Full text of The Northwestern Banker : April 1944, Forty-Ninth Year, Number 681

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APRIL
1944

Looking up the Big Thompson Canyon, on the
way to Estes Park, Colorado.

M r '

BUY

U N ITE S»

AND

STAM PS

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Federal Reserve Bank of St. Louis

W hat W ill Happen to Interest Rates
Page 17

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Dependability!
Good correspondent service, as we see it, increases each
year in DEPENDABILITY.
Hundreds of banks in the middle west seem to have the
For com

plete, DEPENDABLE service, they recommend this institution.

^ < c i

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same conception of good correspondent service.

A CEDAR RAPIDS BANK

SERVICING ALL IOWA

MERCHANTS
NATIONAL BANK
OFFICERS

-4

<* <<

James E. Ham ilton , Chairman
S. E. Coquillette, President
H. N. B oyson , Vice President
Roy C. F olsom, Vice President
Mark J. M yers, V. Pres. & Cashier
George F. M iller, V. Pres. & Tr. Officer
M arvin R. Selden , Vice President
F red W. S m it h , Vice President
John T. H amilton II, Vice President
R. W. M an att , Asst. Cashier
L. W. Broulik , Asst. Cashier
Peter B ailey , Asst. Cashier
R. D. B rown , Asst. Cashier
0. A. K earney , Asst. Cashier
Stanley J. M ohrbacher, Asst. Cashier
E. B. Zban ek , Building1Manager

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^ 4 |t-

.J &

Cedar Rapids
Member Federal

Iowa

Deposit Insurance Corporation

Northwestern Bái\kér*¡ published monthly by the De Puy Publishing Company,,, at 527 Seventh
Des Moines, Iowa. Subscription, 35c per copy, $3.00 per year
9 Entered as Second Class Matter January 1, 1895, at the P ost Office at Des Moines, Iowa, under Act of March 3, 1879.

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This Picture Won the 19« 500 PULITZER PRIZE
as an Outstanding Example o t News Photography

The photograph above, entitled ‘ ‘W ATER” , was taken by
Associated Press Photographer Frank Noel, from a similar life
boat in which he was drifting after his ship was torpedoed in
the Indian Ocean. These Lascar seamen were from the same
ship and had been without water for several days.

Checks are more than mere slips of paper. They are
actually money — and the kind of money that, when
spent, leaves a permanent record of every transac
tion. That's why checks are human interest documents
— with many a dramatic story behind them. » »
Checks can record promotion and demotion — success
and failure. They can symbolize unexpected good
fortune or bad. They can represent a payment or
purchase which is the ultimate goal of years of patient
striving and saving. They can provide the where
withal for retirement as a reward for the faithful
payment of insurance premiums. They can mark the
change of ownership of a great business institution.

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For S a m p les

Or, as in the case above, indicate public recognition
of an outstanding achievement. » » True, since checks
are essentially private — the average person usually
sees only those which touch his life — the checks which
he himself draws or receives. » » Bankers, however,
find a constant stream of checks of all kinds and de
scriptions passing under their observation. And they
find that many important and interesting checks are
on La Monte Safety Paper. Which is rather to be ex
pected, since leading business organizations from
coast to coast —including more than 75% of the nation's
largest banks — use this product for maximum protec
tion against alteration and counterfeiting.

La M on te S a fety P aper s e e you r Lithographer or Printer — or w rite us direct.
LET’S A LL —

BACKTHEATTACK

Dependable Assistance
As American banks face wartime prob
lems of investment and operation, the
need increases for dependable service
from a New York correspondent.
Central Hanover cooperates year in and
year out with banking institutionsin all
ì
I

parts of the nation—250, for example,
have been correspondents continuously
for more than half a century.

CENTRAL
HANOVER
AND

TRUST
NEW

BANK
COMPANY

YORK

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Northwestern Banker

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April Í.944

H e’s with his dad, fighting the war. His dad is a

torn bodies are m ended by Army and Navy doctors

giant, killing the enemy by the hundreds.

and nurses; home from battlefields where blood

The little boy is happy as he dream s, for the

plasma, collected by blood donor service, has saved
so many thousands of lives; home to a family which

foe was never horn who could kill his dad!
Some day though, when he’s old enough, he’ll

perhaps has been cared for during sickness when

know how much he and millions c f others like

dad was away by N urse’s Aides and Home Service.

him owe to the Red Cross for bringing their dadi

So, in the name of millions of American

home to them —home from the field hospitals

fa m ilie s, T he H om e In su ra n c e Com pany

near the front lines where Red Cross men and

salutes the Red Cross in its great work of

women have brought comfort to those whose

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turning dream s into reality.

This is the first of a series o f advertisements dedicated to the American Red Cross by

THE HOME INSURANCE COMPANY, NEW YORK
FIRE

AUTOM OBILE

MARINE

MORE BUREAUCRACY IS UNNECESSARY
IN THE FARM MORTGAGE BUSINESS...
Now you can do something about Government competition by joining
with the Equitable Society in service to Farmers on the NEW

A P P R O V E D M O R T G A G E P LA N
YOU CAN GIVE YOUR CUSTOMERS the best farm loan on the market
today. Nowhere else can they get all these desirable features:
1. The Farm Income Privilege—the right to pay off any amount at any time from farm income.
This money saving provision is written into the loan agreement.
2.

The Prepayment Reserve Plan—the privilege of laying away extra funds at full interest saving
to pay interest and principal instalments when conditions are unfavorable.

Tailor-made Loan Plans—amortized loans for 20 to 40 years and straight term loans for
5 to 15 years—fitted to the needs of the individual borrower.

Four Percent Interest Rate—net to the borrower, no fees and no commissions. The borrower’s
only expense is for continuing the abstract and recording the papers.

Quick Service — approval can be given in 3 or 4 days. There is no red tape.

YOU CAN INVEST YOUR BANK'S MONEY in the loan for the first two
years and have a definite agreement from the Equitable Society to
take it over at the end of two years, or earlier on 30 days' notice.
YOU GET HELP IN SOLICITING LOANS and free appraisal service.
THE EQUITABLE SOCIETY IS THE FIRST TO OFFER THIS SERVICE TO
BANKS. . . another example of the Leadership which gave Farmers The Farm Income Priv
ilege, The Prepayment Reserve Plan and loans for 40 years at 4 percent. YOUR BANK WILL
PROFIT BY BEING IDENTIFIED WITH THE LEADER IN THE FARAA LOAN FIELD.
The Equitable Society is well equipped to handle business in parts of
Ohio, Indiana, Illinois, Wisconsin, Iowa, Missouri, Oklahoma, Kansas,
Nebraska, South Dakota, Minnesota, Oregon, Washington, Utah and
Idaho. Extension will be made to other areas as conditions permit.
For further information on the APPROVED MORTGAGE PLAN you are invited to write

Thomas I. Parkinson, President

T H E E Q U IT A B L E L IF E A S S U R A N C E S O C I E T Y O F T H E U N IT E D S T A T E S
Northwestern Banker

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Federal Reserve Bank of St. Louis

393 Seventh Avenue, New York City 1, New York
April 1944

N London’s old Berkeley Square, whose
pavements William Pitt, Lord Clive and
Alexander Pope once trod, a branch of an
American bank came into being seven years ago.
For a few too-brief years it served its original
purpose. Then Hitler struck—and through the
Blitz this office, one of the three London
branches of the Chase National Bank, con
tinued to facilitate the aid which America was
even then extending to hard-pressed Britain.
Pearl Harbor raised the curtain on a new
scene in the short history of this Chase branch.
A new service was immediately inaugurated
there. As a result, tens of thousands of men of
our armed forces, G.I.s and generals, blue
jackets and admirals, are using this Chase
branch in ways seldom associated with a com
mercial bank. Thousands of families through
out the United States are being cheered by

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flowers, candy and other gifts from their boys
overseas—the bank taking care of the orders
by cable or airmail, without profit to it for
the service.
This Berkeley Square branch is near the very
center of American military and civilian activ
ities in the British capital. Hence it has come to
be financial headquarters for much of the per
sonnel there. Checks are cashed daily for many
members of our armed forces and funds are
transmitted for them to and from the United
States. The staffs of American missions and
departments likewise utilize these convenient
facilities extensively.
Thus the oldest American banking organiza
tion in London helps the men overseas keep
their ties with their families at home. In doing
so, it has the valuable assistance of correspondent
banks in all parts of the country.

THE CHASE NATIONAL BANK
OF

TH E

CITY

NEW

YORK

HEAD OFFICE: Pine S tre e t co rn er o f Nassau
L O N D O N — M a in O f f ic e , 6 L o m b a rd S t r e e t ; B ra n c h e s , 51 B e r k e le y S q u a r e ; Bush H o u se , A ld w y c h

Northwestern Banker

April /944

KEEN DEMAND
makes BETTER PRICES at

OMAHA
the W orld’s Second Largest Livestock Market
O ver

7 1/i m i l l i o n h e a d

of l i v e s t o c k

sold f o r

m o r e t h a n 3 5 0 m i l l i o n d o l l a r s in c a s h a t O m a h a
during 1 9 4 3 .

T h i s b u s i n e s s o r i g i n a t e d in 2 1

s t a t e s , e x t e n d i n g f r o m t h e M i s s i s s i p p i r i v e r to
the P a c ific C o a s t.

BE SATISFIED—ship to O M A H A

UNION STOCK YARDS COMPANY of OMAHA, (LTD.)
President

OMAHAv

Northwestern Banker

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Federal Reserve Bank of St. Louis

April 1944

RKET

N O R T H W E ST E R N
The following letters were received
from Northwestern Banker readers.
Your views and opinions on any sub
ject will be gladly published in this
column.

F O R T Y - N IN T H Y E A R

Oldest Financial Journal West oí the Mississippi River

"Love Our----- "
‘ ‘ Perhaps these might be put on your
‘ Directors P age’ or ‘ Dear Editor P age.’
‘ ‘ The doctor prescribed enemas for mv
little six-year-old girl and, of course, she
hated them.
One Sunday when she re
turned home from Sunday school, she came
to me with a very serious face and said,
‘ Mother, I am not going to make you any
more trouble about those enemas-—cause we
learned today in class that we must love
our enemas. ’
“ Johnny had been very excited all
morning and finally burst out with ‘ We
have a baby girl at our house, teacher.
Dr. Moore brought her. ’ At once a small
hand was frantically waved in the air and
a small voice piped: ‘ W e take off of him,
too, teacher.’ ”
L eo E . S t e v e n s , Past Presi
dent, Iowa Bankers Associ
ation, Pasadena, California.

"A Fine Gesture"
“ I think that was a mighty fine gesture
that you put on the editorial page of the
March, 1944, issue of the N o r t h w e s t e r n
B a n k e r , addressed ‘ Dear Y . W . Johnson,’
and I know he will appreciate it most sin
cerely as well as the other officers of this
Association, including the writer.”
F r a n k W a r n e r , Secretary,
Iowa Bankers Association,
lies Moines.

"Glory Belongs to Frank"
‘ ‘ This is in reply to your letter addressed
to me on page 11 of the March issue of the

N U M B ER 681

IN T H IS A P R IL , 1944, IS S U E
Ed itorials
10

Across the Desk from the Publisher.

Feature Articles
Dear Editor— Letters from Our Readers..................... ................
Frontispage

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

......................... 9
.......................... 13

Five Problems of Bank Management............................................

Marshall Corns 14

Good Employe Relations......................................................................

....... Dale Broivn 15

Make Your Own Publicity.................................................................

................................. 16

W hat W ill Happen to Interest Rates............................................

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

News and Views of the Banking W orld........................................

.Clifford De Puy

W a r Bonds and Judicial Proceedings— Legal Department

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

To Buy— or Not to Buy.........................................................................

....... Marie F uhr 22

W hat Do You Think?...........................................................................

................................. 26

Insurance
W e Solicit Personal Accounts...................................... .................. .............R. A . Tucker 29

State Banking News
Minnesota News ......................................................................................

Twin City N ew s...................................................

South Dakota N ew s............................

Sioux Falls N ew s................................................
North Dakota

N ew s...........................................................

Nebraska News ........................................................................................................................

N orth w estern B a n k er.

Omaha Clearings ..................................................................................

“ I am flattered that you should include
my name among the very important gentle
men to whom you address your very worth
while questions, commendations and criti
cisms from month to month. I am obliged
to you for the favorable notice which you
give the permanent War Bond Sales Or
ganization of the Iowa Bankers Associ
ation and on behalf of the Association, I
thank you most sincerely.
“ But Clifford, you know I didn’t do it.
That ‘ ol ’ debbil ’ with the ingenious mind
and the tremendous capacity for organiza
tion, our mutual friend, Frank Warner, is
the guy. I only wish I could take credit
for this very constructive job but the glory
belongs to Frank. ’ ’
V iv ia n J o h n s o n , President,
First National Bank of
Cedar Falls and President
of the Iowa Bankers Associ
ation.

Nebraska Group Meetings.................................................................. ......................... 48

(Turn to page 36, please)

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Federal Reserve Bank of St. Louis

Lincoln Locals ...................................................................................................................... 51
Iowa News .........................................................................................

How Savings and Loan Operates...............................................Allison W augh 57

The Directors’ Room
A Few Short Stories to Make You Laugh......................................................................... 62
Conventions

........ ........................................................................................................................... 62

•

N O R T H W E S T E R N B A N K E R , 527 Seventh St., Des Moines 9, Iowa, Telephone 4 -8 1 6 3
C L IF F O R D D E P U Y , Publisher
R A LPH W. M O O R H EA D
Associate Publisher
H EN R Y H. H A Y N E S
Editor

RU TH K IL L E N
Associate Editor

E L IZ A B E T H C O L E
Advertising Assistant

M A R G U E R IT E B R O W N
Office Supervisor

BETTY M IL L E R
Circulation Department

N EW Y O R K O F F IC E
Frank P. Syms, V ice President, 505 Fifth A v e ., Suite 1806

Telephone MUrray H ill 2-0326

Across the Desk
From the Publisher

5h e a k 'W tn . G . B u llit t :
As the former United States ambassador to
Russia and France, you know something of the
problems facing us when the war is over, and we
quite agree with your statement that “ The or
ganization of peace is a more difficult problem
than the organization of war.”

Nevertheless, we must be making preparations
for the reconstruction period, but are we?
Do we have a foreign policy, and if so, what is
it?
We also agree with your statement that “ Fore
sight and many preparatory decisions and acts are
vital if the moment or opportunity is to be seized.
W e have to know what we want, plan how to get
what we want and act in time, unless victory is
to be barren of peace. A staff for the organization
of peace, working in close contact with the Presi
dent, is no less necessary than a general staff for
the organization of war.
‘ ‘ By our constitution, the Senate has coordinate
power with the President in the matter of treat
ies. A close coordination of thought, intention
and will between the President and the Senate,
therefore, is essential so that the President will
not negotiate treaties which the Senate will reject
and the Senate will not reject treaties negotiated
by the President.”

Certainly, we need “ a staff for the organization
of peace,” but where is it and who is it?
The President is trying to run a one-man show
and he is overworking himself. As one Washing
ton observer pointed out, “ He is part-time Direc
tor of Manpower, Stabilization, War Mobilization,

Northwestern Banker

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Federal Reserve Bank of St. Louis

April 1944

Food, Prices, Treasury, Labor, War Production,
and foreign policy. On many of these matters
he himself decides many details— directly, indi
vidually and personally. I t ’s more than any one
man can do, and do well. Many high officials are
whispering about the situation—both sympatheti
cally and critically.”
We are being outmaneuvered on a dozen differ
ent political fronts throughout the world and our
Atlantic Charter is being disregarded and by
passed when it suits the pleasure of our Allies.
This is not presenting a united front or a united
war policy.
Sure, we will win the war because we have the
power, the men and the material, but certainly,
Mr. Bullitt, we agree that we need a highly com
petent staff for the organization of peace.
With your ability and your background, why
don’t you start such an organization?

2 >ea^i R o b e rt R . JV cM ta n :
Your new book “ Mobilizing for Abundance” is
very startling, indeed.
We disagree with you almost 100 per cent.
Perhaps you gained your “ wild ideas” while
living in Washington and being chairman of the
War Production Board Planning Committtee.
Your main thesis is that thrift is a vice and
that continued government spending is a virtue.
If that is the case, it would mean goodbye to
our free enterprise system, goodbye to the Amer
ica we have known, and goodbye to the funda
mentals which have made America great.

It is hard to believe that you would make such
a statement as “ Thrift is not an economic virtue,
but a vice which brings on depressions. W e ’d be
much better off if everybody spent all his income
and relied on increased social security to take care
of the rainy day. In the booming 1920’s we in
creasingly built new facilities to make more con
sumer goods, but held back about 20 per cent of
our income as savings, instead of using the money
to support expanding production. In the end our
economy crashed.”
“ It is a ‘ pipe dream’ to think that private in
vestment can drain off our national savings of
some $30,000,000; 000 a year. Therefore, govern
ment must offset these savings with continuous
spending to insure the mass consumption of the
products of mass production.”

Now, Mr. Nathan, you are working on the old
New Deal philosophy that we can spend ourselves
rich and drink ourselves sober, but it just can’t
be done.

3 >ea* A . JH . M . l/ U ix ffin 'i:
Risk capital must be encouraged if we are to
make real progress in America.
Your emphasis of that idea in your talk before
the savings division of the American Bankers
Association was very much to the point.
Certainly as president of the A.B.A., what you
have to say should also have some effect on our
policy making bodies at Washington.
Taxes, as you point out, are in many cases, con
fiscatory, and such a tax program will eventually
“ kill the goose that lays the golden eggs.”
You said, “ One of the chief deterrents which
contributes to the lack of faith in the future is
our tax laws. Any system that penalizes risk
taking is a brake on the incentive to pioneer,
create and develop.
‘ ‘ Any tax system that makes a taxpayer absorb
his losses out of his own pocket, but requires him
to share his gains with the government, discour
ages the taking of risks.
“ There should be a several-year, carry forward
and backward on income gains and losses cn which
the tax should be levied only on the net gain. It
is only the income after losses which is the true
income. Mutiple taxation of the same dollar of
income becomes almost confiscatory.”

When the war is over there will be a tremen
dous*demand for goods and services and every

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Federal Reserve Bank of St. Louis

dollar of savings and capital now being stored up
in the banks of the nation can be put to use, both
on the home front and in our foreign trade. There
fore, our tax laws should be so adjusted that risk
capital will come out of its hiding and be ready
to do the job which is needed rather than depend
ing upon government lending agencies which will
simply compete with private banking.

2 >easi (la y A . a4 itch in < jA :
As president of the Irvington National Bank,
New Jersey, you sent a letter to your employes
suggesting that courtesy pays big dividends, and
especially so in these days.
This letter has been called to our attention and
we think it is excellent.
The discourtesies of today will represent lost
business when the war is over.
The kindness and consideration given customers
today will mean increased deposits and increased
business when the war is over.
We heard of one prominent man who does a
good deal of traveling throughout the country
who is making a “ black list” of every company or
concern where he has received discourteous treat
ment, and he says when peace returns he is not
going to patronize any of those institutions or
organizations if he can help it.
You emphasized this same point, Mr. Hitchings,
when yon said, ‘ 1All of us, at one time or another,
in the last few months, have been embarrassed
more than once when a storekeeper or a store
clerk has said to us when we ask for some usual
article, ‘ Naw, we haven’t got that. Don’t you
know there’s a war on?’ W e either get a little
bit provoked or we hang our heads and walk out.
But, in any event, we are certain that we won’t
go into that store again!”

Also, as you pointed out, “ We are never too
busy to be courteous. Just let’s make sure that
each customer we handle receives our utmost in
tact, diplomacy, and courtesy. Let each of ns
remember that during these days of upset, with
everyone’s nerves frayed, with new problems for
all, that just even usual courtesy will pay us big
dividends. Let’s remember that we have many
new customers. Let each teller especially remem
ber that many new customers see in him the whole
character of the bank.”
Courtesy, kindness, and consideration for bank
customers pays bigger dividends than in almost
any other line of activity.

Northwestern Banker

April 1.944

S■H
Kfi

[COMPANY

WheTe Promptness
and Efficiency are
I radi tinns — where
Friendliness is the
rule.
M em be r Fede ral D ep o s it Insurance Corporation

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Federal Reserve Bank of St. Louis

oull find where’eryou roanv
Thai marble floors¿^gilded walls
Can never make a home.
Bui every bouse wherelove ai
And‘friendship is a guest
Is surejy home, adhomesweethome
for there ihe heart can rest
<8>

<8> <8>

Henri/PanDyke

B E IT E V E R SO H U M B LE ”

If you would like extra copies of this picture we will be glad to send them to you with our compliments.— The Northwestern Banker.

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Federal Reserve Bank of St. Louis

Northwestern Banker

April Í944

5 Problems
"

of Bank Management
Turnover in Personnel . . . Declining Market for Loans . . .
Low Return on Investments . . . Lower Net
Earnings . . . Lack of Initiative
By Marshal! Corns
Management and Consultant Engineer

Chicago
M A R SH A L L CORNS
“ A f t e r A l l — I t ’s U p to Y o u ’’

ANKS have lost many of their
young worthwhile male employes
because of the draft. Many female
employes are leaving banks because
of the high wages paid by industry
which have enabled their boy friends,
who are draft proof, to arrive at the
stage where they have sufficient in
come to see their way clear to be
married.
By far and large the greatest trouble
lies in the loss of personnel to war
industries because of the high wages
that are paid. Junior clerks and stenog
raphers in banks who arrive at a sal
ary of $85 to $115 after several years
of experience, find that they can step
into a Government job or an industrial
job and, without any previous experi
ence, receive $140 to $200 per month.
That is big money.
We have been particular in the past
in selecting personnel. They must
have background, possess certain per
sonality traits, and while we have de
manded these characteristics we have
not followed through by paying com
pensating wages. Our neglect in this
respect has also opened the way for
much of the theft that has taken place
in the banks. Salaries in general have
not been based on money handling re
sponsibilities. We blame wage stabil
ization and the War Labor Board for
some of our ills and yet by our own
attitude, in years past, we have in
vited this problem.
The banking
business has offered security, responsi
bility and opportunity, and yet we
know that in most cases the oppor
tunity does not exist in our own banks
to satisfy that inherent human desire
for progress. In times past we have
stalled off raises because the bank

Northwestern Banker

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Federal Reserve Bank of St. Louis

April 194b

was not earning enough money. Now
we stall off raises because the War
Labor Board won’t allow it. Several
of the reasons why the War Labor
Board will not grant increases in
wages is because banks have neglected
in the past to—have any salary policy
—set up performance standards—
grade both employe and jobs—
properly prepare statements on em
ployes and salary which would justify
a raise.
Most important, however, is the ab
sence of collective action on the part
of the banks to make the War Labor
Board and the public realize how im
portant the banks are in the war
effort.

For Men Only
We have always looked upon bank
ing as a male vocation. We have taken
young men into the bank, paid them
small salaries and trained them, and,
particularly in the larger banks, para
lyzed their judgment and initiative by
rules and regulations. It is a long
step between employe status and of
ficer status, and usually by the time
an opening is available in the officer
status, the employe has lost so much
of his initiative that he is not qualified
for an executive job. The result is
that directors, on too many occasions,
have gone outside of their bank for
the officers.
The shortage of male help has ne
cessitated the bringing into banks of
many young girls and while this pro
cedure does not exactly meet with the
established policies of banks, I be
lieve it is a move that can bring much
good to the banking business. These
girls, if properly trained and paid
compensating salaries, will prove loyal,

conscientious employes. The big ad
vantage is that, if employed in normal
times, they will remain for four or
five years and then leave to get mar
ried, with the result that the turn
over, in spite of the inconvenience,
will bring new life, new thoughts, new
viewpoints to the personnel and keep
them all constantly on their toes.
Many of our present troubles with
personnel can be materially reduced
if we will take the time to prepare
employes manuals or hand books to
use in making a new employe familiar
with his job. This will not only
give them knowledge of the bank,
functions of each department and
confidence in their undertaking, but
help them to perform their duties
and take the responsibilities of their
job, in stride. Many of the mistakes
attached to new help are occasioned
because management does not spend
sufficient time and effort to acquaint
new employes with their jobs.

Declining Markets for Loans
Increases in purchasing power have
enabled small borrowers to pay up
their loans. Increases in commodity
prices have made capitalists out of
the farmers who formerly borrowed
from the bank, money necessary to
carry on their cattle feeding opera
tions. The war restrictions on new
construction have closed the avenues
for mortgages. Regulation “W ” and
the absence of consumerable goods,
plus increased income, has practically
eliminated the demand for installment
loans.
The market, however, for loans is
not dried up. There are individuals
making good salaries today who owe
doctor, dentist and trade bills of long

standing. Properly approached and
handled, these people can be encour
aged to pay their bills by borrowing
money from the bank. Many mort
gages, refinanced years ago through
the HOLC or FHA, have now been
paid down where they could be re
financed on a basis mutually advan
tageous to the bank and to the bor
rowers. Corn loans can be made by
the banks on the same basis as now
made by the PCA. But, to get loans
today, you have to go out after them.
You have to explore every opportunity.
In other words, you have to really
work for them. No longer will cus
tomers come to you, you must learn
how to successfully merchandise your
funds and your services.
The greatest opportunity today,
however, in soliciting loans or busi
ness or merchandising services, is the
opportunity it gives you to become
acquainted with new potential cus
tomers and better acquainted with
your present customers.

Low Return On Investments
The law of supply and demand op
erates in the money market the same
as any other commodity market, and,
with increased deposits and the gov
ernment control, low rates, like the
poor, will be with us at least for some
time. We should make up our minds
to this factor and do all we can to
obtain local loans and keep all of our
other funds invested in governments.
We should analyze the makeup of
our deposits and based on this an
alysis, invest the maximum that can
safely be invested in long securities
having a high coupon rate. It will not
do, however, to invest promiscuously,
as to do so may tie up investments
in funds that are of a temporary
nature.

Lower Net Earnings
Lower return on investments, the
absence of local loans, increased de
posits which we are unable to safely
invest at high return, decreases in
service charge income brought about
by increased balances, increased op
erating costs, increased taxes, are pro
ducing lower net profits. Improve
ments in net profit can be effected,
however, through equitable adjust
ments in service charge schedules and
account analysis methods based on
cost, streamlining procedure and by
modernizing methods. This field pre
sents innumerable opportunities for
the wide awake banker. Use of a
Central proof batch system or tape
runs of pay checks, single posting,
delayed posting, elimination of dupli
cate records, the simplification of the
daily statement, the reduction in the
number of internal reports, the stream
lining of directors reports to essen

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Federal Reserve Bank of St. Louis

tials, the stripping of antiquated
phraseology from correspondence, the
staggering of statements and many
other short cuts in bank operations
can be effected with great benefit to the
bank. The sound approach to the
solution of these problems is in know
ing your costs, thoroughly analyzing

your methods and procedures and
eliminating non-essentials. By such
studies the opportunities for improve
ment will, in addition and most im
portant, give a bank an excellent op
portunity to reconstruct their forms
and their procedures to effect compe(Continued on next page)

Good Employe Relations
PEAKING at one of the recent
regional conferences staged by the
SFinancial
Advertisers Association,
Dale Brown, assistant vice president of
the National City Bank, Cleveland,
mentioned a number of things a bank
should be doing to preserve its staff
and use it to full capacity. He men
tioned the following:
“ 1. We should offer the highest de
gree of security and continuity of em
ployment within our power. This can
be accomplished in part by the in
stallation of group life insurance plans
and by pension plans to supplement
inadequate Social Security payments.
“2. Within the current limitations
of the law, we should see to it that
our employes are adequately paid,
and that they have reasonable hope of
advances in pay as they become more
efficient or are given greater respon
sibilities.
“3. We, the management, should
continually have in mind the necessity
of showing our appreciation of our
employes’ work. Someone has said
‘Praise lavishly and criticize sparing
ly.’ Some of us should be prepared at
all times to listen to their troubles,
domestic and otherwise, and help in
their solution.
“4. We should encourage them to
study outside of the bank, especially
under the supervision of the Ameri
can Institute of Banking so they will
be prepared for advancement when
opportunities occur.
“ 5. In the field of customer and pub
lic relations, we should set an exam
ple for them. Public* relations itself
is an art—the art of multiplying good
impressions endlessly; and, if we prac
tice good customer and public rela
tions, our employes will follow our
example.”
The American Institute of Banking
has set up what it calls the Job Instruc
tor Training course, and Mr. Brown
speaks of this course as follows:
“The supervisor who is being in
structed on this method of teaching his
new employes is asked to do four
things,” Mr. Brown explained.
“1. To have a time-table setting a
definite time by which he expects the
learner to master a specified operation.

“2. To make a complete break-down
of the job, noting each step that moves
the operation toward completion and
checking every key point that might
either make or break the job.
“3. To have the right equipment and
the proper materials ready at the point
of instruction, and

DALE BROW N
“ Increase Staff E fficien cy’’

“4. Correctly arranged just as the
trainee is expected to keep it and use
it.
“Then he is asked to follow four
principals while teaching:
“First: Prepare the learner to receive
the instruction by putting him at ease
both mentally and physically, and get
ting him interested in the importance
of his job.
“ Second: Present the operation to
him by telling him about it, showing
him how to do it and illustrate the do
ing, explaining each step as he goes
along.
“ Third: Having the learner perform
the operation while verbally explain
ing, what he is doing, and,
“Fourth: Tapering off the supervi
sion rapidly by putting the learner on
his own and frequently checking his
performance until he can carry on
with general and not specific super
vision.”
Northwestern Banker

April 1944

Creating 77G ood W ill77 for O u r Bank
Pretty close to as complete a publicity scheme as you'll find is this one of
a bank which not only attracts attention and entertains, but educates,
provides opportunity for many personal contacts and creates heaps of
good will.
AY down south in Sylvania,
Georgia, comes an excellent
idea that will boost any bank
with its community. The Bank of
Screven County, in Sylvania, makes
its own publicity by taking movies in
technicolor of livestock and of the
many other local projects to be shown
at various farm meetings held from
time to time throughout the county.
The bank aims to promote the im
provement of the community’s inter
ests and the pictures are a visual rec
ord of their progress.
President John A. Mills, Jr., explains
the bank’s idea:
“We started about 1937 taking mov
ies of the local fat cattle shows and
showing this film to the audience of
the various county agricultural meet
ings. From this, we began photograph
ing various 4-H and FFA projects un
der the supervision of the three voca

tional agricultural teachers. We also
made pictures of protected and unpro
tected timber land, forest fires, soil
building practices, and the like.
These films were also shown by the
county agent at his meetings with the
farmers about the county. On most
occasions, the writer accompanied the
county agent and made a few remarks
concerning the various films, stressing
always the fact that our bank was
particularly anxious to assist the
farmers in the improvement of their
livestock, soil and pastures.
“Our 16 mm. movie camera and
projector cost about $175; the techni
color films of one hundred feet cost
about $8 each. In my opinion this,
together with other activities among
the farmers, has resulted in a large
increase of better grade livestock in
our county, which has, in turn, de
veloped into a considerable propor

tion of our loan volume. At the pres
ent time, about fifty per cent of our
loans consists of those secured by cat
tle and hogs. This has been a very
profitable business as we have never
sustained a loss on a loan of this na
ture.
“The local stockyard holds weekly
auction sales and the volume has risen,
during the past five or six years, from
about $5,000 weekly average to about
$17,000 weekly average.
I would like to say that, in my
opinion, our success in the develop
ment of livestock is largely due to the
work through the 4-H and FFA boys.
Their projects have been a visible
demonstration to their fathers and
neighbors of what good blooded live
stock and proper feeding methods will
do for the farmers in the way of net
profit.”

Five Problems of Bank Management
(Continued from page 15)
tent systems of internal audit con
trols.

Lack of Initiative
We constantly discuss initiative, but
I wonder if we recognize as frequently
as we should the absence of it. In
itiative is the power to place into
practice ideas. It is a very common
practice in banking to find bank of
ficers who readily admit the changes
in policies or methods of operation are
desirable, but as the excuse for their
inaction, hang their initiative on the
tree by stating, they are willing to
do something if the other banks will,
or—now is not just the right time, so
we will have to wait. Eventually
they come to the point where they
make the changes, but by that time
it is too late to gain all the benefits
that could have been secured.
Too many bankers are affected by
the disease known as Smug Complac
ency, which is the paralysis of the
middle region which requires im
mobility of the parts affected and the
closing of the eyes and the mind to
many new ideas or suggestions.
Northwestern Banker

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Federal Reserve Bank of St. Louis

April 7.944

Too many bankers today are think
ing of uniformity. Uniformity pre
supposes—uniform service charges—
uniform methods of operation—uni
form management—uniform services
and uniform ability. Uniformity elim
inates initiative, disregards ability and
ultimately results in stagnation.
Business has always paid a premium
for ability and good management. By
destroying initiative and limiting
ability through the adoption of uni
form charges and standardization
bankers are indirectly subscribing to
the very thing the American business
man is fighting, regimentation.
Today, with its disappointments and
uncertainties, is still an opportune
time to think about the plan for post
war business from the loaning stand
point.
It is a time to analyze your
community and find out when this war
is over—
How many homes in your commu
nity will need new roofs, plumbing, re
modeling, painting and decorating?
Where is the money coming from?

From you, of course—IF—you are still
in business.
How many families in your com
munity presently unable to purchase
consumer goods are going to need a
new car, washing machine, furniture
and other household goods? Where
are they going to get the money?
From you—or—the finance com
panies? ISN’T THIS UP TO YOU?
How many business men in your
community will need to remodel their
stores—put in new lines of mer
chandise — modernize their equip
ment? How are these changes going
to be financed? Trade credit? Finance
Companies?—or—Are you going to be
ready to step in and supply their
needs?
We could go on indefinitely. The
possibilities are too numerous to men
tion.
While it is often said that war bonds
will be used, when the war is over, to
purchase homes, cars and consumer
goods, a survey recently made shows
that over fifty per cent of the people
(Turn to page 28, please)

W hat W ill Happen to Interest Rates
W h en the W a r Is O ve r
Bankers Give Their Views on This Important Subject to
The Northwestern Banker
e s p o n d in g

to a

inquiry as to their opinion
R
on the outlook for interest rates when
B anker

n orth w estern

less will not move back much beyond
3 per cent. We simply do not believe
it will remain forever where it is
today.”

ally give way to increased business ac
tivity.
“That the reconversion recession
will be followed by a boom and hence
by higher rates of interest finds sub
stantiation in the developments in this
country after the first World War. For
several months following the Armis
tice (November 11, 1918) business ac
tivity receded. The period of recession
terminated in April, 1919, and was
succeeded by a period of expanding
business which continued until Janu
ary, 1920. This period of business ex
pansion was accompanied by sharply
rising stock prices which reached a
peak in July, 1919, by sharply advanc
ing commodity prices which reached
a peak in May, 1920, and by a sharp
advance in interest rates which
reached a peak in August, 1920, when
the average yield on long-term United
States bonds was 5.67 per cent and the
(Turn to page 28, please)

we return to a reasonably normal
peacetime basis, four financial leaders
Roland C. Irvine, vice president, Chase
expressed themselves as follows:
S. C. Pidgeon, vice president, Bank National Bank, New York:
“ The trend of interest rates in the
ers Trust, Des Moines: “ It is my opin
ion that we will continue on a low years immediately following the end of
interest rate basis for several years. the war will depend largely upon the
By this I mean rates at or near their question as to whether the reconver
present levels. The Treasury Depart sion recession is followed by boom or
ment will undoubtedly continue low depression. Whether boom or depres
interest rates on Government Bonds, sion develops will depend in turn on
at least during the years of refinancing, psychological attitudes and the readi
and this will set the pattern and to a ness and willingness of individuals and
great degree control other types of businesses to make expenditures. If
financing. I also believe money will the reconversion recession is followed
be quite plentiful and if this is so, it by a boom, leading to or accompanied
will also hold rates down.”
by price inflation, interest rates will
Shirley S. Ford, president, North rise. If, on the other hand, it is fol
western National Bank of Minneapolis: lowed by a depression, the present
“ I think the outlook for interest rates level of interest rates will probably
would be somewhere near the present persist until depression conditions fin
level, but not much higher. This
statement is predicated on a rise in
commercial bank deposits in the post
war period, a small demand for com
mercial loans and moderate inflation.
“The powers of the Treasury and
the Federal Reserve System are very
great and there is no doubt that every
effort will be made to maintain sub
stantial stability in the long term rates
for some years after the war.”
C.
C. Rieger, manager, Bond Depart
ment, Jamieson & Company, Minne
apolis: “ I would state that too many
believe that the primary use for idle
funds is to rent them to others. This
is true only if the advantages and
risks of rental appear more attractive
than the advantages and risks of other
use. When rates are too low, funds
simply remain idle or are put to use
Members of the Sub-Committee on Agricultural Credit of the A.B .A. Commit
in some other way. This always has
tee on Federal Legislation were in Washington last month reviewing the status
been true and no good reason ever
of legislation related to country bank problems.
has been advanced why it should not
From left to right are: A . G. Brown, deputy manager of the Association; John
continue to be true.
H. Crocker, vice president, Citizens National Bank, Decatur, Illinois; Edgar M c
Bride, vice president, Nebraska Bankers Association and president of the Com
“There has been a slow tidal move
mercial Bank, Blue Hill, Nebraska; Charles T. O ’ Neill, chairman of the sub
ment toward a lower base rate for
committee and vice president, National Bank and Trust Company, Charlottes
money which took the rate down from
ville, Virginia; John N. Thomson, vice president and cashier, Bank of Center
7 per cent to 4 per cent in the fifty
ville, Centerville, South Dakota; Ben S. Summerwill, president, Iowa State Bank
years between 1880 and 1930. But
& Trust Company, Iowa City, Iowa.
that slow—and slowing — movement
Also in attendance were: Edmund W . Thomas, president, First National Bank,
would scarcely have carried the rate
Gettysburg, Pennsylvania, and Otis A . Thompson, chairman, A.B .A . Agricultural
below 3V2 per cent by now. And per
Commission and president, National Bank and Trust Company, Norwich, New
haps today’s base rate of 2 per cent or
York.

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Federal Reserve Bank of St. Louis

Agricultural Credit Committee Meets

Northwestern Banker

April 1944

N e w s a n d V ie w s
O F THE

B A N K IN G

W O RLD

By Clifford DePuy
formerly financial
and business editor of the Chicago
P
Sun and previous to that, editor of
HIL S. HANNA,

the Chicago Journal of Commerce, has
joined the Automotive Council for War
Production at Detroit and will be as
sistant to George Romney, director.
Mr. Hanna is well known through
out the middle west, where he made
many speeches before bankers’ meet
ings and business associations.

over a medical corpsman who agreed
to give the Jap some morphine. He
bent low ovrer him, saying, ‘I’m going
to give you a shot of morphine to ease
your pain. Do you understand? The
Jap answered, ‘Sure, Bud, I went to
Cal. Tech.’ As the corpsman eased the
syringe gently into the wounded man’s
arm, the Jap rolled over and lunged
with a concealed bolo knife—and
ripped that corpsman wide open from
throat to belly.”

Senator Edwin C. Johnson of Colo

rado and a member of the Democratic
party was opposed to a third term and
he is also opposed to a fourth term
for Mr. Roosevelt, and says, “One man
control has reduced the Democratic
party to hopeless impotency. It no
longer has the inclination or the will
to resist those who would rape it. The
Democratic party is no longer demo
cratic. One man will name its candi
date for president—its candidate for
vice president, and write its platform
just as was done in 1940.”

Ed. F. Buckley, president of the
Central National Bank and Trust Com
pany of Des Moines, has been elected
president of the Des Moines Rotary
Club for the coming year.
During the past twelve months, Ed
has been vice president of the Rotary

And then he told the following story:

Northwestern Banker

April

“To have and to hold” is a new
Treasury slogan, being adopted for
newspaper and radio announcements
so that the holders of E bonds will
not cash them the minute the war
is over.
The Treasury says, “GO million hold

J. Clifford Folger, president of the
Investment Bankers Association of
America, believes that American peo
ple “are building up the largest private
investment reserve ever known and
this investment reserve is the greatest
postwar recovery force in the world.”
He believes that if investment bank
ers measure up to their responsibility,
“We may do the most satisfactory busi
ness we have ever known,” when the
war is over.

diers were ruthlessly cruel and bar
barously treacherous.”

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Federal Reserve Bank of St. Louis

neered the clinical use of penicillin.”

ers of E bonds lined up before the
postoffices and banks on the day after
tomorrow would be disastrous to our
economic structure.”

Sergeant Bill Caldwell of New York
has been on 68 bombing missions in
the Pacific and has shot down 19
enemy planes. When he was asked
recently whether the Japanese atrocity
stories were correct, he said every one
of them was true and “Japanese sol

“Walking across Henderson Field at
eleven o’clock one night, a sergeant
saw a figure moving on the wingtip
of his Fortress. He called out, ‘Hey,
Joe, what you working on?’ The figure
replies, ‘Good evening, sergeant! I am
testing for water in the carburetor.’ No
American would ever reply, ‘Good eve
ning, sergeant,’ nor be fool enough to
look for water in the carburetor out on
the wingtip.
“The Japs had recently been infil
trating through our lines at night, and
sabotaging planes, storage supplies,
etc. We learned quickly to take no
chances. The sergeant fired his Reising gun five times, and the figure top
pled off the wing. The sergeant ran
over—and found a Jap severely
wounded. Five .45 bullets make a
nasty wound, and half the Jap’s guts
were blown out. The enemy was in
terrible pain, and the sergeant called

this research is now saving hundreds
of lives of American soldiers through
out the world.
“ In May, 1936, the Rockefeller Foun
dation received a letter from Dr. H. W.
Florey, a professor of pathology at
Oxford, applying for a grant-in-aid of
$1,280. Dr. Florey, who was a former
Rockefeller Foundation fellow, ex
plained that he was developing a
chemical approach to problems of path
ology.
He had recently added a
biochemist to his staff and had en
gaged a second chemist to join the
group in September; the funds were
needed to provide laboratory equip
ment.
“The grant was made at once, and
seldom has so small a contribution led
to such momentous results. For it was
this laboratory, this equipment and
this group under Dr. Florey that pio

E. F. B U C K L E Y
Heads Des M oines R otary Club

Club and has been active in the affairs
of the Association.
In view of the fact that there was no
other nominee for the presidency, due
to Ed’s popularity, he really had a
“tough battle” but he came out tri
umphant and successful when the bal
lots were counted.
In reading the annual report of the
“Rockefeller Foundation,” we noticed

this very important statement, which
we are sure will also be highly inter
esting to you because the product of

Mrs. Elliott Roosevelt, whose maiden
name was Ruth Goggius of Ft. Worth,
Texas, and who is seeking a divorce
from Colonel Roosevelt, was married
at the home of George C. Swiler, presi
dent of the Burlington Savings Bank
of Burlington, Iowa. Mr. and Mrs.
Swiler are uncle and aunt of Mrs.
Roosevelt.
Adolph G. Sam, president of the
First National Bank of Sioux City,
Iowa, sent us the following story
which we think is very apropos: “ The
hard-hearted banker stories are being
revived. This one was told of the visi
tor in the banker’s office. He heard
the banker speak over the telephone,
to a caller: ‘No . . . No . . . No . . .
No . . . No . . . Yes . . . No . . . No
No . . No . . . No . . .’ T heard all

(Turn to page 31, please)

Prompt Transit Service

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Federal Reserve Bank of St. Louis

THE
OMAHA
NATIONAL
BANK
Northwestern Banker

April Í944

A re

W ar

BondsSubject to
ings?

Yes, If Purchase Is Made Through Payroll Allotment Plan

MITH was indebted to an Iowa

S bank. He was engaged in essential
war work and was buying United
States savings bonds with a percentage
of his monthly wages. The bank
sought to subject the bonds to the pay
ment of Smith’s indebtedness to it
through judicial proceedings. Could it
do so?
Yes. United States savings bonds
purchased by the withholding of a per
centage of a person’s wages while he
is engaged in essential war work are
subject to levy in judicial proceedings.

Brown owned certain real estate in
Iowa. Jackson owned the coal under
lying the surface. The taxes on the
property were not paid when they
came due and the property was sold at
a tax sale. The coal belonging to Jackson was not separately assessed. Did
the tax sale cut off the interests of
both Brown and Jackson in the prop
erty?
Yes. The ownership of the coal un
der the surface of land is an interest
in realty and, unless it is separately
assessed, such interest is cut off by a
tax sale of the land.

Matthewson, a South Dakota banker,
entered into a contract with Horton
whereby Horton was employed to pro
mote and sell a patented device in
vented by Matthewson. Horton, as an
incident thereto, received funds from
time to time which he commingled
with his own funds. Matthewson ob
jected thereto on numerous occasions
but Horton failed and neglected to
keep Matthewson’s funds separate
from his own. By reason of this, Mat
thewson eventually discharged Horton.
Was he within his legal rights in do
ing so?
Yes. An employment or agency con
tract may be terminated by the em
ployer for any wilful breach of duty by
the employe or agent. The comming
ling by an employe of his employer’s

Banker
Digitized for Northwestern
FRASER
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Federal Reserve Bank of St. Louis

April 1944

These and Other Timely Legal
Questions Are Answered
By the
LEG A L DEPARTM ENT

funds with his own funds constitutes
such a breach of duty.

Shannon, a banker, was injured in
Iowa in a collision between the auto
mobile he was driving and a railroad
train. A damage suit was filed by him
against the railroad company, in which
he alleged that the collision occurred
as a result of the railroad operating its
train at an unreasonable speed. In
cases of this kind, what is the general
rule regarding whether the speed of a
train is negligence?
The speed of a train is not in and of
itself negligence except where it is con
trary to statutes or ordinances, but any
speed may constitute negligence if, in
the circumstances, reasonable pru
dence calls for a lesser speed.

Bolian, a banker, acted as the trus
tee of certain trusts in Iowa. As an
incident thereto, he rendered profes
sional and other services not usually
rendered by trustees in the administra
tion of trusts. The circumstances in
which he acted as trustee were such
that there was no statute providing a
definite rule for the fixing of the
amount of his compensation. Was it
in order to award him extra compensa
tion for such extra services?
Yes. A trustee rendering profession
al or other services not usually ren
dered by trustees in the administration
of trusts, such extra services as attor
ney or real estate agent, may be
awarded extra compensation therefor
in an amount representing the failvalue thereof in the absence of a stat
ute providing a definite rule for fixing
the amount of the trustee’s compensa
tion.

Blackwell, a Minnesota banker,
owned certain real estate there. As
an incident to the construction of a
work relief project, the real estate was
flooded in a manner that resulted in a
serious interruption to its common and
necessary use. The Minnesota consti
tution provides that private property
shall not be taken for public use with
out compensation. Should Blackwell
be compensated for the flooding of his
property?
Yes. The flooding of land which re
sults in the serious interruption of its
common and necessary use is a “tak
ing” of property within a constitutional
provision prohibiting the taking of pri
vate property for public use without
:ust compensation. Tt has been so held
by the Minnesota Supreme Court and
the United States Supreme Court.

Suppose-that in the preceding ques
tion the state had sought to avoid its
duty to compensate for the land taken
on the ground that the funds provided
for the work relief project were ex
hausted. Would such a position be
recognized as legal and valid by the
courts?
No. A state cannot avoid its duty to
compensate for lands taken on the
ground that the funds provided for the
project are exhausted. The courts will
assume that the legislature will respect
constitutional mandates.

Hodges entered into a contract with
Craig to sell to him 80 acres of land in
Iowa. The contract was duly delivered
to Craig. Hodges did not go through
with the deal and Craig sued Hodges
to compel specific performance of the
contract. Hodges urged as a defense
that he had not been furnished with a
duplicate copy of the agreement to sell.
Was such defense good?
No. The general rule as to delivery
of written instruments does not re
quire that a copy or a duplicate be de
livered to each of the parties in order
to render the agreement effective. If
there is a legal delivery of an original
contract, the failure to deliver the dup-

(Turn to page 40, please)

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N am eM A N U F A C T U R E D

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Federal Reserve Bank of St. Louis

H A M M E R M I L L

PAPER

C O M P A N Y ,

ERIE,

PA. ,

F O U N D E D

Northwestern Banker

1898

April 19Ü

Is There a Land Boom?
Basing their predictions on the past tew good years, farmers and others
investing in land are very optimistic in regard to the future.
But they are, also, looking at the signs of farm land inflation
which are becoming increasingly evident and re
membering the last land boom and what
it did to agriculture.
S THE price of farm land increasing
. too fast? Will there be a repetition
. of the land boom of the First World
War?
Questions such as these should be
considered before buying a farm. It is

highly important for a farmer, buying
additional land to round out his farm
ing unit, or a renter to buy at a price
based on the earnings of the land over
a period of years. Otherwise, he may
later find himself with a large mort-

COMMERCIAL BANKS

PERCENT CHANGE IN AVERAGE SIZE OF FARM MORTGAGES RECORDED

Northwestern Banker

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Federal Reserve Bank of St. Louis

ALL LENDERS

April /.944

By M arie Puhr
Information Assistant
Information and Extension Division
Farm C r e d it Administration
Kansas C ity , Missouri

gage and with not enough income from
the farm to pay the interest and pro
vide a living for his family.
At the present time the price of farm
land is increasing. These high farm
land prices are due largely to the fact
that farm income is the highest on
record. Cash farm income for 1943 was
around $20',000,000,000 for the country.
In many sections, farm land prices
have soared from an increase in in
come from just one or more years.
Take, for instance, South Dakota
where farm income for the first nine
months of 1943 was 52.6 per cent higher
than for the same period the year be
fore. Farm real estate prices rose 33
per cent over 1942. North Dakota with
a 68.2 per cent increase in farm income
shows land selling for 20 per cent high
er, and Nebraska’s 44.4 per cent in
crease in farm income reflects land
prices 31 per cent higher.
Iowa and Minnesota, with smaller
increases in farm income, show farm
land prices higher by 19 and 14 per
cent respectively.
In certain areas of these states the
increase in farm land prices is much
larger than the state average. In
creases of 41 per cent in the corn belt
area of South Dakota in a year, and
from 20 to 30 per cent in the western
three-fourths of Iowa, the Red River
Valley of Minnesota, and western
North Dakota, are the result of unusu
ally large production and good prices
for crops and livestock.
Large increases in land values in
these areas are not entirely unwar
ranted. Farm land for a number of
years in parts of these five states has
been selling for much below what
might be considered the normal value.
A series of dry years and poor crops
in certain areas has held land prices to
a minimum. Unusually large holdings
by credit agencies also have tended to

. . . I N

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Federal Reserve Bank of St. Louis

THE

PHILADELPHIA

AREA

For many years the Philadelphia National has served
hundreds o f the c o u n try ’s leading institutions as
corresp o n d en t. This is not only because

ours is

P ennsylvania’s oldest and largest bank — it is also
because we have always placed special emphasis on
correspondent bank relations as a major element in
our business.
Our officers will be glad to answer inquiries from any
interested institution — either relating to our corre
spondent bank facilities or to supply inform ation
concerning trade conditions in the Philadelphia area.

THE P H IL A D E L P H IA
N A T I O N A L
B A N K
PHILADELPHIA

PA.

★

ORGANIZED

Resources over $750,000,000
M E M B E R O F FE D E R A L D E P O S IT IN S U R A N C E

C O R P O R A T IO N

1803

24
keep land prices down. In fact, for the
year ending March, 1943, land values
in North Dakota were only 90 per cent
of the 1935-39 average; in South Da
kota and Nebraska they stood at 91.
Exceptionally high farm income has
attracted investors other than farmers.
As a result, farmers and renters in
buying land have as competitors non
farmers of the area, the business men
and professional people in the small to
medium-sized towns. In some areas of
these states, especially around the
cities, there is some buying as a hedge
against inflation, the buyers anticipat
ing moving on the land when jobs in
cities become scarce.

In the middle west large numbers of
young farmers and renters have moved
up to farm ownership in the past few
years. This is a healthy sign. How
ever, in some areas competitive bidding
by non-farmer buyers is now forcing
prices higher than renters with limited
down payments can afford to pay.
Many n on -fa rm e r investors have
money to pay for a farm outright.
They are able to make much larger
payments. A renter usually has only
a small down payment. The number
of renters and farmers buying land,
more than 60 per cent of the total in
1942 in the north central states,

WAR EXPANSI ON
NVESTMENT in new industrial plants and in expansion of
existing plant facilities in Metropolitan Chicago since June,
1940 totals more than one billion dollars. Industrial employ
ment has risen 50% in this period and the aggregate payroll
has more than doubled.

The American National Bank has kept pace with the greater
responsibilities occasioned by this advance. Similarly, we are
prepared to render more than routine service to correspondent
banks also facing added calls upon their resources due to local
expansion. When requested, we are in position to assist such
banks in meeting the credit requirements of their customers
engaged in war production.

A ME RI CA N NATI ONAL BANK
A ND TRUST COMPANY
O F

C H IC A G O

LA S A L L E S T R E E T

AT W A S H I N G T O N

------------------------------------------ -- ---------------------------- ------------------------Member Federal Deposit "gjfflIlIjS E Insurance Corporation

O U R

Northwestern Banker

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Federal Reserve Bank of St. Louis

I S

April M'i'i

T O

H E L P

dropped to around 50 per cent in the
first nine months of 1943.
Certain ominous signs which point
to farm land inflation, increase in the
size of mortgages, greatly increased
sales volume, more credit extended for
land purchases, and a larger number
of loans made by individuals, are pres
ent now.
Mortgages on farm land are being
made for much larger amounts than in
1940. For example, in Iowa the aver
age size of mortgages three years ago
was $4,900, but in 1943 it was $6,200;
in South Dakota, in the same time, the
size of mortgage increased from $2,100
to $3,000; in North Dakota, $1,700 to
$3,200; in Minnesota, $3,400 to $4,000,
and in Nebraska, $3,300 to $4,000.
In the eastern half of South Dakota
the average size of farm mortgage
taken by commercial banks increased
more than 100 per cent in three years.
Although not nearly this high in other
areas, the size of commercial bank
loans has increased generally through
out the five states.
Increases in the size of loans made
by individuals on mortgage security
were largest for the five states in Iowa
where they went from an average of
$3,200 to $4,600 in the three years from
19401to 1943. Among the other lenders
in that state, insurance companies
showed largest increase, with the aver
age size of loans going from $7,800 to
$9,600. The amount of loans made by
individuals in all five states showed
substantial increases in both size and
amount.
Credit extended by all leaders on
farm mortgage security in the five
states was larger in amount in 1943
than in 1940, averaging 29 per cent
higher. The number of loans made in
Minnesota and Iowa were slightly less,
with the number and amount more
than doubling in both North and South
Dakota.
Nearly 40 per cent of all financing in
the five states was by insurance compa
nies, which included about 25 per cent
of the number of loans.
,
Many renters, farmers buying addi
tional land to operate, and investors as
well, are of the opinion that it may be
wise to pay slightly more than normal
value for a farm at this time in order
to have the use of the land during the
high income period. They state that
with the present income they can pay
off enough of the mortgage in a short
time to insure a safe equity in the land
when prices again are normal.
Farmers are expecting prices to be
normal again. A recent poll by an
Iowa farm journal found most Iowa
farmers believed hogs would be worth
about $7.50 per hundredweight after
(Turn to page 27, please)

" A n excellent directory."
First State Bank, Belmond, Iowa

"We substitute your excellent direc
tory for the large directory."
State Bank of Liberty, Nebraska.

"It's the best directory published and
just the right size so one can carry it
in the pocket daily ."
Bennett State Bank, Bennett, Iowa.

"Y o u r bank directory is a ve ry handy
and complete book."
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IT'S ALMOST READY
The new 1944 edition of the lowa-Nebraska Bank Directory will be
ready soon. In it you'll find the most complete and latest informa
tion on Iowa and Nebraska banks,

including

personnel,

capital,

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ent banks and other valuable data.

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1 944 lowa-Nebraska
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lowa-Nebraska Bank Directory -------------------------------------------------- 1944
527 Seventh Street
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Gentlemen:
Please send_____________copies of your 1944 lowa-Nebraska Bank

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Bank----------------------------------------------------------------------------------------------------------Officer---- ---------------------- -------------------------------------------------------iJ-----------------

City____________________________________State---------------------------------------------

Northwestern Banker

April Î3A4

Question: Do you think labor
unions will grow stronger or weak
er after the war?
T. A. Tollefson, cashier, First Na
tional Bank, Dickinson, North Dakota:
“ It is my opinion, based upon ob
servation during the past forty years
or more through all the ups and downs
of our economic variations, that labor
unions will not become weaker and
while some minor adjustments will no
doubt have to be accomplished, they
must be adjustments that are reason
able and justifiable.
“ If we are to maintain a sound dem
ocratic economy, capital and labor

Federal Intermediate Credit Bank
Consolidated Debentures Offer...

Investm ent
D iversification
Substantial investors . . such as commercial and

—

savings banks, insurance companies, estates,
business institutions . . seek diversity for their
portfolios. This desirable quality is inherent in

must meet each other on common
ground, now more nearly accomplished
than in any other period in the history
of our republic. It is my further be
lief that employers should concede
every fair demand of labor unions that
will be for the best interests of both
labor and capital, as nothing can be
gained by one taking advantage of the
other.”
C. A. Slife, cashier, Farmers State
Bank, Hawarden, Iowa:
“My guess is that labor unions are
destined to become stronger after the
war if employment is not readily avail
able to the millions who will have no
jobs to return to.
“Personally, I am in favor of well
managed labor unions, but against
radical racketeering labor leaders.
Likewise, I am in favor of well man
aged business, big or little, but against
high finance, monopolistic enterprise,
under ‘public be damned’ management.
Here’s hoping that both labor and
capital will see the light before it is
too late.”
F. A. Timm, president and cashier,
Farmers and Merchants State Bank,
Balaton, Minnesota:
“Unless labor unions mend their
ways they will get weaker after this
war is over. Public opinion plus opin
ion of men in service are opposed to
present actions of labor unions during
war. Veterans of this war combined
with veterans of the last war are going
to have a lot to say about future legis
lation regarding labor unions and this
legislation will not be favorable to
labor unions if they do not change
their methods.”

debentures issued, under the Federal Farm Loan A ct as
amended, by the Federal Intermediate Credit Banks.
A s joint and several obligations o f the issuing
banks, these debentures provide a desirable medium
for safe employment o f short term funds. They
are backed by sound agricultural paper,
varied widely in region and enterprise, plus
combined assets o f the twelve obligors. Maturities
range from three months to one year and are
available in denominations o f $ 5 ,0 0 0 to $ 1 0 0 ,0 0 0 .

THE FEDERAL INTERMEDIATE CREDIT BANKS
Inquiries respecting monthly offerings by dealers and dealer banks or
requests for further pertinent information should be addressed to

C H A R L E S R . D U N N , Fiscal A g e n t

31 N

assau

Northwestern Banker

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Federal Reserve Bank of St. Louis

St r e et , N

April 19'th

Y o r k 5, N . Y.

T. E. Wangsness, vice president and
cashier, First National Bank of Garretson, South Dakota:
“ In my opinion labor unions will be
stronger after the war. They are heav
ily entrenched financially and are
already making a bid for servicemen’s
support through their ‘relief funds.’
But with increased strength should
come additional wisdom to bring about
better relations between capital, labor
and management.”
E. G. Hanson, cashier, Farmers State
Bank, Crosby, North Dakota:
“ It is my opinion that the labor
unions will grow weaker after the wax',
due to the fact that a percentage of the
members are opposed to so many con
tinuous demands and the number of
strikes.”

Love Making
Making love is like making pie. All
you need is crust and a lot of apple
sauce.

The Banks and the Public
By Lewis F. G ordon
President
Financial Advertisers Association
F YOU were to question any given
number of people as to what they
would designate as the material things
most vital to life, you would probably
get various answers. Air, food and
drink would undoubtedly be rated
among the tops. Yet any answer
would be wrong unless that answer
included money. Money is completely
interlocked with every phase of exist
ence from our pre-natal stage through
interment after death. Whether you
are in total agreement with this thesis,
you must admit that from the first
lisping plea of the small child, “Mother
gimme a penny,” to the loud and force
ful call of Secretary Morgenthau, the
mind of each reasoning human being
is more engrossed directly or indirect
ly, in earning and acquiring money
than in any other single endeavor.
And, finally, the banks of the nation
stand squarely in the midst of all these
human endeavors and it is into our
hands that the ultimate result of all
these endeavors finally passes.
The old days of “ sticking an ad in
the paper” or “glad-handing a few
people” and calling it Public Rela
tions are gone. Today it is a real
science—a job which is constantly as
suming greater stature and importance
in the banks of the nation as its signifi
cance to the future of banking becomes
better understood. The job calls for
a tremendous combination of knowl
edge and experience. It embraces an
understanding of bank operations and
services. It demands more than a
smattering of psychology as applied to
human behavior. It requires the abil
ity to analyze and interpret. It calls
for knowledge and ability to market,
merchandise and advertise—all these
as applied to banking.

ating to keep farm land prices at rea
sonable levels. The lack of farm ma
chinery and supplies and the fear of
farm labor shortages have exerted a
considerable influence. The conserva
tive normal value used in appraising
farm land by the Federal land banks
and other institutional lenders is im-

portant. Farm purchase of War Bonds
and income tax payments are taking a
good portion of the net farm income.
Higher operating costs are also a fac
tor.
A substantial though greatly reduced
amount of land in the hands of unwill
ing owners is important.
Farmers haven’t forgotten the last
land boom. The memory of what that
catastrophe did to agriculture is an im
portant factor in keeping farmers from
making large mortgages which they
will be unable to handle when prices
return to normal. Buyers are better
able to differentiate between market

the

value of

Experience

IN MOVING LARGE BLOCKS
OF SECURITIES
npHE

successful disposal of blocks o f se-

curities usually requires extensive facili
ties plus the valuable quality o f experience.
We have been closely associated with sec
ondary distributions for many years and with
special offerings since their inception. This
provides us with that invaluable sense of tim

ing and "know how” that are o f definite
advantage in disposing o f blocks o f securities
of all types and sizes.
W hether you have occasion now to seek
such services for institutions, estates or large
private investors, or expect to require them in
the future, one of our executives specializing
in such distributions would be glad to under
take to assist you. Related consultations are,

T O BUY— O R N O T T O BUY

o f course, strictly confidential.

(Continued from page 24)
the war, which is a high average figure
in terms of prices a few years back.
Because of the usual relationships of
hog prices to those of other commodi
ties, the comparable price of corn
would be 56 cents a bushel, oats about
30 cents, and soybeans $1.12. Farmers
buying land at this time might figure
the value of their farms based on these
prices.
Despite the fact that many signs
point to farm land inflation, there are
still a number of factors that are oper

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Federal Reserve Bank of St. Louis

Merrill Lynch, P ierce, F enner & B eane
Underwriters and Distributors of Investment Securities
Brokers in Securities and Commodities
70 PINE STREET

N E W YO R K 5, N. Y .
Branch Offices in 85 Cities

Northwestern Banker

April

•

price and long-time values than they
were in 1919 and 1920.
A few good years may make farmers
and others investing in land too opti
mistic in regard to future years. Fa
vorable weather conditions have pre
vailed in many areas of these five
states in the past year or two. High
yields and high farm commodity prices
are responsible for the extremely high
farm incomes. It can hardly be ex
pected that the same rate of production
will continue any more than that high
prices for farm products will carry into
the future.
But farmers should have an oppor
tunity to round out their farming units
by purchasing land at reasonable
prices. Renters should be able to move
up to farm ownership safely. Invest
ors should find a fairly profitable out
let for their funds in land ownership.
This is possible if land continues to sell
at a price based on its earning power
over a period of years.

Fouled
Lester: C’mon, get cleaned up and
I’ll get you a date.
Chester: Yeah, and then suppose
you don’t get me the date?

blows no good and while the present
is a challenge, it is a challenge that can
be met and vanquished.

INTEREST RATES
(Continued from page 17)
rate on 4 to 6 months’ commercial
paper, 8 per cent.
“ If after the close of this war, the
reconversion recession is followed by
a high level of business activity and
inflation, a rise in interest rates will
take place when the monetary au
thorities decide that the expansion in
bank credit must be checked in order
to stop further declines in the pur
chasing power of the dollar. This will
produce tight money conditions just
as the earlier expansion in credit pro
duced easy money conditions. When
interest rates rise, the transition will
probably be very sharp. Short rates
will lead the increase and will rise
relatively much more than long rates.”

Now is the time when a great op
portunity is presented to the bankers
of the country to streamline their
operations—organize their programs—
modernize their thinking—and plan
for the future. Changes necessary to
bring about improvement can be more
easily undertaken now than later, be
cause they are expected by the public
in the interest of the war effort.
In the final analysis—it is YOUR
bank and YOUR community. No one
but yourselves will be held account
able for performances or results. After
all—it is up to YOU.

New Assistant
Vice President

BANK M A N A G E M E N T
(Continued from page 16)
will not disturb this nest egg, but will
buy new cars and other consumerable
goods either out of earnings or on
time.
Truly, however, it is an ill wind that

Appointment of Henry J. Court as
assistant vice president in the banks
and bankers department of Bank of
America at the Los Angeles headquar
ters has been announced by L. M.
Giannini, president of the institution.

51 st ANNUAL FINANCIAL STATEMENT
As of December 31, 1943
ADMITTED

ASSETS

Mortgage Loans ...............................................$ 227,568.18
Bonds and Stocks (Amortized V a lu e s). .
897,584.80
Deposits in Banks (O n Interest and Open
Account) ..........................................................
625,053.25
Building and Loan Association Shares. . .
57,500.00
Agents’ Balances and Bills Receivable. .
52,504.34
32,519.52
Reinsurance Contracts Receivable.
Interest Due and Accrued on Securities..
5,881.46
A ll O t h e r ....................................
1,871.48
Total ................................................. ........ $ 1,900,483.03

LI ABI LI TI ES
Reserves:
Losses and Claims........................................ $
Unearned P r em iu m s....................................
Salaries, Rents, Expenses, etc...............
Taxes (Federal, State and O th e r)..........
Contingent C om m ission s...........................
All O t h e r ..........................................................

133,090.01
293,824.54
318.69
51,900.00
93,294.09
884.62

Total .......................................................... $
573,311.95
Surplus as regards Policyholders................ 1,327,171.08
Total .......................................................... $ 1,900,483.03

Surplus Over All Liabilities, $ 1 ,3 2 7 ,1 7 1 .0 8

FARMERS MUTUAL HAIL INSURANCE COMPANY OF IOWA
C.
Northwestern Banker

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

P. RUTLEDGE, President
April 19Ü

Valley Bank Building, Des Moines

W e Solicit

PBtSOtKt/ Accounts

Our First Thought Is Service to Our Customer-— With the
Premium and Commission Secondary
HIS subject is one of keen interest
to me, as our agency was built on
the solicitation of Personal Insur
ance Accounts and represents a major
ity of our premium volume and in
number of risks, involving smaller
premiums.
However, we have, as a direct out
growth of these personal accounts,
developed a large volume of industrial
and mercantile risks, which in turn,
creates new personal accounts with
their executive and office personnel.
Our agency handles multiple lines,
or all lines, including life and accident.
We find that one line compliments the
other. An accident policy later pro
duces a life application, or an auto
mobile policy produces an accident
application, a residence liability risk
produces a residence burglary policy,
or a fire line, etc.
Consequently we find it most serv
iceable and productive of good results
to eventually survey a customer’s
entire needs, to record his expirations
for future reference, and submit our
recommendations for additional cover
age or improvements or endorsements
on his existing policies. In so many
instances, we find numerous omissions
of necessary coverages, say for ex
ample, “Medical Reimbursement for
Guests or Servants” on a residence
liability policy or a “Drive Other Cars”
endorsement for a son or daughter, on
his automobile policy. The new com
prehensive personal liability policy
offers a new field for recommendation,
granting greater coverage for the hus
band’s and wife’s activities, but includ
ing injuries caused to others by their
children, riding horses and dogs.
The new broad residence burglary
policy also offers wonderful small
premium development—with its out
side theft coverage for all personal
effects.
It is truly amazing, to find in our
surveys, so many persons without
many of the important personal covr
erages—and many whose coverage is
incomplete or inadequate. It is true
that the individual policy premiums,
in most cases, are not large—but in
the aggregate, on a given risk, can
amount to a substantial figure. How
ever, our first thought should be the
professional viewpoint—service to our
customer—with the premium and the

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Federal Reserve Bank of St. Louis

By R. A . Tucker
Tucker & Johnston
Pittsburgh, Pennsylvania

R A Y M O N D A. T U C K E R
“ Our A gen cy B uilt on Personal A cco u n ts”

commission be i ng
secondary in
thought. I have very decided ideas
on this professional viewpoint as it
benefits our insurance business as a
whole—-we must raise the standards
of agency qualifications and service if
we are to preserve the American
agency system.
You may be interested in some of
the methods we use in developing per
sonal insurance accounts.
In the first place, the agency, to
attract any type of business must
develop a professional personality as
expressed through its owners, clerks,
stationery, records, office arrange
ments, telephone and claim service.
All personnel must be properly trained
to render the very utmost in service
and courtesy — based upon a good
knowledge of the business—or the
ability to obtain the necessary informa
tion with the least delay. This type of
agency will attract personal accounts.
As aids to new business, through
service to present policyholders, we
recommend that pending claims be
periodically checked with the adjusting

departments in order to hasten their
settlement, and to keep the assureds
acquainted with their progress.
A geographic card index of fire
risks should be kept so that rate
changes may be easily adjusted when
individual risks are re-rated, or where
a whole community receives a basic
re-rating thus making it possible to be
the first to grant the reduction to a
given policyholder. Naturally, if an
other agent on the same risk, does not
render the same service, it enhances
the prestige of the efficient agent, re
sulting in his ultimately obtaining the
entire account. This has proven to be
the case in innumerable instances.
All renewals should be carefully
checked for changes or increases, and
in ample time before the expiration
date. This offers splendid opportunity
to solicit additional lines. History
records of each customer’s account
should be kept up to date in order to
ascertain what coverages he possesses,
and those he still needs.
Expiration cards of other agents’
policies or prospects should be kept by
months, and solicited 45 days in ad
vance of expiration, with the prime
thought of rendering service for
broader coverage, etc. Many customers
rely upon the agent to remind him of
the coming expiration, with the full in
tention of giving him the business,
particularly as applied to fire, theft and
collision insurance on cars they pur
chased on the finance plan, where no
agent was involved.
We use a birth date card record
which serves a double purpose. First,
it is used to send out a handsome
birthday card to the man or woman
listed, with no advertisement, except
the signature of either partner under
the partnership signature rubber
stamp. This card builds tremendous
good will, as evidenced by the thanks
received by letters and phone calls.
These birth dates are obtained from
life and accident policyholders and
from other less obvious sources—such
as requesting their birth dates when
insuring cars, homes, etc. This birth
date card is also used to send out an
other card before the occasion of their
life insurance age change, six months
later, as a reminder that their rates
will be higher if they delay. This card
Northwestern Banker

April

30
brings much unexpected business, di
rectly and indirectly.
Good will is further enhanced by
sending out sincere and sympathetic
letters of congratulation or condolence,
as the case may be, or special cards to
those who are confined from sickness
or accident.
Naturally, any forms of out-door or
publication advertisements, or calen
dars, bridge pads, etc. are helpful in
obtaining new customers, and ap
propriate circulars enclosed in the
daily mail brings new inquiries for the
particular coverage. Today, compe
tition requires that the agent equip
himself with competitive sales material

in loose-leaf book form, with photo
static copies of data, newspaper clip
pings, etc. to further strengthen and
support his arguments.

Largest Business in History
W. H. Brenton of Des Moines and
R. W. Wood of Newton were elected
to the board of Employers Mutual
Casualty Company, and J. W. Gunn
was re-elected president of the com
pany, at the annual meeting held
recently.
Business during the past year has
been the largest in the history of the
company, President Gunn declared in
his annual report.

It Pays to
Insure Crops with

SQUARE DEAL
Largest Exclusive Hail Company
Operating in Iowa and Missouri

“Assets have increased more than
a million dollars during the past
twelve months, now totaling $6,807,589,” President Gunn reported. “ Sur
plus was increased to $1,700,000, and
premium collections during the year
totaled $4,554,937. Employers Mutual
is the largest casualty company in
Iowa, and writes more automobile and
workmen’s compensation insurance
than any other Iowa company. The
company is now doing business in
twenty states.”
President Gunn announced at the
meeting that Employers Mutual has
now invested more than three million
dollars in United States War Bonds.
Re-elected to the board of directors
were John F. Hynes, Anselm Frankel,
and M. J. Wilkinson. Other officers
re-elected were John F. Hynes, vice
president and secretary, and W. Z.
Proctor, general counsel. Other direc
tors of the company are Frank Kohrs,
president Kohrs Packing Co., Daven
port, H. L. Read, secretary Iowa Valve
Co., Oskaloosa, R. W. Weitz, president
of Weitz Co., Des Moines, Dr. D. E.
Baughmann, president Ft. Dodge
Serum Co., Ft. Dodge, Dr. L. E. Kelley
of Des Moines, O. B. McKinney of Den
ver, H. L. Hjermstad of Red Wing,

MERCHANTS
MUTUAL

A Mutual Company
with a record of 28
years of successful

Look at these
figures
Total Admitted Assets

BONDING
COMPANY
Incorporated 1933

operation.

$605,420.58

Losses paid within

Policyholders' Surplus

10 days after

$591,342.90

Home Office
V A L L E Y BAN K BUILDING

adjustments are

Additional protection in
Reinsurance totaling

Des Moines, Iowa

approved.

$150,000.00

•

This is Iowa’s oldest surety company.

S q u are

D eal

INSURANCE COMPANY
C. FRED MORGAN, President

A progressive company with experi
enced, conservative management. W e
are proud of our hundred and fifty
bank agents in Iowa.
To be the exclusive representative of
this company is an asset to your bank.

•

Valley Bank Building
A G E N T S

Des Moines 9, Iowa

Northwestern Banker

April

Write to

E. H. W A R N E R

fo rc e in Io w a an d M isso u ri.

Secretary and Manager

W r it e .

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

A fe w d esir-

ab le op enings in our a g e n c y

31
Minn., and Geo. E. Patterson of Des
Moines. Other officers elected were
H. A. Watson, assistant secretarytreasurer, and Miss H. V. Mulligan,
assistant treasurer.

cLÇj

(mp
• 0NSILVER

N EW S A N D VIEW S
(Continued from pafe 18)
those ‘No’s,’ said the visitor, ‘but didn’t
you say ‘Yes’ once?’ ‘I did,’ said the
banker. ‘What was the question to
which you answered yes?’ asked the
visitor. ‘He asked me,’ said the bank
er, ‘if I could hear him all right.’ ”
If you are interested in consumer
credit financing when the war is over,
a recent Westinghouse survey shows
that, “The increase in sales of indi
vidual appliances is estimated as fol
lows: Refrigerators, 48 per cent; vac
uum cleaners, 67 per cent; ironers, 183
per cent; fans, 29 per cent; ranges, 72
per cent; hand irons, 58 per cent; water
coolers, 22 per cent; dishwashers, 818
per cent; small air conditioners, 138
per cent; water heaters, 118 per cent;
roasters, 36 per cent; miscellaneous ap
pliances, 66 per cent.”
One investment service which we
read recently, believes that bank stocks
will be one of the best investments
that anyone can make, and says, “Be
cause of the low level of loans and
discounts, we believe banking is truly
a growth industry. We view bank
stocks as one of the most attractive
groups for higher prices over the
longer term. Larger dividend disburse
ments are a postwar prospect. We
believe that every investor should hold
some bank stocks in his portfolio.”
K. A. C. C. loans in 1944 are to be
reduced 90 per cent, according to re
cent action taken in Washington. It
is estimated that the loans for this
year will not go over 6 million or 8
million dollars.
Loans will be granted only upon a
signed statement by a bank and a
P.C.A., certifying that they are unable
to grant a loan sufficient to applicant’s
need. The rate to be charged will be
5 V2 per cent for the actual time the
credit is used plus V2 of 1 per cent for
inspection fees and service charges.
Leo T. Crowley, chairman of the
Federal Deposit Insurance Corpora
tion, went on record as supporting the
Brown Bill, which has been passed by
the house, and which permits the ab
sorption of exchange charges.
Chairman Crowley believes that
there is every reason to continue the
project which has been in effect for
over 25 years, in view of the fact that
total exchange charges are estimated

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Federal Reserve Bank of St. Louis

INDICATES Q U A L I T Y EN V E L O P E S

Tension E nvelope Corp,
BERKOWITZ ENVELOPE CO.

19 12 GRAND A V E. - P H O N E 4 -4 12 6 - DES M O IN ES 1 4 , IOWA

A MAN AS WELL AS A FIRE
MAY WRECK A FIRM
For years, all good credit executives have required FIRE INSUR
ANCE to protect loans on PHYSICAL PROPERTY.
Now, these same executives, are increasingly insistent that loans
on FINANCIAL STATEMENTS be protected by FIDELITY INSUR
ANCE.
The dishonesty of a single individual may wreck a Financial
Statement— cause the passing of a dividend— INSOLVENCY.
Many current forms of application for credit ask about Fidelity
Insurance.

Unless the loan has the safeguard of Fidelity protec

tion, the answer is "N o !"
Credit Executives who keep their firms mindful of this need, help
their clients and improve the security of their loans.

F R E E FOR AS K IN G
A copy of our Monograph “ Ten Tests for Man
agement to Reduce Dishonesty Hazard”

will he

sent without obligation to any lending institution
or to its clients on request.

Surety division
The State Automobile Insurance Association
DES

MOINES,

I OWA

Northwestern Banker

April 1944-

at not to exceed 10 million dollars an
nually, and with the banking system
having resources in excess of 100 bil
lion and annual operating income of
approximately 2 billion dollars.

Brigadier General Leonard P. Ayres,

vice president of the Cleveland Trust
Company, believes that American
banks are in the best position they
have ever been and are fully capable
of doing any postwar financing with
out much Government aid. He says,
“American banks are exceedingly well
equipped to take care of all the sound
and bankable postwar credit needs
that may develop. Never before have
they been in such a strong and liquid
condition as they are at present. It

“Darned queer
salesman. . .
wouldn't take
my $150”

I was all set to buy retirement insurance.
Had the premium— nearly $500— ready,
part of the nice bonus my firm had just
awarded. But the agent wouldn’t take it.
“ Seems to me you’re making a mistake,”
said the NW NL man I had called in. “ This
bonus you have looks pretty big, you’re
making a good salary besides. It’s only
natural to base your plans on your present
prosperity. But will you still be able to
meet that sizable premium five years hence?
“ And another thing. That new baby of
yours is going to need twenty years of
feeding, clothing and education. These
policies you already have won’t be enough.
That’s why I suggest more protection first.
Now here’s a policy which costs just $150
less, but gives more than twice as much
insurance protection over the next 20
years— when you really need it.”
I was still a little baffled. “ And so you
recommend a policy for $150 less, thereby
cutting yourself out of a nice commission.”
“ Sounds crazy, but it makes sense.” he
smiled. In the long run, I’ll be better off—
and so will you— if you buy a policy you
can afford— and stick with it.
“ Buy the family protection you need—
put the difference in War Bonds and buy re
tirement insurance later. From me, I hope!”
Your N WNL agent is paid, not primarily
for the insurance he sells you, but for the
insurance you keep in force.
Significant results are shown in N W N L ’s
sharply declining lapse ratio, the rapid in
crease of insurance in force and kept in force
— benefits in which you are invited to join.

Northwestern
National LIFE
INSURANCE

COM PANY

O . J . A rn o ld ,
President

M in n e a p o lis,
M in n e so ta

seems strange that Messrs. Baruch and
Hancock should have recommended in
their report on postwar planning and
policy that the Federal Reserve banks
and the Smaller War Plants Corpora
tion should be granted additional au
thority to make loans for industrial
reconversion and to supply working
capital for small business. Existing

EVERY

FARM

commercial hanks are eagerly seeking
sound loans, and their ability to extend
credit is ample to meet almost any
demand.”
The Park-O-Mat Company of Cali
fornia has developed a plan so you can

park your car in a 12-story building in
22 seconds by simply pushing a button.
This new invention works as fol
lows: “The feature of this develop
ment is the method in which cars are
taken from the entrance to the build
ing and parked in any part of the
structure automatically. The system
employs a simple automatic device
that moves the car by grasping the
bumpers and sliding it to an elevator
and hence to various levels of the
building, where the automobile is auto
matically removed from the elevator
and placed in an individual stall. An

AND

RANCH

Farm Employer's Liability Policy with M edical Aid
Coverage

■K

The schedule of rates shown below is in two sections
1.

Comprehensive
Payments

Farm

Liability

plus

Employer's

Liability

with

$500

Medical

Farm and personal activities (160 acres or less) $8.50
Employer's liability and $500 medical payments (subject to State rate per $100
of payroll)
2.

Farm Employer's Liability and $500 Medical Payments

Minimum
Premium
$25.00
25.00
25.00
25.00
25.00

Rate Per $100
of Payroll
Minnesota ............................................ ............................................. $2.07
1.23
Iow a ...................................................... .............................................
2.15
North Dakota ...................................................................................
1.75
South Dakota ...................................................................................
2.25
Nebraska .............................................. .............................................

These rates are attractive. W e would be glad to furnish further informa
tion and advertising folders, on request.

ANCHOR CASUALTY COMPANY
SAINT PAUL

MINNESOTA

C 'tiH h c io ih > 9 § W
First National Bank Building, Chicago

April

Should Have an

S carborough ^ C ompany

Northwestern Banker

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

Horace A . Smith. Iowa Representative
Des Moines, Iowa

33
attendant controls the moving of the
car from parkway to its stall by simply
pressing a button on the master con
trol board at the entrance to the build
ing. The car is returned to the cus
tomer at the exit by pressing the ‘out’
button for the stall in which the car
is parked. This new system of park
ing can place a car in a stall, or return
it, in 22 seconds.”
J. A. Erickson, cashier of the Farm
ers Savings Bank of Clermont, Iowa,
in. a recent letter to us said, “The
N orthwestern B anker is one of the
best bankers’ magazines in the country
as far as I am concerned.”
Thank you, Mr. Erickson, that’s the
way we like to have all of our readers
feel.

power: On the economic side you gave
yourselves a labor boom. On the moral
side you produced men like Browne,
and Bioff and Scalise who gave all
labor a black eye.
“You forget the very thing we for
got. In the architecture of American
society, it’s just three jumps from the
master bedroom to the dog house.”
The National Safety Council
ported that traffic deaths in the
States since Pearl Harbor are
cent greater than the losses
armed services. Auto accident
totaled 60,000 compared with
military deaths.

SINCE

L. Nevin Lee, vice president of the
Bankers Trust Company, Des Moines,
remembered his friends on “March 15”
by sending them a greeting card which
said, “Many Happy Returns of Income
Tax Day. With the devout hope that
you haven’t deducted yourself out of
your liberty.”
Eric A. Johnston, president of the
Chamber of Commerce of the United
States, in a recent address, told how
business had taken a licking for ten
years and that labor was now making
the same mistakes, and he said, “Gen
tlemen of labor, I must accuse you of
not being very original. From 1933
to 1942 you rode high. A friendly ad
ministration in Washington; all sorts
of favors fed to you daily. Manage
ment weak and intimidated.
“ So what did you do with your

has re
United
33 per
in the
deaths
39,624

a 'i 'u t i n a

19 19

4AU\ U t

r u t jjid e n e e .

Do your customers have con

Hawkeye Mutual Hail
Insurance Association
Carver Bldg.

Fort Dodge, Iowa

fidence that their sales records
are protected in case of loss or
damage to their property and
merchandise?

Are you carry

ing protection for the invest
ments you have made in your

“ALLIED MUTUAL PAYS
A

fy a e t .2 ) e.+ n o-n d .tsicU & (i A /fa+U f

jb cU L ^

community?
For complete insurance pro
tection at all times, call on us:

FULL COVERAGE AUTOMOBILE INSURANCE— Comprehensive, Collision, Bodily
Injury— Property Damage— Medical Payments.
PUBLIC LIABILITY INSURANCE— Owners, Landlords and Tenants— Manufactur
ers— Contractors— Farm— Elevator— Comprehensive Personal.
BURGLARY AND ROBBERY INSURANCE— Residence and Outside Theft— Store
Keepers— Plate Glass Insurance— Workmen's Compensation.

Investigate what Allied Mutual has to otter you and those you Service on
Casualty Lines.

WESTERN MUTUAL
FIRE INSURANCE COMPANY

ALLIED M U T U A L
CASUALTY COMPANY
Harold S. Evans, President
Hubbell Building

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

Des Moines, Iow a

JINTH &GRAND

DES MOINES 8, IOWA

Northwestern Banker

April Í9H

^JN orthw est.. .where tomorrow
wears a smile

Here are some facts about the present stability and promising postwar
prospects o f the great Northwest:
This region is produ cin g much more than during the last w a r on farms, in mines, in factories. More people are making more
money. They are paying debts, reducing mortgages, storing up
postwar buying power by salting away millions o f dollars in
War Bonds.
Our Northwestern states are reducing their bonded indebted
ness and building up reserves to finance their necessary activities.
Civic and industrial leaders are systematically planning sound,
employment-creating postwar undertakings.
T o anyone seeking a postwar Land o f Opportunity, we commend
our own great American Northwest!

★

Since Civil War days, the First National Bank o f Minneapolis — now
in its 80th year— has contributed to and shared in the development
o f its territory. When peace comes, it will be ready, directly and in
cooperation with other banks, to assist in the building o f an even
greater and more prosperous Northwest.

First National Bank
OF M IN N E A P O L IS
M em ber Federal D eposit Insurance C orporation ★

L y m a n E. W akefie ld ,
President
C. B en B r o m b a c h ,
Vice President
H e n r y V. B r u c h h o l z ,
Vice President
J. G . B y a m ,
Vice President

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

M . O. G rangaard,
Vice President
A r t h u r P. K emp ,
Vice President
G uy W . La Lo n e ,
Vice President
Joh n G . M aclean,
Vice President and Cashier

April 19

Affiliated with First Bank Stock C orp oration

M alc olm B. M c D o n a l d ,
Vice President and General Counsel
C harles R. M iller ,
Vice President and Trust Officer
K e n n e t h M . M o r r is o n ,
Vice President and Comptroller
A r t h u r H. Q u a y ,
Vice President

P au l R e y e r so n ,
Vice President and Trust Officer
V ic t o r F. R o t e r in g ,
Vice President
A lfred E. W ilson ,
Vice President and
Chairman o f Trust Committee

Stay Up
Duluth, Minnesota, bank debits were
30 per cent above those of the corre
sponding period in 1943.
Bank debits in Mankato for the
same period were 19 per cent above
last year’s.

M IN N E S O T A
NEWS
H. R . K U R T H
President
Hutchinson

Promotion
H. E. Arndt, assistant cashier, the
State Bank of Darfur, Minnesota,
moved to Brownton April first to be
come cashier of the First State Bank
there.

Back from Trinidad
Second Lt. Don Lange, U. S. Army
Artillery Anti Aircraft, formerly book
keeper of the Farmers State Bank,
Huntley, Minnesota, was home on fur
lough. He left to enter the army in
1941 and has been stationed in Trini
dad until recently.

On the Board
W IL L IA M DU N CAN , Jr.
Secretary
Minneapolis

dents; Walter E. Martin, cashier and
Harry T. Lindahl and J. O. Mike, as
sistant cashiers. Present directors in
clude Mr. Whitman, Mr. Lamont, Mr.
Stebbins, John Ketola, Emerson D.
McNeil, Dr. Edward N. Peterson and
Joseph Karl.

Pays Final Dividend
W. Linner and W. C. Krog trustees
of the Farmers and Merchants State
Bank, Stillwater, Minnesota, directed
the payment of a final dividend, upon
which payment creditors of the trust
fund will have received a total of 85
per cent on their original deposits.

Becomes Vice President
Theodore Nelson, former secretarytreasurer of the Southwestern Minne
sota Production Credit Association,
last month assumed the duties of his
new post as vice president of the State
Bank, Worthington, Minnesota.

Replaces Drafted Banker
Hiram Olson, Norcross, Minnesota,
has accepted a position as assistant
cashier with the State Bank of Whea
ton, succeeding Allan Siewert, who
was called into the service last month.

Renews Corporation
Corporate existence of the Otisco
State Bank, Otisco, Minnesota, was
renewed starting this month.
The bank was first organized in 1914.
D. T. Johnson, cashier has been ac
cepted for military service and he pre
sented his resignation.

Two Join Staff

Floyd Bates, who has been employed
at the Harmony State Bank, Harmony,
Minnesota, for the past six years left
last month for St. Paul where he joined
the State Banking Department in the
examining division.

The Ellendale State Bank, Ellendale,
Minnesota, recently chose Irvin Toft
as a director to replace L. J. Brynestad,
veteran board member. Other direc
tors are: S. J. Sande, M. P. Miller, C. F.
Todd and C. R. Campbell.
C. F. Todd was elected vice presi
dent, a position left vacant by the
recent resignation of Mr. Brynestad.
All other officers were reelected.

To the Army

Service for 20 Years

Obert Grovdahl, assistant cashier
at the Citizens State Bank, Hayfield,
Minnesota, left last month for Fort
Snelling for induction into the army.
Mrs. Elmer Bjork, of Waltham, is now
employed at the bank.

Peoples State Bank, Wells, Minne
sota, marked their 20th year of service
recently with open house.
The present staff includes: M. E.
Uggen, president, William H. Barr,
former president and now chairman
of the board of directors, J. M. Hall,
director and vice president, G. A.
Uggen, director and cashier, E. O.
Bottolfson, assistant cashier, Mary
Harrington, bookkeeper, and A. E. An
derson, H. W. Bless, Fred Ruffing and
A. K. Uggen, directors.

Leaves Harmony Bank

Fortieth Year
The American Exchange National
Bank, Virginia, Minnesota, observed
its 40th anniversary last month.
G. A. Whitman, is president; J. D.
Lamont and D. W. Stebbins, vice presi

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Federal Reserve Bank of St. Louis

The annual meeting of the stock
holders of the Security State Bank
of Cannon Falls, Minnesota, was held
in its office.
The present directors were all re
elected and Mrs. Irene Case and Mrs.
Mildred Anderson were also elected
to the board.
The following officers were elected:
D. Fay Case, president and cashier;
J. A. Anderson, vice president; R. O.
Underdahl, vice president; W. L. Eiler,
assistant cashier; Gene Ann Prink,
teller; Kathleen Carnel, bookkeeper.

Le Center
The annual meeting of the First
National Bank. Le Center, Minnesota,
was held recently with directors, Troy
Fickling, Amy D. Jaeger. Thomas
Jones, George Shippman, Charles C.
Traxler and Frank H. Traxler re
elected. Officers elected were: Frank
Traxler, president; Amy D. Jaeger,
vice president; Charles Traxler, cash
ier, and A. F. Meyer, Janette Wetzel
and Eleanor Traxler Zika, all assist
ant cashiers.

Fifty Years
Many changes have taken place in
the customs and practices of men since
the State Bank of Brooten, Brooten,
Minnesota, was originally established
fifty years ago. This institution was
opened as a private bank, known as
the Bank of Brooten by John Bohmer,
who is still president. In 1909 H. O.
Imsdahl became a bookkeeper. He
was later elected cashier and a di
rector, a position he has since held.
Edwin Sandvig started as bookkeeper,
was elected assistant cashier in 1915,
and vice president in 1941. Elwood
Nelson was added to the staff as book
keeper and now is an assistant cashier.
The Bank of Brooten was operated
as a private bank until 1908, when it
was incorporated as a state bank and
became known as the State Bank of
Brooten.

Leaves Bank
Nathan Gustafson, who has been
assisting at the First National Bank,
Roseau. Minnesota, for the past three
years, left recently for his home at
Cavalier, North Dakota. He will now
be employed at the Federal Land
Bank headquarters at Cavalier.
Northwestern Banker

April L9M

36
Real Reason
“What’s the matter, Mary?”
“ I’ve got rheumatism in my mus
cles.”

“You ought to visit a masseur.”
“What’s that?”
“A man who pinches you all over.”
“ Oh, you mean a marine!”

A $5,000.00 Accident Policy Paid Up in Full to the
15th of Next June for Only $2.00
Write for Application and Literature Describ
ing this Insurance Bargain for Select Risks
Application and Literature Upon Request

MINNESOTA COMMERCIAL MEN'S ASSOCIATION
Paul Clement, Secretary, 2500 Pillsbury Ave.
MINNEAPOLIS 4. MINN.

t h e form er

tom orrow

rising standard of living by providing
Today the whole world watches him an expanding market . . . a more de
anxiously in his struggle to ease the pendable market . . . more assurance
hungry calls for FOOD. The war has of a profit for a job well done.
served to bring out his importance
As the farmer works the soil so that
but this importance its. ,f is nothing it bears more and more, he, at the
new, for agriculture has .uways been same time will carefully preserve its
the foundation stone of our nation. wealth and prevent erosion. He re
The needs of the future mark the alizes that he simply holds the land in
farmer as a man with a mission.
trust for the welfare of the nation and
We now know that there has never will increase the soil’s richness for suc
been enough food for all . . . that so- ceeding generations.
called “surpluses” were the result of
To attain his full, just place in the
poor distribution. The farmer must world the farmer must first have
not only provide enough to give mil M O D ERN FARM M A C H IN E R Y .
lions more people a proper diet, but
For these reasons, The Farm M a
also enough to keep pace with the de chinery Dealer of the future may well
mands of a continually rising stand be the leading business man in his
ard of living, and an industry which community. Bankers, too, can serve
will use more and more products of and profit in this development.
the farm.
G et a ll Scrap into T H E B IG
And while the world of the future SCRAP NOW !
gives greater tasks to the farmer,
Back the Attack— Buy War Sav| it will also give him a steadily ings Bonds and Keep ’Em.

(m m !
fA \N N lik P O V .\S

fA V N N ISO U ,

U .S .A .

DEAR EDITOR
(Continued from page 9)

"Proud of the Seabees"
E ditor’ s N ote : In the January N orth
western B anker we published a letter from
Edgar Scheips, chief yeoman, 62nd Naval
Construction Battalion and formerly assist
ant cashier of the First National Bank of
Fairbury, Nebraska. The following letter
from Pearl Harbor is a further report from
Chief Yeoman Scheips:
“ It was a pleasure to receive your letter
and I also want to thank you for sending
me the December issue of your fine publica
tion, the N orthwestern B anker . I guess
that you always knew that the N orthwest
ern B anker , rated Hops’ with me, and I
read the contents from cover to cover.
“ It has been almost a year now since we
left the good old U.S.A. for parts unknorvn,
which turned out to be Hawaii. It has
been a pleasant tour of duty in many ways,
but it has also meant a lot of hard work.
I am happy and proud to be a member of
the Seabees, and they have been doing fine
work all throughout the Pacific. Often
times they have fought side by side with
the Marines, after establishing beachheads
on an island, and then go on to repair
and build landing fields and docking facili
ties. Along with our regular work, all of
us go through a rigid military training
program, because one can never tell when
training of that kind will prove most valu
able. A new picture has just been released
recently called ‘ The Fighting Seabees.’ I f
you have an opportunity to see it, please
do so. The work of the Seabees will be
better known as the tempo of the Pacific
war increases as they are playing an im
portant part in the prosecution of the war.
“ I surely enjoyed your editorials in the
N orthwestern B anker , ‘ Across the Desk
from the Publisher,’ and you touch upon
some very interesting subjects, which are
vital to all of us. I have always felt that
inflation is the biggest single danger in the
postwar world, and I know that the gov
ernment, economists and bankers are doing
everything in their great power to avert
it. After the war we want to resume our
normal lives under normal conditions and
not discover that the $50 War Bond we
bought will buy us only a pair of shoes
whereas we had hoped it would buy us a
suit of clothes. I am convinced that the
length of the war will be in exact propor
tion to the effort every one of us* puts
forth toward winning it.
‘ ‘ Thank you again for your fine letter and
the issue of the N orthwestern B anker . I
hope that you will find time to write me
again soon, and if there is anything I can
do for you out here, please let me know.”
E dgar Scheips , Chief Yeo
man, 62nd Naval Construc
tion Battalion, c/o Fleet P.
0., San Francisco, California.

Wonderful
She: Did anyone ever tell you how
wonderful you are?
He: No, I don’t think anyone ever
did.
She: Then I’d like to know how and
when you got the idea.
Northwestern Ranker

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

April 19't't

T w in C ity N ew s

E. NELSON, cashier of the Farm. ers & Merchants State Bank of
Stillwater, Minnesota, has been elected
vice president and cashier. He thus
takes over the vice presidency work
of W. C. Krog, recently elected presi
dent.

Minneapolis Federal Reserve Bank
has reorganized its research and sta
tistics department to provide flexible
interlocking of its units, and filled two
vacancies resulting from the recent de
parture of H. C. Timberlake and
George AVilkens, according to an
nouncement by Dr. Arthur R. Upgren,
vice president and economist of the
bank.
The post of statistician has been
take:» by Oscar F. Litterer, recenty
research economist for the Committee
for Economic Development in New
York City, while that of agricultural
economist is being filled by Franklin
L. Parsons, who has been associate
professor of economics at Kansas State
College. Work in money and banking
and the industrial area will be under
taken by Paul A\7. McCracken, who
has been on the staff for some time.
Litterer will supervise the bank’s
monthly review and will be in charge
of special surveys conducted by the
bank in cooperation with the Board
of Governors, Dr. Upgren explained.
He will be on a half-time basis for
about six months to enable him to
complete work on a CED project at
Madison, Wisconsin, where he is as
sisting in a study on the impact of
taxation on postwar business activity.
Henry 1). Thrall, Minneapolis, prom
inently identified in the investment
banking business in the Northwest
for many years, has been elected a
director of Investors Mutual, Inc., of
Minneapolis. He was an officer of the
old Minnesota Loan and Trust Com
pany, the BancNorthwest Company,

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

By Jam es M. Sutherland
Sp ecia l Correspon dent

Thrall West Company and WoodardElwood and Company.
Four authorities participated in a
panel discussion sponsored by Minne
apolis chapter, American Institute of
Banking, on the subject, “Postwar In
ternational Policies.” Participants were
Dr. Arthur R. Upgren, vice president
and economist, Minneapolis Federal
Reserve Bank; Gideon Seymour, edi
torial editor, Minneapolis Star Journal;
Prof. Boris M. Stanfield, Columbia
University, New York, and Prof. James
A. Cuneo, University of Minnesota.
The board of directors of the Federal
Reserve Bank of Minneapolis has pro
moted two officers of the bank, accord
ing to an announcement by John N.
Peyton, president.
Earl B. Larson, assistant cashier,
has been advanced to assistant vice
president, while Maurice H. Strothman, Jr., has been made assistant
counsel. Mr. Larson is in charge of
the fiscal agency operations conducted
by the bank for the United States
Treasury. Mr. Strothman has been
principally engaged in legal matters
involved in the guarantees of war
production loans issued by the bank
on behalf of the war and navy depart
ments and the maritime commission.
Frank C. O’Brien, vice president of
Northwestern National Bank, Minne
apolis, spoke at a district conference
of Pepsi-Cola bottlers in St. Paul in
mid-March. He discussed industrial
financing by banks.
John DeLaittre, treasurer of Farm
ers & Merchants Savings Bank, Min
neapolis, has been named program

chairman for the annual convention
of the Financial Advertisers Associa
tion, to be held in Chicago next fall.
Clarence L. Finger, resident man
ager of the St. Paul office of the Mil
waukee Company, has been named a
vice president of the investment firm.

G o to Storden
Mr. and Mrs. A. J. Aronson left
Ivanhoe, Minnesota, for their new
home at Storden, Minnesota, where
Mr. Aronson has taken the position
of assistant cashier at the First State
Bank.

Becomes President
At a meeting of the board of di
rectors W. C. Krog was elected presi
dent of the Farmers & Merchants
State Bank, Stillwater, Minnesota, suc
ceeding Arthur J. Mulvey, who died.
C. E. Nelson was elected vice presi-

Jam ieso n
&

Co m p a n y
Members

New York Stock Exchange
and

Other Principal Exchanges

★

STOCKS
BONDS
COM M ODITIES
★
MINNEAPOLIS
ST. PAUL
DULUTH

FARGO
GRAND FORKS
SIOUX FALLS

PRIVATE WIRES

Northwestern Banker

April 1944

MINN ES OT A
dent, and will now have the title of
vice president and cashier.

Leaves State
Gordon McRae, cashier of the First
State Bank of Graceville, Minnesota,
left for Cando, North Dakota, to accept
a similar position with the First State
Bank there.

NEWS

their stock in the First National Bank,
Chatfield, Minnesota, was announced.
The sale, made at a meeting of
stockholders, was to Frank S. Graham
of Excelsior Springs, Missouri, who
at once assumed presidency of the
hank. Mr. Underleak and Mr. Stoudt
will retire.

Two Changes
Retire
Sale by Joseph Underleak, president,
and F. G. Stoudt, vice president, of

Elmer Schmitz was named assistant
cashier of the Security National Bank,
while Svante Severson was elected

cashier at the First National Bank,
both in Hopkins, Minnesota.

Name Officers
The annual meeting of the stock
holders of the State Bank of Littlefork, Littlefork, Minnesota, was held
i nthe bank. G. N. Millard of Interna
tional Falls was present, and was re
elected president. Mrs. Marie Orlebeke was elected vice president and
Mrs. Ruth Breneman, assistant cash
ier. Floyd Breneman was re-elected
cashier.

Replaces President
J. E. Hanson, for 33 years a member
of the board of directors of the State
Bank of Virginia, Minnesota, and
president since 1932, resigned to leave
for the West Coast.
J. E. Takkinen was elected president
to succeed Mr. Hanson who will con
tinue as chairman of the board of
directors. H. A. Hansen was named
vice president and Paul A. Netland
was named cashier. Martin Virshek
was named assistant cashier. The
board of directors includes J. E. Han
son, H. A. Hansen, William A. Mc
Curdy, Harry Solberg, and Mr. Tak
kinen.

A ccepts Presidency
Walter L. Voigt of Hot Springs,
South Dakota, succeeds A. W. Hoodecheck as president and general man
ager of the Murray County State Bank
at Slayton, Minnesota.

Director Named
N atio n ally know n as “ W isconsin’s b a n k fo r b an k s,” the
F irst W isconsin serves as M ilw aukee dep o sitary fo r m ore
th a n 85 p e r cent of all the banks in this state. T his very fact often
enables th e F irst W isconsin to offer u n u su a lly b road an d h e lp fu l
c o rresp o n d en t service th a t goes fa r beyond the lim its of m ere
ro u tin e efficiency.
B A N K S and B A N K E R S D I V I S I O N : George T. C a m p b e ll.. . Vice-President

Directors of the Northwestern State
Bank of Hallock, Minnesota, were re
elected at the annual meeting, with
the exception of J. N. Lang who re
signed after serving eight years as
director. A. L. Wikholm, formerly of
the Federal Reserve Bank in Minne
apolis, replaced Mr. Lang who intends
to devote his time to his farming op
erations.

Richard J. Lawless, D onald A . H arper . . . Assistant Vice-Presidents

Two New Members

FIRST WISCOISIBI
NATIONAL lì A V K
Member of the
Federal Deposit
lnratinn^
Insurance Corporation'

Northwestern Banker

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Federal Reserve Bank of St. Louis

OF MILWAUKEE
April 1944

Two new names appear in the list
of officers and board directors elected
at the annual meeting of the First
National Bank, Buhl-Kinney, Minne
sota.
Officers for the ensuing year are:
T. P. Cory, president; Matt Kayfes,
vice president; John I. Anderson, cash
ier; and Helen Thompson assistant

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

S A F E K E E P IN G
You can lift the extra burden of SAFE KEEPING entirely off
your shoulders by using this Northwestern service.
Your securities are kept safe in the newest and most modern
vault in the Northwest — protected from fire, flood, riot — and
under armed guard day and night.
W e will clip the coupons, send them for collection, and deposit
the proceeds to the credit of your account, giving an advice of
credit with an explanation of the source of the incom e; or, the
money can he remitted to you by check.
In buying or selling securities, the use of our SAFE KEEPING
facilities provides quick, convenient service in making delivery
and accepting newly purchased issues.
W e invite your inquiries as to your own or your customer’ s
securities.

Department of Banks and Bankers
W m . N. Johnson
V ic e P r e sid e n t

F. W . Conrad
A sst. V ic e P r e s.

D . E. Crouley

L . P. Gisvold

A sst. V ic e P r e s.

A s s t. C a sh ier

F. Jnnge, R e p r e s e n t a t i v e

N O R TH W ES TER N
NATIONAL BANK

O F M IN N E A P O L IS

Marquette Avenue — 6tli to 7th Streets

Member Federal Deposit Insurance Corporation

Northwestern Ranker

April

•

MINN E S O T A

cashier, the latter being a new mem
ber of the staff.
Of the board of directors, of which
A. L. Egge is chairman, Charles W.
Moore is the new member, the others
being T. P. Cory, Matt Kayfes, and
Gust Cronberg.

NEWS

ment from active service of Theodore
Cook, president of the bank.
Mr. Orchard was re-elected cashier
of the bank at the annual meeting of
the directors. Also re-elected were:
Theodore Cook, president; Charles Dof
fing, vice president, and Miss Grace
Darling as assistant cashier.

President Retires
Although he has held the position
of cashier since he joined the staff of
the Hastings National Bank, Hastings,
Minnesota, in 1941, R. E. Orchard took
on more responsibility with retire
■

.•

The stockholders of the Farmers
State Bank of Rothsay, Minnesota, held
their annual meting.
Lawrence Paulson was re-elected

-. ...” -----------------------------------W G ?

The hog that lifted the mortgage, the

M . A. W IL S O N
Vice President

commission man who sold him, and the

W . G. N E L SO N
Assistant Vice President
W . C. SCH ENK
Cashier
H. C. L IN D U S K I
Assistant Cashier
C. L. A D A M S
Assistant Cashier

are next door neighbors to us, so where
can you find a better located Sioux City
correspondent than the Live Stock National
Bank?
Your down town items, too, are handled
just as smoothly and guickly in our daily
routine, so let us serve as your correspon

;

Live S t o c k
N a T iO N A L
S IO U X

'/ / r e

Northwestern Banker

BAN K

C IT Y ,

M E M B E ß

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

Directors of the Security Bank and
Trust Company of Owatonna, Minne
sota, include Mark H. Alexander of
the Alexander Lumber; Major John
A. Buxton, president of Mutual Imple
ment and Hardware Insurance; Dan
C. Gainey, president of the Josten’s;
Henry W. Hartle, president of Owa
tonna Canning; R. A. Kaplan, president
of Owatonna Tool; Thomas R. Kelly,
trustee of Pillsbury Academy; Paul
H. Evans, president and trust officer;
Robert K. Evans, vice president and
A. A. Endres, cashier.

L E G A L Q U ESTIO N S
(Continued from page 20)
licate contract to the other party does
not render the contract unenforceable.

F, D .Ì .C .

't Â

April

Armstrong, an Iowa banker, was the
executor of an estate in Iowa. The
decedent owed his daughter certain
sums for services performed by her for
him during his lifetime. Such indebt
edness was evidenced by a promissory
note duly signed by the decedent when
he was alive. The executor paid the
note without requiring the daughter to
file a formal claim against the estate.
Was such action on the part of the
executor proper?
Yes. Tn Iowa, a bona fide charge
against an estate of a decedent repre
sented by a promissory note can he
paid by the executor of the estate with
out the actual filing of a formal claim
against the estate.

dent in Sioux City.

Owatonna Staff

packer who converted him into "K " Ration,

J. S. H A V E R
Assistant Cashier
JAM ES L. S M IT H
Auditor

president, Nels Grefsrud, vice presi
dent; Sterling Olness, cashier, Esther
Paulson, assistant cashier; and Betty
Brause was promoted to the office of
assistant cashier; and Evelyn Froslie
elected bookkeeper.
The board of directors consist of
Lawrence Paulson, Nels Grefsrud, W.
Felland and Esther Paulson.

Name Officers

Our “N eighbors”
C. L. F R E D R IC K SE N
President

•

IO W A

Banks, a banker, owned a house and
lot in a Nebraska city. The property
was leased by him to Brockman. The
lease was silent as to whether the
lessor was bound to make ordinary
repairs to the leased property. Was
he obliged to do so?
No. Tn the absence of an express
covenant or stipulation in the lease, a
lessor is not bound to make ordinary
repairs to leased property. This mile
is supported by a number of decisions
by the Nebraska Supreme Court.

41
Goebel, assistant cashier; Kay Pickart,
assistant cashier, and Jeanette Frost,
bookkeeper.

SOUTH

Heads Branch Bank

DAKOTA
NEWS
T. N. H A Y T E R
President
Sioux Palls

A cting

Secretary

LOIS J. HALYORSEN

G E O R G E M. S T A R R IN G
Secretary-Treasurer
H uron

(In the Service)

Assistant Cashier

Announce Officers

Carroll Malvin, employe of the
former Butte County Bank and Belle
Fourche Office of First National Bank
of the Black Hills, Belle Fourche,
South Dakota, for over twenty-five
years, has been promoted to assistant
cashier.

At a meeting of the Lake Region
Clearing House Association held in
Britton, South Dakota, recently, V. E.
Swenson, Langford, was elected presi
dent of the association; Jake Schad,
Roslyn, vice president; J. A. Anderson,
Pierpont, secretary-treasurer.

Heads Branch Bank

Seeks State Office

Ralph Mattson was elected vice
president and manager of the Hot
Springs, South Dakota, branch of the
First National Bank of the Black Hills
recently. He succeeds Walter L.
Voigt, who was transferred to Slayton,
Minnesota.
Mr. Mattson has been assistant man
ager and assistant cashier at the bank
since 1936 and was assistant cashier
at the First National Bank of Lead
before that time.

Joins Staff
M. W. Weber joined the staff of the
Eureka State Bank, Eureka, South
Dakota, last month.
He will continue as an official of the
Eureka Holding Corporation.

Open Bank
The Campbell County Bank of Herreid, South Dakota, was expected to
begin operations last month as soon
as clearance was obtained from the
Federal Deposit Insurance Corpora
tion.
A second charter has been granted
the bank, listing R. B. White, J. J.
Reider, George E. Bickel, Joe W olf
and Andrew Huber, all of Herreid, as
directors.

Steve E. Anderson, former cashier
of a Dell Rapids Bank, Dell Rapids,
South Dakota, and new assistant dep
uty in the office of the state treasurer,
announces that he will be a candidate
for the office of the state auditor.

Hold Tellers' Class
The first in a series of eight sessions
for bank tellers and those who are in
terested in meeting the public from
behind a counter started last month
at Madison, South Dakota. The course
had to be cleared through the National
Bankers Association before it was ap
proved.

Takes Director's Place
Alfred Valgren of Valley Springs,
South Dakota, resigned last month as
a member of the board of directors of
the Minnehaha County Bank of Valley
Springs. Olaf C. Rollag of Garretson
was appointed to replace Mr. Valgren.

Married 53 Years
Mr. and Mrs. J. H. Pearson of Belle
Fourche, South Dakota, passed the
53rd anniversary of their marriage last
month.
Mr. Pearson was employed for many
years in the Butte County Bank.

Leaves Farm Loan
Selmer Smebakken resigned his post
last month as secretary-treasurer of
the Battle Mountain Farm Loan Asso
ciation to accept employment in the
Hot Springs, South Dakota, branch of
the First National Bank of the Black
Hills.

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Federal Reserve Bank of St. Louis

Bank of Hoven
The officers of the Bank of Hoven,
South Dakota, for the year 1944 are:
Ben Lemler, chairman of the board;
Mike Arbach, president; George G.
Schmidt and J. F. Sargent, vice presi
dents; P. J. Hack!, cashier; M. H.

Election of Ralph Mattson as vice
president and manager of the Hot
Springs branch of the First National
Bank of the Black Hills was made
public at a meeting of directors of the
bank at Rapid City. He succeeds
Walter L. Voigt, who was transferred
to Slayton, Minnesota.
Mr. Mattson has been assistant man
ager and assistant cashier at the local
bank since 1936. Before coming to Hot
Springs he was assistant cashier at the
First National Bank of Lead.

Deposits Decrease
A $5,982,000 reduction in federal gov
ernment deposits at Pierre, South Da
kota, was cited by Erling Haugo, bank
ing department superintendent, as the
cause of a $3,260,534 decrease in South
Dakota state bank deposits.
Despite the overall decrease, Haugo
said demand deposits increased $1,000,000 and time deposits $700,000 during
the period.

Directors Elect
Members of the board of directors of
Security Bank & Trust Company of
Madison, South Dakota, met recently
and organized, electing the following
officers: President, W. M. AVilly; vice
president, James A. Robson; vice presi
dent-cashier, E. J. Dirksen; assistant
cashiers, F. H. Elbert, J. A. Deragisch,
Jr., and Gladys Campbell; assistant
cashier and secretary, Nellie Amert.

Sioux Falls News
T HREE regional meetings, at Redfield, Mitchell and Rapid City, were
scheduled during the latter part of
March for the purpose of coordinating
the extensive new agricultural pro
gram of the South Dakota Bankers
Association on a local basis, it was an
nounced by T. N. Hayter, association
president and vice president of the
First National Bank and Trust Com
pany in Sioux Falls.
Invited to attend the meetings
were bankers and county agricultural
agents. Arrangements were made by
A. G. Berger, Clear Lake, cashier of
the Deuel County National Bank and
chairman of the association agricul
tural committee.
The annual convention of the South
Dakota Bankers Association will be
held June 9th and 10th at Aberdeen, it
Northwestern Banker

April 19frb

•

SOUTH

was announced by T. N. Hayter, state
president. Plans for the meeting have
not been completed.
Walter K. Johnson, assistant man
ager of the Gregory, South Dakota,

DAKOTA

NEWS

branch of the Northwest Security Na
tional Bank, resigned to become cash
ier of the First National Bank at Estelline, it was announced here by Ralph
Watson, Northwest Security president.
Following Johnson’s resignation,

-----------------------------------------------------------------------N

CONSERVE AND SAVE
AND BUILD GOOD WILL
PERSONALIZED CHECKS conserve
paper because people simply won’t
waste checks that are numbered and
imprinted with their names.

people won’t give them to strangers
who have "forgotten their check
books.”

PERSONALIZED CHECKS conserve
time in your shop because sorting and
filing are faster and more accurate.

PERSONALIZED CHECKS improve
public relations. As a good will builder
they pack a punch that effectively ties
in with other constructive movements.

PERSONALIZED CHECKS save you
money because customers are glad to
pay $1.25 for two hundred. You save
not only on checks but on pass books
and covers as well.

PERSONALIZED CHECKS develop
"sales mindedness” among bank peo
ple. They get a real kick out of selling
them and it’s good training for the
bigger sales job coming up.

PERSONALIZED CHECKS delight
depositors because they all
like to see their names in
print and they like the
convenience of the book
itself.
PERSONALIZED
CHECKS attack the "no
account” evil because

So conserve and save and build good
will with that little red box of Per
sonalized Checks that DeLuxe
has made so popular in
thousands of banks. It’s
a little package but it
sure "breaks the ice”
if you are trying to
merchandise banking
service.

M anufacturing Plants at
NEW

YORK

CLEVELAND

C HICAGO

K A N S A S C IT Y

ST.

PAUL

L_______________________ j

Out-of-'Town Ranks
Out-of-town banks and bankers will find here
complete banking facilities for prompt and
economical handling of accounts in Chicago. We
would appreciate the opportunity of serving you.

C it y N ational H ank
A N »

T R U S T

2 0 8

S O U T H

C O M P A N Y

of Chicago

L A S A L L E

(Member Federal Deposit Insurance Corporation)

Northwestern Banker

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Federal Reserve Bank of St. Louis

April

S T R E E T

•
Guy Burkholder, who has been asso

ciated with the Gregory branch for
many years, was elected an assistant
manager, Watson said.
C. A. Christopherson, president of
the Union Savings Bank and a “ dollar a-year” state manager for the national
war loan committee, announced that
the final tabulation of South Dakota
bond purchases in the Fourth War
Loan campaign totaled more than
$40,000,000 on an over-all quota of
$28,000,000. On percentage sales of “E”
bonds, the state stood second in the
nation, trailing only North Dakota, he
said.
Tom S. Harkison, president of the
National Bank of South Dakota, was
a Mission, Texas, visitor during March.
He attended graduation exercises at an
army flying school there and saw his
son, Tom, Jr., receive his pilot’s wings.
Mrs. William C. Duffy, wife of the
vice president of the Union Savings
Bank, has been re-elected president of
the Sioux Falls Civic Music Associ
ation, and is in charge of an intensive
membership campaign for next year.
B. C. Grangaard, assistant cashier of
the National Bank of South Dakota,
handled the negative arguments in an
Athenian club debate on a proposal to
change the constitution to require only
a majority vote in the senate, rather
than a two-thirds vote, to ratify peace
treaties.
J. Cameron Thompson, president of
the Northwest Bancorporation, was
the principal speaker at the annual
meeting of the South Dakota Press
Association.
While in Sioux Falls, Thompson was
a luncheon guest of directors of the
Northwest Security National Bank.
Following the press meeting, he was
taken by Ralph Watson, Northwest
Security president, to Sioux City, Iowa,
for a visit at the Livestock National
Bank and a new branch at the Sioux
City air base, and to Omaha, where
he attended a meeting of affiliated Bancorporation banks in Iowa and Ne
braska.
Sgt. R. E. Schaefer, formerly a book
keeper at the Union Savings Bank, has
been fighting with the marines in the
major campaigns of the southwest
Pacific area. Now stationed in Aus
tralia is Bob Armstrong, formerly as
sistant cashier of the Union Savings
Bank.

To Be the Same
The First State Bank of LaMoure,
North Dakota, recently renamed the
following directors: Paul Adams, Mrs.
O. M. Adams, Herman Goehl, Martin
Lere and C. H. Alin. Officers re-elected
were: President, Paul Adams; vice
president, Herman Goehl; cashier, C.
H. Alin; assistant cashier, Marjorie
Lindblom, and Marian Brunsman,
bookkeeper and stenographer.

NORTH
DAKOTA
NEWS
0 . C. W ATTAM
Secretary
Fargo

H . A. FISCH ER
President
Washburn

Staff Unchanged
Former Cashier Resigns

Fargo in High

T. H. Giedt has resigned his posi
tion as secretary-treasurer of the Na
tional Farm Loan Association at Fes
senden, North Dakota, to accept a posi
tion as cashier of the First National
Bank of Montesano, Washington,
where he is now located. Mr. Giedt
formerly was cashier of the First State
Bank of Kulm, North Dakota.

Fargo’s volume of business con
tinues to ride along in “high” an in
crease of 48 per cent above the same
month in 1943 being reported in the
city’s bank debits for a recent month
by the Minneapolis Federal Reserve
Bank.

Napoleon Banker Dies
George Laney, 72, president of the
Stock Growers Bank of Napoleon,
North Dakota, since 1933, died in a
Bismarck hospital last month.
He was in charge of the liquidation
of the affairs of some 25 banks in
southwestern North Dakota in the
early 1920’s and had headquarters at
New England for six years.

Veteran Bankers Leave
Two longtime members of the First
National Bank staff in Minot, North
Dakota, J. C. Hunt and Edward Wolla,
who have been in the bank for 30 V2
and 21 years, respectively, have re
signed recently and accepted other
positions in the city.
R. A. H. Brandt, executive vice presi
dent of the First National Bank, said
their successors have not yet been
definitely decided.
Mr. Hunt has held a position as
auditor and Mr. Wolla served as head
teller in charge of notes and drafts.

Pioneer Banker Passes
Frederick P. Bergman, 64, resident
of Williston, North Dakota, for 34
years, died at his home last month.
He started his business career in a
Rugby bank in 1902.

Minot Deaths
George Heger, 53, resident of Surrey
and Minot, North Dakota, died recent
ly in a Minot hospital.
Mr. Heger had been serving as post
master at Surrey since 1936 and had
farmed in that vicinity for 20 years.
For 11 years he had been associated
with the Scandinavian American Bank
in Minot, as cashier, having joined the
bank staff in 1913.
M. R. Porter, 70, of Minot, was killed
recently when his car was struck by
a westbound Great Northern passenger
train on a crossing in the village of
Surry.
Porter formerly was president of the
Scandinavian American Bank in Minot
and was a past president of the North
Dakota Bankers Association.

J. R. Carley Dies
Chose M cRae President
At a meeting of the First State Bank
of Cando, North Dakota, recently Gor
don McRae, from Graceville, Minne
sota, was elected as president, also as
director, succeeding the later Herman
R. Rendahl. F. A. Foley of Rolla was
re-elected as vice president, W. D.
Johnson as cashier, and Clara Fernyhough as assistant cashier. Directors
chosen were A. O. Aune of Langdon,
F. A. Foley of Rolla, Gordon McRae
of Cando.

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Federal Reserve Bank of St. Louis

James Rae Carley, 67, for years en
gaged in banking and other financial
business in Grand Forks, North Da
kota, died recently.
Mr. Carley served as secretary of
the Northwestern Trust Company
from 1909 to 1913 and cashier of the
First National Bank of Grand Forks,
from 1913 to 1917.
In 1920, Mr. Carley became vice
president of the First National Bank,
then president, serving in the latter
capacity until the bank holiday in 1933.

At the Ramsey County National
Bank at Devils Lake, North Dakota,
the following were renamed: Directors
-—Blanding Fisher, S. K. Fisher, Clyde
Duffy, T. A. Hasiam and A. W. Omdahl.
Officers—Blanding Fisher, president;
S. K. Fisher, vice president; A. W.
Omdahl, cashier; W. G. Elmslie, F. C.
Hoghaug and C. L. Hodgson, assistant
cashiers.
First National Bank at Devils Lake
re-elected as follows: Directors—R. C.
Collinson, Wendel Haley, Mrs. Eliza
beth Baird, Mrs. Edna Haley and Mack
Traynor. Officers—R. C. Collinson,
president; Wendell Haley, cashier; Her
man Naugle and Earl Duell, assistant
cashiers.

Service Charges
Demand for loans has diminished to
a low figure, bank earnings in the im
mediate future may be light and it is
apparent that new service charges
will become widespread throughout
the state, it was stated in an announce
ment by the First National Bank of
Dickinson, North Dakota.
The bank recently elected A. Hillaird, Dr. A. J. Nachtwey, T. A. Tollefson, Gen. L. R. Baird, G. J. Manning
and B. F. Bambenek as directors.
A. Hilliard was elected president of
the bank. Other officers are: Vice
president, Dr. Nachtwey; executive
vice president, B. F. Bambenek; cash
ier, T. A. Tollefson; assistant cashier
and trust officer, F. L. Reardon; assist
ant cashier and assistant trust officer,
G. E. Tollefson, and assistant cashiers,
A. R. Bertsch and M. F. Lenhart.
At the Liberty National Bank in
Dickinson, P. J. Weir was elected
chairman of the board and vice presi
dent. Vincent Kovash was elected
president and Anthony Kostelecky was
named vice president.
I. G. Fischer is cashier and Emma
K. Kostelecky and Ethel M. Hansen
are assistant cashiers. Ruth Agnew
and Anne Rosche are bookkeepers.
Northwestern Banker

April 1944-

Stock Yards Notional Bank
Omaha. Nebraska

Northwestern Banker

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Federal Reserve Bank of St. Louis

April

NEBRASKA
NEWS
R. I. STOU T
President
Tekam ah

W M. B. H U G H E S
Secretary
Omaha

to aid the returning service men in this
area.
The committee is opening up a
J.
Dale Milliken, for the past 20 years
a vice president of the Fremont Nation veterans’ service center in Omaha the
al Bank, Fremont, Nebraska, recently first of April which will be a central
was named president, succeeding C. E. office for the much needed work the
Abbott who resigned the post after sale Legion is hoping to carry out.

Fremont Bank Changes

of his interest in the bank to Milliken.
C. A. “ Bert” Keene, a director of the
bank since 1925, was named chairman
of the board of directors.

L. W . Titus Dies
Liscomb Titus, president of the First
National Bank, Holdrege, Nebraska,
died last month. In 1907 he entered
the bank as a clerk and he has served
through various stages of advancement
in the bank ever since. In September
of 1942 he assumed the post as presi
dent upon the death of his brother,
Lou.
Mrs. Lulu J. Titus has been elected
president of the bank.
Miss Gladys Titus was named chair
man of the board of directors and A. I.
Rauch was elected executive vice presi
dent and director.

Dorchester Bank Officers
At the regular meeting of the board
or directors of the Citizens State Bank
at Dorchester, Nebraska, the following
officers were elected: J. H. Clark, presi
dent; L. D. Teale, vice president, and
E. L. Parker, cashier.
The Fourth War Loan Drive was di
rected by J. H. Clark, local chairman,
war finance committee. Dorchester
made its quota to the extent of over
215 per cent. Ninety-eight per cent of
the bonds applied for in the drive were
issued by this bank.

Directors and
Officers Named

W. C. Mitchell, P. H. Robinson, M. E.
Gray and E. E. Scott. Officers elected
are: George A. Gray, president; W. C.
Mitchell, vice president, and H. L. Rey
nolds, cashier. Mr. Reynolds was for
merly with a Wayne bank.
James L. Gray, formerly employed
by the Farmers State Bank of Ells
worth, Iowa, the First National Bank
of West Des Moines, Iowa, and the
Coleridge National Bank, Coleridge,
Nebraska, has been with the Treasury
Department as an assistant national
bank examiner and is connected with
the Tenth Federal Reserve District
with headquarters at Kansas City, Mis
souri.

E. H. Gerhart Dies
Edwin H. Gerheart, 73, president of
the First National Bank at Newman
Grove, Nebraska, since 1909, died last
month. In 1899 he became cashier of
the First National Bank and served in
that capacity until 1909, when he was
made president.

On Active Duty
Harlin L. Schram, S 1/c ( SK), for
merly with the State Bank of Burchard
at Burchard, Nebraska, has been as
signed to duty aboard ship and prob
ably is somewhere in the Pacific. He
is a disbursing officer and was trans
ferred to sea duty from the receiving
barracks at Shoemaker, California.

Takes Post

New board of directors for the year
for the Coleridge National Bank, Cole
ridge, Nebraska, are: George A. Gray,

C. A. Sharmann who was in charge
of the Steele City Bank, Steele City,
Nebraska, has accepted a position in
Omaha.

With Bank 40 Years
Anna Kramph observed the fortieth
anniversary of her services at the First
National Bank, North Platte, Nebras
ka, last month, by entertaining the
employes of the bank.

forward to seeing you in Lincoln

Off to the Service

on Tuesday, April 18th, at the

Wm. Pentz left last month for serv
ice. He has been in the Stamford,
Nebraska, bank about 15 years. Mrs.
Edwin Carraher from New York City
will act as assistant cashier at the
Stamford Bank.

Our officers and directors look

annual meeting of Group No.
One, of the Nebraska Bankers
Association.

Added to Staff
Loretta Rabbass is the new book
keeper and teller at the Commercial
State Bank, Cedar Bluffs, Nebraska.

On Legion Committee
W. E. Spear, trust officer of the First
National Bank of Omaha, is on a board
of directors of a special committee set
up by the American Legion in Omaha

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Federal Reserve Bank of St. Louis

n t in e n t a l

a t io n a l

E )A H K
t

L IN Ç O L N
Member Federal Deposit Insurance Corporation

Northwestern Banker

April 1944

•

N E B R A S K A

NEWS

Mr. Firestone is very much interested
in the National Movement of Victory
D.
L. Shenefelt, president of the First
Gardens. Mr. Firestone pointed out
National Bank of Oakdale, Nebraska,
that last year’s victory gardens saved
the past sixteen years, died suddenly
the transportation system of the coun
of a heart attack last month. He came
try one train of cars which would
to Oakdale in 1927, and established the stretch from coast to coast.
bank.

Bank Founder Dies

Runs for Judge

Hold Bank Positions
Mrs. Roland Mudge and Jean Schneller of Beatrice, Nebraska, have taken
positions in the Beatrice National
Bank.

Cliff C. Shoemaker, president of the
Dewitt State Bank, Dewitt, Nebraska,
entered the race as a candidate for
judge of Saline county last month.

Hurray for Victory Gardens

Farewell Party

•
forces, and for the possible three or
four who are yet to take their leave
of absence.

Ord Banker Dies
H.
B. VanDecar, an Ord, Nebraska,
banker and attorney for thirty-five
years, died last month in Lincoln. Mry
VanDecar was instrumental in organ
izing the Nebraska State Bank at Ord,
of which he was an officer for several
years.

Heads Red Cross
F.
W. Thomas, vice president of the The First National Bank of Omaha
First National Bank of Omaha, reports gave a stag party for the employes and
that in his conversation with Russell officers of the bank. The party was
Firestone of the Firestone Tire and given for the thirty-eighth employe
Rubber Company of Akron, Ohio, that who has left for service with the armed

W. E. Moor, vice president of the
Farmers State Bank, Elkhorn, Nebras
ka, has acted as chairman for the Red
Cross drive for rural Douglas county,
outside the metropolitan city of Oma
ha and replaced Leonard Mangold of
Bennington, retiring chairman.

Bank Assistant Married

THE GUARDIAN STATE BANK
A lliance, Nebraska, December 31, 1943
RESOURCES
Loans and Discounts ....................$1,657,130.21
Overdrafts ..........................................
2,495.80
Bank Building .......
1.00
2.00
Other R eal Estate .........
Cash and Due from
Banks ..................... $1,274,875.06
U. S. Government
and Government
Guaranteed Bonds
and Notes .............. 2,428,285.58
Municipal Bonds
and W arrants ...... 250,164.18
Other Bonds and
Securities ..............
377,842.98

LIABILITIES
Capital .................................................$ 125,000.00
105,000.00
Surplus .................................................
Undivided Profits ...............................
28,274.84
Reserve for Contingencies............
10,000.00

TOTAL CASH AND EQUIVALENT 4,331,167.80

DEPOSITS

Edna F. Martens, daughter of Mr.
and Mrs. George H. Martens of Ashton,
Iowa, and Donald V. Meyer, son of Mr.
and Mrs. Carl F. Meyer of Wayne, were
married last month in Wayne, Nebras
ka. She has been employed in the
State National Bank at Wayne the past
year.

Tri-County Meet

......................................... 5,722,521.97

$5,990,796.81

OFFICERS AND DIRECTORS
C. J. Abbott, President
LeRoy Abbott, Executive Vice President
C. H. Sudman, Vice President
S. H. Megown, Assistant Vice President
O. E. Black,

H. E. Licbty, Cashier
Donald Lichty, Assistant Cashier
C. D. Rourke, Assistant Cashier
Hannah E. Abbott, Director
Director

MEMBER OF THE FEDERAL DEPOSIT INSURANCE CORPORATION

G.
L. Oliver was named president of
the Tri-County Land Bank Association
at the election of officers recently in
Stapleton, Nebraska, and George B.
Van Meter was made vice president.
Directors are Frank Walz, Ed Traphagen and Robert P. Baskin.

Com es to Bank
Doris Henlea of Craig began work
last month at the Herman State Bank,
Herman, Nebraska.

77^ T 0 0 TLE-LACY
F IF T Y - F IV E Y E A R S O F DEPENDABLE AND

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Federal Reserve Bank of St. Louis

April

PROMPT SERVICE

47
Two Omaha savings and loans asso
ciation executives have been ap
pointed to 1944 committees of the
United States Savings and Loan
League.
John F. Scott, St. Paul, Minn., presi
dent of the league, named Leslie E.
Martin, president of the Nebraska Sav
ings and Loan association, to the ad
visory committee on state legislation.
Ford E. Hovey, president, Occidental
Building and Loan Association, was
appointed vice-chairman of the com
mittee on investments and investment
policies.
Bank clearings for the week ending
March 8, showed an advance in Omaha
of 19.1 per cent, over the similar
period in 1943.

A. SAWTELL, president of the
. Stock Yards National Bank of
Omaha, was named by Leo Bozell,
Omaha Chamber of Commerce presi
dent, to head a chamber committee
which will work with the American
Legion committee in finding jobs for
returning veterans.

Emil E. Placek, the Wahoo banker
whose plan to compel purchase of war
bonds by threatening punitive action
from ration and draft boards brought
a sharp reprimand from Treasury
Secretary Morgenthau, has resigned
as Saunders county war finance com
mittee chairman.
In a letter of resignation sent to
W. Dale Clark, state war finance chair
man, Placek quoted from the closing
paragraph of the Declaration of Inde
pendence: “We mutually pledge to
each other our lives, our fortunes and
our sacred honor.”
Placek added, “ Some people prefer
to pledge their neighbors’ lives and
fortunes, but not their own. My views
do not appear to harmonize with the
policy of the treasury department.”

“ I like a town . . . just like the town
We all call Omaha.
Where perfect health and boundless
Charles D. Saunders, treasurer of
wealth
the Omaha Chamber of Commerce,
From
wheat and corn we draw.
and vice president of the First Na
Our future never will be dark at all
tional Bank, represented the Omaha
We’ve got the plant to make the al
chamber at a clinic on termination
cohol.”
of war contracts in St. Louis.
(Sung at banquet to tune of “ I Want
The clinic was called by the St. a Girl” ).
Louis Chamber of Commerce in co
Nebraska bankers, business men,
operation with Col. Merle H. Davis, engineers, research men and Wash
district chief of the ordnance depart ington officials, joined in acclaiming
ment in St. Louis.
the Omaha grain alcohol plant as an
“industrial miracle” that will help to
Alvin E. Johnson, president of the
win the war.
Livestock National Bank of Omaha,
Lion’s share of the praise went to
and chairman of the Omaha Chamber the two Nebraska Johnsons, George E.
of Commerce postwar planning com Johnson, president of the Farm Crops
mittee, announced that he will enter Processing corporation, which has
the primaries as a candidate for Sec leased and is operating the plant,
ond district delegate to the Republi owned by the Defense Plant corpora
can national convention. He said he tion, and Alvin E. Johnson, secretaryhas forwarded petitions to the secre treasurer of the corporation and presi
tary of state.
dent of the Livestock National Bank of
Omaha.
The latter was host at a dinner at
W. Dale Clark, president of the
Omaha National Bank and state war the Fontenelle Hotel to two hundred
bond chairman, returned home re guests. Practically every man present,
cently from Methodist hospital in said the host, had something to do in
Omaha, where he was ill with pneu-% transferring the plant from the paper
stage to a manufacturing unit.
monia.

NATIONAL BANK

S T . JO SEPH , MO.

M IL T O N TO O TLE, JR.

E. H. Z IM M E R M A N

R. E . W ALES

E . H . SCHOPP

PR E SID E N T

VIC E P R ESID EN T

CASHIER

ASST. CASHIER

G R A H A M G. L A C Y

M IL T O N TO OTLE, III

FR E D T . BU RRI

E . L. CRUME

VICE PR E SID E N T

VIC E PR ESID EN T

ASST. CASHIER

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M e m b e r Federal D eposit
Insurance Corporation

Northwestern Banker

April 1944

Nebraska Group Meetings This Month
FTER being assured by local rail
road facilities in Omaha that
there would be cars available for the
usual rail tour of Nebraska Group
Meetings, the Office of Defense Trans
portation stepped into the picture and
vetoed the trip, but the Nebraska
Bankers Association is going ahead
with its plans to hold 1944 Group
Meetings, with towns and dates as
listed above. Scheduled rail facilities
are such that those bankers desiring
to make all the meetings will experi
ence no difficulty, and several of the
towns are near enough together to
permit use of automobiles, depending
on the condition of the gasoline coupon
account.
Detailed information regarding pro
grams and local meeting places is not
available as this goes to press, but we
give you here some of the highlights
of the meetings.
Headquarters for the meeting of
Group One in Lincoln on Tuesday,
April 18th, will be at the Hotel Lincoln.
A luncheon is planned at noon, and
the usual Group dinner will be held
in the evening at the University Club.
We understand there is a Burlington
train leaving Lincoln about midnight
of the 18th, which will arrive in Alli
ance sometime in the forenoon of
Wednesday, April 19th, which will per
mit attendance at the meeting of Group
Six in the latter city for those who
choose to make the trip.
The next meeting will be held in
Columbus on Saturday, April 22d, the
meeting of Group Two. Group Three
will also be held on the same day at
Norfolk. The Norfolk meeting will
start with a luncheon. Speakers on
this Group Three program will be
former Congressman Harry B. Coffee;

Date
Tuesday, A p ril 18
W edn esd ay, A p ril 19
Saturday, A pril 22
Saturday, A pril 22
Tuesday, A pril 25
W edn esd ay, A pril 26

Town
Lincoln
A lliance
Columbus
Norfolk
Holdrege
Kearney

Ellsworth Du Teau, secretary of the
Nebraska Alumni Association; R. I.
Stout, president of the Nebraska Bank
ers Association; and Governor Dwight
Griswold. A dinner, followed by a
dance, will be held in the evening.
Registration of Group Two in Colum
bus on April 22 will be at the Evans
Hotel in the morning, with a buffet
luncheon served at noon, immediately
followed by the afternoon program.
Governor Dwight Griswold, Dr. Paul
Cadman, economist for the ABA, and
Wade Martin, Nebraska banking com
missioner, will be afternoon speakers.
Toastmaster at the evening dinner
will be Gerry Collins, Omaha attorney,
and the dinner speaker will be Tom
Collins, publicity director of the City
National Bank, Kansas City, followed
by dancing. Overly Peck, president
of the Central National Bank, Colum
bus, throws in the suggestion that
“what more could be expected with
Tom and Gerry Collins for an evening
of entertainment.”
Groups Four and Five will hold their
meetings at Holdrege and Kearney,
respectively, as originally planned, but
the dates for the meetings have been
moved forward into the following

Group
O ne
Six
Two
Three
Four
Five

week. The meeting at Holdrege will
be on Tuesday, April 25th, and the one
at Kearney on Wednesday, April 26th.
Everything points to an excellent
attendance at all the Nebraska Group
meetings this year. Interest in the
meetings has been at high pitch, and
meetings of this kind provide gettogether sessions that can be obtained
in no other way. Save a gas coupon
or two, and make every effort to attend
the meeting of your Group.

Assistant Cashier Succumbs
Leo A. Pilger, 46, assistant cashier of
the First National Bank, Stanton, Ne
braska, died at Stanton recently. He
has been with the bank since 1918.

Banker to Speak
John Lauritzen of the First National
Bank of Omaha, has been asked to
speak before the Nebraska Junior
Chamber of Commerce convention,
which is to be held in Lincoln the
latter part of April. The topic assigned
to Mr. Lauritzen has been “Jobs for
Service Men.”

A Bookkeeper
LaVonne Hanel, who moved with
her parents, Mr. and Mrs. Jerry Hanel,

irst National
Omaha

At T h e
Of

Crossroads

Oldest National Bank
From Om a h a West

O m a h a
MEMBER FD IC

Northwestern Banker

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Federal Reserve Bank of St. Louis

April

«.y

■4-

49
last month to Columbus, Nebraska,
took a bookkeeping position at the Cen
tral National Bank of that city.

SE R V IC E
Maintaining an intimate,
personalized correspondent
bank service.

Association Directors
New directors of the Cass-Otoe Farm
Loan Association in Nebraska are: Q,
W. Martin, Greenwood; Orest P. Cook,
Alvo; Fred W. Paap, Otoe; Nelson
Berger, Nehawka; J o h n Lambert,
Greenwood, and Herman Bornemeier,
Alvo.

E X P E R IE N C E

$20,000,000
Directly Placed in Our

P O L IC Y

Selected Associations

To cooperate with out-oftown banks rather than
compete for business which
is rightfully theirs.

Banker's Son Decorated
Lt. John P. Allen, Jr., son of J. P.
Allen, president, Security State Bank,
Oxford, Nebraska, has been awarded
the Distinguished Flying Cross for ex
traordinary service while participating
in 50 operational missions in the South
west Pacific. The award was made by
Lt. Gen. George C. Kenney, command
er of Allied air forces in that area.

Officials with years of serv
ice in this field, assuring a
knowledge of requirements
and valuable assistance.

5
We Analyze
400 Federally
Insured Savings &
Loan Associations

S .
Financial Statements
Operating Statements
Complete History

Future Bank Head Talks
Principal speaker at the annual meet
ing of the National Farm Loan Asso
ciation held at Ogallala, Nebraska, last
month, was Edwin N. Van Horne, who
will become president of the Federal
Land Bank, Omaha, on June 1st. He
has served as executive vice president
of the American National Bank and
Trust Company in Chicago.

Wakefield Election
Officers who were elected for the
year at the Wakefield National Bank,
Wakefield, Nebraska, are: A. L. Pospisil, president; Robert E. Anderson,
cashier; Roy S. Wiggains, assistant
cashier; Chas. A. Sar, J. H. Mont
gomery, T. M. Gustafson, Fred Muller,
A. L. Pospisil and Robert E. Ander
son, directors.

Stockholders Meet
At the annual stockholders meeting
held at the State Bank of Cairo, Cairo,
Nebraska, recently, the following of
ficers and directors were elected: W. L.
Heupel, president; G. C. Raven, vice
president; AV. E. Sorensen, cashier; AV.
S. Sorensen (in the service), assistant
cashier. Directors are W. L. Heupel,
G. C. Raven, W. E. Sorensen, Ed Riedy,
August Eickhoff.

Heads Review Board
Fred AV. Thomas, vice president of
the First National Bank of Omaha, is
Y O U R STATE B A N K ER S A S S O C IA T IO N
O F F IC IA L S A F E , V A U L T A N D
T IM E LO C K EXPERTS

F. E. D A V E N P O R T & C O .

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Federal Reserve Bank of St. Louis

OM AHA

Northwestern Banker

April

• N E B R A S K A
serving as chairman of the United
States Enemy Alien Board for the state
of Nebraska.
Mr. Thomas spends
considerable time in the review of
cases in the Federal Building in
Omaha.

N E WS

be associated with the Stangel Bros.
Oil Company.
For 19 years he has been an officer
of The Howells State Bank. M. C.
Blazek and Marguerite Fiola are at
the bank each day assisting people in
making out their income tax returns.

Leaves Cashier Post
E.
A. Stangel has resigned his posi
tion as cashier of The Howells State Observes 25th Year
Twenty-five years ago in February
Bank, Howells, Nebraska, and will
move to Onawha, Iowa, where he will the Hastings National Bank, Hastings,

E S T A B L I S H E D

1 8 8 7

M A IN T A IN —
A sound bank to assist you at all times.
A friendly service to give you all the time.
A couple of ideas in case you just want to
“ discuss.”
As always, a desire to see you as often as
possible.

•
Nebraska, first opened its doors for
business.
Organized and chartered in Decem
ber, 1918, as the State Bank of Hast
ings, it was granted a national charter
in 1930, and became known as the
Hastings National Bank.
Three of the original officers and
directors continue to serve the bank.
The State Bank opened with L. L.
Brandt as president, R. R. Vance as
vice president, O. A. Riley as cashier,
L. E. Uden as assistant cashier, and
Stephen Swigle as a director. Today
Riley is vice president and Swigle and
Vance continue as directors.
C. E. Byers, also a director, became
a member of the bank board shortly
after the opening.
President H. G. Pratt has been active
in the bank since 1921 and since 1923
has been serving as president.
Following are the officers and di
rectors: Pratt, president; Riley, vice
president; Charles E. Deets, cashier;
J. Leo Swigle, Joseph Bauer, L. J. McCune, Hazel Horn, assistant cashiers;
Byers, Swigle and Vance, directors.

Designated

m e r ic a n

N a t io n a l

H ank.
Member Federal Deposit Insurance Corporation

ST.

JO SEPH ,

MO.

FIVE REASONS
YOU’LL LIKE “CITY NATIONAL”
M A N A G EM EN T

F A C IL IT IE S

A friendly, relia ble p ersonnel w ith years
of exp erien ce— anxious to render ev ery
p ossib le service.

24-hour transit service— investm ent infor
m ation— b on d and trust departm ents— upto-date credit files— prom pt, accu rate serv
ice.

SIZE
Large enou gh to assure stability with a
record of b uild in g a strong capital struc
ture from earnings— and of p a y in g divi
dends con tinu ously throughout depression
years.

L O C A T IO N
S trategically loca ted in the Heart of A m er
ic a with fastest rail a n d air connections
to all points in the U. S.

C O O P ER A T IO N
A m ple help to correspondents in h andling
excess credit lines, and a p o lic y of non
com petition with its correspon den t on loans
in their territories.

CITY NATIONAL BAM 8 TRUST CO.
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^
April 4,944

Visits Capital
H.
A. Schneider, the president of the
Plattsmouth State Bank, Plattsmouth,
Nebraska, spent a week in Washing
ton, D. C., where he visited the Ne
braska delegation in congress in the
interest of legislation with regard to
the banking business.
Mr. Schneider was delegated to rep
resent the Nebraska Country Bankers
Association of Nebraska, in the hear
ings on pending legislation.

Selected

*JUe Ceut&men.

18th &Grand

Official depositories for county funds
for 1944 are: Commercial State Bank,
Clay Center, Nebraska, combined cap
ital, $40,000.
Fairfield State Bank, Fairfield, Ne
braska, combined capital, $30,000.
City State Bank, Sutton, Nebraska,
combined capital, $40,000.
Sutton State Bank, Sutton, Nebraska,
combined capital, $30,000.
Security State Bank, Edgar, Ne
braska, combined capital, $30,000.

Kansas City, Mo.

The following stockholders were
elected as directors of the State Bank
of Dannebrog, Nebraska; Dr. P. M.
Pedersen, L. M. Petersen, Hans N.
Hatt and A. E. Dwehus. At the di
rectors meeting the following officers
were elected for the ensuing year: A.
E. Dwehus, president; Dr. P. M. Peder
sen, vice president; and E. Dwehus,
cashier.

51
Thomas J. Aron. The directors elected
the following officers: Thomas J. Aron,
president; W. H. Collett, vice president
and cashier.
Mrs. Adolph Brchan has resumed
her work at the Crete State Bank after
an absence of several months, during
which time she was with her husband,
Ensign Adolph Brchan, at Houston,
Texas.

New Bank Clerk
Dorothy Beyeler has begun her
duties as bank clerk at the First Na
tional Bank at Wayne, Nebraska. Pfc.
Charles Scribner, who had been in the
bank, is at Sioux Falls, and Norman
Clark left for service.

Eighteen Years
Miss Mattie F. Ralston, assistant
cashier of the McDonald State Bank,
North Platte, Nebraska, has been as
sociated with that institution for the
past 18 years. She was formerly em
ployed at the Wellfleet Bank.

Replaces Mrs. Kable
Darlene Dillin is now employed in
the First National Bank, Friend, Ne
braska, replacing Mrs. Earl Kable.

T HE Nebraska parole board has re
duced from 27 to 9% years the
sentence of Harold Payne, Omaha,
sentenced in 1938 after pleading guilty
to robbing banks at Colon, Leshara
and Yutan. Payne, 31, now has 3%
months to serve.
Formation of the first large Ne
braska air transportation company,
Prairie Airways, Inc., was announced
in Lincoln by Chris J. Abbott, presi
dent, Hyannis banker and rancher and
Sen. Harry E. Gantz, Alliance, vice
president and general counsel.
They filed articles of incorporation
with Secretary of State Frank Marsh.
Home office will be at Alliance.

B a n k s a n d B a n k e r s D iv is io n
o f T h e First N a tio n a l B an k o f

Chicago is composed o f officers who,
because of long years of experience and
nation-wide contacts, assure correspond
ent banks of exceptionally prompt and

Sixty-four years old recently, George
W. Holmes, president of the First Na
tional Bank of Lincoln, spent the day
celebrating his fifteenth birthday an
niversary. He was born on February
29, 1880, and is a native of Lincoln.
“ It seems rather strange to be cele
brating only my fifteenth birth anni
versary,” Mr. Holmes said. “Yet, the
fact that they come only every fourth
year, makes the event all the more a
pleasure.”
Mr. Holmes did not have an anni
versary in 1900, there being no leap
year then. This was because once each
century there is a skip to equalize the
time.

efficient handling of all bank-to-bank
transactions.
W e invite your Chicago business.
Ba

n k s

a n d

Ban

John J. Anton

kers

iv is io n

Thomas J. Nugent

Vice-Presidents

Harold W

Lewis

Melvin H. Thies

Verne L. Bartling

Assistant Vice-Presidents

Leland L. Hobbs

Charles F. Nett hall

Edward Decker

Assistant Cashiers

Crete State
Directors of the Crete State Bank at
Crete, Nebraska, elected for the ensu
ing year are: O. G. Miller, B. G. Miller,
R. M. Pflasterer, W. H. Collett and

BANKS

The First National Bank
of Chicago

Bought and Sold

Confidentially and with becoming dignity

Building with Chicago since 1863

BANK EM P LO Y E ES P LA C ED .
39 Y e a rs S a tis fa c to ry S e rv ice

THE CHARLES E. WALTERS CO.
OM AHA, NEBRASKA

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Federal Reserve Bank of St. Louis

MEMBER

FEDERAL

DEPO SIT

INSURANCE

CO R POR ATION

Northwestern Banker

*
April 19bb

W e Specialize in Handling
Transit Items
A L A R G E N U M B E R OF OUR
3 4 5 Correspondent Banks route
all their transit items through us.

T r y us on your next rem ittance

letter

LIVE STOCK N A T I O N A L BANK

Northwestern Banker

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Federal Reserve Bank of St. Louis

OMAHA,

NEBRASKA
OFFICERS
ALVIN E. JOHNSON
President
R. H. KROEGER
V ice President

HENRY C. KARPF
V ice President
PAUL HANSEN
V ice President and C ashier

H. H. ECHTERMEYER
V ice President

W . DEAN VOGEL
V ice President
L. V. PULLIAM
Asst. Cashier

C. G. PEARSON
Asst. Cashier

EARL R. CHERRY
Asst. C ashier
TOM J. PRICE, JR.
Asst. Cashier

M e m b e r of F e d e r a l R e s e r v e S y s t e m a n d F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a t i o n

April tO'i'i

121 Per Cent on Bond Drive
E. A. Schell, cashier of the State
Bank of Portsmouth, Portsmouth,
Iowa, as chairman of the Shelby coun
ty, Iowa, bankers’ bond campaign, re
ports a total sale of $956,408, an over
subscription of $172,408, or 121 per cent
of the quota assigned.

Clinton Man Leaves
y.

W . JO H N SO N
President
Cedar Falls

FRAN K W AR N ER
Secretary
Des Moines

Francis J. Hamman, who has been
identified with the City National Bank,
Clinton, Iowa, for the past 27 years, has
resigned.

Cashier's Son Killed

A t Norway

Returns Home

Albert M. Compton, cashier of the
West Des Moines State Bank, West
Des Moines, Iowa, last month was noti
fied that his son, Aviation Cadet Robert
Compton, 21, had been killed in an air
plane crash in Texas.

The annual meeting of the Benton
County Savings Bank was held last
month, with the re-election of E. M.
Williams as president; H. O. Schloeman, vice president, and Prentiss G.
Folvag, cashier. The same directors
were also re-elected.

A New York banker, J. H. Durrell,
has purchased 880 acres of Iowa farm
land near Roland, Iowa, and is coming
back to his home state to live.
Durrell, a native of Dayton, Iowa,
who began his banking career in the«
Fort Dodge National Bank, has been
vice president and head of the foreign
branch of the National City Bank.

Promoted to Captain
Lieutenant Frank Jacobs of Big
Spring, Texas, has recently been pro
moted to the rank of Captain in the
Air Force.
Before going to the army he was a
teller in the Security National Bank,
Sioux City, Iowa.

Hardin County Meeting
The Hardin County Bankers Asso
ciation was the guest last month at
Iowa Falls of Howard Drake and his
son, Carroll Drake, president and cash
ier, respectively of the Security State
Bank at Radcliffe, Iowa. Following
dinner talks were made by:
V. W. Johnson, president, Iowa Bank
ers Association, president, First Na
tional Bank, Cedar Falls; M. W. Ellis,
state superintendent of banking, Des
Moines; R. L. Bunce, deputy superin
tendent of banking, Des Moines, and
Frank Warner, secretary, Iowa Bank
ers Association, Des Moines.

Another in Service
Fred A. Keepf, assistant cashier of
the First National Bank, Hampton,
Iowa, for over ten years, has joined the
Navy and been given a leave of ab
sence for the duration of the war. This
makes three employes from the First
National Bank that are in the armed
forces, Second Lt. David Beed and Rob
ert Schaefer, who is in England, hav
ing been gone three and two years
respectively.

A former cashier of the Farmers
Savings Bank, South English, Iowa,
John M. Van Kirk, died last month at
Centerville. He had also been in the
banking business at Kinross.

Takes New Post

Leaves Bank

Charles Fleenor of Waukon, who
has been employed as assistant cashier
in the Waterville, Iowa, Farmers and
Merchants Savings Bank, has secured
a similar position in Des Moines.

Irv. Isgrig resigned from the Miles
Savings Bank, Miles, Iowa, last month
as its assistant cashier.

Gold Oak Leaves

Assistant Cashier Marries
Grace Whitacre became the bride of
Charles Hoover recently. The couple
will live at Brighton, Iowa, where Mr.
Hoover is assistant cashier of the
Rubio Bank.

On Lisbon Board
A. J. Baird of the Lisbon Bank and
Trust, Lisbon, Iowa, recently resigned
from the board on which he had served
for several years. His place was taken
by Dr. John R. Gardner.

Death Takes J. M. Van Kirk

New Bank Employe
Walter J. Otto, Jr., has accepted a
position with the Exchange State
Bank, Exira, Iowa, and began his
duties in that institution last month.

Capt. Harry W. Schaller was pro
moted to the rank of major in the U.
S. Army Air Force. He is on leave
of absence from his position as presi
dent of the Citizens First National
Bank, Storm Lake, Iowa.

C . A . Bond Dies
C. A. Bond, 92, former treasurer of
the Farmers Loan and Trust Company,
Sioux City, Iowa, and a longtime as
sociate of the late James F. Toy, found
er of the Toy National Bank and af
filiates died recently.

S carborough ^ C ompany

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Federal Reserve Bank of St. Louis

¿ y r l& ,4 A J lC € ,4 t-C £ y C i'u ttfc ii'ï'S
First National Bank Building, Chicago

A* F f i n t t k i

Horace A . Smith, Iowa Representative
Des Moines, Iowa

Northwestern Banker

April 7944

Is Bookkeeper
Phyllis Harper succeeds Mrs. Walter
Ellison at the Iowa State Bank, New
London, Iowa.

office of the Farmers State Savings
Bank, last month. C. L. Fiester, cash
ier of the Farmers State Savings Bank,
Independence, has been at the bank
since the death of Manager, E. C. Hesner.

Assistant Cashier G oes
Wava Barfels, assistant cashier of
the Lincoln Savings Bank, Reinbeck,
Iowa, resigned recently. Her place
in the bank will be filled by Connie
Harris. LaVonne Moye is a new em
ploye in the bank.

Takes Post
Robert Staley, from Charter Oak,
started work last month at the Ute
State Bank, Ute, Iowa.
D. A. Hodgdon, the former assistant
cashier, resigned to accept a civil serv
ice position in Sioux City.

At Lamont Office
Victor White from Independence,
Iowa, began his duties at the Lamont

W e iS LPlCf

Former Banker Dies
Charles E. Hoflund, 77, a former
banker of Sioux City, Iowa, died in
Miami, Florida, recently.
Mr. Hoflund was associated with Mr.
Scott and the late Abel Anderson in
the Northwestern Bank. He retired
from active business about 25 years
ago.

Fill Vacancies
G. W. Artherholt, president of the
Montgomery County National Bank of
Red Oak, Iowa, announced that all its
bank directors were re-elected.
He expressed concern over the loss
of two employes to the armed services,
Sam Cooke and Gerald Spicer.

Mr. Artherholt last m o n t h an
nounced the election of O. R. Byers as
cashier and Edith L. Jones as assistant
cashier to fill vacancies.

P l a n to u s e an a d v e r t i s i n g p r o g r a m of
w ell
worded
m essages
created
by
W e s slin g S erv ic e s, D e s M oines, Iow a

S ten jiceó
B

E D I T H L. J O N E S
A ssistant Cashier

b l

l a t i

D R. WESSLING, PRESIDENT
V ),e i

in Sioux City . . .

9, S o

Muscatine Banker Dies
William F. Siemers, 48, associated
with the Muscatine Bank and Trust
Company, Muscatine, Iowa, since 1927,

Officers
Charles R. Gossett, President
B. M. Wheelock, Vice President
Albert C. Eckert, Vice President
R. Earl Brown, Cashier

The business you channel through

Daniel B. Severson, Assistant Cash.
Frank H. Abel, Assistant Cashier

us is given the same thoughtful

Alvin G. Nelson, Assistant Cashier
Robert W . Lewis, Assistant Cashier

attention it would receive if you
Directors

were here in person.

Paul Bekins
George L. Booth
Charles R. Gossett

C 'E C U R IT V

Northwestern Banker

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

Harold A. Jacobsen
Wm. W . Macfarlane
Jules T. Martin
Otis P. Garrison

of S io u x C it ÿ
April Í.944

Harry P. Pratt
Edward C. Palmer

•
died there last month. At the time of
his death he held the position of as
sistant cashier and trust officer at the
bank.

Join Glidd en Bank
First National Bank directors at
Glidden, Iowa, last month elected
Merle M. Moore cashier and W. H.
Rust, assistant cashier of the bank.

President Passes Away
Chris H. Nelson, 84, president of the
Hancock County National Bank, Gar
ner, Iowa, since its organization in
1934 and a former member of the state
legislature, died there last month.
At a board meeting H. L. Ollenburg,
vice president and cashier was elevated
to president; J. S. Wesson, vice presi
dent; W. L. Baggs was elevated from
assistant cashier to cashier; Lucile R.
Wesson and Bernice R. Schultz, as
sistant cashiers, and Wanda Johnson
and Lois Schulz, bookkeepers.
Both Mr. Ollenburg and Mr. Baggs
have been connected with the bank
since it was organized.

Mrs.
month
agonal,
Maxine

NEWS

•

Mr. Rake is secretary and cashier, O. H.
Toft, assistant cashier and Carl Knut
son, assistant cashier.

Coming Events
A. Omar Cannon, vice president and
cashier of the Cromwell State Savings
Bank, Cromwell, Iowa, forecasts the
following economy: “Farmers take
notice. Deflation after the war is as
certain as death and taxes. Begin
now to prepare for the inevitable drop
in farm prices which will follow the
close of the war. Handle livestock
carefully. Feed hogs up to 300 pounds
or better. They will be higher and
scarcer this summer. Finished cattle
will also be higher this summer. But

President Honored
Last month, the Oddfellow’s Lodge
of Wesley, Iowa, commemorated the
fiftieth anniversary of the membership
of Guy M. Butts, president of the Ex
change State Bank at Wesley. On
that evening 10 of the lodges from that
part of the state were invited to Wes
ley to celebrate the event.

★

HEADQUARTERS
FOR

In Diagonal Bank
>

IOWA

NORTHEASTERN IOWA

Ray Payne began work last
at the First State Bank, Di
Iowa, assuming the duties of
Vanderpluym.

BANKERS

Everly G ets Bank
The new Everly State Bank replac
ing the office of the Farmers Trust &
Savings Bank at Everly opened for
business April 1st. Officers are L. A.
Witter, president; J. F. Schoelerman,
vice president and Carl Chalstrom,
cashier, and directors are J. F. Schoel
erman, R. J. Schoelerman, Carl Chal
strom, A. L. Wehde, R. M. Cornwall,
C. R. Wall and L. A. Witter.

★

This bank, with the advantages of quick, effi
cient service and complete facilities, is the

Resign
logical channel for your Northeastern Iowa

Bob Henderson of Coggan, and W.
R. Stoakes of Cedar Rapids who were
both employed at the North Linn Sav
ings Bank, Center Point, Iowa, re
signed from their positions recently.

business.

THE NATIONAL BANK

Rake Bank Head Dies
Ed O. Halvorson, president of the
State Savings Bank, Rake, Iowa,
passed away recently at the age of 79.
He has been a director for thirty years
and president for six. O. E. Quam is
the new president. Johnnie Rake was
elected as a director to succeed O. E.
Quam. Other members serving on the
board of directors are A. J. Havnen,
Johnnie Jarshaw and S. B. Jensvold.

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Federal Reserve Bank of St. Louis

OF WATERLOO
Member . . . Federal Reserve System
Member . . . Federal Deposit Insurance Corporation

★

Northwestern Banker

★
April 1944

•
cattle are piling up all over the coun
try and losses will be terrific if the
war ends suddenly. Keep feeder
lambs and push them along to early
fall markets. Have your feed in sight.
Get your corn now, especially seed
corn. There may not be anything to
the drought cycle idea but if there
is it is about time for a dry year and
with the greatest supply of hogs, cat
tle and sheep the world ever saw, a
drought this summer would mean one
of the notable catastrophies in live
stock history.”

IO WA

NEWS

•

Dies in W aterloo
George Garrettson, 72, a Waterloo,
Iowa, resident for 44 years, died last
month of a heart ailment. He was
cashier, vice president and president
of the Iowa State Bank before it
merged with a national bank.

Resigns at Burlington
Officers of the Farmers & Merchants
Savings Bank of Burlington, Iowa,
were re-elected at the annual meeting
of the bank last month.

James Kelly, one of the original
directors when the bank was organized
in 1916, resigned as a director because
of ill health.

To Des Moines Bank
W. G. Kane, 43, of Evanston, Illinois,
has been elected an assistant cashier
of the Central National Bank and
Trust Company, Des Moines.
Kane comes to the institution from

W I L L I A M G. K A N E
A ssistant Cashier

Food W ill Help W in the War
And Write the Peace
This year again—the United Na
tions have a vital interest in the
large-scale plantings of the Mid
west. The extent of these plantings
will go a long way toward forecast
ing the available supply of food,
clothing and raw material, which
will help win the war; and may
help write the peace.
Back of actual planting dates is a
long period of preparation which
requires the products and services
of a whole group of industries.

Fertilizers have been obtained to
assure higher yields; tested seeds
of high-yielding grains and grass
es have been ordered and deliv
ered; farm machinery has been
put in shape to make efficient
large-scale operations possible.
The banks of the Midwest are an
integral part of all this. They pro
vide the financial services which
facilitate exchange and help make
plantings possible at the wartime
tempo.

M e m b e r F ed e ra l D e p o s it Insu rance Corporation

DROVERS NATIONAL BANN
DROVERS TRUST 0 SAVINGS BANN f
UNI ON
Northwestern Banker

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Federal Reserve Bank of St. Louis

STOCK
April 7,944

YARDS,

CHI CAGO

the First National Bank and Trust
Company, at Evanston.
Previous to his affiliation with the
Evanston bank, he was cashier of the
Halstead Exchange National Bank,
Chicago.

Battle Creek Banker
Ace Dwine of Battle Creek was ap
pointed Clerk of Courts to fill the
vacancy created by the resignation of
Chas. P. Denison in Holstein, Iowa.
For three years Mr. Dwine was con
nected with the First State Bank at
Battle Creek, Iowa.

Annual Meet
The Primghar Savings Bank, Primghar, Iowa, held election of officers
for the year at the annual meeting
held last month. Officers for the en
suing year are: President, A. E. Ohme;
executive vice president, E. T. Peter
son; vice president, Herman Mericle
and cashier, W. A. Hoeven.

Chosen Directors
Two new directors were added to
the board of the Exchange State Bank,
Springville, Iowa, Mason Gramling
and C. H. Petty.

How Savings and Loan Operates
By Allison W augh
D ire ctor
Financial Development Com pany, C hicago

H OW does an insured savings and
loan association operate? How
can it serve the public? What funds
are used in the operation of the asso
ciation? How are these funds in
vested? What returns may be achieved
by the association for these invested
funds? How are these returns or
earnings handled?
The savings and loan association ac
cepts the funds of the public, indi
viduals, insurance companies, fraternal
orders for the purpose of making a
profit. The association places at least
eighty-five per cent of these funds in
a very restricted class of loans—loans
on the homes for homeowners. After
proper allocations for expenses and
after setting up legal reserves—these
profits are passed on to the members
of the association.
The insured savings and loan asso
ciation is a member of the Federal
Savings and Loan Insurance Corpora
tion, a federal government instrumen
tality, which insures all accounts up
to $5,000 for safety of principal.
Each insured savings and loan as
sociation is a member of the Federal
Home Loan Bank System. The asso
ciations, through their membership,
and because they only make the type
of loans prescribed by federal authori
ties, they may take, in times of stress
or stringency, these loans to their
Federal Home Loan Bank and secure
bank loans. This is similar to the op
eration of the rediscount by federal
Reserve Bank of loans made by mem
ber banks. In other words, the sav
ings and loan association has avail
able at all times, an ample credit cush
ion upon which it may rely.
The savings and loan associations,
therefore, offers to members four ex
tremely important factors:
(a) Unquestioned safetv because of
insurance by federal instrumentality;
(b) Quick availability of funds since
most associations will meet withdraw
als upon demand—while some will re
quire a thirty day notice;
(c) Complete freedom from loss
through market fluctuation since there
is no depreciation on an insured ac
count.
(d) The income rate is most attrac
tive.
There are many savings and loan
associations which are now paying
3 per cent, while there is a smaller
group paying 3% per cent and an ex
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

tremely small group, at this time,
paying 4 per cent. Ordinarily it would
be difficult for the investor to secure
information which would permit him
to select associations, because a great
may associations are declining funds
during this present war emergency.
Home building has been reduced to an
absolute minimum and, as a conse

quence, there are no home builders
and, right now, there are no homes to
be gotten. Therefore, the associations
have a very slight loan demand, in the
main. Financial Development Com
pany of Chicago represent a group of
approximately 400 of these federally
insured associations, located in every
section of the country.
There are two types of funds. The
“current funds” and the “investment
funds” . It has been found that “cur
rent funds” will usually remain for
periods of from six months to a year
and then will be withdrawn and used
for some purchases, probably a home,
or furniture or perhaps an automobile.

A G reat M ark et C en ter
No city enjoys more natural advantages
of location, than Sioux City. In the center
of this great farm and livestock area, the
First National Bank is eguipped to serve
you guickly and accurately.
We

cordially invite the

accounts

bankers who wish dependable correspond
ent service in Sioux City.
A. G. Sam, President
J. R. Craning, Assistant Cashier
J. P. Hainer, Vice President
E. A . Johnson, Assistant Cashier
Fritz Fritzson, Vice Pres, and Cashier
W . F. Cook, Auditor
J. T. Grant, Assistant Cashier

NATIONAL
BANK
*

★

/ ff

S C / fiy

Member FD IC — Member Federal Reserve System

Northwestern Banker

April 1944-

58
•
The “investment funds” are the funds
of those persons or institutions who
would ordinarily invest in mortgages
or high grade securities.
Investors prefer the savings and
loan certificates rather than mortgages
because:
(a) Their certificates are federally
insured;
(b) There are no collection costs or
worries;
(c) There is no need for keeping up
repairs on a piece of property;
(d) Their funds are readily avail
able.
When the present world war has

I O W A

N E W S

•

ended, it is estimated that there will
be a building boom calling for the
construction of perhaps 10,000,000
homes. This building boom will ex
tend to every section of the country
because of the present wholly in
adequate housing and because of the
return of several million men to their
communities. This is definitely a
“peacetime industry” and it is believed
that the peacetime investment, even
at this time prior to the end of the
war, is a logical investment for the
conservative individual or institution.
It is becoming obvious to prudent
investors that this is an attractive in

vestment offering. It is a legal invest
ment in most states, by statutory en
actment, for insurance, fraternals,
trusts, cemetery associations, colleges
and many other types of account.

From Minnesota
Arthur Angell, formerly of Minne
sota Lake, Minnesota, has been em
ployed by the First State Bank, Greene,
Iowa.
He is to take over the duties of
Verle Barth, who is soon subject to
call by selective service. Mr. Barth,
however, will continue to work in the
bank until his call comes.

New Cashier

T h is
may be useful
to you. . .
fo

x f ie k

f e n c e

S in c e 1 8 6 8 th is i n s t i t u t i o n
has co -o p erated w ith banks
th r o u g h o u t th e m id d le
w est in ex ten d in g cred it
facilities to sound co m
m ercial b o rro w ers.
T h is ex p erien ce is at your
disposal w ith o u t o b lig a tio n .

LIVE S T O C K
- Vff/fenri/ B A N K

Northwestern Banker

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Federal Reserve Bank of St. Louis

ESTABLISHED

UNION

STOCK

W/f'cftffC
1868

YARDS

Henry VanHoute, who has been
bookkeeper at the Farmers Co-opera
tive Creamery at Boyden, Iowa, for
many years, has resigned to become
cashier of the Farmers Savings Bank
there.

Year's Officers
Rowley Savings Bank, Rowley,
Iowa, elected the following directors:
P. C. Thedens, president; L. D. Wal
lace, vice president; D. H. Dingsley,
cashier; Charles A. Grover, assistant
cashier; and Bessie Dingsley employed
to assist with the book work for the
coming year.

Elected President
L. N. Cleveland has been enected
president of the Automobile Under
writers which operates and manages
the State Automobile Insurance Asso
ciation of Des Moines. Mr. Cleveland
succeeds the late Charles S. McKee.
He has been vice president of the Auto
mobile Underwriters for the past quar
ter of a century.
Lieutenant W. E. McKee, now with
the armed forces, was made first vice
president, A. B. Loranz was re-elected
secretary, and Mark C. Waterman was
re-elected treasurer. Other officers
elected at the same directors’ meeting
were: William N. Plymat, vice presi
dent; Don L. Cleveland, vice president;
Robert C. Waterman, vice president;
James H. Brumbaugh, assistant secre
tary; Robert J. McKee, comptroller,
and Hodge Jones, superintendent of
agencies.
All five members of the advisory
committee, consisting of Frank R.
Y O U R STATE B A N K ER S A S S O C IA T IO N
O F F IC IA L S A F E , V A U L T A N D
TIM ELO C K EXPERTS

Member Federal Deposit Insurance Corporation

F. E. D A V E N P O R T & C O .
OM AHA

April 1944

-•
Warden. Howard L. Wilson, C. E.
Erickson, George A. Peak and Walter
L. Stewart, were re-elected.

Federal Home Loan
Bank Meets
The Federal Home Loan Bank of
Des Moines held its annual meeting
last month in Des Moines with approxi
mately eighty members present from
its membership among the Savings,
Building,
and Loan Associations
throughout Iowa, Minnesota, Mis
souri, North and South Dakota. E. J.
Russell of St. Louis is chairman of the
board and Robert J. Richardson, Des
Moines, is president of the Federal
Home Loan Bank of Des Moines.
Speakers included Chairman E. J.
Russell, President Richardson, F. B.
Bourland, special representatives of
the Federal Home Loan Bank Admin
istration, Washington, D. C., and John
F. Scott of St. Paul who is president
of the United States Savings and Loan
League.
In his address at the meeting, Mr.
Scott declared that the building of new
loans will be our largest postwar ac
tivity. He said that building and loan
associations will of course play a large
part in such postwar activity.
The Federal Home Loan Bank of
Des Moines has paid dividends to stock
holders every year since the bank
began operations in October, 1932, and
dividends reached a grand total of $1,456,452 as of the first of this year. As
sets of the bank are $21,000,000, and
that of its 240 member institutions
$300,000,000.

IO W A

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

•

The board of directors of the Chemi
cal Bank & Trust Company, New York,
declared the regular quarterly dividend
of 45 cents per share on the capital
stock of the bank, payable April 1, 1944,
to stockholders of record March 15,
1944.
The Mercantile-Commerce Bank and
Trust Company of St. Louis, Missouri,
has declared a dividend of $1.50 per
share, payable April 1, 1944, to stock
holders of record March 20, 1944.
The board of directors of Manufac
turers Trust Company declared the
regular dividend of 50 cents per share

on the common stock, payable on April
1, 1944, to stockholders of record on
March 15, 1944.
The board also declared the regular
quarterly dividend of 50 cents per
share on the preferred stock, payable
April 15, 1944, to stockholders of rec
ord on March 31, 1944.

Open New Offices
Ravenscroft & Company, Cedar Rap
ids, Iowa, investment dealer, opened
new offices in the Merchants National
Bank Building.
Glenn Ravenscroft, having formed

★

★
IM P R O V IN G
BANK O PERA TIO N S
TO MEET N E W C O N D IT IO N S

present-day bank m ethods and practices are as
m odern as those found in any progressive commer
cial or industrial enterprise. But changes continually occur.
Improvements are made. M oney-saving simplifications
are effected. Some o f the improvements originate on the
premises. Others come from visits with other bankers.
Correspondents o f The N orthern Trust Company are en
couraged to visit us here in Chicago—to observe our
m ethods—and to use freely those they wish to adopt.

Quarterly Dividends
The 185th consecutive quarterly divi
dend of The Northern Trust Company
was declared last month by the direc
tors. This dividend of $4.50 was pay
able on April 1, 1944, to stockholders
of record March 21, 1944.
At the meeting of the board of trus
tees of The New York Trust Company,
a quarterly dividend of 3% per cent
($0.871/2 per share) on the capital stock
of the company was declared payable
April 1, 1944, to stockholders of record
at the close of business on March 17,
1944.
The board of directors of The First
National Bank of Chicago, at their reg
ular meeting, declared a dividend of
$2.00 per share on the capital stock of
the bank, payable April 1, 1944, to
stockholders of record March 24th; also
a dividend of $2.00 per share payable
on July 1, 1944, to stockholders of rec
ord June 23, 1944.

NEWS

an y

Banks are invited to borrow our color sound film,
' War on Waste,” showing the economies in time,
machines and materials that have resulted from
our Suggestion Box plan.

THE NORTHERN
TRUST COMPANY
50 SOUTH LA SALLE STREET, CHICAGO 90, ILLINOIS
M em b er F ederal Deposit Insurance Corporation

★

Northwestern Banker

April 19bb

60
gT----------------------------------------------

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Lonson Coin Cabinets
sorted and counted. Banks, Financial Institutions and other businesses handling coin
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find them invaluab.e for keeping coin sorted, counted and compact for mobility.
LONSON COIN BOXES are available either with wooden dividers for loose coin, or with no dividers for use with
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Write today for complete information and prices.

Lonson m iRincTiRiiKi co. ,‘:v.u'lTz s h

T he
N e w Y o rk T rust
Co m p a n y

his own company in 1942, has been do
ing business with eastern Iowa banks
and insurance companies for some nine
years. Previously (to forming his own
company), Mr. Ravenscroft repre
sented a large national house for five
years in the same territory.
The firm specializes in municipal
bonds for bank and insurance company
investment, income from same being
exempt from all Federal taxation.

Capital Funds . $45,000,000

Approved Mortgage Plan
IOO BROADWAY
M A D IS O N AV EN U E
A N D 4 0 T H STREET

TEN
ROCKEFELLER
PLAZA

BUY
W AR
BONDS

M em ber o f the Federal Deposit Insurance Corporation

The Equitable Life Assurance So
ciety of the United States has an
nounced the approved mortgage plan
—a new idea for helping banks in
crease their earnings, extend their
service and improve their liquidity.
Under the plan, banks can supply their
customers with long term farm loans,
use their own money for the first two
years, and have a commitment from
the society to purchase the loans at the
end of the second year, or earlier at
the bank’s option.
1. The bank and society enter into
an agreement whereby the society
agrees to purchase loans approved un
der the plan, and the bank agrees to
sell and assign them without recourse
at the end of two years, but the bank
may assign the loan earlier and receive
a premium of one-sixteenth of 1 per
cent for each unexpired month.
2. The bank takes the farmer’s appli
cation for a five-year, 4 per cent loan

and requests the society to designate it
as an “approved mortgage.”
3. The society appraises the farm at
its own expense and if found satisfac
tory, approves the loan, and enters into
an extension agreement with the farm
er modifying the payments and ex
tending the term in accordance with
one of the society’s standard long-term
loan plans—10 or 15 years straight, or
20 to 40 year amortized.
4. Upon approval of the loan by the
society, an attorney approved by the
bank and the society examines the title
for the bank and instructs it as to re
quirements to be met on closing.
5. The farmer receives the executed
extension agreement from the society
when the bank closes its five-year loan.
6. The bank pays the attorney’s fee,
but is reimbursed when the loan is as
signed to the society, and is responsible
for collecting the interest maturing
during its ownership of the mortgage
and for seeing that the taxes are paid.
The bank is left free to solicit applica
tions for its own exclusive account, or
on a commission basis for the society
or other lenders.
R. I. Nowell, manager of the Equi
table Society’s farm loan service, states
that the plan is receiving enthusiastic
response from bankers. “Already,” Mr.
Nowell said, “more than fifty banks
have entered into formal agreements.
The advantages to the banker are clear
-—he can now offer his customers a
complete loan service, including mort
gage loans at 4 per cent for as long as

S carborough ^ C ompany
fl-C Æ y ú í c ^ Ñ w r / Ú ,
First National Bank Building, Chicago

Northwestern Banker

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

April 19^'t

Horace A. Smith, Iowa Representative
Des Moines, Iowa

61
40 years. There is no longer any need
for them to go to the Federal Land
Bank for their long term real estate
loans and wind up by placing their
chattel loans with the Production
Credit Association.”

Officers Promoted
The stockholders of the First Nation
al Bank of Carthage, Illinois, have
elected four members to the hoard of
directors who have served in that ca
pacity for the past several years, John
B. Johnson, William Fecht, F. J. Reu
and Albert Salisbury, and one new
member who has taken his office for
the first time, Henry Gronewold.
F. J. Reu was elected to the presi
dency of the bank, Albert Salisbury
becomes vice president, and Lloyd
Ericson was promoted from assistant
cashier to cashier. Helen Martin was
again elected as assistant cashier.

ration stock were acquired and retired
to corporation treasury. Capital stock
and surplus, it was shown, totaled
$87,115,066 at December 31, 1943, com
pared with $81,629,398 the year before.
Experienced banker wants cashiership
or will purchase controlling interest in a
bank. Address Box 807, Rochester, Min
nesota.

Banks

quietly, quickly and in a personal manner

R .J . F L Y N N ,P r e s .

D .L .D U N G A N . S e c y . ^

JAY A. WELCH
BANK BROKER
thiddam. Kansas

Since
1907

¿eò M jn \üy

Advel4ìsìnqCo.

“ 3 5 Y e a r s P r a c tic a l B a n k i n g E x p e r i e n c e ”

INC.

Y
"“

BROTHERS

O
ldestandLargestinD
esM
oines

successfully serve Iowa business *
l men to the best of our ability.

411 6th Ave.

r in t e r s

7 .

<• H ~IiMBLISHlDK

H U BE R T E. JAM ES
A sst. Sec.

FO R Y O U R E N JO Y M E N T . . .

-3

Listen to the

STATIONERS V
1889
A BOOK BINDERS
OFFICE OUTFITTERS^^^_^BUSINESS MACHINES

G rand A v e . at Fourth

Dial 4-7119

E L M E R E. M IL L E R
Pres, and Sec.

K och B rother s
, 5p

des M O I N E S

DES MOINES BUILDING-LOAN &
SAVINGS ASSOCIATION

have weathered the storm. Today,
as in past years, we will continue to

Through 4 wars and many
panics and depressions

KOCH

Transamerica Report
Audited annual report of Transamer
ica Corporation by Chairman of the
Board A. P. Giannini, shows net profit
for the corporation and all domestic
subsidiaries for the year 1943, after
provision for taxes and minority inter
est of $15,482,716.27, equivalent to $1.55
per share on 9,982,000 shares outstand
ing.
This compares with net profit of $9,161,625.12 in 1942, or 90 cents per share
on 10,090',000 shares outstanding at the
time.
During 1943, according to the report,
108,000 shares of Transamerica Corpo

Soldor Bought!

Y E S! W e Have Safe Deposit Boxes
All makes, all sizes, 100 per cent recon
ditioned. Complete with customer boxes,
guard key and customer’s key.
I f you
need safe deposit boxes check your needs
with us. Over 6,000 boxes to choose from.
W e have sold boxes to banks in nearly
one-third of the states in the entire coun
try and we will gladly give you the names
of these banks as references. Phone, wire
or write J. E. Murphy, 1800 Dyer, St. Louis
County, Missouri. Phone CHestnut 9000.

“ W O R L D OF M U SIC”
KSO, 1460 KC

De s M o in e s , I a .

9:30-10:00 a. m. Sundays

Index To Advertisers
A

A l l i e d M u t u a l C a s u a l t y C o m p a n y ...........
A m e r i c a n N a t i o n a l B a n k , St. J o s e p h . . . .
A m e r i c a n N a t i o n a l B a n k an d T r u s t
C o m p a n y , C h i c a g o ......................................
A n c h o r C a s u a l t y Co., St. P a u l ..................

33
50
24
32

B a n k e r s T r u s t C o m p a n y , D e s M o i n e s . . . 63
4
12
7
42
50
45

D a v e n p o r t , F. E. an d C o m p a n y ........... 49-58
D e L u x e C h e c k P r in t e r s , I n c ........................ 42
D e s M o in e s B u i l d i n g , L o a n an d S a v
in g s A s s o c i a t i o n .......................................... 61
D r o v e r s N a t i o n a l B a n k .................................. 56
E

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 ed eral Interm ed iate Credit B a n k s . . . .
F i n a n c i a l D e v e l o p m e n t C o m p a n y ...........
F i r s t N a t i o n a l B a n k , C h i c a g o ....................
F i r s t N a t i o n a l B a n k , M i n n e a p o l i s ...........

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

48
49
57
38

ti
II
H a m m e r m i l l P a p e r C o m p a n y .................... 21
H a w k e y e M u t u a l H a il I n s u r a n c e A ssn . 33
H o m e I n s u r a n c e C o m p a n y ...........................
5

28
26
49
51
34

M i n n e s o t a C o m m e r c i a l M e n ’ s A s s n ........... 36
M u r p h e y , J. E ..................................................... 61

IV
N a t io n a l B a n k o f W a t e r l o o .........................
N e w Y o r k T r u s t C o m p a n y ...........................
N o r t h e r n T r u s t C o m p a n y .............................
N o r t h w e s t e r n N a t i o n a l B a n k ....................
N o r t h w e s t e r n Natl. L i f e Ins. C o ...............

55
60
59
39
32

O
O m a h a N a t i o n a l B a n k .................................... 19

I o w a D e s M o in e s N a t i o n a l B a n k an d
T r u s t C o m p a n y ............................................. 64
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 . . . . . . . . 25

P h i l a d e l p h i a N a t i o n a l B a n k ......................... 23
P u b l i c N a t i o n a l B a n k an d T r u s t C o ........ 49

S c a r b o r o u g h an d C o m p a n y ................. 32-53-60
S e c u r i t y N a t i o n a l B a n k ................................. 54
S q u a r e D e a l I n s u r a n c e C o ............................ 30
S ta te A u t o m o b i l e I n s u r a n c e A s s o c i a t i o n 31
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 . . . . 44

J a m i e s o n an d C o m p a n y .................................. 37

E qu itab le L ife A ssu ra n ce Society of
the U. S................................................................

N a t i o n a l B a n k , O m a h a ......................
N a t io n a l B a n k , St. J o s e p h ................
N a t io n a l B a n k , S i o u x C i t y ................
W i s c o n s i n N a t i o n a l B a n k ................

G u a r d ia n S ta te B a n k , A llia n c e , N e b r . . . 46

€
C e n t r a l H a n o v e r B a n k an d T r u s t C o . . .
C e n t r a l N a t i o n a l B a n k an d T r u s t C o m
p a n y , D es M o i n e s ..........................................
C h a se N a t i o n a l B a n k ......................................
C it y N a t i o n a l B a n k an d Tr. Co., C h i c a g o
C it y N a t i o n a l B a n k a n d T r u s t C o m p a n y
K a n s a s C it y ....................................................
Continen tal N ational Bank, L i n c o l n . . . .

First
First
First
First

K o c h B r o t h e r s ...................................................

G e o r g e L a M o n t e an 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 iv e S t o c k N a t io n a l B a n k , C h i c a g o . . . .
L i v e S t o c k N a t i o n a l B a n k , O m a h a .........
L i v e S t o c k N a t io n a l B a n k , S i o u x C i t y . .
L o n s o n M a n u f a c t u r i n g C o .............................

3
61
58
52
40
60

M
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 . . . 30
M e r c h a n t s N a t i o n a l B a n k ...........................
2
M e r r ill L y n c h , P ie r c e , F e n n e r an d B e a n e 27
M i n n e a p o l i s M o lin e P o w e r Im p. C o ........ 36

T e n s io n E n v e l o p e C o r p o r a t i o n .................. 31
T o o t l e L a c y N a t i o n a l B a n k ..................... 46-47

U
U n io n S t o c k Y a r d s C o m p a n y ....................

W
W a n t A d .............................................................. 61
W a l t e r s , C h a r le s E ...............
51
W e l c h , J. A ............................................................ 61
W e s s l i n g S e r v i c e s .............................................. 54
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 ......... 33

Northwestern Banker

April 19'iAt

IN THE DIRECTORS' ROOM
The Works
“But, Doc,” argued the sailor, “ I’m
only here for an eye exam. I don’t
have to take off all my clothes for
that.”
“ Strip down and get in line,” shouted
the pharmacist’s mate.
The sailor obeyed, but kept on
grumbling. The chap in front of him
finally turned around and said: “What
are you kicking about? I only came
here to deliver a telegram.”
Sharp
1st: What do you do with your old
razor blades?
2nd: Since right after the war
started, I’ve been shaving with them.
GI Slang
Armored cow—Canned milk
Battery acid—Coffee
Army strawberries—Prunes
Belly robber—Mess sergeant
Army banjo—Shovel
Behavior report—Letter to your girl.
Dreamer
GI: “ Is that ice cream pure?”
Waitress: “As pure as the girl of
your dreams, Soldier.”
GI: “Give me a ham sandwich.”
Friend
Cockney Sentry: ’Alt! Who goes
there?
Voice: Shut yer blankety blank
mouth or I’ll knock yer blankety blank
head off.
Sentry: Pass, friend.
Darn It
A beautiful young lady went for a
swim in a secluded spot but forgot
to take a towel. She had a swell swim
then came out on the bank and was
allowing nature’s balmy breezes to
dry her when she heard a rustling in
some nearby bushes. “Who’s there?”
she cried in alarm.
“ It’s Willie,” answered a rather high
pitched voice.
“How old are you Willie?” asked
the girl.
The answer came quickly: “ Seventynine, darn it.”
Or
GI: “Let’s get married or some
thing.”
Girl Friend: “W e’ll get married or
nothing.”
Northwestern Banker

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

April T.944

No Help
Little Boy: “Daddy, did you ever
go to Sunday School?”
Old Non-Com: “Yes, son, regularly.”
Little Boy: “ I’ll bet it doesn’t do
me any good either.”

Faster
Grocer: Been to the zoo yet?
New delivery clerk: No, sir.
Grocer: Well, you should. You’d
get a big kick out of watching the
turtles zip by.
No Peeking
They were dancing together. The
soldier was far from home. “Do you
mind,” he asked, “ if I close my eyes?”
“Why, darling?” she asked.
“Well,” he said, “ I promised Myrtle
in Brooklyn never to look at another
girl.”
One Eye
The church service was proceeding
successfully when a woman in the
gallery got so interested she leaned
out too far and fell over the railing.
Her dress caught in a chandelier, and
she was suspended in mid-air. The
minister noticed her undignified posi
tion and thundered at the congrega
tion: “Any person who turns around
will be struck stone blind.”
A man in the front row, whose
curiosity was getting the better of him,
turned to his companion and said:
“ I’m going to risk one eye.”
Taken
At a USO dance at an advanced
base one night, a young lady noticed
a sailor wearing an unusual identifica
tion bracelet.
Taking the sailor’s
wrist, she read: “ Hands off! He’s mine
—Julie.”
Calm
Out in New Guinea a squadron ob
server went in to report to his com
manding officer after returning from a
raid.
“Were you nervous during the at
tack?” the CO asked.
“Who, me?” asked the observer, “ I
was cool as a cucumber during the
whole show.”
“ Swell,” said the CO, “ I thought you
might have been a bit nervous when
you radioed in that 27,000 enemy
bombers were coming in at 8 feet.”

H nTm m
First She: Does your husband talk
in his sleep?
Second She: No, and it’s terribly ex
asperating. He just grins.
T rust
Private: “Here, hold my gun a
minute, will you?”
Officer: “Hey, I’m a lieutenant.”
Private: “That’s all right. I’ll trust
you.”
Music Lovers
“ All men fond of music, two paces
forward,” commanded the sergeant.
When a half dozen privates had
stepped out with visions of getting free
concert tickets, the non-com added:
“ O.k., you six mugs—we’ve got a piano
to move.”
Einstein
At a particularly dull academic meet
ing a fellow guest remarked sympa
thetically to Albert Einstein: “ I’m
afraid you are terribly bored, Profes
sor Einstein.”
“ No, no,” replied Einstein, pleasant
ly, “on occasions like this I retire to
the back of my mind, and there I am
happy.”

CONVENTIONS
A pril 16-19. A B A E X E C U T I V E
C O U N C IL Spring M eeting, Stevens
H otel, C hicago
M ay 15-17, M IS S O U R I , Kansas C ity
M ay 24-26, I L L I N O I S , Palm er H ouse,
C hicago
June 6-8, A M E R IC A N I N S T I T U T E
O F B A N K IN G , Statler H otel, St.
L ouis
June 8-9, W I S C O N S IN , P fister H otel,
M ilw aukee
June 9-10, S O U T H D A K O T A , A lon zo
W ard H otel, Am erdeen
June 12-13, N O R T H D A K O T A , Fargo
June 13-14, M I N N E S O T A , St. Paul
H otel, St. Paul
Sept. 3-4, I O W A , F ort D es M oines H o
tel, Des M oines
Sept. 24-27, A M E R IC A N B A N K E R S
A S S O C I A T I O N , C hicago
O ct. 25-29, F I N A N C I A L
ADVER
T IS E R S A S S N ., E dgew ater Beach
H otel, C hicago

Iowa’s GREAT Responsibility...

PRODUCTION for VICTORY
“ More food for our fighters.” From every quarter
of the globe, comes that urgent call.
Last year, Iowa’s food production was prodigious.
In financing that production, bankers had a vital part
in Iowa’s all-out war effort.
More food is needed this year. “ More food” is the
great wartime responsibility for Iowa, agricultural
heart of America. Farmers and bankers alike share
that responsibility.
We are glad to cooperate with
Correspondent
Banks
throughout
Iowa in giving farm-customers every
possible aid in meeting today’s unpre
cedented demand for food production
. . . for Victory.

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

B A N KER S T R U S T
C O M PA N Y tzt DES MOINES
6th and
Locust

PJ/ICTORY
m

BUY
UN ITF.I>
S T A T F.S

WAR
^BONDS
AND
,STA M PS

Can W e Help You W ith
INVESTMENT PROBLEMS?
The total of United States Government securities owned by Iowa
Banks stands at an all-time high. Prudent management of investment
portfolios, therefore, is an increasingly important Bank activity.
As a large owner of Government Bonds, this Bank, through its Officers
and Directors is giving continuing study and attention to this subject.
If problems arise in your Bank regarding distribution of maturities, the
relationship of bond holdings to taxes, or other investment questions,
a discussion of such matters with one of our Officers may be helpful
to you. Your inquiry is invited.

I ow a -D es M oines N ational B ank

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

& TRUST COMPANY
M e m b e r Federal Deposit Insurance Corporation