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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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Page 11 w «f e «f e >> » » •» > > > > 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 Ilf W T holder enjoys coverage against seven more hazards that these mishaps occur, \ jTf|l/ W h e n n e w ly w e d build on borrow ed J can recommend Ex- ¥ / i te n d e d C o v e ra g e fo r sounder protec- m ortgage values. j j / ‘ — an endorsement on the fire policy — more policies at al- dustrial loans, it is a dvisa ble to check VEHICLE DAMAGE RIOT j Æ a p p lic a n t 's tm Ml*® / m' WINDSTORM SMOKE & SMUDGE AIRCRAFT DAMAGE l /_ 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 ApLSi p ro perty policies fo r ^ pm e“ EXPLOSION / fam £ y |g co m m ercial o r in- th e f / tion o f homes and B e fo re ¡ \ jjr money, m ortgagees ¥ W /| t a p p e d to r e p a ir dam age if and when Explosion, Smoke and Smudge, Aircraft Damage, Riot. j / N ow his savings account need not b e effectively as fire: Hail, Windstorm, Vehicle Damage, i tion For his home, j may endanger his financial position as surely and as A J The personal saver ^as greater protec- / " 't j T U I? A M I' 1 Ilili RflUiVlJL INSURANCE COMPANY N E W YORK FIRE ~ AUTOMOBI LE https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 ness. 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 izing your bank is expertly handled by this firm, with seventy years of experience back of its work. Consult Fisher on Your R em odeling Plans— and L et Us S u bm it O ur Ideas ESTABLISH E D 18 7 0 Charles City , Iowa B A N K F I X T Northw estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A pril 19bl https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 11 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) Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A pril 19kl 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 Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 Northwestern Banker https://fraser.stlouisfed.org 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 Northwestern Banker https://fraser.stlouisfed.org 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) Northwestern Banker https://fraser.stlouisfed.org 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 Northwestern Banker https://fraser.stlouisfed.org 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.” Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 Northwestern Banker https://fraser.stlouisfed.org 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 Northwestern Banker https://fraser.stlouisfed.org 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 “check raising" w as a serious m enace to the development of the checking system which w as to play so important a part in the growth of American Bank ing.» » » Then, and through the in terv e n in g y e a r s, La M onte S a fe ty P ap ers h a v e m et and overcome the m enace of check forgery. T hey h a v e p rovid ed the protection so necessary to the free circulation of checks th r o u g h o u t th e n a tio n .» » » Through constant research, ex p erim en tation , an d im p rove ments in formulae and manu facturing methods. La Monte Safety Papers have kept p ace with increasing demands for p r o t e c t io n , a n d h a v e b e e n brought to their present high standards of efficiency.» » » To day, La Monte Safety Papers are recognized as “the standard of protection" for checks and other n e g o tia b le instrum ents. They are used and endorsed by business institutions from coast to coast, including more than 75% of th e n a tio n 's le a d in g banks. » » » W hen you specify La M onte S a fety Paper y o u are selecting a product which w as not only the first in the fie ld b u t w h ic h h a s m a in ta in ed its le a d ersh ip over a period of 70 YEARS. » » » » » GEORGE LA MONTE & SON, Nutley, N. J. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 22 S ervice wi a Capital ¿ i / ^ U R E L Y like the w a y my S W estern M utual fieldm an h elp s m e take care of m y insur a n c e clients," s a y s on e w ell-know n banker ag en t. "I've found I can count on W estern M utual a ll a lo n g the lin e — se llin g the prospect, servicin g the insured a n d settling the claim." Legal Reserve, Non-Assessable Fire, Windstorm and Extended Coverages on Properties a n d F u ll C o v e r a g e Automobile Insurance. Write Western Mutual Fire Insurance Company 9th and Grand Des Moines, Iowa "Over a Third of a Century of Safety and Service With Savings" 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 « https://fraser.stlouisfed.org 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’?” Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A pril 19^1 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 N orthwestern Banker https://fraser.stlouisfed.org 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. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org 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 -• 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 DELIVERED $10.00 SPECIAL STATE EDITIONS or COMBINATIONS OF STATES M oderately priced ORDER YOUR COPY TODAY American Bank Reporter 420 EAST 149th STREET NEW YORK, N. Y. 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