Full text of The Northwestern Banker : April 1946, 51st Year, No. 705

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APRIL
1946

• M
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Federal Reserve Bank of St. Louis

■

Your G.l. Loan Question Box
Page 14

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JB1

THE MERCHANTS NATIONAL Bilk
CEDAR RAPIDS, IOWA
Member Federal Deposit Insurance Corporation

Northwestern Banker, published m onthly by the De Puy Publishing Com pany, at 527 Seventh Street,_ Des Moines, Iowa.
Subscription, 35c
per copy, $3.00 per year. Entered as Second Class M atter January 1, 1895, at the Post office at Des Moines, Iowa, under A c t o f March 3, 1879.

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Federal Reserve Bank of St. Louis

T h e S to r y o f a H o m e . . .

P icture this home— built in 1939 for $10,000, and
fully insured against fire. The owner paid his pre
miums promptly, his insurance agent faithfully
kept the policy in force. Yet somebody failed, for
the owner suffered a 50% loss when this home was
destroyed by fire recently!
W hy?

That’s unfortunate— bad for the insured and the
insurance agent.
Alert Home Insurance producers, therefore, are
awakening policyholders to the situation, urging
re-appraisal o f values. Backing them up, The
Home Insurance Company is doing everything
possible to show the need for added insurance to
cover today’s increased values.

Under soaring property values, many an owner
has outgrown insurance coverage that hasn’t kept
pace with increasing replacement costs. W hen fire
strikes, his insurance offers only partial protection.

* THE HOME*

The same loss pattern is intensified when a co-in
NEW

surance clause is in effect and valuation is set too
low — the actual loss increases as values increase.

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Federal Reserve Bank of St. Louis

FIRE

Y O R K

A U T O M O B IL E

MARIN E

We can help you handle the

FOREIGN BANKING
NEEDS OF YOUR CUSTOMERS
• W ith the opportunities which

trade specialists and a world-wide

now lie ahead in foreign trade,

network o f correspondent banks.

many companies are turning

W hatever your problem m ay b e—

to their banks for assistance in

the transfer o f funds, issuance o f

executing their overseas trans
actions.

letters o f credit, foreign trade infor
mation, or any other foreign bank
ing need—we can supply the assist

It isn't necessary to operate your

ance you seek.

own foreign department to handle
this business . . . with profit to your

W rite us if you are interested and

bank and satisfaction to your cus

we will explain how easy it is for

tomer. Y ou can call on the Irving,

you, with your existing facilities, to

whose Foreign Division will bring

h a n d le th is a d d itio n a l in co m e -

to you the experience o f foreign

producing business.

1 i t i i \ ( > T i :( * ) i C o m
ONE WALL STREET

• NEW YORK 15, N. Y.

Member Federal Deposit Insurance Corporation

Northwestern

Banker, Âpril,

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Federal Reserve Bank of St. Louis

1946

pany

SAFETY
“ TELL-TALES”
Railroad men have a lot of respect for a simple safety device
known as a tell-tale. This consists of a series of knotted ropes
or wires# suspended above the tracks. It is used to mark the
approaches to low-clearance tunnels and bridges — and
warns trainmen standing or walking on cars of the danger
ahead. In La Monte Safety Paper# Bankers and Business
men find another simple yet highly efficient "tell-tale". For
any attempt to alter by erasure what has been written on
this check paper shows up as a glaring white spot which
makes an altered check instantly suspect.

For Samples of La Monte Safety Paper see your Lithographer or Printer - or wrife us direct.

LA MONTE
GEORGE LA MONTE & SON

The W a v y Lines a re a La Monte Trade Mark

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Federal Reserve Bank of St. Louis

PAPER
NUTLEY, NEW JERSEY
W e su p p ly m a n y b a n k s and b u sin ess organizations
with their ow n i n d i v i d u a l l y i d e n t i f i e d S a fety P aper.
The issu in g organization's Trade-M ark is in the p a p er
itself and a p p ea rs on both the front and b a ck of the
ch eck . Such i n d i v i d u a l i z e d p a p er not on ly protects
a ga in st fraudulent alteration but p ro vid es maximum
protection a ga in st cou n terfeitin g —s a v e s Banks sort
in g tim e —h elp s p rev en t errors.

Northwest ern

Banker, April,

1946

Collection of Coupons and Bonds
Millions o f coupons and bonds are received by us
for collection each year. W hile this service is gear
ed to any volume, it is also fitted to the handling
of individual items that require special attention.
Correspondent Banks can rely upon us for prompt
and dependable service in presenting matured
coupons and bonds for payment.

BANKERS TRUST COMPANY
NEW
M E M B E R

F E D E R A L

D E P O S I T

YORK
I N S U R A N C E

C O R P O R A T I O N

A Partial List o f Bankers Trust Company Services to Banks
Collection o f Par and Non-Par
Checks
Collection o f Notes, Drafts,
Coupons, Matured Bonds and
Other Items (D om estic and
Foreign)
Transfer o f Funds, Remittances
and D om estic M on ey Orders

Servicing Loans to Brokers and
Dealers

Commercial and Travelers Letters
o f Credit

Participation with Correspondent
Banks in Loans to Local
Enterprises

Safekeeping o f Securities

Dealers in United States G overn
ment, State and M unicipal
Securities

Consultation on Pension and
Profit-Sharing Plans
Co-Paying or Exchange Agent,
Co-Transfer Agent or Registrar,
and Co-Depositary

Investment Information
Trust and Reserve Accounts

Credit Information

Receipt and Delivery o f Securities

Commercial Paper Purchases

International Trade and Foreign
Banking Facilities

J
Nort hwest ern

Banker, April,

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Federal Reserve Bank of St. Louis

7946

e 4 .&
eciw
<
,,

T O S P E E D T H E PACE OF P R O G R E S S
T L is the era o f expanded growth and opportunity. As business presses forward to
new achievements, it is the privilege o f banks to help speed the pace o f progress.
For many years, the Philadelphia N ational— Pennsylvania’s oldest and largest bank—
has cooperated with hundreds o f banks throughout the country to help commerce
and industry take advantage o f and widen their opportunities.
W e are constantly studying new ways and means to finance and serve business more
effectively. W ith resources o f over eight hundred millions we are in a position to extend
substantial credit, devoid o f unnecessary complications, to speed full production.
W e invite inquiries from other hanks

THE PH ILAD E LPH IA

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Federal Reserve Bank of St. Louis

O rganized

N ATIO N AL
1803

PHILADELPHIA
M E M B E R

F E D E R A L

D E P O S I T

BANK

PA.

I N S U R A N C E

C O R P O R A T I O N

Northwest ern

Banker, April,

1946

H O W TO B R O A D E N
Y O U R S E R V IC E TO C U S T O M E R S
For many decades the Chase National Bank has served as N ew Y ork corre
spondent for thousands o f other banks in this country and abroad, maintaining
cordial relationships with them and providing facilities which are utilized in
whole or in part by them.
Am ong these services are:
Safekeeping of securities

Issuance o f letters o f credit

Providing information concerning
investment matters

Information on credit standing of
firms and individuals

Collection of checks, drafts and
other bank documents

Participation in local loans when
desired by correspondents

Transmission o f funds abroad and
shipment o f currency

Performing a wide range o f inci
dental services

Because o f our experience in handling this business and our friendly desire to
cooperate at all times, the Chase now serves almost half o f all the banks in this
country which have named a N ew Y ork correspondent. This close association
with other banks, both large and small, in every section o f the forty-eight states,
enables these institutions as well as the Chase to broaden their own service
to customers.
You are invited to take advantage of the w orld-w ide fa cilities of the Chase

THE C H A S E N A T I O N A L B A N K
OF THE CITY OF N E W

YORK

Member Federal Deposit Insurance Corporation

N ort hwest ern

Banker, April,

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Federal Reserve Bank of St. Louis

1946

The following letters were received
from Northwestern Banker readers.
Your views and opinions on any sub
ject will be gladly published in this
column.

"An Enlightening Article"
‘ ‘ The story by your daughter, Evelyn
De Puy, ‘ What G I’s Say as They Leave for
U. S. A .,’ in the February issue of the
N orthwestern B anker is most, interesting.
“ It is an enlightening article, concise and
to the point and I am sure tells the truth.
‘ ‘ I congratulate the young lady. ’ ’
E dward M. A llen , Execu
tive Vice President, The Na
tional Surety Corporation,
New York.

"All of Us Want One"
‘ ‘ All of us here in the bank want one of
the pictures ( ‘ His First Trophy’ ) from your
March issue of the N orthwestern B anker ,
and we have a few ardent fishermen as cus
tomers.
“ We would like to have you send us 12 or
15 of these pictures. ’ ’
W . E. Y oung, Vice Presi
dent, Cosad State Bank, Cosad, Nebraska.

"Appreciate the Pictures"
“ I appreciate the nice pictures that Edi
tor Henry Haynes took at the Burlington
Group 11 meeting and they showed up very
nicely in the N orthwestern B anker .
“ With best wishes, I am”
B. A. Gronstal , President,
Council Bluffs State Bank.

"March Edition Excellent"
“ Dear Clifford:
“ Your March, 1946 edition is excellent.
Thanks for the complete and fine write-up
on our Group meetings in Sioux City and
Burlington.
‘ ‘ I was very much interested in reading
the letter from that fine son of yours.
‘ ‘ I was also interested in the new make-up
or new style of the first few pages of your
March issue, including ‘ Across the Desk
from the Publisher. ’
‘ ‘ Again thanking you for all of your fine
cooperation with our State Association, we
are with warm personal regards always, ’ ’
F rank W arner, Secretary,
Iowa Bankers Association,
Ties Moines, Iowa.

"Help Prevent Holdups"
‘ ‘ In regard to the service that we are
rendering our correspondent banks in help
ing them prevent holdup and burglary, we
(Turn to page 26, please)

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Federal Reserve Bank of St. Louis

O ldest Financial Journal West of the Mississippi

•

51st Year

•

N o. 705

IN THIS APRIL, 1946, ISSUE
ED ITO RIALS
Across the Desk from the Publisher.......................................... 10
FEATURE ARTICLES
Dear Editor ................................................................................. 9
Frontispage ..................................................................
Your G. I. Loan Question Box..................... Walter T. Robinson 14
More Money for Your Bank in FHA Title I Loans..............
...... ......................................................... Kenneth R. Wells 15
Bank Service—Heart of YourCommunity....................................16
Central States Conference Report and Pictures................. 18, 19
News and Views of the Banking World— ..... Clifford De Puy 20
About Bankers You Know—Evan Randolph........................
Can Bank Foreclose After Estate Is Administered?—Legal 24
Why the Country Banker Is Important............. Roy L. Stone 28

BONDS AND INVESTMENTS
Treasury’s Non-Inflation Policy Fails to Halt Rise.... .......
................................................. Raymond Trigger 31
What Do You Think?.................................................................. 33
INSURANCE
How to Get 25 Per Cent More Business....................................... 37
STATE BANKING NEWS
Minnesota News ..........................................................................43
Twin City News.......... ........................ E. W. Kieckhefer 45
South Dakota News......... ............................................................ 49
Sioux Falls News..........................................................................49
North Dakota News...................................................................... 51
Nebraska News ............... ...........................................................53
Omaha News ........ .................. — .... ...... ....... — ............ 55
Lincoln Locals ...................................................................... 59
Iowa News ...................................................................................61
Des Moines News....... ...........................................................66
IN THE DIRECTORS' ROOM
A Few Short Stories to Make You Laugh........................................ 70
Conventions ................................ ......................................................... -70'
NORTHWESTERN

BA N KE R .

527 Seventh S t . ,

Des Moines 9,

I ow a, Telephone 4-8163:

C L I F F O R D DE PUY, Publisher
RALPH W . M O ORHEAD
A s s o c ia t e Publisher

H E N R Y H. H A Y N E S
Edit or

BEN J. H A L L E R , JR.
A s s o c i a t e Ed it or

ELIZABETH COLE
A d ve rt is in g A s si st a nt

H A Z E L C. H A D L E Y
A u di to r

S A D I E E. W A Y
Circulation Depar tm en t

N EW Y O R K O F F I C E
Frank P. Sy m s, Vice President, 505 Fifth A v e . , Suite 1806

Telephone M U rra y Hill 2-0326

Northwestern

Banker, April,

1946

Across I lie Desk
From the I’ ulilislier
3>ea^i rU/l*i6ia*t GUuAcJull:
When you spoke in New York you paid a great
tribute to the United States by saving:
‘ ‘ Today the United States stands at the sum
mit of human affairs. From every side the na
tions look to her. She has a great measure of
power, a greater measure of world regard and
esteem.
She marches in state and majesty
which have not been seen in this world since
the fall of the ancient capital of the Roman Em
pire. With your great power are also the great
responsibilities. The world looks to you for
guidance if we are to achieve the purpose for
which so many sacrifices were made.”
Thank you, Mr. Churchill, and we do appreciate
your very flattering remarks.
But are we really measuring up to your high
esteem of us?
Have we put our “ own house in order” ?
Have we solved our labor-management prob
lems by simply granting higher wages to workers
and higher prices to producers?
Have we solved our fight against inflation?
Have we shown leadership in our foreign policy?
For three months we had no Ambassador in
Moscow at the most critical period in our Russian
relations— is that showing enlightened diplomacy
in foreign affairs?
Northwest ern

Banker, April,

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Federal Reserve Bank of St. Louis

1946

Don’t misunderstand us, Mr. Churchill, for we
do want to be worthy'of the “ great responsibil
ities which go with great power.”
We do want to be worthy of the high praise
you have given us and we have full confidence
that we can and we will, but as citizens of the
greatest nation on earth we must rededicate our
selves to the cause of democracy and freedom.
We must not be afraid to compare democracy
with communism, and express our faith and be
lief in the philosophy for which our nation stands.
Before we can really lead the world and merit
their approbation we must show that we know
how to “ live together with ourselves” in political
peace and domestic harmony.
So, Mr. Churchill, we accept your very great
and gracious accolade, knowing full well that this
is our great hour of destiny for world leadership
and that if we fail now we will have lost the high
position we have attained and with it the esteem
and friendship which other nations now accord
to us.
With the faith that has made our nation great
we promise to carry forward the banner of free
dom and fairness backed with firmness and forti
tude so that as a nation the world may say that
here is an example of leadership it may wish to
emulate because of the principles for which it
stands and we hope, Mr. Churchill, that we will
outlive the Roman Empire in years of service to
mankind.

Glabe+tce. GoAtal&i:
The organization of the “ Peoples’ Union of New
Canaan” is a step in the right direction of law
enforcement and the orderly conduct of labor
union activities.
Since New Canaan, Connecticut is managed on
a Town Meeting basis and you are its First Select
man which in most towns corresponds to the office
of Mayor we sincerely hope that your “ Peoples’
Union” plan will be followed and adopted by
other communities either smaller or larger than
yours of 7,500 population.
As we understand it the “ Peoples’ Union” was
organized because two of your local dairies were
put out of business by hoodlums and gangsters
sent up from New York City under the guise of
organized labor.
In the Resolution of February 15, 1946, and
passed by the citizens of New Canaan in a Town
Meeting it said in part:
“ WHEREAS, the right of Labor to organize
and to enforce its legitimate demands upon em
ployers by striking and picketing is recognized

by State and Federal law and such right is sup
ported by the vast majority of Americans, and
“ WHEREAS, the people of this community
wish to see preserved and strengthened the
rights which labor has won through years of
courageous struggle, and
“ WHEREAS, the events described below,
which unfortunately are typical of similar epi
sodes reported from all parts of our country,
menace the whole cause of organized labor, and
“ WHEREAS, in gross and wanton abuse of
the privileges and immunities granted by the
laws of the United States and of the State of
Connecticut, members and adherents of a nation
al labor union recently invaded the precincts of
this Town, and in an attempt to force their will
upon the proprietors and employees of two local
dairies, subjected our fellow citizens, the cus
tomers, employees, and owners of said concerns,
to physical abuse and indignities; interfered
with peaceable and legitimate attempts of our
citizens to procure milk for their children and
themselves; overturned automobiles, slashed
tires and resorted to other forms of violence,
with the result that the owners of said dairies
were obliged to close their doors and to discon
tinue their businesses, thus depriving this com
munity of needed sources of supply and means
of livelihood for our returned veterans and
others, and jeopardizing the life savings of the
proprietors of said dairies; and
“ WHEREAS, we are convinced that the
economic life of this country depends largely
upon the continuation and preservation of small
businesses, of which the two thus destroyed in
our Town are typical.
“ NOW THEREFORE, we the electors of New
Canaan in Town Meeting assembled, do hereby
demand that the Governor and the Legislature
of this State and the President and Congress
of the United States take prompt and effective
action to amend the State and Federal statutes
to impose upon organized labor the responsibil
ity that properly should accompany the priv
ileges which it enjoys, and
“ We do further call upon the citizens of this
Town and of all other communities within this
State and within the United States to organize
for the protection of their rights and liberties
and to take cognizance of the danger to Amer
ican institutions resulting from State and Fed
eral laws which extend to labor privileges and
immunities without corresponding responsibili
ties, and to join us in demanding that the equal
protection of the laws be extended alike to em
ployer and employee, to union member and non

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Federal Reserve Bank of St. Louis

union member, to persons now employed and to
returned veterans seeking employment, and to
us the plain citizens of Connecticut and of the
United States.’ ’
Since this Resolution was adopted many meet
ings have been held and the “ Principles and Pur
poses’ ’ of the Peoples’ Union of New Canaan
have been proclaimed in the statement:
“ In the firm conviction that the protection
of the interests of all the people, whether they
be organized or unorganized, employers or em
ployees, union workers or non-union workers,
should be the primary consideration in the en
actment and enforcement of all laws; and
“ In response to the resolution adopted by the
duly qualified legal voters of New Canaan at a
Town Meeting held on February 15, 1946;
“ We do hereby associate ourselves in a non
partisan organization to be known as The Peo
ples’ Union of New Canaan, the purposes of
which shall be
“ 1. To provide an effective means for pre
senting to our State Legislature and the Con
gress the views of our citizens on matters vital
to the public interest to the end that
a. the rights of the people shall be preserved
at all times against violation by any or
ganization, group, or individual,
b. no one shall enjoy privileges and immu
nities without assuming corresponding re
sponsibilities, and
c. the use of force and intimidation as a
means for imposing any demand shall be
effectively outlawed.
“ 2. To urge and encourage the formation of
Peoples’ Unions in other communities to join
with us in carrying out these purposes.”
The dues are $1.00 per year and membership is
open to all residents of New Canaan “ regardless
of party affiliation.”
The By-Laws provide for the election of officers
and committees to carry out the functions and
purposes of the Peoples’ Union.
We congratulate you, Mr. Costales, and all your
progressive citizens on your Peoples’ Union which
will represent all the people and fight for the
rights and privileges which we assumed you and
every other community in the nation already had
vouchsafed 3-on by the Constitution of the United
States.

Northwest ern

Banker, April,

7946

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Federal Reserve Bank of St. Louis

Friendly and Complete

(not competition)
is the basis upon which our

was founded-and is operated.

NATIONAL BANK & TRUST COMPANY
Des M oines, Iowa
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis

Northwestern

Banker, April,

1946

Y o u r (f. f. L o o n

tto x

Is there any restriction on the use of the money borrowed?
Are there any charges for guaranteeing or insuring a loan?
By W ALTER T. ROBINSON,
Iowa Loan Guarantee Officer, who
answers the things you want to
know about the Servicemen's Read
justment Act
Q.
Whose obligations may be guar BUSINESSES—For the purpose of
anteed or insured under the Service engaging in business or pursuing a
men’s Readjustment Act of 1944, as gainful occupation, including the cost
amended?
of acquiring for such purpose, land,

(a) Any person who was in the ac
tive military or naval service of the
United States on or after September
16, 1940, and was discharged therefrom
under conditions other than dishonor
able after 90 days of active service, or
because of injury or disability incurred
in line of duty; (b) also any person
eligible as above except for being at
the time of application on terminal
leave or hospitalized pending dis
charge; (c) also any person eligible as
above except that the service was in
the active military or naval service of
any government allied with the United
States in World War II, provided that
at the time of entrance into such active
service, the person was a citizen of the
United States and at the time of appli
cation for guaranty or insurance is a
resident of the United States and has
not applied for and received similar
benefits from the government in whose
service he served.
Q. Is there any restriction on the
use of the money borrowed?

Yes, to some extent, but the proceeds
may be used for the purchase of
homes, and for all ordinary business
and farming purposes. The following
purposes are included:
HOMES — Purchasing residential
property or constructing a dwelling for
the veteran, or for repairs, alterations,
or improvements to property owned
by him and used as his home.
FARMS—For lands, buildings, live
stock, equipment, machinery, supplies
or implements, or for repairing, alter
ing, constructing or improving land,
equipment, or buildings, including the
farm house, to be used in farming
operations conducted by the veteran
or for working capital necessary for
such operations, or the purchase of
stock in cooperative associations where
the purchase of such stock is required
by Federal Statutes.
Northwesf ern

Banker, April,

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Federal Reserve Bank of St. Louis

1946

supplies, buildings, equipment, ma
chinery, tools, inventory, stock in
trade, or for the cost of construction,

does a veteran get from the guaranty
or insurance?

The guaranty provides security or
increases the security a veteran can
offer for a loan by the amount of the
guaranty and tends to induce the lend
er to lend more nearly the full pur
chase price of property and to give a
better interest rate than he would
allow otherwise. Four per cent of the
amount guaranteed or credited to the
lender’s insurance account is paid to
the lender as a gift to the veteran for
credit on the principal of the loan.

Q- Are there any charges for guar
anteeing or insuring a loan?
No, and commission, brokerage or
similar charges may not legally be
made against the veteran for securing
a guaranteed loan. Of course, custom
ary out-of-pocket fees usually borne by
the borrower, such as appraisal, title
examination fees and other costs and
expenses incident thereto, may be
charged against the veteran by the
lender, the same as against all bor
rowers.
W A L T E R T . R O B IN S O N
A nswers Y our Q uestions

repair, alteration or improvement of
any realty or personalty for such pur
pose or for working capital.
REFINANCING H O M E , FARM
AND BUSINESS DELINQUENT IN
DEBTEDNESS—Loans may also be
guaranteed or insured, under certain
conditions, if the proceeds are to be
used to refinance indebtedness of the
veteran delinquent or in default, pro
vided it is secured by a lien on the
property used or occupied by him as
a home or for farming purposes or
was incurred in the pursuit of an occu
pation which he is pursuing or pro
poses to pursue in good faith, or is for
delinquent taxes or assessments on
such property or business.
Q. If the Veterans Administration
cannot make the loans for homes,
farms and businesses, what benefit

Q. May several veterans use the
guaranty to acquire property jointly?

Yes, but the total amount guaranteed
may not exceed 50 per cent, except a
loan second to one made, guaranteed
or insured by a Federal agency.
Q. Can a guaranty be obtained if the
proceeds are to be used by a minor or
a person under legal disability?

Yes. This can be done if the loan
and liens are valid under the state law
governing the transaction.
Q. May widows or children of de
ceased veterans secure guaranty of a
loan?

No. The privilege is limited to vet
erans themselves. A guaranty on a
(Turn to page 34, please)

M o r e M oneti for Y our Hun fi
in FH A Title # Loans
If You Want More Good FHA Business, You
Must Make It Easy for Good Dealers
To Do Business With Your Bank

ANY banks now active in what
we today call “Consumer Cred
it” were initiated into the in
stalment financing business when they
made their first FHA Title I home
repair loan some ten or twelve years
ago. Therefore FHA is not new—
what is new about FHA is that com
petition for the paper has increased
and the tempo of the business has
speeded up. Many bankers are under
the impression that FHA volume,
along with automobile and appliance
volume, disappeared when the war
started. Such is not the case.
FHA Title I is that section of the
Federal Housing Act relating to the
financing of home repairs and improve
ments and, in common with all phases
of FHA. it contains provisions for a
guarantee to lenders against credit
losses. This guarantee amounts to 10
per cent, based on the volume of
business handled. The more business
you do the greater is the amount of
your insurance reserve. The business
is safe for a bank to handle and should
also be profitable, as the gross return
is more than 8 per cent. Based on the
experience of my own bank, your han
dling costs should be about one-half
of the gross income so that you should
net about 4 per cent simple interest.
I think you will agree that 4 per cent
net is a very good yield in these days
of low interest rates.

Potential Business A vailable
You may wonder just how much
potential business is available. To
answer that question I am going to
ask you a question. What are you
planning to do to your own home?
Perhaps I should say, “What does your
wife plan to have done?” Think of
the painting and decorating required,
as well as such items as furnaces,
stokers, oil and gas burners, insula
tion, storm windows, additional rooms,
front porches, side porches and back
porches, added bathrooms, play rooms
and garages. The list is practically

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Federal Reserve Bank of St. Louis

By KENNETH R. W ELLS
Assistant Vice President
American National Bank
and Trust Company
Chicago
“ T he

endless. What is true of your home
is true of nearly every home in this
country.
You hear a lot of talk about new
housing, and undoubtedly a large num
ber of new homes will be built, but
most people are not going to move
into new houses within four or five
years and burn the old ones down.
Most people are going to keep on liv
ing in their present houses and they
will have to spend money to remodel
and maintain them. Much of this
money will be borrowed under FHA
Title I.

K E N N E T H R. W E L L S
sm allest banks can get $3,000 to $4,000
extra incom e per year”

you instead of with some other credit
agency.
How Does a Bank Get the Business?

How, then, can your bank get some
of this business? First of all you
must decide whether you really want
the business and, if you do, you must
change the thinking in your own or
ganization. Everyone must under
stand that you not only want the busi
ness, but that you intend to get it.
You must prepare convenient forms
for the dealer, such as rate charts and
Who Creates the Business?
application blanks, and you must train
Now we come to the $64 question. the people in your organization so that
If a bank wants some of this desirable they can answer the dealers’ questions
business, what does it have to do to and make prompt credit decisions
get it? First of all, you have to know when the dealer does call.
Assuming that you have done all of
where the business is. Most of this
paper originates with dealers and con this, you are now ready to go out to
tractors in the home repair and re your first dealer prospect and say,
modeling field. Basically, people do. “We want some of your FHA busi
not borrow money and then buy some ness. We are prepared to give you
thing; instead they buy something and service equal to or better than you
then figure out how they are going now have. We are a local institution
to pay for it. The dealer, if he has —your customers are also our custom
been trained to use the FHA plan, ers and in the long run, they will be
quotes convenient monthly payments better served through us than through
at the time that he quotes the cash any outside agency. All we ask is that
price of the job. Most of his custom you try us out because we know we
ers accept the FHA plan; therefore, it can deliver the services you need.”
I used the word “ service,” as this
is the dealer who creates the paper.
But do not think for a minute that all particularly applies to the passing of
you have to do is to go out and an credits. When a dealer sells a job
nounce to the dealer that you want his he wants to know promptly whether
FHA paper. This is a very desirable the credit of the purchaser is satis
type of paper and many people are factory. It is normal practice to make
competing for it. What you have to this decision in two hours or less. You
do is to figure out some way to make must be prepared to make prompt and
the dealer want to do business with
(Turn to page 41, please)
Northwest ern

Banker, April,

1946

tin ni» Si>rritv> —
MM*f*#iM*t «/' Y o n I*
# V#### ####### #7 # /

The Growth of your Town is Directly
Related to the Service Your Bank Offers

COMMUNITY prospers only in
direct proportion to the banking
facilities made available to it to
finance worthy enterprises. This is
the opinion of A. R. Olson, vice presi
dent of the First National Bank of
Beresford, South Dakota. As evidence
of Mr. Olson’s contention, the growth
of the First National has paralleled
the growth of industry in Beresford
from the depths of the depression
when the bank’s deposits were $392,000, to the present when they stand
at $2,715,452.
Two industrial firms are pictured on
these pages, and among others is the
Reed Sales Company, wholesale gro
cers—good customers of the First Na
tional Bank, and which operates sev
eral trucks servicing Beresford and
many surrounding towns. Any kind

ARTHUR R. OLSON, above, vice
president of the First National Bank
of Beresford, South Dakota, first be
came associated with the institution
in 1918, and was elected vice presi
dent in 1931. Although his residence
is in Sioux Falls, he is on the job
in Beresford bright and early every
morning.

THE MODERN STRUCTURE above, with Mr. Olson standing at the doorway,
is the present home of the First National Bank of Beresford. In its early days,
the First National Bank was located in the smaller building at the right. The
bank moved into the larger building upon its completion in May, 1935. Deposits
of the First National Bank now approach $3,000,000.
Nort hwest ern

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Federal Reserve Bank of St. Louis

1946

of business, whether it is industrial or
agricultural, finds the type of service
it needs in this bank for here they get
the personalized service advocated by
Mr. Olson, which he says helps them
both grow.
The First National Bank was first
chartered in 1916 as a state institution,
known then as the American State
Bank, and changed over to a national
bank in September, 1922. Mr. Olson
became associated with the institution
in 1918. He began as what he calls
a “flunky,” and ten years later, in 1928,
became cashier. In 1931 he was elected
vice president and has been in active
charge of the bank since 1930.
Following a fire which destroyed its
original building, the First National
built the smaller building just north
of its present location. Then in May,
1935, its present offices were completed.
The lobby extends upward for two
stories, with high vaulted ceiling, and
a balcony at the rear in which is lo
cated the directors’ room. A large
room in the basement has been fitted
up as a meeting place for smaller civic
groups in the community, with facili
ties for lunches and other refresh
ments.
With his many other duties, Mr.
Olson has acted as chairman of bond
drives in Union County, South Dakota,
during which time more than a half
million dollars in government bonds
were sold in the county.
Present officers of the First National
Bank of Beresford are: J. J. DeLay,
president, who is also president of the
DeLay National Bank of Norfolk, Ne
braska; Mr. Olson, vice president; T. A.
Peterson, cashier; Sophia Muhlenkort
and Jeanette Bjorneberg. assistant
cashiers. The first three officers named,
together with John O. Stene and S.
O. Steensland, are the directors of
the institution. # #

THESE THREE DIRECTORS, together
with J. J. DeLay and John O. Stene, for
mulate the policies of the First National
Bank of Beresford. From left to right
those pictured are T. A. Peterson, cashier;
Mr. Olson; and S. O. Steensland. Mr.
Steensland became a director in 1917, has
lived in Beresford 50 years, and is 83
years old.

A BERESFORD INDUSTRY serving
farmers of the Northwest is Carlson & Sons,
manufacturing the Carlson Power Driven
Grain Binder Attachment, a device which
permits porver take-off for binders not orig
inally so equipped. Virgil Carlson, a son of
the founder, demonstrates to Mr. Olson the
operation of a lathe used in the manufac
ture of the product. The First National
Bank, as the banking connection of Carl
son & Sons, has helped to contribute to the
success of this busy Beresford industry.

A. 240-ACRE FARM is one of the agri
cultural projects owned by Mr. Olson, lo
cated a few miles west of Beresford. When
the picture at the left was taken there
were 64 head of steers in the feedlot. Other
livestock on this farm includes 20 dairy
cows and 23 calves. The dairy herd con
sists of purebred Brown Swiss.

THE CREAMERY BUSINESS is an
other outstanding industry in Beresford,
and thousands o f pounds of butter per
year are shipped from this point. At the
right G. A. Lee, owner and manager of
the Beresford Creamery & Produce Com
pany, explains to Mr. Olson the processes
of the large pasteurizer filled to the brim
with pure South Dakota cream.
The
Beresford Creamery & Produce Company
also operates a cold storage plant in con
nection with the creamery, in which is lo
cated 400 lockers for the benefit of local
and rural customers.

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Federal Reserve Bank of St. Louis

Northwest ern

Banker, April,

1946

Central States Conference
A flits Tiro l n its at A nnual Aieetinij
States of Colorado and Kentucky Admitted to
Membership, Making Total of Sixteen States in Group
UGENE P. GUM, secretary of the

Oklahoma Bankers Association,
was elected president of the Cen
tral States Conference at the annual
meeting of the organization last month
in Chicago. Mr. Gum was advanced
from the post of first vice president,
and succeeds to the office held for the
past year by Frank Warner, secretary
of the Iowa Association.
Wall G. Coapmah, secretary of the
Wisconsin Association, formerly sec
ond vice president, was named first
vice president; David M. Auch, Ohio
Association secretary, and secretary
and treasurer of the Conference, was
elected second vice president. New
comer to the official family of the
Conference is Robert E. Eee Hill,
secretary of the Missouri Bankers As
sociation, who was chosen secretary
and treasurer.
The Central States Conference, until
this annual meeting composed of secre
taries and other officers of 14 central
western State Bankers Associations,
now has two more states added to
its roster, making a total of 16. Colo
rado, with J. C. Scarboro of Denver
as its secretary, and Kentucky with
Secretary Ralph Fontaine, Louisville,
were inducted into the Conference at
the Chicago meeting. Fred Bowman,

A. 1

secretary of the Kansas Bankers Asso
ciation, sponsored the induction of
Colorado, and Harry Hausman, Illinois
secretary, extolled the virtues of Ken
tucky.
Including the new states admitted
to membership, 15 states were repre
sented at the conference meeting, Mis
souri being the only state not present
with a delegate. Matters of legislative
importance prevented the Missouri
attendance. Forty-six members were
registered — eight banking commis
sioners from as many states were in
attendance, and a number of repre
sentatives from the FDIC. ABA offi
cials present included Frank C. Rath je,
president of the American Bankers
Association, whose home is in Chicago;
William T. Wilson, deputy manager
of ABA; and Robert Kneebone. Total
registration at the Conference ap
proached 100.
Problems of almost every phase of
banking were discussed at the Con
ference, some of which were consumer
credit, retirement and pension plans,
group insurance, public relations with
special reference to spot radio adver
tising, service to war veterans, new
regulations on G. I. loans, the Central
States school of banking, bank protec

C en tra l S ta les

Bankers from sixteen central western states came to Chicago
last month to attend the Central States Conference meeting. A
number of those there are pictured on the opposite page. Bead
ing from left to right they are:
1. F. L. Sawyers, president of the Centerville National Bank,
Centerville, Iowa, and president o f the Iowa Bankers Associa
tion; V. W. Johnson, president of the First National Bank, Cedar
Falls, Iowa, and a director of the Federal Beserve Bank of
Chicago; and Frank Warner, secretary of the Iowa Bankers
Association, Des Moines, who this year presided as president of
the Conference.
2. Harry C. Hausman, Chicago, secretary of the Illinois
Bankers Association, who does such a grand job to insure the
comfort and pleasure of those attending the Conference when
Chicago is the host city; E. F. Buckley, president of the Central
National Bank, Des Moines, and chairman of the public relations
and educational committee of the Iowa Bankers Association;
and Williapi H. Miller, vice president of the City National
Bank, Chicago, who welcomed the Conference members to the
city.
■ A,
3. C. C. Wattam, Fargo, secretary of the North Dakota
Bankers Association, who led a discussion on group insurance
at one of the Conference sessions; A. C. Idsvoog, president of
the Grafton National Bank, and president of the North Dakota
Bankers Association; and C. W. Burges, cashier Security Na
Northwest ern

Banker, April,

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Federal Reserve Bank of St. Louis

1946

tion, soil conservation, and wage and
salary stabilization.
As president of the Central States
Conference this year, and in charge
of the program, Frank Warner had
prepared for each state charts show
ing the radio coverage possible from
existing radio stations located therein.
The charts were most comprehensive
and instructive, and were introduced
into the meeting with the thought that
eventually the Conference might wish
to sponsor radio spot broadcast as a
unit of 16 states, instead of separately
as several states are now doing.
Frank Warner announces comple
tion of the articles of organization for
the conference’s school of banking at
the University of Wisconsin with
unanimous approval by the 11 sponsor
ing state bankers associations.
Harry C. Hausman has been ap
pointed chairman of the board of trus
tees, which is composed of the secre
taries of the endorsing states, the dean
of the School of Commerce of the Uni
versity of Wisconsin, the director and
the registrar of the School of Banking
and the chairman and vice chairman
of the advisory council. The advisory
council will be composed of bankers in
the central states whose names are to
be submitted to Mr. Hausman.

Confin
tional Bank, Edgeley, North Dakota, and vice president of that
Association.
4. V. E. Dolpher, president First National Bank, David City,
Nebraska, and president of the Nebraska Bankers Association;
Glen T. Gibson, president Exchange Bank, Gibbon, Nebraska,
and vice president of the Nebraska Association; and Carl G.
Swanson, Omaha, Nebraska Association secretary, who spoke
on the panel discussion of group insurance.
5. George M. Starring, Huron, secretary of the South Dakota
Bankers Association, who has recently returned to his desk
after three years in the Service; L. C. Foreman, president Corn
Exchange Bank, Elkton, South Dakota, and vice president of
the South Dakota Association; Lois J. Halvorsen, assistant secre
tary for South Dakota, and who was acting secretary of the
South Dakota Association during the absence of Mr. Starring;
and C. O. Gorder, vice president and manager Deadwood branch
of the First National Bank of the Black Hills, and president of
the South Dakota Bankers Association.
6. Wilbur F. McLean, vice president Minnesota National
Bank, Duluth, and past president of the Minnesota Bankers
Association; and William Duncan, Jr., Minneapolis, secretary
of the Minnesota Bankers Association, who led the discussion
on retirement and pension plans for banks at one of the Con
ference sessions.

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Federal Reserve Bank of St. Louis

X o irs a n d V ie n s
OF TH E BANKING WORLD
By Clifford De Puy

PLAY, like a book, can best be
appreciated after it has had its
second or third year of success.
So in Chicago we went to see “Anna
Lucasta” after it had already appeared
for two years on Broadway. It is a
great play with the original colored
cast which made it famous. Don’t miss
it if you have a chance and want to
enjoy an evening of real entertain
ment. Hilda Simms who plays “Anna”
was born in Minneapolis and attended
the University of Minnesota and she
is beautiful and talented.

About 25 years ago M. C. Reiner,
president of Remer, Mitchell and Reitzel, Inc. Investment Securities, 208
South La Salle Street, Chicago, was in
the Bond Department of the old Conti
nental Bank. He remained there for
seven years and then organized his
present firm 18 years ago and which
specializes in Lumber Bonds and Real
Estate Bonds, as well as other securi
ties. Many banks and insurance com
panies are numbered among the firm’s
clientele.
When the G. I. Taxi Drivers of Chi
cago drove to Washington, D. C., 275 of
them returned and received their “taxi
licenses” which the City Council had
previously denied them so now there

are 3,275 taxis operating in the Windy
City.
“Whatever happens do not lose hold
on the two main ropes of life, Hope
and Faith,” so says Carders, the Dun

can Hines restaurant in Chicago.

“No American Shall Die for Churchill”
—“The English People Kicked Chur
chill Out”—“America Should Reject
Him Too”—and similar statements.

When in Stamford, Connecticut we
found the Yale and Towne Lock Co.
still “locked up” by a strike which had
cost the union members over $3,000,000
in wages. Such stubbornness must
indicate a Harvard man in the CIO.

As to Mr. Churchill’s “unpopularity,”
there were 2,000 at the Waldorf ban
quet and 10,000 more made application
for tickets at $15 a plate or $150,000, but could not get in. He is still
one of the great men “of our time.”

W. Sargeant Nixon, cashier of the
Freeport Bank, Long Island, furnished
daily concerts in his bank for four
years and then recently discontinued
them, but the “popular demand” to
have them resumed was so great the
concerts have been continued. Per
haps “music with the overdrafts” or
“solos with your securities” gives a
Beethoven touch to banking.

Samuel Webster, whose father mar
ried Mark Twain’s niece, spoke at the
New Canaan, Connecticut, library on
his new book “Mark Twain Business
Man.”
Mark Twain was born in
Florida (not Hannibal), Missouri, and
died in 1910 in Redding, Connecticut.
After telling of his many foolish in
vestments in which Mark Twain lost
$30,000 on one deal and $400,000 on
another, Mr. Webster said Alexander
Graham Bell pleaded with him to put
$500 in his new company to help pro
mote the Bell Telephone. Mr. Bell
said, “ I will give you a hat full of
stock if you will just put in $500,” but
Mark Twain thought the idea crazy
and that it wouldn’t work, and so
passed up the one investment which
would have made him many times a
millionaire.

While in New York we welcomed
Ensign Emerson De Puy back to the

“ States,” after a month’s trip return
ing from Japan on the U.S.S. Admiral
R. E. Coontz. On the way he stopped
at Okinawa, Hawaii, Panama and
Puerto Rico. After a short leave he
will be assigned to further duty in the
Atlantic.

F e d e r a lÊÊinne F ea n OSSie.ials M e e t

OVER 100 OFFICERS AND DIRECTORS of the 12 member banks of the
Federal Home Loan Bank of Des Moines gathered in Des Moines last
month for a one day meeting. President Robert Richardson, who was
host at the noon dinner, is shown above visiting with three guests. Left
to right, President Richardson; Robert E. Lee Hill, chairman of the board
of directors of the Federal Home Loan Bank and secretary of the Missouri
Bankers Association; Iow a’s Governor Robert D. Blue, and John Adams,
secretary of the Des Moines Chamber of Commerce.
Northwest ern

Banker, April,

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Federal Reserve Bank of St. Louis

1946

We saw the Communist pickets
carrying banners around the WaldorfAstoria the night Winston Churchill
made his speech. The banners said,

Went out to La Guardia Airfield to
see some friends of ours off to Ber
muda via the Pan American Air Lines,
which flies them over in 3% hours.
Had lunch afterwards at the Aviation
Terrace Restaurant which is operated
by the Hotel New Yorker. Was sur
prised to learn that the airport ground
is sinking a few inches each year as
it is all “filled-in” or “ made ground”
and the buildings need constant rein
forcements.
On a Saturday afternoon we heard
the Boston Symphony Orchestra at
Carnegie Hall under the direction of
Serge Koussevitzky. Incidentally the
late Henry Lee Higginson, investment
banker, founded the orchestra in 1881.
The program consisted of selections
from BACH, HANSON, SIBELIUS
and KABALEVSKY.
Howard Hanson was born of Swed
ish parents, Hans and Hilma Hanson,
(Turn to page 23, please)

The Omaha
National Bank
Member

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Federal Reserve Bank of St. Louis

Federal

Deposi t

Insurance

Corporati on
Northwest ern

Banker, April,

1946

CHECKS ON
HAMMERMILL PAPER, EH ?
THAT’S A PAPER
■
“ "T

I KN OW !

K V

.. ■

YOUR CUSTOMER RESPECTS

The Best-Known Name in Paper!
YOUR CUSTOMERS know the name “ Hammer-

give you . . . a step in good public relations.

mill.” They have used Hammermill paper in

W e’d like you to know Hammermill Safety

their own business. They have seen it ad

paper better. A note on your bank letterhead

vertised in their magazines for more than 30

will bring a sample book. Just address Safety

years. The Hammermill name in safety paper

Paper Division, Hammermill Paper Com

is a plus value that no other paper can

pany, 1513 East Lake Road, Erie, Pa.

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Federal Reserve Bank of St. Louis

A b itu i H a n k ers You tin n ir

at Wahoo, Nebraska. First taught by
his mother, he continued his studies in
Luther College and the University
School of Music of his native state.
He studied composition at the Insti
tute of Musical Art in New York with
Percy Goetschius, and later at the
Northwestern University School of
Music at Evanston.
On the front cover of the Park Ave
nue Social Review we noticed the pic
ture of a very beautiful and attractive
young lady and on an inside page it
said: “Miss Tlierese Murray, whose
engagement to Walter J. Cummings,
Jr., was recently announced by her
parents, Mr. and Mrs. Joseph Bradley
Murray of 11 East 90th Street. The
bridegroom-to-be, now on the staff of
the Solicitor General in Washington,
is the son of Mr. and Mrs. Walter J.
Cummings of Chicago. The wedding
will be one of June’s social highlights.”
Walter J. Cummings is chairman of the
Board of Directors of the Continental
Illinois National Bank and Trust Co.
-of Chicago.
At the Harvard Club we had cock
tails with our cousin, Donald H. Clif
ford, who is a member of the adver
tising agency, Doherty, Clifford and
Shenfield, with offices in the Empire
Building.
Since Walter “Windbag” announced
a proposed merger of three New York
banks but didn’t name the three, there
has been much speculation as to which
banks might be involved. One list in
cluded the Manufacturers Trust, the
New York Trust and J. P. Morgan &
Co. Another list included other banks
but an officer of the Chemical Bank
and Trust was willing to “bet us” that
his bank would not be in any such
amalgamation.
The Cotillion Room in the Hotel
Pierre, Fifth Avenue at 61st Street, is
a very delightful place to dine and
dance, and for entertainment they
have Gali-Gali “Amazing Magic Maker”
and Ellsworth and Fairchild in
“ Streamlined Ballet.”
Governor Thomas E. Dewey has
signed bills cutting the state personal
income tax to 50 per cent of normal
rates and also reducing business levies.
Wage earners and business will save
■$122,000,000. This is the largest re
duction in the state’s history and was
urged by the Governor to ease the load
of the individual taxpayer and encour
age business expansion. Shades of
Tammany Hall and the Franklin De
ficit theory of “tax and spend” and
(Turn to page 68, please)

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Federal Reserve Bank of St. Louis

EVAN RANDOLPH
President, Philadelphia National Bank
“ Outstandingly human . . . fine sense of humor’ ’

N E of America s best known banks is the Philadelphia National Bank ,
which is the largest and oldest bank in the state of Pennsylvania.
Organized in 1803, deposits of this stalwart financial institution are well in
excess of 800 million dollars.

A t the head of this great banking firm is one of the most capable and also
one of the most human bank presidents, Evan Randolph.
President Randolph was born in Philadelphia in 1880, and has spent his
entire life in the “ city of brotherly love,” with the exception of the years at
the turn of the century when he attended Harvard and received his A .B .
Degree from that noted university.
Mr. Randolph became a vice president and director of the Girard National
Bank in 1914. He served in that capacity until 1926 and was vice president
and director of the Philadelphia-Girard National Bank until 1928. H e then
became vice president and director of the Philadelphia National Bank from
1928 to 1941.
Since 1941 he has been president and a director of the Philadelphia Na
tional Bank.
Mr. Randolph was married to H ope Carson in 1906 and they have five
children, including Mrs. W m . P. Hacker, Evan Randolph, Jr., Hampton Carson Randolph, Mrs. J. Arthur Doucette, and David Story Randolph.
(Turn to page 42, please)
Northwest ern

Banker, April,

1946

LEGAL

ttank F oreclose A fter
E state is A dm in isten>d?
(V i m

. A bank in Nebraska furnished
$4,500 to the executor of an estate and
was given by the executor, as security,
a valid and legal mortgage on a farm
that was part of the estate. Later the
executor settled the estate and was
duly discharged. Still later default was
made on the payments due on the
mortgage and the bank sought to fore
close. Could it do so even though the
estate had been administered?

Yes. The fact that an estate has been
administered, final decree entered, and
the property assigned and distributed
to the heirs at law, and the executor
discharged, did not bar or defeat the
foreclosure action. The trust of an
executor is an enduring one, and a de
cree upon final accounting only dis
charges him from liability for the past.

A grass widow caused the father
of three minor children to leave them,
their home, and their mother and to
refuse to maintain and support them.
The children, through appropriate rep
resentatives, sued her in the federal
couid, which had jurisdiction, for
alienation of affections. The circum
stances were such that there were no
state or other laws involved which
would prevent or nullify recovery. Did
the children have a right of action?

Yes, according to a recent federal
appeals court decision. In so holding,
the court made new law through the
application of common law principles
to a new fact situation that arose. The
decision is a milestone in the develop
ment of the law.

An Iowa banker was appointed
executor in Iowa under the will of an
Iowa decedent whose property con
sisted of personalty and realty in Iowa,
which was left to Jones, and realty in
South Dakota, which was left to Howkshaw. At the time certain taxes were
due on the South Dakota realty but
the will was silent regarding their
payment and no special benefit would
accrue to the Iowa estate to utilize the
Nort hwest ern Banker, April,

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

1946

This and Other Timely Legal
Questions Are Answered
by the
LEGAL DEPARTMENT

decedent’s personal property to pay
them. Should the executor do so?

No. An Iowa executor has no juris
diction to administer upon realty in
South Dakota owned by the testator
at the time of his death, and, hence,
he should not be required to pay taxes
due on the land from personalty of the
estate that he is administering in Iowa
unless the will particularly directs
such payment, or unless upon proper
showing it is found to be for the best
interests of the Iowa estate to have
such payments made.

Suppose that, in the preceding
question, the will had contained a
provision that the testator’s debts
should be paid by the executor out of
the estate. Would that change the
answer to the question?

No, according to a recent Iowa Su
preme Court decision. In so holding
the court pointed out that the tax on
the South Dakota realty was a charge
upon the property and was not a per
sonal obligation of the decedent and
also that, since the decedent was not
a resident of South Dakota, he had
not incurred any personal liability for
taxes on his real property there. By
reason of these features, the court
decided that taxes are not debts in
the ordinary meaning of the word and
that the Iowa executor should not be
required to pay them from Iowa per
sonalty.

A rather elderly woman was em
ployed by Lamberton, a Minnesota
banker, to work around and make
herself useful at his house. One of
her daily duties was to take the family
dog for a walk. She was permitted to
make her own selection of the route
to be taken and knew the condition

of the routes used by her. One winter
day, while so employed, she slipped
and fell on the street, which was icy,
and injured herself. She sued Lam
berton for damages, claiming her in
juries were due to his negligence.
Should she prevail?

No. In an analogous case the Min
nesota Supreme Court held recently
that the situation under which the
injuries occurred created no actionable
negligence. The court, in so holding,
said that the defendant obviously had
nothing to do with the condition of
the streets at the time of the accident
and that it could find no peg upon
which to hang liability.

An Iowa trust company was ap
pointed executor of the estate of Klinesmith, a decedent. There were eleven
beneficiaries of the estate, two of them
being Brown and Black. Before the
estate was closed Brown assigned all
of his interest therein to Black. When
the executor went to wind up the
estate no notice of the filing of and
hearing on its final report was given
to Brown? Was such notice necessary?

No. A beneficiary under a will who
has assigned all of his interest in a
testator’s estate to another beneficiary
prior to the closing of the estate is
not entitled to notice of the filing of
and the hearing on the executor’s final
report in Iowa. The statutes of that
state provide that such notices shall
be given to persons “interested” and,
since Brown had divested himself of
all interest, no notice to him was nec
essary.
Q . A tradesman became involved
with the Office of Price Administration
because of certain questionable deals
made by him. As an incident thereto
the Price Administrator sought to sub
poena the national bank with which
he did business to produce his bank
account records. Could this be done?

Yes. The Price Administrator has
the power to subpoena a national bank

the heart of a bank
is the proof department
The smooth flow o f business in any bank, large or

compulsory. N o o th e r m a ch in e has this fe a tu re.

small, is entirely dependent on the proof de

I f a mistake has been made in listing or in addition,

partment.

the operator merely has to press the error key and

An efficient proof department means an efficient
bank. An inadequate proof system means errors

the amount o f the error is automatically printed
on the master tape and the correction is made.

and loss o f prestige among customers.
W ith the National P roof machine, you can be
sure o f a smoothly operating proof department.

THERE'S A NATIONAL FOR EVERY BANK AND EVERY BANKING JOB

W hy not take up your problems with the

This machine gives positive proof o f every credit

National representative . . . he’ll demonstrate the

recorded and provides centralized control over all

many time-and-money-saving National machines

departments. It handles incoming mail, counter

that can help you in every department o f your

transactions, and incoming clearings.

bank. Call your local National representative,

The National P roof machine is equipped with
an automatic locking device which makes accuracy

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

today, or write the National Cash Register Com
pany, Dayton 9, Ohio.

Q /fU tU m cU
CASH REGISTERS
•
ADDING MACHINES
ACCOUN TIN G-BO OKKEEPING MACHINES

Northwest ern

Banker, April,

1946

26
and its cashier to produce the com
mercial and personal bank account
records of its depositors. Without such
investigatory powers, the Administra
tor cannot promulgate rational orders
and regulations nor apprehend viola
tions thereof. The federal statute
granting him these powers is inclusive
and all embracing.

Morton, an Iowa banker, left, by
will, part of his property to bis wife
for life and provided, as to such part,
that she should have the power to
designate how it should be disposed
of at her death. His wife sought to
treat with the property left with her

as though she owned it in fee. Could
she do so?

No. In Iowa a life estate, expressly
created by will, will not be converted
into a fee, absolute or qualified, or into
any other estate greater than a life
estate, merely by reason of there being
coupled with it a power of disposition,
however general or extensive.

Q. A North Dakota manufacturer
entered into an agreement with Jordan
whereby he was to use his personal
and political influence to secure the
acceptance of a bid made by the manu
facturer on certain federal government

business that was being advertised.
As compensation for his activities
Jordan was to receive a five percent
commission on all sales made under
the bid. Was the agreement valid?

No. An agreement which contem
plates procuring personal or political
influence to secure the acceptance of
a bid on a public contract being let by
a governmental department is against
public policy and, therefore, void.

In the probate of an estate the
assertion was made by Dolan that he
was an heir of the decedent. This was
resisted by the trust company handling
the affairs of the estate. Dolan’s claim
was ultimately compromised by the
payment to him of $5,000. As an inci
dent thereto, however, Dolan’s heir
ship was not established or admitted.
Should Dolan, in making his tax re
turn, treat with the $5,000 as though
it were income?

No. A person receiving money or
property in a compromise settlement
of a claim that he is entitled to par
ticipate in the distribution of an es
tate as an heir is not to be regarded
as receiving income under the tax
laws. The courts favor compromises
and in cases such as this will not go
behind them to try the bona tides of
heirship. The simple fact that heir
ship was not established or admitted
as part of the compromise did not
mean that the recipient was not in
fact an heir for income tax purposes.

ALL

ALONG

THE

L I NE

Livestock is handled at a fast pace from the time it is
shipped until the meat products move into the channels of re
tail trade.

Drovers Service is geared to this fast tempo.

Daily, within a few hours after livestock shipments are sold
here

in Chicago,

hundreds

speeding on their w ay.

"Y ellow

Boy"

advices

are

Many midwestern bankers have long

recognized the "Yellow Boy" as the symbol of fast, friendly
service.

Inquiries from interested bankers are invited.
M em b er, F ed era l D e p o s it Insu rance C orporation

(Continued from page 9)
are now going a little further, and are
writing them that we will be willing to film
for the ones that do not have a Recordak,
some currency and keep track of it by num
ber, so that it will be possible for us to tell
who has certain numbered currency.
“ We have had contact the last few days
with some Insurance Underwriters who feel
that if this can be put ito effect in general
over the United States and given the pub
licity, that they will be able to reduce in
surance rates on this kind of insurance. ’ ’
B yron D u n n , President, N a

DROVERS NATIONAL BANN
DROVERS TRUST 0 SAVINGS SANN
UNION
Northwest ern

ST OCK

Banker, April,

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

1946

YARDS,

CHI CAGO

tional Panic o f Commerce,.
Lincoln, Nebraslca.

Who Knows?
The biggest mystery to a married
man is what a bachelor does with his.
money.

L O O K IN G FOR G O O D LOAN COLLATERAL?

Turn the spotlight on your customers' Inventory

NE OF the best loan collaterals a bank can hold
hides under the name of "inventory.”

Lawrence Warehouse receipts may be converted into
bank credit.

Your customers are learning that their marketable
inventory, when field warehoused by Lawrence Ware
house Company, gives them an easily tapped source
of additional working capital.

Second: by providing you with a free, explanatory
b o o k le t, "F ie ld W a reh o u sin g on your P rem ises,”
written in laymen’s terms. You may have as many as
you like for your customer-prospects.

For Law rence h elp s you r loan d epartm en t in 3
ways—by spotlighting this profitable business.

Third: for the desks of your loan officers, Lawrence
has produced a free and fully detailed book,"Inventory
Financing.”

First: by advertising its service to your top-prospect
in d u stries. Law rence advertisem en ts explain the
"h id d en collateral” in inventory. . . show how easily

Phone or write our branch office in your territory
and take advantage of Lawrence’s 31 years of Field
Warehousing experience.

LAWRENCE WAREHOUSE COMPANY
T ield W arehousing
NEW YORK: 72 Wall Street
W. P. Story Building •
Florida •

Dallas •

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

•

C H IC A G O : 1 North LaSalle Street

Buffalo •

Houston •

Boston •

Denver •

Philadelphia •

CREATES CO MM OD ITY PAPER AGAINST IN VENTORY
•

SAN FRAN CISCO: 37 Drumm Street

•

LOS ANGELES.

Kansas City, Missouri • St. Louis • New Orleans • Jacksonville,

Fresno • Stockton • Portland, Oregon • Atlanta • Cincinnati • Washington, D. C.

Northwest ern

Banker, April,

1946

Il h i/

th e Hunt ri/
Is Im p a rta n t
I WOULD like to make a comment
| or two on correspondent bank rela
tionship. You know I look at this
thing a litle differently than some peo
ple, perhaps. I realize full well how
it is with these roving vice presidents
of the city banks; they get off the
morning local with their hard hats
and maybe their spats and come in and
tell their correspondent banks how im
portant they are to them. In other

By ROY L. STONE
Vice President
First Wisconsin National Bank
Milwaukee
words, how important the city bank is
to the correspondent bank. Well, now,
if they tell you all the truth, they
would impress upon you how impor
tant you are to the city bank. I want
to call just one little point of that to

your attention. There are many serv
ices that a city bank renders to its
large commercial customers, generally
known as national accounts, that with
out your support and your help they
could not perform, and I speak from
personal experience on that. We have
a service in our shop that happens to
be under my direction called our “Co
ordinated Regional Service.” You
know that thing wouldn’t be worth a
damn if it wasn’t for you country
bankers. If we didn’t have the cover-

B e y o n d R o u tin e
O R R E S P O N D E N T banks find the American

National well prepared to render them

prompt, efficient service. That is to be expected.
The real test o f the practical value o f our coop
eration occurs when a situation arises which
requires us to go beyond routine service in our
correspondent relationship.
O n such occasions, correspondent banks
discover that the American National meets the
challenge readily and successfully. W e are serv
ing many banks, large and small, in cities and
in smaller towns, and solicit the opportunity to
be similarly helpful to you.

AMERICAN NATIONAL BANK
A N » TRUST C O M P A N Y
OF CH I CA G O
LA S A L L E S T R E E

T W A SH IN G TO N

Member Federal Deposit jjBjlJNSM Insurance Corporation

N ort hwestern

Banker, April,

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

1946

R O Y L. S T O N E
“ County Bankers A re Im portant’ ’

age and all the correspondent rela
tionships we have in Wisconsin, we
couldn’t sell that particular service,
which has been one of the best sales
arguments we have had in talking to
these big national companies. If our
coverage of correspondent b a n k s
wasn’t such as it is, as I said, that
couldn’t be sold, and I like to brag a
little bit about it.
So I want to say to you that when
these roving vice presidents of these
big city banks blow in and tell you
how important they are to you, just
remember that you are just as impor
tant, if not more so, to them than they
are to you, and that is something we
have proven. # #

Campaign Chairman
Kearney Wornall, vice president,
City National Bank and Trust Com
pany of Kansas City, has been ap
pointed campaign chairman for Kansas
City’s 1946 Community Chest Cam
paign. The dates of the drive are
October 9th to 18th, at which time the
organization will continue its consoli
dated fund raising drives.
Mr. Wornall served as special gifts

i*
. ■'V•
;'i.Vi

This installation of Burroughs machines
in the Indiana National Bank, Indian
apolis, is just one of thousands found
in offices throughout the world

■

Whether the need is for one all-purpose machine for many jobs,
or many machines for one job — the broad range of adding
calculating, accounting, statistical and cash handling
machines developed by Burroughs gives business
concerns a flexibility of choice that assures maximum
efficiency and productivity from a minimum
investment in equipment. That business concerns, large
and small, have found it pays to do business

Burroughs
O

IN MACHINES
IN COUNSEL
IN SERVICE

FIGURIN G, A C C O U N T IN G AND STATISTICAL MACHINES

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

with Burroughs is amply reflected in the fact that
you see Burroughs machines wherever you go.
BURROUGHS ADDING MACHINE COMPANY
DETROIT 32, MICHIGAN

• NATIONWIDE MAINTENANCE SERVICE

• BUSINESS MACHINE SUPPLIES

Northwestern

Banker, April,

1946

30
chairman last year and his division
obtained approximately half of the
$1,121,000 pledged in the 1945 drive.
He had worked in the men’s division
in other campaigns.
Mr. Wornall has been active in many
organizations and has served as treas-

. . . t h e w a y he d riv e s
Californians own a larger number
o f cars and depend upon them
more than the people o f any other
state. Communities are sprawling,
decentralized; distances are vast.
Automobiles provide Californians
with the freedom they like.

KEARNEY W ORN ALL

. . and the w a y he banks

"The California Trend”
... a fact-based forecast... will
help you plan your business if
your plans include California.
Write Dept. AD, 300 Mont
gomery St., San Francisco 20,
or 660 So. Spring St., Los
Angeles 54, for a free copy.

Californians liked the progressive goal
o f A. P. Giannini when he founded the
Bank o f America in 1 9 0 4 ... to bring
a fully-rounded banking service with
in reach o f all the people. These men
and wom en o f C alifornia gave Bank
o f A m erica the kind o f support that
built it to its present size — with 493
C a liforn ia bran ch es — a sta tew id e
organization providing local service.

urer and director of the Kansas City
Chamber of Commerce and treasurer
of the Native Sons’ Society of Kansas
City. In all War Bond campaigns ex
cept the first he was director of special
sales. A descendant of two pioneer
Kansas City families, he was graduated
from the University of Missouri with
a law degree. He has been identified
for more than 30 years with the bank
ing business. A past president of the
Missouri Bankers Association in 194344, Mr. Wornall has an unusually wide
acquaintance with bankers throughout
the southwest area. He is a member
of several state and national banking
committees and one of Kansas City’s
outstanding civic leaders.

Bank o f America, a member o f the Federal Reserve System and the
Federal Deposit Insurance Corporation, has main offices in the
two reserve cities o f California—San Francisco and Los Angeles.

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N A T I O N A L S Ï i n g s A S S O C IA T IO N
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BLUE AND GOLD BANK OF AMERICA TRAVELERS CHEQUES ARE AVAILABLE TH R O UG H AUTHORIZED
BANKS AND AGENCIES EVERYWHERE

Naw,

N or th we st er n

Banker,

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

Apr i l ,

7946

there

ain’ t nobody
named J o e !

this

shop

INVESTMENTS

T rea su ry9# N o n -in f'latían P olicy
Fails to H ait itisiny Hoad M a rk e t
Secretary Vinson Said to Believe
Interest Rates Are Low Enough
By RAYMOND TRIGGER
Investment Analyst
New York City
OUNTING evidence of a leaning
of the Treasury in the direction
of a non-inflationary policy has
not stopped the upward progress of
the bond market. It has merely slowed
the advance, made buyers more cau
tious, with the result of more fre
quently recurring periods of reaction.
A considerable amount of the sell
ing, however, has hardly been of a
technical character, necessitous. War
loan withdrawals have meant a net
loss of cash for many banks which
were not holders of an amount of the
March certificates and the 1 per cent
notes equivalent to the withdrawal of
the war loan deposits. Similar irregu
larity is expected to result from the
cash redemption of $2,000,000,000 of
the April certificates.

Besides the deflationary decision to
use part of the Treasury cash balance
for debt retirement, Treasury policy is
believed to have crystallized along
more conservative lines. Evidence of
this was read in the reaffirmation of
the % per cent rate on the March 1st
certificate offer. This has been taken
to indicate that the cheap money ele
ment in the Treasury has been si
lenced and that Secretary Vinson has
given greater heed to the Federal Re
serve point of view as embodied in
the Eccles thesis.
The latter would not only reduce the
total money supply by taking steps to
retire the Federal debt, but would
prevent further monetization by bal
ancing the budget and by making it
undesirable to pledge short term issues
to buy the longer terms. Specifically,
Chairman Eccles would eliminate the
preferential rediscount rate. This has
not been done but the rejection of the
proposed reduction of the certificate
rate that had been agitated for some
months is somewhat in the same di
rection. though mildly, in tending to

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

This is a discussion of factors
affecting your investment port*
folio. If you have any questions,
or if you find yourself in dis*
agreement with comments here
in, your letters, addressed to the
NORTHW ESTERN BANKER, will
be welcome and will be answered
here if the subject matter is of
general interest. Under no cir
cumstances will the editor of this
coiumn discuss specific securities.

discourage the sale of the certificates
for reinvestment in the longer term
issues.
Vinson is said to believe that inter
est rates are low enough and it may
not be official policy from now on to
continue to stimulate the demand for
the longer terms and so to raise prices
and reduce yields further.
While deflationary from the overall
standpoint, the debt reduction policy
nevertheless can have some influence
toward higher prices. It is quite con
ceivable that some banks which are
left in a plus cash position as between
the war loan withdrawal and the re
demption of their holdings may decide
to reinvest in the higher yield brackets
despite the continuance of the % per
cent rate on the certificates. This ten
dency may be furthered by the vanish
ing “rights” value of certificates in the
prospect that there may be no ex
change privilege for a large part of
recurrent maturities.
At any rate, this is the way the
market as a whole has been acting
during the past several weeks. In the
government section only the long
“bank” 2 V2 S have declined in the four
week period ended March 13th, and

corporates were firm to moderately
strong with gains in the high grade
utility and rail groups. Industrials
were inclined to be easier and medium
grade rails and utilities eased slightly.
The strength of top grade rails
brought forth a record low interest
rate in the case of the Union Pacific
refunding bonds of 1991 which were
offered at a 2.42 per cent basis for
2 V2 S.
While this was undoubtedly
“pushing it” bidding was close and
thus seems to bespeak a consensus of
opinion that there is a strong demand
for high grade rails on a basis that is
now not far from that to top grade
utility bonds or prime railroad termi
nal issues. For the time being, how
ever, the yield advantage offered by the
longer term Union Pacific issue ap
pears to be too small and the sale of
these bonds went slowly. A week aft
er the offering it was understood that
only about a third of the issue had
been placed.
The Southern Pacific 2%s of 1996
were also brought outright at the top
and were only partly absorbed at par.
Price restrictions were removed the
day before the bidding for the $75,000,000 Great Northern issue presumably
to unlock dealer positions and the
price broke to 98 V2 . At this level they
became underpriced relative to the
equally secured 2%s of 1986 which
have been well digested and sell
around a 2.77 per cent basis.
The slowness of the Southern Pacific
2%s at 100 makes the Albany & Sus
quehanna exchange offer for 2%s of
1971 at par look unattractive. While
the quality rating is the same and the
term is shorter, there is little else to
appear favorable by comparison. The
debt rate represented by the $10,000.C00 Albany & Susquehanna 2%s is low
and the mortgaged line is heavy den
sity road. However, the time is apt
/.’or:hwest ern Banker, April, 1946

Investments

to come again when a decline in the
use of anthracite could throw the Dela
ware & Hudson, which assumes the
obligation, into relative disfavor.
In the high grade rail list, New
York Connecting 2%s are still behind
the market but other terminal issues
have been outstandingly strong. Kan
sas City Terminal 2%s of 1974 especial
ly has reversed itself and is now sell
ing to yield less than Cincinnati Termi
nal 23/is. This is as it should be in
view of the fact that the Kansas City
issue is not callable until 1974.
Pacific Gas & Electric 3s of 1979.
which are callable at 111 until next
January 1st and then at 110 are still

among the most attractive in the high
grade utility section. Others are Pa
cific Telegraph & Telephone 2%s which
are selling only fractionally over the
call price of 107 and Texas Power &
Light 2%s. In the industrial group
there are no noteworthy opportuni
ties. It may be remarked, however,
that National Dairy Products 2%s have
the best price position relative to the
call price and not involving any im
portant concession as to yield.
As a closing thought, it might be
suggested that banks receiving cash
for part of their April 1st certificate
holding might do well to reinvest in
the Treasury 2s of September 1952-50.

Selling to yield about 7 basis points
more than the March 2s of the same
year, this issue has been out of line
for some weeks. The yield of about
1.06 per cent is attractive for a 4%
year term to call date.

Boosted for AJ.B. Post
Garnett Carter, assistant vice presi
dent of the Fulton National Bank,
Atlanta, Georgia, is being boosted by
the Atlanta Chapter of the American
Institute of Banking for the office of

Sound, S ea son ed
SH O R T TEItM IN V E ST M E N T S
☆

☆

Consolidated collateral trust debentures of
the Federal interm ediate credit banks,
joint and several obligations ot these in
stitutions, are issued under authority of
the Federal Farm Loan Act, as amended.
The Debentures are legal investment for trust funds,
insurance companies and savings banks in New York
and other States. They are eligible to secure all fiduciary,
trust and public funds under authority or control of
officers of the United States. They are approved security
for deposits of postal savings funds.
Maturities to six months may be purchased by the Federal
reserve banks and are acceptable by them as collateral
for fifteen day loans to member banks. Denominations of
$5,000, $10,000, $50,000

$100,000, maturing in three to

twelve months, are offered periodically through recog
nized dealers and dealer banks at current market rates.

THE FEDERAL INTERMEDIATE CREDIT BANKS
SPRINGFIELD, MASS.
BALTIMORE, MD.
COLUMBIA, S. C.

LOUISVILLE, K Y .
NEW ORLEANS, LA.
ST. LOUIS, MO,

ST, PAUL, MINN.

HOUSTON, TEX.

OMAHA, NEB.

BERKELEY, CAL.

WICHITA, KAN

SPOKANE, WASH.

Further information regarding th e Debentures may be obtained from

CHARLES R. DUNPN, Fiscal Agent

N ort hwest ern

Banker, April,

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

1946

3i \assau Street, New York 5

GARNETT CARTER
A .I.B . Candidate

vice president of the A.I.B. A bro
chure giving Mr. Carter’s qualifications
and record in banking and A.I.B. activ
ities has been mailed all over the coun
try.
He has been associated with the
Fulton National for 19 years, serving
in various departments. He has held
every position in the Atlanta chapter
of the institute, serving as president
there in 1935-1936. In addition to
many appointments on various na
tional committees he has completed a
full term as member of the executive
council. Mr. Carter is known through
out the southeast for his active partici
pation in the development and promo
tion of regional conferences and for
educational work in banking.

Joins Chemical Bank
N. Baxter Jackson, president, Chemi
cal Bank & Trust Company of New
York, has announced the appointment
of Eugene W. Stetson, Jr., as an as
sistant vice president. Mr. Stetson as
sumed his duties last month.
He will be associated with the bank’s
business in the south Atlantic states,
including Virginia, North Carolina,
South Carolina, Georgia and Florida.

Investments
when controls are off, it is hard telling
what will happen.”

Question: Do you think all OPA
price controls should be elim
inated?

V. E. Swenson, cashier, Langford
State Bank, Langford, South Dakota:
“ I think that the OPA should be con
tinued. In cases where the present
price is too low it should be adjusted
so that a small profit can be made.
But the manufacturers and retailers
should cooperate in this so that a great
many articles can be sold at a small
profit. Everybody will make as much
money as before and it will furnish
more employment than a few articles
at a high price. It will also stop infla
tion if everybody can buy what they
want within the shortest possible
time.”

B. I). Helscher, president, Keokuk
County State Bank, Sigourney, Iowa:
“ I do not. We tried this after the last
war and where did it get us? We do not
want that to happen again. We haveexamples every day that convince
us that if the price control was taken
off our people would go wild and pay
any price. It is different than after
the last war for now everyone hasmoney. Except the poor bankers.
“ I am happy to see that we will
have price control for another year.
True, OPA isn’t perfect, but what is.”
John Hirning, president, Miners and’
Merchants Savings Bank, Lead, South
Dakota: “Price control by OPA should
be maintained. In this I believe I

C. A. Dettman, manager, Security
Bank, Glen Ullin, North Dakota: “ It
is our belief that the OPA has done
a lot of good in keeping prices down
and that controls should not be elim
inated entirely as, without doubt,
prices would run away and the
chances for inflation would be much
greater than they would be with
certain limitations.”
Gordon Maxam, vice president and
cashier, Community State Bank, Lake
Preston, South Dakota: “ I think the
OPA price control system should be
retained. However, there are several
cases where the prices^ should be ad
justed so that it is somewhere in line
with the present cost of production,
for there are now cases, I feel, where
merchandise is not being put on the
market for the reason that there would
be no margin of profit in the merchan
dise for the manufacturer or the re
tailer.

“ I think that if the price controls
were eliminated that the entire situa
tion would get out of hand and the
prices would be sky rocketed within a
short period of time, something similar
to what they did after the last war and
during the war at which time we had
no price controls whatsoever. I would
not like to see this return but feel
that it would if the controls were not
maintained but as I have stated before,
I think that they should be adjusted
in some cases so that they are fair to
both the manufacturer and the re
tailer.”
F. C. Aue, president, First National
Bank, Sioux Center, Iowa: “No. Errors
may have been made, but on the whole
prices have been held down, and there
fore it is my opinion that it should be
retained and more strictly enforced.
Perhaps it could be extended to other
matters also.
“ Inflation is too serious already, and

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

Northwestern

Banker,

Apri l ,

1946

Investments

voice the sentiment of 80 per cent of
the rank and file of the people.
“ I think Bowles is doing a splendid
job, and should be backed up with
letters, etc., to off-set the pressure put
on Congress by a small minority, and
show politically minded congressmen
how the voters stand.”

Household Furnishings
Judge: “ Now, sir, please tell the
court exactly what passed between you
and your wife during this quarrel.”
Defendant: “A flat iron, rolling pin,
six plates and a teakettle.”

G. I. LOAN
QUESTION BOX
(Continued from page 14)
loan may continue, however, after the
veteran’s death.
Q. Must a veteran put any of his
own money into a business, a home, or
a farm in order to get the guaranty?

This is not a requirement for guar
anty or insurance. It is a question
which is settled with the lender. The
only bearing it has on the guaranty or
insurance of a loan is that in the case

No Market Losses
IF
YOU INVEST
YOUR MONEY
— in our 3 % Fed
erally insured cer
tificates,
have

w h ic h

safety,

THOMSON &
McK innon
STOCKS • BONDS
COMMODITIES
216-218 Empire Bldg.

DES MOINES

Phone 4-2127

quidity and free
dom from market
losses.

11 W a ll Street, New York
231 S. LaSalle St., Chicago
Branches in 34 Cities

Write for our weekly Stock Survey
D IR E C T P R IV A T E W IR E

George E. Virden, Secretary

The Russell County Building & Loan Association

Laverne M. Barlow
M anager

Members New York Stock E xchange
and other principal exchanges

RUSSELL, KANSAS

Specializing in Unlisted Securities

BANK — INSURANCE
PUBLIC UTILITY — INDUSTRIAL — REAL ESTATE
LUMBER & TIMBER
BONDS, PREFERRED AND COMMON STOCKS
B O U G H T — SO LD — QU OTED

REMER, MITCHELL & REITZEL, IRC.
208 So. La Salle St., Chicago 4
RANdolph 3736
W E S T E R N U N IO N
T E L E P R IN T E R
“W UX”

N orth w estern

Banker, April,

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

B ELL SYSTEM TE LE TY P E
CG-989

1946

of a farm or a business it may affect
the livelihood of the veteran’s success
in the venture.
Q. May a loan to buy an automobile
or a truck be guaranteed or insured?

Yes, but only if the automobile or
truck is necessary to conduct of the
veteran’s own business or farming op
eration, or the conditions of his em
ployment require that he have such
vehicle for use in his work.
Q. Does it make any difference to
the veteran whether the lender pro
cures insurance or guaranty on his
loan?

Yes. Only 15 per cent of the obli
gation is charged against the right of
guaranty if the obligation is handled
by the lender under the insurance pro
visions, whereas the charge may be as
much as 50 per cent of the obligation
if guaranteed. The result is that more
of the right of guaranty is used up in
loan transactions by guaranty ordi
narily and so less remains available
for future transactions. On the other
hand, 4 per cent of the amount guar
anteed or credited to the lender’s in
surance account is paid by the Veter
ans Administration to be credited on
the indebtedness. This payment does
not have to be repaid by the veteran
and is in effect a gift to him. As ordi
narily a larger amount of the loan is
guaranteed that is insured, the bene
fit of this gift is usually more on a
guaranteed loan. The permissible in
terest rate on a non-real estate loan if
handled under the insured plan is
higher than on a guaranteed loan.
Q. If a loan is for any reason not
completed after the guaranty or insur
ance has been entered upon the vet
eran’s honorable discharge or certifi
cate of eligibility, what should be
done?

The veteran should send his honor
able discharge or certificate of eligi
bility to the Regional Office of the
Veterans Administration where the
entry was made with the appropriate
information so that the entry may be
cancelled and the amount of guaranty
for the veteran’s future use. # #

Policyholders National
A newly created position in the Pol
icyholders National Life Insurance
Company of Sioux Falls, South Dakota,
and the new man to hold it down, have
recently been announced by the firm.
The job is director of field expansion.
The man is Lester D. Lloyd, who for
the past four years served as assistant

Investments
manager in the Sioux City district
office of the Metropolitan Life Insur
ance Company. Prior to his appoint
ment in that capacity he spent several

ciate actuary for Policyholders Nation
al Life Insurance, was recently dis
charged from the armed forces and
assumed his new position with the in
surance firm on January 21st. He be
gan his life insurance career in 1934,
serving as assistant secretary for the
Pathfinder of Grand Island, Nebraska,
and held a similar position with the
North Star Life of Moline. Illinois.
Later, and until his induction into the

army, he was with the Union National
Life of Lincoln, Nebraska. At one
time he also did some special work
for the Nebraska Insurance Depart
ment.

Plenty of Them
Chemistry Professor: “What is the
outstanding contribution chemistry
has made to the world?’
Student: “Blondes.”

P r o s p e c tu s e s on r e q u e s t fr o m P r in c ip a l U n d e rw rite r

LESTER

INVESTORS

LLOYD

From Sioux City

years as an agent in the field. He has
had many years of experience in the
training and development of agents
and will continue this type of work in
his new position. Before affiliating
with Metropolitan, he was engaged in
sales work for a Sioux City detective
and armored car agency. Prior to this
he served as state deputy grand master

SYNDICATE

R. E. M a c g r e g o r , P r e s id e n t
M in n e a p o lis, M innesota
R E P R E S E N T A T IV E S IN TH E

PRINCIPAL

CITIES

THE UNITED

STATES

INFORMED ACTION IS THE KEY TO SUCCESSFUL INVESTING

'ihelaxation Factor
ininvesting
Tax exemption in bonds is a feature o f varying
value to different investors. T o some it is a
luxury; to others, a necessity. The problem is
to obtain the exact degree o f tax exemption
which fits the individual income. The large
investor must pay so high a tax rate that tax
exempt bonds may yield the same or a better
net return than taxable bonds paying a much
higher interest rate. On the other hand, the
investor o f moderate income might be paying
for a value he could not use in buying any,
or too large a proportion of, tax exempts.

Send fo r this H elpful
Comparison Chart
Available without obligation is a clear,
understandable folder with tabulations that
assist in determining which type o f bond
is more profitable for investors with
taxable incomes from under $ 2 ,0 0 0 to over
$ 2 0 0 ,0 0 0 . Send for "Tax Exempt vs.
Taxable Bonds” as an aid to informed action.

H A L SE Y , S T U A R T & C O . I n c .
123 S. La Salle Street, C h ica go 90, Illinois
Gentlemen : Please send me, without cost or
obligation,"T ax Exempt vs. Taxable Bonds.”

Name
H A R R Y A. L E E
A ssocia te A ctuary

for the A.O.U.W. of Nebraska, a fra
ternal insurance organization, and was
in the employ of the Commercial State
Bank of Grand Island, Nebraska.
Harry A. Lee, newly appointed asso
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

City
NB-4

State

Use this request fo r m — at no cost.

Northwestern

Banker. April,

1946

G E T

A T T H E

MEAT!
You can't get past the fact that values today are on the
increase.

You are investing the money of your stockholders

in business projects and properties whose values must be
protected.

Do not overlook the value of good and sufficient

insurance.

Hundreds of Banker Agents throughout the mid-west are pro
tecting their clients and stockholders by making available
through their own institution Western Mutual's complete pro
gram of Insurance Protection.

W e will welcome your inquiry

concerning an agency contract with us.
W e write a complete line of Fire, Windstorm, Automobile, and
Plate Glass coverage.

Your letter of inquiry will have our immediate attention.

W ESTERN M U TU AL
FIRE INSURANCE CO.
9th & Grand

Nort hwest ern

Banker, April,

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

1946

Des Moines, Iowa

IN SU R A N C E

ff o##* to Get
2.1 P er Cent M o re Husiness
Evaluate Your Market, Your Customers and
Yourself, Then Use the Results to Improve
Your Selling Methods
E ditor’ s N o t e : The following ex
cerpts are taken from a book just re
leased by the Boston Insurance Com
pany and the Old Colony Insurance
Company of Boston, Massachusetts,
entitled, “A Five-Point Program for
Postivar Production.” W e believe the
ideas and thoughts expressed here will
be very stimulating and helpful to
those selling insurance.

ITH conditions continually urg
ing home owners to up their
fire insurance in line with to
day’s replacement costs, it is apparent
from a recent survey conducted by The
American Home on insurance that the
average agent who will go out and sell
the need for such additional insurance
can boost his commissions on his dwell
ing business at least 25 per cent. This
survey revealed that among those con
tacted only 19 per cent stated that in
surance men had tried to sell them fire
insurance in the past two years. If
the agent will bring up other timely
and needed lines, his over-all increase
in commissions will go far beyond the
25 per cent. In order to profit from
the past and take full advantage of the
future, there are five things you should
decide to do now. They are:

Study this area carefully—continu
ously. Only by knowing it intimately
can you unloose its insurance poten
tials. Check with your local newspa
per. Its promotional department, be
cause it has to supply local and nation
al advertisers with facts on which to
base their budget, has extensive re
ports on the buying habits of its read
ers and on business conditions in the
territory it covers. Another valuable
source of information is your state
development committee. It can fur
nish you not only with detailed facts

is just as important as knowing the
forms of insurance you sell. The best
way to find out is through a market
analysis which will give you the cor
rect answers.
The first step is to define your prob
lem. You want to find out why your
customers bought insurance from you
in the first place. Was it your sales
methods, your advertising, some per
sonal reason, the recommendation of
a friend? Write down your questions
clearly so that they can be answered
definitely. This questionnaire should

T h e F i v e - P o i n t P r o g r a m f o r P o s t w a r P r o d u c t i o n is c o m
p o s e d of the fo llo w in g s u b je c t s :

1. Analyze your market and set your goal.
2. Find out the compelling reasons that induce people in your
community to buy insurance.
3. Determine the "plus qualities" of your agency.
4. Analyze your accounts and determine what classes of insur
ance buyers are responsible for the greater share of your
total at the lowest cost-per-sale.
5. Change your selling technique to meet today’s conditions,
and back it up with the right type of advertising.

I • ANALYZE Y O U R M A R K E T .

Every business, large and small,
has its own “ sphere of influence.”
Your sphere of influence is the area
where you are best known—the area
from which you are now taking out
the greater portion of your business
—the area from which you can take
out more business with less effort
than from any other section.

about your city or county, but about
income tax payments as well. Your
Chamber of Commerce is also in a
position to be of real assistance to you.
2 * FIND OUT WHY YOUR CUS
TOMERS BUY. Knowing the com

pelling reasons that make people buy

be used as a guide in all your inter
views to get results.
The second step is to select those
you are going to call on. It is impor
tant that they be truly representative
of your customer lists. The number
depends on the size of your list. A
good yardstick is 5 per cent.

YDid you know that your Banker’s Blanket Bond
does not protect your Cash Letter while it is in transit
by mail or express? A sk about our
Cash Letter Policy, which fills the gap.

I n s u r a n c e C o u n s e lo r s

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

to B a n k s

Scarborough &> Com pany
F IR S T

N A T IO N A L

BANK

B U IL D IN G

• C H IC A G O

IL L IN O IS

Northwest ern

• STATE

Banker, April,

4325
1946

Insurance

After you have compiled the results,
study them carefully. Act on them
and the ease with which you will make
new sales will astonish you. Instead
of selling prospects you will be helping
them to buy.

•t.

DETERMINE Y O U R
“PLUS
QUALITIES.” Equally as important

as finding out the compelling rea
sons that induce people to buy insur
ance is finding out their reasons for
buying it from one agency rather than
another.
The attractiveness of any agency to
an insurance buyer does not depend on
what it has in common with other
good agencies, but what it has peculiar
to itself. The instant an agency puts
its finger on “what it has peculiar to
itself” that wins and holds customers,
its sales and advertising problems be
come clear.
If you were a business man who had
just moved his plant to your commu
nity, where would you buy your insur
ance? From your agency, or from one
of the other good agencies?
When you get back to your office,
write down the answer to that ques
tion—and the reasons. If your agency
is the winner, feature the “reasons

why” in your personal selling and in
your advertising.
If on the other hand you have to
admit that some other agency has a
slight edge, study your agency’s serv
ice for ways to improve it. Interview
your customers. Find out why they
placed their business with you. and
ask for suggestions as to how your
office can be of greater value to them.
Then outline a logical presentation
that gives your agency character—that
proves that all agency service is not
the same—that will convince prospects

See, B oss, it w ork ed !
M y idea of a
“ little m ore for good m easure” has tripled
your busin ess!

that your agency has something of
greater value to offer insurance buy
ers. Be specific. Remember—what to
day’s insurance buyer wants is a dis
cussion of your specific abilities as
they relate to his specific insurance
needs.
4 . ANALYZE THE BUSINESS ON
YOUR BOOKS. If yours is an aver

age agency, you are receiving the
greater percentage of your premium
income from a small percentage of
your customers—possibly 20 to 30 per
cent. Since it costs nearly as much
to sell a marginal account as it does
a highly profitable one, it is logical to
suppose that the percentage of selling
cost will be reduced and premium in
come increased by the adoption of
selective selling.
The first step in selective selling is
to analyze your accounts and deter
mine what classes of insurance buyers
are responsible for the greater share of
your total at the lowest cost-per-sale.
Then concentrate your prospecting ef
forts on those in these selected groups
and those prospects that show definite
signs of attaining their characteristics.
But don’t underestimate pent-up buy
ing power and personal ambition.

53rd ANNUAL FINANCIAL STATEMENT
As o f December 31, 1945
ADMITTED

LI ABI LI TI ES

ASSETS

Mortgage Loans .......................................... $ 219,999.71
Bonds and Stocks........................................ 1,586,784.61
Deposits in Banks........................................ 1,052,151.96
Building and Loan Association Shares. ..
50,000.00
Agents’ Balances ........................................
51,383.91
Reinsurance Receivable .............................
80,365.16
Interest Due and Accrued...........................
7,929.90
All Other ......................................................
1,384.54
Total

$3,049,999.79

Reserves:
Losses and Claims.....................................$ 152,360.56
311,634.33
Unearned Premiums ...............................
Salaries, Rents, Expenses, Etc............
414.27
Taxes (Federal, State andOther)..........
101,406.48
Contingent Commissions .......................
160,231.91
All Other ..................................................
11,189.24
T otal.................................................... $ 737,236.79
Building F und................... $ 200,000.00
Surplus Unassigned.......... 2,112,763.00
Surplus as Regards Policyholders.............. 2,312,763.00
Total .................................................. $3,049,999.79

Surplus Over A ll Liabilities $2,312,763.00

FARMERS MUTUAL HAIL INSURANCE COMPANY OF IOWA
C. P. RUTLEDGE, President
Northwestern

Banker, April,

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

1946

Valley Bank Building, Des Moines

Insurance
5 . (A) CHANGE YOUR SELLING
TECHNIQUES TO MEET TODAY’S
CONDITIONS. While there will be

a real need for insurance and money
to pay for it, this does not neces
sarily mean that more money will be
spent for insurance. The wants of
the public are many and in excess of
their income. Competition for the
public’s dollar will be keen. You will
have to compete not only with other
insurance agents, but with other busi
nesses and services. This means that
you must convince people that they
need insurance more than they want
some other product or service.
To accomplish this successfully, take
your cue from the definition of the
two words “want” and “need.” A
“want” is something that is desired. A
“ need” is the lack of something essen
tial. Wants are purchased on emo
tions. Needs—and insurance is a ba
sic need—are purchased on logic—cold
unadulterated logic. The prospect has
to think and the average man will not
think about something until it appeals
to his self-interest and his emotions.
So, adopt the one-two system of sell
ing. First, appeal to the prospect’s
emotions—his self-interest. Then when
you are sure you have his interest,
give him the facts that will help him
make the right decision. But present
your facts in clear, simple language.
(B) BACK UP YOUR SELLING
\Y ITH ADVERTISING. Well-planned
advertising will help you make more
sales in less time. Decide to invest
more money in advertising. The pros
pects warrant it and conditions make
it necessary. Not only will you have
to combat keen competition for the
public’s dollar, but you will have to
do an impressive re-selling job.
Veterans and war workers who are
returning to your community have for
gotten a lot of things they knew about
insurance and insurance agencies be
fore they went away. This means that
if you are to influence them favor
ably, you will have to do as complete
an advertising job as if you were pre
senting your agency to the public for
the first time.
Your advertising should be the best
— alert, aggressive advertising that
gives the impression to all who read
it that your agency is fully qualified
and should write their insurance. If
you know why those in your commu
nity buy insurance — and why they
should buy it from your agency, your
advertising copy will do just that.# #

National Housing
Communities have a deep stake in
the present acute housing shortage
and to carry out the veterans’ emer
gency housing program complete eom
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

munity participation is indispensable,
Wilson W. Wyatt, housing expediter
and administrator of the National
Housing Agency, told the Chicago
Association of Commerce recently.
“ Nationally, we are mobilizing the
resources of the Federal government

to attack the unprecedented veterans’
housing emergency,” Mr. Wyatt de
clared. “With the full backing of
President Truman, we seek to bring to
that attack the same bold approach
and the same intense efforts that won
the battle of war production.”

Resources of

OVERJ2,9 00,000 DOLLARS
Experience of

OVER TWENTY-SEVEN YEARS
Now dedicated to the Surety
and Fidelity Bond needs of
the Middle W est.

S u r e t y D iv is io n

The State Automobile Insurance Association
DES

M O I N E S ,

IOWA

SPEED U P TH E ACCEPTANCE OF Y O U R B O N D RISKS B Y
KEEPING A N C H O R ’S "FIELD COUNSELLOR” C A B IN E T A T
Y O U R ELBOW .
A simplified system for the preparation of Bond submissions—
organizes the entire business for the Agent.
Application supply folders with indexed, manual-colored tabs
carrying complete instructions for submission of risks; in addi
tion, copyrighted factual information o f an educational nature,
in condensed form.
A n ch oratin g Assures Smooth Saleing
Short Form A pplications

Sim plified R ate M a n u a l

ANCHOR
ST.

CASUALTY
PAUL

MINN.

Northwestern

Banker, April,

1946

Insurance

Construction of at least 2,700,000 new
homes and apartments in 1946 and 1947
is needed to get returning veterans
and their families under roof and to
achieve success in a program of such
magnitude the full cooperation of local
business, labor and local government
is required, Mr. Wyatt said.
“The national housing shortage is
the sum total of acute local housing
shortages,” Mr. Wyatt declared. “ It
is in the communities that veterans
must be housed. And it is a job for
private enterprise, that is the founda
tion of the program.”

A u d ito r s ' C on feren ce f'huii'm en

Returns to Northern Trust
John McNeil, assistant secretary,
trust department, has returned to The
Northern Trust Company, Chicago,
after three years in the service. Lieu
tenant Commander McNeil was sup
ply officer on Saipan prior to his dis
charge from the Navy last month.

IN S U R E
in the largest exclu
sive Hail Insurance
Company operating
in Iowa and Missouri
Statement of Condition at Close of Business
D ecem ber 31, 1945
ASSETS
Cash in Banks.... $471,077.75
Bends .............................. 525,385.00
S avings an d Loan
Shares .............
45,000.00
Deposit Premium Re
insurance Contract.... 15,000.00
A ccru ed Interest ........
2,721.24

Standing in top row, left to right: Elmer Koepke, personnel director. Marshall
& Illsley Bank (ENTERTAINM ENT); Kenneth A. Eckhardt, director, Merchants
and Farmers Bank, Menomonee Falls, Wisconsin (HEADQUARTERS); S. E.
Bennett, secretary-treasurer, Wisconsin Bankshares Corporation (E XH IBITS);
Elmer M. Junemann, cashier, Waukesha National Bank, Waukesha, Wisconsin
(RECEPTION); Clarence H. Lichtfeldt, comptroller, First Wisconsin National
Bank (PROGRAM); Gregory Schaefer, assistant vice president, State Bank of
Milwaukee (HOTEL RESERVATIONS).
Bottom row, left to right: Ralph M. Rosenheimer, vice president, Cudahy State
Bank, Cudahy, Wisconsin (REGISTRATIONS); Gertrude Eichsteadt, Reports
Department, First Wisconsin National Bank (WOMEN); John E. Bailey, chief
auditor, First Wisconsin National Bank, (GENERAL CHAIRMAN); Arthur R.
Lemm, assistant to comptroller, First Wisconsin National Bank, (PUBLICITY);
A. J. Mayer, comptroller, Marshall & Ilsley Bank (FINANCE).

RRANGEMENTS have been com visit the banks and look over our
pleted for the Ninth Mid-Conti ‘convention city’—famous for its hos
nent Regional Conference of Bank
pitality,” Mr. Bailey said. This is the
Auditors and Comptrollers to be held first conference since 1942 and a re
at the Hotel Schroeder, Milwaukee, union party in the atmosphere of “Old
Wisconsin, on May 23rd, 24th and Milwaukee” is planned for Thursday
25th, it was announced by John E. evening at the Hotel Schroeder.
Bailey, general chairman.
The educational program of the con
Thursday, May 23rd, will be devoted ference will open on Friday morning,
to the business of registration. “Dele May 24th. “ The committee has spent
gates will also have an opportunity to considerable time,” Mr. Bailey said, “in

$1,059,183.99
LIABILITIES
R eserves for Unpaid
Claim s and Adjusting
Expense ...................... $ 2,100.00
Contingent Com
m issions ...................... 15,000.00
A ccru ed Taxes ............ 28,635.34
45,735.34

Car financing

P olicyh old ers' Surplus $850,000.00
Contingent R eserv e..... 163,448.65
$1,013.448.65

Will locally purchased automobiles be locally financed

$1,059,183.99

when new cars become available?

As additional protection to policyholders
in case of excessive losses, the Company
has Reinsurance in the amount of

$2 5 0 , 0 0 0 . 0 0
Square Deal carries your hail insurance
at reasonable cost. No company can do
tetter.

Both you and Allied Mutual are interested in this. Let's
get together.
Write

•

A FEW DESIRABLE AGENCY
LOCATIONS OPEN

SQUARE DEAL
Insurance Company
(Mutual)
DES MOINES, IOW A
Nort hwest ern

Banker, April,

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

1946

| i| | |

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

DtS MOINES J

, .............................

^ -------- Hubbell Building

Des Moines 7. !owa

Insurance
preparing a program which will be
devoted to subjects of paramount im
portance at the present time and in
the period just ahead.”

MORE MONEY FOR YOUR
BANK IN FHA LOANS
(Continued from page 15)

yet thorough credit investigations and
decisions in a hurry. Don’t turn deals
down because you have insufficient in
formation. By the same token, do not
hesitate to turn any deal down if you
are satisfied after a full investigation
that it is a poor risk.

business is not going to come walking
in simply because you want it. You are
going to have to go out and get the
business by helping new dealers to
learn about FHA and then proving to
the dealers that you not only want
their business but that your organiza
tion is prepared to serve them.
Once you have the business you can
hold it against competition so long as
your service is satisfactory, because a

local bank has certain inherent ad
vantages over any outside agency. I
believe that if a bank is willing to give
complete instalment financing service
it can dominate the instalment finan
cing field in its area. As far as the
future of instalment financing is con
cerned, the banks can and will do the
job if they give a superior form of
service to the sellers as well as to
the buyers. # #

What Can a Small Bank Do
Under FH A ?
Some of you who are in a bank with
only two or three people are probably
saying to yourselves by this time that
what I have been telling you may be
very fine for a large bank with a staff
of people specializing in this business
but it doesn’t apply to your bank. Let
me ask you this question. Would
$3,000 to $4,000 a year extra income
help your bank? Can you get two
deals a week? If you can, it will bring
you approximately $4,000 a year. From
your surrounding country can you get
ten deals a week? That will bring
you in $15,000 to $20,000 a year. You
can do this with a minimum of detail.
This FHA business is really quite sim
ple to handle and those of us who are
more active in the business will be
glad to send you forms and rate charts
which you can use and if you confine
your deals to those improving the
actual structure of the house, you will
be within FHA regulations. If you
have any questions at any time we will
be glad to help you.
I want to tell yon of a call I made
not so long ago on a bank in a town of
about 5,000 people. I asked them if
they were doing any business under
FHA Title I and they told me they
were qualified for FHA loans and were
handling them but were unable to ob
tain much volume. I asked who was
getting the FHA business from the
furnace company across the street
from the bank, and they did not know.
I then asked who was getting the busi
ness from the lumber yard 1 had
passed a couple of blocks away. They
admitted they didn’t know, although
the owner of the lumber yard was a
director of their bank. I mention this
because it typifies the attitude of so
many bankers who claim they would
like to do more of this business but
actually will not do what is necessary
to secure it.

enclosed
in their mailings is a ''must” practice
with professional mail order men. Numerous tests have proven that RETURN
ENVELOPES materially increase results.

RETURN ENVELOPES
TENSION

KNOWS
HOW!

1912 Grand Avenue

Phone 4-4126

Des Moines 14. Iowa

S IG N E D TO M A K E IT G O O D . . .
. . . and printed to make it readable.
W e’re talking about the maker’s name
on a bank check . . . it should appear
twice. Ten billion times a year names
are signed to checks and a high per
centage can be read only by experts.
What banks pay for this illegibility
will never be known.
The "cure” is easy. Print the names. If
you want people to read something
easy, print it. Some signatures seem to
cry "W e can stump the experts!” . . .
and frequently they do, at great cost
to banks. When Bill Mvidiano whips
out his new "51” and dashes off his
signature the result looks like a surre
alist’s conception o f three men on a
horse. Still, Bill expects his checks to
be sorted and filed correctly . . . and
strangely enough they are.
But how much easier it would be if

the mystery was taken out o f such
signatures! That's where De Luxe
Personalized Checks come into the
picture. They make things easy for
your operating people. The public
likes them. You save money because
you recover the cost. And there’s a lot
o f fun in selling them. Banks from
coast to coast, large and small, con
tinue to feature De Luxe Personalized
Checks and the number o f depositors
using them is increasing swiftly.
Have you been selling them in your
bank? If so, do you need new publicity
material? W e will gladly send what
ever you require at no cost to you. If
you haven’t started to sell them, this
is a good time to get rolling. Prices
haven’t advanced a penny on these
checks and deliveries are prompt from
any o f our five plants. Write us for
the whole story.

I am going to repeat again that this

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

Northwest ern

Banker, April,

7946

Declares Dividend
The Mercantile-Commerce Bank and
Trust Company of St. Louis has de
clared a dividend of $2.00 per share,
payable April 1st to stockholders of
record March 20th.
The bank also announced the ap
pointment of Milton T. Bueltermann
as assistant vice president. Mr. Buel
termann has just returned from serv
ice in the armed forces and prior to
entering the service he served the
bank in the capacity of assistant cash
ier.

Five New Officers

I S prompt, efficient collection o f
Wisconsin checks and drafts im
portant to you? D o you ever need first-hand facts
about sources o f supply in W isconsin? . . . credit
information? . . . market data? . . . w ho’s who?
Whatever your requirements — routine bank
ing service, special information, or off-the-beatenpath assistance — the chances are that the facil
ities, long experience and statewide contacts o f
the First Wisconsin National Bank o f Milwaukee
can supply the answer.
T h is bank is the largest in the state, and over
85 per cent of the hundreds o f banks throughout
W iscon sin are First W iscon sin correspondents.

Banks and Bankers Division
GEORGE T. C A M P B E L L .................................. Vice President
RICHARD J. L A W L E SS....................Assistant Vice President
I)0 \ A L A A. H A R P E R ....................Assistant Vice President

The election of five new vice presi
dents has been announced by Vincent
Cullen, president of National Surety
Corporation and National Surety Mar
ine Insurance Corporation of New
York, following a meeting of the board
of directors recently. The new vice
presidents are:
S.
A. Romolo, in charge of the home
office burglary and marine depart
ments; Frank P. Casey, in charge of
the home office court bond depart
ment; John F. Idler, in charge of the
home office casualty department; E. A.
Luther, St. Louis, Missouri, who will
have general supervision over the area
under the jurisdiction of the corpora
tion’s offices at St. Louis. Indianapolis
and Louisville, and F. A. Brinkman,
Kansas City, Missouri, who will have
general supervision over the area un
der the jurisdiction of the corporation’s
offices at Kansas City, Omaha and
Denver.

BANKERS YOU KNOW
(Continued from page 23)

Mr. Randolph is an Episcopalian,
a Republican, and will tell you that
his principal hobby is trout fishing.
In addition to being outstandingly
human and gifted with a fine sense of
humor, President Randolph can at
tribute his success in the banking
business to untiring efforts and atten
tion to his job. He has a keen mind
and uncanny ability to judge people.
This is backed up by broad experi
ence and an excellent education. He
is a man who has given his full time
and energy to his work and he does
not permit himself to become tied up
in too many outside activities.

Foresight
Flip: Isn’t Nature wonderful?
Flop: Why?
Flip: A million years ago she didn’t
know we were going to wear eyeglass
es, yet look at the way she placed our
ears.

M em ber o f
th e F e 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

Nort hwest ern

Banker, April,

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

1946

43
graduation from the University of
North Dakota.

M in n e s o ta

NEWS
G EO RG E A .
P re sid en t
G on vick

B EIT O

Fills Vacancy
J. M. Dwelle has been elected presi
dent of the Lake City Bank & Trust
Co., of Lake City, Minnesota, to suc
ceed W. J. Cochrane, who died re
cently. Mr. Dwelle was formerly vice
president. W. J. Howatt, a director,
was elected vice president. Emery D.
Zillgitt was promoted from teller to
assistant cashier upon his return from
three and one half years Army service.
All other officers and directors remain
the same.

Return to Kasson Bank
Officers of the Kasson State Bank of
Kasson, Minnesota, welcomed two em
ployes home from the service recently.
They are F. Nordley, assistant cashier,
and C. E. Palmer.

Insurance Manager
Appointment of W. B. Webb, Jr., as
manager of the insurance department
and G. I. Loans is announced by L.
Whitmore, president of the First State
Bank of Wabasha, Minnesota.

W IL L IA M

D UN CA N , Jr.
S ecre ta ry
M inneapolis

Joins Winona Bank
Robert L. Banks, a Lieutenant Com
mander in the Navy, was elected vice
president of the Merchants Bank of
Winona, Minnesota, at the last meeting
of the board of directors. Prior to his
Navy service, Mr. Banks was with the
First National Bank of Superior, Wis
consin.

A new cashier, Leonard Peterson
from Walnut Grove, Minnesota, for
mer associate of Walter Bugge, presi
dent of the Citizens State Bank of St.
James, Minnesota, assumed his duties
at the St. James institution last month.
Before he joined the Citizens State
Bank of St. James, Mr. Peterson served
as assistant cashier of the State Bank
of Walnut Grove. Originally he came
from Brookings, county, South Dakota,
where he and Mr. Bugge were both
connected with the First State Bank at
Sinai. He also has been associated
with the State Bank of Oldham, South
Dakota.

In Veterans Department

After 35 years as an employe of the
National Citizens Bank, of Mankato,
Minnesota, Carrie E. Fowles was hon
ored by 46 directors, officers, employes,
wives and friends at a dinner meeting
at the Burton hotel. Miss Fowles is
retiring under a pension program pro
vided by the bank for her many years
of efficient service.
On behalf of the bank, S. B. Wilson,
Sr., member of the board of directors,
who became a director a few months
after Miss Fowles entered the bank in
1911, presented her with a wrist watch.

John A. Rice, who was released from
active duty in the naval service in
January, has joined the veterans de
partment of the First National Bank
of Winona, Minnesota. This depart
ment was organized several months
ago to serve the interests of returning
veterans. Mr. Rice served 22 months
at sea with the Atlantic and Pacific
fleets, reached the rank of lieutenant
(junior grade), and participated in the
Okinawa campaign and in the initial
occupation of Japan. He was awarded
the American defense ribbon, the Pa
cific theater ribbon with one battle
star and the Victory ribbon.

Chatfield Vet Back

Stillwater Banker Returns

Honor Retiring Employe

After a leave of three and one-half
years for service in the army, Dwaine
Spelhaug is back at his post behind
New Officers
At a meeting of the board of direc the counter of the Root River State
tors of the Houston State Bank of Bank of Chatfield, Minnesota. Mr.
Houston, Minnesota, W. McMillan, for Spelhaug entered the bank in 1939. He
merly cashier, was elected vice presi was assistant cashier at the time he
dent. P. F. Johnson was promoted was given leave by the bank, and he
from assistant cashier to take Mr. Mc now resumes that position. While in
the army Mr. Spelhaug was a tech
Millan’s position as cashier.
nical sergeant in charge of a section
of aerial photography, first in the
Marine Veteran
United States, then in Germany and
T.
V. Zabel, assistant cashier of the France, and, after a 16,000 mile jour
People’s State Bank of Plainview, Min ney, in the Philippine Islands.
nesota, has been discharged from the
Marines and is back at work with the
Rejoins Duluth Bank
bank.
William C. Lontz has returned to
his duties as assistant cashier of the
Enters Minnesota
Bank of Commerce & Savings of Du
J. Dolliver Kent, president of the luth, Minnesota, after three and oneWesterp Mutual Fire Insurance Com half years’ military service. He served
pany of Des Moines, announces that in the U. S. Army finance department
the company has now entered the state at Camp Ripley, Minnesota, and at a
of Minnesota. This makes the seventh prisoner of war camp at Atlanta, Ne
state in which the company operates, braska. He was' honorably discharged
including Iowa, Nebraska, North and as a sergeant. Mr. Lontz joined the
South Dakota, Colorado, Kansas and Bank of Commerce & Savings staff in
1939, coming from Fargo after his
Minnesota.

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

Former Associate

G. C. Welshons, recently discharged
as a Lt. Colonel from the Army, is
back at the Cosmopolitan State Bank
of Stillwater, Minnesota, as assistant
cashier.

Wins Convention Trip
C. H. Ortlip, cashier of the First Na
tional Bank of Winona, Minnesota, is
leaving May 1st for a three week corivention trip won for qualifying in the
state contest sponsored by the Kansas
City Life Insurance Co.

Arne Fremmegard
Arne Fremmegard, 61, manager of
Northwestern National Bank’s foreign
exchange department and former Nor
wegian consul for the Northwest, died
in Fairview hospital in Minneapolis
last month.
Native of Norway, he was a banker
in Oslo before coming to America in
1923. He had been associated with
Northwestern National Bank of Min
neapolis since his arrival. In 1939 he
was made a commander of St. Olav
by King Haakon of Norway, the na
tion’s highest civilian decoration.
Northwestern

Banker, April,

1946

Minnesota News

Farmers Mutual Hail

Diebold Buys York

The Farmers Mutual Hail Insurance
Company of Iowa, which is the oldest
and largest mutual company of its
kind in America, closed the year 1945
with total admitted assets of $3,049,999.
This is a gain of more than $800,000,
as compared with the company’s state
ment a year ago.
The Farmers Mutual Hail Insurance
Company in its current statement
shows surplus as regards policyholders
amounted to $2,312,763.
The company was organized 53 years
ago and writes hail insurance, tornado
insurance, all kinds of automobile in
surance and fire insurance on town
dwellings.

As its sixth major move in the last
ten years to expand its civilian mar
ket, Diebold, Incorporated, has pur
chased the safe and vault business of
the York Safe and Lock Company of
York, Pennsylvania, one of the world’s
largest manufacturers of safes, vaults
and related equipment. The purchase
did not include York’s plant and ma
chinery.

Mr. Ness said manufacturing of the
York line of safes, vaults and related
equipment will continue under the
York Safe & Lock Division of Diebold,
Incorporated. Diebold will also con
tinue to produce and market its long
established lines of safes and vaults
and its many other lines of equipment
under its own name.

In announcing the transaction, Eliot
Ness, Diebold board chairman, said his
firm, effective January 1, 1946, acquired
York’s corporate name, good will, pat
ents, service contracts, unfilled orders,
dies, tools, jigs, fixtures, drawings and
manufacturing processes and methods

It was simultaneously announced
that York Safe and Lock Company had
changed its name to York Industries,
Incorporated, and plans in the future
to manufacture plastic and die casting
machinery, other new contracts and
for contract manufacturing.

for building safes and bank vault
equipment.

Mr. Ness said that the manufactur
ing of safes, bank vaults and related
equipment will be done by Diebold
both in Canton and at York, and that
the former York branch offices and
franchise dealers will operate under
Diebold’s York Safe & Lock Division.

Minneapolis-Moline

The acquisition of the long estab
lished Pennsylvania concern’s prewar
line of products makes Diebold the
largest manufacturer of bank vaults
and fire and burglary resistive equip
ment in the world. It is already one
of the leading firms in the general rec
ords equipment field.

LIGHTEST
p u l l in g

EASIEST
l o a d in g

LOW EST
SPREADED
BUILT

FERTILIZE YOUR LAND
TO KEEP ITS PRODUCING POWER
Is it easy to load? Is it easy to un
load? Does it do a good job o f
spreading all kinds o f manure? Is
it built to last? These are questions
that you will ask when you con
sider buying a spreader. T o all
these questions the answer is YES
when you ask them about the M O
LIN E!
The M O LIN E SP R E A D E R has
always been the first ch oice o f
farmers who demand the best—a
spreader that is light but sturdy,
easy to load, easy to pull and hav
ing sufficient capacity to reduce
tim e and lab or. T he M O L IN E
S P R E A D E R m ore than m eets
these requirements. It is the low
est built spreader on the market.

UP!

Owners say it is the easiest to pull
— even with its large capacity load
of 50 to 60 bushels. You will appre
ciate, too, its ample wheel and bot
tom clearance for flexible operation
even in the roughest fields. The
Moline is equipped with a patented
wide distributor made especially to
do a better job of shredding and
spreading.
Local bankers, cooperating with
the M M Machinery Dealer in their
community, can do much to make
new, modern machinery available
to the farmers in their area, thereby
ben efitin g the com m u n ity as a
whole.

M i n n e a p o l i s -Mo l i n e
POWER IMPLEMENT COMPANY
MINNEAPOLIS l f MINNESOTA, U. S. A.
Northwest ern

Banker, April,

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

1946

Before the war a substantial share
of both the Diebold and York output
of safes, vaults and related equipment
went into foreign markets. Diebold
plans to engage in the export business
more extensively as soon as it can
catch up with the large pent up do
mestic demand.

Four Employes Back
Four former employes of the Stock
Yards National Bank of St. Paul are
back from overseas after four years
service in the army. J. .1. Womack has
been elected assistant cashier in
charge of the G. I. and installment loan
department; Howard Erickson has re
sumed his position as bookkeeper and
Robert Kochendorer is back as utility
man. Gordon Patterson, formerly a
teller with the bank, has taken up new
duties as Minister of the Methodist
Church in Rosemont and Farmington,
Minnesota.

Declares Dividend
The 193rd consecutive quarterly divi
dend of The Northern Trust Company,
Chicago, was declared last month by
the directors. This dividend of $4.50
was payable on April 1st to stockhold
ers of record March 19th.

Minnesota News

The First Edina State Bank has
opened its doors in the Minneapolis
suburb with a gala opening at which
bank officers were hosts to village offi
cials and civic leaders.
The Edina Bank, an affiliate of the
First National Bank of Minneapolis,
occupies a new building in the busi
ness section of the suburb. In keeping
with the style of other business houses
which it adjoins, the bank is of stucco
exterior and modern design. The in
terior gives more the appearance of
a night club than of the old fashioned
banks. Walls are painted green and
cream color and the ceiling a soft pink.
The customers’ floor area is bounded
by a paneling of burled walnut and
desks and wickets are of the same
material.
President of the new bank is Alfred
E. Wilson. Other officers are Malcolm
B. McDonald and Arthur M. Rolfnes,
vice presidents; Eugene W. Oredson,
cashier, and Thomas C. Jackson, assist
ant cashier. Directors are Wilson,
McDonald, Rolfnes, M. O. Grangaard,
vice president of the First National;
and Russell T. Lund of Hove Co., Inc.
The bank has capital and surplus of
$75,000.
Reuben D. Skog, who for nine years
was employed in the mortgage and
legal department of Investors Syndi
cate, has joined the Marquette National
Bank of Minneapolis as assistant to
Paul Peterson, mortgage loan officer.
Before joining Investors’ Syndicate,
Mr. Skog was with the Celotex Co.,
the lnsulite Co., and the Henry Simons
Co. He attended the University of Min
nesota and in 1936 was graduated from
the law school.
Charles E. Cochran, formerly na
tional bank examiner at Fargo, North
Dakota, has joined the First National
Bank of Minneapolis as an assistant
cashier and will serve in the depart
ment of bank and bankers. He has
been in the banking field since he was

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

E. W. KIECKHEFER

Special Correspondent
Northwestern Banker

in high school at Medford, Minnesota,
when he entered the Medford First
State Bank. Later he was with the

an outside farm program conducted
by farm trained field men and officers,”
he said.
Despite the end of the war, war
bonds remain popular in Minneapolis
and Hennepin county. Milton H.
Prince, director for Minnesota of the
treasury’s savings bond division, re
ports that county sales of series E, F
and G bonds during January and Feb
ruary totaled $9,086,309, which was
only 10 per cent below the same
months in 1945.
Twenty directors of the Northwest
Bancorporation were re-elected at the
annual meeting of stockholders.
Dudley R. Mays, who was associated
with Commercial Credit Co. for 17
years before entering the navy in 1942,
has been appointed manager of the
consumer finance department of First
Service Corp., operating affiliate of
First Bank Stock Corp.

CH ARLES COCHRAN
A ssistant Cashier

Northwestern National Bank of Min
neapolis and in 1941 was appointed an
assistant national bank examiner in
the Mankato subdivision.
“Organized banking must support
and finance erosion control and have
a program of balanced cropping and
land use which will maintain and re
store fertility of soil,” A. G. Brown,
director of the agricultural commission
of the American Bankers Association,
told the Minnesota Bankers Associa
tion agricultural committee at its meet
ing in Minneapolis.
“Every country bank should have

Pointing out services offered by their
banks, John Carlander, president of
the State Bank of Faribault, and Roger
Peavey, president of the Faribault
Security National Bank and Trust Co.,
appeared before the Minnesota Com
merce Commission to oppose the ap
plication of Commercial Credit Plan,
Inc., of Minneapolis, for a license to
operate in Faribault.
Among opponents to a similar appli
cation for Brainerd, Minnesota, were
C. H. Berge, president of the Citizens
State Bank; Gilbert R. Tuttle, vice
president of the First National Bank;
H. E. Parker, cashier of the First
National Bank of Wadena; F. L. Hart
mann, executive vice president and
cashier of the American National
Bank of Little Falls; Ben R. Hassman, president of the First National
Bank of Aitkin, and C. J. Elsenpeter,
president of the First National Bank
of Walker.
Northwestern

Banker, April,

1946

Minnesota News

George Perry Flannery, 94, died re
cently at St. Petersburg, Florida. Mr.
Flannery was elected president of the
Northwestern Trust Co. of St. Paul
in 1915 and later became chairman
until he retired in 1928.

Ralph W. Lambert has returned from

overseas service and has resumed his
position as account executive with the
firm in its St. Paul office.
At a recent directors meeting of the
Northwestern State Bank of St. Paul,
W. V. Dorle was elected vice president.
George Dochniah, who has just re
turned from the army, was elected
assistant cashier.

Guy A. Thomas, 71, prominent in
Minneapolis flour milling industry and
an organizer of the old Millers and
Traders State Bank of Minneapolis of
which he was president for seven
years, died recently at Minneapolis.

The Federal Reserve Bank of Min
neapolis has issued a new booklet on
“ The Future of Northwest Bank De
posits,” written by Paul W. McCrack
en, research director of the bank.

J. M. Wallace, Jr., manager of the
St. Paul office of Merrill Lynch, Pierce,
Fenner & Beane, announces that

Mr. McCracken says an analysis of
available evidence would suggest that
for the ninth district as a whole 15 to
20 per cent of current deposits are of
a temporary character. Dollar-wise,
the largest volume of temporary funds
is in Minnesota, but the largest pro
portion to current deposits is in North
Dakota.
“The major conclusions of this story
are in general, reassuring,” McCracken
says. “They are certainly not sur
prising. They suggest that with con
tinued prudence and a modest amount
of good fortune, banks in the ninth
district will not in the years ahead be
facing many of the perplexing prob
lems incident to a shift in deposits
which plagued them in the twenties.”
CORRECTION

A news item in the February issue
the N orthwestern B anker named
P. W. Colbert as assistant cashier of
the First National Bank, Richfield,
Minnesota. We now learn that Mr.
Colbert is assistant cashier of the
First National Bank of Minneapolis,
and not Redfield. We regret the error,
and are happy to place Mr. Colbert in
Minneapolis.
of

A PRIMARY
G

MARKET

overnment

F OR

ecurities

As one o f Chicago’s principal dealeis in U. S.
Go vernment Securities, The Northern Trust
Company has immediate information on all
issues. Orders are quickly executed and investors
are invited to call at all times to discuss market
conditions. Correspondent banks find that the
complete facilities offered by our bond depart
ment is one of the many helpful services o f this
56 year old hank.

BOND D EPARTM EN T

THE N O R T H E R N
T RU ST C O M PAN Y
50 SO U TH LA S A L L E S T R E E T , C H IC A G O 90, IL L IN O IS

New Insurance Benefits
Banks holding membership in the
American Bankers Association have
been notified by the A.B.A. Insurance
and Protective Committee through its
“Protective Bulletin” of important im
provements in the coverages contained
in their blanket bonds soon to be an
nounced by the underwriters and at
no extra cost to the banks.
“Within the next few weeks,” the
committee states in the bulletin,
“banks should receive from their blan
ket bond insurers either endorsements
or revised bonds to give effect without
charge to several improvements pro
posed by the A.B.A. committee.”
One of the improvements is the
broadening of both Number 2 and
Number 24 bonds to cover the out
right loss of furnishings, fixtures, and
equipment caused by larceny, theft,
burglary or robbery. Heretofore only
damage from these causes was cov
ered. Now the coverage is to be ex
tended to cover loss from these causes
as well. It will also be extended to
cover damage caused by vandalism
and malicious mischief.

Member Federal Deposit Insurance Corporation

Telephone Franklin 7070

Northwestern

Banker, April,

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

1946

Bell System Teletype— CG . 368

Another improvement will be clari
fication of the clause covering redemp
tion of U. S. Savings Bonds to include
indemnity for loss sustained through
guaranteeing or witnessing signatures
as well as paying or redeeming Series

Minnesota News
A to E Bonds which have been forged,
counterfeited, raised or otherwise al
tered, or lost, or stolen. Forged sig
natures to requests for payment are
specifically covered.
The Number 24 Bond will also be
broadened to cover the insured bank’s
property while in transit in the cus
tody of a messenger for any other
hank, trust company, or any public
official. With this amendment, the
property of the insured hank will be
covered not only while on the prem
ises of depository banks and public
officials, but also while being trans
ported by messengers of such hanks
and public officials.
In addition, abstracts of title and
ocean, marine and inland marine poli
cies will be specifically added to the
definition of property in the Number
24 Bond.
A rider will be added to the Number
2 Form which will give the same
broad coverage under this form as is
provided in Forms 8 and 24 with re
spect to the loss of subscription, con
version, redemption or deposit priv
ileges through the misplacement of
securities which are found after such
privileges have expired. For instance,
in the event of loss of a warrant car
rying subscription rights to securities,
if it is found after the rights have
expired, the insured bank will he cov
ered for the value of the rights. This
misplacement rider is optional with
Form Number 2 for an additional pre
mium.
The Reinstatement Section in both
Form Number 2 and 24 will be changed
to eliminate the requirement that aft
er discovery of an insured loss a pro
rata premium be paid for reinstate
ment of the insurance for the remain
der of the policy period. This waiver
of reinstatement charge became effec
tive in May, 1945.
Other changes include revision of
Forgery Insuring Clause D which is
optional with Forms Numbers 2, 8,
and 24, to clarify the intent of the
underwriters not to insure under this
clause forgeries of warehouse receipts,
bills of lading, or other title docu
ments. These are insurable under se
curities Insuring Clause E of these
forms which is also optional coverage.
An optional rider will also be made
available to cover as employes under
blanket bonds, attorneys who are re
tained to perform legal services for
insured banks.

Harvester Finance Plan
The International Harvester Com
pany’s plan to finance instalment sales
of farm equipment and other products
by its dealers through local banks is
a big forward step in the consumer

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

credit program in which 12,000 banks
will engage, according to Carl M.
Flora, chairman of the consumer credit
committee of the American Bankers
Association, who is also vice president,
First Wisconsin National Bank, Mil
waukee, Wisconsin. The A.B.A. will
soon distribute a manual on farm
equipment financing to the 13,000 coun
try banks to guide them in making
this type of instalment loan.
The International Harvester Com
pany stated, “We believe that the log
ical man to finance such sales is the
local banker.” For many years the
company has financed a substantial
portion of the time sales of its dealers
under an income purchase plan where
by payments by farmers were ar
ranged to fall due at approximately
the dates on which they sold their
major crops. The company has not
withdrawn this cooperation in financ
ing time sales when the dealer re
quests it.

—--mil A

\VÌ

The C O N T IN E N T A L
BANK

TRUST

COMPANY

of N E W YORK

a m

ie s o n

o m

p a n y

Members

New York Stock Exchange
and

Other Principal Exchanges

★

STOCKS
BONDS
COMMODITIES
MINNEAPOLIS
FARGO
ST. PAUL
GRAND FORKS
DULUTH
SIOUX FALLS
EAU CLAIRE
PRIVATE WIRES

Continental offers the services you would expect of
any good New York corre
spondent . . . plus an un
usual amount of personal
interest on the part of
officers . . . plus a Foreign
Department exceptionally
well established through
out Latin America.
We believe that over the
vears, this can prove to be
your most helpful New
York connection.

30 B R O A D ST., N E W Y O R K 15, N. Y .
Member Federal Deposit Insurance
Corporation

SPECIAL OFFER TO BANKERS
Sickness or Accident Policies paving up to $ 5 0 .0 0 a week
paid up in full to the middle of June, 1 9 4 6, for the small
membership fee.
No medical examination and no red tape— Simply write for
application and literature to

MINNESOTA COMMERCIAL MEN'S ASSOCIATION
2550 Pillsbury Ave. So.

Minneapolis 4, Minnesota

Northwest ern

Banker, April,

1946

Minnesota News
representatives of several large manu
facturers and automobile dealers asso
ciations.

Consumer Credit Loans
Within five years banks will supply
most of the credit used by the average
American to purchase home appli
ances, automobiles or airplanes, and
to enable the farmer and small busi
ness man to buy equipment or to make
improvements, according to Carl M.
Flora, chairman of the consumer credit
committee of the American Bankers
Association, who is also vice president,
First Wisconsin National Bank, Mil
waukee, Wisconsin. This trend toward
bank financing of instalment sales was
reviewed at the executive meeting of
the consumer credit committee held
in Chicago, which was attended by

It was also emphasized by the re
port of a current consumer credit sur
vey on the basis of which it is esti
mated that 12,000 banks located in
every community in the United States
are prepared to make instalment loans.
On the basis of survey figures, it is
indicated that 10,500 of the banks will
make personal loans and that approxi
mately 8,000 banks will finance time
sales of goods and equipment either
direct to the purchaser or indirect
through dealers. Ninety-four hundred
banks will make automobile loans

either direct or indirect, 5,100 banks
will make FHA Title I loans, and
7,900 banks will make modernization
loans to owners of business or resi
dential property. These property loans
will be made direct to owners or in
direct through equipment dealers.

Appoint New Officers
J. Luther Cleveland, president of
Guaranty Trust Company of New
York, has announced the appointment
of Harold F. Anderson, Arthur H.
Kiendl and Russell L. Wardburgh,
formerly second vice presidents, as
vice presidents of the company; Lt.
Col. Guido F. Verbeck, Jr., as assistant
treasurer, and Kenneth S. Stocker as
assistant trust officer. At the same
time, announcement was made of the
reappointment of Coi. Daniel B. Grant,
vice president, and Col. Robert B.
Menapace, second vice president, to
their former titles upon their return
from military leaves of absence.

Plans for 1946 Session

F R E D R IC K S E N
President

E XC E S S LOANS

M . A. W I L S O N
V ic e President

There may be occasions in financing
industry and agriculture in yaur com
munity, when your customer's needs
exceed your legal loan limit.

W . G. N E L S O N
A ssistant V ic e President
W . C. S C H E N K
Cashier
H. C. L IN D U S K I
A ssistant Cashier

In such a case, this bank will be glad
to cooperate with you. Moreover, our
years of specialized service in the live
stock field will prove to be highly bene
ficial to you. Your account is cordially

C. L. A D A M S
A ssistant Cashier
J. S. H A V E R
A ssistant Cashier
J A M E S L. S M IT H
A uditor

invited.

The 1946 summer resident session
of The Graduate School of Banking of
the American Bankers Association will
be held at Rutgers University, New
Brunswick, New Jersey, June 17th to
29th, inclusive, according to the 1946
catalogue of the school which has been
mailed to member banks of the A.B.A.,
G.S.B. students, and others.
Already there are indications of a
record number of applications for en
rollment. However, the student body
of necessity will have to be limited to
600 students, approximately 200 to each
of the three classes. This means for
the new class coming in this year the
first 200 applicants meeting the en
trance requirements will be accepted.
Three new members are to be added
to the faculty this year. They are:
Falkner Broach, vice president, Nation
al Bank of Tulsa, Tulsa, Oklahoma;
Harry C. Culshaw, vice president, The
Pennsylvania Company for Insurance
on Lives and Granting Annuities, Phil
adelphia, Pennsylvania, and Carl M.
Flora, vice president, First Wisconsin
National Bank, Milwaukee, Wisconsin.

Harry Salk Returns

L iv e
N

S t o c k
n a l

S IO U X

CITY,

M E M B E K

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

“J / t e

Northwest ern

Banker. April,

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

IOW A

F, D .l.C .

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

t/ c e

J946

'T fo J u / s

Harry H. Salk has been elected as
sistant vice president of the American
National Bank and Trust Company of
Chicago and placed in charge of the
bank’s real estate mortgage loan de
partment. He formerly served the
bank in this capacity as assistant cash
ier before establishing his own mort
gage firm of Harry H. Salk and Asso
ciates, Inc., last year. Mr. Salk, a
graduate of De Pauw University and
Chicago Law School, is secretary-treas
urer and a director of the Chicago
Mortgage Bankers Association.

Sonili D a k o l a

NEWS
C . O . G O R D ER
P resid en t
Deadw ood

George Starring Returns
George M. Starring, secretary of the
South Dakota Bankers Association,
has resumed his position after a threeyear absence. He returned to Huron
after three years in the army. During
his absence, Mrs. Lois Halvorsen has
been acting as secretary of the Bank
ers Association.

Rapid City Picked
Rapid Citjr, South Dakota, has been
announced as the definite site for the
1946 South Dakota Bankers Associa
tion convention by C. O. Gorder, presi
dent of the association. The Black
Hills meeting will be June 14th and
15th.
The program calls for registration,
golf and a stag party on the first day
and business sessions the second day.
Hotel headquarters will be the Alex
Johnson. H. R. Browning, general
chairman of the convention, and vice
president of the First National Bank
of the Black Hills in Rapid City, re
quests that all those attending please
address reservation requests to him at
the bank. Other accommodations in
clude the Hotel Patton, Hotel Harney
and tourist camps.

Bank for Hill City
The Hill City, South Dakota, bank
ing business, dormant since 1932, was
revived with the filing of a corporate
charter for the Rushmore State Bank
in the secretary of state’s office last
month.
Directors are John E. Loburg, Cus
ter, former cashier of the Harrisburg
State Bank, H. M. Belmont, R. L.
Lockridge, Carroll M. Hare, and J. M.
Clinton, Hill City.
The charter has been approved by
the state banking commission and the
bank will open sometime in April, ac
cording to Verne W. Abeel, Pierre,
state superintendent of banks.

Meet in Brookings
The agricultural committee and offi
cers of the South Dakota Bankers As
sociation met with staff members of
state college and the extension service

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Federal Reserve Bank of St. Louis

G E O R G E M. S T A R R IN G
S e c r e ta r y
Huron

in Brookings, South Dakota, last
month.
A. G. Brown, director of the agri
cultural commission of the American
Bankers Association, New York City,
and Warren Garst, member of the
ABA commission and cashier of the
Home State Bank, Jefferson, Iowa,
were to attend and take part in the
discussion.

Custer Banker Retires
Gordon Dretsch of Fairmount,
North Dakota, began work last month
at the Custer County Bank of Custer,
South Dakota, and will have “on the
job training” under the G. I. Bill of
Rights.
He was discharged from the army in
January after 39 months of service and
the most of that time had been an in
structor with the aviation engineers.
Charles Perrin, cashier, who has
been associated with the Bank since
1907, has retired.

Assumes Presidency
G. C. Winter has assumed his duties
as president of the First National
Bank at Armour, South Dakota, and
his son, Morris Winter, is cashier.
The Winters purchased the controlling
interest in the Armour bank recently.
G. C. Winter resigned his position in
the First National Bank at Parkston
after 30 years of service with that in
stitution. He sold his stock to William
C. Rempfer.
Morris Winter has been assistant
bank manager of the Northwest Se
curity Bank of Brookings and presi
dent of the Junior Chamber of Com
merce. He is a graduate of the Uni
versity of South Dakota.
Superintendent Ray Plowman of
Tripp, South Dakota, public schools
has announced that he will resign at
the close of this school term in May,
and will assume his duties as vice
president of the First National.

Thomas E. Andrews
Thomas E. Andrews, 72, who plotted
the town of Lake Andes, South Dakota,
in 1904 and founded the Lakeside State

Bank, died last month at a Mitchell
hospital.
Born in Holliston, Massachusetts, he
moved, with his family, from Lake
Andes to Toronto, Canada, in 1914,
but returned in 1942 following the
death of his wife and a son.

Receives Discharge
Ronald Campbell, South Dakota
University graduate who received his
discharge from the army air corps at
Westover Field, Massachusetts, Febru
ary 24th, has returned to Vermillion,
South Dakota, and resumed his duties
at the Citizens Bank, where he was
employed before entering the service.
Mr. Campbell, who served as a super
visor in the gunnery training, was sta
tioned at Westover Field for the past
30 month.

Appoint State Director
Walter H. Burke, chairman of the
advisory committee for the Ünited
States Savings Bonds Division for
South Dakota, recently announced the
appointment of Elmer Rustad, Sioux
Falls, as state director for the division.
Mr. Rustad replaces W. K. Beck who
resigned to reenter the employment of
the New York Life Insurance Com
pany.
Mr. Rustad was associated with the
War Finance Committee from 1941
until he joined the Navy late in 1943.
He recently returned from Japan
where he served as a member of the
United States Strategic Bombing Sur
vey.

Joins F.D.I.C.
The Bank of Union County of Elk
Point, South Dakota, has been admit
ted to membership in the Federal De
posit Insurance Corporation. Footings
of the bank, which was organized in
1943, now exceed $2,000,000.

S iou x F a lls N ow s
Four employes of the First National
Bank & Trust Co. in Sioux Falls have
returned from military service and
have resumed their positions in the
institution of which William W. Baker
is president. They are Robert Hahn,
teller, who spent two years in the
navy and won two battle stars; Bill
Mills, teller, 33 months in the army,
two battle stars; Bob Griffith, in charge
of the bookkeeping, proof and transit
departments, 40 months in the army,
one battle star; and Jerry Kopren,
bookkeeper, 36 months in the navy,
serving on the Yorktown in South
west Pacific engagements, 10 battle
stars.
Northwestern

Banker, April,

1946

South Dakota News

M. I. Orms, comptroller of the North
west Security National Bank in Sioux
Falls, is recovering at his home from a
major operation which he underwent
at Rochester, Minnesota. He was in
the hospital for 30 days.
President Ralph M. Watson, of that
institution, accompanied by Mrs. Wat
son, spent a three-week vacation in
Texas and Louisiana.
George Wilkens, representative of
the Federal Reserve Bank of Minne
apolis, attended a meeting of directors
of the bank March 12.
Dr. W. R. Laird, a director of the
same bank, and his wife are enjoying
a vacation in San Diego, California.

C. Arthur Golden, manager and vice
president of the Dell Rapids branch of
the Northwest Security National Bank,
in company with Mrs. Golden, spent a
month’s vacation this winter at Miami,
Florida. While there they visited with
Mr. and Mrs. Herman F. Veenker. Mr.
Veenker is general superintendent of
John Morrell & Co. plants and a direc
tor of the Northwest Security National
Bank, with residence in Sioux Falls.
The executive board of the Sioux
council. Boy Scouts of America, head
ed by William C. Duffy, president of
the Union Savings Bank, Sioux Falls,
met to fix dates and fees for the 1946
summer camping program of the coun
cil. The first camp will open June 9th
at Lake Andes, South Dakota. Mr.
Duffy, as council president, said the
board favored hiring of a new field
executive. It was expected the post
would be filled by April 1st.
Tom S. Harkison, president of the

i l f i w t Ivv

National Bank of South Dakota, Sioux
Falls, commander of Sioux Falls post,
American Legion, presided at a pub
lic initiation of 400 new Legionnaires,
said to compose the largest class ever
received at one time by any veterans’
organization in the city. Under Harkison’s leadership the post’s member
ship has surged past the 2,000 mark.
It aims at signing up 3,000 by the end
of this year.
C. A. Christoph erson, chairman of
the board of directors of the Union
Savings bank of Sioux Falls, is treas
urer of a drive being conducted by the
Minnehaha County Historical society
to raise $5,000 for a pioneer monument
to be built at the northeast edge of the
city.

In Michigan Territory
Russel A. Swaney, former deputy
director, banking division, U. S. Treas
ury War Finance Committee for Michi
gan, has been appointed special repre
sentative of the Federal Reserve Bank
of Chicago and will represent the
bank in Michigan.
Mr. Swaney was in charge of the
banking division in the thirty-five
counties comprising the west half of
the lower peninsula of Michigan dur
ing all of the War Loan and Victory
Loan drives. His work for the Treas
ury was chiefly concerned with the
sale of government securities through
banks.
Prior to joining the Treasury staff,
Mr. Swaney spent fifteen years in the
investment banking business in Grand
Rapids where he will continue to make
his headquarters.

ro-«rf //n n tion

o f all departments assures rapid, efficient han
dling o f every type o f banking transaction. You
are invited to use any or all o f our facilities.

C ity

N a tio n a l

B an k

A M I T H U S T C O M P A N Y o f C hicago
2 08

SOUTH

LA S A L L E

STREET

(M E M B E R F E D E R A L D E P O S I T I N S U R A N C E C O R P.)

Northwestern

Banker, April,

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

1946

Announces Promotions
The Manufacturers Trust Company,
New York, announces the promotion
of Edmund Leone from assistant sec
retary to assistant vice president. A
member of the bank’s personal loan
department, instalment financing at its
29 Broadway office, Mr. Leone’s twen
ty-two years with the Manufacturers
Trust Company were interrupted in
1944 upon entering the United States
Army Quartermaster Corps. Upon re
lease from service he resumed his
duties with the bank.
Mr. Leone, a native New Yorker,
graduated with a B.S.C. degree from
New York University and an L.L.B.
and Masters Degree from St. Lawrence
University. Admitted to the bar in
1934, he has been active in financial
activities, one of which is counsel for
the Esquire Credit Club of New York.

Talks to College Men
M. E. Holderness, vice president,
First National Bank in St. Louis, ad
dressed a large group of college men
at a banquet held in Birmingham, Ala
bama. His subject was the future
place of college men in American civic
life, with special reference to G. I.
men and the obligation of business
leaders and the colleges to give these
men every possible assistance in the
readjustments necessary to resuming
civilian pursuits.

C. L. Howard
C. L. Howard, who was promoted to
vice president of the Continental Bank
& Trust Company of New York, in
1938, after having served seven years
as assistant vice president in charge
of the bank’s foreign department, died
suddenly of a heart attack at his home
in Brooklyn last month. Mr. Howard,
who was well known in foreign trade
circles, had been associated with the
Continental since 1929. He began his
banking career with the National
Union Bank, New York, and when the
National Bank of Commerce took over
the National Union, he continued with
the latter company. Later he served
with the London, Hongkong and
Shanghai offices of the Guaranty Trust
Company of New York, and then went
to Manila, where he served two years,
part of the time with the Guaranty
Trust and part with the International
Bank Corporation. Subsequently he
joined the International Trust Com
pany in New York and when that
organization was merged with the Con
tinental Bank & Trust be continued
with the enlarged institution. He was
chairman of the committee on banking
of the Foreign Commerce Club of
New York.

George O. Colborn

X O I 'f l l

lia i l i O lai

NEWS
A . C . ID S V O O G
P resid en t
G rafto n

F a r g o N ew s
Six Fargo, North Dakota, veterans,
who were employed in banks before
joining the armed forces, have been
discharged from service and have re
turned to the banking profession,
while a seventh, whose discharge
came only recently, is enjoying a va
cation before returning to work.
At the First National Bank, R. J.
Nelson has returned to his duties as
teller, while Lloyd Norling is em
ployed as a field man in instalment
loans and John H. McNair is in the
transit department. Mr. McNair and
Mr. Norling served in the army air
forces, the former being stationed for
a time in India and China.
Leo J. Reiersgord has returned to
the audit department of the Merchants
National Bank and Trust Company
after army service and A. O. McLellan
is assistant trust officer of the same
institution. Mr. McLellan served in
the navy.
Also back from service is Ernest
Vennerstrom, who has become asso
ciated with the Fargo National Bank.
Before entering service he was em
ployed by Merchants National Bank
and Trust Company.
Charles Milander, formerly with Da
kota National Bank, has also been dis
charged from service but has not yet
returned to his bank duties.

Farmers Boost Deposits
Bank deposits for the nation as a
whole have doubled since 1940, but in
North Dakota the deposits multi
plied four and one-half times in the
same period.
Three fourths of commercial bank
deposits in North Dakota are com
paratively solid funds, Paul W. Mc
Cracken, dii’ector of research for the
Federal Reserve Bank in Minneapolis
said in an article entitled “ The Future
of North District Deposits.”
“ Retailers, wholesalers, manufac
turers, farmers and city dwellers—all
owners of the $393,000,000 on deposit in
North Dakota banks—have a vital in
terest in future deposit shifts that
might occur.”
The article said expanded farm earn
ings due both to higher farm prices

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

C. C. W ATTAM
S e c re ta ry
Fargo

and above crop average yields were
primarily responsible for the greater
expansion in North Dakota deposits.

Elected Cashier
The Bank of Steele, North Dakota,
announces the election of Edmund
Wentz as cashier.
Mr. Wentz has recently been re
leased from the Army after two years
of service. One year of this he served
overseas, being stationed at Manila
with the Headquarters Detachment,
Army Forces, Western Pacific.
Before entering into the Army, he
was employed by the Bank of Steele as
assistant cashier.

Heads Loan Department
Richard Heldridge has assumed
charge of the personal loan depart
ment at the Dakota National Bank of
Bismarck, North Dakota. He succeeds
Thomas Kleppe, who resigned March
1st.
In service five years, Mr. Heldridge
served with the First Cavalry division.
He spent six months overseas. He is
a graduate of Sioux City Central high
school and attended the University of
Iowa for four years.
Orin W. Baertsch, who held the rank
of first lieutenant in the air forces,
also has joined the staff of the Dakota
National Bank as a bookkeeper.
Mr. Baertsch is a veteran of 56
months of service and spent one year
overseas where he was a B-26 pilot
with the 12th Air Force.

Sponsor Booth
The First National Bank of Valley
City, North Dakota, and the J. C. Pen
ney company sponsored the OPA “anti
inflation” booth which was seen at the
Armory during the Winter Show in
Valley City last month.

Remodel Bank
Extensive remodeling in the State
Bank building of Kenmore, North Da
kota, was started last month. Interior
changes, principally that of moderniz
ing fixtures have been made. The
front of the building is also to be
changed.

George Oliver Colborn, 58, life-long
resident of the Red River Valley and
widely known in the Northwest as a
Grand Forks, North Dakota, business
man, died in Grand Forks last month
from a heart ailment. Mr. Colborn
was a director of the First National
Bank and the Building and Loan Asso
ciation in Grand Forks. Mr. Colborn
was born in Grafton, attended the Uni
versity of North Dakota and was
graduated from law school there in
1909 with a law degree.

Teller Retires
Mrs. George Hassebrock, employed
at the Security Bank of Hebron, North
Dakota, since 1942 as a teller, resigned
last month to make her home on the
Hassebrock farm.

A.I.B.A. Convention
The twelfth annual convention of
the American Industrial Bankers As
sociation will be held at the Edgewater Beach Hotel, Chicago, Wednes
day through Saturday, May 8th to
11th, it was announced from national
headquarters by Myron R. Bone, exec
utive vice president of the association.
Inactive during the war years in co
operation with the government’s re
strictions on such activities, the 1946
conference will be conducted in con
formity with prewar standards as re
gards program and attendance.
More than 250 industrial bankers,
commercial bankers specializing in the
consumer credit and guests from 38
of the United States, The District of
Columbia, Hawaii and Canada will par
ticipate in the convention sessions
over the four-day period.
The general programs call for the
appearance of speakers of national
prominence and an intensive study of
the many problems confronting indus
trial bankers in the postwar era.

Midwest Correspondent
Raymond J. Bodamer has recently
become associated with the corre
spondent banking department of the
Mississippi Valley Trust Company of
St. Louis.
Mr. Bodamer has been with the bank
since 1926, beginning as a clerk in the
financial department and later serving
in the credit and bond departments,
the auditing department and most re
cently, in the discount and collateral
departments. He will contact bankers
throughout the states of Missouri, Illi
nois and Iowa.
Northwest ern

Banker, April,

1946

★

O F F I C E R S

HERBERT M. BUSHNELL

AUSTIN L. VICKERY
President

ELLSWORTH MOSER

Assistant Vice President

HAROLD T. UEHLING

Executive Vice President

VICTOR B. CALDWELL

Trust Officer

ARTHUR D. ANDERSON

Vice President

RICHARD H. MALLORY

Cashier

JAMES L. SHIELDS

Vice President

THOMAS F. MURPHY

Assistant Cashier

NELS L. SHOLIN

Vice President

CASPER Y. OFFUTT

Assistant Cashier

ELDRIDGE C. McELHANEY
Vice President

EDWARD W. LYMAN

Assisant Trust Officer

HENRY B. PIERPONT

Assistant Vice President

HARRY E. ROGERS

Assisant Trust Officer

LEO M. BROWN

Assistant Vice President

Comptroller

• / / if

U N IT E D S T A T E S
Rational B A N K
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Northwest ern

Bonier, April,

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

1946

Commercial State Bank as cashier and
later as its president.

.W liraska

Forty Years of Banking

NEW S
V.

D O LP H ER

P resid en t
D avid C it y

Buy Palisade Bank
A. J. Baxter has purchased the in
terests of Charles F. W. Bloedorn in
the Frenchman Valley Bank of Pali
sade, Nebraska. Mr. Baxter succeeds
Mr. Bloedorn as president. Mr. Baxter,
V. E. Baxter, Edwin A. Fricke and
Mary Jane Wiggenhorn also purchased
the interests of Barbara and Richard
Elster in the bank. At their meeting
following this purchase, other officers
elected were Carl H. Wiggenhorn, vice
president; V. E. Baxter, cashier, the
position formerly held by A. J. Baxter;
and Elsie Schipman, assistant cashier.
Mr. Bloedorn has been a stockholder
and director of the bank for over 30
years having been president of the
bank the past three years.

Moves to Nebraska
Milo E. Hess, formerly assistant
cashier of the Sioux Valley Bank at
Sioux Falls, South Dakota, has ac
cepted a similar position with the Se
curity State Bank of Allen, Nebraska.
He began his new duties at Allen last
month.
The Security State Bank became a
member of the Federal Deposit Insur
ance Corporation in March.

Growing Pains
Growth of the Hastings National
Bank of Hastings, Nebraska, during
the past few years has made it neces
sary for an expansion program which
will better serve its customers.
Howard G. Pratt, president of the
bank, announced recently that addi
tional building space has been leased
and an expansion program will be
carried out as soon as building condi
tions permit.

North Loup Bank
Twenty-five men who have sub
scribed for stock in the new commer
cial bank being organized in North
Loup, Nebraska, under the name of
North Loup Valley Bank met last
month and elected directors, who in
turn chose officers for the new finan
cial institution.
Directors include Clarence M. Davis,
Orel; F. J. Schudel, Ben Nelson, Her

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

C A R L G. S W A N S O N
S ecreta ry
O m aha

bert Bredthauer and C. W. McClellan.
Officers chosen later are headed by
Mr. McClellan as president, Mr. Schu
del as vice president, and Mr. Nelson
as secretary. Another banker will be
employed as cashier.
The bank is capitalized at $35,000
and steps are being taken at once to
secure a charter so the bank may open
for business, which may take several
weeks or months. Plans are to liqui

1 9 4 6

N eb ra sk a 6 roup
M e e tin g s
GROUP TW O
April 22— Fremont
GROUP THREE
April 22— Norfolk
GROUP FOUR
April 23— Hastings
GROUP FIVE
April 24— Lexington
GROUP SIX
April 25— Alliance
GROUP ONE
April 26— Lincoln
Special Train Accommodations for
the meetings at Hastings, Lexing
ton, Alliance, and Lincoln will be
furnished.

date the present cooperative credit as
sociation which has been serving this
community and the new bank will oc
cupy its quarters.

Hugh B. Campbell
Hugh B. Campbell, 71, well known
resident and banker at Clay Center,
Nebraska, died suddenly at his home
last month.
A resident of Clay Center since 1884,
Mr. Campbell, until his retirement two
years ago, was associated with the

J. J. Novak of Wilber, Nebraska,
cashier of the Saline State Bank, was
presented a self-winding wrist watch
by the bank’s board of directors on
completion of his 40th year at the bank
last month. The directors are E. W.
Miskell, Steve Herman, A. W. Fridrich, Joseph Cerny and Otto Novak.

Cashier Resigns
E. R. Logan, who has been cashier
of the Seven Valleys State Bank of
Callaway, Nebraska, for the past 18
years, has resigned and at the present
is taking a few weeks vacation.

Southeast Bankers Meet
Nearly 100 bankers from Jefferson
County and neighboring Nebraska
counties met at the Mary Etta hotel
in Fairbury last month for a dinner
meeting followed by discussion of
banking problems.
R. W. Trefz of Beatrice, president
of the southeast Nebraska regional
clearing house association, and presi
dent of the Beatrice State Bank, pre
sided during the meeting and intro
duced members of the panel who pre
sented discussions on “ Consumer
Credit” and other timely topics of
interest to bankers. Members of the
panel were Dean Vogel, vice president
of the Live Stock National Bank, and
John Lauritzen, assistant cashier of
the First National Bank, both of
Omaha, and Fred Aldrich, vice presi
dent of the Continental National Bank
of Lincoln.

Pay Dividend
The Citizens State Bank of Arapa
hoe, Nebraska, has announced a divi
dend of 10 per cent on all certificates
of subscription, which were issued as
per agreement of depositors and stock
holders on April 20, 1933. This divi
dend makes a total of 90 per cent paid
on these certificates, and 96 per cent
of the total amount of deposits as of
March 3, 1933.

Burglars Enter Bank
Burglars cut a large hole in the
vault door of the Blue River Bank of
McCool Junction,
Nebraska, last
month and stole a small amount of
money.
The burglars pried open a back win
dow to enter the bank according to
R. F. Lord, cashier.
Some change was missing from the
till and from a shelf inside the vault,
but the loss was not expected to exceed
$150.
Northwestern

Banker, April,

1946

Nebraska News

Four locked boxes belonging to in
dividuals also were pried open but the
owners had not reported their losses.

Â.B.A. Will Meet in Chicago

The 72nd Annual Convention of the
American Bankers Association will be
held in Chicago September 22nd to
Vote to Form Bank
25th, inclusive, it was announced by
Members of the Crofton, Nebraska, Merle E. Selecman, secretary of the
Cooperative Association met last association. Official convention head
month and voted for liquidation of the quarters will be at the Stevens Hotel.
With the convention being planned
Association and establishment of a
bank to be known as the Crofton State for this fall, the A.B.A. will resume
Bank, which will be under the juris the annual meetings of its members
diction of B. N. Saunders. The Asso which were interrupted last year at
ciation was formed 13 years ago during the request of the Office of Defense
the depression with Joseph P. Kuehn Transportation because of the military
as secretary-treasurer. At the election, requirements of railroads.
Hosts for the 1946 convention will
188 of 189 votes were cast in favor of
liquidation and formation of a bank. be member banks of the Chicago Clear
ing House Association. Solomon A.
Smith, president of The Northern
Trust Company of Chicago, and chair
man of the clearing house committee,
has extended the invitation in behalf
of the Chicago Clearing House banks.
Mr. Smith will serve as chairman of
the general convention committee.
John J. Anton, vice president of The
First National Bank of Chicago, will
serve as chairman of the executive
committee. Mr. Anton served as vice
chairman of the executive committee
C O M M E R C IA L
in 1944 when the association held its
B A N K IN G
convention in Chicago. The person
nel of the Chicago convention commit
D O M E S T IC A N D
tee will be announced later.

T he

N ew Y ork T rust
C om pan y

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To give banks complete information
about procedures in making loans to
veterans in accordance with the new
regulations issued by the Veterans
Administration, effective March 1st,
the American Bankers Association has
mailed to the 15,000 banks of the
United States a 30-page handbook en
titled “Outline of General Administra
tive Procedures and Policies, Title III,
Servicemen’s Readjustment Act of
1944.” This handbook has been writ
ten as a guide for the processing of
loan reports and will aid the banks in
providing quick and efficient service
needed by veterans. It was printed
and distributed by the A.B.A. commit

tee on service for war veterans, of
which Chester R. Davis, vice president
and trust officer, Chicago Title and
Trust Company, Chicago, Illinois, is
chairman.
Enclosed with the handbook is a
15-page pamphlet containing the regu
lations under Title III of the Service
men’s Readjustment Act of 1944 and
samples of the nine forms which may
be used in processing the various clas
sifications of loans.

Seeks Capital Increase
Approval of the sale of 100,000 new
shares of common stock at $15 per
share was to be asked of the stockhold
ers of the Valley National Bank of
Phoenix, Arizona, at a special meeting
to be held in Phoenix March 20th. The
$1,500,000 increase in capital, which has
been recommended by the board of
directors, would bring the Valley
Bank’s total capital structure to ap
proximately $8,500,000.
“ The rapidly continuing growth and
expansion of the Valley Bank war
rants the proposed increase in capital
funds,” stated Walter R. Bimson, pres
ident. “ This is in line with our policy
to increase the capital structure as
deposits increase.”

W. J. Lippincott
William Jackson Lippincott, vice
president of the Bankers Trust Com
pany of New York, died last month at
Hobe Sound, Florida. He was born
in 1891 in Findlay, Ohio. He was grad
uated from the Hotchkiss School in
1910 and from Yale University in 1914.
Following his graduation from Yale
he entered business with Hallgarten
& Company and in 1918 became presi
dent of the Lippincott Glass Company,
which position he held until joining
the Bankers Trust Company in 1924.
He remained with the Bankers Trust
Company until the time of his death
and was in charge of the credit and
security research department. He was
a member of the finance committee of
the Eagle Star Insurance Company.

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Banker, A p r U y 1946

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Federal Reserve Bank of St. Louis

Nebraska News

solved by peaceful means,” Mr. Mc
Dermott declared in his address.
Lieut, and Mrs. George F. Downing
have been visiting Mrs. Downing’s
parents, Mr. and Mrs. David F. Davis,
in Omaha. The couple left for Whit
tier, California, to make their home.
Lieutenant Downing is on terminal
leave from the Army. He served in
Europe. Mrs. Downing’s father is
vice president of the Omaha National
Bank.
Mr. and Mrs. Emmett Solomon and

Donald M. Larson, manager of the
Small Loans Department of the First
National Bank of Omaha, has been
elected president of the City Improve
ment Council of Omaha. He succeeds
Mrs. Paul Gallagher, resigned.

their daughters, Sue and Ann, will
make their home in Honolulu, where
Mr. Solomon was stationed during
part of his Army service. Before the
war, he was assistant trust officer of
the First National Bank of Omaha.
Mr. Solomon served as a colonel un
der Maj. Gen. Louis Hershey, director
of Selective Service.

Mrs. Frank N. Clarke, 73, widow of
Frank Nelson Clarke, former Omaha
hanker, died recently at Mansfield
Center, Connecticut.

Major Gen. William G. Livesay, new
commander of the Seventh Service
Command at Omaha, recently pre
sented to J. F. McDermott, vice presi
dent of the First National Bank of
Omaha, the Legion of Merit for his
service in activities of the Army Fi
nance Department. Colonel McDer
mott was director of the savings pro
motion division of the Seventh Serv
ice Command from 1942 to 1945. He
also went on Army missions to Eu
rope and China.
The citation to him was presented
at an Army orientation dinner in
Omaha, when General Livesay met
civic, business and educational leaders
from Nebraska and South Dakota. Mr.
McDermott was chairman of the pro
gram.
Mr. McDermott, veteran of both
world wars and recipient of the
Knighthood of St. Gregory, also spoke
recently at a reception sponsored by
the Knights of Columbus at Hastings,
Nebraska, given for service men from
that area.
“The Russian question must be

She had lived there for five years,
since her return from France in 1940.
Previously, for 17 years, she and her
daughter had lived at Chateau Maulny,
St. Soupplets, Seine sur Marne and at
Monte Carlo.
When the Germans invaded France
in 1940, she and her daughter joined
the refugee march to Lisbon, Portugal,
where they boarded the last ship to
America.
Mrs. Clarke was a member of a
pioneer Omaha family. She was the
daughter of the late John B. Detweiler
and attended Hollidaysburg school at
Hollidaysburg, Pennsylvania. Her hus
band died in 1932.
Major Phyllis L. Propp, former at
torney with the Federal Land Bank
of Omaha, is the only lawyer in the
WAC assigned to Judge Advocate
duty overseas. She is chief of the
Military Affairs Branch in the ETO
and is stationed at Frankfurt, Ger
many. She is a graduate of the Uni
versity of Iowa and her home is at
Waterloo, Iowa.

NATIONAL BANK
M ILTO N TO OTLE, JR.
P R E S ID E N T

M ILTO N TOOTLE, III
V IC E P R E S ID E N T

Mr. and Mrs. Wallace E. Spear have
announced the engagement of their
daughter, Miss Barbara Lee Spear, to
William Beeson Webster, son of Mr.
and Mrs. John Potter Webster of
Omaha. The bride-to-be’s father is
trust officer of the First National Bank
of Omaha.
Edgar M. Morsman, Jr., Omaha at
torney, has been re-elected a director
of the Northwest Bancorporation,
Minneapolis.
W . B. Millard, Jr., vice president of
the Omaha National Bank, is chair
man of the Ak-Sar-Ben committee in
charge of the World’s Fair of Aviation
to be held in Omaha from July 18
through July 21. The Fair will be
held in conjunction with the first post
war convention of the National Aero
nautic Association. Proceeds of the
Fair will go to Service Aid Funds and
to Ak-Sar-Ben’s civic and educational
funds.

Also on the committee are H. M.
president of the United
States National Bank of Omaha, and
James P. Lee, former Omaha banker,
now an official of the Omaha and
Council Bluffs Street Railway Com
pany.
Bush nell,

The whole town celebrated recently
when Springfield, Nebraska, near
Omaha, opened a new bank.
The town had been without a bank
since the old American State Bank

ST. JOSEPH, MO.

R. E. WALES
C A S H IE R

G R A H A M G. LACY

E . H. SCHOPP

FR E D T . BU RRI

E . L. CRU M E

V IC E P R E S ID E N T

ASST. C A S H IE R

A SST . C A S H IE R

A SST. C A S H IE R

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Federal Reserve Bank of St. Louis

M e m b e r Federal D eposit
Insurance Corporation

Northwest ern

Banker, April,

1946

Nebraska News

closed in 1931. And, until the new
Springfield institution was opened, the
Banking House of A. W . Clarke at
Papillion was the only bank in Sarpy
county, which once had eight banks.
State Bank of Springfield is the
name of the new institution. The
president is Taylor Jarman, retired
implement dealer. Otto Nielsen, re
tired farmer, is vice president. C. R.
Caley, the cashier, has been Sarpy
county assistance director for 14
years. He was a clerk in the old
Springfield bank. Directors are Springfield business men.
The new concern uses the old bank
building. As part of the celebration

marking the opening of the bank, free
motion picture shows were held, there
was a free lunch in the Community
Hall and a jubilee dance in the eve
ning.
After reigning longer than any
other Ak-Sar-Ben monarch, King W.
B. Millard, Jr., will relinquish his
throne next October 25, when the first
Ak-Sar-Ben Ball since 1941 will be
held. Queen Alice Jeannette Meyer,
now Mrs. Charles Foster Brown, Jr.,
of Chicago, has resigned as Mr. Mil
lard’s consort. Mr. Millard is vice
president of the Omaha National
Bank.

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F irs! St. *lose|»li
STOCK YAR D S RANK
South St. Joseph, Mo.
O FFICERS
Frazer L. Ford, President
J. A. Greenfield, V ice President
M. E. Blanchard, Asst. Cashier
Thos. J. McCullough, V ice Pres, and Cashier
Louis J. Kom er, Asst. Cashier

“ ONLY BANK IN T H E Y A R D S ”
Member Federal Deposit Insurance Corporation

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Banker, April,

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Federal Reserve Bank of St. Louis

1946

The famed event was discontinued
during the war years.
Charles I). Saunders, vice president
of the First National Bank and presi
dent of the Omaha Chamber of Com
merce, underwent an emergency ap
pendectomy recently at St. Joseph’s
Hospital in Omaha.
Mr. and Mrs. John F. Davis and
their children, Carol and Tommy, ex
pected to be back in Omaha about
March 18 after a month’s trip. The
Navy lieutenant, who has been on
leave from his duties as vice president
of the First National Bank of Omaha
during his service, was discharged at
San Francisco recently. He was joined
there by his family in November.

A. W. Gordon, Jr., discharged Air
Force lieutenant has returned to
Omaha and he and his wife have
been busy unpacking their household
goods. They have been visiting Mr.
Gordon’s parents, Mr. and Mrs. A. \V.
Gordon, since his return. Mr. Gordon,
Sr., president of the Omaha Loan and
Building Association, also recently re
turned from active service.
Among institutions in Omaha which
sent representatives to a recent meet
ing at which plans were discussed for
formation of a Foreign Trade Associa
tion were the United States National
Bank and the Live Stock National
Bank.

Mrs. Dale Clark, wife of the presi
dent of the Omaha National Bank, was
in charge of music for the World Day
of Prayer ceremonies planned for
March 8 at the First Methodist Church
in Omaha. Mrs. Clark also was among
the soloists.
The Nebraska War Finance Com
mittee has been dissolved. This was
announced recently with the resigna
tion of Dale Clark as its chairman.

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S tock Y a rd s N ational B an k

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Federal Reserve Bank of St. Louis

O m aha, N ebrask a
M E M B E R ,

F .

Northwestern

Banker, April,

1946

Nebraska News

Mr. Clark, president of the Omaha Na
tional Bank, recently was cited by
Governor Griswold of Nebraska for
his service in War Bond drives.
Allen T. Hupp, secretary of the
Omaha Associated Retailers, has been
appointed chairman of the Nebraska
Advisory Committee to the United
States Savings Bond Division of the
Treasury Department.
This group
will replace the War Finance Com
mittee.

Twenty-five years ago, according to
Omaha newspaper files, all Omaha

bankers stood together in refusing to
reveal “salaries of all officials of bank
ing institutions” as ordered by John
Skelton Williams, then comptroller of
the currency.
Included among Omaha bankers of
that day were J. H. Millard of the
Omaha National, John L. Kennedy of
the United States National, F. H.
Davis of the First National, Fred
Hamilton of the old Merchants Na
tional, W. S. Weston of the old Peters
National, L. N. Lord of the Live Stock
National and H. C. Nieolson of the
Packers National.

he entered the armed forces, attaining
the rank of major.
Mr. Sutphen is also a trustee of the
Aiherican Savings Bank of New York.

Expense
A sales manager summoned one of
his men to his office and asked:
“What’s this big item on your expense
account?”
The salesman replied: “ My hotel
bill.”
“Well,” advised the s.m., “don’t buy
any more hotels.”

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Installation of an after-hour depos
itory has been completed at the Wash
ington County Bank, of Blair, Nebras
ka. and the new service is now in use.

Appoints Veteran
N. Baxter Jackson, president of the
Chemical Bank & Trust Company of
New York, announces that Henry R.
Sutphen. Jr., has joined the staff of
the bank and will be associated with
Huntington M. Turner, vice president,
in handling the bank’s business in the
middle western states, including Michi
gan, Illinois, Wisconsin, Minnesota,
Iowa, Nebraska and the Dakotas.
Mr. Sutphen graduated from Prince
ton University in 1924 and received
his early banking training with the
Bankers Trust Company in New York.
In 1936 he became a partner in the
firm of Hackney, Hopkinson & Sut
phen. members of the New York Stock
Exchange, in which he was active until

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St. Paul

Northwestern

Minneapolis

Banker, April,

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Federal Reserve Bank of St. Louis

1946

Milwaukee

Chicago

Indianapolis

Detroit

Nebraska News
has been in contact with Insurance
underwriters recently who feel that if
this practice is put into effect all over
the United States and given proper
public attention, that it will be possible
to reduce rates on bank burglary in
surance.

HE National Bank of Commerce of
Lincoln, through its president, By
ron Dunn, is contacting all its corres
pondent banks urging them to take
prevehtive measures against burglary
and robbery. Constructive suggestions
offered by Mr. Dunn include the co
operation of local law officers, planting
of marked money in money drawers
and safes so as to identify and prose
cute the robbers, and carrying as small
an amount of money as possible.

Another suggestion offered is record
ation of money as recently authorized
by the Treasury Department. Under
this latter method, the Treasury has
authorized all banks and banking in
stitutions to make a film record of
money, such as is possible with Recordak machines, provided these films
are kept confidential.
Mr. Dunn suggests that those banks
who have local enforcement officers
or a sheriff, make arrangements with
them to watch the banker enter his
bank in the morning, when he leaves
at night and check occasionally during
the day. This would forestall any rob
bers trying to enter the bank when
the doors are opened or at closing
time. Mr. Dunn also advocates cor
respondent bankers checking to see
if they have enough burglary and rob
bery insurance.
The National Bank of Commerce is
carrying this a little further by writ
ing its correspondents that it will be
willing to film for the ones who do
not have a Recordak, some currency
and keep a record of it so that it will
be possible to tell where any particular
numbered currency came from in case
of a robbery. Mr. Dunn says that he

Maj. Myron Weil, now on terminal
leave and back at his duties at Na
tional Bank of Commerce, has just re
ceived word that he has been awarded
the bronze star medal for service per
formed on Saipan from February 12
to September 2, 1945. He was supply
officer with the 23d replacement depot.
His citation relates that he “estab
lished plans and formulated depot
policies for a speedier schedule of de
pot construction” and that his “per
petual diligence and loyal devotion
to duty gained much time for training
of troops” soon to go into action as
replacements.

Stockholders of the Citizens State
Bank, St. Mary, Nebraska, have voted
to place the institution in voluntary
liquidation by discontinuing to receive
deposits after May 1st, State Banking
Director J. F. Peters announced re
cently.
The move was made because of the
failing health of the president and
active manager, H. C. Schumann, Mr.
Peters said.
No effort was made to sell the bank
or to merge it with another. The in
stitution was opened for business July
16, 1908, with Mr. Schumann as cash
ier. It now has a capital structure of
approximately $30,000 and deposits of
more than $550,000.

Bank Women to Meet
The Lake and Mid-West Divisions of
the Association of Bank Women,
which comprise the states of Illinois,
Indiana, Michigan, Ohio, Wisconsin,
Iowa, Kansas, Missouri, Nebraska,
North and South Dakota and Minne
sota, will hold a combined regional
meeting at Hotel Nicollet in Minne
apolis, Minnesota, on April 27th and
28th, in celebration of the 25th anni
versary of the Association of Bank
Women.
Miss Helen Knox, president of the
association and manager of the wom
en’s department, Chase National Bank
of New York, Grand Central Branch,
will be the guest of honor.
Public relations will be the general
theme of the program, which will be
announced later.

Lesser of Vivo Evils
“Why is it that, being a southerner,
you always vote the Republican tick
et?”
“Well, I never saw the word ‘Demo
crat’ in the Bible, but I’ve read about
the ‘Republicans and sinners,’ so I
guess the sinners must be the Demo
crats!”

Horse Sense
A sailor and his girl were riding out
in the country on horseback. As they
stopped for a rest the two horses
rubbed necks affectionately.
“Ah, me,” said the sailor. “That’s
what I’d like to do.”
“Well, go ahead,” answered the girl,
“ it’s your horse.”

APRIL 1946
W e invite you to take advantage
of our close, personal contacts in
Lincoln, when you wish special
service in Nebraska's capital city.

C o n t in e n t a l R a t io n a l

BaHk
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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 ELO C K EXPERTS

F. E. DAVENPORT &CO.

LIN C O L N

Member Federal Deposit Insurance Corporation

OM AHA

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Federal Reserve Bank of St. Louis

Northwest ern

Banker, April,

1946

THE

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Banker, April,

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Federal Reserve Bank of St. Louis

1946

I ow a

NEWS
FR A N K W A R N E R
Secreta ry
Des M oines

F. L. S A W Y E R S
P residen t
C e n te rv ille

Assistant Examiner
Wilbur J. Heimerman, son of A. J.
Heimerman, cashier of the Stacyville
Savings Bank, Stacyville, Iowa, has
been appointed Assistant National
Bank examiner, with temporary head
quarters in Minneapolis, Minnesota, in
the Ninth Federal Reserve District.
He previously had served in both the
Pacific and European Theaters of War.
Before returning home he attended a
University in England for eight weeks.

pilot in the Navy. He served in the
Pacific with an air-sea rescue squad
ron.

Melvin W. Ellis Dies
Melvin W. Ellis, 64, Iowa state super
intendent of banking since 1941, died
last month in Des Moines.
Mr. Ellis fell while visiting in
Charles City, Iowa, where he was born.

Joins A. B. A.
Eighteen banks from 11 states and
Canada became members of the Amer
ican Bankers Association recently, ac
cording to R. L. Dominick, president
of the Traders Gate City National
Bank. Kansas City, Missouri, who is
chairman of the organization commit
tee. Among the new banks is included
the Oelwein State Bank of Oelwein,
Iowa, which opened recently with W.
Palmer Wilson as president.

Navy Vet Back
Homer Monk recently returned to
his duties as assistant cashier of the
Benton County Savings Bank of Nor
way, Iowa, after serving as an Ensign

Building Apartments
The Security State Bank of Allerton,
Iowa, is remodeling the second floor
of its bank building into two apart
ments to help meet a housing shortage.
A forced air oil burning heating unit
is also being installed, according to
W. F. Kesterson, cashier.

Medal of Honor
Each member of the Iowa War Fi
nance Committee’s statewide organiza
tion has been awarded a medal in rec
ognition of services rendered in the
eight war loan drives. The medals
were sent by the U. S. Treasury De
partment to the chairman of the Iowa
War Finance Committee for distribu
tion to committee members and all
who aided in the drives.

Remains With Bank
Wray Wilson, vice president of the
Farmers Savings Bank of Massena,
Iowa, rounded out 38 years of asso
ciation with D. P. Hogan recently when
the latter sold his interest in the bank
and resigned as president. Mr. Wilson
has been with the bank since 1908.
A. J. Cruise was elected president of
the bank at its reorganization meeting,
and Mr. Wilson was re-elected vice
president.

probably was caused by a blood clot on
the brain, resulting from his injury.
He began as assistant cashier of the
Security Trust & Savings Bank of
Charles City when it was organized in
1903 by members of his family. Later
he became vice president and presi
dent.
In 1919, Mr. Ellis was made vice
president of the First National Bank
of Charles City. When the two banks
were consolidated in 1929, he became
president and director. The name,
Security Trust & Savings Bank, was
retained.
In the Iowa Bankers association, he
was Group 3 secretary from 1919 to
1921, Group 3 chairman from 1921 to
1923, state vice president in 1928 and
president in 1935.

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M E L V IN

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He returned to Des Moines and had
been going to his office for a week be
fore continued pain led him to go to
the hospital.
An X-ray revealed he had suffered
a hip fracture. Doctors said death

The Iowa Bankers Association’s
statewide “spot” radio advertising cam
paign was begun early last month with
a statement from Association Presi
dent F. L. Sawyers, president of the
Centerville National Bank of Center
ville, Iowa. The second broadcast car
ried a message from Chairman E. F.
Buckley, president of the Central Na
tional Bank and Trust Company of
Des Moines. A chart giving time, loca
tion and radio station of each broad
cast has been sent to all members of
the Iowa Bankers Association.

D id you know that adoption o f our Cash Letter

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Cash Letter transcripts and keep only a duplicate
adding machine tape? Ask us tor details.
I n s u r a r .e e C o u n s e lo r s to B a n k s

FIRST

NATIONAL

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Federal Reserve Bank of St. Louis

BANK

BUILDING

• CHICAGO

ILLINOIS

• STATE

4 3 2 5

Northwest ern

Banker, April,

1946

Iowa News

William L. Ayers
William L. Ayers, 56, vice president
of the Morningside State Bank of Sioux
City, Iowa, died last month in Hot
Springs, Arkansas, on his way to Cali
fornia.

Named Comptroller
W. Harold Brenton of Des Moines,
president of the eight Brenton banks
in Iowa, has announced the appoint
ment of Charles S. Johnson, executive
vice president of the First National
Bank of Perry, Iowa, to a newly estab
lished post of comptroller of the Bren
ton banks.

Mr. Johnson, who will continue as
head of the Perry Bank, will develop
and maintain the financial services of
the Brenton banks, Mr. Brenton said.

Heads Hardin County
T. L. Greenleaf, vice president of the
Hardin County Savings Bank, Eldora,
Iowa, was elected as president of the
Hardin County Bankers Association at
a meeting of bankers in Iowa Falls.
He succeeds W. A. Roberts of Iowa
Falls, who is moving to Nebraska. Mr.
Greenleaf has served the association in
this capacity before and has also held
responsible positions in the district
groups.

Veteran Purchases Bank
Dwain Loyd has bought the controll
ing interest in the Climbing Hill Sav
ings Bank of Climbing Hill, Iowa. Mr.
Loyd will take over his duties as cash
ier of the institution on May 1st. The
bank also has a branch at Oto, Iowa.
Mr. Loyd was connected with the
banking business in the Hornick Sav
ings Bank at Hornick, Iowa, before his
entry into the service. He served two
years in the Navy.
The Climbing Hill bank is capital
ized at §45,000 and carries a deposit of
about S:50,000. Mr. McClaron, who
sold his interest to Mr. Loyd, has been
connected with the institution since
1917. There are two employes be
sides the cashier at the bank, and one
lady takes care of the branch at Oto.

1946
Iow a iirnup
M e e tin g s
TO D A Y, AS EVER—

HEADQUARTERS
FOR YOUR
NORTHEASTERN IOWA
BUSINESS

GROUP FIVE
May 7— Council Bluffs
GROUP SIX
May 8— Marshalltown
GROUP SEVEN
May 9— Cedar Rapids
GROUP TEN
May 10— Ottumwa
GROUP THREE
May 14— Mason City
GROUP TW O
May 15— Fort Dodge
GROUP FOUR
May 16— Dubuque
GROUP EIGHT
May 17— Muscatine

Osceola Bank to Move

WATERLOO
Member— Federal Reserve System
Federal Deposit Insurance Corporation

Northwest ern Banker, April,

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

1946

The Clarke County State Bank of
Osceola, Iowa, will move to the bank
building now occupied by the Clarke
County Farm Bureau, about June 15th.
it was announced by R. K. McGee, vice
president of the bank. The interior of
the big room will be completely re
equipped to make it one of the finest
banking rooms of any city of this size
in Iowa.
The bank recently became the own
er of the building through an exchange
of its present building for the larger
structure.

William Henry Field
William Henry Field, 62, former
Farmington, Iowa, and West Des
Moines banker, died last month in his
home in Ottumwa.
A bank officer at Farmington for
several years, he then became a bank

78 Years of

Specialized Experience

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Federal Reserve Bank of St. Louis

HIS B A N K has been closely identified with the live

stock industry in Chicago for more than three-quarters

o f a century. W e know the importance o f speedy transmis
sion o f proceeds o f live stock sales and for years have had
these credits in the hands o f M idwest bankers the next day.
This is only one o f our many services used by bankers
throughout the M iddle West.

LIVE STOCK
BANK
ESTABLISHED

1868

UNION STOCK YARDS

David H. Reimers,

President

M em ber Federal Deposit Insurance Corporation

Northwest ern

Banker, April,

1946

Iowa News

examiner, and later cashier, vice presi
dent and finally president of the Val
ley Junction Savings Bank. He also
served as city treasurer and mayor of
Valley Junction before the town’s
name was changed to West Des
Moines.
During World War II he served as
field agent for the United States Ma
sonic service at several military posts.
He is survived by his mother.

Office Manager
L. W. Novotny of Toledo, Iowa, is
now office manager of the V. C. Peter
son Company in Marshalltown, Iowa,
realty and mortgage banking firm.
Novotny has spent 17 years in the
banking business, having been assist
ant cashier of the National Bank of
Toledo for many years, prior to his
induction into the armed forces in
1942. He spent three years in the
finance department of the Army Air
Corps, being in charge of the financ

ing operations in connection with the
expansion of the Army Air Corps fields
in Texas, Oklahoma and the Dakotas.
Novotny will have direct charge of
the mortgage banking department of
the Peterson Company.

Safe Deposit Boxes
A total of 36 new safety deposit
boxes have been received at the First
State Bank of Thornton, Iowa. When
the new boxes are installed in the
vault, the bank will have 285 boxes
in use.

Assumes Presidency
At the regular monthly meeting of
the board of directors of the Manning
Trust and Savings Bank of Manning,
Iowa, Raymond B. Mulder was elected
president and a member of the board
to succeed Henry A. Boysen, retiring
president, who has held the post for
20 years.
At the same time it was announced

STATEMENT OF CONDITION
March 30, 1946
RESOURCES
Cash and Due from B - n k s .............................................................................................S 3 .7 2 4, 43 2. 8 3
Loans and Discounts..........................................................................................................
2 ,1 1 6, 16 0. 0 0
Bends
U. S. Government Securities.............................................. $ 6 ,6 36 ,2 82 .9 8
Municipal S ec ur it ie s.............................................................
1 65 .1 8 0. 88
Other Marketable Securities............................................. 1, 81 0,773.21
8.61 2 237 .07
Stock in Federal Reserve Bank.
Banking House ..........................
Furniture and Fixtures.............
Accrued Interest ........................
Overdrafts .....................................
Other Resources ..........................

1 8 .0 0 0 . 0 0

37 ,3 74 .7 4
257 .96
47 ,5 48 .6 9
711.78
6,34 8.09

$ 1 4 ,5 6 3, 17 1. 1 6
LIA B ILITIE S
Capital
..................................................................................................................................$
40 0,0 0 0. 00
Surplus ..................................................................................................................................
2 00 ,0 0 0. 00
Undivided Profits ...............................................................................................................
51 008.77
Reserve for Texes, Interest, Ccntin- encies, Et c .......................................................
27 ,3 05 .5 4
Discount Collected but Not Earned.............................................................................
11 ,2 18 .3 0
Depo its
Demand
....................................................................................$ 8, 7 9 4 ,1 1 6 .9 2
Time
......................................................................................... 4. 052,151.51
U. S. Government W r r Loan Ac count ........................... 1 .0 2 7 , 3 7 0 .1 2 13 8 73 ,6 3 8 55

that Herbert L. Roberts of Carroll was
employed to assist Henry E. Meyers,
cashier, with the duties in the institu
tion.
Under the new arrangements at the
bank, officials besides Mr. Mulder who
comprise the board, are: H. E. Mey
ers, cashier; Dr. J. .1. Sinn, Peter F.
Hansen and Henry J. M. Hansen.

Moves to Grinned
Fred A. Wolfe of Shannon City,
Iowa, has accepted a position in the
Poweshiek National Bank of Grinnell,
Iowa. Prior to his coming to Grinnell
Mr. Wolfe had farmed for a year near
Shannon City. He is a graduate of
Simpson College, and for eight years
was superintendent of schools at Ox
ford, Iowa.

Elect Returning Men
At a meeting of the board of direc
tors of the Washington State Bank
of Washington, Iowa, Charles Barclay
was re-elected to his former position
as assistant cashier and Logan Heil
man, formerly a teller in the bank,
was also elected an assistant cashier.
Mr. Barclay has been on leave of ab
sence with the Red Cross and Mr. Heil
man has been serving in the army as
a finance officer. No other changes
are being made in the bank force.

Teller Resigns
Lester L. Kivlahan, who has been
the teller in the Cascade State Bank
of Cascade, Iowa, for the past ten
years, has resigned his position. Ad
rian Kurt, veteran of World War II,
has accepted employment in the bank.

$ 1 4 ,5 6 3, 17 1. 1 6

Joins Perry Bank

NATIONAL BANK

FIFTH AVENUE
SOUTH-226-

L & r i f c n , ¡9 cru u t.

Member o f The Federal Deposit Insurance Corporation

Announcement was made last month
that Harry T. Edwards of Wever,
Iowa, has accepted a position with the
First National Bank of Perry, Iowa.
Mr. Edwards has had considerable
experience in banking and was serving
as cashier of the Farmers Savings

M r. Banker:
Do you know that EVERY MONTH

MORE BANKS become subscribers to

D. A . S. AGRICULTURAL DIGEST

/
Northwestern Banker, April, 1946

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

There is no other agricultural information service just like it.
For sample releases and further information write to

Doane Agricultura! Service, Inc.

Have It!

Box 603, 206 Plymouth Bldg.
Des Moines 9, Iowa
Home

Office— St.

Louis

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Federal Reserve Bank of St. Louis

* . DES M OINES....
Our Complete
Facilities and
Sincere Interest
Assure the Finest
Correspondent Service

AT FOURTH AND WALNUT, DES MOINES
F rederick M. M orrison, President
W infield W . Scott, Senior V ice President
J. R. A stley, V ice President
Edward P. Kautzky, V ice President
R oy E. Huber, V ice President
F. M. Thom pson, Cashier
R ay L . Thom pson, A sst. V ice President
Carl W . A ltm an, Asst. Cashier
George W . Gill, A sst. Cashier

M e m b e r

F e d e r a l

D e p o s i t

I n s u r a n c e

C o r p o r a t i o n

Northwestern

Banker,

April,

1946

Iowa News

Bank of Wever at the time he left to
go into service in 1943. He served as
a navy lieutenant and spent 16 months
in the Pacific war theater, where he
was executive officer aboard an LST.
Mr. Edwards was discharged from the
navy February 14th of this year.

the United States Navy, where he at
tained the rank of lieutenant.

eral Deposit Insurance Corporation as
a bank examiner.

N e w A s s is t a n t C a s h ie r

A t G fid d en Bank

H. B. Jacobson, former lieutenant
in the finance department of the U. S.
Army, is the new assistant cashier of
the Dallas County State Bank of Adel,
H e a d s Lo an D e p a rtm e n t
Iowa, taking the place made vacant by
H.
E. Long of Whitten, Iowa, has the recent resignation of A. F. Agena,
taken charge of the Consumers Loan now located at Baxter, Iowa.
Department of Hardin County Savings
Mr. Jacobson, previous to his en
Bank of Eldora, Iowa, which depart listment in the army, was engaged in
ment was formerly conducted by the the banking business at Story City,
late S. R. Dyer. Mr. Long recently Iowa, for a number of years but re
returned from three years service in signed to take a position with the Fed

Kenneth Sherer, who has recently
been discharged from the army, has
taken a position with the First Na
tional Bank of Glidden, Iowa.

D ES

M O IN E S

N EW S

Scott Pidgeon, vice president of the

Bankers Trust Company, attended a
meeting in Kansas City of the Missouri
Valley chapter of Robert Morris Asso
ciates, of which he is the retiring presi
dent. O. H. Elliott, assistant vice
president of the First National Bank
of Omaha, was elected president for
the coming term.
Edward P. Kautzky, vice president
of the Valley Bank and Trust Com
pany attended the meeting with Mrs.
Kautzky.
Bob K. Popple, former lieutenant
in the Navy, is back with the Bankers
Trust Company as teller in the re
ceiving department. Mr. Popple served
in both Pacific and Atlantic Theatres
of war.

Remodeling of the Central National
Bank and Trust Company is progress

"F irst” for Banks
F o r more than 80 years promptness, efficiency,
and friendly contacts have characterized The
First National Bank o f Chicago relationship with
correspondent Banks.
These qualities have been developed by an
intimate knowledge and appreciation o f the
problems and the needs o f out-of-town banks.
H ow successfully The First o f Chicago has met
the requirem ents o f correspon den t banks is
attested to by the ever increasing number o f
banks that take advantage o f the complete facili
ties available to them at The First.
Your bank is cordially invited to make this bank
your Chicago correspondent.

The First National Bank
of Chicago
Growing with Chicago and the Nation Since 1863
MEMBER

Northwestern

B anke r,

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

April,

FEDERAL

1946

D E P O S IT

IN S U R A N C E

CORPORATION

ing rapidly. Complete new quarters
equipped with air conditioning and
fluorescent fixtures will be occupied
by the bookkeeping department. Of
fices of the Trust department on the
second floor are nearly finished. The
employes lunch room and recreation
hall, now occupied by the collector of
internal revenue, is also being re
modeled and will be open soon.
Russell Mote has returned to the
Valley Bank and Trust Company after
52 months of service in the Air Corps.
His latest post before returning to the
United States was Shanghai, China.
Another employe who returned the
first of the year after overseas service
in England, Robert Hewitt, welcomed
his English-born bride to Des Moines
recently. The charming Mrs. Hewitt
arrived in the United States last month
aboard the ship which brought a num
ber of British war brides.
E. F. Buckley, president of the Cen
tral National Bank and Trust Com
pany, and Mrs. Buckley will attend the
Reserve City Bankers convention in
Palm Beach, Florida.

The Iowa State Bank announced the
establishment of a new loan service
department, specializing in farm and
chattel loans, and the appointment of
Forest T. Lewis as its manager.
Mr. Lewis recently was discharged

Iowa News
from the army after four years in the
anti-aircraft command. Previously he
was for nine years with the State Bank
of Terril, in charge of farm, chattel
and commercial loans.
Major Don R. Withington, assistant
cashier of the Central National Bank
and Trust Company, has returned to
duty with the above institution. Mr.
Withington has been on leave of ab
sence for four years having served as
observer with the 10th Army Air Force
in the Burma-China-India Theater of
operations.

A n n u al E x h ib it Book
The Financial Advertisers Associa
tion has distributed its fourth annual
Exhibit Book of financial advertising
to member banks throughout the coun
try. The organization comprises some
1,100 members representing the adver
tising and public relations fields of the
nation’s banks.
This year’s book is somewhat larger
than the previous issues, consisting of
323 pages and containing the advertise
ments of 157 banks and other financial
organizations. It was prepared by a
committee of which John J. Lawlor,
of the National City Bank of New
York is chairman, and W. Leroy Ward,
Jr., executive vice president of the
Fidelity National Bank of Baton
Rouge, Louisiana, is vice chairman.
Chester L. Price, advertising and pub
licity manager of the City National
Bank and Trust Company of Chicago,
prepared the index of subjects.
The Exhibit Book was conceived
originally four years ago when the an
nual conventions of the association
were discontinued due to war condi
tions. Even though the conventions
have now been resumed, the Exhibit
Book is being continued on account of
its popularity among the association’s
members.

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

S q u a re D eal In su ra n ce C o.

S a v in g s Bond C h a irm a n

Total assets of the Square Deal In
surance Company (Mutual) of Des
Moines are now in excess of $1,000,000.
The company in its December 31, 1945
statement showed a total of $1,059,183.
The company has policyholders sur
plus of $850,000 with a contingent re
serve of $163,448.
As additional protection to policy
holders, the Square Deal carries a
quarter of a million dollars of rein
surance.
It is the largest exclusive hail insur
ance company operating in Iowa and
Missouri.

I.
A. Long, vice president of the Mer
cantile-Commerce Bank and Trust
Company, St. Louis, has been ap
pointed by W. W. Head, chairman for
the state of Missouri, as chairman for
Metropolitan St. Louis of the United
States Savings Bond Division of the
Treasury Department. As chairman
of the St. Louis district, Mr. Long will
have charge of the activities concerned
with the continuing sale of Savings
Bonds, particularly to individuals, and
the furtherance of the pay roll savings
plan.

ou it mtmm
The First National Bank in Sioux City has
connections in the principal reserve cities of the
United States.

Through us, you benefit from

these contacts.
The quality of these connections is an im
portant factor in First National correspondent
service.

J. P.
Fritz
J. T.
J. R.

W e cordially invite your account.

A. G. Sam,
Hainer, Vice President
Fritzson, Vice Pres, and Cashier
Grant, Assistant Cashier
Graning, Assistant Cashier

President
E. A. Johnson, Assistant Cashier
R. E. Gleeson, Assistant Cashier
Harold H. Strifert, Assistant Cashier
W. F. Cook. Auditor

NATIONAL
BANK
*

★

/// S/oesx C/fif
Northwestern

Banker,

*
April,

*
1946

Iowa News

H a n k ers M eeiin tf

Banks Sold or Bought!
quietly, quickly and in a personal manner

J AY A. W EL CH
BANK BROKER
Haddam. Kansas
“37 Years Practical Banking Experience”

KOCH

BROTHERS
TELEPHONE

+4224

i,
BUSINESS SUPPLIES j
AND EQUIPMENT ■
]
FOR

FOURTH and CRAND
DES MOINES

DES MOINES BUILDING-LOAN &
SAVINGS ASSOCIATION
Oldest In Des Moines
210 6th Ave.

Dial 4-7119

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

H U B E R T K. J A M E S
A sst. Sec.

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

THE G. I. LENDING PROGRAM was the topic of a panel discussion headed
by these three speakers at the Iowa Mortgage Bankers Association’s annual con
vention held in Des Moines recently. They are, left to right, John McGill, head
of the mortgage department of the Equitable Life Insurance Company of Iowa ;
Walter T. Robinson, Iowa Loan Guarantee officer for the Veterans Administration,
and Fred H: Quiner, vice president of the Central National Bank and Trust Com
pany, all of Des Moines.

N E W S A N D V IE W S
(Continued from page 23)
what a relief to find at least one pub
lic official who is reducing taxes.
In the play “Apple of His Eye,”
Walter Huston falls in love with his
neighbor’s daughter, Mary James, who
is keeping house for him while his
housekeeper of many years is away.
Each night Walter drives three miles
and takes Mary home, but when the
hired man, played by Roy Fant, in
quires how the romance is progressing,
Walter Huston as Sam Stover says:
“Oh heck, I can’t get nowhere in just
three miles.”

Listen to the
“ W O R L D O F M U S IC ”
K R N T , 1350 K C

1 to 1 :30 p.m . Sundays

The Town Club at 123 West 43rd
Street is another interesting place to
dine and we had dinner there with
Trevor Arnett, former president of the
General Education Board, and Mrs.
Arnett, our cousins. In addition to the
“Town Hall Meeting of the Air” on
Thursday nights, there are many
activities sponsored by the Club in
cluding evening classes in Music, Art,
Poetry, Travel and Languages. These
are called “Town Hall Workshops”
and in the announcement it says: “ In
considering Town Hall Workshops en
rollment, you will want to bear in
mind that our fees are very low—$5
for each entire series—and that there

are no formal admission requirements.
We have many college graduates tak
ing our courses, and we have a number
of students with only elementary
school education. We also have a few
Ph.D’s. Instruction is popular and
informal and everyone is invited to
participate in the general discussions
which are an important part of all
Workshop courses.
There are no
quizzes and no examinations.”
Mrs. Sara Delano Roosevelt left an
estate valued at $1,412,263.33, according
to a judicial settlement filed recently.
The major share of the estate, $940,500, goes to the estate of Franklin 1).
Roosevelt.
The executors also re
ceived $87,652.51 income from stocks
and bonds accumulated since Mrs.
Roosevelt’s death. Mrs. Roosevelt’s
estate was valued at $1,098,872 in a
state tax appraisal shortly after her
death on September 7, 1941. Onetenth of the cash and $51,539.38 in bank
deposits in Mrs. Roosevelt’s estate are
left to the President’s wife, Mrs.
Franklin 1). Roosevelt and his chil
dren.
Included in the assets are the James
Roosevelt Memorial Library and a
small house in Hyde Park, $8,250;
property at Campobello, New Bruns
wick, Canada, $12,750; bond and stocks,
$755,050; mortgage and notes, house-

Scarb orou gh & C om pany
I n s u r a n c e C o u n s e lo r s to B a n k s

D a/ you know that this company pioneered in putting
Bank Insurance on a scientific basis and forcing
rate reductions? A sk us about our counseling service.

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Federal Reserve Bank of St. Louis

F I R S T N A T I O N A L B A N K B U I L D I N G • C H IC A G O
STATE

4325

IL L .

Iowa News
hold furnishings, jewelry and personal
property, $12,376.30.
Federal taxes on the estate amount
to $185,898. State taxes are $46,045.
If the State Tax Department holds that
President Roosevelt, as Commanderin-Chief of the armed forces, died in
service, some of the income from the
estate would be tax exempt.
The combined Boards of Governors
of the World Bank and Monetary
Fund, which met at Savannah, Geor
gia, voted salaries of $30,000 each to
the president of the Bank and the
managing director of the Fund, $17,000
to each of the twelve executive direc
tors of each institution and $11,500
each to their alternates.
The governors decided that the di
rectors and alternates must devote all
their time to the Bank and Fund and
that their salaries should be paid on
a “ net” basis, reckoning deduction of
taxes. # #

S to c k h o ld e rs E le c t
Stockholders of the Benton County
Savings Bank met and elected the fol
lowing officers for 1946: President,
E. M. Williams; vice president, H. O.
Schloeman; cashier, Prentiss G. Folvag; assistant cashiers, Homer Monk
and Mary Schulte.
The following directors were also
elected: E. M. Williams, H. O. Schloe
man, Michael Brecht, John C. Schulte
and William A. Schulte.

F
F a r m e r s M u t u a l H a il I n s u r a n c e C o ........ 3 8
F e d e r a l I n t e r m e d i a t e C r e d it B a n k s .........32
F i r s t N a t i o n a l B a n k — C h i c a g o ..................... 66
F i r s t N a t io n a l B a n k — O m a h a ........................56
F i r s t N a t i o n a l B a n k — S i o u x C i t y ...............67
F i r s t St. J o s e p h S t o c k Y a r d s B a n k ............ 56
F i r s t W i s c o n s i n N a t io n a l B a n k ................... 42

II
H a l s e y S tu a r t an d C o m p a n y , I n c ............... 35
H a m m e r m i l l P ap er C o m p a n y ...................... 2 2
H o m e I n s u r a n c e C o ............................................ 3

Bankers:
We specialize in writing
automobile and fire insur
ance.
Special bank service and
attractive p ro p o sitio n for
banker agents.

I n v e s t o r s S y n d i c a t e ......................................... 35
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 ................................................ 72
I r v i n g T r u s t C o m p a n y ...................................... 4

.1
K
K och B rothers

★

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

L a M o n t e , G e o r g e an d S o n ............................. 5
L a w r e n c e W a r e h o u s e C o m p a n y ................... 27
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 ..................... 68
U v e S t o c k N a t i o n a l B a n k — C h i c a g o .......... 63
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 .............60
L i v e S t o c k N a t io n a l B a n k — S io u x C i t y . .48

CENTRAL STATES MUTUAL
INSURANCE ASSOCIATION
Mt. Pleasant, Iowa
E.

N
N a t io n a l B a n k o f W a t e r l o o ...........
N a t io n a l Cash R e g i s t e r C o m p a n y
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 . .............

62
25

54
46

O
O m a h a N a t io n a l B a n k ......................

APRIL, 1946

S q u a r e D eal I n s u r a n c e C o m p a n y .................40
St. P a u l T e r m i n a l W a r e h o u s e C o r p ............ 58
S c a r b o r o u g h and C o m p a n y .................37-61-6S
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 n .............. 39
S t o c k Y a r d s N a t io n a l B a n k — O m a h a . . . . 57

B a n k o f A m e r i c a ................................................. 30
B a n k e r s T r u s t C o m p a n y — D es M o i n e s . . .71
B an kers Trust C om pan y— N ew Y o r k . . . . 6
B u r r o u g h s A d d i n g M a c h i n e C o m p a n y . . . 29

W ILSO N ,

Secretary

1929

MERCHANTS
MUTUAL

BONDING
COMPANY
incorporated 1933

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S O U T H E R N S U R E T Y B U IL D IN G

Renter, M it c h e ll & R e itz e l, I n c ..................... 34
R u s s e l l C o u n t y B u i l d i n g an d L o a n .......... 34

A D V E R T IS E R S

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 ..............40
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 Co. .28
A n c h o r C a s u a l t y C o m p a n y ............................. 39

President

Es tablished

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 . . . 69
M e r c h a n t s N a t i o n a l B a n k ............................. 2
M inneapolis M oline P o w e r Im plem ent
C o m p a n y ............................................................. 44
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 ............47

HAYES,

P h i l a d e l p h i a N a t io n a l B a n k ......................... 7
P u b l i c N a t io n a l B a n k an d T r u s t C o ..........58

IN D E X OF

69>

Des Moines, Iowa

•
This is Iowa’s oldest surety company.

A progressive company with experi
enced, conservative management.

T e n s i o n E n v e l o p e C o r p o r a t i o n . ................... 41
T h o m s o n & M c K i n n o n ....................................... 34
T o o t l e L a c y N a t io n a l B a n k ..................... 54-55

We are proud of our hundred and
fifty bank agents in Iowa.

U
U n ited S ta te s N a t i o n a l B a n k ....................... 52

Central N ational B an k and T ru st C o .. . . 1 2
C e n t r a l S ta tes M u t u a l I n s u r a n c e A ssn . . . 6 9
C h a s e N a t i o n a l B a n k ........................................ 8
C i t y N a t io n a l B a n k — C l i n t o n ........................ .64
C i t y N a t io n a l B a n k a n d T r u s t C o m p a n y
— C h i c a g o ........................................................... 50
C o n t i n e n t a l B a n k an d T r u s t C o m p a n y . . 47
C o n t i n e n t a l N a t i o n a l B a n k — L i n c o l n . . . . 59

V a l l e y B a n k an d T r u s t C o m p a n y ...............65

To be the exclusive representative of
this company is an asset to your bank.

•

W r it e to

W a l t e r s , C h a r le s E., C o m p a n y .................... 5 8
W e lc h , J a y A .........................................................68
W e s s l i n g S e r v i c e s .............................................. 69
W e s t e r n M u t u al F i r e I n s u r a n c e C o ..........36

E. H. WARNER
Secretary and Manager

D a v e n p o r t , F. E. a n d C o m p a n y ........... 59-67
D e L u x e C h e c k P r in t e r s , I n c ......................... 41
D e s M o in e s B u i l d i n g , D oan a n d S a v i n g s
A s s o c i a t i o n ......................................................... 68
D i s t r i b u t o r s G r o u p I n c .................................... 33
D o a n e A g r i c u l t u r a l S e r v i c e ............................ 64
D o w n e y , C. L. C o m p a n y ...................................58
D r o v e r s N a t i o n a l B a n k ..................................... 26

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

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C o u n . s e

S e r v ic e s
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B a n k

Plan to use an ad vertisin g program of
w ell w orded m essa g es crea ted
by
W es slin g S er v ices , D e s M oin es, Iow a

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

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Northwestern

B anke r,

-io w o ,

April,

1946

In the
D I R E C T O R ’S
ROOM
Tailor Made

Some Job

Graduates

What does the bride think when she
walks into the church? “Aisle. Altar,
Hymn.”

A clergyman advertised for a man
servant. The following day a young
man called on him.
“Well,” asked the clergyman, “can
you light the fire and bring early
morning tea at seven?”
“ I—I think I could,” replied the
young man, puzzled.
“Can you work in the garden?” went
on the clergyman. “ I mean, can you
mow the lawn and prune trees and
dig?”
“Well—er—yes. I think so,” stam
mered the other.
“Can you polish silver, look after a
dog, and be generally useful about the
house?” asked the clergyman.
The young man nodded.
“And drive a car?” wound up the
clergyman. “And—”
“ I say, sir,” interrupted the young
man hoarsely. “ I came here to consult
you about getting married. If I have
to do all that, it’s off!”

The marble tournament was in full
fury. One little boy had missed an
easy shot, and let slip a real cuss word.
“Edward!” called a preacher from
the spectator’s bench. “What do little
boys who swear when they are playing
marbles turn into?”
“Golfers,” was the reply.

Short and Street
A speech should be like a woman’s
skirt . . . long enough to cover the
subject but short enough to be inter
esting.

Their Own Fault
Uncle John says that women who
swear they have never been kissed cer
tainly can’t be blamed for swearing.

Caught in the Act
According to the tale, the professor
in a college in Scotland was giving a
demonstration of the properties of var
ious acids.
“Now,” he said, “ I am going to drop
this two-shilling piece into this glass of
acid. Will it dissolve?”
“ No, Sir,” replied one of the stu
dents.
“ No?” said the demonstrator. “Then
perhaps you will explain to the class
why it won’t dissolve.”
“Because,” came the answer, if it
would you wouldn’t drop it in.”

Familiar Words
A family with a summer cottage in a
wild region in Wisconsin bought blue
berries from an Indian for several
years at 50 cents per pail. Last year he
upped the price to $1.00.
“Why?” asked the vacationists.
And the Indian replied: “Big war
some place.”

Forgotten Hero
And here is a note of warning from
one of the new veterans: “Fellows,”
writes he, “after being discharged from
the army, keep your uniform on as
long as possible. I got my discharge,
went home a hero, took off my uni
form, and now all I am is my wife’s
husband again.”

Perseverance
“What is your son going to be when
he passes his final examination?”
“An old man.”
Northwestern

Banker,

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

April,

1946

C O N V E N T IO N S
April 14-16, A. B. A. Executive Coun
cil, French Lick, Indiana, French
Lick Springs Hotel.
May 1-3, Illinois Annual Convention,
St. Louis, Jefferson Hotel.
May 7-17, Iowa Group Meetings.
May 20-22, Missouri Annual Conven
tion, St. Louis, Jefferson Hotel.
May 23-25, National Association of
Bank Auditors and Comptrollers,
Ninth Annual Mid-Continent Re
gional Meeting, Milwaukee, Hotel
Schroeder.
May 27-28, Regional Savings and Mort
gage Conference, Des Moines,
Hotel Fort Des Moines.
June 11-14, American Institute of
Banking, Cincinnati.
June 12, Iowa Junior Bankers, Des
Moines, Hotel Fort Des Moines.
June 12-13, Minnesota Annual Conven
tion, Minneapolis, Hotel Nicollet.
June 14-15, South Dakota Annual
Meeting, Black Hills.
June 17-18, North Dakota Annual
Meeting, Fargo, Gardner Hotel.
June 19-20, Wisconsin Annual Conven
tion, Milwaukee, Hotel Schroeder.
September 9-11, Iowa Annual Conven
tion, Des Moines, Hotel Fort Des
Moines.
October 7-10, Financial Advertisers
Annual Convention, San Fran
cisco.

Helj) for Bill
The touring company gave a per
formance of “King Lear,” and the local
critic wrote: “ If Shakespeare could
have seen his play performed he would
have turned in his grave.”
Next night the same company did
“ Othello,” and the leading a cto r
thought he had made a hit this time,
until he opened his paper and read:
“We thank the company at the Buskin
Theatre. Shakespeare is now on his
back again.”

Easily Remedied
The owner of a number of houses
was never at a loss for an answer, or
a remedy, when faced with a complaint
about one of his houses.
One day a tenant came to him in a
fiery temper.
“ Look here,” he snapped, “you’ve got
to do something about my place. I
don’t pay rent to live in a pigsty. Why
there’s even grass coming through the
floor-boards in the dining room.”
“ We’ll soon settle that,” said the
landlord, after a while. “ I’ll send a
man around with a lawnmower right
away.”

A Good Thing
Jimmy: “Daddy says there isn’t an
other woman in the world like you,
Momma.”
Mother: “ That’s very flattering of
him.”
Jimmy: “And he says it’s a good
thing, too.”

Some Pup
Mother: “ So you’re not afraid to go
to the hospital—that’s a good little
boy.”
L.B.: “But I ain’t gonna let ’em
palm off a baby on me like they did
you—I wanna pup!”

Under present conditions, shouldn't we increase some o f these reserves1
Let's check that point
with the Bankers Trust.
Their latest statem ent
shows a substantial
increase in reserves.

That’s the right answer. In counseling with you on the conservative handling of re
serves— or in any of the other important ways in which a Des Moines correspondent
can give valuable service to your bank, we welcome an opportunity to be helpful.

BANKERS TRUST
C O M PA N Y ï r desM
OINES
M em ber Federal D eposit In s. Corp.

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

M ember Federal R eserve System

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

AIID GOVERnmEOTAL CEATER Of I0UIA
Most Iowa Banks find it advantageous to have a correspondent
connection in Des Moines . . . the financial and governmental
center of Iowa.
Both Federal and State governments collect large sums at Des
Moines from various sources of taxation and postoffice
receipts. State agencies disburse millions of dollars annually
to all parts of Iowa through offices in the capital city.
State checks circulated in Iowa are cleared most conveniently
and quickly through Des Moines.
This Bank is completely equipped to handle your Des Moines
account. May we serve you?

A Strong Dependable Correspondent Connection

Member Federal

Insurance

ahon
V.

Full text of The Northwestern Banker : April 1946, 51st Year, No. 705

FRASER