Full text of The Northwestern Banker : April 1941, Forty-Sixth Year, Number 645

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L

A P R

C L IF F O R D S. Y O U N G
President, Federal R eserve Bank, Chicago

BA N K D IRECTO RS W A N T T O HELP


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Page 11

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DEPENDABILITY
We conceive good correspondent service to be the kind which
increases in dependability through the years.
Hundreds o f banks in the m iddle west feel that way about
Merchants National Bank service, and for com plete, experi­
enced and Dependable service they recom m end this insti­
tution.

A CEDAR RAPIDS BANK

SERVICING A LL IOWA

MERCHANTS
NATIONAL BANK
OFFICERS
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 m ith , 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 Manager

C e d a r R a p id s

Io w a

Member Federal Deposit Insurance Corporation

N orthw estern Banker, published m onthly by the De Puy P u blishin g Company, Inc., at 527 7th Street, D es M oines, Iowa.
Subscription, 35c per copy, $3.00 per year. Entered as second-class matter at the D es M oines post office. C opyright, 1941.


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3

trained personnel and
m o d ern physical facilities
serve to make a correspond­
ent c o n n e c tio n with this
hank VALUABLE . . . and a
»

genuine spirit o f helpful­
ness makes it a PLEASURE.
“ I O W A ’S F R I E N D L Y

BANK”

CENTRAL NATIONAL BANK
AND TRUST COMPANY
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 T IO N


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4
PR O T E C T I I
IN V IS I BL

V A L U E S NO.

M U L T I P L Y ^ . * /

yxtrrtcf'0"

HIS low-cost addition to coverage m-u-l-t-i-p-l-i-e-s

'* ¿ £ ¡2

the protection you get in the fire policy. The policy­

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holder enjoys coverage against seven more hazards that

these mishaps occur,

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W h e n n e w ly w e d
build on borrow ed

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can recommend Ex-

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te n d e d C o v e ra g e
fo r sounder protec-

m ortgage values.

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— an endorsement
on the fire policy —
more policies at al-

dustrial loans, it is
a dvisa ble to check

VEHICLE
DAMAGE
RIOT

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a p p lic a n t 's

tm
Ml*®

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WINDSTORM
SMOKE &
SMUDGE
AIRCRAFT
DAMAGE

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most n egligible cost.

Y our lo c a l a g e n t
will show you how.

g r a n t in g

Exten ded C o vera g e.

Exten ded Coverage

is like adding seven

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p ro perty policies fo r

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EXPLOSION
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co m m ercial o r in-

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tion o f homes and

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money, m ortgagees

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t a p p e d to r e p a ir
dam age if and when

Explosion, Smoke and Smudge, Aircraft Damage, Riot.

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N ow his savings account need not b e

effectively as fire: Hail, Windstorm, Vehicle Damage,

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tion For his home,

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may endanger his financial position as surely and as

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The personal saver

^as greater protec-

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T U I?

A M I'
1 Ilili RflUiVlJL

INSURANCE
COMPANY

N E W YORK
FIRE ~ AUTOMOBI LE

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MARI NE

ncl

ALLIED

LINES

OF

I NSURANCE

Is Y o u r Bank
W e l l D re sse d ?

Business men know the value of a good personal appearance. Good grooming has
therefore become a part of good busi­
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Attractive fixtures are also good business
for a bank. They promote confidence and
good will, giving a bank a definite per­
sonality.
The Fisher Company specializes in highgrade bank fixtures designed for beauty
and efficiency. Every detail of modern­
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ESTABLISH E D
18 7 0

Charles City , Iowa
B A N K

F I X T

Northw estern Banker

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April 19M

6

“O n Active D u ty ”
Surely, steadily, the power of this nation to

of credit dollars is mobilized, assuring

defend itself has emerged from the ;/prep-

industry of sufficient funds to meet the

aration/y stage; great planes, sturdy tanks,

demands of our huge national defense

new warships, modern arms are pouring

program. Today, credit answers this call

from the crucibles of the national effort.

to service at costs to the borrower lower

Less frequently headlined, but also a

than ever before in the nation’s history.

necessary part of our protection, are blan­

The Chase, in its relationships with

kets, drills, tent cloth, heavy shoes and

correspondent banks throughout the

thousands of other essentials—all vital to

country, is cooperating in vigorous

a fully prepared, fully equipped America.

measure in the financing of defense in its

Behind this gigantic effort a great army

varied phases.

THE CHASE NATIONAL BANK
O F THE CI TY O F N E W Y O R K
Member Federal Deposit Insurance Corporation

N orthwestern Banker

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A pril 19M

✓

•

•

N O R TH W ESTER N

•

A P R I L
19 4 1
• • •

FO RTY-SIXTH Y E A R

NUM BER 645

Oldest Financial Journal West of the Mississippi River

IN THIS ISSUE
Editorials
Across the Desk from the Publisher
C LIFFO RD DE PUY
Publisher

R A L P H W. M O O R H E A D
Associate Publisher

H EN R Y H . H A Y N E S
Editor

J. STUART D A V IS
Associate Editor

8

Feature A rticles
Frontispiece ................................................................................. ..................................... .......
Bank Directors Want to Help...................... ......... ........................ .......... A. C. Sidner
News and Views..........................................................................................Clifford D eP uy
Seven Reasons Why Banking Isn’t a Serious Business............ C. W. Fishbaugh
A Five-Point Program for Country Banks....................................................................
The Present and Future of the Private Investment Market........G. L. Harrison
N orthwestern B anker D igest of Bank M anagement,.-..... ......... ............................
Legal Department— Who Is Liable?......................... .......................... .......................... .
School Savings— Will They Return as a Form of Thrift?........................................

10

11
12
13
14
15
16
18
20

Insurance
Comprehensive Liability Coverage and Real E sta te-.....................Rexford Crewe 23

527 Seventh Street,
Des Moines, Iowa
Telephone 4-8163

•

•

The Month’s M arket Maneuvers

.James H. Clarke 28

State Banking News

N EW Y O R K O FFICE
Frank P. Syms
Vice President
505 Fifth A ve.

Bonds and Investments

Suite 1202

Telephone MUrray Hill 2-0326

M IN N E A P O L IS O FFICE
Jos. A . Sarazen
Associate Editor
Telephone Hyland 0575

Nebraska N ew s........................................................................................................................
1941 Group Meetings....................................................................................................
Omaha Clearings.............................................................................................................
Lincoln Locals....................................................................................................................
South Dakota N ew s......................................
Minnesota N ew s........................................................................................................................
Twin City N ew s..........................................................
North Dakota N ew s............................................................................................
Iowa N ew s............................................................................................................................... —
He Calls Them by Their F irst Names............................................ ............ ............
Iowa News From Here and There............................................ ......J. A. Sarazen
Douglas-Guardian Holds Convention..............................

35
35
37
39
41
43
45
48
49
54
59
64

The Directors’ Room
A Few Short Stories to Make You Laugh.............. .......................................................... 70
M EM BER
Audit Bureau of Circulations
Financial Advertisers Association

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Across the Desk
From the Publisher

Let the Public
Buv Bonds

W ith the trem endous burden
new g °vernm ent issues
w hich are to be floated to
finance our p artic ip a tio n in the w ar, it is being
u rg ed by m any economists and bankers th a t these
new issues be absorbed by the general public.
The banks already have purchased billions of
dollars of governm ent securities, and it is argued
th a t these new issues should be sold to individual
investors.
If this is done, our economy will be on a sounder
basis, and banks, on the other hand, should not be
expected to ca rry the full load of the governm ent
debt.
A t the m eeting of the Central* States Conference,
composed of bankers from fifteen states, the fol­
low ing resolution was passed:
“ That it is our judgment that government se­
curities being issued or to be issued by the billions
of dollars to finance our vast rearmament program
should be largely sold to the individual citizens in
proportion to their actual ability to buy and to
hold; that banks and other such corporations
should not be asked nor expected to carry the
brunt of this financing load; that the foregoing
recommendation will help to vastly reduce the
economic readjustment in values that must inevi­
tably follow at the close of this em ergency.”
W e sincerely agree w ith this resolution and evi­
dently the governm ent believes also th a t its new
securities should be sold to the public, because
they have ju st announced th a t postal savings
stam ps in denom inations of 10 cents are about to
be issued, and th a t defense savings bonds will have
a denom ination as low as $25.
The th ree groups of new securities w hich are to
be offered the public are as fo llo w s:

N orthwestern Banker

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April 19^1

Postal savings stamps—In denom inations of 10,
25 and 50 cents, and $1 and $5.
Defense savings bonds—Alm ost identical w ith
existing “ b a b y ” bonds, in denom inations of $25,
$50, $100, $500 and $1,000.
Series F savings bonds— Sim ilar to baby bonds
except th a t denom inations are $100, $500, $1,000,
$5,000 and $10,000.
Series G savings bonds— Same denom inations as
Series F, b u t sold at face value and bear 2 y2 per
cent interest.
This program definitely is one to appeal to the
public and we th in k it is certain ly in the rig h t
direction as the banks have carried the heavy load
of governm ent financing so far.

A Vast W ave of
Centralization

In one of his recent addresses, P. D. Houston,
president of the A m erican
B ankers Association, pointed out th a t:
“ IFe have been caught up in a vast wave of cen­
tralization which has swept away m any of our old
moorings and greatly complicated our operations.
“ This centralization m ovement will probably
continue during the war emergency.
“ D uring the past 10 years, centralized, national
controls have been set up over various aspects of
banking. These federal controls have been super­
imposed on the existing state controls.
“'W ith some of them we have to w ork; with
others we have to compete. B u t we have to live
w ith them all. A n d always we have to understand
them and adjust ourselves to their existence and to
their a c tiv ity .”
I t is quite tru e th a t bankers have had to ad ju st
them selves in the last 10 years to a centralized
governm ent as well as com peting governm ent
agencies.

9

F inally, we see no reason why bankers should
not fig’h t to repeal and rescind laws w hich are
d etrim en tal to th eir interests as well as to the
public.
B ankers are certainly doing more to finance
the governm ent and to finance its defense activi­
ties in this hour of crisis th a n the strik in g labor
unions who are using the em ergency to fa tte n
th eir treasu ries and increase the pay of th eir loud
m outhed labor agitators.
F o r 10 years the governm ent has kicked the
b ankers around and p a tte d labor on the back, and
we th in k it is about tim e the proposition should
be reversed.

Income from
Government

is v e r y in terestin g to see
wiia^ percentage of the to tal
c
realized national income now
bources
comes from governm ent sources.
The percentage has risen from 5.5 per cent in
1913 to 18.4 per cent in 1940, the peak being in
1938 when 20.1 per cent of the national income
came from governm ent sources. The figures for
recent years are as fo llo w s:
1913— 5.5 per cent of total national income
1930— 9.8 per cent of total national income
1938— 20.1 per cent of total national income
1939— 18.6 per cent of total national income
1940— 18.4 per cent of total national income
R ecent figures compiled by the N ational In d u s­
tria l Conference B oard indicated th a t “ 13 billion
200 m illion dollars were paid in 1940 by federal,
state and local governm ents for salaries, wages,
bond in terest, pensions, com pensation for injuries,
and relief, com pared w ith 12 billion 700 m illion
dollars in 1939.” Thus more and m ore people be­
come more and more dependent upon more and
more income from governm ent sources.
How ever, if the governm ent is to have the in­
come to pay these salaries and other expenses, we
m ust m aintain a free, independent A m erican en­
terp rise which can m ake the m oney and w hich in
tu rn w ill thus be able to pay these terrific govern­
m ent expenses.
A recent correspondent
who has been stationed in
B erlin ever since the begin­
ning of W orld W ar No. 2, has ju st re tu rn e d to the
U nited States, and his statem en t of how G erm any
can be d efeated is as fo llo w s:
“ G erm any can be defeated if (1) E ng lan d can
hold out, (2) the blockade can be tig h ten ed and
(3) the w ar can be carried m ore forcefully into
Germ any. If these th ree conditions are m et the

How to Defeat
Germ any

Germ an confidence in victory will be underm ined.
If th a t confidence is removed, and p artic u la rly if
som ething is done to give the Germ an people a
reason for thin k in g th a t defeat would be less te r ­
rible th an p ro tra cted w ar, this g reat Germ an il­
lusion can be brought down and b rou g h t down
much more quickly th an seems credible n ow .”
W hether these three p rim ary conditions can be
carried out rem ains to be seen.
The au th o r above re ferred to and m any other
authorities believe th a t if the tide is tu rn ed against
Germ any, H itle r’s “ house of c a rd s” will fall much
more rap id ly th an people think, because in p ra c­
tically every conquered country there are th o u ­
sands of people ready to take up arm s ag ain st the
H itler menace.
Governor George A. W il­
son of Iowa is to be co n g ratu ­
lated upon his appointm ent
of M elvin W. Ellis as S tate
S uperintendent of B anking to tak e the place of
D. W. Bates, who retires on Ju ly 1, 1941.
Mr. B ates has not yet announced his new plans,
but expects to do so very soon. As S uperintendent
of B anks Mr. B ates set an enviable record, and his
ability was recognized nationally, as he was
elected president of the N ational A ssociation of
S uperintendents of S tate Banks.
Mr. Ellis is president of the F irs t S ecurity B ank
and T ru st Com pany of Charles City, and will leave
th a t position to tak e over the Superintendency.
His bank has capital of $100,000, surplus of $50,000
and to tal deposits of over $1,780,000.
In addition to know ing the problem s of country
banking, Mr. Ellis is also fam iliar w ith farm ing,
as he is p resident and general m anager of the
fam ily corporation know n as Ellis and Ellis, Inc.,
w hich operates 4,000 acres of Iow a farm land,
principally in F loyd County.
In 1935 Mr. Ellis was president of the Iowa
B ankers Association, and has alw ays been active
in its affairs.
He is strongly in favor of the dual ban king sys­
tem, believing th a t the state banking system and
the national banking system can w ork side by
side for the benefit of both, and he has steadily
opposed any Congressional action w hich would
federalize our banking system to su p p lan t the sev­
eral state ban k in g system s and locally-owned, in ­
dependent banks.
W ith this excellent background and w ealth of
p ractical ban k in g experience, Mr. Ellis should
m ake an excellent S uperintendent of B anking d u r­
ing the n ex t 4 years for w hich he is appointed.

The New
Banking
Superintendent

Northwestern Banker

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Bank Directors Want to H elp —
If the Officers W ill

Give Them a Chance
SID E from th e cu sto m ary legal
obligations of th e outside b ank
d irecto rs th e re are a few th in g s
th a t come to m y m ind such as securing
new business, b e tte r custom er re la ­
tions and assistan ce in connection w ith
th e lending functions of th e bank.
T he average outside d irecto r of a
b an k has m ore of th e “w ill to a ssist”
in th e affairs of his in stitu tio n th a n
is ev er utilized. T his d irecto r is not
on th e payroll of th e bank. H e w ould
like to be of assistan ce b u t in v ariab ly
he doesn’t kn o w th e “w hy, w h en or
w h ere.”
Once a m o n th th is d irecto r comes to
a m eeting gen erally to approve w h at
has been done d u rin g th e preceding
m onth. O ccasionally he serves on an
au d itin g com m ittee and even func­
tions as a w ailing w all upon w hich
th e m an ag in g officers can cry out
th e ir troubles.
Some of th ese outside directors are
chosen because of th e business w hich
th e y control or w h ich th e y w ill p re ­
sum ably d irect or influence in to th e ir
institu tio n . In fact, it is ta k e n as a
m a tte r of course th a t a d irecto r will
use such influence as he has tow ard
increasin g th e business th a t his b ank
does in th e com m unity. I t is assum ed
th a t each d irecto r w ill do his u tm o st
to fo ster b e tte r public relatio n s be­
tw een his b an k an d th e com m unity.
Such d uties are fundam ental. Some
directo rs produce b e tte r re su lts th a n
others. M uch depends on th e p ri­
m ary occupation of th e d irecto r and
his p a rtic u la r ab ility along th ese
lines. N othing th a t an y w rite r could
say could change th e situ atio n of th e
d irecto r or do m uch to w ard alterin g
his ab ility along th ese lines. Some
directors, w hose counsel aro u n d a
d ire c to rs’ table is invaluable, w ould
driv e aw ay b u siness if he w ere to try
his h an d a t public relations. If a
m an can ’t sing he had b e tte r stay out
of th e choir. If a b an k d irecto r is n ’t
good a t fo sterin g public relatio n s or
b rin g in g in new b u siness he sh o u ld n ’t
try.
A nyone w hose position in th e com-

A

By A . C . Sidner

advise him th a t he can obtain certain
accom m odations at the bank and th en
Director
have th e b ank unable to back up the
Stephens National Bank
rep resen tatio n and prom ises of th e di­
Fremont, Nebraska
rector. T herefore if a d irector is go­
ing to encourage new business for his
b ank he should be quite certain th a t
his b ank is p rep ared to serve th e busi­
m u n ity is such th a t he has been
ness th a t he is soliciting.
chosen as a ban k director n a tu rally
T his sam e situ atio n holds tru e in
realizes his obligation to assist his in ­ reg ard to custom er relations. Changed
stitu tion. T here is no d irector b ut banking conditions have resu lted in
changed b anking practices. Too fre ­
q u en tly changes affecting v ital pub­
lic relatio n s are adopted by banks
w ith o u t pro p er explan ation to or con­
su ltatio n w ith th e outside directors.
W hen th is has been done th e outside
d irector is unable to explain his
b a n k ’s position to th e public and soon
quits trying. A fter a few w eak attem ps a t justification of his b a n k ’s
attitu d e, he gives it up. A few such
instances and th e director ceases to
function as far as th e custom er re la ­
tions are concerned.
A th ird sphere in w hich a director
can assist his in stitu tio n is in connec­
tion w ith th e b a n k ’s lending policy.
F re q u e n tly th e outside d irector has
in form ation from sources n ot avail­
able to th e b an k w hich w ould greatly
assist th e officers in connection w ith
the m aking, servicing and collecting
A. C. SIDN ER
of loans. In m ost banks of any size
th a t is w illing. W hy don’t m ore w ork it is a physical im possibility to consult
a t it?
w ith all directors before a new loan
In th e first place th e director m u st is made. Because of th is th e first tim e
know w h a t his b an k has to offer th e th e d irector know s of th e loan is w hen
public. H ow can he sell anyone on he atten d s th e m eeting afte r it has
som ething he know s little about?
been made. C onsequently he gets the
W hen a b an k d irector is asked by idea th a t his counsel is n ot needed
a new com er to his city in reg ard to in th e fo rm u latin g of a loan policy.
his in stitu tio n he g en erally fum bles
H ow ever, a director could m ake it
aro u n d and w inds up by saying th a t his business to know th e nam es in his
his b ank is ru n by a sw ell bunch of in stitu tio n ’s notecase and to pass on
fellows w ho w ill tre a t th e new com er to th e m anaging officers all inform a­
rig h t. T his is good b u t n ot enough. tion w hich m ay come to him in re ­
If a d irector is to sell his in stitu tio n
g ard to these borrow ers. N ine tim es
to th e public he m u st know w h a t it out of ten th e inform ation w hich he
has to offer. N othing em barrasses has is already know n to th e m anaging
e ith e r th e b ank or th e director m ore
officers b u t th e te n th tim e is w o rth
th a n to have an overzealous director th e effort.
go out to a prospective custom er and
(T u rn to page 31, please)
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12

N

e w s

a n d

O F THE

V

B A N K IN G

i e w s

W O RLD

By Clifford De Puy
OU m ay n o t know it, b u t th e re is
a P asadena Golf Course a t St.
P etersb u rg , F lorida, and ju s t to show
you th a t it is also a sm all w orld, W il­
liam A dam s, p resid en t of th e F irs t N a­
tion al B ank of Denison, Iow a, m et
F ran k P. Sym s, vice p resid en t in
charge of th e N ew Y ork Office of the
N orth w estern
B anker,
and th ey
played golf to g eth er there.
Incidentally, Mr. A dam s h ad a score
of 84, and Mr. Sym s’ w as 85, and on
th e 15th hole, w hich is a p a r 3, Mr.
Adam s got a birdie 2.

m en em ployed on defense projects,
m en w ho w ere com pelled to join
u nions for th e first tim e in order to
secure jobs w aitin g for th em and for
w hich th ey are qualified?
“W ith th o usands of our fine young
m en serving in th e arm y, nav y and
m arin e corps for only a few dollars a
m onth, how can unions ju stify strik es
w hich are in tended m ore to advance
th e cause of unions th a n to benefit th e
w o rk ers them selves?”
To all of w hich we say “Amen,
H en ry ,” and m ore pow er to you.

C ongressm an D itter of P ennsy lv an ia

In looking over th e an n u al re p o rt of
th e U nited States S teel C orporation for
la st year, w hich has ju s t been issued,
it show s that:

Y

points out th a t b u siness has earned
$1.05 for taxes ag ain st every $1.00 of
n et profit d u rin g th e p re se n t adm inis­
tratio n .
In a statem en t, he said: “T his is th e
b u rd en of public spending show n by
a stu d y of business tax es paid as com­
pared to n et profits for th e period
1933-40.”
Charles C. R ieger, m an ag er of Jam ie­

son an d C om pany’s B ond D ep artm en t
of M inneapolis, h as associated w ith
him h is son, Charles J. R ieger.
T he B ond D ep artm en t of Jam ieson
and C om pany h as been m aking a v ery
su b sta n tia l g ro w th an d is re n d e rin g a
real service to its b an k custom ers.
Y oung Mr. R ieger atten d ed th e U ni­
v ersity of M innesota a fte r g rad u atin g
from St. T hom as College of St. Paul.
H enry F ord w ho still believes in th e
rig h ts of th e individual to jo in an y ­
th in g he w ants, including a union, b u t
w ho also believes th a t th e F o rd Com­
p an y should deal w ith individual
w o rk ers as such and n o t as a group
of pay in g m em bers of th e C. I. O. or
th e A. F. of L. stated recen tly th a t
“A u n io n is like a big sp id er’s web,
once inside th e web, th e w ork m en
can’t move.
“Freedom , freedom of speech and
perso n al p u rsu its, is th e k eystone of
our A m erican governm ent.
“A m erican in d u stry should be free
to function; A m erican w o rk m en m u st
rem ain free to do as th e y will, w ith ­
out being shackled b y a few u nion
leaders w ho are u sin g th e defense p ro ­
g ram to advance them selves.
“W h at have u nions given for th e
in itiatio n fees and dues collected of

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A pril 19H

“The average earnings on the Cor­
poration’s com m on stock for the fiveyear period 1936-1940 w ere on ly 3.1 per
cent, w h ile for the ten-year period 19311940, w h ich in clu d ed the deficit years
of 1932, 1933, 1934 and 1938, there w ere
no earnings on th e com m on stock.”

Com m encing May 1, th e T reasu ry
D epartm ent, u n d er Secretary H enry
M orgenthau, Jr., w ill s ta rt selling
“baby bonds” an d a fund for th a t p u r­
pose of $1,500,000 for p rin tin g and ad­
v ertisin g has been appropriated.
S ecretary J esse Jon es of th e Com­
m erce D ep artm en t states th a t profits
of A m erican business corporations
reach ed $5,000,000,000 in 1940, m aking
th e y e ar th e m ost profitable since 1929.
T he 1940 figure w as about 25 p er cent
larg er th a n th a t for 1939 or 1937, th e
tw o b est previous y ears since 1929.
A s 33 different strik es are in prog­
ress th ro u g h o u t th e U nited States,

th u s im peding our defense p rogram
for ourselves and for E ngland, th e fol­
low ing sto ry m ay be of interest:
“Officers of th e arm y or navy,
steam ed up w ith th e defense effort,
get a severe jo lt w h en th e y ru n up
ag ain st labor u nion ru les w hich re ­
m ain rig id regardless of em ergency.
“T he W ashington n avy yard, for in ­
stance, is being expanded and im ­
proved. In th e course of th is w ork,
som e piles w ere being moved, and a
pile-pulling ‘rig ’ began to y a n k a pile
from th e riv e r bed.
“J u s t th e n a u nion carp e n te r ra n

up, w aving his hands. W a it,’ he said,
‘w ait, you h av en ’t got enough m en on
th a t job! T he rules say y o u ’ve got to
have five pile-drivers and a forem an.’
“T he w ork w as halted and th e car­
p en ter produced his book of union
rules. He w as right. The ru les speci­
fied th a t regardless of th e fact th a t a
m achine did all th e w ork, th ere m u st
be no less th a n six m en, including a
forem an, on th e job.
“R esult w as th a t six carp en ters
w ere called off th e ir w ork in an ad­
joining building and stood around,
w hile th e m achine proceeded to pull
th e pile out of th e riv e r bed.”
The life insu ran ce com panies of th e
co u n try now hold $5,500,000,000 of gov­
ern m e n t bonds, w hich is seven tim es
as m uch as after W orld W ar No. 1.
The N ew Y orker M agazine, w hich
has, as one of its reg u la r editorial fea­
tures, th e re p rin tin g of typographical
e rro rs from new spapers th ro u g h o u t
th e country, published th is one in its
last issue:
“M iss E m m a Claus of Gary, Ind.,
presid en t of th e A ssociation of B ank
W om en, w ill speak on ‘The W orth ­
lessn ess of Our A sso cia tio n ’ a t th e
jo in t conference—to be held a t the
P alm er House.
—Chicago D aily News.
“E v er th o u g h t of dissolving?”
Mrs. M ary E lizab eth Toy, w idow of
Jam es F. Toy, w ell-know n Sioux City
banker, w ho herself died last June,
left an estate of over $407,000 accord­
ing to p relim in ary in h eritan ce tax re ­
p o rt ju st filed in th e d istrict court.
The principal heirs are h e r daughter,
Mrs. Grace Van D yke, and th e F a rm ­
ers L oan and T ru st Company, tru stee.
T he p rincipal item in Mrs. T oy’s
estate is 300 u n its of th e Jam es F. Toy
stock tru st, valued a t $204,000.
J. P. Scliutt, p resid en t of th e V alley
S tate B ank of Rock Valley, Iowa, in a
recen t com m unication to us, said: “All
of us here in th e b an k enjoy th e
N o rth w estern
B anker
and read it
th ro u g h from cover to cover.”
L ehm an P lum m er, vice p resid en t of
th e C entral N ational B ank and T ru st
Company, recen tly sen t out a direct
m ail le tte r in tw o colors—“g reen and
re(j ”—to prospective borrow ers w ith
th e heading “Spring is ju s t around th e
co rner.”
T he le tte r w as soliciting business for
th e BUDGET LOAN D EPA R TM EN T
and th e first tw o p arag rap h s of th e
le tte r are as follows:
“Song birds, green grass, sp rin g
rains, all com e in for w elcom e a tten ­
tion at th is tim e of year. H ow ever,

(T u rn to page 48, please)

13

Seven Reasons W h y
Banking

Istl *t a Serious

N E th in g ab o u t banking, th e re
is seldom a dull m om ent. W hen
th e re isn ’t a new law to cope
w ith th e re is a p a st due note to col­
lect. T h en th e re is u su ally som ething
hap p en in g th a t tu rn s a bad day into
a b rig h t one. In th e last th ir ty y ears
th e re hav e been a g re a t m an y th in g s
th a t have been slig h tly am u sin g to
dow n-right funny. Some of th ese
anecdotes I give below. T hese are all
actu al hap p en in g s in th is or neig h b o r­
ing banks:

By C . W . Fishbaugh

O

T one of th e b an k m eetings I a t­
ten d ed back in 1928 th e subject
of sm all loans w as b ro u g h t up for dis­
cussion. Those w ere th e days w hen
ban k s loaned $10 for a m o n th an d only
charg ed tw enty-five cents, an d som e­
tim es less th a n th a t if you stood in
w ith th e rig h t folks. One of th e lead­
ers of th e group w as J o h n Olson from
a ric h Sw edish com m unity. T he ch a ir­
m an inquired: “Mr. Olson, w h a t do
you do w h en som eone com es in and
w an ts to b o rro w te n dollars fo r te n
days?” Mr. Olson looked aro u n d
solem nly an d rep lied in all sincerity:
“I let th e m w a it te n days an d th e n
th e y w o n ’t need it.”

Assistant C ash ie r
Se curity Trust and Savings Bank
Shenandoah, Iowa

Y g ra n d fa th e r w as a g re a t tem ­
peran ce m an. H e w as ag ain st
an y form of intoxicant, b u t sad to
say m an y of his custom ers w ere not
above ta k in g a sn o rt now and then,
som etim es a little m ore th a n a snort.
One day g ra n d fa th e r saw a fa rm e r on
th e street, a Mr. B row n. Mr. Brow n,
in spite of his fondness for th e cup
th a t cheers, w as a g re a t frie n d of
g ran d fath er. G ran d fath er g reeted him
heartily: “Hi, Jack, come on in I w a n t
to see you in th e back room .” B row n
shuffled in and follow ed g ra n d fa th e r
to th e re a r room. T hey sa t dow n on
th e d av en p o rt and g ra n d fa th e r m ade
read y to b roach a land deal in w hich
both he an d B row n w ere interested ,
b u t before he could say a w ord B row n
pulled a flask from his pocket, looked
a t g ra n d fa th e r accusingly, an d said:
“Chris, how in th e sam h ill did you
know I had an y on m e?”
U R latest addition to th e force is
a pho to g rap h ic m achine to handle
our rem ittan ces. In addition to th is
m achine we have m ost of th e o th er
m achines to speed up m odern bank-

O

m an on th e farm ?” L ater he w rote
an in q u iry about th e local rid in g acad­
em y and the le tte r tu rn e d up as an
in q u iry on a w ritin g academ y. The
m achine age and th is young lady
n ever did m anage to click.
NCE in a w hile w e come across
a custom er th a t really am azes
us. One of these m ade his apperance
last fall. L ike o ther banks we use
w h at is called th e one and a half cover
fold check book. W hich is a pocket
checkbook w ith a cover of cheap card­
board already on it. W e also use fill­
ers for th e reg u lar leath er check hold­
ers. T he one and half covers are th e
ones th a t are generally used, and
w hen a custom er calls for a check
book he is u su ally handed one of these
unless he asks for a filler. T his cus­
tom er called for a check book, and the
teller held up both kinds and asked
w hich he w anted. The cu sto m er’s
eyes bulged and he said: “L et’s see
th a t one.” and he pointed to th e filler
style. H e exam ined it closely and
th e n rem arked: “Say, now th a t’s w h at
I call m ig h ty h an d y .” T he teller did n ’t
quite see w h a t he m ean t an d asked:
“W h at?” “W hy,” he said, “th is check
book is su re handy; you can slip it
rig h t into y o u r check cover w ith o u t
any tearing. Those o th er k in d you
have to te a r th e w hole back off before
you can m ake them fit.” “You h av en ’t
been doing th at, have you?” inquired
th e su rp rised teller. “Sure have, Bud,
been doing it for years. Used to take
me som etim es ten m inutes. T his new
k in d is su re a dandy. W h at w on’t
they th in k of n ex t?”

O

A

M

Business

‘1Take a half hour trying to decide
which time-saving device to use
first ’ ’
ing, every th in g from a late posting
m achine to an in te re st m achine. One
of our officials w as not really sold on
th e m achine age, and a t tim es did not
h esitate to express his dislike. A fter
th is latest m achine w as set up and
we h ad advertised it in th e local paper
a custom er said to th is officer: “My,
my, w ith all these new m achines you
m u st save a lot of tim e?” “Oh, I don’t
know ,” said our pro u d officer, “in come
w ays it tak es quite a b it longer w ith
all th is equipm ent. You see we get
dow n in th e m orning, look over all
th ese new m achines and th e n tak e a
h alf h o u r try in g to decide w h a t tim e­
saving device to use first. No, in some
w ays th e re is a big disadvantage.”
W IL L alw ays rem em ber w hen we
first in stalled a tran scrib in g m a­
chine to tak e th e place of shorthand.
W e h ad a new girl th a t claim ed she
had had experience on th e m achine.
T he first w eek we doubted it and a
sh o rt tim e la te r we w ere sure we w ere
rig h t. T he p resid en t dictated into th e
m achine: “Is th e re a ju d g m en t on th e
fa rm ? ” Im agine his su rp rise w hen
looking over his letters th a t n ig h t he
found th e clause as: “Is th ere a d u tch ­

I

U RING th e sealed corn season
th ere w as quite freq u en tly a cer­
tificate copy received th a t w as not
v ery plain. Som etim es it w as alm ost
im possible to read th e serial num ber.
T hen we w ould have to call th e AAA
office or th e farm er to find th e correct
num ber. L ast fall w e had to call over
a co u n try telephone line to a ra th e r
deaf custom er reg ard in g a serial n um ­
b er w hich m ight be 8-S-152 or 8-F-152.
W e called Mr. F a rm e r and afte r ex­
p laining th a t w e w ere having a little
difficulty, asked if th e le tte r w as an
F or an S. H e couldn’t get it and
shouted back som ething like: “Did you
say V or D?” W e repeated several
(T u rn to page 42, please)

D

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Federal Reserve Bank of St. Louis

A pril 19bl

14

A Five- Point

Program for

Country Banks

A

FIV E -PO IN T p ro g ram for th e
im pro v em en t of th e o perating
efficiency of co u n try b an k s w as
advocated by T. A llen Glenn, Jr., p resi­
dent of th e P eople’s N ational B ank,
N orristow n, P ennsylvania, in an ad­
dress before th e E a ste rn R egional Con­
ference of th e A m erican B an k ers A s­
sociation.
Mr. G lenn classified th e m ain fea­
tu re s of th e five-point pro g ram as deal­
ing w ith im provem ents in m anage­
m ent, accounting system s, cred it rec­
ords, operation of bond accounts, and
bu d g etary control and cost analysis.
“U nder th e heading of m anagem ent,
we consider th e functions of th e board
of directors, th e officers, and o th er p e r­
sonnel of th e bank. In connection w ith
th e board of directors, th e y should be
m en active in th e com m unity, b oth in
civic and business affairs,” Mr. G lenn
declared. “B roadly speaking, th e prim e
d u ty or responsibility of a board of
directo rs should be to form ulate th e
policies of th e bank. Such policies in ­
clude, am ong o th er things, th e m a tte r
of types of services th a t w ill be
rendered, th e m ethod of re n d erin g
them , an d th e cost of th em to th e p u b ­
lic.
“Too often in a sm all b a n k it is con­
ceived to be th e d u ty of th e board of
directo rs m erely to pass upon loans
and in v estm en ts and to give little
thought, if an y a t all to th e m a tte r of
public relatio n s p ro g ram and o th er
general bro ad policies of th e b an k it­
self. These th in g s are m an y tim es left
to th e discretion of th e executive
officer of th e b an k and he is not given
th e benefit of advice an d counsel of
his board in m ak in g his decisions.
“As to th e officers and o th er p e r­
sonnel, it again goes w ith o u t saying
th a t th e officers should be active in
com m unity affairs, and should keep
them selves w ell inform ed as to c u rre n t
econom ic conditions, e ith e r th ro u g h
reading all available jo u rn a ls on th e
m atter, or th e re g u la r atten d an ce at
conferences and m eetings of v arious
b ank in g associations. As to th e clerical
force, these should be chosen w ith
g rea t care an d new em ployees added
to th e staff only a fte r a th o ro u g h
scru tin izin g of th e ir education and so­
cial background. By th is la tte r qualifi­
cation I do n o t m ean th a t we should
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Federal Reserve Bank of St. Louis

April 19^1

Management
Accounting
Credit Records
Bond Account
Cost A nalysis

pick only em ployees from th e u p per
c ru st of our com m unity, b u t I do m ean
th a t our staff should include only peo­
ple w ho bear a good re p u tatio n for
b ehavior and come from sources w hich
w ould not prove objectionable to any
of our depositors.
“Now as to th e accounting system ,
w hich is th e second point in our inside
program ; such system should be de­
vised to include th e follow ing ele­
m ents: F irst, th e system should give a
clear, com plete and accurate record of
all of th e b a n k ’s tran sactio n s and it
should give details as to th e assets
and liabilities a t an y p artic u la r time;
second, th e system should include fa­
cilities for th e conducting of a co n tin u ­
ing in te rn a l audit; th ird, th e system
m u st n ot be cum bersom e or contain
an y elem ents of duplication of effort
but, on th e o ther hand, th ro u g h th e
utilizing of m odern m achinery and upto-date accounting m ethods, should be
conducted w ith th e least am ount of
expense and in a m an n er to consum e
th e least am ount of tim e.
“The th ird phase in th e p rogram is
the m a tte r of adequate credit records.
I know th a t the sm aller b an k has not
th e facilities to m ain tain a credit de­
p a rtm e n t in th e sam e m an n er as such
a d e p artm en t m ay be conducted in a
large in stitu tio n . H ow ever, it is p e r­
fectly possible, w ith o u t adding v ery
m uch, if any, tim e consum ed by th e
perso nnel of th e bank, and w ith o u t
adding v ery m uch to th e cost of op­
eration, to have a credit file and a cross
reference system w hich w ill enable
any of th e officers a t any tim e to know
th e exact statu s of any b o rrow er or

proposed bo rro w er of th e bank. Such
a file is a g reat help to th e exam ining
au th o rities w hen th ey v isit th e in stitu ­
tion since com plete inform ation is th en
available to th em to enable a pro p er
classification of a p artic u la r loan in
question,” Mr. G lenn asserted.
“T he credit file itself should include
not only such financial statem en ts as
I have already re fe rred to, b u t also
adequate appraisals of th e land in ­
volved. C orrespondence relativ e to
th e loans and m em oranda from th e
officers as to p e rtin e n t conversations
w ith th e borrow er, should also be in ­
cluded. It req u ires little tim e for an
officer to dictate a sh o rt resum e of a
conversation w ith a borrow er, giving
th e salien t facts b ro u g h t out in th a t
conversation. Such m em oranda should
be included in th e credit file and th u s
inform ation w hich ord in arily is in
some one p erso n ’s head is m ade avail­
able p erm an en tly to oth ers in th e in ­
stitution.
“The operation of th e Bond A ccount
is th e n ex t phase in th e inside p ro ­
gram of a co u n try b an k w hich I w ish
to m ention. I w ould like to p re se n t an
idea w hich I have in connection w ith
th e bond account of a sm all b an k at
th e p re se n t tim e. Since 68 p er cent
of our com m ercial banks have total
assets of less th a n $1,000,000 and 92
per cent have to tal assets of less th a n
$5,000,000, it w ould appear th at, com­
p arativ ely speaking, v ery few of our
banks have v ery m uch m ore th a n a
fund of about a m illion or tw o m illion
dollars w hich should be invested in
bonds. I t goes w ith o u t saying th a t
no ban k w ishes to take an u ndue risk
in connection w ith its in v estm ents
and th erefo re should confine its in ­
vestm ents to only th e h ig h est grade
bonds available. Because of p re se n t
econom ic conditions, it seem s im p ru ­
den t for any b ank to p u rchase bonds
w ith m atu rities longer th a n m edium
term . If we confine our bond in v est­
m ents w ith in those lim itations, w e find
th a t high grade corporate bonds of
m edium or less m a tu rity yield only
an infinitesim al am ount m ore th a n do
go v ern m en t bonds of sim ilar m a tu rity
if th ey yield any m ore a t all. If w e
take th e ta x featu re into consideration,
we w ill find th a t governm ents yield
(T u rn to page 42, please)

The

Present and

futUtB

of the

Private Investment
Market
By George L. Harrison
President
New York Life insurance C om pany

Y purpose is sim ply to m ake
a few perso n al observations
about th e p re se n t an d fu tu re
position of th e p riv a te in v estm en t
m ark et.
M ay I first o utline som e of th e ob­
jectives of F ed eral R eserve policy in
recen t years, as I see them , w ith p a r­
ticu la r reference to th e ir im pact on
th e capital m arket?
As you know , th e tra d itio n a l cen tral
b an k practice is to adopt a “firm
m oney” policy—a policy of re s tra in t
—w h en ev er th e re ap p ears d anger of
over-expansion and inflationary de­
velopm ents, and to adopt an “easy
m o n ey ” policy,—a relax atio n of re ­
s tra in t and th e prom otion of an am ple
supply of available funds a t low rates
—in periods of business recession and
deflation.
I t m ig h t be asked how an easy
m oney policy w as supposed to stim u ­
late a recovery th ro u g h th e m edium
of th e capital m ark ets. You no doubt
know th e an sw er but, in theory, easy
m oney or idle m oney in th e b an k s
should have th e follow ing results:
F irs t—A decline in open m a rk e t
m oney ra te s—in itially in sho rt-term
rate s exten d in g g rad u ally to yields on
long-term bonds of th e h ig h est grades,
first g o v ern m en ts and th e n o th er highgrade bonds.
Second—As yields on high-grade
bonds reach levels u n a ttra c tiv e to in ­
vestors, a diversion of in v estm en t in ­
te re st to m edium -grade bonds and
stocks, because of th e m ore a ttra c tiv e
yield obtainable on such securities.

M

T h ird —A refu n d in g of high in terest
ra te obligations into low er in terest
ra te obligations.
Fourth-—Because of attra c tiv e rates
available to borrow ers, a revival of
in v estm en t of new capital in in d u s­
trie s for im provem ent and expansion,
th u s prom oting business recovery.
In m y opinion, we need not conclude
th a t th e original program of “easy
m oney” w as based upon a false p rem ­
ise or th a t it w as foreordained to fail­
ure.
T here w ere unforseeable de­
velopm ents an d conditions in recent
y ears th a t operated to p rev en t its com ­
plete success.
F irst, as to th e ability an d inclina­
tio n of investors to provide new capi­
tal for p riv ate en terp rise. The g reat
red u ction du rin g th e p ast decade in
th e gross incom es of th e w ealthy, plus
th e heavily increased rates of ta x a ­
tio n on such incom es, has tended to
elim inate a large source of risk or
equity capital. F u rth erm o re, th e ra is­
ing of both incom e and estate taxes
has encouraged th e in v estm en t of
large estates in tax-exem pt securities,
th e re b y fu rth e r depleting th e am ounts
available for u n d ertak in g s involving
risk.
Second, as to th e inclination of bu si­
ness m anagem ent to assum e th e risk
of em ploying additional capital. Here,
th e increased taxes of corporations
have had an im p o rtan t effect, tending,
as th ey do, to dim inish th e op p o rtu n ity
for profit and causing, therefore,
g re a te r h esitancy on th e p a rt of busi­
ness m anagem ent to enlarge facilities.

GEORGE L. HARRISON

C orporation tax rates are now m uch
h ig h er th a n ever before, not excluding
th e W orld W ar y ear of 1918. T otal
taxes paid to th e F ed eral governm ent,
to g eth er w ith State and local taxes,
have exceeded n et profits of all corpora­
tions, afte r taxes, in every year since
1929. In th e nine years ending w ith
1938, all corporations paid a total of
about $30,000,000,000 of taxes, Federal,
State and local, w hile th e ir n et profits
(after deducting losses), rep o rted to
th e B ureau of In te rn a l Revenue,
am ounted to not m uch over $1,500,000, 000.
In addition to these general condi­
tions affecting all business, th ere have,
of course, been specific conditions af­
fecting p artic u la r in d u stries w hich, in
th e past, have been im p o rtan t fields
for the in v estm en t of savings. The
o u tstanding exam ple is th e group of
in d u stries know n as public utilities,
including railroads, as w ell as electric,
gas and tractio n com panies.
F inally, and th is th o u g h t applies
perh ap s to both investors and business
m anagem ent, for a n um ber of years
th ere w as no doubt a v ery real feel­
ing of discouragem ent and a lack of
confidence w hich appeared to have
pervaded large areas of business, as
well as th e investing public, due not
only to conditions already m entioned,
b u t also to th e fact th a t m any people
felt, rig h tly or w rongly, th a t govern­
m en t policies w ere going to m ake it
im possible for capital to earn a living
wage.
(T u rn to page 61, please)
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Federal Reserve Bank of St. Louis

April Í9M

16

Bank M a n a g e m e n t —
Custom er R e la t io n s —
Lo a n s — N e w B u sin e ss

digest
BANKS MUST B EC O M E
"S A LES C O N S C IO U S "
. W. M cSW EENEY, sales m an ag er
of De L uxe Check P rin te rs, Inc.,
Chicago talk ed ab o u t b an k selling at
the m eeting of G roup One of th e W is­
consin B an k ers A ssociation. Am ong
o th er things, he said:
“H ow shall we define ‘sales con­
sciousness?’ I t is n ’t n ecessarily ‘sales
ab ility ’ or an u n d e rsta n d in g of ‘sales­
m anship.’ I know an y n u m b er of m en
w ho m ake th e ir living as salesm en
w ho h a v e n ’t a trace of it in th e ir sys­
tem s. A nd I know o thers, n o t engaged
in selling a t all, w ho have it in m ark ed
degree. To me, it sim ply m eans th e
ta le n t of gleaning sales values from
th e events of th e day. An ab ility to
see sales possibilities in a chance re ­
m ark, a com plaint, or in an y situ atio n
w here it exists even th o u g h it be h id ­
den deeply.
“Suppose a depositor rem ark ed to a
b an k e r tom orrow : ‘W ell, you w o n ’t
see m e aro u n d m uch longer. I ’m being
tra n sfe rre d to Des M oines.’ W h at
w ould be th e first th in g to flash
th ro u g h th e b a n k e r’s m ind? Of course,
he w ould be so rry to see his custom er
leave th e com m unity an d he w ould re ­
g re t th e loss of business. B ut w ould
he im m ediately get a p ictu re of th e
chap w ho w as com ing up to replace
th e lost depositor, if such w ere th e
case? W ould he in q u ire as to th e tim e
of th is ch ap ’s arriv al, th e size of his
fam ily, th e type of house in w hich he
w ould live, th e k in d and am o u n t of
b an k in g service he w ould require?
The b a n k e r would, if he w ere a salesconscious person.
“Suppose one of a b a n k ’s officials
says: ‘L e t’s see if w e can’t increase
our nu m b er of checking accounts 30
p er cent th is y e ar.’ W ould th e im ­
m ediate reactio n me, ‘I t can ’t be done,’
or ‘W e couldn’t handle th em unless
we put on an o th e r teller and a n o th er
bookkeeper,’ or ‘Our peak load w ould
be increased too m uch,’ or w ould some
m en tal a rith m etic be done to see a pic­
tu re of th e e x tra rev en u e to be ob­

G

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Federal Reserve Bank of St. Louis

April 19M

tain ed from th e increased activity?
W h atev er th e reactions m ay be, th ey
are probably influenced by th e indi­
v id u al’s p artic u la r in terest. So, if we
are going to expect reactions th a t w ill
co n trib u te tow ards sales w e m u st de­
velop those in terests along sales lines.
W e have to th in k sales in o rder to see
th em and w e have to see th em in order
to m ake them . I happened to rem ark
to one of our shipping clerks recently
th a t he w as p re tty w ell loaded up,
w hereupon he cam e back at me w ith
th e rem ark, ‘Well, w h en I ’m loaded
up it m eans th a t w e’re selling som e­
th in g and th a t’s w h at counts.’ He is a
sales-conscious person.”

G U A R D IN G A G A IN S T
D U PLICA TE LO A N S
ELDON U. H O W ELL, a ssistan t
cashier of th e M ercantile N a­
tional Bank, Dallas, Texas, in a recen t
issue of B urroughs C learing H ou se
tells of a system used in his in stitu ­
tio n to p ro tect ag ain st duplicate b o r­
row ing an d sim ilar practices w hich
m ig h t spell trouble. H e says in part:
“E v ery b an k er know s to his sorrow
th e duplicate borrow er. In every lo­
cality th ere are a certain nu m b er of
p ersons who, h aving contacts w ith tw o
or m ore banks, in sist upon borrow ing
from all of th em w ith o u t going out of
th e ir w ay to disclose th e fact. E ach
b an k is led to believe th a t it is the
only one g ran tin g credit to th e indi­
vidual. Indeed, in these days of de­
p artm en talized lending th e re is con­
siderable d anger th a t an individual
m ay borrow from several dep artm en ts
of th e sam e b an k w ith o u t an y record
being k ep t of his aggregate bo rro w ­
ings.
“T h a t it can h ap p en stem s from the
norm al practice of keeping separate
cred it files in each of th e specialized
lending departm ents, w hich, of course,
is w h ere th ey belong. T he average
autom obile loan custom er n ev er seeks
a com m ercial loan and m ost com m er­
cial borrow ers n ev er w a n t FH A m o rt­
gages. H ence to set up a single m aster
cred it file resu lts n ot only in a bulky
file, b u t in delays w h en a d istan t
d e p a rtm en t w an ts a cred it folder and
m u st w ait for a m essenger to travel
up an d dow n several flights of stairs
to get it. Yet some so rt of check
m u st be k ep t on th e individuals w ho
in sist on borrow ing all over tow n and

W

all over th e b an k w ith o u t being w holly
fra n k about th e ir operations. Such
persons m ay n o t m ean ultim ate loss.
T hey m ay pay all th e ir obligations,
b u t certain ly th ey re p re se n t a p o ten­
tial danger. T hey can easily becom e
over-obligated.
“To p ro tect ourselves ag ain st them
in Dallas, in general, an d at th e M er­
cantile N ational B ank in p articu lar,
we have set up tw o system s. One of
these is a t th e bank, th e o th er in ­
volves a careful an d consistent cross
checking of all sources of credit in fo r­
m ation in th e city, specifically as they
involve our ap p lican t’s or cu sto m er’s
borrow ings. P a rtic u la rly am ong th e
Dallas banks it has been found th a t
co-operation up to a reasonable point
is extrem ely valuable w hen it comes
to this type of inform ation.
“B ut to consider our ow n inside
operations first. W hen a loan is m ade
an yw here in th e bank, th e nam e of th e
borrow er is ty p ed on an index card
an d sen t to th e credit d ep artm ent.
E ach type of loan goes on a differently
colored card. T hese cards are filed in
a cabinet w hich constitu tes a m aster
index to every loan in th e bank, re ­
gardless of w h a t d e p artm en t m ade it.
W e follow th is procedure because the
actual credit in form ation back of
autom obile, personal and real estate
loans is kept, as I indicated before, in
th e d ep artm en ts m aking such loans.
T his lightens our files, w hich are
essentially for th e com m ercial loan de­
partm en t, of all b u t those we know
as com m ercial borrow ers. H ow ever,
th e card index gives us a key to o ther
d ep artm en ts and w hen a com m ercial
custom er uses one of th ese d e p a rt­
m ents we im m ediately becom e aw are
of th e fact. Sim ilarly, by cross check­
ing w ith us, th e o th er d ep artm en ts
catch duplications a t once.
“It m ay, I adm it, seem as th o u g h I
w ere draw ing a long bow w hen I ta lk
of th e danger of a custom er borrow ing
m oney from m ore th a n one d ep art­
m en t of th e b an k w ith o u t ad m itting
a loan from some other. B ut it did
happen here before w e set th is index
into operation. B anks trad itio n ally
keep inform ation on th e ir custom ers
confidential, and w ith o u t a centralized
file th e autom obile loan m an, for ex­
am ple, m u st check all over th e b ank
to find w h e th e r or n ot his applicant
for credit has a loan som ew here else

17

D ire c to r C o o p e r a t io n —
Special Serv ices —
P e r s o n n e l P ro b lem s
in th e bank. If, for an y n u m b er of
reasons, he doesn’t suspect th a t th e
ap p lican t is a m ortgage loan custom er
th e chances are he w o n ’t check on it.
B ut if he needs to m ake only one call
to a cen tralized file, th a t becom es a
m a tte r of ro u tin e for every custom er.”

P R O G R ES S DEPENDS
O N N EW W EA LT H
P R O D U C T IO N
ISSOURI b a n k e rs held recen tly
w h a t th e y called a U n iv ersity
Conference, an d one of th e sp eakers
w as D avid A. W eir, a ssista n t executive
m an ag er of th e N ational A ssociation of
C redit Men, N ew Y ork City. H e said:
'‘R eplacem ent of th e p hilisophy of
‘defeatism ’ by a philosophy of prog­
ress, w ith em phasis on th e p roduction
of new w ealth, is th e essen tial need of
th e U nited S tates today.
“M ore an d m ore m en have come to
th in k in te rm s of re ta in in g th a t w hich
th e y have gained ra th e r th a n in a t­
tem p tin g to achieve new goals. The
catch p h ra se ‘d istrib u tio n of w e a lth ’
has becom e m ore im p o rta n t in th e
public m in d th a n has th e effort to p ro ­
duce new w ealth so th a t th e re w ill be
m ore to distrib u te.
“B oth produ ctio n of w ealth and dis­
trib u tio n of w ealth are w o rth y objec­
tives. H ow ever, it should be axiom atic
th a t a people w ith an econom ic
philosophy w hich em phasizes d istrib u ­
tio n w hile m inim izing production,
w ill soon find th a t high-sounding
p h rases m ake a poor su b stitu te for
m ore food, clothing, autom obiles and
housin g facilities. A p h rase w ith o u t
food provides poor nourish m en t.
“The job w hich we have before us in
th is decade of th e 40’s is to re sto re the
u n d a u n te d vision of a people who, as a
nation, have m ade p rogress for a cen­
tu ry and a half.
“Our fu rth e r job is to reh ab ilitate
th e sound practical sense—a d istin c­
tio n b etw een th a t w hich is value and
th a t w hich is m erely sham . G enera­
tions to come w ill be v itally affected
by w h e th e r th a t job is done an d b y th e
w ay in w hich it is done.
“T he w atch w o rd m u st again be ‘fo r­
w a rd ’ ra th e r th a n a p reserv atio n of
th e sta tu s quo.
“If th is vision is to be again
achieved, th e re are certain u n changing
an d im m utable p rinciples w hich m u st
be ad h ered to. T hey are ear-m arks of

M

sane th in k in g —of tru th trie d by ex­
perience—of values w hich are p erm a­
nent. In our ow n dom estic econom y
an d in w orld affairs th e y m u st be re ­
established if u tte r chaos is to be
averted. A m ong th ese principles are
th e following:
“1. A n incentive to th rift and an op­
p o rtu n ity for th e profitable use of sav­
ings m u st be restored.
“2. T here m u st be a giving of fair
value for fair value received in b u si­
ness and in life itself.
“3. W h eth er w e are th in k in g of
peace tim e or w artim e, we m u st realize
th a t no sound p ro sp erity can be based
u pon a philosophy of scarcity or de­
struction.
“Above all else our ability to go for­
w a rd m u st re st upon th e ability of th e
in dividuals m aking up a natio n to go
forw ard.

PROFITS A N D LO S SES
O N BON DS
OBERT K. HENRY, a m em ber of
th e W isconsin ban k in g com m is­
sion, believes th a t profits on bonds
should be segregated, so th a t in th e
ev ent sm all fu tu re losses should need
to be w ritte n off, such write-offs w ould
not come from incom e of o ther d ep art­
m en ts of b an k activity. H e says:
“The records of th e W isconsin B ank­
ing D ep artm en t and its statistical
studies disclose some v ery in terestin g
and ra th e r astounding inform ation
w ith respect to profits and losses on
bonds over th e five y e a r period from
1935 to 1939 inclusive. T hese records
show th a t du rin g th a t five y e a r period
state banks in W isconsin realized
profits and recoveries on th e sale of
bonds to th e e x ten t of approxim ately
$10,809,000. I t is safe to assum e th a t
a su b stan tial po rtio n of th e recoveries
w ere on bonds w hich had been charged
dow n d u rin g th e previous five y ear
period. D uring th e sam e five y ears
from 1935 to 1939 inclusive, losses on
th e sale of bonds and w rite dow ns of
th e book value of bonds still held
am ounted to approxim ately $10,409,000. Only in 1936 w ere profits and
recoveries m ore th a n th e losses and
w rite-dow ns. Over th e sam e period
th e average com m on stock in v estm en t
of all state ban k s w as approxim ately
$25,820,000. F o r th e five years, bond
profits and recoveries w ere ap p roxi­
m ately 42 p er cent of th e average com-

R

digest
m on stock in v estm en t over th e period,
or an average of over 8 per cent a year,
w hile th e losses and w rite-dow ns w ere
only slightly low er in ratio.
“I b rin g you these figures m erely to
p o in t out m ore clearly th e relationship
betw een profits and losses on bonds
and th e com m on stock in v estm en t in
y o u r banks, and also to point out th at,
on th e whole, bond profits aré w ill o’
th e w isps w hich in a g reat m any in ­
stances only offset losses previously
tak en or w hich are subsequently sus­
tained.
“F o r m e th is inform ation only
stren g th en s a conviction th a t bond
profits sh o u ld be carefully conserved
and segregated ra th e r th a n being dis­
sipated th ro u g h pay m en t of dividends
or by being used for purposes other
th a n th e protection of th e bond ac­
count. The fact th a t th e bond m ark et
is subject to fluctuations and tren d s
as a re su lt of causes beyond th e con­
tro l of an y one or group of us, is no
new sto ry to any b an k er w ho has had
a bond of high or low quality in his
inv estm en t portfolio, be it a real es­
ta te issue or an obligation of our F ed­
eral G overnm ent. You w ill recognize
w ith m e th a t one of th e soundest safe­
guards for our bond accounts is to
segregate bond profits as realized so
as to be available to absorb losses in
tim es of stress.
“Because of th e necessity of tak in g a
long range view of in v estm en ts in
bonds it appears im perative th a t a
definite program in reg ard to bond
profits be adopted by each b an k h av ­
ing such investm ents. A ny program
w orked out should give consideration
not only to th e q u ality of th e bonds
ow ned b u t also to th e ratio of th e total
in v estm en t in bonds to th e capital
stru c tu re of th e bank. F ailu re on the
p a rt of b an k ers to adopt reasonable
individual program s for th e conserva­
tion of bond profits could v ery well
re su lt in regulations in th a t respect by
su pervising agencies or in recognition
of th e subject by legislative bodies.
P erh ap s legislation of y o u r own fo ster­
ing w ould even now be desirable.”
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A pril 194Í

Is Liable V^hen Mortgaged
Property Is
W illiam s m ortgaged to M axw ell cer­
tain p ro p e rty to secure a loan. The
m o r t g a g e provided th a t W illiam s
w ould in su re th e p ro p e rty for M ax­
w ell’s p rotection an d th a t M axwell
m igh t do so a t W illiam s’ expense if he
did not. F o r a tim e W illiam s obtained
th e in su ran ce b u t la te r he did not and
n eith e r did M axwell. A loss occurred.
W as M axwell precluded from proceed­
ing ag ain st W illiam s for a deficiency
because he did n o t insure?
No. W here a m ortgagor undertakes
to keep property in su red for the pro­
tection of the m ortgagee, the fact that
the m ortgage g iv e s to the m ortgagee
the righ t to in sure at th e exp en se of
the m ortgagor, should the latter fail to
keep h is agreem ent, casts upon the
m ortgagee no affirm ative duty to ob­
tain in surance coverin g th e property.
It follow s that M axw ell could proceed
again st W illiam s for a deficiency in
the circum stances outlined.
May a guardian of a n in com petent
person b orrow m oney on behalf of his
w ard or encum ber his w a rd ’s p ro p e rty
to secure b orrow ed sum s w ith o u t court
approval?
E xcep t in the case of ob ligations in ­
curred for n ecessities, su ch as care and
support, the rule is quite general, al­
though not invariable, th at a guardian
of an in com p eten t person is w ith o u t
righ t to in cu r ob ligations so as to bind
the in com p eten t or h is estate w ith ou t
prior court approval.
Shallcross, a M innesota b anker, w as
th e executor of th e estate of a dece­
den t in th a t state. As such, he bou g h t
a su b sta n tia l am o u n t of coal from a
coal y a rd to heat, and th e re b y keep
occupied, an a p a rtm e n t belonging to
th e estate. The p u rch ase co n tract did
not provide th a t th e coal com pany
w ould look to th e estate an d not to th e
executor for reim b u rsem en t. Could
th e coal com pany hold th e executor
for its bill in such circum stances?
Yes. L iability ex ists again st th e rep­
resen tative of a d ecedent’s estate in his
in dividu al capacity under a contract

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Federal Reserve Bank of St. Louis

April 19bl

Not It)Silted?

These and Other Timely Legal
Questions Are Answered

the p artn ersh ip , o th er th a n M cCrack­
en, also liable?

By the

No. L iab ility for a tort com m itted
by a m em ber of a partnership and an
em p loye thereof, w hen not on a m is­
sion w ith or w ith in the scope of the
partnership b u sin ess, does not attach
to the other m em bers of the partner­
ship w ho w ere not p resen t and did not
p articipate therein.

LEGAL DEPARTMENT

m ade by him w ith a creditor w ho be­
com es such through d ealin gs w ith him ,
unless in plain language su ch contract
ex p ressly sta tes th a t the creditor
agrees to seek h is rem edy again st the
estate and n ot again st the represen ta­
tiv e in h is capacity as such.
B y statu te in Iow a certain persons
have p rio r rig h ts to be appointed ad­
m in istra to rs of decedents’ estates. In
ord er for th em to avail them selves of
such rig h ts ap p ro p riate applications
m u st be m ade w ith in tw en ty day pe­
riods com m encing w ith dates of burial.
T here is a n o th er section th a t provides
th a t w here a vacancy occurs “some
o th er p erso n ” m ay be appointed.
W here an a d m in istrato r is appointed
and serves for several y ears and th e n
dies, are those persons en titled to p ri­
o rity w here an original ap p o in tm en t is
involved to be accorded p rio rity a t th a t
tim e?
No. In a recen t d ecision by th e Su­
prem e Court of Iow a it w as h eld that
the statu tory priorities in the appoint­
m ent of ad m in istrators apply on ly to
an original ap poin tm ent and not to an
ap poin tm ent to fill a vacan cy. In th at
d ecision the court pointed out th at the
tw enty-day periods allow ed in cases of
original ap poin tm ents had expired and
it therefore could not g iv e effect to the
statu te g o vern in g them .
Saunders, a N ebraska banker, w as
in ju re d by an autom obile being driven
by M cCracken in th a t state. The cir­
cum stances w ere such th a t M cCracken
w as clearly liable to S aunders for his
dam ages. M cCracken w as a m em ber
of, and an em ploye of, a p a rtn e rsh ip at
th e tim e, b u t none of his p a rtn e rs w ere
w ith him and he w as not on p a rtn e r­
ship business. W ere th e m em bers of

The farm of a Des Moines banker,
w hich w as located in N ebraska, w as
dam aged to a considerable ex ten t by
seepage from a huge dam erected by a
pow er d istrict and behind w hich w ere
im pounded g reat q u an tities of w ater.
Suit for dam ages w as brought. W as it
necessary to prove th a t th e pow er dis­
tric t w as negligent in th e construction
or m aintenance of th e reserv o ir in or­
der to effect a recovery?
No. U nd er N ebraska la w dam ages
for seepage is ab solute and n egligen ce
need not be sh ow n . T his is in line
w ith the principle that a person w ho
for h is ow n p urposes brin gs on h is
land, and k eep s and collects there, a n y ­
th in g lik ely to do m isch ief if it escapes,
is prim a facie an sw erable, if it escapes,
for all the dam age w h ich is the natural
con sequ en ce of its escape.
A N orth D akota corporation owned
a m ortgage on a baking com pany th a t
it w as com pelled to foreclose in order
to effect a recovery. S orvisteau bought
in th e p ro p erty at th e foreclosure sale.
L a te r a dispute arose betw een him and
th e stockholders of th e corporation re ­
garding w h e th e r he b ought in th e
p ro p erty in his ow n rig h t or as ag en t
for them . T here w as conflicting evi­
dence on th e point and it w as found
by th e ju ry before w hom th e m a tte r
ultim ately w en t th a t he acted in his
individual capacity. The stockholders
appealed. Should th ey prevail?
No. In a p roceed in g in v o lv in g the
ex isten ce or n on-existence of an agen cy
contract in w h ich the evidence is
sq uarely in conflict, the verdict of a
jury w ill n ot be reversed b u t w ill be
treated as decisive.

(T u rn to page 43, please)

19

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Federal Reserve Bank of St. Louis

A pril 19bl

20

School S avings— W ill

They

Return A s a Form of
Bankers and Educators Participating in
a School Savings Forum at A. B. A.
R egional Conference
B elieve
Such
Education W ill Be More Vital Than
Ever B efore
CHOOL savings sponsored by th e
n a tio n ’s com m ercial an d savings
b anks w as seen as a p o ten t force
in th e education of A m erica’s y o u th on
th e eve of an era w hen such education
w ill be m ore v ital th a n ever before.
T his w as th e view of seven b an k ers
an d educators w ho p articip ated in a
school savings fo ru m held as p a rt of
th e regional conference of th e A m eri­
can B an k ers A ssociation.
The speak ers a t th e forum saw th is
co u n try en te rin g upon a new “m ilitary
econom y” n ecessitatin g huge expendi­
tu re s in disreg ard of sound econom ic
principles an d described an ev en tu al
re tu rn to form er stan d ard s as depend­
e n t upon th e k in d of “econom ic edu­
cation” to d ay ’s y o u th receives. The
exp erts declared th a t savings tra in in g
is a v ital p a rt of th a t education.
Dr. H am den L. F o rk n er, professor
of education a t Colum bia U niv ersity
declared th a t “A m erica is rap id ly en ­
te rin g upon a new econom y—an
econom y th a t prom ises to be different
from an y econom y u n d e r w hich we
have o perated heretofore. W e are ju st
em erging from a politically controlled
econom y into a new m ilita ry economy.
W h eth er th e re w ill be a r e tu rn to one
of th e fo rm er econom ic o rders follow ­
ing th e p resen t m ilita ry one can only
be determ in ed by th e tu r n of events
in th e n e x t few m onths an d th e in ­
telligence w ith w hich w e p lan to re ­
tu rn to th e k in d of econom y th a t m ade
A m erica th e leader am ong nations.
“W h e th e r A m erica is able to re tu rn
to th e system of econom y th a t m ade it
g re a t depends u pon th e k in d of educa­
tio n w hich she gives th e y o u th w ho
w ill be to m o rro w ’s voters, to m o rro w ’s
citizens, to m o rro w ’s g uiders of A m eri­
can destiny. B ut of one th in g w e can
be certain —education for a re tu rn to
th e system of free e n te rp rise w ill fail
m iserab ly u nless th e financial an d in ­
d u stria l in stitu tio n s of th e co u n try are
w illing to actively p articip ate in th e
education of y o u th by m ak in g th e ir in ­

S

Northwestern Banker

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

April Î94Î

Thrift Education?

stitu tio n s available to th e schools as
laboratories.
“The banks have already m ade a
sta rt, and d u rin g th e p ast several y ears
have laid th e foundation upon w hich
to build a m ore com prehensive p ro ­
gram of education for m oney m anage­
m en t and com m unity u n d erstan d in g ,”
Dr. F o rk n e r continued. “T he com­
m u n ity b an k is in a strategic position
to tak e th e leadership in th is m ove­
m ent, for it is already serving a large
p a rt of th e population and it provides
facilities for th e encouragem ent of
h ab its of th rift and m oney m anage­
m ent. To be m ore effective, how ever,
th e re needs to be m ore stu d en t p a r­
ticip ation in th e p rogram of th rift de­
velopm ent and m oney m anagem ent,
and p rovision m ade for g re a te r n u m ­
b ers to actively particip ate in the
pro g ram .”
S everal of th e b an k ers w ho took p a rt
in th e school savings forum pointed
out th a t school savings p rogram s in
som e cities have been u n d e rta k e n by
th e b anks a t an o perating expense
th a t does n ot com m ercially ju stify th e
outlay. The concensus of opinion
am ong th e b an k ers w as, how ever, th a t
the educational value of th e school
savings accounts in developing com­
m u n ity w elfare offset th e outlays of
the banks.
E.
M. V an Lone, m em ber of the
School Savings Com m ittee of th e Sav­
ings D ivision of th e A m erican B ankers
A ssociation, an d tre a su re r of th e Beloit
Savings B ank, Beloit, W isconsin, th e
first b an k in th e U nited States to de­
velop a school savings program , as­
serted:
“It is m y u n d erstan d in g th a t edu­
cators are a t p resen t stressing the
im portance of teaching pupils th e w ay
in w hich to get th e m ost out of life
th ro u g h doing th in g s ra th e r th a n ju st
m erely learn in g th e T h ree R ’s. Is not
th e school program a ttem p tin g to do
th is very th in g in th rift education?
“I personally feel th a t th e re never

has been a tim e in th e h isto ry of our
co u n try w hen it w as so im p o rtan t th a t
a definite th rift educational program
be m ain tain ed in our schools a t at
th e present. I t is im p o rtan t to th e
fu tu re of th is nation th a t our boys and
girls learn th e value and im portance
of individual th rift in th e ir lives. It
is also im p o rtan t to th e savings ban k s
and o th er ban k s soliciting savings de­
posits, th a t th e com ing g en eration
learn th e m erits of individual saving.
Our p resen t p rogram of n ational
econom y does n ot encourage an indi­
vidual to save or to m ake p ersonal
provision for his fu tu re well-being,
outside of th e social secu rity plan.
Citizens of th is co u n try of ours have
come to believe th a t provision for th e ir
old age w ill be m ade by th e g overn­
m en t and th a t old age pensions are
n ot relief, b u t co n stitu te an n u ities
w hich th is g o vernm ent owes to its
older citizens. T he stric t adherence
of th e p resen t ad m in istratio n to a
policy of low in te re st ra te s has been
effective in reducing th e ra te th a t can
be paid by banks on savings deposits
and an im p o rtan t featu re of th e fru its
of savings has been alm ost elim inated.
These featu res of our new w ay of life
have elim inated m any of th e rew ard s
for savings and have m ade it m uch
m ore difficult for th e average citizen
to provide for his re tire m e n t age, be­
cause of th e reduced earn in g pow er of
capital.”
J. H en ry Holloway, p rincipal of th e
New Y ork School of P rin tin g , New
Y ork City, stressed school savings as
a system atic m eans of developing
th rift habits.
“In teaching th rift th ro u g h th e
agency of th e school savings bank, th e
educational value is m ultiplied in th a t
the th rift tra in in g becom es organized,
system atic, and is continuous. Its
g reatest claim as an educative process
lies in th e fact th a t it is so v ery
practical. It is active, it appeals to
the pupil because it has to do w ith

Seventy Years of Check Protection
In 1871 Safety Paper w a s in­
v e n t e d a n d in t r o d u c e d b y
G eorge La Monte. At that time
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Through constant research, ex­
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Safety Papers have kept p ace
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They are used and endorsed by
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GEORGE LA MONTE & SON, Nutley, N. J.


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

22

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Northwestern Banker

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

April 19M

real m oney w hich he recognizes as
one of th e m ost p o ten t factors in his
p resen t affairs and in his fu tu re, es­
pecially as he approaches and th e n
finds him self in th e y ears th a t req u ire
his selection of th e plans th a t w ill
determ ine th e future.
“T here is no activ ity in th e school
th a t offers th e sam e educational serv­
ice as th e school savings bank. Its
d irect relatio n to th e child’s everyday
life m akes easy arousing his in te re st
w hich is essential to every successful
a ttem p t in education. T he visual aids
found in possessing th e deposit slips,
th e depositing of real m oney, th e pride
of possession, th e reaction th a t resu lts
from seeing som ething—in th is case
th e account—grow , th e perm anency of
th e re su lt especially w hen w ith ­
draw als are n ot encouraged and th e
process of w ith d raw in g is n ot m ade
easy, th e know ledge th a t th e account
itself has earned in te re st—all these
factors have for th e child values in
education w hich few or if any o th er
activities possess in like degree. In
th e school savings ban k are found
possibilities th a t th e alert educator
w ill welcome once he becom es aw are
of th em .”
E dm und W. Thom as, presid en t of
th e F irs t N ational Bank, G ettysburg,
P ennsylvania, declared:
“E nough ban k s have show n th a t
school savings can be operated profit­
ably to ju stify our earn est research
an d analysis and to ju stify th e as­
sum ption th a t th is is ju s t an o th e r in ­
dividual problem th a t deserves our
earn est atte n tio n and an effort on our
p a rt to find a solution. W e are not
looking for new problem s in b an king
today. W e have p len ty of them now
th a t are th ru s t upon us. B ut we can­
not solve a problem by circum venting
it and certain ly we cannot solve a
problem by avoiding it. I believe in
school savings and all th a t it stands
for. I feel th a t it is necessary th a t
banks everyw here should determ ine
definitely w h at it w ill cost th e ir indi­
vidual in stitu tio n s to adopt a school
savings system , provided th a t some
o th er banking in stitu tio n in th e com­
m u n ity has not already u n d ertak en
th is work.
“It is m y e arn est hope th a t ban k ers
w ill endeavor to educate th e public
as to ju st w h at a b an k is and w h at it
is not; th a t th ey w ill tell th e public in
th e language of th e average person
ju st how a b an k operates. T he public
is generally fair and reasonable. I
th in k th e public w an ts to be tak en into
our confidence to a g reat extent. I can
th in k of no b e tte r w ay of reaching the
average individual in th e average
com m unity th a n th ro u g h th e boys
and girls th a t are found in the
(T u rn to page 44, please)

New Comprehensive Liability
Coverage A s It Affects

EstdtC

Insurance on Properties in Which Banks Are Directly, or
Indirectly, Interested

“ 0 discuss C om prehensive L iability
as applied to re a l estate—and est pecially b an k s—let us give p rim a ry
consideration to th e applicability of
th e C om prehensive G eneral L iability
policy.
T he te rm G eneral L iab ility should
be u n d ersto o d to em brace all liability
im posed by law upon th e in su red oth er
th a n in connection w ith autom obiles,
airc ra ft and em ployees of th e in su red
w hile engaged as such.
P ro p erties in w hich a b an k m ight
be in te re ste d w ould include (a) di­
rectly ow ned p ro p e rty e ith e r occupied
by th e b a n k or held for investm ent,
and p ro p erties acquired th ro u g h fore­
closure; (b) p ro p erties w hich are held
u n d e r assig n m en t of re n t agreem ents
(c) receiv ersh ip s (d) v o lu n ta ry m an­
agem ent co n tracts and (e) tru sts, and
u n d e r th e la tte r classification m ight
include m ost an y k in d of p ro p e rty or
business from a sm all p riv a te re si­
dence to a large m an u factu rin g opera­
tion. If a b an k w ere w illing to pay
th e p rem iu m for th e various hazards
to w hich it is exposed d u rin g th e pol­
icy term , a C om prehensive G eneral
L iab ility and a C om prehensive A uto­
mobile L iability policy w ould give com ­
plete bodily in ju ry and p ro p e rty dam ­
age liability p rotection except as re ­
spects a irc ra ft and p ro p e rty in th e
care, custody and control of th e in ­
sured, for u n doubtedly som e m ethod
m ig h t be found to give autom atic
coverage as resp ects assum ed (con­
trac tu a l) liability to w hich a b an k falls
heir.
A no th er o u tstan d in g featu re of th e
C om prehensive policy—and indeed
w ith o u t w hich it w ould n o t be fully
com prehensive—is th a t it au to m ati­
cally covers an y ad ditional hazard s to
w hich th e in su red shall be exposed
d u rin g th e policy term , and w hich did
n ot exist on th e inception date of th e
policy provided, of course, those p a r­
ticu lar exposures have n o t been en ­
dorsed o u t of th e policy.
F o r instance, in m any cases liability

T

By Rexford Crewe
Supt. Production Department
H artford A c c id e n t & Indemnity Co.
New York C ity

attaches to a bank, m ortgage com pany
or real estate operator before th e In ­
su ran ce D ep artm en t has an o pportu­
n ity to know exactly w h at properties
or tru s ts have been acquired and w h at
in su ran ce is available or required.
T he C om prehensive policy w ould fill
th e gap to th e lim its provided for in
th e policy. In New York and Louisi­
an a th e C om prehensive w ould be con­
trib u tin g in su ran ce if o th er valid and
collectible in su ran ce w ere in existence.
In o th er states th e C om prehensive
m ay be excess insurance.
In d ep en d en t d ep artm en ts in th e
sam e office m ight conceivably create
liability w ith o u t pro m p tly notifying
th e In su ran ce D epartm ent. L iability
so created w ould be covered. Co­
executors, ad m in istrato rs, ow ners, or
agents m ight en ter into arran g em en ts
for building, alterations, acquisition
of new p ro perties or create new haz­
ards w ith o u t prom ptly notifying the
In su ran ce D epartm ent. N evertheless,
in su rance u n d er th e C om prehensive
policy is available from th e m om ent
th e risk is created.
In o ther w ords the C om prehensive
G eneral L iability policy w ould au to ­
m atically provide coverage for p rem ­
ises, elevators, team s, certain form s of
liability and, if w e visualize a m an u ­
factu rin g p lan t or o th er business com­
ing u n d er th e ow nership or control of
a b an k or tru s t com pany and operated
by it, th e M an u factu rers’ and C ontrac­
to rs ’ L iability, P ro d u cts’ L iability, and
in addition an y o th er liability for
w hich th e in su red w ould be liable w ith
th e exception of th a t arising th ro u g h
ow ned or h ired autom obiles and a ir­
craft and to employees.
A basic principle of th e C om prehen­

sive G eneral L iability policy is th a t
all liability be covered and at uniform
lim its. H ow ever, in p ractical applica­
tion and for v ery good reasons, it has
been found desirable to m odify this
fu n dam ental req u irem en t and perm it
tw o exclusions at th e discretion of
th e in su red or th e in su rer. T hey are
P ro d u cts’ L iability and P ro p erty Dam ­
age L iability. A th ird im p o rtan t ex­
ception is C ontractual (assum ed) L ia­
bility, b u t as th is is provided for in
th e stan d ard exclusions of th e policy
it m ay be added by endorsem ent,
w hereas P ro d u cts’ Public L iability and
P ro p erty Dam age L iability are au to ­
m atically included in th e policy unless
specifically excluded by endorsem ent.
T his d ep artu re from com plete cover­
age is justified on th e prem ise th a t
both form s of protection have n o t been
w idely carried in th e p ast and w here
it has been bought it has been because
of g reater th a n norm al hazard. T he
experience th erefo re has been largely
based on adverse selection. U ntil a
g re a te r volum e of each of these ex­
posures has developed rates th a t can
be considered sufficiently indicative
of norm al or average hazards it has
been felt th a t th e privilege of selec­
tion by th e in su red should be con­
tinued.
You m ig h t in q u ire here if th e exclu­
sion of these tw o coverages w ould not
affect th e autom atic and tru ly com pre­
hensive cover w hich a b an k needs.
The an sw er is it would, b u t a p roper
solution m ight be some m ethod w h ere­
by autom atic coverage for these tw o
hazards w ould be provided for a period
up to six ty or n in ety days w ith in
w hich tim e a decision could be m ade
as to w h eth er th ey should be elim i­
nated en tirely or, if desired, w ritte n
on a specific risk basis. T he bank, of
course, w ould pay a prem ium for th e
period of autom atic cover.
To sum m arize, a C om prehensive
G eneral L iability policy m ust include
all Bodily In ju ry L iability except
P ro d u cts’ and C ontractual w hich are
optional and (2) m ay include PropNorthwestern Banker


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

A pril 19^1

24
e rty Dam age provided it covers all
G eneral L iability hazard s except P ro d ­
u cts’ L iability and C ontractual L iabil­
ity w hich are optional.
A fu rth e r d e p a rtu re from th e basic
principle th a t all liability be covered
u n d e r a com prehensive policy is p ro ­
vided for in th e case of c u rre n t policies
in th e com pany w ritin g th e com pre­
hensive policy, or in o th er com panies,
w hich for som e reaso n cannot be in ­
cluded in th e com prehensive coverage.
The ru les g overning such policies are
in th e m anual and need not be re ­
view ed here.
In th e case of individuals or co­
p a rtn e rs n am ed as additional in su red s
in a policy issued to a b an k or o th er
interest, it is n ecessary to attach en­
dorsem ents lim itin g th e com prehen­
sive coverage for individuals to th e
p ro p erties or business of w hich th e in ­
su red is sole ow ner and re stric tin g
coverage for p a rtn e rs to apply only
w hile acting w ith in th e scope of th e ir
duties as such.
The ru les g overning com prehensive
policies p e rm it th e exclusion, if de­
sired, of liability arisin g from hazards
w hich are norm ally excluded u n d er
p ro p e rty dam age liability, such as from
th e use of m echanical eq uipm ent used
for excavating in stre e ts and h ig h ­
ways, w a te r dam age, explosion and

collapse, etc. U nless specifically ex­
cluded th e foregoing hazards w ould be
covered.
A C om prehensive A utom obile L ia­
bility policy w ould give com parable
coverage as respects autom obiles to
th a t described for general liability,
b u t unless a b an k or real estate firm
has a su b stan tial autom obile exposure,
e ith e r th ro u g h ow ned or non-owned
cars, th e m inim um prem ium in New
Y ork is ap t to appear ra th e r high. In
th e case of tru s t com panies, how ever,
it should be a desirable policy and the
m inim um prem ium w ould be a m inor
factor.
T he advance p rem ium for com pre­
hensive coverage is determ ined by
m aking a th o ro u g h surv ey to d eter­
m ine w h at exposures exist at th e tim e
th e policy is to be issued. The m ini­
m um inform ation w hich a survey is
req u ired to develop is such as to
fu rn ish a fairly com plete d eterm in a­
tion of th e risk s to w hich th e insured
is exposed and p erm it th e calculation
of an advance prem ium based on rates
an d classifications in th e com pany’s
m anual. D uring th e policy te rm addi­
tional exposures w ould be au to m ati­
cally covered and th e additional p re ­
m ium determ ined by audit on ex p ira­
tion of th e policy. The m inim um
prem ium for a C om prehensive G eneral

L iability policy is $100 for bodily in ­
ju ry and $50 for p ro p erty dam age for
stan d ard lim its.
To th e advance p rem ium for th e
policy and to any additional prem ium
determ ined by final au d it th e re is
added one per cent of th e p rem ium
for com prehensive insurance. T his
one per cent is freq u en tly spoken of
as a charge for th e “un k n o w n h az a rd ”
b u t it goes beyond th a t because it
covers added su rv ey and au d it ex­
pense, prem ium s due b u t n ot collect­
ible, because of failure of independent
d ep artm en ts or officers to keep com­
plete records, or w hich m ay th ro u g h
oversight not be rep o rted to th e in su r­
ance d ep artm en t of th e Insured, such
as, let us say, sm all jobs let to inde­
p en dent contractors, and sim ilar item s.
The additional one p er cent charge is
subject to a m inim um of $10 for bodily
in ju ry and $5 for p ro p erty dam age
both for stan d ard lim its. In tim e as
experience develops u n d er th e com pre­
hensive policy it m ay appear desirable
to increase th e m inim um , adopt a
m axim um lim it as to am ount, or do
both.
T he insurance su rv ey discloses d an­
ger spots w hich m ay not have been
recognized and p erm its a w ell-planned
in su ran ce program w hich inspires a

Largest Company of Its Kind in the World!
• Forty-eight Years Old.
• Surplus to Policyholders, $1,383,666.64.
• Total Losses Paid to Date, $14,779,409.67.
• Carries Hail Insurance on Growing Crops.
• All Coverage Automobile Insurance.

Some good openings
for banker-agents

• Fire Insurance on Town Dwellings, and Broad
Coverage of Wind and Tornado Insurance.

----- V A L L F V B A N K B U IL D IN G , D E S M O IN ES, IO W A
Northwestern Banker

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

A pril 194Í

25
confidence in th e in su red w h ich w ould
not o therw ise be possible.
Out of the use of th e su rv ey an d th e
m ore in tellig en t b u ying of in su ran ce
m ay w ell come a n o th e r im p o rta n t step
in th e developm ent of com prehensive
in su ran ce—th e g en eral use of a single
ra te based on a su itable m easu re of
exposure for th e individual policy,
w h e th e r it be payroll, sales or some
o th e r factor.
C om prehensive coverage is n o t all­
risk in su ran ce and is n o t in ten d ed to
be. I t w ill be a long tim e before all­
ris k in su ran ce can be w ritte n , even if
it can be p ro v en to be desirable, if
for no o th er reaso n th a n th a t law s
gov ern in g in su ran ce in m ost states de­
fine quite rigidly th e fields into w hich
casu alty in su ran ce com panies and fire
insu ran ce com panies m ay v en tu re.
C om prehensive L iab ility insurance,
how ever, is a long step fo rw ard to w ard
com bining th e In su re d ’s liability at
law for in ju rie s to p ersons an d to p ro p ­
e rty of o th ers in one inclusive policy.
U ndoubtedly th e p re se n t stan d ard s
w ill be rap id ly broadened w ith in ­
creased reliable experience. Com bined
w ith a single ra te and a single lim it
of liab ility we will be b ro u g h t m uch
closer to th e really com prehensive pol­
icy w hich is the goal of m an y u n d e r­
w rite rs and in su rers.

Young Women
Are in Danger
M inneapolis—G irls b etw een 15 an d
25 have lagged fa r beh in d y o ung m en
of th e sam e ages, in th e im pro v em en t
of th e tubercu lo sis d eath rate; 65 p e r
cen t m ore girls die from th e disease
each y e a r th a n b ro th ers, boy frien d s
and h u sb an d s in th e 15-25 age b racket,
according to a stu d y by N o rth w e ste rn
N ational Life In su ran ce Company.
In th e U nited S tates tubercu lo sis
does its d eadliest w o rk now adays
am ong w om en of child-bearing ages,
th e p opulation segm ent m ost v ita l to
A m erica’s p re se n t and fu tu re , th e
stu d y poin ts out.
Biological differences—th e g re a te r
changes in th e fem ale o rganism a t
adolescence—m ake girls and young
w om en n a tu ra lly m ore susceptible to
tuberculosis; th is su scep tib ility h as
undou b ted ly been ag g rav ated by m od­
e rn trends: “slim ing” diets, late h ours,
w id er use by w om en of alcohol an d
tobacco, an d by in d u stria l com petition
betw een w om en an d m en based on th e
false assu m p tio n th a t th e tw o sexes are
physically equal, th e stu d y states.
A lthough th e d eath ra te from tu b e r­
culosis am ong th e g en eral p opulation
has declined since 1900, girls and young
w om en have sh a re d less in th a t im ­
pro v em en t th a n an y o th er age-and-sex
group, th e stu d y shows.

T hough in 1900 th e tuberculosis
d eath ra te am ong girls from 15-19 in ­
clusive w as 43 p er cent h ig h er th a n
th a t of boys of th e sam e age, th e young
g irls’ death ra te today is 82 p er cent
above th a t of the boys.
A nd w hile in 1900 th e tuberculosis
d eath ra te of young w om en aged 20-24
inclusive w as only six p er cent above
th a t of young m en in th e sam e age
group, today th e difference is 41 p er
cent, th e stu d y shows.
T he m ale death ra te from tu b e rc u ­
losis overtakes th a t of w om en a t about
age 30, and th e re a fte r ru n s steadily
higher, b u t in th e child-bearing ages
from 20 to 35, 22 p er cent m ore w om en
die of tuberculosis th a n do m en of cor­
resp onding ages. T he g re a te st nu m b er
of deaths from th is cause am ong any

five-year age-sex group occurs am ong
young w om en aged 20-24, and th e sec­
ond larg est group of fatalities occurs
am ong young w om en aged 25-29. F ig ­
u res from tuberculosis san itariu m s re ­
flect th e v u ln erab ility of young w om en
to th is disease, th e stu d y points out,
an d quotes as a typical and strik in g
exam ple data from Glen Lake Sani­
tariu m , big tuberculosis in stitu tio n
ju st outside M inneapolis; of its to tal
inm ates, 19 p er cent are young w om en
in th e age group 20-24 inclusive; w o­
m en in th is age group re p re se n t less
th a n 5 p er cent of th e general popula­
tion.
Since girls first reach m axim um sus­
ceptibility to tuberculosis in th e ir early
teens, th e re p o rt suggests th a t all high
schools should conduct h ealth classes

G e n e r a l A m e r ic a n L if e
I n s u r a n c e Co m p a n y
WALTER W. HEA D, President
St. Louis, Missouri

F in a n c ia l S t a t e m e n t , D e c e m b e r 31, 1940
ASSETS
CASH ON HAND AND IN BANKS................................... $ 9,193,990.86
BONDS—
~ f U. S. Government.............................................................. 17,628,309.86
Other Bonds....................................................................... 10,695,153.65
CASH AND BONDS..........................................................................................$ 37,517,454.37
FIRST MORTGAGE LOANS ON REAL ESTATE................................. 29,195,416.46
HOME OFFICE BUILDING....................................................................
950 000 00
REAL ESTATE SALES CONTRACTS........................................................
869!435.27
OTHER REAL ESTATE.................................................................................. 17,112,311.87
STOCKS.................................................................................................................
2,578,156.75
OTHER LOANS AND ASSETS...................................................................
1 072 176 82
INTEREST AND RENTS ON INVESTMENTS ACCRUED BUT
NOT YET D U E ............................................................................................
758,108.56
INTEREST AND RENTS DUE ON INVESTMENTS (None of which
i s past due more than 90 days).....................................................................
492,960.87
NET PREMIUMS IN COURSE OF COLLECTION...............................
2,007,015.45
8,211,111.00
©BALANCE OF INITIAL POLICY LIENS.............................................
LOANS TO POLICYHOLDERS..................................................................... 26,369,399.20
©TOTAL ASSETS.............................................................................................. $127,133,546.62
LIA B IL IT IE S
©POLICY RESERVES..................................................................................... $119,143,793.98
PREMIUMS AND INTEREST PAID IN ADVANCE...........................
848 782 42
RESERVE FOR TAXES..................................................................................
704 370 40
RESERVE FOR OTHER LIABILITIES...................................................
901 147 96
1,320’,08L33
POLICYHOLDERS’ DIVIDENDS................................................................
TOTAL................
$122,918’l76.09
PORTION OF CURRENT YEAR’S EARNINGS AVAILABLE FOR
FUTURE DIVIDEND DECLARATION TO PARTICIPATING
POLICYHOLDERS......................................................................................
566,970.00
CONTINGENCY RESERVE..........................................................................
1,462,789.23
Under Purchase Agreement................................................... $1,362,789.23
Other..........................................................................................
100,000.00
CAPITAL STOCK AND GUARANTY FU N D ..........................................
500,000.00
SURPLUS..............................................................................................................
1,685,611.30
©TOTAL LIABILITIES...................................................................................$127,133,546.62
© Actual Market Value o f Bonds is more than $2,400,000 in excess o f the amounts shown above.
© Does not include liens totaling $669,447 which have been discharged by payments in cash or credits
by policyholders, nor $169,926.82 l tens on dividends on deposit, both o f which items will share in
future lien reductions.
© Includes assets in “Old Company Account” established under Purchase Agreement dated September
7, 1933, on file with the Superintendent o f the Insurance Department o f the State o f Missouri, (copy
o f which agreement may be obtained from him or the company), against which the Superintendent
reserved a lien to protect certain liabilities therein described and fully included among the liabilities
in this statement. Status o f Old Company Account on file with the Superintendent and withthe company.
©Full net lega lreserves on policies issued by General American Life are secured by deposit o f ap­
proved securities with the Superintendent o f the Insurance Department o f the State o f Missouri. The
capita l stock, guaranty fund, and surplus are additiona l protection to all policyholders.

❖

*

❖

MULTIPLE LINES: Participating • Non-Participating • Salary Savings • Juvenile
Sub-Standard • Annuities • Commercial Accident and Health and Hospitalization
Group Life • Wholesale Insurance • Group Accident and Sickness • Group Acci­
dental Death and Dismemberment • Employee and Dependents Group Hospitalization
with Surgical Procedure Benefits

N orthwestern Banker

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

A pril 1941

26
tected in its early stages and m odern
tre a tm e n t is pro m p tly begun and car­
ried th ro u g h , a cure is assu red in th e
v ast m ajo rity of cases.
G row ing girls especially need p len ty
of p ro teins and fats for body-building
an d v itality m aintenance; th e y fre ­
q u en tly live m ostly on starch es in ­
stead, th e re p o rt w arns. S tarches are
needed, b u t proteins, fats, an d th e m in ­
eral-bearing foods m u st n o t be
skim ped.
One of th e b est protective m easures,
th e stu d y concludes, is a large and
heav y p aren tal foot, firm ly p lan ted on
too ultra-m odern ideas of pleasure.
P resent-day ideas seem to call for p a r­
ties th a t last fa r into th e m orning
hours, and o th er excesses. Y oung ideas
m ay change, th e re p o rt points out,
b u t physiology doesn’t. A m ple sleep

in w hich effects of “fad ” diets, tobacco,
alcohol, insufficient sleep, a n d scanty
clothing are g rap h ically tau g h t.
I t also recom m ends th a t p a re n ts of
teen-age an d older g irls should act
prom p tly upon observing a n y sym p­
tom s of lassitude, even slig h t eleva­
tion of tem p eratu re, or loss of ap p e­
tite. A tu b ercu lin te s t should be m ade,
supplem en ted by x-ray ch est ex am ina­
tions w h e re v e r indicated. If th e re h as
been an y exposure th ro u g h association
w ith a case of tubercu lo sis in class or
elsew here, te sts should be m ade re ­
gardless of w h e th e r an y sym ptom s are
show n.
A case of p leu risy w ith o u t p n e u ­
m onia, th e re p o rt w arn s, should in th e
case of a g irl or young w om an be con­
sidered tuberculosis u n til definitely
proved otherw ise. If tubercu lo sis is de­

and w holesom e h abits are ju s t as nec­
essary as th ey ever have been.

1941 Looks Promising
“H ail insu ran ce on grow ing crops is
reg ard ed by m any people as m ore or
less of a m y stery b u t up a t th e office
of th e old F a rm e rs M utual H ail In ­
surance Company, w hich is ju s t s ta rt­
ing on its fo rty-ninth year, th e officers
an d agents w ill tell you th a t th e y be­
lieve th is k ind of protection is as sim ­
ple as A-B-C,” states C. P. Rutledge,
p resid en t of th e com pany.

Another Record Breaking 1st Quarter
Allied Mutual Agents Wrote More Business
during the first quarter of 1941 than in any
other three months of company history.
Assets and surplus figures showed compa­
rable gains.

•
For Complete Automobile, Workmen's Com­
pensation and General Liability Coverages.

ALLIED M UT U A L
CASUALTY

COMPANY

Harold S. E vans, President
H ubbell Bldg.
Des M oines, Iow a

OHS M O IN E S

B y keeping constantly in touch with all
important developments in Michigan business
and industry, we are enabled to provide banks
and bankers throughout the country with an ex­
tremely broad and helpful correspondent service.
☆

NATIONAL BANK. OF DETROIT
Complete Banking and Trust Service

D E T R O IT , M IC H IG A N
Northwestern Banker

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

A pril 1941

C. P. RUTLEDGE

“T he y ear 1940 w as a busy one for
th is com pany and th e ir business ex­
tended to m ost of th e states in th e
M ississippi Valley. All of these states
are subject to v ery dev astatin g hail
storm s du rin g th e crop grow ing season
and th e desolation left afte r one of
these storm s is tru ly appalling an d al­
m ost unbelievable.
“The record of th e com pany d u rin g
1940 w as v ery satisfactory; th e outlook
for 1941 is v ery prom ising. T he cash
su rp lu s w hich is n ot req u ired by law
and w hich, on J a n u a ry first, w as $1,179,533.74, w as $1,385,666.64 on Decem­
b er first last, a n e t increase for th e
y e a r of $206,132.90.
“The F a rm e rs M utual has th e dis­
tin ctio n of being th e oldest and larg est
M utual H ail Com pany in th e w orld to ­
day. In addition to being a H ail In ­
su rance Com pany it is ad m itted to
w rite A utom obile In su ran ce in several
o th er states an d w rites F ire In su ran ce
covering dw elling houses in tow ns. It
does a large Tornado business a n d car­
ries on a v ery extensive rein su ran ce

27
business in b o th th e U nited States an d
Canada.
"H ow ever, its reco rd in o th er lines
is shadow ed by its H ail b u siness be­
cause it stan d s out as th e leader an d
sta n d a rd in th a t line. E v en th e W e a th ­
er B u reau recognizes th e F a rm e rs M u­
tu a l as an a u th o rity on H ail In s u r­
ance.”

Clifford S. Young Heads
Seventh District Bank
Clifford S. Young, w ho began his
b an k in g career in 1906 an d w as first
em ployed by th e F ed eral R eserve
B ank of Chicago as an ex am in er in
1921, w as elected p resid en t of th e in ­
stitu tio n la st m onth. He succeeds
George Schaller, w ho resigned.
Mr. Young, w ho w as b o rn in Toledo,
Illinois, as w e said above, e n te re d th e
ban k in g b u siness in 1906, serv in g in
vario u s capacities, including vice p re si­
den t u n til 1916, w h en he becam e a sec­
ond lie u te n a n t in th e U. S. A rm y. A t
th e close of W orld W ar N um ber One
he again en tered th e b an k in g business,
serv in g as vice p resid en t of a c o u n try
bank.
Com ing up th ro u g h th e ra n k s of th e
F ed eral R eserve B ank he w as a p ­
pointed acting se c re ta ry of th e board
of d irecto rs in 1931, and th e n e x t y e a r
w as nam ed m an ag er of th e b a n k exam ­
inatio n d ep artm en t. He becam e vice
p resid en t an d a m em ber of th e m an ag ­
ing com m ittee in 1936.
Mr. Y oung is a m em ber of th e B ank­
ers Club of Chicago, U nion L eague
Club, E conom ic Club, South Shore
C ountry Club, an d O lym pia F ields
C ountry Club; is a m em b er of th e
b an k in g adv iso ry com m ittee of th e
U n iv ersity of Illinois, an d is a Mason.

I s your institution analysis
minded?

If so, the result of a

recent survey of our collection
facilities will be of interest to
you.
The average time required by
us to collect $121,000,000 of
transit items in one week was
1.19 days.
The average time to collect
the same business without the
advantage of twenty-four-hour
operation

would

have

been

1.50 days.
. . . THE . . .

I. B. A . to Help
E m m e tt F. Connely, of D etroit, p re si­
d en t of th e In v e stm e n t B an k ers A sso­
ciation of A m erica, an nounced th a t he
had pledged to S ecretary M orgenthau
th e aid of th e association’s m em bership
in th e sale of n atio n al defense stam ps
and certificates to th e public.
I t is u n d ersto o d th a t th e public of­
ferin g of th ese g o v ern m en t obligations
to help finance th e defense p rogram
w ill s ta rt ab o u t M ay 1st.
Speaking a t a m eeting in Chicago of
th e C entral S tates G roup of th e asso­
ciation, Mr. Connely told th e m em b er­
ship th a t w ith th e form al ap p ro v al of
th e board of govern o rs he h ad advised
Mr. M orgenthau th a t th e facilities of
th e m em bership in som e 200 cities
w ould be available for th e cooperative
effort, w hich w ill also include th e com ­
m ercial b an k s of th e country.

P H IL A D E L P H IA
NATIONAL

BANK

ORGANIZED 1803

PHILADELPHIA, PA.
Capital, Surplus and U ndivided Profits
$ 4 4 ,0 0 0 ,0 0 0
Member of Federal Deposit Insurance Corporation

Northwestern Banker

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

April 1942

28

The Month’s Market Maneuvers
A lthough in d u s­
trial a ctivity con­
tinu ed at a high
r a t e in M a r c h ,
s t r i k e s and v io ­
l e n c e filled t h e
h e a d lin es. F or
each strike w hich
w as settled, tw o or
three broke out—
JA M E S H. CLARKE
March, indeed, had
its troubles. W ith the ap poin tm ent by
the P resid en t of a N ational D efen se
M ediation Board, th in gs m ay be better
in A pril—but the outlook on the labor
fron t is gloom y as w e w rite this.

The g o vern m en t bond m a rk e t regis­
tered gains during the m o n th — m u n ic i­
pals rem ained firm ■— but high-grade,
low-coupon corporates w ere som ew hat
easier. A s w e w rite this, Saturday
m orning, the 29th, to m eet our dead
line, there appears no great change in
the stock m a rk e t in th e past fo u r
w eeks. On the favorable side there
have been reports of increased produc­
tion and better earnings— on the nega­
tive side, indications of higher taxes
and fears of our getting into a shoot­
ing war. D evelopm ents abroad w ith
the u p set in the B alkans have added
to the confusion— and hence to con­
serva tism here.
To date th e re have been tw enty-four
days of tra d in g in M arch—th irte e n in
w hich declines w ere recorded and
eleven w hich re su lte d in gains. De­
spite th is th e m a rk e t im proved slig h t­
ly. On F e b ru a ry 28th th e Dow Jones
average for in d u stria l stocks w as
121.97—on M arch 28th it w as 122.68—
a gain of .71. A gain th e re w as no day
in w hich so m any as a m illion sh ares
trad ed —hence, Ja n u a ry , F e b ru a ry and
M arch w ith o u t a m illion sh are day.
Sm all w onder th a t a seat on th e New
Y ork Stock E x change changed h ands
a few days ago for $25,000—an o th er
new low since 1898.
The b est day the m arket had in
March w as M onday the 10th—620,000
sh ares traded th at day. The p revious
Saturday after th e close of the m arket
the Lend-Lease B ill passed the Senate.
M onday’s m arket in terp reted th is as
b u llish —m ore p lanes, ships, steel for
B ritain. B u t in th e fo llow in g three
days over h alf of th is gain w as lost.
E v en w ith p len ty of good n ew s the
m arket has difficulty h old in g gain s—
in th ese days of u n certain ty stock s
have very few friends.

Northwestern Banker

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

April 1911

Prepared for
The Northwestern Banker

By James H. Clarke
Assistant Vice President
American National Bank & Trust Co.
Chic ago

Tw o groups in the bond m a rket
w ere stronger in M arch — U. S. Gov­
ern m en ts and second-grade rails. A n
u n u su al com bination. The T reasury’s
second offering of taxable bonds was
h ig h ly successful— as contrasted w ith
the first offering in F ebruary w hich
was heavily oversu b scrib ed but did
n o t clim b m u ch afterw ards. This
m o n th ’s cash offering w as five hundred
m illions of taxable 2 % ’s due in eleven
to th irteen years— plus the refunding
of the June 1%’s notes. The first day
the neiv bonds w ere quoted betw een
100.26 and 101.2— but this was for but
a day. W ith in a w eek th e y had
clim bed a p o in t— last n ig h t at the
close w ere quoted 102.7 on the bid
side.
M utual savings banks and some in ­
suran ce com panies—w here taxes are
not a problem —w ere big buyers of the
new 2 % ’s of 1954/52. New Y ork deal­
ers in g o v ernm ent bonds re p o rt some
sw itching by these tw o buyers from
th e ir ta x free holdings to th e new
bonds—th e rise of seven to eight th irty seconds y esterd ay being p a rtly th e re ­
su lt of a su b stan tial order of one large
m u tu a l savings bank. B ut ta x free
bonds w hich w ere sold w ere absorbed
w ith o u t trouble by banks w here taxes
are a consideration. T he re su lt—the
long 2%’s of 1965/60, w hich w ere bid
108.10 on th e last day of F eb ru ary ,
w ere 109.24 a t th e close yesterday.
E xcep tio n a lly large incom e tax col­
lection s th is year— m uch greater than
W ash ington anticipated — also helped
the m arket for g overn m en ts. A t lea st
tem porarily the T reasu ry’s w ork in g
balance w ill be large enough to ease
th e strain of the trem end ous sp en din g
program —and w ill put oft' a b it the
n ecessity of h ea v y borrow ing. But it
w ill com e ev en tu a lly , of cou rse—and
som e of it later th is year. The T reas­
u ry ’s plan to finance part of its sp en d ­
in g out of sa v in g s has also ligh ten ed
the burden on the bond m arket. That
four issu es of sa v in g s bonds w ill be
available around May 1st sh ould aid in
raisin g three or four b illio n s—at least,
so th in k s W ash ington . W ith th e pub­
lic able to buy $5,000 in any one year

of n ew ten-year “D efen se S a v in g s”
bonds to yield 2.9 per cent to m aturity
— in dividu als, corporations, pension
funds, and the like, able to buy “Series
F ” sa v in g s bonds w ith a tw elve-year
m atu rity up to $50,000 to yield 2.53 per
cent on a d iscou nt b asis or “S eries G”
tw elve-year 2% p er cent coupon bonds
—plus “Savings S tam ps” in denom inan ation s of 10 cents, 25 cents, 50 cents,
$1.00 and $5.00 — it is possible that
banks in 1941 w ill not have to take the
m ajor role in g o vern m en t financing.
If the w ar la sts longer, how ever, the
banks w ill be called upon to shoulder
a large part of the burden.

There tvere v e ry few corporate bond
offerings during the m onth. The three
principal ones w ere $30,000,000 of
W heeling Steel Corporation 3% ’s of
1966 priced at 97 % — $15,000,000 of Ohio
P ow er Com pany 3’s of 1971 at 102 %
and $20,000,000 of Pacific Gas and
E lectric Com pany 3’s of 1970 at 101%.
B u yers w ere rather in d ifferen t to all
this financing and bonds are available
at the offering prices in the three is­
sues. One can get a good perspective
of the high-grade m a rket by checking
prices in the W all Street Journal in
the box headed, “C urrent Prices of
R ecent Bond Issues.” Of fifteen issues
carried in the box w here both bid and
asked are listed— in th irteen cases the
bid is below the offering price. For
instance, the Sou th ern California E d i­
son 3’s of 1965 offered at 104 are cur­
re n tly bid 101%— B oston E dison 2% ’s
of 1970 priced originally at 104 are
now bid 101— Public Service of Okla­
hom a 3% ’s of 1971 are now bid 102%
com pared w ith the price originally of
103%— and so on.
E v en tu ally th e T rea su ry w ill test
out th e longer term m a rk e t w ith a
tw en ty to tw enty-five y e a r bond. The
coupon w ill be aro u n d 2% to 3 p er
cent—and w ill offer d irect com petition
to p resen t long-term corporate issues.
In th e m eantim e th e corporate m a rk e t
m u st ad ju st itself to th is developm ent
—and buyers of bonds m u st n ot over­
look this.
W ith tooling operations now com­
pleted in m any in d u stries we m ay look
for a fu rth e r stepping up of produc­
tion in th e com ing m onths. A pril has
alw ays been a critical w ar m o n th —last
y ear it b ro u g h t th e invasion of D en­
m ark and N orw ay — perhaps, Greece
th is year. Or m aybe a try a t invasion
of E ngland. In any event, th e m ark ets
w ill n ervously aw ait new s from
abroad.

29

NEW 1941

Iowa -N ebraska
Bark Directory
P u b lish e d by the N O R T H W E S T E R N B A N K E R
D es M oin es

T he new 1 9 4 1 ed ition o f the IowaNebraska Bank D irectory w ill he ready
soon. In it you ’ll find the m ost com ­
p lete and latest in form ation on Iowa and
Nebraska banks, in clu d in g person n el,
capital, surplus, deposits, loans and dis­
counts, bond h old in gs, correspondent
hanks and other valuable data.

“A n excellent d ire c to ry .”
B. C. H ew lett, ca sh ie r, F ir s t S ta te B ank, B elm ond, la.

jßike
9t"

“W e s u b s titu te y o u r excellent d ire c to ry fo r th e la rg e d ire c to ry .”
T. J. Poague, ca sh ie r, S ta te B ank of L ib e rty , N ebr.
“ I t ’s th e b e s t little d ire c to ry p u b lish ed an d j u s t th e r ig h t size so one
can c a rry it in th e po ck et d aily .”
H. J. Lamp, vice p re sid e n t, B e n n e tt S ta te B ank, B e n n e tt, la.
“ Y our b an k d ire c to ry is a v e ry h a n d y an d com plete book.”
Sim Bonsall, c a sh ie r, L ex in g to n S ta te B ank, L ex in g to n , N ebr.

Iow a-N eb rask a B an k D irecto ry
527 S even th Street
D es M o in es, Iow a

____________________________, 1941

G e n tle m e n :

Use the handy coupon at the right

P le a se se n d ___________co p ies o f you r 1941 Iow a-N ebraska B an k
D irecto ry to us, and w e w ill rem it at the rate o f $2 p er copy
u p o n r ece ip t of you r D irectory.
C om pany
O fficer___
City

State

Northwestern Banker
«


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Federal Reserve Bank of St. Louis

A pril 1941

30

Convention Calendar
A m erican B ankers A ssociation —H otel

Stevens, Chicago, S eptem ber 28-October 2.
A. B. A. C onsum er Credit C onference

—H otel S tatler, St. Louis, M issouri,
A pril 23-25.
A. B. A. E x ecu tiv e C ouncil Spring
M eet —H om estead, H ot Springs, V ir­

ginia, A pril 27-30.

N ational A ssociation of B ank A uditors
and C om ptrollers 9th A nn ual E a st­
ern R egion al C onferen ce — Boston,

M assachusetts, A pril 18-19.
N ational A ssociation of B ank A uditors
and Com ptrollers 7th A nn ual MidC ontinent R egional C onference —

Cleveland, Ohio, M ay 16-17.
N ational A ssociation of M utual S av­
in gs B an ks —B ellevue-S tratford H o­

A m erican In stitu te of B a n k in g — St.

tel, P hiladelphia, A pril 30, May 1-2.

F ran cis H otel, San Francisco, Ju n e

N ational Safe D ep osit A sso cia tio n —

2- 6.
A ssociation of R eserve City B an kers—

H otel Statler, Buffalo, N ew York,
May 22-24.

H otel H ershey, H ershey, P en n sy l­
vania, M ay 4-7.

N ational A ssociation of B ank A uditors
and C om ptrollers 17th A nnual N a­

CITY
CO

TO

DOLLARS

WORK

ON

THE

FARM

URING the past seventeen years the Federal intermediate credit

banks have placed several billions of city dollars in profitable em­
ployment on farms and ranches and in farmers’ cooperative associations
throughout the country. This has been accomplished by discounting
agricultural paper carrying the endorsement of commercial banks,
agricultural credit corporations, livestock loan companies, production
credit associations and the banks for cooperatives. Funds for this pur­
pose are realized through the issuance and sale of debentures. The
soundness of enterprises financed and of local endorsing institutions
reflects the formidable position enjoyed by the Federal intermediate
credit banks and creates a broad national market for their debentures.
TH E F E D E R A L IN T E R M E D IA T E C R E D IT B A N K S
LOUISVILLE, KY.

ST. PAU L, M IN N .

H O U STO N , TEX.

BALTIMORE, MD.

N E W ORLEANS, LA.

OM AHA, N EB .

BERKELEY, CAL.

COLUMBIA, S. C.

ST. LOUIS, MO.

W ICH ITA , K A N .

SPO K AN E, W ASH.

Further information regarding the Debentures may be obtained from
CHARLES R. D U N N , Fiscal Agent

N o r th w e ste r n B a n ke r


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

A p r il 19'tl

b er 8-11.

State Conventions
A rkansas — A r l i n g t o n

H otel, H ot
Springs, May 14-15.
C alifornia — H u n tin g to n H otel, P asa­
dena, May 21-23.
Idaho —Sun Valley, Ju n e 16-17.
Illin o is — G o ld e n Jubilee, P a l m e r
House, Chicago, May 26-28.
Indiana —Claypool H otel, Indianapolis,
M ay 14-15.
Iow a —H otel F o rt Des Moines, Septem ­
b er 8-9-10.
K ansas —K ansas City, M ay 15-16.
M ichigan —G rand H otel, M ackinac Is­
land, Ju n e 26-28.
M innesota —St. Paul, Ju n e 11-13.
M issou ri — E lm s H otel, E x c e l s i o r
Springs, M ay 12-14.
M ontana —N ew F lorence H otel, Mis­
soula, Ju n e 20-21.
N ew M exico —L ordsburg, A pril 18-19.
N orth D akota —H otel P atterso n , Bis­
m arck, Ju n e 17-18.
Ohio— N etherlands-P laza H otel, Cincin­
nati, Ju n e 4-5.
Oklahom a— S k irv in H otel, O klahom a
City, M ay 8-10.
South D akota —H otel F ran k lin , Deadwood, Ju n e 26-27.
T exas— H ouston, May 21-23.
U tah —G rand Canyon H otel, Yellow­
stone N ational P ark, A rizona, Ju n e
13-14.

Holds Annual
Meeting in Des Moines

D

SPRINGFIELD, MASS.

tio n a l M eet —Chicago, Illinois, Octo­

31 Nassau Street, New York, N. Y.

The F ed eral H om e L oan B ank of
Des Moines, serving th e states of Iowa,
M innesota, M issouri, N o rth and South
Dakota, held its eig h th an n u al stock­
h olders’ m eeting in Des M oines on
M arch 29, 1941. Over 200 officers re p ­
resen tin g the b a n k ’s 244 m em ber in sti­
tu tio n s atten d ed th e m eeting, w hich
w as held in th e F o rt Des M oines Hotel,
follow ing a com plim entary luncheon.
Col. C. B. Robbins of Cedar Rapids,
w ho is ch airm an of th e board of direc­
tors of th e Des M oines Bank, presided
over th e stockholders’ m eeting. Col.
Robbins, w ho is now general counsel
and executive m anager of th e A m eri­
can Life Convention, w ith h e ad q u ar­
te rs in Chicago, has served continuous­
ly as a public in te re st d irector of th e
F ed eral L oan B ank of Des Moines
since th a t reserv e in stitu tio n w as or­
ganized in October of 1932. P ro m in en t
am ong th e v isito rs atten d in g th e stock­
h olders’ m eeting w ere F re d W. Catlett,
m em ber of th e F ed eral H om e L oan
B ank B oard in W ashington; M orton
Bodfish, executive vice p resid en t of
U nited States Savings and L oan
League, Chicago, Illinois, and E v e re tt
Sm ith, financial rep resen tativ e of th e
Federal H om e Loan B anks, New Y ork

31
City. Mr. C atlett delivered an ad dress
before th e stockholders on th e subject
of “F in an cin g H om es in a n A rsenal
and a L a rd e r.”
R obert J. R ichardson, p resid en t of
th e F ed eral H om e L oan B ank of Des
Moines, delivered his eig h th a n n u a l re ­
p o rt to th e stockholders concerning th e
b a n k ’s financial condition an d p ro g ­
ress, as w ell as th e condition an d prog­
ress of its m em ber associations.
A m ong o th er things, th e a n n u a l re ­
p o rt of P re sid e n t R ichardson indicated
th a t th e Des M oines b an k ended th e
y ea r 1940 w ith assets to talin g $25,328,438.06, an in crease d u rin g th e y e a r
1940 of over $5,000,000, and o u tstan d in g
advances to m em bers of $19,228,715.63
—th is being a new h igh m a rk d u rin g
th e b a n k ’s existence.
Since th e o rganization of th e b an k
in 1932 it has advanced to m em ber
associations $52,163,922.03, of w hich
$32,935,206.40 has been repaid.

bilization and supplying of credit and
for th e developm ent of hom e ow ner­
ship in th is co u n try are alm ost u n ­
lim ited.

G IV E THEM A C H A N C E
(C ontinued from page 11)
I th in k an active officer could see
m ore th in g s for th e d irector to do
th a n th e directors them selves. W e
alw ays notice th e o th er people’s sh o rt­
com ings ra th e r th a n our ow n and in
th is reg ard I believe th a t th e active
officers could assist th e directors in
being m ore useful to th e ir b an k by
seeing to it th a t th e policies of th e
b an k in reg ard to loans and o ther
services th a t th e b ank has to ren d er

GENERAL

M O T O RS

to th e com m unity are constantly
b ro u g h t hom e to th e director so th a t
he w ill be able to give th e b est service
to his in stitu tio n . Discuss changes of
policy w ith him before th e y are m ade
and he w ill be able to explain these
changes b e tte r to th e public. E n co u r­
age th e director in his attem p ts to
b ring in new business to th e in stitu ­
tion. W hen yo u r d irector comes in
w ith a good suggestion about a pro­
spective custom er, even th o u g h you
know m ore about th is prospective
custom er and have been w orking on
him for some tim e, don’t dism iss th e
d irecto r’s atte m p t w ith a statem en t
for him not to w orry, th a t you have
this m a tte r w ell in h an d and are tak-

ACCEPTANCE

CORPORATION

T
is engaged primarily in facilitating wholesale distribution
and retail sales of the following products of General
Motors Corporation and its world-wide affiliates:
CADILLAC,

BUICK,

OLDSMOBILE,

PONTIAC,

CHEVROLET

automobiles; f r i g i d a i r e appliances for refrigeration and
air conditioning; DELCO lighting, power and heating
equipment; GMC trucks; BEDFORD, v a u x h a l l and other
foreign made automotive vehicles.
The business consists of investments in self-liquidating
credits, widely diversified as to region and enterprise,
capital employed being in excess of $80,000,000.
R O B T . R IC H A R D SO N

The F ed eral H om e Loan B ank of
Des M oines is one of th e tw elve R e­
serve B anks w hich serve as reserv o irs
of credit for m em ber hom e financing
in stitu tio n s in a m an n er w hich is com ­
parable to th e F ed eral R eserve System
as it relates to com m ercial banks.
T hese reserv e in stitu tio n s are selfsu p p o rtin g and have paid th e ir ow n
w ay from th e v ery beginning. Both
th e g o v ern m en t and m em ber in s titu ­
tions hold stock in th e b an k system on
which dividends have been reg u larly
paid.
The F ederal H om e L oan B ank Sys­
tem , com prising as it does n early 4,000
m em ber hom e financing in stitu tio n s
w ith com bined assets exceeding $5,000,000, has grow n to be th e largest
hom e financing cred it re se rv o ir in the
w orld. Its p o ten tialities for th e sta-

In obtaining short term accommodation, g m a c issues
one standard form of note. This obligation it offers to
banks and institutions, in convenient maturities
and denominations at current discount rates.

GENERAL
MOTORS
INSTALMENT

P L A N
These

notes

e x e c u t iv e o f f ic e

N E W YORK

are available, in limited amounts,
upon request.
BRANCHES
IN PRINCIPAL CITIES

Northwestern Banker

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

A pril 19bl

32
ing care of it. A few such rebuffs
and th e d irecto r w ill soon decide th a t
th e boys a t th e b an k are g ettin g along
v ery w ell w ith o u t him an d w ill qu it
trying. T his sam e th in g applies
w here th e d irecto r gives you valuable
inform ation th a t m ig h t affect y o u r
loaning policy w ith p a rtic u la r cus­
tom ers. A few rep o rts of inform ation
th a t you alread y have w ill soon dis­
courage th e d irecto r and p erh ap s he
w ill fail to re p o rt som ething th a t you
should know and don’t. In v ariab ly
you w ill find th a t th e y are anxious
to functio n if th e y have th e necessary
inform ation and encouragem ent.

JAMIESON
&

C OM PA N Y
Stocks
Bonds
Grain

Q
Q d

Cotton
Butter
Eggs

Pictured above is the display of George Lamonte & Son, which was exhibited at
the regional conference of the American Bankers Association held early last
month in New York City.

Commodity Brokers
•
Members

N ew York Stock Exchange
and Other Principal Exchanges
•
ST. PAUL — MINNEAPOLIS
•

Government — Municipal
Corporation Bonds
•
CHARLES C. RIEGER
Manager

Bond Department
Minneapolis — Atlantic 8235

Keyser Heads Conference
M em bers of th e cen tral states con­
ference of b an k ers associations’ presi­
dents, vice presid en ts and secretaries
of fifteen cen tral states concluded th e ir
th irtie th an n u al m eeting last m onth in
E xcelsior Springs, M issouri.
F ollow ing th e u sual custom of ad ­
vancing officers th ro u g h th e several
chairs, W. F. K eyser, M issouri secre­
tary , succeeds George S tarrin g of
South D akota as presid en t of th e or­

Federal Discount Corporation
Dubuque, Iowa

AUTOMOBILE FINANCE
T im e P aym en t Plans for
Purchasers of A u to m o b iles and H ousehold A pplian ces
m u m

SMALL LOANS
■ ■ ■
Branches in Iowa— M innesota— W isconsin— Illinois
Capital, Surplus and Undivided Profits
Exceed One Million Dollars
■ ■ ■

Short Term Collateral Trust Notes
In form ation on R equest
N orthwestern Banker

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

April 1941

ganization. O ther officers’ nam es are
H a rry C. H ausm an, Illinois, first vice
president; R obert E. W ait, A rkansas,
second vice president, and th e new
m em ber of th e official fam ily is W il­
liam B. H ughes, N ebraska, w ho be­
comes secretary -treasu rer.
Am ong resolutions adopted a t th e
conference w ere th e following:
“T h at it is th e sense of th is body
com posed of executive officers of fo u r­
teen state b an k ers associations of th e
g reat M ississippi valley, w hose m em ­
b ership includes far m ore th a n onehalf of th e com m ercial banks of th e
co u n try th a t w e h erew ith pledge our
w h o lehearted su p p o rt to th e federal
g o v ernm ent in helping as b est we can
th ro u g h our respective state b an k ers
associations to c arry out any financing
program of th is n ational em ergency in
w hich th e federal g overnm ent m ay ask
our assistance or th a t of our state
b an k ers associations.
“T h at any w holesale increasing of
th e nu m b er of P ostal Savings B anks
by th e g overnm ent for th e purpose of
aiding th e sale and d istrib u tio n of gov­
ern m en t securities to help finance th e
national defense p rogram shall be
p rom ptly elim inated at th e close of
th is em ergency and n ot left as p erm a­
n en t com petitors of com m ercial banks.
“T h a t w ith respect to b a n k ’s p a rt in
helping to finance our re-arm am ent
program th a t w e explore th e possibili­
ties of a cooperative defense loan plan
for banks as h erew ith presen ted to th is
m eeting and urge th e nationw ide com ­
m ittee of th e A. B. A. to search th e

33
feasibilities of such a cooperative p a r­
ticip atin g financing p l a n l o o k i n g
to w ard em ploying such a plan if found
p ractical to enable banks, ru ra l an d
u rb an , to jo in in creatin g pools to
finance defense loans.
“T h a t w e u rg e th e ap p o in tm en t of a
legislative com m ittee to give p a rtic u la r
atte n tio n to an y congressional bills
seem ingly in ten d ed to u n d erm in e or
ultim ately u p ro o t our A m erican sy s­
tem of banking, th e dual system , so
dom in an t in th ese states com prising
th is conference; such com m ittee to co­
operate in ev ery w ay it can w ith th e
A. B. A. an d w ith th e N ational O rgani­
zation of B ank C om m issioners.
“T h a t som e w ay m u st be found by
in su ran ce com panies to fu rth e r reduce
th e cost of in su ran ce to banks; th a t
th is should include m ak in g BBB’S
available in sm aller am o u n ts an d w ith
still b ro ad er coverage to th e so-called
average ru ra l b an k s w h ere such b anks
p refe r th a t form of in su ran ce cover­
age.”

w as th e n secretary of th e Des Moines
T ru s t Company, w as elected m anager
to succeed R. B. U m berger, w ho moved
to Chicago.
Mr. B ry an t has been continuously
associated w ith th e com pany since th a t
tim e and has m ade a v ery enviable
record for him self and his associates.
The o ther m em bers of th e B oard of
D irectors in addition to Mr. B ry an t are
E. D. P erry, C. P. Cook, Jo h n R. Ford,
Geo. C. C arpenter, H. E. W ilkins, J. W.
Howell, H arold K. W eitz and Allen
Lynch.
T he N o r t h w e s t e r n B a n k e r co n gratu­
lates th e Des Moines M orris P lan Com­
p any on its fine record du rin g its first
25 y ears and w ishes it m uch success
as it en ters its second q u a rte r of a
century.

V. W . B

J. Olney B ro tt has been nam ed as­
sista n t general counsel of th e A m eri­
can B ankers A ssociation, it is a n ­
nounced by Dr. H arold Stonier, execu­
tive m anager of th e association.
Mr. B ro tt has been a m em ber of the
A. B. A. staff since early 1934, com ing
from th e H artford-C onnecticut T ru st
Com pany in H artford, Connecticut.
Since 1937 he has been a m em ber of
th e general counsel’s staff a t W ashing­
ton.
Mr. B ro tt is a grad u ate of Yale U ni­
v ersity and th e Yale law school. He
is m arried and has four children, tw o
sons and tw o daughters. He lives at
Chevy Chase, M aryland.

r e w e r

C

o

.

M u n ic ip a l B o n d s

Morris Plan Celebrates
25th Anniversary
T he Des M oines M orris P lan Com­
pany has ju s t com pleted 25 years
since it w as first established in 1916.
D uring th e p ast 25 y ears th e Des

J. O . Brott Named

The North Dakota Legislature, after the fullest
consideration, decided on ''pay-as-you-go"
for the Real Estate Bonds.

F I R S T N A T - S O O L I NE B L DG .

M IN N E A P O LIS

BONDS
Public Utility
In d u stria l

CHARLES H. BRYANT

M oines M orris P lan has m ade 114,955
loans, to talin g $20,371,770.
As of J a n u a ry 1, 1941, th e com pany
had to tal assets of $1,361,284.
R etail stores and professional offices
have been helped trem en d o u sly by th e
M orris Plan, and a recen t tab u latio n
show ed th a t 170 D octors received
$337,981, or an average of $1,988 each,
the m axim um am o u n t for one doctor
hav in g been $17,834; w hile six ty gro­
cers received $151,073, or an average
of $2,511, th e m axim um for one grocer
being $22,727.
On Ju n e 20, 1917, C. H. B ryant, w ho

R a ilro a d
M u nicipal

A .C .A L L Y N andc

o m pa n y

Incorporated
100 W est Monroe Street, Chicago
N ew York
R ep resen tatives:

M ilw aukee
W aterloo

Omaha
Des Moines

Boston
Cedar Rapids

Northwestern Banker

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

A pril 19H

34

WE ARE
PR EPA R ED
To co-operate with you in
the regular channels of
business
and to
assist you in extraordinary
defense demands.

STOCK YARDS NATIONAL
BANK OF SOUTH OMAHA
OMAHA, NEBRASKA

M em ber of Federal D ep o sit Insurance Corporation

Northwestern Banker

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

April 19kl

35
Miss A udrey Miller, w ho has been
h ired to fill th e position is w ell quali­
fied for th e job.

NEBRASKA

Member FD IC

NEWS
CARL D . GANZ
President
Alvo

WM. B. H U G H E S
Secretary
Omaha

Officers Re-elected

Heads Investment Bankers

P au l U tem ark, Sr., of W akefield w as
re-elected p re sid e n t of th e board of di­
recto rs of th e F irs t N ational B ank of
E m erso n a t th e ir m eeting last m onth.
Aug. K ru se and W m. R oeber w ere re ­
elected vice presidents. F. A. M ieras
w as re-nam ed cashier; G erald Loyd,
a ssista n t cashier, and E d n a Mae J e n ­
sen, bookkeeper.

The N ebraska In v estm en t B ankers
A ssociation elected P lum m er P. Purdham , Omaha, president, B en n ett S.
M artin, Lincoln, w as chosen to th e
executive com m ittee.

Haddam Banker Promoted
E ldon Saw hill, w ho h as been em ­
ployed a t th e Citizens S tate B ank at
H addam for th e p ast tw o years, has
been p rom oted to a position a t th e
F irs t N ational B ank of W ashington.
He replaces H e n ry M uth, w ho has ac­
cepted a position w ith K ansas sta te ta x
com m ission a t Topeka.

Important Meeting
T he F irs t N ebraska R egional C lear­
ing H ouse A ssociation held one of its
reg u la r m eetings last m o n th a t th e
P ath fin d er H otel in F rem o n t, follow­
ing a 6:30 d in n e r th ere. H erm an J.
W ragge, p resid en t of th e association,
and cashier of th e F irs t N ational B ank
in T ekam ah, presided over th e m eet­
ing.
T his association of b an k ers is com ­
posed of a group of eig h t counties,
Douglas, B utler, B urt, Colfax, Dodge,
Saunders, Sarpy and W ashington.
Clyde N eum an, p resid en t of th e
F a rm e rs and M erchants B an k at Oak­
land, m em ber of th e A m erican B an k ­
ers A g ricu ltu ral Com m ission, dis­
cussed th e ir A g ricu ltu ral program .
W. B. H ughes of Omaha, se cretary
of th e N ebraska S tate B an k ers Asso­
ciation gave a sh o rt ta lk on “L egisla­
tio n and B anking.” W ill M. M itten,
p resid en t of th e Stevens N ational
Bank, F rem o n t, spoke on “T he N a­
tional D efense P ro g ram .” O. P. Cor­
dell, of th e F ed eral R eserve B ank,
Omaha, addressed th e group on th e
activ ities of th e F ed eral R eserve B ank
in th is n atio n al crisis. J. M. Sorenson,
Omaha, m em ber of th e A m erican
B an k ers A ssociation’s m an agem ent
com m ission, discussed sta n d a rd b an k
form s and ro u tin e w ork.

John P. Burke Succumbs
Jo h n P. B urke, w ho w as at one tim e
p resid en t of th e F irs t N ational B ank
of P ender, died last m onth a t Los
Angeles.
Mr. B urke succeeded W illiam H ow ­
a rd T aft as director of th e N ational
B udget com m itee in 1922 and held of­
fice for a year.

Cashier of New Bank
W alter Good, form erly connected
w ith th e F irs t N ational B ank of Blue
Hill, is cashier of T he B ank of Chadron, a new b an k w hich opened for
business F e b ru a ry 1.

New Clerk Added
A business firm in C learw ater th a t
n o t only does a large volum e of b u si­
ness, b u t has enjoyed a steady in ­
crease, is th e C itizens S tate Bank.
T h eir business has grow n to th e ex­
te n t th a t an o th e r clerk had to be
added to th e force to help care for th e ir
custom ers.

L ast m onth th e B ank of Chadron
received a piece of good new s from
the F ed eral D eposit corporation at
W ashington, D. C., in a telegram w hich
read as follows: “B ank of Chadron,
C hadron, N ebraska: Y our b an k ap­
proved for m em bership F. D. I. C. ef­
fective this date—m em bership certifi­
cate forw arded. (Signed) A. J. Loda,
special assistant, board of directors,
F ed eral D eposit corporation.”

New Building
T he W auneta Falls State B ank at
W auneta recen tly m oved into new
q u arters, occupying an en tirely new
brick building and utilizing new fix­
tu re s and equipm ent. P ersonnel of
th e b an k includes: Jo h n W. Green,
president; Roy E. Conklin, form erly of
McCook, vice president; A. W. Hoff,
director; V irgil R obertson, assistan t
cashier; W iley Green, a ssistan t cash­
ier; M axine C arpenter, stenographer.

Death Takes Sherwood
W alter A llen Sherwood, a b an k er 56
y ears and form er city councilm an at
Red Cloud, died th e re recently.
Sherwood, w ho had lived in Red
Cloud 62 years, helped organize th e
Peoples B ank in 1893. He h ad been
presid en t of th e Peoples W ebster
county b an k since 1934.

"Dictator" Retires
E v en as M itchell resid en ts w ere
reading in a recen t issue of Life m aga­
zine of Lee Pelton, form er resident,
w ho set him self up as a m ythical dic­
ta to r of the m ythical p lan et of Atzor,
w ord cam e th a t th e 19 y e a r old boy
had quit school at th e U n iv ersity of

Nebraska Group Meetings
Tuesday, April 15. . . .
Wednesday, April 16.
Thursday, April 17. . .
Friday, April 18.............
Tuesday, April 2 2 . . . .
Tuesday, April 22 . .

.
.
.
.

.
.
.
.
.
.

. Group
. Group
. Group
. Grouo
. Group
. Group

One . . . ............. Beatrice
Four. . . . ............. McCook
S ix........... . . . . Scottsbluff
Five . . . . . . . North Platte
Two . . . . ............. Fremont
Three . . . ................Norfolk

The usual special train will make the rounds of Groups meeting at Beatrice,
McCook, Scottsbluff, and North Platte. The well known Tom Collins will be
on the Group Meeting train and will be the after-dinner speaker at the first
four towns noted above.
Northwestern Banker


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

A pril 19bl

36

• NEBRASKA
N ebraska to tak e a job in th e L ive­
stock N ational b an k in Omaha.
P elton is th e son of Mrs. F re d Pelton, housem o th er a t F arm h o u se on
th e Lincoln cam pus. H is fa th e r w as
th e late F re d Pelton, cashier at F irs t
N ational B ank in M itchell for several
years a fte r th e w ar. F ro m h ere he
w en t to an A lliance b an k and th e n to
F o rt W orth, Texas, w h ere lie w as
killed by a b an k robber.

Sixteen re p re se n ta tiv es of th e v a ri­
ous b anks in Saline county atten d ed
A B O U T

T H E

’ - P A Y C "

*

th e round table discussion held at the
Saline County A g ricu ltu ral C onserva­
tion office at C rete last m onth for the
purpose of studying th e M arketing
Quota provisions of th e A g ricultural
A d ju stm ent Act of 1938.
R ay J. Low ery, F a rm e r F ieldm an
for th is district, w ho is a Nuckolls
county farm er from D avenport, led th e
discussion group.

Hedelund Improves

Round Table Discussion

C H A T S

NEWS

P L A N

George H edelund, B lair banker, is
rep o rted recovering steadily a t C lark­
son hospital in Omaha, w here he u n ­
d erw ent a difficult operation recently
for rem oval of a b rain tum or.

P A Y C Is Popular
F o u r m ore N ebraska banks are in ­
stalling th e “PAYC” (Pay-as-youcheck) no m inim um balance checking
system according to rep o rts fu rn ish ed
us recen tly by th e U nited States Check
Book Company, Omaha, originators of
th e plan. These banks are as follows:
th e O verland N ational B ank of G rand
Island; th e H avelock N ational B ank of
Lincoln; th e T h ay er C ounty B ank of
H ebron; and th e B ank of Peru.
The Check Book firm rep o rts fu rth e r
th a t over seventy-five m idw estern

banks are now m aking th e “PAYC”
system available to th e ir custom ers.
In th e “PAYC” plan a m inim um bal­
ance is n ot req u ired of custom ers.
T hey are charged $1.00' for a book of
tw e n ty checks—five cents per check.
Several arran g em en ts are available for
keeping a cu sto m er’s record of de­
posits.
One distinctive advantage of th e
“PAYC” system is th a t it req u ires no
increased personnel, n o r are additional
ledger sheets, deposit slips, etc., neces­
sary. T he la tte r item s can be handled
in th e reg u lar m anner.
T he U nited States Check Book Com­
p an y w ill send com plete inform ation
including a su m m ary of th e experience
of p resen t users, to anyone w ho is in ­
terested in p u rch asin g th e plan.

Capital Increased
A t a recen t m eting of th e board of
directors of N ebraska S tate B ank of
V alentine, N ebraska, a $25,000 stock
dividend w as declared. T his raises th e
b an k ’s capital stru c tu re to $50,000; u n ­
divided profits and su rp lu s are $20,000.
T his bank, w hich is 26 y ears old, has
deposits of $573,000. The following are
officers. E. C. D avenport, president;
M. M. D avenport, vice president; and
F. L. Colburn, cashier.

THE BEST
ADDRESS
“—AND the reason the “PAYC”
(Pay-as-You-Check) plan gets new
business is because, like other suc­
cessful bank services, it provides
the answer to a definite public
want.
The no-m inim um -balance feature
of the “PAYC” plan is the basis
for its ready acceptance. It reaches
a new market—professional people,
school teachers, salesmen, farmers
—the very persons who formerly
just cashed checks.
This market exists in your com­
munity. You can reach it just as
the many other midwestern bank­
ers who have installed “PAYC” are
reaching it in their communities.
W rite today! Let us show you all
the fa cts—no obligation, of course.
Very truly yours,
E. C. "ED" PECK

N O T E : I f you are not on Mr.
P eck’s territory, w rite anyw ay. W e
w ill relay your letter to the proper
“U. S.” representative.

V K X TCD

STA TES

CHECK BOOK COMPANY
;
Northwestern Ranker

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

A pril 19)1

Y
Y

v/
n/
V/
V/
N/
N/
V/
V/
N/
V/
\/

Experienced travelers know the value
o f stopping at a hotel o f distinction.
The Fontenelle is a name you can refer
to with pride - pride that comes from
knowing the accommodations will be
excellent, atmosphere dignified and
refreshing, the address self sufficient.
Beautifully modernized throughout.

AIR C O N D I T I O N E D
YEAR

ROUND

FOR

COMFORT

O M A H A 'S W E L C O M E
TH E
W O R L D !

Y

v
v/
V/
V/
V/
'/
\/
V/
V/
V/
V/

Y

37
D evelopm ent society a t the recen t an ­
nual m eeting in Omaha. Joel O’D.
Cornish, atto rn ey , w as nam ed p resi­
dent of the society, w hich w as form ed
six y ears ago to carry out th e de­
velopm ent of th e C arter Lake p ark
project.
W. D ale Clark, presid en t of the
O m aha N ational Bank, is one of the
tru stees of th e society w ho w ere re ­
nam ed at th e m eeting.

Omaha Clear
ROBLEMS facing th e F ed eral L and
A fter th at, th ey joined relatives at
B ank of O m aha w ere discussed by
B altim ore and w ent to P alm Beach,
C harles M cCum sey of Omaha, its p resi­w here th ey w ere guests of Mr. and
dent, before six h u n d re d farm loan as­ Mrs. M ichael Sm ythe of Cleveland,
sociation re p re se n ta tiv es a t a recen t
Ohio, w ho have a w in te r hom e there.
m eeting in McCook, Neb., in one of a T hey also stopped at Orlando, Florida,
series of addresses he has been m ak ­ to v isit Mr. M allory’s b ro th e r and sis­
ing before sim ilar m eetings in th is
ter-in-law, Dr. and Mrs. M eredith Mal­
four-state d istric t com prising N e­ lory, and to v isit his m other, Mrs. A.
braska, Iow a, W yom ing, South D akota.
D. M allory of Omaha, w in terin g there.
One problem has to do w ith in te re st
rate. A t p resent, farm ers w ho have
W. B. M illard, jr., vice p resid en t of
land b an k loans are paying 3% p er
cent. A ccording to th e original setup, th e Omaha N ational Bank, w as re ­
th e in te re st ra te w as h ig h er b u t con­ elected tre a su re r of th e C arter Lake
gress reduced it d u rin g th e depression
years, first to 4% p er cent an d th e n
to th e p re se n t level, and assum ed th e
difference as a “m oral obligation.”
Mr. M cCum sey also discussed pos­
sible effects of m aking land b ank
bonds fully g u a ra n te e d by th e gov ern ­
m ent.

P

O m aha’s new $500,000 issue of 1.25
per cent a irp o rt extension bonds w as
delivered in N ew Y ork recen tly to th e
bond p u rch asers, W eeden & Co., by
City F in an ce C om m issioner H arry

C O R N

A lv in E. Johnson, presid en t of the
Live Stock N ational B ank of South
Omaha, has been appointed by Gov­
ern o r D w ight G risw old of N ebraska
as ch airm an of a regional com m ittee
to m ake a housing su rv ey in connec­
tion w ith th e expected influx of w o rk ­
ers a t th e bom ber p lan t now u n d er
co nstruction a t F o rt Crook, near
Omaha.
It is Mr. Jo h n so n ’s d uty to in v esti­
gate, in th e area, housing facilities
available to w orkers, and to set up a
cen tral agency for listings. T he ap ­
p o in tm en t followed a m eeting in
Omaha atten d ed by I. S. M acFarlane,
of W ashington, D. C., rep resen tin g the
hom es re g istratio n service.
F red T hom as, vice p resid en t of the
F irs t N ational B ank of Omaha, is one
of th e new tru ste e s of B row nell Hall,
long-established school for girls at

LO A N S

K nudsen.

The bond firm ’s certified check for
the face am ount, plus $110 prem ium
and accrued in terest, com pleted the
transaction. T he 10-year bonds are
dated M arch 1.
R ichard H. M allory, vice p resid en t
of th e U nited States N ational B ank of
Omaha, has re tu rn e d w ith Mrs. M al­
lory from F lo rid a a fte r a m o n th ’s trip
w hich also included a v isit w ith th e ir
daug h ter, Miss C ynthia M allory, w ho
is a sophom ore a t Sm ith College,
N o rth h am p to n , M assachusetts.
YO UR STATE BANKERS A SSO CIA TIO N
O FFIC IA L SA FE, V A U L T AN D
TIM ELOCK EXPERTS

F. E. DAVENPORT & CO.

W e w ill p u r c h a s e y o u r
excess

p a p e r — g iv in g

im m e d ia te c re d it.
Write us

L ive Stock N ation al Bank
Omaha
(Member Federal Deposit Insurance Corporation)

OMAHA

Northwestern Banker

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

April 194-1

38

•
Omaha. T he tru ste e s a tten d ed a din­
n e r and m eeting recen tly a t th e school.
O ther n ew tru ste e s are Ja sp e r H all
and Mrs. W alter B u rritt, w ho recen tly
re tu rn e d to O m aha from Des Moines.
L loyd H . Earhart, m anaging direc­
to r of th e O m aha b ranch, F ed eral R e­
serve B ank of K ansas City, w e n t to
K ansas City recen tly to help out w hile
th e p a re n t b an k w as sh o rt of officers.
P re sid e n t George H. H am ilto n and
F irs t Vice P re sid e n t C. A. W o rth in g ­
to n of th e K ansas City reserv e b an k
re tire d M arch 1. Second Vice P re si­
den t H. G. Leedy, th e b a n k ’s g eneral

NEBRASKA

NEWS

•

counsel, w as m oved up to first vice
president.
T he p a re n t b a n k ’s board, of w hich
W. D. H osford of Om aha is a m em ber,
w as expected to m eet soon to nam e a
new p resid en t of th e K ansas City
bank. I t is a $25,000 a y e a r job.

R. H. K roger, vice presid en t of the
Live Stock N ational B ank of South
Omaha, has been appointed chairm an
of th e N ebraska B ankers A ssociation’s
legislative com m ittee. J. G. Hohl,
W ahoo, and E d w ard H uw aldt, G rand
Island, are o th er m em bers.

W. D ale Clark, p resid en t of th e
Om aha N ational Bank, re tu rn e d re ­
cently by plane from a q u a rte rly m eet­
ing a t W ashington of th e advisory
council to th e board of governors of
th e federal reserv e system . H e w as
appointed a m em ber of th e council
recently.

A t a recen t election a t V assar col­
lege, Miss M ary Jan e K opperud,
d au g h ter of Mr. and Mrs. A ndrew K op­
perud, of Omaha, w as chosen secretary
of th e ju n io r class.

o f L in c o ln

V ictor B. Caldwell, vice presid en t of
th e U nited States N ational B ank of
Omaha, recen tly w as elected secretarytreasu rer, and J. E. Davidson, p resi­
den t of th e N ebraska P ow er Company,
ch airm an of th e Om aha civic defense
com m ittee, nam ed by M ayor B utler.
A lv in E. Johnson, p resid en t of the
Live Stock N ational Bank, is tre a su re r
of th e N ebraska G reek W ar Relief As­
sociation, w hich is cam paigning to
raise $25,000 for relief in Greece.

(Organized 1871)

This month the bankers of N ebraska
w ill h a v e their group m eetings.
Alm ost every d a y the officers of the First
N ational Bank of Lincoln h a v e their ow n
"group m eeting" to d iscu ss questions
of interest to their correspondent banks.
If you are not n ow carrying an account
with the First N ational, w e sh all be
h ap p y to h a v e you do so, and can
assu re you of our sincere cooperation,
in working out a n y p lan s w h ich m ay
b e helpful to you and your bank.
W e sh a ll b e glad to se e you at the
N eb rask a Group M eetings, a s w e ll a s
se ein g you in our bank a n y time you
are in Lincoln.

OVER SIXTY-NINE YEARS

OF BANKING

EXPERIENCE

GEORGE W. HOLMES............ President
DONALD P. EASTERDAY......A sst. Vice-Pres.
P. R. EASTERDAY..Executive Vice-President
ERNEST U. GUENZEL.................................... A sst. Vice-Pres.
L. C. CHAPIN................................Vice-President
CLIFFORD G. WESTON......A ssistant Cashier
STANLEY MALY ....................... Vice-President
A. C. GLANDT........................................ A ssistant C ashier
B. O. CAMPBELL............Junior Vice-President
R. J. BECKER............................................ A ssistant Cashier
HOWARD FREEMAN..............................C ashier
Member Federal Deposit Insurance Corporation

Northwestern Banker

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

April 19M

O. P. Cordill of th e Om aha branch,
F ed eral R eserve Bank, recently de­
scribed m achinery w hich th e reserv e
system is settin g up to help m anufac­
tu re rs obtain defense subcontracts, in
a talk before th e w eekly natio n al de­
fense clinic a t th e Om aha C ham ber of
Commerce.

W hen m em bers of th e d istrict court
ju ry panel w ere excused for th e re ­
m ainder of th e ir service period at
Om aha recently, am ong them w ere
V ictor B. Caldwell, vice presid en t of
th e U nited States N ational Bank, and
E. F. P ettis, secretary -treasu rer of the
B randeis d ep artm en t store. T hey re ­
ported for ju ry d u ty nearly every day,
b u t w ere nev er called to serve on a
case.
Mrs. P hilip P o tter, m o th er of A. C.
Om aha inv estm en t banker,
died recen tly in Omaha. B orn a t LaPorte, Ind., she came to F o rt Calhoun,
Neb., w ith h e r p aren ts a t th e age of
six m onths. She w as one of th e oldest
g rad u ates of B row nell Hall, Omaha
g irls’ school.
F o r m any years, she had been active
in th e E piscopal church, having been
a m em ber of T rin ity C athedral in
Om aha n early 50 years.
She had
served as p resid en t tw o y ears of th e
Om aha W om an’s Club, and w as D. A.
R. reg en t at Om aha in 1918. She w as
also a m em ber of th e Colonial Dames.
Mrs. H ugh W eed of St. Louis is a
daughter.
Potter,

39
banks, an d $17,256,980 investm ents.
U nited States g overnm ent securities
led all o th er in v estm ents w ith $12,573,007, w hile $3,276,491 w ere in obliga­
tions of state and o th er political sub­
divisions. O ther bonds, notes and de­
b en tu res cam e to $1,220,112.

Attend Columbus Meeting
Mr. and Mrs. R. O. B row nell, Mr.
and Mrs. J. A. Prokes, Mr. and Mrs.
Irv in g M cKinley and Mr. and Mrs. E.
E. R einm iller, of Schuyler, recently
attended a q u a rte rly m eeting of th e
Colum bus Regional Clearing H ouse
association at Columbus.

Top Five-Year Record
D uring F e b ru a ry H astin g s’ tw o
N ebraska state banks w ere in a banks experienced a drop in b ank
INCOLN b an k clearings for F e b ru ­
clearings from th e J a n u a ry total, b u t
stro n g er financial condition a t th e
ary to taled $10,214,394 as com pared
figures for F e b ru a ry m aintained an
w ith $10,958,183, for F e b ru a ry , 1940. close of 1940’s business th a n th ey w ere
a t m id-year, B anking D irector AVade average h ig h er th a n any o th er m ark
T he J a n u a ry clearings for th e y e a r
set d u rin g th e corresponding m onth
R. M artin reports.
am ounted to $11,959,125.
of any y ear since 1936.
H e re fe rred specifically to increased
T he to tal b an k clearings for th e
S ecretary of S tate F ran k M arsh re ­ loans of $1,925,055 and deposits of
H astings N ational and City N ational
$8,559,424 in th e six-m onth period and
cen tly asked five Om aha sm all loan
added th a t “banks are re tirin g p re ­ B anks for F e b ru a ry w as $547,909.43 as
com panies to show cause to m o rro w
ferred stock an d d eb entures ta k e n on com pared to $630,491.12 du rin g th e
w h y th e ir licenses should be renew ed.
m onth of Jan u ary .
M arsh ord ered h earin g s a fte r W . A. d u rin g th e depression to augm ent th e ir
In F e b ru a ry of last year b an k clear­
E h lers, O m aha atto rn ey , filed a com ­ capital stru c tu re .”
ings
reached $515,743.71 and in 1939
G
enerally
speaking,
th
e
state
banks
plaint. Com panies involved w ere th e
to $514,860.43.
A m erican L oan Plan, M erchants In ­ are in a v ery good condition,” M artin
declared. H is su m m ary w as based on
v estm en t Com pany, Om aha W im sett
rep o rts m ade by 284 banks Dec. 31, Group Meeting
System Com pany, D ouglas F in an ce
T ekam ah w as w ell rep resen ted at a
1940, and com parisons w ere m ade w ith
Com pany and P ro v id en t L oan Society.
T heodore R ichling, Duff O’Shaugh- th e 286 o perating a t th e close of busi­ Group m eeting of b an k ers held at th e
Om aha Club in Om aha recently. The
ness Ju n e 29, 1940.
nessy, W illiam Com stock an d P au l
organization is com posed of ban k ers
T otal assets of th e in stitu tio n s a t
H offm an w ere nam ed by M arsh as “ad ­
ditional dep u ty inspectors to in v esti­ th e close of th e y ear w ere $89,525,065, from four counties, nam ely, B urt,
gate sm all loan com panies in O m aha.” of w hich $39,448,330 w ere loans and dis­ W ashington, Douglas and Sarpy. The
T ekam ah m en in attendance w ere D.
counts, $28,230,721 deposits due from
R em aining assets of th e L aw rence
S tate B ank, am o u n tin g to $4,275, w ere
sold a t public auction to R o b ert H.
Downing, S uperior atto rn ey , it w as a n ­
nounced by W ade R. M artin, state
ban k in g su p erin ten d en t.
D epositors had p reviously been paid
in full.
T he b an k w en t into receiv ersh ip in
th e fall of 1939.
At the Continental National Bank you will find

L

"friendly"

D irector AVade R. M artin of th e state
b an k in g d e p a rtm e n t h as an nounced
liquidation of th e B ank of S tap leh u rst
had been com pleted w ith 53.5 p er cent
in dividends repaid to depositors. The
b an k w as declared insolvent May 17,
1934.

an alert, friendly atmosphere.

It makes pos­

sible the efficient service we offer you in Lincoln.

C ontinental R ational
SELL Y O U R

BANK

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

Ba/ k
LINCOLN

Member Federal Deposit Insurance Corporation

Northwestern Banker

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

A pril 19'il

40
W. G reenleaf, H. J. W ragge, R. K. H an ­
cock, Orville C hatt, Lee L oerch and
Lloyd Palm er.

Avoca Banker Improves
E lm er H allstrom , cashier of th e
F a rm e rs and M erchants B ank of
Avoca, w ho has been at a Lincoln hos­
pital for a v ery delicate ear operation,
has so far recovered th a t he re tu rn e d
hom e recently.

New Committee Member
E d H uw aldt, executive vice p re si­
den t of th e Com m ercial N ational Bank,
G rand Island, has been appointed a

m em ber of th e N ebraska B ankers as­
sociation legislative com m ittee.

Annual Meeting
The an n u al m eeting of th e stock­
holders of th e H arv ard S tate B ank
w as held recently. T he m eeting w as
well attended. The following direc­
to rs w ere elected for th e ensuing year:
F ra n k E. T u rn er, W. G. Schw enk, L.
A. R obertson, E d A. R osenbaum , A. R.
W eaver.
The officers elected w ere F ra n k E.
T u rn er, president; E. A. R osenbaum ,
vice president; Chas. S. Stone, cashier;
Delma M. K reutz, a ssistan t cashier.

Shooll in Nebraska
P aul W. Shooll, who for several
y ears has rep resen ted th e N o r t h w e s t ­
e r n B a n k e r in N ebraska, handling cir­
culation and obtaining new s item s
about banks and bankers, is again in
the state m aking his sp rin g trip to
greet his m any friends there. W hen
Mr. Shooll calls at your bank, give him
any item s of in te re st you m ay have
and he w ill send them in for publica-

for Prompt Returns
During the next few months, thousands of hogs,
cattle and sheep will come to the Sioux City market

PAUL W. SHOOLL

from your territory. Send them direct to this bank—

tion in th e N o r t h w e s t e r n B a n k e r . P e r­
haps you have a snapshot or kodak
p rin t or tw o show ing some of th e ac­
tivities of yourself or fam ily, and Mr.
Shooll w ould like to have these, also.
A ny cooperation you can give him w ill
be appreciated.

the only bank in the Yards—and insure prompt
returns on such items.
For your grain and hay items, too, use Live Stock
National Bank service in Sioux City.

Dividend Declared

OFFICERS
C. L. Fredricksen, President
M. A. W ilson, Vice President
W. G. Nelson, Assistant Vice President
W. C. Schenk, Cashier
C. L. Adams, Assistant Cashier
J. S. Haver, Assistant Cashier

DIRECTORS
C. R. McKenna, Pres., Johnson Biscuit Co.
B. L. Sifford, Attorney, Sifford & Wadden
G. F. Silknitter, President, Sioux City
Stock Yards Company
C. L. Fredricksen, President
M. A. W ilson, Vice President
H. C. Boswell, Secretary-Treasurer,
Western Contracting Corporation

“The Bank at the Yards”
Member Federal Deposit Insurance Corporation

LIV ESTO CK
NATIONAL
B A N

K

T he S tate B anking Com m ission has
announced th a t an o th er dividend of
fifteen p er cent w as paid th e depositors
in th e late Citizens B ank of B ennet.
T he dividend, am ounting to over $27,000 w as paid last m onth, according to
A. M. S trunk, receiver in charge. The
depositors received fifty per cent or
nearly $90,000, ju st before C hristm as.

Ord Bank Streamlined
R ecently A ndrew N ielsen has been
busy at th e F irs t N ational B ank of Ord,
stream lin in g th e in terio r. He took
dow n th e grill w o rk above th e desks
and rem oved th e cages.
T he re su lt is a stric tly m odern effect
th a t is m uch m ore pleasing to th e eye,
as w ell as m ore convenient for th e
office force and for th e custom ers.

O r the County Jail
“I can ’t find an y of these R ussians
in W h o ’s W ho.’ ”
“W hy not try W itch’s V itch’?”

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April 19'ti

41

SOUTH
DAKOTA
F. F. P H IL L IP PI
President
Milbank

NEWS

Attends Minneapolis
Meeting
H. E. McKee, m anager of th e G reg­
ory b ran ch of th e N o rth w est S ecurity
N ational B ank of Sioux Falls, atten d ed
th e a n n u al g a th e rin g and d in n e r of th e
ban k ers of th e N in th F ed eral R eserve
B ank d istric t at M inneapolis last
m onth, at w hich 996 w ere registered.
T his g ath erin g w as sponsored by th e
F ed eral R eserve B ank of th is d istrict
and w as for th e purpose of discussing
g en eral financial conditions.

Speaks at Men's Forum
C. A. C hristopherson, p resid en t of
th e U nion Savings B ank w as p ro ­
po n en t of th e question “Should th e
U nited S tates Go on a ‘P ay As You
Go’ F in an cial B asis” for a d in n e r m eet­
ing of th e Y. M. C. A. m en ’s forum last
m onth.

New Employe
Miss E th e l Algra, form erly w ith th e
ru ra l credit office in Brookings, has
joined th e staff of th e N o rth w est Se­
c u rity N ational B ank of B rookings, it
w as announced recen tly by R. M. DePuy. Miss A lgra w ill serve as a
sten o g rap h er in th e b an k organization.

Petition Rejected
A p etitio n recen tly served on the
city of B eresford by th e F ed eral L and
B ank of Om aha w as rejected by th e
council recently. U nder th is petitio n
th e L and B ank sought to w ith d raw
certa in land from w ith in th e corpora­
tion.

Land Bank Head
E lim in atio n of stock pu rch ase and
su b stitu tio n of m em bership fee in fed­
eral land b an k loans m ay be expected
if efforts at p re sen t before th e adm in­
istra tio n are successful. So said W. F.
M ailand of Omaha, d istric t su p erv iso r
of th e n atio n al loan association, sp eak ­
ing last m o n th before th e an n u al m eet­
ing of th e F ed eral L and B ank Asso­
ciation at W atertow n. U nder such
new a rra n g e m en t all loans w ould be

GEORGE M. STARRING
Secretary-Treasurer
Huron

relieved of liabilities now existing
A round 200 atten d ed th e local m eet­
ing. H. M. Rogers w as re-elected to
head th e association in th is d istrict for
an o th er year.

A ccepts New Position
Bob F erdinand, son of Mr. and Mrs.
A rth u r M. F erdinand, of Y ankton,
has accepted a position w ith the
A m erican S tate Bank. Bob graduated
from Y ankton high school last Ju n e
and since th en has attended business
college in Sioux Falls w here he has
ju s t com pleted his business tra in in g
course.

New Program Announced
F irs t Citizens N ational B ank of
W atertow n, in cooperation w ith local
eq u ip m ent dealers, announces its 1941
financing plan to all hom e ow ners de­
sirous of in stallin g new plum bing, oil
b u rn ers, stokers and furnaces.
“P rep are for W in ter in th e S um m er”
is th e slogan of th is program .

Land Bank Aid
A recen t change in th e personnel
h an d ling th e real estate sales for th e
F ed eral L and B ank of Omaha in the
F la n d reau d istrict is announced.
F ra n k B. Loehr, now living at M adi­
son, has been nam ed d istrict salesm an
for Lake, Moody and M iner counties.
H e succeeds A1 J a rm u th of Brookings,
w ho has been looking after sales in
th is te rrito ry .
Mr. L oehr w as form erly a su p er­
v isor in th e em ergency crop and feed
office of th e F ederal C redit ad m in istra­
tion.

Agricultural Committee
Meets
M em bers of the South D akota B ank­
e rs’ A ssociation ag ricu ltu ral com m it­
tee, m eeting w ith key-bankers, county
agents, extension officials and o ther
farm leaders, recen tly closed th e ir an ­
n u al sp rin g m eeting at B rookings by
p u ttin g th e ir stam p of approval on an
im p o rtan t 12-point p rogram for the

year designed to be of service to th e
in dustry.
The m eeting of th e ag ricu ltu ral
group, headed by R. M. D ePuy, vice
presid en t and m anager of th e Security
N ational B ank of Brookings, w ho p re ­
sided at th e various sessions, w as
sponsored by State college. The m eet­
ing w as called to order by C hairm an
D ePuy after w hich greetings from th e
association w ere given by F. F. Phillippi, M ilbank, p resid en t of th e South
D akota B ankers Association.
“H om e Made F a rm Relief,” sub­
ject discussed by Dan Otis, Madison,
Wis., director of th e ag ricu ltu ral com­
m ission of th e A m erican B ankers as­
sociation, bro u g h t out th e activity of
th a t group so far as South D akota is
concerned. E. H. Sexauer, Brookings,
ch airm an of th e ag ricu ltu ral com m it­
tee, U. S. Cham ber of Commerce, spoke
on “Our C om m ittee’s P ro g ram .”
R obert Dailey, F landreau, director,
F ed eral L and Bank, Omaha, spoke on
“Lam b and Beef C attle F eeding.”
P resid en t L ym an E. Jackson, of
S tate College, w as th e luncheon speak­
er on th e subject of “The F u tu re of
A griculture in R elation to th e W ar.”
A. M. Eberle, dean of agriculture,
opened th e afternoon m eeting at 2
o’clock w ith rem arks.
M em bers of th e ag ricu ltu ral com­
m ittee include key-bankers in various
sections of th e state. T hey are E. F.
McKellips, S tate Bank, A lcester; W. E.
P errenbud, F irs t N ational B ank &
T ru st Co., Sioux Falls; E. A. Loom er,
Com m ercial T ru st and Savings Bank,
M itchell; A. G. Berger, County N a­
tional Bank, Clear Lake; L. L. B ranch,
F irs t N ational Bank, Pierre; J. O. Van
Nice, F irs t State Bank, M cLaughlin;
G. A. M cGaraugh, F irs t N ational B ank
of Black Hills, Sturgis.

New Field Representative
Mr. and Mrs. O. D. H ansen and
daughter, Carol, are now residents of
Y ankton, Mr. H ansen having become
associated w ith th e A m erican State
B ank in th e capacity of field rep resen ­
tative.
Officers of th e b an k say th a t Y ank­
to n ’s expanding b an king te rrito ry re n ­
ders it desirable to place a re p re se n ta ­
tive in th e field w ho can serve as con­
tact m an, b ringing ban k and custom er
m ore closely to g eth er for b etter se r­
vice.

W ar Relief Worker
A ctive as a girl w hen she w orked on
w ar relief clothing d u rin g th e Civil
W ar, and again d u rin g W orld W ar
N um ber One, Mrs. W. D. M orris, of
W atertow n, is again doing h er bit for
w ar relief. At th e age of 86, she w as
th e first to tu rn in a finished k n itted
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42
g arm en t to th e Coddington County
Red Cross w ar relief program .
Mrs. M orris is th e w ife of W. D.
M orris, ch airm an of th e board of the
F irs t Citizens N ational B ank of W atertown.

SEVEN R EA S O N S
(C ontinued from page 13)

AN IMPORTANT
PROBLEM IN
PUBLIC RELATIONS
Mr. J. O. McCaskill, Vice Presi­
dent of The Alamo National
Bank, San Antonio, Texas, has
this to say about the Model 54
Protectograph Check Signer:

"I t i s d i f f i c u l t t o u n d e r ­
s t a n d how we g o t a l o n g
w i t h o u t i t a s l o n g a s we
d i d , a s we u s e i t e v e r y ­
day on a l a r g e number o f
c h e c k s and i t s p e e d s t h e
op eration tremendously.
We a r e w o r k i n g a l l t h e
t i me to g i v e our c u s ­
t o m e r s b e t t e r s e r v i c e and
we f e e l t h i s w a s c e r ­
t a i n l y a ste p in the rig h t
d irection ."
With a Model 54 Todd Check
Signer, you can safely delegate
full responsibility for draft issu­
ance to tellers or others. Two
locks and keys p re ve n t un­
authorized use, and a tamper­
proof counter provides a daily
audit. Four-color, forgery-defy­
ing signatures speed service to
draft purchasers, prevent inter­
ruptions at officers’ desks, and
save time for your own execu­
tives, as well as your customers.
Write for descriptive folder.

locU

C O M PANY, IN C .
ROC HES TE R Y
O F F I C E S IN ALL

f

N E W Y OR K
PR I NCI PAL CI TI ES

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Federal Reserve Bank of St. Louis

A pril 1941

tim es b u t w ith even less results. F in ­
ally th e cashier shouted: “Is it an F
like in F ed eral or an S like in stra w ­
b e rry ? ” In sta n tly th e farm er came
back: “W h at th e dickens has stra w ­
berries got to do w ith it? T his is a
corn loan.”
HAVE alw ays adm ired th e m an
th a t can tak e a list of figures
glance a t th em once, and bingo, give
th e co rrect total. W hen I first sta rte d
in th e b ank I rem em ber m y cousin
five y ears younger ru n n in g into the
b an k one n ig h t and saying to his fa­
ther: “T hey h ad th e m ost w onderful
m an a t school; you call off a long list
of figures and alm ost before you get
th ro u g h he gives you th e total.” His
dad g ru n ted and continued to count
currency. The fact still lingers th a t
we w ere off balance th a t night. B ut
he persisted: “W hy Dad, he w as so
fast, and he could su b tra c t too?” H is
dad w as ra th e r annoyed and he re ­
plied: “Son, we b u y these th in g s called
adding m achines, and on those th e
p oorest adder in th e w orld is as good
as th is w onder m an. A lw ays rem em ­
b e r you can’t beat a m achine.”

I

FIVE POINT P R O G R A M
(C ontinued from page 14)
m ore th a n do m any of th e high grade
corporates.
“The last elem ent in th e inside p ro ­
g ram for a co u n try b an k is th e m a tte r
of b u d g etary control and cost an aly ­
sis,” Mr. G lenn continued. “In these
days w hen a co u n try b a n k ’s earnings
are m easured in infinitesim al deci­
m als, it is necessary for us to know
exactly w here each p enny goes and
w h at th a t p enny does. No longer is it
possible for us to figure on six p er cent
loans and low salaries and o ther low
o p erating expenses. T hro u g h govern­
m en t and o th er com petition, th e
sta n d a rd ra te of in te re st on loans has
contracted and it is p ractically im ­
possible, for instance, to get a prim e
m ortgage loan a t a g re a te r ra te th a n
4% p er cent, in view of F. H. A. com­
petition.
“I t is m y belief th a t an y bank, large
or sm all, can a t all tim es know w h at
its costs of operations are and can
know w hich d ep artm en ts are profit­
able and w hich are n o t profitable. It

can know w h eth er or not th e profits
it is obtaining are adequate in view of
th e m oney invested or volum e of busi­
ness done. It is perfectly possible to
set up a cost analysis system in w hich
all costs are allocated to th e d ep art­
m ent w hich is responsible for th e in ­
ception of th a t cost. T hrough th e use
of item counts we can know w h at our
p er item cost is and th ro u g h p roper
allocation of n et earnings, afte r ex­
pense of investing, we can know
w h e th e r all dep artm en ts are profitable
or w h eth er we are using earnings on
sh areh o ld ers’ funds in o rder to obtain
our n et profit, disregarding the fact
th a t e ith er savings or com m ercial de­
p artm e n ts are m oney losers. F rom
such an analysis we can know w h eth er
our service charges are in line w ith
our costs and w e can know w h eth er
th e basis of analysis of accounts th a t
we m ig h t be using in connection w ith
service charges, is reasonable and fair
both ways. A b an k should have rec­
ords to know w h a t its ratio of gross
earnings to to tal resources is and it
should com pare such ratio w ith those
of banks of its ow n size and it should
know how high th a t ratio m u st be in
order to have a reasonable chance of
show ing a satisfactory n et re tu rn on
each $100 of n et assets.”

Trust Conferences
Two regional tru s t conferences w ill
be held by th e A m erican B ankers As­
sociation in A ugust and N ovem ber of
th is year, it is announced by Carl W.
F en n in g er, p resid en t of th e associa­
tio n ’s tru s t division, w ho is vice p resi­
den t of th e P ro v id en t T ru st Com pany
of P hiladelphia, P ennsylvania.
T he first of th ese w ill be th e 19th
Regional T ru st C onference of th e P a­
cific Coast and Rocky M ountain States,
w hich w ill be held in Seattle, W ash­
ington, on A ugust 6, 7 and 8, 1941. Lo­
cal arran g em en ts w ill be in charge of
th e Seattle A ssociation of T ru st Men
and th e C orporate F iduciaries Asso­
ciation of W ashington.
T he second conference w ill be th e
T w elfth M id-Continent T ru st Confer­
ence w hich w ill be held in St. Louis,
M issouri, on N ovem ber 6 an d 7, 1941.
T he Clearing H ouse A ssociation of St.
Louis an d th e C orporation F iduciaries
A ssociation of St. Louis w ill act as
hosts.
I^pcal com m ittees for b oth confer­
ences w ill be appointed in th e n e a r
fu tu re to com plete plans for th ese tw o
conferences.
T he St. Louis conference w ill a ttra c t
special in te re st because th e tr u s t divi­
sion of th e A m erican B ankers A ssocia­
tion w as organized in St. L ouis fortyfive y ears ago.

43
R u th E rickson and T. L. R ank, on a
p erm an en t basis w as necessitated by
increased business, Mr. W oodw ard
said.
C onstruction of a p riv ate consulta­
tion room , m oving back of tellers’
w ickets eight feet, and use of th e di­
recto rs’ room are included in th e re ­
arrangem ent.

Prominent Banker Dies
K. O. SATTRE
President
Blue Earth

Duluth Bank Merger
L ast m o n th th e St. Louis C ounty
S tate B ank, of D uluth, w as m erged
w ith th e D uluth N ational Bank.
F o r 54 y ears th e St. L ouis C ounty
S tate B ank served its custom ers, suc­
cessfully w e a th e rin g th e panic of 1893
and a t least four o th er b u siness de­
pression periods—including th e 1933
era.
T he b an k w as sta rte d in 1887 by M.
S tew art and a y e a r la te r th e late
C harles A. B ritts becam e associated
w ith Mr. Stew art.
S ho rtly a fterw ard s a close frien d of
Mr. B ritts, C harles W. E lston, p u r­
chased th e S tew art in te re st an d th e
tw o m en form ed a b an k in g p a rtn e r­
ship. T he b an k w as in co rp o rated u n ­
d e r th e M innesota b an k in g act in 1901,
w ith Mr. E lsto n becom ing th e first
p resid en t an d Mr. B ritts vice p resi­
dent. T he la tte r becam e p resid en t in
1933 w h en his p a rtn e r died.
L ast Ja n u a ry , Mr. B ritts died, leav­
ing th e b a n k in th e h ands of his son,
C harles A. B ritts, M inneapolis vice
p re sid e n t of th e N o rth w est Bancorporation, and F re d E lston, D uluth, son
of C harles W. E lston, and one of th e
active heads of th e b an k in recen t
years.
Officers of th e D u lu th N ational are
Dr. W illiam J. E klund, p resident; E. C.
Sullivan, vice presid en t; P. N. Hegvold,
vice presid en t; J. V. H agberg, cashier;
R. S. Carlson, a ssista n t cashier; Dr.
E klund, Mr. Hegvold, Mr. Sullivan,
H agberg, Oscar P eterso n and R. V ern
E ckm an, directors.
The b a n k is a m em ber of th e F e d ­
eral D eposit In su ra n c e C orporation.

Land Bank Aid
A n nouncem ent w as m ade recen tly
of th e ap p o in tm en t of H ans T. H agen
as d istric t su p erv iso r of th e federal
land b an k for th e O w atonna area.

Rudd Passes Away
M ilaea w as saddened by th e passing
of one of its pion eer citizens recen tly
w hen M artin K. R udd died at th e hos­

WILLIAM DUNCAN, Jr.
Secretary
Minneapolis

p ital a t St. Cloud follow ing a brief
illness.
In 1908 Mr. R udd becam e a director
of th e F irs t N ational B ank of Milaea
w hich w as reorganized from the
fo rm er F a rm e rs S tate B ank here, and
he also rem ained affiliated w ith th e
b a n k up to th e tim e of his death, a
period of 33 years, serving for 32 years
as vice president.

F in al rite s w ere held last m onth for
M ichael D. F ritz, 72, vice p resid en t of
th e F re e P ress and a p ro m in en t figure
in M ankato business and civic life d u r­
ing th e last 50 years.
In addition to serving on th e board
of directors of th e N ational Citizens
Bank, th e Citizens Telephone Co. and
th e M ankato Savings and B uilding As­
sociation, he w as a m em ber of th e
M ankato city c h a rte r com m ission. D ur­
ing p ast y ears he w as an alderm an on
the M ankato city council from 1908
to 1910 and w as presid en t of th e form er
M ankato State Bank.

Currie Pioneer Deceased
T. V. C um m iskey, pioneer resid en t
of C urrie, passed aw ay a t his hom e
recen tly afte r an illness of th ree years.
H e w as in his 71st year.
F o r m any y ears a director of th e
F irs t S tate B ank of C urrie, Mr. Cum­
m iskey a t th e tim e of his death w as
a board m em ber of th e C urrie F a rm ­
ers G rain & Supply Com pany and of
th e C urrie S tate Bank.

Hudy Elected Cashier
George A. H udy, form erly of Ortonville, w ho recen tly joined th e staff of
th e N ational Citizens Bank, M ankato,
w as elected cashier at a m eeting of
th e directors Monday.

Former Banker Dies
Jo h n D. McMillan, 81, of M inne­
apolis, died last m onth afte r an illness
of tw o years.
H e w as a form er d irector of th e
F irs t N ational B ank of M inneapolis.

Pioneer Passes Away
O. L. M elgaard, pioneer A rgyle
citizen and early-day banker, passed
aw ay last m onth a t th e hom e of his
daughter, Mrs. P. W. Kemp, in Argyle.
In 1889 Mr. M elgaard w en t to A r­
gyle as cashier of th e F arm ers &
M erchants Bank, organized by his
bro th er, H. L. M elgaard in 1886. H e
served as cashier of th e b an k for 18
years. R esigning in 1917, financially
w ell off, he re tire d to enjoy th e fru its
of his active years. The b an k w as
th e n th e p a re n t in stitu tio n to a strin g
of banks in w hich he w as interested.
T he depression followed, and standing
h o n estly to his tru s t lost heavily in
m eeting obligations as one after an ­
o th er of th e banks failed.

L E G A L DEPARTMENT
(C ontinued from page 18)
Som e states, such as Illinois, recog­

Bank Enlarged

nize w a rra n ts of atto rn e y in prom is­
sory notes th a t provide for confession
of ju dgm ents th ereo n in th e ev en t of
non-paym ent on due dates. W here
such is th e case, w ill a confession of
ju d g m en t on behalf of one of tw o sign­
ers of a note be recognized w h ere th e
w a rra n t is jo in t and is n o t jo in t and
several?

An enlarging p rogram em bracing
increasing lobby space considerably,
and o th er changes, w as com pleted last
m o n th a t th e Colum bia H eights State
B ank, H. S. W oodw ard, cashier an ­
nounced yesterday.
T he additional space a t th e b ank
and placing of tw o part-tim e employes,

No. The au th ority to con fess judg­
m en t under a w arrant of attorney m ust
he strictly construed and strictly fo l­
low ed. It accordingly has b een held
that a w arrant of attorney does not
authorize a jud gm ent b y con fession on
a n ote again st on ly one of the sign ers

Jensen Passes Away
L au ritz Jensen, 75, C learbrook b an k ­
er, and pro m in en t in d airy circles in
n o rth w e ste rn M innesota for m any
years, died at a Crookston hospital last
m onth.

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April 1941

44

• MINNESOTA
if the w arrant is join t and n ot join t
and several.
F arrell died in M issouri leaving to
his son, by w ill, c ertain unencu m b ered
real estate th ere. The son, how ever,
refused to accept th e land an d re ­
nounced an y rig h ts he m ig h t have
thereto. T his w as done p ro m p tly a fte r
his fa th e r’s death. W as such action on
his p a rt legal? C ertain of th e son’s
cred ito rs contended it w as not.
Yes. A d evisee m ay accept or decline

NEWS

a testam en tary g ift and he m ay re­
nounce h is rig h t under the w ill even
thou gh the g ift is beneficial to him ,
provided no acceptance by him has
occurred.
A South D akota b an k er re tire d and
w en t to California. H e invested in cer­
ta in real estate th e re and, as th e lan d ­
lord, m ade certain rep airs to th e plas­
te r of one of th e buildings ow ned by
him . He did th e w ork v o lu n tarily b u t
failed to exercise reasonable care in

•
doing it. An accident occurred.
he liable?

W as

Yes. A landlord is liable in dam ages
if he fa ils to exercise reasonable care
in m akin g repairs, w h eth er th ey be by
agreem en t or volu n tarily. A vo lu n teer
m ay not do in a n eg lig en t m anner w h at
he u nd ertak es to do and, as a con se­
quence, the landlord w a s an sw erab le
for th e accid en t in th is case.

S C H O O L SA V IN G S
(C ontinued from page 22)
typical A m erican public school, p ri­
vate school, or parochial school. If
we are building for th e tom orrow s
and not en tirely for th e todays, I be­
lieve th a t this m a tte r of school savings
w ill receive th e a tten tio n w hich it de­
serves.”

Relationships Which
Endure
Four A m erican banks have been
correspondents of this institution
continuously for more than 75 years;

Dividend
The board of directors of M anufac­
tu re rs T ru st Com pany declared th e
reg u lar q u a rte rly dividend of 50 cents
p er sh are on th e com m on stock, p ay­
able on A pril 1, 1941, to stockholders
of record on M arch 15, 1941.
The board also declared th e re g u la r
q u a rte rly dividend of 50 cents p e r
sh are on th e p referred stock, payable
A pril 15, 1941, to stockholders of rec­
ord on M arch 31, 1941.

159 for more than 50 years;
Quarterly Dividend

466 for more than 40 years.
Business relationships of such long
standing must have been mutually
beneficial.

At th e reg u lar m on thly m eeting,
held M arch 18, 1941, th e board of di­
recto rs of T he N o rth ern T ru st Com­
pany, Chicago, declared th e 173d con­
secutive q u a rte rly dividend am o u n tin g
to $4.50 a share, payable A pril 1, 1941,
to stockholders as of M arch 18, 1941.

Dividend

C e n t r a l
H a n o v e r
BANK AN D T R U ST COM PANY
NEW YORK

MEMBER

FEDERAL

DEPOSIT

INSURANCE

CORPORATION

T he board of directors of The F irs t
N ational B ank of Chicago, a t a re c e n t
reg u lar m eeting, declared a dividend
of $2.50 p er sh are on th e capital stock
of th e bank, payable A pril 1, 1941, to
stockholders of record M arch 25th;
also a dividend of $2.50 per sh are pay­
able on Ju ly 1, 1941, to stockholders of
record Ju n e 25, 1941.

Problem
Prof.: “Oxygen is essential to all
anim al existence. Life w ould be im ­
possible w ith o u t it. Yet, it w as dis­
covered only a h u n d red years ago.”
Student: “W h at did th ey do before
it w as discovered?”

Northwestern Banker

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

April 1941

45

T w in C it y N e w s

IRST Service corporation, M inne­
By James M. Sutherland
apolis, has nam ed W. K. P lum m er
Special Cor r e s ponde nt
d ep u ty exam iner. He form erly was
chief clerk a t F irs t N ational B ank &
T ru st Co., H elena, Mont., w hose staff
took over the D uluth office of T hom ­
he joined in 1927 as m essenger.
son & M cKinnon.

F

R oger B. Shepard, St. Paul, vice
ch airm an of th e F ed eral R eserve B ank
of M inneapolis, has been nam ed co­
o rd in ato r of th e d istric t office for th e
new federal D efense C ontract Service,
set up u n d e r th e Office of P roduction
M anagem ent to aid in d u strial produc­
tion u n d e r th e defense program . H. C.
T im berlake co ntinues as m an ag er of
the d istric t office, fo rm erly called th e
in d u stria l co-ordination d ep artm en t of
th e reserv e bank.
W illiam E. B ina, fo rm erly w ith
George C. Jones Co., M inneapolis in ­
v estm en t firm, has joined th e staff of
J. M. D ain & Co. H is in v estm en t ex­
perience dates back to 1925.

In connection w ith th e a n n u al sub­
scrip tio n drive by th e M inneapolis
Civic council, W. E. Brockm an, vice
p re sid e n t of M idland N ational B ank
& T ru s t Co., has been nam ed ch a ir­
m an of th e n atio n al firm s division. His
job: su p erv isin g collections from n a ­
tio n al firm s w ith offices in M inne­
apolis.

Ralph W ebber has joined th e staff
of Ju ra n , Moody & Rice, St. P aul in ­
v estm en t firm. He has had 20 y e a rs’
in v estm en t experience.

One thousand n o rth w est bankers,
officers and directors of federal reserve
m em ber banks in th e N inth district,
atten d ed the fo u rth an n u al m em ber
b an k conference of th e M inneapolis
F ed eral R eserve B ank in M inneapolis
last m onth.
T hey h eard th ree nationally-recog­
nized a g ricu ltu ral econom ists conduct
a panel discussion, listened to an ad ­
dress by a St. P aul new spaper pub­
lish er w ho knew H itler in the early
days of his rise to pow er, and w ere
e n te rtain ed a t luncheon, d in n er and
an ice hockey show d uring the one-day
m eeting.
A nsw ering questions subm itted in

advance of the conference w ere Dr.
O. B. J esn ess, head of th e agricu ltu ral
economic d ep artm en t of th e U niver­
sity of M innesota college of agricul­
ture; L ou is H. Bean, econom ist w ith
the U. S. d ep artm en t of agriculture,
and Joseph S. D avis of S tanford U ni­
versity.
T he th ree agreed th a t the fu tu re
p ro sp erity of ag ricu ltu re rests largely
on increased em ploym ent and activity
in o ther lines w hich w ould create a
g reater dem and for farm products.
T hey also w ere of th e opinion th a t
regardless of w h at m ay happen in
th e w ar, our national defense program
w ill m ain tain em ploym ent and busi­
ness activ ity for a t least th e n ex t y e a r
or tw o and possibly longer.
No im m ediate decidedly inflationary
price rise w as foreseen by th e experts,
b u t th ey said th e w ar situ atio n m ay
b ring a tre n d in this direction in tim e.
A rch itectu ral

plans

for

th e

new

F arm ers & M echanics S avings Bank,

now u n d er construction a t Sixth
stre e t and M arquette avenue in the
h e a rt of M inneapolis’ financial dis-

Tw enty-five y ears as cash ier of
F a rm e rs & M erchants S tate Bank,
Stillw ater, Minn., W illiam C. K rog w as
given a w rist w atch by th e b a n k ’s
board of directors as an a n n iv e rsa ry
present.
C harles J. R ieger has becom e asso­
ciated w ith Jam ieson & Co. in its
M inneapolis office, w o rk in g w ith his
fath er, C. C. R ieger, m an ag er of th e
bond d ep artm en t. The firm recen tly

Here is the artist’s conception of what the Farmers and Mechanics Savings Bank
of Minneapolis will look like, which is now under construction in Minneapolis.

Northwestern Banker

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

A pril 19^1

46
trict, have been an nounced by McE n a ry & K rafy, architects.
T he $600,000 stru c tu re , scheduled to
be com pleted th is year, w ill be used
en tirely for b an k in g purposes, except
for tw o sm all stores on th e Sixth
stre e t side.
M ain en tran ce to th e b an k in g room
w ill be on S ix th street. Back of th e
b an k in g room w ill be a five-story u n it
w ith an en tran ce on M arquette. The
b a n k ’s m ortgage d e p a rtm e n t w ill be
on th e first floor an d th e school sav­
ings d e p a rtm e n t on th e second floor of
th is unit.

E x terio r of th e building w ill be of
buff-colored K asota stone, w ith a dull
red g ran ite base and sim ilar trim
aro u n d th e entrances. A m odernized
classic a rch itectu ral style has been
adopted for th e stru ctu re. M adsen
C onstruction Com pany is general con­
tractor.
A fter m ore th a n a dozen years,
M innesota has a b ank law w hich is—
it hopes—legal.
T he new law, levying an 8 p er cent
excise tax on th e n e t incom e of state
and national banks, has been passed

by th e legislature and signed by Gov.
H arold E. Stassen.

T hus ends — unless a co urt te st
should ov erth ro w th e law —a long con­
tro v ersy in th e state arisin g out of a
federal law m aking it illegal to tax
national banks at a h ig h er ra te th a n
com peting capital.
Several unsuccessful efforts have
been m ade to rectify th is tax m ixup
—th e last one tw o y ears ago w hen
G overnor Stassen vetoed a 6 per cent
bill.
B anks have been paying taxes u n d er
a “gen tlem en ’s ag reem en t” for several
years, and th e new law is expected to
produce considerably less th a n was
th u s secured.
S hirley S. Ford, presid en t of N o rth ­
w estern N ational B ank & T ru st Co.,
has been nam ed a d irector of G eneral
Mills, Inc., w o rld ’s larg est m illing con­
cern.

COMMOH GOOD

Above: Harvestor 8 ft. and Universal “ Z ” Tractor.
Belows Harvestor “ 69” (5 ft.) and Universal “ R ”
Tractor. M M Harvestors are the “ Soy Bean K in g s“ o f
combines, w ith a reputation for more beans saved.

America's 1941 Defense Program
brings new importance to the
conduct of her major business —
FARMING. Stepping up produc­
tion means more generous pur­
chasing of Farm Machinery and
c lo se r co o p er a tio n b e tw e e n
farmer, dealer, and banker.
Since success on the farm is
definitely measured by the time
and labor-saving capacity of the
machines used, the World's Most
Modern Line — MINNEAPOLISMOLINE— has special economic
sig n ifica n ce. In M inneapolisMoline Tractors and Farm Ma­
chines the farmer finds the de­
pendable service, low upkeep
cost, and enduring usefulness
which result in lighter work,
few er hours, and substantial
PROFIT.
1941 MM Headliners have what
the farmer wants. BUT — he
may need the "credit” assist­
ance of his MM Dealer and his
Banker to purchase them. Fi­
nancial cooperation for the de­
serving farmer reacts not only
in more income for HIM but for
the entire community including
the MM Dealer and the Banker.
That's why we say, COOPERA­
TION FOR THE COMMON
GOOD.

Minneapolis-Moline

POWER IMPLEMENT COMPANY S'iSWWW
N orthw estern Banker


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

A pril 19bl

W. J. D ean, 71, d irector of F irs t
N ational B ank and F irs t T ru st Co.,
St. Paul, and active in St. P au l b u si­
ness life, died recen tly from an em ­
bolism a ttrib u te d to a bro k en leg
w hich he suffered w hen stru c k by an
autom obile early in Jan u ary .
W ith Vice P resid en t G. E. L arkin
as toastm aster, M arquette N ational
B ank w as host to a group of con­
tracto rs and th e ir w ives a t a d in n er
in M inneapolis.
N. H. Skogland, cashier of L ib erty
State B ank, St. Paul, has been elected
vice p resid en t and cashier. H e has
been connected w ith th e b an k m ore
th a n 15 years.

E. B. M ount & Co., M inneapolis, has
been organized as an in v estm en t firm
specializing in FH A -insured m o rt­
gages. P a rtn e rs are E. B. M ount, for
several years financial correspondent
of T rav elers In su ran ce Co., and Don
Orth, fo rm erly w ith D. D. Schroeder
& Co. Owen C. DeVine, St. Paul, is
associated w ith them .
Said to be new in th is section of
th e country, a t least, is a checking
system now offered by M arquette N a­
tion al Bank. In stead of a m o nthly
charge, m inim um balance and o th er
req uirem ents, th e re is a flat charge
of seven cents for each check draw n
and each deposit made.
D epositors receive th e ir statem en ts
as each ledger sh eet is filled, or about
once for every 25 checks used. T his
service is in addition to th e reg u lar
checking service and is designed for
persons w ho w rite only a few checks.
Close to 300 M innesota ban k ers, in ­
cluding som e from adjoining states,

47

•MINN ESOTA
atten d ed sessions of th e th ird an n u al
M innesota B an k ers C onference a t th e

U n iv ersity of M innesota.
T his y e a r’s p ro g ram w as “g eared ”
to th e N ational D efense P rogram , w ith
nu m erous speeches an d fo ru m m eet­
ings devoted to m a tte rs p e rtin e n t to
th a t subject.
Sponsors of th e conference w ere th e
U n iv e rsity ’s school of business ad­
m in istratio n , th e M innesota B ankers
A ssociation an d th e sta te b an k in g divi­
sion, w hile co-operating w ere th e local
offices of th e FDIC, n atio n al b an k
exam ination d e p a rtm e n t and T w in
City b ankers.
The p ro g ram included such subjects
as “R ecent E conom ic T ren d s,” “W ar
E conom y,” “C onsum er C redit,” “Ag­
ric u ltu re ,” “B an k O perations,” “In ­
v estm en ts,” an d “Incom e T ax P ro ­
cedure.”
S peakers a t th e th re e luncheon
m eetings w ere P re sid e n t Guy S tan to n
F o rd of th e u n iv ersity , H arold Stonier,
executive m anager, A m erican B ankers
A ssociation, an d C. B. U pham , d eputy
U. S. com ptroller of currency. Dr.
F. Cyril Jam es, prin cip al and vice
chancellor of McGill U niversity, M ont­
real, described econom ic and financial
conditions in Canada a t th e one d in n er
m eeting of th e conference.
L aurence R. L unden, in v estm en t
counsel for th e u n iv ersity , w as ch a ir­
m an of th e g en eral com m ittee; W illiam
D uncan, Jr., se c re ta ry of th e state
b a n k e rs association, headed th e a t­
tendance com m ittee.
In th e forum on consum er credit,
John H. Lucas, vice p resid en t of
Peoples T ru s t Co., P ittsb u rg h , urged
th e need for a u n ifo rm b a n k law cover­
ing sm all loans of th e in stallm en t type.
H e p ointed out such a bill m ay come
before th e M innesota leg islatu re and
urg ed b a n k e rs to ge b eh in d such legis­
lation.
T he In d ep en d en t B an k ers A ssocia­
tio n em erged from its elev en th an n u al
convention in St. P au l as a full-fledged
natio n al organization.
P rin cip al evidence of th is a t first
notice w as in th e list of new officers.
T hey are: N. B. M atthew s, vice p resi­
dent, B asin S tate B ank, Stanford,
Mont., p resident; A. P. D rum m ond,
vice p resid en t, B an k of Bonifay, F lo r­
ida, vice p resident; C. P. Som m erstad,
presid en t, F irs t N ational Bank, W a­
seca, M inn., second vice president,
an d H arry B ee, vice president, B ank
of Long P ra irie , Minn., tre a su re r.
N am ed to th e executive council w ere
R obert I). B eery, p resid en t, U nion
S tate B ank, B row ns Valley, Minn., and

NEWS*

R. S p en sley, cashier, Security
S tate Bank, H ibbing, Minn., th e re ­
tirin g p resid en t of th e IBA.
A uthorized w as an en larg em en t of
th e executive council to include re p ­
re se n tatio n from o ther states into
w hich th e organization is spreading.
W.

F irs t step in th is direction w as addi­
tion of W illiam J en n in g s Bryan, N ash­
ville, Tenn., and L. B. M cBride, F o rt
Collins, Colo., to th e council.
Ben D uB ois, Sauk Center, Minn., is
slated to be re-nam ed association sec­
re ta ry by th e council.

Out-of-TownBanks
O u t-o f-to w n banks and bankers w ill find here
co m p le te b a n k in g fa c ilitie s fo r p ro m p t and
econom ical handling o f accounts in Chicago. We
w ould appreciate the opportunity o f serving you.

C ity N ational B
A NII

TRUST

2 0 8

S O U T H

COMPANY

ank

of Chi c a g o

L A S A L L E

S T R E E T

{Member Federal Deposit Insurance Corporation)

A R eal
V a lu e !
• W h e n y o u can
su p p ly 2 0 0 ch eck s on
N a t io n a l S a fe ty P a p e r — im p r in te d w ith c u s t o m e r ’s
n am e and address —

Costing Y our Customer Only

*1 —

— and in ad d ition p r o v id e FREE' w ith his first ord er, a
g e n u in e leath er co v e r, g o ld stam ped w ith his nam e —
y o u are g iv in g h im a real v a lu e for his m on ey.
W rite for folder and get the interesting details

P la n ts a t

NEW YORK
CLEVELAND

fie
...
U b IL iiyc
U A b s™™
CHECK

P R IN T E R S ,

INC.

Lithographers and Printers

Northwestern Banker

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Federal Reserve Bank of St. Louis

A pril 19^1

48

NORTH
MARTIN AAS
President
New Rockford

DAKOTA
NEWS

N EW S A N D VIEW S

With Mandan Bank
M att R eichert, F o rt Yates, field m an
for th e R egional A g ricu ltu ral Credit
corporation of M inneapolis for th e
p ast eight years, has accepted a posi­
tion as field m an for th e F irs t N ational
B ank of M andan. He h as rep resen ted
th e cred it corporation in Oliver, M or­
ton, G ran t and Sioux C ounties, w ith
h ea d q u a rte rs at F o rt Yates.

A . I. B. Research
Committee
The A m erican In stitu te of B anking,
w hich is com posed of ju n io r officers
and em ployes of b an k s th ro u g h o u t th e
country, has set up a natio n al research
com m ittee and w ill cooperate w ith th e
A m erican B ankers A ssociation in g a th ­
erin g statistics on subjects of natio n al
im portance to b anks and bankers.
F ro m tim e to tim e th is com m ittee w ill
call upon b an k s for facts and figures
along statistical lines, an d th e coopera­
tion of our b anks in an sw erin g in q u ir­
ies w ill be a prim e factor in m aking
these ban k in g studies a success an d of
value to th e b an k s th ro u g h o u t th e
country.
R aym ond J- H ess of th e F irs t N a­
tional B ank of M andan, N o rth Dakota,
has been appointed as a m em ber of the
sub-com m ittee com prising of th e states
of M innesota, N o rth D akota, South Da­
kota and Iowa. B anks in N o rth Da­
kota w ill cooperate w ith Mr. H ess in
th is w ork.

Turkey Trophy
T he tro p h y p u t u p by th e N o rth Da­
kota B an k ers A ssociation for th e All
A m erican T u rk e y Show th is y e a r w as
w on by Mrs. C. H. Folz, D rayton,
N o rth D akota. She w as aw ard ed th e
tro p h y for th e “B est Young P en of
N o rth D akota T u rk e y s”. In express­
ing h e r ap preciation for th e tro p h y ,
she states th a t she h as been exh ib itin g
for eighteen y ears an d w ishes th a t
m ore people could have atte n d e d th e
show and noted th e im pro v em en t in
th e tu rk e y s raised in N o rth Dakota.
Northwestern Banker

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

A pril 1941

C. C. WATTAM
Secretary
Fargo

(C ontinued from page 12)
sh arin g the lim elig h t w ith them are
the th in g s w h ich d irectly affect your
personal com fort and happiness.
“A n ew autom obile, shrubbery for
the law n , w allpaper, paint, repairs to
the d rivew ay and hundreds of other
hom e repairs and im provem en ts are
just as essen tia l to the arrival of spring
as those furnished to us by m other
nature.”

Now th a t th e w orld seem s to be de­
voting m ost of its a tten tio n to the
“K illing business,” it is p erhaps w o rth
rem em bering th a t to kill a soldier it
cost 75c in th e days of Caesar’s legion s
—$3,000 w hen N apoleon m arched—and
$21,000 for each W orld W ar I victim .

W h at th e statistics w ill show on
W orld W ar II we do n ot know, b u t it
will probably cost as m uch or m ore
th a n th e last w ar because of th e great
am o u nt of m oney going into m echani­
cal defense equipm ent.
N orm an M iller, w ho w as form erly

on th e

staff of th e N o r t h w e s t e r n
is now p rep arin g to lick H itler
w ith th e 168th In fa n try a t Camp Clai­
borne, Louisiana.
In a recen t com m unication to us he
said:
“W e get up at 5:00 a. m. and fall in
dressed for th e field at 5:30—th e n stand
R eveille in regim ental area tw o blocks
aw ay and are back at 5:45 and have
physical exercise from 5:50 to 6:00—
th e n m ess from 6:10 to 6:40, and th a t
is one-half h o u r to get 150 m en th ro u g h
m ess line and m ess gear w ashed and
all in again at 6:45 to go to field.
“W e go to th e field at 7:00 a. m. and
come back for one-half h o u r lunch at
noon, and back out and stay ’til 4:00
p. m.—th e n form ations and m ess and
all th ro u g h a t 6:00 p. m.
“W hile in th e field w e have a tra in ­
ing schedule telling ju s t w h at we are
teach ing every m in u te of th e day, and
it show s w here each m an is. If th a t
tra in in g schedule show s ‘Defense
ag ain st air a tta c k ’ and show s in stru c ­
B

anker

,

to r to be Sgt. M iller, it had b e tte r be
Sgt. M iller, as th ey keep inspections
going by Colonels and G enerals and
M ajors all th e tim e.
“W e have to go to school so fast
and so m any schools th a t som etim es
we non-coms ju s t get out of one and
go rig h t into th e other.
“F u n n y th in g dow n here. H ardly
anyone ever says an y th in g about th e
w ar. I guess all are so busy th a t th ey
don’t th in k about it, and th e natives
don’t even know w ho is fighting—th ey
are busy g ettin g th e ir cotton planted—
b u t we w ill sure be ready.”
If anyone th in k s th a t th e w orkm an
of today is n ot in th e “upper cla ss” of
th e incom e bracket, he only needs to
be rem inded that:
“S teel gan g forem an w o rk in g on re­
pairs to the Capitol at W ashington had
h ig h er w eek ly earnings— $267— than a
m em ber of C ongress w ho gets only
$192. W eek ly p ayroll averaged $92
each for the 70 m en on the job and 36
of them received m ore than $100.
R egular tim e w as 30 hours a w eek .”
J. M. N ich ols, p resid en t of th e F irs t
N ational B ank of Englew ood, rep o rts
th a t his in stitu tio n is now 115 p e r cent
liquid as cash against deposits, and
th a t he has enough incom e in sight to
pay a six p er cent dividend for th e
en tire y e a r 1941, and a sm all addition
to undivided profits.
Mr. N ichols recen tly sold an en tire
block of $2,800,000 of 3% p er cent
T reasu ry Bonds before the new financ­
ing w as recently m ade public.
In a statem en t to his stockholders’
he said:
“I f I can find no safe and profitable
place in w h ich to in v e st m y depositors’
m oney, I w ill pay th e m off and go
fishing. T he N ichols fa m ily has con­
ducted a successful banking business
fo r over 52 years, and possibly this is
long enough. C ertainly I do n ot feel
obliged to sta y in it. N or do I see any
disgrace in retiring fro m it.
“The only thing I can th in k of th a t
w ould p reven t our doing so w ould be
an o p p o rtu n ity to in v e st our m o n ey in
G overnm ent bonds, yielding IV2 per
cent or better w ith a m a tu rity of not
longer than 1945. D uring this half
cen tu ry w e have m et every economic
problem w ith fly in g colors. B u t now
to cope w ith disintegration of our ow n
G overnm ent is so m ething th a t I hesi­
tate to un d erta ke as custodian of other
people’s m oney. No tru er w ords w ere
ever sp oken than those at the foot of
our S eptem ber 30 s ta te m e n t :
“ ‘I n a last stand for dem ocracy every
director and officer of this bank w ill
cast his vote fo r W endell W illkie.’
(T u rn to page 58, please)

49

IO W A
H. R. YOUNG
President
Arlington

Member Federal Reserve
Effective M onday, M arch 3rd, the
Iow a T ru st & Savings B ank becam e a
m em ber of th e F ed eral R eserve Sys­
tem . It is th e only F ed eral R eserve
M em ber B ank in E m m et county.
In com m enting upon becom ing a
m em ber of th e F ed eral R eserve Sys­
tem , K. J. McDonald, p resid en t of th e
Iow a T ru s t & Savings B ank, stated:
“The F ed eral R eserve System is an
in te g ra l living p a rt of th e financial and
cred it stru c tu re of o u r country, we
can even say, of w h a t rem ain s of a
sane w orld. In recognizing th e com ­
plex ity of th e p re se n t an d th e u n c e r­
ta in ty of th e fu tu re, w e felt our d uty
and service to th is com m unity could
b est be p erform ed th ro u g h becom ing
a F ed eral R eserve B ank M em ber.”

ciation and n early every official ap ­
p o in tm en t delegated by th e association
to Iow a b an k m em bers.
F o r th re e y ears he w as a m em ber of
th e association’s executive council re p ­
resen tin g Iowa.

NEWS

G oes to Los Angeles

FRANK WARNER
Secretary
Des Moines

E llis served as p resid en t from 1929 to
1931. He continued as a d irector of th e
com pany u n til 1938.
In 1929 th e Security T ru st and Sav­
ings B ank w as m erged w ith th e F irs t
N ational B ank u n d er the nam e of F irs t
S ecurity T ru st and Savings Bank. E l­
lis has been p resid en t and d irector of
th e consolidated in stitu tio n since th a t
date.
Mr. E llis has served on all of the

New Officer
As a p a rt of a program to facilitate
h an dling th e activities of th e consoli­
dated banking institu tio n , involving
some changes in duties, Jam es N uck­
olls has been nam ed executive vice
presid en t of th e H ard in County Sav­
ings B ank of E ldora, and h as been
given a carpeted section and b ran d
new and handsom e desk in th e so u th ­
w est section of th e b anking q u arters.

Retires R F C Stock
T he F a rm e rs T ru st & Savings B ank
recen tly announced th e re tire m e n t of
th e rem aining $25,000 in p referred
stock held by the R econstruction F i­
nance C orporation. H alf of th e $50,000
p referred stock w as re tire d tw o y ears
ago, a t w hich tim e th e common stock
w as raised from $25,000 to $50,000 by
a stock dividend, and w ill now be
raised to $100,000 in th e sam e m anner.

Melvin W . Ellis Named
Iowa Superintendent
M elvin W. E llis, p resid en t of th e
F irs t Security B ank & T ru st Com pany,
C harles City, has been nam ed su p e rin ­
te n d e n t of b an k in g for Iow a by G over­
n o r George W ilson. Mr. E llis w ill take
over th e post now held by D. W. Bates
on Ju ly 1st th is year, unless th e la tte r
elects to resig n before th a t tim e.
Long p ro m in en t as a ban k er, in d u s­
trialist, m a n u fa c tu rer an d d irecto r of
m an y corporations, Mr. E llis w as p re si­
d en t of th e Iow a B an k ers A ssociation
d u rin g 1935-36.
He served as an a ssista n t b a n k cash­
ier in N ashua, Iowa, from 1898 to 1901
an d a y e a r la te r m arried M ina W allese r of N ashua.
In 1903 E llis an d his fam ily o rg an ­
ized th e S ecu rity T ru s t and Savings
B ank a t C harles City. He has served
as vice p resid en t and p resid en t of th e
b an k co ntinuously since.
Mr. E llis w as elected vice p resid en t
of th e H a rt-P a rr Com pany, tra c to r
m an u fa c tu rers in 1919, an d p resid en t
of th e com pany in 1921.
E ig h t y ears la te r th e H a rt-P a rr Com­
p an y w as m erged w ith th e Oliver
F a rm E q u ip m en t C om pany of w hich

George L enhard, cashier of th e F irs t
T ru st & Savings B ank of W h eatland
for th e p ast fo u rteen m onths, recen tly
resigned his position w ith th e b ank to
accept a position in th e B ank of A m er­
ica a t Los Angeles.

Oakland Banker Dies
M ilton H. E vans, 65, cashier of th e
O akland Savings B ank since 1908, died
last m onth a t a Council Bluffs hos­
pital. He had been a p atien t a t th e
hospital m ost of th e tim e since last
June.

Kimm Replaces Petznick

M ELVIN W. ELLIS

im p o rtan t com m ittees of th e Iowa
B an k ers A ssociation and held district
offices as w ell as th e presidency.
He is at p resen t chairm an of th e
association’s com m ittee on federal
b an k legislation, cooperating w ith a
sim ilar com m ittee of th e A m erican
B ankers Association.
Mr. E llis has held several com m ittee
posts in the A m erican B ankers Asso­

R. D. K im m of Independence has
been nam ed cashier of th e F irs t State
B ank of W h at Cheer, tak in g th e place
of A rnold Petznick, w ho w ill be em ­
ployed by th e B ank of A m erica a t Los
Angeles.
Mr. K im m w as form erly cashier of
a b ank at B lairstow n for 17 y ears and
w as later em ployed as field m an for an
in su ran ce com pany.

G oes to California
Jo h n P o rter, w ho for th e p ast five
y ears has been a teller a t th e Rock
R apids S tate Bank, left recen tly for
Los Angeles, California, to accept a
position w ith th e B ank of A m erica a t
th a t place.
Northwestern Banker


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

A pril 19^1

TRACTORS FORGE A H EA D ...
Measured in bushels of grain, Iowa's agricul­
tural production has held fairly even since 1920.
But in this same period, tractors-on-farms have
increased over 600 per cent.
Measured in clearing house totals, Des Moines
banking volume has held fairly even since 1920.
In the same twenty years, the resources of the
Bankers T ru st C om pany have grow n from
$4,700,000 to $23,399,000.
There's sound reason for the frequent sugges­
tion: "Use the Bankers Trust in Des Moines,"


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

PROOF OF PROGRESS IN IOWA
Comparison
in number of
tractors in use
on Iowa farms

1 9 2 0

20,270

»I-

1 9 4 0

133,410
Comparison
of resources
Bankers Trust
Company

1 9 2 0

$

$

$

$

3

4, 700,000

1 9 4 0

23, 399,000


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

52

•
Gossett Addresses Kiwanis
C. R. Gossett, p resid en t of th e Secu­
rity N ational B ank, Sioux City, ad ­
dressed th e K iw anis Club a t th e ir
luncheon last m o n th in th e M ayfair
Hotel. Mr. G ossett’s su b ject w as gold.

Remodeling Completed
T he expansion pro g ram of th e Iowa
State B ank and T ru s t Com pany of
Iow a City, involving th e rem odeling
of facilities for custom ers w as com ­
pleted last m onth.
A ddition of th re e new te lle rs’ w in ­
dows m ake a to tal of eight now av ail­

IOWA

NEWS

•

able to patrons, w hile th ree new cus­
to m ers’ room s have been b u ilt u n d er
th e bookkeeping rooms.

Former Banker Dead
E d w ard J. C urtin, 75, form er De­
corah resident an d w ell know n banker,
w ho w as presid en t of th e Citizens
Savings B ank th ere for m any years,
died a t his hom e in Chicago last m onth.

Changes at Dows
A t a recen t m eeting of th e board of
directors of th e F arm ers State B ank
of Dows, B ert B ertilson w as elected

d irector to fill th e vacancy left by th e
death of his b rother, Oscar B ertilson.
W ill E. Deam w as advanced to th e posi­
tion of vice president. Jam es I. Deam,
a ssistan t cashier, now holds th e posi­
tion of cashier.

Cylinder Banker Dies
Theodore Johnson, 62, of Cylinder,
presid en t of th e C ylinder State B ank
and m ayor of th a t tow n, died in th e
E m m etsb u rg hospital last m onth from
a h e a rt ailm ent.
A re tire d farm er, Mr. Johnson w as
in th e im plem ent business a t C ylinder
at th e tim e of his death. He is s u r­
vived by his w ife and th ree children,
Mrs. W alter Sail of Shell Rock an d
R ussell and H arlow Joh n so n of Cyl­
inder.

New Director
A t a m eeting of th e board of direc­
to rs of th e Blue G rass Savings B ank
last m onth, Theodore K ress, p ro m i­
n e n t farm er w ho lives on his 120 acre
farm one an d one-half m iles east of
Blue Grass, w as elected to fill th e posi­
tion on th e board form erly occupied
by T. J. Brus.
P re se n t officers of th e b an k are:
P resident, W alter K autz; vice p re si­
dent, E d W athan, Sr.; cashier, Don F a r­
ley, and bookkeeper, Im ogene Huffbauer.

CLOSE

TO BOTH

INDUSTRY AND AGRICULTURE
Located

in the heart of the Union Stock

Y a rd s and C h ic a g o ’s g re at C entral M anu­
facturing District, this 73 y e a r old bank has
d evelo ped

facilities through

farmer and

serving

both

m a n u f a c t u r e r t h a t m a k e it

e x cep tio n ally qualified to act

as C h ica g o

correspondent for m iddle w estern bankers.

LIVE STOCK
BANK

N A T I O NNA
AL

i m i l l l

Established

U N IO N

STOCK

OF CHI CAGO

1868
YARDS

M e m b e r F e d e r a l D e p o s if In s u ra n c e

N orthwestern Banker

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

A pril 19^1

C o r p o r a t io n

Cashier Resigns
R esignation of H en ry C. L induski,
cashier of th e F irs t N ational B ank of
Denison, w as accepted a t a reg u lar
m eeting of th e board of directors of th e
ban k last m onth. The resig n atio n be­
cam e effective A pril 1st.
Mr. Linduski, w ho w en t to D enison
from th e L ivestock N ational Bank,
Sioux City, m ore th a n five years ago,
resigns to again accept a position in
th a t bank.
A successor to Mr. L induski has n ot
been nam ed, th e board announced.

G e t More Than 100 Per Cent
D epositors in th e closed F a rm e rs
Savings B ank a t A nkeny, ra th e r th a n
th e p referred stockholders, w ill get
m ore th a n 100 per cent of th e ir m oney
back.
I t w as an unp reced en ted decision in
Iowa, as far as suprem e co urt records
show. It w as said to be u n u su al for
depositors to receive even 100 cents on
th e dollar on th e ir deposits, let alone
a “bonus,” although a n um ber of closed
Iow a banks have paid depositors in
full.

53

•

IOWA

NEWS

•

Figge Elected President

Edgar Bailey Dead

Inter-County Meeting

T he b oard of d irecto rs of th e D aven­
p o rt B ank & T ru s t C om pany recen tly
elected V. O. Figge p resid en t of th e in ­
stitu tio n to fill th e vacancy caused by
th e resig n atio n of E. P. Adler.
Mr. Figge had served th e b an k as
executive vice p resid en t since its o r­
ganization J u ly 6, 1932. Mr. A dler w as
its p resid en t for th e sam e period.

F rien d s w ere inform ed last m onth
of th e death of E d g ar Bailey, 65, a t
Miami, Florida, w here he had been re ­
siding th e p ast th re e years. He had
been in poor h ealth for several years.
Mr. Bailey grew to young m anhood
in C orrectionville, w here he resided
co ntinuously u n til m oving to Sioux
City about five y ears ago. He w as
associated w ith his fa th e r in th e Bailey
B ank and a fter th e fo rm er’s death con­
tin u e d to operate th e b an k for m any
years.

A pproxim ately fifty b an k ers re p re ­
senting b an king in stitu tio n s in Poca­
hontas, Calhoun, Sac and B uena V ista
counties atten d ed th e inter-county
g ath erin g held at H otel Pocahontas
in Pocahontas last m onth. T he Poca­
h ontas county b an k ers association had
charge of arran g em en s for th e m eet­
ing.
Follow ing th e 6:30 d in n er Chas. E.
W atts, cashier of th e Com m ercial S tate
Bank, presided a t th e business m eeting
in th e absence of E. K. W inne, L a u r­
ens banker.

“All-Out” Service
v. o.

FIGGE

D irectors of th e b an k adopted a reso ­
lutio n accepting w ith “deep re lu c t­
an ce” th e resig n atio n of Mr. Adler.
No o th er changes in th e officer p e r­
sonnel of th e b an k w ere m ade. O ther
officers are: Dr. K uno H. Struck, vice
president; H erm an Staak, cashier; F re d
G ruenw ald and A. H. Hiegel, a ssista n t
vice p residents; E d g ar H. R u n b u rg an d
A lbert P. W olters, a ssista n t cashiers;
E rn e s t H. K etelsen, auditor; J. M.
H utchinson, tr u s t officer; H. W. Braack,
A. P. Sindt, E d w ard L. Carm ody an d
K enneth C. H artm an , a ssista n t tr u s t
officers.

Increased food production is now a vital part
of our National Defense, and of America's "AllOut" aid to other democracies. Thus the farms
and feed lots in the Sioux City market are as
important as aircraft factories and munitions
plants.
"All-Out”, too, is the correspondent service
which banks obtain at the First National Bank
in Sioux City, which is equipped to handle ALL
your commercial, grain and livestock items.

MEMBER FEDERAL D EPO SIT INSURANCE CORPORATION

Appointed Auditor
A lfred E. R ugg of N evada, w ho from
1928 u n til 1932 w as connected w ith th e
F a rm e rs B ank and T ru st Com pany of
N evada, has recen tly been appointed
au d ito r of Sioux City. Mr. R ugg w as
for m an y y ears connected w ith th e
L ivestock N ational B ank of Sioux City,
cam e to N evada for th e four y e a r pe­
riod and th e n back to Sioux City,
w here he joined th e Regional A gricul­
tu ra l C redit C orporation.

IN SIOUX CITY
Northwestern Banker


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

A pril 19M

54
The principal speaker of th e evening
w as F red erick L. L udem ann, Jr., in ­
spector of th e w age an d h o u r division
for Iowa. O ther speakers included E.
W. Jones of th e Iowa-Des Moines N a­
tional B ank & T ru st Company, w ho
spoke on “D efense Law s an d Iowa
B an k s”; H. J. S tuhlm iller of F o n ta ­
nelle, vice p resid en t and tre a su re r of
th e Iow a B ankers A ssociation, and
R alph Bunce of Des Moines, deputy
su p e rin ten d en t of Iow a banks. T here
w ere also brief rem ark s by several
b an k ers of th is district. A ro u n d table
discussion w as also held d uring w hich
v arious b an king subjects w ere dis­
cussed.

Morrison to Algona
E. R. M orrison, Des Moines, recently
becam e head of th e new ly created ag ri­
c u ltu ral d ep artm en t of th e Iowa State
B ank of Algona. F o r th e p ast seven
y ears he has been th e field m an, farm

what more and more
bankers are saying
to

L o a n

A p p lic a n ts

A successful Eastern banker recently
stated in an address that bankers were
passing up many very attractive loans
based on inventory. “Almost every
commodity,” he said, “at some stage of
its manufacture provides an excellent
basis for a Field Warehouse Loan.”
And he added the further advice: “Use
only the BIG Field Warehouse Organi­
zation of proven quality.” This quali­
fication fits Douglas-Guardian like a
glove. We offer

m anager and chief ap p raiser for th e
farm d ep artm en t of th e B ankers Life
In su ran ce Com pany of Des Moines.
H e is a form er county ag en t for Kos­
su th and H um boldt counties and it
w as w hile here th a t he received recog­
nition from th e N ational Society of
A gronom y for th e best five-year record
of th e county soil im provem ent, and
for th e b est three-year county dairy
program . R. H. M iller is p resid en t of
th e Iow a S tate Bank.

New Employes
The S ecurity T ru st & Savings B ank
Shenandoah, of w hich E. C. F ishbaugh
is president, is adding tw o m en to th e
b an king staff, H ow ard Sim m ons of
M arengo, Iowa, and Dale H eim ke of
Corning.
Miss D orothy Gamble, an em ploye
of the bank, plans to resign h e r posi­
tion.

He Calls Them By Their First Names
IQWA OB MOINES NUIOMIu mW <.

t

il

>*** ■m

Over 18 Years of Experience
—references of the highest quality—a
customer list of high calibre — and
nation-wide service rendered through
15 strategically located offices.

■'*4r

4. )

# >5Is fi^
»H B »

3Ü

ü

w æ m

mm

*

Mail the Coupon
To arrange a call by a Douglas-Guardian
Field Man, without obligation . . . or ask for
our FREE BOOKLET, “Financing the Mod­
ern W ay.”

Douglas- Guardian
Warehouse Corporation
Suite 1104A— 100 W. Monroe St., Chicago, 111.
118 No. Front St.. New Orleans, La.
New York, N. Y.
Dallas, Tex.
Springfield, Mass.
Tampa, Fla.
Rochester, N. Y.
Easton, Md.
Memphis. Tenn.
Los Angeles, Cal.
Cleveland, O.
Springfield, Mo.
San Francisco, Cal.
Atlanta, Ga.
Portland, Ore.

Douglas-Guardian Warehouse Corp.
Suite 1104A— 100 W est Monroe Street,
Chicago, Illinois
( ) O.K. to have your Douglas-Guardian
man call. (W ithout obligation.)
( ) Send your booklet “Financing the
Modern W ay.”
Bank
Address
I For Attention of.

M\mm m ■
Northwestern Banker

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

A pril 19bl

I F you are th e presid en t of a bank
I h aving a personnel of 175 employes,
m ore or less, can you recognize them
on th e stre e t or in th e bank, and call
th em all by th e ir first nam es? Not
m any p residents can, probably, b u t
H erbert H orton, p resident of the IowaDes M oines N ational B ank & T ru st
Com pany, has found a w ay to do it and
it w orks for him.
Above you see Mr. H orton looking
a t a p ictu re w hich hangs in his office.
T his p ictu re is m ade up of 200 sm aller
pictures, each of th e sm aller ones being
a likeness of th e 25 officers and 175
em ployes of his bank. T he pictures
of th e b an k personnel w ere tak en at
his or h er desk or post of duty.

F riendliness, like charity, begins at
home. It is Mr. H o rto n ’s feeling th a t
for b ank em ployes to be on friendly
term s w ith custom ers, th ey should
first of all be friendly am ong th em ­
selves. In his visits to th e various de­
p artm en ts of th e in stitu tio n , he w anted
to be able to call everyone by his or
h er first nam e, b u t som etim es he w as
unable to do it. So he conceived the
idea of hav in g an individual p icture
of everyone in th e b an k placed in his
office. T hen w hen he couldn’t call a
nam e, as soon as he got back to his
office he w ould look up th e p erso n ’s
pictu re and associate th e nam e w ith
the face. He tra in e d him self so well
th a t now he never needs to refer to
the p ictures—he can nam e them all.

55

•
Change at Ellsworth
L aw rence Doden of L ang w o rth y has
tak en over th e d uties of cashier of
the F a rm e rs S tate B ank a t E llsw orth.
He tak es th e place of Jam es Gray, who"
has gone to th e F irs t N ational B ank in
W est Des M oines to accept th e cash­
ie r’s position.

Death Takes Miss Raymond
Miss M yrtle M. Raym ond, 65, a ssist­
a n t cashier of th e F irs t S ecurity B ank
and T ru st C om pany of C harles City,
passed aw ay about 4:30 o’clock Sunday
aftern o o n a t th e P a rk H ospital in Ma­
son City, w h ere she had been a p atien t
since F e b ru a ry 9th.

NEWS

*

J. L. Campbell, vice presid en t of th e
H um boldt County B ankers Associa­
tion, and cashier of th e local T ru st and
Savings Bank, called th e m eeting to
order, and the address of welcom e w as
given by E. O. N ervig, p resid en t of th e
county association.
T alks on “D efense Loans and Iowa
B an k s” w ere given by C. W. Gadd, vice
p resid en t of th e S tate B ank a t F o rt
Dodge, and M arvin Selden, vice p resi­
den t of th e M erchants N ational B ank
a t Cedar Rapids.
A talk on “The W age and H our Act
and B an k s” w as given by F red Lude-

Remodeling

m an, and the subject, “An Im p o rtan t
B anking M easure,” w as used as th e
basis for a talk given by R alph Bunce,
deputy su p erin ten d en t of banks a t Des
Moines. G reetings and one m in u te re ­
m ark s w ere given by H. J. Buell of th e
W ebster City F a rm e rs N ational Bank,
J. F. H am m of th e L iverm ore State
Bank, E. H. Z u errer of th e F o rt Dodge
N ational B ank and Ben Olson of th e
Security Savings B ank a t E agle Grove.
F ra n k W arner, secretary of th e State
B ankers A ssociation, gave a sh o rt talk,
and an inform al ro u n d table on v a ri­
ous subjects w as held. P receding ad-

H e a d q u a r te r s

C onsiderable rem odeling w o rk has
been done a t th e O akland Savings
Bank. The high iron railin g an d b ar
w indow s betw een th e w all and lobby
of th e b an k is being rem oved an d re ­
placed by a low er, head-high railing.
In addition, th e p re se n t lig h tin g fix­
tu re s are being replaced w ith four
new fluorescent lights.

For

N o rth e a s te rn
Iow a B a n k e rs

Anniversary
The F a rm e rs State Savings B ank of
Independence observed an a n n iv e rsa ry
recently, giving, as it says, “T w enty
years of continuous service.” E. F.
Sorg, presid en t, rep o rts loans a re on
th e increase, and his b an k is tak in g
care of th e dem and. E a rly last m o n th
deposits of th e F arm e rs State Savings
stood a t $2,300,000. W ith Mr. Sorg as
presid en t, o th er officers are E. E. E v e r­
ett, vice president; C. L. F iester, cash­
ier, and P. E. Sorg, a ssista n t cashier.

IOWA

★

★

★
This bank, w ith the a d v a n ta g e s of quick,

★

efficient serv ices a n d com p lete facilities, is

Inter-County Meeting
Seventy-five b an k ers from th e coun­
ties of H am ilton, H um boldt, W ebster
an d W rig h t recen tly a tten d ed a m eet­
ing in th e basem en t of th e Legion
B uilding in H um boldt. The H um boldt
C ounty B an k ers A ssociation acted as
host of arran g em en ts.
A t 5:00 o’clock in th e evening th e
ban k ers reg istered a t H otel H um boldt
and a t 6:15 o’clock a “dutch tr e a t” d in ­
n e r w as enjoyed. D uring th e d in n er
m usic w as fu rn ish ed by H al S te w a rt’s
orchestra.

★

the lo g ic a l c h a n n el for your N ortheastern

★

Iow a b u sin ess.

THE NATIONAL BANK

OF WATERLOO

Banks Sold or Bought!
q u ie tly, q u ickly an d in

a

personal

m an ne r

JAY A. WELCH
Haddam, Kansas
“35 years Practical Banking
Experience

Member— Federal Reserve System
Member— Federal Deposit Insurance Corporation

Northwestern Banker

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

A pril 19'/1

56

IOWA

NEWS

Pidgeon, second vice president; J. N.
Coffey, recording secretary; J. R. Astley, corresponding secretary; V. T.
B onnett, tre a su re r, and P. B. H arrison,
auditor.

jo u rn m e n t of th e m eeting, th e group
officers w ere introduced, J. R. Cornell
of S pirit L ake and H a rry H uff of F o rt
Dodge.

Mrs. Johns Elected
Mrs. E m m e tt E. Jo h n s w as elected
presid en t of th e L adies of th e Des
M oines B an k ers Club follow ing a re ­
cent luncheon m eeting in th e Y ounker
Tea Room a t Des Moines.
O ther new officers include M esdam es
Jo h n DeJong, vice president; Scott C.

Sectional Meeting
More th a n 100 b an k ers from cities
and tow ns in Jackson, Jones, D elaw are
and D ubuque counties atten d ed a sec­
tional m eeting of th e Iow a B ankers
A ssociation a t th e H otel Ju lien in
D ubuque recently.

W illiam L aw ther, Jr., p resid en t of
th e F irs t N ational B ank and of th e
D ubuque Clearing House, presided a t
th e program . S peakers included H. R.
Young, A rlington, p re sid en t of th e
state association; H. L. Bunce, Des
Moines, d eputy state su p erin ten d en t of
banking; F ra n k W arn er, Des Moines,
secretary of th e state association;
F red erick L. L udem ann, Des Moines,
of th e W ages and H ours D epartm ent,
and Chas. M cK instry, W aterloo.

Bertilson Passes Away
Oscar B ertilson, farm er, w ho lived
four m iles so u th east of Dows, passed
aw ay a t his hom e recently, follow ing
a brief illness. A t th e tim e of his death
he w as vice p resid en t of th e F a rm e rs
State Bank, a position w hich he has
held for m any years.

Independence Meeting
B uchanan C ounty B ankers A ssocia­
tion recen tly en te rta in e d b an k ers from
Black H aw k, Benton, L in n an d B u­
chanan counties a t th e Gedney H otel,
Independence. W. W. B lasier, p resi­
den t of th e association an d p resid en t
of th e Jesu p F a rm e rs S tate Bank, p re ­
sided a t th e m eeting, w hich followed
a d u tch tre a t dinner.
E. F. Sorg, p resid en t of F a rm e rs
S tate Bank, Independence, gave th e
w elcom e address. A ppearing on th e
program w ere C harles S. M cK instry,
W aterloo; M artin R. Seldon, Cedar
Rapids; F red erick L. L udem an, Jr., in ­
spector of w age and h o u r division for
Iowa; H. R. Young, A rlington; R alph
Bunce and F ra n k W arn er, Des Moines.

THE PIONEER PAVED THE WAY —
For T h e G r e a t e s t P e a c e t i m e C h a n g e in A m e r i c a n H i s t o r y
1880 to 1890— the d eca d e in Am erican history
that w itn essed the greatest p eacetim e change
that ever occurred in the ev er y d a y life of an y
nation. M illions of acres of G overnm ent land
w ere thrown open to hom esteaders and a
m ighty nation settled the "lone prairie".
S w eep in g improvem ents in farm m achinery
revolutionized farm ing m ethods. Three trans­
continental railroads w ere com pleted and v ast
n e w m arkets w ere m ade a v a ila b le for w estern
food products, both in the United States and
abroad. A population that doubled itself ev ery
few yea rs ch a n g ed its vision from sm all sca le
to m ass production m ethods.
All th ese and m any more stirring even ts ush-

ered in the era that s a w the m idw est blossom
into a great agricultural and manufacturing
em pire. The Pioneer Paved the W ay!
The Drovers N ational Bank is proud to h a v e
b een a part of that pioneering era. Estab­
lish ed in 1882, its purpose w a s to serve banks
and their customers w ho grew live stock for
the C hicago market. Its rep resen tatives cov­
ered the territory— then as now . Through all
th ese fifty-nine years, it h as continued to serve
the liv e stock industry faithfully and w e ll.
M any correspondent bankers find in Drovers
Service a reflection of this long experien ce and
close
acquain tancesh ip w ith the channels
through w hich live stock is m arketed.

Ed Kaufmann Dies
E d K aufm ann, active in th e financial
and civic life of D avenport for m ore
th a n 50 of his 76 years, died recen tly
afte r an extended illness.
Mr. K aufm ann, w ho reached th e
peak of his career as p resid en t of th e
A m erican Savings B ank & T ru st Com­
pany, had been in failing h e a lth for
m ost of a decade. H e re tire d from
business th ree y ears ago.

Former Banker Deceased
Jo h n G. Shum aker, 89, form er b a n k ­
er at C h arter Oak, died recen tly a t
H ouston, Texas.

Y ou r in q u iry w ill rece iv e p rom pt atten tion

Members, Federal Deposit Insurance Corporation

DROVERS NATIONAL BANN
DROVERS TRUST & SAVINGS BANN
U N I O N

N orthwestern Banker

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

S T O C K

April 19^1

Y A R D S ,

C H I C A G O

Fiftieth Anniversary
The H en ry County Savings B ank of
Mt. P leasan t recen tly observed th e
50th an n iv ersary of th e founding of
th e bank.
C ongratulations w ere extended by
local firm s and by outsiders. Two large
b askets of flowers, one given by th e

57

—
C entral N ational B ank an d th e o th er
by th e C entral S tates In su ran ce Com­
pany, graced th e lobby in observance
of th e event.
The capital stock of th e b an k re c e n t­
ly w as in creased to $100,000 w h en th e
b an k c h a rte r w as renew ed. T he origi­
n al capitalization fifty y ears ago w as
$36,000. In 1934 th e am o u n t w as in ­
creased by $50,000.

First National Takes
Over Northwest Savings
In Mason C ity
A nn o u n cem en t h as been m ade of
th e m erg er of tw o of M ason City’s m ost
im p o rta n t financial in stitu tio n s, th e
F irs t N ational B ank, 71 y e a r old v e t­
era n of th e c ity ’s banks, and th e N o rth ­
w est Savings Bank.

IOWA

NEWS

•

th e M cNider fam ily has n ot been ac­
tiv ely associated w ith M ason City
banking.
F illin g th e gaps in th e officialdom
an d directo rate of the old F irs t N a­
tio n al B ank w ill be th e officers and
d irectors of th e N o rth w est Savings
B ank, w ho w ill go into sim ilar posi­
tions in th e com bined in stitu tio n .
Officers of th e new b an k w ill be:
P resident, F. C. H enem an, p resid en t of
th e F irs t N ational B ank since Ja n u a ry ,
1940, an d previous to th a t executive
vice p resid en t of th e b ank for nine
years; first vice president, Dean H.
L ig h tner, p resid en t of th e N o rth w est
Savings B ank for th e p ast five years;
vice president, Carl A. P ark er, an d
cashier, W illiam W. Boyd, both of th e
la tte r reta in in g th e sam e positions
th e y h ad w ith th e old F irs t N ational
B ank, w ith C. S. Thom pson, cashier of
th e N o rth w est Savings Bank, and
D ouglas Swale of th e F irs t N ational

25 YEARS

B ank as assista n t vice presidents.
In addition to th e officers, th e direc­
to rate w ill consist of Carl H enkel an d
E a rl Sm ith from th e F irs t N ational
B ank board and Floyd E. Johnson,
Lee P. Loomis, Ja y E. Decker, Jo h n A.
Senneff, L. S. Thom pson, Rem ley J.
Glass and E. H. W agner, fo rm er m em ­
bers of th e board of th e N o rth w est
Savings Bank.
Roy Johnson, A. M. H alsor, R. E.
W iley and H. C. F ish er, all of th e F irs t
N ational Bank, w ill be a ssista n t cash­
iers of th e enlarged in stitu tio n .

Knotek Passes Away
E rn e st K notek, 55 y ears old, w ho
has been a m em ber of th e board of di­
recto rs of th e W ashington S tate B ank
since its opening in th e spring of 1932
and had tak en an active personal in ­
te re st in th e affairs of th e bank, died
recen tly a t th e W ashington county
hospital.

OF SERVICE

We Com
O u r First 2 5

Y e ars of S e r v ic e

Ttlah'mcj 11if,955
TJLlie measure of helpful financial service extended to worthy citizens by T he
FRED C. HENEM AN

W hile th e nam e of th e new an d en ­
larged in stitu tio n w ill be sim ply th e
F irs t N ational B ank, th e en tire list
of officers, d irecto rs and staff of th e
N o rth w est Savings B ank w ill be ta k e n
over into th e new in stitu tio n .
T he new b an k w ill be one of th e
larg er b an k s of th e sta te of Iow a w ith
total sta te m e n t figures ru n n in g aproxim ately 10 m illion dollars.
Also an nounced is th e re tire m e n t
from his position as ch airm an an d
m em ber of th e b oard of th e F irs t N a­
tion al B ank of Col. H anford M acNider,
son of th e late C harles H. M cNider,
w hose nam e w as for decades sy n o n y ­
m ous w ith th a t of th e F irs t N ational.
It w ill be th e first tim e since 1875 th a t
Wanted: Position as Bank Fieldman,
20 years country and city bank experi­
ence. Very successful in getting new
business. Married, 48 years old, Univer­
sity graduate, excellent health, and per­
sonality. A -l references. Address Box
1400, Northwestern Banker.

D es M oines Morris Plan Company these past twenty-five years cannot be
rightly estimated by the coldly tabulated dollars-and-cents figures on an adding
machine detail strip.
Rather one must b lo w and fully appreciate the social and economic service
performed in meeting the urgent financial needs of many applicants. Their dire
necessity for immediate funds caused by critical emergencies create over­
whelming financial obligations for men and women whose one asset is
Character and Employment.—■ “The Morris P lan” basis of credit.
Thousands of loans have been made to get necessary funds for the normal
cash demands of w age earners, salaried workers, small professional and busi­
ness men and women. A s a result The D es M oines Morris Plan Company
made an aggregate of 114,955 loans from February 21, 1916 to December 31,
1940 —

J o ta lm c j $ 2 0 ,3 7 I ,7 7 0 .8 S
Here tben is the true story of service by T he D es M oines Morris Plan Com­
pany, which pioneered easy-to-repay low-cost Character loans in Iowa and
changed thousands of worried workers in all walks of life into confident,
capable debt-free producers through its loan plan and old-fashioned pay­
day saving system.

1916 <---- S

---- >1941

THE DES MOINES M ORRIS PLAN COMPANY
Northwestern Banker


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

A pril 19bl

58

-•
Meeting at Sigourney
A n inter-county m eeting of b an k ers
from Iowa, Johnson, K eokuk an d P ow ­
eshiek counties w as held in S igourney
recently, w ith 77 persons, including
ban k ers and th e ir w ives presen t. Also
in atten d an ce w ere re p re se n ta tiv es of
the Iow a B anking A ssociation from
Davis, L ynn, L ouisa an d Polk counties.
P resid in g a t th e after-dinner p ro ­
gram w as B. D. H elscher, p resid en t of
th e K eokuk C ounty S tate B ank. He
in tro d u ced th e delegations an d v isit­
ors and p resen ted C. C. W illiam son,
vice p resid en t of th e F irs t T ru st an d

IOWA

NEWS

•—

U nion Savings Bank, w ho gave the
out th a t th e fellow ship, derived by
address of welcome.
such m eetings as th e one held here,
M ax von Schrader, cashier of th e
is im p o rtan t and beneficial to th e b a n k ­
U nion B ank and T ru st Com pany of ers. H en ry von Aswege, cashier of th e
O ttum w a gave a talk on “Defense
V ictor S tate Bank, rep resen tin g Iow a
Loans and Iow a B anks.”
county, spoke on th e “U niversal Serv­
The principal address of th e evening
ice C harge” an d Mr. H elscher in tro ­
w as given by H arold C henhall, inspec­ duced P. T. G rim es of Davis county;
to r of th e W age and H our division for
E d w ard Shaw of Bloomfield, ch airm an
Iowa, w ho spoke on “T he W age and
of group 10; Lee H ouston an d C. W.
H o u r Act and B anks.”
Fow ler, b an k exam iners, and F. S.
H.
B. H am m er, executive vice p resi­ B ridger of th e U nion Savings B ank a t
d en t of th e S tate B ank of W apello, and
R ichland, K eokuk county re p re se n ta ­
vice p resid en t of th e organization of tive, w ho responded w ith a few b rief
Officers of C ounty B ankers A ssocia­ rem arks.
tions, gave a talk in w hich he pointed
T he concluding address of th e eve­
ning w as given by F ra n k W arn er of
Des Moines, secretary of th e Iow a
B ankers A ssociation, w ho com pli­
m ented th e Sigourney ban k ers as fine
hosts.

N EW S A N D VIEW S
(C ontinued from page 48)
“Our old fo rm of gov e rnm e nt is gone
and a Socialist Labor Party, dictated
by a m a n hell-bent for w ar and w hole­
sale m u rd e r of our youth, has taken its
place.”

CLOSE

TO

BASI C

C H I C A G O ’S

INDUSTRIES

N ext fall Chicago will entertain the 67th Annual Convention of
the American Bankers Association. To local bankers this event is
important. To Chicago, it is that and more . . . for it is an inte­
gral part of what amounts to a basic industry. Over the last decade
the average number of conventions held in Chicago has passed
800 a year and the visitors thus accounted for have averaged al­
most one MILLION. Few things, we believe, equal these facts in
pointing up the importance to bankers of selecting Chicago
correspondents. And as one of Chicago’s major banks, the Ameri­

R obert Gueiroard, a young F re n c h
lieutenant, is now studying a t the
H a rv a rd B usiness School, and in th e
m ost recen t issue of th e H a rv a rd B usi­
ness School B ulletin, he m ade th is in ­
terestin g statem en t about how m uch
easier it w ould be for H itler to invade
th e U nited States th a n for him to in ­
vade E ngland, assum ing first th a t he
has conquered E ngland. H ere is w h at
L ieu ten an t G ueiroard says:
“I am con vin ced th at it is m uch
m ore difficult for the Germ ans to cross
the E n g lish C hannel and in vade the
B ritish Isles than, once E ngland is
invaded, to cross the A tlantic and in ­
vade th e U nited States. B ritain ’s de­
fen se can be concentrated on h er ‘tight
little island, w h ereas our d efen se has
to be spread over an entire con tinent.
It is m aterially im possible for us to
guard our coasts as efficiently as the
B ritish guard th eirs.”

can National cordially invites you to visit it and m eet its officers
while attending the A. B. A. Convention.

Cross Reference

AMERICAN NATIONAL BANK
A N D TRUST C O M P A N Y

“These dictionaries m ake me tired!”
“W hy so?”
“W hen I looked for ‘sea o tte r,’ it
said, ‘look u n d er w ater.’ ”

M e m b e r F e d e ra l D e p o s it In s u ra n c e C o rp o ra tio n

LA

S A L L E

S T R E E T

AT

W A S H I N G T O N

YO UR STATE BANKERS ASSO CIA TIO N
O FFIC IA L SA FE, V A U L T A N D
TIM ELOCK EXPERTS

F. E. DAVENPORT & CO.
OMAHA

Northwestern Banker

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

A pril 19M

59
N ational Bank, Belle Plaine, is 2 per

IO W A N EW S
FRO M

H ERE A N D TH ERE

By J . A . Sarazen, Associate Editor
J. A. SA R A Z E N

AST DES M O IN ES’ new b an k th e A m es T rust & S avings B ank to build­
Iow a S tate B ank, w ill get u n d e r ing a new b anking home. I t w ould be
w ay about th e 15th of A pril and w ill located on th e ir own lot one block
be headed by George F ram pton, form ­ n o rth of th e p resen t q u arters.
e r Lincoln, N ebraska, b anker. It w ill
be located in q u a rte rs fo rm erly occu­
B anking ho u rs a t Ames are from
pied by th e H om e Savings Bank.
9:30 a. m. to 3:00 p. m. every w orking
day of th e week.
W hile v isitin g Mr. F ram p to n , w ho
The F id elity Savings Bank, M ar­
w as su p erv isin g th e rem odeling job,
we w ere in terested in an old s ta te ­ shalltow n, has added G. A. Mote, a t­
m en t of th e H om e Savings Bank, dated torney, to th e board of directors.
J a n u a ry 31, 1916, w hich w as found in
All banks a t M arshalltow n now pay
a safe deposit box. D eposits w ere
listed a t $1,248,500. Loans w ere $1,092,- IV2 p er cent in te re st on deposits, h av ­
600 and no bonds w ere listed. Capital ing reduced from 2 p er cent th e first
w as $50,000, w ith su rp lu s an d profits of th e year.
a t $30,700. T he capital stru c tu re w ould
be considered inadeq u ate today and
A good place to let custom ers know
these figures go to show th e change you sell b an k d rafts is on th e reverse
th a t has ta k e n place in th e ban k in g side of th e deposit ticket, as is being
business in th e last 25 years. It is also done by th e B enton County State
in te re stin g to note o v erd rafts listed a t Bank, B lairstow n. Illu stra te d is th e
$2,036.50 an d rediscounts a t $22,000. savings m ade by p u rchasing bank
W. B. L utz w as p resident; H. M. m oney d rafts over post office m oney
Cohen, vice president, and B ert Mc­ o rders an d also express m oney orders.
Kee, cashier.
T he savings is often over 120 p er cent.

E

C onsideration is being given by th e

The in te re st ra te paid at th e C itizens

Federal Home Loan Bank of Des Moines
DES MOINES, IOWA

STATEMENT OF CONDITION MARCH 1, 1941
RESOURCES
Advances to Members.............................................................................................. $15,025,260.98
U. S. Government Obligations................................................................................ 1 288 000 00
Accrued Interest Receivable................................................................. ....................
81 618 41
Deferred C h arges.................. ..................................................................................
22 144 51
Cash ...........................
8,972,296.62
$25,389,320.52
LIABILITIES
Members’ Stock Subscription ............................................................................$ 2,811,900.00
Government Stock Subscription............................................................................ 7,394 900.00
^Debentures Outstanding ........................................................................................ 13,500,000.00
Premiums on Debentures..........................................................................................
24,273.74
Deposits .....................................
804,893.17
Accrued Interest Payable..........................................................................................
56,350.94
Surplus :
Reserves ......................................................................................... $501,552.34
Undivided Profits .......................................................................... 295,450.33
797,002.67
$25,389,320.52
^Participation in $90,500,000 consolidated Federal Home Loan Bank debentures out­
standing, which are the joint and several obligations of the twelve Federal Home
Loan Banks.

Northwestern Banker

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

April 19W

cent for th e first $1,000, IV2 p er cent
on the nex t $1,500 and 1 per cent on
any am ount over these figures.
Ju lian F ro st is now executive vice
presid en t and cashier of th e D ecatur
County S tate Bank, Leon, com ing here
from th e Osceola bank. Ram ond J.
Jayn e, form erly cashier a t G rand
Ju nction, has joined th e b an k as as­
sista n t cashier. E arl Van Stienberg
has succeeded Mr. Jay n e at G rand
Junction. R. K. McGee is in charge of
th e Osceola bank.

T he D ecatur C ounty State Bank,

CHATS ABOUT THE • ’PAYC” PLAN

DO YOU want new checking ac­
counts? Would you like to increase
profits ?
Proof that the “PAYC” (Pay-A sYou-Check) no-m inim um -balance
Checking Plan can do this for you
is evidenced by what it is doing for
others— now! Excerpts from bank­
ers’ letters say, “phenomenal suc­
cess with ‘PAYC’
average
balance is $82”, “ . . . . a real deposit
getter”, “ . . . . another step for­
ward”.
Convert check-cashers in your
bank into regular customers. Let
“PAYC” bring them in where they
will be exposed to all your services.
Drop me a line today for complete
in fo r m a tio n — no o b lig a tio n , of
course.
Very truly yours,
b.

j . ‘■
m

a c

M cC a r t n e y

N O T E : I f you are n o t on Mr.
McCartney’s territory, write any­
way. We will relay your letter to
the proper “U. S.” representative.

UM ITCD STA TES
CHECK

BOOK

OMAHA,

COMPANY

NEBRASKA

60

•
Leon, in stalled new low ty p e counters
a few m onths ago an d have ju s t fin­
ished rem odeling th e in te rio r of th e
bank. W alls an d ceilings w ere re-dec­
orated and new lig h t fixtures installed.
T his b an k pays no in te re st on depos­
its.
In te re s t rates a t Oskaloosa since th e
first of th e y ear is IV2 p er cent for th e
first $1,000 and 1 p er cent th ereafter.
B oth b anks at K noxville reduced in ­
te re s t ra te s from 2 to 1% p er cent th e
first of th e year.
W . T. H am ilton, local business m an,
w as added to th e b oard of d irectors

IOWA

NEWS

—

recen tly a t th e Peoples T ru st & Sav­
ings Bank, Indianola.
Surplus of $25,000 now equals the
capital at the Hartford-Carlisle S avings
B ank and $13,750 left over in undivided
profits. D eposits are $550,000, w ith
loans over $426,000.
A t th e an n u al m eeting of th e U nion
B ank & T ru st Com pany, O ttum w a,
C. C. Coupland w as elected to th e board
to succeed J. E. Espy.
A m ong ban k s paying th e ir segre­
g ated tru s t certificates in full are th e
A m es T rust & S avin gs B ank and th e
F arm ers State Bank, Dows.

FOR OUT-OF-TOWN BANKSA WAY TO INCREASED LEADERSHIP
th at this half-century-old Chicago
institution stands ready to render
friendly, efficient cooperation. Such
helpful assistance in all banking and
trust m atters aids in extending the
usefulness of the correspondent in
his community.

THE NORTHERN
TRUST COMPANY
Member Federal Deposit Insurance Corporation

Northwestern Banker

★
A pril 1941

D. O. F arley, cashier of th e Blue
G rass Savings Bank, announces th a t T.
J. B rus, presid en t of th e b an k for th e
last tw enty-tw o years, has resigned
and has been succeeded by th e form er
vice president, W . C. K autz. E d
W athan, Sr., w as m ade vice president.
N ineteen h u n d red fo rty w as an excep­
tionally good year, w ith n et earnings
th e b est since th e b an k w as organized
in 1901. D eposits w ere th e hig h est on
M arch 1st for th e last 20 years. A n­
o th er $5,000 has been tra n sfe rre d to
su rp lu s from undivided profits, b rin g ­
ing su rp lu s up to $25,000, w hich now
equals th e capital.
John Z dychnec, fa th e r of J. S. Zdychnec, cashier, R andolph S tate Bank,
passed aw ay suddenly M arch 11th a t
H astings, N ebraska. He w as 73 y ears
old.
Fred F. Kahl, form erly assistan t
cashier, M ineola S tate B ank, w as re ­
cently m ade cashier.

B oth banks a t C hariton pay 2 p er
cent in te re st on deposits. B anking
h o urs are from 9 a. m. to 2 p. m. daily.

5 0 S O U T H LA SALLE S T R E E T , C H I C A G O


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

E. C. F ish bau gh, president, Security
T ru st & Savings Bank, Shenandoah,
takes a p ersonal in te re st in his custom ­
ers by speaking to m ost every one th a t
comes in, and calls th em by th e ir first
nam e. T h at w ould come u n d er th e
heading of “b e tte r public relatio n s.”

C. H. A m ick has joined th e E m erson
b an k as bookkeeper and teller. He
w as form erly m anager of th e H en d er­
son office.

mmm

★

D eath claim ed G. H . K im ple, p resi­
d en t of th e S ecurity S tate Bank, Allerton, th e m iddle of M arch. He w as 62
y ears old and h ad been suffering w ith
a h e a rt ailm ent.

T he Colum bus Ju n ctio n State B ank
is enjoying a good local dem and, ac­
cording to L ee H u ston, cashier, espe­
cially on cattle paper. H ow ever, th e
loaning ra te on feeder p ap er has been
reduced from 6 to 5 per cent recently
he said, to m eet com petition. Depos­
its are aro u n d $770,000, w ith loans
standing aro u n d $570,000.

C H IC AG O L A N D M A R K
— the Buckingham Memorial
F o u n ta in . In the f i e l d o f
finance, too, Chicago has her
landmarks. One o f the best
known is The Northern Trust
Company, founded in 1889.

Customers measure a bank’s vitality
and importance largely by the com­
pleteness and thoroughness of its
services. T hat is one reason corre­
spondents have found a connection
w ith The Northern Trust Company
of ever-increasing value. They know

Bert B ertelso n has been elected to
th e board of directors a t th e F arm ers
S tate Bank, Dows, to succeed his b ro th ­
er, w ho passed aw ay in F eb ru ary .

Jam es H uiskam p and E d E b ersole
have been elected to th e b oard a t th e
S tate C entral Savings Bank, Keokuk.

61

•
E d w as also m ade vice p resid en t and
re ta in s th e position of cashier as well.
C en terville b an k s are paying 2 p er
cen t on deposits. B anking h o u rs here
are from 9 a. m. to 2 p. m. every
w o rk in g day.

You b a n k e rs w ho have a difficult
tim e in g ettin g y o u r w o rk done, due
to th e sh o rten in g of h ours, have a snap
com pared w ith us peddlers w ho have
to call on th e banks. W ell, if th e boss
don ’t kick, I w ill be able to te a r up
m ore tu rf.

PRESENT A N D FUTURE O F
INVESTM ENT M ARKET
(C ontinued from page 15)
B ut, in th is connection, it should be
rem em b ered th a t w hile recovery w as
slow and h e sita n t, th e depression of
th e ea rly 1930’s w as w ith o u t precedent
in Jhs severity. C onsequently, re ­
covery h ad a long w ay to go an d th e
process of re c u p e ratio n w as p erh ap s
unavoidably p ro tra c te d an d difficult.
T his in itself should m ake us slow to
p u t th e fu ll blam e for all of o u r dis­
app o in tm en ts on an y one of th ese con­
ditions—e ith e r on a ten d en cy to w ard
m a tu rity of o u r econom y or on th e
lack of confidence as to th e fu tu re of
business.
In all th ese circum stances it is not
su rp risin g th a t th e capital m a rk e t has
n ot been called upon in recen t y e a rs to
raise large sum s of new capital for p ri­
vate en terp rise. M any of th e condi­
tions discussed above still prevail.
Some, in fact, such as heav y tax atio n ,
w ill n ecessarily be accen tu ated by th e
dem ands of th e defense program . F u r ­
th erm o re, it is n o t im possible th a t to
p re v e n t a fu tu re price inflation grow ­
ing out of th e huge dem ands of th e de­
fense p ro g ram an d B ritish w ar p u r­
chases, som e action m ay have to be
ta k e n to absorb a p a rt of th e p re se n t
su rp lu s of b an k reserves. In fact, a
special re p o rt of th e F ed eral R eserve
System recom m ended c ertain definite
m eans for ab sorbing excess reserv es
in case it should becom e necessary.
A nd along w ith th is recom m endation,
th e lend-lease bill im plies th e possi­
b ility of a dim in ish in g inflow of gold.
T hese m easures, if adopted, should at
least te n d to check th e dow nw ard
tre n d in in te re st rates, if n o t to rev erse
it. If reversed, large scale fun d in g
operatio n s to reduce in te re st charges
m ay th e n be cu rtailed, an d th ese oper­
atio n s have been th e m ain stay of th e
in v e stm e n t b an k in g business in recen t
years.
In view of all this, m u st w e neces­

IOWA

NEWS

•

sarily conclude th a t inv estm en t b an k ­
ing is th re a te n e d w ith extinction? To
m y m ind th a t conclusion is n ot w a r­
ran ted, although, frankly, m y p rim ary
concern is not so m uch w ith th e suc­
cess or failure of th a t business, as
such, as it is w ith th e protection of p ri­
vate enterp rise, w hich I still believe
is th e essential basis of our A m erican
economy. B ut p riv ate en terp rise de­
pends upon p riv ate investm ent, and
p riv ate in v estm en t presupposes th a t
w e m u st have some m ach in ery for
b rin g in g to g eth er b o rrow ers and in ­
v esto rs both big and little.
T his is all th e m ore im p o rtan t now
th a t th e energies of th e w hole nation,
in d u strial an d financial, are being de­
voted to th e successful prosecution of
th e p rogram of defense. In th e financ­
ing of th a t program , p riv ate capital
m u st do its p a rt if we w ish to lighten
th e already heavy bu rd en upon th e
governm ent. T h at program , quite

M e m b e r

F i n a n c i a l

D . R . W E S S L IN G , P R E S ID E N T

A

properly, relies, in th e firs t instance,
upon established in d u strial concerns,
and it w ould seem equally im portant,
in th e in te re st of n ational defense it­
self, th a t those concerns should ob­
tain m uch of th e funds req u ired to
finance expansion of p la n t or equip­
m ent, e ith er th ro u g h th e capital m a r­
k et or th ro u g h established banking
channels.
T his presupposes an active, fair,
and experienced m ach in ery for nego­
tiating, issuing, and selling securities.
F o r th a t reason, if for no other, I
seriously question th e w isdom of u n ­
d ertak in g any experim ent, certain ly
a t th is tim e, such as th e proposed plan
for th e com pulsory com petitive bid­
ding of certain classes of public u tility
securities. Such an un d ertak in g , es­
pecially if extended in scope, would, I
believe, risk m aterial cu rtailm en t of
th e existing m achinery of th e capital
m a rk e t w ith o u t an y assurance w hat-

d v e r

i s e r s

A s s o c i a t i o n

[JLLe í <jA/\olriEi, LÌ OVJCl

To Out-of-Town Banks..
S ervice . . .
We maintain an intimate, personalized cor­
respondent bank service in keeping with
modern demands.

E xperience . . .
Officials with years of country bank experi­
ence and understanding of present-day
problems are alw ays ready to give valuable
assistance.

Policy . . .
To co-operate and not compete with out-oftown banks on business which rightfully
belongs to them.

S E C U R IT Y N A T IO N A L B A N K
Sioux City
Member Federal Deposit Insurance Corporation

Northwestern Banker

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

A pril 19M

62

MERCHANTS
MUTUAL

BONDING
COMPANY
In co rp o rated 1933

Home Office
VALLEY BANK BUILDING
D es M o in es, Iow a

•

•

T h is is Io w a ’s o ld est su rety com pany.
A p ro g ressiv e com p any w ith ex p e r i­
en ced , co n serv a tiv e m an agem en t. W e
are p rou d o f ou r h u n d red and fifty
b ank agents in Iow a.
T o b e the e x c lu siv e rep resen tative of
th is com p any is an asset to you r bank.

•

•

Write to
E. H . W A R N E R
Secretary and Manager

soever th a t securities so issued w ould
be b e tte r securities for investors. P e r­
sonally, I w ould m uch p refer th e con­
tin u a tio n of negotiated sales, w here
th e in vestor has an experienced re p re ­
sen tative to p rotect his in terests in
d raw ing th e co n tract an d w here se­
c u rity as w ell as price w ill be an
im p o rtan t influence. A t th e very
least, a borrow er should be free to
choose to negotiate a sale, if he th in k s
it desirable in th e circum stances of his
ow n case.
I also believe th a t th e practice of
p riv ately placing securities should be
considered from a broad-gauged, longran g e point of view ra th e r th a n from
th e im m ediate advantage to b uyer and
seller th a t m ight re su lt in individual
cases. It is a practice w hich has
grow n up out of th e tedium and ex­
pense incident to reg istratio n in a
period of v ery easy m oney w hen large
in v estors avidly com pete for an easy
m eans of em ploying large blocks of
idle funds. Possibly no one investor
can a lte r the practice in fairness to
its ow n beneficiaries—I am not sure.
B ut I do feel th a t the public in terest
will be b e tte r served, in th e long run,
if th e practice w ere su b stan tially re ­
stricted, leaving to th e established
m ach in ery of th e capital m a rk e t both
th e capacity and th e continuing re ­
sponsibility of caring for th e needs

c N e w J o r Á s s p u la r

HOTEL

LINCOLN
4 4 thTO 45™ STS. AT 8™AVE.
OUR CHOICEST ROOMS From
1400 R O O M S each with
Bath, Servidor, and Radio.
* Fo ur fin e re s ta u ra n ts
awarded Grand Prix 1940
C u lin a ry A rt E x h ib itio n

MARIA KRAMER
*T c 1

PRESIDENT

y

John L. Horgan
Gen. Mgr.
HOTEL EDISON
SAME OWNERSHIP

piurfLiLnvnirn; n.¡11 ;. L

1 . l i m i fl I III JLU11J.

IN THE C E N T E R OF MID-TOWN NEW YORK
Northwestern Banker

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

April 19M

of large and sm all borrow ers, as well
as large and sm all investors, in both
good tim es and h ard tim es.
To keep our productive and dis­
trib u tiv e facilities going full speed w ill
req u ire large am ounts of capital. How
is it to be supplied? U nless we are to
risk an u n h e a lth y expansion of bank
credit, m uch of it m ust, of course, come
out of th e accum ulated savings from
n ational incom e, w h atev er channel is
em ployed. If those savings are to be
tak en by th e g o v ernm ent by tax atio n
or borrow ing and if th e financing of
in d u stry is th e n to be done en tirely by
th e governm ent, we w ill be resorting,
a t least tem porarily, to a form of state
socialism w hich is w holly c o n trary
to all of our trad itio n al concepts and
w hich is n ot dem anded even by th e ex­
trem e exigencies of th e p resen t situ a ­
tion. B ut if we w ant, as I presum e
we all w ant, to p reserve our system of
p riv ate en terp rise, we m u st m ake sure
th a t th e bu lk of th e savings of in ­
dividuals and business is rein v ested in
business and th a t ap p ro p riate m a­
ch in ery is available for th a t purpose.
I t is becom ing m ore and m ore ap ­
p a re n t th a t we do not have as w ide a
m argin of efficient productive capacity
as w as first thought. L arge am ounts of
capital w ill still be req u ired e ith er for
expansion or ad ap tatio n of p resen t
equipm ent if o u tp u t is to be increased
as fast as it should be to m eet defense
req u irem en ts in addition to civilian
needs.
O therw ise, cu rta ilm e n t of
civilian consum ption w ill be essential
to avoid bottle-necks or price inflation.
An increasing dem and for capital has
already been reflected recen tly in th e
revival of security financing and it is
likely th a t th e tre n d w ill continue as
the defense program progresses.
The need for a su b stan tial flow of
priv ate capital into productive em ploy­
m en t probably w ill not end w ith th e
defense program . A nother m ajor pro b ­
lem w ill have to be faced at th e end of
th e w ar and after th e com pletion of
our defense program . M uch of th e
c u rre n t expansion of p lan t an d equip­
m en t is of specialized types designed
for th e m an u factu re of w ar m aterials,
w hich u n fo rtu n ately , w ill be of little
use in th e production of goods for
civilian consum ption. T h at being so,
peace-tim e req u irem en ts m ay have to
be m et by th e enlarg em en t of ré a d a p ta ­
tion of p resen t facilities to peace needs.
C ertainly, th e p resen t diversion of pro­
ductive activities to defense needs, to ­
g eth er w ith heavy tax atio n to help pay
for it, m ay well leave a large late n t
consum er dem and a t th e end of th e
w ar. In addition to these p o tential
post-w ar dem ands for dom estic p u r­
poses, th e re w ill likely be a su b stan tial
foreign dem and for both credit and

63

•
goods if, as I hope and expect, th e
dem ocratic system is preserved.
Of course, we m ay la te r find th a t th e
volum e of idle savings m ay n o t be as
g re a t as w orld needs. V ast am ounts
of capital are being d estroyed or con­
sum ed in non-productive channels.
C onsiderable sum s of th e co u n try ’s ac­
cum u lated savings have alread y been
absorbed in financing g o v ern m en t re ­
quirem en ts. F u rth e rm o re , th e re are
some w ho still feel th a t as th e coun­
try has m atu red , o p p o rtu n ities for
p riv ate in v e stm e n t have lessened or
m ay sh o rtly disappear. In some degree
th e y m ay be rig h t th o u g h I, personally,
do not q uestion th a t new oppo rtu n ities
in th e form of new in v en tio n s and new
in d u stries w ill arise in th e fu tu re as
th e y have in th e past. Our natio n al
genius has too m uch m om entum to be­
come static overnight. B ut even if we
m u st assum e th a t th e re are long range
changes in p rogress w hich are ten d in g
to decrease new in v estm en t, as w as
th e case in E n g lan d in th e decade p re ­
ceding th e o u tb reak of th e w ar, n e v e r­
theless, as w as also tru e in E ngland,
we shall probably find th a t as new in ­
vestm en t w anes, th e slack in th e n a ­
tional incom e will be ta k e n up by re ­
placem ent and m odernization. To th e
ex ten t th a t rep lacem en t and m o d ern ­
ization are financed out of c u rre n t
earn in g s of in d u stry , y o u r business in
th e in v e stm e n t b an k in g field w ill, of
course, have to suffer.
But, for th e vario u s reasons I have
enum erated, I believe th a t d u rin g th is
em ergency, and a fte r th e em ergency
is past, we sh all have contin u in g need
for p riv ate capital an d for th e m ain ­
tenance of a capital m a rk e t m echanism
by w hich bo rro w ers and in v esto rs m ay
be b ro u g h t together. If th a t m ech­
anism is to ru n sm oothly an d ef­
fectively, it w ill req u ire n o t only a sym ­
path etic and co n stru ctiv e a ttitu d e on
th e p a rt of th e governm ent, but, even
m ore th a n th a t, it w ill req u ire an in ­
creasing effort on th e p a rt of th e
m ark e t itself to lose no o p p o rtu n ity to
im prove its ow n m echanism in order
th a t as conditions change it m ay do a
b e tte r job b oth fo r th e b o rro w er and
for th e in v estin g public. T h a t abuses
in th e p ast have in v ited gov ern m en t
in te rv e n tio n is not, I th in k , a reason to
despair.
T he g o v ern m en t has, no
doubt, done m uch to arouse a k een er
consciousness on th e p a rt of th e in ­
v estm en t ban k ers, as a whole, of th e ir
g re a te r responsibilities. Some of you
m ay feel th a t th e g o v ern m en t has gone
too fa r an d th a t som e relax atio n of
its su p erv isio n m ay now be m ore ap ­
p ro p riate th a n fu rth e r regulation. T h at
m ay be tru e. B ut I v e n tu re th e hope

IOWA

NEWS

•

th a t th e trem endous unified effort th a t
th e n atio n is now m aking for defense
in th e u tilization of its resources in
in d u stry, capital an d m an-pow er, w ill
im press upon all of us, in and out of
governm ent, th e v ital im portance of
tolerance, m u tu al u n d erstan d in g and
co-operation in order th a t each of us
m ay give th e m axim um of stren g th
an d ability to th e g reat task before
us.

Course on Government
A new course, one on “B anking and
G ov ernm ent”, w hich w ill em phasize

the relations of b anking and th e gov­
ernm ent, is announced as an added fea­
tu re of th e cu rricu lu m of The G radu­
ate School of B anking of th e A m erican
B ankers A ssociation, w hich w ill have
its 1941 resid en t session a t R utgers
U niversity, Ju n e 16th to 28th, it is
announced by Dr. H arold Stonier, di­
recto r of The G raduate School.
The course w ill be given u n d er th e
direction of Dr. P aul F. Cadman, econ­
om ist of the association, and A. L. M.
W iggins, ch airm an of th e association’s
com m ittee on federal legislation, w ho
is presid en t of th e B ank of H artsville,

Investment Service
T h e e x p e rie n c e o f sev en ty -sev en years
a n d im m e d ia te c o n ta c t w ith p rin c ip a l
cities m a k e th e services o f o u r B o n d
D e p a r tm e n t o f p a r tic u la r v a lu e to
c o rre s p o n d e n t banks*
In q u irie s b y te le p h o n e , w ire, o r m ail
are in v ite d , a n d q u o ta tio n sheets w ill
b e m a ile d o n request*
Telephone Franklin 6 8 0 0 —LD 92-93
Teletype CGO 987

BOND DEPARTMENT

The First National Bank
ofChicago
Northwestern Banker


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

April 1 9 il

64

—•
H artsville, South C arolina. Mr. W ig­
gins is in active charge of th e A. B.
A.’s legislative activities and relatio n s
w ith g o v ern m en tal d ep artm en ts an d
spends m uch of his tim e in W ash in g ­
ton.
The course w ill be a req u ired one for
senior y e a r stu d en ts and provides for
six lectu res—th re e d u rin g each w eek
of th e session. A textbook is now be­
ing p rep ared by m em bers of th e fac­
u lty of th e G. S. B. u n d e r th e su p e r­
vision of Dr. Cadm an and Mr. W iggins.
A su p p lem en tary featu re of th e
course w ill be tw o sem in ar lectu res on
th e W ash in g to n b an k in g scene as

IOWA

NEWS

•

view ed by a W ashington new spaper
w rite r w hich w ill be delivered by U.
V. W ilcox, long-tim e W ashington new s­
p ap er m an and correspondent th ere
for th e A m erican B a n k e r daily b an k ­
ing new spaper; a u th o r of th e widelyread w eekly letter, W ashington Banktre n d s and B ackgrounds, and also au ­
th o r of th e cu rre n tly p o p ular book,
“T he B ankers Be D am ned.”
E m phasizing th e im portance of th e
course, th e 1941 catalogue of T he G rad­
u ate School says: “In th e U nited States,
as elsew here th ro u g h o u t th e w orld,
theories, m ethods, and processes of
g o v ernm ent have been changing ra p ­
idly. In all th ese respects A m erican
g o v ernm ent today is quite a different
in stitu tio n from th a t of te n y ears ago.
T he n a tu re and ex ten t of these changes
are n ot fully understood, b u t th e ef­
fects are generally felt.
“W h erev er free people accept and
obey th e law th e y should be fully
aw are of and responsive to an y and all
changes in th e political in stitu tio n s
u n d e r w hich th ey live. As a basic eco­
nom ic in stitu tio n b an king has passed
th ro u g h a decade of num erous and
critical adjustm ents.

“T his course is designed to trace
briefly th e p a tte rn of A m erican politi­
cal in stitu tio n s an d to enlarge m ore
fully on th e changes w hich have oc­
cu rred since 1930. Special em phasis
w ill be laid on th e effects w hich th e
new o rder of go v ern m en t has h ad and
is having on A m erican banking.

A . I. B. Annual Convention
F ifteen h u n d red m em bers of th e
A m erican In stitu te of B anking, educa­
tional arm of th e A m erican B ankers
A ssociation, are expected to a tte n d th e
in stitu te ’s 39th an n u al convention to
be held in San F rancisco, California,
Ju n e 2nd-6th, it is announced by J.
LeRoy D art, n ational p resid en t of th e
A. I. B., w ho is vice p resid en t of th e
F lorida N ational Bank, Jacksonville,
Florida.
The p rogram for th e convention is
being a rran g ed by a special com m ittee
u n d er th e ch airm an sh ip of George T.
Newell, vice p resid en t of th e in stitu te,
w ho is vice p resid en t of th e M anufac­
tu re rs T ru st Company, New Y ork City.
T he five-day m eeting w ill give th e

Douglas-Guardian Chicago Meeting

Fidelity & Surety Bonds
Blanket Bonds
Burglary & Forgery
Insurance

☆
U RING F eb ru ary , th e b ran ch m an ­
agers of D ouglas-G uardian W are­
house C orporation, and in a few cases
som e of th e ir assistan ts, m et in Chi­
cago for a th ree day convention. The
m eetings w ere devoted to th e m any
D ouglas-G uardian services to th e b ank
an d th e m an u factu rer or producer.
A t th e m eeting w ere rep resen tativ es
from all fifteen of th e b ran ch offices,
and all appear in th e pictu re except
T hom as M oulin of th e T am pa office.
H ere are th e nam es of th e DouglasG uardian m en (and w om en) show n in
the picture. F in d th e pictu re of th e
m an w ho w rites or calls on you. To
th e left of th e display an d reading

D

NAT I ONAL

S URETY

CORP ORATI ON
VINCENT CULLEN
President

Northwestern Banker

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

April 19^1

from left to rig h t, those standing are:
I). C. D ick in son, H. W . P retzel, E. R.
K ubecker, Boyd D icus, O. B. B nrdick,
R. A. Barton, W. S. T hom pson, A. J.
W alker, S. D. H art. Those sittin g are:
R obert Ruffin, D. J. H assel, D. B. MacDuff, Mrs. A. K. L aing, H. F. Scherer,
Jay W eil, P resid en t. To th e rig h t of

the display reading from left to right.
S tanding are: T. E. W h eed leton , J.
L eitch, E d w in H orvath, K. A. Camp­
bell, J. K. Sim pson, E. C. Y uille, F. J.
C artw right, A lan V aliant, E. C. T hom ­
son, Edw ard Schneider. Sitting are:
E. A. Baker, V ice P resid en t, M iss H.
Johns, G. R. Bodet, Mrs. V. W. D ow ry,
C. E. Gartm an, Fred B. McClure.

65

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i n s t i t u t e ’s m e m b e r s w h o a t t e n d th e
c o n v e n tio n a n o p p o r t u n i t y to h e a r P .
D. H o u s to n , p r e s i d e n t of t h e A m e r ic a n
B a n k e r s A s s o c ia tio n ; D r. R o b e r t G.
S p ro u l, p r e s i d e n t o f t h e U n iv e r s it y of
C a lifo rn ia ; D r. H a r o ld S to n ie r , e x e c u ­
tiv e m a n a g e r o f t h e A m e r ic a n B a n k ­
e r s A s s o c ia tio n , a n d D r. W illia m A.
I r w in , n a t io n a l e d u c a tio n a l d ir e c to r of
t h e A. I. B., a ll o f w h o m w ill a d d r e s s
t h e o p e n in g s e s s io n . I n a d d itio n , R o b ­
e r t S tr ic k la n d , p r e s i d e n t o f t h e T r u s t
C o m p a n y o f G e o rg ia , A tla n ta , G e o rg ia ,
w ill s p e a k a t t h e c o n v e n tio n ’s fin a l
b u s in e s s s e s s io n .
T w o f o r e n s ic c o n te s ts , o n e t h e i n s t i ­
t u t e ’s a n n u a l d e b a tin g m a tc h a n d t h e
o th e r its a n n u a l p u b lic s p e a k in g c o n ­
te s t, w ill b e h e ld . W i n n e r s o f t h e p u b ­
lic s p e a k in g e v e n t w ill r e c e iv e t b e
a n n u a l A. P . G ia n n in i c a s h p r iz e s , a n d
t h e w i n n i n g d e b a te te a m w ill b e
a w a r d e d t h e i n s t i t u t e ’s c h a m p io n s h ip
cu p .
D e p a r t m e n ta l a n d i n s t i t u t e c o n f e r ­
e n c e s w ill b e h e l d th r o u g h o u t t h e c o n ­
v e n tio n . S u b je c ts to b e c o n s id e r e d in
th e d e p a r t m e n t a l c o n f e r e n c e s in c lu d e
b a n k o p e r a tio n s , c r e d its , s a v in g s b a n k ­
in g , t r u s t b u s in e s s , b a n k m a n a g e m e n t,
b u s in e s s d e v e lo p m e n t a n d a d v e r tis in g ,
a n d i n v e s tm e n ts a n d i n v e s t m e n t b a n k ­
in g . P a n e l d is c u s s io n s w ill b e h e l d o n
e a c h o f th e s e s u b je c ts .
T h e i n s t i t u t e c o n f e r e n c e s w ill f e a ­
t u r e in d iv i d u a l a d d r e s s e s o n b a n k i n g
e d u c a tio n , p u b lic r e la tio n s , p u b lic
s p e a k in g , d e b a tin g , c h a p t e r a d m in is ­
tr a t i o n , a n d c h a p t e r p u b lic ity , a n d
t h e r e w ill b e a s p e c ia l w o m e n ’s c o n ­
f e r e n c e . C a u c u s e s f o r t h e a n n u a l e le c ­
tio n o f o fficers a n d e x e c u tiv e c o u n c il
m e m b e r s o f t h e i n s t i t u t e w ill b e h e ld
T h u r s d a y e v e n in g , J u n e 5.
T h e e n te r ta in m e n t fe a tu re s th a t h a v e
b e e n a r r a n g e d f o r t h e c o n v e n tio n i n ­
c lu d e a s ig h t s e e in g t r i p o f S a n F r a n ­
cisco , a “w ild w e s t ” ro d e o a n d d in n e rd a n c e , a t w h ic h t h e G o ld e n G a te c ity
w ill b e h o s t, a n d t h e i n s t i t u t e ’s a n n u a l
b a ll, to b e h e ld t h e e v e n in g o f t h e
c o n v e n tio n ’s c lo s in g d a y .

Annual Meeting
A t a n a d j o u r n e d a n n u a l m e e ti n g of
th e E x c h a n g e S ta te B a n k o f E x ir a ,
Io w a , t h e fo llo w in g o ffic ers a n d d ir e c ­
t o r s w e r e e le c te d f o r th e e n s u in g y e a r:
P r e s id e n t , J o h n D e la h o y d e ; v ic e p r e s ­
id e n t, C. K . C u llin g s ; c a s h ie r , R . M.
A n d e r s e n ; a s s i s t a n t c a s h ie r , K a t h r y n
C a n n o n . D ir e c to rs : J o h n D e la h o y d e ,
E llo w e n e D e la h o y d e , C. K . C u llin g s , E .
S. V a n G o rd e r, J r ., a n d R. M. A n d e r s e n .
J o h n D e la h o y d e is a r e s i d e n t o f H o lly ­
w o o d , C a lifo rn ia , a n d w ill n o t b e a c tiv e
in t h e b a n k .

IOWA

NEWS

•-

Auditors to Convene
F . V. G ra y s o n , a u d ito r , T h e F e d e r a l
R e s e r v e B a n k of C le v e la n d , a n d g e n ­
e r a l c h a ir m a n f o r t h e S e v e n th A n n u a l
M id -C o n tin e n t C o n fe re n c e o f th e N a ­
tio n a l A s s o c ia tio n of B a n k A u d ito r s
a n d C o m p tro lle r s , w h ic h w ill b e h e ld
in C le v e la n d , O hio, o n M a y 15 th , 1 6 th
a n d 17 th , h a s is s u e d a s p e c ia l in v i t a ­
tio n to e a c h b a n k in t h e F o u r t h F e d ­
e r a l R e s e r v e D is tr ic t.

M r. G ra y s o n , w h o is a p a s t n a t io n a l
p r e s id e n t o f t h i s o r g a n iz a tio n , is a ls o
s e n d in g h is s p e c ia l in v ita tio n , t h r o u g h
t h e fo rty - s ix o r g a n iz e d c o n f e re n c e s , to
e v e r y b a n k in th e c o u n tr y . H e in v ite s
t h e b a n k e r s to p a r ti c ip a te in t h i s R e ­
g io n a l C o n fe re n c e , a n d u r g e s th e m to
s p e n d t h r e e d a y s in th e s e r io u s d is ­
c u s s io n o f e ffe c tiv e o p e r a tio n a n d c o n ­
t r o l m e th o d s f o r t h e i r b a n k s . I n a d d i­
tio n , a c o m p le te e d u c a tio n a l d is p la y of
m o d e r n b a n k e q u ip m e n t, m e th o d s , a n d

M ail and Messenger Division

Continental Illinois
N ational Bank
and T rust Company
of Chicago
Member Federal Deposit Insurance Corporation

N o r th w e s te r n B a n k e r

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

A p r il 19H

66

FAR MORE TO OFFER BOT
FAR FROM BEING EXPENSIVE
Opportunities for all sports
and recreations. Curative min­
eral w aters. Air conditioned
sleeping rooms ... Write for
information or reservations.

f o rm s w ill b e e x h ib ite d b y le a d in g
m a n u f a c tu r e r s .
T h e c o m m itte e in c h a r g e o f th e p r o ­
g ra m h a s se c u re d sp e a k e rs of ex cep ­
tio n a l a b ility in t h e i r r e s p e c tiv e field s.
T h e s u b je c ts h a v e b e e n c a r e f u lly s e ­
le c te d so a s to f u r n i s h t h e g r e a t e s t
i n t e r e s t f o r th e la r g e s t n u m b e r w h o
w ill a tte n d .
A m o n g th o s e w h o h a v e a c c e p te d a s ­
s ig n m e n ts o n t h e p r o g r a m a re : P . O.
N e w to n , a u d ito r , F i r s t N a tio n a l B a n k ,
D a lla s , T e x a s ; C. S. C o n k lin , T h e F i r s t
N a tio n a l B a n k , A tla n ta , G e o rg ia ; E . R.
W a tk in s , c a s h ie r , T h e M a h o n in g N a ­
tio n a l B a n k , Y o u n g s to w n , O hio; J o h n
D risc o ll, J r ., C. P . A ., P h ila d e lp h ia ,
P e n n s y lv a n ia ; E a r l F a ilo r , v ic e p r e s i ­
d e n t, T h e N a tio n a l B a n k o f D e tr o it,
a n d a n u m b e r of o th e r m e n of e x c e p ­
tio n a l a b ility .
T h e p r o g r a m , w h ic h
w ill b e c o m p le te d so o n , w ill re c e iv e
w id e p u b lic ity .
F . L . C h a m b e rla in , a u d ito r , T h e
C le v e la n d T r u s t C o m p a n y , is c h a i r ­
m a n o f t h e p r o g r a m c o m m itte e . E . J.
K ra u s e , a u d ito r , T h e N a tio n a l C ity
B a n k o f C le v e la n d , is c h a ir m a n o f e n ­
t e r t a in m e n t.

Agricultural Honor Roll

™eELMSh»tei
Over a Century of Service

The American Bank
Reporter
Published March, July, November
New Edition Ready

Contents
A co m p lete list of b a n k s , b a n k e rs , s a v ­
in g s b a n k s a n d trust c o m p a n ie s in the
U nited S tates, C a n a d a a n d p rin c ip a l cities
of fo reig n co u n tries, w ith n a m e s of offi­
cers, c a p ita l, su rp lu s a n d u n d iv id e d
profits, lo an s, d ep o sits, secu rities, c a s h
a n d d u e from b a n k s , m em b ers of the F e d ­
e ra l D eposit In su ra n c e C orporation,
p rin c ip a l co rre sp o n d en ts,
a tto rn e y list, etc.
NEW COMPLETE EDITION
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American Bank Reporter
420 EAST 149th STREET
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N o r th w e s te r n B a n k e r

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

A p r il 19^1

T h e b a n k s o f f o u r n e w s ta te s h a v e
a t t a i n e d th e h o n o r r o ll o f t h e A g r ic u l­
t u r a l C o m m is s io n o f t h e A m e r ic a n
B a n k e r s A s s o c ia tio n a n d tw e n ty - f o u r
s ta te s t h a t r e a c h e d t h e h o n o r r o ll in
p r e v io u s y e a r s h a v e m a in ta in e d t h e i r
h ig h r e c o r d o f a g r i c u l t u r a l a c tiv itie s ,
i t is a n n o u n c e d b y D a n H . O tis, d ir e c ­
t o r o f th e c o m m is s io n .
T h e n e w s ta te s to re c e iv e th e h o n o r
r a t i n g a r e Illin o is , M is s is s ip p i, M o n ­
ta n a , a n d P e n n s y lv a n ia . T h e i r r a t i n g
is b a s e d u p o n t h e i r h a v i n g a c h ie v e d a
o n e th o u s a n d p o in t g o a l b y f u lfillin g
th e
c o m m is s io n ’s r e q u i r e m e n t s of
b a n k e r - f a r m e r c o o p e r a tio n . T h e s e r e ­
q u ir e m e n ts in c lu d e b a n k p a r ti c ip a tio n
in 4-H C lu b w o rk , c o o p e r a tio n w i t h
c o u n t y a g r i c u l t u r a l a g e n ts , a t te n d a n c e
a t a g r i c u l t u r a l m e e tin g s , a m in im u m
e x p e n d itu r e p e r b a n k in f a r m w o rk ,
s e le c tio n o f k e y b a n k e r s f o r f a r m w o r k
in e a c h c o u n ty o f t h e s ta te , a n d a s u c ­
c e s s f u l r e c o r d o f e n c o u r a g in g sp e c ific
f a r m in g p r o je c ts .
A n o u ts t a n d in g f e a t u r e o f th e y e a r ’s
a c c o m p lis h m e n ts is th e f a c t t h a t f o r
t h e t e n t h c o n s e c u tiv e y e a r , t h e s ta te of
N o r t h D a k o ta h a s a t t a i n e d t h e h o n o r
ro ll. S p e c ia l h o n o r s w ill b e a c c o rd e d
t h e s ta te in S e p te m b e r a t t h e n e x t a n ­
n u a l c o n v e n tio n o f th e A m e r ic a n B a n k ­
e r s A s s o c ia tio n . N o r t h D a k o ta is th e
t h i r d s t a t e to a c h ie v e t h i s te n - y e a r r e c ­
o rd . G e o rg ia s u c c e e d e d a y e a r a g o a n d
n o w h a s e le v e n c o n s e c u tiv e y e a r s to
its c r e d it.
O re g o n r e a c h e d t h e te n y e a r m a r k tw o y e a r s a g o a n d n o w h a s
tw e lv e c o n s e c u tiv e y e a r s o f h o n o r
b a n k e r - f a r m e r a c c o m p lis h m e n ts .

Demand for Homes
A la r g e r p o te n tia l d e m a n d f o r h o m e s
is e x p e c te d in t h e d e c a d e b e t w e e n 1940
a n d 1950 b e c a u s e o f t h e a n t ic i p a te d i n ­
c r e a s e in th e n u m b e r o f m a r r ia g e s , th e
F e d e r a l H o m e L o a n B a n k R e v ie w s a id
in a s tu d y o f n e w c e n s u s r e s u l t s a n d
t h e i r e ffe c t o n h o u s in g .
A c c o rd in g to p r e l i m i n a r y d a t a o f th e
C e n s u s B u r e a u o b ta in e d b y t h e R e ­
view , t h e n e x t te n y e a r s w ill se e a
c o n s id e r a b le in c r e a s e in t h e n u m b e r o f
p e r s o n s in m a r r ia g e a b le a g e s.
The
R eview a r ti c le s a id :
“T h e n u m b e r of p e r s o n s m o s t lik e ly
to m a r r y in th e e a r ly y e a r s of t h e p r e s ­
e n t d e c a d e — p e r s o n s in t h e a g e g r o u p
f r o m 20 to 24 y e a r s — n u m b e r e d 11,560.000 in 1940 a s c o m p a r e d w i t h 10,870.000 p e r s o n s o f b o th s e x e s in t h e
s a m e a g e g r o u p in 1930. T h e n u m b e r
o f p e r s o n s m o s t lik e ly to m a r r y in t h e
l a t t e r p a r t o f t h e p r e s e n t d e c a d e —-per­
s o n s w h o w e r e 14 to 19 y e a r s o ld in
1940— n u m b e r e d 14,760,000 a s a g a in s t
13.930.000 in t h e s a m e a g e g r o u p t e n
y e a r s b e fo re .
“ F r o m 1950, h o w e v e r, t h e a g in g of
o u r p o p u la tio n w ill h a v e a n a d v e r s e
e ffe c t o n t h e d e m a n d f o r h o m e s b e ­
c a u s e a p r o g r e s s iv e ly s m a lle r n u m b e r
o f p e r s o n s w ill r e a c h m a r r ia g e a b le
a g e s — a r e s u l t of t h e d e c lin in g b i r t h
ra te .”
T h is p h e n o m e n o n o f a n “a g in g p o p ­
u l a t i o n ” m a y a ffe c t t h e h o u s in g s i t u a ­
tio n m a te r ia lly in o th e r w a y s , t h e R e ­
view w a r n e d . C e n s u s fig u re s s h o w
t h a t th e p o p u la tio n o f t h e U n ite d
S ta te s c o n ta in s a g r o w in g p r o p o r ti o n
o f o ld e r p e o p le a n d a s m a lle r p r o p o r ­
tio n of y o u n g p e o p le .
T h e R eview
sa id :
“T h e g r a d u a l a g in g o f o u r p o p u la ­
tio n , d u e to b o th lo w e r b i r t h r a t e s a n d
im p r o v in g m o r t a l i t y r a te s , w ill u n ­
d o u b te d ly h a v e i m p o r t a n t e ffe c ts o n
th e ty p e s o f liv in g q u a r t e r s r e q u ir e d .
U n le s s t h e c o m b in a tio n o f tw o f a m ilie s
in o n e h o u s e h o ld —r e t i r e d p a r e n t s liv ­
in g w i t h t h e i r c h i ld r e n — b e c o m e s m o r e
f r e q u e n t t h a n it is to d a y , w e m a y e x ­
p e c t a r is in g d e m a n d f o r s m a ll d w e ll­
in g u n i t s to h o u s e t h e o ld e r p e o p le .
“T h e n u m b e r o f r e t i r e d p e r s o n s s e e k ­
in g a c c o m m o d a tio n s a w a y f r o m th e
h u s tl e o f th e c ity , in a r e a s o f f a v o r a b le
c lim a te a n d lo w liv in g c o s ts , w ill v a s t ­
ly in c re a s e . T h is in its e lf w ill t e n d to
r e s t r i c t t h e g r o w t h o f c itie s a n d to
h a s t e n t h e d e v e lo p m e n t o f r e s o r t
a r e a s .”
F r o m 1930 to 1940, t h e n u m b e r of
f a m ilie s in t h e U n ite d S ta te s in c r e a s e d
a t a r a t e m o r e t h a n tw ic e a s f a s t a s
t h e to ta l p o p u la tio n , a c c o m p a n ie d b y
a c o n s id e r a b le r e d u c tio n in t h e a v e r a g e
f a m ily size. A s t h e siz e o f h o u s e s in
d e m a n d a n d t h e n u m b e r o f r o o m s n o r-

67

•
m a lly n e e d e d a r e d e t e r m in e d b y t h e
ty p ic a l siz e o f o u r fa m ilie s , t h e R eview
sa id , “T h is te n d e n c y t o w a r d s s m a lle r
h o u s e h o ld s is a n i m p o r t a n t f a c to r to b e
c o n s id e r e d in h o m e c o n s tr u c tio n a n d
h o m e -fin a n c in g a c tiv itie s . I t is o n e of
t h e r e a s o n s w h y t h e m a r k e t f o r la r g e r
s in g le - fa m ily h o m e s d a t in g f ro m e a r ­
lie r p e r io d s is so n a r r o w to d a y .”
F o r t h e f ir s t tim e in 100 y e a r s , a c ­
c o r d in g to c e n s u s fig u re s q u o te d b y
th e R e v ie w a r tic le , t h e r e a p p e a r e d to
h a v e b e e n a h a l t d u r in g th e p a s t d e c ­
a d e in th e p r o g r e s s o f u r b a n iz a ti o n
w h ic h h a d a c c o m p a n ie d o u r g r e a t i n ­
d u s tr ia l e x p a n s io n in t h e p a s t.
T h e p r o p o r ti o n o f u r b a n p o p u la tio n
to t h e to ta l p o p u la tio n d e c lin e d m o s t
h e a v ily in th e o ld e r a n d m o r e w id e ly
u r b a n iz e d a r e a s s u c h a s f o u r N e w
E n g la n d s ta te s (N e w H a m p s h ir e , M a s ­
s a c h u s e tts , C o n n e c tic u t a n d R h o d e I s ­
la n d ) , N e w Y o rk , N e w J e r s e y , P e n n ­
s y lv a n ia , O h io a n d M ic h ig a n .
O ffs e ttin g t h i s w a s a n in c r e a s e in
u r b a n iz a ti o n in so m e p a r t s o f t h e
s o u th a n d in so m e w e s t e r n s ta te s .

Field Warehousing Study
A s tu d y o f field w a r e h o u s i n g h a s
b e e n c o m p le te d b y a s p e c ia l c o m m it­
te e o f t h e B a n k M a n a g e m e n t C o m m is ­
s io n o f t h e A m e r ic a n B a n k e r s A s s o c ia ­
tio n a n d a b o o k le t c o n t a in i n g th e r e ­
s u lts o f t h e s tu d y is n o w b e in g s e n t to
th e e n t i r e m e m b e r s h ip o f t h e a s s o c ia ­
tio n , i t is a n n o u n c e d b y J. H a r v ie W il­
k in s o n , J r ., v ic e p r e s i d e n t o f th e S ta te P la n te rs B a n k a n d T ru s t C om pany,
R ic h m o n d , V ir g in ia , w h o is c h a ir m a n
o f t h e c o m m is s io n .
T h e s p e c ia l c o m m itte e o f fie ld w a r e ­
h o u s in g e x p e r ts w h o p r e p a r e d t h e
s tu d y in c lu d e s W illia m H . M ille r, v ic e
p r e s i d e n t o f t h e C ity N a tio n a l B a n k
a n d T r u s t C o m p a n y , C h ic a g o , c h a i r ­
m a n ; H a r r i s C. K ir k , v ic e p r e s id e n t of
t h e A m e r ic a n T r u s t C o m p a n y , S a n
F r a n c is c o , a n d J . L. D a r t, v ic e p r e s i ­
d e n t o f th e F lo r i d a N a tio n a l B a n k ,
J a c k s o n v ille , F lo rid a .
“T h e r e a r e f u n d a m e n ta l c o n s id e r a ­
tio n s to b e g iv e n a t e n ti o n in t h i s ty p e
o f f in a n c in g ,” t h e c o m m is s io n ’s r e p o r t
s ta te s , “a n d in t h i s s tu d y a r e s e t f o r t h
a n u m b e r o f g u id e s f o r t h e b a n k e r to
fo llo w in l a u n c h in g in to th i s le n d in g
field. I t is n o t in te n d e d t h a t t h i s b e
a n e x h a u s ti v e s tu d y c o v e r in g a ll
p h a s e s o f field w a r e h o u s in g . R a th e r ,
i t is in tr o d u c t o r y in n a t u r e to a c q u a i n t
b a n k e r s in a g e n e r a l w a y w i t h t h e s u b ­
j e c t a n d to o u tlin e s o m e o f t h e c h ie f
p o in ts to fo llo w a n d s a f e g u a r d s to o b ­
s e r v e in le n d in g o n fie ld w a r e h o u s e
r e c e ip ts .

IOWA

NEWS

•

“A f r u i t f u l s o u r c e of e a r n in g m a y b e
f o u n d in lo a n s s e c u r e d b y field w a r e ­
h o u s e r e c e ip ts ,” th e r e p o r t c o n tin u e s .
“T h e f in a n c in g o f b o r r o w e r s ’ i n v e n ­
to r ie s t h r o u g h t h e m e d iu m o f field
w a r e h o u s i n g p r e s e n ts to a b a n k a n
o p p o r tu n ity f o r s e rv ic e th e c o m m u n ity
a n d a n o t h e r c h a n n e l b y w h ic h lo a n ­
a b le f u n d s m a y b e d iv e r t e d in to c o n ­
s t r u c t iv e c o m m e r c ia l e n t e r p r i s e . ”
T h e b o o k le t o u tlin e s f o u r g e n e r a l
c o n s id e r a tio n s o f fie ld w a r e h o u s in g .
T h e s e a re , th e m a n u a l s ta te s , th e a s ­
s u r a n c e t h a t t h e w a r e h o u s e r e c e ip ts
a r e v a lid , a n d is s u e d b y a r e s p o n s ib le
w areh o u se m a n ,
th e
fin a n c ia l
and
m o r a l r e s p o n s i b ilit y o f th e b o r r o w e r
a s w e ll a s h is c a p a c ity to tr a d e , th e
m a r k e ta b i lity o f th e g o o d s a n d t h e i r
d e s ir a b ili ty a s c o lla te r a l, a n d t h e p r o p ­
e r fo llo w -u p m e th o d s to i n s u r e t h a t th e
a c c e p te d c o n d itio n s o f s a f e ty a r e b e in g
m a in ta in e d .
T h e s tu d y in c lu d e s in f o r m a ti o n a b o u t
ju d g in g th e w a r e h o u s e c o m p a n y w h ic h
is s u e s r e c e ip ts , d e t e r m in in g t h e m a r ­
k e t v a lu e o f c o m m o d itie s , t h e ty p e a n d
n a t u r e o f th e m a r k e t, p h y s ic a l a n d
le g a l s a f e g u a r d s w h ic h s h o u ld b e o b ­
s e rv e d , lia b ility in s u r a n c e a n d fid e lity
b o n d p r o te c tio n , s to r a g e r is k s , a n d
ty p e s o f c o m m o d itie s w h ic h c a n b e
u s e d a s s e c u r ity f o r w a r e h o u s i n g lo a n s.

Regional Meetings
A s e r ie s o f 12 r e g io n a l s a le s c o n f e r ­
e n c e s fo r Io w a a n d W is c o n s in i n s u r ­
a n c e a g e n ts to p r e c e d e t h e s p r in g u n ­
d e r w r i t i n g s e a s o n h a s b e e n la u n c h e d
b y th e F a r m e r s M u tu a l H a il I n s u r a n c e
C o m p a n y of D es M o in e s, P r e s i d e n t C.
P . R u tle d g e a n n o u n c e d h e r e S a tu r d a y .
T h e m e e tin g s , w h ic h w ill b e p a r t i c i ­
p a t e d in b y u p w a r d s o f a th o u s a n d
a g e n ts , w e r e a n n o u n c e d a s fo llo w s:
M a rc h 3 1 st a t F a ir fie ld , A p r il 1 st a t
C e d a r R a p id s , A p ril 2 n d a t O e lw e in ,
A p r il 3 rd a t M a s o n C ity , A p r il 4 th a t
M a r s h a llto w n , A p ril 7 th a t R e d O ak,
A p r il 8 th a t C a rro ll, A p r il 9 th a t S h e l­
d o n , A p r il 1 0 th a t S to rm L a k e , A p r il
1 1 th a t F o r t D o d g e, A p r il 3 0 th a t E a u
C la ire , W is c o n s in , a n d M a y 1 st a t
M a d iso n , W is c o n s in .
T h e s e s s io n s w ill f e a tu r e d is c u s s io n s
o n h a il in s u r a n c e , a u to m o b ile i n s u r ­
a n c e , fire a n d w in d s to r m c o v e ra g e , a n d
w ill in c lu d e r o u n d ta b le d is c u s s io n s of
t h e l a te s t d e v e lo p m e n ts in v a r io u s
ty p e s o f u n d e r w r i tin g . P r e s i d e n t C.
P . R u tle d g e w ill p r e s id e a t e a c h m e e t­
in g . O th e r h o m e office o fficials w h o
w ill a t t e n d t h e c o n f e re n c e s w ill in ­
c lu d e S e c r e ta r y W . A. R u tle d g e , T r e a s ­
u r e r W . S. R u tle d g e , V ic e P r e s i d e n t R.
T. R u tle d g e , P e r r y R u tle d g e , c h a ir m a n

o f t h e b o a rd , a n d B r y a n C o n n e ll a n d
J . D. M ille r, a u to m o b ile a n d fire i n s u r ­
a n c e s u p e r v is o r s .

LEGAL INVESTMENT
For

INSURANCE COMPANIES
Accounts Insured up to $ 5 ,0 0 0

Convenient . . . Safe

3%
(C u rren t R ate)

St. Paul Federal
Savings & Loan Association
A x el A . O lson , S ec’y-Mgr.
4 East F ou rth St., ST. P A U L , M IN N .

DES MOINES BUILDING-LOAN &
SAVINGS ASSOCIATION

O ldest and L argest
in Des M oines
411 6th A v e.

D ia l 4-7119

ELMER E. M ILLER
Pres, and Sec.

HUBERT E. JAMES
A sst. Sec.

M em ber Federal H om e Loan Bank System

r
H O A I E ___ J]
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 ES
— ou r F ed era lly In su red u p to
$ 5 ,0 0 0 savin gs a ccou n ts are
th e so lu tio n to you r in v e st­
m e n t an d trust p rob lem s.
C urrent d iv id en d 3 F4 p ercen t.

Statement on request.
904 G rand A v en u e
D es M oin es, Iow a

N o r th w e s te r n B a n k e r

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

A p r il 19bl

6fi

•

IOWA

NEWS

•

Quarterly Dividend

Living Costs

T h e b o a r d o f d ir e c to r s o f t h e C h e m i­
ca l B a n k & T r u s t C o m p a n y h a s d e ­
c la r e d t h e r e g u l a r q u a r t e r l y d iv id e n d
o f 45 c e n ts p e r s h a r e o n t h e c a p ita l
s to c k o f t h e b a n k p a y a b le A p r il 1,
1941, to s to c k h o ld e s r o f r e c o r d M a rc h
20, 1941.

T h e c o s t o f liv in g in J a n u a r y , 1941,
w a s u p o n ly o n e c e n t o n th e d o lla r
o v e r t h e s a m e m o n th a y e a r ag o , w h ile
c a s h in c o m e s o f c o n s u m e r s in t h e s a m e
p e r io d a d v a n c e d 14 c e n ts o n t h e d o lla r
o v e r J a n u a r y , 1940, a c c o r d in g to a
m o n th l y s tu d y o f w h a t p e o p le g e t a n d
s p e n d , m a d e p u b lic r e c e n tly b y I n ­
v e s to r s S y n d ic a te .
“M r. a n d M rs. A m e r ic a n P u b lic in
J a n u a r y , 1941, w e r e 13 c e n ts o n th e
d o lla r b e t t e r off t h a n th e y w e r e in
J a n u a r y , 1940,” e x p la in e d I n v e s to r s
S y n d ic a te ’s m o n th l y s tu d y , “b e c a u s e ,
r e n t s e x c e p te d , liv in g c o s ts w e r e u n ­
c h a n g e d fro m a y e a r ag o , w h ile c o m ­
b in e d c a s h in c o m e s o u rc e s , le d b y
w a g e s , to ta le d $1.14 a g a in s t $1.00 in
J a n u a r y la s t y e a r .

Nationality
E m p lo y e r: “ S u re ly , M iss J e n k s , y o u
k n o w t h e K in g ’s E n g lis h ? ”
T y p is t: “O f c o u r s e h e is. W h o e v e r
s a id h e w a s n ’t ? ”

Iow a’s L argest B usin ess T raining School

Many banks, bond-bouses, insurance
companies and other financial insti­
tutions employ A. I. B. graduates.
Write or telephone when you need
efficient office employes.
E. O. FENTON, President

American Institute

of Business

D E S M O IN E S
10th and G rand

T e l. 4-4203

Jïow& it C a it
O u r p o licy p ro v id es a m ax im u m
assessm ent of 2 */2 % in Zones
O ne an d T w o— an d 3 l/ 2 % in
Zone T h re e (W estern Io w a).

Hawkeye Mutual Hail
Insurance Association
Carver B ld g.

F ort D o d g e, Iow a

N o r th w e s te r n B a n k e r

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

A p r il 19hl

“A lth o u g h a s h o r ta g e o f s u p p lie s a n d
th e p re s s u re of d e m a n d m a y u p s e t th e
a v e r a g e h o u s e h o ld b u d g e t la te r , t h e
P u b lic s , f o r t h e m o m e n t, a r e e n jo y in g
a n e x t r e m e l y h ig h le v e l o f r e a l in c o m e ,
a s th e c o m b in e d r e s u l t o f tw o f o rc e s —
a flo od o f f u n d s flo w in g in to w a g e s ,
s a la r ie s a n d b u s in e s s e a r n in g s f ro m
t h e d e f e n s e p r o g r a m , a n d th e r e m a r k ­
a b le s ta b ili ty o f c o n s u m e r p r ic e s in a
p e r io d o f s u c h in te n s e b u s in e s s a c tiv ­
ity .

Other Income Up 8c on Dollar
“W a g e e n v e lo p e s d u r in g J a n u a r y ,
1941, c o n ta in e d $1.22, t h e h ig h e s t le v e l
in y e a r s , a s a g a in s t $1.00 in t h e s a m e
m o n th a y e a r e a r lie r . D u r in g D e c e m ­
b e r, 1940, th e y c o n ta in e d $1.16, a n d in
N o v e m b e r, 1940, o n ly $1.13 c o m p a r e d
w i t h $1.00 in th o s e s a m e 1939 m o n th s .
“ S a la r y c h e c k s in J a n u a r y , 1941,
w e r e m a d e o u t f o r $1.10, a g a in s t $1.00
in t h e lik e p e r io d o f a y e a r ag o . I n
D e c e m b e r, 1940, s a la r y c h e c k s w e r e
m a d e o u t f o r $1.08, a n d in N o v e m b e r
f o r $1.06, in c o n t r a s t w i t h $1.00 f o r
th o s e r e s p e c tiv e m o n th s in 1939.
“O th e r in c o m e , s u c h a s b u s in e s s
e a r n in g s , t h e s a le o f f a r m p r o d u c ts ,
r e n ts , a n d r o y a ltie s , d u r in g J a n u a r y ,
1941, s to o d a t $1.08 a g a in s t $1.00 in t h e
s a m e 1940 m o n th . T h is ite m in D e c e m ­
b e r, 1940, s to o d a t $1.20, a n d in N o ­
v e m b e r , 1940, a t $1.22, c o m p a r e d w ith
$1.00 in t h e s a m e 1939 m o n th s .
“ D iv id e n d a n d i n t e r e s t p a y m e n ts in
J a n u a r y , 1941, w e r e $1.06 c o m p a r e d
w ith $1.00 in J a n u a r y , 1940. S u c h d is ­
b u r s e m e n ts in D e c e m b e r, 1940, w e r e
fo r $1.08, a n d in N o v e m b e r fo r $1.06,
c o m p a r e d w i t h $1.00 f o r e a c h o f th e s e
m o n th s in 1939.

Most Living Costs Hold Steady
“A p a r tm e n ts , b u n g a lo w s , c o tta g e s
a n d o th e r ty p e s o f s h e l t e r c o s t $1.01 in
J a n u a r y , 1941, c o m p a r e d w i t h $1.00 in

J a n u a r y , 1940, a s t h e n a t io n a l d e f e n s e
p r o g r a m c o n t in u e d to s h i f t m n a y w o r k ­
e r s to n e w ly c r e a te d d e f e n s e w o r k c e n ­
te r s . H o u s in g c o s ts in D e c e m b e r, 1940,
a n d in N o v e m b e r , 1940, s to o d a t $1.01
c o m p a r e d w i t h $1.00 in t h e lik e m o n th s
o f 1939.
“ F o o d , a lw a y s t h e l a r g e s t s in g le ite m
in M rs. P u b lic ’s h o u s e h o ld e x p e n d i­
tu r e s , w a s u n c h a n g e d in J a n u a r y , 1941,
c o m p a r e d w i t h t h e s a m e m o n th a y e a r
ag o . T h is w a s t r u e a ls o o f fo o d in
D e c e m b e r, 1940, a n d N o v e m b e r , 1940,
w h e n s u c h p e r io d s w e r e c o m p a r e d
w ith t h e i r r e s p e c tiv e m o n th s a y e a r
e a r lie r .
“M is c e lla n e o u s ite m s , u s u a lly th e
s e c o n d l a r g e s t h o u s e h o ld o u tla y , a lso
w e r e u n c h a n g e d in J a n u a r y , 1941, a s
c o n t r a s te d w i t h t h a t m o n th o f 1940.
T h is w a s t r u e lik e w is e o f m is c e lla n e ­
o u s ite m s in D e c e m b e r, 1940, a n d N o ­
v e m b e r , 1940, w h e n s u c h m o n th s w e r e
c o n t r a s te d w i t h t h e s a m e c a le n d a r p e ­
r io d s o f 1939.
“C lo th in g , w h ic h c o m b in e s m e n ’s,
w o m e n ’s a n d c h i l d r e n ’s w e a r i n g a p p a r ­
el, in J a n u a r y , 1941, w a s u n c h a n g e d
f r o m t h e s a m e 1940 m o n th . T h is w a s
t r u e a ls o o f h a b i lim e n ts in D e c e m b e r,
1940, a n d N o v e m b e r , 1940, c o m p a r e d
w i t h s u c h 1939 m o n th s .”
M r. a n d M rs. P u b lic , i n t h i s s tu d y ,
re c e iv e in c o m e f r o m w a g e s , s a la r ie s ,
in v e s tm e n ts a n d o th e r s o u r c e s in p r o ­
p o r tio n to t h e n a t io n a l d i s t r ib u t io n o f
s u c h p a y m e n ts . T h e i r liv in g e x p e n d i­
t u r e s lik e w is e a r e th o s e o f a v e r a g e
h o u s e h o ld e r s . T h e i r “r e a l in c o m e ,” o r
p u r c h a s in g p o w e r, is t h e i r a c tu a l a b i l­
it y to b u y r e g u l a r l y n e e d e d g o o d s a n d
s e rv ic e s .
“R e a l in c o m e ” is n o t a m e r e s u b t r a c ­
tio n o f c a s h in c o m e f r o m c a s h o u tg o ,
w h ic h w o u ld b e a n in d e x o f s a v in g s
r a t h e r t h a n “r e a l in c o m e ,” b u t a n a v e r ­
a g e r e la tiv e f ig u re o f in c o m e a n d o u t­
go d e s ig n e d to s h o w h o w t h e c o s t of
liv in g a ffe c ts t h e a d j u s te d d o lla r i n ­
c o m e.

More Than Half Billion
M o re t h a n a h a l f b illio n d o lla r s of
c o m m itm e n ts f o r d e f e n s e lo a n s w a s
r e p o r te d to t h e A m e r ic a n B a n k e r s A s­
s o c ia tio n a s o u ts t a n d in g o n D e c e m b e r
31, 1940, b y 195 o f t h e c o u n t r y ’s l a r g e r
b a n k s , a c c o r d in g to a s a m p lin g s u r v e y
o f d e f e n s e le n d in g a c tiv i ty m a d e b y
t h e A m e r ic a n B a n k e r s A s s o c ia tio n .
Q u e s tio n n a ir e s w e r e s e n t to t h e c o u n ­
t r y ’s 200 la r g e s t b a n k s a n d r e p lie s

FOR SALE—Bank safe good condi­
tion, 3 time locks. This safe cost $2,400
when new, will sell for $450, a real buy,
burglar proof. Bert Tucker, 400 W. Park
Ave., Waterloo, Iowa.

69

.
w e r e r e c e iv e d f r o m 195 i n s t i t u t i o n s in
79 c itie s.
T h e s e b a n k s r e p o r t e d t h a t th e y h a d
c o m m itm e n ts o u ts t a n d in g o n D e c e m ­
b e r 31 a m o u n tin g to $572,949,466 o n
lo a n s f o r d e f e n s e p u r p o s e s . I n a d d i­
tio n , th e y r e p o r t e d n e g o t ia t io n s in
p r o g r e s s , “w ith lo a n lik e ly to r e s u l t , ”
o n 570 lo a n s t o ta lin g $112,235,733. T h e y
f u r t h e r r e p o r t e d t h a t $247,441,414 of
t h e $572,949,466 w a s a c tu a lly in u s e b y
d e f e n s e g o o d s s u p p li e r s o n D e c e m ­
b e r 31.
“T h e e n l a r g in g flo w o f d e f e n s e o r ­
d e r s is r e s u l t i n g in a s te a d ily g r o w in g
n u m b e r o f lo a n s a n d s u b s e q u e n t s u r ­
v e y s w ill s h o w a s u b s t a n t i a l in c r e a s e
o v e r th e s e fig u re s ,” i t w a s s t a t e d b y
P . D. H o u s to n , p r e s i d e n t o f t h e A. B.
A ., in m a k in g t h i s a n n o u n c e m e n t.
T h e s u r v e y in d ic a te d t h a t t h e b a n k s
a r e m a k in g th e g r e a t m a jo r ity o f t h e i r
d e f e n s e lo a n s w it h o u t r e q u i r i n g th e
a s s ig n m e n t o f g o v e r n m e n t c o n t r a c ts
a s s e c u r ity , a l th o u g h t h e t a k in g o f th is
a s s ig n m e n t is p e r m i t t e d b y la w . S e v ­
e n ty -fiv e p e r c e n t o f t h e lo a n s r e p o r te d
w e r e m a d e w i t h o u t a s s ig n m e n t of
c o n t r a c ts w h ile o n ly 25 p e r c e n t w e r e
m a d e w i t h s u c h a s s ig n m e n t.

IO WA

NEWS

*

L o a n s f o r s u p p lie s a n d e q u i p m e n t
a c c o u n te d f o r t h e la r g e r p a r t o f t h e
to ta l.
T h e 195 b a n k s r e p o r t e d 821
c o m m itm e n ts f o r p l a n t f a c ilitie s a n d
o th e r c o n s tr u c tio n t o ta lin g $196,997,728, w h ile th e y m a d e 1,698 c o m m it­
m e n ts f o r s u p p lie s a n d e q u i p m e n t
t o ta lin g $283,589,691.
I n a d d itio n , t h e y r e p o r t e d 677 c o m ­
m it m e n t s to ta lin g $92,362,047 in t h e
f o r m o f o p e n lin e s of c r e d it a n d a d ­
v a n c e s u s e d f o r c a p ita l p u r p o s e s a n d
c a p ita l r e q u i r e m e n t s a r is i n g o u t o f e x ­
p a n d e d o p e r a tio n s o f c u s to m e r s c o n ­
t r i b u t i n g in d ir e c tly to d e fe n s e .
T h e lo a n s w e r e m a d e f o r a g r e a t
v a r i e t y o f d e f e n s e g o o d s, t h e lis t of
t h e ty p ic a l b a n k r u n n i n g c o n s id e r a b ly
o v e r 50 ite m s . T h e s e in c lu d e a i r c r a f t
h a r d w a r e , c lo th in g , e le c tr ic a l e q u ip ­
m e n t, d ie s e l e n g in e s , f u r n i t u r e , p r e ­
c is io n in s t r u m e n t s , lu m b e r , m e ta ls ,
p a r a c h u te s ilk , p h o to g r a p h e q u ip m e n t,
p u m p s , s h ip y a r d e q u ip m e n t, tr u c k s
a n d m a n y o th e r th in g s .
I n a n n o u n c in g th e s u r v e y , M r. H o u s ­
to n s ta te d t h a t i t “b y n o m e a n s r e p r e ­
s e n ts a c o m p le te p ic tu r e o f t h e d e f e n s e
le n d in g o f b a n k s , w h ic h w o u ld r e q u ir e
a s u r v e y o f 15,000 i n s t itu ti o n s . I n or-

d e r to g e t a s ta tis t ic a l in d ic a tio n of
t h e e x t e n t to w h ic h b a n k s a r e fin a n c ­
in g t h e d e f e n s e p r o g r a m , w e a s k e d a
r e p r e s e n t a t i v e g r o u p o f b a n k s in th e
l a r g e r i n d u s t r i a l c e n te r s to g iv e u s
t h e i r d e f e n s e lo a n f ig u re s ,” h e sa id .
“ S in c e t h e b a n k s a s s e m b le d th e s e fig­
u r e s f o r u s , t h e e n l a r g e d flo w o f d e ­
f e n s e o r d e r s h a s r e s u lt e d in a s te a d ily
g r o w in g n u m b e r o f lo a n s. S u b s e q u e n t
s u r v e y s w ill s h o w a s u b s t a n t i a l i n ­
c r e a s e o v e r th e s e fig u re s .”

T his is th e
p lace in
Des M oines
to get y o u r
DOBBS
Cross C o u n try
H A TS
$5
Here Exclusively

F R A N K E L ’S

9/?9ex Do (Ddvertimers
A
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 .......... 71
A l l i e d M u t u a l C a s u a l t y C o ........................... 26
A . C. A l l y n a n d C o m p a n y ................................. 33
A m e r i c a n B a n k R e p o r t e r ................................. 66
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 .................. 68
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 . . . 58
B
B a n k e r s T r u s t C o m p a n y ............................. 50-5 1
V. W . B r e w e r C o m p a n y ...................................... 33
C
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 . . . 44
C e n tra l N a tio n a l B a n k a n d T r u s t C o ...
3
C h a s e N a t i o n a l B a n k ...........................................
6
C i t y N a t i o n a l B a n k a n d T r u s t Co. o f
C h i c a g o .................................................................... 47
C o n tin e n ta l Illin o is N a tio n a l B a n k a n d
T r u s t C o ...................................................................... 65
C o n t i n e n t a l N a t i o n a l B a n k o f L i n c o l n . . 39
D
P . E . D a v e n p o r t a n d C o m p a n y .............3 7 , 5 8
D e L u x e C h e c k P r i n t e r s , I n c ......................... 47
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 o c i a t i o n ............................................................ 67
D o u g l a s - G u a r d i a n W a r e h o u s e C o r p . . . . 54
D r o v e r s N a t i o n a l B a n k ................................... 56

I
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 ..................................................................... 72
I o w a - N e b r a s k a B a n k D i r e c t o r y ............... 29

L
G e o r g e L a M o n t e a n d S o n ..............................
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 ....................
L ive S to ck N a tio n a l B a n k — C h ic a g o ...
L ive S to ck N a tio n a l B a n k — O m a h a . . . .
L ive S to c k N a tio n a l B a n k — S ioux C ity .

P
F a r m e r s M u t u a l H a i l I n s u r a n c e C o ..........
F e d e r a l D i s c o u n t C o r p o r a t i o n .......................
F e d e r a l H o m e L o a n B a n k .................................
F e d e r a l I n t e r m e d i a t e C r e d i t B a n k ..........
F i r s t F e d e r a l S a v in g s a n d L o a n A ssn .. .
F i r s t N a t i o n a l B a n k o f C h i c a g o ..................
F i r s t N a t i o n a l B a n k o f L i n c o l n ..................
F i r s t N a t i o n a l B a n k o f S i o u x C i t y .............
F i s h e r C o m p a n y .....................................................
F r a n k e l ’s C l o t h i n g C o m p a n y .........................

24
32
59
30
69
63
38
53
5
69

G

G e n e ra l A m e ric a n L ife I n s u ra n c e C o ...
G e n eral M o to rs A c c e p ta n c e C o rp o ra tio n
H
H a w k e y e M u tu al H ail In s u ra n c e A s s n .. .
H o m e F e d e r a l S a v in g s a n d L o a n A ssn .. .
H o m e I n s u r a n c e C o m p a n y of N e w Y o rk
H o t e l L i n c o l n .............................................................

25
31
68
67
4
62

A cco u n ts In su red Up T o

21
68
52
37
40

$5,000.00

M

E i O

M e r c h a n t s M u t u a l B o n d i n g C o m p a n y . . 62
M e r c h a n t s N a t i o n a l B a n k .................................
2
M in n e a p o lis M o lin e P o w e r I m p l e m e n ts
C o ..................................................................................... 46
M o r r i s P l a n C o ......................................................... 57

Federal Savincs
and

N atio n al
N ational
N atio n al
N o rth ern

L oan A ssociation
O f St P a u l

N

350 Cedar St.

B a n k o f D e t r o i t ................................ 26
B a n k o f W a t e r l o o ............................ 55
S u r e t y C o r p o r a t i o n ......................... 64
T r u s t C o m p a n y ......................... .. . . 60

E

E l m s H o t e l .................................................................. 66
E m p l o y e r s M u t u a l C a s u a l t y C o ................. 69
E p p l e y H o t e l s C o .................................................... 36

S A F E T Y IN
IN V E S T M E N T

J
J a m i e s o n a n d C o m p a n y ...................................... 32

St. P a u l. M inn.

O
O m a h a N a t i o n a l B a n k ........................................

19

EMPLOYERS
MUTUAL

P
P h ilad elp h ia

N atio n al

B a n k .........................

27

S

S a i n t P a u l F e d e r a l S a v i n g s a n d L o a n . . . 67
S e c u r i t y N a t i o n a l B a n k o f S i o u x C i t y . . 61
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 . . . 34

CASUALTY COMPANY
DES MOINES

T

T o d d C o m p a n y , T h e .............................................

42

U
U n i t e d S t a t e s C h e c k B o o k C o ....................36, 59
W

W a n t A d s ..................................................
57,68
C h a r l e s E . W a l t e r s C o m p a n y ....................... 39
J a y A. W e l c h ............................................................... 55
W e s s l i n g S e r v i c e s .............................................
61
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

An Agency Company — Assets Over $4,000,000

1

L

• Automi
Automobile Insurance
Workmen’s Compensation
•• w
• General Liability
• Elevator Insurance
• Plate Glass Insurance

N o r th w e s te r n B a n k e r

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

A p r il 19bl

70

IN THE DIRECTORS' ROOM
Seeing Double

Gentle Persuasion

S e c o n d (to b o x e r ) : “W e ll, o ld m a n ,
I ’m a f r a id y o u ’r e lic k e d n o w .”
B o x e r (g a z in g d iz z ily a c r o s s to o p ­
p o s ite c o r n e r ) : “Y ea, I s h o u ld h a v e
g o t h im in t h e f irs t r o u n d w h e n h e w a s
a lo n e .”

H e w as a m a n of p eace, a n d w h e n
h e c a m e u p o n tw o y o u th s fig h tin g in a
b a c k s t r e e t h e p u s h e d t h r o u g h th e
c r o w d a n d p e r s u a d e d t h e c o m b a ta n ts
to d e s is t.
“ L e t m e b e g y o u , m y g o o d fe llo w s ,”
h e sa id , “to s e ttle y o u r d is p u t e b y a r b i ­
tr a t io n . E a c h o f y o u c h o o s e a h alf-ad o z e n f r ie n d s to a r b i t r a t e . ”
H a v in g s e e n t h e tw e lv e a r b i t r a t o r s
s e le c te d to t h e s a tis f a c tio n o f b o th
sid e s, t h e m a n o f p e a c e w e n t o n h is
w ay.
H a lf a n h o u r l a t e r h e r e t u r n e d , a n d
w a s h o r r if ie d to fin d t h e w h o le s t r e e t
fig h tin g .
“G o o r g ra c io u s , w h a t ’s t h e m a t t e r
n o w ?” he asked.
“ S u re , s o r r ,” w a s t h e r e p ly , “th e
a r b i t r a t o r s a r e a t w o rk ! ”

Observing Rules

Hair?
M e d ic in e M an: “A n d , fo lk s , r e m e m ­
b e r t h a t I ’v e g o t s o m e th in g t h a t
c h a n g e s t h e c o lo r o f a p e r s o n ’s h a i r
o v e r n ig h t .”
P a tie n t: “Y ea h , I ’v e g o t a s o n in
co lleg e , to o .”

Unhappy Medium

A n o ld S c o t w a s s m o k in g in th e
w a it in g r o o m o f a r a il w a y s ta tio n . A
p o r t e r s a id to h im :
“ D o n ’t y o u se e t h a t n o tic e o n t h e
w a ll— ‘N o S m o k in g A llo w e d ’?”
“Y es, I d o ,” s a id t h e S co t.
“B u t
h o w c a n I k e e p a ll y o u r r u le s ? T h e r e ’s
a n o t h e r o n e o n t h e w a ll t h a t sa y s:
‘W e a r S p ire lla C o r s e ts .’ ”

A c e r ta in w o m a n , w a n ti n g to s in g
in g r a n d o p e ra , a s k e d a G e r m a n m u s ic
p r o f e s s o r to h e a r h e r . H e p la y e d h e r
a c c o m p a n im e n t a n d lis te n e d to h e r f o r
a fe w m in u te s , b u t s h e s a n g so f a r off
t h e k e y t h a t h e f in a lly s la m m e d d o w n
t h e p ia n o c o v e r a n d r e f u s e d to c o n ­
tin u e .
“W h a t ’s th e m a t t e r ? ” a s k e d th e
w o m a n . “D o n ’t y o u lik e m y s in g in g ? ”
“D e r tr o u b le m i t y o u r s in g in g ,
m a d a m ,” a s s e r te d t h e p r o fe s s o r , “is
d o t v e d e r I p la y o n d e r v ite k e y s o r
d e r b la c k o n es, y o u s in g in d e r c r a c k s ! ”

H e s to o d o n t h e s t e r n o f th e p r o m e ­
n a d e d e c k a s h is s h ip m o v e d o u t in to
th e r iv e r , a d m ir in g a g r a c e f u l s e a g u ll
a s i t h o v e r e d , sw o o p e d , a n d d ip p e d to
r e c o v e r so m e b its o f fo o d t h a t h a d b e e n
t h r o w n f r o m t h e g a lle y .
“O i,” s a id M e y e r, “W h a t a p r e t t y
p ig e o n .”
“T h a t ’s a g u ll,” s a id a m o r e e x p e r i­
e n c e d t r a v e l e r w i t h w i t h e r i n g s c o rn .
“ I d o n ’t c a r e ,” s a id M e y e r, “G u ll o r
b o y , i t ’s a p r e t t y p ig e o n .”

A c la s s w a s a s k e d in a S u n d a y
s c h o o l e x a m in a tio n to g iv e t h e m e a n ­
in g of t h e w o r d “ s e la h .” F o r a w h ile
n o a n s w e r w a s f o r th c o m in g . T h e n a
s m a ll b o y h e ld u p h is h a n d .
“W e ll? ” s a id t h e te a c h e r .
“ P le a s e , s ir ,” s a id t h e la d , “t h a t ’s
w h a t D a v id u s e d to s a y w h e n h e ’d
b r e a k a s t r i n g o n h is h a r p .”

Dumbbell Poem

Too "W ordy"?

"O " Marks the Spot

A y o u n g th e o lo g ia n n a m e d F id d le
R e fu s e d to a c c e p t h is d e g re e ,
F o r , s a id h e , i t ’s e n o u g h to b e F id d le
W i t h o u t b e in g a F id d le , D.D.

F lo s s ie : “Y o u ’ll n e v e r c a tc h m e g o ­
in g o u t to d in n e r w i t h a n e d ito r a g a in .”
G irl F r ie n d : “W h y ? W a s h e b r o k e ? ”
F lo s s ie : “ I d o n ’t k n o w a b o u t th a t,
b u t h e p u t a b lu e p e n c il th r o u g h a b o u t
h a l f m y o r d e r .”

Glug
“H o w c a n y o u k e e p e a tin g a t th e
f ra te r n ity h o u se ? ”
“O h, I j u s t ta k e a ta b le s p o o n f u l of
D ra n o t h r e e tim e s a w e e k .”

Useless Effort
A f a r m e r w h o liv e d in a c e r ta in
r u r a l v illa g e h a d 20 e m p lo y e s o n h is
f a r m , a n d a s n o n e o f th e m w a s a s
e n e r g e tic a s t h e f a r m e r t h o u g h t h e
s h o u ld be, h e f in a lly h i t u p o n a p la n
w h ic h h e b e lie v e d w o u ld c e r ta in l y
c u r e t h e m o f t h e i r la z y h a b its .
“M e n ,” h e sa id , o n e m o r n in g , “ I
h a v e a n ic e e a s y jo b f o r t h e la z ie s t
m a n o n t h e f a r m . W ill t h e la z ie s t
m a n s te p f o r w a r d ? ”
I n s t a n t l y 19 o f t h e m e n s te p p e d f o r ­
w a rd .
“W h y d id n ’t y o u s te p to th e f r o n t
w ith t h e r e s t ? ” in q u ir e d t h e f a r m e r of
t h e r e m a in in g o n e.
“T oo m u c h tr o u b le ,” c a m e th e re p ly .

N o r th w e s te r n B a n k e r

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

A p r il 1941

Nature Lover

Not W arned
J o n e s w a s s it t i n g w i t h h is w ife b e ­
h in d a p a lm o n a h o te l v e r a n d a la te
o n e n ig h t w h e n a y o u n g m a n a n d a
g ir l c a m e a n d s a t d o w n o n a b e n c h
n e a r th e m . T h e y o u n g m a n b e g a n to
te ll th e g ir l h o w p r e t t y a n d g o o d a n d
lo v a b le h e t h o u g h t s h e w a s.
H id d e n b e h in d t h e p a lm , M rs. J o n e s
w h is p e r e d to h e r h u s b a n d :
“ O h, J o h n , h e d o e s n ’t k n o w w e ’r e
h e r e a n d h e ’s g o in g to p ro p o s e . W h i s tle
to w a r n h im .”
“W h a t f o r ? ” s a id J o n e s .
“N o b o d y
w h is tl e d to w a r n m e .”

Personally Acquainted
F a r m e r J a b b e r : “ I ’v e g o t a f r e a k
o n m y fa r m . I t ’s a tw o -le g g e d c a lf.”
F a r m e r C o rn ta s s e l: “Y es, I k n o w .
H e c a m e o v e r to c a ll o n m y d a u g h t e r
la s t n i g h t . ”

W hat David Said

H e r o c k e d t h e b o a t,
D id E z r a S h a n k ;
T h e s e b u b b le s m a r k
o
o
o
o
o
o
W h e r e E z r a sa n k !

Probably a Tough One
C a lle r:
“ I w o u ld lik e
ju d g e , p le a s e .”
S e c r e ta r y : “ I ’m s o r r y ,
is a t d i n n e r . ”
C a lle r: “B u t m y m a n ,
is im p o r t a n t . ”
S e c r e ta r y : “ I t c a n ’t b e
H is h o n o r is a t s te a k .”

to

se e

th e

s ir, b u t h e
m y erran d
h e lp e d , s ir.

Hard Bounce
A b r ic k l a y e r w o r k i n g o n to p o f a
h ig h b u ild in g c a r e le s s ly d r o p p e d a
b r ic k w h ic h la n d e d o n th e h e a d o f h is
N e g ro h e l p e r b e lo w .
“Y o u -a ll b e t t a h b e c a r e f u l u p d e r e ,”
th e h e l p e r s h o u te d u p .
“Y o u d o n e
m a d e m e b ite m a h to n g u e .”

THESE IMPORTANT ADVANTAGES IDENTIFY
THE ALLEN WALES A D D IN G M A C H IN ES
Time-Proved Economy
Assured Accuracy
Easier Operation
»Greater Speed
Utmost Dependability
Longer
Life
They explain why our sales have increased more than 600

percent within the past six years.
Our nearest agency will be glad to let you try a machine
without obligation—telephone them or write to us.

ALLEN WALES ADDING MACHINE CORPORATION
444 Madison Avenue, New York, N. Y.
Digitized forSALES
FRASER AND SERVICE
https://fraser.stlouisfed.org
i Federal Reserve Bank of St. Louis

IN 4 0 0 AMERICAN CITIES AND IN 4 0 FOREIGN COUNTRIES
j

Wh e n You C h o o s e

1^046 b & n & jjlt by having
your business handled by

HAIR'S LARGEST BARK

experienced personnel long

fls Your De s I Do i ne s

accustomed to helpful co­

Correspondent:

operation with out - of - town
Banks.

ty o n b e s ie fU

because

a ll of the modern facilities of
this Bank are available for
use every day.
4

7 /o u be+ i& jU t h r o u g h
our intimate knowledge of
Des Moines and the entire
Iowa area . . . its business and
its men . . . gained in 65 years
of close association.

Iow a - Des Moines national Bank
& Trust C ompany
M e m b e r o f The


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

Federal

D e p o s i t I nsurance

Corporation