should give them a
job th a n th a t they should give a job to someone
else. ‘R oot-hog-or-die’ will again be a schoolhouse m otto. Y oung people who develop them
selves spiritually, physically, and m entally
th ro u g h arduous efforts will be in dem and. Those
who do not will be p u t on chores, public works,
or in the arm y. The ‘good old d a y s ’ of F ra n k lin
D. R oosevelt’s regim e will fade into h isto ry .”
If Ave are to continue to be the greatest nation
in the w orld—if our citizens are to be leaders in
economics and education, then they m ust be taken
aw ay from the “ nursing b o ttle ” program to
which Mr. Babson referred.
P e rs o n a lly Ave believe th a t th e fig h tin g sp irit,
t h a t th e sta m in a a n d d e te rm in a tio n of th e re a l
A m erican s will c o n tin u e in th is n atio n , w here
in d iv id u a l in itia tiv e does c o u n t a n d does re a lly
m ean som eth in g .
The 77th annual re p o rt of
the com ptroller of the cu r
rency r e c e n t l y issued by
P reston Delano m akes a very
good show ing for the N ational B anking System.
F o u r m ajor divisions of the annual re p o rt con
tain these in terestin g fig u re s:
National Banks
Make G o o d
Showing
1. Gross E arnings of N ational B anks $839,000,000
($11,000,000 less th an 1938)
2. N et A ddition to Profits - - - 225,000,000
($17,000,000 increase)
3. Expenses fo r 1939 - - - - 577,000,000
($9,000,000 less th an 1938)
4. T otal D e p o s i t s ............................ 29,469,000,000
($2,653,000,000 increase)
S alaries, AArages an d fees w ere 30 p e r cen t of
to ta l e a rn in g s. The v a rio u s F e d e ra l R eserve d is
tr ic ts v a rie d , of course, b u t th e n in th d is tric t
AAms th e h ig h e s t w ith sa la rie s a m o u n tin g to 33
p e r c e n t of to ta l e arn in g s.
The com ptroller in com m enting on the fu tu re
b anking in this country said : “ I t is m anifest
th a t every effort should be m ade to preserve the
good features of the existing systems, recognize
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an d c o rre c t th e ir sh o rtco m in g s, a n d fo rm u la te
m ethods AAdiereby b a n k in g m ay be m ade to con
fo rm to th e needs a n d d em ands of o u r ra p id ly
ch a n g in g econom y. T his re q u ire s v ision a n d im
ag in a tio n , w isdom an d sta te sm a n sh ip . B ecause of
th e in tric a c ie s of onr p re se n t-d a y econom ic s tru c
tu re , th e ta s k is difficult. H ow ever, it is essen tial
th a t th e fu tu re d ev elo p m en t of our b a n k in g sys
tem sh o u ld be c a re fu lly p lan n ed , r a th e r th a n p e r
m itte d to evolve h a p h a z a rd ly , in o rd e r th a t a d e
q u a te c re d it facilities, so essen tial to o u r con
tin u e d econom ic a n d social p ro g ress, sh all be
av ailab le even in tim es of stre ss an d g re a t em er
gency” .
C ertainly fu tu re planning is necessary if n a
tional banks, to say nothing of state banks, p ro
ceed along the rig h t and proper p ath w hich should
be aw ay from centralized control and aAvay from
branch banking.
I t is the belief of G ur
ney T. Hood, state bank
commissioner of N orth
Carolina, th a t b an king
in stitu tio n s c o u ld and
should handle 90 per cent of the present lending
noAV done by the 44 governm ent lending agencies.
Mr. Hood pointed out the grow th of the in stall
m ent loan business in his own state and em
phasized th a t m any other divisions of banking
should be done by the banks them selves ra th e r
th an leaving it to the governm ent lending agen
cies. E very b an k e r should make a conscientious
survey of the needs of his com m unity to see if
neAv loans need to be made.
Should Handle
9 0 % of Loans
M ad e by
Federal Agencies
Political candidates avIio favor
economy are in favor Avith 64 per
cent of those interview ed in a
recent Gallup Poll. W hile only
36 per cent of those questioned favor candidates
who are for increased spending.
The question which th ey were asked w a s :
Suppose there were two candidates for United
States senator in your state. One candidate prom
ises to vote to reduce all federal government
spending. The other promises to vote to spend
more federal government money in your state.
Other things being equal, which candidate would
you vote for?
Those expressing an opinion voted as folloAvs:
F o r candidate who favors spending.......36%
F o r candidate Avho favors econom y ___ 64%
L et us hope th a t candidates ru n n in g for office
this year will tak e this survey to h ea rt and guide
th eir ship of state accordingly.
Fconomy
Candidate
Favored
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2,000,000 Customers
W ith a Sales VofUtT)6
of $500,000,000
Consumer Credit Trends in Banking
By K. R. Cravens
Vice Pre side nt , The C l e v e l a n d Trust C o m p a n y
C levela nd
M
ORE a tte n tio n is being given to
the consum er and to consum p
tion th a n ever before in our
history. A nd q uite rig h tly so because
our p re se n t day system of m ass p ro
duction and d istrib u tio n is definitely
lim ited to our ab ility for m ass con
sum ption.
Since consum er c re d it’s sole use is
to finance th e acquisition of consum
er goods and services, e ith e r directly
th ro u g h in sta lm e n t financing or lend
ing or in d irectly th ro u g h th e refinan
cing of ex istin g debts created by p re
vious purchases, th is p re se n t a tte n
tion is significant. W e have suddenly
realized th a t m assed consum ption is
as equally im p o rta n t as m assed p ro
duction and distrib u tio n . M ost cer
tain ly our m ajo r econom ic problem
is to conv ert our ab u n d a n t n a tu ra l
resources into useful goods and serv
ices. T he solution of th is problem is
p rim a rily one of finding w ays and
m eans for th e consum ers of our nation
to pu rch ase th is increased output.
In view of th is prem ise, th erefore,
let no b a n k e r belittle th e im portance
of consum er cred it or cast it aside
as hav in g no legitim ate place in th e
b an k in g field.
F u rth e rm o re , th e
abundance or volum e of th is type of
cred it has a v ery direct effect on our
n atio n al economy, as I w ill point out
la te r on, w hich is all th e m ore reason
for every b a n k e r’s serious considera
tion of th is field.
G enerally speaking, consum er credit
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Federal Reserve Bank of St. Louis
m eans credit g ran ted to individuals to
acquire consum er goods and service.
F o r th e purpose of th is discussion
only, I w ish to re stric t th e term con
sum er credit to m ean credit extended
to individuals repayable on an in
stalm en t basis; am ortized personal
cred it extended by all of th e various
lending agencies and in stalm en t credit
extended for th e purchase of semid urable and durable consum er goods,
such as autom obile, m ajor appliances,
h eating equipm ent, etc. T his excludes
from th is discussion open account
cred it extended by retail m erchants;
real estate loans; and service credit
extended by physicians, hospitals, pub
lic utilities, etc., w hich are all, broad
ly speaking, consum er credit.
Our p resen t position in th e con
su m er credit field is m ore u n d erstan d
able if we briefly review th e b an k s’
en tran ce and activ ity in th is field.
T h ro u g h o u t th e 19th cen tu ry the
b anks in th e U nited States w ere too
occupied w ith com m ercial, ind u strial
and ag ricu ltu ral loans to pay m uch
a tte n tio n to consum er credit.
W hile it is tru e th a t th e ir consum er
credit activity increased som ew hat
d u rin g th e la tte r p a rt of th a t century,
due to th e changes in production and
d istrib u tio n m ethods, they, n ev erth e
less, stayed p re tty generally aw ay
from consum er loans.
D uring th e
first few y ears follow ing th e W orld
W ar th ere w ere a lim ited n u m ber of
b anks providing in stalm en t lending or
K. R. C R A V E N S
in stalm en t financing, but less than ten
per cen t of the p resen t num ber of
bank s in the U nited States engaged
in th is b u sin ess w ere so engaged prior
to 1935.
W hile no accurate figures are avail
able, I w ould estim ate, on th e basis
of a nu m b er of individual polls, th a t
th ere are some 2,000 com m ercial banks
w hich today have special and d istinct
personal loan and tim e sales d ep art
m ents. T here are undoubtedly some
8,000 o th er banks th a t are engaged in
some form of consum er credit. E xclu
sive of FH A m odernization credit, I
w ould say th a t these 2,000 ban k s w ith
separate dep artm en ts have consider
ably m ore th a n 75 p er cent of all of
th e personal loan and tim e sales p a
per handled by all of th e com m ercial
banks.
A pproxim ately 50 p er cent of all of
th e d ep artm en ts in existence today
w ere opened in th e last four years, or
since 1935. Some 25 p er cent of the
p resen t day total had th e ir inception
du rin g th e previous four y ear period.
T his m eans th a t 75 p er cent of all of
th e d ep artm en ts in existence today
have been opened in th e last eight
years.
Considering b an k personal loans
separately, du rin g 1938 loans w ere
m ade to about 1,500,000 people for
about $375,000,000. T his rep resen ted
about 20 p er cent of all of th e p e r
sonal loan business of th e four m ajor
(T u rn to page 35, please)
12
A . B. A . Regional C0Hfßt6HC6
Eight Hundred and Twenty-five Bankers Hold Outstanding
Meeting in Denver
ITH the atten d an ce exceeding
th e fondest hopes of A m erican
B ankers A ssociation officials
and its D enver sponsors th e Regional
Conference held in C olorado’s capital
city on M arch 21 and 22 w as an o u t
stan d in g success, and one of th e best
ever held. W hen re g istra tio n re tu rn s
w ere finally tabulated, eight h u n d red
and twenty-five b an k ers from 23 states
and th e D istrict of Colum bia had p a r
ticipated in th e several session. And
from th e opening rem ark s of A.B.A.
P resid en t R obert M. H anes to th e
closing evening m eeting w ith Asso
ciate E ducational D irector Bill Irw in
and th e D enver Sym phony O rchestra,
everyone w ho atten d ed certain ly got
valued received.
E v en th e w eath erm an cooperated
and produced those h alm y breezes one
reads about b u t seldom experiences,
especially if noe h appens to live in
N ebraska or Iowafi or som e oth er
M iddlew estern S tate th is tim e of year.
Iow ans left for D enver in a snow storm
and re tu rn e d to find th e tem p eratu re
little above th e zero m ark.
The m any talk s and discussions p re
sented a t th e Conference w ere every
one filled w ith in form ation and ideas
easily adaptable to every b an k in the
country. Space here p erm its brief
m ention of only a few of them , b u t
several will appear in full in subse
W
AT
THE
q u en t issues of The N o rth w estern
B anker.
K. J. McDonald, p resident of the
Iow a T ru st & Savings B ank of E stherville, described th e co u n try b an k as
“th e n a tio n ’s leading service statio n .”
“F o r years, ru ra l banks have been
collecting rents, paying taxes and even
buying autom obile licenses for th eir
custom ers,” Mr. McDonald said.
“W hy sh o u ld n ’t we ru ra l bankers
m ake consum er credit loans?
We
don’t need to be afraid of stepping on
th e toes of any finance com pany cus
tom ers.”
W illiam Z. H ayes, active vice-presi
den t of the Republic N ational B ank of
Dallas, Texas, spoke for a b e tte r u n
d erstan d in g betw een b ank and cus
tom er.
“W e m u st study th e ever-changing
c u rre n t of A m erican life,” he said.
“W e m u st exam ine and und erstan d
th e problem s of our citizenship in or
der th a t we m ay co n trib u te m ore und erstandingly and profitably to th e ir
progress and success.
“The h ardships of our custom ers
d u rin g th e p ast few years, w ith its
m any business failures, closing of
b anks and unem ploym ent, have shown
v ery clearly some th ings w hich we
alread y knew b u t evidently had not
sufficient cause to consider and take
into account.”
DENVER
R E G IO N A L
P ictu red at the righ t are a number o f those atten d in g the
A .B .A . R egional Conference in D enver. R eading from le ft to
righ t th ey are: 1— L. J. Funderburg, manager, D enver branch,
H. A. Lombard, bank division, D etroit; and R. E. Jacobson, bank
d ivision , M inneapolis; all of the Burroughs A d ding M achine
Company. 2— Earl Bauer, a ssistan t v ice president, Commerce
Trust Company, K ansas C ity; and H. H. M ohler, v ice president,
F irst St. Joseph Stock Yards Bank, St. Joe, M issouri. 3— T. B.
Strain, president, C ontinental N ation al, L incoln; P erry H en
dricks, v ice president, U n ited S ta tes N ation al, Omaha; S. C.
Parks, president, Shoshone N ation al, Cody, W yom ing; and J. B.
W elborn, a ssistan t vice president, F ir st N ation al, D enver. 4—
H. R. Y oung, cashier, A m erican N ation al, A rlin gton; J. J. M at
thew s, vice president, U nion B ank & Trust, Straw berry P oin t;
R. A. Sw eet, v ice president, Story County State, Story C ity;
G-. M. B arnett, president, G uthrie County State, Guthrie Center;
and A. T. D onhowe, vice president, Central N ation al B ank &
Trust, D es M oines; all from Iow a. 5— R ay R idge, vice president,
Omaha N ation al Bank, Omaha; John A. Guthrie, president, F irst
N ation al, Laram ie, W yom ing; and P. K. A lexander, vice presi
dent, F irst N ation al, D enver. 6— R. H. K roeger, vice president,
L ive Stock N ation al, Omaha; and Chas. C. K uning, a ssistan t
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
H a rry H. M ohler, vice presid en t of
th e F irst St. Joseph Stock Y ards bank,
St. Joseph, Mo., adm onished b ankers
to advise th e ir farm er - borrow ers
against en terin g into unsound produc
tion of crops and livestock as a re
sult of w ar in Europe.
“We do not y et know to w h a t ex
te n t th e w ar w ill affect ag ricu ltu ral
conditions in th e U nited S tates,” he
said, “b u t th e last one is n ot so far be
hind us th a t we cannot rem em ber
the resu lts th a t culm inated in the
collapse of prices in 1921-1922.”
The problem s arising from govern
m ent com petition w ere considered in
detail by T. B. S train, p resid en t of th e
C ontinental N ational B ank of Lincoln,
N ebraska, in a fact and figure-studded
address.
Mr. S train pointed out th a t tre n d of
borrow ing has been aw ay from th e
banks for several y ears and th e de
cline in in terest rates has becom e an
alarm ing problem .
“G overnm ent com petition, th ro u g h
th e m edium of 30 some odd different
agencies has become a serious factor,”
Mr. S train said.
“It is an acknow ledged fact th a t the
R econstruction F inance Corporation
has m ade m any loans on w hich it has
obtained b e tte r collateral th a n the
banks w ere able to secure in w hich
(T u rn to page 44, please)
CONFERENCE —
v ice president, A m erican N atio n a l B ank & Trust, Chicago. 7—
Ben S. Sum m erwill, president; R. J. B aschnagel, director; Geo.
A. Thompson, director; W. W. Sum m erwill, credit m anager, all
o f the Iow a S tate B ank & Trust, Iow a C ity, Iow a; and L. N.
Shaw, president, F irst N ation al, Goodland, K ansas. 8— W illiam
C. Rem pfer, president, F irst N ation al Bank, P arkston, South
D ak ota; and Claude L. Stout, vice president and cashier, Poudre
V a lley N ation al, F t. Collins, Colorado. 9— E rrett D unlap, Jr.,
a ssistan t secretary, M anufacturers Trust, N ew Y ork City. 10—
W. S. Thompson, D enver, m anager, Douglas-G uardian W arehouse
Corporation, and their exh ib it at the C onference. 11— E. W.
Jones, vice president, Iow a-D es M oines N ation a l B ank & Trust,
D es M oines; D. W. B ates, Iow a superintendent of banking, D es
M oines; and R. O. Byerrum , vice president, F irst Trust & S a v
ings Bank, D avenport, Iow a. 12— W. A. Lane, president, S e
curity S avin gs Bank, M arshalltow n, Iow a; H arold Stonier, e x ec
u tiv e m anager and educational director, A m erican B ankers A sso
ciation, N ew York; and C. T. Boeder, F ederal R eserve Bank,
D enver. 13— F rank W arner, secretary, Iow a B ankers A ssocia
tion, D es M oines; and L. A. W itter, president, Farm ers Trust &
S avin gs Bank, Spencer, Iow a.
m
mmm
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
14
“ O PER A TIN G R A T IO S” OF M EM BER BANK S
M in n eap olis Federal
B A N K S W IT H A V E R A G E TOTAL D E P O SIT S
Year.
SOURCES OP E A R N IN G S
1939
Your B ank
1938
U nder
1937
1939
54
Num ber o f Banks.
$ 250 M
1937
1938
64
60
1939
$
120
250 M - $ 500M
1937
1938
126
119
( P e r c e n t a g e of T o ta l C u r r e n t E a r n in g s )
1. In terest and discount on loan s...........
2. In terest and dividends on securities.
3. Other current earn in gs...........................
4.
T otal Current E arn in gs.................
100.0
100.0
100.0
( F o r b a n k s r e p o r t in g th e s e ite m s o n ly )
5.
6.
Trust departm ent incom e.................
S ervice charges......................................
54.5
20.8
24.7
50.0
24.0
26.0
49.8
25.3
24.9
55.7
22.9
21.4
53.1
25.7
21.2
47.6
30.4
22.0
100.0
100.0
100.0
100.0
100.0
100.0
_
*
_
5.3
5.0
34.3
13.6
7.9
20.5
35.2
15.0
35.4
14.8
28.9
28.9
79.1
20.9
100.0
13.6
7.3
3.2
79.1
20.9
100.0
14.9
6.0
100.0
7.0
.7
6.1
7.0
.8
1.9
5.9
6.8
.6
.9
6.5
7.0
.5
1.1
6.4
6.7
.7
1.6
5.8
3.5
.1
.5
.9
3.2
3.6
.2
.5
.5
3.8
3.6
.3
.8
3.5
.2
.6
1.9
2.4
3.7
.3
.6
—
0
3.8
—
—
3.7
U S E S OF E A R N IN G S
( P e r c e n t a g e of T o ta l C u r r e n t E a r n in g s )
11.
12.
13.
14.
15.
16.
T otal Current E xp en ses.......................
N e t E arnings from Current O perations
T otal Current E arn in gs......................
N et charge-offs.................................................
N e t add ition to profits................................ Cash dividend s declared...............................
76.3
23.7
100.0
100.0
100.0
100.0
15.0
8.7
4.2
|
29.1
19.0
5.9 (
18.8 (
72.8
27.2
7.1
20.1
8.6
29.1
20.1
28.9
20.6
25.6
26.3
74.8
25.2
100.0
15.2
10.0
GO*
S alaries and w a g e s....................................
In terest on tim e and savin gs deposits
T axes (real esta te and o th e r )..............
Other expenses..............................................
75.8
24.2
100.0
12.8
11.4
GO
7.
8.
9.
10.
R A T E S OF E A R N IN G S A N D LO SSES
ON L O A N S A N D SE C U R IT IE S
( P e r c e n t a g e o f T o ta l L o a n s a n d D is c o u n ts )
7.0
.7
1.9
5.8
17. In terest and discount on loans.................
18. R ecoveries on loan s........................................
19. L osses on loan s............... ..................................
20.
N e t R eturn on L oan s..........................
( P e r c e n ta g e of S e c u ritie s )
21.
22.
23.
24.
25.
3.5
.2
.5
.5
3.7
In terest and dividends on secu rities......
R ecoveries on secu rities...............................
Profits on secu rities sold............................
L osses on se cu rities..................................... —
N e t R eturn on S ecu rities.................
1.6
1.0
3.7
1.1
3.5
R A TE OF IN T E R E S T P A ID ON TIM E D E P O SIT S
( P e r c e n t a g e of T im e a n d S a v in g s D e p o s its )
2.0
26. In terest on tim e and savin gs d ep osits......................
—
—
2.1
—
—
R A T E S OF E A R N IN G S ON TOTAL CA PITA L
ACCOUNTS
( P e r c e n ta g e o f T o ta l C a p ita l A c c o u n ts )
5.8
3.8
2.0
10.7
2.8
7.9
3.4
10.0
5.6
4.4
9.6
4.9
4.7
CO
5.8
3.5
2.3
.9
CO*
6.6
4.0
2.6
1.3
27. N e t earnings from current operation s.......... ...........
28. N e t charge-offs....................................................... ..............
29.
N e t A d dition to P rofits.................................. .......
30. Cash dividends declared....................... ..........................
D IST R IB U T IO N OF TOTAL A SSE T S
( P e r c e n t a g e of T o ta l A ss e ts)
31.
32.
33.
34.
35.
Loans ........................................................
S ecurities ...............................................
R eal estate a ssets............................ .
Cash a ssets...............................................
A ll other assets...................................
36.
T otal A sse ts...................................
100.0
39.4
27.2
4.6
28.7
.1
—
—
—
—
—
—
100.0
—
39.8
30.6
2.9
26.5
.2
—
—
—
—
—
—
—
100.0
—
—
25.2
—
49.3
14.8
15.0
—
—
—
—
OTHER O PE R A T IN G RA TIO S
( P e r c e n t a g e o f T o ta l D e p o s its )
37. Time d eposits.........................
38. T otal capital accou nts.......
39.0
24.1
—
F O O T N O T E S : A ss e t a n d lia b ility ite m s a r e a v e ra g e s of a m o u n ts s h o w n o n all C a ll R e p o r ts d u r in g th e c a le n d a r y e a r . E a r n in g s a n d e x p e n se ite m s a r e th e su m
o f th e tw o s e m ia n n u a l r e p o r t s of e a rn in g s a n d d iv id e n d s . P e r c e n t a g e s w e re c o m p u te d f o r e a c h b a n k , a n d th e p e r c e n ta g e s f o r all b a n k s in each
s iz e -g ro u p w e re th e n a v e ra g e d . T h e d e p o s it g ro u p in w h ic h y o u r b a n k is in c lu d e d is ch e c k e d t h u s : V ’" In s u ffic ie n t b a n k s r e p o r t in g .
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1
15
FO R T H E Y E A R S, 1 9 3 9 ,
1 9 3 8 AN D
1937
R eserve D istrict
B A N K S W IT H A V E R A G E TOTAL D E P O SIT S
$
500M
-$
1 , 0 00M
$
1 , 0 00M
-$
2 , 0 00M
1939
1938
1937
1939
122
122
119
81
73
47.3
31.9
20.8
44.0
40.1
35.4
39.5
20.6
20.4
41.7
37.2
21.1
20.8
100.0
100.0
100.0
100.0
100.0
3.3
4.1
—
28.6
22.0
5.9 /
17.9 ]
—
4.0
28.5
28.0
22.7
23.2
24.3
25.6
2.2
5.3
29.2
19.0
6.3 {
18.6 j
1938
$
2 , OOOM - $ 5,OOOM
1937
1939
76
51
57
36.4
33.6
42.8
45.0
2 1.4
37.7
39.5
22.8
22.5
100.0
100.0
100.0
—
4.8
—
—
29.3
27.7
22.2
21.3
24.6
25.3
2.0
5.9
31.0
17.3
6.11
19.6 }
1938
$
5 , OOOM- $ . 10,OOOM
1937
1939
58
18
14
36.6
32.9
40.9
44.5
22.6
39.4
36.5
24.1
24.3
100.0
100.0
100.0
—
5.8
—
—
30.6
29.3
18.2
20.1
26.8
26.7
3.2
6.5
33.9
11.9
5.6 |
23.8 (
O v e r 10 , O00 M
1937
1939
1938
1937
15
11
9
9
37.6
39.3
41.0
36,8
43.5
40.8
23.9
42.7
37.3
20.0
38.5
38.1
18.0
18.2
100.0
100.0
100.0
100.0
5.6
4.0
—
1938
—
6.1
—
—
34.7
32.6
14.2
14.6
31.2
29.9
—
3.3
33.5
10.8
8.3 1
21.4 \
32.1
30.1
12.3
13.3
30.4
29.8
75.5
76.8
74.3
76.1
l b .2
80.1
77.1
73.2
25.7
24.4
23.9
24.8
19.9
22.9
74.0
26.0
74.8
2 3.9
74.0
26.0
75.6
2 3.2
73.1
26.9
76.7
24.5
25.2
26.8
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
6.5
19.1
8.7
12.2
11.6
9.3
9.2
7.7
16.5
10.5
16.2
+ 6.5
32.5
19.3
+
14.6
5.5
19.3
7.2
7.4
11.6
3.1
22.9
7.8
13.9
12.3
6.0
20.9
8.5
7.4
6.3
*
6.2
.5
.7
6.0
6.4
6.5
.6
.8
.8
1.0
6.2
6.3
3.4
3.6
.3
.4
3.3
.4
.9
1.5
3.1
.7
1.7
1.8
10.5
2.8
7.7
3.4
32.7
38.3
2.7
26.0
.3
100.0
54.7
12.5
5.8
.7
.6
5.9
5.7
5.8
5.1
5.4
5.2
.7
.9
1.0
.8
1.0
.9
1.0
1.0
5.7
.7
5.4
1.0
5.5
5.2
5.2
2.9
3.1
.3
.5
3.4
.3
.7
3.1
.3
.7
.7
.5
1.5
1.0
1.3
2.7
3.2
3.1
—
—
1.5
10.2
9.9
5.3
5.0
4.9
4.9
2.8
10.1
2.4
7.7
3.0
—
—
—
—
—
—
27.6
43.1
2.5
26.5
.3
—
100.0
—
51.6
11.9
—
—
12.6
—
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
3.3
.6
.6
1.6
1.4
3.0
1.0
3.2
2.9
.5
.7
1.1
3.0
2.2
2.8
—
—
1.3
—
.3
9.1
9.9
3.9
3.5
5.2
6.4
2.6
_
_
—
—
—
—
—
—
—
—
9.1
1.5
7.6
2.6
24.6
43.1
2.7
29.2
.4
100.0
— 1
11.1
19.2
15.5
8.5
—
4.6
4.6
.7
.9
1.0
.5
4.3
5.0
2.6
_2
2.6
.2
—
—
—
—
—
—
24.7
38.7
2.1
34.0
.5
—
—
100.0
—
—
—
35.2
10.1
5.1
2.8
2.4
5.5
3.7
2.2
1.9
5.5
7.3
2.7
2.7
.4
.3
17
18
19
20
2.5
—
1.1
—
—
26
7.7
.4
2 .4
5.8
5.3
2.5
7.4
+ 1 .5
8.9
4.5
—
—
—
—
—
—
24.6
36.4
1.6
36.9
.5
—
—
100.0
10.9
5.5
2.7
3.2
6.2
—
5.0
2.3
8.1
1.4
6.7
2.1
5.8
19.1
.4
—
3.7
25.5
.9
1.1
2.2
1.3
33.6
.7
—
8.5
8.4
11
12
13
14
15
16
.6
.4
.9
2.7
9
21
22
23
24
25
.8
8.7
7
8
2.4
.3
.8
.9
2.6
.6
3.0
5.0
11.1
.7
2.5
.2
.9
.9
2.7
49.2
11.8
4.6
.7
.9
4.4
4
5
6
10
74.4
25.6
7.1
1
2
3
—
_
26.5
10.0
+
6.9
7.6
2.3
.4
9.2
7.2
5.1
—
27
28
29
30
—
—
—
—
—
—
—
—
31
32
33
34
35
—
—
36
_
37
38
10.3
16
N ew s
and
OF
B A N K IN G
THE
V iew s
W ORLD
By Gifford De Puy
£ EN A TO R ELM ER THOMAS of Ok
lahom a has intro d u ced a bill w hich
w ould au th o rize th e E x p o rt-Im p o rt
B ank to re d istrib u te am ong th e solvent
n atio n s of th e w orld th e 18 billion dol
lars in gold now held by th e U nited
States. H e believes th is w ould m ake
th e b an k a “w orld b a n k ” w hich could
save th e collapse of m o n etary system s
in nations- w hich are losing th e ir gold.
T hu s w e assum e th a t S enator Thom as
believes we should give aw ay th e gold
for w hich we have been paying $35 an
ounce and have b u ried a t F o rt Knox.
T his sounds ju st about as in tellig en t
as m ost of th e S en ato r’s financial
plans.
.7. S tan ley B row n, p ersonnel directo r
of th e Chem ical B ank and T ru st Com
p an y of N ew York, believes th a t
A m erican y o u th has a different o u t
look th a n in th e days w hen D octor
R ussell C onw ell m ade his fam ous lec
tu re on “A cres of D iam onds.” Today,
says Mr. Brow n: “Those sam e acres
are acres n o t of diam onds, b u t of dy
nam ite. T hese w ere once acres of
diam onds because, once, th e A m erican
w ho w an ted th e b e tte r th in g s of life
w en t to w o rk and to re th em from
M other N ature, his tools being his ow n
resources of c h a ra c ter and courage
and self-respect. T h ey are acres of
dynam ite today, because to d ay ’s A m er
ican w ho w a n ts th e b e tte r th in g s in
life goes to W ashington!”
R obert K ingm an G oodwin, 34, th e
new congressm an from th e six th Iow a
district, is a son of W illiam J. Good
w in, ch airm an of th e board of th e Cen
tra l N ational B ank and T ru st Com
pany of Des Moines. R obert Goodwin,
w ho lives a t Redfield, Iowa, is th e first
congressm an elected from outside
Polk county in th e six th d istric t in 50
years. Bob’s fa th e r w as th e head of
th e ag ric u ltu ra l com m ittee of th e
G lenn F ran k policy com m ittee for the
R epublican N ational Com m ittee. Bob
Goodwin g rad u ated from D rake U ni
v ersity in 1928 and previous to th a t
had a y e a r in law at George W ash in g
ton U n iv ersity a t W ashington, D. C.
He now m anages th e Redfield B rick &
Tile Com pany and also operates the
280 acre farm ow ned by his fam ily.
A nn Sheridan, th e H o lly w o o d
“oom ph” girl, w as listed in th e H a r
v ard Lam poon as th e sta r m ost u n lik e
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
business of th e section and Solomon
w as ‘out.’ Like m any illu stra tio n s
later on in life th e state forgot th a t in
vested capital m u st be profitably used
before it becomes w ealth .”
ly tb succeed.
T his m ade th e ch arm
ing young lady m ad so she looked up
h e r H arv ard statistics and said: “The
average inm ate of th a t school earns
less th a n $5,000 a year, 25 years a fter
g ettin g out of it. T hey w ouldn’t be
g ettin g th a t m uch if it w eren ’t for a
couple of m illionaires.” Miss Sheridan
is only 25 y ears of age and after being
out of college five y ears is earn in g
$100,000 a y e a r so she th in k s she has
th e rig h t to talk. R eferring fu rth e r to
h e r H arv ard friends she said: “One of
its g raduates is a filling statio n w ind
shield w iper. A nother is a bum w ho
h a s n ’t slept in a bed for five years. A
th ird rep o rted he w as ‘an u tte r fail
ure, m orally, m entally and financial
ly ’.” Of course, Miss S heridan is m ad
an d p erhaps we can ’t blam e her, b u t
a fte r all we could fu rn ish some sta tis
tics about actors w hich indicate th a t a
few of th em have also been glad to
tak e filling statio n jobs if th ey could
get them .
Senator P epper of F lo rid a has in
troduced a bill w hich w ould establish
a p e rm an en t in d u strial loan corpora
tio n to assist financial in stitu tio n s in
m ak ing credit available to in d u stry
and business. Loans w ill be lim ited to
$25,000 over a m axim um period of ten
years. The m easure is rep o rted to
have been in spired by Senator Mead
of N ew Y ork and w ould utilize th e
F ed eral R eserve banks as agents for
th e perform ance of its functions. W e
th in k such a bill is unn ecessary and
w ould only add an o th er federal lend
ing agency to com pete w ith b an king
in stitu tio n s w hich are already p e r
fectly w illing to m ake all w o rthw hile
loans to in d u stry and business.
R obert L. Sm itley, m anager of the
Dixie B usiness Book Shop in W all
Street, in a recen t booklet en titled
“Some F am ous Econom ic A nalogies,”
h ad th is to say: “Some h u n d red s of
y ears B. C., Solom on w as considered
to have been th e w isest of kings. Yet
he sta rte d a PU BLIC WORKS PR O J
ECT w hich w recked his kingdom . The
p ro p h et Jeroboam , a co n trary m inded
chap, ro ared his disapproval of the
w hole schem e. H ow m uch economics
Jeroboam k n ew we do n ot know.
W hen Solomon com pleted his job, his
m a rk ets w ere ruined, his b est cities
h ad gone into u nproductive lum ber,
stone and labor. H iram h ad all th e
R. O. B yerrum , executive vice p resi
dent of th e F irs t T ru st and Savings
B ank of D avenport, w as to astm aster
a t th e Iow a R epublican Club din n er
held in th a t city recently. H anford
M acNider, d irector of th e F irs t N a
tional B ank of M ason City and p ast
N ational C om m ander of th e A m erican
Legion and form er A ssistan t S ecretary
of W ar, delivered th e p rincipal ad
dress. A m ong o th er th in g s Mr. Mac
N ider said: “T he dem ocratic p a rty
has been tak en over by a stran g ely
assorted crew w ho have no reg ard for
th e Jefferson principles of dem ocracy,
for the co u n try or for an y th in g else
except a continuance of th e ir te n u re
of control in A m erica. Mr. R oosevelt
and his arm y of little m en w ith bulgy
foreheads have in th e ir seven y ears of
exp erim en tatio n sta rte d a lot of forces
w hich th ey don’t know how to stop.
The show ’s got aw ay from them . Cer
tain ly th e ir finances have, and u n fo r
tu n a te ly those finances are o u r
finances too.”
F red \V. G elile, second vice p resi
den t of th e Chase N ational B ank of
New York, is th e N ational D irector of
th e In d u stria l D ivision of th e F in n ish
R elief F und. T he goal for th is divi
sion is one m illion dollars to be raised
th ro u g h o u t th e U nited States for th e
relief of d estitu tio n am ong suffering
civilians of w a r to rn F inland. Mr.
Gehle is w orking in close h arm ony
w ith H erbert H oover, natio n al ch air
m an of th e F in n ish relief fund.
John C. Gebhart has offered a plan
to balance th e budget w hich is en titled
“M ust T h ere Be A n other Deficit?”
T his is issued by th e N ational E con
om y League, 280 M adison A venue,
N ew York, and if you h a v n ’t a copy
you should get one. T he L eague p ro
poses to elim inate th e deficite by cu t
tin g expenditures about one and threeq u a rte rs billion, by ap p ro p riatin g 700
m illion of th e su rp lu s funds of g overn
m en t lending agencies and by raisin g
431 m illion in new taxes.
The F ed eral R eserve B ank of N ew
York m ade 16.1 p er cent n et profit for
its m em bers in 1939 com pared w ith
9.9 in 1938.
R u ssell F. L undy, p resid en t of th e
M utual S u rety Com pany of Iow a in
Des Moines, has sen t out one of th e
m ost in te re stin g calendars w e have
seen, en titled “W h at A bout 1940?”
T his is a pictu re of th e w ell know n
(T u rn to page 34, please)
17
H o w to
SdV6 Steps
and Time
In Your Bank
Suggestions That Will Increase Speed and Efficiency In Routine Operations
OW MANY of you have h eard
th ese term s: “Scientific Sales
H
m en,” “Scientific System s,” “Sci
entific A nalysis,” “Scientific D esigns,”
“Speed,” “Efficiency,” “L abor Sav
in g s”? So often, perh ap s, you have
grow n w a ry of th e m en w ho use those
w ords. H ow ever, good com m on sense
tells you th a t saving steps an d tim e
w ill in crease speed and prom ote m ore
efficiency in y o u r bank. E specially
is th is im p o rta n t today in com m unity
ban k s u n d e r th e provisions of th e
W age an d H o u r Law. K eep th is in
m in d and look a t y o u r ow n p a rtic u la r
b a n k ’s w o rk in g q u a rte rs and ask y o u r
selves th ese questions: “H ow can we
secu re in creased efficiency?” “W here
an d how do we s ta rt? ”
One of th e sen io r b an k ers told me
th a t ev ery so often he w ould come
dow n to his b an k on a Sunday a fte r
noon and ju s t sit and th in k about his
b a n k and th e daily ro u tin e of his em
ployes. He w ould ask th ese ques
tio n s of him self: “Do you see a n eat
w o rk in g space?” “Or do you find
pap ers th a t have been accum ulating
on desks and co u n ters—p erh ap s th e re
are a few item s th a t should have been
filed y e sterd ay an d possible a w eek or
a m o n th ago?”
“N eatn ess,” he w ould say, “is not
only a v irtu e, b u t it aids in efficiency,
for w h en item s are in th e ir p ro p er
places th e y can be located quickly.”
N ow look a ro u n d y o u r ban k in g
room w ith an eye to w ard s th e “flow
of w o rk .” F low of w o rk has been de
fined as th e p a th th e checks, deposits,
and o th e r item s follow as th e y p ro
gress from th e custom ers to th e ir
ev en tu al filing places in y o u r bank.
Do y o u r custom ers come in to p u r
chase a m oney o rd er from y o u r teller,
an d w a it w hile he w alks over to th e
m oney o rd er re g iste r and e n te rs th e
correct inform ation? T h en do th e y
w atch him w alk to th e o th er side of
th e room w h ere he uses a ty p e w rite r
to w rite o u t th e order? Do th e y follow
him w ith th e ir eyes w hile he w alks
to w ard still an o th e r co u n ter to use
th e check w riter? F in ish in g th a t task,
does he stop on his w ay back to th e
w indow an d date th e order? Is th a t
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
By C . M. Amann
Assistant C a sh ie r
Auburndale
Auburndale,
S t a t e B ank
W is co n sin
efficiency in th e “flow of w o rk ”? If
he does all these th in g s he is w asting
p a rt of his tim e as well as a p a rt of
th e tim e of y o u r custom er. Is it not
service th a t th e custom ers have a rig h t
to dem and from us today?
W hy
couldn’t you rearran g e y o u r w orking
C. M . A M A N N
space a bit and b ring the register, ty p e
w riter, check w riter, and d ater to one
centralized location convenient to
y o u r tellers? You can do ju s t th at,
an d th ereb y im prove th e efficiency of
y o u r employes. Aid th em in giving
y o u r custom ers th e best of service.
Save those u n n ecessary m ovem ents!
Stop and trace in y o u r m ind your
m ethod of handling one large deposit,
from th e tim e yo u r custom er hands it
to y o u r teller, step by step, u n til th e
deposit ticket and th e various item s
are filed afte r th e d ay ’s business has
been posted. You w ill in v ariab ly find
a t least one or tw o places w here the
w ork could be speeded up th ro u g h the
use of m o r e
efficient m ethods.
“W here?” you ask. H ave you ever
checked y o u r m ethod of filing y o u r
deposit tickets? Do you still p unch
holes in th em and place th em on a
holder w ith a date card on top? Do
you, a t th e end of th e m onth, place
a m onth card on th em and w ire them
together? Look th em up today and
y o u ’ll probably find th a t m any m o n th s’
tick ets w ere tossed on a shelf or even
off in one co rn er of th e v au lt w ith o u t
rhym e or reason. Does th a t look
neat? Could you pick out one p a r
ticu lar m o n th ’s tick ets w ith o u t first
h an dling a half dozen or m ore bundles
in o rder to find th e rig h t one? You
m ay be w ondering: “H ow could you
change th a t m ethod to increase effi
ciency?” Do ju s t this: D iscard y o u r
punch and holder today (or if you in
sist, a t th e end of th e y ear w hen all
yo u r dates are used u p ), and refra in
from b u ying new day and m onth cards
in th e future. F o rg et th a t item of
needless expense! In th e fu tu re file
all y o u r deposit tickets in one of those
cheap storage boxes W ITH O U T date
cards and W ITH O U T w irin g th em to
g eth er each m onth. P u t y o u r tickets
in th e storage box each day and w hen
th e box is filled place th e last date on
th e end of th e box—th e first date w as
placed th ere a t th e tim e th e new box
w as sta rte d —and p u t th e box on th e
shelf. Should you have to look up a
certain deposit tick et som etim e you
could quickly glance a t th e various
boxes and select the pro p er one w hich
w ould contain th e desired ticket.
A ren ’t th e dates on all y o u r deposit
tickets? Certainly! T hen w hy have
th e date cards th ere to duplicate in
form ation you already have and v ery
seldom find use for?
Should you find y o u r light bill some
m o n th larg er th a n th e previous m onth
you im m ediately w onder w hy. Pos
sibly if you w ere to ascertain th e facts
you m ight find th a t th e basem ent light
w as left b u rn in g a nu m b er of nights.
W hy n ot install a sm all pilot light,
sim ilar to th e one y o u r wife has on
h e r electric stove? Do th a t and y o u ’ll
(T u rn to page 33, please)
18
C A L E N D A R Y E A R 1939
Average Operating Ratios of Member Banks in the Seventh Federal Reserve District
Grouped According to Size of Deposits
A ll ratios are expressed in percentages and are arithmetical averages of the ratios of individual banks in each group,
rather than ratios based on aggregate figures.
1
4
3
2
G
5
8
7
9
11
10
12
13
1
1 0 ,0 0 0 1 0 ,0 0 0 5 0 ,0 0 0
to
to
and
2 9 ,9 9 9 1 9 ,9 9 9
up
250
250
to
499
500
to
749
750
to
999
1 ,0 0 0
to
1 ,4 9 9
1 ,5 0 0
to
1 ,9 9 9
2 ,0 0 0
to
3 ,4 9 9
3 ,5 0 0
to
4 ,9 9 9
5 ,0 0 0
to
7 ,4 9 9
7 ,5 0 0
to
9 ,9 9 9
N u m b e r o f b a n k s u s e d in s t u d y - ___ _______ _______ ______ _
28
119
99
92
110
58
98
36
45
29
43
R A T IO S T O T O T A L C U R R E N T E A R N IN G S :
S o u r c e s o f E a r n in g s
1. I n t e r e s t a n d d i s c o u n t o n l o a n s _______ ______________
2 . I n t e r e s t a n d d iv i d e n d s o n b o n d s , s to c k s , e t c ..............
3 . S e rv ic e c h a r g e s o n d e p o s i t a c c o u n t s _____ _____ _____
4 . A ll o t h e r e a r n i n g s ____ ______ ____ ______________ ____ _
6 3 .1
2 3 .3
5 .2
8 .4
6 2 .2
2 2 .6
6 .6
8 .6
5 9 .6
2 4 .9
6 .3
9 .2
5 3 .1
3 0 .7
6 .4
9 .8
5 0 .4
3 3 .3
7 .4
9 .0
5 0 .7
3 3 .0
7 .6
8 .7
4 2 .8
3 8 .2
7 .5
1 1 .5
4 0 .8
3 7 .1
9 .3
1 2 .8
4 0 .9
3 2 .6
1 0 .0
1 6 .5
3 4 .2
3 8 .8
10.7
1 6 .3
3 9 .4
3 6 .6
8 .6
1 5 .4
10 0 .0
1 0 0 .0
1 0 0 .0
1 0 0 .0
1 0 0 .0
1 0 0 .0
1 0 0 .0
1 0 0 .0
1 0 0 .0
1 0 0 .0
3 1 .8
13.3
2 7 .0
3 0 .7
1 5 .8
2 5 .5
2 8 .9
1 8 .5
2 4 .0
2 8 .7
2 0 .0
2 4 .2
2 8 .8
1 9 .0
2 3 .6
3 0 .3
1 7 .4
2 3 .9
2 9 .3
1 9 .9
2 3 .8
2 8 .8
1 7 .5
2 6 .1
3 2 .1
1 4 .6
2 8 .0
72.1
7 2 .0
71.4
7 2 .9
7 1 .4
7 1 .6
7 3 .0
7 2 .4
9.
N e t e a r n i n g s f r o m c u r r e n t o p e r a t i o n s _______ ___
10. N e t c h a rg e -o ffs (o r n e t r e c o v e r ie s [ + ] ) -------- ---------11.
N e t a d d i t i o n s t o p r o f i t s ......................................... ...........
2 7 .9
+ 0 .7
2 8 .6
2 8 .0
2 .2
2 5 .8
2 8 .6
5 .1
2 3 .5
2 7 .1
0 .6
2 6 .5
2 8 .6
0 .9
2 7 .7
2 8 .4
+ 2 .0
3 0 .4
2 7 .0
+ 1.7
2 8 .7
1 2 . C a s h d iv i d e n d s d e c l a r e d ---- -------------- -------- ----------------
1 1 .3
7 .7
8 .1
7 .5
7 .1
8 .3
O th e r R a tio s to C u r r e n t E a r n in g s
13. R e a l e s t a t e t a x e s ( in c lu d e d in i t e m 7 ) .......... .................
14. O t h e r t a x e s (in c lu d e d in i t e m 7 ) ................. ...................
15. T r u s t d e p a r t m e n t e a r n i n g s (in c lu d e d in i t e m 4 )* ....
1.5
6 .0
*
1 .5
4 .3
3 .3
1.6
3 .6
1.5
1.9
3 .8
1 .9
1.8
3 .4
1.5
R A T IO S T O T O T A L D E P O S IT S :
16. T o t a l t i m e d e p o s i t s ____________ ______________________
17. T o t a l c a p i t a l a c c o u n t s _____ ________ __________________
3 3 .7
2 0 .9
4 1 .4
1 5 .6
4 3 .3
1 2 .9
4 6 .3
1 2 .2
R A T IO T O T O T A L T I M E D E P O S I T S :
18. I n t e r e s t o n t i m e a n d s a v in g s d e p o s it s ....... ....... ............ .
1.6
1 .6
1 .7
R A T I O S T O T O T A L C A P IT A L A C C O U N T S :
19. N e t e a r n i n g s f r o m c u r r e n t o p e r a t i o n s _______ _______
2 0 . N e t c h a rg e -o ffs (o r n e t r e c o v e r ie s [ + ] ) .........................
21.
N e t a d d i t i o n t o p r o f i t s ........................................................
2 2 . C a s h d iv i d e n d s d e c l a r e d ....... ...................... ....... ....................
2 3 . R e a l e s t a t e a s s e t s ...................... ...................................................
6 .9
0 .2
6 .7
2 .4
1 3 .4
8 .5
0 .8
7 .7
2 .2
1 7 .0
R A T IO T O L O A N S , S E C U R IT IE S , A N D R E A L E S TATE A SSET S:
2 4 . T o t a l c a p i t a l a c c o u n t s _____________________ __________
2 6 .4
R A T IO S T O T O T A L L O A N S :
2 5 . I n t e r e s t a n d d i s c o u n t o n l o a n s __________ ____________
2 6 . R e c o v e r ie s o n l o a n s ........... ............... ..................... ....................
2 7 . L o s s e s o n lo a n s _________ ______________________________
28.
N e t r e t u r n o n lo a n s ..............................................................
G r o u p s w ith a v e r a g e t o t a l d o l l a r d e p o s it s o f
(in th o u s a n d s )
U nder
11
777
3 4 .3
4 0 .7
7 .2
1 7 .8
3 0 .0
4 6 .6
3 .9
1 9 .5
5 0 .5
3 1 .3
7 .4
1 0 .8
1 0 0 .0
1 .0 0 0
1 0 0 .0
1 0 0 .0
3 0 .6
1 7 .3
2 6 .0
3 1 .9
1 5 .4
2 6 .4
3 0 .8
1 3 .6
2 6 .6
3 5 .7
1 0 .9
2 6 .2
2 9 .9
1 7 .6
2 4 .9
7 4 .7
7 3 .9
7 3 .7
7 1 .0
7 2 .8
7 2 .4
2 7 .6
4 .1
2 3 .5
2 5 .3
1.5
2 3 .8
2 6 .1
+ 6 .0
3 2 .1
2 6 .3
+ 4 .3
3 0 .6
2 9 .0
+ 0 .7
2 9 .7
2 7 .2
+ 8 .3
3 5 .5
2 7 .6
0 .5
2 7 .1
7 .0
8 .0
5 .5
7 .2
6 .8
9 .2
10.1
7 .6
1.8
4 .3
1 .6
2 .0
3 .1
3 .0
2 .2
4 .3
3 .5
2 .4
2 .6
4 .6
2 .0
2 .6
5 .3
1 .7
3 .2
6 .3
3 .0
3 .0
4 .6
1.3
4.1
1 5 .8
1 .8
3 .7
4 .0
4 4 .3
12.1
4 4 .3
11.7
5 1 .4
1 1 .2
4 2 .9
1 1 .0
4 1 .5
1 0 .3
4 4 .8
9 .5
3 8 .6
9 .5
3 1 .2
9 .2
2 0 .2
7 .5
4 3 .5
1 2 .4
1.6
1 .5
1 .5
1.3
• 1 .3
1.1
1.2
1.1
1.1
1.1
1.4
9 .6
2 .2
7 .4
2 .5
1 7 .3
9 .2
0 .6
8 .6
2 .3
2 2 .3
9 .2
0 .6
8 .6
2 .2
1 8 .9
9 .5
+ 0 .4
9 .9
2 .4
1 9 .5
9 .1
0 .1
9 .0
2 .2
2 2 .7
8 .5
1 .5
7 .0
2 .3
2 3 .0
9 .3
1.0
8 .3
1.7
2 7 .5
9.1
+ 1.6
1 0 .7
2.1
2 5 .8
8 .4
+ 0 .9
9 .3
1.9
2 3 .8
7 .7
0 .1
7 .6
2 .4
3 4 .9
7 .6
+ 0 .9
8 .5
2 .4
1 0 .9
9 .0
0 .6
8 .4
2 .2
2 0 .4
1 9 .2
1 6 .7
1 5 .7
1 6 .3
1 5 .5
1 4 .6
1 5 .0
1 4 .3
1 3 .1
1 3 .5
13.1
1 1 .1
1 6 .3
6 .6
0 .7
0 .3
7 .0
5 .9
0 .4
0 .4
5 .9
5 .7
0 .4
0 .5
5 .6
5 .5
0 .4
0 .4
5 .5
5 .5
0 .4
0 .6
5 .3
5 .5
0 .3
0 .4
5 .4
5 .2
0 .6
0 .6
5 .2
4 .7
0 .4
0 .7
4 .4
4 .7
0 .4
0 .5
4 .6
4 .9
0 .7
0 .7
4 .9
4 .5
0 .4
0 .4
4 .5
3 .9
0 .3
0 .4
3 .8
3 .2
0 .4
0 .4
3 .2
5 .4
0 .4
0 .5
5 .3
R A T IO S T O T O T A L S E C U R IT IE S :
2 9 . I n t e r e s t a n d d iv i d e n d s o n b o n d s , s to c k s , e t c .............
3 0 . R e c o v e r ie s o n s e c u r i tie s ________________ _____________
3 1 . P r o f i t s o n s e c u r i tie s s o l d ___________________ _________
3 2 . L o s s e s o n s e c u r i t i e s .......... ...................... ..................................
33.
N e t r e t u r n o n s e c u r i t i e s .....................................................
3 .3
0 .2
0 .8
0 .8
3 .5
3.1
0 .2
1.0
1.1
3 .2
3 .1
0 .4
1.1
1 .5
3.1
2 .9
0 .2
1 .0
0 .9
3 .2
3.1
0 .4
1 .2
1.1
3 .6
2 .8
0 .3
1.3
0 .9
3 .5
2 .9
0 .3
1.2
1.1
3 .3
2 .7
0 .2
1 .0
1.0
2 .9
2 .6
0 .3
1.1
0 .9
3 .1
2 .4
0 .2
1 .0
0 .7
2 .9
2 .3
0 .3
1 .5
1.0
3 .1
2.1
0 .2
0 .7
0 .6
2 .4
1.9
0 .1
0 .9
0 .7
2 .2
2 .9
0 .3
1.1
1.1
3 .2
R A T IO S T O T O T A L A S S E T S :
3 4 . L o a n s ...................................................... .............................................
3 5 . S e c u r i t i e s ........................ ................ ........................ .........................
3 6 . R e a l e s t a t e a s s e t s ..... ........................... ............ ...........................
3 7 . C a s h a s s e ts ........................ ................................... ................... —
3 8 . A ll o t h e r a s s e t s .................. ...........— ----- -------------- -----------
3 7 .8
2 7 .7
2 .2
3 2 .2
0.1
4 0 .9
2 7 .8
2 .2
2 9 .0
0 .1
3 8 .7
2 8 .5
1 .9
3 0 .8
0 .1
3 3 .7
3 3 .9
2 .3
3 0 .0
0 .1
3 1 .3
3 5 .2
2 .0
3 1 .4
0 .1
3 0 .8
3 4 .9
2 .0
3 2 .2
0 .1
2 7 .3
4 0 .3
2 .2
3 0 .0
0 .2
2 5 .3
39.1
2 .3
3 3 .2
0.1
2 6 .7
3 5 .7
2 .9
3 4 .4
0 .3
2 1 .3
4 4 .7
2 .4
3 1 .4
0 .2
2 3 .4
3 9 .4
2 .1
3 4 .7
0 .4
19.9
4 1 .7
2 .8
3 5 .3
0 .3
17.1
4 4 .6
0 .8
3 7 .0
0 .5
3 2 .0
3 4 .4
2 .2
3 1 .3
0 .1
T o t a l a s s e t s ................. .............................................................
1 0 0 .0
1 0 0 .0
1 0 0 .0
1 0 0 .0
1 0 0 .0
1 0 0 .0
1 0 0 .0
1 0 0 .0
1 0 0 .0
1 0 0 .0
1 0 0 .0
1 0 0 .0
1 0 0 .0
1 0 0 .0
3 9 . T o t a l e a r n i n g s f r o m c u r r e n t o p e r a t i o n s ...... ...................
4 0 . N e t e a r n i n g s f r o m c u r r e n t o p e r a t i o n s .................... ........
3 .8
1.1
3 .8
1.1
3 .7
1.1
3 .4
1 .0
3 .3
1 .0
3 .2
0 .9
3 .2
0 .9
2 .8
0 .8
3 .0
0 .8
3 .0
0 .8
2 .6
0 .7
2 .2
0 .7
1.9
0 .5
3 .3
0 .9
T o t a l e a r n i n g s f r o m c u r r e n t o p e r a t i o n s _________
D is p o s itio n o f E a r n in g s
5. S a la r ie s a n d w a g e s ................... ...................................................
6. I n t e r e s t o n t i m e a n d s a v in g s d e p o s it s ....... ....... .............
7. A ll o t h e r e x p e n s e s _____ _____ ___ _______________ _____
8.
T o t a l c u r r e n t e x p e n s e s ......... ....................................... —
9
All
B anks
* A v e ra g e co v e rs o n ly th o s e b a n k s h a v in g t r u s t d e p a rt m e n t s if m o r e t h a n th r e e b a n k s in g r o u p . A s s e ts a n d lia b ility ite m s a r e a v e ra g e s o f a m o u n ts
s h o w n o n a ll r e p o r t s o f c o n d itio n d u r in g th e c a le n d a r y e a r. E a r n in g s a n d e x p e n s e ite m s a r e t h e s u m o f th e tw o s e m i- a n n u a l r e p o r t s o f e a r n in g s a n d d iv i
d e n d s. P e r c e n ta g e s w e re c o m p u te d f o r a c h b a n k , a n d th e p e r c e n ta g e s f o r a ll b a n k s in e a c h s iz e -g ro u p w e r e th e n a v e ra g e d .
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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
Can a Bank
CoHßCt
On S tolen N otes ?
K idder k ep t at his hom e several
negotiable pro m isso ry notes he h ad
received in business tran sactio n s.
T hese w ere stolen from him an d w ere
negotiated. A bank, in good fa ith and
for value, obtained th e notes from
one of its custom ers w ho, also, had
obtained th em in good fa ith an d for
value. T he b an k pro cu red th e notes
before th e y cam e due and, w h en th e ir
due dates arrived, asked th e m ak ers
for paym ent. P ay m en t w as resisted
on th e th e o ry th a t a valid delivery had
n o t occurred. Should th e b an k p re
vail?
Yes. U nd er the N egotiab le In stru
m en ts Act it is con clu siv ely presum ed
th a t a valid d elivery w as made w ith
each n egotiation even though no actual
d elivery occurred at the tim e of the
theft. The bank, b ein g a h older in
due course, is en titled to the benefit
of th is presum ption and should, th ere
fore, prevail.
D en niston w as one of th e tru ste e s
and one of th e beneficiaries of a large
tru s t estate created by his au n t. H e
failed in som e of his duties as a
tru ste e and th e estate suffered losses
by reaso n thereof. D enniston w as, of
course, liable to th e estate for these
losses. W as his sh are in th e estate
as a beneficiary subject to a charge
for th ese losses in th e ev en t he did not
otherw ise m ake th em good?
Yes. W h ile a few excep tion s to the
application of the rule h ave been
made, th e p rinciple is gen erally ac
cepted th at w here a beneficiary of a
tru st is also a tru stee thereof, his
beneficial share is su bject to any
charge in resp ect of h is liab ility as
such fiduciary to th e other benefi
ciaries. T h is gen erally accepted prin
ciple controls here and D en n iston ’s
share of the estate as a beneficiary m ay
be charged w ith the loss caused by
him .
Joh nston, a bachelor b a n k e r w ho
h ad no n e a r relatives, died leaving a
w ill in w hich he beq u eath ed all of
his p ro p e rty to S m ackelberger, a
friend. T he w ill w as executed by
Jo h n sto n ab o u t five y ears before he
died. A bout te n y ears before th a t
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Federal Reserve Bank of St. Louis
These and Other Timely Legal
Questions Are Answered
By the
LEGAL DEPARTM ENT
tim e, how ever, he h ad signed a w ill
leaving all of his p ro p erty to W alker.
The w ill leaving th e p ro p erty to
Sm ackelberger did not contain a
clause cancelling all form er wills. W as
it, because of this, ineffective?
No. The ex ecu tio n of a w ill d is
p osing of the entire estate of a testa
tor in a m anner ab solu tely in co n sisten t
w ith th e p rovisions of an earlier w ill
revokes by im plication the earlier w ill,
though the w ill later in tim e con tains
no w ords of revocation, and no m en
tion of an earlier w ill.
B aker died leaving a sub stan tial
estate. In his w ill he appointed G ray
th e executor thereof.
G ray owed
B ak er $2,000 a t th e tim e of B aker’s
death. G ray’s fee for acting as execu
to r of B ak er’s estate am ounted to
$2,000. Can G ray be req u ired to tu rn
th e $2,000 to w hich he w as en titled
to th e estate in satisfaction of his in
debtedness to it?
Y es, according to the m ajority of the
cases on the m atter. T h ese cases take
th e v ie w th at an execu tor or adm in
istrator m ay he required to apply any
fees received by them as such tow ard
the p aym ent of any in d ivid u al in debt
ed n ess of them to the decedent.
The S egoosive Corporation borrow ed
$5,000 from a bank, giving it a nego
tiable prom issory note payable in 90
days. T he note w as duly indorsed
by Joe Segoosive, a d irector of th e
com pany. T he note w as n ot paid
w h en due. W as it necessary th a t th e
b a n k give Joe Segoosive notice of th e
n o n p ay m en t of th e p ap er to hold him
on h is indorsem ent?
Y es. A s a g en era l rule, th e m ere
fact th a t an in dorser of corporate
paper is an officer, director, or stock
holder of the corporation does n ot d is
pense w ith the n ecessity of g iv in g him
notice of nonp aym ent of the paper on
its m atu rity in order to hold him liable
thereon.
An Iow a banker w as appointed
guardian of an incom petent 95 y e a r old
m an. T he incom petent ow ned a farm
and lived th e re w ith a te n a n t w ho w as
indebted to him on a p ro m issory note
due in five years. T he co urt having
ju risd ictio n over th e old m a n ’s estate
ordered th e b an k er-guardian to a r
ran g e for his support, w hich he did
in th a t he h ad th e te n a n t tak e care
of him for certain stip u lated cash
sum s payable m onthly. T he a rra n g e
m ents th u s m ade w ere a p p aren tly
quite satisfactory u n til th e w ard died
about th ree y ears after th e ap p o in t
m en t of th e guardian. At th a t tim e
some of his heirs questioned th e p ay
m ents to th e te n a n t for his upkeep,
claim ing such p ay m en ts should have
been m ade as credits on th e p rom is
sory note. W ere th ese h eirs correct?
No. It w as the guardian’s d uty to
act as a reasonably p ru dent m an in
the h an d lin g of h is Avard’s affairs and
in seein g that the w ard w as properly
taken care of. It is quite ob vious that
he so acted here, for the note did
not com e due during the tim e he w as
guardian and there w as therefore no
reason to m ake the support p aym ents
credits thereon.
B la ck w ell borrow ed five h u n d red
dollars from Jones in M innesota and,
as p a rt of th e tran sactio n , gave Jones
a note signed in b lan k w ith th e u n d e r
standing th a t Jones w ould fill in th e
b lanks pro p erly and in accordance
w ith th e term s of th e ag reem ent of
th e parties. In stead of so filling in
th e blanks, Jones filled th em in so
th a t a usu rio u s loan w as created.
Blackw ell refused to pay. Jones sued.
Could Blackw ell, a t th e trial, testify
reg ard in g th e verbal ag reem ent w hen
it w as obviously a t a variance to th e
term s of th e w ritte n note?
l res. The rule th a t oral testim o n y
is in adm issible to contradict a w ritten
in stru m en t ev id en cin g a tran saction is
not applicable in a su it in v o lv in g a
(T u rn to page 26, please)
21
Farmers to Continue O n
Big End of Government Benefits
In Washington
ABOR, in and out of th e new s for
som e tim e, m oved directly into th e
sp o tlig h t as th e H ouse C om m ittee
in v estig atin g th e N ational L abor Re
latio n s B oard proposed abolition of th e
p re se n t board an d su b stitu tio n of an
“a d m in istra to r” to p rosecute an d a bi
p a rtisa n three-m an board to h e a r and
ju d g e cases.
L
D enounced by m in o rity m em bers of
th e com m ittee as “em ascu lato ry ,” th e
proposed am en d m en ts w ould also p ro
vide th a t th e board n o t be p e rm itte d to
o rd er re in sta te m e n t of em ployes w ho
are g u ilty of w illful violence, d e stru c
tion, or p articip atio n in sit-dow n
strik es; th a t em ployers be p rotected
ag ain st th e n ecessity of p ay m en t of
m ore th a n six m o n th s’ back pay; th a t
th e board be b ound to decide a case
on th e “p rep o n d eran ce” of evidence;
th a t free expression of opinion (b ar
rin g in tim id atio n ) be allow ed em ploy
ers n o t be re q u ire d to deal w ith any
u n io n involved in an inter-union dis
p u te if he stip u lates his in te n tio n to
b arg ain w ith th e w in n in g union; and
th a t th e board be rem oved from th e
crossfire of riv al u nion disputes.
Reps. A rth u r H ealy (D., Mass.) and
Abe M urdock (D., U tah) in th e m in
o rity re p o rt said th e proposed am end
m en ts “th re a te n th e principles, p u r
poses and objectives” of th e AVagner
Act.
“AVhile th is act m ay not be perfect,
w e should be m ost cautious in ad o p t
in g an y am en d m en ts w hich m ay have
th e ten d en cy of im p airin g th e rig h ts
g u a ra n te e d u n d e r th is act,” th e m in
o rity said. “AVe cannot acquiesce in
am en d m en ts w hich, u n d e r th e guise
of im p rovem ents, propose to sacrifice
v ital rig h ts of labor g u a ran teed u n d er
th is act. AVe w ill continue to striv e to
a sc e rta in an d recom m end genuine im
p ro v em en ts in th e act or its adm in is
tra tio n .”
O pponents of th e am en d m en ts are
expected to delay action as m uch as
possible b u t a final com prom ise seem s
inevitable. P re sid e n t R oosevelt has
n o t a t th is w ritin g m ade his position
know n b u t S enator R obert F. AVagner,
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Federal Reserve Bank of St. Louis
By Paul F. Lavezzo
W ashington Correspondent
The N o r t h w e s t e r n B a n k e r
(D., N. Y.) sponsor of th e act, w hile
opposing th e proposed changes said
he is “still ready to su p p o rt am end
m ents proposed by o thers if th ey ap
p ear to me sound a t th is tim e.”
H e agreed th a t defects in adm inis
tra tio n should be corrected b u t op
posed abolition of th e board and cre
atio n of a new board plus a $10,000 a
y e a r ad m in istrato r.
“I am convinced these am endm ents,
w h atev er th e ir in ten t, w ould seriously
o b stru ct and im pair collective b arg ain
ing th ro u g h freely chosen representa-
tives,” he continued. “T hey w ould
tu rn back th e clock and resto re labor
and in d u stry to th e role of trad itio n al
an tag o n ists w ith no recourse b u t to
b attle.”
To date th e labor board has draw n
attack s n ot only from em ployers b u t
also from em ployes for w hose benefit
it w as intended. A nd m an y people
feel th a t th e AVagner A ct has suc
ceeded in providing som ething less
th a n a friendly atm osphere in w hich
in d u stry and labor can w ork to g eth er
to th e ir m u tu al advantage. T he U nited
States C ham ber of Commerce called
for “prom pt, vigorous and sustained
su p p o rt” of th e am endm ents w hile th e
CIO denounced them as designed to
“destroy the basic rig h ts of labor.”
The H atch Bid
In deciding th e fate of th e labor
questions as w ell as m any o th er is
sues before th e p resen t Congress, pol
itics, w hich reared its ugly head in the
recen t Senate debate of H atch Act
am endm ents, can be expected to play
a large part. The H atch Act, passed
last y ear forbidding F ed eral em ployes
to engage in political activity, came up
in th e Senate to be extended to State
w o rk ers paid p a rtly or en tirely w ith
F ed eral funds. B ut th e act nearly lost
its backbone as Senators killed by a
vote of only 41 to 44 an am endm ent
to p erm it F ed eral em ployes to engage
in political activities and m erely con
tin u e th e b an ag ain st m isuse of offi
cial au th o rity . The bill came th ro u g h
th e b attle alive and extended to state
em ployes b u t first succeeded in sp lit
tin g th e D em ocratic p a rty wide open.
New attem p ts to w eaken th e m easure
m ay app ear w hen it comes up in th e
House.
T he Logan-AValter bill, passed by
unanim ous consent in th e Senate last
y ear b u t later reconsidered and re
tu rn e d to th e calander upon com plaint
of New D ealers seem s to be gath erin g
new support. Rep. Jessie Sum ner,
(R., 111.) declared passage of th e bill,
w hich w ould curb th e quasi-judicial
actions of adm in istrativ e agencies, is
necessary to set p riv ate in d u stry free
from F ed eral bureaucracy.
22
SULPHUR AND
— M O LA SSES
A n old re m e d y b u t so m eh o w it a c
c o m p lish e d th e p u rp o s e of g iv in g us
a n e w outlo o k w ith th e re a liz a tio n
th a t S p rin g w a s th e re .
S p rin g is a tim e of h o u se c le a n in g
a
n d office re n o v a tio n . It's a tim e for
&
s ta rtin g n e w g a r d e n s th a t so o n
a b o u n d w ith lu scio u s ta s te te a s e rs .
«
It's a sw e ll tim e to g e t s ta r te d rig h t
w ith a W e s te rn M u tu a l c o n tra c t,
a n d offer y o u r c lie n ts a fine se rv ic e
th a t's a ttra c tiv e ly differen t.
a ctio n .
Y our h a rv e s t w ill b e d o u b ly p ro fit
a b le b e c a u s e of o u r lib e ra l co m m is
sion s c h e d u le . S p rin g is a tim e for
W rite for o u r p la n s to d a y .
F i r e - - - W i n d storm
A u t o m o b i l e —-T r u c k
P la te G l a s s a n d A l l i e d L i n e s
"S a fe ty and Service with S a v in g s"
W ESTERN MUTUAL
FIRE INSURANCE
c€ x jm p c in u
D E S M O IN E S ,IO W A
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
A pril 1940
J
“I expect to su p p o rt and vote for
th e Logan-W alter bill,” said Rep. Sum
ner. “I agree w ith the statem en t re
cently issued by Senator Carl A. H atch
of New Mexico, th a t ‘th e principles
incorporated in th is bill cannot be de
nied by any firm believer in our dem o
cratic principles of g o v ern m en t’ and
th a t ‘the A m erican people should be
inform ed fully in relation to th is im
p o rta n t subject.’ ”
O pponents of the m easure include
Brookings In stitu tio n experts, heads of
m ost F ederal agencies, liberal groups
in Congress and A dm inistration lead
ers. Senator Sherm an M inton (D.,
Ind.) argued th a t th ere is no reason
to ru sh this bill before th e A ttorney
G eneral’s Com m ittee on A d m in istra
tive P rocedure has com pleted its
study. The Brookings re p o rt held th a t
in allow ing courts to review rules and
regulations the m easure disregards
th e
co n stitutional
separation
of
powers.
Increase For Farmers
Increases by th e Senate A p propria
tions Com m ittee in the farm bill have
sta rte d talk again of new taxes and
w ays to avoid them . The larg est item
added to the m easure w as $12,000,000
for “p a rity p ay m en ts”. Both Demo
crats and R epublicans predicted pass
age of the bill and approval by th e
House. Rep. Clifton W oodrum , (D.,
Va.) a leader of the H ouse anti-spend
ing bloc v irtu ally conceded th e econo
m y drive is w ashed up.
“The House is a v ery tem p eram en tal
body,” he said, “and if th e b an d
w agon sta rts rollings by, a lot of
people are going to jum p on it.”
Senior H ouse M inority leader Jo h n
Taber, (N.Y.) how ever, said he does
n ’t believe the House w ill su p p o rt th e
p a rity paym ents.
Taxes cam e up for discussion re
cently at a conference betw een th e
P resid en t and Congressional leaders
b ut no decision w as made. Senators
B urton K. W heeler (D., Mont.) and
Alva B. Adams (D. Col.) called on the
T reasu ry to use its billion dollar
“w orking balance” to avoid new taxes.
A bill to revam p th e farm loan sys
tem , cu ttin g in te re st to farm ers, is be
ing sponsored by C hairm an M arvin
Jones (D., Tex.) of th e H ouse A gricul
tu re Com m ittee and Senators B u rt
W heeler, Jo h n M. B ankhead (D., Ala.)
and R obert M. L aF ollette, jr. (Prog.,
W is.). The m easure w ould p u t a flat 3
p er cent charge on farm real estate
loans. F arm ers now pay 3% per cent
on land bank loans and 4 per cent on
land b ank com m issioner loans. The
au th o rs of th e bill claim th a t land
banks can be m ade self su p p o rtin g by
a G overnm ent g u aran tee of th e ir fu
tu re bond issues, m aking low er inter(T u rn to page 48, please)
T
Hail
DOCS Damage
Crops In Iowa
By C . P. Rutledge
P re sid e n t
Fa rm e rs M u t u a l H a il A s s o c i a t i o n of Io w a , D e s M o i n e s
C. P. R U T L E D G E
M
w here the loss has exceeded $500,000
in a single year. An average of
about 35 per cent of all tow nships to
have crops dam aged each year, w ith
one tow nship in K eokuk county
know n to have suffered loss of over
$300,000 in one crop season. Do you
realize th a t in one season in Iowa,
crops w ere dam aged to th e ex ten t of
$8,000,000, w ith a yearly average for
th e seventeen y ears of betw een $3,500,000 to $4,000,000? The seven y ears
betw een 1923 and 1930 show a yearly
average of m ore th a n $4,500,000. Most
of these storm s occurred in a v ery
sh o rt period of tim e, th a t is, from the
la tte r p a rt of May to th e m iddle of
Septem ber, w ith Ju ly and A ugust
show ing th e larg er portion of dam
age. In a ten day period in A ugust,
1928, about 20,000, or one out of ten
farm ers had crops dam aged by hail
in th e state of Iow a alone. These are
only a few of th e su rp risin g figures
th a t could be given to you.
OST people in Iow a have v ery
little, if any, know ledge of th e
am o u n t of dam age done by
hail in Iowa. You often h e a r th e re
m ark th a t it does not hail in Iowa.
T his lack of know ledge of hail storm s
is no doubt due to th e fact th a t a numm er of storm s are n a rro w in scope and
people living a few m iles aw ay m ight
easily be u n aw are of th em u nless th ey
should drive th ro u g h th e p a rtic u la r
areas. Some storm s have been know n
to have done a g re a t dam age over sev
The w rite r has been trav elin g this
eral counties am o u n tin g to m illions of and several of th e su rro u n d in g states
dollars, yet, u n til th e last few years, for tw enty-seven y ears ad ju stin g hail
little if a n y th in g has ever been w rit losses, and has seen and know n of
te n about them .
m any single storm s w hich have done
T he assessors in Iow a are req u ired an unbelievable am o u n t of damage. I
to ask each fa rm e r on about 210,000 can rem em ber one y e a r in w hich a
farm s as to th e am o u n t of dam age to storm sta rte d at th e M issouri riv e r and
crops on his farm th e preceding crop trav eled so u th east th ro u g h P o tta w a t
season. T he w e a th e r b u reau has ta k tam ie, M ontgom ery and Adam s coun
en th e figure th u s obtained an d com ties, doing over $1,000,000 of damage.
piled th em so th a t th e re su lts w ould T h a t sam e year, on th e 18th of A u
be know n, and th ese figures are a gust, a n o th er storm sw ept th e coun
g re a t su rp rise to m ost people not in ties of Pow eshiek, Iowa, K eokuk,
th e h ail in su ran ce business.
W ashington, H en ry and Des Moines,
Over a period since 1923 these doing upw ards of $2,500,000 of dam age
figures have been tabulated. D uring to crops alone. I w as caught in about
th is tim e th e re has n o t been a county th e m iddle of th is storm and know
in th e sta te b u t has been visited by th a t several head of livestock and
hail a t least several of th ese years, th o u sands of chickens w ere killed,
w ith a y early average of ab o u t n in ety roofs w ere b eaten off buildings, siding
counties re p o rtin g dam age to crops. split, and trees strip p ed of b ark and
T he g re a te st dam age done in a single leaves. T his w as only one storm .
co u n ty for any one y e a r w as $1,076,000, Storm s occur every y ear—m aybe not
an d th e re have been several counties covering as m uch te rrito ry , b u t doing
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
ju st as m uch dam age in th e areas cov
ered. Of course, these w ere th e m ost
severe storm s, b u t w hen you realize
th a t th ere have been hu n d red s of
lig h ter storm s doing th e ir share of
th e dam age so th a t in any given five
y ear period, not a county, and very
few tow nships, have escaped this type
of crop dam age. I w ould say th a t
hail does dam age crops, and th a t it
does hail in Iowa.
Effects of Smoking
On Your Health
A pproxim ately fifty per cent of hos
p ital m a te rn ity cases sm oke now adays,
com pared w ith one young m o th er out
of five w ho sm oked 15 y ears ago and
practically none 25 y ears ago. T ests
have indicated th a t th ere is little or no
danger of nicotine reaching th e in fan t
th ro u g h th e m o th e r’s m ilk if she
sm okes less th a n half a dozen cigarets a day; tests m ade w ith heavy sm ok
ers show definite nicotine content in
th e m ilk, according to a study of to
bacco and h ealth by N o rth w estern N a
tional Life Insu ran ce Company.
Smoke slow ly—do not inhale—th ro w
aw ay th e last one-third of your cigaret
or cigar, if you w ish to enjoy tobacco
w ith little or no effect on your health,
th e b u lletin advises, w hile noting th a t
you probably w on’t obey th is advice,
especially if you are one of th e heavy
sm okers w ho need it most.
You get as m uch as 66 p er cent m ore
nicotine from the last th ird of y o u r
cigaret or cigar if you sm oke rapidly,
th e stu d y finds, because of th e in
crease in m oisture content, th e sh o rter
filtering, and th e previous accum ula
tion of chem icals from th e o u ter twothirds. L ittle h eat reaches y o u r m outh
if you sm oke slow ly and th ro w aw ay
th a t last th ird ; b u t if you puff aw ay
like a sw itch engine and b u rn th e
w hole fag rig h t down to th e cork tip,
th e h eat m ay reach 140 degrees; a
24
cigar stu b m ay g en erate up to 190 de
grees (212 is boiling). Such h e a t is
m ore in ju rio u s to th e tongue, m o u th
and lips th a n th e chem icals in th e
smoke, according to th e study, w hich
sum m arizes th e re su lts of recen t
A m erican and E u ro p ean m edical ob
servations.
E v en th o u g h you have h igh blood
pressu re, p erh ap s you don’t need to
give u p sm oking, th o u g h in th e p ast
high blood p re ssu re p a tie n ts have g en
erally been forbidden to use tobacco.
L a te r te sts hav e show n th a t w hile
sm oking in creases som e in d iv id u als’
blood p ressu re, it actu ally low ers
o th e rs ’. T herefore, th e b u lletin ad
vises, if you have h igh blood p ressu re
an d love to sm oke, have a physician
tak e y o u r blood p ressu re w h en you
have n o t sm oked for a t least tw o
hours, and th e n have him ta k e it again
w hile you sm oke a cigaret or cigar, to
determ in e w h e th e r you are th e type
w hose blood p ressu re clim bs or falls
u n d e r th e influence of nicotine. If it
goes down, m oderate sm oking should
not agg rav ate th is trouble.
B ut if you have a stom ach u lcer—
no smoking! In carefu l clinical tests
of groups of p atien ts, th e sm oking of
one cig aret h as caused a p ro m p t in
crease of as h ig h as 60 p e r cent in free
acid and of 35 p e r cen t in to tal acid
co n ten t of th e digestive fluids of th e
p atien ts, th e stu d y finds.
If y o u r hands and feet are h ab it
u ally cold, sm oking w ill m ake them
colder, th e stu d y declares. T hough
th e re is m uch dispute am ong m edical
a u th o rities about some of th e effects
of tobacco, th ere is u n iv ersal agree
m e n t th a t it slows dow n th e blood flow
to th e hands and feet.
W ith th e enorm ous increase in
sm oking by both sexes in th e last few
years, in surance m edical directors are
alread y consulting inform ally, w ith a
view to finding some stan d ard by
w hich excessive sm okers can be rated,
according to th e report. At th e last
In te rn a tio n a l Congress of In su ran ce
M edical D irectors, a t P aris, th ree of
th e p apers delivered w ere on th e ef
fects of tobacco.
T he heavy sm oker in v ariab ly in
hales, and generally sm okes rapidly,
th u s raisin g his absorption of th e nico
tin e and o th er chem icals in th e sm oke
to th e m axim um , th e re p o rt says.
W hile th e re is little v ariatio n in m or
ta lity ratio s betw een m oderate sm ok
ers an d non-sm okers, exhaustive rec
ords k ep t a t Jo h n s H opkins U niversity
of several th o u san d otherw ise norm al,
average subjects have show n th a t
heav y sm okers suffer approxim ately
double th e death ra te of non-sm okers,
C o n d en sed F in a n c ia l S ta t e m e n t o f
C
e n
t r a
l
S
u
r e t y
A NtrTN.SU RA N C E
C’OPlPO qATIO N_
L ic e n se d in
A ll States
R . E . M cG in n is, P r e s id e n t
H o m e O ffic e
K a n s a s C it y , M o .
Q u a lifie d w ith
U. S. T re a su ry
D e p a rt m e n t
As C ertified to th e M is s o u ri In su ra n c e D e p a rtm e n t as a t D e c e m b e r 31, 1939
A D M IT T E D
ASSETS
C a s h ........................................................................................................................................ ..
B o n d s:
U . S. G o v e rn m e n t ( D i r e c t or G u a r a n t e e d ) ......................
$2 ,2 4 7 ,3 7 0 .2 6
S t a t e a n d M u n i c i p a l ...................................
2 ,7 0 3 ,4 2 1 .0 9
R a ilr o a d .........................................................................................
6 4 .4 7 0 .3 1
5 ,0 1 5 ,2 6 1 .6 6
T o ta l C a s h a n d B o n d s .................................................................................................... $ 6 , 1 6 8 . 7 4 9 . 2 0
C e n tra l S u r e t y F ir e C o rp o ra t io n S t o c k ..................................................................................
5 2 1 ,5 5 2 .9 1
R e a l E s t a t e ............................................................................................................................
1 5 8 ,1 9 4 .4 8
M o rt g a g e L o a n s on R e a l E s t a t e ( F i r s t L i e n s ) .......................................................................
1 1 4 ,2 9 1 .6 5
P r e m iu m s in C o u rse o f C o lle c tio n ( U n d e r 9 0 D a y s ) ............................................................
7 1 9 ,4 6 1 .4 1
A c c ru e d In te re st on In v e s t m e n t s .............................................................................................
4 5 ,8 9 7 28
O t h e r A d m it t e d A s s e t s .......................................................................................................... .......... 1 3 , 4 2 3 . 0 8
TOTAL
A D M IT T E D
A S S E T S ........................................................................... $ 7 , 7 4 1 5 7 0 . 0 1
L IA B IL IT IE S
R e se rve fo r C l a i m s ..................................................................................... $ 2 , 2 9 2 , 2 5 3 . 1 1
R e se rve for U n e a rn e d P r e m i u m s .....................................................
1 ,8 8 4 ,7 8 0 .6 0
T o t a l C la im a n d P r e m iu m R e s e r v e s ................................................................................ $ 4 , 1 7 7 , 0 3 3 . 7 1
R e se rve fo r C o m m iss io n s, T a x e s a n d O t h e r L ia b i l i t ie s ..........................................................
V o lu n t a r y C o n t in g e n c y R e s e r v e ...............................................................................................
f c n ’n n n 'n n
T o ta l Re se rves ............................................................................................................... $ 4 , 7 7 5 , 7 8 9 . 8 0
C a p ita l ..............................................................
.$ 1 ,0 0 0 ,0 0 0 .0 0
S u r p l u s ............................................................................................. 1 , 9 6 5 , 7 8 0 . 2 1
S u r p lu s t o P o l ic y h o ld e r s ..............................................................
$ 2 ,9 6 5 ,7 8 0 .2 1
T O T A L L I A B I L I T I E S ......................................................................................... $ 7 , 7 4 1 , 5 7 0 . 0 1
Securities carried a t $630,554.80 in th e above statem e n t are deposited fo r purposes required by law.
Ronds are carried on am ortized basis. M arket value of bonds exceeded th e ir book value a t D ecem ber 31,
1939, by $216,216.75. No bonds were in d efau lt either as to in terest o r principal a t Decem ber 3 1 , 1939.
M arket value of invested assets of C entral S urety F ire C orporation exceeded th e ir book value a t Decem
ber 31, 1939, by $34,215.24.
N orthwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
A pril 1940
in th e age b rackets betw een 30 an d 50,
th e stu d y states.
T here is little evidence to show th a t
th e use of tobacco actually s ta rts an y
diseases, th e re p o rt says. In th e case
of certain already existing ailm ents,
how ever, p articu larly h e a rt - a rte ria l
diseases, gastric ulcers, and bro n ch ial
affections, it should be forbidden th e
p a tien t as a serious handicap to recov
ery, and w here th e re is any pre-dispo
sition tow ards cancer, prevailing m edi
cal opinion blam es excessive use of
tobacco in m any cases of cancer of th e
lips and tongue, th e rep o rt states.
The nervous, ‘ju m p y ” type, w hose
h e a rt beats faster a t th e slig h test ex
citem ent or stim ulation, w ill often
have a “run-up” in pulse ra te to as
high as 90 in one cigaret, th e study
states. T his type also should n ot
smoke, th e rep o rt advises, b u t pessi
m istically adds th a t th is is exactly th e
tem p eram en t w hich fills th e ra n k s of
chain sm okers.
Lending Survey Repeated
R esum ption of its b an k lending ac
tiv ity stu d y by m eans of a question
naire sen t to banks th ro u g h o u t th e
co u n try asking them to re p o rt th e
n um ber and dollar volum e of loans
m ade d u ring th e second half of 1939,
has been announced by R obert M.
H anes, p resid en t of th e A m erican
B ankers Association.
The questionnaire asks th e ban k s to
rep o rt th e n u m ber of new loans made,
th e n um ber of loans renew ed, the
nu m b er of new m ortgage loans m ade
and th e total dollar volum e u n d er each
heading betw een Ju ly 1 and Decem
b er 31, 1939. It also asks th em to re
p o rt th e am ount of open lines of credit
extended and th e am ount actually
used by borrow ers.
In response to a sim ilar question
naire for th e first six m onths of last
year, 6,078 com m ercial ban k s re p re
sen tin g 41.5 p er cent of th e co u n try ’s
ban k s rep o rted th a t th e y m ade 5,921,478 new loans totalin g $10,517,976,365,
and renew ed 5,688,255 loans totalin g
$7,635,558,270 betw een Ja n u a ry 1 and
Ju n e 30; also th a t only 26.9 p er cent of
th e open lines of credit on th e books
of ban k s w as used by business.
T h ro u g h th e c u rre n t q u estio n n aire
th e A ssociation expects to com plete
th e b an k lending activ ity p ictu re for
1939.
Ready! G o!
T raveler: “P o rter, w h y is th e engi
n eer blow ing those long d raw n out
blasts of th e w histle?”
P o rte r George: “Gues d a t’s th e
s ta rtin ’ w histle fo’ de race to de cros
sin ’, suh.”
25
W hat
Automobile Insurance
M eans
to the General Public
in su ran ce is not
new . A nd y e t it is n o t v ery
old. T here are active in s u r
ance ag en ts today in Iow a w ho w ere
in b u siness w h en it w as unlaw fu l to
w rite an autom obile liability in s u r
ance policy in Iowa.
In less th a n fo rty y ears th e au to
m obile in su ran ce b u siness has grow n
from n o th in g in to a m ajo r in d u stry
th a t touches all of o u r lives in a n u m
b e r of w ays. If you are an ag en t or
hom e office in su ran ce com pany em
ploye, autom obile in su ran ce m ay p ro
vide th e m ajo r p a rt of y o u r incom e
an d it is p erfectly evident to you th a t
you have a stak e in autom obile in s u r
ance.
If you are a b a n k e r or if you deal
w ith credit, autom obile in su ran ce is
im p o rta n t to you, too. A big claim or
ju d g m en t arisin g out of an autom o
bile accident m ay com pletely change
th e cred it p ictu re of an y one of y o u r
custom ers. You know in Iow a th e
resp o n sib ility for th e operatio n of an
autom obile re sts not only u pon th e
d riv e r of th e vehicle, b u t it ru n s also
to th e ow ner and th e p erson or firm
for w hom th e vehicle is being oper
ated. I t n o t only can h ap p en b u t it
has h appened to solvent individuals
or firm s w ho o v ern ig h t becam e bad
cred it risk s due to autom obile acci
d en ts w h ere th e re w as no in su ran ce
o r w here th e in su ran ce coverage w as
im p ro p erly w ritte n . T he sam e th in k
ing th a t causes m ortgagees to req u ire
fire and w in d sto rm in su ran ce on m o rt
gaged p ro p e rty should lead all b anks
an d o th er cred it agencies to p ro tect
them selves an d th e ir b o rro w ers w ith
ad eq u ate autom obile liab ility and
p ro p e rty dam age coverage.
If you are n o t engaged in th e b a n k
ing or in su ran ce b u siness b u t are
sim ply an o rd in a ry citizen w ho oper
ates an autom obile, w h a t is y o u r stake
in autom obile insurance? F irst, of
course, is th e w ell-know n fact th a t all
of y o u r earn in g s, past, p re se n t and
fu tu re, m ig h t be jeopardized by a sin
gle autom obile accident. A lthough
th is fact is w ell-know n, it is a p p a re n t
ly w idely ignored because less th a n
h alf th e autom obiles in Iow a are in
su red fo r public liability and p ro p e r
ty dam age. A n even g re a te r risk
w hich th e u n in su re d autom obile own-
A
u t o m o b il e
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
By George Olmsted
V ice Pre si de nt
H a w k e ye C asu alty C o m p a n y
De s M o i n e s
er carries is th e danger of losing his
d riv e r’s license and th e rig h t to op
erate his car.
We had a v ery sad case in th e office
recently. A sm all business m an had
an accident w ith his car. He felt he
w as not to blam e b u t the ju ry rendered
G EO RGE O LM STED
a $700 ju d g m en t ag ain st him , w hich he
couldn’t pay. The financial responsi
b ility law in Iow a says th a t you lose
y o u r d riv e r’s license if you have an
unsatisfied ju d g m en t arisin g out of the
o peration of y o u r autom obile. The
o peration of his autom obile w as neces
sa ry in th e business of th is individual.
H e has no grow n children and his wife
cannot drive th e car. He, personally,
an d his business are ruined, all for the
failure on his p a rt to c a rry insurance
on his autom obile. Over half th e au
tom obile ow ners in Iow a are tak in g
th is sam e risk every day.
W ith autom obile rates as low as th ey
are and autom obile insurance com
panies generally as sound and fair in
th e ir dealings, w hy is it th a t less th a n
half of th e autom obile ow ners buy pub
lic liability and p ro p erty dam age in su r
ance? T h at is th e question autom obile
in surance people are constantly asking
them selves. Surely anyone w ho can
own and operate an autom obile can
afford to buy insurance. P erh ap s in
surance agents and com panies are not
aggressive e n o u g h m erchandisers.
P erh ap s in stallm en t p aym ent plans
have not been sufficiently advertised.
In any event, th is is th e m ost challeng
ing question in th e autom obile in su r
ance field today.
It w ould be im proper to close this
discussion w ith o u t pointing out th e
stake th a t th e general public has in
autom obile insurance. F irst, you as a
m em ber of th e general public have a
rig h t to req u ire th a t every citizen
g ran ted th e privilege of o perating a
m otor vehicle should be responsible
for his deeds and m isdeeds. T he lives
of y ourself and y o u r fam ily and your
p ro p erty are co n stantly subjected to
th e danger th a t som eone else’s im
pro p er operation of a m otor vehicle
w ill cause you loss. Safety education
cam paigns an d stric t enforcem ent of
th e traffic law s are good as far as they
go, b u t w hen th e dam age is done the
responsible p a rty should be m ade to
pay and should be able to do so. It is
in th e public in te re st th a t th e financial
responsibility law be strictly enforced.
The general public has an o th er
stake in th e autom obile in su ran ce busi
ness. The general public m akes up th e
ju ries th a t listen to evidence and aw ard
verdicts. Too often th e tendency is
to base th e verdict, not upon the facts
or th e actual dam ages, b u t upon th e
question of w h eth er or n ot th ere is in
surance. T his is an inequitable prac
tice th a t tends to m ake insurance costs
h ig h er th a n th ey otherw ise w ould be.
W e all have a stake in autom obile
insurance. T he m ore autom obiles th a t
are in su red th e b e tte r for us all. And
th e fairer we tre a t th e in su ran ce com
panies th e less our insurance w ill cost
us in th e future.
26
LEG A L DEPARTM ENT
(C ontinued from page 20)
prom issory note w h ere there is e v i
dence introduced th at th e note Avas
signed in blank by the m aker and that
afterw ards the blanks w ere filled in
by the payee in term s and figures d if
fering from th ose agreed upon.
Lane ow ned a h ouse and lot in
N orth D akota th a t he w ished w ould
go to his life-long friend, Jo rd an , a
banker. A ccordingly, L ane p rep ared
a deed to th e p ro p e rty in favor of
Jo rd an and delivered it to him. S h o rt
ly th e re a fter, Jordan, w ho w as leaving
for a trip aro u n d th e w orld, suggested
to Lane th a t he, Lane, keep th e deed
in his safe deposit box d u rin g his,
Jo rd a n ’s, absence. L ane com plied w ith
th e suggestion. W hile Jo rd a n w as
gone, L ane died. W as Jo rd a n en
titled to th e property?
Yes. If a grantor m akes a m anual
d elivery to the grantee of a deed ab
solu te in form , in tend in g to part Avith
all dom inion over the in stru m ent, the
d elivery is absolute and title p asses
im m ediately in accordance w ith the
term s of th e deed. If a deed has once
b een d e liv e r e d , its r e tu r n to th e
g r a n to r fo r so m e sp ecific p u rp o se,
su c h a s fo r sa fe k e e p in g , d o e s not
d e str o y th e effect o f deliA ery.
A South D akota banker arran g ed
w ith M idvale to operate a com bination
tire store and filling statio n owned
by him . M idvale failed to m ake a
p ro p er accounting and executed in
favor of th e b an k er a prom issory note
for th e shortage. T h ereafter he failed
to pay the note w hen it fell due and
th e b an k er sued him. At the trial
M idvale attem p ted to show th a t th ere
w as an oral agreem ent connected w ith
th e note th a t varied its term s. Could
he do so?
N o. Oral te s tim o n y is in a d m issib le
to Arary , c o n tr a d ic t, or add to a c o n
tra c t AA-hich lias b een r ed u ced to Avritin g and w h ic h is c lea r , d e fin ite and
c o m p le te , in th e a b se n c e o f frau d ,
m ista k e or a c c id e n t.
T h e n o te in
v o lv e d h ere is to be c o n sid e r e d a s a
co n tr a ct and, sin c e n o fra u d , m ista k e
or a c c id e n t e x is te d , th e te r m s th e r e o f
c a n n o t b e v a r ie d b y o ral te s tim o n y .
B lanton execu ted in favor of a
N ebraska b an k er a deed to a farm in
th a t state ow ned by him. T he deed
w as given as secu rity for a loan and,
concurrently, th e parties en tered into
a w ritte n agreem ent reciting such to
be the facts. The b an k er died and
his h eirs asserted th ey w ere en titled
to tre a t the deed as an absolute con
veyance. Should th ey be su stained
in such assertions?
No. W here the ow ner of realty
ex ecu tes a con veyan ce or deed and
on the sam e date, and as part of the
sam e transaction, he and the gran tee
execu te an in stru m ent o u tlin in g that
the con veyan ce or deed is secu rity
for a loan, the con veyan ce or deed
w ill be deem ed a m ortgage and treated
as such.
Meet at H ot Springs
T he F inancial A dvertisers Associa
tion w ill held its 1940 an n u al conven
tion at The H om estead at H ot Springs,
V irginia, October 28, 29 and 30, it w as
announced by C hester L. Price, ad v er
tising and publicity m anager of the
City N ational B ank and T ru st Com
pany, Chicago, and ch airm an of the
1940 C onvention City Com m ittee of the
F i n a n c i a l A dvertisers A ssociation.
A Few Financial Figures about the
Oldest and Largest Mutual Hail
Insurance Association in the World
F orty-seven Y ears Old
Surplus to P olicyholders $1,179,533.74
T otal Losses P aid to D ate $14,201,186.63
C arries H ail Insurance on G row ing Crops
All C overage A utom obile Insurance
F ire Insurance on T ow n D w ellings, and B road C overage of W ind and T ornado Insuran ce
A Few Good
O p e n in gs for
Banker A ge n ts
Valley Bank Building, Des Moines, Iow a
Northwestern Banker
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Federal Reserve Bank of St. Louis
A pril Í9W
T he re p o rt of this com m ittee, recom
m ending H ot Springs, w as u n an im o u s
ly adopted.
O ther m em bers of th e com m ittee
are: H en ry C. Ochs, vice president,
W in ters N ational B ank and T ru st
Company, Dayton, Ohio; Sw ayne P.
Goodenough, vice president, LincolnA lliance B ank and T ru st Company,
R ochester, New York; and M errill J.
Campbell, a ssistan t secretary, M arine
T ru st Company, Buffalo, New York.
YOUR GRACIOUS HOST
FROM COAST TO COAST
TheGotham
f
In the upper picture above, reading from le ft to right, is Jack H ilm es and
W illiam B. S trief, special rep resentatives, and Grady Fort, general agent of
the D es M oines agen cy o f the E quitable o f Iow a. They are seated in Mr.
P o r t’s n ew ly rem odeled and redecorated office.
The lower picture shows the central office space of the agency, around w hich
other offices are grouped.
ICTU RED on th is page are two
view s of th e recen tly rem odeled and
redecorated hom e office g eneral agency
q u a rte rs of th e E quitab le Life of Iowa
in Des Moines, of w hich G rady F o rt is
g eneral agent, assisted by Jack H ilm es
and W illiam Strief, special re p re se n ta
tives.
A round th e cen tral office space,
show n above, are located th e p riv ate
offices of Mr. F o rt, Mr. H ilm es, and
Mr. Strief. In th is o u ter space, also,
are located th e offices for the salesm en
of th e agency. T hey are arran g ed in
P
sm aller offices w hich two salesm en
share, instead of the usual large agency
room, p erm ittin g the agent to do his
office w ork in quiet surroundings.
U nder the direction of G rady F ort,
th e Des Moines agency ranked fourth
am ong all agencies of the com pany in
1939, w ith an an n u al paid total of $1,862,512. The Des Moines agency led
all agencies of the E quitable of Iow a in
F eb ru ary , th is year, w ith $222,916 of
paid-for business, and w as th ird am ong
all agencies of th e com pany for the
first tw o m onths of 1940.
A.S.KIRKEBY,
M a n a g in g Director
H IR K EBÜ
HOTELS
Northwestern Banker
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Federal Reserve Bank of St. Louis
A pril 19 W
Automobile and
Retail Sales Continue
at Rapid Pace, Although
Business
Tf6tlQ Somewhat Uncertain
UR m o n th ly index of business
activ ity w as dow n sh arp ly
again in F eb ru ary . T he F eb
ru a ry index w as 101.8 as ag ain st 106.8
in J a n u a ry and 112.4 in December.
The index for M arch w ill probably
show a fu rth e r decrease, alth o u g h th e
decrease w ill probably be sm aller th a n
in eith e r F e b ru a ry or Ja n u a ry .
T here is no definite indication th a t
a tu rn in g po in t in business activ ity
has been reached. T he N ew Y ork
T im es and o th er w eekly business in
dices have continued to decline, th o u g h
a t a slow er ra te th a n in Decem ber,
Ja n u a ry and F eb ru ary . B ut th e re
have been a few indications of a tu r n
for th e b e tte r la te r on. Dom estic
sales of refined copper in F eb ru ary ,
for exam ple, and sales and unfilled
orders for zinc, increased by am ounts
w hich in th e p ast have signaled an
u p tu rn in business activ ity w ith in
th e follow ing fo u r m onths. The m oney
m ark et tu rn e d easier in th e m iddle
of M arch. D espite re c u rre n t “peacescare” declines, th e stock m a rk e t has
refused to go below th e bottom reached
in Jan u ary .
T h ere has been no broad advance
in raw m a te ria l prices, such as some-
O
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Federal Reserve Bank of St. Louis
A pril 1940
P r e p a r e d for
THE N O RTH W ESTERN
BANKER
b y an o rg a niz a t io n of
le a d in g e c o n o m ists
tim es precedes an u p tu rn in general
b u siness activity; and y et several im
p o rta n t raw m aterials have m arked
out well-defined su p p o rt levels, i. e.,
levels a t w hich consum ers app ear to
re g a rd these m aterials as cheap. Con
seq u en tly every tim e several im
p o rta n t raw m aterials such as hides
an d wool get dow n to th e low er edges
of th e ir recen t tra d in g ranges new
buy in g comes into th e m arkets, and
th is b u ying appears to have been of
th e so u nder type based upon calculated
fu tu re needs ra th e r th a n of th e type
th a t is “d riven in ” by rum ored or
actu al price advances.
T h ere are tw o m ajo r areas of the
A m erican econom ic scene, m oreover,
w hich continue to show resistance to
th e d epressing effects of th e sh arp
declines in production in th e heavy
in d u stries. One is autom obile retail
sales w hich, on a seasonally adjusted
basis, have held a t th e com paratively
high level of last Decem ber. T he
o th er is ru ra l retail trade, w hich has
been stim ulated by com paratively
good cash farm incom e and by heavy
F ed eral benefit paym ents. T hese two
sectors continue to m ake a favorable
co n trast w ith th e ir v u ln erab ility to
depressing influences in th e 1937 reces
sion. P riv ate residential construction,
despite a recen t m oderate dow nw ard
trend, is still su b stan tially h ig h er th a n
in 1937. Public construction w o rk is
probably slightly low er rig h t now
th a n in 1937, and fu rth e r declines are
expected. P riv ate non-residential con
stru ctio n is slack.
M erchandise exports in th e first six
m onths of th e w ar w ere about 35 p e r
cent h ig h er th a n in th e corresponding
period of th e previous year. T he de
m and for A m erican m an u factu red and
sem ifinished products has held m uch
b e tte r th a n som e observers h ad ex
pected. T he export trad e in raw m a
terials, p artic u la rly cotton,- has ex
ceeded all expectations, although in
large p a rt th e gains in cotton exports
are to be a ttrib u te d to ex p o rt boun
ties.
As a re su lt of th e w ar, a few A m er
ican in d u stries are o p erating a t recordbreak in g rates. T he n u m b er of w o rk
ers em ployed on m achine tool m an
u factu re is g re a te r th a n ever before,
and w ould be still g re a te r w ere it
n ot th a t producers fear th a t too great
p la n t expansion w ill re su lt in excess
capacity a fte r th e w ar. T he aircraft
in d u stry , of course, is expanding
rapidly; and th e dem and for certain
nonferro u s m etals has increased both
on account of foreign dem and and our
ow n naval defense program .
I t seem s im probable th a t th e gen
eral business recession w ill reach
severe p roportions as long as even
a few im p o rta n t in d u stries are oper
atin g a t such h igh rates. M ilitary ex
p erts, m oreover, believe th a t th e
tendency has been for th e A llied gov
ern m en ts to u n d erestim ate th e task
of defeating H itler, and th a t th e y w ill
(T u rn to page 52, please)
29
* N o . I of a Series
DOES INVESTMENT EANÏING
P
e r h a p s n o b u s in e s s
d u r in g the p a s t d e c a d e has b e e n m ore m a lig n e d
or s u b j e c t e d to m o re c a u s tic c riticism
^ I n v e s tm e n t B a n k in g
d e fe n d in g .
It does,
d o e s n ’t n e e d
k o w ev er,
th a n I n v e s tm e n t B a n k in g .
(JJ W k iIe a d m ittin g tk a t tk e in d u stry
need
k a s k a d its sk o rtco m in g s ( a n d w k a t
e x p la in in g , a n d tk a t is tk e p u rp o se of
k u sin ess k a s n t) tk e tim e k a s arriv ed
tkis — tk e k rst in a series of a d v e rtise
w k e n in c a n ta tio n s sk a ll k e re p la c e d
m ents, p re p a re d a n d re le a se d k y tk e
w itk c a n d o r — w k e n re a so n s k a ll su k -
Io w a In v e stm e n t B a n k e rs A sso cia tio n .
stitu te for ra n c o r — arid w k e n facts
s k a ll p re v a il over rum ors.
^ IT k e fa ct tk a t tk e k u sin e ss of In v e st
m en t B a n k in g k a s k e e n so little u n d e r
^ T k a t In v e stm e n t B a n k in g k as, a n d
stood ca n , p e rk a p s , k e a ttrik u te d to
is, co n trik u tin g a w o rtk w k ile fu n ctio n
tk e fa ilu re of tk e in d u stry itself to
to A m e ric a s econom ic w e lfa re — tk a t
e x p la in its fu n ctio n s >
—<its rig k tfu l a n d
tk e In v e stm e n t B a n k e r is a m a n of
im p o rta n t p o sitio n in tk e stru c tu re of
re p u ta tio n , in teg rity a n d ju d g m e n t, are
A m e ric a n k n a n c e .
p o in ts w e in te n d to prove.
Iowa I n v e s t m e n t Bank ers Association
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Federal Reserve Bank of St. Louis
30
The Month s Market Maneuvers
Prepared for T H E N O R T H W E S T E R N B A N K E R by J A M E S H, C L A R K E ,
Assistant Vice President, American National Bank & Trust Company, Chicago
E N E R A L business and the
m a rk e t b oth d rifted d uring
th e m o n th of M arch. The dow n
tre n d in b u siness w hich started
in Ja n u a ry continued, though
probably a t a som ew hat low er
rate; stock m a rk e t prices m oved
sidew ise, and bond prices im
proved. All th re e m ovem ents are
u su al in a period of g reat uncerta in ty and fear of possible
changes both here and abroad.
G
ja m e s
h
.
c la r k e
Steel operations during March continued to de
cline w eek by w eek, from 65.9% of capacity as of the
end of F ebruary to 60.7% of capacity for the w eek
ending March 23rd. T h is percentage of operation is
still satisfactory, hut the backlog of orders con tinu es
to decline and a furth er decrease in production still
appears in evitab le. W ar orders, or n ew substantial
dom estic dem ands, w ill be needed to change this
trend. The F ed eral R eserve Board in d ex of in d u s
trial production, w hich reached a n ew recovery high
of 128 in D ecem ber, w as estim ated to have declined
to about 105 for the m onth of March. E stim a tes for
both A pril and May are low er than for March. Som e
solace can he obtained, h ow ever, from the fact that
it fell n in e p oints b etw een D ecem ber and January,
ten points b etw een January and February, and prob
ably on ly four during March.
The sto ck m a rk e t continued its sidew ise m o ve
m en t in the tw enty-five trading days up to March 30.
D uring ten of these days the Dow-Jones Industrial
A verages advanced, during th irte e n th e y declined,
and on tw o days th e y ended up exactly w here th ey
started— hut the final resu lt was an increase of only
.71 of a po in t in tw enty-five days. H ad it n ot been for
the dram atic annou n cem en t of the $1.00 U. S. Steel
dividend, w ith its im plications th a t th e D irectors of
the Steel Corporation expected im p ro ved business,
the m a rk e t w ould have d rifted lower. A recovery of
th e m a rk e t to its Sep tem b er high still seem s to be a
long w a y off. T ru ly surprising is the fact th a t w hile
business has declined so sharply since D ecember, the
stock m a rk e t has n o t declined m ore. The possibility
of im proved earnings because of w a r orders appears
to still loom large in the m in d s of m a n y of those in
terested in the m a rket.
C orporate earn in g statem en ts for 1939 and railroad
operatin g figures for th e first tw o m onths of 1940
continue to be released. P ractically w ith o u t excep
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Federal Reserve Bank of St. Louis
tion, 1939 earnings, as announced, are b e tte r th a n
1938. R ailroad earnings for Ja n u a ry and F e b ru a ry
are in the m ain b e tte r th a n those of th e correspond
ing m onths of 1939. N evertheless, th e percentage
increase in carloadings in 1940 over 1939 continues
to decline and th e sm all change in th e m ark et price
of railroad securities continues to point tow ard an
expected reduction in railroad net unless general
business im proves.
The govern m en t bond m arket, stim ulated by the
la test su ccessfu l note con version , continued to ad
vance, w ith 2%’s of 65-60 bid up from 106 30/32 as of
the op en ing of b u sin ess March 1 to 107 20/32 on
March 29—a full 1% points. The in crease in ex cess
reserves, w ith the excep tion of the w eek w h en in
com e ta x es w ere paid, and the static su pp ly of g o v
ernm ent secu rities, seem ed to force the m arket to
advance in sp ite of the fear of w hat m ay happen
should the w ell advertised total w ar in E urope de
velop. In spite of the fact th a t the w ar in E urope is
n ow in its sev en th m onth, the prices of govern m en t
secu rities are fa st approaching th eir last su m m er’s
high.
N ew issues of corporate securities offered during
the m o n th w ere u n ifo rm ly successful, although in
som e cases th e y m a y have started out a bit sticky.
The largest piece of financing w as the B eth leh em
Steel issue w hich the m a rket readily absorbed. M u
nicipal offerings w ere w ell received in volum e, the
latest and m ost sensational success being the re fu n d
ing of the entire bonded debt of the City of M iam i at
a low er coupon rate.
The en tire business situ atio n is difficult to analyze.
T he indices of g eneral business are still declining.
The stock m ark et is hesitating. The bond m ark et
is active and higher. A nd issues of corporate and
m unicipal securities w hich are definitely not top
grade sell well. T he effect of th e pleth o ra of funds
is still as a p p aren t in th e m ark ets as is th e w o rry
about w h at m ay happen should highly destructive
w ar ev en tu ate in E urope th is spring. M any a u th o ri
ties on business p redict an u p tu rn after m idsum m er,
y et few advance statistical reasons for th e ir hopes.
An election year, com plicated by a m eeting of Con
gress and a foreign w ar, m akes analysis extrem ely
ten tativ e, subject to change because of facts con
cerning w hich no prediction can be made. A policy
of alertn ess and caution in in v estm en t seem s to be
th e order of th e day.
31
New Board Member
L ouis S. Cates, p resid en t and a di
recto r of P helps Dodge C orporation,
has been elected a m em ber of the
board of tru ste e s of C entral H anover
B ank and T ru s t Company.
Mr. Cates, w ho is w ell know n in
m ining and financial circles, is p re si
den t and d irecto r of D aw son F u el Com
pany, Dawson, New Mexico, Mocte
zum a Copper Com pany and P helps
Dodge M ercantile Company; vice pres-
Sm ith, presid en t of th e bank, stated
in announcing action of the directors
th a t th e RFC has given its “ten tativ e
com m itm ent” for th e loan, and th a t
the com ptroller of th e cu rren cy has
given his consent to the plan.
directors m eans, if it is carried
through, th a t holders of $4,597,201.96
in particip atio n certificates of F irs t
N ational Co. w ill be paid in full on th e
principal of th e ir certificates, w ith o u t
interest.
The F irs t N ational Co., originally
the M ortgage G u aran ty Co., w as ac
q uired by th e F irs t N ational B ank in
St. Louis in 1921 and subsequently the
stock of the com pany w as distrib u ted
to th e stockholders of th e bank. P rio r
to 1933 th e com pany w as engaged in
g u aran teein g and selling first m o rt
gage loans and in selling certificates
of particip atio n in such loans.
P resid en t Sm ith, in his le tte r to the
b a n k ’s stockholders, stated:
“The directors of yo u r bank, after
m atu re deliberation, w ish to presen t
for y o u r approval a t a special stock
ho ld ers’ m eeting to be held on May 28,
1940, a plan for discharging w h at we
consider a m oral obligation, grow ing
out of th e form er relationship betw een
th e F irs t N ational Co. and th e b an k .”
T he plan approved by th e b a n k ’s
F e d e r a I I) i s c o u n t
C o r p or alio n
Dubuque, Iowa
Autom obi Le Finance
Time Paym ent Plans for
L O U I S S. C A T E S
id en t and d irecto r of Sudden & C hris
tenson, San Francisco; and a directo r
of P helps Dodge Refining Company,
U tah F ire Clay Com pany, F irs t Se
cu rity T ru st Com pany of Salt Lake
City, F irs t S ecurity C orporation of
Ogden, U tah, Old D om inion Company,
C anadian Copper Refiners Ltd., Habirsh aw Cable and W ire C orporation and
th e Long Islan d R ailroad. He is also
a d irecto r of th e N ational In d u stria l
C onference Board.
A n ativ e of M assuchetts, Mr. Cates
now lives in G reenw ich, Connecticut.
To Pay in Full
D irectors of th e F irs t N ational B ank
in St. L ouis last m o n th unan im o u sly
approved a plan for th e b an k to con
trib u te $2,230,397 to w ard final liqui
d ation of th e F irs t N ational Co. The
com pany d efaulted on its obligations
in May, 1933.
U nder th e plan, w hich now will be
su b m itted to th e stockholders of th e
bank, a loan of $3,600,000 w ill be
sought from th e R econstruction F i
nance Corporation.
F ra n k O. W atts, ch airm an of th e
board of th e bank, an d W alter W.
Autom obile P u r c h a s e r s
m
m
m
Capital, Surplus and Undivided Profits
Exceed One Million Dollars
*
*
■
S h ort T erm
Collateral Trust Notes
N otes Secured b y Collateral Under Trust
A g reem en t W ith A m erican N ational
,
Bank and Trust C o C h i c a g o III.
m a w
Information on Request
N orthwestern Banker
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Federal Reserve Bank of St. Louis
A pril 1940
32
IO W A
Investm ent Bankers
Association
Organized 193 5|
W A L T E R E . V IE T H
P r e s id e n t
D av en p o rt
RO Y W . L E R IC H E
S e c r e ta r y
D es M oines
R TH U R h . KEYES, ch airm an of
th e F ield Day com m ittee, a n
nounces th a t W ednesday, Septem ber
11th has been set as th e date for th e
A nnual F ield Day of th e Iow a In v e st
m ent B ankers A ssociation, to be held
as usu al at th e W akonda C ounty Club,
Des Moines.
T his im m ediately follows th e Iow a
State B ankers C onvention an d an u n
usually large atten d an ce is expected.
The com m ittee has prom ised several
innovations and th e ev en t should not
be overlooked. F u rth e r details w ill
be announced a t a la te r date.
A
Illinois, Indiana, Iowa, N ebraska, W is
consin and M ichigan.
The I. B. A.’s plans for a new pro
g ram of public inform ation w ere dis
cussed a t a forum on public relations.
Mr. Connely, w ho recen tly m ade it
know n th a t th e association is m aking
plan s for aggressive activ ity along
th ese lines, outlined them at th is ses
sion of th e conference. He w as also
guest and speaker a t a d in n er given in
his h o nor by m em bers of the associa
tio n on M arch 28.
Mr. Pope spoke a t a luncheon on
M arch 28 th a t opened th e conference.
Central States Conference
Recent Appointments
E m m e tt F. C onnely of th e F irs t
M ichigan C orporation, D etroit, p resi
den t of th e In v e stm e n t B an k ers Asso
ciation of A m erica, an d A llan M. Pope
of The F irs t B oston C orporation, New
York, p ast president, w ere sp eakers a t
th e fifth a n n u al conference of th e Cen
tra l States G roup of th e association in
Chicago, M arch 28 and 29. T he con
ference covered securities dealers in
A rm itt H. Coate, second vice p resi
d en t of th e S tate S ecretaries Section of
th e A m erican B ankers A ssociation,
has been advanced to th e post of first
vice p resid en t to succeed th e late L. F.
Scarboro, secretary of th e Colorado
B an k ers A ssociation, it is announced
by R o bert M. H anes, p resid en t of the
A. B. A. Mr. Coate is secretary of the
N ew Jersey B ankers Association.
Shaw, McDermott & Sparks
investm ent- S e c u r itie s
□
Suitable for Investm ent of B anks,
Institutions and T ru s t F unds
□
307 Equitable Bldg.
DES
N orthw estern Banker
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Federal Reserve Bank of St. Louis
MOINES.
A pril 19^0
Phone 3-6119
I OWA
W illiam D uncan, Jr., secretary of the
M innesota B ankers A ssociation, has
been nam ed second vice p resid en t of
the State S ecretaries Section.
Jo h n S. Gwinn, executive secretary
of the M assachusetts B ankers Associa
tion, has been nam ed a m em ber of th e
board of control of th e State S ecreta
ries Section, and Jam es C. Scarboro,
w ho succeeded his fa th e r as secretary
of th e Colorado B ankers A ssociation,
has been appointed ch airm an of th e
com m ittee on b anking education and
public relations of th e section.
Annual Conference
The second an n u al conference of
the B ankers A ssociation for C onsum er
C redit w as held a t T he G reenbrier,
W hite S u lphur Springs, M arch 28, 29,
30. G. C arlton Hill, vice p resid en t of
th e F ifth T h ird U nion T ru st Com pany
of C incinnati, w as general chairm an,
assisted by com m ittees com posed of
ban k ers from practically all of th e
eastern states.
A featu re of th e C onference w as
“The personal L oan and F inance De
p a rtm e n t in O peration.” A com plete
personal loan and tim e sales d e p a rt
m ent w as set up w ith m en in charge
of each phase of th e operation. T his
display, w hich began by p resen tin g
th e sources or com m ercial tran sactio n s
out of w hich consum er credit arises
and w hich follows th ese tran sactio n s
th ro u g h all of th e steps u n til final
liquidation and profit determ ination,
extended for 135 feet along th e foyer
leading to “Old W hite.”
I t w as com plete w ith in terv iew
booths, credit d epartm ents, account
ing d ep artm ents, a d em o n stratio n of
collection m ethods, and a personal p re
sen tatio n of m ethods of follow ing up
m a tu rin g business to develop th e o ther
dep artm en ts of th e bank. F in ally it
p resen ted in graphic form th e benefits
to th e b ank and com m unity of a pro p
erly operated consum er credit d ep art
m ent.
In th is display b an k ers w ere able to
ask questions and to take p a rt in th e
various operations, e ith e r as borrow er
c r lender, w ith o u t in any w ay in te r
fering w ith th e w ork of a b an k or em
b arrassin g an actual borrow er.
T he F in an cial A dvertisers Associa
tion arran g ed w ith its m em bers to de
velop a series of panels w ith rep ro d u c
tions of ad v ertisin g as used by ban k s
all over th e country. T his w as th e
m ost com prehensive assem bly of ad
v ertisin g on th is subject th a t has y et
been attem pted. Because of th e o ut
standing position of th e FAA th is ex
h ib it p resen ted th e latest and b est
m ethods th a t have been developed, n o t
only of n ew spaper an d d irect m ail ad
vertising, b u t also of business devel
opm ent and plans for staff education.
33
Director of Chemical
A lb ert B radley, vice p re sid e n t of th e
G eneral M otors C orporation, w as
elected a d irecto r of th e Chem ical
B ank & T ru s t C om pany a t a recen t
m eeting of th e board of directors. He
is a m em ber of th e board of directors
H O W T O SA V E STEPS
A N D TIM E
(C ontinued from page 17)
n o t leave th e b an k a t n ig h t w ith th e
basem ent light b u rn in g for th e pilot
lig h t w ill give its w arning.
P robably am ong yo u r em ployes or
friends you w ill know of a cam era
fan. Ask him if he uses a photo elec
tric light m eter. If not, th e n ask y o u r
local light and pow er com pany to loan
you th e ir light m eter. A few sim ple
questions answ ered about its use and
you can take it back to y o u r office and
use it properly. W ould it su rp rise
you to know th a t in one com m unity
b an k th e posting m achine operator
w as w orking u n d er lights th a t w ere
ju s t five p er cent of w h at is norm ally
GENERAL
MOTORS
approved for th a t type of w ork? U nder
these conditions or sim ilar ones w ould
you question w hy y o u r bookkeepers
w ould m ake a few m istakes now and
then? W hy th ey do n o t m ake m ore
e rro rs u n d er such poor lighting a r
ran g em en ts is beyond m ost of us.
Some of you m ight feel th a t th e y .need
new or b e tte r glasses.
(Or “m ore
sleep” as one boss told his employe.)
NO! W h at th ey need is m ore light
p roperly designed. It is up to us to
save th e ir eyes as well as y o u r own
eyes. Do ju s t th a t and increased effi
ciency w ill be th e result.
T he n ex t tim e you buy a draft,
m oney order, or a bills receivable reg
ister stop a m om ent and consider its
cost. D on’t you pay for a new cover
each tim e? T hen w hy not buy a
A C l
ACCEPTANCE
CORPORATI ON
A LB ER T BRADLEY
is engaged primarily in facilitating
wholesale distribution and retail sales
of the following products of General
Motors Corporation and its worldwide affiliates: Cadillac, la salle,
BUICK, OLDSMOBILE, PONTIAC,
Chevrolet automobiles; frigidaire
appliances for refrigeration and air
conditioning; delco lighting, power
and heating equipment; GMC trucks;
BEDFORD, VAUXHALL, OPEL, BLITZ
— foreign made automotive vehicles.
of th e G eneral M otors C orporation and
also serves on th e co rp o ratio n ’s tw o
go verning com m ittees, th e Policy
C om m ittee an d A d m in istratio n Com
m ittee. He is also a d irecto r of th e
Yellow T ru ck & Coach M anufacturing
Com pany.
Mr. B radley joined th e staff of Gen
eral M otors C orporation in 1919 follow
ing his discharge as a first lie u te n a n t
in th e a ir service of th e U nited States
Arm y.
New Directory
T he F irs t Stock C orporation, M inne
apolis, recen tly issued th e 1940 edition
of th e d irecto ry of th e C orporation,
listin g th e nam es of th e b an k s and
th e ir officers, w hich are affiliated w ith
th e firm. Affiliated b an k s are located
in th e states of M ichigan, M innesota,
M ontana, N o rth D akota and South Da
kota. A com plete list of th e officers
and d irecto rs of th e F irs t B ank Stock
C orporation is also show n.
The business consists of investments in
self-liquidating credits, widely diversi
fied as to region and enterprise, capital
employed being in excessof $80,000,000.
GENERAL
MOTORS
INSTALMENT
P L A N
Over-Counter Facilities
in All Markets
Primary Markets in Iowa
Securities
These
notes
In obtaining short term accommodation,
GMAC issues one standard form of note.
This obligation it offers to banks and in
stitutions, in convenient maturities and
denominations at current discount rates.
are available, in limited amounts, upon request.
McGUIRE, WELCH & CO
2 3 1 So. LaSalle
CHICAGO
B ankers T m *t Bldg.
D ES M O IN ES
EXECUTIVE OFFICE NEW YORK - BRANCHES IN PRINCIPAL CITIES
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
A pril 19k0
loose leaf bin d er cover and loose leaf
sheets, and in tim e consolidate the
draft, m oney order, ca sh ie r’s check, as
w ell as y o u r bills receivable reg isters
into one book? You’ll save m oney in
th e long ru n for you w o n ’t be p u r
chasing new covers each tim e. You’ll
have* only one book to c arry in or
out of th e vault, w hich w ill save tim e
for y o u r em ployes.
The older g en eratio n of b an k ers re
m em ber th e style of bookkeeping
know n as th e “Boston L edger.” Tim e
b ro u g h t about changes! P osting m a
chines cam e into vogue and are now
accepted as th e m ore satisfactory
m ethod of posting checking accounts.
Tell me, w hy don’t you post y o u r sav
ings accounts and y o u r certificates of
deposit on y o u r p re se n t bookkeep
ing m achine? W hy not post y o u r lia
b ility ledger as w ell as y o u r general
ledger and expense re g iste r on y o u r
p resen t m achine? T his is being done
in m any com m unity banks and to the
en tire satisfaction of th e ir officers.
T hey save tim e and have increased
th e ir efficiency. You will agree th a t
m achine-posted records are far n eater
th a n th e old pen and ink records.
T here are m any o th er w ays for you
to save tim e and m oney in your own
bank. J u s t sit dow n and look over
y o u r b an k th o ro u g h ly w ith an eye
tow ards th e “flow of w o rk ”, and you
w ill reap m any benefits from increased
efficiency.
A sk your fellow officers and em
ployes to suggest ideas. D on’t hesi
ta te to try them out. Above all else
—rem em ber th a t though you find your
own m ethods seem ingly satisfactory
you can im prove on them if you w an t
to do so. D on’t be afraid to m ake a
change (or change again w h at you
have changed before), should you
find a b e tte r w ay of handling some
p a rtic u lar task.
P rogress comes
V. w . B r e w e r
Co .
M u n ic ip a l B o n d s
The “Level Debt P la n ” of R efunding South D akota’s R ural
Credit Debt Has P rom pted W idespread Recognition
of The B asic Soundness of the State’s Credit.
F IR S T N A T -S O O L IN E BLDG.
MINNEAPOLIS
Iowa’s Leading FHA Mortgagee
FH A LOANS
Interest
9 0 % — 2 5 Y ears on New C onstruction
B 0 % — 2 0 Years on E x istin g C onstruction
W E SPECIALIZE IN SERVICE
M o rtg a g e In ve stm e n t Corporation
F lem ing Bui ld ing, Des M o in e s, I o w a
E . R . H A L E Y , V ic e P r e s i d e n t
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
A p ril 1940
L . K . W A D S W O R T H , S e c r e ta r y
th ro u g h changes! Changes can and
do increase efficiency. Be progressive
and secure th is increased efficiency!
N E W S A N D V IE W S
(C ontinued from page 16)
R epublican elephant and th e Demo
cratic donkey in a com bat in w hich
the elep h an t gets kicked below th e
belt b u t th e donkey is about to fall
over as a re su lt of a show er b ath from
th e elep h an t’s tru n k . If you h av en ’t
seen one of these you had b e tte r ask
R ussell for one as it is a m asterpiece.
A s a resu lt of the w ar, prices have
increased in B ritain 31 p er cent in four
m onths. Some of the prices in th e
U nited States com pared w ith a year
ago are these: Cotton up 21 per cent,
flour 29 p er cent, g ray goods 26 per
cent, leath er 12% p er cent, lum ber 14
p er cent, ru b b er 20 per cent, silk 60 per
cent, wool 39 per cent.
W e have received a g reat m any cir
culars about stock m arket serv ices
b u t one th a t w as sent to us recently
takes first prize for its audacity and
for its plan. H ere it is: “I agree to
purchase 25 sh ares of th e stock you
select. It w ill sell for not less th a n
$25 a share and n ot to exceed $60 a
share. W hen the stock has advanced
tw o and one-half points, I agree to
send you $45 to pay in full for the
above-m entioned Stock M arket F o re
cast for a period of one y e a r from the
above date. If th e stock recom m ended
does not advance t\yo and one-half
points, I pay you n o thing.” Our as
sum ption is th a t if th ey can get
enough suckers to buy th e p artic u la r
stock w hich th ey recom m end it m ight
have th e effect of going up th e 2 %
points to w hich th ey refer and th u s
th ey w ould get th e ir $45 for th e ir stock
m ark et forecast. If th e m a rk e t serv
ice prophets w ere as sm art as they
claim, w hy don’t th ey m ake th e ir
m oney out of the m ark et instead of
out of th e ir services?
Bridge Rules
Joe—W e h ad a fifth a t bridge last
night.
Jim —D on’t be silly. You n ever had
a fifth a t bridge.
Joe—Okay, okay. T hen it w as a
quart.
¿¡sr
Force of Habit
D octor—“H ow ’s the p a tie n t th is
m orning?”
N urse—“I th in k h e’s regaining con
sciousness.
He tried to blow th e
foam off his m edicine.”
35
NEBRASKA
Investm ent Bankers
Association
Organized 1920
A B E M A R T IN
P r e s id e n t
L in c o ln
R O B E R T P . E L L IC K
S ecr eta ry
O m ah a
p o rta n t link in the N orth W estern
NNUAL convention of th e N e
R ailroad’s m ain line.
b rask a League of Savings and
W hen th e N o rth W estern bought the
L oan A ssociations w ill be held in
Sioux City & Pacific, it assum ed a
Omaha, May 23rd-24th, w ith 150 to 200
$4,000,000 issue of the la tte r’s bonds,
delegates expected.
issued in 1901. W hen the N orth W est
ern w ent into receivership in 1934, the
M ayor Dan B u tler and F inance Com
bonds, like all o ther N orth W estern
m issioner H arry K nudsen of Om aha
issues, w ere frozen for the tim e being.
said recen tly th e y w elcom ed any ideas
T he Sioux City & Pacific bonds w ere
from th e C ham ber of Com m erce for
due in 1936, b u t w ere defaulted.
building a new city au d ito riu m w ith
Recently, Sioux City & Pacific bonds,
out issuing bonds, but ad m itted th ey w hich once sold as high as 95, w ere
w ere skeptical of th e possibility.
dow n to 10. In 1939, th ey sold as low
The c h am b er’s board of d irectors
as 1614. T hen some of th e bondhold
approved a reso lu tio n favoring a new
ers discovered th a t th e old Sioux City
au d ito riu m b u t opposing issuance of
& Pacific link w as m aking m oney, even
bonds.
tho ugh th e N o rth W estern system , as
a whole, w asn ’t. T hey asked th e fed
B oard of g o vernors of Ak-Sar-Ben re
eral court to pay up th e ir interest.
cently announced form ation of th e AkT his th e co urt ordered, and the bonds
Sar-Ben B ridge A ssociation, a n o n recen tly have been selling around 42
profit corporation, to sep arate o pera and 43.
tions of th e Ak-Sar-Ben bridge a t th e
A bout $30,000 of th e bonds are held
foot of D ouglas stre e t in Om aha from
in Omaha, it is estim ated.
o th er Ak-Sar-Ben activities.
The bridge w as deeded to th e new
2,000,000 C U S T O M E R S
association, w hich w ill hold no oth er
property.
(C ontinued from page 11)
The association w ill be directed by credit agencies, nam ely — personal
a board of tru ste e s com posed of th e 1 2
loan com panies, in d u strial banks,
g o vernors of Ak-Sar-Ben, w ho w ill credit unions and com m ercial banks.
serve w ith o u t pay.
It is m uch m ore difficult to esti
Officers of th e association luclude
m ate th e tim e sales paper handled by
A. A. L ow m an, president; H. M. Bushcom m ercial banks b u t I w ould v en
n ell, p resid en t of th e U nited States N a tu re th a t last y ear com m ercial banks
tional B ank of Omaha, vice president; handled in excess of 2 ,000,000 custo
W. B. M illard, Jr., vice p resid en t of the
m ers w ith a tim e sales volum e som e
Om aha N ational B ank, secretary -treas w h ere betw een four and five h u n
urer.
d red m illion dollars. T his rep resen ted
approxim ately 10 p er cent of th e to
An obscure issue of bonds on an ob tal tim e sales volum e in the U nited
scure railro ad recen tly b ro u g h t a n u m States.
ber of Om aha people a handsom e re
The total o u tstanding of both types
tu rn .
of consum er credit for all of the com
The road w as th e Sioux City & P a m ercial han k s as of Decem ber 31,
cific, begun hopefully in 1864 as one of 1938, w as som ew here in th e vicinity
th e num ero u s ‘tra n sc o n tin e n ta l” ra il of five h u n d red m illion dollars. D ur
roads of th e period. It got as fa r as ing th e last y ear th is ou tstan d in g has
from Sioux City to B lair, N ebraska, undoubtedly increased trem endously,
first, because of th e large n um ber of
then, by m erging w ith th e N o rth ern
N ebraska A irline, to F rem ont. L ater, additional com m ercial banks en terin g
th e B lair-F rem ont line becam e an im th e field; second, because th e d ep art
A
m ents of those banks already in busi
ness
undoubtedly
becam e
b etter
equipped to handle a larger p ercen t
age of th e available business; and
th ird, because b etter business condi
tions created a larg er supply of this
credit.
At th e p resen t tim e, th ere is lite r
ally a m ushroom g ro w th tak in g place
in respect to banks engaging in th is
field. The g reat danger of th is type
of gro w th is th a t th ey m ay be ju m p
ing in p u rely because of th e profit
possibility of th e business w ith o u t
giving th e p roper em phasis as to how
the m ark et is p resen tly being served.
Then, too, th ere is the danger of too
little know ledge of operating costs
and th e m any o th er ram ifications of
business. It is not the rap id grow th
th a t we should be concerned about
p articu larly , b u t ra th e r th e lack of
planning and study p rio r to en terin g
the field. At th e presen t tim e th ere
is a trem endous urge for g reater vol
um e and for th e expansion of th e
consum er credit portfolios of those en
gaged in this business, w hich is u n
doubtedly responsible for a n um ber
of problem s, such as:
1. Reduced R ates—Cut Rates.
2. E x c essiv e A d v ertisin g — (F ig u ra
tively speaking, we have been in
troduced in recent y ears to a new
L
a
m
s o
n
B
r
o
.
8c
s
Co.
E s t a b l is h e d 1874
141 W. Jackson Blvd., Chicago
50 Broadway, New York
Our b ra n ch o ffic e s are
equipped to render com
p le te b ro k era g e serv ice
in the handling of grain
(cash and futures),
stocks, bonds, cotton and
provisions. Private wires
direct to all markets.
B R A N C H O F F IC E S
N ew Y ork, N. Y.
B u ffa lo , N . Y .
Cedar R a p id s, Io w a
D a v en p o rt, Io w a
D e s M o in e s, Io w a
D u buque, Io w a
F o rt D odge, Io w a
Io w a F a lls, Io w a
M a rsh a llto w n , Io w a
M aso n C ity , Io w a
S io u x C ity , Io w a
S to r m L a k e , Io w a
W a te rlo o , Io w a
F ra n k fo rt, In d .
L a F a y e tte , In d .
M in n e a p o lis, M in n .
S t. P a u l, M in n .
K a n sa s C ity , M o.
S t. L o u is , M o.
O m aha, N eb.
L in c o ln , N eb .
B lo o m in g to n , 111.
D e K a lb , 111.
G ilm an, 111.
G alesburg, 111.
L a S a lle , 111.
P eoria, III.
Q u in c y, III.
M u sk o g ee , O kla.
M E M B E R S O F L E A D IN G S E C U R I T Y
a n d C O M M O D IT Y E X C H A N G E S
N orthw estern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
A p ril Í940
36
econom y—th e philosophy of de
pendence upon g o v ern m en t and
a consequent lessening of th e be
lief in th e v irtu e of th rift.)
3. M isle a d in g A d v e r t is in g — (R ates,
etc.)
4. Sub S tan d ard term s.
5. P rep o n d eran ce of single nam e p a
per.
6 . C onstant Renew als.
All of th e above problem s w o rk to
w ard s th e d e trim e n t of th e public’s
w elfare as w ell as th e b a n k ’s w elfare.
W h at th e public needs and w an ts is
s e r v ic e — n o t cheap m oney.
By service I m ean:
1. P ro p e r lending advice in resp ect
to satisfy in g th e ir needs and at
th e sam e tim e n o t over-burdening
th e m w ith debt.
2. P ro p e r counsel as to how to get
out of debt.
3. P ro p er term s for th e pu rch ase of
sem i-durable and d urable goods.
4. M oney or cred it w hen th e y need
it and th e w ay th e y need it.
5. E x p e rt liquidation service w hich
p ro p erly forces th em to pay w ith
out over-burdening th em d u rin g
repaym ent.
6 . F a ir
consideration d u rin g o u t
stan d in g period of th e ir in d eb t
edness, in su rin g th e b o rro w er or
th e p u rc h a se r of fair and ade
q u ate reb ates for anticipation,
reasonable late charges or re in
sta te m e n t fees, etc.
Good service w hich em bodies all of
these things, an d m an y m ore, w ill
build for a b e tte r volum e and g re a te r
volum e th a n reduced or cu t rates.
T h ere is also th e d an g er th a t the
ta ste of profits th a t business provides
m ig h t re su lt in th e eclipsing of th e
m ost im p o rtan t reason for any bank
engaging in th e consum er credit field,
nam ely, its public service elem ent.
T he individual consum er, w hich is
y o u r sm all depositor, is not only the
life-blood of y o u r in stitu tio n b u t he is
also th e backbone of y o u r com m unity.
A t th e p resen t tim e his credit req u ire
m en ts are being so sought afte r by
h u n d red s of different agencies and he
is being subjected to so m any different
in stalm en t m erchandising schem es
th a t he direly needs sound credit ex
ten sio n—a m p le b u t sound.
If you
serve him properly, fulfilling his re
q u irem en ts b u t n o t over-burdening
him , on a reasonable cost basis you
w ill n ot only stre n g th e n his position in
y o u r com m unity, b u t you will, as a
resu lt, im prove th e economic statu s
of y o u r com m unity and th e economic
stab ility of th e nation.
All of these possibilities apply w ith
equal force to ru ra l and u rb an banks
since th e re is no difference in th e
basic fundam entals of th e extension of
th is type of credit. Conditions in u r
b an cen ters are conducive to special
ized d ep artm en ts and concentration of
volum e, b u t n ev erth eless th e problem s
rem ain th e same.
As th e nu m b er of banks engaged in
th is business increase th ey sim ply add
to th e already overw helm ing n um ber
of credit agencies com peting for th is
business and, in m y opinion, th is in
creased com petition w ill n a tu ra lly re
su lt in th e tendency to abnorm ally ex
p and its use. One w rite r conclusively
proves th a t th ese su b stan tial fluctua-
BONDS
Public Utility
Indust ri al
R ai lr oa d
and
co m pa n y
Incorporated
100 W e s t M onroe S tr e e t, C h ic a g o
N ew Y ork
R e p r e s e n t a t iv e s :
M ilw a u k e e
W a te r lo o
Northwestern Banker April 1940
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
e x p a n sio n h a s a te n d e n c y to w a r d th e
a c c e le r a tio n o f b o o m s and c o n tr a c tio n s
in c r e a se th e in t e n s it y o f d e p r e ss io n s.
U nder such conditions th e peaks and
valleys of our n ational econom y are
accentuated by th e u n controlled use
of consum er credit. F o r th is rea so n
fa r m o re c o n tr o l o v e r te r m s, r e n e w a ls,
etc., sh o u ld be e x e r c ise d in g ood tim e s
th a n in p o o r tim e s if w e are to le s s e n
th e had e ffe c ts o f c o n su m e r c r e d it on
o u r e c o n o m ic sta b ility .
I am probably one of th e loudest and
m ost active pro p o n en ts of consum er
credit as being a p ro p er field for com
m ercial banks, b u t I believe th a t we
w ill find th e b est appraisal of this
usefulness to ban k s in th e old axiom s
of sound banking, nam ely:
1. The elem ent of safety for our de
positors.
2. T he elem ent of service to th e
com m unity.
3. The elem ent of profit to th e stock
holders.
T hese are th e n a tu ra l lim itations
w hich should be placed on any banks
in th e consum er credit field. Keep
them co n stan tly in m ind as y o u r guide
as you expand yo u r consum er credit
operations. In m y opinion th e com
m ercial ban k s of th e U nited States
are th e logical credit agencies to ex
ten d th is type of credit. I have said
before, and I rep eat again, th a t I
th in k th ey are u n d er obligation to do
so—th ey are u n d er obligation, first,
to th e sm all depositor; second, to th e
sm all business m an; and th ird, to th e ir
com m ercial b an k in terest, w hich to
a large ex ten t depends on consum er
credit, and m ost im p o rtan t, th e y are
u n d er obligation to th e com m unities
from w hich th ey derive th e ir ex ist
ence.
Laurance Armour
H eads Bank Board
Muni ci pal
A .C .A L L Y N
tions in th e am o u n t of consum er
credit ex ert a g reat influence upon
th e tre n d of th e n ational income. F o r
exam ple, he show s th a t th e expansion
of consum er credit ten ds to increase
incom e profits and production an d to
provide additional incentives for p ro
ducers investm ent, w hile a co n trac
tion of consum er credit tends to de
crease incom es, profits and production
and to destroy th e incentive for pro
ducers investm ent. C o n su m er c red it
O m aha
D e s M o in es
B o sto n
C edar R a p id s
A nnouncem ent is m ade th a t a group
of pro m in en t business m en including
L aurance A rm our and M arshall Field
I I I have p u rchased a controlling in
te re st in th e N ational B uilders B ank
of Chicago w hich w ill sh o rtly m ove
to a new location in th e F ield B uild
ing at La Salle and Adams streets.
L aurance A rm our w as elected ch air
m an of th e board and C. R ay P hillips
37
w as elected p resid en t of th e bank.
T hese m en w ere also elected directors
to g eth er w ith G. E. Rose, vice p resi
d e n t of th e In te rn a tio n a l H a rv e ste r
Company; W ade F etzer, p resid en t of
W. A. A lexander Com pany; Jo h n R.
N icholson of th e law firm of N ichol
son, Snyder, C hadw ell an d F ag erb u rg ,
and Carl J. W eitzel of th e M arshall
F ield E state.
W kENJOY direct
connections with 174 of the
first 300 banks in the United
States; with 78 of the first 100.
This is significant evidence of
the type of strong, well-managed banks, large and small,
for which and through which
LAURANCE ARM OUR
L au ran ce A rm our, w hose lead er
ship as presid en t, w as in stru m e n ta l
in th e rap id g ro w th of th e A m erican
N ational B ank and T ru s t C om pany of
Chicago, resigned from th a t in s titu
tion th e first of th e year. H e is to be
fully active in th e N ational B uild
ers Bank, b o th as ch airm an and m em
b e r of th e board.
Mr. P h illip s is a v e te ra n b anker,
hav in g sta rte d his b an k in g career in
Buffalo, N ew York, w ith th e M arine
T ru s t Com pany. In 1921 he becam e
associated w ith th e Corn E xchange
N ational B ank of Chicago. U pon th e
m erg er of th e Corn E xchange N a
tional B ank w ith th e Illinois M er
ch an ts T ru s t Com pany, he becam e
an officer of th a t in stitu tio n an d sub
seq u en tly w as a vice p resid en t of th e
S tate B ank of Chicago and la te r of
th e F o rem an S tate N ational Bank.
Of recen t y ears he has been receiver
of th e M issouri-K ansas Pipe Line
C om pany as w ell as p resid en t of th e
A utom atic P ro d u cts C orporation.
The d irecto rs also au th o rized th e
calling of a special m eeting of th e
stockholders for th e purp o se of v o t
ing on th e changing of th e nam e of
th e N ational B uilders B ank of Chi
cago to “La Salle N ational B an k of
Chicago”, and if approved, th e change
w ill be m ade effective in th e n e a r fu
tu re and p rio r to th e rem oval of th e
b an k to its new q u a rte rs in th e Field
Building.
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Federal Reserve Bank of St. Louis
our facilities for service are
made available.
... T H E ...
P H IL A D E L P H IA
NATIONAL BANK
O R G A N IZ E D 1803
PHILADELPHIA, PA.
Capital, Surplus and Undivided Profits
$42,000,000
Member of Federal Deposit Insurance Corporation
Northwestern Banker April Í9W
38
The Omaha Stock Yards
Located in the h eart of a great ag ricu ltu ral and
livestock te rrito ry serves as m arket and d is trib u t
ing center to practically every p a rt of the U nited
States
THE
Stock Yards N a tio n a l B an k
of
SOUTH OMAHA
Located at the O m aha Stock Y ards is equipped
to serve the interests of Banks and In d iv id u als
th ro u g h o u t the vast te rrito ry served and reached
by this great central m arket.
M EM BER
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Federal Reserve Bank of St. Louis
FED ERA L
D E P O S IT
IN S U R A N C E
C O R P O R A T IO N
39
term s in the state legislature and is
fam iliar w ith th e duties of th e office
w hich he seeks.
NEBRASKA
9 1st Birthday
NEWS
C. C. N E U M A N N
P r e s id e n t
O a k la n d
W M . B. H U G H E S
S e c r e ta r y
O m ah a
G roup Meetings
Increases
A tten tio n is called again to th e
N eb rask a G roup M eetings, w hich are
being held a m o n th e a rlie r th is year,
w ith th e first one in F a irb u ry on
A pril 15. The com plete schedule for
th e m eetings is as follows:
B oth th e n u m ber of new savings
accounts and th e am ount of new
m oney invested in savings and loan
associations of N ebraska d uring J a n
u a ry of this y ear show ed sub stan tial
increases over the sam e m onth in
1939, according to Leslie E. M artin,
secretary of th e N ebraska League of
Savings and L oan associations.
F ig u res com piled by th e League
show 631 new accounts opened in J a n
u ary, 1940, as com pared w ith 544 in
th e sam e m onth last year. New in
v estm en ts for the first m onth of 1940
is $610,294.78, w hile th e 1939 figure
reached only $553,509.23.
Group One at Fairbury, M onday,
A pril 15th.
Group T w o at Colum bus, Tuesday,
A pril 16th.
Group F iv e at Ord, W ednesday,
A pril 17th.
Group S ix at A llian ce, Thursday,
A pril 18th.
Group F ou r at H oldredge, Friday,
A pril 19tli.
Group T hree at N orfolk, M onday,
A pril 22nd.
T he usu al special tra in w ill be a r
ran g ed to m ake th e ro u n d s of Groups
One, Two, Five, Six and F o u r in th a t
order.
Land Bank Election
The E lba b ran ch of the F ed eral
L an d B ank held its a n n u al m eeting
recen tly w ith a good attendance. This
b ra n c h of th e association em braces
th e counties of H ow ard, S herm an,
G reeley and W heeler, and re p re se n ta
tives w ere p resen t from m ost of th e
counties.
A. C. H u n k in s of St. Paul, secretary
of th e division w as in charge of th e
m eeting. A satisfacto ry re p o rt of th e
y e a r’s business w as follow ed by the
re-election to th e board of d irectors
for a th re e y e a r term , A. J. N ap rstek
of St. P aul and F ra n k K rzycki of Elba.
O ther board m em bers are Joe Tom an
of St. Paul, F re d K eller of E lba and
Joe P earso n of Cotesfield.
Named Cashier
F ollow ing th e resig n atio n of Jo h n
E. Knobel as cashier of th e F irs t N a
tional B ank, F a irb u ry , L u th e r B on
ham , ch airm an of th e board of direc
tors, announced th e ap p o in tm en t of
H arold L ivingston as cashier, and the
prom otion of Mrs. Jack Skidm ore to
be in charge of th e savings d e p a rt
m ent. fo rm erly held by L ivingston.
District M anager
H. S tephen King, form er secretary
of G earge & Company, Om aha realtors,
has becom e d istrict m anager for In
v estors Syndicate, in v estm en t firm, it
w as announced. A lthough he w ill
no longer be actively connected w ith
th e George firm, he w ill re ta in his
o w nership in terest.
Dies in Laurel
F u n e ra l services w ere held recently
for Adolph U rw iler, 85, re tire d bankerfarm er. He w as form er presid en t of
th e L aurel State B ank and had ex
tensive land holdings in Cedar county,
w h ere he had lived 53 years.
Directors
Jo h n Sayer of Cam bridge and Ray
G arey of B eaver City w ere elected
directors of th e B eaver City associa
tion of the F ed eral L and Bank, a t its
an n u al m eeting. A pproxim ately 200
w ere p resen t at a d in n er given at the
M asonic tem ple.
T. L. M athew s observed his 91st
b irth d ay by a rriv in g as u sual a t his
office at th e N ebraska S tate B uilding
and Loan association in F rem ont.
On his arrival, he w as greeted by
th e congratulations of his w ide ac
quaintance in personal calls, by tele
phone, le tte r and telegram .
One of F re m o n t’s m ost distinguished
citizens, Mr. M athew s has been a
resid en t of F rem o n t 48 years. He or
ganized th e N ebraska S tate Building
and Loan association and has served
as an officer ever since. He also or
ganized th e F rem o n t S tate Bank.
Annual Meeting
A nnual m eeting of stockholders of
the F irst N ational Bank, E m erson,
w as held recently. P aul U tem ark Sr.,
W. H. Roeber, Alm a W einandt, L. F.
W allw ey, E. H. Lam p, Aug. K ruse
and F. A. M ieras w ere re-elected di
rectors. O ther business of a ro u tin e
n a tu re w as discussed and acted on.
Houston Dies
E m sley C. H ouston, 79, form er state
senator,
m ayor,
lum berm an
and
banker, died in T ekam ah after several
w eeks of ill health.
He w as a native of Bloom ington,
Indiana, and attended the U niversity
of Indiana. He m oved w est to K an
sas and in 1881 came to Tekam ah.
He w orked for the Thom as and D arst
lum ber y ard four years, th en bought
the firm and m anaged it as th e E. C.
H ouston L um ber com pany, w ith a
branch y ard at H erm an. He operated
th e business 35 years.
He becam e connected w ith th e bank
as vice p resid en t in 1919. He owned
considerable land in th a t vicinity and
fed livestock on a large scale.
Sells Bank Interests
R ecently L. C. C hurchill announced
th e disposal of his in terests in the
F ren ch m an Valley B ank a t Palisade
and th e F irs t N ational B ank at H ayes
Center.
Owing to ill health, Mr.
C hurchill deem ed it advisable to m ake
th is change at this tim e and in th a t
w ay place ham self in a position to
enjoy a m uch deserved vacation.
Candidate
A. L. N eum ann, presid en t of the
F a rm e rs & M erchants N ational B ank
a t Oakland, is a candidate for th e office
of L ieu ten an t G overnor on the Demo
cratic ticket.
Mr. N eum ann is quite w idely know n
over th e state and has served five
Holdrege Meeting
A d istrict F ederal L and b ank m eet
ing w as held recen tly at Holdredge.
T en federal land bank rep resen tativ es
from neighboring tow ns w ere present.
M. M. In h eld er of Lincoln w as in
charge. O thers p resen t included E. R.
N orthw estern Banker
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Federal Reserve Bank of St. Louis
A pril 19^0
40
• N E B R A S K A
V oorhies of W au n eta an d W. A. R ey
nolds of Indianola.
The session lasted all day and closed
w ith serv in g of re fre sh m e n ts to th e
group follow ing th e evening m eeting.
Heads County Bankers
P aul K annow w as elected p resid en t
of th e Buffalo C ounty B a n k e rs’ asso
ciation an d Bob B u rm an nam ed sec
re ta ry a t th e q u a rte rly m eeting of th e
organization a t K earney. D inner w as
served a t 7 p. m. and th e business
m eeting and inform al discussion fol
lowed.
A ttending th e m eeting w ere Glen
G ibson and R obert W oodw ard of Gib
bon, F. C. K lein an d L aw rence H aug
of Shelton, C harles Zim pfer, Jim
H e rv e rt an d Mr. K uticka of R avenna,
P au l K annow , Tom Russell, Bob Burm an and L eon R yan of K earney.
Check System
T he Cozad S tate B ank announces
th a t it has m ade arran g em en ts for in
1940
1863
U
G
St a t e s
en t B on
St a t e
and
u n ic ip a l
B
ds
A. I. B. Speakers
onds
F re d I. K ent, d irector of th e B ank
ers T ru st Company, New York, and
ch airm an of th e Com m erce and M arine
Com m ission of th e A m erican B ankers
A ssociation, and F ra n k M. T otton, vice
presid en t of th e Chase N ational B ank
of N ew York, are announced as speak
ers a t th e tw o general sessions of th e
an n u al convention of th e A m erican In
stitu te of B anking Section of th e
A m erican B ankers A ssociation w hich
w ill be held a t Boston, Ju n e 3-7.
Mr. K ent w as th e first p resid en t of
th e A m erican In stitu te of B anking,
serving in th e y ear 1903-04. Mr. T otton
w as p resid en t of th e In stitu te in the
y ear 1928-29.
Mr. T otton w ill address th e opening
general session of th e convention on
T uesday m orning, Ju n e 4. Mr. K ent
w ill address th e closing g eneral ses
sion F rid a y m orning, Ju n e 7.
The convention in B oston n ex t Ju n e
w ill m ark th e fo rtieth a n n iv e rsa ry of
th e founding of th e In stitu te.
Telephone FRAnklin 6800
Bank
CGO
987
The First N a tio n a l
o f C h ic a g o
B U I L D I N G
W I T H
Northwestern Banker April 19bO
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
stallation of th e new “PAYC” (pay
as you check) plan and is now ready
to accept deposits u n d er th is new
system .
T he “PAYC” p lan is a checking
account system especially designed for
those w ho cannot m eet p resen t m ini
m um balance req u irem en ts or w ho
p refer n o t to pay p revailing service
charges. The new checking p lan of
fers th e sam e convenience and ad
vantages th a t th e reg u lar checking
account does.
T he “PAYC” system now m akes it
possible for everyone to pay th e ir
bills by check and conduct all of
th e ir personal business in a safe and
easy way.
W ith a view tow ard prom oting m ore
soy bean cu ltu re in N ebraska, and
b rin g in g to N ebraska farm ers th e add
ed revenue to be derived from th is
crop, W. N. M itten, p resid en t of th e
S tephens N ational Bank, F rem o n t, last
m o n th had on display in th e lobby of
his b an k an exhibit of soy beans and
soy bean products w hich a ttra c te d
m uch atten tio n . T he exhibit w as p a rt
of a display p rep ared by th e P en n sy l
vania R ailroad.
T h e B o n d D e p a r tm e n t
s e rv ic e o f th is b a n k is
p a rtic u la rly v alu ab le to
correspondents.
Q u o tatio n sheets will be
m ailed o n req u est. I n
quiries are invited.
Teletype
•
Soy Bean Display
n it e d
o v ern m
M
NEWS
C H I C A G O
S I N C E
It’s Now Judge Beebe
1863
M. P lin Beebe, w ell know n South
D akota b an k er and in v estm en t b an k er
is now a judge, h aving been appointed
E d m u n d C ounty’s judge by G overnor
Bushfield of South D akota to fill th e
un ex p ired te rm of Jam es W. C arter.
Mr. Beebe is p resid en t of th e B ank
of K im ball, South Dakota.
41
O M A H A CLEARINGS
R. AND MRS. John A. Changstrom re c e n tly anno u n ced th e
m a rria g e of th e ir d au g h ter, R u th ,
A. H olm es E m pson, Jr., son or Mr. and
Mrs. A. H. E m p so n of Neosho, Mis
souri. T he cerem ony took place at
B oulder, Colorado.
T he brid e a tten d ed th e U n iv ersity of
O m aha an d th e U n iv ersity of Colorado.
H er h u sb an d studied at th e U n iv ersity
of C alifornia and th e U n iv ersity of
Colorado. H e is a m em ber of th e P hi
K appa P si fra te rn ity .
T hey w ill m ake th e ir hom e in St.
Louis.
T he b rid e ’s fa th e r is a vice p resid en t
of th e O m aha N ational Bank.
M
J. F. M cD erm ott, a vice p resid en t
an d d irecto r of th e F irs t N ational
B ank of Om aha, has been m ade a
K n ig h t of S aint G regory by Pope P ius
X II, it w as an nounced recen tly by
Bishop Jam es H. R yan of Omaha.
T he honor, one of th e h ig h est th e
Catholic ch u rch can bestow , w as to be
co nferred a fte r E a ste r in St. Cecilia’s
C athedral at Omaha, w ith Bishop R yan
presiding.
T he recognition cam e to Mr. M cDer
m ott, it w as announced, a fte r y ears of
u n p re te n tio u s b u t unceasing service to
th e church, p a rtic u la rly in th e c h a rit
able field. He is a d irecto r of Catholic
C harities of O m aha and th e Catholic
Child W elfare association.
in O m aha a t th e Om aha c h a p te r’s
room s a t th e O m aha N ational Bank.
to T he question, “Resolved, T h a t a
n atio n al referen d u m should precede
an y declaration of w ar except in case
of invasion of th e U nited S tates or any
of its te rrito rie s.”
M em bers of th e Om aha team , w hich
took th e affirm ative, are D ale A gee and
Jack K nicely.
A ccording to th e W all S treet Jo u r
nal, A*7. D ale Clark, p resid en t of th e
Om aha N ational Bank, is slated to be
elected a d irector of th e U nion Pacific
R ailroad a t th e an n u al m eeting of
stockholders in Salt Lake City, May
14th. Mr. Clark, w ho w ill be 48 in
A pril, w ould be th e youngest m em ber
of th e railro ad ’s board.
\ \ 7. A v erell H arrim an, ch airm an of
th e board and youngest m em ber now,
w as 48 last Novem ber.
T he arm ored m oney tru c k of th e
Om aha branch, F ed eral R eserve B ank
of K ansas City, long fam iliar on th e
streets of Om aha as it m oved valuable
shipm ents of cu rren cy and securities
betw een banks and express depots, has
been decom m issioned, and th e Omaha
L iv e Stock N ational Bank
Om aha
S ta te m e n t o f C o n d itio n M arch 26, 1940
RESOURCES
Loans and Discounts.............................................................................
Bonds and Other Securities.................................................................
Stock in Federal Reserve Bank........................................................
Banking House and Fixtures.............................................................
Other Real Estate.................................................................................
U. S. Government Securities...................................... $4,932,920.34
Cash, Sight Exchange and Due from Fed. Res. Bk. 4,967,262.02
$ 6,243,030.97
14,710.32
30,000.00
1.00
None
9,900,182.36
$16,187,924.65
L IA B IL IT IE S
M em bers of th e gen eral com m ittee
fo r th e 1940 version of O m aha’s Golden
Spike Days in May, an nounced re c e n t
ly by C hairm an A lv in E. Johnson,
p re sid e n t of th e Live Stock N ational
Bank, include A. L. Coad of th e P ack
e rs N ational Bank, AA7. D ale Clark of
th e O m aha N ational B ank, R obert H.
H all of th e N o rth Side B ank, A. AV.
Gordon, p resid en t of th e O m aha Loan
an d B uilding A ssociation, J. F. M cDer
m ott of th e F irs t N ational B ank, AA7. A.
S aw tell of th e Stock Y ards N ational
B ank.
R obert H. “B ob” H all of th e N o rth
Side B ank of Omaha, h as resig n ed th e
presid en cy of th e O m aha A m ateu r
B aseball A ssociation.
Mr. and Mrs. AV. D ale Clark recen tly
w en t to Jacksonville, Illinois, w h ere
th e y a tten d ed a dad’s day b an q u et
w ith th e ir d au g h ter, Miss Jessie, w ho
w as to r e tu rn to Om aha w ith h e r p a r
en ts for sp rin g vacation.
A debate betw een O m aha and K an
sas City m em bers of th e A m erican In
stitu te of B anking w as held recen tly
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
.......................... $
..........................
..........................
..........................
..........................
..........................
Capital Stock (Com m on)..............
Surplus ..............................................
Undivided Profits ..........................
Unearned D isc o u n t........................
Reserve for Taxes, Interest, Etc..
Dividend Payable March 30, 1940
Deposits:
Banks .............................................
Other Deposits ............................
$7,242,756.21
7,717,033.90
500,000.00
500,000.00
97,478.64
5,091.28
118,064.62
7,500.00
14,959,790.11
$16,187,924.65
D E PO SIT S
March
March
March
March
26, 1934..............$ 6,460,784.82
26, 1936............. 11,763,277.03
26, 1938............. 12,275,926.11
26, 1940............. 14,959,790.11
LOANS AND D ISC O U N TS
March 26, 1934
March 26, 1936
March 26, 1938
March 26, 1940
$1,136,659.50
1,824,516.62
4,462,409.68
6,243,030.97
CAPITAL AND SU R PLU S
March 26, 1934................ $ 550,000.00
March 26, 1936................. 700,000.00
March 26, 1938................
800,000.00
March 26, 1940................. 1,000,000.00
We offer to our Banker friends our facilities in connection
with the financial problems of their Live Stock, Agricultural
and Commercial customers.
Alvin E. Johnson, President.
T h is BanTc E a s N o A f f i l i a t e d
C o m p a n ie s
M e m b e r o f F e d e r a l R e s e r v e S y s t e m a n d F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a tio n
N orthw estern B anker
A pril 1940
42
* NEBRASKA
NEWS
ial and N eb rask a’s rich est w om an, w ho
died recently at th e age of 89.
b an k has contracted to have m oney
m ovem ents h andled by p riv ate a r
m ored car service.
W. B. M illard, Jr., also of th e Omaha
N ational Bank, served as one of the
active pallbearers. Casper Y. Offutt of
th e U nited States N ational B ank w as
an o th er active pallbearer.
\V. D ale Clark served as one of th e
ho n o rary p allb earers a t th e fu n eral of
Mrs. S arah H. Joslyn, p a tro n of th e
arts, donor of O m aha’s Jo sly n M em or
Out-of-TownRanks
O u t-o f-to w n banks and bankers w ill find here
econom ical handling o f accounts in Chicago. We
D irectors of the N ational Security
F ire Insu ran ce Com pany of Omaha,
elected recen tly at th e annual m eeting,
included Ford E. H ovey, p resid en t of
th e O ccidental B uilding and L oan As
sociation, and H. M. B u sh n ell, p resi
dent of th e U nited States N ational
B ank of Omaha.
w ould appreciate the opportunity o f serving you.
C i t y N a t io n a l B a n k
A N II TRUST C O MP A N Y a t C h i c a g o
S
O
U
T
H
L
A
S
A
L
L
E
S
T
R
E
E
Annual Dinner
T
T he th ird an n u al alum ni sym posium
and d in n er of th e G raduate School of
B anking w ill be held on S aturday
afternoon and evening, A pril 6 , a t the
D ow ntow n A thletic Club in New York
City. Max Cavanagh, of N ational City
B ank of New York, is ch airm an of the
din n er com m ittee. T he o thers m em
bers of th e d in n er com m ittee are R ay
m ond C. Ball, of th e Chem ical B ank
and T ru st Com pany of New York, Paul
Craw ford, of th e P hiladelphia N ational
B ank of P hiladelphia, and F ran cis J.
M cGrath, of M anufacturers T ru st Com
pany of New York.
(.Member Federal Deposit Insurance Corporation)
Lini
TH E HOTEE OE T O K A Y
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OMAHA9 NEBRASKA
y
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
New Booklet
w n te n o n •
D e lv in g in to th e f u tu r e , t h e d e s ig n e rs o f th e
r e c re a te d F o n te n e lle h a v e se t th e sty le for th e
h o te l o f th e n e x t d ecad e . B e a u ty an d c o m fo rt
a r e e m p h a s iz e d in th e n e w f e a tu r e s a n d in
t h e n ew i n t e r i o r s t h r o u g h o u t t h e h o t e l in c l u d i n g lo b b ie s , g u e s t ro o m s , d in in g a n d
e n te r ta in m e n t ro o m s, a n d th e c o n v e n tio n fa c il
i t i e s - a l l o f w h ich d e p ic t th e fash io n o f 1940.
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April 1940
C.
C. George, pioneer Omaha rea lto r
and form er king of Ak-Sar-Ben, w ho
died recently at th e age of 77, w as a
director of th e Omaha N ational B ank
and of th e C onservative Savings and
Loan A ssociation of Omaha.
He w as a c h a rte r m em ber of th e
Om aha C ham ber of Commerce, a tru s
tee of K nox College, G alesburg, Illi
nois, of w hich he w as a g rad u ate in
1885. It w as th ro u g h his efforts th a t
one of th e first of O m aha’s sk y scrap
ers, th e 16-story City N ational B ank
B uilding, w as erected. He w as devel
oper of some of O m aha’s m ost beautif u 1 resid en tial districts, including
H appy Hollow, F a ir Acres and D un
dee.
A ndrew Kopperud, F ed eral L and
B ank of Omaha, executive, ill for two
w eeks in a hospital at Iow a City, re
tu rn e d to his hom e in Om aha recently.
co m p lete b a n k in g fa c ilitie s fo r p ro m p t and
2 0 8
.
“A New W ay to Store Your Old B ank
R ecords” is th e title of an in terestin g
new booklet recently published by the
Steel Storage File Com pany of Cleve
land, Ohio. The purpose of th e book
let is to advise on th e reten tio n of and
to im prove the m ethods of th e filing of
inactive records. The booklet is avail
able to any b an k er or business m an
th ro u g h gettin g in touch w ith th e com
pany a t 2216 W est 63rd Street, Cleve
land, Ohio.
YO U R STATE BA N K ER S A S S O C IA T IO N
O FFIC IAL SAFE, V A U L T A N D
TIM ELO CK EXPERTS
F. E. DA VEN PO RT & CO.
OMAHA
43
Lincoln b ank clearings for F e b ru
ary, 1940, show ed a gain of a million
and a half dollars over th e sam e
m o n th a y ear ago. The total for the
m onth w as $10,985,183 as com pared
w ith $9,436,370 for F eb ru ary , 1939.
The Jan u ary , 1940, total w as $11,040,732 or about $45,000 over F eb ru ary
of th is year.
I 940 Conventions
Spring m eeting, A.B.A.
E xecutive Council, The H om e
stead, H ot Springs, Va.
May 2-3: O klahom a a t Tulsa.
May 6-8: M issouri, M uehlebach Hotel,
K ansas City.
May 8-10: K ansas at W ichita.
May 15-16: South D akota a t W atertown.
May 15-16: Indiana, Claypool Hotel,
Indianapolis.
May 23-25: N ational Safe D eposit Advisto ry Council, H otel S tatler,
Boston.
May 28-29: Illinois, P alm er House,
Chicago.
June 3-7: A m erican In stitu te of B ank
ing, H otel S tatler, Boston.
June 5-7: M innesota at M inneapolis.
June 11-12: W isconsin, H otel Schroeder, M ilwaukee.
June 14-15: N orth D akota a t Minot.
June 17-19: M ichigan a t G rand Rapids.
Sept. 9-11: Iowa, H otel F o rt Des Moines,
Des Moines.
Sept. 22-26: A m erican B ankers Asso
ciation, A tlantic City, N ew J e r
sey.
Oct. 28-30: F inancial A dvertisers Asso
ciation, The H om estead, H ot
Springs, Va.
A pril 21-24:
H E girls em ployed in th e office of
th e N ational B ank of Com m erce
e n te rta in e d recen tly a t a d in n er in
co u rtesy of Miss R ita Mills, a bride of
th e n e a r fu tu re. Miss Mills w ill be
w ed to H arold Miller. The seventeen
guests sp en t th e evening playing
cards. The honoree w as p resen ted
w ith a gift.
T
The board of directo rs of th e F irs t
N ational B ank elected E d w in J. F au lk
n er to m em bership on th e board a t
a recen t m eeting. He fills th e vacancy
created by th e d eath of th e late H. S.
F reem an. Mr. F reem an w as ch airm an
of th e b o ard ’s executive com m ittee, a
position w hich w as not filled a t th e
m eeting.
F a u lk n e r is p resid en t of th e W ood
m en A ccident Co., and th e W oodm en
H ealth Co.
A $250 loan scholarship for th e 19401941 school y ear has again been m ade
available to th e U n iv ersity of N ebraska
by th e A m erican B ankers A ssociation
foundation for education in economics.
Senior stu d en ts of high scholastic
stan d in g m ajo rin g in banking, eco
nom ics or an allied field, and w ho is
w holly or in p a rt self su p p o rtin g is
eligible for th e aw ard, according to
J. E. G underson, finance secretary.
R ecipients are given tw o y ears in
w hich to rep ay th e loan. Since th e
funds w ere first m ade available to th e
u n iv e rsity in 1929-1930, six stu d en ts
have been g ran ted th e scholarships.
The local com m ittee in charge is com
posed of Mr. G underson, Prof. Roy
Cochran of th e d ep artm en t of history,
th e d ep artm en t of civil engineering.
Clark W eckbach and W. H. C ollett
attended the B ank Clinic held recen t
ly by th e C ontinental N ational B ank
of Lincoln at th e H otel C ornhusker.
The program included talk s by E lton
L ux of the U n iversity of N ebraska
and L aurence L unden of th e U niver
sity of M innesota. A buffet luncheon
w as served at noon and b an q u et in
th e evening w ere offered.
George W. H olm es, presid en t of the
F irst N ational Bank, w ho w as born
on F e b ru a ry 29th, recently celebrated
his b irth d ay for the first tim e in four
years. He adm itted being 60 y ears old.
W hen Mr. H olm es reached his office
he found it covered w ith large bowls
of red roses, th e gifts of employes. A
g reeting card signed by every w orker
in th e b an k accom panied the flowers.
Efficient
Correspondent Service
with
a
' Persona/Touch"
(
SELL YO UR BAN K
The "Walters” Way
Without Publicity
Qualified, carefully investigated bank
employees furnished free
T H E CHARLES E. W A LT ER S CO.
Omaha, Nebraska
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
o n t in e n t t a l
0
R
a t io n a l
B*Kk
LINCO LN
Member Federal Deposit Insurance Corporation
Northwestern Banker
April 1940
44
*
R E G IO N A L
CONFERENCE
(C ontinued from page 1 2 )
loans th e b anks have n o t participated.
T he F a rm S ecu rity A dm in istratio n
m ade 12,000 loans in N ebraska alone
du rin g 1939 for a to tal of 10 m illion
dollars, w hile th e P roduction Credit
A ssociation loaned, in th e U nited
States, a to tal of 302 m illion dollars in
1938 and w ere aggressive again th is
year.
“T hese th re e agencies of g o v ern
m en t are all illu stra tio n s of th e ex-
N E B R A S K A
N E WS
te n t to w hich th e g overnm ent has en
te re d into com petition w ith A m erican
ban k ing.”
Those reg istered a t th e Conference
from a n u m ber of M iddlew estern
S tates w ere as follows:
Illinois
B urnell, H om er A., R epresentative,
C ontinental Illinois, N ational B ank &
T ru st Co., Chicago; H astings, B. L.,
Moodys Inv esto rs Service, Chicago;
K neebone, R obert W., W estern R epre
sentative, B anking, Chicago; K uning,
‘T h e B a n k at th e Y a r d s ’
D IR E C T O R S
O F F IC E R S
C. L . F r e d r ic k s e n , P r e s i d e n t
M . A . W ils o n , V ic e P r e s i d e n t a n d C a s h ie r
W . G. N e ls o n , A s s i s t a n t C a s h ie r
W . C. S c h e n k , A s s i s t a n t C a s h ie r
L . W . R o s s, A s s is ta n t C a s h ie r
i i
C. R. M c K e n n a , P r e s id e n t , J o h n s o n B is c u i t C o.
B. L . S iffo rd , A tto r n e y , S iffo rd & W a d d e n
G. F . S i lk n i tte r , P r e s id e n t , S io u x C ity
S to c k Y a r d s C o m p a n y
C. L . F r e d r ic k s e n , P r e s i d e n t
M . A . W ils o n , V ic e P r e s id e n t a n d C a s h ie r
H . C. B o s w e ll, S e c r e t a r y - T r e a s u r e r ,
W e s t e r n C o n tr a c ti n g C o r p o r a tio n
Look at the Record
/ /
Our very b est advertisem ent is to "look at the
record" w hich sh o w s sev era l of our country
bank friends h a v e u sed Live Stock N ational
Bank correspondent service sin ce it w a s organ
ized 45 y ea rs a g o .
In one of th ese banks, the third generation is
now en joyin g the sa m e efficient correspondent
service his father an d grandfather en joyed at
this bank.
N A T IO N A L
*
Chas. C., A ssistant V ice-President,
A m erican N ational B ank & T ru st Co.,
Chicago; N ugent, T hom as J., ViceP resident, F irs t N ational B ank, Chi
cago; R udder, R udolph J., A ssistan t
G eneral M anager, R and M cNally
B ankers D irectory, Chicago; Sowles,
M elvin H., A ssistan t V ice-President,
F irs t N ational Bank, Chicago.
Io w a
Bailey, R ay O., and wife, V ice-Presi
dent, Ja sp e r County Savings Bank,
N ew ton; B arn ett, G. M., P resident,
G uthrie County S tate Bank, G uthrie
Center; Baschnagel, R. J., Iow a S tate
B ank & T ru st Co., Iow a City; Bates,
D. W., S u p erin ten d en t of B anks, Des
Moines; B yerrum , R. O., V ice-Presi
dent, F irs t T ru st and Savings Bank,
D avenport; Donhowe, A. T., V ice-Presi
dent, C entral N ational B ank & T ru st
Co., Des Moines; Dougan, Don C., P resi
dent, Iow a S tate Bank, H am burg;
G ronstal, B. A., P resid en t, Council
Bluffs Savings Bank, Council Bluffs;
H arm s, H. J., P resident, F a rm e rs S tate
Bank, M errill; H aynes, H en ry H., E d it
or, N o rth w estern B anker, Des Moines;
Jacobs, W alter, C ashier, Lake City
State Bank, Lake City; Jones E. W.,
V ice-President, Iowa-Des M oines N a
tional B ank & T ru st Co., Des Moines;
Lane, W. A., P resident, S ecurity Sav
ings Bank, M arshalltow n; M atthew s,
J. J., V ice-President, U nion B ank &
T ru st Company, S traw b erry Point;
McDonald, K. J., P resident, Iow a T ru st
and aSvings Bank, E stherville; Rol
lins, R ichard R., V ice-President, B ank
ers T ru st Company, Des Moines;
Sm ith, Dale C., M anager, T ra n sit
Dept., C entral N ational B ank & T ru st
Co., Des Moines; Stafford, H. W.,
P resident, Ames T ru st and Savings
Bank, Ames; Sum m erw ill, Ben S.,
P resident, Iow a State B ank & T ru st
Co., Iow a City; Sum m erw ill, W. W.,
C redit M anager, Iow a S tate B ank &
T ru st Company, Iow a City; Sweet, R.
A., V ice-President, Story County S tate
Bank, S tory City; T hom psan, George
A., D irector, Iow a State B ank & T ru st
Co., Iow a City; W arner, F ra n k , Secre
tary, Iow a B ankers A ssociation, Des
Moines; W itter, L. A., P resident,
F a rm e rs T ru st & Savings Bank, Spen
cer; Young, H. R., Cashier, A m erican
N ational Bank, A rlington.
M innesota
V olkenant, E lm er M., A ssistan t
Cashier, F irs t N ational Bank, St. Paul.
N ebraska
S io u x City, Iow a
M em b e r F e d e r a l D e p o s it I n s u r a n c e C o rp o ra tio n
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
April 19W
A bbott, Leroy, Vice - P resident,
G uardian S tate Bank, Alliance; A lter,
I. R., E xecutive V ice-President, F irs t
N ational Bank, G rand Island; Arnsberger, H. A., A ssistan t Cashier, F irs t
(T u rn to page 47, please)
45
Ryan, Lead; C. O. Gorder, Deadwood;
W. E. Dickey, Spearfish; G. A. McG arrough, Sturgis; D eW itt M alvin,
Belle Fourche; Dave Hull, Newell, and
R alph M attson, H ot Springs.
R apid City officials p resen t w ere
R. E. Driscoll, presid en t of th e o rgan
ization, and th e follow ing local b ran ch
officers: W. H. Johnson, C. C. A nder
son, H. R. B row ning and Noel Klar.
SOUTH
DAKOTA
NE WS
W IL L IA M C. R E M P F E R
P r e s id e n t
P a r k s to n
Annual Convention
M a y I 5th-16th
As announced p reviously th e Fortyn in th A nn u al C onvention of th e South
D akota A ssociation w ill be held th is
y e a r a t W a te rto w n on W ednesday and
T hursd ay , M ay 15 an d 16. A ccording
to p re se n t plans, h e a d q u a rte rs w ill be
a t th e L incoln H otel and in all p ro b
ab ility th e g en eral sessions of th e
convention w ill be held in th e Lincoln
H otel d ining room w hich is on th e
g ro u n d floor.
P re se n t p lans call for re g istra tio n
th e first m orning, th e first business
session to begin im m ediately a fte r
lunch. R. M. H anes, p re sid e n t of th e
A m erican B an k ers association, has
consented to a tte n d an d address th e
convention th is y e a r and it is hoped
th a t he w ill be able to address th e
a n n u a l d in n e r m eeting w hich is to be
held th e first evening. The last b u si
ness session of th e convention w ill
be held on th e m o rn in g of M ay 16
w ith a d jo u rn m e n t aro u n d noon.
Land Bank Meeting
The B e n n e tt co u n ty N ational F a rm
L oan association held its a n n u a l m eet
ing in M artin recently.
T he association e n te rta in e d its
m em bers and th e ir fam ilies and the
P ine Ridge N FL A and M artin N FL A
m em bers an d fam ilies a t a free
m atinee.
Jam es S tew art, re p re se n ta tiv e of th e
F ed eral L an d B ank of Om aha gave
an in te re stin g and in stru c tiv e address
follow ed by open discussion.
A t th e business m eeting, Joe Pich
and B. R alph M arshall w ere elected
d irecto rs for th ree-y ear term s.
Dies in Texas
W ord w as received in Sioux F alls
of th e d eath recen tly in H ouston,
Texas, of C. E. Olstad, fo rm er Sioux
F alls and M adison, S. D., ban k er. He
suffered a stroke.
O lstad h ad engaged in th e re s ta u
ra n t an d real estate business in H ous
ton.
G E O R G E M. S T A R R I N G
S e c r e ta r y - T r e a s u r e r
H u ro n
W hile a resid en t of Sioux Falls, he
w as presid en t of th e In tern atio n al
S tate Bank.
Clearings
A 27 per cent gain over th e sam e
m o nth of 1939—th e larg est increase for
several y ears—w as reg istered in the
volum e of clearings th ro u g h A berdeen
b anks in F eb ru ary , th e re p o rt of Joe
E. Koch secretary of th e A berdeen
C learing House, disclosed. T he in
crease topped any m ade for an in
dividual m o n th du rin g 1939 w hich, as
a year, had th e g reatest total of clear
ings for an y tw elve-m onths period
since 1931.
C learings w ere $2,887,705.67 com
pared w ith $2,271,534.19 for th e sam e
m o nth in 1939. The difference w as
$616,171.48.
F ig u res for the first tw o m onths of
1940, show ed a boost of approxim ately
I 8 V2 per cent over those for a com
p a rativ e span a y ear ago. T otals for
J a n u a ry and F eb ru ary , 1940; $6,132,115.28; for 1939 $5,180,035.40. T he in
crease w as $952,079.88.
Remodeled
The S ecurity State B ank rem odeled
th e ir Iren e office recently w ith the
re su lt th a t it now has a v ery new
and individual appearance.
The grill w ork over the m ain coun
te r w as rem oved and th e counter
scraped and stained, and it now has
a beautiful w aln u t g rain finish. This
co u n ter w as also m oved ag ain st the
south w all and a sw inging door in
stalled betw een th e lobby and the
m ain room.
N ew w oodw ork w as
b u ilt above th e counter about tw o
feet high, w ith tw o teller w indow s
and an opaque glass form ing the
co u nter top-piece.
Rapid City Meeting
B ranch m anagers of th e F irs t N a
tio nal B ank of th e Black H ills g a th
ered at th e offices recently for an
inform al business m eeting and gettogether.
M anagers atten d in g th e m eeting
from o ther H ills tow ns w ere Jo h n
Changes Name
F ro m now on it w ill be th e F irs t
D akota N ational Bank, Y ankton, in
stead of th e F irs t D akota N ational
B ank & T ru st Company.
A t th e last m eeting of th e directors
of th e b an k it w as decided to sh o rten
th e nam e as a m a tte r of convenience
by practically cu ttin g it in half. The
b an k has received a telegram ap
proving th e change in nam e.
T his b an k w as established in early
te rrito ria l days and w as th e first n a
tional b an k to open in th e te rrito ry ,
now N o rth and South Dakota. In
it are m erged several pioneer banking
institutions.
Dies in New York
N. E. F ran k lin , of th e F irs t N a
tional B ank in Deadwood, S. D., died
in New Y ork recently. Mr. F ra n k lin
left Deadwood about 25 y ears ago to
engage in b anking business in New
York. H e w as th e son of H arris
F ran k lin , form er “cattle k in g ” of
so uthw est South D akota and n o rth
w est
N ebraska,
w as
w ell-know n
am ong Om aha stockm en.
Farm Meeting
T he F a rm e rs and M erchants Bank,
W atertow n, w ere hosts recently to
farm ers from a w ide area around W a
terto w n a t the new au ditorium w here
Roy A. Cave and G. A. M cDonald of
B rookings State college, and Jo h n
Noonan, county agent, gave talk s on
livestock raising and feeding, p astu re
and forage problem s, followed by an
open forum of questions and discus
sions. L. H. Loken, vice presid en t
of th e bank, introduced th e speakers.
Land Bank Election
M em ber stockholders of th e W akonda N ational F arm Loan association,
subsidiary of th e F ederal L and Bank,
held th e ann u al m eeting of th e o rgan
ization in W akonda recently.
In the election of directors Clyde
Lovejoy and V ictor B erg w ere nam ed,
both to succeed them selves.
The
board is now com posed of L. W.
M ayer, president; T errance E llison,
vice president; F red Slattery, Clyde
Lovejoy and V ictor Berg, m em bers
of th e board, and E. F. B lankenburg,
B eresford, secretary-treasurer.
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
A pril 1940
46
T h e NORTHWEST, more than many business men
realize, is the home of tens of thousands of manu
facturing plants large and small.
From railway motors shipped to the far-off veldts of
South Africa to skis for the Byrd expeditions; from
transformers for South Am erica to lighting plants
for clipper planes spanning the oceans, the Northwest
is as diversified in business as it is in agriculture.
In this great development the banks of the North
west have been helpful, encouraging, constructive.
Many of them have been our correspondents for gener
ations. We are proud to have had some small part in
aiding them to develop the resources of this section.
Solving problems is part of our service. We are as
near to you as your phone, typewriter or telegraph.
D e p a rtm e n t o f B a n k s a n d B a n kers
W m . N. J O H N S O N , V ice P re sid e n t
D. E. C R O U L E Y , A s s t. C ash ier
F. W. C O N R A D ,
L. P. G l S V O L D ,
A s st. V ice P re sid e n t
A s st. C ashier
NORTHWESTERN NATIONAL
and T R U S T
COMPANY
BANK
OF MINNEAPOLIS
M a rq u ette A v en u e: S ix th to S e v e n th S tr eets
•
•
M em b er F ed era l D e p o s it In su ra n ce C orp oration
H om e o f the N orth w estern N a tio n a l
B a n k a n d T ru st C o m p a n y— in the
fin a n c ia l cen ter o f M in n e a p o lis —
w h ere service to a ll in d u stry is a
m a jo r co n sid era tio n o f th e officers.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
47
A.
B. LA TH R O P
P r e s id e n t
S t. P a u l
W IL L IA M D U N C A N ,
S e c re ta ry
M in n e a p o lis
Jr.
No. 29, ju s t south of th e in tersection
w
F.
A. A m undson, state b an k in g com hich is about five m iles south of
m issioner, annou n ced th a t th e com H enning. Traffic on th e highw ay w as
m ission h ad au th o rized th e Peoples heav y as m any w ere d riving from
S tate B ank of Staples to increase its D eer C reek and H enning to P ark ers
capital stock from $25,000 to $50,000 P rairie.
F o u r cars w ere involved in the
an d its in debtedness lim it from $500,accident,
w hich b ro u g h t death to Mr.
000 to $1,500,000.
T he com m ission also au th o rized an Lee and in ju ries to a t least th ree
am en d m en t p e rm ittin g th e b an k to others.
Changes Name
change its nam e from th e Peoples
S tate B an k of Staples to th e Staples
S tate B ank. A no th er am en d m en t p e r
m itted th e b an k to adopt a “sliding
scale” of d irecto rs to talin g not less
th a n five n o r m ore th a n eleven p e r
sons.
Dies in New Orleans
V ictor L aury, 84, of V irginia, re
tired, for m an y y e a rs engaged in m e r
cantile, b an k in g and real estate e n te r
prises d u rin g his long residence in
M inesota, died a t N ew O rleans re c e n t
ly. Mr. L aury, w ho had been on a
w e ste rn and so u th e rn to u r since
D ecem ber 1, becam e ill w ith influenza
d u rin g th e M ardi G ras season an d had
been critically ill w ith pneum onia.
Takes O ver Bank
W alter Jo h n so n w ho bou g h t A. I.
E n g eb retso n ’s co ntrolling stock in th e
F irs t N ational B ank of M oorhead, took
control recently.
Johnson, of Red L ake F alls w as
fo rm erly w ith th e Red L ake C ounty
S tate Bank. George Johnson, Crookston, w ill be cash ier and tw o p re se n t
em ployes, H a rry E n g eb retso n and
Miss Lucile B ueling, w ill be retained.
E n g eb retso n h as been w ith th e b an k
since 1921.
Killed in Accident
Because he stopped to offer a ssist
ance to people in ju re d in an au to
mobile accident, T. L. Lee, cash ier of
th e F irs t N atio n al B ank of D eer Creek,
m et d eath on th e highw ay so u th of
H enning, M innesota. He w as alm ost
in sta n tly killed, dying of a fra c tu re d
skull before a physician arriv ed .
The accident occurred on H ighw ay
Modernizing
T he F irs t N ational Bank, W alker,
found th a t th e ir room s w ere not large
enough to accom m odate th e business
th e y w ere receiving.
So recently
w orkm en have been em ployed in fin
ishing th e new addition w hich w as
recen tly com pleted, and rem odeling
th e fro n t office as well.
T his m akes m uch m ore room in
th e b ank lobby for th e custom ers, be
sides leaving am ple room behind th e
w indow s for th e officers of th e bank
to w ork. Also, th e second step at
th e fro n t of th e building w ill be
abolished, m aking ju st one step
th ro u g h th e door into th e bank.
Dies in Mankato
W illiam W. Davis, 77, M ankato,
p ro m in en t as a b an k er in p ast years
and active in various lay offices of
th e F irs t P resb y terian church over
a long period, died th e re recently. He
h ad been critically ill for several
w eeks.
R etired since 1932, Mr. Davis had
served as presid en t of th e form er
C om m ercial S tate B ank and M ankato
Savings B ank p rio r to th a t tim e. F irst
em ployed as a bookkeeper for th e R.
D. H u b b ard M illing com pany, he be
cam e cashier of th e M ankato Savings
B ank, of w hich he had been a director,
in 1900. H e la te r w as elected vice
p resid en t and th e n p resid en t of th is
b an k and becam e presid en t of th e
Com m ercial State B ank w hen it w as
organized in connection w ith th e M an
kato Savings Bank.
New Interior
N ot co n ten t w ith in stalling a new
com position floor in th e Citizens State
B ank, N ew Ulm, th e b an k is now
“stream lin in g ” its fixtures in th e in
terior.
W orkm en have rem oved th e heavy
wooden partio n s and m etal “cages”
from m arble counters, and w ill soon
replace these outm oded fixtures w ith
black glass above th e counters used
by tellers and clerks.
W ith th e heavy p artitio n s and cages
rem oved th e in te rio r of th e b ank
alread y has a stream lined appearance
and th e room iness of th e business
p a rt is enhanced.
Change Fixtures
A high p a rtitio n behind w hich em
ployees of th e S tate B ank of M orris
tow n have tran sacted business w ith
p atro n s for several y ears has been
rem odeled to give a stream lined effect.
A dditional lig h t is provided and
m ore co u n ter room afforded both em
ployees and patrons. T here is also
a g re a te r o p p o rtu n ity to converse w ith
em ployees w ho h eretofore w ere h an d i
capped by th e glass p artition.
R E G IO N A L
CONFERENCE
(C ontinued from page 44)
N ational Bank, Omaha; B oetcher, W.
L., A ssistan t Cashier, C entral N ational
Bank, Columbus; B ro adhurst, G. W.
and wife, G uardian, F irs t N ational
Bank, M inatare; B roadhurst, J. W.,
cashier, F irs t State Bank, Scottsbluff;
Castle, J. Y., Cashier, McDonald S tate
Bank, N o rth P latte; Cooper, C harles
L., P resident, F a rm e rs S tate Bank,
W allace; E asterday, P hil R., E xecutive
Vice-President, F irs t N ational Bank,
Lincoln; Else, Irl, and wife, C ashier
and V ice-President, F a irb u ry State
Bank, F airb u ry ; E nevoldsen, D. F.,
P resident, P o tte r S tate Bank, Potter;
Freem an, H ow ard, Cashier, F irst N a
tional Bank, Lincoln; G reen T. F.,
Cashier, B ank of Valley, Valley; Guenzel, E rn e st U., A ssistan t Vice-Presi
dent, F irs t N ational Bank, Lincoln;
H allas, A. J., V ice-President, Stock
Yards N ational B ank of South Oma
ha, South Omaha; H allstead, L. L.,
S tate B ank E x am in er of N ebraska,
N orth P latte; H arris, F. W., and wife,
Vice - P resident, A lliance N ational
Bank; Alliance; H endricks, P e rry B.,
Vice-President, T he U nited States N a
tional Bank, Omaha; H orner, E. I.,
S tate B ank E xam iner, Lincoln; Jackm an, E. E., P resident, F a rm e rs N a
tional Bank, G rant; Johnson, Joseph
V., P resident, Johnson County Bank,
Tecum seh; Koelling, A lbert J., wife
and daughter, P resident, City N ational
Bank, H astings; K ram ph, A. C., As
sistan t Cashier, F irs t N ational Bank,
N o rth P latte; K roeger, R. H., ViceP resident, Live Stock N ational Bank,
N orthw estern B anker
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A pril 19-W
48
•MINNESOTA
Omaha; M atthew s, L. Dale, Cashier,
P ack ers N ational B ank, Omaha; Misko, R. E., C ashier, F irs t N ational B ank,
Ord; M itten, W illiam N., P resident,
S tephens N ational B ank, Frem ont;
Moor, W. E., and wife, V ice-President,
F a rm e rs S tate Bank, E lk h o rn ; M ortensen, C. J., P resid en t, N ebraska State
Bank, Ord; N eum ann, Clyde C., Cash
ier, F a rm e rs and M erchants N ational
B ank, Oakland; O ttem an, E d w ard B.,
Cashier, Stockm en’s N ational, Rushfield; Placek, E. E., P resid en t, F irs t
N ational B ank, W ahoo; P oy n ter, Jo s
NEWS»
eph W., and wife, Vice-President,
A m erican N ational Bank, Kimball;
Rice, V ernon, A ssistan t Cashier, Com
m ercial N ational Bank, G rand Island;
Ridge, R ay R., V ice-President, The
Om aha N ational Bank, Omaha; Riley,
Iv an C., P resident, F irs t N ational
B ank, F airb u ry ; Sanders, B. N., State
B ank Com m issioner, Lincoln; Sm ith,
H. M., an d wife, D irector, B ank of Val
ley, Valley; S tew art, C. A., P resident,
F ed eral In term ed iate C redit Bank,
Omaha; S train, T. B., P resident, Conti
n en tal N ational Bank, Lincoln; T an
ner, E rn est, A uditor, F irs t N ational
Bank, Omaha; T ernus, P. J., C ashier,
F arm ers S tate Bank, H um phrey; W il
kinson, H. R., P resident, C urtis S tate
Bank, Curtis.
North Dakota
Bow ers, H. C., C ashier, F irs t S tate
Bank, Regent; B randt, R. A. H., ViceP resident, F irs t N ational Bank, M inot;
G raham , Jo h n A., S tate B ank Commis
sioner, B ism ark; Jackson, C arther,
C ashier and T ru st Officer, F irs t Na
tional B ank in G rand F orks, G rand
Forks.
South Dakota
L o n g - T e rm Relationships
F o u r A m e ric a n banks have been
c o rre sp o n d e n ts of th is in s titu tio n
continuously for m ore than 75 years;
159 for m ore than 50 years;
425 for m ore than 40 years.
Business relationships of such long
standing m ust have been m utually
beneficial.
C
e n t r a l
H
a n o v e r
BANK A N D TR U ST CO M PAN Y
NEW YORK
MEMBER FEDERAL DEPOSIT I NSURANCE CORPORATI ON
N orthw estern B anker
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Federal Reserve Bank of St. Louis
A p ril 1940
A ndrew s, W illiam , and wife, ViceP resident, F irs t N ational B ank of th e
Black Hills, Lead; Haugo, E rling, S tate
B ank Com m issioner, P ierre; Lovald,
H. B., Cashier, F irs t N ational B ank,
Philip; M attson, Ralph, A ssistan t M an
ager, F irs t N ational Bank, H ot
Springs; R em pfer, W illiam C., and
wife, P resident, South D akota B ank
ers Association; C ashier, F irs t N ation
al Bank, P arkston; Roesch, F red, As
sista n t V ice-President, F irs t N ational
Bank, Aberdeen.
IN W A S H I N G T O N
(C ontinued from page 2 2 )
est rates possible. T hey said th a t re
duction of land b an k in te re st rates to
th e p resen t level w as b u t a tem p o rary
m easure and could be continued only
by an n u al app ro p riatio n s of $38,000,000 to m ake up th e co n tract ra te of 5
p er cent. I t w as pointed out th a t th e
bill w ill n ot affect in term ed iate credit
banks, production cred it corporations
or associations, or banks for coopera
tives.
Denounces Farm Policy
A n atem p t is being m ade by Senator
Guy M. G illette (D., Iow a) and four
o th er Senators to resto re th e F arm
C redit A d m inistration to its independ
en t status. A change in th e agency’s
credit policies w as denounced by Al
b e rt S. Goss upon his resig n atio n as
L and B ank exam iner. Goss w as not
the first high FCA official to resign
since A g ricu ltu re S ecretary H enry
W allace took control of th e adm inis
tration. T he new policies have a ten d
ency tow ard “a type of so-called credit
in w hich personal resp o n sib ility is
denied . . . and th e G overnm ent
pays th e loss w hen ev er th e bo rro w er
w an ts to qu it paying,” Goss declared.
F a rm e rs should n ot forget, he said,
th a t “lending th em deeper into debt is
no su b stitu te for lack of incom e.” Dr.
A. G. Black, new ly appointed FCA
governor, recen tly explained th e FCA
is “tak in g th e broad social view th a t
its d u ty is to help farm ers become
STATEMENT OF CONDITION OF
First National Bank and Trust Company
o f Minneapolis
as at March 26> 1940
*
R
e s o u r c e s
Cash on Hand and Due from Banks
U. S. Government Bonds (Direct or Fully
G u a r a n t e e d ) .......................................
Guaranty Fund (U. S. Bonds
with Commissioner of Banks) .
Loans and Discounts . . . . . .
Other Bonds and Securities
. . . .
O v e r d r a f t s .......................................................
Bank B u ild in g s .......................................
Customers’ Acceptance Liability
Bankers’ Acceptances Purchased
Interest Earned but not Collected .
.
$63,289,264.60
51,888,320.00
600,000.00
39,004,132.30
7,849,686.82
5,198.92
694,089.12
708,414.05
514,228.17
533,846.72
$165,087,180.70
L
ia b i l i t i e s
Capital S t o c k ...............................................
Surplus ...............................................................
Undivided P r o f i t s .......................................
Reserve for Interest, Expenses, Taxes, etc.
Interest Collected but not Earned .
Letters of Credit and Acceptances .
D e p o s i t s .......................................................
.
.
$ 6,000,000.00
6,000,000.00
1,955,147.57
1,419,279.63
136,061.89
708,414.05
148,868,277.56
$165,087,180.70
V . S . Government O bligations an d other secu rities carried at $ 2 1 ,4 43,609.67 in the foregoing state
m ent are deposited to secure P u b lic F unds an d fo r other pu rposes requ ired by L aw .
Member Fiderai Deposit Insurance Corporation
Affiliated
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
with
F I R S T
B A N K
S T O C K
C O R P O R A T I O N
50
• M I N N
E S O T A
N E W S
m any nations of the w orld,” th e P resi
d en t said. “T h at program has bro u g h t
re su lts—resu lts not only in b etter
m ark ets for our in d u strial goods, b u t
in b e tte r m ark ets for our farm goods—
re su lts m athem atically proved in term s
of pounds and bushels and dollars and
cents. If Congress consents we shall
continue th a t useful w ork.”
landow ners, even if it has to adopt
special m easures to help th em .”
In review ing the farm program of
the last seven y ears P re sid e n t Roose
velt u pheld th e reciprocal tra d e policy
as a definite aid to th e farm er.
“T hrough our reciprocal trad e p ro
gram , we have trie d to spread our
good-neighbor philosophy t h r o u g h
Close Contact with the
Majority of
Michigan’s Important Industries
☆
NATIONAL BANK
OF D E T R O I T
DETROIT,
MICHIGAN
M em b e r F e d e ra l D e p o sit In s u ra n c e C o rp o ra tio n
W h e re there’s Inventory —
there’s O P P O R T U N I T Y
for Attractive L o a n s
Alert bankers everywhere are
impressing upon employes the
desirability of helping locate
manufacturers or producers
with inventory and in the
market for money. Why not
talk over with the DouglasGuardian representative who
lives in or visits your city,
how attractive loans based on
Field Warehousing are located
and serviced? Over 17 years’
experience. Our FR EE Book
let gladly mailed on request.
Fieldf^Wa rehousing
Inf Douglas—Guardian
OOUGLAS-GUARDIAN WAREHOUSE CORPORATION
N a t i o n - w i d e Field W a r e h o u s i n g S e r v i c e
100 W. M onroe St., Chicago, 111.
118 N o. F ron t St., New Orleans, La.
N e w Y o rk , N . Y .
R o c h e s te r , N . Y .
S p r in g field , M o.
S an F r a n c is c o , C a lif.
E a s to n , M d.
C lev e la n d , O hio
N orthw estern B anker
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Federal Reserve Bank of St. Louis
D a lla s , T e x a s
C in c in n a ti, Ohio
L o s A n g e le s , C a lif.
A tla n ta , Ga.
A p ril Í9 M
T am p a, F la .
M e m p h is, T en n .
P o r tla n d , Ore.
Trade A greem ents
Passed by th e H ouse and approved
by the Senate Finance Com m ittee, the
bill to extend the T rade A greem ents
Act aw aits approval by th e Senate
w hich is expected, and w ith o u t change
b u t not w ith o u t opposition. Senator
Joseph C. O’M ahoney (D., AVyo.)
charged th e pacts are “clearly uncon
stitu tio n al.” A sserting th a t th ey are
eith er treaties or rev en u e laws, he
said if th ey are treaties th ey m u st be
ratified by th e Senate and if th ey are
revenue law s th ey m u st originate in
th e House. He explained th a t w hile
Congress can delegate its a u th o rity if
it sets up certain stan d ard s restrictin g
its use, “you w ill search th is bill in
v ain for a single stan d ard to he im
posed by Congress.”
Senator P re n tiss M. B row n (D.
Mich.) said he m ight attach a rid er
calling for tax atio n of fu tu re issues of
F ed eral securities if he can determ ine
w h eth er th a t bill can be considered a
tax m easure.
The U nited States has inform ed the
Inter-A m erican F inancial A dvisory
Com m ittee th a t it w ill join in estab
lishing a $100,000,000 Inter-A m erican
B ank to develop econom ic and finan
cial cooperation am ong th e A m erican
nations. T his co u n try is scheduled to
take at least fifty shares of stock in the
b ank at $100,000 per share.
Commerce D epartm ent experts, af
te r a six-m onth study, rep o rted th ere
is little chance of increasing trad e be
tw een th e U nited States and South
A m erica unless financial and political
b a rrie rs to in v estm en t are rem oved.
A greeing th a t in order to increase
trad e the p u rchasing pow er of South
A m erican custom ers m u st be boosted,
and ru lin g out giving or lending them
m oney as unfeasible on a sizable scale,
the experts decided th e U nited States
m ust increase its p urchases to b ring
about a b etter balance or em b ark on
a program of investm ent. T hey found
South A m ericans w ere buying m ore
from us th a n we w ere b u ying from
them and paying for th e excess in
gold or silver.
Financial
T here is a vigorous cam paign in
Congress to have th e G overnm ent stop
buying foreign gold and silver. Sena
to r E lm er Thom as (D., Okla.) pro
poses re d istrib u tio n of th e gold bought
u n d er th e New Deal program . T hom as’
bill w ould em pow er th e E x port-Im
port B ank to lend or sell th e 18 bil
lion 188 m illion in G overnm ent gold
am ong th e “solvent n atio n s” of th e
w orld. T hom as explained th a t at the
(T u rn to page 53, please)
51
T w i n C it y N e w s
M ER IC A ’S econom ic system got a
By James M. Sutherland
thorough “going-over” a t th e
Sp ecia l Co rre sp o n d e n t
th ird a n n u al m em ber b an k conference
of th e M inneapolis F ed eral R eserve
b an k in M inneapolis M arch 16.
m ay be expected to produce some vio
A nd th e 840 b an k ers w ho atten d ed
len t ups and dow ns in our economic
—ap p ro x im ately 10 0 m ore th a n last
situation, th e conferees w ere told, ju st
y e a r—w en t aw ay w ith m an y of th e
questions tro u b lin g th e ir m inds a n as th ey have in th e im m ediate past,
b u t this is n o thing to cause genuine
sw ered, or at least as w ell answ ered as
even ex p ert econom ists could be ex concern.
E qualization of th e ta x load w as
pected to do.
stressed in th e discussion, th e econo
F o r th e “piece de re sista n c e ” on th is
y e a r’s conference pro g ram w as a m ists pointing out th a t th e sh ifting of
m eaty ro u n d table discussion con m uch of th e bu rd en now borne by
business and in d u stry to incom es of
ducted by th ree non-banking m inds,
individuals in the fair to large income
tra in e d in econom ics and v irtu a lly
classes
w ould help stim u late produc
“to p s” in th e ir field.
tion and th ereb y increase em ploy
T hey w ere W illard E. A tk in s and
A nton F ried rich of N ew Y ork U ni m ent.
The p resen t business situation, they
v e rsity and M ontfort Jon es of th e U ni
adm itted, is not th e best, nor is th ere
v e rsity of P ittsb u rg h .
m uch likelihood of any g reat u p tu rn .
T his trio, incidentally, w ith W illiam
John N. P eyton , presid en t of the
A. Irw in, a ssista n t d irecto r of the
M inneapolis F ed eral R eserve Bank,
A.B.A. G raduate School of B anking,
w elcom ed th e ban k ers from M inne
conducted a sim ilar panel discussion
a t th e E a ste rn Regional C onference of sota, N orth and South Dakota, n o rth
th e A m erican B an k ers A ssociation in w e stern W isconsin and u p p er M ichi
g an—all states in th e N inth d istrict b u t
N ew Y ork th e w eek before.
M ontana, w hich w ill have its own con
T he discussion a t th e M inneapolis
ference later.
conference w as b u ilt chiefly around
H e cited th e co ntribution th e inde
q uestions w hich th e listen ers th e m
selves had su b m itted earlier at th e re p en d en t b an king system had m ade to
business and ag ricu ltu ral progress in
quest of th e host R eserve B ank. But
A m erica and expressed hope th a t sys
if th e questions failed to touch any
tem w ill continue.
v ital poin t w hich th e speak ers felt
should be covered, th ey b ro u g h t it up
As evidence of the grow ing im por
them selves.
tance of the federal reserv e system , he
C ertain salien t facts w ere em p h a pointed to th e fact th a t 16 banks
sized in th e discussion: first, th a t re joined th e system in 1939 in th e n in th
covery in A m erica is p rim a rily a do d istrict alone, com pared w ith 1 2 in
m estic problem ; second, th a t condi 1938. T h at these conferences are devel
oping n ational in te re st in banking cir
tions are basically sound; th ird , th a t
problem s m ostly in need of our e a rn cles w as evidenced in th e presence at
est a tte n tio n a t p re se n t are th e ta x sit th is y e a r’s session of tw o officials of the
federal reserve board at W ashington—
uation, th e labor situation, and th e ill
John M cKee, m em ber of the board of
w ill and suspicions existin g betw een
governors, and C hester M orrill, secre
vario u s econom ic groups, h in d erin g
ta ry of th e board.
w idespread action aim ed a t recovery.
T heir presence gave added im por
C hanges in th e foreign situ atio n
A
tance to the inform al welcome given
to George W astvedt, cashier of the
State B ank of Haw ley, Minn. F or this
bank is th e new est m em ber bank in
the district, having joined only a few
days before the conference.
The welcom e to Mr. W astvedt w as
rep eated in m any form s and m any
tim es over du rin g th e m orning hours
th a t preceded th e first form al session
of the conference.
F o r th e necessary reg istratio n for
m alities w ere conducted a t th e R e
serve bank, w hich m ade a so rt of
This is the season for
marketing
feed lot livestock
A n a c c o u n t w ith u s w ill b e p r o f it
a b le to a n y b a n k lo c a t e d in tlie
f e e d i n g te r r ito r y tr ib u ta r y to th is
m a r k e t.
W e in v ite y o u
o u r f a c ilit ie s .
to m a k e u s e o f
W e In vite Y our A ccount
STOCK YARDS
NATIONAL BANK
SOUTH ST. PAUL, MINNESOTA
M e m b e r F e d e r a l D e p o s it In s u r a n c e
C o rp o ra tio n
N orthw estern Ranker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
A pril Í9't0
52
• MINNESOTA
“open h o u se” out of th e w hole affair.
T his period th u s gave b an k ers th e op
p o rtu n ity to ren ew old frien d sh ip and
cem ent m any new ones.
Follow ing th e luncheon and round
table discussion, Dr. J. O. P errine of
A m erican T elephone & T elegraph
com pany’s research division, New
York, explained new developm ents in
the science of telephone com m unica
tion.
NEWS
A reception followed, at w hich hosts
w ere P resid en t Peyton, executives and
d irectors of th e bank. The e n te rta in
m en t program concluded w ith dinner
and a view ing of th e fam ous e n te r
tain m ent feature, “Ice Follies of 1940.”
N orth w estern State Bank, St. Paul,
has increased its capital stock from
$25,000 to $50,000.
N am ed deputy chairm an of the M in
neapolis F ederal R eserve ban k for the
•
re st of 1940 is R oger B. Shepard, p resi
dent of F inch, Van Slyck & McConville, St. P aul w holesale house. His
ap p ointm ent fills th e vacancy created
w hen Dean W. C. Coffey of th e U ni
v ersity of M innesota d ep artm en t of ag
ricu ltu re as elevated to the b a n k ’s
chairm anship.
China R. Clarke, form er Sioux Falls,
S. D., and G reat Falls, Mont., b a n k e r
has tak en over his new duties in M in
neapolis as m anager of th e Recon
stru ctio n F inance C orporation in th e
N in th F ed eral R eserve D istrict.
He succeeds th e late Ben C. M ay
nard, w ho died in F eb ru ary . Mr.
Clarke cam e here from W ashington,
w here he w as an exam iner in the
RFC office for several years.
L ouis A. E gler, d irector of C entral
N ational Bank, M inneapolis, for 25
years, has been nam ed p resid en t of
th e bank. F o r 41 y ears he has been
associated w ith E g ler & A nderson,
fu rn itu re and h ard w are com pany.
O ther officers nam ed by th e d irect
ors w ere Carl P. Gerber and Joseph D.
H usbands, vice presidents; Theodore
W . L arson, cashier, and H enry M.
B run sell, a ssistan t cashier.
C anadian business of Inv esto rs Syn
dicate of M inneapolis is scheduled to
be tak en over by a new ly incorporated
concern, Inv esto rs Syndicate of Can
ada, Ltd., w ith head offices in W in n i
peg, according to E. E. Crabb, p resi
dent.
B U SIN E SS T REN D
(C ontinued from page 28)
be forced to speed up th e ir acquisition
of w ar m aterials, m any of w hich w ill
be obtained directly or indirectly from
th e U nited States.
N evertheless th is m ay tak e some
tim e, and a t th e m om ent th ere is great
u n c e rta in ty am ong busines sta tisti
cians and econom ists over th e im
m ediate outlook. Peace ru m o rs have
u n settled th e stock m arket, and w hen
th e m a rk e t is u n settled th e tendency
is for business executives to be w ary
about m aking longer-term com m it
m ents. C onsequently th e latest sta tis
tics have show n a fu rth e r m oderate
dow nw ard tre n d in th e value of new
orders received by m an u factu rers, and
inventories have continued to increase.
It m ay be several m onths before the
outlook becom es clear enough to
b rin g about a resu m p tio n of th e b u y
ing m ovem ents th a t b ro u g h t about
the g reat increase in activ ity th a t
occurred in th e last four m o n th s of
1939.
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A p ril Í9W
53
NORTH
DAKOTA
NEWS
C. C. W A T T A M
S e c r e ta r y
F arg o
F R A N K R. SCOTT
P r e s id e n t
F a rg o
Jamestown Meeting
T he N o rth D akota Council of th e
C ham ber of Com m erce of th e U nited
S tates, in cooperation w ith th e F ed
e ra tio n of N o rth D akota S tate Asso
ciation and th e G reater N o rth D akota
A ssociation held a m eeting a t Jam es
to w n recently.
T h ere w ere m an y
th in g s of in te re st to b a n k e rs discussed
a t th is m eeting.
Pioneer Dies
Jam es T. M cCulloch, 81, pioneer law
y e r of W a sh b u rn and a fo rm er s ta te ’s
atto rn e y of M cLean county, died re
cently a t th e fam ily hom e th ere. In
1902 M cCulloch w as one of th e org an
izers of th e F irs t N ational B ank in
W ash b u rn an d for a n u m b er of y ears
served as one of its directors, a fte r
w ard s being succeeded by h is son, th e
late H u g h McCulloch.
New Bank
T he new ly organized S ecurity B ank
of H ebron h as opened its doors w hile
depositors of th e F irs t S tate B ank of
H eb ro n an d th e S tate B ank of Glen
U llin w ere notified th a t those tw o in
stitu tio n s have sta rte d v o lu n ta ry liqui
d ation an d are w ith d raw in g from ac
tiv e business.
T he new b an k succeeds th e form er
S ecurity N ational B ank of T aylor and
h as opened p aying and receiving sta
tions a t b o th T aylor and Glen U llin
to a ssu re m ain ten an ce of ban k in g
services a t th re e points.
T he new bank, organized w ith a cap
ital of $40,000 and a su rp lu s of $10,000,
is headed by: presid en t, H erm an
Leutz; vice president, F re d Deeken;
an d cashier, T. F. L eutz, an d located
in th e first S tate B an k ’s q u arters.
Buys Hettinger Bank
H. W. C larkson of Buffalo, p resid en t
of th e B ank of Belle F o u rch e and
th e F irs t S tate B ank of Buffalo, S. D.,
becam e p re sid e n t of th e F ir s t N a
tio n al B an k of H ettin g er, N. D., fol
low ing a tra n sa c tio n w hich changed
ow n ersh ip of th e bank.
O ther officers of th e ban k w ill be
J. F. Tracy, vice president; L. V. Skogland, executive vice president; L. C.
M ansing, cashier; o th er directors will
be F. M. C larkson of Belle F ourche,
G. D. McMahon, Buffalo, S. D., and
Joe Tenous.
Remodeled
B anking and o th er activities w ere
in progress recen tly a t th e Goose
R iver B ank in M ayville as w orkm en
rem odeled th e place and bu ilt p riv
ate offices for officers of th e in stitu
tion. T he change w as m ade in order
to give custom ers m ore convenience.
IN W A S H IN G T O N
(C ontinued from page 50)
p re sen t ra te of buying th is co untry
will control th e en tire available supply
of th e w o rld ’s gold in th ree years.
Now th a t Congress has passed the
bill increasing th e E x p ort-Im port
B ank’s capital by $100,000,000 and p e r
m ittin g a $20,000,000 loan to F in lan d
th e w a r’s ending has raised some ques
tions as to w h eth er th e loan w ill be
m ade. T here is probably a m uch b et
te r chance now of gettin g th e m oney
back if th e loan is m ade th a n th ere
w ould had th e w ar continued.
C harging th a t of $7,000,000,000 p u t
into in v estm en t tru s ts investors have
lost $3,000,000,000, C hairm an W agner
of th e Senate B anking and C urrency
C om m ittee has introduced a bill for
reg ulation of such tru s ts by th e Se
cu rities and E xchange Commission.
A buses and deficiencies of th e tru sts,
W agner said, w ere p e rp etrated “d u r
ing th e v ery tim e th a t th e SEC w as
conducting its com prehensive study of
in v estm en t tru sts and in v estm en t com
panies.” The bill includes in v estm en t
tru sts, com panies and counselors and
in v estm en t advisory services.
The Mead bill to create an In d u s
tria l L oan C orporation to aid sm all
b u siness m en has found favor w ith
W oodlief Thom as, a ssistan t director
of th e F ed eral R eserve Board Division
of R esearch and Statistics.
“Such a schem e w ould provide a
m echanism w hereby sm all local banks
could m ake or particip ate in th e m ak
ing of loans of a long-term n atu re at
reasonable rates, obtain th e special
ized services needed on such loans,
and safeguard them selves against u n
due risk s,” T hom as declared.
Col. P hilip Flem ing, now recognized
W age-H our adm in istrato r, in tak in g
his oath of office indicated th e division
“can go in to ” questions of redefining
exem ptions for ad m in istrativ e and ex
ecutive positions in banks. H earings
are expected to begin du rin g April.
The dow nw ard tre n d of business
since th e first of th e y ear has th e Ad
m in istratio n a little bit concerned. B ut
on th e o ther hand, th e possibility of
an o th er w ar boom let is not an alto
g eth er pleasan t thought. It seem s as
if even th e New D ealers in th is elec
tion y ear m ight be beginning to feel
a lack of “c e rta in ty ” and “confidence”.
D efending F ed eral control over the
b anking system , a recen t re p o rt of the
A ttorney G eneral’s Com m ittee on Ad
m in istrativ e P rocedure observed th a t
“although th ere is in fact an iron hand
w ith in th e velvet glove of th e banking
au thorities, th e glove is seldom re
m oved.”
Economic Anemia
“The key log of th e economic jam
in th e stream of A m erican priv ate en
terp rise is tax atio n ,” says th e A m er
ican T axpayers A ssociation, a non
p artisa n organization m ade up of pub
lic officials, business m en and o thers
w ith an in te re st in sound and solvent
governm ent. “T he p e rsiste n t decline
in th e A m erican scale of living since
1929 is due as m uch to th e hidden h and
of taxation as to any o th er single
cause. One of th e g reatest national
econom ies of all tim e is suffering from
p ro tracted pernicious anem ia caused
by taxes—a form of economic blood
letting. A lthough a v ast portion of
our population clings to th e naive be
lief th a t th e nation can spend itself
into prosperity, th ey know th a t a m an
cannot d rin k him self sober.”
The A ssociation doesn’t sim ply kick
against high taxes—instead it cites
statistics and p resen ts a definite pro
gram looking tow ard national fiscal
sanity. It advocates a reduction in the
rates of incom e tax levies in higher
brack ets in order to produce m ore
revenue for g overnm ent by releasing
for productive purposes capital now
frozen. It advocates the elim ination
of spending not necessary for c a rry
ing out th e tru e purposes of govern
m en t as provided by th e constitution,
to th e end th a t o th er taxes m ay be
reduced and some elim inated. A nd it
advocates a constitutional am endm ent
placing a m axim um tax lim it upon in
comes, gifts and inheritances.
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A p ril 19W
54
MONTANA NEWS
ET H E L W. W ALKER
S e c r e ta r y - T r e a s u r e r
H e le n a
O. M . J O R G E N S O N
P r e s id e n t
B illin g s
and g ra n t such loans. F o r instance,
loans secured by th e cash su rre n d e r
B.
G. Paige, cashier of th e R onan value of life in su ran ce policies are not
S tate B ank for th e p ast five years, only lucrative, b u t are easy to find and
left recen tly for P h ilip sb u rg w here he p resen t w h a t am ounts practically to
is establishing a new bank. H. R. cash as collateral. Most businessm en
R esner of R onan w ill fill th e vacancy have life in su ran ce to some extent. W e
left in th e b an k in Ronan.
have found th a t d u rin g th e depression
Mr. Paige is also th e p resid en t of years m any of these businessm en
th e R onan K iw anis club, of w hich he found it necessary to borrow from th e
is a c h a rte r m em ber.
life in su ran ce com panies against the
Mrs. Paige an d th e ir son, Ronnie, cash su rre n d e r value of th e ir policies.
w ill join Mr. Paige w ith in a sh o rt In a g reat m any instances such loans
tim e.
are still existing in th e original
am ounts w ith in te re st at th e ra te of
Banker Dies
6 p e r cent in m ost cases. I t has been
R obert P. A ter, 71, pioneer H insdale found th a t such businessm en are sus
resid e n t and vice p resid en t of th e ceptible to th e suggestion th a t th e
F irs t N ational B ank, died a t his hom e b an k tak e over such loans even at rates
recently. I t w as sudden, th e re su lt com parable to those being charged by
of coronary throm bosis, a blood clot th e in su ran ce com panies, although in
in th e h eart. Mr. A ter h ad been in come cases it m ight be necessary to
poor h e a lth for several m onths. His give th e added inducem ent of a low er
death cam e exactly 20 days a fte r th a t ra te in order to obtain th e loan.
“Loans to such m en p re se n t several
of Mrs. A ter.
He w as one of th e founders of th e advantages, not th e least of w hich is
F irs t N ational B ank of H insdale, th a t th e b ank is at all tim es in th e
w hich opened its doors in 1917, and position of th e possibility of liquidat
served as a directo r since its found ing th e loan for 10 0 cents on th e dol
ing. F o r th e p ast several y ears he lar. The idea of such a loan is easy to
sell to th e individual if one has a little
had served as vice president.
im agination and s o m e persuasive
pow er.
Unusual Loans for
“A p ersonal loan d ep artm en t is a n
Country Banks
o th er broader service, n ot usually
C ountry b anks are on th e lookout found in th e p ast in a co u n try bank
for loans, and h ere are som e sugges w hich m ight be used as a m eans of
tions from T. A. Glenn, Jr., p resid en t adding to our n et earnings.
“A th ird type of loan n ot u su al in
of th e Peoples N ational B ank of N or
a co u n try b an k is one secured by
ristow n, P ennsylvania. He says:
“W ith o u t adding to a b a n k ’s p erso n w arehouse receipts th ro u g h th e use of
nel and w ith o u t additional expendi field w arehousing. I recognize th ere
tu re s of any g re a t am o u n t for equip are m any technical details necessary
m ent or supplies, it is e n tire ly possible in connection w ith th e use of th is type
for an y b an k to increase its loan p o rt of collateral, b u t th e re are m any such
loans available for th e seeking. T here
folio th ro u g h th e b ro ad en in g of th e
services it p resen ts to th e public in th e is p len ty of lite ra tu re on th e subject
acceptance of several u n u su al types of and I am sure th a t yo u r city corre
spon d ent banks w ill be glad to assist
loans n o t u su ally found in a co u n try
bank. T hese types of loans are by no in w o rk in g out th e details of th e h a n
m eans u n fam iliar to our city b reth ren , dling of field w arehousing loans.
b u t to m any of th e c o u n try b an k ers T h ro u gh th e use of th is m edium , th e
co u n try b an k can be of b e tte r service
th e y are n o th in g b u t so m an y w ords.
“A little stu d y and caution is all th a t to th e com m unity in w hich it is lo
is needed in ord er to successfully seek cated and again th ro u g h broadening
Starts New Bank
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A p ril 19W
its services it m ay add a lucrative asset
to its portfolio.
“A nother suggestion for an u n u su al
type of loan in th e co u n try b an k is one
secured by assignm ent of accounts re
ceivable. H eretofore b anks have looked
upon th e assignm ent of accounts re
ceivable as m ore or less a last re so rt
in case of an unsecured loan th a t has
gone bad, b u t m an y banks are recog
nizing th a t additional credit, beyond
w h at m ight n o rm ally be g ran ted on a
statem ent, can be extended th ro u g h
th e use of such assets and are actively
seeking such loans.
T m ight m ake th e suggestion th a t a
co u n try b an k establish a tra v e l d e p a rt
m ent, m aking arran g em en ts th ro u g h
its city correspondent or some re p u
table trav el agency. Such a d e p a rt
m ent can be established w ith th e use
of v ery little of th e officers’ tim e, no
additional space or equipm ent, and
th e re could be added to th e b an k ’s
profits incom e w hich m ight norm ally
go to som eone else, and usually som e
one out of th e com m unity in w hich th e
b ank is serving.
“A nother type of service w hich is
quite p o pular in th e city ban k s and
w hich has n ot been adopted to a g reat
degree in th e co u n try banks, is th e
‘pay as you go’ checking accounts. I
am n ot discussing th e pros and cons
of th e various m ethods of operating
such accounts. My th o u g h t is th a t
here is an u n u su al service and one
w hich m akes available to th e low in
come group ban k in g services w hich
w ould not be available on any o th er
basis. B anks using such plans rep o rt
th a t th e y are profitable.”
Dates Changed
In order th a t R obert M. H anes, p res
ident of th e A m erican B ankers Asso
ciation, m ight appear on th e program ,
th e dates of th e Colorado B ankers Ass o c i a t i o n convention have been
changed to Ju n e 19th, 20th and 21st,
from Ju n e 21st and 22nd, as originally
announced. The first business session
w ill be held at eight in th e evening of
Ju n e 19th, at th e S tanley Hotel, E stes
P ark, Colorado.
Cute Sayings Department
The Long Island society m atro n
arriv ed hom e late one n ig h t an d dis
covered th a t h e r little son h ad been
v ery naughty. “I ’m sorry, darling,”
she said to him , “b u t you have been
a bad boy and m o th er m u st p u n ish
you. Go out in th e y ard and find me
a sw itch.” The kid disappeared and
re tu rn e d later, begrim ed and w eary.
H anding his m o th er a large rock, he
said, “Mom, I couldn’t find th a t sw itch,
b u t h e re ’s a rock you can th ro w at
m e.”
55
IOWA NEWS
C. R . G O S S E T T
P r e s id e n t
S io u x C ity
FRAN K W A RN ER
S e c r e ta r y
D es M o in es
Bank Officer
Final Dividend
Mrs. W. C. S tuckslager of L isbon
has succeeded R. B. M cConlogue as
an officer in both th e M ount V ernon
and L isbon banks, follow ing action by
th e d irecto rs of th e in stitu tio n s.
Mrs. S tuckslager w as elected vice
p re sid e n t of th e M ount V ernon B ank
an d T ru s t com pany and w as nam ed
p resid en t of th e L isbon B ank and
T ru st com pany.
McConlogue had
held both positions.
Tw enty-fifth and final re p o rt in the
receivership of the Coggon State B ank
w as approved recently. The court
approved final d istrib u tio n including
a first and final dividend of 19.43 per
cent or $29.94 on cred ito r’s claim s and
a last dividend of 11.846 p er cent or
$14,871.77 on depositors’ claims.
The corporation know n as th e Cog
gon S tate B ank w as dissolved by the
o rder and th e receiver w as authorized
to deposit unclaim ed funds w ith the
co urt clerk. D. W. Bates w as receiver
an d O. U. Conwell, exam iner-in-charge.
W apello Meeting
T here w ere 74 p re se n t a t th e LouisaW ashington C ounty B an k ers associa
tion m eeting at w hich th e S tate B ank
of W apello staff m em bers w ere hosts.
A tu rk e y d in n e r w as served. F ra n k
Crone, executive vice president, N a
tio n al B ank of W ashington, p resid en t
of th e association, presided. The g uest
sp eak er w as F. K. Schaefer, Scattergood hostel, now connected w ith th e
research d ep artm en t, U n iv ersity of
Iowa.
Election
A t a m eeting of th e board of di
recto rs of th e C om m unity Savings
B ank, Edgew ood, new officers of th e
in stitu tio n w ere elected for th e com
ing year.
P. H. P eterson, cashier of Com m u
n ity Savings B ank, since Ja n u a ry , 1937,
w as relieved of his duties, and Jam es
F. A dam s elected to th e position.
R. E. A ru th r w as elected to th e
position of a ssista n t cashier, and Miss
E s th e r T h u rn , bookkeeper.
Isaac T h u rn and T. W. L ich ter w ill
serve th e b an k as p resid en t and vice
p resid en t respectively, for an o th e r
year.
On Vacation
F re d H enem an, p resid en t of the
F irs t N ational Bank, M ason City, Mrs.
H enem an and th e ir daughter, M ary
Alice are on a th ree w eeks’ vacation
trip th ro u g h so u th ern and eastern
states. A fter spending some tim e in
th e south th e H enem ans plan to sw ing
eastw ard to W ashington, D. C., New
Y ork and o ther points.
Nyemaster Dies
The m any b an k er friends of Ray
N yem aster w ere shocked recently to
learn of his sudden death from a h e a rt
attack. Mr. N yem aster has been m ak
ing his hom e in Des Moines in recent
m onths w here he has been serving
as a tru ste e of th e Royal U nion fund
com posed of investm ents of th e form er
Royal U nion Life In su ran ce com pany.
He died at his hotel. H e w as presi
dent of the Iow a B ankers association
in 1928-1929. F o r m any y ears he w as
vice presid en t of th e old A m erican
Com m ercial T ru st & Savings B ank at
D avenport. He is survived by his son,
Ray, jr., w ho is practicing law in Des
Moines.
Remodeled
A rem odeling and redecorating
program has been com pleted on the
in terio r of th e H ancock C ounty N a
tional Bank, G arner, and th e room
now has a com plete m odern and a t
tractiv e atm osphere.
All grill w ork w hich has been in
use since th e ban k opened six years
ago w as rem oved, and in its place are
high counters w ith enclosures encased
in plate glass. The new fixtures p e r
m it m ore privacy and a m ore personal
arran g em en t for b ank em ployes and
patrons.
W alls of th e room
p ainted ivory and buff,
tive m onogram gracing
V enetian blinds have
at th e windows.
have been re
w ith an a ttra c
th e n o rth wall.
been installed
F lo u rescen t lighting, w hich is called
th e closet approach to daylight ever
perfected, is used th ro u g h o u t th e
building, and in addition new lig h t
fixtures are now in use. The F ish e r
Company, Charles City, had charge
of the w ork.
Assistant Cashier
W. H ow ard S tew art, for th e last 1 2
y ears em ployed in th e bookkeeping
d e p a rtm e n t of th e F irs t N ational B ank
a t M ason City, has been appointed
a ssista n t cashier of th e N o rth w est
Savings B ank th ere.
He fills the
vacancy created by th e resig n atio n of
I. C. Jensen.
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The recen tly rem odeled lobby and officers’ quarters o f the H ancock County
N atio n a l B ank, o f Garner
N orthw estern Banker
A pril Î940
MILLIONS OF DOLLARS
ll ' inMtiwiiijftj
T o p , L e ft — T h e B a n k e r s L if e C o m p a n y in
D e s M o in e s h a s j u s t m o v e d in to it s m a g n ifi
c e n t n e w h o m e office b u il d in g . • R ig h t —
“ I o w a ’s T a l l e s t B u il d in g ” h o u s e s th e h e m e
office o f th e E q u i ta b l e L if e of Io w a in D es
M o in e s . • C enter, L e ft — T h e M ill O w n e rs
M u tu a l F ir e I n s u r a n c e C o m p a n y m o v e d in to
it s o w n h o m e office o u iid in g in D e s M o in e s
in O c to b e r, 1939. •
R ig h t — A n o th e r n ew
h o m e office b u il d in g in D e s M o in e s is th a t
o f th e W e s t e r n M u tu a l F ir e I n s u r a n c e C o m
p a n y . • B o tto m — T h e L u t h e r a n M u tu a l L if e
Digitized
I n s u r a n c e for
C oFRASER
m p a n y o c c u p ie s th i s h a n d s o m e
h
o m e office b u il d in g in W a v e r ly , Io w a .
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Federal Reserve Bank of St. Louis
A YEAR....
John Jones wants to build an estate for his family. Joe Smith
wants an assured income for old age. Bill Brown wants to be
protected from loss should fire destroy his store building. And
so it goes. In consequence, insurance is a major Iowa business.
Iowa, itself, because of good insurance laws, is home of io
legal reserve life insurance companies, two of which hold high
ranking in the country. Latest figures show these companies
have $ 1 ,7 3 2 , 1 4 7 ,3 9 2 of insurance in force. In 1 9 3 8 , they had
an income of $ 8 7 ,8 0 3 ,8 6 6 .5 9 .
Also headquartered in Iowa are 13 fire insurance companies,
which, on December 3 1 , 1 9 3 8 , had total premiums in force of
$7 ,3 r 3 ,8 4 9 .3 6 . And sixteen Iowa casualty companies on the
same date had total premiums in force of $5 , 1 1 4 ,7 0 1 .6 9 . Many
small county mutual companies also do a large but entirely local
business.
Iowa companies write about 1 / 5 of the total insurance busi
ness in the state. Ten Iowa and 83 non-Iowa legal reserve com
panies, and three Iowa fraternal beneficiary societies and 32
non-Iowa societies had life insurance of $ 1 ,8 1 4 ,820 ,7 6 2 .6 4 in
force in the state on December 3 1 , 1 9 3 8 . Approximately onesixth of it is in Iowa companies.
Average figures put the annual premiums on this insurance
at approximately $4 9 ,000 ,000 .
In 1 9 3 8 , Iowans paid $ 1 3 ,4 9 6 ,28 4.0 4 for fire insurance—about
one-fifth to Iowa companies. In the same year, casualty insur
ance cost $ 1 3 , 1 6 0 ,5 9 8 .1 7 , of which about one-fourth was paid
to Iowa companies.
Iowa’s insurance hill well exceeds $7 5 ,000,000 per year.
Insurance provides a big source of income for Iowa families.
Home offices employ nearly 5,000 persons, paying them approxi
mately $ 1 0 ,000,000 annually. It is estimated that agency offices,
both for home and foreign companies, provide income for more
than 2 0 ,000 . In addition, many adjusters, rating bureaus, at
torneys and others derive all or part of their income from insur
ance.
Insurance has become a big business in Iowa—a major source
of Iowa income. Iowa banks can be justly proud of the part
they have played in this development.
Bankers Trust Company is proud that it is able to serve a
number of Iowa insurance companies, as well as many Des
Moines agencies. Bankers Trust also is pleased to have the
opportunity of rendering effective service to many banks which
have named it their Des Moines correspondent.
BANKERS TRUST
COMPANY
6th and L o c u st Streets
Des M o i n e s , I owa
M e m b e r F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a tio n
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M e m b e r F e d e r a l D e s e r v e S y s te m
58
*
IOWA
NEWS
•
acq uaintance and a varied and suc
cessful business career.
Elected Vice President
H.
J. Buell, w ho has been a d irector
in th e F a rm e rs N ational B ank, W eb
Interest Rates
ste r City, since 1933, has been elected
A new schedule of in te re st p ay
a vice p resid en t and has en tered th e
in stitu tio n to becom e active in its m ents on savings accounts w as th e
m anagem ent.
subject of discussion w hen the JackHe re ta in s th e S tar laundry, how son C ounty B an k ers’ association held
ever, w hich will be m anaged by his an inform al m eeting in th e Jackson
son, Joe, w ho has successfully carried State Savings B ank in M aquoketa. It
m uch of th e m an ag em en t th e re for w as pointed out th a t m ost banks in
several years.
Iow a are already operating on the sug
H. J. Buell is w ell fitted for active gested schedule, w hich w ould allow
bank m anagem ent. He has lived in for p aying tw o p er cent in te re st on the
the county all his life, has a wide first $2,500 or fraction thereof, one
p er cent on th e second $2,500 or frac
tion thereof, and no in te re st on th e
balance above $5,000 of savings ac
counts.
D. D. F u ller of M aquoketa presided
in th e absence of th e county presi
dent, W. L. W hite of Miles.
No
form al action w as taken, b u t each
b ank rep resen tativ e w as req u ested to
p resen t th e schedule to his board of
directors for consideration.
The
schedule, if adopted, w ill n ot go into
effect u n til Ju ly 1, 1940.
Quim by Office
C entral T ru st & Savings Bank,
Cherokee, is rem odeling th e old S tate
B ank a t Quim by into a m odern build
ing.
T he new office w ill be read y for
business sh o rtly afte r A pril 1st.
K now n as the old “W hite B ank,”
th e building has been idle for a n u m
b er of y ears follow ing closing of the
State B ank w hich w as organized in
1915. N ew fu rn itu re , co unters and
equipm ent are being installed in th e
new office.
New in Remsen
**... al wars
• ready
• to
¡sitare i lie b en efits...99
If you are interested in agriculture, why not have a Chicago
correspondent that speaks your language and knows your
problems ?
Why not be represented in the heart of the great middlewestern m arket -—- inside the Union Stock Y ards? Live
Stock National s specialized experience offers special cor
respondent advantages.
For 72 years, we have been in close and constant touch
with leading agricultural interests . . . and are always ready
to share the benefits of this association with those we serve.
May we tell you about the “plus’ values nearly 500 agri
cultural banks find here?
F rom W ilm ont, Minn., cam e N. P.
D oran to tak e th e position of a ssistan t
cashier of th e F a rm e rs Savings Bank,
Rem sen, to succeed O. H. H uewe, re
signed. Mr. D oran began w o rk in
th e b ank w hile Mr. H uew e rem ained
on d u ty u n til after all spring financial
settlem en ts w as out of th e way.
Mr. H uew e, n ative R em senite w ho
has been w ith th e b ank for 2 2 years,
has decided to en ter th e in surance
field.
W ith Lyons Bank
Sidney H all has accepted a position
w ith th e Iow a State Savings B ank in
Lyons. Mr. H all has been em ployed
in th e general office of th e E clipse
L um ber com pany a t Clinton and w as
form erly w ith th e Eclipse an d also
th e E ld er L um ber com pany at DeW itt.
F o r a nu m b er of years, Mr. H all
w orked for th e P eoples’ T ru st and
Savings B ank of Clinton and later for
th e state b anking departm ent.
Dies in Allerton
h iv e S to c k
National l l c t l l k
UNION
STOCK
of Chicago
YARDS
F u n e ra l services for
82, w ere held recen tly
A llerton. T his W ayne
died M arch 8 th. As a
Jo h n W hitley,
a t his hom e in
county pioneer
farm er, b an k er
Y O U R STATE BA N K ER S A S S O C IA T IO N
O FFIC IA L SAFE, V A U L T A N D
TIM ELO C K EXPERTS
F. E. DA VEN PO RT & CO .
MEMBER
FEDERAL
N orthw estern B anker
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Federal Reserve Bank of St. Louis
D E P O S I T
A p ril 19^0
I N S U R A N C E
C O R P O R A T I O N
OMAHA
59
— •
a n d a b o ster for A llerton, he w as
w ell know n in th is county.
H e h ad served as vice p resid en t
of th e S ecu rity S tate B ank for several
y ears, w as a d irecto r in th e b an k since
1925 an d w as alw ays devoted to its
b est in terest.
Nelson Is Cashier
J. A. Nelson, of Iow a F alls, w ho is
k n o w n in n o rth e rn Iow a in connec
tio n w ith his w ork as receiver for
closed banks, w ill engage in th e b a n k
ing b u siness for him self A pril 1st.
I O W A
N E W S
•
Iow a B usiness college in M arshall
tow n. Besides the m em bers of the
group a nu m b er of visiting ban k ers
from neighboring tow ns attended.
T his stu d y group, w hich m eets
every w eek for 2 1 w eeks du rin g the
w in ter m onths is composed of 19 bank
officers and em ployes in M arshalltow n,
E ldora, G rundy Center, Tam a, Belle
P laine and M elbourne. T he group is
stu dying econom ics th is year.
has been appointed city tre a su re r, suc
ceeding C. F. Sonntag, w ho has held
th a t position for m any years.
The change w as due to Sonntag’s
illness, w hich has prev en ted him from
keeping up his duties for m ore th a n
a m onth, city officials said.
A ppointm ent of H aller w as re tro
active to F e b ru a ry 1st. The position
pays $300 a year.
City Treasurer
R etu rn in g from th e ir yearly v isit to
Florida, the fam ily of F. A. Jones,
presid en t of th e T am a State Bank,
George S. H aller, teller in U nion
B ank & T ru st com pany of O ttum w a,
Returns from Florida
Year-Round Service
Correspondent service of the First National Bank
in Sioux City is not on a “one-time” basis. It is based
on the principle of permanent helpfulness.
Sincere, too, is our desire to have you profit from
a connection with this bank in Sioux City.
Let us help you with your Sioux City items.
J. A. N E L S O N
Mr. N elson w ill be cashier of the
F a rm e rs S tate B ank to be opened at
L uv ern e. T he p ast five y ears N elson
has been in th e em ploy of th e state
b anking d ep artm en t.
Mr. N elson has pu rch ased th e in
te re s t of E. H. D unigan of Som ers,
Iowa, w ho sta rte d th e o rganization of
th e F a rm e rs S tate B ank last D ecem
ber.
O F F IC E R S
A . S. H A N F O R D
P re s id e n t
A . G. S A M
V ic e P r e s i d e n t
J. P. H A IN E R
V ic e P r e s i d e n t
F R I T Z F R I T Z S O N , V ic e P r e s i d e n t &
J. R. G R A N IN G
A s s i s t a n t C a s h ie r
E . A. J O H N S O N
A s s i s t a n t C a s h ie r
J. T. G R A N T
A s s i s t a n t C a s h ie r
C a s h ie r
W ith Fort Madison Bank
L y n n A. Russell, b u siness m anager
of P arso n s college a t Fairfield, Iowa,
since last S eptem ber 1st, has resigned
to ta k e an executive position w ith
th e Lee C ounty Savings B ank a t F o rt
M adison.
R ussell, a n ativ e of N ew ton, for
m ore th a n 20 y ears w as w ith the
fo rm e r F irs t N ational B ank th ere. He
la te r serv ed as field re p re se n ta tiv e for
th e R econ stru ctio n F in an ce Corp.
Addresses A. I. B.
E. L. A nderson of th e federal reserv e
b a n k of Chicago, 111., ad d ressed th e
c e n tra l Iow a stu d y group of th e
A m erican In s titu te of B anking a t its
recen t w eekly m eetin g at th e C entral
IN SIOUX C I T Y
N orthw estern Banker
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Federal Reserve Bank of St. Louis
_
A pril 19iQ
60
•
rep o rted th a t th e ir vacation th is y ear
w as p a rtic u la rly enjoyable because it
w as so different from p revious years.
L eaving th e ice and snow of T am a
and headed south for th e balm y
breezes of F lorida, th e p a rty encoun
tered heav y snow as fa r so u th as
B irm ingham . T he tra v e lin g w as not
so good as th e hig h w ay d ep artm en ts
w ere not so w ell equipped w ith plow s
to clear th e roads of deep snow. Most
of th e plow s w ere im provised from
sm all road scrapers. M uch of th e
IOWA
NEWS
•
road clearing h ad to be done by hand
shoveling.
A rriv al in M iami found th e w eath er
cold, fru it w as frozen, tru c k gardens
ruined, req u irin g rep lanting, palm and
m agnolia trees frozen to a deep brow n.
T his w as quite a different p icture
from w h a t w as found on previous
trip s, and proved both a su rp rise and a
novelty. T he n ig h ts w ere cold, b u t
th e tra d itio n al tropical F lo rid a sun
blazed fo rth du rin g th e day producing
a good ta n for th e visitors.
Increases Capital
T he S ecurity Savings B ank of Larchwood is increasing its capital stock
to $25,000, according to articles of in
corporation filed in th e reco rd er’s
office. The incororation articles are
being am ended an d stock certificates
increased from $60 to $ 10 0 p e r sh are
to m ake up th e increased capital.
T he b an k w ill sh o rtly offer p atro n s
in su ran ce of individual deposits up to
$5,000, th ro u g h affiliation w ith the
F ed eral D eposit In su ran ce C orpora
tion. T he increase of capital stock
is p relim in ary to th is change in b a n k
ing policy.
On F D IC Board
G.
M. B arn ett, p resid en t of th e
G uthrie County S tate B ank at G uthrie
Center, has been selected as one of
th e exam ining board to hold exam ina
tions for em ployes of th e F ed eral De
posit In su ran ce C orporation.
Mr.
B a rn e tt w as in Des M oines recen tly
to serve on th e board for th e first
tim e.
100 Per Cent
Sufficient funds are now in h an d in
the office of th e F a rm e rs Savings B ank
of M artelle, to pay th e rem ain in g bal
ance due on tru s t certificates, accord
ing to E. C. Gotsch, ch airm an of th e
trustees, and Guy C. M artin, cashier.
The 20 p er cent p aym ent rep resen ts
10 0 per cent rep aid to all depositors
since going u n d er Senate F ile No. I l l
in 1933. T he tru s t certificates re p re
sen tin g over $71,000 have been paid
off since M arch of 1934, w hen th e b ank
w as released from S. F. I l l , w ith o u t
any law suits or o ther legal action.
E ig h t ten per cent dividends have
been previously paid on th e tru s t cer
tificates.
Suffers Stroke
J. A. C anning, form er vice-president
of th e Peoples N ational B ank of Albia,
and well know n Iow a county b anker,
is rep o rted to be recovering from a
stroke of apoplexy recen tly a t his
home.
Correction
In m aking m ention in th e M arch
n u m b er of th e N orthwestern B anker
of th e an n u al m eeting of th e Clinton
County B ankers A ssociation, it w as
stated th a t J. Yvo F loerchinger, cash
ier of th e D eW itt B ank and T ru st Com
pany, w as vice p resid en t of th e county
organization.
W e now find th a t Jo h n Thom son,
cashier of th e Teeds Grove Savings
Bank, is vice presid en t of th e Clinton
Northwestern Banker April 1940
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Federal Reserve Bank of St. Louis
61
I O W A
N E W S
C ounty B an k ers A ssociation, instead
of Mr. F lo erchin g er, and are h ap p y to
give Mr. T hom son cred it therefo re.
Like Father, Like Son
The ro m an tic young son of a re tire d
b a n k e r staggered hom e one daw ning
an d rep o rted to his fa th e r th a t he w as
going to m a rry an infam ous blonde
so ngstress. “I ’m m ad abo u t her, dad,”
sighed th e scion, “and nothing, n o th
ing can stop us from g ettin g m arried!”
“I know ju s t how you feel,” sym pa
th ized th e fath er. “W hy, son, I w as
in love w ith h e r m yself w h en I w as
y o u r age.”
Opens in Boone
S everal h u n d re d a tten d ed th e form al
opening of th e C itizen’s N ational B ank
in Boone early last m onth. T he bank,
w h ich h as been e n tire ly redecorated
an d provided w ith m an y new features,
w as filled for th e occasion by m an y
b eau tifu l b ouquets of flowers sen t by
cu sto m ers of th e b an k an d friends.
A to u r of inspection fo r th e visitors
w as p lan n ed an d included a peek a t
th e new coupon booths, w ell lighted
an d v e n tila te d for th e com fort and
convenience of custom ers. A new
The new interior o f the C itizens N a tio n a l Bank, o f Boone.
and a new filing system is being in
stalled.
T he m ain new featu res for the b an k
are redecorating of th e in terio r w ith
com plete new fixtures, repainting,
h anging of lig h t fixtures an d o th er
item s. T he new featu res give the
b an k additional room for b oth custo
m ers and for em ployes in carry in g on
th e ir duties.
consultation room has been fitted for
th e custom ers in th e so u th east corner
of th e bank.
A new an d enlarged safety deposit
v au lt w as on display having a v e n tila t
ing system in case of one being acci
d ently locked in. Several new “b a n k s”
of deposit boxes have been added w ith
room for m ore if necesary. The m oney
v au lt has been rep ain ted and relighted
— “ and Fisher Co. W i l )
H a n d le the E n t i r e
From the word "go" The Fisher C om pany a ssu m es
all responsibility, reliev es your directorate of the
h e a v y burden of building construction detail and
con seq u en tly m a k es it p o ssib le for your institution
to continue its d a ily b u sin ess without u n n ecessa ry
interruption.
The Fisher C om p an y organization, with over 70
y ea rs actu al exp erien ce in Bank Fixture construc
tion work, k n ow s to the 'nth d eg ree w hat it w ill
cost and h ow lon g it w ill require to m ake the
installation. Our serv ices h a v e p le a se d hundreds
of Banks here in the Northwest— and w e b eliev e
service rendered satisfactorily to all concerned is
the last word in recom m endations. Our experi
enced organization, facilities, an d long list of Bank
fixture in stallations are at your com m and. M ay
w e not consult with y o u concerning your n ew
Banking Hom e?
C anaries C iti), r/ a
N orthw estern Banker
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Federal Reserve Bank of St. Louis
A pril 19^0
62
•
IOWA
NEWS
*
A t M ason City, H ow ard S tew art,
form erly w ith th e F irs t N ational
Bank, has m oved over to th e N o rth
w est Savings B ank as a ssistan t cash
ier. B oth banks are affiliated w ith th e
N. W. B ancorporation and his efficient
service w ith th e form er b ank for th e
last 1 2 y ears justified the prom otion.
Brief Io w a N ew s
By J. A . Sarazen
A s s o c i a t e Ed it or
H E S tate B ank of A llison has a
dividend record th a t an y b an k
w ould be proud of. D uring th e last
20 y ears th a t O. L.. W hitlach, president,
has been in charge th e b a n k has paid
stockholders a nice dividend each y ear
of 20 p e r cent or a to tal of 400 p e r cent
T
j
on th e capital of $50,000. Surplus and
profits have been b u ilt up to $75,000.
R ecent rem odeling of th e tellers
cages and redecorating of th e w alls
and ceiling of th e M anly S tate B ank
has added g reatly to appearance and
conveniences.
H e a d q u a rte rs
|
For
★
★
★
This bank, with the advantages of quick,
efficient services and complete facilities, is
the logical channel for your Northeastern
Iowa business.
THE NATIONAL BANK
OF WATERLOO
Member— Federal Reserve System
Member— Federal Deposit Insurance Corporation
W rig h t county ban k s adopted a
service charge th is y ear of $1.0 0 on all
corn loans made.
Officers of th e Security Savings
Bank, Eagle Grove, re p o rt earnings
very satisfactory du rin g th e p ast year.
Surplus and profits w ere increased
$14,000.
Effective M arch 1st, H. J. B u ell w as
elected active vice p resid en t of th e
F a rm e rs N ational Bank, W ebster City.
He has served on th e board for th e
p ast six y ears and will now devote his
en tire a tten tio n to his ban k in g duties.
R. B. J oselyn , teller, w as prom oted to
th e position of a ssistan t cashier.
N o r th e a s te r n
Iow a B a n k e rs
W e note w ith in te re st th e sim ilarity
in footings of the U nited Hom e B ank
and th e N orthw est Savings Bank.
Across th e stre e t from each o th er in
M ason City, one has footings of $1,943,778.82 and the o ther $1,942,594.70,
a net difference of $184.12.
★
★
★
B. P. St. John, cashier, F irs t S tate
Bank, W ebster City, believes banks
should have service charges th a t are
w ith in reason, apply th em so custom
ers w ill know exactly w h a t th ey are
paying for th a t excessive and indi
rect charges w ill only ten d to create
agencies w ho w ill com pete w ith banks
and possibly legislation th a t w ill be
h arm fu l to th e b an king business.
The B edford N ational Bank, estab
lished in 1898, has nev er tak en m oney
from custom ers on an in te re st bearin g
basis. D eposits are n early $600,000.
A n eat sign in th e Jesup b an k reads:
Ask us how you can save m oney
by financing yo u r n ex t autom obile
th ro u g h th is bank.
At th e Corydon State B ank, dem and
deposits are $484,000 and tim e deposits
b u t $56,300. C ashier Clarke m akes it
a point to keep tim e deposits dow n to
a m inim um . L. C. N ieh lin g w as re
cently elected p resid en t of th is bank,
succeeding D. L. M urrow w ho re
signed b u t rem ains on th e board.
T he S tate B ank & T ru st Co., Ne
vada, w hich opened for business a
N o rthw estern B anker
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Federal Reserve Bank of St. Louis
A p ril 19b0
63
.
y e a r ago, h ad deposits of $247,000 on
M arch 12th. L & D w ere $113,000 and
corn loans $117,000.
All banks a t F ort M adison have
been p aying IV2 p e r cen t in te re st on
deposits since la st July.
T he H artford-Carlisle Savings B ank
has increased su rp lu s to $25,000, equal
to th e capital. T he u su al 5 p er cent
dividend w as paid in 1939.
B oth b an k s a t K alona pay 2 y2 per
cen t on deposits. Officers re p o rt a
good local dem and.
IOWA
NEWS
*
states w hich have such laws, it w as
found th a t chain store taxes accounted
for .39 p er cent of to tal tax revenue,
clearly indicating how insignificant
th e y are as revenue-raising m easures.
O bviously th e sponsors of chain tax
law s are n o t looking for revenue. T hey
are m erely seeking to destroy e n te r
p rises w hich are largely responsible
for rev o lu tio n ary progress in th e field
of re ta il d istribution. T hey expect the
public to believe th a t an in d u stry
w hich has b ro u g h t savings to consum
ers, ru n n in g into m illions of dollars, is
u n desirable and should be destroyed.
T hey offer no suggestion for im proving
service to consum ers. T h eir m otto is
T ax and D estroy.
H as Operation
Carl T rout, a ssistan t vice president
of th e Live Stock N ational B ank of
Chicago, has been recu p eratin g a t th e
B erw yn H ospital, B erw yn, Illinois,
follow ing an em ergency appendicitis
operation w hich w as perform ed M arch
8 th.
H e had ju s t re tu rn e d from his
an n u al vacation in F lo rid a w hen ill
ness overtook him.
W e w ere show n th ro u g h th e re c e n t
ly-rem odeled F re m o n t Co. Savings
B ank a t Sidney an d w e collaborate
w ith Vice P re sid e n t P ullm an th a t th e
a rc h ite c t did a sw ell job.
Over Sixty Years of Service
T he F id elity S avin gs B ank, M ar
shalltow n, so fa r as w e know is the
larg est b an k in th e sta te w hich is not
a m em ber of th e F ed eral D eposit Ins.
C orporation. D eposits are w ell over
$4,000,000.
as o f M arch 2 6 , 1 9 1 0
New in Shell Rock
R ecently th e Iow a b an k in g board
ap proved th e c h a rte r for a new b ank
to be organized a t Shell Rock, B utler
County, Iowa, an d of w hich M arvin
W. L eritz, cash ier of th e Sibley State
B ank, w ill be vice p resid en t an d cash
ier.
T he nam e of th e new bank, w hich
w ill be capitalized a t $5,000, w ith a
$5,000 su rp lu s an d $2,500 in undivided
profits, w ill be th e S ecu rity State
Bank. People of th e Shell Rock com
m u n ity w ill subscribe to 49 p er cent
of th e stock. C ontrolling in te re st w ill
be held by Mr. L eritz and his asso
ciates.
F o r th e p a st six y ears Mr. L eritz has
been associated w ith th e Sibley State
bank, a t th e p re se n t tim e being cash
ier. P rev io u s to com ing to Sibley he
w as w ith th e sta te b an k in g d e p a rt
m e n t for tw o y e a rs an d p revious to
th a t w as an em ployee of th e S ecurity
Savings B ank of H artley.
D irectors of th e S ecurity S tate B ank
of Shell Rock w ill be Mr. L eritz, Ad
ria n C hettenden, J. A.
W h itak er,
M ansfield W itt, an d G. H. R enning.
Tax and Destroy
A recen t su m m ary of state ta x yields
for each y e a r from 1936 th ro u g h 1939,
reveals w ith dev astatin g finality th e
real fu n ctio n of chain store ta x laws.
T aking in to consideration only those
R
S tatem en t o f C ondition
Resources
Loans and Discounts...................................... $1,905,514.55
Bank Building..................................................
112,500.00
Furniture & Fixtures & Safety Deposit Vaults
22,246.37
Other Real E state..........................................
7,000.00
Stock in Federal Reserve Bank..................
13,500.00
Overdrafts
.................................................................
3,883.47
U. S. Bonds.................................... $ 131,800.00
Municipal Bonds
Due 1940-1944.............................. 1,298,761.88
Other Marketable Bonds..............
665,975.06
Cash and Exchange........................ 2,197,521.22
4,294,058.16
$6,358,702.55
Liabilities
Capital (Common) ...................................................$ 300,000.00
Surplus .........................................................................
Undivided Profits and Reserves
( N e t) ..
150,000.00
106,693.18
Deposits ....................................................................... 5,802,009.37
$6,358,702.55
UNION BANK & TRUST
COMPANY
OTTUMWA,
IOWA
M e m b e r oi F e deral R e s e r v e S y s te m
M em ber F e d e ra l D e p o sit In su ra n c e C orporation
N orthw estern B anker
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Federal Reserve Bank of St. Louis
A p ril 194-0
64
London Banker Tells A bout the 'War
OME few y ears ago H elen Kollm yer, a ssista n t cash ier of th e
S tate C entral Savings B ank of Keo
kuk, Iow a, took a v acation trip to
E ngland, and w hile in London visited
B arclay ’s B ank and its several
branches. Our read ers w ill recall th a t
upon h e r re tu rn to A m erica she w ro te
an article for th e N o rth w estern
B anker, describing h e r trip.
Miss K ollm yer’s escort th ro u g h
B arclay ’s w as A rth u r J. Thom as, w ho
is associated w ith th e F o reig n B ranch
of th e in stitu tio n . Since th a t tim e
Miss K ollm yer h ears from Mr. T hom
S
as occasionally, and the le tte r w hich
follows is one w ritte n by him on F eb
ru a ry 5th. I t is of m ore th a n usual
in terest, since it tells about conditions
and experiences in London d uring
these w ar tim es. T he le tte r reads:
“It occurs to m e th a t you m ay be
in te rested to know how we are faring
in tim e of w ar. A p art from th e black
out a t n ig h t—-which is in ten se—things
are fairly norm al. Food prices are
up a little (p artly due to w ar risk in
su rance costs) and th e re is no sh o rt
age, though a t tim es we m ay have to
try m ore th a n one shop to buy exactly
(oiii mereeJrust (ompany
£2yltdlion
Capital, Surplus and dl»divided P ro fits 1
KANSAS
C IT Y 'S
E s ta b lis h e d 1865
^Dollars
LARGEST
BANK
IN^URanceEcDor^ OR^n o n
S tatem en t o f C on d ition at C lose o f B u sin ess M arch 26, 1940
RESOURCES
Cash and Due from Banks.............................. $ 79,490,364.74
U. S. Government Obligations, Direct and
Fully Guaranteed .......................................
39,375,056.48$118,865,421.22
State, Municipal and Federal Land Bank
Bonds .................................................................
Stock of Federal Reserve Bank....................
Other Bonds and Securities...............................
27,624,381.42
270,000.00
10,600,880.07
Loans and Discounts.....................................................................
Bank Premises and Other Real Estate Owned....................
Customers’ Liability Account Letters of Credit..................
Accrued Interest Receivable .....................................................
Overdrafts .....................................................................................
Other Resources ...........................................................................
38,495,261.49
39,948,511.47
2,547,616.47
33,927.79
369,596.15
23,830.02
14,278.15
Total Resources ..........................................................................$200,298,442.76
L IA B IL IT IE S
Deposits:
U. S. Government D eposits.................... $ 1,834,175.00
Other Deposits ............................................ 186,104,592.44 $187,938,767.44
Capital ....................................................................
Surplus ....................................................................
Undivided Profits ................................................
6,000,000.00
3,000,000.00
3,216,301.61
Liability Account Letters of Credit........................................
Accrued Interest, Taxes and Expense.....................................
Other Liabilities ...........................................................................
12,216,301.61
33,927.79
82,846.64
26,599.28
Total Liabilities ..........................................................................$200,298,442.76
M e m b e r F e d e r a l D e p o s it I n s u r a n c e C o r p o r a tio n
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
April 19^0
w h at we w ant. We are ratio n ed for
b u tter, bacon and sugar, b u t th e
am ount allow ed is adequate, and th ere
are m any su b stitu tes available.
A t th e B ank w e w ere placed in a
difficulty a t th e outset, as our build
ing a t F e n ch u rch stre e t is an old one,
and it w as not possible to m ake ade
quate air-raid shelters for all th e staff
of over 600. F o rtu n a te ly certain de
p artm e n ts a t our head office (across
th e road a t L om bard street) and our
T ru stee Office (about 150 yard s aw ay
in K ing W illiam street) evacuated out
of London, so th a t our F oreign b ran ch
has now th ree different offices. In
spite of these difficulties, I am pleased
to say th a t our w ork goes on v ery
smoothly-—a little to our surprise.
“In our social life we find m any
changes—th e rig o u rs of th e blackout
and th e ratio n in g p atro l m ake it dif
ficult to trav el distances a t night. In
tow n, all our th e a tre s (all thirty -six
of them ) and cinem as are full, b u t p e r
sonally I leave these p leasures to th e
ten n ights every m on th w h en th e re is
a trace of a moon.
“In th e B ank we have to obtain th e
sanction of th e B ank of E n g lan d for
th e p u rchase of F oreign Exchange.
As nearly every tran sactio n covers
e ith er th e im port or export of goods,
th is sanction is obtained w ith o u t dif
ficulty or delay. W e are v ery busy at
th e Foreign B ranch as im ports to,
and exports from this co u n try have
increased considerably, and in addi
tion w e have staff problem s.
“A p art from aeroplane engines and
p arts, etc., I do not th in k w e w ill im
p o rt from th e U. S. A. m ore th a n is
necessary as our stocks of goods here
are high.
F o r instance we have
enough V irginia tobacco to last us
for tw o and one-half years.
“As our P rim e M inister said at th e
beginning, we are fighting evil
things and it is necessary once for all
to get rid of th is co n stan t G erm an ag
gression how ever long it takes to do
so.
“A nd how is life in th e g reat U. S.
A.? A re F ra n k lin D. R. and E lean o r
going to ru n for a th ird tim e? A nd
how is th e g reat benefactor w ho prim ises to pay everybody over sixty $50
p er m o n th on th e one condition th a t
th e beneficiary m u st n ot w ork?
“H oping th a t you are well, and th a t
you w ill be able to m ake an o th e r trip
to th is co u n try w hen hostilities cease.”
Y ours sincerely,
A rth u r J. Thom as.
“P. S. H ave ju st had lunch a t th e
‘George and V u ltu re.’ Same m ixed
grill, sam e beer, a t th e sam e prices!
I t has been th ere since 1694.”
65
•
I OW A
NEWS
*
Twenty Y e a rs
O n Bank Board
The N ational B ank of R ockw ell City
recen tly observed its 20th an n iv e rsa ry
as a b an k in g in stitu tio n in R ockw ell
City.
O riginally organized as th e R ockw ell
C ity N ational B ank, it took th e nam e of
N ational B ank of Rockw ell City w h en
it w as reorg an ized in 1933. D eposits
now at th e b an k to taled about 20 tim es
as m uch as th e y did a t th e close of b u si
ness on th e first day, M arch 20, 1920.
George B. L em en is p re sid e n t of th e
b an k an d his son, E arl, is cashier.
T hey have b o th been in th e b a n k d u r
ing th e e n tire 20-year period.
R. I. M arner of th e firm of M arner
and Adams, R iverside and Lone Tree
fu rn itu re dealers and u n d ertak ers, has
been nam ed a d irector to replace the
late W illiam Griffin on th e board of
th e People’s T ru st & Savings Bank,
Riverside.
Only th re e of th e m en w hose nam es
ap peared on th e b a n k ’s ch arter, dated
M arch 20, 1928, now rem ain on the
board. T hey are: Wm. O’Loughlin, R.
H. H eitzm an and George Eglin. The
o thers on th e first board were: AVm.
Griffin, Ed. Godlove, A. H. Gerot, and
Ed. Kos.
M em bers of th e p resen t board are:
George Eglin, R. H. H eitzm an, M arion
Godlove, H u b ert Doud, H en ry F ran k ,
Wm. O’Loughlin, and Mr. M arner.
H o n o re d
■George E. R oberts, form er F o rt
Dodger and now economic advisor of
the N ational City B ank of New York,
w as recen tly inducted into m em ber-
A m e n d A rticles
A rticles of inco rp o ratio n of th e Teeds
Grove Savings B ank have been am end
ed according to p ap ers filed in th e of
fice of C ounty R ecorder Carl Sohr at
th e co u rt house.
A rticle th re e is am ended to fix th e
am o u n t of capital stock a t $25,000.
T he am en d m en t is signed by W. F.
W essel, chairm an, and Jo h n T hom sen,
Jr., secretary.
Killed By C a r
Jo h n S. H erm sen, 75, re tire d Neola,
Iowa, ban k er, died recen tly a t an
O m aha hosp ital of in ju rie s received
w hen he and Mrs. H erm sen w ere
stru c k by a car.
Mrs. H erm sen, 70, w as in N icholas
Senn H ospital and has not been told of
h e r h u sb a n d ’s death. She suffered a
com pound fra c tu re of th e rig h t leg, se
v ere shock and bruises.
T he H erm sen s h ad been m arried
forty-nine years. T hey m oved to Oma
h a th irte e n y ears ago w hen Mr. H erm
sen re tire d a fte r fo rty y ears as a b a n k
er a t Neola.
Dies In C la rin d a
D. D. (Dave) S titt, vice p resid en t of
th e Citizens B ank in C larinda and
fo rm er Page county tre a su re r, died of
a h e a rt a tta c k a t th e C larinda M unicip
al hospital.
S titt w as b o rn in W oodhull, 111., A u
g u st 24, 1965, an d cam e to Page county
w h en 5 y ears of age, settlin g w ith his
p a re n ts on a farm w est of C larinda, re
siding in th e county for sev en ty years.
He w as elected cou n ty tre a s u re r in
1914 and served five term s being one of
th e first county officers ever to serve
m ore th a n th re e term s. H e re tire d
from th e office in 1924. He w as one of
th e m en w ho organized th e Citizens
B ank in 1923 an d serv ed as vice p resi
d en t of th e in stitu tio n since it w as
form ed.
THE ROMANCE OF A LIVE STOCK CAR!
A dramatic story of faithful service. Devoid of glamour but
highly colored with the rich traditions that vitalize the
essentials of American life. Serving faithfully! Standing
in long, patient lines in country towns; hugging the chute
at loading time; transporting choice meat animals to the
packing centers; smudged with the dust of sun-baked prair
ies. Unobtrusive, undistinguished, unnoticed; truly a demo
cratic servant. In sharp contrast to the streamlined Parlor
Car—the Peacock of the rails.
Dependable service!
The world places a high value on it!
Drovers Service! Reliable, impartial, personal at all times.
The correspondent bank whose customers ship live stock to
Chicago; the Commission Firm at the Yards; the packing
house whose meat products are known to the far corners of
the earth—have found to their advantage, the wisdom of
using this service so wholeheartedly a part of the Drovers
Banks for 58 years.
M e m b e rs, F ed era l D e p o sit In su ra n c e C orporation
BMPUl—
8
DROVERS NATIONAL BANK
DROVERS TRUST B SAVINGS BANK
U N I O N
S T O C K
Y A R D S ,
C H I C A G O
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
April 19k0
66
* IOWA
ship in th e b a n k ’s Q u arter C entury
club. T he follow ing new s re p o rt of
the ev en t is ta k e n from the N ew York
Jo u rn a l of Commerce:
“Two h u n d red and tw e n ty m em bers
of th e Q u arter C entury club of th e
N ational City B ank of New York, w ith
a com bined to tal of 7,097 service years,
w ill a tte n d th a t o rg an izatio n ’s fo u rth
an n u al b an q u et in th e N orth ballroom
of H otel Astor.
“George E. R oberts, econom ic advis
or and founder of N ational C ity’s Eco
nom ic letter, w ho becam e eligible for
m em bership last N ovem ber, will be
inducted into m em bership a t th e d in
ner.
“The speak ers w ill include P resid en t
Gordon S. R en tsch ler of th e N ational
NEWS
.
City B ank of New York, W. R andolph
Burgess, vice ch airm an of th e board;
E ric P. Swenson, a director of the bank,
and Mr. Roberts.
“P resen tatio n of service aw ards will
be m ade by Mr. R entschler. The club
has a m em bership of m ore th a n 300 lo
cated th ro u g h o u t th e w orld.”
To Visit Divisions
The P resid en t of th e A ssociation of
B ank W om en, Miss M ildred Roberts,
assistan t cashier, Citizens N ational
T ru st and Savings Bank, Los Angeles,
C alifornia, w ill visit th e various region
al divisions of th e A ssociation d u ring
th e m onth of A pril, stopping in Texas,
L ouisiana, Georgia, Florida, W ashing
ton, D. C., P ennsylvania, New York,
M assachusetts, Ohio, Illinois, N ebras
ka, U tah and W ashington, re tu rn in g
to C alifornia th e la tte r p a rt of th e
m onth. V arious regional vice p resi
dents w ill arran g e for conferences and
en terta in m e n t w h erev er th e tim e al
lotted Miss R oberts’ v isit w ill perm it.
Miss L illian M. Russ, a ssistan t tru s t
officer of The T roy T ru st Company,
Troy, New York, and presid en t of th e
Middle A tlantic Division, announces
th a t m em bers of th is division w ill en
te rta in in Miss R o b erts’ honor a t a spe
cial form al d in n er at the C hatham H o
tel, New York City, on A pril 11th. Miss
C atherine S. Pepper, T he N ational City
B ank of New York, is in charge of a r
ran g em en ts and Miss A nne H ouston
Sadler, a ssistan t secretary, B ank of
M anhattan Company, New York, w ill
preside at th e m eeting. One of th e
founders of th e A ssociation, Miss Jean
A rnot Reid, form erly a ssista n t tre a s
u re r and m anager of W om en’s D ep art
m ent, 57th S treet B ranch, B ankers
T ru st Company, New York, w ho is
now retired, and Miss M ildred R oberts,
N ational president, w ill speak on th e
subject, “A ssociation of B ank W om en
P ast and P re se n t.”
P lans for th e convention to be held
in th e fall w ill be com pleted d u rin g th e
conferences held by Miss R oberts w ith
th e regional vice presidents.
Financial Sw e atsh o p
OFFERING A THOROUGH
CORRESPONDENT SERVICE
More than half a century of banking experience has enabled
The Northern Trust Company to offer out-of-town banks a
thorough correspondent service based on broad fact-finding
facilities. This institution is always willing and ready to share
with a banker-customer the benefits of its wide contacts and
experience. We would welcome a call from you when you are
in Chicago.
THE N O RTH ERN
TRUST COMPANY
50
SOUTH
LA SALLE S T R E E T , C H I C A G O
M e m b e r F e d e r a l D e p o s it I n s u r a n c e C o r p o ra tio n
N orthwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
A pril 19b0
“S trik e ” is a dreaded word. It im
plies hardship, strife and enforced idle
ness of m en and m achines th a t o rd in ar
ily co ntribute to th e w ell-being of so
ciety. It m eans th a t a group of w o rk
ers feel im pelled to p ro te st against
w orking conditions, wages, h o urs of
w ork, etc., by “w alking o u t” on th e job.
V ery often strikes, not only of labor
b u t of o th er sources of productive en
ergy, are justified.
Savings are a la te n t form of produc
tive energy know n as capital. I t takes
capital to keep th e w heels of in d u stry
tu rn in g and m en w orking. W e have
heard of “capital strik e s” lately, u su al
ly from political sources w hich con
dem n banks and business m en for
deliberately “w alking o u t” on th e job
by w ithholding capital from financially
starv ed industries. T here has been a
walk-out, b u t a w alk-out of hu n d red s
of thousands of sm all depositors w ith
m oney to invest, ra th e r th a n of busi
ness m en and bankers. T hese deposi
tors, investors, capitalists, or w h atev er
you w ish to call them , have silently and
unanim ously gone on a gigantic
“strik e .” T he m oney w hich th ey own
th ey have gotten th ro u g h h a rd w ork
and th ey do not feel th a t th e “w ages”
67
fo r “h irin g o u t” th a t m oney are high
enough.
E v e ry w o rk in g m an is subject to ill
ness, accident an d death. A nd every
dollar of savings in v ested by th e th rif
ty in p roductive e n te rp rise is subject
to th e sam e hazards. No m an w ill w ork
w ith o u t being paid, and th e g re a te r th e
risk entailed, th e m ore he expects to
be paid. So it is w ith th e in v e sto r’s
dollar. It does not w o rk for nothing,
and th e g re a te r th e risk th e g re a te r th e
“w age” (in terest) its ow ner m u st re
ceive.
A m erican in v esto rs are not u n io n
ized. B ut th e y have gone on a strik e
for b e tte r w ages (h ig h er re tu rn on in
v estm en t savings) an d b e tte r w ork in g
conditions (less political persecu tio n of
business). You can n o t expect capital
to w o rk in a financial sw eatshop.
A G ood tie-u p
w ith S io u x C ity
First-hand k n o w le d g e of the n e e d s of o u tlyin g
b a n k s, p lu s the a b ility to g iv e se rv ice so e s s e n
tial to correspo n den ts, m a k e a tie-up w ith this
b a n k m ore th an sim p ly a co n n ectio n .
W e strive
for friend ly coo p eratio n that m a k e s for a n em i
Breakers A h e a d
It took th e U nited S tates G overn
m en t th e first 133 y ears of its existence
to spend sixty-six billion dollars, in th e
course of w hich th e expense of five
w ars w as defrayed, including th e Civil
W ar and th e W orld W ar. T h a t w as
y esterday. T oday it tak es th e F ed eral
G overnm ent a m ere eig h t y ears to
spend $65,628,526,692.
T he autom obile is n o t th e only con
triv an ce th a t has show n an am azing
increase in speed. M odern A m erican
b u reau cracy spends public m oney at
a ra te th a t w ould have been th o u g h t
im possible a few y ears ago. It can al
so create bigger deficits w ith g re a te r
speed th a n our fo refath ers could ever
conceive of—$25,538,000,000 in eight
years. A p p aren tly o u r ab ility to pile
up deficits is su rp assed only by our
ability to spend.
U nless average citizens, housew ives,
business m en, professional people and
w o rk ers come to th e ir senses, w e w ill
e n te r an era th a t w ill m ake th e “g re a t”
d epression of th e th irtie s look like a
p in k tea. W e have lost our self-respect
in a d ru n k e n spending spree an d if we
don’t w atch out we w ill soon lose our
shirts!
n en tly p le a s in g relation ship.
Security National Bank
Member Federal Deposit Insurance Corporation.
• Banking has changed.
The few large loan trans
actions o f yesteryear have
become hundreds o f small
loans.
Balances must be large to
be compensating. But ac
counts as small as $50 pro
duce healthy service charge
revenue.
MEN, I WANT YOU TO GET
BEHIND IMPRINTED CHECKS
R e ta il b a n k in g n eed s m o re
sa le s con sciou s p e o p le . Start
your people selling with
the De Luxe Personalized
Pocket Check Sales Plan.
Two hundered imprinted
checks for $1.00 is a small sale, but good training and
profitable. The PLAN saves customers 45%—Cuts bank
check expenses, too.
A N atio n of Panhandlers
A re th e people of th is n atio n becom
ing plain, o rd in a ry p an h an d lers—beg
g ars from governm ent? Individuals,
tow ns, cities and states have th e ir
h ands out for F ed eral alms.
By accepting th ese alm s, th e y are
g rad u ally giving up individual, civic
and states rig h ts and b uilding a F ed
eral o verlordship th a t w ill m ake th em
m ere paw ns of governm ent.
W e like to talk about our dem ocracy
and p ity th e people of countries w h ere
lib erty has been crushed, w h en w e o u r
selves are giving up o u r freedom for
a m ess of F e d e ra l “h a n d o u ts” th a t are
Y
S e n d f o r d e s c r ip tiv e f o ld e r N o . 13
De Luxe
lS lN û
C H E C K P R I N T E R S , I NC.
Lithographers and Printers
Plants a t
K A N S A S C IT Y
C H IC A G O
NEW YORK
CLEVELAND
ST. PAU L
Northwestern Banker
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Federal Reserve Bank of St. Louis
A pril 19W
68
•
m ortgaging o u r fu tu re for generatio n s
to come.
Civic organizations have becom e
beggars, g re a t in d u strie s have becom e
beggars, cities and states have becom e
beggars a t th e public trough. T hen
a fte r accepting public c h a rity an d in
jectin g g o v ern m en t into th e ir local
and p ersonal affairs, th e y cry because
go v ern m en t in business is being so
rap id ly extended th a t it is w iping out
free enterp rise.
D on’t blam e anybody b u t y o urself
w hen you feel th e jaw s of officialism
COMMERCIAL
I O W A
N E W S
•
close on you, if you have countenanced
or accepted F ed eral alm s for projects
w hich could have been handled by
courageous, in tellig en t and self-re
specting citizens in th e past.
T his co u n try h a sn ’t changed funda
m en tally in spite of all th e theoretical
p ra ttle to th e contrary; opportunities
are still countless for young and old.
W h at has changed is our backbone
and our pride. W e are becom ing a n a
tion of “sissies” w ho cry for help at
th e slig h test provocation and w a n t to
be coddled as incom petents.
S AVI NGS
• CHECKING
•
TRUSTS
. . your Chicago transactions
Complete correspondent facilities — for transit,
collections, handling of securities, credit and invest
ment information — are offered by the American
National Bank and Trust Company of Chicago.
In addition, you find in each member of our
staff a personal interest in this relationship that is
unusual in a major financial and business center.
We will be pleased to discuss your correspondent
requirements with you when you are in Chicago.
A M E R I C A N N A T I O N A L B ANK
AND TRUST C O MP A N Y
C A x c c u jx r
LA
SALLE
M em ber
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
STREET
F ederal
April 1940
AT
D eposit Insurance
By our actions w e are ad m ittin g th a t
we are no longer capable of self gov
ern m en t or p riv ate m an agem ent of
our own affairs. W e are asking for po
litical d ictatorship and w e w ill have no
one b u t ourselves to blam e if we get it.
E v ery tim e th ere is some tough n u t
to crack, we now beg for F ed eral funds
to care for th e problem s or losses in
volved, w hich, in m ost cases, are due
to our own laziness, greed or neglect.
W e w a n t th e F ed eral go v ern m en t to do
our irrigating; w e w a n t th e govern
m en t to control our crops; we w a n t th e
g overnm ent to build our dams; w e
w an t th e go v ern m en t to build our
houses; we w a n t th e go v ern m en t to
carry our insurance; w e w an t th e gov
e rn m en t to loan us m oney; we w an t
the g o v ernm ent to build our schools,
bridges, parks, etc., and do ev ery th in g
th a t we as free m en and w om en used
to take pride in doing ourselves. A nd
th en we cry our eyes out about taxes
and new laws, reg u latio n s and re stric
tions.
A nyone w ith a th im b fu l of b rain s
know s th a t w hen you borrow m oney,
th e lender gets in th e d riv e r’s seat.
W hen you becom e a beggar, th e giver
controls y o u r actions. W hen you beg
or borrow from th e governm ent, you
give up y o u r b irth rig h t as a free citi
zen—you begin to exist for th e g overn
m ent, ra th e r th a n th e go v ern m en t ex
isting for you.
T his is th e position of th e people of
th e U nited S tates today. T hey have
begged and borrow ed th em selves w ell
on th e road to w ard n ational b a n k ru p t
cy and political dictatorship.
T here can be no com prom ise w ith
th e to ta lita ria n philosophy—you eith er
accept it and becom e public w ards, or
you kick out th e to ta lita ria n philoso
phy and rem ain free.
If you th in k th e end to w ard w hich
w e are racing is exaggerated, ju s t look
aro u n d y o u r ow n com m unity and see
how m uch F ed eral c h arity it has ac
cepted. G overnm ent can h an d out no
m oney w hich it does n ot tak e from th e
citizens. M oney tak en in taxes m eans
th a t m uch less for th e m an or w om an
w ho has to sw eat an d earn and save
and pay th e taxes.
Don’t kid y o urself w ith th e idea th a t
th e fu n d am en tal v irtu es of w orking
and saving have changed for eith er
g overnm ent or individuals. You can ’t
spend yourself prosperous.
D ep o sits Increase
W A S H I N G T O N
C orporation
D eposits of T he N o rth ern T ru st
Company, Chicago, increased $25,000,000 since th e M arch, 1939 call to a total
of $338,870,000. L oans and discounts
for th e sam e period are up fractionally
69
• IOWA
to $37,598,000. Cash resources stan d
a t $133,361,000, or $5,000,000 up from
a y e a r ago. Savings deposits increased
m ore th a n $4,000,000 to $78,838,000 and
U. S. G overnm ent Securities on M arch
26, 1940, am o u n ted to $99,769,000.
NEWS
•
in T reasu ry finance,” th e surv ey as
serts. “W hereas in th e previous six
y ears m ore th a n tw o-thirds of the
m oney needed to finance th e deficit
w as obtained by public sales of nego-
tiable T reasu ry obligations, funds re
ceived from th is source in 1939 w ere
less th a n one-fifth of th e deficit req u ire
m ents. Sales of savings bonds alone
supplied the T reasu ry w ith m ore cash
Practical Farm Relief
A ddressing th e N ational F a rm In s ti
tu te m eetin g in Des Moines, Iow a, C.
B. D enm an, a g ric u ltu ra l counsel of th e
N ational A ssociation of Food Chains,
offered th is p e rtin e n t advice to th e ag
ric u ltu ra l trades: “O rganize along com
m odity lines em bracing all divisions
of th e in d u stry ; w o rk for low er d istri
b u tio n costs, th u s benefiting consum
ers an d producers; obtain th e larg est
possible consum ption am ong incom e
groups; conduct long-range pro g ram s
of ad v ertisin g an d prom otion, includ
ing m a rk e t research and such m a tte rs
as quality, packaging, g rad in g and
tra n sp o rta tio n ; conduct research to
develop new in d u stria l uses; an d be
p rep ared to m eet em ergency situ atio n s
to quickly expand consum ption.”
T he organized in d ep en d en t m e r
ch an ts, no less th a n th e chains, have
found it a sound an d profitable policy
to w o rk w ith th e fa rm e r and his re p re
se n ta tiv e s in im proving th e techniques
of d istrib u tio n . T he re s u lt h as been
a n a rro w e r p rice spread betw een gro w
e r an d consum er, b ro ad er and m ore
stable m ark ets, an d stepped-up buy in g
of distressed crops th ro u g h special
sales drives.
More of such w o rk is needed. T h a t
is p ractical farm relief, w hich doesn’t
re q u ire ta x subsidies, and w hose activ
ities do n o t sh ift w ith th e u n p re d ic t
able w inds of politics. A m erican p ro
ducers and d istrib u to rs deserve con
g ra tu la tio n s on th e public-spirited
course th e y are today p ursuing.
YOUR
DES MOINES
TRANSACTIONS
a re h an d led quickly a n d
carefully—are given friendly
personal attention — at this
p r o g r e s s iv e , fa s t-g r o w in g
bank.
A L L E Y
SAVINGS BANK
DES
MOINES
M e m b e r F e d e ra l D e p o sit In su ra n c e C orporation
G o v e rn m e n t Financing
F in an cin g of th e U nited S tates Gov
e rn m e n t $4,000,000,000 deficit w ith o u t
reco u rse to th e open m a rk e t for m ore
th a n one-fifth of th a t am o u n t in th e
p a st calendar y e a r suggests th e possi
b ility th a t th e supply of negotiable
T re a su ry obligations m ig h t be actually
reduced, especially if th e deficit w ere
to be curtailed, according to th e a n n u al
su rv ey published by C. J. D evine & Co.,
Inc., specialists in U. S. G overnm ent
securities. T he 1940 edition review s
th e tre n d of g o v ern m en t financing last
y e a r and p re se n ts d ata on U. S. T reas
u ry and F e d e ra l cred it agency issues.
“The U nited States T re a su ry ’s grow
ing independence of th e open m a rk e t
fo r its cash re q u ire m e n ts w as one of
th e o u tstan d in g developm ents of 1939
— s a y s b a n k e r n o w u s in g P A Y C
( N a m e o n R e q u e s t)
Less Than
of 1% of PAYC Accounts
Are Transferred from Regular Checking
G ET MONEY-MAKING
DETAILS TODAY
G e t y o u r s h a r e o f th i s s m a ll d e p o s i
to r b u s in e s s .
W r i t e to d a y , le t u s
sh o w y o u h o w . P A Y C c o p y r ig h te d
b u t n o r o y a l ty c h a rg e d to b a n k s
u s in g th e s y s te m . C o m p le te d e t a il s ,
e x p e r ie n c e s o f o th e r b a n k i n g firm s
s e n t im m e d i a te l y o n r e q u e s t. W r i te
D e p t. N W -A .
All statements above made by banker using
PAYC (Pay as You Check) system. Experience
is proof! Here’s an easy way to get new custom
ers and extra profits for your bank.
PAY C solves service charge and minimum
balance problems, eliminates account analysis,
and simplifies account handling. H e lp s b u s in e s s
in P e r s o n a l L o a n a n d o th e r d e p a r tm e n ts .
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User reports $65 as average PAYC deposit.
Get full details of this plan today!
U n ite d S ta te s C h e c k B o o k C o.
1309-15 HOW ARD STREET
•
OMAHA, NEBRASKA
Northwestern Banker
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Federal Reserve Bank of St. Louis
A pril 19k0
70
• IOWA
th a n w as provided th ro u g h th e sale of
m ark etab le securities.
“T reasu ry ex p en d itu res of $9,454,000,000 w ere m et p a rtly w ith th e
$5,485,000,000 of rev en u e and o th er
gen eral and special account receipts,
and p artly , by th e use of $607,000,000 of
th e G eneral F u n d balance, leaving a
rem ain d er of $3,362,000,000 to be su p
plied by o th er m eans. Of th is am ount,
sales of special obligations to th e So
NEWS
cial S ecurity funds accounted for m ore
th a n a billion dollars. A nother $767,000,000 cam e from sales of savings
bonds.
A dditional n et receipts of
$847,000,000 from T reasu ry accounts
designated as ‘T ru st A ccounts, In cre
m en t on Gold, etc.,’ reflected paym ents
m ade by governm ental agencies to the
T reasury. T he larg est of such pay
m en ts w as m ade by th e R econstruc
tion F inance C orporation, w hich sold
Federal Home Loan Bank of Des Moines
DES MOINES, IOW A
STATEMENT OF CONDITION FEBRUARY 29, 1940
R E SO U R C E S
A d v a n ce s to M e m b er s................................................................................................................ §13,644,238.79
1,367,000.00
U . S . G overn m en t O b lig a tio n s and S ecu rities G u aran teed by U . S ..................
A ccru ed I n te r e s t R e c e iv a b le ..................................................................................................
74,547.17
D eferr ed C h a r g e s .......................................................................................................................
17,481.26
C ash ................................................................................................................................................
3,881,482.26
$18,984,749.48
L IA B IL IT IE S
G overn m en t S tock S u b s c r ip tio n ........................................................................................ $ 7,394,900.00
M em b ers’ S tock S u b s c r ip tio n ........................................................................................... 2,423,000.00
^ D ebentu res O u tsta n d in g ......................................................................................................
7,500,000.00
P r em iu m s on D e b e n tu r e s.......................................................................................................
2,812.50
D ep o sits .........................................................................................................................................
940,649.58
A ccru ed I n te r e s t P a y a b le .......................................................................................................
53,950.47
S u r p lu s :
R eserv es ...................................................................................
$453,025.78
U n d ivid ed P r o fits ................................................................................. 216,411.15
669,436.93
$18,984,749.48
^ P a rticip a tio n in $48,500,000 co n solid ated F ed eral H o m e Loan B ank d eb en tu res o u t
s ta n d in g , w h ich are th e jo in t and sev era l o b lig a tio n s o f th e tw e lv e F ed era l H o m e L oan
B an k s.
Liberal Earnings-—
Insured Safety—
P L US
Protected
EARNINGS —
backed by well-financed above-average
properties. Write for details.
POLK COUNTY
F ED ER A L
Savings & Loan Assn.
A ssets $1,375,000.00
511 Seventh St.
DES M O IN ES
M e m b e r F e d e ra l H o m e L o a n B a n k S y s te m
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
A pril 1940
•
T r u s t O f f i c e r s who want
a safe, flexible investment with
an attractive return, will find
it at the First Federal. The
current rate of return is 3%
and safety is insured up to
$5000 by the F. S. L. I. C.
Write for our prospectus.
FIRST FEDERAL
Savings and Loan
A sso cia tio n o f C hicago
130 S. LaSalle St.
Cen. 8100
its own obligations to obtain funds
w ith w hich to liquidate its indebted
ness to th e T reasury.
“T he $1,750,000,000 of proceeds from
sales of special obligations and of sav
ings bonds in 1939 reflects a steady
grow th in th is ty p e of financing. A
continued increase in borrow ing from
these sources or a reduction of th e de
ficit to a figure sm aller th a n th e total
am ount of m oney so obtained, w ould
leave funds available for th e re tire
m en t of open m a rk e t debt.
“T reasu ry financing operations d u r
ing th e y e a r included th e refu n d in g of
approxim ately 3% billion dollars of
T reasu ry notes. A bout tw o-thirds of
th e securities issued in exchange con
sisted of m edium and long-term bonds,
th e rem ain d er of T re a su ry notes. U p
on th e com pletion of th ese operations,
th e d irect go v ern m en t debt m a tu rin g
w ith in five years co n stitu ted a sm aller
p roportion of th e to tal th a n it h ad at
any tim e since 1933. T his change w as
accom plished n o tw ith stan d in g th e in
crease in Social S ecurity obligations,
all of w hich m atu re w ith in five years.
An additional $1,200,000,000 of g u a ra n
teed debt w as refunded by governm en
tal agencies. The H om e O w ners’ Loan
C orporation’s exchange of its called
23/4’s for eight-year 1% p er cent bonds,
callable in six years, accounted for
m ore th a n half of th is am ount. T he
o ther refundings w ere accom plished by
th e issuance of new short-tim e securi
ties.”
R eview ing th e g overnm ent securi
ties m a rk e t for the year, the survey
states th a t th e relativ ely p rom pt recov
ery of prices, follow ing th e 7 point de
cline on th e o u tbreak of th e E uropean
w ar to levels w ith in 2 points of alltim e highs, gave evidence of th e
stre n g th of un d erly in g forces w o rk
ing tow ard low m oney rates and high
bond prices. Chief am ong these forces
w as the accelerated inflow of capital
from abroad. T he tra n sfe r of $3,574,000,000 of gold to th e U nited S tates
du rin g th e y ear—probably th e g re a t
est in tern atio n al m ovem ent of w ealth
ever to take place w ith in so sh o rt a
tim e—increased th e credit base to the
h ig h est point in history.
B ank holdings of direct and g u a ra n
teed securities increased by m ore th a n
$2,000,000,000 from th e low of Ju n e,
1938, to a new hig h total, m ost of th e
purchases being m ade by N ew York
City banks, in w hich capital from
abroad had been deposited, according
to th e survey.
Set fo rth in th e study is a chronology
of 1939 events p ertain in g to g overn
m ent finance, b anking and th e m oney
m arket.
Can Savings and Loan Be
A dapted to the StflQllQt Community?
T W OULD n o t be possible, in such a
sh o rt article, to delve v e ry deeply
into th e q uestion of ju s t how large
or how sm all a com m unity should
be to su p p o rt a savings, b uilding and
loan A ssociation so, h ere are a few
m ore or less gen eral observations.
F irs t of all, it w ould seem th a t th e
success of such o rganizations w ould
re st largely upon th e p o ten tial m a r
k e t for th e service offered. T h it is,
th e re should be a sufficient n u m b er of
good loans available in th e tow n w h ere
th e association is located or w ith in a
practical o p eratin g distance from such
to w n to a ssu re th e A ssociation of a
read y m a rk e t for its funds. T h at p e r
haps sounds like a ra th e r elem en tary
sta te m e n t an d yet, if you w ere on
th e organizing end of th e business,
you w ould no doubt w restle w ith th a t
m a tte r q uite som e tim e before decid
ing w h e th e r or not a certain tow n or
com m unity w ere large enough to su p
p o rt a savings, b uilding and loan A s
sociation.
T hen, it should be located in a tow n
or com m unity w h ere conditions are
such as to be reaso n ab ly su re of a
sufficient supply of in v estm en t m oney
to tak e care of th e loan dem and. Of
course, in v estm en t capital can be
b ro u g h t in from th e outside, b u t it is
a local in stitu tio n and should be su p
p o rted largely by local funds.
Such A ssociations w ould seem im
p ractical in too sm all tow ns or com
m unities, as, below a c ertain p o in t in
volum e, th e y cannot be successfully
h andled as in d ep en d en t units.
T he savings, building an d loan A s
sociations originated, an d for th e p ast
one h u n d red s y e a rs and m ore, have
b ro u g h t to th e prospective hom e ow n
er, a type of loan b est suited to th e
needs of th e large m asses of th e peo
ple; nam ely, a m o n th ly p ay m en t loan.
T hou san d s of hom e ow ners today
w ould n ev er have h ad th e ir hom es
had it n o t been possible for th e m to
have loans th a t could be k e p t paid up
each m onth; as it seem s alm ost a u n i
versal w eakness, in th e past, a t least,
th a t w hen a b o rro w er h ad a “stra ig h t”
loan he seldom ever w as able to re
duce th e prin cip al and for th e sim ple
reaso n th a t he h ad m ade no definite
I
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
By C. H. Warnock
Secretary
I o w a Falls F e de ral S a v i n g s a nd L oa n A ss 'n
I o w a Falls, I o w a
plans for its reduction. In fact, he
usu ally felt quite proud of him self if
he w ere able to raise enough at one
tim e and in one lum p sum to pay th e
in te re st once or tw ice each y ear w hen
due. B ut w ith th e savings, building and
loan plan, he w as paid up on both
p rin cipal and in te re st each m onth
w ith no w o rries as to how and w here
he w ould raise a lum p sum for in
te re st and principal paym ent.
In
o th er w ords, he sim ply h ad applied
system to his debt retirem en t.
T he fact th a t th e savings, building
and loan m ortgage is being reduced
by m o n th ly paym ents from th e v ery
beginning of th e loan, th ereb y in
creasing th e b o rro w er’s equity and
decreasing th e risk of th e Association,
m akes it possible and practical for
th e A ssociation to safely loan a larger
p ercentage to s ta rt w ith th a n could
be safely loaned on a “stra ig h t” loan
basis. T his is an o th er v ery im p o rtan t
factor w hich has m ade it possible for
m any people to buy or build w ho
otherw ise could n ot have done so,
because th ey w ould n o t have been
able to raise sufficient m oney for the
large dow n pay m en t required, over
and above th e loan.
M any hazards can befall a house,
b o rrow er or neighborhood du rin g a
five or ten y ear period, and a stra ig h t
loan on a 40 p er cent or 50 p er cent
basis m ig h t be perfectly good w hen
th e loan is m ade and a t the end of
th e five or ten y ear period, w h en the
loan is due, conditions of th e b orrow
er, house, or neighborhood m ight be
such as to m ake th e loan a t th a t tim e
a v ery m uch h ig h er percentage loan
th a n w hen originally made. W hile the
sam e loan on a m onthly pay-off basis
w ould be reduced to a p o in t a t the
end of th e five or ten y e a r period
w h ere th ere w ould still be a reaso n
able equity to th e b o rro w er and a re a
sonable percentage of safety for th e
Association.
These th in g s have been m entioned
only to show w h a t a g reat advantage
such a system is in th e field of hom e
financing. M any of th e sm aller com
m unities, handicapped by a lack of
th e m any different types of loaning
agencies to be found in th e larg er
centers, need th e savings, building
and loan plan of hom e financing. T his
function could not possibly fall w ith
in th e scope of th e com m ercial bank,
as such banking, by its v ery n atu re,
is sh o rt tim e m oney en terp rise or bu si
ness.
So to fill th is niche in th e financial
stru ctu re, the savings, building and
loan A ssociation takes its place. So
liciting long term in v estm en t m oney
to be loaned out on long term , am or
tized loans to hom e ow ners—th e serv
ice w as set up for and th e one w hich
it is especially adapted to perform .
Small Town Financing
W ith b u t tw o exceptions, th e states
w here savings, building and loan asso
ciations did th e bulk of th e hom e
financing last y ear are those w here
m ost of th e people live in sm all cities
and tow ns ra th e r th a n in m etropolises,
th e U nited States Savings and Loan
League reports. A nalyzing state-by
state th e figures on m ortgage record
ings from th e F ederal Hom e Loan
B ank Board, th e savings and loan or
ganization finds th a t sixteen states and
th e D istrict of Columbia depended on
th e th rift and hom e financing in stitu
tions for m ore th a n forty per cent of
th e ir hom e loans in 1939.
“To find out w hy th e g reatest de
pendence on these specialized in stitu
tions w ith th e ir long experience in
financing hom es w as w here it was, th e
League exam ined th e kind of states
w here th is type of financing w as dom i
n a n t,” said P aul E ndicott, Pom ona,
California, ch airm an of th e L eague’s
Hom e B uilding and Hom e Owning
Com m ittee. “T h eir v ariety w as great,
ran g in g all th e w ay from M aine and
M assachusetts w here savings and loan
cooperative b anking are m ore th a n 75
y ears old to th e w ide plains of M ontana
w here th is business is ju st tu rn e d 50
72
• SAVI N GS AND L O A N
y ears old. T here seem s to be no com
m on deno m in ato r for th e areas w hich
use th ese in stitu tio n s m ost except the
g en eral d istrib u tio n of th e ir popula-
UNBROKEN
DIVIDEND RECORD FOR
20 YEARS
□
HOME
Building and Loan Association
FORT DODGE, IOWA
M em b er F e d e r a l H o m e L o a n B an k S y ste m
HOME
F e d e r a l Sa v in g s
A N D LO A N A SSO C IA TIO N
O F DES M O IN E S
— our Federally Insured up to
$5,000 savings accounts are
the solution to your invest
ment and trust problems.
Current dividend 4 per cent.
S ta te m e n t
on
r e q u e s t.
904 Grand Avenue
Des Moines, Iowa
Since
1878
LIBERAL EARNINGS
with
SAFETY
Statement on request
W at e rlo o
Building and Loan
As soci at i on
East Fifth at Lafayette
W ATERLOO
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Federal Reserve Bank of St. Louis
IO W A
A pril Î940
tio n in sm all m unicipalities, ra th e r
th a n concentration of people in cities
of g reat size.”
M aryland is th e only exception to
th e rule, in addition to th e D istrict of
Columbia. M ajority of th e population
in M aryland lives in B altim ore, b u t
savings, building and loan is th e source
of 46 p er cent of th e hom e m ortgage
funds of th e state. T h a t is because
th e re is an u n u su ally high p er capita
b uilding and loan assets in Baltim ore.
The sam e is tru e in W ashington, D. C.,
Mr. E n dicott said.
T hese seventeen states w h ere the
chief dependence for hom e financing
w as on savings and loan w ere the
scene of th e recording of $1,118,119,000
of th e to tal $3,765,595,000 hom e m o rt
gage loans w hich are estim ated to have
been recorded in all th e states by all
m ortgagees last year.
Mr. E n dicott said th a t some of th e
areas in w hich savings and loan is the
dom inant leader today are th e re su lt
of co ncentrated effort of th e p ast few
y ears to inform th e public of savings
and loan services. O thers are in h e rit
ors of a long trad itio n of tak in g th is
in stitu tio n for g ran ted as th e place to
go for hom e m ortgage m oney.
Volume Increases
S ta rtin g th e y ear w ith a loan volum e
w hich o u tstrip ed any Ja n u a ry since
1930, th e savings, building and loan
associations fu rn ish ed $66,944,000 to
hom e buyers, builders and rep airers,
th e U nited States Savings and Loan
L eague points out. T he increase over
Ja n u ary , 1939, w as 20.5 per cent.
C onstruction lending rem ained close
to its high p roportion of th e total loans
w hich it established th ro u g h o u t last
year, accounting for 29.11 p er cent,
M orton Bodfish, Chicago, League exec
u tiv e vice president, indicated. T his
is a h ig h er percentage devoted to new
building th a n characterized th ree of
th e m onths of 1939, he said, although
it is a little off from th e new high in
p ro p ortion of construction l o a n s
achieved in December.
T he $22,039,000 w hich these th rift
and hom e financing in stitu tio n s loaned
to finance th e p u rchase of hom es al
read y bu ilt accounted for th e m ost
spectacular gain in lending in com
p arison w ith last Jan u ary , he said.
D ollar volum e here w as 26 p er cent
g reater. The developing stre n g th of
th e m a rk e t for sm all and m edium cost
hom es is reg istered in th is statistic,
in Mr. Bodfish’s opinion.
“The stren g th en in g m a rk e t for ex
istin g hom es is also spreading out over
la rg e r areas,” he said. “The Ja n u a ry
loan rep o rts show th a t in seven states
•
hom e purchase loans by savings, build
ing and loan associations totalled m ore
th a n $1,000,000, an d in tw o of these
states th e volum e w as w ell over $2,000,000. In Ja n u a ry a y e a r ago only
four states had as m uch as $1,000,000
ASSETS OVER
$ 1, 2 0 0 , 000.00
U N I T ED
Fe d e r a l S a v in g s
AND
LOAN
A SSO C IA TIO N
OF DES MOINES
216 8th Street
Phone 4-5324
73
•SAVINGS
of th is ty p e of loan activ ity an d only
one h ad $2,000,000 to rep o rt. N ot u n til
M ay of 1939 w ere th e re as m an y as
sev en sta te s in th e $1,000,000 class for
hom e p u rch ase loans. L a st A ugust
an d S eptem ber th e re w ere eig h t states
in th is category, b u t th e eig h th state
has h ad a slig h t decrease from th e high
level since.”
P u rch ase of hom es on th e savings,
building and loan plan involves th e
re p a y m e n t of th e full am o u n t of th e
loan u su ally by m o n th ly in stallm en ts
in som ew here b etw een te n and fifteen
y e a rs on th e average, an d in excep
tio n al cases in tw e n ty years, Mr. Bodfish p ointed out. H e estim ated th a t
th e average m o n th ly p ay m en t on th e
c u rre n t hom e p u rch ase loans of these
in stitu tio n s w as ab o u t $24.
1940 C o n ve n tio n
The U nited States Savings and L oan
L eague w ill hold its forty-eighth a n
n u a l convention in Chicago, N ovem ber
13th-15th, it is announced by George
W. W est, A tlanta, president. T his w ill
be th e six th tim e th a t th e organization
has m et in Chicago since it w as
founded h e re in 1892.
As th e first m eetin g in th e ’40’s, th is
convention w ill tak e stock of w h a t th e
decade of th e ’30’s did to and for th e
AND L OAN
savings, building and loan association
business. I t w ill lay m ore em phasis on
th e construction financing function of
th ese in stitu tio n s th a n any n ational
m eeting up to now, Mr. W est said, and
w ill p o in t efforts to m ore definite dom
in atio n of th e housing field by priv ate
en terprise.
T he convention th is fall w ill re p re
se n t a g reater nu m b er of full-time
savings, building and loan associations
th a n an y previous one, he pointed out,
th e tre n d of th e business in th e p ast
decade h av in g been aw ay from th e
once-typical building and loan w hich
m et in th e back of a store and w as ru n
by vo lu n teer w orkers, doing th e book
keeping and m inute-taking alongside
an o th er job. Such in stitu tio n s w ere
in th e g reat m ajo rity w hen th e U nited
States League w as founded in 1892 and
continued to send probably a m ajority
of th e delegates w ho atten d ed these
conventions up u n til nine or ten years
ago.
“The big difference w hich th is tre n d
to w ard a full-tim e business m akes to
th e public is th a t now adays th e sav
ings and l o a n
associations are
equipped to handle a volum e of loans
such as nobody w ould have th o u g h t
possible as late as tw e n ty y ears ago,”
said Mr. W est.
•
C onvention delegates w ill come from
all of th e states and from H aw aii and
A laska, he predicted. T hey w ill re p re
sen t ro u g h ly $6,000,000,000 in assets.
M ERCHANTS
M U T U A L
B O N D IN G
COMPANY
Incorporated 1933
Horn« Office
V A L L E Y B A N K B U IL D IN G
Des Moines, Iowa
•
*
This is Iowa’s oldest surety company.
A progressive company with experi
enced, conservative management. We
are proud of our hundred and fifty
bank agents in Iowa.
To be the exclusive representative of
this company is an asset to your bank.
•
•
W rite to
E. H. WARNER
REST* PLAY* RESTORE HEALTH
Secretary and M anager
77
LET'S
P
E
P
U
P
WITH THE WORLD FAMOUS
M I N E R A L W A T E R S OF
Hotel
Wellington
«xce is io R
SP JU N O S
W e are liap p y to list am ong
MISSOURI
M in e ra l w aters used in
treatm ent of arthritis,
rheumatism, e tc __ All
sports. A m e ric a n Plan
including all meals from
$6. single, $11. double.
ELMS HOTEL
o u r re g u la r guests, a larg e n u m
b er of th e h a n k in g fra te rn ity .
77
Y ou too w ill th o ro u g h ly en joy
o u r C ourtesy an d H o sp itality .
S u rp risin g ly R easonable R ates
Rooms With Bath
$2.00— $2.50
F a rn a m at 18th S treet
OM AHA
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
April 19b0
74
--- • I O W A
P O S IT IO N W A N T E D
E x e c u tiv e w ith m an y y e a r s b a n k in g and
r e c e iv e r s h ip e x p e r ie n c e d e s ir e s c o n n ectio n
w ith bank or fin an ce com p an y. I n v e stm e n t
d esire d b u t n ot im p e r a tiv e .
A d d re ss 3272,
N o r th w e ste r n B an k er, 555 7th S tr e e t, D e s
M o in e s, Io w a .
KOCH BROTHERS
P R M T E R S - B O O K B in O E R S - OFFICE OUTF IT T ER S
S T A T IO D E R S - B USI lì ESS m O C H IR E S
G R R n 0
fl V E fl U E
RT
FOURTH
Specialized
HARVESTING MACHINERY
Ia u u
ij j y
Threshers
Com bines
Corn Pickers
Dependable products for over 50
years to Harvest and Thresh all
grains and seeds.
A good
owners.
investment
for
farm
A profitable business for dealers.
Safe and desirable farm paper is
profitable for local financing.
□
Wood Bros. Thresher Co.
Des Moines, Iowa
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
April 19b0
NEWS
*
Fire's Friend
D estructive fire has m any allies. And
one of th e m ost p o ten t is disorder.
The w orkship w here saw dust is
allow ed to rem ain on th e floor, w here
p ain ts and varn ish es and solvents are
sto red im properly, and w here cleaning
rags are dropped in helter-skelter
fashion here and there, is obviously far
m ore prone to fire th a n th e shop w here
refu se is im m ediately rem oved and
supplies are kep t neatly in safe con
tain ers. T h at goes as w ell for th e
co rn er garage, store or m achine shop.
M any a m ajor fire has resu lted from
an innocent looking pile of w aste rags
in a backroom .
The sam e th in g is tru e of homes.
Y our hom e is neat, o rderly and safe,
you say. P erh ap s it is, b u t th e re ’s a
b e tte r th an even chance th a t a th o r
ough to u r of inspection w ould resu lt
in some sta rtlin g discoveries. Rem em
b er all those old m agazines y o u ’ve been
sto rin g up to read in th e future? P ro b
ably y o u ’ll n ever look at th em again—
and in th e m eantim e, th ey offer fire
an excellent sta rtin g point.
And
w h a t about those uncovered cans of
v arn ish, oil, or tu rp e n tin e in the base
m ent, w hose tops m y steriously disap
peared?
R em em ber, too, those hit-and-m iss
re p a irs you m ade on lam p cords—am a
te u r electric w ork accounts for m il
lions of dollars of fire loss each year.
A nd don’t forget th e cartons of old
clothes w hich you should have given
aw ay long ago to a charitable organiza
tio n —fire th riv es on such accum ula
tions.
M ake th a t fire-prevention to u r of
y o u r p ro p erty today. It will be a
m iracle if you don’t find hazards you
d id n ’t know existed.
An
"E c o n o m ic " W a r
T here has been b itte r fighting in
th is w ar—b u t th e arm ies have been
h a rd ly involved in it as yet. The
w eapons used have been economic and
diplom atic. A nd now, as th e w ar
en ters its second half-year, th e ques
tio n of food begins to overshadow all
others.
W ell know n are th e sp artan m eas
u res tak en in Nazi G erm any to con
serve h e r m eager food supplies—
typical G erm an diet, judged by A m er
ican standards, is at a bare subsistence
level. T he Allies m oved slow er in
re stric tin g food, b u t th ey too have re
cently been forced to take drastic steps.
E ngland, w hich m u st im p o rt or die,
has clam ped dow n h ard on th e n atio n ’s
dining table. E ach ad u lt is p erm itted
to spend b u t one-and-ten a w eek (about
40 cents) on pork, beef or m utton.
W hiskey production has been de
creased tw o-thirds. Across th e ch an
nel, in F rance, hom e of th e gourm ets,
still m ore severe restrictio n s have
gone into effect—re sta u ra n ts can serve
only two-course m eals, p a stry shops
m ust close th ree days w eekly, etc. A nd
spokesm en for th e allies have in ti
m ated th is is b u t th e start.
F e a r th a t th e Allies m ay be sh u t
off from essential supplies has caused
some to forecast th e ir probable defeat
—U. S. A m bassador to B ritain K en
nedy is rep o rted to have said th a t
H itler has a 55-45 chance of w inning.
H ow ever, th e bulk of th e ex perts are
bettin g on B ritain and F ran ce if it is
a len g th y w ar. G erm any’s m ain hope,
th e y still th ink, lies in “b litzk rieg ”—
lig h tn in g w ar to force a sw ift decision.
Protective Trade Tools
B ritish restrictio n s on trad e w ith
th e U nited States come again into
sh arp discussion by th e announcem ent
th a t all food im ports will, after this,
be u n d er license. T his w ill doubtless
facilitate th e total p rohibition of some
fu rth e r im ports; it w ill not su b stan
tially affect o th er foodstuffs.
T he
B ritish take th is step in th e ir anxiety
to conserve th e dollar exchange, w ith
out w hich th ey cannot, u n d er our cashand-carry legislation, buy in our
m arkets.
The enem ies of the H ull trad e pro
gram are p re tty likely to seize on such
prohibitions as an a rg u m en t against
passage of th e resolution extending the
P re sid e n t’s pow er to negotiate trad e
agreem ents for a n o th er th ree years.
Yet no arg u m en t w as ever m ore illog
ical. W e have trad e agreem ents w ith
th ree w arrin g pow ers—th e U nited
Kingdom, Canada an d France. In the
first four m onths of th e w ar our ex
po rts to Canada am ounted to $248,000,000, as ag ain st $170,000,000 in th e sam e
period of th e previous year.
The
figures for th e U nited K ingdom w ere
$262,000,000, as ag ain st $239,000,000,
and for F rance, $112,000,000 as against
$59,000,000.
It is, of course, tru e th a t th e ch ar
acter of our ex p o rt business w ith the
belligerents has changed since th e ir
belligerency began. T hey buy less
food, b u t th ey buy m ore p roducts di
rectly useful for m aking w ar. This
m ay be reg rettab le, and S enator Nye,
am ong others, has v ehem ently re g re t
ted it. B ut th e sh ift is an inescapable
effect of w ar, surely not to be blam ed
on th e H ull trad e program as such.
«
y
\
.M
75
NEW 1 9 4 0
I O W A -N E B R A S K A
BANK DIRECTORY
(Published by the NORTHWESTERN BANKER, Des M oines)
The new 1940 edition of the Iowa-Nebraska Bank
Directory is now off the press. In it you’ll find
the most complete and la te st information on
Iowa and Nebraska banks, including personnel,
capital, surplus, deposits, loans and discounts,
bond holdings, correspondent banks and other
valuable data.
The Directory Contains
Complete list o f all Association Officers
Latest official personnel o f all Iowa and
Nebraska banks
All material obtained direct from the banks
Iowa-Nebraska Bank Directory
555 Seventh Street
Des Moines, Iowa
U nless y o u ’ve already done so, send us you r
______________________? 1940.
Gentlemen:
tories y o u ’ll need fo r y o u r organization. Use
Please send__________copies of your 1940 Iowa-Nebraska Bank
Directory to us, and we will remit at the rate of $2.00 per copy
upon receipt of your Directory.
the h a n d y co upo n at the right.
Company__________________________________________________
o rd e r at once fo r the n u m b e r o f b a n k direc
Officer____________________________________________________
City______________________________
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
State----------------------------
76
— •IOWA
Blaming the "O t h e r Fellow "
I t ’s a h u m an failing to blam e th e
“o th er fellow ” for an u n fo rtu n a te con
dition. A nd A m erica’s b an k s have
been th e “o th er fellow ” to a w ide ex
ten t. One of th e m ost com m on criti
cism s of b an k s has been to blam e th em
for th e “idle m oney” th a t reposes in
th e ir v aults, out of p roductive use.
T h ere is idle m oney in banks, of
course—b u t to blam e th e b a n k e r for
it is m uch like blam ing y o u r tailo r
because y o u r su it needs pressing. As
R. C. Leffingwell recen tly observed,
“The am o u n t and velocity of individual
Policyholders M u tu a l
Casualty Company
Legal Reserve— Maximum Service
H om e O ffice: W est L ib erty, I o w a
B u sin e s s Office: D es M o in e s, I o w a
•
F u ll C overage A u to m o b ile
A ccid en t an d H e a lth
A g e n c y I n q u ir ie s I n v i t e d
Go Sporty in /40
with Frankel*s
Slack an d ja c k e t suits
fo r
club
or
ra c q u e t
w eek-ends. M ixables or
m atch ables.
H u n d re d s
of contrasts.
1st an d 2nd F loor
FR A N K E L ' S
D E S M O IN E S
NEWS- —
b an k deposits are determ ined by th e
depositor, n o t th e banker. It is th e
depositor w ho decides w hen and w ith
w hom and in w h a t am ount he deposits
his m oney . . . T he b an k er has n o thing
to do w ith th ese things, or precious
little. H is business is to keep him self
in a position to honor th e checks w hen
th e y are presented, to ru n a safe and
sound bank. A nd th e b an k er w ho
un d ertook to tell th e depositor how
to m anage his business, soon w ould
have no deposits to w o rry about.”
T he people w ho own th e m oney th a t
lies idle in our banks w ill spend and
in v est it w hen th ey feel confidence in
th e fu tu re. W hen th ey are doubtful
and w o rried th ey ten d to keep every
cent possible in im m ediately obtainable
cash. No sane m an w ill risk his capital
w h en g overnm ent is p u rsu in g a policy
of p ersecu tin g business, com peting
w ith business, or tax in g business out
of its profits.
Econom ic progress
com es from th e in v estm en t of “v en tu re
cap ital”—M oney p u t into new and
n ecessarily speculative enterprises.
All th e g reat in d u stries today w ere
once highly speculative—th e radio,
autom obile, telephone,
light and
pow er, etc. F o r every one th a t suc
ceeded, probably a h u n d red o th er en
te rp rises failed. V enture capital is
a b u n d an t only w hen profits com m en
su ra te w ith risk are possible. I t is
scarce in tim es like th e p re se n t w hen
economic and political tren d s u nduly
re s tric t and elim inate profits.
T here are billions in th e banks w hich
should go into productive industry.
B ut th e depositors w ill keep those bil
lions w here th ey are u n til th ey feel
reasonably sure th a t business w ill be
allow ed to go ahead if it can, and th a t
th e in v esto r m ay reap fair profits if
th e v en tu res into w hich he p u ts his
m oney succeed.
(F ro m “In d u strial
N ew s R eview .” )
L. W. HOLLEy & SONS
Comple te B A N K and O F F IC E Equipment
100 EAST GRAND
DES MOINES, IOWA
I o w a ’s L a r g e s t B u s in e s s T r a in in g S ch o o l
Many banks, bond-houses, insurance
companies and other financial insti
tutions employ A. I. B. graduates.
Write or telephone when you need
efficient office employes.
E. O. FENTON, Director
American Institute of Business
A su rv ey of U nited States m ilitary
ex p erts in W ashington reveals th at, in
general, th ey figure th e odds on the
w a r’s outcom e approxim ately as fol
lows: A decisive G erm an victory, one
chance in ten; a decisive Allied victory
one chance in five; a stalem ate, w ith
both sides exhausted, tw o chances to
one. These odds are subject to change,
of course, should th e Allies enlist Italy
or T urkey, or if G erm any gets th e
active m ilitary su p p o rt of R ussia or
Italy. (“The P eriscope,” New sw eek.)
DES MOINES
10th and Grand
Tel. 4-4221
V iv ise ctio n "
In a recen t radio address, Congress
m an E m anuel Celler of New Y ork
m ade th is p e rtin e n t observation on the
Northwestern Banker
B a n k in g S u p p lie s o f H ig h e st Q u a lity —
C o u rteo u s S e rv ic e — S e n sib le P ric e s.
O d d s on the W a r
"E c o n o m ic
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
tim es we live in: “W e have trie d m any
w ays—spending, borrow ing, p u m p
prim ing, and tax atio n —for reform , to
say n o thing of o th er reg u lato ry law s
th a t have tended to h a m strin g th e
capitalist system . T he only altern a tiv e
rem ain in g seem s to be to build Amercia’s national incom e by lettin g A m er
ican business build it. T he one th in g
needed is som e so rt of a g u a ra n ty th a t
th e era of econom ic vivisection is over,
so th a t e n terp rise can get up off th e
floor, d u st itself off and go to w ork,
w ith o u t th e ever-present fear of being
blackjacked.”
Y
J la u j-e A i
O u r policy p rovides a m ax im u m
assessm ent of 2 x/z % in Zones
O ne an d Tw o— an d 3 ‘/ 2 % in
Z one T h re e (W estern Io w a).
*
Hawkeye Mutual Hail
Insurance Association
Carver Bldg.
J
Fort Dodge, Iowa
A pril 19W
Y
77
IOWA
NEWS
—
to m ake th e ir report, w hich said,
T he In v e stm e n t B an k ers Associa am ong o ther things, ‘I t appears to us,
tio n of A m erica w an ts p ro m p t changes as a m a tte r of general principle, m ost
in th e F ed eral secu rities law s so th a t undesirable, in order to defeat an occa
sional wrong-doer, to im pose re stric
“savings can be p u t to w o rk creatin g
tions
w hich w ould seriously ham p er
jobs,” an d a t th e sam e tim e it is asking
for a “scientific stu d y ” p re p a ra to ry to th e activities of h o nest m en an d w ould
a fu n d am en tal revision of th e law s ad in ev itab ly react upon th e p ro sp erity
m in istered by th e Securities an d E x and com m erce of th e co u n try .’ ”
Mr. Connely m entioned incidentally
change Com m ission. T his w as stated
by E m m e tt F. Connely, p resid en t of th a t th e F ed eral R eserve Act provides
th e association, before th e fifth a n n u al for re p resen tatio n of b an k ers on th e
conference of th e C entral S tates G roup board of governors and also for an ad
of th e organization. B oth objectives v isory com m ittee com posed of b a n k
of th e association can be accom plished ers. T he act req u ires th a t th e board
w ith o u t in an y w ay d istu rb in g th e fu n shall include “a t least tw o experi
d am en tally sound p rinciples upon enced in ban k in g and finance,” he
pointed out, adding, “It seem s logical
w hich th e law s rest, he said.
“W e agree e n tire ly w ith Com m is th a t in revisions to th e securities acts
sioner M athew s,” Mr. Connely said, re provision m ig h t be m ade for enlarging
fe rrin g to a sta te m e n t m ade by George th e com m ission and including on it
C. M athew s w h en he resig n ed from m en experienced in th e inv estm en t
th e com m ission. “H is sta te m e n t said, b an king field.
‘B asically, all th e sta tu te s adm inis
te re d by th e SEC are sound laws.
T hey are capable of im pro v em en t as
conditions w a rra n t. B ut if th e re is to
be real im p ro v em en t of th ese law s
th e ir revision should be u n d e rta k e n as
a scientific job.’
“T h a t is th e b est w ay to accom plish
o u r objectives,” Mr. C onnely said.
“W e w a n t a scientific job done by th e
b est b rain s in th e country. H ow ever,
th a t w ould ta k e a long tim e so th a t
A
th e secu rities law s w h en finally re A l l e n W a l e s A d d i n g M a c h i n e C o r p .......... 79
A l l y n a n d C o m p a n y , A . C . . . ............................36
vised w ould reflect ex h au stiv e study. A m e r i c a n I n s t i t u t e o f B u s i n e s s .................. 7b
A
m e r i c a n N a t i o n a l B a n k a n d T r u s t C o . . .68
It is c ertain ly logical th a t th is w o rk be
n
au th o rized by Congress a t an early
p a n y ..................56 a n d 57
date. B oth th e Securities Act of 1933 BB ra enwk ee rr s CTo rmups at n Cy ,o m
V . W ......................................... 34
an d th e Securities E x change A ct of
C
1934 w ere pieces of ‘m u st’ legislation, C e n t r a l H a n o v e r B a n k a n d T r u s t C o ...........48
p u t th ro u g h in p anicky haste. The C e n t r a l N a t i o n a l B a n k a n d T r u s t C o ----- 3
C e n t r a l S u r e t y a n d I n s u r a n c e C o r p ............. 24
1933 act w as passed w ith in six ty days C h a s e N a t i o n a l B a n k ............................................. 6
a n d T r u s t C o m p a n y . 42
a fte r th e P re sid e n t asked Congress to CC iotmy mNeartci eo nTa rl uBs ta nCko ..................................................
64
C
o
n
t
i
n
e
n
t
a
l
I
l
l
i
n
o
i
s
N a tio n a l B an k and
provide F ed eral superv isio n of th e in
T r u s t C o ......................................................................... 60
v e stm e n t business. I t w as m aterially
C o n t i n e n t a l N a t i o n a l B a n k ............................... 43
revised in 1934 b u t n o t since. T he Se
n
cu rities E x change A ct w as passed D a v e n p o r t a n d C o m p a n y , F . E . . . .42 a n d 58
e L u x e C h e c k P r i n t e r s , I n c .......................... 67
w ith in less th a n n in e ty days from its D
D es M oines B u ild in g L o a n a n d S a v in g s
A s s ’n .............................................................................72
intro d u ctio n .
D o u g las-G u ard ian W areh o u se
C o r p ........ 50
“So fa r as I know th e re is n o th in g D r o v e r s N a t i o n a l B a n k ..........................................65
in h isto ry com parable to such sw eep
E
ing g ra n ts of pow er being enacted so E l m s H o t e l ..................................................................... 73
h astily. In co n trast, th e F ed eral R e E p p l e y H o t e l s C o m p a n y ....................................... 42
F
serve A ct w as five y ears in th e w rit
o f I o w a . 26
ing, and it has been re w ritte n re p e a t FF ea dr me rearl s DMi us ct uo auln tH aCi lo rI pn os .r aAt isos ’n
n ........................ 31
F
e
d
e
r
a
l
H
o
m
e
L
o
a
n
B
a
n
k
o
f
D
e
s
M o i n e s . 70
edly since, ju s t as w e are suggesting
F i r s t F e d e r a l S a v i n g s a n d L o a n A s s ’n,
be done w ith th e secu rities law. Study
C h i c a g o ........................................................................70
F i r s t F e d e r a l S a v i n g s a n d L o a n A s s ’n,
p re p a ra to ry to th e F ed eral R eserve
M i n n e a p o l i s ..............................................................72
A ct w as sta rte d in 1908 and th e act w as F i r s t N a t i o n a l B a n k , C h i c a g o .......................... 40
F i r s t N a t i o n a l B a n k M i n n e a p o l i s .................49
passed in 1913. I t w as am ended tw ice F i r s t N a t i o n a l B a n k , S i o u x C i t y ......................59
..6 1
in 1914, again in 1915, 1916, 1917, and FF ir sahnekre lC oCml optahni ny g ...................................................
C o m p a n y ............................... 76
in n u m erab le tim es since.
G
“W hen th e B ritish contem plated re G e n e r a l M o t o r s A c c e p t a n c e C o r p o r a t i o n . 33
vision of th e ir C om pany Act, it a p
II
pointed a com m ission of ex p erts in H a w k e y e M u t u a l H a i l I n s . A s s ’n ................ 76
l l e y & S o n s , L. W ........................... .. . . -......... 7 6
1925 and gave th em alm ost five y ears HH oo m
e B u i l d i n g a n d L o a n A s s o c i a t i o n . . 72
W a n t s Law C h a n g e d
Index to
Advertisers
“I t is ap p aren t th a t to do th is job
rig h t, considerable tim e is req u ired
for study,” he em phasized. “In th e
m eantim e, how ever, capital is lying
idle and some tem p o rary rem edial ac
tion has becom e im perative so th a t
savings can be p u t to w o rk creating
jobs. W ith o u t in any w ay a lterin g th e
basic un d erly in g principles of th e acts,
w e believe some im plem enting am end
m ents could be enacted th a t w ould
p artially solve th e problem . W ith con
ditions as critical as th e y are a t pres
ent, th e re is no tim e to be lost. A few
com paratively sim ple changes in th e
law s w ould u n tie our hands an d en
able us to function m ore norm ally in
financing recovery an d business ex
pansion. W e ask for th em now. W e
also ask th a t th e s ta rt be m ade now on
th e ‘scientific stu d y ’ th a t is to lead to
a com plete overhauling of th e legisltio n .”
H o m e F e d e r a l S a v i n g s a n d L o a n A s s ’n . . 72
H o m e I n s u r a n c e C o m p a n y ................................. 5
H o t e l W e l l i n g t o n ...................................................... 73
I
I o w a B a n k D i r e c t o r y ............................................ 75
Io w a -D e s M oines N a tio n a l B a n k a n d
T r u s t C o ......................................................................... 80
I o w a I n v e s t m e n t B a n k e r s A s s o c i a t i o n . . .29
K i r k e b y H o t e l s .........................................................27
K o c h B r o s ..........................................................................74
L
L a M o n t e a n d S o n , G e o r g e ................................. 4
L a m s o n B r o t h e r s a n d C o m p a n y ......................35
L e s s i n g A d v e r t i s i n g C o m p a n y ........................76
L i v e S t o c k N a t i o n a l B a n k , C h i c a g o ............58
L i v e S t o c k N a t i o n a l B a n k , O m a h a ..............41
L i v e S t o c k N a t i o n a l B a n k , S i o u x C i t y . . . 44
M
M c G u i r e , W e l c h a n d C o m p a n y ........................ 33
M e r c h a n t s M u t u a l B o n d i n g C o ....................... 73
M e r c h a n t s N a t i o n a l B a n k ................................. 2
M i n n e a p o l i s M o l i n e I m p l e m e n t C o ................52
M o r t g a g e I n v e s t m e n t C o r p o r a t i o n ..............34
N
N a t i o n a l B a n k o f D e t r o i t .................................. 50
N a t i o n a l B a n k o f W a t e r l o o ............................. 62
N o r t h e r n T r u s t C o m p a n y .....................................66
N o rth w e ste rn N atio n al B a n k and
T r u s t C o ........................................................................46
O
O m a h a N a t i o n a l B a n k ............................................19
P
P h i l a d e l p h i a N a t i o n a l B a n k ............................. 37
P o l i c y h o l d e r s M u t u a l C a s u a l t y C o ................76
P o lk C o u n ty F e d e ra l S av in g s an d L o an
A s s ’n .............................................................................70
S
S e c u r i t y N a t i o n a l B a n k .....................................67
S h a w , M c D e r m o t t & S p a r k s ................................32
S t o c k Y a r d s N a t i o n a l B a n k , O m a h a ..........38
S t o c k Y a r d s N a t i o n a l B a n k , S t. P a u l . . . . 51
T
T w in C ity F e d e ra l S a v in g s a n d L o a n
A s s ’n ......................................................................
U n i o n B a n k & T r u s t C o ..................................... 63
U n i t e d F e d e r a l S a v i n g s a n d L o a n A s s ’n . 72
U n i t e d S t a t e s C h e c k B o o k C o m p a n y . . . . 69
V
V alley S av in g s B a n k
...........................................69
W
W a n t A d .......................................................................... 74
W a l t e r s C o m p a n y , C h a r l e s E ............................ 43
W a t e r l o o B u i l d i n g a n d L o a n A s s ’n .............. 72
W e s t e r n M u t u a l F i r e I n s u r a n c e C o ............. 22
W o o d B r o s . T h r e s h e r C o m p a n y ......................74
Northwestern Banker
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Federal Reserve Bank of St. Louis
72
U
A pril 1940
78
In
the
D irectors' Ro o m
A n d Plenty
R om e o M iz 'n
“D on’t you ev er do a n y th in g on
tim e?” roared th e boss to his new
clerk.
“S ure,” said th e clerk. “T h a t’s how
I bou g h t m y car and radio.”
Sam held h e r h an d an d she held h iz’n,
A nd th e n th ey hugged and w e n t to
k iz’n.
T hey did n ot know h e r dad h ad riz ’n,
M adder th a n hops an d sim ply siz’n.
A nd really ’tiz ’n rig h t to liz’n,
B ut Sam got h iz’n and w en t out
w h iz’n.
A h em !
T he clergym an w as w alk in g th ro u g h
th e village w h en he m et one of his
parish io n ers.
“H ow ’s y o u r cold, D onald?” he
asked.
“V erra obstin ate,” replied th e p a rish
ioner.
“A nd how is y o u r w ife?”
“A bout th e sam e.”
A c q u a in ta n c e
surgeon had a b rillia n t idea. Now is
th e tim e to end th is cat business for
once and all. He sen t out for a black
tom cat and w hen th e patient strug
gled o ut of th e ether, th e surgeon
p ro u d ly held up th e wide-eyed tom
an d said: “Y our troubles are all over
now. Look w h a t w e took out of you.”
T he n u t hugged his tu m m y and
m oaned, “Dopes, you got th e w rong
cat. T he one th a t’s been bo th erin g
m e is a w h ite one!”
A n en th u siastic golfer cam e hom e
to dinner. D uring th e m eal his w ife
said:
“W illie tells m e he caddied for you
th is aftern o o n .”
“W ell, do you know ,” said W illie’s
fath er, “I th o u g h t I ’d seen th a t boy
before.”
G ent—I w an t a d rin k on credit, pal.
I need it for m y nerves.
B arten d er—Huh! A guy w ho asks
for credit in th is jo in t a in ’t got n o th
in ’ w rong w ith his nerves!
Sam e O ld G a l
Follow the H o u n d s!
He—T h a t d riv e r ahead m u st be Miss
Fiditch , m y old school teacher.
She—W hy?
H e—She seem s to be so re lu c ta n t
abou t lettin g m e pass.
“My hom e tow n is so sm all,” a vis
ito r told us, “th a t our F ire D epart
m en t consists of hose, c a rt and four
dogs.”
“W h at do th e dogs do, haul th e
c a rt? ” w e querried.
“No,” he snorted, “th ey find th e h y
d ran ts!”
T o o d le -O o o
T he M an—I w a n t a loaf of Mumsie’s B read, a package of K runchies,
some Goody Sanny Spread, Ole M am
m y ’s Lasses, O range Pully, a pound
of A u n t A n n ie’s su g ar candy, BitseyBite size.
The C lerk—-Sorry. No K runchies.
H ow ab o u t K rin k ly K risps, OatsieToasties, M alty-W heaties, R iceltes or
E atum -W heatum s ?
T he M an—T he W heatum s, then.
The Clerk—A n y th in g else? Tootsies,
T ate ry Chips, Cheesie W eesies, Gingile Bits, Itsey Cakes, Sweetzie Toofum s, or D ram m a’s D oughnies?
The M an (toddling to w ard th e m eat
d e p a rtm e n t)—“Dot to det some m eat.”
Tummy Tale
A c u rre n t silly has to do w ith th e
m aniac w ho firm ly believed th a t all
his tro u b le w as due to a cat in his
tum m y. T he feline, he told doctors,
stam p ered aro u n d inside an d caused
no end of agony an d discom fort. Came
th e day w h en he really becam e ill, a
bad appendix. W hile o p eratin g th e
N orthwestern Banker
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Federal Reserve Bank of St. Louis
A pril 19b0
G iv e H im C re d it
This
T his is n o t v ery in terestin g
B ut if
You have read th is far already
You w ill
P robably
R ead as far as this:
A nd still
N ot really accom plishing
A nything a t all
You m ight
E v en read on
As far as this,
W hich brings you to
The line you are reading now,
A nd afte r all th at, you are still
P robably curious enough to keep
R ight on m aking
Y ourself
A b it gullable
By reading
As fa r dow n
T he page
As
This.
N aturally
A nd then, of course, th e re w as th e
optician’s daughter. Two glasses, and
she m ade a spectacle of herself.
Stu d y in Figures
“So you m et M arian today?”
“Yes, I h a d n ’t seen h e r for ten
years.”
“H as she k ep t h e r g irlish figure?”
“K ept it? She’s doubled it.”
In a Nutshell
“Well, m ake it sh o rt,” snapped th e
housew ife as she answ ered th e knock
of th e ragged individual a t h e r back
door.
T he tram p took a deep b reath , and
blurted:
“W ill you, m a’am, give m e a d rin k
of w ater, because I ’m so h u n g ry I
don’t know w here to stay to n ig h t? ”
N o A n yth in g Else
A sailor w as aw ay on a long voyage,
received a letter. O pening it, he took
out a blan k sheet of paper. H is pal
rem arked: “Hey, Bill, w o t’s th e bloom
in ’ idear of th e blan k p y p er?” “Goblim e,” said Bill, “th a t a le tte r from
’ome. Me and th e m issus a in ’t a
sp eakin’.”
Caught
I t w as d u rin g Prohibition.
The
railro ad statio n w as packed w ith a gay
going-aw ay throng. Over a t one side
of th e w aitin g room , stood a quiet
little m an, figeting about and a tte m p t
ing to hide him self from th e crowd.
A federal ag en t noticed th a t th e
stra n g e r had som ething in his coat
pocket from w hich drops w ere falling
in slow trickles. The Fed, w ith a
gleam in his eye, collared th e gent,
p u t a finger out u n d er th e drops,
caught one and tasted it. T hen he
spoke to th e m an.
“Scotch?”
“Nope,” replied th e stran g er, “Airdale pup!”
SPEED - CERTAINLY but ACCURATE, TOO!
W h y ? B e c a u se o n ly A llen W a le s a d d in g m a c h in e s offer y o u
a ll th e se " s p e e d w ith a c c u r a c y " fe a tu re s: a u to m a tic c ip h e rs —
ste p -u p , error proof k e y b o a r d —fe a th e r to u c h o p e r a t io n - t r ip l e
v isib ility — scientific o p e ra tin g k e y p la c e m e n t — a n d co u n tless
o th er q u a lity fe a tu re s th a t o n ly trial c a n tell. • M a y w e set
u p a m a c h in e for y o u r sta ff to te s t u n d e r y o u r r e g u ir e m e n ts? N o o b lig a tio n . T hen youT l a g re e , w e b e lie v e , th a t A llen
W a le s o u tp erfo rm s a n y o th er a d d in g m a c h in e on th e m ark et.
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serve Iowa Banks effectively because:
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