Full text of The Northwestern Banker : April 1947, 52nd Year, No. 717

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A P R IL
1947
M il« * I

Consumer
Credit— Page

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

GROUNDWORK FOR A PROSPEROUS 1947 ON THE FARM

Qualified to Serve You
Because of our extensive contacts with all lines of
business and hundreds of banks in the mid-west, this
bank is well qualified to serve as your Iowa corre
spondent.
You are invited to use this institution for the prompt
and efficient handling of your items.

A Cedan, (lapidi ßank

MeàiUouna AU douta

THE
MERCHANTS NATIONAL
— BANfr
O F F I C E R S
JAMES E. HAMILTON, Chairman Executive
Committee
S. E. COQUILLETTE, Chairman of the Board
JOHN T. HAMILTON II, President
H. N. BOYSON, Vice President
ROY C. FOLSOM, Vice President
MARK J. MYERS, Vice President and Cashier
GEORGE F. MILLER, Vice President and
Trust Officer
MARVIN R. SELDEN, Vice President
FRED W. SMITH, Vice President

R. W. MANATT, Assistant Cashier
L. W. BROULIK, Assistant Cashier
PETER BAILEY, Assistant Cashier
R. D. BROWN, Assistant Cashier
O. A. KEARNEY, Assistant Cashier
STANLEY J. MOHRBACHER, Asst. Cashier
EVERETT C. PRATT, Assistant Cashier
C. F. PEREMSKY, Assistant Cashier
VICTOR W. BRYANT, Assistant Cashier
WALLACE S. HAMILTON, Building Manager

Cedar Rapids

Iowa

Member Federal Deposit Insurance Corporation

Northwestern Banker, published monthly by the Northwestern Banker Company, at 527 Seventh Street, Des Moines Iowa Subscription 35c
per copy. $8.00 per year. Entered as Second Class Matter January 1, 1895, at the Post Office at Des Moines, Iowa, under Act of March 3, 1879.

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Federal Reserve Bank of St. Louis

18 5 3

THE HOME

1 9 4 ,7

STATEMBST OF CONDITION
December 31, 1946
ADMI TTED ASSETS
Cash in Office, Banks and Trust Companies
United States Government B o n d s .........................................................................................
43,379,489.51)
All Other Bonds and S t o c k s ...................................................................................................
84,651,631.82
First Mortgage L o a n s ....................................................................................
176,651.51
Real E s t a t e ................................................................................................................................
3,497,218.16
Agents’ Balances Less than 90 days d u e ................................................................................
10,291,747.65
Reinsurance Recoverable on Paid L o sse s................................................................................
1,856,152.43
Other Admitted A s s e t s ................................................................................* ........................
1,819,592.74
Total Admitted A sse ts....................................................................................................$177,414,558.10

LIABILITIES
$ 78,273,559.00
21,691,968.40
3,944,218.20
3,696,078.76
948,521.81
$108,554,346.17

Reserve for Unearned P r e m iu m s .............................................
Reserve for L o s s e s .....................................................................
Reserve for Taxes
.....................................................................
Liabilities under Contracts with War Shipping Administration
Reserve for Miscellaneous A ccou n ts.............................................
Total Liabilities Except C a p ita l...................................

C a p i t a l ...................................................................................
Surplus ....................................................................................
Surplus as Regards Policyholders..........................................

$15,000,000.00
53,860,211.93
$68,860,211.93
$177,414,558.10

T o t a l ...............................................................................

QjmectoK-i
L ewis L. C larke
Banker
C harles G. M eyer
The Cord Meyer Company
W illiam L. D e B ost
President, Union Dime
Savings Bank
W ilfred K urth
Chairman of the
Finance Committee
E dwin A. B ayles
Dennis, Mass.
G ordon S. R entschler
Chairman of the Board,
National City Bank
of New York
R obert G oelet
Real Estate
G eorge M cA neny
President, Title Guarantee
& Trust Co.

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Federal Reserve Bank of St. Louis

G uy C ary
Lawyer
H arold V. S mith
President
H arvey D . G ibson
President, Manufacturers
Trust Company
F rederick B. A dams
Chairman of the Board,
Atlantic Coast Line
Railroad Co.
R obert W . D owling
President, City
Investing Co.
G eorge G und
President, Cleveland
Trust Co.

N O T E : Bonds carried at $4,413,915.98 amortised value and cash $50,000.00
in the above statement are deposited as required by law. A ll securities have
been valued in accordance with the requirements of the National Associa
tion of Insurance Commissioners. On the basis of actual December 31st
market values total Admitted Assets would ba increased to $182,244,632.08
and the Surplus to Policyholders would be increased to $73,690,285.91.

*THE HOME*

H arold H. H elm
First Vice President,
Chemical Bank &
Trust Co.

NEW
FIRE

YORK

AUTOMOBILE

MARINE

Each Bank’s Business
is Different

Recognizing this The New York Trust Company is equipped to adapt
its services accurately to your bank's particular requirements

do fu ll justice to the needs of a given correspondent bank, the officers of
The New York Trust Company, in close contact with the most important commercial
and financial affairs o f our
measure and adjust this

time, both here and abroad,
A " p
/ •\ •

bank’s facilities to fit

4ER|P

facilities include every

those needs. These
type o f recognized

banking service.

Commercial Banking

T he
N ew Y ork T rust

and Loans
Foreign Banking
t

Executor and Trustee

C ompany

Services
Investment Review

io o

Broadway

Accounts

Madison Avenue and 40th Street

Custody Accounts

Ten Rockefeller Plaza

Corporate Trusteeships
and Agencies

M em ber o f Federal Deposit Insurance Corporation

Nort hwest ern Banker, April, 1947

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Federal Reserve Bank of St. Louis

• For Sam ple s of La M onte Saie ty Paper s e e your
L i t h o g r a p h e r or P r i n t e r —or w r i t e us d ir e c t .

S A F E T Y PAPER FOR CHECKS
GEORGE LAMONTE & SON, NUTIEY, NEW JERSEY

A Check Paper AH Your Own
W hy not follow the lead of America's out
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sorting time - helps prevent errors.

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Federal Reserve Bank of St. Louis

Northwest ern Banker, April, 1947

COLLECTION SERVICE
When banks send their checks, notes and drafts to us for
collection they are assured of prompt and dependable
service—twenty-four hours a day.
Modern, high-speed machines, plus careful work by
experienced personnel, insure the earliest availability of
the proceeds of all items.
We welcome inquiries from correspondent banks and
others with a view to securing full benefit from mail and
express schedules, both rail and air, and thus further expe
dite the handling of items forwarded to us for collection.
You are cordially invited to visit us at your conven
ience. We will be glad to show you
how deposits are processed to insure
maximum speed of presentation.

Bankers T rust
Company
N E W

Y O R K

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Nort hwest ern Banker, April, 7947

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Federal Reserve Bank of St. Louis

OMAHA
The Corn Belt Market

The Place to Buy...........................................The Place to Sell
WORLD'S SECOND LARGEST LIVESTOCK MARKET
AND
MEAT-PACKING CENTER

Handled Over $400,000,000 Worth of Livestock
Last Year

Union Stock Yards Company

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Federal Reserve Bank of St. Louis

of Omaha

Northwestern Banker, April, 1947

I NF ORMATI ON AND A D V I C E
RE GARDI NG BANKS' I NVESTMENTS
A timely service extended to correspondents

The experienced staff and specialized facilities

by the Chase is the study and analysis of a

long maintained by the Chase for reviewing

bank’s portfolio of U. S. Government and other

investments

securities.
Specific recommendations are made based

throughout the country.

have proved

valuable to

banks

Advice and information on investments is only

upon the bank’s overall investment position and

one of the many helpful services that Chase

particular requirements.

offers to its correspondents.
Am ong other services to correspondent banks are :

Issuance of commercial and traveler’s letters of credit
Complete facilities for the safekeeping of securities
Collection of checks, drafts and other bank documents
Transmission of funds abroad and shipment of currency
Information on credit standing of firms and individuals
Participation in local loans w hen desired by correspondents
Performing a w id e range of incidental services

THE CHASE NATIONAL BANK

Northwestern Banker, April, 1947
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Federal Reserve Bank of St. Louis

OF THE CITY OF NEW YORK
Member Federal Deposit Insurance Corporation

DES MOINES
O ld est Financial Journal West of the Mississippi

Question: What do you think of the
proposed $400,000,000 loan to
Greece and Turkey to prevent
Russian expansion?
A. E. Eddy, president Farmers and

Merchants State Bank, Hinckley, Min
nesota: “ I think we should make a
thorough survey of United States
assets, and then, if possible, help
Greece and Turkey to hold Russia
where she is” .
H . AV. Clarkson, president First
State Bank, Buffalo, South Dakota:
“ I think that if the United States
expects to take over world leadership,
they will need to assume some of its
responsibilities.
“As to the loan, I believe it would
be better to do some policing in
Greece than it would be to make
them a loan unless it would be well
secured. In my opinion, it would be
proper for the United States to give
some aid to countries in distress, but
they should see to it at the same
time that the countries receiving aid
should in some way pay for it.
“ In the past three or four hundred
years, I believe that England has
rendered a lasting service to a great
many backward countries but at the
same time has done it without a great
deal of financial loss to themselves.
In my opinion, this country at the
present time is in the most favorable
situation of any country in history,
to aid backward countries with some
finance and to reap a substantial
reward from it if this country has
the men capable and suitable for
administering it.”

Miller Christiansen, president Secur
ity State Bank, Mt. Ayr, Iowa: “ I
think it is too bad that it appears
necessary to loan Greece and Turkey
$400,000,000 and I doubt that we will
ever get the money back, but it
would be worse to let Russia expand
indefinitely, so I doubt that we have
any other choice than to support a
good many of these countries for a
(Turn to page 22, please)

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Federal Reserve Bank of St. Louis

52nd Year

N o. 717

IN THIS A P R IL, 1947 ISSUE
EDITORIALS
Across the Desk from the

Publisher.................................................... 10

FEATURE ARTICLES
What Do You Think?.................................................................................
Frontispage ..................................................................................................
How Banks Can Increase Their Consumer Credit Volume...............
.......................................................................... ...........Lloyd L. Leider
Your G. I. Loan Question Box..............................W alter T. Robinson
How a P ig Club Brings Home the Bacon for Banks............................
Cuba........................................ ................ Mr. and Mrs. Talbot Peterson
News and Views............. .................................................Clifford De Puy
About Bankers You Know— Rufus Crosby Kemper................. ........
Must Abstract of Title Be Delivered?— Legal Department.............

9
13
15
16
17
18
20
22
24

BONDS AND INVESTMENTS
Operation o f World Bank Will Affect Commercial Banking__ ___
.............. ................................................................. Raymond Trigger 29

INSURANCE
Five Ways to Help You Become a $250,000 Producer George Maltby 33

STATE BANKING NEWS
Minnesota News ................ .................................. .....................................
Twin City News....................................................................
South Dakota News.....................................................................................
Sioux Falls News.....................................
North Dakota News......................
Nebraska News ............................................................................................
1947 Group Meetings...........................................................................
Omaha News ....... ........................... ........................................ ..........
Lincoln Locals ........ .................................... ...............Fred F assett
Iowa News .... ............................................................................ ................
1947 Group Meetings.................................

37
39
41
41
43
45
45
48
49
53
53

IN THE DIRECTORS' ROOM
Short Stories— We Hope You Like Them.............................................. 66
Conventions ........
66

NORTHWESTERN BANKER
527 Seventh St., Des Moines 9, Iowa, Telephone 4-8163
RALPH W. MOORHEAD
Associate Publisher

CLIFFORD DE PUY
Publisher
HENRY H. HAYNES
Editor

BEN J. HALLER. JR.
Associate Editor

MALCOLM K. FREELAND
Associate Editor

ELIZABETH COLE
Advertising Assistant

HAZEL C. HADLEY
Auditor

SADIE E. WAV
Circulation Department

NEW YORK OFFICE
Frank P. Syms, Vice President, 505 Fifth Ave., Suite 1806

MUrray Hill 2-0326

Northwestern Banker, Aprii, 1947

10
the money supply which has been created, “ by
the expansion of bank holdings of federal secur
ities and which must remain in existence as long
as the securities are held by commercial banks.”
It therefore behooves every individual banker
to keep a weather eye on what transpires at
Washington as it relates to fiscal policies as well
as what takes place through the Federal Reserve
System in order that the present banking struc
ture of America which has financed our National
debt and holds so many of these securities now,
will continue on a sound and safe basis.

3>eab 3 )si. C d w in Alo-WiAe:

Across the Desk
From the Publisher
jb e a l W . R a ttd a lfilt iiu ^ e à à :
Your Committee on Public Debt Policy of which
you are Chairman, is presenting a very interesting
series on “ Our National Debt and the Banks.”
Two of the major points which your survey
brings out are these :
1. “ Bank earnings have been exceptionally
good, due to the large volume of investment in
government securities and the fact that profits
on security sales together with recoveries have
exceeded losses and charge-offs. A reduction of
profits from these wartime peaks is anticipated.
Banks have followed conservative dividend poli
cies; they have paid out about one-third of their
profits in dividends and have plowed back twothirds to strengthen their capital.
2. “ The war has left the banking system and
commercial banks strong and in a good position
to meet the demand of their customers. The major
economic problem arising out of bank participa
tion in war financing is the great increase in the
money supply. The solution of this problem is
largely a matter of government fiscal policy and
Federal Reserve policy and not a matter of in
dividual bank management.”
Obviously, every bank in the United States is
vitally interested in the government policy as it
relates to financial affairs since the large pro
portion of the Federal debt is held by commercial
banks and the further fact that the increase in
Nort hwest ern Banker, April, 1947

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Federal Reserve Bank of St. Louis

As Chairman of the Council of Economic A d
visers to the President which was created by the
Employment A ct of 1946, you are performing a
real service, and we have read with a great deal
of interest the pamphlet “ Can We Prevent De
pressions?” which is a condensation by the editor
of the Kiplinger Magazine, of your Committee’s
recent report.
As a former Vice President of the Brookings
Institution, your background of economic affairs,
Dr. Nourse, has been considerably above the
ordinary, and we have examined carefully the
facts presented in this pamphlet based upon the
work of your Economic Council.
Out of the 1933 depression which lasted longer
than any we have had in the United States, we
learned these facts according to your analysis.
1. Franklin D. Roosevelt tried many new meth
ods to bring us out of the depression, but after
seven years of ‘ ‘ improvising we still had two mil
lion people on W P A .”
2. We learned from the NRA “ that you can’t
create prosperity by encouraging everybody to
produce less.”
3. We learned that the “ made works project
and spending for the sake of spending somehow
weren’t enough to make the economy catch hold.”
4. People at large have learned that “ you can’t
prevent depressions after they are under way
and you can’t cure them by a series of random
shots in the arm.”
5. The depression period, however, convinced
people that “ bad depressions are truly bad busi
ness and they should not be left to fate and that
something should be done about them in time to
do some good.”
Bringing the situation down to the present
time, the outlook for 1947 with the favorable and
unfavorable factors, as outlined in this pamphlet
are as follow s:
The favorable factors are these:
1. A generally adequate industrial plant and
labor supply.
2. Enough funds to finance business expansion.
3. Adequate profit incentives in most lines.

11
4. Strong and sustained foreign demand.
5. A backlog of deferred and needed public
works.
6. Large unsatisfied demand for commercial
construction, and for housing, automobiles and
other durable goods.
The unfavorable factors as viewed by your
Council, Dr. Nourse, are these:
1. Too little consumer buying power, because
of high prices. Unless prices come down soon,
consumers will not be able to clear the market
of everything produced in 1947.
2. Fear of a drop in consumer demand which
might put a check on the needed investment in
new plants and equipment.
3. Possible strikes and labor management
strife. If these develop, they could discourage
long-term investment in new facilities, as well
as cause short-term losses of wages, profits and
production.
4. High building costs. These threaten resi
dential construction, “ this year or soon there
after. ’ ’
5. Shortages of certain basic materials, plus
continuing shortages of some materials, such as
steel, may prevent construction from reaching
its highest possible point.
As you say, most economists are not worrying
about 1947 or 1948 or 1949, but they are giving
consideration to the 1950’s when a recession may
occur, and therefore the job today not only of the
Council o f Economic Advisers to the President,
but to every banker, every business man, every
farmer and every laborer is to do his part to
prevent such a recession.
As the N o r t h w e s t e r n B a n k e r has pointed
out before, the way to prove to the world, that
our democracy is better than any communistic
form o f government is to make our free enter
prise system, our capitalistic system really work.
I f we know of flaws in our present machine,
then every effort should be made to correct them
or to give the machinery the over-hauling neces
sary so that two or three or four years from now
we will not have another break-down.
3 )e a S i G . £ .
When you testified recently before the Senate
Committee on Labor and Public W elfare, you
brought out the point which needs re-emphasis
that no one ever really gains when a prolonged
strike takes place.
Last year on account of large, national and
industry wide strikes, and thousands of smaller
ones as well, you said “ the country lost more
than 100,000,000 tons of coal, almost 10,000,000
tons of finished steel, more than 1,500,000 cars
and trucks, more than 100,000 homes and sub
stantial production of thousands of items.

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Federal Reserve Bank of St. Louis

“ In General Motors alone employes lost wages
in excess of $200,000,000; the Government lost
at least $60,000,000 in taxes; our customers went
without more than 1,000,000 cars and trucks which
could have been produced. What the company,
our material and parts suppliers and our dealers
lost is difficult to figure, but it was substantial.
Very real losses for all by any standard!”
Also, you bring out the fact that striking which
cripples the economy of the nation should not
be allowed, and as you put it, “ The privilege
of striking cannot be carried to the point where
general strikes or industry-wide strikes cripple
the economy of the nation. It is important to
distinguish this type of strike. When the public
interest is involved in a vital manner, it should
be clearly understood that courts have the un
questioned rights to restrain those instigating and
participating in strikes of this type. If the
privileges of unions are clearly defined by law
in this regard, few should be so bold or so ir
responsible as to call such strikes even though
they might have the monopoly power to do so.”
Some legislation must be worked out where dif
ferences over wages or working conditions can
be adjusted by a fair-minded tribunal while the
employes still continue to carry on their regular
duties.
In this manner, everyone would gain because
production would continue, wages would con
tinue, the government and states would continue
to receive their taxes, and manufacturers would
make a fair profit.

3)ea/L V ita MaAca^ttania:
You oppose President Truman’s plan to pre
vent the spread of communism in Europe and say
that, “ I am in favor of a Democratic defense of
the right of Communists.”
Are you in favor of Communists destroying our
Democratic form of government?
Are you in favor of allowing subversive groups
in this country to destroy the greatest Democracy
in the world?
Do you think, Representative Marcantonio,
that Russia would allow the United States to be
as active in Moscow or any other part of Russia,
as we have allowed Communists to be in the
United States?
The N o r t h w e s t e r n B a n k e r is in favor of free
speech and always has been, but it is not in favor
of any group using that privilege to undermine
the greatest government in the world.
W e disagree with you vigorously and v ocif
erously.

N o rth w e ste rn

B a n k e r, A p r il, 1947

v tw > :

>ivw»v«y ¡

N ort hwest ern Banker, April, 1947

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Federal Reserve Bank of St. Louis

Northwest ern Banker, April, 1947

Burroughs

TH E M A R K OF S U P E R I O R I T Y
IN M O D E R N

BUSIN ESS

MACHINES

H e u /d y m ia tf identifies the world’s best-known line of

business machines. It is introduced as Burroughs’ long-range,
far-reaching program of research and product development
reaches full postwar tempo. Expect the finest in machines,
in counsel and in service wherever you see this symbol.

Burroughs
ADDING
CASH

N orthwestern Banker, April, 1947

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Federal Reserve Bank of St. Louis

•

CALCULATING

REGISTERS

•

ACCOUNTING

•

BILLING AND STATISTICAL MACHINES

NATIONWIDE MAINTENANCE

SERVICE

•

MACHINE SUPPLIES

Ifoir Banks Can Increase
Their Consumer Credit Volume
Complete Details of All Phases of Financing
Should Be Followed Through Consistently

HE methods of handling consumer
credit financing are as variable as
the types of commodities to be
financed. From the history of the
finance companies, banks in general
have been shown how to do the job
and also they have been taught con
clusively that the average customer
is an individual who, given an oppor
tunity to mortgage his future earnings,
comes through in the greatest ma
jority of cases as he has agreed. I
said majority of cases for I dislike
the word “average” because in most
instances it is a misnomer. It reminds
me of a story of an economist at
tempting to explain what he meant
by averages. He said that the best
illustration he knew of, was that of a
young man sitting in the kitchen with
one foot in the oven of a very hot
stove and the other foot inside a
mechanical refrigerator. Theoretically,
at least, he should have had average
comfort.
You might ask — “How can the fi
nance companies make money and
keep this business coming to them,
when we not only know the dealers
who are contributing the business, but
in many instances know the ultimate
customer as well?” In the first place
the finance companies get all of their
business through the dealer and be
cause of this it is usually on a large
volume basis. From an acquisition
cost standpoint they can nearly elimi
nate the advertising cost of putting
that type of business on their books.
Furthermore, their entire overhead
is spread over an exceptionally large
volume, whereas in a small bank’s
operation, the overhead must be spread
over the various types of installment
credit that are purchased. The finance
companies are always willing to take
a risk on older models in the automo
bile field at usually a much higher
rate so that their average yield, includ
ing insurance profits in normal times,
is much higher than the bank rate
which we are currently thinking about
on used cars as being five or six per
cent. We in the banks must under
stand that to compete with this type of

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Federal Reserve Bank of St. Louis

automobile finance competition effec
tively, some margin of profit must be
realized from an insurance set-up.

Dealer Contacts Vital
In my experience in the finance busi
ness, it was nearly mandatory in most
cases to make a deal with any dealer,
to take all of his paper on a “run of

By LLOyD L. LEIDER
Assistant Cashier
First National Bank of St. Paul
terest on their financial statements and
as a result they have been willing to
loan money on a preferred risk basis,
letting finance companies themselves
assume the entrepreneur’s risk, and
as a result they have taken only the
riskless profit. It is probably an old
axiom, but nevertheless true, that the
average individual buying an automo
bile is primarily interested in getting
behind the wheel and driving away
instead of being concerned with the
interest rate. It has been the expe
rience of automobile dealers to whom
I have talked, that the customer is
not interested in the total finance
charge. Instead, he merely asks what
is it going to cost per month and if
that figure falls within his means to
pay he signs a Conditional Sales Con
tract only to find out later that in
cluded in the finance charge is a fancy
and expensive pack for the dealer.

Loaded Time Sales

L L O Y D L . L E ID E R
“ Sell Customers on Bank Service”

the mill” basis in the hope that there
would be sufficient good paper in the
over-all volume to justify such a deci
sion. In addition to this, major finance
companies learned very early the im
portance — in fact the necessity — of
following collections closely and, of
course, as a direct result have made
the American people collection con
scious. For that, I am sure you will
agree, we should all be grateful. Fi
nance companies do not hesitate to
repossess a car or to crack down by
legal means if necessary, to protect
their investment. In a great many
cases banks would hesitate to do that,
if for no other reason than that of
poor public relations.
As the finance companies’ success
has grown, banks have looked with in

A pack, in the parlance of automo
bile finance men, is the difference
between the net rate to the dealer
by a finance company and the gross
rate charged to the customer. In other
words, the differential between the
cash price and the time price can be
almost any amount. The difference
between the cash price, less down pay
ment and trade in, and the time price
is the finance charge. The difference
between the rate offered by the finance
company to the dealer and the finance
charge is what is commonly called the
dealer’s pack. To be more specific
let us suppose a used car on a dealer’s
lot was priced at $1,500. Assuming
that this dealer had a purchaser who
traded in his old car for $700, leaving
a balance of $800 to be paid in cash or
financed, we are now at a point in this
sale where a pack is applicable.
Let us presume that our dealer is one
of the more conservative dealers and
charges his customer 8 per cent dis
count and he also sells him insurance
costing $70. The total amount to be fi
nanced is $870 and at 8 per cent dis
count would result in a finance charge
of $69.60 for one year. Going farther
(Turn to page 50, please)
Northwest ern Banker, April, 1947

Your G. f. Loan
Question B ox
Transfer of Loans—«Proper Appraisal— Procedure
for Making a Barnyard Chattel Loan— and Loans to Indians
By WALTER T. ROBINSON
Iowa Loan Guarantee Officer, who
answers the things you want to
know about the Servicemen's
Readjustment Act
Q . What is the appropriate method
of substituting the printed note and
mortgage forms prepared by the VA
for the forms heretofore executed in
those cases in which the lender de
sires to transfer a loan that was guar
anteed or insured by the VA and the
transferee requires the use of the A7A
forms?

the appraisal is deemed immoderate
is not sufficient cause to reject such
a case for guaranty, nor is a mistake
of fact not attributable to the lender.
It will be apparent that since dis
bursement of the proceeds of the loan
is an essential condition precedent to
the right of an automatic guaranty, any

A. The RFC Mortgage Company
has approved a form of agreement
which will be signed and acknowl
edged by the debtors and creditors
and attached to the approved form
of note and mortgage which will be
filled in with the same dates, amount
and property, as the originals but
NOT to be signed or acknowledged.
Interested lenders may request In
formation Bulletin IB2-34.

Determination of Proper Appraisal
In the November Question Box we
discussed Loan Guaranty Notice No.
85 concerning responsibility of the
Administrator for determination of
proper appraisal. It has been ad
ministratively determined that the
additional factor of control assumed,
whereby the VA appoints a designated
appraiser in each case, alters the con
sideration which underlay the position
previously taken to the effect that the
Loan Guaranty Officer may refuse for
any of the reasons specified therein
to issue guaranties to a supervised
(500-d) lender, on loans already paid
out under Section 501 on an automatic
basis.
Refusal to issue a guaranty to a
supervised lender with respect to a
loan which has been fully or par
tially disbursed in reliance upon the
appraisal set forth on Form 4-1803
will be warranted only on the basis of
a finding that the loan is effected by
fraud, connivance, or circumstances
tantamount thereto; or where a ma
terial mistake of fact has occurred in
respect thereof attributable to the fault
or failure of the lender. The fact that
Northwestern Banker, April, 1947

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Federal Reserve Bank of St. Louis

W A L T E R T. R O B IN S O N
Answers Your Questions

finding contained on or in connection
with the Form 4-1803 with respect to
a loan on which the lender has not
already paid out may be adjusted by
the loan guaranty officer.

What is the procedure for a super
vised lender to follow in making a
barnyard chattel loan?

A. The recommended procedure in
making a barnyard chattel loan is to
submit it for guaranty or insurance
under the “prior confirmation” plan.
By following this procedure the lend
er and the veteran would determine
the estimated cost of the items to be
purchased. The Farm Loan Report

can then be prepared by outlining the
proposed purchases, supported by
Form 1823, Farm Appraisal, showing
the estimated cost of each item. After
receipt of Certificate of Approval, the
lender would proceed to disburse the
funds as the items became available
for purchase.
When all of the items have been pur
chased, if it is determined that the cost
has overrun the original estimate
shown on the Farm Loan Report and
the Appraisal Report, and there is a
deviation in excess of 5 per cent be
tween the actual expenditures and the
amount originally approved, it will be
necessary that such deviation be ap
proved before guaranty can be issued.
This may be accomplished by return
ing the Certificate of Approval and the
Veteran’s Certificate of Eligibility with
a new Farm Loan Report and a new
Appraisal Report.
After having the additional guaranty
reserved, a new Certificate of Approval
will be issued, based on the new
amount of the loan. Where the devia
tion is less than 5 per cent between the
amount disbursed and the amount
shown on the Certificate of Approval,
no adjustment will be made on the
guaranty or insurance.

May loans to Indians be guaran
teed or insured?

A. It is desired to extend to Indian
veterans every proper opportunity to
utilize the benefits of the act. There
is no personal disqualification to con
tract resulting from the fact that the
veteran is an Indian. He is a citizen
of the United States. If an individual
Indian goes away from the reservation,
works and buys property with the pro
ceeds of his labor, he is, with respect
to that property, in the same position
as would be a similarly situated white
owner thereof.

Identification of Personal Property
We still find it necessary to return
(Turn to page 22, please)

Boir a
Pig
Brings Borne the
Bacon for Banks
Three Banks in La Crosse, Wisconsin, Help
Young Farmers Acquire Their Own Livestock
HE Batavian Bank, National Bank,
and State Bank of La Crosse, Wis
consin, and other business firms in
that city each contribute about $10 per
year to sponsor the La Crosse Pig
Club, a fine rural promotional idea
which has been carried on continuous
ly for thirty-one years!
In order to encourage farm boys and
girls to raise good livestock and as a
gesture of good will between city folks
and farmers, this Pig Club was started
long ago, with bankers and other busi
ness men putting up the funds to pur
chase 22 purebred sow pigs. This
project is still flourishing today with
out a break since its inception.

Quiz Contest
Originally, each pupil of a rural

TWO

this

YO U N G

matter

take
seriously.

CH AM PION S

eating

•school in the county, between the ages
of 10 and 14, who was interested in
raising a purebred pig was asked to
write an essay on the care and manage
ment of livestock. A committee judged
the essays and the two high winners
Northwest ern Banker, April, 1947

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Federal Reserve Bank of St. Louis

FA R M QUIZ K ID S turn on the charm for the photographer

in La Crosse, Wisconsin, as they are presented with their prize
pigs for winning thirty-first annual Pig Club contest.

from each of the 11 townships in La
Crosse county were named to receive
the pigs. Nowadays, entrants must
answer true-false questions. You can
test your own knowledge or quiz some
of the junior farmers in your com
munity with the following true-false
questions:
1. The Poland China belongs' to the
bacon type of hog.
2. Poland China hogs are usually
white in color.
3. The Poland China does not relish
yellow corn.
4. The Berkshire breed is white in
color.
5. The Hampshire breed is not pop
ular in La Crosse county.
6. The Chester White is not a pop
ular breed in La Crosse county.
7. Wheat is not a good feed for
hogs.
8. Alfalfa is one of the best pas
ture crops for young pigs.
9. Alfalfa hay is good for brood
sows.
10. Ear notching is the best way to
mark pigs.
11. Skim milk is good feed for small
pigs.
12. Grade pigs never grow as fast as
purebred pigs do.
13. Barley straw is a good feed for
young pigs.
14. Out of every 100 pigs farrowed,
about 30 die before they are 4 weeks
old.
15. Salt should always be included in
the ration for brood sows.
16. The feeding value of feed is the
same whether it is fed wet or dry.
17. Iodized salt fed to a mother pig
will prevent hairless pigs.
18. Cut straw or chaff and leaves are
better for bedding than long straw.
19. Wheat bran is a good feed for
the mother pig at the time of the far
rowing.

20. After the pigs are two or three
weeks old, the sows need a liberal al
lowance of concentrates, rich in pro
tein and mineral matter, especially cal
cium (lime) and phosphorus.
21. If the mother pig is not on pas
ture, she should be fed some legume
hay.
22. The farrowing pen should be
thoroughly scrubbed with hot water
and lye to prevent disease.
23. Round worms do not harm pigs.
24. Corn is a better feed for fatten
ing hogs than oats.
25. Pigs do not require a well bal
anced diet.
26. Protein, minerals and vitamins
are important in the pig ration to pro
mote growth.
27. Self-feeding is usually more eco
nomical than hand feeding. »
28. Good pasture is the cheapest
feeding for hogs.
29. Small pigs should be given a
chance to eat dry feed.
30. Pigs should have access to clean,
fresh water.
31. Barley is a better feed than oats
for fattening pigs.
32. A 200-pound hog will not provide
over 100 pounds of usable meat after
it is dressed out and cut up.
33. The lack of iron in the ration
may cause anemia.
34. A good swine producer can have
his pigs ready for market in six
months or less.

Yearly Picnic
With their teachers and parents, the
lucky boys and girls who win this
contest are invited to a dinner or a
picnic each year, and here they are
given their prize pigs. Each boy or
girl agrees to return a purebred pig of
the same breed from the litter when
(Turn to page 43, please)

Land o f

MORRO CASTLE, HAVANA HARBOR

About the Authors! When Mr. and Mrs. Talbot Peterson of Appleton, Wis
consin, left on their honeymoon to Cuba, the Northwestern Banker asked
them to write an article giving their impressions of the island to our south.
Mrs. Peterson is the former Miss Evelyn De Puy, daughter of Mr. and Mrs,
Clifford De Puy of Des Moines. Before
her marriage she served overseas for a t ^
^
,
a year with the American Red Cross, jp

„

Mr. Peterson was a first lieutenant
in the 39th infantry regiment of t
9th division and saw active service in
Europe for two years, and is now associated with the Valley Iron Works
Company of Appleton, Wisconsin.

NATIONAL CAPITOL, HAVANA

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HE worryless world of Nassau . . .
the depressed, hungry people of
France . . . the gay, colorful whirl
of Mexico . . . all these are combined
in the small island called Cuba.
Winging one’s way over the blue
Atlantic, catching the last glimpse of
the fabulous Key West Highway, you
find yourself in Havana—a breath-tak
ing two hours after leaving Miami.
Your first impression, as you bounce
over bumpy roads from the airport
into Havana, is one of filth, poverty,
and inertia. The dilapidated shacks
that are mushroomed on the outskirts
of the city . . . the outstretched hand of
a Cuban mother as she begs money
. . . the slow, slovenly gait of the passersby are all fleeting glimpses of the
new country about to be explored.
To those, like this ex-American Red
Cross girl and Army officer, who are
used to tipping with cigarettes and en
joying the luxury tours in the ETO,

e a u t y ,

Sugar,
Rum ,
High Prices .
Cuba brings you down to earth with
a thud and a shriveled purse because
prices are high.

Cigars.

Tourists stand next to the sugar crop
as one of their main sources of income.
But if you can overlook the mercenary
touch, Cuba will provide a fascination
for those who like to travel to romantic
lands and see where history has been
and is being made.

and
Communism
By

MR. and MRS. TALBOT PETERSON
Appleton, Wisconsin

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PRESIDENTTAL PALACE, HAVANA

Cathedral Square
One of our most pleasant afternoons
was spent with Donald O’Keefe of the
Chase National Bank. He wined and
dined us at the Cathedral Square. This
beautiful and intriguing Square con
sists of only four buildings, all more
than two centuries old. One building
is the San Cristobal Cathedral, where
Christopher Columbus’ bones were ru
mored to have reposed before being
taken to Spain. Another side is de
voted to the Ministry of National De

fense, the west side is the Paris Res
taurant, where we had lunch in the
patio of the old mansion.
On the south side is the Havana Club
Rum Company, which is located in the
old home of the Count of Casa Bayona.

Varadero Beach
The only spot in Cuba that exceeded
our expectations was Varadero Beach,
115 miles from Havana. After bounc
ing in a Worn out, battered, cigar
smelling bus for four hours, we arrived
at Club Kawama. (We flew back in 30
minutes.) Here the garden spot of
Cuba offers a climate ranging from 72
degrees in the winter to 79 in the
summer. It is a summer capital for
well-to-do Havaneros and the winter
capital of beach-tourism. It must be
a twin sister of Paradise Beach in the
Bahamas, for the sand is just as white,
the water just as blue and clear.
Club Kawama consists of about fif
teen small cabins, a central dining
hall and cocktail lounge, a chapel, and
the Cortijo, which is reminiscent of
Old Spain. Equally as interesting as
the club itself are its owners, Colonel
and Mrs. Silva. Colonel Silva, once
aide to President Palma, has just re
turned from the States where he was
a military aide during the war.

Havana Is No Paris
One of the most erroneous state
ments about Havana is that it is the
“Paris of South America.” To two
staunch admirers of France’s capital,
this is a gross exaggeration. Havana
does have sidewalk cafes, where one
can sit amidst the blaring of three or
four orchestras playing different tunes
(Turn to page 36, please)
NATIONAL HOTEL, HAVANA

News and Views
OF THE BANKING WORLD
By Clifford De Puy

ILLIAM N. ENSTROM, president

of the Irving Trust Company, has
been instrumental in the organization
of a Quarter-Century Club for em
ployes of his institution.
Membership is eligible to all of those
who have been with the bank for 20
years or more. At the present time,
there are 304 members of the Club
which also includes 50 officers, all of
whom have served the Irving Trust
for 25 years or more.

derstanding by the public is now im
perative, and I hope that it can be
brought about.”
George A. Malcolm, president of the
Drovers National Bank of Chicago,
told us that the Chicago Tribune asked
Frank Covert, assistant vice president
of the bank, the question “Would you
be able to keep house if necessary?”,

When the Central States Conference
of presidents, vice presidents and sec
retaries comprising 16 states met in
Chicago last month, the officers
elected for 1947 and 1948 were as fol
lows: President, Wall G. Coapman,
Secretary, Wisconsin Bankers Asso
ciation, Milwaukee; First Vice Presi
dent, David M. Audi, Secretary, Ohio
Bankers Association, Columbus; Sec
ond Vice President, Robert E. L. Hill,
Secretary, Missouri Bankers Associa
tion, Columbia; and Secretary and
Treasurer, Ralph Fontaine, Secretary,
Kentucky Bankers Association, Louis
ville.
John C. Wright, President of the
La Salle National Bank, Chicago, is
Chairman of the Transportation Com
mittee for the Reserve City Bankers
Association which meets in Swampscott Massachusetts, May 12th to 14th.
There are 350 members in the Asso
ciation at the present time.
John C. Trapliagen, president of the

Bank of New York, has sent out a
booklet “An Answer to the Nathan
Report” prepared by Prof. Sumner H.
Slichter of Harvard University.
Robert Nathan is the fair-haired
boy of the former New Deal regime
who recently advocated in behalf of
the C.I.O. that all wages could be
raised 25 per cent and not have to in
crease the price of the products sold
by the various corporations.
In commenting on this, Mr. Traphagen said, “All public opinion sur
veys indicate that the American peo
ple are overwhelmingly in favor of
our free enterprise system yet many
people show a readiness to seek pana
ceas by some clever manipulation of
wages, prices and profits and this has
created a danger far greater than may
be suspected. A wider and deeper unNort hwest ern Banker, April, 1947

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Federal Reserve Bank of St. Louis

John S. Coleman, president of the
Burroughs Adding Machine Company,
Detroit, has issued the “First Compre
hensive Annual Report ever published
by Burroughs.”

The report is attractively illustrated
with photographs and charts and
shows in graphic form just what the
company has done and is doing.
At the end of 1946, the company had
$72,000,000 in unfilled orders which
was nine times what it had at the end
of the best pre-war year.
The total income from sales in 1946
amounted to $46,000,000 compared with
$37,000,000 in 1945.
D. Wesley Correll, assistant vice
president of the First Wisconsin Na
tional Bank, is chairman of the Cam
paign Committee of the Milwaukee
chapter of the American Institute of
Banking which is promoting the candi
dacy of Pierre N. Hauser for vice presi
dent of the A.I.B.
At the present time Mr. Hauser is
vice president and director of person
nel of the First Wisconsin National
Bank.
According to Mr. Correll, Mr. Hauser
is, “an outstanding leader in the Mil
waukee Chapter and qualified by his
29 years of banking and service to the
Institute, for vice president of the
American Institute of Banking.”

FRANK CO V E R T
Says He Could Keep House

and Frank said, “There isn’t anything
around a house I can’t do. I can cook,
scrub, make beds, take care of the
baby, iron or do anything else that
might come up in the course of a day’s
housework. But O, how I’d miss my
wife if she should actually put me to
the test!”

Commerce Secretary W. Averell
Harriman believes America should not
be concerned about the possibility of
a business recession.
“ Too little has been said about the
amazing job industry did during the
war,” according to Secretary Harri
man. “We have more ability and
more knowledge than ever before.
Unless we expand our use of goods
and services to other countries, our
whole foreign economic program will
collapse.”

Clarence J. Bridgen, general partner
of Paine, Webber, Jackson & Curtis,
209 South La Salle Street, Chicago, has
been sending to his friends a very in
teresting little booklet published by the
Trundell Engineering Company en
titled “Who Wants Stability?”
Two very thought provoking para
graphs in the booklet are these: “We
have developed our present standard
of living—the highest in the world—
under the competitive system. Com
petition cannot function under fixed
prices, fixed wages, fixed interest rates
or any of the other factors that go
along with ‘stability.’ The basic requi
site in the operation of the competitive
system is flexibility.
“That is why, under the competitive
system, we cannot have controls of
production, controls of markets, or
controls of prices.”
Swayne P. Goodenough, president,
Financial Advertisers Association, and
(Turn to page 28, please)

OVERNIGHT
'

COLLECTION
AND

AIRM AIL- Coast to Coast
RAIL MAIL-Within 500 Miles

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Federal Reserve Bank of St. Louis

i f Our central location and mail facilities enable us

to provide quick service on your collection and
transit items.
i f Evening departures of air and rail mail give over
night delivery to east and west coasts, and to points
on both borders.

The Omaha National Bank by virtue of these advan
tages has developed unusual speed and efficiency
in handling items for correspondents.
Inquiries are invited.

The Omaha
National Bank
Member, Federal Deposit Insurance Corporation
Northwestern Banker, April, 1947

About Bunkers You Know

Mr. Kemper was married to Enid
Ann Jackson on April 20, 1923, and
they have one daughter, Sally Ann
W ood, 21, and one son, Rufus Crosby,
Jr., 19. Valley Falls, Kansas, claims
Mr. Kemper for a native son. He was
born there February 23, 1893.
Among Mr. Kemper’s many outside
activities he is chairman of the board
and a member of the executive com
mittee of the Interstate Securities
Company, a director and executive
committee member of the Kansas City
Life Insurance Company, the Busi
ness Men’s Assurance Company and
the Kansas City Fire & Marine Insur
ance Company, all of Kansas City; a
director of 12 companies and corpora
tions, and an official in numerous
civic activities.
His favorite forms of relaxation are
hunting, riding and golf. He is a Phi
Delta Theta fraternity member, a
Thirty-second degree Mason and be
longs to the Kansas City Club, Kansas
City Country Club, Mission Hills
Country Club, Saddle & Sirloin Club
and Reserve City Bankers Associa
tion.

G. I. QUESTIONS
AND ANSW ERS
(Continued from page 16)

RUFUS CROSBY K EM P E R
President, City National Bank and Trust Company, Kansas City
“ Under his direction deposits have grown to $117,552,837“

CROSBY KEMPER,t president of the City National Bank and Trust
Company, Kansas City, Missouri, is one of those rare individuals who can
RdoUFUS
full justice to the task of operating a big bank efficiently, yet can find
enough time to be devoted to outside business, civic and charitable interests.
Since 1920, when he became its president at the age of 27, the City National’s
capital structure has been increased from $400,000 to $5,572,000. Under his
capable direction deposits have grown from $300,000 to $117,552,837 at the
last bank call.
Those 27 years of continuous service as chief executive of the City National
Bank and Trust Company are better than matched by the more than thirty
other affiliations which he maintains outside the bank. Whenever any worthy
civic or charitable work is announced, his name generally is associated with
it in some way. Mr. Kemper’s father, William T. Kemper, was a prominent
businessman and banker in Kansas City and Rufus Kemper’s three brothers
all are presidents of their respective banks.
University of Missouri alumni remember Mr. Kemper as a member of the
football and track teams at that school. He was graduated in 1914 from
Missouri with an A.B. degree, then took up further study for a financial career
when he attended the Wharton School of Finance for post-graduate work in
1915-16. Shortly after this he joined the Army and served overseas 10 months
as a first lieutenant in the Infantry. In 1919 he was elected vice president
of the City National Bank and a year later was named president, the posi
tion he now holds.
/
\

Nort hwest ern Banker, April, 1947.

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Federal Reserve Bank of St. Louis

many loan reports for more specific
description of personal property to be
purchased from the proceeds of the
loan. A valid lien under a mortgage is
not established without a good and
sufficient description of the property
covered by the mortgage. Proper iden
tification of heavy machinery by manu
facturer and serial numbers may elimi
nate additional expense in locating the
property in case of default. Livestock
should be described as to sex, age, color
and weight.—The End.

W HAT DO YOU THINK?
(Continued from page 9)
while. But if we will handle our
foreign trade in such a way as to make
it more profitable than we did after
World War I, possibly we can make
it pay out in the end.
“ If we are to have another war
in the future we cannot afford to let
Russia have control of the Mediter
ranean. It does appear that it is easier
to stop Russia now than after we let
her build up her empire. We will
however be required to see to it that
our loan or gift does what we expect
it to do. We will have to do away
with dictator types of governments
or our gifts will be wasted.—The End.

How m any of
these 8 questions
on check design
can you a n sw e r?
In a p r o p e r l y d e s i g n e d
b u s i n e s s c h e c k , w h a t is
the r ig h t p o s i t i o n f o r :
/#

. . . customer’s check n u m b e r . . .

2* . . . date

of check and bank’s rout
ing s y m b o l . . .

. . . n a m e of person w h o is to re
ceive the amount ( p a y e e ) . . .
. . . amount in numerals preceded by
bold dollar sign . . .

• >. amount in w ords . . .
. . . n a m e of account from w hich
m oney is to be paid (drawer) —

/ ,

. . . nam e and address of bank on
w hich check is draw n . . .
. official signature that bank is
authorized to h o n o r . ..

For the right answers to these questions, send for
H am m erm ill’s com pact id ea -b ook , “ BUSINESS
CHECKS — Their Proper Planning and Design.”
You’ll find it a stimulating refresher. It offers 15
examples o f common time-wasting faults taken from
checks in actual use. Then it gives the 8 Essentials
of Good Check Design— all based on interviews
with bankers and conforming to recommendations

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Federal Reserve Bank of St. Louis

of A. B. A. R e m e m b e r : p rop erly designed ch ecks
save tim e on E V E R Y ch eck transaction.
Many bankers find distribution of this book a
tactful and simple way to persuade their customers
to design their checks properly. Send for free copy.
Even the best-designed bank and b u sin ess checks g iv e
greater satisfactio n on the safety paper that re a lly pro
te cts— H am m erm ill Safety.

Northwest ern Banker, April, 1947

LEGAL

M u st A bstract o f Title
Alw ays He H elirered to Purchaser?
O . Gonewind, a South Dakota bank
er, owned a farm in that state which
had been in his family for a long time.
He had no abstract of title on it.
Patterson contracted to buy it from
him. Nothing was said in the contract,
or otherwise, to the effect that Gonewind would furnish an abstract. Was
he obligated to provide one to Patter
son?

No. In a similar case recently de
cided by the South Dakota Supreme
Court it was held that the obligation
of a ^endor to furnish an abstract of
title depends upon the contract to
sell and that, where the contract does
not obligate the vendor to furnish
an abstract, he is under no obligation
to do so.

Duncan purchased war savings
bonds from Hodges at a discount and
had Hodges turn them in for redemp
tion. When Hodges received the
checks covering the redemptions he
passed them to Duncan who endorsed
Hodges’ name thereon and cashed
them. Because of such action Duncan
was charged by the government with
violating the federal forgery laws.
Should the government he sustained
in this contention?

No, according to a recent federal
Circuit Court of Appeals decision. In
so holding the court said that to be
guilty of violating the forgery laws
there must be an intent to defraud
the United States and that such intent
was not present where a bond holder,
by his actions, authorized a bond
purchaser to do what was necesary
to get the money out of the bonds.
To put the matter another way, the
purchaser had implied authority to
endorse the payee’s name to the checks
and, because such authority existed,
there was no forgery.

Bell, an Iowa hanker, sold certain
cattle in that state to an individual
fraudulently operating under the name
of Smith, who gave him a check
Northwestern Banker, April, 1947

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

therefor. The check was subsequently
returned to Bell as worthless. By
reason of these facts could Bell have
maintained an action against the pur
chaser for either a recovery of the
cattle or for damages for their wrongful comrersion?

Yes. Where a buyer of cattle mis-,
states his identity and issues a worth
less check for their purchase price
the title to the cattle does not pass
as between the buyer and the seller,
and the seller can recover from the
buyer either the cattle or damages
for their conversion.

Suppose that, in the preceding
question, the individual alleging him
self to he Smith had taken the cattle
to a nearby factor and had engaged
him to sell them, which he did in good
faith, paying the proceeds less his
factor’s commission to the alleged
Smith. Suppose further that the al
leged Smith took such proceeds and
absconded. Suppose still further that
Bell sued the factor. Could Bell recoATer even though the factor had
acted without knowledge of alleged
Smith’s fraud?

Yes, according to a recent Iowa
Supreme Court decision which holds
that where a principal steals property
or obtains it through fraud or forgery,
a factor or commission merchant, who
receives the property from such prin
cipal, sells it under the principal’s
instructions, and pays him the pro
ceeds of the sale, is guilty of conver
sion if the principal had not title or
right to sell. The decision further
holds that the factor may not escape
liability to the true owner by a claim
that he acted in good faith and in

ignorance of the principal’s want of
title.

In dealings with minor children
problems often arise as to Avhether
they have been emancipated by their
parents. Where there are no statutes
specifically covering the matter and
there has been no express emancipa
tion, is it possible, as a genei’al rule,
that emancipation may be applied
from conduct on the part of the par
ents?

Yes. It is generally recognized
that emancipation of a child need not
necessarily be express, but may be
implied from the surrounding cir
cumstances, particularly from conduct
of the parents inconsistent with the
continuation of the parental and filial
legal rights and obligations. Arkansas,
Indiana, Iowa, Kansas, Kentucky,
Michigan, Minnesota, Missouri, Ne
braska, Tennessee, Texas and Wis
consin are some of the states so
holding.

Blowbelt fraudulently induced
Martin to purchase from him certain
bonds. The fraud practiced by B I o a v belt Avas not an aggravated one, but
one more in the nature of something
resulting from simjde carelessness.
Could Martin, generally speaking, re
cover from Blowbelt punitive dam
ages in addition to those he actually
sustained?

No. Generally speaking, a recovery
of exemplary or punitive damages in
an action based on a fraudulent sale
will be allowed only where the fraud
is an aggravated one, as where it is
gross, malicious or wilful. Cases so
holding may be found in Arizona,
Alabama, Illinois, Indiana, Mississippi,
Missouri, New Mexico, Ohio and
Texas.
Q . Senn, a Minnesota banker, and
two other individuals operated an
automobile agency as a partnership.
The tAvo other partners preAailed on

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Northwest ern Banker, April, 1947

26
Seim to sell his interest to them and,
in order to get him to do so, made cer
tain material representations regard
ing the business which were untrue.
This was discovered later by Senn and
he sought to rescind the sale. Could
he do so?

Yes. The relationship between part
ners is essentially one of mutual
trust and confidence and the law im
poses upon them the highest standard
of integrity and good faith in their
dealings with each other. Since the
two other partners did not act in good
faith Senn can rescind the sale to
them.

Butz, a Wisconsin banker, was
appointed the trustee of a coal busi
ness under the will of a deceased
friend. Generally speaking, he was
to manage and operate the business
for ten years and then turn it over
to the decedent’s children. The will
was rather loosely drawn and it was
necessary that he go to court for a
determination of what he should do
with reference to certain features of
the property. As an incident to doing
so he also sought court instruction
regarding certain things that might
happen. As to such last named in
structions, should the court give
them?

No. In a recent decision involving
an analogous problem the Wisconsin
Supreme Court refused to issue in
structions to a trustee under a will
regarding problems that were not
actually confronting the trustee, say
ing that it is well established that a
court will not instruct a trustee as to
questions which may never arise.
^ 5 . A Nebraska banker also operated
a plumbing establishment there. As
an incident to the last named business
he did certain plumbing work on a
house jointly owned by two men. He
was employed by one of the two. His
bill was not paid when it came due
and he sought to obtain a mechanic’s
lien for the full amount thereof on the
interest of the part owner employing
him. Could he do so?

Yes. Where a part owner contracts
for, or authorizes the making of, an
improvement on the property of which
he or she is the part owner, his or
her interest therein may be subjected
to a lien for the entire cost thereof.
This rule, in addition to being followed
in Nebraska, is followed in Minnesota
and various other jurisdictions.

The son of a Nebraska banker
married and had one child. Differences
developed between the son and his
wife and she sued for a divorce. As
a part of the divorce the son was
ordered to.pay $25 per week for the
support of the child. This he did not
do and the wife sought to recover that
amount from the banker claiming he
had orally agreed to make such pay
ments good if his son did not, pro
viding she made no effort to have the
$25 allowance made greater at the
time the divorce decree was entered.
Could she be sustained in her claim
against the banker?

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No. Under Nebraska law, which is
similar to the laws in many other
states, every special promise to answer
for the debt, default, or misdoings of
another person is void, unless it or
some memorandum thereof is in writ
ing. Since there was no writing here
the claim could not be sustained
against the banker even if he had
made the agreement which the wife
contended was made by him.—The
End.

Dividend

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Northwestern Banker, April, 1947

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DES M OIN ES, IO W A

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M EM B ER

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IN S U R A N C E

C O R P O R A T IO N

Northwestern Banker, April, 1947

INVENTORIES COLLATERALIZED FOR COMMERCIAL LOANS

1st to stockholders of record March
20th.
At the same time the bank an
nounced the appointment of Walter F.
Krueger as assistant cashier.

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(Continued from page 20)
vice president of the Lincoln Roches
ter (N. Y.) Trust Co., in discussing
what “banks have to sell” put it this
way: “ In looking at our business,
let’s recognize clearly that we have
no bright chrome-plated automobiles
—or handy appliances to sell. We can
offer no health-giving vitamins—no
beautifying cosmetics — nothing for
halitosis, B. O. or constipation—we
have literally nothing to sell but that
intangible something covered by that
much hackneyed word ‘service.’ Bank
ing is essentially a business of human
relationships.
“ If the automobile, appliance and
railroad businesses are concerned with
their human relationships—how much
more should we in our business recog
nize the importance of these relation
ships.
“Your public relations will be a
strong asset for your bank only as
every one in your shop becomes truly
interested in serving the public. And
I mean every one—from the front
office down.”
Secretary of Labor Lewis Sehwellenbach is in favor of outlawing the Com

munist party in America. We think
this is the smartest proposal which
the Secretary has made since he has
been in office.
However, some of the union organi
zations which are no doubt Communist
controlled do not feel this way, and
Morris Davis, secretary of Local 848
of the Brotherhood of Bainters, AFL
said, “ I protest the treasonous and
fascist proposal to outlaw the Com
munist Party. True Americans will
not stand for this. Labor will resist
this effort to undermine our democ
racy.”

If outlawing the Communist Party
in the United States is undermining
our democracy, we don’t know what
democracy stands for. We think it’s
just the reverse, and the Communist
Party is undermining our democracy,
and therefore the Communist Party
should be outlawed.
Robert E. Wilson, chairman of the
board of the Standard Oil Company of
Indiana, says: “ I do not believe there
is a reasonable "probability of atomic
power being used to run automobiles.”
Well, if there ever is, Mr. Wilson,
the Standard Oil Company will be out
of business and what will become of
all the filling stations?—The End.
Northwest ern Banker, April, 1947

IN V E S T M E N T S

How Operation o f the W orld Rank
Can A ffect Commercial
World Bank Debentures Offered for Investment
Can Now Receive Commercial Banker Consideration
By RAYMOND TRIGGER
Investment Analyst
New York City
LL things considered, it must be
allowed that the World Bank
has survived what might well
have been expected to prove fatal
handicaps. There will be a bank in
fact as well as name and it will lend.
Moreover, it will lend more than it has,
which means that it will borrow. This
last, of course, is of live interest to all
American investors, including some
13,000 commercial banks.
Mr. Meyer left the bank last Decem
ber rather abruptly and for published
reasons which were never fully ac
cepted. Indeed, one reputable news
paper put it bluntly: “ Mr. Meyer
didn’t resign because he thought his
organizing job was finished. He feared
the bank’s directors might r u s h
through unsound loans that would go
sour. This might leave U. S. investors
holding a bagful of dubious deben
tures.” Another publication, The In
vestment Dealers’ Digest, editorial
ized: “Eugene Meyer quit the World
Bank. Some think because he didn’t
want to be identified with an institu
tion that would be making whoopee
with taxpayers’ money via silly loans.”
His temporary successor, Harold
Smith, became acting president, but
died in about a month. Mr. Smith
had shared Mr. Meyer’s views, but pre
sumably stayed on merely to fill in
until a new president could be found.
Mr. Meyer’s resignation started a mad
hunt for a new head; Mr. Smith’s death
intensified the search. A long string
of invitations went out from Washing
ton; as many polite refusals went back.
At its bleakest point, it almost seemed
that the bank would never really func
tion.

Difficulties
There were two major difficulties.
One was the question of whether the
bank would lend for “reconstruction
and development” to any applicant
who could not get the money else
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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
NORTHWESTERN 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
column discuss specific securities.

where but could also make out a rea
sonable case for his need and for the
prospect of being able, as well as will
ing, to repay, or whether the bank
would lend for political reasons. No
man big enough to head the institu
tion would consider the latter because
the bank would, in turn, be borrowing
from private investors.
If that were the only major head
ache, the solution would have been
merely to reject applications for un
sound loans. But the head of the
bank, under the charter terms, is the
creature of the board of directors.
This is made up of 12 who serve full
time at extremely high wages when
it is recalled that their pay is entirely
free of tax. Five speak for the major
powers in the bank—the U. S., Britain,
France, China and India. The others
represent groups among the thirty-five
smaller UN nations which have joined
the bank. Russia is not a member.
There can be very little question
that the bank, as conceived at Bretton
Woods and as created at Savannah,
was to have been the instrument of
internationally minded professional dogooders with other people’s money and
with more than a strong inclination to

do the most good to countries whose
political philosophies did not offend
the views of those who lean to left of
center.
The directorate, with its deadly pow
er over the nominal head was, of
course, violently opposed by the Brit
ish at Savannah. They also thought
that the bank should have its head
quarters in New York for the logical
reason that New York is the financial
center of the country taking the great
est capital risk. The proponents of
Washington, unconsciously perhaps,
insisted that the bank be domiciled in
the country’s political center. On this
point the original framers of the char
ter have prevailed, but the power of
the directorate has been effectively,
and most ingeniously, emasculated.

McCloy Accepts
What happened was, that in his des
perate search for the successor to Mr.
Meyer, the president, went, among
many others, to John J. McCloy of
New York, who naturally declined
forthwith. Finally, however, he was
prevailed upon to reconsider on the
basis that he would be permitted to
write his own ticket. On those terms
Mr. McCloy accepted and has been re
ceived with universal acclaim. Mr.
McCloy, of course, brings his own con
ception of lending to the bank. On the
question of the all-powerful director
ate, a marvelous solution was worked
out.
Mr. McCloy chose the executive di
rector for the U. S. His selection was
Eugene R. Black, a vice president of
Chase National Bank of New York.
For vice, president of the bank, he got
Robert L. Garner from General Foods
Corporation, formerly vice president,
Guaranty Trust Company of New
York. This means that the president
will not be in constant conflict with
a powerful executive director. Final
ly, but quite informally, it is underNorthwestern Banker, April, 7947

Investments

stood that the directors will subside to
the rank of ordinary company direc
tors and let the new president run the
bank. In effect, he insisted upon and
got authority commensurate with his
responsibility. The charter stands as
written, but if the directorate becomes
obstreperous, it is «expected that Mr.
McCloy will resign. Last, but by no
means least, he got a top-flight com
mercial banker from Canada to accept
a post of director. Mr. Graham Ford

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Towers was of the horde who had de
clined the presidency on the ground
that the president should be an Amer
ican.

Market Developments

Perhaps the most significant devel
opment in high-grade investment mar
kets in recent months has been the
adjustment of relative prices of gov
Run Sensibly
ernments and municipals. In the past
Mr. Towers’ acceptance is inter
year governments declined and rallied
preted as an indication that he thinks
part of the way back. Municipals, on
the bank may yet be made to run
the other hand, declined more, and
smoothly and as a sign that Canada—
more violently, and are now at new
one of the least likely early borrowers
lows for many years. The bulk of the
—has some confidence in the institu
divergence between the two types has
tion. The bank, of course, will be en
taken place in the last 90 days. Thus,
tirely reoriented and the resignation
a bearish attitude on municipals as re
of Mr. Collado, a former State Depart
cently as last November has been en
ment protege of Will Clayton, as exec
tirely justified.
'
utive director was inevitable and was
The spread, in yields, between gov
followed by submission of the resigna
ernments and municipals a year ago
tions of his host of appointees.
was just a shade more than 0.80 per
It is reasonably clear that the bank
cent. That is, long municipals were up
will start modestly, making loans to
to a 1.2 per cent basis when long gov
borrowers who likely will be able to
ernments yielded more than 2 per cent.
at least contemplate repayment. The
Since then, municipals have declined
rates will be high because if the bor
to about a 1.90 per cent basis and gov
rowers’ credit was good enough to
ernments produce about a 2.20 per cent
justify a low rate, they could obtain
yield. An 0.80 per cent advantage has
accommodation elsewhere. Inability to
shrunk to a mere 0.30 per cent, without
get the money elsewhere is a prerequi
regard
to the tax exempt attraction of
site to a loan in any case.
municipals.
Mr. McCloy’s job is not an enviable
The time has come, then, to reap
one. Indeed, the usually conservative
praise municipals. The term includes,
Financial Times of London, while
and this is important, obligations of
eulogizing Mr. McCloy’s approach to
states as well as political subdivisions
the problems ahead, also observed:
thereof. It is important because the
“ No one envies McCloy in his task for,
states are well started on a long series
in many respects, the World Bank is
of emissions of veterans’ bonus bonds.
one of the craziest contraptions ever
Tax Exemption
devised by planners.”
A fly in the ointment with which
Nonetheless, the whole atmosphere
and background which persuaded this municipals are ordinarily polished is,
column to suggest that any debentures of course, the fact that the price in
offered for investment by the bank be cludes an allowance for tax exemption..
viewed with considerable skepticism This could, but probably won’t be,
has been changed for the better. Com abolished. Or, but hardly soon, the
mercial bankers are now fully war shelter could become less valuable.
ranted in at least looking into what
The ultra conservative approach is
ever the bank may offer.
to disregard tax exemption and to buy

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Northwest ern Banker, April, 1947

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Federal Reserve Bank of St. Louis

Milwaukee

Chicago

Indianapolis

Detroit

Investments
municipals, if at all, just as though
they were taxable. This is not hard
for the country’s largest investors, the
mutual insurance companies, whose
tax problems are minute. They will,
and have bought, good quality munici
pals whenever the yield matches that
obtainable from taxable governments.
Since the tax exemption provided
by municipals is valuable to only a
small segment of the commercial
banks, their position is not far away
from that of the insurance companies,
except that they should not buy long
municipals, as the insurance compa
nies may quite prudently do. When,
however, in the course of a year, the
spread between municipals and gov
ernments, as earlier observed, shrinks
from 0.80 to 0.30 per cent, and when
the prospect is that the total supply
of governments may become less while
offerings of municipals may reach rec
ord proportions within a year, the
commercial banks may quite properly
put on their agendas the question of
investing in forthcoming municipal
bonds. In fact, the move is under way.

Currently, the same classifications are
so close together between 2% and 3
per cent that the distinctions (as to
yield) are largely academic. There
couldn’t be a louder warning. The
shrewd investor will make his distinc
tions solely on the basis of quality.
There remain two approved types.
Equipment t r u s t obligations and
(when yields match those of taxable
governments) municipals. In both
cases, the supply promises to increase
and prices should become appealing.
Why, then, not make ready for these
prospective buying spots?—The End.

ally prosperous with enormous cash
reserves.
In a general way, investment policy
for commercial bankers may be sum
marized along these lines: Govern
ments are under strong controls and
likely will not fluctuate widely. Cor
porates as a whole are too close to
governments. Corporates within them
selves, do not provide differentials
commensurate with increasing risks.
Fifteen years ago, fourth grade cor
porates yielded almost 11 per cent;
third grades, 8 per cent; second grades,
QV2 per cent, and top grades, 5 per cent.

FICB CONSOLIDATED DEBENTURES
o n e

More Municipals Ahead
There is, however eager investment
bankers are to secure the interest of
commercial bankers, no great need to
rush into the municipal market. Some
have come; more are ahead. The pric
ing of some of these out-size issues will
have to be realistic if they are to be
safely lodged with permanent invest
ors. Commercial bankers may still be
choosy and pick their spots. It is, how
ever, worth remembering that the bulk
of the new offerings will be excellent
credits. State governments are unusu-

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IN S U R A N C E

Five W ays to Help You
Becom e a Better Producer
Improving Your Performance at Selling Interviews
Will Build Prestige Among Future Prospects
By GEORGE MALTBY
Equitable Life of Iowa
Kansas City, Kansas
YOU want to be a $250,000 pro
D Oducer?
I do, and I believe you
do, too. Maybe many of you do
that or better. Even so, perhaps you
can get an idea or two here that will
help you.

Increased Taxes
Prospects talk
1■ creased
taxes

a lot about intaking all their
money. I sold one fellow when he
raised that objection although I had
no thought of selling him in the begin
ning. I fyad fixed him up on a mini
mum income program. You know—we
take care of the doctor, the undertaker,
pay his bills and $100 per month until
Johnnie is on his own. This fellow
thought he had all he needed and was
through. He needed more but would
not buy from me. He said his income
tax was going to be nearly $800. He
was not angry, he was boasting. I told
him that we would have to take about
$30 a month for ten years from his
program and make Uncle Sam the ben
eficiary. You know the story. He was
a lawyer. He needed an additional
lump sum of $3,000 because of Uncle
Sam. So he bought $3,000 in ordinary
life for taxes, etc., and left his pro
gram as it was.
We know that life insurance dol■ lars are a hedge against inflation,
for it takes money that might go for
consumer goods, nonessentials, etc.,
that otherwise would raise prices all
out of reason. Let’s help them put it in
life insurance. We know that Uncle
Sam is doing all he can with the price
fixing idea as a protection against in
flation.
These objections are clubs in pros

pects’ hands, protecting them from be
ing sold. Let’s not let them push us
around with those excuses.

Look at Grandpa
Now here is a tough one: Six per
■ cent low taxes—3 per cent high
taxes. A dismal outlook for the fel
low who wants to retire or prepare for

G EO R G E K. M A L T B Y
“ Improve Your Performance”

old age. Figure it out for yourself.
You can’t retire on interest alone any
more. Grandpa could, but you can’t.
Let’s look at grandpa—back in the
gay nineties.
1. He made $125 to $150 per month.
2. Walked to work or took a street
car.
3. He carried his lunch.
4. He bought his home and gradual
ly paid for it.

5. He carried about $2,000 to $3,000
20-pay-life.
6. He saved the rest at 6 per cent.
7. It took about 30 years, but grand
pa finished with money. He retired on
6 per cent.
The 1947 fellow has a problem. He
has to save twice as much to do the
job and. he can’t do it unless he digs
into principal. Social security takes
care of part of it. Endowment at age
65 is his next best bet. Let’s tell these
1947 young fathers and expectant fath
ers this story. They will listen, I’m
sure.
Just what are you—a salesman or
■ a collector? Joe was with our
company 25 years. He sold 50 to 100
policies a year. Averaged about $100,000 per year. Ninety per cent of his
cases paid him in cash when he called.
Imagine how that would multiply over
the years. Think of the calls he had
to make to collect. Joe finally burned
out. He just could not make the
rounds. His debit got too big. He
failed because he did not solicit the
man with a check book. Remember
the check book prospect is the best bet.
He saves you shoe leather, saves lapses
and saves you. There are more check
ing accounts today than ever before.
me, performance is the solution
5■ To
to the whole thing. If you want
to be a $250,000 producer, brush up
on your performance. It doesn’t mat
ter if you are pulling teeth, preaching
the gospel, taking out tonsils, practic
ing law or selling insurance. You had
better put personality into your calling
or along will come a personality boy

Scarborough & Company

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

Insurance Counselors 1
F IR S T

N A T IO N A L , B A N K

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

B U I L D IN G

•

C H IC A G O

IL L IN O IS

•

STATE

- , to Banks

4325

Northwest ern Banker, April, 1947

Insurance

with “umph” and cut into your busi
ness.
You can improve your performance
in front of your audience by building
up your approach and your interview.
A good producer gets one app in five
interviews; a fair producer can write
one app in 15 interviews, a poor pro
ducer gets an app only now and then.
He fails in his act. It is apparent that
if you want to get in the quarter mil
lion dollar class you have to be a good
performer. Your audience applauds,
they like your show and tell their
friends. Then you get to put on your
show before an ever increasing audi
ence. Pretty soon this fair performer

finds he can charge more for his act,
he can put on $l,000-$2,000 shows. He
gets his act down pat and puts on 10
or 15 thousand dollar extravaganzas.
Then the sky is the limit and if you
see his show it will cost you.
It’s not how many people you will
see today that counts. It’s how many
people will see you today. Brush up
on your performance and more people
will see you. Let’s assume you can
read the rate book efficiently. You get
in to see the prospect. You open up
with your approach, canned, but nat
ural. Now you are in a position to
bring home the bacon, and it is here
that that much used word prestige

Resources of

OVER 2/900,000 DOLLARS
Experience of

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

Surety Divistoti
The StateAutomobile Insurance Association
DES

MOINES,

IOWA

L o w C ost, N o n -A s s e s s a b le

FARM LIABILITY INSURANCE
fo r Y o u r F a rm e r C lien ts
Allied Mutual pioneered this worry-free protection which
defends the farm owner in case cattle get into neighbor’s
corn, loose horse injures motorist on highway, hired man
is hurt by tractor— or any one of a hundred other common
farm hazards. Up to $250 medical, surgical, hospital pay
ments for hired men or hired girls regardless of respon
sibility. Essential protection. Easy to interest farmer.
Investigate for your agency. Write

ALLI ED M U T U A L
CASUALTY COM PANY
,,

_ ....

Hubbell Building

Northwest ern Banker, April, 1947

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

(g f
\ «gS M B P S ?/

Harold S. Evans, President
,,

Des Moines 7, Iow a

DES MOINES

comes in. Prospects are going to lend
a more attentive ear to an agent he
knows personally or by reputation.
—The End.

Employers Mutual Casualty
M. J. Wilkinson, a member of the
board for nine years, was elevated to
vice president of the Employers Mu
tual Casualty Company of Des Moines
at the company’s annual meeting. Mr.
Wilkinson also will continue as super
intendent of agencies.
Officers re-elected were John W.
Gunn, president and treasurer; John
F. Hynes, vice president and secretary;
W. Z. Proctor, general counsel, and
H. A. Watson, assistant secretarytreasurer. In a new appointment, R.
H. Chatfield was named assistant treas
urer.
Re-elected for three-year terms as
directors were W. H. Brenton, Mr.
Hynes and Mr. Wilkinson, all of Des
Moines, and Dr. R. W. Wood of New
ton. Holdover directors are Mr. Gunn,
R. W. Weitz, Mr. Proctor, Dr. L. E.
Kelly, Amos Pearsall and Carl Muelhaupt of Des Moines; Frank Kohrs,
Davenport; D. E. Baughman, Fort
Dodge, and H. L. Hjernstad, Red Wing,
Minnesota. Mr. Brenton is president
of the Iowa Bankers Association.
To keep pace with the growth of the
company’s business, President Gunn
announced plans for an extensive re
modeling of the home office building
this year to provide additional office
space. Employers Mutual now has
325 employes, he reported, and oper
ates in 23 states.
Premium volume in 1946 reached a
new high of $9,255,000, for a gain of
$2,800,000 over 1946, Mr. Gunn reported.
Admitted assets increased $1,800,000
to a total of $10,955,030, and the surplus
to policyholders now totals $2,123,908.

Appointments
Appointment of Reuben Ingvald
Jacobson as associate actuary of North
western National Life Insurance Com
pany of Minneapolis and promotion of
Richard H. Tallman to associate actu
ary were announced by O. J. Arnold,
president.
Mr. Jacobson will conduct premium
rate research and related matters,
while Mr. Tallman will be primarily
concerned with general supervision of
the company’s actuarial department,
Mr. Arnold said.
Mr. Jacobson, 40, is a graduate of
Luther College, Decorah, Iowa. He
taught mathematics at the University
of Pittsburgh, 1930-32, and studied ac
tuarial science at the University of
Iowa, 1932-33, then joined the actuarial
department of the Prudential until
1942 when he became assistant actuary
of the Colonial Life of New Jersey. He
was promoted to associate actuary in

Insurance
1943, and actuary a year ago. He is
a Fellow of the Actuarial Society of
America and of the American Institute
of Actuaries.
Mr. Tallman, 36, has been a member
of Northwestern National Life’s actu
arial staff since 1941 and assistant actu
ary since 1944. A graduate of the Uni
versity of Saskatchewan, he was asso
ciated with the Canadian Insurance
Department at Ottawa from 1934 until
he joined NwNL. He is an Associate
of the Actuarial Society of America
and of the American Institute of Actu
aries.

Reaches High Mark
Total life insurance of the Policy
holders National Life Insurance Com
pany of Sioux Falls reached the high
mark of $44,442,000 at the end of 1946,
according to the company’s recent fi
nancial statement. This was a gain of
$5,500,000 for the year.
Total assets increased by a million
dollars to a total of $6,202,000.
The Policyholders National Life is
licensed in the states of Iowa, North
and South Dakota, Minnesota, Nebras
ka, Wyoming, Montana, Washington
and Wisconsin. It is especially well-

known to bankers since it has many
banker agents.

accuracy, more likely was just a happy
circumstance. Time and similar future

Slight Decline
A decline of approximately 4% per
cent in sales of new ordinary life in
surance during 1947 compared to 1946
is foreseen in an economic analysis
made by Northwestern National Life
of Minneapolis, O. J. Arnold, president,
announced. The estimate placed prob
able ordinary sales of all companies in
1947 at about $14,400,000,000, assuming
that past relationships between life
insurance sales and optional spending
persist.
The study, under the direction of
Stahrl Edmunds, the company’s eco
nomic analyst, is similar to one made
by NwNL in June of last year which
calculated that all companies would
sell $15,100,000,000 of new ordinary dur
ing 1946. Year-end figures which now
show that actual sales were $15,092,307,000 indicate that the estimate was
off by only five hundredths of 1 per
cent.
“ The study was purely an experi
ment,” Mr. Arnold pointed out, “and
we recognize that its almost negligible
margin of error, far from proving any

Bankers:
W e specialize in
writing

Automobile
and

Fire Insurance
★

CENTRAL STATES MUTUAL
INSURANCE ASSOCIATION
Mt. Pleasant, Iow a
E. A. HAYES,

P re s id e n t

O. T. WILSON,
E s ta b lis h e d

S e cre ta ry

1929

54th ANNUAL FINANCIAL STATEMENT
As of December 31, 1946
A D M I T T E D

A S S E T S

Mortgage Loans .........................................$ 213,788.86
Bonds and Stocks......................................... 2,639,832.68
Deposits in Banks....................................... 1,159,289.18
Building and Loan Association Shares. .
50,000.00
Agents’ Balances .........................................
80,805.77
Reinsurance Receivable .............................
34,333.55
Interest Due and Accrued.........................
12,953.06
Home Office Building.................................
130,000.00
All Other ....................................................
8,254.05
T otal........................................................ $4,329,257.15

LIABILITIES
Reserves:
Losses and Claims...................................$ 281,390.80
Unearned Premiums .............................
479,646.13
Salaries, Rents, Expenses, Etc...........
16,823.24
Taxes (Federal, State andOther) . . . .
121,304.96
Contingent Commissions .....................
205,589.77
All Other ................................................
11,151.24
T ota l........................................................ $1,115,906.14
Surplus as Regards Policyholders............ 3,213,351.01
T otal........................................................ $4,329,257.15

Surplus O v er A ll L iabilities $3,213,351.01

FARMERS MUTUAL HAIL INSURANCE COMPANY OF IOWA

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

C. P. RUTLEDGE, President

1019 High Street. Des Moines

Northwest ern Banker, April, 1947

Insurance

studies alone will tell,” he stated, but
emphasized the significance of this
initial attempt to apply economic data
from fields outside the life insurance
business toward determining the mar
ket for new ordinary life insurance.

The Book Fair
In the huge square across from the
Capitol building, there was a Book
Fair. The United States, England,
Russia and many South American
countries were represented. It took us

(Continued from page 19)

three visits around the Fair before we
located the United States booth. It
was a small and insignificant affair,
and not very popular. Its main theme

at the same time. Their Prado, with
its tree-lined walk, is the so-called
Champs Elysees of Havana, but its
beauty doesn’t compare. Havana has
a charm and beauty all its own, but
to compare it with Paris is sheer folly.
There is only one Paris.

seemed to point to the great develop
ment of our country in the past twenty
years. Their most effective propa
ganda were the comic books they
handed out, which dealt with the life
stories of the great American leaders
and the South American ones. We

CUBA

found these comic books being read
by everyone from shoe shine boys
to well-dressed Cubans. The English
booth was a little larger than ours and
devoted itself to common English
works in the best British tradition.
Neither the w ell laid out booth of the
British, nor the comic books of the
Americans drew the crowds which the
Red Star dominated center did. The
Russian booth was the largest and the
most popular place there. They fea
tured Gorky, one of Russia’s most pop
ular novelists, and with a tabloid of
his life in pictures and pamphlets. The
most interesting, but alarming feature,
was the motif on the outside of the
booth. It was the Cuban coat-of-arms
with the Red Star of Russia resting on
top. Judging from the always crowded
Russian center, here was solid proof of
the growing Russian influence . . . not
in Germany, not in Greece, but right
in our own back yard.

Communism— Political TNT
Cuba is a land of “growth” . . .
growth in industrial development, in
National spirit, and in political TNT.

Sharing our knowledge of
FO R EIG N T R A D E FIN A N CE
The resumption of international trade has raised
many questions about the credit instruments through
which a large part of this trade is financed. To corre
spondent banks and customers transacting overseas
business, The First N ational Bank offers the
cooperation o f its Foreign Banking Department.
Officers of this department can render sound advice
based on long experience, on credit arrangements,
remitting funds, exchanges in foreign monies, risks
involved in import and export transactions.
This bank’s network of foreign banking contacts,
developed through eighty years, enables us to offer
unusual service in matters of foreign collections and
remittances. In addition, information is available
regarding the financial responsibility of business
houses throughout the world.

FOREIGN BANKING DEPARTMENT

The First N a tio n a l B an k
of Chicago
MEMBER

FEDERAL

Nort hwest ern Banker, April, 1947

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

D EPO SIT

INSURANCE

CO RPOR ATION

Before Ave even reached this land of
Ruin and cigars we heard from Cuban
people on our plane stories about the
growth of the “Conimy” movement.
They believed that it not only equalled
but excelled the Communist develop
ment in the States. With this in mind
we kept an eye open for signs of this
growdh. It Avasn’t hard to find.
There are 150 Russian agents in the
Russian Embassy, to “take care of the
Russian nationals Avho liAye in Cuba.”
From Avhat we could glean there are
fewer Russians living on the Island
than there are people to take care of
them. In comparison, the Chinese
have 3 or 4 men in their Embassy to
watch out for 20,000 Chinese nationals.
The Russians are kept busy getting
their hands covered with printers’ ink,
as they publish “information papers”
Avhich receiAye \Aride circulation among
the dock and sugar Avorkers.
Another interesting bit of propa
ganda wyas the poster wre saw' in evi
dence all over Havana. It pictured a
hand extending from South America,
over the Atlantic, to meet another
hand, coming from Russia, Avhich
sweeps over Avestern Europe.

The President
While touring Havana with our Eng
lish driver, John Lewis (no relation to
the bushy eyebrows), we did the
rounds of President Ramon Grau San
Martin’s establishments . . . the Presi
dential Palace and the Capitol. We
became very much interested in see
ing this mild-mannered man who fre
quented these places. Much to our
surprise our driver said it was very
(Turn to page 40, please)

37
Commercial Club, and a director of the
Twin City Wholesale Grocery Com
pany of St. Paul. He is survived by a
son, John, and three daughters, Ther
esa and Frances Notermann of Vic
toria, and Mrs. Axel Hanson of Minne
apolis.

M innesota

NEWS

Report Fast Progress
A. W. SANDS
President
St. Paul

ROBERT E. PYE
Secretary
Minneapolis
J

Knudsen Named President

Remodel Austin Bank

O. S. Knudsen has been elected pres
ident of the Northwestern State Bank,
Dawson, Minnesota, to fill the vacancy
left by the recent death of Dr. C. M.
Johnson who held that position more
than 16 years. Mr. Knudsen formerly
was executive vice president. Glen
E. Blomquist, cashier, has been elected
vice president and will continue in
this dual executive capacity. Other
personnel at the bank remain the same.
A complete remodeling of the bank
is in the final stage and should be com
pleted around the middle of May. A
34-foot extension to the bank building
is being added, in addition to new
vaults and fixtures. The Northwestern
State Bank promises to be one of the
most modern banks in the northwest
section of Minnesota.

New marble tellers’ “windows” have
been installed in the Austin State
Bank, Austin, Minnesota, as a part
of extensive alterations in the build
ing that have been under way since
last summer. The windows, of an at
tractive, modern type, replace the high
wooden cages and give more space in
the portion of the lobby used by pa
trons. A new bank entrance and fur
ther additional alterations are part of
the improvements that will be made
before the work is completed.

Promotions at Glenwood
E. A. Walter, vice president of the
Glenwood State Bank, Glenwood, Min
nesota, since 1936, was named presi
dent of that institution last month,
succeeding Julius O. Haugen, who re
signed earlier because of ill health.
Louis Robards, cashier, was named
vice president in Mr. Walter’s former
position, and Howard Williams, assist
ant cashier, was advanced to the cash
ier’s job.

Hold Open House
Officers, directors and employes of
the First National Bank, Mankato,
Minnesota, welcomed bank patrons
during open house last month in cele
bration of the grand opening follow
ing extensive redecorations and re
modeling. The interior banking rooms
were reorganized to provide greater
convenience to the public and efficiency
of operation, thus putting the First
National among the best in the state
for modernized banks.
The improvements include modern
counters, tellers’ windows and screens;
new and larger officers’ quarters; new
entrance for after banking hour use
for time payment customers; new
acoustical equipment and lighting, and
a number of new machines and items
of equipment.

Farm Credit Director
Paul E. Miller, director of extension
at the Agricultural college, University
of Minnesota, has been named directorat-large of the Seventh District Farm
Credit board of St. Paul.
The appointment was made by I. W.
Duggan, governor of the Farm Credit
administration in Washington.
The Seventh district comprises Min
nesota, North Dakota, Wisconsin and
Michigan and members of this board
also are directors of the Federal Land
bank of St. Paul, the Intermediate
Credit bank, Bank for Cooperatives
and the Production Credit Corpora
tion.
i
Mr. Miller has been with the uni
versity 35 years, and has been director
of agriculture extension since 1938.

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

On Hanska Bank Board
H. T. Christensen, Linden township,
has been appointed a member of the
board of directors of the State Bank
of Hanska, Minnesota, to fill the va
cancy created by the death of P. J.
Blein. The latter had served as a
member of the bank board for many
years.

Michael Notermann
Michael Notermann, 68, vice presi
dent of Victoria State Bank, Victoria,
Minnesota, and a prominent merchant
there for 50 years, died last month.
Mr. Notermann was proprietor of the
Notermann Brothers general merchan
dise firm; president of the Victoria Oil
Company; president of the Victoria

The Richfield State Bank, Richfield,
Minnesota, which opened for business
in February, reported last month that
in its first 25 days of operation, total
resources had reached nearly $590,000.
Selmer L. Jerpbak is president and
William G. Kirchner, vice president
and cashier.

To Northfield As Cashier
Lloyd Johnson, assistant cashier at
the First National Bank, Windom,
Minnesota, has been elected cashier of
the Northfield National Bank and
Trust Company, Northfield, Minnesota.
His successor at the First National
Bank had not been appointed by Presi
dent O. J. Nelson at the time of the
announcement.
Mr. Johnson is returning to his home
town, where he finished school, includ
ing St. Olaf college.

Change Lake City Name
Legal proceedings to change the
name of the Lake City Bank and Trust
Company, Lake City, Minnesota, to
Lake City State Bank were underway
last month. The bank has eliminated
the trust part of its business in recent
years, so is dropping the Trust desig
nation from its name. The application
for change was made to the Minnesota
Commissioner of Banks.

1,200 At Open House
Approximately 1,200 people from
Montevideo, Minnesota, and the sur
rounding territory visited the Union
State Bank last month to view the
institution’s enlarged and improved
banking quarters.
The bank was resplendent with flow
ers, 23 floral “greetings” having been
sent for the occasion by business asso
ciates and friends of the firm. Many
compliments were paid to bank officers
on the institution’s spacious new quar
ters.
Present for the occasion were repre
sentatives of most of the banks in the
West Central Clearing House Associa
tion, as well as a number of Twin City
banking officials and some former
officers of the local bank. Out of town
guests included:
From the Northwest Bancorporation: R. F. Mactavish and Carl E. Voigt,
both vice presidents; Theo. Albrecht,
one of the organizers of the local bank
and now director of the Northwest
Northwest ern Banker, April, 1947

Minnesota News

Bancorporation; and W. H. Netland,
formerly of the Montevideo bank, now
with the contact department of the
Bancorporation.
From Duluth: Rex Hatten, formerly
president of the Montevideo bank, and
Mrs. Hatten.
From the Northwestern National
Bank, Minneapolis: Keith Barnett.
From the Stockyards National Bank,
South St. Paul: R. L. Smith, president,
and J. C. Moore, vice president.
From the Federal Reserve Bank,
Minneapolis: W. H. Turner.

Albert E. Pfiffner
Albert E. Pfiffner, former president
of the First National Bank of Litch

field, Minnesota, died in his home last
month.
Mr. Pfiffner, who retired from the
presidency of the First National Bank
of Litchfield January 1st, suffered a
heart attack.
He is survived by his wife and two
sons of Litchfield.

Totals at the bank in the statement
amounted to $4,220,423 with a surplus
of $100,000.
A. E. DeSutter, president of the
institution, said that he attributed a
great part of the increase in deposits
to rising prices of livestock and grain.

W. R. Spensley
Large Deposit Increase
Deposits at the Farmers and Mer
chants State Bank, Minneota, Minne
sota, increased $334,069 between Janu
ary 1st and March 1st, a recent state
ment of condition shows.
Deposits at the bank the first of
March totaled $4,027,400, while on the
first of January they were $3,693,331.

M o d er n M a c h in e s

'PnxU
tce"M
foie

William Roscoe Spensley, 68, cashier
of the Security State Bank, Hibbing,
Minnesota, and one of Hibbing’s prom
inent civic leaders, died last month as
the result of a heart attack. Mr. Spens
ley had been in ill health for the past
year.
He went to Hibbing in 1907 as assist
ant cashier of the Merchants and Min
ers State Bank. He organized and be
came president of the Security State
Bank in 1912, and has been a member
of its board of directors and promi
nent in banking since, not only in
Hibbing but on the Range and in the
state as well.

Appoint Credit Manager

¿.'A
■V u

w it h

o d ern

eth o d s

The modern farmer is a factory owner and operator.
He serves in the dual capacity o f management and
labor. Planning the production and equipping his
factory with the most effective “ machine tools” are
but a part o f his work. As a skilled craftsman, Re
will use those tools to achieve maximum produc
tion with the most economical use o f his raw
materials— and the most important raw material
to the farmer is the fertility o f the soil.
Modern Methods o f farming demand modern “ machine tools”
that are versatile, dependable, and economical in operation
and upkeep— t o o l s that represent a sound investment for
management and maximum effectiveness in the hands of
skilled labor.
More and more farmers are equipping their farms with
M M M o d e r n M a c h i n e s and Tractors. This increased de
mand makes immediate delivery difficult, but M M M o d e r n
M a c h i n e s are worth waiting for!
Your M M Dealer has complete information on M M
M o d e r n M a c h i n e r y , Tractors, and Power Units for farm use.

MM TRACTORS ARE VISIONLINED

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M I N N E A P O L I S 1, M I N N E S O T A , U. S. A.

Nort hwest ern Banker, April, 1947

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

om pany

Announcement was made last month
by E. T. Sletten, president of the Free
born County National Bank of Albert
Lea, Minnesota, that Allen L. Sponberg has been appointed to direct op
erations of the bank’s new timepay
bank credit financing plan.
Mr. Sponberg is a native of Bricelyn
and was graduated in 1933 from the
University of Minnesota. From 1935
to 1940 he was engaged in credit work,
business promotion, and other activ
ities for a finance organization operat
ing in southern Minnesota, South Da
kota, Iowa and Wisconsin. He later
was engaged in sales promotion work
at Wausau, Wisconsin, for another
finance company from 1940 to 1942.
During the war Mr. Sponberg spent
four years in the south Pacific with
the infantry and army transportation
corps.

Elect New Cashier
At a recent meeting of the directors
of the Citizens State Bank, Roseau,
Minnesota, Ronald Parr was elected
cashier of the bank, succeeding C. B.
Dahlquist, who was elected active vice
president.
There was no other change in the
official family of the bank. J. R. Chap
pell of Winona remains president; Dr.
J. L. Delmore, Roseau, vice president,
with other directors being Carl Listug,
M. J. Hegland, Leland Lee and C. D.
Tearse, the latter of Winona.

W hat H e W as W aiting F o r
“Why was Adam’s first day the long
est?”
“Because there was no Eve.”

ORE than 1,000 bank executives
are expected to attend the Fed
eral Reserve Bank’s conference
of Ninth district bankers in Minne
apolis, April 26, according to Presi
dent John N. Peyton. Oliver S. Pow
ell, first vice president of the bank,
will lead a panel discussion.

Wallace L. Boss, vice president of
the First National Bank of St. Paul,
has announced appointment of Donald
Li. Smith to the department of banks
.and bankers as a representative. Mr.

B y E. W. KIECKHEFER

capacity of cashier or assistant cashier
for nearly 28 years.

Special Correspondent
Northwestern Banker

Bank of Minneapolis and the First
State Bank of Watford City, North
Dakota.
C. Herbert Cornell, cashier of Uni
versity National Bank, has been
elected cashier of the Fidelity State
Bank, succeeding V. E. Mikkelson
who resignd. The directors also elected
Henry Johnson, attorney and member
of the board, to be chairman.

Bank Officers
The appointments of a cashier and a
new director of the University Nation
al Bank, Minneapolis, are announced
by President Russell L. Stotesbery.
Harold R. Higley was named cash
ier. Arthur W. Erickson was named
a director.
Mr. Higley, a native of Ocheyedan,
Iowa, entered the University National

C. M. Jorgenson, president of the
Fourth Northwestern National Bank
of Minneapolis, has been elected treas
urer of the Minnesota Hospital Serv
ice association. Harry E. Kern, vice
president of the First National of St.
Paul, was named assistant treasurer.

W. P. Netzke Resigns

D O N A L D L. S M IT H
Banks and Bankers Department

Smith has been with the bank since
1939. After almost four years in the
air forces, he returned to the bank
in December, 1945, and joined the de
partment of banks and bankers last
April.
E.
S. Jones, president of ChicagoLake State Bank, has announced the
appointment of Richard H. Putnam
as cashier. He came to the ChicagoLake after five years in the navy’s
real estate division. He formerly was
employed by the Lincoln National

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Federal Reserve Bank of St. Louis

Wm. P. Netzke has resigned his
position as assistant cashier at the
State Bank of Morgan, Minnesota.
Mr. Netzke, who has been affiliated
with the bank since 1919, came to Mor
gan from Clements, where he was em
ployed in the bank, at the time W. P.
Moore, former bank examiner, pur
chased the interest in the bank from
H. M. Ball. He has continuously
worked in the bank and served in the

H. R. H IG L E Y
Asst. Cashier

A. W . E R IC K SO N
Director

Bank in 1930. He has been successive
ly a teller, auditor and assistant cash
ier. Before joining the University
Bank, he was assistant cashier of the
Hancock National Bank, Hancock,
Minnesota.
Mr. Erickson, a native of Minneap
olis, started his banking-insurance ca
reer in the accounting department of
the Soo Line Railway Company. After
a brief business career in southeast

SPECIAL OFFER
Accident Insurance, $5000 Principal Sum for
only $2.00 Paid Up in Full to the Middle of
next lune.

MINNESOTA COMMERCIAL MEN'S ASSO CIATIO N
2550 Pillsbury Ave. So.

Minneapolis 4, Minnesota
Northwest ern Banker, April, 1947

Minnesota News

Minneapolis, he entered the University
National Bank to take charge of the
insurance department in 1923. In 1932
he became secretary-manager of the
University National Agency, an in
surance company. He occupies that
position today.

CUBA
(Continued from page 36)
possible that we might be able to do
just that, as the President will see
most anyone from the United States,
who has a legitimate reason, whereas
it is most difficult for a Cuban to re
ceive an audience with him. When we
told the “ Casper Milquetoast” in the

outer office that we desired to see the
President of the Republic, he imme
diately shuffled out of the room amidst
much whispering and excitement of
the other clerks. We were ushered in,
with ceremony, to meet Commissioner
Eusebio Dardet, a most charming per
son. Our hopes and desires were short
lived, for the President would t^e able
to see us two days from then, which
was the day we were leaving Cuba.
Time will tell whether we made as
great a mistake not staying to see him,
as the publisher of the N o r t h w e s t e r n
B a n k e r did, by not staying in Rome to
keep his appointment with Benito
Mussolini in 1929.

Live Stock Experts

CARL L. F R E D R IC K SE N
President
M A R K A. W IL S O N
Vice President

Every phase of the live stock business
is routine knowledge at the Live Stock
National Bank of Sioux City. From feed
lot to packing plant, our officers are
entirely familiar with all live stock
operations.

W IL L IA M G. N E L S O N
Vice President
W IL L IA M C. SCH ENK
Asst. Vice Pres, and Cashier
C L IF F O R D L. A D A M S
Asst. Vice President

Every day, this bank is engaged in
financing the raising and marketing of
live stock. Make sure of speedy and
accurate handling of your live stock,
grain and hay items by using this bank
as your Sioux City correspondent.

JO H N S. H A V E R
Asst. Cashier
JAM ES L. S M IT H
Asst. Cashier and Auditor
K IN L E Y W . S M IT H
Asst. Cashier

Live S t o c k
N

O F VS I O U X

CITY,

M E M B E R

"fv-

N orthwestern Banker, April, 1947

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Federal Reserve Bank of St. Louis

F .D .I.C .

IO W A

Bank Unions
The Cubans have formed unions
among all employes of the banks, ex
cept the officers. It is difficult to fire
anyone, unless the Union gives con
sent, and for that reason many prob
lems have arisen in the banks.

Havana Highlights
Interesting sights which caught our
fancy were . . . the large number of
policemen p r e v a le n t everywhere.
There are 4,000 alone in Havana, or
one policeman to every 140 inhabitants.
. . . The German Embassy which
has been turned over to a Jewish asso
ciation.
. . . The C em etery of Columbus,
where all remains are dug up and put
in one common bone pile if the ceme
tery plot is not paid for in three years.
It is one of the most beautiful ceme
teries in the world, with 7% million
dollars worth of marble tombstones.
. . . The twenty-four carat diamond,
which was stolen from the Capitol. In
this $20,000,000 building the diamond
was placed in the floor, with a 24-hour
guard and all mileage was measured
on the island from this point. Less*
than a year ago the diamond was
stolen and has not yet been recovered.
. . . The Orphan Asylum, where
babies are placed in a revolving basket
on the outside of the wall, and their
weight automatically rings a bell and
swings the basket and its precious
cargo inside the orphanage. Some
mothers put a memento around their
baby’s neck, and come back years later
to try to identify their child. These
orphans are cared for, educated, and
guaranteed a job with the government
when they become of age, by the
Cuban Republic.
. . . The Centros (clu b s) around
which all Havana social life revolves.
Members pay about $2 a month, for
which they receive such benefits as
free hospitalization and medical atten
tion for life, instruction in languages
and many other subjects. Some clubs
claim as many as 40,000 members, so
they are not exclusive affairs. Many
Cubans say they were formed in order
that the white people could have a
place to get away from the large negro
population.
. . . The “ Toledo,” which not only
boasts of excellent food, but lots of
Spanish atmosphere. It is a small
Spanish town in miniature, with tiny
streets, red-tiled roofs and an abun
dance of reservados (private eating
rooms).
Thus ended our trip to Cuba with its
kaleidoscopic and colorful background
of history and its present place in the
current events of a communistic cir
cle on this side of the Atlantic.—The
End.

41
is reported much improved and has
returned to Huron.

South Dakota

NEWS
L. C. FOREMAN
President
Elkton

South

James T. Bigelow, a dominant busi
ness figure in Flandreau, South Da
kota, during the active period of his
60 years’ residence, died recently at
the family home just three weeks short
of his 80th birthday.
Mr. Bigelow engaged in various
branches of business in earlier years,
among them the furniture trade and
later the insurance business, but in
the early 1900’s started in the banking
business, being connected at various
times with the Moody County Bank,
the Flandreau State Bank, and finally
with the First National Bank, as cash
ier and later as president.

JBnhotuG roup M e e tin g s

officers in each group of the
T HE
South Dakota Bankers Association
are working on programs for the group
meetings which are to be held as fol
lows: Group VII, Rapid City, April 14;
Group VI, Mobridge, April 15; Group
IV, Aberdeen, April 16; Group V, Hu
ron, April 17; Group III, Mitchell, April
18; Group II, Sioux Falls, April 19;
and Group I, Vermillion, April 21.
Tom Collins, publicity director for
the City National Bank and Trust
Company of Kansas City, Missouri, and
a noted humorist and philosopher,
will speak at each one of the meetings
on the subject “ Mental Reconversion” .
Also featured on each of the pro
grams will be a talk on “ Current
Trends in Installment Banking” by
Chas. E. Harmon of Minneapolis, who
is assistant vice president of the North
western National Bank. Mr. Harmon
will make his opening statement short
and snappy and a round-table discus
sion on installment banking will fol
low.
President Foreman plans to attend
all of the meetings and is scheduled to
make a few remarks before each of
them.

Promotions
At a recent board meeting of the
First Citizens National Bank, Watertown, South Dakota, G. E. Hanson and
L. C. Barger were promoted to assist
ant vice presidents from the position
of assistant cashier which they had
formerly held.
N. L. Lind and M. L. Solberg were
appointed assistant cashiers at the
same meeting.

To Rapid City
R. A. Johnson, president of the Bank
of Kimball, South Dakota, has tendered
his resignation in that capacity and
has moved to Rapid City.
The board of directors of the bank
have taken no action to name his
successor as president of the bank.
Mr. Johnson disclosed that he has
bought an interest in a tourist park

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Federal Reserve Bank of St. Louis

GEORGE M. STARRING
Secretary
Huron

J. T. Bigelow

in Rapid City on the south shore of
Canyon Lake, and with three partners,
will complete the building program
in progress there and operate the
camp.

C. L. Johnson
Funeral services for Conrad L. John
son, 53, of Watertown, South Dakota,
were held recently.
In 1912 Mr. Johnson was employed
in the Farmers State Bank of South
Shore and in 1913 went to Goodwin
where he was employed in the First
National Bank until 1917. In 1917 he
returned to Stockholm and became
cashier of the Stockholm State Bank.
He held that position until 1924.

New Bank
A new bank will open jn Frankfort,
South Dakota, as soon as arrangements
can be made for housing the new busi
ness, which is a branch of the Turton
bank.

Banks Advance
Both Rapid City, South Dakota,
banks, the First National Bank of the
Black Hills and the Rapid City Na
tional Bank, bettered their standings
among the nation’s financial institu
tions, it was revealed recently.
The First National advanced from
611th to 540th place among the largest
banks in the country, and the Rapid
City National Bank gained 101 places
in the standings, jumping from 1478th
place in 1945 to 1377th position last
year.
According to the survey the deposits
of the Rapid City National were $11,418,993 as of December 31, 1946, and
the First National boasted a total of
over $28,000,000 on that date.

Returns Home
L. J. Manning, cashier at the Farm
ers and Merchants Bank of Huron,
South Dakota, who underwent an op
eration for the removal of a brain
tumor at the University of Minnesota,

S io u x F a lls N e w s
MEETING of Group 2, South Da
kota Bankers Association, will be
held in Sioux Falls April 9th, accord
ing to Tom S. Harkison, Sioux Falls,
group president.

George C. Fullinweider, director of
the Northwest Security National Bank
and vice president of its Huron branch,
is recovering at his home from an op
eration which he recently underwent
at Rochester, Minnesota.
Dr. S. A. Donahoe, director of the
National Bank of South Dakota, Sioux
Falls, placed champion and reserve
champion Shorthorn bulls in the 34th
annual show and sale of the Interstate
Shorthorn Breeders’ Association in
Sioux City. His prize-winning exhibits
also drew attractive prices, the reserve
champion selling afterward for $1,500
and the champion for $1,015.
Tom S. Harkison, president of Na
tional Bank of South Dakota, was a
member of a delegation from El Riad
Shrine to the annual winter business
session of the Midwest Shrine Asso
ciation in Madison, Wisconsin. He is
assistant rabban of the Shrine.

Permanent fixtures for the Union
Savings Bank, Sioux Falls, are begin
ning to arrive at the bank’s new loca
tion which it has occupied since No
vember 1, 194*5. The marble, steel and
formica is expected to be installed by
May 1st, President W . C. Duffy an
nounced.
C. A. Christopherson, chairman of
the board of the above bank, discussed
“problems of the present and the fu
ture” at a meeting of the Sioux Falls
Junior Chamber of Commerce. He
said the United States debt could be
Northwest ern Banker, April, 1947

South Dakota New s
paid off only by the exercising of rigid
economy, “not by any legerdemain or
by continual spending.” He voiced op
position to repeated requests for gov
ernment funds from various communi
ties and also expressed disapproval of
a proposal for the use of federal funds
for school lunches in South Dakota.
E. N. Van Horne, president of the
Federal Land Bank of Omaha, was
scheduled as principal speaker at the
seven-county meeting of the Missouri
River National Farm Loan Association
at Mobridge.

Tears flowed from the eyes of em
ployes of the Northwest Security Na
tional Bank in Sioux Falls when they
reported for work one morning—and
were greeted by tear gas. They en
joyed a partial holiday while firemen
employed a smoke extractor to cleanse
the bank of gas which escaped when
a night janitor accidentally tripped off
the tear gas system. Traces of the
eye-smarting vapors are still in evi
dence when drawers or books are
opened, President Ralph M. Watson
reports. The gas is kept on tap as a
protective measure in event of a hold
up. This is the third time that tear
gas has been set off unintentionally in
Sioux Falls banks. It happened pre
viously in the old Corn Exchange Bank
and the Union Savings Bank.

I S prompt, efficient collection of
Wisconsin checks and drafts im
portant to you? D o you ever need first-hand facts
about sources of supply in Wisconsin? . . . credit
information? . . . market data? . . . who’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 of
the First Wisconsin National Bank of Milwaukee
can supply the answer.
This bank is the largest in the state, and over
85 per cent of the hundreds of banks throughout
Wisconsin are First Wisconsin correspondents.

Banks and Bankers Division
GEORGE T. C A M P B E L L .................................. Vice President
RICHARD J. L A W L E S S ....................Assistant Vice President
DONALD A. H A R P E R ....................Assistant Vice President

■Member of*
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

FIRST WISCONSIN
NATIONAL BANK
OF

Northwest ern Banker, April, 1947

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Federal Reserve Bank of St. Louis

MILWAUKEE

Tony Westra, livestock and agricul
tural agent for Northwest Security Na
tional Bank, recently had a rare expe
rience—one that few people in the
country have had. Mr. and Mrs.
Westra were staying in Berkeley, Cali
fornia, and got to visit the huge cyclo
tron building at the University of Cali
fornia where work was done on the
atom bomb. They also visited with
Dr. Ernest O. Lawrence, the atom
smasher; his brother, Dr. John Law
rence, medical director of the univer
sity, and Mr. and Mrs. C. G. Lawrence,
parents of the famous brothers. The
Westras were able to see how John
Lawrence is using his brother’s atomic
research for medical purposes. Of
course, the fact that Mrs. Westra is a
cousin of Ernest Lawrence helped
them gain passage to the well-guarded
cyclotron building.
Westra addressed the annual meet
ing of the Elk Point, South Dakota,
Chamber of Commerce and spoke at a
Chamber of Commerce farmers’ night
event at Jasper, Minnesota, the past
month.

L ea rn ed From E x p erien ce
Poker is a game in which a good
deal depends on a good deal.

PIG CLUB
BRINGS HOME BACON
(Continued from page 17)

Heads Williston Bank

checks above $10’ and 5 cents on items
below $10 payable to the Bank of
North Dakota.

Dr. Carroll M. Lund, Williston den
tist, has been named president of the
First National Bank in Williston,
North Dakota. Dr. Lund is a one-time To Increase Stock
R. S. See, secretary of the North
Fargoan.
Following a stockholders’ meeting, Dakota banking board, announced that
directors named John Dickson and J. four state banks have been authorized
C. Snyder, both of Williston, as vice to increase their common stock.
The banks and increases authorized
presidents.
F. E. Stewart, who resigned as cash are: Bank of Rhame, from $20,000 to
ier of the American State Bank in $25,000; Rolette State Bank, from $15,Williston, was named cashier of the 000 to $25,000; State,Bank of Kenmare,
$22,000 to $25,000, and Farmers State
First National.
L. M. Larson, who came to Williston Bank, Crosby, $40,000 to $50,000.
from Wessington Springs, South Da
kota, in July of last year to replace R. Since 1916
G. Rasmussen as executive vice presi
Owen Harding, cashier of the Amer
dent, will remain with the First Na ican State Bank, has been identified
tional temporarily, it was announced. with Williston, North Dakota, banking
W. S. Davidson, president of the since 1916.
American State Bank, announced that
Mr. Harding came to the city from
Owen Harding would replace Mr. Tacoma, Washington, in April, 1915, to
Stewart as cashier.
accept a position with the First Loan
and Investment Company.
He became assistant cashier in 1919
E. H. Trousdale
Elmer H. Trousdale, 62, former prom and held that position until he was
inent Mott, North Dakota, banker who called to serve in the armed forces of
had been living at Bismarck for the the United States February 10, 1941.
last year, died recently. He had been He received his discharge, with the
hospitalized since living in Bismarck. rank of major, in 1946 and returned
Born November 16, 1884, at Grundy to his position with the American
Center, Iowa, he came to Mandan in State Bank.
1907, a year after he was graduated
from Cornell college, Mt. Vernon, Iowa,
and was in the real estate business for
a year before going to Mott in 1908.

Clear at Par
North Dakota state banks recently
were requested to clear at par all
checks sent to them for collection by
the Bank of North Dakota at Bismarck.
Attorney General Nels G. Johnson
said a demand was made upon the
industrial commission to enforce a
law which has been on the books since
1919.
The law provides that all checks
and other items of exchange payable
on demand sent by the Bank of North
Dakota to any state bank or banking
association in the state for collection
must be remitted for at par.
H.
C. Bowers, manager of the Bank
of North Dakota, said state banks have
been charging 10 cents per $100 on

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Federal Reserve Bank of St. Louis

William T. Martin
William T. Martin, who died recently
in Los Angeles, was for many years
a prominent figure in North Dakota.
Coming to the state while still a young
man he homesteaded about eighteen
miles north of Edgeley, and for many
years had substantial holdings of land
in the Jud and Alfred areas.
Later the family moved to Edgeley
and for a number of years Mr. Martin
was associated with the First National
Bank as its president, continuing in
that position until he left in December
of 1919 to go with his family to Cali
fornia.

Bank to Expand
Garrison State Bank, Garrison, North
Dakota, has been authorized by the
federal government to engage in build
ing an adidtion to the bank. The addi
tion will cost about $16,200.

his sow farrows, or if his pig is sold
or dies or fails to farrow, to puy a pure
bred old enough to wean and bring it
on the next annual Pig Day.
From the beginning 31 years ago,
this chain of pigs has not been broken
and this method has enabled the origi
nal pigs to furnish pigs through *the
years for perpetuation of the project.
Also, each boy or girl receiving a
pig automatically becomes a 4-H Club
member, is asked to keep a record
book up-to-date and exhibit his pig at
the annual Inter-State Fair at La
Crosse in a special pig club class. Win
ners receive a free trip to the state fair.
Pigs of the four outstanding breeds
in the county are distributed. These
breeds are Chester Whites, Poland
Chinas, Duroc Jerseys and Hampshires. Always it is attempted to give
a boy or girl the same kind of a pig
as is raised on the farm, if hogs are
kept. Breeds are indicated on the
examination sheets.
Business men of La Crosse express
a great deal of satisfaction when they
see how the pigs they have given away
have been the means of starting off
fine herds that have made good in
comes on La Crosse county farms and
brought a measure of fame to some.

Pride of Ownership
The county agent said about such
a club a year ago, “ The biggest thing
about this project is that the boy or
girl has something that is his own.
Ownership creates pride and these pigs
become the greatest thing in a boy’s
or girl’s life. They make pets of them;
the pigs follow them around like dogs.
Each pig is named, of course, and
some of the names are pretty fancy.
On the day the pig, usually a two or
three hundred pound sow, is sold,
there are tears aplenty flowing on La
Crosse county farms.
“ Every year the annual pig day finds
an enthusiastic crowd of youngsters
and parents turned out, and it is a big
moment when the boy or girl gets his
pig and goes up to the crate to say
‘howdy’ to his very own pig.”
This Pig Club project over the years
has helped build farm purchasing pow
er in the LaCrosse area, and has made
La Crosse a popular trading center for
farm folks. Bankers in other midwest
communities no doubt would find it
profitable to promote similar activities
in their specific trade area, thus help
ing the new generation of farmers in
addition to establishing an excellent
public relations program for their
bank in the community.—The End.
N orthwest ern Banker. April, 1947

F
O
R
91 YEARS
SOUND BANKING SERVICE

U N IT E D

¡S T A T E S

J\fational B A R T K
MEMBER FEDERAI. OEPOSIT INSURANCE CORPORATION

N orthwestern Banker, April, 1947

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Federal Reserve Bank of St. Louis

45
a position as clerk in the Beatrice,
Nebraska, National Bank. She has
been employed in the county treasur
er’s office.

N ebraska

NEWS
GLEN T. GIBSON
President
Gibbon

Attend Treasury Meeting
Glen Gibson, president of t h e
Nebraska Bankers Association, has
been in Washington, D. C., attending
a meeting of the Treasury Depart
ment. He was accompanied by Carl
Swanson, secretary; Bob Stout, presi
dent First National Bank, Tekamah;
and Leland Hall, president of the
Roseland Savings Bank. Mr. Hall re
cently replaced Leon Markham as
Nebraska director of the Savings
Bond Division.
From Washington President Gibson
and Secretary Swanson went to
Chicago to attend the annual meeting
of the Central States Conference,
where they were joined by Vice
President Overly Peck, of Columbus,
Nebraska.

Bond Sales
Nebraska is continuing its good
record of sale of Savings Bonds.
Latest figures show February 1947
sales exceeded the 1946 sales by
$5,403,951.
E Bond sales in February were
$8,196,546.25 or 64.4 per cent of total
sales as compared with 59.5 per cent
in January of this year.
Redemption figures for February
are not available as yet, but in January
E Bond sales were 192 per cent of ma
turities of A and B Bonds and redemp
tions of B, C, D, and E Bonds.
Forty-five counties sold more E
Bonds in February than in January.

Dividend
The 197th consecutive quarterly divi
dend of The Northern Trust Company
was declared by the directors. This
dividend of $4.50 is payable on April
1,1947, to stockholders of record March
18, 1947.

Better Position
Today’s farmer is in much better
position to face the future than the
farmer after World War I, stock
holders of The Sidney-Kimball Na
tional Farm Loan Association were

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Federal Reserve Bank of St. Louis

Enlarge Quarters

CARL G. SWANSON
Secretary
Omaha

told by E. N. Van Horne, president of
The Federal Land Bank of Omaha.
Mr. Van Horne addressed the an
nual meeting, attended by close to
150 persons.

Discuss New Bank
Citizens and businessmen attended a
meeting of the Chamber of Commerce
of Orleans, Nebraska, recently.
The proposition of organizing a bank
in Orleans was discussed pro and con
but no definite action was taken for
or against.

Remodeling
Many of the Albion, Nebraska,
business houses have been remodeled.
The First National Bank will lower
its ceiling and use a material that has
acoustic properties. It is thought it
will be more economical to heat the
large room with a lower ceiling.

In Bank Position
Miss Margery Barnard, recently hon
ored by election as sweetheart of her
business women’s sorority, has taken

The Hastings, Nebraska, National
Bank has awarded a contract for enlargment and remodeling of the bank
ing room.
The bank has leased part of the
Woodworth building next door to
provide more room. The contract calls
for remodeling the interior of both
the leased room and the present
banking room. It provides for new
fixtures, counters and desks, and a
new entrance to the building. Bank
officials estimate the work will cost
more than $50,000 and expect it to be
completed in six months.

Resigns From Bank
Ted Goeres, who has been connected
with three successive financial insti
tutions in Osmond, Nebraska, the
First National Bank, The Osmond Co
operative Credit Association, and since
November 1, 1938, the Osmond State
Bank, resigned his position with the
latter institution and is now with the
Prudential Insurance Company.
Mr. Goeres has opened an insurance
agency with offices temporarily in his
home. He stated that as soon as
downtown office space is available the
business would be moved. His insur
ance lines will include life, fire, hail,
and casualty. Mrs. Goeres also will
assist in the conduct of the business.

1 9 4 7 N eb ra sk a G roup M e e tin g s
A special train will be operated again this year to make the six Ne
braska Group Meetings. The special train will leave Omaha at 8:45
a. m. on Monday, April 21st, and on the return trip will arrive in Omaha
at 11:45 a. m. Saturday, April 26th, via Lincoln.
The special train will stop at Columbus, and from there those who wish
to make the Norfolk meeting also will need to arrange for transportation
to the latter city, since both the Columbus and Norfolk meetings will be
held the same day, April 22nd.
,
The several Group Meetings will be held as follows:

G rou p s

1
2
3
5
6
4

D ate

Tow n

Monday, April 21st..........................Lincoln
Tuesday, April 22nd................... Columbus
Tuesday, April 22nd..................... Norfolk
Wednesday, April 23rd...............Kearney
Thursday, April 24th..................... Alliance
Friday, April 25th..........................McCook
Northwest ern Banker, April, 194f

Nebraska News

E. T. Collins
E. T. Collins, 80, of St. Edward,
Nebraska, died there recently. He had
farmed and been in the banking
business in St. Edward for many
years. He was the father of Fred
Collins of near St. Edward.

With Audubon Bank
Kenneth W. Williamson has accept
ed a position on the clerical staff at
the Carson National Bank of Auburn,
Nebraska. Mr. Williamson has been
working in the Continental National
Bank in Lincoln since his return from
the armed forces. Mr. and Mrs. W il
liamson and small daughter, Kay, are
making their home at Johnson for the
present.
ade of heavyweight No. 1 Colored
Kraft, these Bill Straps are so strong
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I pull! In 8 colors for quick identifi■ cation of p ack ag e. Their extra
1 width — V/i in.—gives ample space
| for marking and stamping. Imprint*
I ed with amounts, and gummed with
■ liberal quantities of vegetable ad*
•
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W rite T o d a y , to D e p t.

*7/ie Ce Le D O W N E Y CfUttfUUUf,
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The Saline, Nebraska, State Bank
has installed a Recordak machine, by
means of which a photograph is made
of the checks, both front and back,
cashed in the ordinary business trans
actions. It is fast, automatic, economi
cal and error proof. It is a safe way
to record and retain complete records
of every customer’s transactions, par
ticularly where original documents
pass out of the bank’s hands. It will
record 7,500 cancelled checks on 100
feet of microfilm.

Redecorated

Harold E. Hein of Lincoln has joined
the staff of the State National Bank,
Wayne, Nebraska, and will become an
executive officer. He had been with
the Texas Company at Lincoln. His
wife, the former Joy Ley, daughter,
Virginia, and son, Jim, plan to move to
Wayne at the close of the school term
in June.

The Commercial Bank of Stratton,
Nebraska, recently completed an in
terior decorating program that has
made the offices of the bank both effi
cient and attractive.

H. R. Ellenberger was appointed a
director of the First National Bank
of Tekamah, Nebraska, at a meeting

Cai+i faJ'iapyieAA.

Installs Recordak

Moves to Wayne

Named Director

H A N N IB A L, M ISS O U R I

of bank officials held recently. Mr.
Ellenberger succeeds to the vacancy
caused by the death of Clyde Grothe.

Convalescing
Last month Howard C. Hanson,
president of the Herman, Nebraska,
State Bank, underwent an operation
at Immanuel Hospital in Omaha. He
has returned home and is reported on
the road to recovery.

Good Wheat Outlook

Complete Transit Facilities
Route your items through us fo r the quickest
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N um erous direct sending points in M issouri,
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W e solicit your transit business.

First St. Joseph
STOCK YAR D S BAN K
South St. Joseph, Mo.
OFFICERS
Frazer L. Ford, President
J. A. Greenfield, Vice President
M. E. Blanchard, Asst. Cashier
Thos. J. McCullough, Vice Pres, and Cashier
Louis J. Komer, Asst. Cashier

“ ONLY BANK IN THE YARDS99

“Like California, we’ve had some
‘unusual conditions’ in connection
with our wheat crop this year,” re
ports Clyde Sudman, cashier of the
Guardian State Bank, Alliance, Ne
braska.
“You’ll remember that in the vicin
ity of Berea we had about seven inches
of rain in two or three days last fall
just after the wheat crop was planted,”
he recalled.
“This beat down the furrows, and
the clay or magnesium in our soil
seems to come to the top during heavy
rainfall and it blows easily. This levels
off the ground and it results in cover
ing the young sprouts of wheat to the
detriment of the crop.
“Then, too, a number of farmers
made the mistake of burning off their
stubble and thereby made top soil
erosion that much easier during such
winds as we had in February,” Mr.
Sudman said.
“But I am of the opinion that if we
get some warm days in early April
YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. D AVEN PO RT & CO.
OM AHA
n o r t h w e st e r n Banker, April, 1947

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

Nebraska News

with some good moisture we will see
much of the crop come through all
right.”

Banker Retires
Francis F. Putlitz, who has been
associated with the Farmers State
Bank of Fairmont, Nebraska, since
1903, has retired from active business.
He began under the late Frank W.
Sloan in the Geneva State Bank. After
a few months he was transferred to
the Fairmont institution as assistant
cashier. In January, 1906, he became
cashier and in 1933 when George E.
Aldrich retired as president, he suc
ceeded to that position.
Mr. Putlitz has disposed of the con
trolling interest in the bank to Earl
H. Wilkins, president, and Carl E.
Schneider, cashier of the Geneva State
Bank of Geneva. With Robert B.
Waring, Geneva attorney, they have
acquired the stock held by the family
of the-late LeRoy Stines. New officers
are Earl H. Wilkins, president, and
Carl E. Schneider, vice president.
Charles F. Tous, cashier, and E. M.
Rose, assistant cashier, remain the
active officers.

IAMES LEROY WELSH, 57, Omaha
vJ grain man and a director of the
Livestock National Bank of Omaha,
has been appointed a regent of the
University of Nebraska by Governor
Val Peterson. He takes the place of
Vincent C. “Stub” Hascall, who died
recently.
Mr. Welsh was one of six persons
suggested by the Omaha Chapter of the
University of Nebraska Alumni Asso
ciation. The grain man, member of
the firm of Butler & Welsh, has been
a leader in the chemurgy field.
A former president of the Omaha
Grain Exchange, he helped to organize
the Nebraska Grain Improvement As
Opposes W ater Diversion
sociation. He is a former president of
T.
F. Green, cashier of the Bank of the Grain and Feed Dealers’ National
Valley, Nebraska, flew to a meeting Association.
in Kearney held to oppose LB 257
introduced in the Nebraska legislature
Plans for an expanded O m a h a
to legalize the diversion of water from
Y.M.C.A. Building were disclosed by
the Platte Valley or any other water
Dale Clark, Omaha National Bank
shed in Nebraska.
president and “Y” leader, at a meeting
Farmers, businessmen, and cham
of the Foreman’s Club and “Y” officials.
bers of commerce, and other organiza Reporting for the board of directors,
tions from Omaha to' Scottsbluff and Mr. Clark said present facilities are
in the Loup, Elkhorn and Niobrara
inadequate to meet present and near
Valleys are organizing to fight these future needs.
LB 257 and LB 292 water diversion
The directors also recommend the
bills.
building of North Side and South Side
branches and a Near North Side branch
A S h ort D rive
for negroes, at a total outlay of $200,Lady Golfer: You’ll drive me out of 000.
my mind.
Caddy: That wouldn’t be a drive,
M. M. Meyers, Omaha investment
lady, thai’d be a putt. ’
banker, was named recently by Gover

nor Val Peterson as a member of the
Nebraska Aeronautics Commission. Mr.
Meyers will serve five years. He suc
ceeds Clyde M. Sharrar, air lines traf
fic manager in Qmaha. Mr. Sharrar
had served 12 years and had been chair
man of the commission four times.
Mr. Meyers is a private pilot.
John R. Lauritzen, assistant cashier
of the First National Bank of Omaha,
has been elected to the board of trus
tees of the Hattie B. Munroe Home for
Convalescing Children of Omaha and
was appointed secretary of the group.
He succeeds LaAvrence Brinker, Oma
ha investment banker, who will con
tinue as treasurer.

J. F. McDermott, vice president of
the First National Bank of Omaha,
and who served as chairman of the ini
tial gifts committee of the Omaha Com
munity Chest campaign last fall, was
one of the principal speakers at the
1947 Community Chest National Con
ference in St. Louis recently.
Mr. and Mrs. Dale Clark gave a tea
recently for Miss Eleanor Dent of Oma
ha and Lincoln, who was to marry
Walter W . Clark, son of Mr. and Mrs.
Clark, on March 29th. Dale Clark is
president of the Omaha National Bank.
Assisting guests included Mrs. David
Davis, Mrs. Ray R. Ridge, Mrs. Charles
W. Mead and Mrs. Dan Monen.

rfeTOOTLE-LACY
Knowledge of the history of many enterprises . . . familiarity with basic
resources . . . understanding of regional business trends . . . these form
the pattern of this bank's background.
Correspondent banks will like doing business with the Tootle-Lacy
National Bank that has 58 years of experience to place at their service.
Northwest ern Banker, April, 1947

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

Nebraska News

ley an University board of trustees for
the 1947-48 term.
Albert A. Held, vice president of the
National Bank of Commerce, has been
elected vice president of the Lincoln
Dinner Club. Election to this post is
tantamount to his being advanced a
year hence to the club presidency.
C. W. Battey, vice president of the
Continental National Bank, has been
elected treasurer of the Lincoln Cham
ber of Commerce. He was chosen at
the annual meeting of the board of
directors. Scarcely had he become set
tled in his new post before he was
appointed as a member of the chamber
taxation committee, considered one of
the most important groups of the cham
ber.

Harris, Upham & Company, securi
ties firm, has announced the appoint
ment of Karl A. Lininger, veteran in
the field, as state manager, effective
March 10th. Clarence G. Wilkins was
named manager of the Omaha office
and John L. “Jerry” Pyper, assistant
manager.
Who says that banks don’t prepare
for a rainy day?
The Omaha National Bank, in a
prominent place near the desks of exec
utives, has a handsome umbrella hold
er against the wall. A shiny copper
trough in the bottom of the holder
catches driblets from umbrellas, if any
are ever used by raincoat-conscious
men.
John “Jack” B. Frazier, Omaha in
vestment banker and new president
of the Omaha Navy League, recently
was presented a copy of the painting,
“ Gun Crew, Sicilian Invasion,” by Capt.
Rob Roy McGregor, inspector of Navy
recruiting at Omaha.
The ceremony was in connection
with the opening of an Omaha exhibit
by Navy combat artists.

With F.D.I.C.
Maple T. Harl, chairman of Federal
Deposit Insurance Corporation, has
announced the appointment of Norris
C. Bakke as associate general counsel
for the corporation.
Judge Bakke, a native of North Da
kota, received his Ph.B. and LL.B.
from the University of Chicago in 1919.
He also took graduate work at Harvard
Law School.
After moving to Colorado in 1920,
Bakke served as county judge and city
attorney until 1926. After six years of
general practice, he became deputy
attorney-general of the state in 1933,
serving in that capacity until he be
came associate justice of the State Su
preme Court in 1936. During 1945 he
served as chief justice of that court.
His headquarters will be in Wash
ington.

bankers are looking for
L INCOLN
ward to the approaching annual
meeting of District No. 1, Nebraska
Bankers Association, on April 21st.
The meeting in Lincoln is the first of
six scheduled in as many parts of the
state in five days, and programs for all
of which are largely framed by Carl
Swanson of Omaha, secretary of the
state association.
In charge of local arrangements for
District No. 1 is a general committee
composed of Albert Held, vice presi
dent of the National Bank of Com
merce, chairman; Fred S. Aldrich, vice
president of the Continental National
Bank, and A1 C. Glandt, vice president
and cashier, First National Bank.
Fred S. Aldrich, vice president of the
Continental National Bank, and Mrs.
Aldrich are on a vacation trip to the
Pacific coast. Accompanied by their
children, they left Lincoln on March
29th. After spending several days in
Los Angeles they will tour southern
California and return to Lincoln April
14th.
George A. Knight, president of the
Citizens State Bank in University
Place, Lincoln suburb, has been re
elected as a member of Nebraska Wes

NATIONAL BANK
MILTON TOOTLE

FRED T. BURRI

R. E. WALES

P R E S ID E N T

C A SH IE R

V IC E P R E S ID E N T

GRAHAM G. LACY

E. H. SCHOPP

E. L. CRUME

ASST . C A SH IE R

AS S T . C A S H IE R

CH. OF T H E

BOARD

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Federal Reserve Bank of St. Louis

Funeral services were held in Lin
coln early in March for Frank Parks,
86, who died at his home in Brownville,
Nebraska. A former resident of Lin
coln, Mr. Parks was one of the organiz
ers, and the first president, of the Lin
coln State Bank, which later became
the Lincoln State National Bank.
In 1898 he was elected assistant cash
ier of the First National Bank, which
post he held until January, 1914, when
he resigned to become president of the
Lincoln State Bank.
A study of loans made in 1946 by
state banks of Nebraska has revealed
that farmers of the Cornhusker state
have virtually gone onto a pay-as-yougo policy instead of resorting to exten
sive borrowings. Lendings to finance
current agricultural operations re
mained almost constant for the years
1941-1946, inclusive.
The study also reveals that during
the same period loans by state banks
to commerce, industry, on real estate
and to consumers increased. Note
worthy, in the opinion of Edgar Z.
Palmer, director of the Nebraska Bu
reau of Research, which made the
study, is the fact that loans of Ne
braska state banks did not rise with
wartime inflation. “While assets quad-

ST. JOSEPH, MO.
Mem ber Federal Deposit
Insurance Corporation

Northwest ern Banker, April, 1947

Nebraska News

rupled over the prewar level,” he de
clared, “loans actually declined and be
gan to rise only after the war ended.”
Loans in 1946 by Nebraska state
banks aggregated $54,630,000, compared
to $47,444,000 in 1941. The 1945 total
was $42,402,000, $42,589,000 in 1944, and
$40,287,000 in 1943.
J. F. McLain, director of banking for
Nebraska, has ordered a receivership
for the Antelope County Building &
Loan Association, at Elgin. According
to Mr. McLain the company started
liquidation in 1931, but has never com
pleted the process, and has been inac
tive. The banking department took

over the company early in March, and
ordered the receivership following a
meeting of the stockholders.
The First National Bank has started
a remodeling project which, before
completed, will run into several thou
sands of dollars. The changes are be
ing made to facilitate operations for
both the bank’s customers and the
bank itself.
The front end of the main floor of
the bank will be lowered to the street
level, and eliminates the space which
for many years has been used by the
executive officers, who now will be
moved to new quarters, especially P.

9*tJlU
tcoln— *7IteG
o*LÌÌ*te*tÌal—
*L OU are cordially invited to draw upon any or
all of our banking facilities for handling your corre
spondent business. Long known as "Nebraska's
Friendly Bank," we assure you prompt, courteous
and efficient service. Make the "Continental" your
bank in Lincoln.

(Co n t in e n t a l R

a t io n a l

B a/o f-

L IN C O L N
Member Federal Deposit Insurance Corporation

R. Easterday, chairman of the board,
who will go to a mezzanine floor which
is being installed.
There will be no change in the front
entrance, but those inside will be al
tered, new ones being made, and some
of the old ones closed. Doing this, and
a new stairway to the basement at the
northwest corner, will facilitate traffic
to the elevators as well as to the offices
which are to be set up on the lower
floor for the accommodation of patrons
of the savings, loan, payroll and safe
deposit departments, as well as the
armored car operators.
Occupied by the First Trust Com
pany, which recently moved into its
own building across the street, the
basement will be remodeled slightly
a n d completely redecorated. T h e
changes will include the installation of
several modern booths for safety de
posit box patrons.
Receipts of the Nebraska banking
department during the last six months
of 1946 have been revealed in an audit
by State Auditor Ray C. Johnson as
reaching $112,396. Auditor Johnson is
a former vice president of the Conti
nental National Bank of Lincoln.
After explaining the sources of the
receipts Johnson made some sugges
tions which he believes will increase
the efficiency of operation in the de
partment. Leading the list was a rec
ommendation that all permits be pre
numbered. A journal also should be
set up, he added, for recording all as
sessments and per diems for audits.

BANKERS CAN INCREASE
CREDIT VOLUME
(Continued from page 15)

H anks and B a n k ers

will find this

institution especially well equipped to handle
their Chicago accounts. Our complete facilities
are at the disposal of all in need of this service.

C it y

N a tio n a l

B a n k

A N D T R U S T C O M P A N Y o f C h ic a g o
20 8

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 CORP. )

Nort hwest ern Banker, Ap ri l, 1947

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

and assuming that the finance company
was accepting this paper on a 4 per
cent discount basis, the dealer’s pack
would be one-half of $69.60, or $34.80
on this one deal. If he were the usual
enterprising dealer he would also get
a 25 per cent insurance commission on
the total premium charge or an addi
tional $17.50. His total profit on this
one transaction would be $52.30.
You might ask, “ How can the finance
company come out on this buying run
of the mill paper at 4 per cent dis
count?” They can because aside from
the 4 per cent discount rate they have
the dealer signed" up on a repurchase
agreement or a partial recourse agree
ment and they may hold back some
of the dealer’s profit on the financing
charge as a reserve to assure perform
ance of his obligation to them. In no
instance of which I am aware have the
finance companies been able to share
in this cushion—the pack or profit in
each transaction goes to the dealer as

Nebraska News
a reward for his originating the deal
and directing the business to the fi
nance company. With few exceptions
the dealers were all very successful in
making their finance business profit
able, and because of it were able to sell
cars when competition was keen, with
an absolute minimum of profit on the
car itself, taking the additional profit
out of the finance deal.

current era of high prices and high
salaries and full employment and then,
if necessary, tightened up somewhat
when our economy started to sag as a
result of over-supply and lack of em
ployment. Bankers themselves should
be able to regulate their own business.
The field of installment finance is a
(Turn to page 60, please)

pated tremendous supply it will nat
urally follow that terms will become
extended because of keen competition
and down payments will be lessened to
a greater extent. This, in my opinion,
could easily be a tremendously dan
gerous situation. I feel that our econ
omy would have been far better off
had controls been lifted during our

A Word of Caution
A word of caution at this time I
believe is apropos. While banks and
finance companies alike have enjoyed *
the finest business from an installment
credit standpoint during the past three
or four years because of the high ratio
of employment and high salaries there
will come a day when collection and
cost problems will become a headache.
A major expense in the conduct of any
finance operation is the cost of acquisi
tion. Advertising and promotion is
necessary and solicitation by experi
enced personnel is costly. The credit
extended represents a large cross sec
tion of any community and not alone
the higher type of risk. This requires
proper servicing with intelligent, per
sistent collection effort. Substantial
losses will be made during periods of
unemployment and declining economy
which means that adequate reserves
must be set aside out of income. Your
charges, therefore, must provide for
cost of operation, adequate reserves, as
well as a reasonable profit.

Buyers' Market Coming
As production catches up in the ap
pliance and automobile industries and
in the rest of the durable goods indus
tries it will not take too long to develop
a buyers’ market. Thus it would be
well for bankers to take into considera
tion the type of merchandise you pro
pose to finance as well as the character
and integrity of the respective dealers
with whom you choose to do business.
It is conceivable that with an antici

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Federal Reserve Bank of St. Louis

C O R R E S P O N D E N T B AN K S
YOUR INTERESTS ARE OUR INTERESTS:
★

NATIONAL BANK of COMMERCE
LINCOLN, NEBRASKA
M em ber Federal D eposit Insurance Corporation

i r s t N a t io n a l
B a n k of O m a h a
Oldest National Bank From Omaha West
Member Federal Deposit Insurance Corporation

Northwest ern Banker, April, 1947

COMP L ETE
C O R R E S P O N D E N T F A C IL IT IE S
•

•

Participation in Loans.

•

Credit Information.

Investment Service On
Government Bonds

•

Operational Assistance

Safe-keeping of Securities.

•

Intimate Personal Services

24-Hour Transit Service
including air mail service.

F F I C

E R

HEN RY C . KARPF
President
W ADE R. MARTIN
Vice President

R. H. K R O EG ER
Vice President

PAU L HANSEN
Vice President

W. DEAN V O G E L
Vice President

H. H. E C H T E R M E Y ER
Vice President

C. G . PEARSON
C ash ie r

L. V. PULLIAM
A ssf. C ash ie r

ALBERT R. S T E L LIN G
Assf. C ash ie r
ELM ER E. O LSO N
Asst. C ash ie r

All of these officers are specialists in their various fields — assuring
knowledge of your needs, and ability to offer adequate assistance.
' ¿‘vV #

T HE

B A N K

F R I E N D L Y ^

S E R V I C E

LIVE STOCK NATIONAL BANK
OMAHA, NEBRASKA
MEMBER FED ER A L D EPO SIT IN SU R A N C E C O R P O R A T IO N
Northwest ern Banker, April, 1947

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Federal Reserve Bank of St. Louis

53
Iowa until his death in 1938. Both the
father and grandfather had been in
the banking business in Kamrar, Iowa.

Iowa

Soil Savings

NEWS

Leo E. Stevens

In Terril Bank

Leo E. Stevens, formerly in the
banking business in Ottumwa and
Des Moines, died recently in Pasadena,
California, at the age of 75, where he
had lived for the past 22 years.
He entered the First National Bank
of Ottumwa in 1887 as a messenger.
Transferred to Ottumwa National
Bank in 1893 as assistant cashier, in
1898 he was promoted to cashier, also
cashier of Wapello County Savings
Bank and director in Blakesburg Sav
ings Bank, Farson Savings Bank, Hed
rick State Bank and other associated
banks.
He moved to Des Moines in 1910 to
become president of Century Savings
Bank, which in 1917 was merged with
Iowa Loan and Trust Company, of
which he became vice president. Re
tired from active banking in 1919 he
became associated with former Gover
nor Frank D. Jackson and others in
$2,000',000 United Cattle Loan and Live
Stock Company. He moved to Pasa
dena in 1925.
In 1908 Mr. Stevens was vice presi
dent for Iowa of the American Bank
ers Association; in 1909 was president
of Iowa Bankers Association; from
1910 to 1913 was treasurer of Des
Moines Commercial Club; in 1913 was
first president of Des Moines Chamber
of Commerce (a reorganization of the
Commercial Club); and for 12 years
was a director in Greater Des Moines
Committee. He was a charter member
and director of Des Moines Rotary
Club.
In 1934 he was called to Washington
as an examiner for Reconstruction
Finance Corporation, a federal gov
ernment agency, was transferred to
Los Angeles in 1935, and for the past
eight years has been chief of the Loan
Liquidation Division of the Los An
geles agency, whose territory covers
southern California and a part of Ari
zona.
During all the years of his residence
in Pasadena he was an active member
of the First Methodist Church.
Surviving him are his widow, Mrs.
Grace E. Stevens of Pasadena, and a
daughter, Mrs. Harold E. Anderson
of Carlsbad.

Milo (Mike) Hess of Allen, Nebras
ka, began his duties as clerk in the
State Bank of Terril, Iowa, recently.
He is unmarried.

Eugene W. Burdic, president of the
Malvern, Iowa, Trust and Savings
Bank, is supplying to farmer custom
ers of the bank a most comprehensive
booklet on soil conservation entitled
“ It’s Time To Open a Soil Savings
Account.” The book was prepared for
the bank under the supervision of
Ray W. Jones, local soil conservation
authority, and is well illustrated. A
mailing coupon is available in the book
for those interested in additional in
formation.

New in Riceville

Savings Bonds

Russell Noble is the new clerk in
the First National Bank, Riceville,
Iowa. He will fill Rex Willis’ place,
who has been promoted to cashier. J.
E. Brown, who was cashier, has re
signed and will settle in the west after
spending some time on vacation.

Investments in series E United
States savings bonds by Iowa pur
chasers during January were 297.34
of redemptions of A through E bonds,
Roger F. Warin, state director of the
savings bonds division of the treasury
department, reported.
Of the month’s total of $38,682,554
in E, F and G bonds, $22,960,390 was
invested in E bonds alone, Warin said.
During the same month, only $7,721,910 in A through E bonds were turned
in for redemption, and an unestimated
amount of the cash-in figure covers
bonds which have matured.

W. H. BRENTON
President
Des Moines

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Federal Reserve Bank of St. Louis

FRANK WARNER
Secretary
Des Moines

To Charles City Bank
The Iowa comptroller’s office an
nounced the resignation of Wayne
Fluent, auditor of the highway com
mission at Ames, to become manager
of the insurance department of the
First Security Bank and Trust Com
pany at Charles City.
Mr. Fluent held that job with the
Charles City bank in 1939 when he
accepted appointment as highway
commission auditor.
•

New Special Agent

Robert A. Alexander has been
named special agent under State
Agent Maurice Toussaint for the St.
Paul Fire and Marine Insurance Group
in eastern Iowa. Bob’s father, How
ard, was for many years a fieldman
for the St. Paul Group in western

F. O. Peters
F.
O. Peters, 63, president of the
Farmers Savings Bank, in Shelby,
Iowa, for the last 15 years, died at his
home after an illness of three months.
Surviving is his widow, Belle.

Make More Audits
More internal audits would lessen
embezzlements among bank employes,
Thomas R. Roche, Des Moines, Iowa
bank examiner, told a western Iowa

1 9 4 7 Io w a G roup M e e tin g s
GROUPS
5
6
10
7
2
3
4
8

DATES
TOW NS
Tuesday, May 13th..............................Atlantic
W ednesday, May 14th....................... Newton
Thursday, May 15th............................. Chariton
Friday, May 16th............................. Iowa City
Tuesday, May 20th.......................Storm Lake
Wednesday, May 21st..........................Eldora
Thursday, May 22nd..................... Manchester
Friday, May 2 3 rd ..............................Anamosa
Northwest ern Banker, April, 1947

Iowa News

conference of bank auditors and
comptrollers.
“We examiners get into your banks
only one or two days a year, while
you auditors are close to the personnel
and see them every day. Many of
these cases, where a teller is tempted
to default, could be checked sooner.”
Roche recommended rotating per
sonnel in tellers’ cages and in the book

keeping department as another means
of checking losses.
“A teller, tempted to default, might
think twice if he realized that on any
given morning an auditor would step
in without notice and run his cage
for the day.”
The vigilance of bank examiners
does not always succeed. Roche cited
a case on record where a teller was

Doing the “ Unusual”

short $40,000 and was undetected for
several years, during which time the
bank underwent two mergers.
Roche also pointed out all banks
now carry blanket insurance far in
excess of any normal shortage through
embezzlement.

O. S. Stanbro
O. S. Stanbro, 84, cashier and direc
tor of the Keokuk, Iowa, Savings
Bank for many years, died at his home
recently. He had been in failing
health for some time.
Mr. Stanbro was also treasurer of
the Keokuk school district for approx
imately a quarter of a century.

Leaves Luxemburg

Through many years of correspondent serv
ice, the First National Bank of Sioux City
knows how to help bankers solve their every
day problems. Our correspondents know, too,
that when the "unusual" problem arises, it will
receive "unusual" and sympathetic help from
officers of this bank.

F. X. Heinrichs, who has been
cashier of the Luxemburg, Iowa, Sav
ings Bank for the past 19 years, has
resigned his position and has accepted
a similar one at Mt. Pleasant, Iowa.
Mr. Heinrich’s vacancy will be filled
by Jerome Ungs, who has just re
turned from five years in the armed
forces.

Try the First National Bank for your com
mercial, live stock, grain and hay items in
Sioux City.

Dr. K. H. Struck
Dr. Kuno H. Struck, 63, Davenport,
Iowa, civic leader and vice president
of the Davenport Bank and Trust
Company, died recently in his home
after suffering a stroke.
He had taken an active part in the
cultural life of Davenport and was a
former member of the board of park
commissioners.
He was a former national president
of the Exchange Club and of the Dav
enport Chamber of Commerce. He was
an art collector and painter and a pa
tron of the Municipal art gallery.

A. G. Sam, President
Fritz Fritzson, Vice Pres, and Cashier
E. A. Johnson, Assistant Cashier
J. T. Grant, Vice President
H. H. Strifert, Assistant Cashier
J. R. Graning, Assistant Cashier
R. E. Gleeson, Assistant Cashier
J. Ford Wheeler, Auditor
MEMBER FEDERAL RESERVE SYSTEM
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

County Meeting
Members of the Cedar County Bank
ers’ association held a dinner meeting
in Tipton last month. Representatives
from all Cedar county banks and some
from other communities attended.
John Vaughan, Bennett, is presi
dent of the group, and Arnold Koch,
Lowden, is secretary-treasurer.

Redecorated

★

/ if

S iO

Did you know that adoption of our Cash Letter
insurance enables you to dispense with detailed
Cash Letter transcripts and keep only a duplicate
adding machine tape? Ask us fo r details.
F IR S T

N A T IO N A L . B A N K

B U I L D IN G

N ort hwest ern Banker, April, 1947

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

•

C H IC A G O

if t /

The interior of the Elgin, Iowa,
State Bank building has been im
proved by a complete redecoration.
The color scheme in the lobby and
office rooms is cream with light green

Scarborough & Company
Insurance Counselors
3, IL L IN O IS

STATE

4325

to Banks

Government Securities j
and your Bank
j
T

HE management of the portfolio of United States Government
securities is a major job in every bank today. To aid our corre

spondent banks in this task, we send them a weekly quotation sheet,
buy and sell government securities for them as agent without fee and
if desired hold the securities in safekeeping without charge.
This is only one of many services we have been rendering banks
and bankers throughout the Middle West for over three-quarters of a
century. We shall be pleased to explain these services in more detail.

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

3 ¥ ie

LIVE STOCK
BANK

T o f te a tro

E ST A B L IS H E D 1 868

UNION STOCK YARDS

Northwest ern Banker, April, 1947

Iowa News

trim which harmonizes nicely with
the oak fixtures.
The upstairs hallway and some of
the rooms have also been refinished.

father, Conrad Kerkman, then presi
dent, he was elected to head the in
stitution. He continued to be president
until his death.

Frank Kerkman

New in Swea City

Frank Kerkman, 56, president of
the Van Horne, Iowa, Savings Bank
and prominent church and civic lead
er, died at his home last month.
A resident of Van Horne and the
farming community all his life, Mr.
Kerkman first became associated with
the Van Horne Savings Bank Febru
ary 11, 1924, when he was elected a
director. He served in this capacity
until 1938 when, on the death of his

The Swea City, Iowa, State Bank
opened last month under the presi
dency of W. E. Carlson and W. E.
Weimer as vice president.
Swea’s new bank starts with a cap
ital of $30,000, of which $15,000 is sur
plus and $5,000 undivided profits.
The directors of the new Swea City
State Bank consist of Gertrude L.
Weimer, W. Thompson, W. E. Wei
mer, Fred Peterson, Ole Kvamsdale,

New President

—

111

■

A. J. Bilsborough and W. E. Carlson.
The staff members are Melvin
Krumm and Delores Kollasch.

Otto Fenton, a stockholder and direc
tor of the Farmers State Bank of
Jewell, Iowa, was elected as president
of the bank. He succeeds F. H. Ferbitz. Mr. Ferbitz retains his stock in
the bank and remains as a member
of the bank’s board of directors.
Another change was made at the
bank when Claude W. O’Connor was
named as a bookkeeper.

On Bank Staff
Lee B. Richards, who comes to
Iowa Falls from The American Na
tional Bank at Arlington, Iowa, has
taken up his duties in the bookkeep
ing department of the Citizens State
Bank. Mr. Richards was born in Fay
ette county, Iowa.
Serving in the army for 39 months,
Mr. Richards spent 19 months in the
European theater.

With Postville State
Donald Estes of Cedar Rapids has
accepted the position of assistant cash
ier at the Postville, Iowa, State Bank.
Born in Michigan where he worked
in banks in Flint and Battle Creek,
Mr. Estes for the past ten years has
been assistant cashier in the People’s
Savings Bank in Cedar Rapids.

Th e

Promotions

D RO VERS
n a t io n a l
ba n k

o f °u ICAL CH o i c e
o f MANY MID.

N c

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Mcmbcrs' federal Deposir ,

Nort hwest ern Banker, April, 1947

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

f ö

B n .U K

Three promotions of personnel have
been announced by the Toy National
Bank and Farmers Loan and Trust
Company of Sioux City.
J. D. Shinkle has been appointed as
manager of the personal loan depart
ment and will occupy modernized
second floor offices.
J. J. Gordon, formerly with the
First Trust and Savings Bank of Remsen, Iowa, before entering the army,
will act as assistant manager of the
personal loan department.
U.
H. Bunkers, treasurer of the
Farmers Loan and Trust Company,
will act as manager of the F.H.A. and
G.I. home loan department with new
and modernized headquarters also on
the second floor of the bank building.
The new offices will be air-condi
tioned and lighted by fluorescent
lights. There will be private confer
ence rooms.

With Lenox Bank
Arvid Nelson, for nearly two years
associated with the Bank of Galesville,
Wisconsin, as executive vice presi
dent, has tendered his resignation to
accept a similar position with the First
National Bank of Lenox, Iowa.

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

We Welcome
the Opportunity
To Demonstrate Our
Prompt and
Accommodating Servi,
on Your Des Moines
T ransactions
*

Vim? Bank and Trust Company
W ALNUT AT FOURTH, DES MOINES

Frederick M. Morrison, President
Winfield W . Scott, Senior Vice President
J. R. Astley, Vice President
Edward P. Kautzky, Vice President
Roy E. Huber, Vice President
F. M. Thompson, Cashier
Ray L. Thompson, Asst. Vice President
Carl W . Altman, Asst. Cashier
George W . Gill, Asst. Cashier

•
Member

Federal

Deposit

Insurance

Corporation

Northwest ern Banker, April, 1947

Iowa News

Conservation Prizes
The Bankers Association of Scott
county, Iowa, is offering $300 in prizes
for boys and girls to increase interest
in soil conservation.
Cooperating with the county Soil
Conservation district, the aim is to
train youth of the county in methods
used in conservation. '
The contest has been divided into
two parts:
Group “A” will include boys or girls
from 10 to 13 years of age (as of Jan
uary 1, 1947) and group “B” from 14
to 21 years.
The former group will be known
as contest “A ” and the work will
consist of the construction of a home
made level and the demonstration of

its use, in laying out a contour line
600 feet long on a designated field.
Contest group “ B” will consist of
the laying out of necessary contour
lines, planting corn or soybeans on
the contour and the cultivation of the
crop up to the time of judging on a
field or area of at least eight acres.
In addition to the above the con
testants in Group “A” will be scored
by the judges taking into considera
tion the technique used and the accu
racy of the results.

Remodels Interior
The First State Bank, Sigourney,
Iowa, has been remodeled. A new
consultation room has been made, and
the board of directors’ room has been

remodeled. A new acoustic ceiling
and a new floor will be installed soon
in the entire bank. New lights will be
installed later.
Previous to this the cage-work in
the bank was taken down and new
varnished low enclosures were made.

New Employe
Richard Ploeger is a new employe
at Schaller, Iowa, Savings Bank. He
succeeds Sam Woodke, who resigned
to enter the University of Iowa.
Richard graduated from Schaller
high school in the spring of 1945,
soon after enlisting in the navy, serv
ing until last summer. He enrolled
at Buena Vista college, Storm Lake,,
at the beginning of the fall term, con
tinuing study there until he left to
accept the bank position.

Annual Meeting

Your customers and prospects who are
in the higher income surtax brackets
may be interested in state and munic
ipal bonds to improve their net income.
As a dealer in these securities we are in
a position to give you complete, prompt
information and service. A list of highgrade state and municipal bonds is avail
able upon request. All inquiries made by
you in behalf of your customers will have
our confidential and careful attention.

TH E N O R T H E R N
T R U ST CO M PA N Y
50 SOUTH LA SALLE STREET. CHICAGO 90, ILLINOIS
Telephone Franklin 7070

n o r t h w e s t e r n Banker. April, 1947

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

Bell System Teletype— CG 368

The stockholders of the Benton
County Savings Bank, Norway, Iowa,
held their annual meeting last month.
E. M. Williams, H. O. Schloeman,
Michael Brecht, John C. Schulte and
Wm. A. Schulte were all re-elected
directors for the ensuing year.
The annual meeting of the directors
followed and Prentiss G. Folvag was
re-elected cashier, Homer Monk, as
sistant cashier, and Colleen Dyrland,
bookkeeper.

Remodeling Completed
Work is being completed on the
expansion and redecoration of the
Clay County National Bank, Spencer,
Iowa.
The part of the basement formerly
occupied by a barber shop has been
taken over and remodeled as a book
keeping and accounting department.
A stairway has been installed leading
from in back of the tellers on first
floor to this basement room. A vault
also has been built in the basement
to give the bank more needed vault
space.

Candidate
Chicago Chapter, American Institute
of Banking, is presenting the name of
Edward J. Damstra, assistant cashier
of the Chicago City Bank and Trust
Company,' and presently president of
the Chapter, as a candidate for the
executive council of the American In
stitute of Banking. Mr. Damstra has
been active in Chicago Chapter affairs
for over twenty-four years, and has a
fine record both as a student and ad
ministrative officer. He is a strong
advocate of adult educational work
among bank men and women, and is
himself a holder of both the standard
and graduate certificates of the Insti
tute.

Iowa News

Open in Volga City
The newly organized Volga State
Bank, Volga, Iowa, opened last month
to renew banking facilities in that
•community after a lapse of more than
15 years. The Volga Savings Bank
closed in November, 1931.
Officers of the new organization are:
A. J. Johnson, Elkader, president; C.
J. Orr, Volga, vice president and cash
ier, and F. E. Sharp, Elkader, E. T.
Smith and H. A. Tenney, directors.
Miss Marilyn White will be the teller.

be the cashier and the managing of
ficer of the institution.
Mr. Cooper, cashier of the new bank,
for some time past has been cashier
of the Warren County Bank and Trust
Company of Indianola.

Robert E. Gleason of the First Na
tional Bank is on a two weeks’ wedding
trip to Biloxi, Mississippi. His bride
is the former Mrs. Helen Jackson.
John Scott, Jr., president of the

Morningside State Bank and Mrs.
Scott visited their son, Dr. George
Scott, at Tishomingo, Oklahoma, dur
ing February and early March.

Fifteen employes of the City Na
tional Bank, Clinton, Iowa, last month
attended a training session designed
to clarify the procedures and opera
tions of banking. The group meets
each Thursday evening at the Y.W.C.A.
under the direction of Bruce Town
send, president of the bank, and Edgar
H. Jorgensen, assistant cashier.
The course offers general instruc
tions in all phases of banking for new
employes of the City National Bank
and special material for trained em
ployes- who wish to specialize, accord
ing to Jorgensen. The course consists
of 42-hours’ instruction over a period
of 21 weeks.
The manifold phases of trust work
were discussed by C. B. Bickle, bank
trust officer.

New Bank
Clarion, Iowa, is to have a new
banking establishment. That fact be
came known when it was learned that
the state banking department had ap
proved a charter for the Wright
County State Bank of Clarion.
President of the new bank will be
George C. Kelly of Dallas Center, and
Thomas O. Cooper of Indianola will

Members of the board of directors
of the Crawford County Trust and
Savings Bank, Denison, Iowa, an
nounced recently that Martin L. Runge
had resigned, effective not later thar

Two heads are better than one . . . and
your Government bond portfolio deserves
the best . . . for conservation of principal
. . . for improvement of earnings. Our executives in this field are
seasoned and, further, are in direct contact with the major markets.
Their considered opinion is available to you.

e n

t r a l

N
IN

a t io n a l

a n k

CHICAGO

C. F. K U E H N L E , P r e s id e n t
S e n i o r V i c e -P r e s i d e n t s

J. Ross Humphreys
Gus L. Nelson
CO RRESPO N D EN T BANK

Harold H. Stout
D IV IS IO N

V i c e -P r e s i d e n t s

Alfred O. Clave

A. I. B. Course

Runge Resigns

COUNSEL ON
GOVERNMENT BOND
INVESTMENTS

S io u x C ity N e w s
Mr. and Mrs. A. G. Sam of the First
National Bank in Sioux City, spent a
month recently at Stewart, Oregon.

M em ber

F ederal

Arthur A. Ellerd
D e p o sit

In su ra n ce

C orp.

Earl H. Sollenbarger

M em ber

Federal

R eserve

S ystem .

IN V E S T M E N T ?
Did you ever think of check expense
in terms of its being an investment?
We are talking now about a plain,
ordinary outlay of money with the
anticipation of a cash return.
Here’s how it works out. Suppose
you write a letter to six thousand
people who have personal checking
accounts in your bank and invite them
to accept from you, with your com
pliments, fifty Personalized Checks
together with a nice cover bearing
their name stamped in gold. If they
like them you agree to furnish them
in the future at $ 1 .2 5 for each two
hundred checks.
Y our initial expense for letterheads,
envelopes, postage and multigraphing
would be about $260. Two thousand
customers would accept your offer,
which would mean an additional out
lay of $1,200 figured at 60 cents per
order, including postage direct to cus
tomer. That means you would have
a total investment of $1,460.
Now let’s take up the question of

returns on your investment. Because
you would be getting such a large
number of orders you would be able to
buy them from us in exact multiples
of six and your cost would therefore
be $1.00 per order, so you would have
a 25-cent mark-up on customers who
reorder. Out of the two thousand who
accepted your complimentary offer,
twelve hundred would continue to
reorder, which would make a total re
turn of $300. In addition you would
save the normal yearly expense on
these customers for checks, passbooks
and covers, which we have conserva
tively estimated as being about 30
cents per customer per year. That
makes an additional $360 return.
W ithin a period of about two years,
therefore, you would just about get
back your original investment, and
from that point on the cash return
thru profit and savings would repre
sent a sum which, to say the least,
would be comparable to any invest
ment you could make. Food for thought
. . . so why not write us for full in
formation?

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. D A VEN PO RT & CO.
OM AHA

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Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1947

Iowa News

May 1, to engage in business for him
self.
He will open an office shortly after
that date and operate a tax service
and engage in the real estate and in
surance business.

Recovering from Illness
Irwin R. Otto, cashier of the Home
Trust and Savings Bank, Osage, Iowa,
who has been critically ill for a num

ber of weeks, is reportedly gaining
steadily in his fight to regain his
health. Mr. Otto is a patient at Mercy
hospital in Mason City.

cials telling them about the alarm. It
seems the alarm started ringing and
then stopped for a while and then
started ringing again some time later.
Upon investigating, bank officials
found that the doors were not properly
closed.

Bank Alarm Rings
Considerable excitement was caused
recently when the burglar alarm
started ringing at the City National
Bank, Shenandoah, Iowa. Thoughtful
citizens started calling the bank offi

Donnelly Named
Appointment of Michael Donnelly to
manager of the advertising and public
ity department of California Bank was
announced recently by Frank L. King,
president of the bank.
Donnelly has been in the bank’s em
ploy for more than twenty years and
for the past ten years has been assist
ant advertising manager in charge of
publicity.

Largest on Record
The largest amount of money ever
paid in one day to a shipper of live
stock changed hands at the Union Stock
Yards in Chicago recently when the
Drovers National Bank received a
check from Dolan, Ludeman and Com
pany, Chicago commission firm, for
$100,703.02 in payment for 418 steers
and one cow shipped from the farm of
Julius Snoozy, Centerville, South Da
kota.
Two sons, Melvin and Everett
Snoozy, brought the cattle to Chicago,
and had the check deposited in the
Drovers National Bank after which
they spent a few days in the Illinois
metropolis seeing the sights.
The total weight of the cattle on the
hoof was 483,780, an average of 1,137
pounds per head.

MIDWESTERN FOREIGN TRADE
HE products o f America’s great agricultural and industrial
heartland are today flowing in increased volume to all
parts o f the world. The financial hub o f midwestern foreign
trade— both exports and imports— is Chicago.
W hen your customers are arranging business transactions
abroad, the Foreign Department o f the American National
Bank can be o f considerable assistance where credits, collec
tions or payments are involved, and where up-to-date infor
mation is required with respect to foreign buyers and sellers
and import and exchange regulations. May we tell you more
about our Foreign Department and how it can serve you?

BANKERS CAN INCREASE
CREDIT VOLUME
(Continued from page 51)
broad one and certainly presents many
complicated problems. While the pic
ture looks exceptionally fine for 1947
there are many ramifications from a
long-time point of view that must be
taken into consideration when estab
lishing promotional procedures and
credit and dealer policies. Banks have
probably already gone into this busi
ness to develop a healthy volume of
outstandings. Have you decided wheth
er you will compete with finance com
panies by going after the dealer paper
or whether you will make every at
tempt to sell your customers on a
direct basis and have them come to
you when they need money for the

AMERICAN NATIONAL BANK
AND TRUST COM PANY
OF

C H IC A G O

LA SALLE STREET ^

Member Federal Deposit

AT WASHINGTON

kith***

Insurance Corporation

w '
O U R

B U S I N E S S

I S

T O

H E L P

Did you know that your Banker’s Blanket Bond
does not protect your Cash Letter while it is in
transit by mail or express? Ask about our
Cash Letter Policy, which fills the gap.
F IR S T

N A T IO N A L . B A N K

B U I L D IN G

Northwestern Banker, April, 7947

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

•

C H IC A G O

B U S I N E S S

Scarborough & Company
Insurance Counselors
3,

IL L IN O IS

STATE

4325

to Banks

Iowa News
purchase of an automobile, appliance,
a modernization repair, or a personal
loan to pay up old debts?

Make Surveys
Straddling the fence and going after
both direct and indirect business is a
difficult task but many banking insti
tutions have done it successfully. To
do this I recommend that you make a
complete survey of the dealer poten
tialities in your community, then de
cide if you want to do business with
these various dealers. If you do, leave
no stone unturned to get their busi
ness. I also recommend that you sur
vey your own customers, for, in the
past, all types of businesses have been
guilty of spending too much time in
developing new business and paying
too little attention to their own valued
customers. I recommend that the in
dividuals in your bank who will be
responsible for this type of business
acquire as quickly as possible the tech
nique and know-how relative to the
acquisition of this type of paper, the
detail of operation in the handling of
the business once it is placed upon
your books, and finally, the finance
company technique with regard to the
collection policy which in the long run
will determine whether or not you
make money or exchange dollars with
your customers in the handling of this
type of enterprise.

Composite Efforts
Banking institutions just getting into
this picture have no easy road ahead
to get and hold this business, but if
you are at all interested the time to
act is now. Remember that the suc
cess in the field of consumer credit can
not be dependent upon any one indi
vidual but instead is due to the com
posite efforts of all of the officers, tell
ers and clerks alike. I am convinced

★

TODAY, AS EVER—

HEADQUARTERS
FOR YOUR
NORTHEASTERN IOWA
BUSINESS

Definite Conclusions
All of the informatiton and data I
have outlined should lead to some defi
nite conclusions. If you decide to go
into this consumer credit business, re
solve to do it on a permanent basis.
Bear in mind the importance of close
dealer relationships if you are buying
paper on an indirect basis. Have all
of the people in your institution be
come sales credit conscious, for up to
the present time we have merely
scratched the surface. We bankers
are going to have to become better
salesmen than we have ever been be
fore in selling the services of our re
spective banks. In the field of con
sumer credit we must conclude that it
is absolutely necessary to merchandise
this type of service—we are going to
actively promote it—we are going to
go out of our way to invite people into
our bank. We are going to attempt
to deal in averages in the handling of
this business rather than insisting that
each deal meet all of the number one

BANKS

that the era is long past when any
business man can sit in his office and
expect the business to come in to him.
I feel that if a man makes enough con
tacts and exposes himself to enough
business, a certain amount is going to
stick to him whether he knows it or
not, regardless of the kind of job he
does. I should like to recommend that
all bankers analyze their own particu
lar community problems and then use
their individual ingenuity and their
individual initiative to develop this
field for the banking fraternity that is
just now attracting major attention
from all lending institutions.—The
End.

credit requirements for I feel we have
sufficient proof that most Americans
are honest and will pay their obliga
tions if the merchandise and services
they contracted for perform.

★

Member— Fed eral Reserve System

Bought and Sold

Confidentially and with becoming dignity

Fed eral Deposit Insurance Co rp o ratio n

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

THE CHARLES E. WALTERS CO.
OMAHA,

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

★

NEBRASKA

N orthw estern B a n k e r , A p r i l , 1 9 4 7

Iowa News

Macgregor to Retire
The board of directors of Investors
Syndicate announced the intention of
Robert E. Macgregor to retire as presi
dent and director of the company and
its affiliates, effective with the next

term of office. Mr. Masgregor was
elected by the board in July, 1945, with
the expressed understanding on his
part that his tenure of office would be
temporary. He had previously retired
from his position as senior vice presi
dent of the Northwestern National
Bank of Minneapolis on December 31,
1944.
Announcing his decision the board
cited Mr. Macgregor for his achieve
ments in “helping the company to
solve the many problems confronting
it at the time he was elected to these
offices.”
In commenting on the vacancy
brought to the executive staff, Earl E.
Crabb, chairman of the board, stated,
“ Mr. Macgregor endeared himself to
the entire organization w i t h his
breadth of human understanding and
administrative ability. He ably filled
a very difficult position. We all regret
the termination of his period of active
service.
“We are making no announcement
at this time concerning an appoint
ment for the vacancy created.”
The annual meetings of stockholders
and directors of Investors Syndicate
will be held July 8, 1947.

me iml v.LMjr cn vciu rc

FOR MAILING, P A C K A G IN G , F ILIN G

Receives Decoration

Tension Envelope Corp.
MANUFACTURING

P L ANT

DES MOINES 14, IOWA
1912 Grand Ave.
Phone 4-4126

JU T

Col. Chas. W. Koester, in the new
business department of the City Na
tional Bank & Trust Company of Kan
sas City, recently received a medal of
the Croix de Guerre for exceptional
service to the Grand Duchy of Luxem
bourg during the Battle of the Bulge.
Colonel Koester also holds the Le
gion of Merit, Silver Star, and Bronze

BULLS...
nd BEARS!
of

The course of the securities markets these days offers one more
reason why you must have a New York correspondent who will
give close personal attention to your problems and serve yonr
interests faithfully . . . and why The Continental should be
among your Metropolitan contacts.

The CONTINENTAL
BANK

T R U S T . COMPANY

o f NEW YORK
30 Broad Street, New York 15, N. Y.
M em ber

F e d era l D e p o s it In su ra n ce

M em ber

Nort hwest ern Banker, April, 1947

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Federal Reserve Bank of St. Louis

C o r p o r a tio n

F ed era l R ese r v e S ystem

Star from the United States govern
ment. He served in the European Thea
ter with the 17th Airborne Division.

F.D.I.C. Director
Henry Earl Cook, now confirmed by
the Senate as the third director of the
Federal Deposit Insurance Corpora
tion, is expected to take oath of office
as soon as he can shift the responsibili
ties of his present duties.
Mr. Cook was State Supervisor of
Banks of Ohio, a former national bank
president and president of the National
Bank Division of the American Bank
ers Association.
As a director of a bi-partisan board
of the F.D.I.C., Mr. Cook will qualify
as a Republican. Maple T. Harl is
chairman, also a former state supervi
sor, serving Colorado. Preston Delano,
Comptroller of the Currency, is a mem
ber ex-officio.

Prochnow Commended
The Council of Administration of the
Illinois Bankers Association adopted
the following resolution commending
the activities of Herbert Y. Prochnow,.
vice president of the First National
Bank of Chicago:
“Two years ago, upon the invitation
of the Wisconsin Bankers Association
and the University of Wisconsin, the
Illinois Bankers Association became
interested in The School of Banking,
then in its first year of operation under
the directorship of Herbert V. Proch
now.
“The Illinois Bankers Association
accepted this invitation and joined
with the aforementioned organizations
in extending a similar invitation to
The Central States Conference.
“ The Central States Conference
thereupon took over the sponsorship
of the school. Due to the inspiration,
perseverance and hard work of the
director, Herbert V. Prochnow, The
School of Banking has attained its
maturity in this short period of time.
Its phenomenal growth is testimony
in itself of the quality of the curricu
lum and of the educational staff.
“ Therefore, the Council of Adminis
tration of the Illinois Bankers Asso
ciation has adopted this Resolution of
Gratitude to Herbert V. Prochnow,
with its pledge of continuing coopera
tion to him and to the School.”

Named Cashier
Richard H. Putnam has been named
cashier of the Chicago-Lake State
Bank, Minneapolis. President E. S.
Jones made the announcement.
Mr. Putnam returns to commercial
banking after many years with the In
terior and Navy Departments. Page 64.

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HARRY R. NASH • M a n a g in g

D irector

m
sm

W R IT E THE

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Federal Reserve Bank of St. Louis

S O R E N O HOTEL F O R FURTHER I N F O R M A T I O N A N D LIT E R A T U R E

Northwest ern Banker, April, 1947

Iowa News

Since the war he has been appraising
and negotiating settlements of damage
claims arising from leases by the
Navy.
In 1945, between Navy assignments,
Mr. Putnam was office manager for
Hartley & Cravens, Minneapolis real
tors.
Mr. Putnam spent nearly eight years
in land appraisal and negotiation work
for the Fish & Wildlife Service of the
Interior Department. For this he
headquartered successively at Minot,

Ogden, Denver and Minneapolis. From
1932 to 1934 he was secretary and field
manager of the Watford Land Com
pany.
After leaving the University of Min
nesota in 1921, Mr. Putnam was suc
cessively employed in the Lincoln
National Bank, Minneapolis, and the
First State Bank of Wartford City.
North Dakota, where he was cashier
and a director.

Bond-A-Month
A bond-a-month plan will be offered
by banks to their depositors for the
systematic purchase of United States
savings bonds, Secretary of the Treas
ury John W. Snyder announced during
a national savings bond conference
called by the Treasury Department.
The plan was described by promi
nent bankers speaking at the confer
ence as a boon to professional and
other self-employed persons, and all
other bank depositors to whom the
payroll savings plan is not available.

I Here’s Your Daily it
FINANCIAL NEWSg
¡ T h e Journal o f Commerce |f
|| gives you each day— and ar- j
ranged for fast and easy read- .
i;". ing — the follow ing impor:
II tant financial news features:

MERCHANTS

M U T U A L

BONDING
COMPANY

Complete New York Curb
quotations.

U 3 - The most complete Unlisted | |
Securities quotations any- .
w here published — over
1500 each day.
;

Incorporated 1933

Hom e Office
S O U TH ER N S U R E T Y B U ILD IN G

Utility News Summary.

Railroad News Summary.

Des Moines, Iowa

6 - Industrial News Summary.
7 - Stock Market Trends

This is Iowa’s oldest surety company.

plus feature articles and com- ;

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plete coverage o f all financial
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I Journal of Commote |
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NEW YORK
53 Park Row, New York

W r it e to

E. H. WARNER
1 5 , N.

Secretary and M anager

M A R Q U E T T E
OF
"THE

STRONG
MEMBER

Northwest ern Banker, April, 1947

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Federal Reserve Bank of St. Louis

MINNEAPOLIS

FRI END
FEDERAL

B A N K

THE

DEPOSIT

I NDE P E N DE NT

INSURANCE

BANKER"

CORPORATION

It was called “the most promising plan
for spreading the national debt among
non-bank investors since the adoption
of the payroll savings plan in 1941.”
The plan, as explained by Robert V.
Fleming, chairman of the treasury bor
rowing committee of the American
Bankers Association and president of
the Riggs National Bank of Washing
ton, D. C., operates this way: The
depositor who wishes to buy a bond
each month signs a card authorizing
the bank to deduct the purchase price
from his or her checking account. The
bank issues the bond at its conven
ience during the month and mails it
to the customer. This eliminates
standing in line at the bond window.
The depositor on the bond-a-month
plan enjoys the same privilege of
automatic bond buying as do the mil
lions of wage and salary earners now
on payroll savings, Mr. Fleming com
mented.

Lawrence Report
Mr. Louis Benoist, president, Law
rence Warehouse Company, the largest
operator of field warehouses in the
United States, has just issued the com
pany’s financial report for the year
ended December 31, 1946. Mr. Benoist
states that the company had the most
successful year in the more than thirty
years’ history of its operations.
As at the year end the company’s
balance sheet showed current assets of
$1,687,000 against current and total lia
bilities of $918,000, leaving a net work
ing capital of $769,000, after making
provision for income and other taxes
aggregating $302,000. Working capital
shows a net gain of $93,000 over a year
ago. The company has cash of $173,000
with accounts receivable of $1,387,000,
over 90 per cent of which are secured
by warehouseman’s liens on merchan
dise. Capital stock is $580,170, with a
surplus of $387,743, the latter showing
a gain of $118,311 over last year after
dividends of $64,118.
Gross revenue for the year was
$9,754,000 which, according to the pres
ident, reflected a gain of 33 per cent
over the preceding year. Net income
after taxes was $181,000.
The company, with its head office in
San Francisco and division offices in
Chicago and New York City, maintains
offices in more than 25 cities through
out the country. Almost 2,000 field
warehouses are being operated with
installations in almost every state in
the union.

Almanac Wrong
The World Almanac, purveyor of
authoritative fact and information, has
been found in error by Bror W. Unge,
manager of the foreign department of

City National Bank and Trust Com
pany, Kansas City, Missouri.
In a listing of the dates of famous
inventions, the year 1903 is given as
the date when Col. William Theodor
Unge invented the depth bomb.
It wasn’t the depth bomb at all, Mr.
Unge says, it was the aerial torpedo.
And he should know, because the late
Colonel Unge was his father and a
goodly portion of the Unge fortune
went into the development of the
rocket bomb, which the Krupps later
took under option and which the late
Alfred Nobel, inventor of dynamite
and close friend of Colonel Unge, col
laborated upon. Colonel Unge died in
1915, having been decorated by numer
ous countries, including Russia and
France, for his military inventions.

Credit Manual
Ernest E. Nelson, manager, Brown
Brothers Harriman & Company, Bos
ton, and president of the Robert Mor
ris Associates, announces the third
printing of “ The Credit Department—
A Training Ground for the Bank Loan
Officer.” This is the credit manual or
“Bible” issued by the research commit
tee of the Associates under H. T. Riedeman, vice president of the Industrial
National Bank in Chicago, as chair
man, and Professor C. W. Williams of
the University of Louiville as research
director.
Its primary use is to serve as a text
for the education of new employes or
returned service men who have been

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

out of touch with activities in the
credit department. Many seniors are
finding it fertile with ideas and are
making the study of it a “must” for
their staffs.
You may obtain a copy from Ray
mond W. Duning, Secretary-Treasurer,
Robert Morris Associates, 1417 Sam
son Street, Philadelphia 2, Pennsyl
vania. Price $1.00.

IN D E X OF
A D V E IIT IS E H S
MARCH,

1947

Allied Mutual Casualty Company..............34
American National Bank and Trust Co. .60

Credit Group Meeting
The Missouri Valley Chapter of Rob
ert Morris Associates held their annual
meeting and election of officers in
Omaha April 9th. Bank credit men
from all parts of Nebraska, Iowa, Okla
homa, Colorado and Kansas attended,
according to O. H. Elliott, vice presi
dent of the First National Bank of
Omaha, and president of the group.
Principal speaker was Chris J. Ab
bott of Hyannis, Nebraska, president
of the Stock Growers Association, and
a director of the United States Cham
ber of Commerce, as well as president
of several western Nebraska banks.
Mr. Abbott’s subject was “ Live Stock
Loans.” There were several other
speakers during the day, including
Ray H. Matson, vice president of the
First National Bank of Chicago, and
Laurens Williams, attorney.

Bankers Trust Company— Des M o in es... 67
Bankers Trust Company— New Y o r k .... 6
Buckham, H. B. and Company, Inc............. 26
Burroughs Adding Machine C o m p a n y ...14
C

Central National Bank in Chicago...........59
Central National Bank and Trust C o .... 12
Central States Mutual Insurance Assn. . .35
Chase National Bank...................................... 8
City National Bank and Trust Company
— Chicago ........................................................ 50
Continental Bank and Trust Company. .62
Continental National Bank—-Lincoln . . . . 50

Davenport, F. E. and Company...........46-59
DeLuxe Check Printers, Inc..........................59
Des Moines Building, Loan and Savings
Association ......................................................65
Downey, C. L. Company.................................46
Drovers National B ank................................... 56
F
Farmers Mutual Hail Insurance Co.......... 35
Federal Intermediate Credit B ank..............31
First National Bank— Chicago.................... 36
First National Bank— Omaha........................ 51
First National Bank— Sioux C ity................ 54
First St. Joseph Stock Yards B ank.......... 46
First Trust Company of Lincoln.................. 51
First Wisconsin National B an k.................... 42
Hammermill Paper C om p an y .,.................... 23
Home Insurance Company............................ 3
Hotel Soreno........................................................ 63
I

The Hand That Feeds Him
“Why is your hand bandaged?”
“ I put it into a horse’s mouth to
count his teeth and he bit me to see
how many fingers I had.”

Iowa-Des Moines National Bank and
Trust Company................................................68
Irving Trust Company..................................... 27
J

Jamieson and Company................................... 31
Journal of Commerce....................................... 64
Klipto Loose Leaf Company......................... 65
Koch Brothers.....................................................65
I i

LaMonte, George and Son.............................. 5
Lessing Advertising Company.................... 65
Live Stock National Bank— Chicago. . . . 55
Live Stock National Bank— Omaha...........52
Live Stock National Bank— Sioux C it y ..40

Marquette National B ank...............................64
Merchants Mutual Bonding Company. . . . 64
Merchants National B ank.............................. 2
Minneapolis Moline Power Implement
Company .......................................................... 35
Minnesota Commercial Men’s A ssn ..............39
N
National Bank of Commerce.......................... 51
National Bank of W aterloo...........................61
National Cash Register Company..............25
New York Trust Company............................ 4
Northern Trust Company...............................58

O
Omaha National B ank..................................... 21

P
Public National Bank and Trust Co.......... 30
S

St. Louis Terminal Warehouse Company.28
St. Paul Terminal Warehouse Company. 30
Scarborough and Company................83-54-60
State Automobile Insurance Association. 34
Stock Yards National Bank— Omaha.........47
T

Tension Envelope Corporation.................... 62
Tootle Lacy National B ank...................... 48-49
TJ

Union Stock Yards Company— O m a h a... 7
United States National Bank— O m a h a ...44
V

Valley Bank and Trust Company................57
W

Walters, Charles E ............................................. 61
Western Mutual Fire Insurance Co.......... 32
N orthw estern

Ban ker, A p ril,

7947

In the

DIRECTOR’S
ROOM
Double Trouble
Judge (gravely): So you deceived
your husband?
Wife: On the contrary, judge, he
deceived me. He said he was going
out of town and he didn’t go.
W ho Dug This U p?
“That gal certainly puts on the dog.”
“What do you mean?”
“Her father is an undertaker down
in Georgia and she tells everybody he’s
a southern planter.”

Take It Or Leave It
Uncle (to six-year-old after she at
tended church services for the first
time): And how did you like it, my
dear?
Six-year-old: I liked the music okay,
but the commercial was too long.

A Real Diplomat
Visitor: If your mother gave you a
large apple and a small apple and told
you to give one to your brother, which
would you give him?
Little Girl: Do you mean my big
brother or my little one?
The Average Angel
Wife: How sweet of you to call me
an angel, dear. But why?
Husband: ’Cause you’re always up
in the air; you’re continually harping
on something, and you never have a
darn thing to wear.
The Truth Again
“What is the shortest, perceptible
unit of time?”
“The period between the moment a
traffic light changes and the time the
boob behind you blows his horn.”
Sheepish Remarks
“Will this suit hold its shape?”
“ It’s 100 per cent virgin wool, sir.”
“ I’m not interested in the morals of
the sheep—I asked you if this suit will
hold its shape!”
N orthw estern

Ban ker, A p r i l,

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

1947

C O N V E N T IO N S
April 13-15, A .B .A . Spring Council
Meeting, French Lick, Indiana,
French Lick Springs Hotel.
April 14-19, Annual Group Meetings,
South Dakota Bankers Associa
tion.
A pril 21-24, Nebraska Bankers Asso
ciation Group Meetings— Special
Train.
May 12-14, Assn. Reserve City Bank
ers, New Ocean House, Swampscott, Mass.
May 19-21, 56th Annual Convention,
Illinois State Association, Chicago,
Palmer House.
May 13-23, Iowa Group Meetings.
June 2-6, A .I.B . Annual Convention,
Detroit, Hotels, Statler and BookCadillac.
June 2-14, Central States School of
Banking, University of W iscon
sin, Madison.
June 11-12, Annual Convention, M in
nesota Bankers Assn., St. Paul,
Hotel St. Paul.
June 15-28, Graduate School of Bank
ing,
Rutgers
University,
New
Brunswick, N. J.
June 16-17, Annual Convention, North
Dakota State Association, Bis
marck.
June 16-28, Agricultural Credit School,
Am es, Iowa State College.
June 20-21, Annual Convention, South
Dakota State Association, Sioux
Falls.
June 23-25, Annual Convention, W is
consin State Association, Milwau
kee, Hotel Schroeder.
July 8-10, Nebraska Bankers Clinic,
Doane College, Crete, Nebraska.
July 7-19, Agricultural Credit School,
Am es, Iowa State College.
September
26-28,
Assn,
of
Bank
W om en, Claridge Hotel, Atlantic
City, N. J.
September 29-October 1, A .B .A ., 73rd
Annual Convention, Atlantic City,
New Jersey.
October 6-8, 61st Annual Convention,
Iowa
State
Association,
Des
M oines, Hotel Fort Des Moines.
October 6-9, Annual Convention, Fi
nancial Advertisers Assn., New
Y ork City, Hotel W aldorf.
October 22-25, National Assn. Bank
Auditors and Comptrollers, Balti
more, Md.

Just Cut M e In
Mother: Don’t be discouraged, Lulu;
in this world there’s a man for every
woman. It’s a wonderful arrangement.
Lulu: I know it, Ma. I don’t want
to change it—I just want to get in on
it.
Sad Predicament
“Am I scared! Just got a letter from
a guy telling me to stay away from
his wife or he’d kill me!”
“Well, why don’t you?”
“ He didn’t sign his name!”
Family Hospitality
“ Say, waiter, this steak isn’t very
tender.”
“ If it’s affection you want, sir, you’ll
have to speak to the cashier.”
None of Your Business
He: I can’t see what keeps you girls
from freezing.
She: You’re not supposed to.
Caps
Grandmother surveyed the new dress
granddaughter just donned, with con
siderable disdain and disgust. The
modern young miss noted the apparent
disapproval and inquired, “Grandmoth
er, dear, when you were my age didn’t
you set your cap for granddaddy?”
“ Of course I did,” replied grandmoth
er, “but it wasn’t my knee cap.”
Playing Safe
In a college town a student called at
a boarding house to ask about rooms.
“And what do you charge for your
rooms?” he asked.
“Five dollars up,” was the reply.
“Yes, but I’m a student,” he said,
thinking the price a little high.
“ That being the case, the price is $5
down,” replied the landlady, who had
had experience.
Misplaced Pain
“ He’s a pain in the neck.”
“ I’ve got a lower opinion of him
myself.”

SERVICE___ ON THE DOT
S e rv ic e to co rre sp o n d e n t b a n k s ren dered by T h e B a n k e r s T r u s t o f D es
M o in e s is tr u ly “ S e rv ic e — on th e d o t !”
I t ’ s “ on th e d o t” f o r speed in h a n d lin g tr a n sa c tio n s o f e v er y b a n k in g
n a t u r e ; “ on th e d o t” fo r cred it in fo r m a t io n ; and “ on th e d o t” fo r desired
co n ta cts.
A n d D e s M o in e s is “ o n th e d o t” as th e d is tr ib u tin g cen ter o f Io w a , too,
b esid es b e in g lo g ica l h ea d q u a rte rs fo r fa c to r y b ran ch offices and m a n u

fib

fa c t u r e r s ’ re p r e se n ta tiv e s c o v e r in g th e sta te .

N a tu r a lly , Io w a b a n k e rs find th a t a con n ection w ith B a n k e r s T r u s t in
D e s M o in es h elp s th e m g iv e “ on th e d o t” serv ice to th e ir ow n cu sto m ers.

BANKERS TRUST COMPANY

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Federal Reserve Bank of St. Louis

“ ilium

6TH AND LOCUST
Member— Fed. Dep. Ins. Oorp.

DES MOINES
w.Member— Fed. Res. System

VANCOVER B.C.

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Federal Reserve Bank of St. Louis

COLLECTIO NS
An I m p o r t a n t S e r v i c e f o r Y o u r C u s t o m e r s
Des Moines is the junction
point of two major air lines
. . . United's transcontinental
East-West route and Mid-Con
tinent's North-South route. Di
rect air mail connections with
all leading centers are thus
available.
Des Moines also is the hub of
a network of railroads, pro

viding fast, dependable serv
ice in all directions.
A steadily increasing volume
of collection business indi
cates that Iowa Banks and
Bankers are relying to a
greater extent than ever be
fore on the facilities of this
Bank to provide fast and effi
cient collection service for
their customers.

A STRONG, DEPENDABLE CORRESPONDENT CONNECTION