Full text of The Northwestern Banker : August 1940, Forty-Fifth Year, Number 637

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AUGUST

1940

K. O. SA T T R E
Cashier, B lue Earth State Bank, B lue Earth, M innesota
President, M innesota Bankers A ssociation

NX^hat Happened at the NX^ages and Hours Hearing

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Page 11

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When Iowa Grain Goes to Market—

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W hen Iow a grain goes to m arket Cedar R apids and a
Cedar R apids h an k co n n ectio n take the sp o tligh t. For this
city is Iow a’s o u tsta n d in g grain center.

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T h is h a n k is th o ro u g h ly eq u ip p ed to h an d le you r grain
m ark etin g n eed s with the sam e sk ill and precision that
ch aracterizes ail M erchants N ational co rresp o n d en t service.

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A CEDAR RAPIDS BANK

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R A PIO S

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SERVICING A L L IOWA*

MERCHANTS

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NATIONAL BANK
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J ames E. H am ilton , Chairman
S. E. Coquillettb, President
H. N. B oyson , Vice President
R oy C. F olsom , Vice President
Mark J. Myers , V. Pres. & Cashier
George F . M iller , V. Pres. & Tr. Officer
Marvin R. S elden , Vice President
F red W. S m it h , Vice President
J o h n T. H am ilton II, Vice President
R. W. Ma n a t t , Asst. Cashier
L. W. B roulik , A sst. Cashier
P eter B ailey , Asst. Cashier
R. D. B row n , Asst. Cashier
O. A. K earney , Asst. Cashier
S tanley J. M ohrbacher , A sst. Cashier
E. B. Zbaneik , Building Manager

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OFFICERS

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Cedar Rapids

Iowa

Member Federal Deposit Insurance Corporation

N orthw estern Banker, published m onthly by the D e Puy P u b lish in g Company, Inc., at 527 7th Street, D es M oines, Iowa.
Subscription, 35c per copy, $3.00 per year. Entered as secon d -class matter at the D es M oines post office. Copyright, 1940.


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C orrespondent Services
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Always Prompt
and Courteous In
Its Attention to All
C orrespondent Needs

"

Iowa’s Friendly Bank »

CEE1TRRL nflTIOnfiL BRE1K

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trust

compflny

Fifth Avenue Between Locust and Walnut
DES M OINES, IOWA


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4

THE C H A S E
N A T I O N A L BANK
OF

THE

CITY

OF

NEW

YO R K

Statement o f Condition, June 29, 1940
RESOURCES
C a s h a n d D u e fr o m B a n k s ............................................................................. $1,467,007,452.80

U. S. G o v e r n m e n t O b l ig a t io n s ,

d ir e c t and f u l l y g u a r a n t e e d

S t a t e and M u n ic ip a l S e c u r i t i e s ..............................................................
S t o c k o f F ed era l R ese r v e B a n k ..............................................................
O t h e r S e c u r i t i e s ............................................................................................
L o a n s , D is c o u n t s a n d B a n k e r s ’ A c c e p t a n c e s ...............................
B a n k in g H o u s e s ..................................................................................................
O t h e r R eal E s t a t e ......................................................................................
M o r t g a g e s ...............................................................................................................
C u s t o m e r s ’ A c c e p t a n c e L i a b i l i t y ........................................................
O t h e r A s s e t s .........................................................................................................

1,039,030,754.02
127,895,549.51
6,016,200.00
151,938,094.22
607,858,800.76
32,773,713.63
8,126,541.88
10,677,143.08
11,944,699.23
9,510,536.59
$3,472,779,485.72

LIABILITIES
C a p it a l F u n d s :
C a p it a l S t o c k .................................................................. $100,270,000.00
S u r p l u s ..........................................................................

100,270,000.00

U n d iv id e d P r o f i t s .................................................

33,820,953.64
$ 234,360,953.64

D iv id e n d P ay able A u g u s t 1, 1940

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

5,180,000.00

R e se r v e fo r C o n t i n g e n c i e s ..........................................................................

14,507,676.95

R e se r v e fo r T a x e s , I n t e r e s t , e t c ..............................................................

D eposits

2,214,575.31

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

3,190,822,926.19

A c c e p t a n c e s O u t s t a n d i n g ..........................................................................

13,488,305.37

.

1,004,017.12

O t h e r L i a b i l i t i e s ............................................................................................

11,201,031.14

L ia b il it y as E n d o r ser o n A c c e p t a n c e s a n d F o r e ig n B il l s .

$3,472,779,485.72

United States Government and other securities carried at $141,972,500 are pledged to secure
public and trust deposits and for other purposes as required or permitted by law.
M em ber Federal Deposit Insurance Corporation


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R EASO N S W HY BANKS P R E FER

PRESTIGE

L A M O N T E S A FET Y PAPER S
PROTECTION
G O O D WILL VALUE
/

V

RECOGNITION
PRESTIGE
INDIVIDUALITY
ACCEPTANCE
WRITING

SURFACE

P R I N T I N G SURFACE
DURABILITY

Ü

UNIFORM Q U A L I T Y g g

The A m erican E a g le, incorporated in the d esig n of our
N ational Coat of Arm s and The Great S ea l of the United
States, h a s, through lo n g u sa g e , b eco m e an esta b lish ed
sy m b o l of F ed eral authority » » » Sim ilarly, 69 y ea rs of
public serv ice h a s g iv e n the " safety paper w ith the w a v y
lin e s

w id esp read recognition a s A m erica's standard

of protection for ch eck s an d other n egotiab le instrum ents.

G E O R G E LA MONTE & SON, NUTLEY, N. J

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Federal Reserve Bank of St. Louis

6

PROTECTING

I NV I S I B L E

V A L U E S — NO.

15

when

FIRE HILTS PRODIICTIOI..
but

U&O Saves Earnings—Safeguards Loans
H R IV IN G in a prosperous plant are invisible values created as raw
products become finished goods . . . earnings, profits, commissions.
These values are needed to pay debts and charges, to meet payrolls and to
liquidate loans. Manufacturers who lose earnings choked off by fire need
not be without expected income, even though belts are stopped and busy
hands made idle. Use & Occupancy insurance, a valuable supplementary
coverage, w ill reimburse for the loss of invisible values, just as though
mishap had not come. This useful protection can be made to fit the indi­
vidual requirements of all types of establishments.
If you are interested in the financial health of concerns to which you
have advanced funds, U & O w ill be, to you, a defender of loan security.
The HOME agent near you w ill gladly discuss this supplementary form
and show how it applies to the needs of your borrowers. He w ill also
explain other forms written by THE HOME to protect invisible values.

T

m

TIAM F

nUlVllj
NEW YORK

FI RE — AUTOMOBI LE — MARI NE

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INSURANCE
COMPANY

and

ALLIED

LI NES

OF

INSURANCE

nor^

w e/ ter n

A UGUST

19 4 0
FORTY-FIFTH Y E A R

NUMBER 637

Oldest Financial Journal West of the Mississippi River

IN THIS ISSUE
Editorials
Across the Desk from the P u b lish er................... ....... .....................................................
C LIFFO RD DE PUY
Publisher

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

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

J. STUART D A V IS
Associate Editor

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

•

•

Feature Articles
F rontispiece ........................................................... .................................................................. 10
W ages and H ours H earin g in W ashington____C. W. Stafford and H. L. Huston 11
Don’t W orry About Drop in G overnment Bonds.....................J. Franklin Ebersole 12
W hat I L earned A bout R u tg ers............................... ........................... Preston E. Reed 13
News and V iew s......................................................................................... Clifford De Puy 14
M ore T han 81 P er Cent Opposed to B ranch B anking.................................................... 15
Legal Questions and A nsw ers........................................................................................ ..... 16
How D edecorating Im proved a Bank L oan................................................ Lee Potter 17
How To Select Employes for Y our B ank................................................ R. K. Brown 18
How Field W arehousing Is Serving Both Business and B an k er........E. A. Baker 20

nsurance
W hy I Keep a Record of My Sales Effort.

.Emerson Davis 22

Bonds and Investments
The M onth’s M arket M aneuvers................................ ........ ............... James H. Clarke
Iowa Investm ent Banking N ew s................................. ....................... ............. ..................
W hat T h eir Statem ents Show............... .......... ...................................................................
N ebraska Investm ent B anking New s................... ............................ ............. ....... ..........

25
28
29
31

State Banking News

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

8

Suite 1 202

Telephone MUrray Hill 2-0326

M IN N E A P O L IS O FFIC E
J. A . Sarazen

N ebraska News ............ ........................................ .................................................................
Omaha Clearings ................ ............................................................................. ..............
Lincoln Locals _____ _________ ______________ _________________ _______ __
South D akota N ew s.................................................................................................................
M innesota News ................................................................................................„....... ............
Twin City New s..............................................................................................................
N orth D akota N ew s............................ .......... ................................................. ............ ........ .
M ontana News ................... ............. ......... .......... .................................... ........ .....................
Iowa News ..................... .............................. ................. ......... ....................... .......................
News from Des Moines........................................................ .......... r............................
Iowa News from H ere and There........ ......... ................................. J. A. Sarazen

33
35
37
39
41
42
45
46
47
56
51

Associate Editor
Telephone Hyland 0575

Savings and Loan
O perating P lan of “Own-A-Home” Clubs........................................George W. West 63

The Directors’ Room
A Few Short Stories to Make You L au g h ............................................ .......................... 66
M EM BER
Audit Bureau of Circulations
Financial Advertisers Association

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Across the Desk
From the Publisher

W ith so m any countries
Is Foreign Trade
now un d er H itle r’s to ta li­
Everything?
ta ria n dom ination, we are
n atu ra lly w orried about w h at will happen to our
foreign tra d e when W orld W ar No. 2 is over.
W e have no desire to minimize the im portance
of our foreign tra d e b u t when we figure our to tal
exports against our national income it figures to
a little more th a n 2.1 per cent.
To be specific, in the year 1939 our to tal national
income was about 69 billion dollars and of this
$3,177,344,000, or only 2.1 per cent, represents our
to tal exports.
W hy, therefore, should we p u t so m uch em pha­
sis on our foreign tra d e and not give as m uch
th o u g h t perhaps as we should to the developing of
our business am ong ourselves, which am ounts to
98 per cent of our to tal income.

Figures for 1938-1939 showing exports and im­
ports are as follows:
Exports
General Imports
1938 .....................„.$3,094,440,000
$1,960,428,000
1939
....... . 3,177,344,000
2,318,258,000
F oreign tra d e is certainly im p o rtan t b u t it is
not everything, as fa r as our dom estic economy is
concerned. T rading w ith ourselves am ounts to
98 per cent, and th a t is a very favorable th in g to
consider when we are facing com petition w ith
Nazi controlled countries.

A t the same tim e it increases the federal debt
lim it by 4 billion dollars to 49 billion dollars.

The estimated revenue from these taxes is as
follows :
Individual income taxes...........................375 million
Corporation income taxes...... .................205 million
Capital stock and excess profits taxes.. 12 million
Estate and gift taxes.........................
32 million
Alcoholic beverage taxes.........................125 million
Tobacco taxes ......................
34 million
Gasoline and lubricating oil excess
tax ..........................................................116 million
Auto, truck, etc., excise taxes.................. 14 million
Taxes upon admissions to theatres, etc. 60 million
Other ta x e s ................................................ 21 million
Total increase ..................................... 994 million
C orporation income taxes are increased perm a­
n ently from 12.5 per cent, 14 per cent, 16 per cent,
and 18 p er cent to 13.5 per cent, 15 per cent, 17
per cent and 19 per cent.
B oth the perm anent and tem porary increases
are applicable to taxable years beginning afte r
Decem ber 31, 1939.
No one objects to “ pay as we g o ” for our huge
increase in G overnm ent spending fo r arm am ents.
B ut, is n ’t it also tim e to reduce the expenses of
dozens of unnecessary bureaus in order th a t the
m oney m ay be saved and p u t into our n atio n al
defense?

Conquest of

The revenue act of 1940
Raising I Billion
which was signed by the
Dollars By
P resident recently, m akes
New Taxes
perm anent increases in cor­
p o rate and individual income taxes and in a d d i­
tion imposes increases fo r five years upon those
taxes and p ractically all others, including estate,
gift, and excise levies b u t not the payroll taxes.
The new law is designed to raise additional rev­
enue of approxim ately 1 billion dollars yearly.


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E v e r y inform ed w riter
about South A m erican affairs
OU . menca p nows th a t H itler and his
Dy n itie r
Nazi gang of in trig u ers, fifthcolum nists and in tern a tio n al rack eteers are doing
everything they can to get control of South A m er­
ica and South A m erican trade.
T hat is w hy it is so absurd to read in the Germ an
propaganda bulletin, “ F acts in R eview ,” p u b ­
lished a t 17 B a tte ry Place, New Y ork, the follow ­
ing statem ent by H itle r:
c

A

.

9

“ Germany is one of the few countries which
hitherto has refrained from interfering- in Amer­
ica in any way. Germany has never had any ter­
ritorial or political interests on the American con­
tinent, nor has Germany any such interests now.
Whoever asserts the contrary is lying for some
purpose.
‘ ‘Thus, the manner in which the American con­
tinent shapes its life is of. no interest to us. That
holds true not only for North America, but equally
so for South America.’’
In all the history of the w orld to date, th ere has
never been any ru le r of a g reat nation who has
been so consistently treacherous and deceitful as
has H itler and who by his own statem ents in his
book Mein Kampf adm its th a t treach ery and de­
ceit are p a rt of the weapons of in tern atio n al
progress.
The B ureau of A g ri­
cultural Economics of
the U nited S tates De­
p artm ent of A gricul­
ture has ju s t released
the official figures covering income to farm ers
from th eir farm m arketing and also from govern­
m ent paym ents for 1939.
D u rin g 1939 the governm ent paid farm ers $807,065,000 and fo r th a t same y ear the to ta l income,
including governm ent paym ents to farm ers,
am ounted to $8,518,046,000.
T herefore, farm ers received approxim ately 9.4
p er cent of th eir to tal income from governm ent
paym ents d u rin g the last calendar year.
The figures for the N o r t h w e s t e r n B a n k e r
states are a little higher and show th a t farm ers in
this area received 11.5 p er cent of th eir to tal in­
come from governm ent paym ents.
The figures fo r the N o r t h w e s t e r n B a n k e r
states are as folows :

Farmers Received
9.4 Per Cent in
Government
Payments in ! 939

T otal Cash
Income From
Farm M arketing

Iowa ................... $ 589,915,000 $
Minnesota ......... 332,766,000
Nebraska
....... 219,074,000
N orth D akota....
108,815,000
South D akota ....
100,907,000
Montana ...........
83,752,000

Government
Paym ents

Total Including
Gov’t Paym ents

69,444,000 $ 659,359,000
26,599,000
359,365,000
28,078,000
247,152,000
29,345,000
138,160,000
23,052,000
123,959,000
12,271,000
96,023,000

$1,435,229,000 $188,789,000 $1,624,018,000

F rom this it w ill be seen th a t the to ta l farm in ­
come in the N o r t h w e s t e r n B a n k e r area, includ­
ing governm ent paym ents, am ounts to $1,624,018,000, an d th a t farm ers received in governm ent p ay ­
m ents $188,789,000 or approxim ately 11.5 per cent
of th eir income was in governm ent paym ents or
2.1 per cent above the national average.


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B ankers m anufactu re credit
and offer it for sale and so
does the governm ent.
A nd if bankers are to stay
in the business of m an u factu rin g credit, they m ust
do it on a basis which will compete w ith the gov­
ernm ent and give to the u ltim ate purchaser of the
credit b e tte r service, less red tape, and b etter
cooperation th an they can get from governm ent
credit agencies.

Bankers
Manufacture
Credit

“ The less sound su b stitu te ” offered by the
G overnm ent to the prospective users of cred it is
n eith er good business for the G overnm ent or for
the banks, and if bankers continue to give the
service w hich they really know how to give Gov­
ernm ent com petition should be held to a minim um
or at least g reatly reduced.

Business Men
Can Help If
G .iven a Chance

Business men and b an k ­
ers th ro u g h o u t the nation
are anxious to help in the
,
.
preparedness program to r
the governm ent, if they are given a chance.
They cannot, however, be appointed on com m it­
tees and advisory councils and then have p o liti­
cians and governm ental red tape keep them from
doing the job w hich they should and can do.
Discussing economic preparedness recently, E m ­
m ett F. Connely, president of the Investm ent
B ankers Association of Am erica, said :

“ Businessmen, not politicians, built this nation,
and businessmen will save it if given the opportu­
nity. It should be your duty and mine to insist that
our representatives in Washington, whether they
be Democrat or Republican, turn this job over to
experienced workmen who know how to do the job
because they have been through the mill of hard
knocks.”
P resid en t R oosevelt’s recent advisory com m it­
tee includes some of the biggest in d u strialists in
the country, b u t unless they are given more lee­
w ay th a n they have been given so far, th ey will
be bogged down by politicians and governm ental
red tape experts who will prevent these d istin ­
guished gentlem en from doing the job w hich they
really can do.
And, is n ’t it in terestin g to th in k th a t the very
m en who have been kicked and cuffed around by
the adm inistration should now be called upon to
p rep are this co untry to face the g reatest em er­
gency it has ever faced in i t ’s lifetim e?


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11

W HAT

HAPPENED

at the W ûg6S and H öUtS Hearing
IN

W A SH IN G TO N

Iowa Bankers C lay W . Stafford and H. Lee Huston Report on
Recent Conference
OR som e m o n th s p ast th e Iow a
B an k ers A ssociation, th ro u g h its
ad m in istra tiv e com m ittee a n d o th er
officers and cooperating ban k ers, se­
lected by P re sid e n t C. R. Gossett, all
w ith th e able assistan ce of S ecretary
F ra n k W arn er, has been w orking
closely w ith th e F ed eral L egislative
Com m ittee of th e A m erican B an k ers
A ssociation w ith a proposal to get a
re-definition of th e te rm s “executive,”
“a d m in istra tiv e ” a n d “pro fessio n al”
em ployes, as th e y now ap p ear in th e
W age and H o u r regulations.
R ep resen ted on th e com m ittee w ere
Iow a b an k s of n e a rly ev ery type an d
size. W hen th e W age an d H o u r h e a r­
ing w as held in AVashington on Ju ly
9th, h av in g been a rra n g e d by th e
A m erican B an k ers A ssociation, Clay
W. Stafford, cash ier of the Am es T ru st
& Savings Bank, w as selected to re p re ­
sen t b an k s located in la rg e r and m e­
dium sized cities in Iowa, an d H. Lee
H uston, cash ier of th e Colum bus J u n c ­
tio n Savings B ank, to re p re se n t b an k s
in tow ns of 1,000 p opulation or less.
W e asked Mr. Stafford an d Mr. H u s­
to n to p re p a re for our read ers an ac­
count of th e W ash in g to n conference,
an d th e follow ing is th e ir report:

F

C lay W . Stafford Says:
“T here w ere eleven b an k ers in all
w ho m ade th e trip to W ash in g to n to
re p re se n t th e A m erican B an k ers A sso­
ciation. T hese b a n k e rs re p re se n te d
th e sm all, th e m edium sized an d th e
large b an k s in th e U nited States. In
ad dition to th e tw o from Iow a, th e re
w as one b a n k e r from each of th e fol­
low ing tow ns and cities — B ucyrus,
Ohio; R ocky M ount, N o rth Carolina;
W inchester, ATrginia; Chicago, Illinois;
P hiladelphia, P ennsylvania; W ash in g ­
ton, D. C.; N ew Y ork City, N ew York;
and N orw ich, Connecticut. All of these
b an k ers m et a t th e office of D. J. N eed­
ham , g en eral counsel for th e A m erican
B an k ers A ssociation, in W ashington,
' on th e m o rn in g of Ju ly 8th, for th e
purpose of review in g th ese re p o rts

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from th e v arious banks and in order
th a t each one m ight m ake final p rep ­
a ra tio n and sum m arize th e personnel
operations of his b ank in such m an n er
th a t a tru e pictu re of th e situ atio n
could be presen ted to th e re p re se n ta ­
tives of F ederal W ages and H ours
Law. Too m uch credit cannot be given
A. L. M. (Lee) W iggins, chairm an of
th e A m erican B ankers A ssociation
L egislative Com m ittee, w ho acted as
ch airm an at th is prelim in ary m eeting
on Ju ly 8th, and w ho th ro u g h his p ast
experience in legislative m atters w as
able to anticipate in general th e in fo r­
m ation w hich th e W ages and H ours
A d m inistration w ould like to have.
“On th e m orning of J u ly 9th, these
b a n k ers m et as previously arran g ed in
an au ditorium a t th e W illard H otel for
th e hearing, w hich w as conducted by
H arold Stein, a ssistan t d irector of th e
H earing D ivision of th e F a ir Labor
S tandards Act. A. L. M. W iggins
opened th e h earin g w ith a v ery excel­
le n t and com plete statem en t for th e
m em ber banks of th e A m erican B ank­
ers A ssociation, and called atte n tio n to
th e fact th a t th e proposed re-defini­
tion, copies of w hich had previously
been subm itted to th e W age and H our
Division, suggested th e ad m in istrato r
approve eith er th e re-definition of
“executive,” “a d m in istrativ e” a n d
“p rofessional” em ployes on a func­
tio nal basis or on th e basis of salary
received.
“Mr. W iggins m ade a v ery clear
sta tem en t to th e effect th a t even
th o u g h it w as a p p aren tly not intended
th a t b an k em ployes should come u n ­
d er th e provisions of th is act, th a t the
b an ks have n ot attem p ted to evade the
law b u t ra th e r to cooperate so far as
possible in com plying w ith th e law
u n d er th e assum ption th a t th ey w ere
technically included u n d er th e p rovi­
sions of th e act and th erefo re expected
to comply. H e b ro u g h t out th e fact
th a t ban k in g in th e U nited States is in
re a lity a sm all business, as th e m em ­
b ership of th e A m erican B ankers As­

sociation show s th a t a v ery large p e r­
centage of th e total nu m b er of banks
are sm all business m en and operating
banks h aving a m illion in deposits or
less. H e fu rth e r b ro u g h t out th e fact
th a t in these sm all banks, th e w ork of
officers and em ployes w as n ot special­
ized b u t th a t all em ployes sh ared in all
of th e various phases of th e daily ro u ­
tine carried out in these in stitu tio n s.
“Follow ing Mr. W iggins’ statem ent,
these b an k ers w ho had been called in
by th e A m erican B ankers A ssociation
w ere each called upon to p resen t to
Mr. Stein and his associates, as clearly
as possible, th e p icture of th e person­
nel operations of th e ir banks and p a r­
ticu larly as th is operation is related to
th e problem of com plying w ith th e
provisions of th e W age and H our Law.
“T estim ony from each b an k er clear­
ly show ed th a t th e proposed re-defini­
tions of executive, adm in istrativ e and
professional em ployes, w ould exclude
from th e provisions of th e act m any
em ployes of banks w ho now are re ­
quired to com ply w ith the term s of th e
act and w ould th u s be of v ery definite
benefit to all banks. The testim ony of
H. Lee H uston, of Colum bus Junction,
Iowa, w as p a rticu larly in terestin g be­
cause he rep resen ted th e sm allest
sized banks and his testim ony show ed
th a t in such banks it is difficult to
determ ine w here th e cash ier’s w ork
stops and th e bookkeeper’s w ork be­
gins. In o th er w ords, in th e sm all
sized bank, w hich banks rep resen t by
far th e largest percentage of th e banks
in our country, it is practically im pos­
sible to departm entize th e banking
ro u tin e b u t all em ployes do all of the
kinds of w ork to be done in such in ­
stitutions. T he testim o n y w hich I
p resen ted b ro u g h t out th e fact th a t in
our in stitu tio n th e re are on th e av e r­
age about ten days in each m o n th th a t
m ay be called peak load days and it is
not practical to handle th e volum e of
w ork req u ired on those days w ith o u t
exceeding considerably th e p resen t
lim it of 42 h o urs w hich an em ploye

12
m ay w o rk w ith o u t being in th e over­
tim e classification. T his sam e condi­
tion exists in m any, m any b an k s w ho
do reg u larly have peak load days for
every p erson in every m o n th of th e
year.
“M illard Jones, of Rocky M ount,
N o rth Carolina, stated th e tobacco in ­
d u stry m ade it n ecessary for th em to
keep th e ir b an k open u n til 5, 6 and 7
o’clock on th e dates of tobacco sales
in ord er th a t th e farm ers m ig h t collect
th e ir checks on th e date of th e sale.
He stated th a t d u rin g th e period of th e
year w h en th ese tobacco sales are
held, it w as n ecessary for th e ir tellers
to p u t in a considerable am o u n t of
overtim e and m an y o th er b an k s in th e
tobacco section have th e sam e p ro b ­
lem.
“In general th e testim o n y of all th e
ban k ers tended to show:
“F irst. T h a t th e em ployes of b anks

feel th a t th ey w ere being discrim i­
n ated ag ain st by being req u ired to ad ­
h ere to a plan w hich, if continued,
w ould p u t th em on h o u rly pay basis.
“Second. In attem p tin g to com ply
w ith th e law, th e banks in general
have had to cu rtail th e ir service to th e
public by sh o rte r hours, less personal
a tte n tio n to custom ers, etc.
T hird. The plan in effect gives the
em ployes less o p p o rtu n ity to prep are
him self or h erself for advancem ent by
v o lu n tarily devoting additional tim e to
educating him self in th e various
phases of b an k w ork.
“F o u rth . T h at banks, and p a rtic u ­
larly sm aller banks, are prim arily
service in stitu tio n s and th a t an y p a r­
ticip ation w hich these ban k s have in
in ter-state business is p u rely inciden­
tal in connection w ith th e service
w hich th ey render.
“It will, no doubt, be m any w eeks

Don’t Wotty About
the Drop In Government Bonds
By Professor J . Franklin Ebersole
In H a r v a r d Business School Alumni Bulletin

1. E ith e r you are a b anker, or you
are not a banker; if you are n o t a b a n k ­
er, you have n o th in g to w o rry about.
2. If you are a b an k er, e ith e r you
have som e bonds or you have no bonds;
if you have no bonds, you have n o th ­
ing to w o rry about.
3. If you do hav e some bonds, eith er
you have m an y bonds or you do not
have m an y bonds; if you do not have
m an y bonds, you have n o th in g to
w o rry about.
4. If you do have m an y bonds, e ith e r
th e y are of v ery sh o rt term s, or th ey
are n o t of v ery sh o rt term s; if th e y are
of v ery sh o rt term s, you have noth in g
to w o rry about.
5. If you do have bonds th a t are not
of v e ry sh o rt term s, •e ith e r th e y w ill
fall in price, or th e y w ill n o t fall in
price; if th e y do n o t fall in price, you
w ill have n o th in g to w o rry about.
6. If y o u r bonds do fall in price,
eith e r th e y w ill fall soon or th e y w ill
not fall soon; if th e y do n o t fall soon,
you w ill have n o th in g to w o rry about.
7. If y o u r bonds do fall soon, e ith e r
th e y w ill fall v ery rapidly, or th e y w ill
n o t fall v e ry rapidly; if th e y do n o t
fall v e ry rapidly, you w ill hav e n o th ­
ing to w o rry about.

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

8. If y o u r bonds do fall v ery rapidly,
e ith e r you w ill have sold th em before­
hand, or you w ill n ot have sold them
beforehand; if you do sell th em before­
hand, you w ill have n o thing to w o rry
about.
9. If you do n o t sell y o u r bonds be­
forehand, eith er you w ill have a need
for cash, or you w ill n ot have a need
for cash; if you do not have a need for
cash, you w ill have n o thing im m ediate
to w o rry about.
10. If you do have a need for cash,
e ith e r you w ill borrow on yo u r bonds
a t p a r from th e F ed eral Reserve, or
you w ill not borrow on y o u r bonds a t
p a r from th e F ed eral Reserve; if you
do borrow on y o u r bonds a t p ar from
th e F ed eral Reserve, you w ill have
n o th in g im m ediate to w o rry about.
11. If you do n ot b orrow on y o u r
bonds a t p ar from th e F ed eral Reserve,
and if you do have a need for cash,
and if you do n ot sell beforehand, and
if th e prices do fall, and if th e prices
do fall soon, and if th e prices do fall
rapidly, and if you do have not v ery
sh o rt term s, and if you do have m any
bonds, and if you are a banker, you
w ill have so m uch com pany in y o u r
p lig h t th a t you w ill have no th in g to
w o rry about.

before th e ad m in istrato r of th e W age
and H our D ivision w ill have an oppor­
tu n ity to review th e inform ation
b ro u g h t out a t th is h earin g by te sti­
m ony an d questioning b u t it is to be
hoped th a t th e final re su lt w ill be
favorable.”

H. Lee Huston Says:
“As secretary of G roup 11 of th e
Iow a B ankers A ssociation, th e w rite r
has had th e pleasure of w orking w ith
th e ad m in istrativ e officers and the
o th er Iow a b an k ers selected by our
president, C. R. Gossett, to serve as
a b an k W age an d H our com m ittee.
W hen th e tim e cam e for th e b ank
W age and H o u r h earin g th a t w as held
in W ashington, D. C., on Tuesday, Ju ly
9, 1940, it w as w ith pleasure th a t th e
w rite r accepted th e ap p o in tm en t by
Mr. Gossett, p resid en t of our associa­
tion, to re p re se n t our S tate Associa­
tion and to cooperate w ith th e A m eri­
can B ankers A ssociation, w ho had a r­
ranged th e details for th e W ashington
hearing. I t so happens th a t I am cash­
ier of a b an k (Colum bus Ju n ctio n
State Bank, Colum bus Ju nction, Iowa)
in a tow n of 1,000 people. T herefore,
I w as m ore or less chosen to re p re se n t
th e sm aller ru ra l ban k s of our state
located in tow ns of 1,000 pepole or less.
“T his group w as headed by A. L. M.
W iggins, ch airm an of th e Com m ittee
on F ed eral L egislation for the A m eri­
can B ankers A ssociation, and presi­
den t of th e B ank of H artsville, H artsville, South Carolina, an d it w as he
w ho so w ell presen ted th e pictu re for
th e banks and tru s t com panies. He
pointed out th a t as a w hole b an k em ­
ployes w ere receiving a w age in ex­
cess of m inim um as set up by th e law.
He explained th e effects of the law u p ­
on th e services ren d ered to th e public
as w ell as th e effect upon th e em ployes
them selves in th e possible cu rtailm en t
of advancem ent in position and in
some instances th e actual lessening of
th e w ages received by th e individual.
H e show ed how banks w ere subject to
seasonal expansion and contraction, as
w ell as daily and w eekly.
“Mr. W iggins left no stone u n tu rn ed ,
no fact untouched in v ery pleasantly
and clearly giving a w ord pictu re of
th e w ork of a bank. He, likew ise, ju st
as clearly outlined an approach to th e
solution of th e problem s, by redefining
th e m eaning of th e term s ‘executive,’
‘a d m in istrativ e’ and ‘professional’ em ­
ploye and sep aratin g each class of em ­
ployes in stead of grouping th em as
th ey now are.
“In fact, Mr. W iggins gave a com­
plete and satisfactory p resen tatio n of
th e problem s and th e ir possible solu­
tion.
(T u rn to page 26, please)

13

W hat I Learned

About Rutgers

A t the Request of the Northwestern Banker, Mr. Reed Gives His
Impressions of the Graduate School and W hat He Heard and
Saw on a Recent Visit There

By Preston E. Reed

U'THESE stu den ts, all on the
I sam e plane, as there is no
d istin ction betw een Freshm en
and Seniors, from all sections of
the country, from various types
of hanking in stitu tion s of d i f ­
feren t sizes, learn that there is
one com m on denom inator and
that is, £we are all Am ericans.
A t least 698 m en now know that
there is a real respon sibility
placed on them as leaders in
th eir r e s p e c t i v e com m unities
fo r the teaching of w hat m ust
be done to m aintain our dearly
bought rights of being a free
people. These m en know that
to retain even their bread and
bu tter jobs as bankers, right
th in king on the pa rt of their
custom ers is m ost im portant.
M ost of these students, if not
all, ivill do th eir pa rt in bring­
ing back to th eir com m unities
a desire to th in k things through
to factual and tru th fu l conclu­
sions.”

ID N A PPE D last sum m er by a
frie n d w hile in N ew York, I w as
h u stled dow n to th e fe rry and
soon found m yself on a tra in heading
for N ew B ru n sw ick w h ere is located a
four-year-old in stitu tio n w hich h as th e
w hole-hearted an d e n th u siastic su p ­
p o rt and ap p ro b atio n of th e ban k in g
fra te rn ity . I t is an in stitu tio n w hich
w as carefully conceived, duly launched
an d is now o peratin g a t as n early 100
p e r cent efficiency and capacity as h u ­
m an ly possible.
As th e tra in pulled into th e N ew

K


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

Executive Vice President
Financial A dv e rtise rs Association
Chic ago

P R E S T O N E. R E E D

B runsw ick statio n I w as h u stled
th ro u g h th e depot, dow n th e steps,
w here a line of hungry-for-fares ta x i­
cab d riv ers w ere w aiting for th e ir
prey. W e took one and soon arriv ed
a t th e A d m inistration B uilding of th e
G raduate School of B anking a t th e fa­
m ous H am ilton S treet address. Al­
ready one felt th e classical atm osphere
of old Q ueen’s College established in
1776—th e original cam pus being ju st
across th e street. H ere we w ere u sh ­
ered into th e office of th e founder of
th is in stitu tio n for ad u lt education for
b ank officers, Dr. H arold Stonier. Al­
th ough his task s are great, he alw ays
seem s to have tim e to see his friends.
W e w ere invited to have luncheon w ith
him th a t noon in th e gym nasium . Ju st
w h at th a t m eant I d idn’t know a t the
tim e. As it w as alm ost noon and we
w an ted to see th e cam pus, w e started
alm ost on th e ru n from place to place.
T here w as little activ ity on th e cam pus

—we saw v ery few people. A t 12:30
we a rriv ed a t th e gym and it seem ed
th a t alm ost in no tim e from every di­
rection cam e literally hu n d red s of
bankers. E veryone w as ready for
lunch.
As we en tered th e gym on th e floor
of th a t g reat building th ere w ere ob­
long tables each seating 10 m en, and
across th e long end of th e room w as a
high p latform w ith a head table for
30. W h at a sight! W h at organization!
W h at food and w h a t service! I t w as a
good m eal, fa r sup erio r to m y expecta­
tions; for to serve a group th a t size is
a real job in itself. A nd th e luncheon
proceeded like clockw ork. T here w as
never a hitch, n ever a pause, n ever a
w eak m om ent. It w as tim ed as care­
fully as though it w ere on a radio
schedule.
Did you ever h ear a group of b an k ­
ers sing? T hey do a t R utgers. Did
you ever h e a r a group of ban k ers
laugh? T hey do at, R utgers. Did you
ever see a group of b an k ers lean for­
w ard in th e ir chairs so as not to m iss
a single w ord from a speaker? T hey
do a t R utgers.
I t seem ed th a t in no tim e th e lunch­
eon w as over, b u t it w as 2:15. As
quickly as th e g reat gym w as filled so
w as it em ptied. T he b an k ers flocked
out and congregated in fro n t of th e
building or hastened to o th er buildings
for classes.
Now, I am not a b an k er and trad e
association w ork is m y profession. I
w an ted to see th e w heels go round.
To th e basem ent of th e gym we w en t
to see th e k itch en w here th e food is
p rep ared —m odern and efficient. T hen
a few b rief calls at several buildings
w here we looked in on classes—seri­
ous, in ten t, and hardw orking. W e did
catch th e tra in back to New York, b u t
I couldn’t get aw ay from R utgers.
T here w as som ething about it th a t had
caught hold. The faster th e tra in
w en t and th e quicker th e tem po of
th e w heels on th e tracks, th e faster we
talk ed about G. S. B. No, he (m y k id­
napper) w as not try in g to sell me. I
had sold m yself—better, it h ad sold it­
self. T here w as a sp irit th a t w as felt.
It w asn ’t th e en thusiasm of crow d
(T u rn to page 28, please)

14

N

ew s
OF

THE

a n d

V

B A N K IN G

ie w s

W O RLD

By Clifford De Puy
John F. F laaeke, a ssista n t secretary
of th e Chem ical B ank and T ru s t Com­
pany, sta rte d w orking for th a t in sti­
tu tio n w h en he w as 16 y ears of age,
and he is now 85. He has been w ith
the b an k for 69 y ears and is now
sta rtin g on his 70th y e a r of continuous
service w ith th e in stitu tio n .
As fa r as w e know th a t is th e all
tim e record in th e U nited States for
an y bank executive w ith th e sam e in ­
stitution.
M erle Thorpe, editor of The N a tio n ’s

Business, speaking before th e N orth
C arolina’s b a n k ers conference, pointed
o ut th a t, “I t seem s th e iro n y of fate
th a t in th e ho u rs of physical fear we
have decided to replace th e w ar lead­
ers of 1933 an d 1940 w ith th e dis­
credited captains of in d u stry . N ot in
a decade has th e re been such enco u r­
agem ent for th e co u n try ’s future.
A nd th is en couragem ent has come
from th e people th em selves.”
M axw ell S. S tew art, in his “P ensions
A fter S ix ty ” booklet p ublished by th e
Public A ffairs C om m ittee of New York
City, says: “T here seem s little re a ­
son for singling out th e old group for
special tre a tm e n t w hen th e re are
o ther groups of th e population w hose
need is every b it as g re a t.”
Mr. S tu a rt says th a t th e T ow nsend
plan w ould cost th e co u n try 29 bil­
lion dollars or close to half th e n a ­
tional incom e, and fu rth e rm o re no
justification is found for th e conten­
tion th a t the p ay m en t of huge p en ­
sions w ould really increase th e n a ­
tio n ’s prosperity.

The candidacies fo r th e office of
second vice p resid en t of th e A m erican
B ankers A ssociation seem s to be g ain ­
ing speed and m om entum as W. L.
H em in gw ay, p resid en t of th e M ercan­
tile-Com m erce B ank and T ru st Com­
pany of St. Louis and R u ssell G.
Sm ith, executive vice p resid en t of th e
B ank of A m erica N ational T ru st and
Savings A ssociation of San F rancisco
get into th e hom e stre tc h before the
A. B. A. convention, w hich m eets at
A tlantic City Septem ber 22nd to 26th.
W ith Mr. H em ingw ay rep resen tin g
th e independent banks of th e asso­
ciation and Mr. Sm ith rep resen tin g
branch banking, it looks like a real
contest.

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

B ranch banking will, of course, be
th e issue and it is understood th a t
A. P. G iannini has told Mr. Sm ith to
“stay in and fight” u n til th e last gong
is sounded, and if necessary to take
th e fight to th e floor of th e convention.
If Mr. Sm ith follows th e advice of
his boss th ere is no question b u t th a t
he w ill be defeated because inde­
p en d en t ban k ers of A m erica are op­
posed to b ran ch banking and believe
th a t it w ould be especially unw ise to
b rin g a G iannini m an in line for the
A. B. A. presidency a t th is tim e.
Mr. H em ingw ay and Mr. Sm ith are
both estim able gentlem en personally,
b u t th ey rep resen t tw o d istin ct groups
of b an k ers in th e A. B. A. and for th a t
reaso n it looks like a “fight to the
finish” w ith th e odds v ery definitely
favoring Mr. H em ingw ay.
I t m u st be rem em bered th a t th e
A m erican B ankers A ssociation w ent
on record a t th e convention in Boston
in 1937 as being “definitely opposed
to an y proposal or device looking to
th e estab lish m en t of b ranch banking
privileges across state lines, directly
or in d irectly ”.
B ranch b an king w ith in states is left
en tirely to th e law s of each p articu lar
state, b u t Mr. G iannini an d his asso­
ciates not only favor state-w ide b ranch
b an k in g b u t nation-w ide b ran ch b an k ­
ing, w hich is in direct violation to the
resolu tion referred to above and w hich
as passed at th e Boston conference
reads as follows
“P u rsu a n t to th e action of th e ex­
ecutive com m ittee of th e S tate B ank
Division, w hich has been tra n sm itte d
to us by th e p resid en t of th a t division,
H. M. C ham berlain, w ith a req u est for
clarification of th e position of the
A m erican B ankers A ssociation upon
questions involved in dual and b ran ch
banking, th e resolutions com m ittee, in
response to th e req u est of th e S tate
B ank Division, desires to subm it th e
follow ing resolution for adoption by
th is convention, so th a t all divisions,
sections, com m ittees, and com m issions
of th e A ssociation shall be guided ac­
cordingly:
“W e favor the preserv atio n and con­
tin u a tio n of the dual banking system
by w hich banks are free to operate
u n d e r eith er state or n ational charter.
W e also believe th a t th e system of u n it

banks has been peculiarly adapted to
the highly diversified com m unity life
of the U nited States. H ow ever, m any
of th e states now authorize by law
the operation of b ran ch banks. We
believe th a t national banks should, as
th ey do now, continue to enjoy an
equality w ith state banks of b ran ch
b an king privileges w ith in those states.
The A ssociation su p p o rts in every re ­
spect th e autonom y of th e law s of th e
separate states w ith respect to b a n k ­
ing. W e re ite ra te our belief th a t no
class of banks in any state should en ­
joy a g re a te r rig h t in respect to the
estab lish m en t of branches th a n banks
c h artered u n d er state laws. We are
definitely opposed to any proposal or
device looking to the establishm ent
of b ran ch b an king privileges across
state lines, directly or indirectly.”
Ben S. Summer-will, p resid en t of
th e Iow a State B ank & T ru st Com­
p any of Iow a City, has been dis­
charged as exam iner in charge of th e
receivership of th e Johnson County
Savings B ank from all liability grow ­
ing out of th e receivership and the
indebtedness of Orval and M attie
Sim m ons of Iow a City, upon th e pay­
m en t by Mr. Sum m erw ill of $600.
The o rder settlin g and closing the
case of D. W . B ates, State S uperin­
ten d in g of B anking, ag ain st th e Jo h n ­
son C ounty Savings B ank w as filed
in th e D istrict C ourt of Iow a City
recently.
The N ational City B ank of N ew
York, in th e ir recen t bulletin, ex­

presses th e opinion th a t people w ho
are view ing th e prospects w ith alm ost
hy sterical alarm fail to rem em ber th a t
th e problem of m ain tain in g a stan d ard
of living ag ain st foreign com petition
has not risen over n ig h t b u t is as old
as th e in d u strial revolution. T he real
danger, th is bulletin points out, to this
co untry is th e failure to get th e do­
m estic situ atio n in order; to resum e
capital investm ent, by w hich th e p ro ­
d u ctivity of labor is inreased, costs
reduced and goods im proved; and to
u n d erstan d th a t th e A m erican sta n d ­
a rd of living has n o t been created and
cannot be g u aran teed by legislative en­
actm ent b u t is based upon th e coop­
eratio n of research and engineering,
m anagem ent, capital and labor, to pro­
duce m ore goods a t low er u n it costs.
E m m et F. C onnely, p resid en t of th e
In v estm en t B ankers A ssociation of
Am erica, in discussing th e w illingness
of capital to do its p a rt in th e p resen t
crisis, has th is to say.
“It is w ell know n th a t th e capital
is available in am ounts beyond any
(T u rn to page 58, please)

15

M ore Than 81%

OppOSBd to Branch Banking
A Recent Survey Made by the American Banker Shows Opposition to
Branch Banking, and Good Future for Independent Banking

N A re c e n t su rv ey m ade by th e A m er­
ican B an k er on th e question of
b ran ch banking, q u estio n n aires w ere
se n t to 10,000 b an k p resid en ts and re ­
plies from 1,300 b an k p resid en ts show
th a t th e y opposed b ra n c h banking,
w hile less th a n 300 declared th a t th ey
w ere unopposed.
R e tu rn s from th is su rv ey are as fol­
lows:
Question: Do you b eliev e in branch
banking?
No: 81.4%
Yes: 16.7%
D on ’t know : 1.9%

Faith in Independent
Banking Runs High
“The percen tag e r e tu rn on fa ith in
th e u n it b an k w as even heavier.
“M ore th a n 1,400 b a n k p resid en ts
declared full fa ith in th e fu tu re of in ­
d ep en d en t banking. Less th a n 150 ex­
p ressed doubt or lack of conviction.
“The detailed response w ould in d i­
cate th a t th e ratio of A m erican b ank
p re sid e n ts’ view s on th is question are
a s follows:
Question: Do you b elieve th a t there
is a future for in depend en t b ank ing in
the U n ited States?
Yes: 91.3%
No: 6.3%
D on’t know : 2.4%

“No a tte m p t w as m ade in sending
o u t th e q u estio n n aires to th e b an k ers
of th e co u n try to elim inate m en w ho
m ig h t be in favor of b ran ch banking,
an d b an k s in large cities as w ell as
sm all cities w ere canvassed. Of course,
no q u estio n n aires w ere sen t to b ra n c h ­
es of banks, alth o u g h in q u iry w as di­
rected to heads of b ra n c h system s. It
is possible th a t b an k ers from sm all
cen ters took occasion to an sw er th e
q u estio n n aire and th a t b an k officials
in larg er cities m ig h t have w aste-bas­
k eted th e ir replies, b u t a su rv ey of th e
an sw ers received from th e larg er cities
of th e c o u n try does not indicate th a t
th is is th e case, and sen tim en t for in ­
dep en d en t b an k in g seem s as stro n g in


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Federal Reserve Bank of St. Louis

larg er cities as in the sm aller com­
m u n ities.”

Branch Banking Popular
In Few States
“Replies from individual states w ere
g enerally heavily against b ran ch b an k ­
ing. In only a few states did th e p e r­
centage ru n m ore th a n 20 p er cent in
favor of b ran ch banking. New York
s ta te ’s ban k p resid en ts’ replies w ere 50
p er cent for and 50 per cent against
b ran ch banking. M ontana replies w ere
48 per cent for b ran ch and 52 per cent
against. California replies w ere 25 per
cent in favor of b ran ch banking; Ala­
bam a show ed 30 p er cent for b ran ch
banking; In d ian a w as about 35 per
cent for b ran ch banking; M ississippi
about 28 p er cent; N o rth D akota about
27 p er cent; Ohio about 53 per cent;
Oregon about 44 per cent; South Da­
kota about 27 per cent; V irginia about
27 p er cent; W ashington about 27 per
cent; W isconsin 18 p er cent. Maine
was seven to one in favor of b ranch
banking, or about 86 p er cent for it,
and V erm ont 66 p er cent for b ran ch
banking. These w ere th e h ighest p e r­
centages favoring b ran ch banking. In
th e rem ain d er of th e states th e replies
favoring b ran ch b anking w ere m in o ri­
ties of less th a n 15 p er cent, and in a
few states th e re w ere no replies in
favor of b ran ch b an king at all.”

Faith in Future of
Independent Banking General
“On th e score of faith in th e fu tu re
of independent banking, a curious p he­
nom enon developed.
“E ven in states w here th ere w as a
su b stan tial percentage favoring b ran ch
banking, th ere w as offsetting sen ti­
m en t to th e effect th a t th e re w as still a
fu tu re for inedependent banking.
“In New Y ork state, w here th e vote
w as 50 p er cent for and 50 per cent
against b ran ch banking, th e p ercen t­
age w ho felt th a t th e re w as no fu tu re
for independent ban k in g w as v ery

small, w ith only 16 p er cent tak in g th e
position th a t th ey could see no fu tu re
for the u n it bank, w hile 84 per cent
said th a t th ey felt th ere w as a fu tu re
for independent banking.
“In California every single vote cast
w as th a t th ere w as a fu tu re for th e
u n it bank. California is th e m ost
branch-banked state in the union, y et
even those w ho said th a t th ey believed
in b ran ch banking voted unanim ously
th a t th ey felt th a t th ere w as a fu tu re
for independent banking. T his w as
also tru e in Maine, w here th ere are
m any b ran ch banks, an d w here th ere
w as a heavy percentage of belief in
b ran ch banking. M aine also gave a
vote of 100 p er cent to th e effect th a t
u n it b an king has a future. B ranch
b ank proponents evidently do not con­
sider th a t th e ir ideas w ill h u rt u n it
banking.
“Curiously, on th e o th er side, the
largest (though still sm all) m inorities
w hich seem ed to be discouraged about
u n it banking included tw o non-branch
b an k states, Illinois and Texas.
“In Illinois, w here b ran ch banking
is prohibited and w here th e b an k p res­
id en ts’ replies w ere 86 per cent against
b ran ch banking, th ere w as a m inority
of 19 per cent w hich adm itted th a t
th ey felt th a t th ere w as doubt as to
th e fu tu re for independent banking,
although 81 per cent still held to faith
in th e u n it bank.
“In Texas, w here th ere are no
b ran ch system s, and w here th e replies
w ere nine to one ag ainst b ran ch b an k ­
ing, th e m ajo rity still believe in th e
fu tu re of th e u n it bank, b u t 15 p er
cent shook th e ir heads in doubt.
“Georgia, K entucky, M aryland, Mis­
sissippi and South Carolina w ere m ore
th a n 80 p er cent assu red as to th e
fu tu re of th e u n it bank, b u t otherw ise
had m ajorities ran ging above 10 per
cent w ho w ere w ondering w h eth er the
u n it b an k had a chance. The re st of
th e sta te s’ replies w ere v irtu a lly solid­
ly to th e effect th a t th ere is a fu tu re
for th e independent b an k .”

Is a Prom issory N ote M ad e to
Self

L.6g(tl W ithout Endorsement?

A M innesota b a n k e r em ployed J o r­
dan to m anage a g rain elevator ow ned
by him in th a t state. Jordan, in breach
of his d u ty of loyalty to his em ployer,
sold, in his ow n nam e, some of th e
g rain com ing to th e elevator and m ade
a secret profit thereon. To m ake the
sale, it w as necessary to pay for tru c k ­
ing th e g rain to c ertain destinations.
The b an k er learned of th ese tra n sa c ­
tions and req u ired Jo rd a n to m ake
good in th e m atter. W as th e b an k er
entitled to Jo rd a n ’s gross profits or net
profits?
Under the M innesota law the v ie w is
taken that a principal or other em ­
p loyer is en titled to the gross profits
derived from adA^erse or independent
tran saction s by an agen t or an em ­
ploye in breach of h is duty of loyalty
to h is em ployer. T his m eans that u n ­
der th e facts outlined Jordan w as
obliged to account to the banker for
his gross profits w ith o u t d ed uctin g the
tru ck ing costs in volved in m aking
those profits.

Sm ith died in T ennessee, leaving to
Brow n his en tire estate, as w ell as ap ­
pointing him executor thereof. Sm ith,
p rior to his death, gave Jack so n cer­
tain property. B row n sued as execu­
to r to recover it b u t w as unsuccessful.
Could th e p ro p e rty going to Jackson
be subjected to th e p ay m en t of th e
expenses in cu rred by th e executor in
prosecuting th e claim by him th a t the
p ro p e rty w as assets of S m ith ’s estate?
No. In the feAv cases in w hich the
question has arisen, th e courts have
adopted the rule that the personal represen tative of a decedent is not en ­
titled to allow an ces out of the property
in v o lved for exp en ses incurred in an
u n su ccessfu l effort to claim such prop­
erty for the estate (e\ren thou gh it is
the duty of su ch personal represen ta­
tiv e to protect th e in terests of the es­
ta te), sin ce h is charges for exp en ses
incurred as personal represen tative
can be allow ed on ly from assets be­
lon g in g to such estate.

Quite often in th e ru sh of b rin g in g a
legislative session to a close, w ords


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Federal Reserve Bank of St. Louis

These and Other Timely Legal
Questions Are Answered

By the
LEGAL DEPARTMENT

w ill be om itted from legislative bills
w hich become law. W hen such om is­
sions occur, m ay th e courts supply
them in in te rp re tin g th e laws?
The gen eral rule is that w h ere w ords
ha\Te been om itted from a statu te or
ordinance by in adverten ce or clerical
error and the in ten t of th e legislatu re
is ascertainable from the con text, the
courts w ill in sert the AAords n ecessary
to carry out that in tent. T h ey w ill not
perm it an act to be declared in valid for
u ncertain ty w h ere reason dem ands the
in sertion of w ords therein.

W alk er m ade out a negotiable prom ­
issory note payable to him self and
h anded it to M cMillan w ith o u t indors­
ing it. Can McMillan recover thereon?
No, as a gen eral rule. It has fre­
quently, though not u n iv ersa lly , been
held in effect th at an in stru m en t in
form of a p rom issory note payable to
the m aker but not indorsed by such
m aker, is a n u llity or is in \a lid , in ­
com plete and n ot enforceable as a con ­
tract. There are three holdings in ac­
cordance w ith th is gen eral rule in
Iowa, N orth D akota and South D ako­
ta, as w ell as in other states.

A nderson, a law yer, w as consulted
by Phelps, a banker, reg ard in g certain
defects in th e title to a piece of p ro p ­
e rty ow ned by Phelps. As th e result,
A nderson obtained certain confiden­
tia l info rm ation th a t w ould not o th er­
w ise have been available to him.
T h e re a fter Blackwell, w ho claim ed
an o u tstanding in te re st in th e p ro p ­
e rty ag ain st Phelps, sought to em ­
ploy A nderson to rep re se n t him in
prosecu ting his claim for th e interest.
Could A nderson so act?

No. A n attorney w ho has b een made
the recipient of th e confidences of a
clien t con cern in g m atters properly
p rivileged w ith in th e relation ship of
attorney and clien t is thereafter d is­
qualified from actin g for an y other
party adA ersely in terested in the sam e
gen eral m atter. D ecision s to th is effect
are to be found in N ebraska, W iscon­
sin and num erous other states.

Dingee, a banker, ow ned an a p a rt­
m en t building. She leased one of th e
a p artm en ts to F erg u so n for one year.
A fter F erguson had been in possession
for approxim ately tw o m onths, she
vacated th e prem ises w ith o u t cause
and refused to continue to occupy
them and pay re n t for them for th e re ­
m ainder of th e te rm of h e r lease.
Dingee sued. In th e su it F erguson
contended th a t it w as D ingee’s obliga­
tion to obtain a new te n a n t for th e u n ­
expired term of the lease in order to
m itigate h e r dam ages. Should such
contention be sustained?

>

v

a

>

T h e m ajority vieAv is th a t a landlord
is u n d e r n o obligation to se e k a iic a v
te n a n t w h en h is te n a n t abandons th e
p r em ises; n o r n e e d h e a c c e p t a neAv
le s s e e if o n e is offered . A ccording to
th is ru le , a landlord m ay alloAV th e
p r e m ise s to lie id le and r e c o v e r th e
r e n ta l a g reed on w ith o u t ta k in g a n y
ste p s to le s s e n th e d a m a g es.

M urch w as in ju red in an accident
th a t happened in circum stances w h ere­
by a ban k and an em ploye of th e
ban k w ere liable to him for his dam ­
ages. T h ereafter M urch accepted a
sm all settlem en t from th e b a n k ’s em ­
ploye an d released him from liability.
Did such release operate also to re ­
lease th e bank?
Yes. A s a gen eral rule, Avhere both
a m aster and his servan t are liable to
a third party for a w ron g of the serv ­
ant, a A7alid release of eith er the m aster
or th e servan t from lia b ility for the
Avrong operates to release the other. It
foIIoAvs that the release of the em ploye
in this case also operated to release
the bank. D ecision s to this effect m ay
be found in M innesota, Illin o is, M ichi­
gan and other states.

(T u rn to page 25, please)

A

17

How Redecorating
Improved a Bank
O THROUGH an y city, to w n or
By Lee Potter
h am let in th e c o u n try and you
President
can pick out th e b u siness houses
Forman, Ford Company
th a t are m aking th e ir m ark and con­
Minneapolis
sidered successful. One place w ill be
dark, dingy and in need of a general
cleaning up. T h ey w ill also need cus­
tom ers and a b an k balance. Maybe
“If m ore men in banking in stitu ­
th e place n e x t door w ill be brig h t,
tions w ou ld get out of th eir of­
fresh ap p earin g and tastefu lly deco­
fices and m aintain a closer con­
rated. T h a t place w ill n o t have to
tact w ith th e accounts th ey are
spend an y g rea t am o u n t of m oney for
doing business w ith , then errors
oil to keep th e ir fro n t door from
g ettin g ru sty .
such as the ones I m ade w ould be
The proof of m y co ntentions cannot
m ore rare or elim in ated en tirely.
be b e tte r em phasized th a n by re la t­
I wish it w ere possible to get this
ing th e sta te m e n ts m ade to m e re c e n t­
message to oth er bankers for
ly by a b u siness frien d of m ine. He
th eir errors m ay not end as m u­
is vice p resid en t of a ra th e r successful
b an k in a n earb y sm all tow n. Be­
tu a lly pleasant as m ine did."
cause he rev ised his view s and rem e­
died a fa u lt in him self at th e sam e
tim e th ro u g h a discovery it is m y
im pression th a t it m ay b rin g a m es­ to m y a tten tio n again. P ay m en t on
sage hom e to you. I w ould like to th e larger note w as pro m p t b u t no
re la te his statem en ts th a t w en t som e­ record of even an in te re st p aym ent on
th e sm aller tran sactio n w as noted.
th in g like this.
I t w asn ’t u n til a sh o rt tim e ago th a t Now, I don’t believe th a t I am any
I found out w h ere a t least a p a rt of lazier th a n th e average m an b u t I
th e tro u b le w ith b an k in g lies. As it am afraid th a t guilt for n o t m aking
an im m ediate in v estigation falls on
is in m y d e p a rtm e n t n a tu ra lly I have
referen ce to th e loan end of th e b u si­ m y shoulders.
S hortly after th is I w as called aw ay
ness. A n u n u su a l occurrence, or ra th e r
on business and d idn’t re tu rn for
a sequence of occurrences, b ro u g h t th e
about tw o m onths w ith th e re su lt
facts of th e case hom e to me.
A long about th re e m o n th s ago in th a t by th e tim e th e n ex t loan r e ­
th e course of an average d ay I w as p o rt reached m e th e tw o accounts
th a t I have m entioned w ere w ell
called upon to pass ju d g m en t on th e
c re d it of tw o m en w ho have been along. In v estig atio n show ed th a t th e
cu sto m ers of th e b an k for a n u m b er larg er loan had been paid in full ta k ­
of years. B oth w ere in th e sam e ing advantage of a w ell earned dis­
business. One n ote w as for a sizeable count. But, th e o th er account w as
am o u n t w hile th e o th er w as con­ w ell in a rre a rs w ith only a feeble ef­
sid erab ly sm aller.
W ith o u t boring fort to p rev en t excessive delinquency
you w ith long d raw n out details, I h aving been made. B eing fairly h o n ­
passed on b o th am ounts, b u t as m any est reg ard in g m yself I decided th a t
b an k ers know , th e re k e p t follow ing I had been a victim of neglect, le th ­
m e as so rt of a specter th e feeling argy or plain laziness long enough,
th a t m y ju d g m en t h ad e rre d and pe­ and decided to investigate.
On m y w ay to see th e d elinquent
cu liarly it w as th e note of sm aller
deno m in atio n th a t p e rtu rb e d me. But, client I stopped at th e dru g store of
th e o th er m an to express th e b a n k ’s
well, th e loan w as m ade and th e re
w as no recourse open to me. Again, and m y personal appreciation of th e
as b a n k ers know , I could b u t aw ait w ay his account had been handled.
A new store fro n t su rp rised me and
developm ents.
A ccording to th e w ishes of b o th in ­ com plete red eco ratin g com pleted m y
dividuals re p a y m e n t w as to be m ade am azem ent. T he spic and span ap ­
in m o n th ly in stallm en ts so it w as pearance told th e sto ry of w h y th is
th ir ty days before th e m a tte r cam e p articu lar store w as a success and

LQCUÏ

G


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Federal Reserve Bank of St. Louis

LEE PO TTER

w h y th e loan had been prom ptly ta k ­
en care of. R estful decorations th a t
fairly ballyhooed cleanliness and a
color com bination th a t seem ed to
buoy up th e spirits, told m ore effec­
tively, concisely and th o ro u g h ly th e
sto ry of achievem ent. A fter talk in g
w ith th e ow ner a sh o rt tim e I con­
g ratu lated him on tak in g care of th e
note and doubled m y lauditory sta te ­
m ents in telling him of th e fine ap­
pearance of his store.
His reply
tau g h t me som ething th a t I am h ap ­
py to have learned. He said, “I bor­
row ed th e m oney to do th is because
I figure th a t any tim e I im prove th e
looks of m y place of business or p u r­
chase eq uipm ent to b e tte r serve peo­
ple, I am stepping one ru n g h ig h er
on th e ladder of success. I ’m com ­
ing to you again soon for m oney to
get a m odern re frig e rato r and ice
cream display case.
I t w ill cost
m oney b u t it’s w o rth it.” I agree
w ith him thoroughly.
W hen I left th e store I w as in a not
too p leasant fram e of m ind. The
th o u g h ts reg ard in g th e o th er loan w ere
rugged. I reasoned th a t if one m an in
th e sam e business can take care of his
obligations so can an o th er m an and I
in ten d to see w h y he h ad n ’t.
Upon tu rn in g th e corner I h ad my
answ er at once. The outside of th e sec(T u rn to page 30, please)

18

How to Select

EtttployGS

For Your Bank

A

S A general ru le th e re are two
typical reactions to th e subject
of tests and m easu rem en ts as
applied to th e field of em ploym ent.
T here is th e reactio n of th e person
who, w hile p erh ap s adm itted ly kn o w ­
ing little or n o th in g of th e subject, n ev­
erth eless has a v ery definite conviction
th a t th e re could be no inform ation of
any value to be gained from such a
source. E qu ally fallacious is th e reac­
tion of th e p erson w ho sees in th is m e­
dium th e solution to all of his problem s
and th e panacea for all th e ills w hich
m ay affect th e p ersonnel of his p a rtic u ­
la r organization. As a m a tte r of fact,
of course, n e ith e r of these extrem es
rep resen ts th e a ttitu d e w hich is m ost
likely to be productive of beneficial re ­
sults. In this, as in so m any oth er
things, a “m iddle of th e ro ad ” position
is th e m ore logical one to adopt. The
tim e-tried m ethods of selecting em ­
ployes on th e basis of interview s, edu­
cation, train in g , background, a p p ear­
ance and p ersonality, have lost none of
th e ir im portance. T ests can, how ever,
give to th e p ersonnel d irecto r or to th e
officer in charge of personnel, a v ery
useful and valuable tool.
Obviously, to give tests to all appli­
cants for positions w ould not only be a
tim e-consum ing operation b u t w ould
resu lt in a g re a t deal of unn ecessary
work. A large p ercentage of applicants
can be elim inated because of th e ir fail­
u re in some respect to conform to es­
tablished standards. F ro m th e re m a in ­
ing ap plicants it w ill o rd in arily be pos­
sible to select a sm all group w hich,
overtly a t least, seem s qualified for
w h atev er position m ay be available.
Since th e m ajo rity of new em ployes
en te rin g th e ban k in g business do so as
office boys or m essengers and e n te r
such em ploym ent directly from high
school in m ost cases, th e y seldom have
a record of previous em ploym ent
w hich w ill be p a rtic u la rly indicative of
th e ir p o ten tial value. T est resu lts
from th e group su rv iv in g th e p relim i­
n ary w eeding-out process can, at th is
point, be v ery helpful in m ak in g a final
selection.
T here is a w ide v a rie ty of te st m ate­
rial available, designed to m easure al­
m ost every com ponent of an individ­
ual. F ro m a practical stan d p o in t and


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Federal Reserve Bank of St. Louis

By R. K. Brown
Mississippi Valley Trust Co.
St. Louis

The two facto rs concerning
a prospective employe in
w h i c h the employment
manager is most interested
are his intelligence and
clerical aptitude

as a m a tte r of routine, how ever, m any
of th ese m u st be elim inated. In th e
final analysis, th e tw o factors concern­
ing a prospective em ploye in w hich the
em ploym ent m anager is m ost vitally
in terested, are his intelligence and his
clerical aptitude. T he establishm ent
of th e intelligence level is im p o rtan t in
d eterm ining its conform ity to accept­
able stan d ard s and, since th e m ajo rity
of b an k em ployes are engaged in some
phase of clerical routine, it is im por­
ta n t to know th a t th e req u isite degree
of ab ility along th is line is possessed
by th e prospective employe.
The ad m in istratio n of these tw o tests
is a com paratively sim ple m a tte r re ­
q u irin g only slightly m ore th a n half an
h o u r for both. If necessary, th ey can
be ad m in istered to fairly large groups
sim ultaneously. Scoring of th e tests is
also sim plified and can be done by th e
average clerk w ith a m inim um of in ­
struction.
In th e estab lish m en t of a testin g pro­
gram it is w ell to begin w ith p resen t
em ployes. T his serves a tw ofold p u r­
pose; it provides th e personnel d ep art­
m en t w ith valuable additional in fo rm a­
tion concerning those already on the
payroll and m akes it possible to estab­
lish te n tativ e stan d ard s for fu tu re em ­
ploym ents. It is usually possible to
form a fairly accurate estim ate of the
ab ility of an em ploye and by checking
his te st resu lts ag ain st th e daily p e r­
form ance of his assigned duties, estab ­
lish th e degree of correlation betw een

th e two. T he m edium range for a
group of em ployes perform ing th e
sam e type of w o rk w ill th e n co nstitute
th e “n o rm ” for th a t p a rtic u la r job clas­
sification.
A fter th e te st re su lt stan d ard s for
th e various types of jobs have been es­
tablished, these m ay th e n be used as a
guide in selecting only those appli­
cants w ho can m eet at least th e m ini­
m um req uirem ents. It is advisable to
establish m axim um as w ell as m ini­
m um standards. G enerally speaking,
a prospective em ploye in th e “n ear
gen iu s” level of intelligence w ould n ot
be as good a prospect for b an k w ork as
one in th e high average or average
level. The form er would, in all prob­
ability, become dissatisfied w ith th e
com paratively slow progress ordina­
rily m ade and w ould soon term in ate
his em ploym ent voluntarily.
An essential p a rt of any testin g pro­
gram is an adequate system of follow­
ing up the progress of new em ployes,
determ ining, as accurately as possible,
th e degree of correlation betw een the
predictive in te rp re ta tio n s of th e te st
resu lts and th e actual perform ance on
th e job. In cases of u n satisfacto ry
progress, te st inform ation m akes it eas­
ier to determ ine w h e th e r lack of abil­
ity or lack of in te re st m ay be th e u n ­
derlying cause, and m akes it easier to
arriv e at a decision concerning th e
m ost logical course of action to be fol­
lowed in such cases.
P roblem cases develop in every or­
ganization from tim e to tim e. H ere
again, te st resu lts m ay be th e m eans
of providing a solution to such prob­
lems. In addition to th e te st inform a­
tion concerning intelligence and cleri­
cal ap titude secured as a m a tte r of ro u ­
tine, inform ation concerning th e p er­
sonality, tem p eram en t or in terests of
an em ploye w ill often provide th e key
for th e solution of a problem of m al­
adjustm ent.
T he installatio n of a testin g pro g ram
is not a task to be approached lightly
or w ith o u t adequate p reparation. T he
m aterial to be used m u st be carefully
selected and th e plan to be followed
m u st be carefully determ ined in ad­
vance of th e actual establishm ent of
th e testin g program , if th e desired re(T u rn to page 46, please)

r

MEMBER
FEDERAL
DEPOSIT
INSURANCE
CORPORATION


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

20

How Field Warehousing Is Serving
Both Business and
ROM a refinery site in Texas to a
bank v a u lt in Chicago, 100,000 b a r­
rels of crude oil, req u ired as collat­
eral for a loan, w ere recen tly m oved in
five hou rs . . . not by pipe line, not by
rail in ta n k cars, b u t . . . by plane in
an envelope th re e an d one-half by
seven inches.
T h a t sam e day, tw o carloads of
canned ch erries from n o rth e rn M ichi­
gan w ere m oved to th e v a u lts of a
b ank in G rand R apids . . . a h u n d re d
tho u san d feet of lum ber w ere p u t into
th e safe-keeping of a b an k in P o rt­
land, Oregon . . .a w arehouse of clover
seed w as tra n sp o rte d to a b an k in Des
M oines . . . tw o m o n th s’ supply of
cotton in th e h an d s of a N ew E n g lan d
m ill w as m oved to a b an k in New
Y ork City . . . y e t n o t a carton, a plank,
a bag of seed, or a bale of cotton w as
m oved from its location. The m oving
th a t took place w as one of values, not
of m aterials.
The “m agic” w hich m ade possible
th e speedy and com plete tra n s fe r of
m erchandise from storage to th e b an k
w as th a t young g ia n t am ong m odern
m ethods of financing in actio n . . .
field w arehousing.
As it is stric tly a b ra n c h of th e aged
and honorable w areh o u se in d u stry ,
field w areh o u sin g has in re c e n t years
established itself as a sound an d tim e­
ly com plem ent to m odern financing,
offering as it does th e secu rity of th ird
p a rty bailm ent, tra d itio n a lly prized by
bankers.
All th e advantages offered lenders by
w areh o u se receip ts are p resen t, w ith a
n u m b er of additional advantages, n o t
th e least of w hich are savings in h a n ­
dling, tra n sp o rta tio n a n d storage
charges.
U nder o rd in ary w areh o u se proce­
dure, th e im p o rta n t an d m ost valuable
functio n of th e w areh o u se receip t is
th e creatio n of a bona fide pledge by
th e b o rro w er or pledger, in favor of
th e lender or pledgee. I t has been held
in th e h ig h est cou rts th a t tra n s fe r of
title th ro u g h a w arehouse receip t is as
com plete as if th e goods rep re se n te d
w ere actu ally delivered into th e pos­
session of th e holder of th e w arehouse
receipt.
The advantages of b orrow ing u n d er
such conditions are m ade available to

F


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

BcUlkßf

By E. A . Baker
Vice President
Douglas-Guardian Warehouse Corp.

The borrower is well served
by Field W arehousing be­
cause it enables him to ob­
tain maximum cred it fa c ili­
ties at reasonable rates. It
allows him to pay his loan
in an orderly manner as
he sells his inventory and
funds becom e available.

th e ow ners of inventories of consider­
able volum e, th ro u g h field w areh o u s­
ing, w ith no in terferen ce w hatsoever
to norm al business operation.
To pledge th e in v en to ry offered as
co llateral for th e proposed loan, the
m ethod of th e field w arehousem an re ­
verses th a t of general m erchandising
w arehousing, by creating a public
bonded w arehouse a t th e spot occupied
by th e inventory. In th e case of the
cherry-canner, th e in v en to ry w as in
th e w arehouse of th e factory. The oil
w as in tan k s at th e refinery. The lum ­
b er w as in piles a t th e m ill. T he
clover seed w as in a storehouse of a
large seed d istributor. The cotton w as
in th e w arehouse of a textile com pany.
In each of these cases, th e inv en to ry
as such possessed a collateral value of
exactly nothing. B ut in th e han d s of
a field w arehousem an it im m ediately
took on a loan value rep resen tin g a
m ajo r percentage of its appraised
value.
By engaging th e services of accred­
ited field w arehousem en, th e ow ners
of th e in v en to ry w ere able to secure
w areh o use receipts w hich w ere gladly
accepted as collateral for a generous
loan on b e tte r term s th a n w ould o th er­
w ise be granted.
It has been pointed out th a t th e b ank
w hich loans on w arehouse receipts

collateralized by a field w arehousing
setup has double protection . . . for
back of the receipts is th e value of th e
in v en to ry itself, th e value of w hich is
clearly set fo rth in th e ap p raisal m ade
before the ag reem ent is consum m ated.
T hree sim ple steps lead up to th e
conversion of in v en to ry into gilt-edged
collateral on w hich th e b an k er is glad
to loan m oney.
(1) A w arehousing ag reem ent or
co ntract is en tered into betw een th e
m an u factu rer or producer. T his con­
tra c t is sim ple in its provisions and, of
course, fair to both parties.
(2) The physical site occupied by
th e in v en to ry is leased to th e field
w arehousing com pany. (It m ay be
p a rt of a w arehouse, a lum ber yard,
tan k s a t a refinery, a g rain elevator, or
any nu m b er of o th er locations.) W ith
possession legally established, p roper
legal notice is given to the public of
the existence of th e field w arehouse,
and signs are posted in conspicuous
places.
(3) A com petent custodian is en­
gaged by th e field w arehouse com pany
to act as local w arehouse m anager u n ­
der adequate bond. T his re p re se n ta ­
tive is h ired by th e field w areh o u se­
m an and his salary paid by them .
T hrough th is sim ple tran sitio n , in ­
v en to ry w hich rep resen ts idle m oney
or “m oney eating its head off” in sto r­
age costs, in te re st charges, etc., is h a r­
nessed and p u t to w ork a t a nom inal
cost to th e custom er. By utilizing th e
storage space of his custom er and, in
m ost cases, ta k in g over th e services of
a custodian in th e em ploy of th e cus­
tom er, th e field w arehousem an obtains
a low cost of operation, of w hich th e
custom er gets th e benefit.
As th e pledged in v en to ry is needed
by th e m an u factu rer, an d he is able to
take up th e loan, settlem en t is m ade
w ith th e bank, and th e b ank in tu rn
authorizes th e field w arehousing com­
pan y to release th e q u a n tity re p re ­
sented by th e p a rt of th e loan repaid.
All of th e necessary form s are sup­
plied by th e field w arehouse com pany,
and th e m echanics of th e tran sactio n
are carried on w ith precision and dis­
patch.
D uring th e period th a t th e field
(T u rn to page 46, please)

21

I

___i
NEW FIXTURES—
an

ASSET-

ASSETS
Cash on Hand and in Banks___________________$4,327,608.11
Bonds—U. S. Government_________________________ 6,436,229.64
Other Bonds _______________________________ 2,842,396.44

f \ | E W fixtures are a decided asset to any bank.
W hile they may not a ffe ct your statem ent they do
im prove your standing as a banking institution.
A ttra c tiv e fixtures such as Fisher installs advertise
your bank's solidity and its modern methods of
operation. They are immensely im portant in every
phase of your public relations.
LET FISHER SOLVE YOUR REMODELING PROBLEM

Having our representative call and ta l\ the matter over
will not place you under any obligation to buy from us.

■a.Fisher C ompany
E S T A B LISH E D

18 7 0

Charles City, Iowa
B A N K

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

F I X T U R E

H E A D Q U A R T E R S

22

W h y I Keep a

Record of
W

E ALL know th a t th e a r t of
selling is th e technique of lead­
ing th e p rospect th ro u g h cer­
tain definite psychological processes—
alw ays th e sam e, and alw ays in th e
sam e sequence. In every sale th a t is
ever m ade it is necessary to first, se­
cure th e a tte n tio n of th e prospect: sec­
ond, arouse his in te re st in th e p roduct
offered; th ird , lead him to desire it;
and fourth, m ore him to affirm his de­
sire for ow nership by acting now. A t­
tention, in terest, desire, and action are
the four inevitable psychological steps
of every sale th ro u g h w hich th e p ro s­
pect in v ariab ly m u st be led. Such is
the a rt of selling.
T he business of selling accident and
health in su ran ce consists of planning,
prospecting, and in terview ing. The
n a tu ra l subdivisions of a selling in te r­
view are th e approach, th e p re se n ta ­
tion, and th e close. To m aster th e a rt
of selling it is n ecessary only to m aster
a few p rinciples applicable to th e busi-

E M E R S O N D A V IS


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

M y Sales Effort

By Emerson Davis
M anager
Mutual Benefit Health
and A ccid e n t Association
Dayton, Ohio

ness of selling. I am confident you
w ill agree th a t how w ell a salesm an
prospects and plans his call determ ines
th e degree of his success in securing
his p ro spect’s attention; th a t th e re is,
therefo re, a definite relatio n sh ip be­
tw een p lanning and prospecting on
th e one h an d and securing a tten tio n
on th e other. Sim ilarly, th ere is a defi­
n ite relatio n sh ip betw een th e business
of approaching a prospect and th e a rt
of arousing his in terest, betw een the
business of m aking a p resen tatio n and
a rt of leading a prospect to desire your
product, betw een th e business of clos­
ing th e sale and th e a rt of causing a
p rospect to act now.
To determ ine exactly w h a t th is re la ­
tionship is, is th e reason w hy th e b u si­
ness of selling req u ires an accounting
system . A dequate records of th e re ­
su lts of y o u r selling efforts w ill enable
you to determ ine yo u r ap titu d es or re l­
ative w eaknesses in th e practice of the
selling art. K now ing th e definite re la ­
tio n sh ip betw een each division of th e
business of selling and each division of
th e a rt of selling, and having d eter­
m ined y o u r relativ e stre n g th and
w eaknesses in th e a rt of securing a
p ro sp ect’s “atten tio n ,” “in te re st,” “de­
sire,” and “action,” successful selling
of accident and health insurance re ­
quires m erely th a t you intelligently
set about im proving yourself in th a t
phase of y o u r business w here need for
im pro v em ent is indicated. H aving lo­
calized th e cause of u n satisfacto ry re ­
sults, w h e th e r it be in th e p lanning
and prospecting, th e approach, presen ­
tation, or close, th e rem edy is simple.
T h ere is a w ealth of m aterial on how
to sell accident and h ealth insurance
and ev ery issue of our house organs
and tra d e papers contains innum erable
ideas and suggestions for im proving
our sales technique. As a m a tte r of
fact, th ere is so m uch of it th a t a sales­
m an d esiring to im prove him self in the
business of selling, no m a tte r how

earn est his desire m ay be, is sim ply
overw helm ed by th e volum e of m ate­
rial th a t is available and unless he has
some m eans of know ing precisely w h at
his need is so th a t he can intelligently
select th e m aterial th a t w ill help him ,
he is doomed to m ediocrity or failure.
An experienced m anager or sales in ­
stru c to r m ay be able to correctly diag­
nose th e difficulty of such a salesm an
b u t frankly, I believe in stru c to rs are
m ore efficient in prescribing a rem edy
after a correct diagnosis has been m ade
th a n th ey are in correctly diagnosing
th e trouble unless th e accounting de­
p a rtm e n t in y o u r business of selling
has been functioning efficiently and
adequate records are available.
A nd th a t brings us to th e question:
“W h at k ind of records should be
kep t?” My an sw er is: “The sim plest
possible!” Too m any a g en t’s records,
tim e control charts, etc., have been de­
vised by theorists. I don’t m ean th e ir
in v en to rs necessarily lack practicality,
b u t th ey are often statistician s and
actuaries a t h eart, and th e re is nothing
so inim ical to th e necessary en th u si­
asm of a sales perso n ality and th e de­
bilitatin g effect of keeping volum inous
records th a t have little or no bearing
on th e salesm an’s im m ediate problem s.
Too often w e becom e enm eshed in th e
intricacies of m ethods and lose sight
of our m ain objective. I ’ve seen sales­
m en ’s records th a t w ere alm ost an end
in them selves, ra th e r th a n a m eans to
an end. W hich is w hy I alw ays ap­
proach th e subject of record keeping
w ith a considerable degree of terpidation.
H ow ever, some sort of record is es­
sential to th e successful operation of
any business and th e business of sell­
ing accident an d h ealth in surance suc­
cessfully is no exception to th e rule.
B ut adequate records can be v ery sim ­
ple. Tw elve or fifteen y ears ago I came
across published in th e salesm anship
section of A ccident and H ealth, a 3x5
record card quite sim ilar to one I w as
and am still using, w hich m erely lists
on a line follow ing th e nam e of th e day
of th e w eek, th e n um ber of calls, con­
tracts, interview s, prospects, and sales
made th a t day, th e recording of w hich
req u ires possibly tw o m inutes. A sep­
arate line is provided for each day of

23
the w eek and by sim ply en te rin g the
sam e in fo rm atio n each day and to ta l­
ing th e n u m b er of calls, contacts, in te r­
views, prospects, an d sales, a t th e end
of th e w eek you ascertain precisely
w h at has been accom plished in sales
effort, and th e en tire record for th e
en tire w eek req u ires no m ore en tries
th a n can be easily m ade on one side of
a card 3x5 inches in size. By accum u­
latin g th e to tals in each category and
carry in g th em fo rw ard to a card for
th e c u rre n t w eek you w ill alw ays have
at h an d as com prehensive a record as
you will ever need to d eterm in e th e
degree of y o u r effectiveness in each
d e p a rtm e n t of th e a rt and business of
selling.
The ratio of contacts to calls show s
how w ell y o u r w o rk w as planned. The
ratio of in terv iew s to contacts show s
how effective y o u r approach is. The
ratio of th e sum of prospects an d sales
to in terv iew s indicates y o u r effective­
ness a t closing. You should ap p ro x i­
m ate seven in terv iew s for each 10 con­
tacts, tw o prospects and one sale for
each seven in terv iew s and m ake no
less th a n 10 contacts each w orking
day. If you find you are below th is
sta n d a rd in an y d ep artm en t of th e
business of selling, th e rem edy is re a d ­
ily available. W hen y o u r records show
you are up to sta n d a rd in each d e p a rt­
m en t of y o u r business, th e n you have
m astered the a rt of selling, an d th e
question of how to acheive success in
th e sale of accident and h ealth in s u r­
ance has been answ ered.

W arner Expands
T he N o rth e rn M utual In su ran ce
Com pany of Des Moines has been
tak en over by E lm er H. W a rn e r and
A ssociates of Des Moines. Mr. W a rn e r
is se c re ta ry and m an ag er of th e M er­
ch an ts M utual B onding C om pany of
Des Moines.
The N o rth ern M utual w as organized
and licensed in 1932 for the purpose of
w ritin g bonds for th e Stock Food
M en’s A ssociation. It w ro te som e b u si­
ness d u rin g th a t year, b u t since th e n
has not been active in th e bonding
business.
The N o rth e rn M utual w ill be used
for rein su ran ce purposes by th e M er­
ch an ts M utual B onding Com pany and
officers w ill be as follows: P resident,
E. H. W arn er; vice p resident, B arry
Oakes; secretary, E stelle Oakes; tre a s ­
urer, M. O. M illigan. Offices will be
in th e V alley B ank Building.

Make It Plenty
H u sband (seeing h e r off on the
tra in ): “Now, dear, as soon as you
a rriv e you m u st teleg rap h .”
W ife: “V ery well, dear. H ow m uch
shall I teleg rap h fo r?”

1776

IT S

mo

THE S P IR IT
O f THE THING

A Motivating SPIRIT which gets things done. The
same SPIRIT of mutual assistance that helped build
a great nation is at work today building better and
more profitable insurance agencies. This spirit can't
be bought, but is given freely to every Western
Mutual agent in addition to liberal commissions. A
spirit and a product that succeed.

Legal Reserve
Non-Assessable
fire and Auto Policies

W E S T E R N M U TU A L
FIRE INSURANCE COMPANY
DES MOINES

Over a Third of a Century of Safety and
Service With Savings
N orthw estern B anker


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

August 1940

24

No. V of a Series

DOES I I V E S T M M T BANKING
>

H ere

are

Investm ent

some of the
B anking

has

services th at
rendered

to

A m erican business and to the A m erican
public.

utives in working out sound plans for the
readjustm ent, or reorganization, of the
capital and set-up of th eir company.

A fter studying them , you may

arrive at your own conclusions as to

Investm ent B anking provides funds for

w hether or not you regard

state, county and m unicipal needs—h igh­

them

as

essential.

ways, bridges, school buildings, and other

-V

needed public im provem ents—by buying
Investm ent B anking aids sound business

entire bond issues on a com petitive basis.

in acquiring new capital for plant expan­
sion, new equipm ent, additional working

Investm ent Banking provides the investing

funds, and other constructive purposes—

public w ith attractive issues of registered

by underw riting th e ir securities and dis­

securities, high grade, m edium and spec­

trib u ting them to the public.

ulative—from

w hich

to

select,

each

according to his own p articu lar req u ire­
Investm ent Banking helps financial exec­

ments.

Iowa Investment Bankers Association

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

*

25

The Month’s Market Maneuvers
I t is M o n d a y
m orning, Ju ly 29th,
as Ave w rite th is—
and excep t for re­
ports of Germ an
and B r i t i s h air
raids, p lus th e u su ­
al daily report from
the Italian h i g h
com m and th at E n g ­
JA M E S H. CLAR KE
land w a s s w e p t
from th e M editerranean yesterd ay—
the Avar fron ts are quiet. T h ey w ere
q uiet also ju st before the in vasion of
N orw ay and of th e L ow C ountries.
E ach day there is som e n ew in terp re­
tation placed on G erm any’s delay—
th is m orning there is the report th at
traffic b etw een th e occupied and u n ­
occupied areas of F ran ce has b een
halted. P erhap s th is is the cue for the
attack. A ll th is m ay be k n ow n w h en
Ave go to press.

B u t if w a r has quieted d ow n as an
ite m of reader in terest, it is still the
m ost p o ten t factor in our business and
our m a rkets. W ith th e n ew s fro m
E u ropean fro n ts p re tty m u c h at a
sta n d still at th is w ritin g , th e sto ck
m a rk e ts are displaying little a ctivity.
V olum e of trading on th e B ig Board
has been averaging around 200,000
shares a day— an alm ost unbelievably
low figure. On W ednesday, J u ly 24th,
the tu rn o v e r w as 195,300 shares— the
sm allest vo lu m e in alm ost tw en ty-tw o
years— S ep tem b er 19,1918, in fact. The
fu ll influence of the w a r in slow ing up
our m a rk e ts can be m easured if w e
look at som e of the headlines of th a t
sam e day— J u ly 24th. W e refer to:
“Steel rate u p to n ew 1939 high of 89%,
Chicago at 96.5%;” “P ow er ou tp u t
h ig h est since early F ebruary;” “Ju n e
tire sh ip m e n ts set 8-year high;” “B ald­
w in L ocom otive orders up sharply;”
“M any corporations report increased
second quarter earnings;” etc., etc.
T h ere w as a tim e—one, a t least—
w hen w a r new s b ro u g h t boom ing
stock prices. B u t th e new s of tax es
an d m ore taxes has changed all th at.
T h u s th e ta x legislation now in Con­
gress and th a t to come w ill be m ore
im p o rta n t to w atch closely th a n th e
earn in g s p er sh are of common.
A quick look a t th e stock m a rk e t in
J u ly show s th a t including S aturday,
th e 27th, th e re w ere tw en ty -th ree days
of trading. U sing th e Dow-Jones I n ­
d u stria l A verages as a m easu rin g stick,
th e re w ere th irte e n days on w hich
gains w ere recorded, nine days of loss
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Prepared for
The Northwestern Banker

By Jam es H . C larke
Assistant Vice President
American National Bank & Trust Co. .
Ch ic ago

es and one day w hen no change w as
reported. T he actual change for th e
full m o n th w as p ractically nil—on th e
last trad in g day in Ju n e th e average
w as 121.87—last S atu rd ay m orning it
w as 122.45, about a half p o in t change
in alm ost a m onth of trading.
W h ile g e n e r a l actiAdty in th e b o n d
m a r k e t Avas lim ite d d u r in g th e m o n th
— a n d so m e fe e lin g s e x p r e ss e d th a t
p ric e s w e r e p r e tty h ig h a g a in — n e v e r ­
th e le s s , th e m a r k e t sliOAved so m e life
in th e Avay it ab so rb ed g o \Te r n m e n t
an d co rp o r a te o ffe r in g s.
T h e $600,000,000 G o v e r n m e n t 2 %’s o f 1954-56
Avere o v e r su b sc r ib e d e le v e n tim e s,
Avent to a p r e m iu m im m e d ia te ly and
to d a y a re q u o te d a ro u n d 102.13. T h a t
th e $250,000,000 o ffe r in g o f l/\% n o te s
o f 1943 o f th e C o m m o d ity C red it C or­
p o r a tio n w a s AATe ll r e c e iv e d is e v i­
d e n c e d b y th e p r e m iu m a t Avhich th e
n o te s a re s e llin g an d th e a n n o u n c e ­
m e n t th is m o r n in g th a t a llo tm e n ts w ill
be on a b a sis o f 9% o f su b s c r ip tio n s.

There w ere a n u m b er of corporate
offerings in the m o n th — prim a rily re­
fundings. Such issues as the $10,000,000 Scovill M anufacturing C om pany
debentures and the $32,000,000 of I n ­
dianapolis P ow er and L ig h t first m o rt­
gage 3 VPs m e t w ith sharp dem and.
Texas Corporation also sold $60,000,000
debentures, w hile Iow a So u th ern U til­
ities brought out $10,000,000 in first
m ortgages and $2,660,000 in deben­
tures. These received a fair reception.
The $50,000,000 Cleveland E lectric Illu ­
m inating C om pany long 3’s w ere a bit
slow and are now quoted at 104Vz com ­
pared to the offering price of 105Vz.
A n o th e r case of overpricing in a som e­
w h a t n ervous m arket.
W hile some of th e agencies m ay of­
fer bonds in A ugust, it is n o t expected
now th a t th e go v ern m en t itself w ill
do m uch before fall. T he $32,000,000
deal of In te rn a tio n a l P ap er Com pany
h as been deferred—b u t th e re are a
n u m ber of deals w hich m ay b reak in

A ugust — m a rk e t conditions p erm it­
tin g T here is talk on th e stre e t of
U nited Gas C orporation doing a $75,000,000 refu n d in g job-—o th er com pa­
nies m entioned are Colum bus R ailw ay
P ow er & Light, N o rth w estern Public
Service, F lorida P ow er & L ight, K ings
County L ighting, N ew Jersey P ow er &
L ight, N ew Y ork State E lectric and
Gas and Safe H arb o r W ater Pow er.
FolloAving a slig h t dip in th e early
part of Ju ly, th e NeAV York T im es In ­
dex of B u sin ess A ctiv ity has turned
up again. In the Aveek ended Ju ly
20th—the la test available—the in dex
stood at 101.1. On the average, b u si­
n ess is good— but badly distorted b e­
cause of w ar orders. S teel production
is around 8914% of theoretical capacity
com pared w ith 59.3% a y ear ago— carloadings are ap proxim ately 12% b etter
than la st year— electric p ow er output
10% b etter. The autom obile in d u stry
is reflecting season al in fluences as pro­
duction drops in the period of m odel
change. If E n glan d su rv iv es the Ger­
man o n slau gh t Avhen and if it conies,
th e orders from th at country w ill con­
tin u e to m ount— hence play an in creas­
in g ly im portan t role in our dom estic
econom y. If E ngland fa ils—a tem po­
rary slum p in our b u sin ess is in e v i­
table, at lea st u n til th is country is in
a p osition to assum e the orders sh e has
placed w ith A m erican m anufacturers.

W ith the nom in ating conventions
out of the w a y and w ith candidates
selected w ho are clearly pro N ew Deal
and anti N ew Deal, the cam paigns
could be conducted on p u rely dom estic
lines. There appears to be little to
choose fro m on foreign policies, but
even so the progress of the w ar over
the n e x t tw o m o n th s w ill probably be
m ore im p o rta n t than local problem s.
Such a situation should lead to caution
am ong investors— and cautious in v e st­
ors m a ke fo r colorless m arkets. The
continuance of a conservative policy
seem s definitely in order.

L E G A L Q U EST IO N S
(C ontinued from page 16)
C hanning m ade a w ill appointing a
T ru st Comp:any th e executor of his
estate and providing for th e disposal
of his p ro p erty to certain individuals.
The w ill w as lost and proceedings
w ere in stitu te d to establish its con­
ten ts as a lost will. In such proceed­
ings, w ere declarations of th e te sta to r
adm issible to prove th e contents?

26
It is gen erally, although not u n iv er­
sally, recognized th at th e declarations
of a testator are adm issible to prove
the con ten ts of an alleged lost w ill
in a proceeding seek in g its estab lish ­
m ent or adm ission to probate. Iow a
and W iscon sin are tw o of the states
so holding.

R oberts m ailed a le tte r to his b an k
in K entucky directin g it to tra n s fe r a
savings account deposit in his nam e to
his sister, and enclosed w ith th e le tte r
his passbook. On th e sam e day he
m ailed th e letter, b u t before it reached
the bank, he com m itted suicide. W as
the siste r en titled to h is savings ac­
count?
No, according to a recent K entucky
decision. The h olding there Avas that
it Avas n ecessary th at there be a d eliv ­
ery AA-hereby the donor gaA^e up dom in ­
ion and control over the su bject m at­

ter and placed the control of it in the
donee during th eir liv e s in order for
the g ift to becom e effective and that
such Avas not accom plished. In th is
con n ection it Avas pointed out th a t u n ­
der p ostal regulations th e sender of a
letter m ay, by proper application, liaA^e
it returned to him at any tim e before
it is d elivered by th e postal au th orities
to the addressee.

estate to pay the ordinary taxes th e r e ­
on. W here the tru st agreem ent provid es to the contrary, such provision
sh ould control, but Avliere th is is not
the case, the gen eral rule prevails.

Quite often a tru s t officer w ill find
him self confronted w ith a situation
w h ere a life te n a n t in possession of the
real estate of an estate w ill w ish to
excuse him self from paying th e ordi­
n a ry taxes on th e property. W here
th is occurs should th e life te n a n t be
p erm itted to do so?

“As to th e o th er b an k ers present,
th e ir position w as one of w itnessing
to th e facts presen ted by Mr. W iggins.
E ach one p resen ted his view s, o u tlin ­
ing different types of problem s, be­
cause of locality, size, etc.
T heir
view s w ere tak en from th e ir personal
experience in th e ir own situ atio n s and
each w as subject to questioning for
additional inform ation.
“The h earin g w as ended in th e sam e
pleasan t m an n er in w hich it w as be­
gun. W hile no decision could im m e­
diately be arriv ed at, it was, w ith o u t
question, th e opinion of all of th e b a n k ­
ers p resen t th a t th e inform ation p re ­
sented w as v ery beneficial and th a t
th e reclassifying of th e em ployes ac­
cording to the re-definition of th e
term s ‘executive,’ ‘a d m in istrativ e’ and
‘professional’ em ployes w ould p erm it
th e application of th e law w ith g reater
service to th e public and w ith b etter
consideration to th e employe.
“The sp irit prevailing at th e recent
w age and ho u r h earin g for banks,
ban k ers and tru s t com panies w as in ­
deed a friendly one on th e p a rt of the
b an k ers and th e ad m in istratio n offi­
cials as well. E v id en tly th e prelim i­
n a ry w ork had been v ery w ell and
efficiently done because it seem ed th a t
every one p resen t felt th a t a task w as
to be perform ed, a problem to be
solved, to arriv e at th e best possible
m ethod of applying th e principles of
th e W age and H our Law to banking.
“The assum ption at this m eeting
w as th a t it w ould be necessary for
banks to com ply w ith th e law u n til
it w as found th a t th ey do not come
un d er it or am endm ents to th e law
are m ade to relieve them from it.
“The definite purpose of th is m eet­
ing and h earin g w as to explain to the
ad m in istratio n and to give th em a
close up view of th e w o rk done in a
bank; to show how th e p resen t law,
w hile no doubt sound in principle, did
w ork hard sh ip s on the banks in re n ­
dering th e ir services to the public and
to th e em ployes them selves. These
problem s being show n, it w as th e n the
purpose to p resen t a solution by re ­
defining and reclassifying th e em ­
ployes of banks in order th a t a t least
enough em ployes m ight be relieved
from th e operations of th e law to al­
low for th e ever expanding an d con­
tra c tin g business of all ban k s.”

No. It is a w ell-established gen eral
p rinciple— som etim es prescribed by a
con trolling sta tu te—th at it is th e duty
of a life ten an t in p ossession of real

S h a w , McDermott & Sparks
..............................................

- ■ I —-—■
I N C O R P O R A T E D —■
——

. W

1,

......—

■
,«»

Investment- Securities
Suitable for Investment of Banks,
Institutions and Trust Funds

307 E quitable Bldg.
DES

MOINES.

Phone 3-6119
I OWA

V. W. B r e w e r C o .
M u n ic ip a l B o n d s

N orth D ak ota and S ou th D ak ota are N u m b er O ne and
N u m b er T w o in p ercen ta g e o f debt red u ctio n in the
en tire U n ited States.

FIR ST N A T - S O O LINE BLDG.

MINNEAPOLIS
N orthw estern Banker

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

August 19W

W A G ES AND HOURS
H E A R IN G
(C ontinued from page 12)

27

Heads National C ity Board
G ordon S. R entschler, w ho has been
p resid en t of The N ational City B ank
of N ew Y ork since 1929, h as been
elected ch airm an of th e board of di-

vice presid en t in addition to his title
of cashier w hich he has held for
m ore th a n tw en ty years.
The form er executive setup, w ith
Mr. P erk in s as ch airm an of th e board,
had Mr. R en tsch ler as p resid en t in
second com m and and Mr. B urgess
third.

Faculty Member
O. P. Decker, vice presid en t of the
A m erican N ational B ank and T ru st
C om pany of Chicago, served as a m em ­
b er of th e faculty of th e Life Officers
In v estm en t Sem inar, held on th e cam ­
pus of In d ian a U niversity, Blooming-

G O R D O N S. R E N T S C H L E R

recto rs and chief executive of th e
bank. He succeeds th e late Jam es H.
P erkins. W. R andolph B urgess con­
tin u es as vice ch airm an of th e board
and a directo r b u t w as elevated to
second in com m and w hereas form erly
he w as th ird . W illiam Gage Brady,

G E N E R A L

M O T O R S

ton, from Ju ly 15th to 26th. The sem i­
n a r is an in stitu tio n for th e advanced
stu d y of th e in v estm en t problem s of
life in su ran ce com panies, and is con­
ducted an n u ally by the A m erican Life
C onvention in cooperation w ith th e
School of Business, In d ian a U niver­
sity. R egistration is lim ited to in ­
v estm en t officers of life insurance com­
panies, and certificates are aw arded to
qualified stu d en ts a fter atten d in g resi­
dent sem inars for th ree sum m ers. Mr.
D ecker lectured on Ju ly 22nd as a p a rt
of th e sessions on “The Practices of
In v estm en t M anagem ent,” his p artic u ­
lar subject being “In d u strial Securi­
ties.”

AC CEP TA NC E

CORPORATION

T
is engaged primarily in facilitating wholesale distribution
and retail sales of the following products of General
M otors C o rp o ratio n and its w orld-w ide affiliates:
CADILLAC, LA SALLE, BUICK, OLDSMOBILE, PONTIAC,
Ch e v r o l e t automobiles; frigidaire appliances for refrig­

eration and air conditioning; delco lighting, power and
heating equipment; gmc trucks; Bed fo rd , v a u x h a l l
and other foreign made automotive vehicles.
The business consists of investments in self-liquidating
credits, widely diversified as to region and enterprise,
capital em ployed being in excess of $80,000,000.
In obtaining short term accommodation, gmac issues
one standard form of note. This obligation it offers to
banks and institutions, in convenient maturities
and denominations at current discount rates.

GENERAL
MOTORS

W M . GAGE B R A D Y , JR.

INSTALMENT
Jr., w as elected p resid en t and a di­
rector. Mr. B rady has been a senior
vice president.
The b oard also elected W illiam S.
Lam bie and H ow ard C. Sheperd vice
p resid en ts to new posts as senior vice
p resid en ts in addition to Joseph H.
D u rrell w ho continues as senior vice
p resid en t in charge of overseas op­
erations.
N ath an C. L enfestey w as elected

P L A N
These

notes

are available, in limited amounts,
upon request.

EXECUTIVE OFFICE
NEW YORK

BRANCHES
IN PRINCIPAL CITIES

N orthwestern Banker

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

August

28

IOWA
Investm ent Bankers
Association

W ALTER E. Y IE T H
President
Davenport

Organized 1935

LANS for th e 1940 F ield D ay of the
Iow a In v e stm e n t B an k ers A ssocia­
tion are g rad u ally ta k in g shape as the
general com m ittee headed by A rthur
K eyes as ch airm an co ntinues its w ork.
The F ield Day w ill be held a t th e Wakonda Club in Des Moines, on th e a fte r­
noon and evening of W ednesday, Sep­
tem ber 11th. T his date w as selected
because it is th e closing day of th e
an n u al m eeting of th e Iow a B ankers
A ssociation in Des Moines. T he b a n k ­
e rs’ sessions conclude a t noon of th e
11th, an d since m an y in v estm en t b a n k ­
ers from Iow a an d su rro u n d in g states
atte n d th e b a n k e rs’ conference, it w as
th o u g h t th a t th e y could save th e m ­
selves ad ditional tra v e lin g by stay in g
over for th e ir ow n g a th e rin g a t th e
conclusion of th e b an k ers m eeting.

P

Those appointed on th e F ield Day
com m ittee to serve u n d e r Mr. Keyes
are T. C. H enderson, Jam es A. Cum­
m ins, K enn eth H en k le, W infield Jackley, H arry K aupp, H arry L. W estphal,
H arry B. Graefe, and G. D. Murdoch.

ROY W. LER IC H E
Secretary
Des Moines

A no ther com m ittee, w orking u n d er
cover w ith o u t identity, is prep arin g
copy for the 1940 edition of The N orth ­
w estern B U N K E R , and from all indi­
cation th e d irt th is y ear w ill be m uch
th ic k e r an d m ore sm eary th a n any v e r­
bal goo stirre d up for p ast num bers. It
is suggested th a t m em bers w ear d ark
su its a t th e F ield Day—th e m ud spots
w o n ’t be quite so evident.
W alter E. V ieth, p resid en t of the
Iow a In v estm en t B ankers A ssociation,
has appointed a com m ittee to w ork out
a p ro g ram to w ard th e revision and
clarification of th e tru s t law s of th e
state of Iow a as th ey apply to in v est­
m en t of tru s t funds. The com m ittee
consists of W alker D. H anna, ch air­
m an, an d F lo y d D uncan, Ju lian W hite,
H arry W estp h al and H arry Graefe.

In recognition of th e fact th a t good
public relatio n s begin a t hom e, th e
C entral States Group of th e In v e st­
m en t B ankers A ssociation of A m erica
in a u g u rated its p a rt of th e associa­

B O N D S
Public U tility
In d u stria l
R a ilr o a d
M u nicipal

A.C.ALLYJSTandc o m p a n y
In co rp o ra ted
100 W est Monroe S treet, Chicago
N ew York
R ep resen tatives:

N orthw estern Banker

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

M ilw aukee
W aterloo

August 1940

Omaha
D es Moines

Boston
Cedar Rapids

tio n ’s n ational public inform ation cam ­
paign by staging a dress reh earsal of a
typical program , such as is planned for
public audiences du rin g th e n ex t year
or m ore, for th e exclusive benefit of the
personnel of m em ber houses. More
th a n four h u n d red individuals, ranging
from th e y oungest m essenger to senior
executives, of LaSalle S treet houses
atten d ed a m eeting held a t th e LaSalle
Hotel.
E m m ett F. C onnely of D etroit, p resi­
d en t of th e association and chairm an
of its public in form ation com m ittee,
in outlining th e broad purpose behind
th e program , said, “We have an essen­
tially sim ple sto ry to tell. It is m erely
th a t in m odern in d u stry an in vestm ent
of m oney to provide equipm ent and
tools is p rereq u isite to jobs. Hence,
new jobs for th e unem ployed and gen­
eral business im provem ent hinge upon
new capital investm ents.
“T here are a nu m b er of th in g s now
in te rfe rin g w ith th e norm al flow of
capital into job-m aking investm ents.
W e propose to call a tten tio n to them .
I t is our conviction th a t if th e public
has th e in form ation it w ill assist us in
clearing th e channel and encouraging
th e use of new capital.”

W H A T I LEA RN ED A B O U T
RU TG ER S
(C ontinued from page 13)
activity; no convention atm osphere
w ith ro u sin g speeches and glad-hand­
ing. W h atev er it w as, it h ad me.
Now, as I said, I am not a b an k er
and th e school is for b an k officers. B ut
I couldn’t get it out of m y m ind. The
outcom e w as th a t th ro u g h special dis­
pensation I w as allow ed to enroll th is
year. I t w as one of m y g reatest expe­
riences. F o r tw o w eeks 698 m en w en t
to school together. A nd th is isn ’t th e
end, as extension w ork w ill keep them
busy all d u rin g th e year, culm inating
in an oral panel exam ination an d an
acceptable thesis.
As a com posite, let m e pictu re th is
m an as 42 years old, m arried, w ith tw o
children. He is an officer in th e m ost
progressive b ank in his tow n. He has
responsibility w hich he carries w ith ­
out com plaint—no 40 h o u r w eek h an ­
dicaps him. He has com pleted a high

29

W hat Their Statements Show
Figures Reported by New York. Chicago and St. Louis Banks According to Their Statements
of June 29, 1940
BA NK
. . . A merican N ational Bank & Trust. .
...C i t y N ational Bank & T ru st.............
. . . C ontinental-lllinois N ation al. . . . . . .
. . .Drovers N a tio n a l........................ ............
. . . First N ational ....................
. . . Live Stock N a tio n a l...............................
. . . Northern Trust ........................................
. . .National Bank o f . ...................................
. . .Commerce Trust ......................................
. . .Central Hanover Bank & Trust. . . . .
. . .Chase N ational ........................ . . . . . .
N ew Y ork......... ...G u a r a n ty Trust Co...................................
. . M anufacturers Trust ............................
N ew Y ork......... ...P u b lic N ational Bank & T ru st.........
P h iladelph ia. . . . . .Philadelphia N ational B a n k .............
St. L o u is........... . . . B oatm en’s N ational . . . . . . . . . . . . . . .
St. L ouis........... ... F i r s t N ational .........................................
TOWN

school course; has h ad som e college
w o rk and besides he has gone to school
a t n ig h t and now holds an A. I. B.
certificate. H is job is no bed of roses,
b u t sittin g on a cushioned sw ivel ch air
fo r 50 w eeks (less vacation) is an easy
job com pared to th e tw o w eeks he
spends (if he is fo rtu n a te ) a t R u tg ers
G raduate School of B anking.
F o r h ere he gets u p a t 6:00 a. m.;
b re a k fa st in th e gym n asiu m th re e
m iles aw ay a t seven o’clock; th e n h u r ­
ried ly he read s th e N ew Y ork Tim es,
th e A m erican B an k er an d th e M orn­
ing M ilk (th e daily school pap er) an d
is in his class room a t 8:30, w h ere he
sits on a h a rd oak ch air w ith a w rit­
ing arm u n til 12:30. A nd do those
ch airs get hard! H e h a ste n s back to
th e gym n asiu m rav en o u sly h u n g ry ,
n o t only for food, b u t for th e in sp ira ­
tio n h o u r of song, sto ry and fellow ship.
The aftern o o n sessions, p anel dis­

JAMIESON
&

C OM PA N Y
Stocks
Bonds
Grain

Q

Cotton
Butter
E ggs

Com m odity Brokers
Members

N ew York Stock E xchange
and

Other Principal E xchan ges
•
ST. PAUL — MINNEAPOLIS
•

G overnm ent — M unicipal
Corporation Bonds
•
CHARLES C. RIEGER

Capital
$ 1,600.000
4,000,000
50,000,000
1,000,000
30,000,000
1,000,000
3,000,000
17,461,875
6,000,000
21,000,000
100,270,000
90,000,000
41,747,960
7,000,000
14,000,000
2.000,000
10,200,000

Surplus and
Profits
$ 1,651,588
3,559,906
50,213,034
1,111,198
40,075,902
1,604,311
10,636,868
14,689,695
6,263,959
73,285,329
134,090,953
185,639,400
40,151,108
10,067,706
29,247,145
2,439,763
8,762,223

Bonds and
Securities
$ 27,313,488
44,050,432
705,789,531
3,001,250
473,561,479
4,342,560
199,711,258
249,420,078
81,273,342
422,608,154
1,318,864,397
1,035,812,228
385,597,399
42,527,046
243,431,864
30,854,327
87,540,138

Loans and
Discounts
8 19,681,287
41,304,087
156,347,094
3,633,664
264,807,145
5,946,546
39,433,325
76,141,435
37,894,276
158,964,711
607,858,800
388,958,340
203,332,207
59,619,246
81,016,634
16,488,576
63,087,046

Cash and Due
From Banks
$ 26,322,636
82,100,666
660,976,022
28,156,427
464,253,471
19,411,915
161,523,825
210,996,354
74,301,350
729,766,474
1,467,007,452
1,134,793,026
250,650,148
68,478,764
325,222,759
18,552,687
127,073,290

§

Deposits
69,160,944
159,365,407
1,421,459,288
32,276,517
1,140,723,524
27,670,390
378,573,534
506,015,243
184,046,942
1,238,311,827
3,190,822,926
2,302,794,072
792,181,953
151,920,946
605,087,948
61,517,914
260,999,650

th a t ideas are “jelled ” th ro u g h differ­
ences of opinion earn estly and tr u th ­
fully expressed. T he stu d en t is across
the table from th e professor an d ideas
and also ideals are form ulated. These
b an k ers and professors are h o nest
men. T hey are seekers a fte r tr u th and
it is here th a t some of th em for th e
first tim e realize th a t th e y have be­
come so specialized in th e ir ow n p a r­
ticu lar field th a t th ey have lost sight
of those broader horizons an d fu n d a­
m en tal m ovem ents w hich have been
changing th e th in k in g and beliefs of
our people.
T hese students, all on th e sam e
plane, as th e re is no distinction be­
tw een fresh m en an d seniors, from all
sections of th e country, from various
types of b anking in stitu tio n s of differ­
e n t sizes, learn th a t th ere is one com-

cussions and lectures, from 2:30 to 4:30
do n ot com plete his day. T here is th e
afternoon ath letic period of tennis,
horseshoe pitching, handball and softball. M ost of th e ping-pong is played
a fter m idnight.
T he d in n er h o u r a t 6:15 is th e clim ax
of th e day. H ere is w here all th e
pow er of perso n ality and p ersuasion is
tu rn e d on. L ectures by th e o u tstan d ­
ing econom ists and philosophers m ake
one forget th e h ard seats and lack of
sleep. One w ould have th o u g h t th is
b a n k er w ould be read y to tu rn in a fte r
such a day, b u t th e Roger Sm ith H otel
and th e F ig T ree In n are rendezvous
w hich no one w an ts to m iss. It is here
th a t friendships are cem ented th ro u g h
sp irited discussions of th e day’s lec­
tu re s and also p re se n t political, social
and economic problem s. It is here

Federal D iscount C orporation
D ubuque, Iowa

AUTOMOBILE FINANCE
T im e P a y m e n t P lans fo r
P urchasers o f A u to m o b ile s and H o u seh o ld A p p lia n c e s
m m *

SMALL LOANS
* ■ «
Branches in Iowa— Minnesota— Wisconsin
C apital, Surplus and U ndivided Profits
Exceed One M illion Dollars
■

a

m

Short Term Collateral Trust Notes

M anager

Bond Departm ent

In fo rm a tio n on R e q u e st

M inneapolis — A tlantic 8235

N orthwestern Banker

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

August 19b0

30
m on denom in ato r and th a t is, “we are
all A m ericans.” A t least 698 m en now
know th a t th e re is a real resp o n sib ility
placed on th em as leaders in th e ir re ­
spective com m unities for th e teaching
of w h a t m u st be done to m a in ta in our
dearly b o ught rig h ts of being a free
people.
These m en know th a t to re ta in even
th e ir bread and b u tte r jobs as b a n k ­
ers, rig h t th in k in g on th e p a rt of th e ir
custom ers is m ost im p o rtan t. Most of
these stu d en ts, if not all, w ill do th e ir
p a rt in b rin g in g back to th e ir com ­
m unities a desire to th in k th in g s
th ro u g h to factual and tru th fu l conclu­
sions.

H O W R E D E C O R A T IN G
IM PROVED A LO A N
(C ontinued from page 17)
ond d ru g store had th e run-dow n look
th a t can come only from extrem e neg­
lect. P ain t w as dulled to th e point of
being nondescript and w as peeling off
in spots. A n aw ning th a t w as little
m ore th a n a sh red w ould have been
b e tte r left rolled up out of sight. The
in te rio r of th e store w as dark, dingy,
and ap peared du st laden. T here w asn ’t
a p a rt of th e w hole store th a t show ed
any life and this w as especially tru e in
th e region of th e cash register.

FEDERAL
INTERMEDIATE
CREDIT BANK

CONSOLIDATED
DEBENTURES
Exempt from all Federal, State, municipal and local taxes
Legal Investment for savings banks in various States,
including New York
Eligible for purchase by the Federal reserve banks in
maturities not exceeding 6 months
Acceptable as collateral security for 15-day loans by the

Federal reserve banks
Eligible as security for fiduciary, trust and public funds
held under the authority or control of officers of the
United States
A pproved as security for deposits of postal savings funds
. . , Debentures are offered through recognized
security dealers and dealer banks. Inquiries should
be addressed to the Fiscal Agent or to dealers.

Charles R. Dunn, Fiscal Agent
31 Nassau Street
THE

F E D E R A L IN T E R M E D IA T E

Springfield, Mass.
Baltimore, Md.
Columbia, S. C.
Louisville, Ky.

N orthw estern Banker

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

N ew York, N . Y.

New Orleans, La.
St. Louis, Mo.
St. Paul, Minn.
Omaha, Neb.

August 19!lQ

C R ED IT B A N K S

Wichita, Kan.
Houston, Tex.
Berkeley, Cal.
Spokane, Wash.

In th e ensuing few m inutes of ob­
servation I saw clearly ju st w hy this
p a rt of th e b a n k ’s in v estm en t had gone
aw ry. A fter view ing th e dull, really
decrepit and depressing appearance of
th e w alls and ceiling, as w ell as th e
shelves and fixtures and th e in terio r in
general and talk in g w ith th e ow ner for
a sh o rt tim e, m y antagonism retard ed
and I becam e aw are of a th o u g h t th a t
w as try in g to m ake itself a p p aren t to
me. T his m an w asn ’t w holly a t fault
for th e condition of his indebtedness to
th e bank. He w a sn ’t en tirely at fault
because his business proceeds left no
su rp lu s w ith w hich to clear aw ay the
note. No—th e real fau lt lay w ith me
and the sp irit of leth arg y w ith w hich I
had conducted th e en tire transaction.
If I had b u t left m y com fortable office
and p roperly investigated th a t loan be­
fore passing on it I could have p re­
vented a g reat sh are of th e trouble we
w ere both in. T he fau lt w as one of
om ission on m y p a rt ra th e r th a n one
of com m ission on his part.
In th a t realization I determ ined to
try and rig h t th e m atter. T he ow ner
and I w en t over an in v en to ry sheet;
w e calculated his assets and poten tial­
ities; we m ade an ap p raisal of th e ex­
p en d itu re necessary to p u t th e store
back in first class shape w ith th e aid
of a p ain tin g contractor. The contrac­
to r called in a w om an from his office
versed in color and its relation to com­
binations th a t produce psychological
effects on prospective custom ers, th a t
is, placing th em in a buying fram e of
m ind, and selections w ere made. We
sta rte d w ork at once, as w ith th e new ­
ly developed “no p ain t odor” covering,
business could continue.
The tran sfo rm atio n caused th e usual
furore th a t such th in g s do in sm all
tow ns. W ith in a sh o rt tim e th e place
w as practically unrecognizable and th e
u p tu rn in business w as am azing to the
ow ner and in reality to us at th e bank
also. Today th a t m an has a su b stan ­
tial, well founded, progressive b u si­
ness and th e bank has become m erely
a place to deposit m oney and seek
counsel reg ard in g investm ents. And,
all this done w ith no h arm to th e other
store in the w ay of trade. Today we
have tw o prospering, w ide aw ake drug
stores, w here before w e had only one.
Concluding his sto ry th e banker
tu rn e d to me and said, “The sto ry of
these tw o m en has a double b arreled
parable. It proved to me th a t no m at­
te r w h at th e business m ay be, w h eth er
it is a lum ber yard, clothing store, shoe
shop, re sta u ra n t, bakery, hard w are
store, or a dru g store, th e value of
m aintenance of a place of business de­
pends on th e condition in w hich it is
kept. Judicious use of p ain t at fre ­
q u ent enough in terv als to assure a
(T u rn to nex t page, please)

31

N EBRASKA
IN V E S T M E N T

BANKERS

A S S O C IA T IO N

HOW ARD BUFFET
President
Omaha

CECIL W. SLOCUM

K-SAR-BEN in Ju ly re tire d a n ­
o th er $100,000 of bridge bonds,
m ak in g a to tal of $300,000 re tire d
since th e civic o rganization took over
th e Douglas stre e t bridge betw een
O m aha an d Council Bluffs tw o years
ago.
In addition, im provem ents costing
$265,000 have been paid for, out of
incom e.
T he c u rre n t p ay m en t re ­
duced indebtedness to $2,050,000. A n­
o th er su b sta n tia l p ay m en t is contem ­
p lated for th e end of th e year, ac­
cording to P re sid e n t A. A. L ow m an
of th e Ak-Sar-Ben B ridge A ssocia­
tion.

A

M ore th a n 28,000 N ebraska farm ­
ers and stockm en w ill benefit directly
from action of congress in continuing
reduced in te re st ra te s on farm loans,
according to C harles McCumsey, p re s­
id en t of th e F ed eral L and B ank of
Omaha.
The new law re ta in s for tw o y ears
th e special ra te of 3% p er cent on
lan d b an k loans and reduces th e ra te
on land b an k com m issioner loans to
a new low of 3% p er cent for tw o
years.
M cCumsey estim ated th e m em berb o rro w ers in N ebraska w ill save a
to tal of $3,937,000 in in te re st charges
d u rin g th e n e x t tw o y ears as a re su lt
of th e continued low rates. T his is
an average saving of about $141 per
farm er-borrow er.
O bjections to A tto rn ey Ross N ew ­
k ir k ’s appraisal, w hich listed an ad­
ditional $158,958 for in h eritan ce tax
purposes in th e Sadie L. H ayden es­
ta te of Omaha, w ere filed recen tly in
O m aha by Lucille H. M adden, s u r­
viv in g ex ecu trix of th e estate, th ro u g h
h e r atto rn ey , W. C. F raser.
The objections stated th e app raisal
did n o t reflect th e facts. A t th e sam e
tim e, C ounty A tto rn ey E ng lish filed
an application asking C ounty Judge
C raw ford to fix th e in h eritan ce tax
on th e alleged additional estate.

Secretary

T he N ew kirk rep o rt listed as part
of th e estate an undivided one-third
in te re st in a m ortgage on a F o rest
Hills, New York, p ro p erty w orth
$123,994.
Mr. and Mrs. A ndrew K opperud
and th e ir daughters, M ary Jan e and
Della, left in Ju ly for a to u r of the
Black Hills. T hey stopped at Y ank­
ton, South D akota, to v isit form er
O m ahans, Mr. and Mrs. E. R. H eat­
on. On th e ir re tu rn , Miss Della w as
to stop at Camp Cheley, near E stes
P ark , Colorado, for a stay of five
weeks.
Miss M ary Jan e has com pleted h er
sophom ore y ear at V assar college.
Miss Della has finished h er fresh m an
y ear at Iow a State college.
A recent guest of Mr. and Mrs.
A. C. P o tte r in Om aha w as Mrs. F red
Bate, w ife of th e E u ro p ean new s di­
recto r of th e N ational B roadcasting
com pany. Mrs. Bate cam e from L on­
don in June. Mrs. P o tte r and Mrs.
Bate w ere girlhood friends. D uring
h e r Om aha stay, Mrs. Bate h eard h er
h u sband broadcast from London.
Mrs. P o tte r and Mrs. Bate w en t by
plane to M inneapolis for a v isit and
Mr. P o tter followed by m otor to visit
Mrs. P o tte r’s sister, Mrs. Lucian
Strong, and Mr. Strong.
In July, th e P o tters, w ith th e ir
daughter, Diane, and son, Tony Boalt,
w ent to Tepee Lodge ranch, 18 m iles
n o rth of Sheridan, W yom ing, for a
vacation of a m onth. Mr. P o tte r is
head of B u rns-P otter & Com pany of
O m aha and Lincoln.

H O W R E D E C O R A T IN G
IM PROVED A LO A N
(C ontinued from page 30)
clean, airy, up to th e m inute in terio r
and exterior w ith color schem es th a t
prom ote, ra th e r th a n re ta rd good feel­

ings w ith a custom er, spells th e suc­
cess or failure of an enterprise. Not
flam buoyant, wild colors, b u t com bina­
tions th a t have been proven a m ental
stim ulus. Use them and you w ill see
the resu lts in the cash reg ister and
yo u r b ank balance.”
“If m ore m en in banking in stitu tio n s
w ould get out of th e ir offices and m ain­
tain a closer contact w ith th e accounts
th ey are doing business w ith, th en er­
ro rs such as the one I m ade w ould be
m ade m ore ra re or elim inated entirely.
I w ish it w ere possible to get th is m es­
sage to o th er bankers, for th e ir erro rs
m ay not end as m utually p leasant as
m ine did.
T h at is one m an ’s illu stratio n of
“The Value of P ain t in Sales Prom o­
tion.” T here are hu n d red s m ore th a t
I could give b u t th is one proved a
double error, in th a t it show ed th e
necessity of b an k ers’ contact w ith
th e ir custom ers also. T hat banks be­
lieve in th e psychology of color can be
proven by th e tren d s of th e tim es
tow ard changing from custom ary au s­
te rity in th e ir in stitu tio n s to light
shades th a t prom ote efficiency and con­
sider th e m ental reactions of th e ir
custom ers.

L

a

m

s

o

B

r

o

s

.

& Co.

E s t a b l ish e d 1874

141 W. Jackson Blvd., Chicago
50 Broadway, New York
Our b ra n ch o ffic e s are
equipped to render com ­
p le te b ro k era g e serv ice
in the handling of grain
(cash and futures),
stocks, bonds, cotton and
provisions. Private wires
direct to all m arkets.
BRANCH OFFICES

New Y ork, N . Y .

B uffalo. N . Y.
Cedar R a p id s, Iow a
D a ven p o rt, Iow a
D e s M oin es, Iow a
D ubuque, Iow a
F o rt D odge, Io w a
Iow a F alls, Iow a
M arsh alltow n , Iow a
M ason C ity . Iow a
S iou x C ity , Iow a
S torm L a k e, Iow a
W a terlo o , Iow a
F ran kfort, Ind.
L a F a y e tte , Ind.

M in n eapolis, M inn.
S t. P au l, M inn.
K an sas C ity , M o.
S t. L o u is, M o.
O m aha, N eb.
L in coln , N eb.
B loom in gton , 111.
D e K a lb , 111.
G ilm an, III.
G alesbu rg, 111.
La S a lle, 111.
P eoria, 111.
Q uin cy, III.
M uskogee, O kla.

M EM BERS OF LEADING SECURITY
an d COM M O DITY EXCH ANGES

N orthwestern Banker

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

n

August 19 W

32

/ttìn sieA ta the. fteedU
& j a Q n ecU

AtyUcuttusuil


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

(M e m b er F ederal D e p o sit Insu ran ce C orporation )

33
and is conducted, and w hy. A lto­
g eth er too m uch m isu n d erstan d in g on
b anking practices and procedure and
economics is p rev alen t in th e m inds
of th e people generally. L e t’s lift th e
veil of m y stery th a t has been hanging
over our business. L et’s tell th e w orld
about it ourselves, in a w ay th a t it
u n d erstan d s.”

NEBRASKA
NEW S

Dies in California
O. C. NEUM A N N
President
Oakland

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

Public Relations Program
The E d u catio n and Public R elations
C om m ittee of th e N ebraska B ankers
A ssociation, consisting of W. N. M it­
ten, ch airm an, and T. F. Green, and
R. K. H ancock, is seeking to establish
a p ro g ram to help N ebraska b an k ers
build good w ill for th e ir b anks in th e
several com m unities th ro u g h o u t th e
state.
As a sta rte r, th e com m ittee has is­
sued a p am p h let to each m em ber, en-

titled “How to Sell Your B ank”, m ean­
ing how to sell it to custom ers and
th e public. Inform ation contained in
th e booklet is m ost in terestin g and
should go a long w ay to stim ulate th e
desired results.
In a le tte r to ban k ers of th e state,
th e com m ittee says:
“It is our hope th a t we may, th ro u g h
y o ur cooperation, p resen t to th e peo­
ple of your com m unity actual facts of
how th e b an king business operates

Jo h n Crosby, form er W inside b an k ­
er, died at W ilm ington, California, at
th e hom e of his sister, Mrs. H. I. Mil­
ler, on Ju ly 14. Mr. Crosby w as an
official of th e first W inside bank. He
is survived by his daughter.

Dies in Chicago
W ord has been received in Cedar
R apids of the death of A ustin J. Lindstrom , 58, of Chicago, and a form er
resid en t of Cedar Rapids.
Mr. L indstrom lived th ere about 35
y ears ago, w hen he w as a ssistan t cash­
ier of th e S. S. H adley Com pany Bank.
He died at th e E v an sto n H ospital of

W hat Nebraska Statements Show
JU N E 29,

1940

The N orth w estern B an ker is pleased to p u blish Bank Statem en ts received before going
to press— p u t us on yo u r m ailing list and send us you r statem ents im m ediately after
each call. If you r bank is not included in th e list below it is because Y O U d id not send
in you r statem ent. Please do so next tim e.
BANK
TOWN
CASHIER
Capital
A llia n ce................ . .A lliance N ational ........................ .. .
$
75,000
A llia n ce................ . .Guardian State ................................
125,000
B eatrice................ ..B eatrice N a tio n a l............................
100,000
C larkson............. .. Clarkson Bank ........................ .. . . ,
40,000
Colum bus............., . Central N ational ............................
100,000
Fairbury............. . . First N ational .................................
150,000
F airm on t............. . .Farmers State ...................................
25,000
100,000
F r e m o n t............ . . Stephens N ational . ........................ ........ I. G. E dloff...............
50,000
Gordon. . . . . . . . . . .First N ational ..................................
100,000
Grand Isla n d . . . . .Commercial N ational ...................
. . . . F. J. C leary...............
200,000
Grand I s la n d ... .F irst N ational ..........................
100,000
Grand I s la n d ... . .Overland N ational ........................ .
25,000
H artin gton. . . . . , Bank of ..............................................
100,000
H a stin g s............. . . City N a t io n a l...................................
120.000
H astings. ............ .H astin gs N ational ........................
40,000
H ebron................. .. Thayer County .............................. ___ H. R. K illin ger..........
75,000
K earney............... . Fort Kearney S ta te ........................
25,000
K enesaw ............. Adams C o u n t y ...................................
15,000
K eystone............. Bank of .............................................. ___ T. B. C ole...................
Farmers State .................................
10,
K ram er...............
35,000
L ex in g to n ........... Farmers S t a t e .................................
634,000
L in coln ................ Continental N ational .................
F irst N ational .................................
1,000,000
L in co ln . . . . . . . .
350,000
N ational Bank of C om m erce... ___ B. G. C lark..................
25,000
.
First
N
ational
...........
..............
..
Loup C ity ...........
75,000
McCook................ First N ational . . . . . . . . . . . . . . . .
50,000
The Farm ers B a n k ..........................
50,000
Otoe County N a tio n a l....................
100,000
N ational Bank o f ..........................
100.000
First N ational . ............. .................
100,000
McDonald State ... ............................. . . . L Y. C astle.............
. 1,500,000
First N ational . .
......................
500.000
Live Stock N a t i o n a l .............. ..
. 2,000,000
Omaha N ational .............................
200,000
Packers N ational ..........................
570,000
Stock Yards N a t io n a l.................
. 1,100,000
U nited States N a tio n a l...............
50,000
. .Plattsm outh State .........................
35,000
Stockm en’s N ational ................... . . . . Edw. B. Otteman . .
100,000
. Scottsbluff N ational . . . . . . . . . . . ___ .1. L. W itters............
65,000
American N ational ..................... . . . R. F. D edrick.........
30,000
.. Spalding City .................................
62,500
. .F irst N ational ...........
80,000
. . First N ational .............................
50,000
. . .First N ational .................................
50,000
. . Wymore N ational ..........................
150,000
. . . . H. E. N ordlund. . . .
Y ork....................... . .First N ational B an k ...........
* Includes Bonds and Securities.


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

Surplus and
Profits
S
87,020
49,549
132,716
8,774
63,299
114,394
13,322
88,942
90,071
125,910
448,324
42,690
26,037
73,285
136,168
19,895
46,165
8,150
16,835
6,381
20,282
354,437
490,427
433,503
27,987
63,064
128,525
41,575
27,976
120,388
38,408
1,375,282
608,782
1,955,134
104,195
283,858
876,295
108,578
45,889
138,580
26,340
24,091
75,108
84,322
53,650
13,970
216,671

Loans and
Discounts
$ 245,426
1,253,707
1,004,200
106,956
1,020,595
1,334,803
39,429
885,652
504,212
522,692
1,288,661
499,671
307,375
724,971
1,128,812
249,614
405,812
92,610
148,436
41,833
207,857
3,885,965
3,367,657
3,901,111
241,327
528,573
334,360
317,910
606,341
876,594
456,159
9,711.322
5,712,237
13,751,449
1,572,212
2,738,938
5,914,457
686,511
555,830
638,765
287,352
150,849
634,329
704,375
364,494
143,821
634,518

Bonds and
Securities
S 291,539
184,079
903,976
151,578
660,457
492,993
58,055
303,194
210,950
916,760
2,739,157
271,217
54,251
835,220
866,732
87,582
185.950
54,000
35,773
19,720
54,034
4,796,771
11,304,708
3,957,000
498,495
552,717
96,100
291,833
553,046
211,640
5,840,999
4,967,700
18,329,472
454,844
2,604.140
13,355,736
265,215
178,565
131,482
237,240
18,577
138,448
259,621
97,100
189,946
769,488

Ca^h and Due
From Banks
S 1,432,320
330,568
1,193,182
80,598
847,891
633,655
135,492
740,557
211,635
610,607
857,597
352,732
219,777
500,282
803.821
101,701
863,541
52,113
95,683
12,732
171,972
3,488,967
6,859,396
4,733,599
269,017*
746,610
641,647
316,923
322,911
829,104
642,164
14,160,225
4,029,483
16,816,411
1,061,423
3,047,372
8,552.824
191,572
130,729
1,614,242
471,609
38,675
410,661
263,421
107,959
168,750
779,782

Deposits
S 1,841,766
1,582,014
2,894,642
291,179
2,366,710
2,344,259
199,934
1,744,750
790,854
1,860,590
4,326,698
986,971
538,273
1,443,815
2,579.552
393,050
1,349,500
166,539
248,116
55,871
385,908
11,317,770
20,496,643
11,426,797
452,589
1,622,830
1,351,199
657,722
1,100,126
2,037,521
1,175,106
28,535,008
13,446,819
45,577,555
2,814,288
7,641,153
26,328,414
988,316
777,673
2,172,910
928,624
164,585
1,062,112
1,123,021
406,059
439,838
1,888,475

34

•
a h e a rt ailm ent on Ju ly 9th, a fte r h a v ­
ing been ill for about a year.

New at Dalton
Guy E. E llsw o rth of R ushville a r ­
rived in D alton recen tly and assum ed
th e duties of executive officer in th e
D alton State B ank follow ing his p u r­
chase of a block of stock in th e in sti­
tution. George W. Barlow , cashier the
p ast five or six years, has re tire d and
for th e im m ediate fu tu re w ill devote
his tim e to his p ersonal in terests.

N E B R A S K A

NEWS

Mr. E llsw orth w as executive officer
in a R ushville b ank for 23 years, but
re tire d n early a year ago, following
th e sale of th e bank. Since th a t tim e
he has been looking for a location and
cam e to th e conclusion th a t th e D alton
in stitu tio n and the com m unity in gen­
eral cam e close to m eeting his desires.

President Resigns
A t a m eeting of th e board of direc­
to rs of th e L exington State Bank, Roy
F. Stuckey tendered his resig n atio n as

Guaranty Trust Company of New Y ork
„

F iftli Ave. at 44th St.
LONDON

P A R IS

1 4 0 Broadw ay
*

BR U SSELS

Madison Ave. at 60th St.

L IV E R P O O L

HAVRE

ANTW ERP

C ondensed S tatem en t o f C ond ition, Ju n e 3 0 , 1 9 4 0
This Statement includes the assets and lia b ilitie s of London and Liverpool Branches
as of Jun e 30, 1040; Paris, Havre and Brussels Branches as of April 30, 1940; and An twerp
Branch as of March 3 1, 1940.

RESOURCES
Cash on Hand, in Federal Reserve Bank, and
Due from Banks and B a n k ers.................................. $ 1,134,793,036.68
959,055,409.42
U. S. Government Obligations . . . . .
51,867,512.04
Public S e c u r itie s ...........................................
7,800,000.00
Stock of the Federal Reserve Bank . . . .
24.889,307.10
Other Securities and Obligations . . . .
388,958,340.26
Loans and Bills P u r c h a s e d .........................
9,080,480.35
Credits Granted on Acceptances...................
7,246,892.93
Accrued Interest and Accounts Receivable .
3,991,744.62
Real Estate Bonds and Mortgages . . . .

2,587,682,723.40
Bank Buildings .
Other Real Estate

11,582,091.69
1,459.209.61

Total R esources............................. .$2,600,724,024.70
LIABILITIES
D e p o s i t s .......................................$2,292,946,973.64
Checks Outstanding....................
9,847,098.96

$2,302,794,072.60
Acceptances.................................. . $15,749,931.23
Less: Own Acceptances
Held for Investm ent.....................
6,669,450.88
9,080,480.35
Liability as Endorser on Acceptances and
Foreign B i l l s ............................................................ ....
Agreements to Repurchase Securities Sold . . .
Dividend Payable July 1, 1940 .............................. «
Items in Transit with Foreign Branches and Net
Difference in Balances Between Various Offices
Due to Different Statement Dates of Some
Foreign B r a n c h e s ......................................................
Miscellaneous Accounts Payable, Accrued Taxes, etc.

681,040.00
218,000.00
2,700,000.00

221,636.76
9,389,394.80

2,325,084,624.51

Capital ..............................................$ 90,000,000.00
Surplus Fund . . . . . . . .
170,000,000.00
Undivided P r o f it s ..........................
15,639,400.19
Total Capital F u n d s .....................
Total Liabilities .

. . . . . .

275,639,400.19
$2,600,724,024.70

S e c u r i t i e s c a r r i e d a t $ 2 0 , 5 9 5 , 6 2 4 . 1 3 i n t h e a b o v e S t a t e m e n t a r e p le d g e d t o q u a l i f y fo r
fid u c ia r y p o w e r s , t o s e c u r e p u b l i c m o n i e s a s r e q u i r e d b y la w , a n d f o r o t h e r p u r p o s e s .

M em ber F ederal Deposit Insurance Corporation

Northwestern Banker

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

August 1940

•
p resid en t of t h e in stitution. Mr.
Stuckey has been associated w ith the
bank for th e p ast 33 years, having en ­
tered the banking business as an offi­
cial in 1910, w hen he becam e a p a rtn e r
in ow nership of th e old L exington
Bank. Mr. Stuckey has not announced
his plans for th e future.
Tom Reed, a p ro m in en t cattle feeder
and business m an in Lexington, has
been elected as p resid en t of th e b ank
to succeed Mr. Stuckey. J. S. VanA uken w as re-elected as vice president;
Sim Bonsall, cashier, and H. 0. B arrett,
a ssistan t cashier. I t is expected th a t
th e personnel and ro u tin e of th e bank
w ill continue as in th e past.

Sale of Assets
R em aining assets of th e old U nion
N ational Bank, F rem ont, of w hich C.
C. M arshall is sh areh o ld ers’ agent, w ill
be sold at public auction A ugust 10.
T he bank closed F e b ru a ry 3, 1933,
and M arshall w as elected sharehold­
e rs’ agent in A ugust, 1937. T here are
196 stockholders.
Since the b an k closed depositors
have been paid in full plus 7 p er cent
interest. T he in te re st totaled $42,000.
In addition, stockholders have re ­
ceived tw o dividends totalin g 16 p er
cent.

Former Banker Dies
Jo h n G. Lowe, Sr., 74, presid en t of
th e F arm ers S tate B ank in K earney
40 y ears u n til it closed in 1933, died
recen tly at his home. He w as in the
loan business.
A n ative of G reat B ritain, Lowe w as
active in civic affairs and w as p resi­
d en t of th e cham ber of com m erce in
1936. He w as also presid en t of the
state ban k ers association in 1931.
S urviving are his w ife and four chil­
dren: Mrs. K en n eth Cox, Sheridan,
W yoming; Mrs. F red erick Daly, Oma­
ha; Jo h n Jr., K earney, and Stephen,
H astings.

Falls City Meeting
The reg u lar m eeting of th e F o u rth
R egional Clearing H ouse A ssociation
w as held a t th e W eaver H otel in F alls
City.
The business m eeting w as preceded
by a d in n er at 6:30. The S tate B ank
of Stella w as rep resen ted by D. S.
H inds, E m ile N om balais, R ichard Mc­
M ullen and Mrs. K eith Cook.
The m eeting w as in honor of the
ju n io r officers and clerks of th e differ­
e n t banks. The lady em ployes w ere
especially honored an d w ere presented
corsages from th e tw o Falls City
banks.

35

W

D A L E CLARK, p resid en t of th e

. Om aha N ational B ank, has been
selected as ch airm an of an Om aha
C ham ber of Com m erce natio n al de­
fense com m ittee of business and in ­
d u stria l leaders to co-ordinate all
O m aha’s efforts to place th e city in
its p ro p er place in th e defense setups.
T he com m ittee w as nam ed by P re s­
id e n t W. C. F ra s e r of th e cham ber,
w ho said th e com m ittee w ill provide
th e leadership for a gen eral effort to
give Om aha a p ro m in en t place in th e
defense p icture, lay plans for th e m ost
efficient use of O m aha’s in d u stria l o r­
ganization, geographical location and
clim ate, n a tu ra l resources, tra n s p o r­
ta tio n facilities and labor.
De E. B radshaw , A. H. Clarke,
F ra n k J. D augherty, J. E. Davidson,
Gould Dietz, J. M. H arding, W. D.
H osford, W illiam M. Jeffers, A. A.
Low m an, F ran cis P. M atthew s, F. R.
M ullen, Sam W. Reynolds, W. H.
Schellberg, E. J. Shoem aker, Amos
Thom as.
O m aha b anks recen tly offered “full
co-operation” to w ard supplying in d u s­
tria l capital needs of th e n atio n al de­
fense program .
The Omaha C learing H ouse associa­
tio n sen t a sta te m e n t to the natio n al
defense advisory com m ission, statin g
th a t th e six n atio n al banks in th e
city “w ere p re p a re d to m ake all loans
necessary in th e ir trad e te rrito ry for
advancem ent of th e n atio n ’s defense
plans.”

SELL YOUR BANK
The “Walters” Way
Without Publicity
Qualified, carefully investigated bank
employees furnished free
T H E CHARLES E. W A LT ER S CO.
Omaha, Nebraska

Northwestern Banker


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

August 19¥)

B ro th erly co-operation has earned
law degrees, cum laude, and th e rig h t
to practice law in N ebraska for H er­
b e rt and Otto Spielhagen of Omaha.
A m alady w hich puzzled doctors af­
flicted H erb ert in 1929 and he w as u n ­
able to w alk. F o r tw o years, his
m other, Mrs. G ertrude Spielhagen,
w heeled him 14 blocks to school.
T h en
schoolm ates took him
to
C reighton Prep, from w hich he w as
g rad u ated in 1935.
W hen he decided to take up law
a t th e U n iversity of Om aha Law

School, th ere still w as the m a tte r of
tran sp o rtatio n . It w as solved w hen
Otto, six y ears his senior and a clerk
a t th e U nited States N ational Bank,
enrolled for th e sam e course. T hey
have gone to classes to g eth er for four
years. Otto, sh o rte r and slight, car­
ried H erb ert into th e ground floor en­
tran ce to th e building w here classes
are held. T here a w heel chair was
alw ays w aiting.
H erb ert finished school w ith th e
h ighest honors in his class (his av er­
age w as 90.7) and Otto w as not far
behind, w ith 90. Both passed th e Ne­
brask a b ar exam ination. Otto expects
to stay a t his job in the bank. H er­
b e rt plans to practice law in Omaha.
B oth yo u th s w ere born in G erm any.
T h eir fath er, F red erick Spielhagen, a
w ealthy cigaret w holesaler, w as killed
w hile fighting w ith th e G erm an arm y
in Russia. T h eir b ro th e r bro u g h t h er
fam ily to Om aha in 1925.
F ive principal Om aha business in ­
dicators show ed gains du rin g the first
six m onths of 1940 over the sam e pe­
riod of 1939.
A m ong th e gains w ere bank clear­
ings, 3.3 p er cent; b ank debits, 1.4 per
cent.
F o r the 12-month period ended Ju n e
30th th is year, all b u t g rain receipts
and shipm ents show ed increases over

Send U s Y o u r
G r a in a n d H a y D r a ft s
Also Other Collection Items
__________________

Prompt Presentation Made o£ All Drafts
in All Parts of the City

L ive Stock N ational Bank
Omaha
(M ember Federal D eposit Insurance Corporation)

36

•
th e previous 12-month period. Clear­
ings w ere up 4.7 p er cent, debits 2.9
per cent.
F o r th e first six m o n th s th is year,
clearings to taled $770,212,971; debits,
$844,370,131.
Om aha b an k deposits decreased
from M arch 29th to Ju n e 29th, date
of th e last b an k call, b u t loans w ere
slightly higher.
All b an k s rep o rted deposits totaling
$127,086,764, a decrease of $8,465,432
from th e record-breaking figure of

N E B R A S K A

NEWS

.

M arch 29, b u t a gain of $5,559,202 over
Ju n e 30, 1939.
B an kers said th e decrease, due
chiefly to w ith d raw als by sm aller
correspondent banks in th e territo ry ,
w as norm al.
Loan figures for th e banks w as $40,819,199, w hich w as $630,144 g reater
th a n on M arch 29th and $2,439,251
la rg e r th an a y ear ago. It w as the
h ig h est call date loan figure on record
since Decem ber, 1931, except th e De­
cem ber, 1939, to tal of m ore th a n $42,0 0 0 ,0 0 0 .

The First National Bank
of Chicago
Statem ent of Condition June 29, 1940
A S S ETS
Cash and D ue from B a n k s ,................................................ $464,2 5 3 ,4 7 1 .1 3
U nited States Obligations—Direct and fully Guaranteed,
U n p le d g e d ,.......................................$321,697,7 0 6 .5 0
Pledged—To Secure Public Deposits and
Deposits Subject to Federal Court Order, 34,35 3,897.23
To Secure Trust Deposits,
.
.
38,88 2 ,3 9 7 .2 0
395,4 8 4 ,0 0 0 .9 3
Under Trust Act of Illinois, .
.
___ 550 ,0 0 0 .0 0
7 8,077,479.23
Other Bonds and S e c u r i t i e s , .......................................
2
6
4 ,8 0 7 ,1 4 5 .8 7
Loans and D isc o u n ts,..........................................................
5 ,6 1 4,971.35
Real Estate (Bank B u i l d i n g ) , .......................................
Other Real E s t a t e , ..........................................................
1,105,245.24
1,950,000.00
Federal Reserve Bank Stock,
.
2,180,671.60
Customers’ Liability A ccount of Acceptances,
3,011,164.91
Interest Earned, not C o l l e c t e d , .......................................
Other A s s e t s , .................................................................... _______117,023.40
$ 1,216,601,173.66
LIABILITIES
$ 3 0 ,0 00,000.00
Capital Stock—Com m on,
Surplus Fund,
.
.
.
.
3 5 ,0 0 0 ,0 0 0 .0 0
Other U ndivided Profits,
5 ,0 7 5,902.09
Discount Collected but not Earned, 6 0 6,075.19
Dividends Declared, but U npaid,
600,0 0 0 .0 0
Reserve for Taxes, etc.,
1,934,586.07
Liability A ccount o f Acceptances,
2,415,278.91
Time Deposits,
.
.
.
.
$184,921,195. 80
Dem and Deposits,
.
.
.
880,286,474. 35
Deposits of Public Funds, .
.
75,515,854. U 1,140,723,524.26
Liabilities other than those above stated,
245,807.14
$1,216,601,173.66

Om aha banks w ill cooperate 100 per
cent w ith th e Douglas county food in ­
d u stry stam p com m ittee in handling
food stam ps u n d er th e new su rp lu s
com m odities d istrib u tio n plan, John
C hangstrom , vice presid en t of th e
Omaha N ational B ank and re p re se n ta ­
tive of th e banks on th e stam p com­
m ittee, said recently.
Mr. C hangstrom said th e banks w ill
accept stam ps from m erch an ts and
send them th ro u g h th e local and K an­
sas City offices and re tu rn the m oney
to them if th e m erch an ts p re fe r to
handle th e stam ps th ro u g h banks
ra th e r th a n th ro u g h th e local su rplus
com m odities office.
Mr. and Mrs. T. L. D avis left the
m iddle of Ju ly to occupy th e ir sum ­
m er hom e at Lake M iltona, A lexan­
dria, M innesota. Mr Davis is p re si­
dent of the F irs t N ational B ank of
Omaha.
W allace E. Spear, tru s t officer of the
F irs t N ational Bank, and his daugh­
ter, B arbara, left in Ju ly for th eir
sum m er hom e at M iltona and w ere fol­
lowed the nex t w eek by Mrs. Spear
and th e ir o th er daughter, Sara.
Mr. and Mrs. L aw ren ce B rin ker also
have gone to th e ir sum m er residence
at th e sam e resort.
Mr. and Mrs. H arry E. R ogers and
children, Billy, Douglas and M arilyn,
w ent to P a rk Rapids, M innesota,
w here th ey planned to spend several
weeks.
Mr. R ogers in a U nited
States N ational B ank of Om aha ex­
ecutive. T hey spent several days at
Lake Okoboji en ro ute n o rth and also
planned to stop at M inneapolis.

A Pueblo, Colorado, m an, recently
sentenced in Om aha to 30 days in jail
on a vagrancy charge afte r police dis­
covered he had tak en $550 from a
niece in Pueblo, had opened a bank
account in Omaha, to u red real estate
offices and fu rn itu re stores, prep arin g
to purchase an “expensive house and
fu rn ish in g s.” He also ordered an ex­
pensive car, applied for m em bership
in th e Omaha A thletic Club, telling
club officials he w as a “re tire d b an k ­
er.”

YOUR STATE BANKERS ASSO CIATIO N
O FFICIA L SA FE, V A U L T AN D
TIMELOCK EXPERTS

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

Northwestern Banker

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

August 19^0

37
m ade p er ban k w as 1,217 and the av er­
age new loan w as $600.
The average n um ber of renew als per
bank w as 874 and th e average renew al
w as for $907.
The average n um ber of m ortgage
loans p er bank w as 15 and th e average
m ortgage w as for $1,490.

INCOLN b an k clearings for th e first
half of 1940 exceed $73,000,000 and
are $7,000,000 g re a te r th a n for th e first
half of 1939.
The to tals w ere announced by Don
Cozad, se cretary of th e Lincoln C lear­
ing H ouse Association.
June, 1940, had clearings of $13,259,053 as com pared w ith $11,598,119 for
Ju n e a y e a r ago. The to tal for May,
1940, w as $13,441,797.
E x act to tals for th e first six m onths
th is y e a r and last are: 1940—$73,609,279; 1939—$66,798,390.

L

T hirty-six p er cent of N eb rask a’s
com m ercial b anks m ade m ore th a n
326,000 loans to talin g over $239,000,000
to business firm s and individuals
th ro u g o u t th e state d u rin g th e y ear
1939, according to th e second sem i-an­

nu al survey of b ank lending activity of
th e A m erican B ankers A ssociation re ­
cently m ade public.
The survey, w hich w as p articipated
in by 155 banks, or 36 p er cent of the
423 com m ercial banks of th e state,
show ed a definite expansion of bank
credit in th e field of new loans. The
n u m ber of new loans m ade betw een
Ju ly 31st and Decem ber 31st w as 6,646
g reater, or 7 p er cent g reater, and the
dollar volum e of new loans m ade d u r­
ing this period w as $6,432,510, or 12 per
cent g reater th a n rep o rted by an equiv­
alent n um ber of banks for th e previous
six m onths.
The 155 banks rep o rted th a t during
1939, th ey m ade 188,646 new loans to ­
taling $113,268,940; 135,421 renew als of
loans to taling $122,766,941; 2,339 m o rt­
gage loans totaling $3,484,837.
The average n u m ber of new loans

T. E. S teven s filed a m otion w ith the
suprem e court recently, asking for a
reh earin g of the case w hich involves
E. H. L uikart, receiver for th e State
B ank of Blair. L u ik a rt lost in the
low er court and on his appeal to the
suprem e court the decision w as re ­
versed. Stevens is now asking for a
rehearing. The question involves the
liability of the ow ner of a stock certifi­
cate and w h eth er th e liability is fixed
at th e tim e th e b ank is tak en over or
w hen th e bank is found to be insol­
vent.
The state banking d ep artm en t a n ­
nounced a final p aym ent of 15 p er cent
in th e liquidation of th e Security State
B ank of Law rence, w hich w en t into
receivership last October. The b ank
had previously paid 85 p er cent, m ak ­
ing th e total am ount 100 p er cent or
$79,970.
D epositors received p aym ent of th e ir
in terest claim s on tim e deposits and
th e rem ain d er of the m oney w as paid
over to the F ed eral D eposit Insu ran ce
C orporation, w hich had previously
paid off depositors last Novem ber.
P ay m en t in full in less th a n six
m onths, as in th is case, is u n u su al and
indicates th a t th e ban k w as not in bad
condition at the tim e of closing.

H otel
"Constructive "

W ellington

C ontinental N ation al B an k co rresp o n d ­

W e are happy to list among

ent service is con stru ctive.

our regular guests, a large num ­

By h e lp in g

you m eet tod ay’s p ro b lem s, it also b u ild s

ber of the banking fraternity.

fo r tom orrow .

You too w ill thoroughly enjoy
our Courtesy and H ospitality.
S u rp risin g ly R easonable R a tes
Rooms With Bath

$2.00— $2.50
Farnam at 18tli Street
OMAHA


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

(

o n tin jhtal

N ational

B an k
LIN C O LN
Member Federal Deposit Insurance Corporation

Northwestern Banker

August 19k0

38

•
Bankers Meet
T he A ntelope C ounty B ankers As­
sociation m et a t N eligh recen tly for a
business m eeting. H. D. M iller w as
elected p resid en t and Oscar K rohn of
N eligh secretary. E w ing b an k ers w ere
invited guests.

N E B R A S K A

N E WS

perience in th e bank, in portions of
1934, 1935 and 1936. He is a graduate
of th e U n iversity of N ebraska w here
he m ajored in business adm in istratio n
and accounting. W hile in Lincoln he
w as em ployed in th e accounting offices
of D ana Cole.

Another Payment

Assistant Cashier
Follow ing th e sem i-annual m eeting
of th e board of d irectors of th e C urtis
State Bank, R. Scott W ilkinson w as
nam ed assista n t cashier.
Mr. W ilkinson has h ad previous ex-

R ecently th e F arm ers State B ank of
S argent began th e d istrib u tio n of
checks for the seventh 10 per cent
paym ent on w h at has been called the
D epositors’ Pool R ecovery Account.

*
It w ill be recalled th a t th is b an k
closed its doors on F e b ru a ry 1, 1932.
T he stockholders w ere determ ined to
reorganize th e b ank in such a w ay th a t
th e depositors w ould u ltim ately be
paid in full on th e ir deposits and th a t
th e ban k could be reopened for busi­
ness as quickly as possible. U nder th e
direction of th e state b anking board a
plan w as devised by w hich this w as
done.
As each ID per cent paym ent
am ounts to n early $11,600, th e total
paym ents m ade by th e b an k on th e
D epositors’ Pool R ecovery A ccount
am ounts to about $81,000. T his leaves
nearly $35,000 to be paid yet.
T he m anagem ent of th e bank, th a t
is th e officers, th e directors and th e
stockholders of th is bank, are to be
congratulated for w h at th ey have ac­
com plished since the b an k w as re ­
opened n early eight years ago.

Low Interest Rate
‘The Bank at the Y ards’
D IR E C T O R S
O F F IC E R S
C. L. Fredricksen, P resident
M. A. W ilson , V ice President and Cashier
W . G. N elson, A ssista n t Cashier
W . C. Schenk, A ssista n t Cashier
L. W . Ross, A ssista n t Cashier

C. R. M cK enna, President, Johnson B isc u it Co.
B. L. Sifford, A ttorney, Sifford & W adden
G. F. Silknitter, President, Sioux City
Stock Yards Company
C. L. Fredricksen, President
M. A. W ilson , V ice President and Cashier
H. C. B osw ell, Secretary-Treasurer,
W estern Contracting Corporation

LOCATION -AND SPEED
The sp eed y o u obtain w h en this bank h an d les
your grain, h a y and liv e stock item s in Sioux
City is m erely routine in Live Stock N ational
Bank service. A liv e stock shipm ent from your
com m unity can b e credited to your account on
the d a y of sa le.

The reason is our ground floor

Dividend

location in the Stock Yards district.
W e invite y o u to u se our correspondent facilities
. . . and benefit from our strategic location here
in Sioux City.

LIVESTOCK

- U

NATIONAL I
S io u x City, Iow a
Member Federal Deposit Insurance Corporation

Northwestern Banker


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

F a rm e rs and stockm en in F ro n tie r
county w ill save b etter th a n $54,672
in th e nex t tw o y ears as a re su lt of
th e continuation of special in te re st
rates on F ed eral L and B ank and land
ban k com m issioner loans, according to
B rett W. Simonds, secretary -treasu rer
of th e N ational F a rm L oan Associa­
tions at McCook, N ebraska.
Sim onds announced th a t a new law
passed by Congress, reta in in g th e spe­
cial rates of 3% per cent on land b an k
loans and reducing th e ra te on com­
m issioner loans to 3V2 p er cent, w ill
directly benefit 411 F ro n tie r county
farm ers and livestock operators.
On th e average th is m eans a saving
of about $132 in th e in terest bill of an
individual borrow er over th e n ex t tw o
years.

August Í9W

D irectors of th e N ebraska S tate
Bank, W eeping W ater, held th e ir sem i­
an n u al m eeting, declaring th e reg u lar
stock dividend. A re p o rt th a t busi­
ness for th e first half of th e y ear had
been satisfactory cam e out of th e
m eeting.

Placek Returns
E. E. Placek, presid en t of th e F irs t
N ational Bank, W ahoo, re tu rn e d hom e
last m onth from a com bined business
and honeym oon trip w ith Mrs. Placek.
T hey drove to Canada, U tah and
Seattle. W hile in Seattle th ey visited
Oscar Lindercam p, form erly of W a­
hoo. On th e ir w ay back, Mr. Placek
gave one of th e m ain speeches at th e
Colorado B ankers A ssociation conven­
tion, held at E stes P ark.

39
C harles W. C hristen, Roscoe, w as
nam ed to a three-year term on the
b anking com m ission, succeeding H. N.
Thom son, Presho.

SOUTH

Semi-Annual Meeting

D A K O T A

F. F. PHILLIPPI
President
Milbank

NEW S

Bank Celebrates
The N o rth w est S ecurity N ational
B ank, Sioux Falls, larg est b an k in g in ­
stitu tio n of th e state, observed its 50th
a n n iv e rsa ry last m onth.
F re d H. H ollister, p resid en t of th e
in stitu tio n , also had occasion to cele­
brate, for he has been continuously
connected w ith th e b an k as e ith e r an
officer or d irecto r th ro u g h o u t th e en ­
tire 50-year period.
H o llister and his b ro th er, W. C. H ol­
lister, w ere tw o of th e original in co r­
p o rato rs of th e bank. The c h a rte r w as
g ran ted J u ly 8, 1890.
In those days th e b an k —th e State
B anking and T ru st Com pany, as it w as
first nam ed—w as located a t 120 W est
N in th Street, in th e five-story building
w hich th e H ollisters erected.
In 1916 it m oved into its p re se n t sixsto ry home, w hich th e b an k itself
owns.
On Ju n e 11, 1912, th e nam e of th e
b an k had been altered slightly to th e
S tate B ank and T ru st Com pany, and
on Ju ly 28, 1914, it w as changed to th e
S ecurity N ational B ank of Sioux Falls.
On F e b ru a ry 21, 1929, th e nam e w as
changed to th e S ecurity N ational B ank
and T ru st Com pany of Sioux Falls,

GEORGE M. STARRING
Secretary-Treasurer
Huron

and on A ugust 31, 1935, th ere w as an ­
o th er change, to its p resen t nam e.

New Bank
The opening of th e new b ank at
A lexandria as an expansion of th e Se­
c u rity State B ank of E m ery w as well
received by th e business m en and the
people in general in A lexandria and
vicinity, according to C. T. Coyne,
cashier, w ho has personal charge, and
th e outlook is b rig h t for one of the
stro n g est and safest banks in th e state,
and w ith continued crop im prove­
m ents the new b an k w ill enjoy its
sh are of prosperity.

Appointments
G overnor B ushfield has filled vacan­
cies on th e engineering and arch itec­
tu ra l exam iners board and th e state
b an king com m ission.
A ppointees to four-year term s on
th e engineering board are Carl Jo h n ­
son, Clear Lake; Jam es H. Lake, R apid
City; H. B. Blodgett, Brookings, and
W alter J. Dixon, M itchell. T hey suc­
ceed W. R. Edgington, Pierre; J. O.
K am m erm an, R apid City; C. T. T rim ­
m er, M adison, and George Hugill,
Sioux Falls.

The sem i-annual m eeting of the
board of directors of th e B ank of K im ­
ball w as held at K im ball recently, w ith
the follow ing directors in attendance:
M. P lin Beebe and Lloyd C ronholm of
Ipsw ich, L. M. L arsen of W essington
Springs, Mrs. J. H. D rips of G ann Val­
ley and R. A. Johnson of Kim ball.
The directors also w ent to P ukw ana
to look over the new exchange office
a t th a t place, w hich is in charge of
Mr. L arson of P ukw ana.

Assistant Cashier
At a recen t m eeting of the board of
directors of th e Com m ercial T ru st and
Savings Bank, M itchell, Miss H azel
Stebbins w as nam ed a ssistan t cashier,
it w as announced by H. R. Kibbee,
president. Miss Stebbins fills th e posi­
tion fom erly held by P hil Thom pson,
w ho left several m onths ago for N e­
braska.

Making Loans
Forty-six p er cent of South D akota’s
com m ercial banks m ade m ore th an
196,000 loans to taling over $60,000,000
to business firm s and individuals
th ro u g h o u t th e state du rin g th e year
1939, according to th e second sem i-an­
nu al survey of bank lending activity of
th e A m erican B ankers A ssociation
m ade public last m onth.
The survey, w hich w as particip ated
in by 77 banks, or 46 per cent of the
165 com m ercial banks of th e state,
show ed a definite expansion of b ank
credit in th e field of new loans. The
nu m b er of new loans m ade betw een

W hat South Dakota Statements Show
JU N E 29,

1940

The N orth w estern B an ker is pleased to pu blish B ank Statem en ts received before going
to j)?~ess— pu t us on you r m ailing list and sen d us you r statem ents im m ediately after
each call. If you r bank is not included in th e list below it is because Y O U d id not send
in your statem ent. Please do so next tim e.
TOWN
BA NK
A berdeen.................Aberdeen N a tio n a l.......................
A berdeen............... First N ational ............................
C enterville..............The Bank o f ..................................
Lake P resto n ........Community S ta te ..........................
M ilbank................. Dakota State ...............................
M itchell................... M itchell N a tio n a l.........................
P ierre.......................First N a tio n a l................................
Rapid C ity ..............First N ational of Black Hills
Sioux F a lls........... First N ational Bank & Trust
Sioux F a lls ........... N orthw est Security N ational.
V erm illion............. Citizens Bank & T ru st...............
W atertow n.............Farmers & M erchants................
Y ankton..................First Dakota N a tio n a l...............


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

CASHIER
. . Clayton Walker . . . .8
. . J. E. K och...............
. .l o h n N. Thomson.
. . Gordon Maxam . . ,
. . F. F. P h illip p i. . . .
. . J . N . Shelby.............
. L. L. B ranch...........
. . Noel W. K lar...........
. . W. E. Perrenoud . .
. . J. V irgil Lowe. . . .
. . F. E. B ow m an.........
. .S . B. C rothers.........
. H. C. D anforth . . . .

Capital
100,000
400,000
50,000
25,000
25,000
120,000
50,000
675,000
385,000
800,000
50,000
50,000
100,000

Surplus and
Profits
$ 161,161
133,432
9,747
40,845
15,094
30,144
17,025
417,324
262,602
263,200
18,414
49,477
58,083

Loans and
Discounts
$ 576,015
2,137,421
277,638
186,876
260,718
629,000
201,632
5,323,407
2,451,852
5,289,381
328,510
452,927
541,041

Bonds and
Securities
$ 1,380,943
1,858,058
87.009
104,021
80,800
314,886
244,299
3,419.268
2,235,107
3,047,715
100,025
350,762
330.628

Cash and Due
From Banks
$ 598,986
1,606,275
170,326
100,587
68,636
546,811
201,755
2,185,955
1,831,644
2,975,192
138,083
262,683
636,970

Northwestern Banker

D eposits
$ 2,359,467
5,259,869
479,953
338,165
372,403
1,394,885
591,555
10,058,963
6,057,269
10,686,368
528,130
981,930
1,413,558

August 19k0

40
N ational F a rm L oan A ssociations, h a v ­
ing charge of th e servicing of F ederal
L and B ank loans, real estate and real
estate sales, in th e counties of T ripp,
Gregory, and p a rts of M ellette and
Todd.
F o rm erly he practiced v eterin ary
m edicine in th e tow n of Colome, and
for th e p ast eight y ears has been con­
nected w ith th e E m ergency Crop and
Feed L oan Division of the F arm Credit
A dm inistration, in a supervisory ca­
pacity, trav elin g th e en tire state of
South D akota and th e w estern U nited
States.

At Rapid City

T he B u rk e S ta te B a n k opened a n office a t B o n e stee l n o t long ago, a n d la s t m o n th
m oved in to new q u a rte rs in th e old D a k o ta S ta te B a n k b u ild in g . H a rv e y W il­
lo u g h b y is th e office m a n a g e r, a ssiste d b y his w ife . T he p ic tu re above w as ta k e n
in th e new q u a rte rs , a n d re a d in g fro m le f t to rig h t, th o se a p p e a rin g a re : L. L.
L illib rid g e , p re s id e n t of th e B u rk e S ta te B a n k ; E rlin g H au g o , S o u th D a k o ta
su p e rin te n d e n t of b a n k s ; H a rv e y W illo u g h b y , m a n a g e r B o n e stee l office; M rs.
S p itz e n b e rg e r, an a s s is ta n t; M rs. W illo u g h b y (h e r b a c k to th e c a m e ra ); a n d
A r th u r P re tty m a n , a fa rm e r custom er.

Miss Cecelia H aw kins, a grad u ate
and valedictorian of the F o rt P ierre
high school class of 1939, has accepted
a position as sten o g rap h er of the F irst
F ed eral Savings and Loan A ssociation
of R apid City. She received h er busi­
ness tra in in g a t th e Black H ills Com­
m ercial College and secured th e posi­
tion th ro u g h the em ploym ent d ep art­
m ent.

Low Rate Continues
Ju ly 31st and D ecem ber 31st w as 27,347
greater, or 48 p er cent g reater, and th e
dollar volum e of new loans m ade d u r­
ing th is period w as $8,737,478, or 74
per cent g re a te r th a n rep o rted by an
equiv alen t n u m b er of b anks for th e
previous six m onths.

A Good Job
South D akota b an k s did an excellent
job of financing th e p u rchase of breed
and h erd livestock d u rin g 1939 and
1940, according to R. M. D ePuy, of
Brookings, ch airm an of th e South Da­
kota B ankers Association.

R etu rn s from less th an half of the
b an k s in th e state in a survey con­
ducted by th e com m ittee, says DePuy,
show th a t th e banks financed farm ers
in th e purchase of 8,902 reg istered a n i­
m als and 242,055 grade or h erd anim als.
T he am ount of m oney loaned for the
purpose totaled $3,317,014, or an av er­
age of m ore th a n $40,000 for th e 82
rep o rtin g banks.

Loan Manager
R ecently Carle B. L en k er took up
his d uties as secretary -treasu rer of the
W in n er C roup M anagem ent U nit of

Out-of-TownHanks
O ut-of-tow n banks and bankers w ill find here
com plete banking fa cilities for prom pt and
economical handling o f accounts in Chicago. We
would appreciate the opportunity of serving you.

F a rm e rs and stockm en in M inne­
haha, McCook and p a rts of adjoining
counties serviced by th e Sioux Falls
group m anagem ent u n it of national
farm loan associations, w ill save b e tte r
th a n $220,622 in th e nex t tw o y ears as
a re su lt of th e continuation of special
in terest rates on federal land b ank and
land ban k com m issioner loans, accord­
ing to H. D. M cKinnon, secretarytreasu rer.
Mr. M cK innon announced th a t a new
law ju st passed by Congress, retain in g
th e special rates of 3% p er cent on
land b ank loans and reduciog th e rate
on com m issioner loans to 3% per cent,
w ill directly benefit 1,257 farm ers and
livestock operators in th is vicinity.
On th e average th is m eans a saving
of about $186 in th e in te re st bill of an
individual b o rrow er over th e nex t tw o
years.

New Office
A u th o rity has been given the Ips­
w ich S tate B ank to establish a b ank
office at Leola, E rlin g Haugo, state su­
p erin ten d en t of banks, has announced.

That Depends
She: “Do you alw ays take th e o ther
girls for such long rid es?”
He: “No, it isn ’t alw ays necessary.”

w m & m

C i t y N a t io n a l B a n k
AND

TRU ST

2 0 8

S O U T H

COM PANY

of Chicago

L A S A L L E

{Member Federal Deposit Insurance Corporation)

Northwestern Banker


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

August 19'tO

S T R E E T

Smart Kids
Becom ing disgusted w ith th e late
h o urs his d a u g h te r’s callers kept, the
fa th e r tu rn ed th e lights out afte r ten.
F rom th e n on, he noticed th ey came in
after ten.

41
trouble on re tu rn in g from his vacation
in W ashington state. B ut ju st east of
Red Lake Falls, M innesota, his car
tu rn e d over and th e resu lt w as a few
days in th e hospital for Mr. Jensen.
He has now recovered com pletely,
how ever.
L. G. Nordluncl, also of the F irst
State, w as m arried last m onth to M iss
C atherine B indow . The couple vaca­
tioned and honeym ooned in th e Black
Hills.

M IN N E S O T A
NEW S
K. O. SATTRE
President
Blue Earth

WILLIAM DUNCAN, Jr.
Secretary
Minneapolis

E, B rogger, cashier of th e State B ank
of B utterfield, spen t a p a rt of his vaca­
tion in Mt. Lakes, New Jersey, w here
he w en t to a tte n d th e w edding of his
d au g h ter there.

from th e bank on account of illness.
He has headed th is b ank for th e past
forty-seven years. G. B. C ourtney,
cashier of th e in stitu tio n , rep o rts busi­
ness and crop conditions very good in
th a t territo ry .

A. K aiser, p resid en t of th e F irs t N a­
tio n al B ank of Bagley, has been ab sen t

L. Jen sen, cashier of the F irst State
B ank of Clearbrook, ran into a little

Minnesota News Notes

C. G. N ybakken, cashier of th e Peo­
ples State B ank of W arren, is the
proud fa th e r of a baby girl. She has
been nam ed Lois.

And They Would
Teacher: Johnny, if you are alw ays
very k ind and polite to all y o u r play­
m ates, w h at w ill th ey th in k of you?”
Johnny: “Some of ’em w ould th in k
th ey could lick m e.”

W hat Minnesota Statements Show
JU N E 29,

1940

The N orthw estern B anker is pleased to p u b lish Bank Statem en ts received before going
to press— p u t us on your m ailing list and sen d us you r statem ents im m ediately after
each call. If you r bank is not included in th e list below it is because Y O U d id not send
in you r statem ent. Please do so next tim e.
CASHIER
BANK
TOWN
A lbert L ea ........... ..F ir s t N ational ................................
A rlin gton ............. . A rlington State ............................
B en son................. . .First State .......................................
Bird Isla n d ......... . .State Bank o f .................................
B rainerd............... . Citizens State .................................
C onger.................. ..S ta te B ank o f ................................ . . . . H. ('. H anson.............
C osm os.................. . First State, . . . , . . . . . . . . . . . . . . .
Crookston. ........... .F ir st N a tio n a l...................................
D ulu th........... .. . . . .F irst & A merican N a tio n a l.........
Dul ut h. . . . . . . . . . .M innesota N a tion al. ......................
Duluth ................ . . .Northern Nat i onal . . . . . . . . . . . . . . . , . L. (). A nderson.........
D u n n ell................. .F irst N ational .................................
E ast Grand Forks.M innesota N a tio n a l.......................
___ W. H. N orm an...........
F airm on t............. . Fairm ont N ational
Farib ault........... . ..Security N a tio n a l........................ ..
Farib ault............. . .State Bank o f . .............
Fergus F a lls. .. . ..F irst N a tio n a l...................................
F u lda, .................... . Citizens S tate. .................................
H o p k in s.............. . .First N a tio n a l..................................
Jeffers. .................. . State Bank o f . . . . .............
K im ball...... ........... .State Bank o f ................................ ,
L onsdale........... .. . . State Bank o f ...................................
M ankato. . . . . . . . .N a tio n a l Bank of C o m m erce....
M a n k a to .............. . N ational C itizens........... ..
M arshall........... . . . First N ational ................................. . . K. E. Sheffield.........
M inneapolis......... . First N a tio n a l............. .....................
M inneapolis......... Marquette N a t io n a l......................
M inneapolis......... . Midland N a tio n a l...........
M in n ea p o lis.. . . . . N orthw estern N a tio n a l. .............
M ontevideo. . . . . . .U nion State. ........................ ..
M oorhead. . . . . . . . First N a tio n a l..................................
M ora......... ............ . Kanabec State. ............... .................
. . . . H . O. D ille y ...............
N orthfield. . . . . . . .F irst N a tio n a l........... ..
Red W in g ............. .Goodhue County N a tio n a l............ . . . H . J. Croke...............
Redwood F alls. , , .Citizens S ta te ........... .........................
R ochester, . . . . . . . U nion N a tio n a l.................................
Rut ht on. . . . . . . . . , .Farmers & M erchants State. . . . . . . . J. J. E k se....................
St. C harles........... .First N ational ...................................
St. P a u l. ............... American N a tio n a l........................ , , . , P. A. F. S m ith .........
St. P a u l............... . Empire Nat i onal . . . . . . . . . . . . . . .
St. P a u l. ........... .. . .First N a tio n a l.....................................
St. P a u l................. . .First State .........................................
St. P a u l............... . M idway Nat i onal . . . . . . . . . . . . . . .
St. P a u l.................. St. A nthony S ta te ............................
South St. P a u l. , , Drovers E x c h a n g e ..........................
South St. P au l. , , Stock Yards N ation al. . . . . . . . . .
Sauk Centre . . . , M erchants N ational ......................
T hief River F alls. .Union State. ................................... . ,
V ir g in ia ............... . State Bank o f ....... ...............
. . . R. H. W illenbring. .
W hite Bear L ak e. .First State. . ............. ..
W illm ar........... . . , Security N ation al. ............................
W in o n a ................. . First N a tio n a l................................... .. . . C. F. W itt..................
Wi n o n a . . . . . . . . . .W inona N ational & Sa v i n g s . . . .


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

Capital
5 150,000
30,000
25,000
30,000
50,000
10.000
10,000
100,000
2,000,000
400,000
1,000,000
30,000
50,000
50,000
125,000
50,000
100,000
25,000
50,000
25,000
25,000
20,000
100,000
200,000
50,000
6,000,000
355,000
947,775
6,350,000
50,000
100,000
60,000
75,000
125,000
25,000
125,000
20,000
50,000
1,682,000
450.000
6,000,000
100,000
230,000
30,000
100,000
250.000
50,000
50,000
50,000
25,000
100,000
350,000
200,000

Surplus and
Profits
57,063
42,967
17,495
58,015
52,309
24,591
3,198
70,790
1,304,416
247,859
428,205
17,984
20.154
84,192
158,641
40,202
169,876
61,000
66,989
43,754
11,689
16.185
34,055
244.152
87.009
8,219,075
305,538
672,564
4,594,212
33,079
59,728
62,145
69,007
148,361
81,595
78,315
18,108
29,748
668,906
290,464
7,540,390
117,219
203,863
16,155
78.211
268,800
33,077
71,689
65,584
17,329
26,615
240,337
257,111

$

Loans and
Discounts
$ 736,242
378,434
217,092
492,762
575.008
173,758
92,043
277,976
6,990,779
1.909,281
3,934,729
190,920
178,067
588,944
1,062,317
385,218
867,098
868,038
269,468
451,052
123,169
236,457
483,014
2,560,248
747,503
38,094,591
3,371,513
7,719,938
39,437,393
508,223
656,427
666,129
280,953
635,363
530.659
696,797
293,150
343,619
5,554,498
4,559,895
53,668.197
511,424
1,719,495
255,422
1.041,959
2,723,168
183,619
410.626
364,296
161.203
336,882
1,748,036
1,297,457

Bonds and
Securities
$ 269,839
192,685
204,731
123,381
684,201
71,131
197,898
14,946,195
2,446,672
4,467,318
68,740
347,018
515,651
851,481
218,906
762,195
137,790
585,992
97,478
82,500
139,833
345,542
1.106,069
545,568
59,486,512
437,300
5,601,585
51,537,726
139,007
363,733
191,667
518,632
1,248.369
255,054
734,334
63,133
298.955
12,228,393
1,875,162
29,824,303
1,761,542
2,576,093
174,635
628,917
1,635,996
589,431
458,471
627,738
125,251
626,699
3,002,979
2,229,020

Cash and Due
From Banks
$ 569,272
156,413
98,718
115,124
514,176
89,492
46,133
856,897
13,688,656
3,812,745
5,135,593
68,082
220,001
364,228
643,364
170,473
525,849
169,779
227,554
55,761
45,721
73,002
480,326
850,486
373,585
65,747,614
2,668,443
6,922,139
54,464,630
101,357
494,276
289,063
390,259
744,086
590,681
873,414
75,977
135,602
16,698,962
3,313,177
69,608,377
208,850
1,449,938
179,372
603,042
2,440,205
219.244
198,029
304.071
213,622
412,359
1,322,835
854,286

Northwestern Banker

Deposits
$ 1,955,295
670,128
492,732
629,899
1.614,489
302,082
120,679
1,180,625
32,740,731
7,697,368
12,205,857
295,155
687,141
1,375,266
2,338,663
712,833
1,935,826
1,127,304
985,854
540,044
234,288
421,758
1,174,840
4,175,400
1,558,017
150,122,285
5,994,703
18,619,427
136,843,544
679,344
1,391,322
1,045,625
1,052,483
2,418,066
1,277,667
2,136,251
408,457
711.380
31,803,651
8,964,200
142,070,531
2,302,929
5,201,056
576,769
2,038,053
6,306,829
935,593
971,834
1,171,650
472,821
1,296,238
5,703,816
4,096,452

August i9b0

42

T w i n C ity N e w s

V E R D E L IN , of M inneapo­
lis, has been appointed vice p re s­
iden t and general m an ag er of th e
Real estate D ep artm en t of The M utual
Life In su ran ce C om pany of New
York.
V erdelin left th e F irs t N ational
B ank and T ru s t C om pany of M inne­
apolis, w here he has been a ssistan t
vice p resid en t since 1937, and w ith
w hich he has been directly an d in ­
directly associated for m ore th a n
tw en ty years. He has occupied m any

H

enry

, q CK B 4 /y /r.

By Jam es M. Sutherland
Special Corre spon de nt

posts of responsibility, including w ork
on real estate protective and reo rg an i­
zation com m ittees, ju risd ictio n over
in term ed iate credit and th e m aking of
m ortgage loans.
H e served as presid en t of th e A m eri­
can In stitu te of B anking in 1936 and
1937, and is w idely know n th ro u g h ­
out th e country. Mr. V erdelin a t­
tended th e U n iversity of M innesota
and is a m em ber of th e M innesota
bar.
The M innesota B anking D epartm ent
has passed on a license for an affice
of th e E quitable L oan A ssociation to
be established in F erg u s Falls, M in­
nesota. The new office w ill be owned
an d operated by th e E quitable Loan
A ssociation of M inneapolis.

Last year $94,383,000.00 was
paid to 278,000 patrons of this
market for their livestock.
These market patrons are your cus­
tomers and you can improve your
service to them through an account
with us.

S TOCK Y A R D S
NATIONAL BANK
SOUTH ST. PAUL, MINNESOTA
Member Federal Deposit Insurance
Corporation

Northwestern Ranker


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

August Í9M

S. B. R uohoniem i, assistan t cashier
of th e F irst State B ank of Floodwood,
M innesota, has helped in form ulating
plans for th e protection of th e vital
D uluth-Superior h arb o r system and
th e M esabi and C uyuna iron ranges
of n o rth e rn M innesota u n d er th e N a­
tio n al Defense program .
The plans have been subm itted to
th e W ar D ep artm ent th ro u g h Con­
g ressm an P itte n g e r of D uluth.
Sigurd M yk lebu st w as general ch air­
m an of the an n u al picnic of officers
and em ployes of M idland N ational
B ank & T ru st Company, held at
Spring P ark, Lake M innetonka. As­
sisting him w ere H okan M oreen,
D agne N aeseth , R alph Spearing, Joan
Short, V irginia W olfe, H arry Shepardson, R obert E rvin , George M agnuson
and Stuart Johnson.

F. A. A m undson, acting state b an k ­
ing com m issioner in M innesota for
th e past year, can take th a t w ord “act­
in g ” out of his title now.
F o r G overnor H arold E. Stasson has
appointed him com m issioner of banks.
Mr. A m undson took over the post as
acting com m issioner on th e resigna­
tion of Robert 1). Beery.

Tri-County Meeting
Roger Peavey, presid en t of th e Se­
c u rity N ational B ank of F arib au lt, p re­
sided as p resid en t of the an n u al m eet­
ing of th e Tri-County Clearing House
A ssociation held at Red W ing. B ank­
ers of Red W ing served as hosts to the
visiting bankers.
The program included an excursion
on the M ississippi riv er th ro u g h the
locks, dinner, and an en te rta in m e n t
program in th e evening. Tw enty-eight
banks are m em bers of the association
from W abasha, Rice and Goodhue
counties.
A ttending th e m eeting from F a ri­
b au lt w ere Mr. Peavey, George Kaul,
C harles McKenzie, H erb K renz, Ray
H ayes, H ow ard B a rre tt and Leo Shandorf, of th e Security N ational Bank;
Jo h n C arlander, president; Ray Meyer,
and W illiam F. H opke, of th e F a ri­
b au lt S tate Bank.
E. W. H arrin g to n , vice p resid en t of
the F irs t N ational B ank of Plainview ,
headed th e Tri-County B ankers as
presid en t follow ing its an u al m eeting.
Also elected w ere H. H. B illings of
Pine Island, vice president, and F.
Sprague of Lake City, secretary-treas­
u rer. H. J. Croke of Red W ing w as
elected to the board of directors, w hich
includes A rth u r F u n k e of H am m ond.

Remodeling
Only tw o m ajor rem odeling projects
in several sta rte d last spring in dow n­
tow n D uluth rem ained to b e . com­
pleted.

43

E l i m i n a t e w o r r y a b o u t sp e c ia l
h a n d lin g o f g ra in d r a fts. U se th e se
services o f “ N o rth w estern ” grain d raft
sp e c ia lists :
1 . W e h a v e a h a lf c e n tu r y ’s ex ­
p e r ie n c e a n d k n o w l e d g e i n
h a n d lin g g r a in d r a fts.
ÎÎ. W e o ffe r t h e s e r v ic e s o f a
sp e c ia l g ra in d r a ft d e p a r tm e n t.
3 . W e u se every p o ssib le m e th o d
w h ic h p r o v id e s s a f e t y a n d ex­
p e d ite s c o lle c tio n s .
N o w on d er w e h a n d le m o r e t h a n a
q u a rter m illio n g ra in d r a fts— to ta lin g
m o re th a n $50,000,000— in a s in g le
year. S en d y o u r g ra in d r a fts to th e
“ N o r th w e ste r n ,” — an d e n d w orry!
U se ” N o r th w e s te r n ” S e r v ie e s
D e p a r tm e n t o f B a n k s a n d B a n k e r s
WM. N. JOHNSON

I). E. CROULEY

V ice P r e s id e n t

A s s t. C a sh ie r

F. W. CONRAD
ytsst. V ice P re s.

L. P. GISVOLD
A s s t. C a sh ie r

This pictu re shows one corner o f the complete “ Northwestern ” Grain D raft
department. Personnel and mechanical equipment are ready now fo r the peak
season on grain drafts, when up to 2,500 drafts are handled in a single day!

NORTHWESTERN NATIONAL BANK
AND TRUST COMPANY
M A R Q U E T T E A V E N U E — 6 th to 7 th S T R E E T S

M in n e a p o lis
MEMBER

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

FEDERAL

DEPOSIT

INSURANCE

CORPORATION

44

A b o v e a re tw o v iew s of th e in te r io r o f th e re c e n tly re co n ­
s tru c te d M id la n d N a tio n a l B a n k of M in n eap o lis. A t th e le f t
P re s id e n t E d g a r L. M a tts o n is se a te d a t h is d e sk in his
rem odeled a n d n ew ly fu rn is h e d office. A t th e r ig h t is p ic ­

These include th e co n stru ctio n of
new q u a rte rs for th e B ank of Com­
m erce in th e T o rrey B uilding at a cost
of $40,000, and th e erection of a new
fro n t for th e E agles Lodge B uilding at
213 E a st Second Street, costing $30,000.
The form er is scheduled to be ready
for occupancy about Septem ber 1st,
and th e la tte r on Septem ber 17th.

tu re d a p o rtio n of th e m a in b a n k in g room , w ith th e new low
ty p e c o u n te rs. N ew f u r n itu r e , in h a rm o n iz in g color effects,
h a s b e en in s ta lle d th ro u g h o u t.

Reconstruction Completed
E d g ar L. M attson, presid en t of the
M idland N ational Bank, M inneapolis,
sen t th e follow ing letter to friends and
custom ers of the b ank upon com ple­
tion of its recen t rem odeling and recon­
stru ctio n program . P ictu res of the
new in terio r appear elsew here in this
issue. Mr. M attson says:
‘It gives me real pleasure to an ­

THE TRAVEL TREND

A
V

Northwestern Banker

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

August 19W

nounce to all our friends in M inneap­
olis an d th ro u g h o u t th e n o rth w est th a t
reco n stru ctio n of our banking floor is
complete.
“W e invite all our friends to come in
and look us over.
“Our low, sm ooth-topped, ra re old
Italian m arble-faced te lle rs’ counters
are not only m odern and beautiful in
appearance, b u t are a real convenience
for our custom ers.
“We have centralized our im p o rtan t
autom obile financing and in stalm en t
loan dep artm en ts w here th ey are con­
v en ien t for public use, free from in te r­
ruption, affording all the privacy th a t
m ay be desired.
“Our tru s t d ep artm en t coupon room
and v aults for safekeeping securities
held in custodian accounts, are se­
cluded b u t still a p a rt of th e m ain floor.
Our safe deposit v aults and boxes are
reached th ro u g h th e m ain lobby.
“Our officers are all easily reached in
the m ain lobby.
“S ubstantial new fu rn itu re, harm o n ­
izing w ith color effects of th e lobby,
has been installed, including com fort­
able chairs for custom ers at desks of
officers.
“In th e re a r of th e m ain banking
room in th e an nex to our building, ac­
cessible by convenient doorw ays, we
have com pletely rem odeled and well
fu rn ish ed and equipped rest room s for
our em ployes, including a lounge w ith
facilities for light lunches.
“We take pride in our new banking
room. It is a m onum ent to th e cordial
relations th a t exist betw een th e Mid­
land B ank and th e public. It is ty p i­
cal of th e fine progress th a t the busi­
ness in stitu tio n s of M inneapolis and
th e n o rth w est are m aking.”

45
ing or are unable to play th eir p a rt in
this program .

NORTH
MARTIN AAS
President
New Rockford

New Committees

D A K O T A
NEW S

President's Message
In a re c e n t le tte r to his m em bership,
M artin Aas, p resid en t of th e N orth
D akota B an k ers A ssociation, w rites as
follows:
As p resid en t of y o u r association, p e r­
m it m e to express to you m y ap p recia­
tion of th e privilege and o p p o rtu n ity
to serve you d u rin g th e com ing year.
W ith th e few b an k s left in N o rth
D akota and th e lim ited finances w ith
w hich we have to operate, th e problem
of w ork in g out a pro g ram of activities
for th e y e a r is a difficult one.
As suggested by th e p resid en t of the
W isconsin association, in th is day of
w ild discord, a pro g ram for th e devel­
opm ent of hu m an relatio n s w ould
seem to be of real value; and I shall
endeavor to develop th e so rt of a p ro ­
gram w hich w ill b rin g th e b an k ers of
th e state into closer relatio n sh ip and
create a m ore g eneral and com m on u n ­
d erstan d in g of th e problem s w ith
w hich we are faced. E ach day we are
forced m ore and m ore to th e conclu­
sion th a t if our p re se n t b an k in g sys­
tem is to survive, it is n ecessary for
b an k ers to w ork w ith ra th e r th a n
ag ain st each other. The sp irit of keen
com petition existing in th e p ast m u st
be subm erged for th e good of all.
B an k ers m u st cooperate.

C. 0. WATTAM
Secretary
Fargo

M eetings of groups and of the state
m em bership a t large are necessarily
few in num ber.
M any questions arise w hich are p e r­
plexing and w hich m ight be explained
if we w ere able to get to g eth er fre­
q u en tly for a ro u n d table discussion
of them . In th e absence of such oppor­
tunities, let me suggest th a t you call
upon the secretary, Mr. W attam , either
by le tte r or in person, for any infor­
m ation on m atters w hich m ay not be
clear to you. The association office is
m ain tain ed for th a t purpose and if you
fail to use th e service m ade available
to you, it is your fau lt and not th a t of
y o ur officers.
A grow ing conviction is being estab­
lished in th e public m ind th a t th e ex­
isting p riv ate financial agencies are
n o t equal to the req u irem en ts of a
national defense program . It is im por­
ta n t th a t th is propaganda be met. The
an sw er lies in th e hands of th e local
banks. It is im p o rtan t for them to
inform th e ir public of th e ir w illing­
ness to m ake loans, and to do every­
th in g th ey can to uncover such loan
possibilities, not alone in th e in terests
of th e defense program , b u t for the
developm ent of local business also.
W e m u st not let th e public get the
im pression th a t the banks are not w ill­

The follow ing are the nam es of com­
m ittees and com m ittee m em bers as re ­
cently appointed by M artin Aas, p resi­
den t of th e N orth D akota B ankers
Association:
A g ricultural Com m ittee — F red A.
Irish, chairm an, Fargo; A. L. N etcher,
Fessenden; Dugald Stew art, Bowman;
F. A. Foley, Rolla; Clarke B assett,
Fargo.
Legislative Com m ittee—W. S. D avid­
son, chairm an, W illiston; F. D. M cCart­
ney, Oakes; J. O. M ilsten, Belfield; H.
A. Fischer, W ashburn; F red H eath,
Bism arck.
P ublic R elations Com m ittee—R. A.
H. B randt, chairm an, Minot; R. H.
B arry, Fargo; G. A. K lefstad, Form an;
H. M. W eydahl, Killdeer; V. A. H ei­
berg, M innew aukan.
C onsum er Credit Com m ittee — F red
O rth, chairm an, G rand Forks; O. J.
Olson, W ahpeton; A. C. Idsvoog, G raf­
ton; E. D. Saltzm an, Bism arck; M. G.
Pederson, Hope.
B ank M anagem ent Com m ittee — W.
A. L ilyquist, chairm an, Lisbon; S. K.
F isher, Devils Lake; J. R. M adsen,
M andan; H. M. G rant, Minot.

Building Sold
R. J. Moore of G rand F o rk s bought
th e Red R iver N ational B ank B uilding
for $52,500 cash at a receiv er’s hearing.
The building w as offered for sale by
L. E. O’Connor, receiver for th e old
F irs t N ational Bank, w hich ow ned th e
stru ctu re. The b u y er w ill take posses­
sion A ugust 7st. Moore w as the only
o th er bidder except the Red R iver N a­
tional Bank, w hich had offered $52,000.
O’Connor had petitioned to sell a t th a t
price and the h earin g w as held on his
petition.

W hat North Dakota Statements Show
JU N E 29, 1940
The N orthw estern B anker is pleased to pu blish Bank Statem en ts received before going
to press— p u t us on you r m ailing list and send us your statem ents im m ediately after
each call. If your bank is not included in the list below it is because Y O U d id not send
in you r statem ent. Please do so next tim e.
TOWN

BANK

...F ir st. N a tio n a l..........................
F a rg o .................. .. .M erchants N a tio n a l...............
. .T h e N ational B a n k ...............
.. U nion N a tio n a l........................
P a g e ....................
R ugby..................
. . .Am erican N ation al. . . . . . . . .
...F ir s t N a tio n a l..........................
W atford City. . . . .F irst Internation al.................


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

Capital
. .$ 200,000
25,000
150.000
100,000
100,000
15,000
............... E. G. C lapp..............
25,000
50,000
50,000
15,000
CASHIER

Surplus and
Profits
$ 212,939
31,852
212,266
45,695
29,595
6,984
32,830
26,896
68,568
5,045

Loans and
Discounts
$ 722,021
216,783
1.164,231
378,393
251,042
37,432
142.688
221,562
276,183
84 544

Bonds and
Securities
$ 1,636,937
122,228
1,431,670
545,561
428,560
50,018
48,821
225,172
303,612
30,579

Cash and Due
From Banks
$ 1,211,355
138,484
1,394,892
334,510
403,804
30,151
359,364
195,279
305,436
102,279

Deposits
$ 3,270,929
433,875
3,674,958
1,143,197
1,031,547
102,402
497,786
616,479
808,952
183,882

46

M O N TAN A

carefully. Both should investigate the
w arehouse com pany and its m ethods.
A w arehouse com pany’s balance
sheet w ill show w h e th e r or not th e
com pany is a fixture in the field, or a
fly-by-night. A w ise selection can be
based on the th ree “C’s” of credit . . .
character, capacity and capital.
F ield w arehousing is recognized by
financial in stitu tio n s everyw here and
by th e F ed eral R eserve System as a
sound and successful m ethod for th e
m a n u factu rer and producer to raise
m oney by sto rin g and p ro tecting in ­
ven to ry w hile aw aiting its use or dis­
trib u tio n in norm al procedure.

NEW S

ETHEL W. WALKER
Seeretary-Tr ea surer
Helena

R. D. MOUNTAIN
President
Conrad

Banker Dies
Theodore Torbenson, form er Kalispell resid en t and onetim e local b ank
president, died recen tly in M inneap­
olis.
He left K alispell in 1926 for Seattle,
w here he established a b rokerage busi­
ness. He w en t to M inneapolis in 1936.
H is w idow and tw o sons survive.

H O W TO SELEC T
EM PLO YES
(C ontinued-from page 18)
suits are to be obtained. T est records
m u st be carefully com piled over a pe­
riod of tim e in ord er to provide suffi­
cient statistical data for th e estab lish ­
m en t of “n o rm s” and th e checking of
resu lts generally. N orm ally, too, th e re
w ill be an educational cam paign to
c a rry on at th e sam e tim e. If only
passive resistan ce to such a program

from th e various executives and de­
p a rtm e n t heads is encountered, th e
person responsible for it m ay consider
him self fortunate. As tim e goes on,
how ever, and th e benefits of a m ore
scientific m ethod are evidenced, a
change in attitu d e to one of e n th u sias­
tic cooperation m ay reasonably be
anticipated.

1940 Conventions
Sept. 22-26
Nov.

7-8

Sept. 9-11

FIELD W A R E H O U S IN G
SERVES BUSINESS
A N D BANKER

Oct. 24-25
Oct. 16-19

(C ontinued from page 20)

Oct. 28-30

w arehouse is in existence, th e train ed
au d ito rs of the field w arehousing com ­
p any m ake freq u en t inspections of the
in v e n to ry a t irre g u la r in tervals, w ith ­
out notice.
It is im p o rtan t both to th e b an k er
and th e com pany using th e service th a t
th e y choose th e field w arehousem an

Nov. 11-15
Dec.

9-13

A nnual Convention A tlan­
tic City, New Jersey.
S e c o n d Mid - C ontinent
T ru st Conference, Chi­
cago, Illinois.
Iowa, H otel F o rt D e s
Moines, Des Moines.
N ebraska, Lincoln.
A nnual C onvention, N a­
tional A ssociation of B ank
A uditors and C om ptrol­
lers, St. Louis, Missouri.
F in ancial A dvertisers As­
sociation, The H om estead,
H ot Springs, V irginia.
U. S. Savings and Loan
League, Chicago, Illinois.
In v estm en t B ankers Asso­
ciation of Am erica, H olly­
wood Beach Hotel, Hollywood-by-the-sea, Florida.

W hat Montana Statements Show
JU N E 29,

1940

The N orthw estern B anker is pleased to pu blish B ank Statem ents received before going
to press— p u t us on you r m ailing list and send us you r statem ents im m ediately after
each call. If your bank is not included in th e list beloiv it is because Y O U d id not send
in your statem ent. Please do so next tim e.

BA NK
CASHIER
TOWN
A naconda......... . . . Daly Bank & Trust Co...................
. .$
..
Big- Timber. . . . . . Citizens Bank & T ru st.................
.
.
.Midland
N
a
tio
n
a
l............................
. . . . A. R. Hammer. . . . . .
B illin g s.............
B illin g s............. . . .Security T ru st........... .......................
Boz e man. . . . . . . . . Security Bank & T ru st...............
B u tte ................. , . , Metals Bank & T ru st....................
B utte.................. . . Miners N ational......................... .... . . . . . T. J. F en lon ...........
Colum bus......... . . . Yellowstone B a n k s...................................L. J. W allace..........
Cut B an k ......... . . , Bank of Glacier Co................... ......
D illo n ............... . . . .First N a tio n a l........... . . . . . . . . . .
D illo n ............... . . . .State Bank & T ru st............. ..........
F orsyth ............. . . . Forsyth State ...................................
G lendive........... . . . Merchants N a tio n a l........................ . . . . A. C. Schrum pf. . .
Great F a lls . . .
Great F a l ls ... . . .Montana Bank & Trust Co........
K alispell........... . .. Conrad N ational .............................
L aurel............... . . . Yellow stone B a n k s ........................
..
M issoula........... . . . First N a tio n a l........... ..
P len ty w o o d .. . . . . Security State. .................................
. Ronan S t a t e .......................... .... .. .
R o n a n ..............
S id n e y .............. . . .Sidney N a tio n a l..............................
S tanford........... . .Basin State B a n k ............................
W hitefish, . . . . .. . First N ational Bank o f .................


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

Capital
150,000
100,000
200,000
100,000
100,000
600,000
100,000
35,000
30,000
100,000
100,000
25,000
60.000
600,000
100,000
250,000
35,000
200,000
30,000
25,000
30,000
25,000
50,000

Surplus and
Profits
$ 137,657
27,020
194,913
158,260
54,905
601,546
44,220
13,734
15,383
94,255
102,542
38,241
45,838
407,815
158,188
93,656
21,733
190,602
2,844
34,500
10,974
22,648
17,254

Loans and
Discounts
$ 781,086
377,306
1,106,114
1,507,462
382,769
1.850,955
321,213
207,509
191,703
422,213
1,252,160
170,347
36,974
1,971,712
1,021,835
814,714
310,361
738,895
116,915
254,717
130,182
176,128
163,855

Bonds and
Securities
§ 2,343,268
180,424
2,058,943
552,753
223,400
6,104,002
446,009
137,154
114,733
691,592
470,242
354,182
376,549
4,335,000
767,981
1,077,710
81,950
1,139,877
125,581
57,071
68,465
178,965
285,034

Cash and Due
From Banks
$ 1,080,812
514,061
1,940,305
1.663,189
446,199
7,423,657
684,471
191,656
180.868
383,213
224,651
156,528
295,328
4,601,176
975,835
1,259,728
290,387
2,900,711
110,935
191,771
247,619
197,765
198,295

Deposits
S 3,967,538
956,733
4,817,502
3,438,290
920,963
14,275,631
1,371,257
506,735
456,518
1,437,700
1,763,513
628,403
629,629
10,267,118
2,611,051
2,905,357
667,921
4,501,127
338,963
445,933
426,492
511,828
614,747

47
late afternoon. B ank directors, as w ell
as bankers, and th e ir wives, attended
th e dinner.
The nex t m eeting w ill be in Septem ­
b er at Keota.

IO W A

Appointed Bank Examiner

N EW S

C. R. GOSSETT
President
Sioux City

FRANK WARNER
Secretary
Des Moines

New Building
W ith bids alread y called for A rchi­
te c t H en ry J. Schneider announced
th e gen eral co n tract for constru ctio n
of th e new Council Bluffs Savings
B ank B uilding w ill be aw arded soon.
Closing date on bids is A ugust 12th.
A ccording to Schneider, th e building
w ill be erected in tw o sections. F irs t
p a rt w ill be con stru cted behind the
p re se n t bank, b etw een P earl and M ain
S treets. R est of th e building w ill be
located w h ere th e b an k now stands.

Election
T he F irs t T ru st & Savings Bank,
Rem sen, closed its fiscal y e a r and held
its a n n u al election of officers. All p re s­
e n t officers w ere re-elected and th e
only change in th e list w as th e addition
of Jo h n K effeler as vice p resid en t and
m em ber of th e b oard of directors.
T he bank, th e oldest in R em sen and
estab lish ed in 1887 by th e late Jam es F.
Toy, is still a m em ber of th e system
organized by its founder.

Buys Bonds
A $25,550 bond issue of th e
In d ep en d en t School D istrict
chased by th e F irs t State
Diagonal. T he bonds are to

Clearfield
w as p u r­
B ank of
d raw 2Vs

per cent in te re st and th e local bank
paid a $40 prem ium on the issue. The
bond issue can ru n u n til 1955, b u t is
subject to optional re tire m e n t after
1945. Proceeds of th e bonds w ill be
used by th e d istrict to m atch a federal
g ra n t for rebuilding th e school build­
ing destroyed by first last spring.
The local b an k w as rep resen ted at
th e bond sale by M. I. R oberts, p resi­
dent. T here w ere seven o th er bidders
p resen t at th e sale.

County Meeting
B ankers of L ouisa and W ashington
counties m et a t th e C ountry Club re ­
cently for a social m eeting. D inner
w as served to th e 48 guests by th e P re s­
b y terian Ladies Aid Society.
F ra n k Crone, p resid en t of th e asso­
ciation, presided a t th e m eeting. E v e r­
e tt Griffith of th e Iowa-Des M oines N a­
tional B ank m ade a few rem arks. Lee
H uston of Colum bus Junction, re p re ­
sentative of th e ban k ers association to
a wage ho u r conference in W ashing­
ton, D. C., gave a rep o rt of th a t confer­
ence.
B ankers in W ashington w ere hosts
of th e evening, w ith Lee H olland,
ch airm an of th e com m ittee on arra n g e ­
m ents, assisted by H orace H am m er of
W apello. A few of th e m en accepted
th e in v itatio n to play golf du rin g th e

S. T. E g ertso n of E sth erv ille has
been appointed b an k exam iner for th e
F ed eral R eserve System , it w as an ­
nounced by E. A. A nderson, federal ex­
am iner. Mr. E g ertson w ill assum e his
new duties October 1st.
Mr. E g ertso n has been an exam iner
for th e state d ep artm en t of banking
for 16 years, previous to w hich tim e he
w as engaged in ban k w ork in E sth e r­
ville. H is new position is a prom otion
and recognition of his ability in the
field of exam ining banks.

Celebrates
A bout fifty neighbors, relatives and
friends assisted G ilbert E. Soland,
form er presid en t of th e Decorah State
Bank, celebrate his 86th birthday.
Mr. Soland, w ho has been a lifelong
resid en t of W inneshiek county, w as
born in Springfield tow nship, Ju ly 15,
1854, a son of E n g eb ert and H elene
(Clem ent) G ulbrandson Soland, w ho
w ere natives of N orway.
Before becom ing a resid en t of De­
corah, about twenty-five y ears ago,
M r.Soland operated 588 acres of land,
half in F ran k v ille and half in Springfield tow nships.
Mr. Soland resigned th e p residen­
cy of th e D ecorah State B ank about
a y ear ago, b u t is still a m em ber of
th e board of directors.

Reserve Member
T he G ladbrook state B ank has been
adm itted to m em bership in the F ed ­
eral R eserve System . A. F. W alter
is presid en t of th e bank; C. F. H arris,
vice president, and J. S. Bauch, cash­
ier.

W hat Iowa Statements Show
JU N E 29,

1940

The N orthw estern B anker is pleased to pu blish Bank Statem ents received before going
to press— p u t us on you r m ailing list and send us you r statem ents im m ed ia tely after
each call. If you r bank is not included in th e list below it is because Y O U d id not send
\in your statem ent. Please do so next tim e.
CASHIER
TOWN
BA NK
A d el.......................... D allas County S ta te................................ O. D. E llsw orth.........
A lgona....................Io w a S ta te .................................................... H. L. Gilm ore...........
A m es........................ Am es Trust and S a v in g s....................... Clay W. S ta ffo r d ...
A m es........................ College S a v in g s ......................................... E. T. L aV elle...........
A tla n tic ...................A tlantic S ta te ............................................. C. D. E m m ert...........
B oone........................ The Citizens N a tio n a l............................. E. E. W iem er.............
B reda........................Breda S a v in g s............................................. F. Van E rd ew y k ...

Capital
25,000
50,000
75,000
50,000
50,000
100.000
50,000

Surplus and
Profits
$
27,451
82,250
101,169
91,118
121,046
67,472
19,333

age 50, please)

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

Loans and
Discounts
§ 444,402
706,838
733,390
459,963
584,722
864,165
274,807

Bands and
Securities
$ 102,651
1,400,634
853,755
652,852
685,690
858,323
184,789

Cash and Due
From Banks
$ 116,719
447,666
417,752
539,987
516,973
538,820
100,409

D eposits
$ 609,158
1,716,050
1,807,548
1,531,795
1,634,455
2,138,460
495,748

Iowa's Great Business of Education

..

B

1
|5 i É i

: 1

pp L eft— M any sm all tow ns and
ral districts have fine consolidatI schools like this. Top R ight—
le Iowa State C ollege at Am es is
cognized the world over. Center
|ft— The old State Capitol Buildb, adm inistration building for the
niversity at Iowa City, speaks for
p pioneering spirit of Iowa eduItion. Center R ight— The “little
p school house” is now modernfed— offering much better opporh ity for rural children. B ottom —
bdern high schools throughout the
fete com plete a fine picture of adInced education.


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

BRAI NS
Iowa has a priceless heritage in the literacy of its people,
ranking first among all of the states in the union. Probably no
similar area in the world has such a high percentage of literacy.
Since 18 3 0 when the first school in the state was established
in what is now Lee County, building and maintaining this
high standard of education has grown into a vast and com­
plicated business.
It is hard to believe, however, that such a great investment
in education could be maintained at such low cost. Latest
figures from the state department of public instruction list 1 1 ,7 6 6
public schools in which nearly 2 5 ,0 0 0 teachers are employed.
There are also more than 200 parochial schools, attended by
some 50 ,00 0 pupils. Almost two-thirds of a million children
regularly attend Iowa schools.
Figures are available only on the public schools. They show
that the cost per pupil averages only $8 2 .7 2 per year, very little
for the return in better citizenship. Iowa invests slightly more
than $ 1,0 0 0 in the education of each of its children.
Iowa pays approximately $2 5 ,000,000 in public school teach­
ers’ salaries. About $6 ,50 0 ,0 0 0 goes for school operation and
maintenance—largely in fuel, power, and salaries.
During the 10 0 years in which this great education system
has been in development, school structures have been built
which have an estimated present value of $ 1 4 0 ,000 ,0 0 0 ; 8,798
are so-called “open country” schools, 408 are consolidated schools
and the remainder are in towns and cities.
Three great state schools, the University at Iowa City, the
State College at Ames, and the State Teachers College at Cedar
Falls, are representative of the fine higher education facilities
offered. These three schools have a total enrollment of approxi­
mately 2 5 ,0 0 0 students annually. Combining these three with
the state schools for the deaf and blind, the state appropriates
approximately $5 ,000,000 annually for them—further revenue
coming from Federal grants, student fees and the like.
Ever since the state was founded, Iowa has kept an eye to the
future—building for its people educational facilities without
peer in the entire world. Careful planning and supervision have
kept the costs of this great program well within reasonable
bounds.
Bankers Trust Company, ever since its founding, has kept an
eye to the future, planning better means of serving its customers.
Among these customers are many banks throughout the state
which have named Bankers Trust Company their Des Moines
Correspondent.

B A N K E R S
6th and Locust Streets
D es M o i n e s , I o w a

C O M P A N Y

M em ber Federal D eposit Insurance Corporation


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

T R U S T
M em ber F ederal R eserve S ystem

50

W H A T IO W A STATEM ENTS S H O W
(C ontinued from page 47)
TOWN

BANK

C hariton..................National Bank &, Trust Co.
C larinda............... .Pagre County S ta te .................
C linton....................City N a tio n a l............................

Council Bl uf f s . . . . State S a v in g s ..................

Des M oines.............Bankers Trust Co...........

D u n la p ................ .. .Dunlap Savings

Fort D odge............The i
Fort M adison....... Iowa
G a r w in .................... Farmers S a v in g s.........
George...................... George S ta te ..................
Grin n e ll....................Grinnell

Indianola............... .Peuples Trust & S avin gs.
Jefferson............. s .Home State B a n k ...............
K noxville.
Le M ars....................First N a t io n a l...............
L isb o n .............. ...L is b o n Bank & Trust.
M anson................... Manson S t a t e ..................................
M arshalltow n........Fidelity S a v in g s.............................

Missouri V alley.
Mount V ernon.
N ew ton ............... ..J a s p e r County S a v in g s..........
N ew ton ................... N ew ton N a tio n a l.....................
O akland.................. Citizens S ta te ................... ..
O elw ein................... First N a tio n a l...........................
O nslow .....................Onslow S a v in g s.......................
O sage.
P erry........................ First N ation al.

Shenandoah........... Security Trust & Savings B a n k .

Spencer....................Clay County N ational. ,
Storm L ake........... Commercial Trust & S a v in g s..........
Stratford..................Farm ers S a v in g s................................
S t u a r t.....................F irst N a tio n a l.........................................

CASHIER
W. H. S w iler.............
.. Thomas L. D yer. . . .
. -G. D. Schooler...........
. H. ( . S m ith ...............
. Reginald B. Figge . . .
Mark J. M yers.........
. W. Rinderknecht, Jr.
. Flora Tillotson .........
. Roy E. O ughton. . . .
• Lester F. S m ith .........
. E. L. Gookin.............
• Merten J. Kl a u s . . . .
. C. E. B radley...........
.J . H. N isse n ...............
. L. J. Derflinger. . . .
H. E. B e ll...................
.P a u l H. Kinnick. . . .
. W alter Buenneke
. E. H. Sp etm an.........
H. L. T in ley ...............
K. A. C oates.............
Herman Staak............
. F. A. John son...........
, F. C. A tk in s...............
. Raymond G. Miller.
.J . R. C apps...............
. Harry G. W ilson. . . .
. J. R. A stley...............
.A lb ert C. L an tzk y..
.Joseph V. Keppler. .
.G len H. M illard___
. Eastman W. Muckolls
. Chas. J. S p ies...........
.R obert S. Kni ght . . .
.D onald T. L a w le r ...
A. M. K uhl.................
Harry T. H uff...........
.M ilton E. L ehning. .
H. H. M ohrfeld.........
. H. L. Ollenburg. . . .
■A. F. A g e n a ...............
. R. W. R ossow ...........
, J. S. B auch...............
. L. M. L an n in g.........
. W esley T. Hecht. . . .
. H. V isser ....................
. C. F. S h eel.................
. J. L. C am pbell.........
. M. H. H en d erson ...
. Warren Garst .........
.V ern e W. M ille r ....
J. R. D yer..................
. Hugh C. McCleery. .
* R. E. T ool....................
. G. ].. H ill....................
. C. W. A bdersib.........
. G. L. Scoles...............
. A. T. D a vis.................
. G. B. B row n...............
. Guy C. M artin.........
. W illiam W. Boyd . . .
. R. A. P o tte r .............
H. F. F o ss.................
. Carson W illiam s . . .
. 1). U. Van Metre. . .
.G len Dow ning .........
. B. L. M cK ee.............
.A . E. H indorff...........
.W a lter T. Robinson
. D. F. B n sse . . . . . . . .
. M. C. H anson...........
Geo. H. Pau lsen. . . .
, H. C. M oret...............
. E. A. H eiden.............
. Max von Schrader. .
. H. P. Scholte.............
. C. S. John son...........
. J. H. B rekken...........
. Oscar Helgerson . . .
. Ivan Erickson .........
. J. W. H epperle.........
, .). P. S ch u tt...............
, R. A. S c h n e id e r ....
. W. H. Longman . . . .
. Fritz Fritzson .........
M. A. W ilson.............
, R. Earl B row n.........
, E. E. Erickson
. C. T. McClintock. . .
A. E. A nderson.........
W ayne A. Myers . . .
, E. J. K nebel...............

Wall L ake............. Wall

. C. L. B eech...............
Asa Thomas .............
Charles B. B arron. .
C. W. S h aw ...............
H. B. Ham m er.........
E. F. M iick...............
R. L. P e n n e .............

W ayland................. W ayland

Melvin G. R oth........


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

Capital
100,000
200,000
25,000
50,000
200,000
500,000
250,000
50,000
50,000
50,000
100,000
100,000
50,000
400,000
60,000
25,000
25,000
25,000
150,000
100,000
20,000
600,000
135,000
1,000,000
150.000
1,000,000
3,000,000
150,000
250,000
300,000
25,000
75,000
25,000
50,000
25,000
25,000
100,000
100,000
205,000
50,000
20.000
25,000
50,000
60,000
50,000
50,000
25,000
50,000
100,000
50,000
50.000
50,000
15,000
60,500
50,000
25,000
25,000
100,000
50,000
25,000
400,000
100,000
50,000
30,000
50,000
125,000
125,000
100,000
100,000
40,000
50,000
20,000
65,000
100,000
300,000
50,000
50,000
25,000
100,000
50,000
25,000
35,000
50,000
60,000
400,000
250,000
250,000
300,000
100,000
60,000
75,000
50,000
20,000
35,000
80,000
65,000
30,000
25,000
80,000
250,000
175,000
25,000

Surplus and
Profits
197,767
88,835
38,967
30,745
114,515
2,185,536
161,719
27,576
61,232
19,839
51,902
56,496
53,584
332,435
93,805
52,830
16,543
15,358
242,809
85,096
31,893
1,493,211
59,189
837,022
123,022
734,020
1.097,400
313,133
140,470
415,214
30,233
55,955
137,275
107,353
47,100
34,860
158,572
33,011
86,409
24,185
24,816
34,696
50,212
29,023
28,078
28,685
31,048
80,942
87,765
42,228
96,027
56,035
11,780
17,784
50,418
17,764
33,639
175,240
69,221
20,126
274,274
70,358
34,998
30,669
72,993
58,989
194,172
172,413
64,785
30,404
101,140
39,371
57,863
92,651
258,979
49,856
110,359
8,479
58,593
38,111
43,099
41,977
36,129
60,793
199,800
288,928
247,128
374,436
101,075
85,504
203,383
41,110
14,747
33,921
59,258
98,922
56,567
13,935
44,171
285,810
197,361
32,027

Loans and
D iscounts
1.675,734
1,176,194
409,598
530,306
1,330,099
9,867,770
2,905,793
352,359
188,396
317,304
353,572
1.003,158
582,533
2,559,419
362,343
508,710
321,549
155,961
2,696,128
1,419.599
231,784
8,937,826
1,391,143
10.221,699
1,361,542
13,170,260
17,296,081
4,061,298
1,331,963
1,698,371
172,156
511,253
485,373
897,343
441,721
184,961
1,734,987
228,653
716,085
327,329
197.688
484,496
657,166
612.732
302,941
243,026
381,320
849,794
637,897
672,571
723,023
842,872
148,926
207,948
372,361
252,426
510,876
1,346,086
886,201
132,280
2,910,313
1,389,097
219,101
321,966
542,687
965,770
1,085,438
2,765,830
737,235
369,513
305,270
2(94,830
616.611
687,251
2,033,949
502,648
838,265
133,658
1,244,197
607,243
684,587
340,165
533,352
590,308
3,103,610
3,012,549
1,136,054
2,714,337
1,769,050
1,343,167
1,192,940
306,915
229,220
172,858
718,942
963,881
335,393
323,102
462,682
2,740,468
2,805,491
267,925

Bonds and
Securities
338,395
1,136,793
92,955
124,579
998,008
12,734,849
834,190
233,905
762,582
277,681
687,547
87,892
132,079
1,848,226
495,076
167,519
101,575
167,572
897,834
281,603
43,900
14,002,594
750.295
6,350,664
1.133,541
5,276,556
13,394,522
725,006
3,068,909
6,707,964
204,999
504,010
449,225
984,031
203,509
315,780
418,904
288,995
1,688,853
89,953
215,683
91,639
42,300
129,500
275,154
129,885
83,922
343,013
767,283
121,980
701,190
154,292
119,843
330,944
145,440
241,987
117,914
1,165,465
590,769
131,134
1,193,580
51,174
402,039
167,320
145,108
1,009,683
1,656,738
331,065
390,624
187,524
850,803
103,700
208,755
362,955
2,013,761
488,720
102,031
88,726
347,333
83,845
80,926
374,004
121,634
338,183
4,527,248
961,850
3,062,524
3,034,689
562,480
285,389
296.140
245,700
72,100
114,888
189,132
390,029
220,666
41,020
441,580
2,972,923
1,380,863
139,077

Cash and Due
From Banks
1,297,527
985,972
59,030
548,214
1,195,963
11,232,504
1,669,847
235,865
466,911
234,005
520,416
731,176
428,895
1,720,345
861,511
119,569
84,975
169,959
1,450,075
452.869
109,791
11,690,349
1,174,607
6,699,842
552,085
7,347,453
13,143,370
2,004,527
1,284,799
2,292,141
76,119
381,372
312,561
297,036
184,212
138,731
958,245
193,103
1,113,747
336,496
48,990
156,469
171,420
421,956
122,934
135,703
86,496
275,283
380,498
89,706
418,237
367,542
70,584
299,966
235,725
61,735
123,826
1,854,263
454,177
24,330
1,952,995
456,940
236,896
85,558
225,613
780,980
3,263,330
570,953
311,760
109,308
533,221
93,839
342,240
298,813
2,261,127
565,761
440,185
57,295
793,771
375,080
102,471
244,902
354,836
481,267
2,607,570
3,024,610
2,838,876
2,195,098
559,886
508,316
788,755
171,615
49,084
143,625
280,922
357,728
138,950
121,542
462,900
1,766,507
2,505,563
95,289

D eposits
3,576,772
3,062,289
501,393
1,142,397
3,210,225
32,234,660
5,062,964
749,671
1,281,670
765,387
1,466,309
1,653,570
1,058,020
5,551,686
1,594,183
725,022
466,124
454,442
4,677,409
1,961,654
338,604
31,842,731
3,003,541
21,372,325
2,855,954
23,925,720
41,254,598
6,261,950
5,259,435
9,946,019
407,073
1,312,371
1,085,109
2,041,045
779,534
593,262
2,863,890
585,588
3,249,944
692,897
329,576
676,366
775,882
1,094,209
611,303
445,734
505,376
1,304,819
1,625,860
804,325
1,709,973
1,211,736
311,090
792,367
657,336
516,493
696,693
4,151,182
1,833,144
251,305
6,728,254
1,763,343
782,786
557,084
787,993
2,559,559
5,715,338
3,410,849
1,325,549
603,642
1,571,157
433,013
1,065,750
1,172,661
5,892,813
1,463,595
1,240,946
253,054
2,261,327
995,504
796,927
889,342
940,697
1,300.166
6,658,682
6,411,428
6,718,084
7,395,441
2,675,875
1,995,941
1,986,816
646,399
318,825
375,200
1,057,933
1,567,796
625,491
444,350
1,242,151
6,947,346
6,423,064
447,714

51

IO W A
FRO M

rig h t into his boat w hile out fishing
th e o th er day-—claim s th is is not a
fish story.

N EW S

H ERE A N D

TH ERE

B anking h o urs at C linton are from
9:00 to 2:00 on w eek days, and 9:00 to
12:30 on Saturday.
The Ju n e 29th statem en t of th e

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

I ORENZ M A TTH IA S w as recen tly

L elected to th e board of d irecto rs at
th e R eadlyn Savings Bank. He suc­
ceeds H. J. Schum acher w ho passed
aw ay. Fred K uhlm ann w as also elected
to th e board, succeeding F. H. R athe.
B oth b an k s a t D ecorah reduced in ­
te re st ra te s from 2% to 2 p er cent last
N ovem ber. Officers here re p o rt a very
few accounts w ere lost due to th e low­
er ra te and statem en ts of these banks
show a slig h t increase in deposits d u r­
ing th e last six m onths.
R ecent sta te m e n t of th e Cresco U n ­
ion S avin gs Bank list deposits of $1,-

and th ree y ears ago reduced in te re st
ra tes to 1 p er cent. Incidentally, the
a ssistan t cashier here tells us th a t a
four and one-half pound bass jum ped

G arnavillo Savings Bank lists deposits

of $625,500, loans and bonds $667,800.
The $50,000 pledged to the tru s t has
been paid off and the b an k still has a
stro n g capital stru ctu re. Capital is
$50,000, su rplus $50,000, and undivided
profits and reserves $25,375. Two and
one-half per cent in terest is being paid
on deposits.

4 CORRESPONDENT
ADVANTAGES
that Spell...

939,000. C apital is $100,000, su rp lu s
$100,000 and undivided profits and re ­
serves of $109,000. W e note im p rin ted
on th e bottom of th is b a n k ’s statem ent:
No loans, d irect or indirect, to officers,
directors or em ployes. T his b an k nor
th e one across th e street, th e Cresco
S tate B ank, are m em bers of the FDIC.
B ern ice D essel, a ssista n t cashier in
F re d F igge’s b an k at Ossian, w as m a r­
ried to C. W ern er on M ay 13th—still
m ain tain s h e r position w ith th e bank.
C ongratulations, Bernice.

W hile m any b anks have cut b anking
h o u rs d rastically to th e public, th e
M onticello S tate B ank continues to
serve th e public as in th e past. B an k ­
ing h o u rs are from 9:00 a. m. to 4:00
p. m., and S atu rd ay evening from 7:00
to 9:00 p. m. H . M. Carpenter, cashier,
tells us th a t th ese tw o h o u rs on Sat­
u rd a y evening are th e busiest tim e of
th e week. D eposits are w ell over $4,-

1. Its strategic location inside the Union Stock Yards gives
Live Stock National Bank quick and direct access to the rail
and mail terminals centered here for the benefit of leading
agricultural interests.
2. More than half of the Bank’s staff is especially trained
to serve out-of-town customers—using
3. methods and machines developed and perfected during
4. 72 years of sound banking experience.
Consider these advantages and you will understand
why Live Stock National is able to handle the
Chicago needs of nearly 500 agricultural banks—
so quickly, completely and helpfully. If you are
interested in agriculture, consider them, too, in
the light of your own correspondent requirements.

0 0 0 ,0 0 0 .

Effective Ju ly 1st, th e Jackson State
Savings Bank, M aquoketa, lim its th e
am o u n t accepted on an in te re st b e a r­
ing basis as follows: Up to $2,500, 2
p er cent. A m ounts above, 1 p er cent.
L yn n F uller, presid en t, is spending his
vacation up in M innesota at his cot­
tage.
The F irs t N ational Bank, Bellevue,
located on th e b an k s of th e M ississippi,
lists deposits of $576,000 in th e ir recen t
statem en t. H erm an K ueter, cashier,
looks to profits instead of big footings

-------- Live S to c k --------National B a n k of Chicago
U N IO N S T O C K Y A R D S
E s ta b lis h e d

MEMBER

FEDERAL

DEPOSIT

1 8 6 8

INSURANCE

CORPORATION

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

August 19k0

52

•
B anks in o th er cities recen tly visited
paying 2% p er cent on deposits are as
follows: W averly, Cascade, M onticello.
The W aukon State Bank lists tim e
m oney a t $793,000 and dem and at $582,000. Two p er cent is paid on 12
m onth cash deposits and IV2 p er cent
for six m onths. Loans and discounts
are $735,000.
The Luana Savings Bank has re tire d
all th e p referred stock am o u n tin g to
$10,000 d u rin g th e p ast year.

I O W A

N EW S

D em and deposits a t the F irst N a­
tional, AVest U nion, are $579,000 and
tim e m oney $265,500; 2 per cent is
paid for 12 m onths, and IV2 for six
m onths.
The A m erican Savings Bank, Tripoli,
pays 2 per cent on new m oney and 2%
p er cent on old.
Dame R um or, as relayed by J. Y.
F loerchinger, cashier of th e D eW itt
T ru st and Savings Bank, says th a t a
certain dapper co u n try b an k m an

C o n tin en ta l I llin o is
N atio n a l Bank
a n d T rust C om pany
O F C H IC A G O

Statement of Condition, June 29,1940
R ESO URC ES
Cash and Due from Banks................................ $ 660,976,022.11
United States Government Obligations,
Direct and Fully Guaranteed........................
645,413,466.22
Other Bonds and Securities..............................
60,376,065.86
Loans and Discounts..........................................
156,347,094.22
Stock in Federal Reserve Bank......................
2,400,000.00
Customers’ Liability on Acceptances............
444,251.87
Income Accrued but Not Collected................
2,557,917.60
Banking H ou se...................................................
12,450,000.00
Real Estate Owned other than Banking House
2,952,375.45
$1,543,917,193.33
l i a b i l i t i e s

Deposits.....................
$1,421,459,288.57
Acceptances .........................................................
446,123.56
Reserve for Taxes, Interest and Expenses.. . .
5,010,687.05
16,561,200.27
Reserve for Contingencies.................
Income Collected but Not Earned...
226,859.26
Common Stock.....................................
50,000,000.00
Surplus...................................................
30,000,000.00
Undivided Profits.................................
20,213,034.62
$1,543,917,193.33

U n ite d S tates G o v e rn m e n t o bligations an d o th e r s e c u ritie s c a rried
at $148,194,254.81 a re pledged to s e c u re p u b lic an d tr u s t d ep o sits
and for o th e r p u rp o s e s as re q u ire d o r p e rm itte d by law

Member Federal Deposit Insurance Corporation

Northwestern Banker

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

August 19 W

•
w orking out of Chicago is spending a
g reat deal of tim e in and aro u n d DeW itt lately. R eason surm ised, b u t not
definitely know n.
To illu strate his a ttitu d e tow ards
business conditions at all tim es, Leo
W egm an, president, Citizens Savings
Bank, A nam osa, quoted th e following
to us from heart:
An aged m an a t the railro ad station
Discussed the business situation;
I said th a t tim es w ere m ighty bad
A nd som ehow or o th er it m ade him
mad.
T h at aged m an he tapped m y knee
You know w h a t’s w rong w ith things,
said he
I ’ve been in fights, and th e old m an
glared,
A nd alw ays got w hipped w hen I got
scared.
Folks have forgot how to stand and
g rin
W hen h ard luck sm acks them on the
chin.
Too m uch groaning and not enough
laughs,
Too m uch crepe hanging, too m any
graphs.
It sure don’t help a sick m an ’s h eart
To th in k of n o thing b u t his fever
chart.
Too m any people w ith an alibi
A nd I ’d ra th e r listen to a dang good lie.
If folks w ould ju st q u it hanging crepe,
T h ey ’d soon find business in m ighty
fine shape.
I have no use for golf as a game,
B ut I speak th e language ju st the same.
N ot enough drives and too m any puts,
P len ty cold feet and n ot enough guts.
You’re not m y son, b u t if you w ere
m ine,
I ’d dam n soon teach you not to w hine.
He w asn ’t cu ltu red and his w ords w ere
rough,
B ut th e old boy seem ed to know his
stuff.
The Sibley State B ank paid a $4 per
share dividend to stockholders recen t­
ly. The ban k has 1,200 checking ac­
counts and deposits average betw een
$750,000 and $800,000. Officers w ill en ­
deavor to add $250 p er m onth to su r­
plus and profits.
T he F irst N ational Bank, Gowrie,
has installed new low type box fixtures
and m odern lighting fixtures.

53

.
The F irst N ational Bank, D eW itt,

has served th e com m unity u n d e r N a­
tio n al C harter, for 56 y ears w ith o u t
tak in g ad v antage of an y special situ a ­
tion to th e disadvantages or loss of one
cent to an y depositor or custom er. De­
posits are $775,000 an d 1 p er cent in ­
te re st is being paid.
The Tipton State B ank has a large
volum e of loans and discounts am o u n t­
ing to $900,000, w ith deposits aro u n d
$1,130,000.
Cedar C ounty B an kers w ill hold a
m eeting th e first p a rt of A ugust to de­
cide on closing u n ifo rm ly for a half
day each week. A t p re se n t som e banks
close W ednesday afternoon, som e on
T h u rsd ay aftern o o n and o th ers S a tu r­
day afternoon.

I O W A

N EW S

•

Grain Loans
The Dixon Savings B ank has signed
up th e ir agreem ent w ith th e Commod­
ity C redit C orporation so th a t th ey are
now in position to m ake rye, barley
and w heat loans to all farm ers th a t are
in th e 1940 conservation program .
These papers w ill be handled in the
m a n n er sim ilar to th a t of th e corn
loans.

Sells Bank Interest

has disposed of his stock th ro u g h the
W alters Com pany to W alter Otto, form ­
erly engaged in th e banking business
in th e irrig ated section of w estern Ne­
brask a and m ore recently presid en t of
th e F irs t N ational B ank of R iverton,
W yoming. Mr. Otto has been elected
presid en t of th e W aln u t State Bank, to
succeed Mr. B rehm er. T his bank has
$25,000 capital, $20,000 su rp lu s and
profits, and deposits of $252,000.

I 16 Per Cent

Otto T. B rehm er, p resid en t of the
W alnut S tate B ank of W alnut, Iowa,

F inal dividends of 20 per cent will
be paid by th e F arm ers Security Sav-

T he new low type fixtures at th e
C entral S avin gs Bank, Eldridge, has

added g reatly to ap p earance and con­
venience.
T he State B ank of Ledyard, located
in a tow n w ith a p opulation of 350, has
footings of over $520,000. Loans and
discounts, including corn loan, am ount
to $507,000.

UR service is well rounded and
we are equipped to handle not only
your commercial items, but all items
on the Sioux City live stock and
grain markets as well.

T he F ir st T rust & S avin gs Bank,
W heatland, is a p rogressive bank, w ith
deposits of $500,000; 1 p er cent in te r­
est has been paid on deposits for th e
last fo u r years.
T he L iberty T rust B ank a t D urant
has enlarg ed officers’ q u a rte rs and
m ade o th er im provem ents, including
com pletely covering th e floors w ith
new linoleum .

O F FIC E R S
A. S. H A N F O R D
P resident

J. R. G R A N IN G
A ssista n t Cashier

A. G. SAM
V ice President

E. A. JO H N S O N
A ssista n t Cashier

J. T. G R A N T
J. P. H A IN E R
A ssista n t Cashier
V ice President
F R IT Z F R IT Z S O N , V ice President & Cashier

B usiness is good a t th e H ay esv ille
S urplus and profits
w ere increased $5,000 d u rin g th e last
six m onths, and resources w ere in ­
creased 20 p e r cent, or about $75,000.
Savings Bank.

Chas. A. C uhel w as nam ed a directo r
of th e Sw isher B ank, succeeding W.
M. H olets.

R ecent F lo rid a v isito rs w ere R egi­
nald F igge, cashier of th e G u aran ty
B ank & T ru s t Com pany, Cedar R ap­
ids, and Mrs. Figge, and J. M. H u tch in ­
son, tr u s t officer of th e D avenport
B ank & T ru s t Com pany, and w ife and
tw o dau g h ters. Mr. Figge accom ­
plished w h a t h u n d red s of those fishing
in F lo rid a w aters try to do, b u t don’t.
H e caught a sail fish m easu rin g five
feet and te n inches.

B
A
N
K
■_
IN SIOUX CITY
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Federal Reserve Bank of St. Louis

August 19M

54

•
ings B ank at Cleves at th e office of th e
Peoples Savings B ank there.
The b an k w ill have paid out 100 per
cent and in addition depositors w ill re ­
ceive 16 p er cent in te re st as a p a rt of
th e final dividend.
The c h a rte r of th e S ecurity Savings
B ank w as ta k e n over by th e Peoples
Savings B ank of W ellsburg, w hich w ill
m ain tain an office a t Cleves.

Commercial Loans
F o rty p ercen t of Iow a’s com m ercial
bank s m ade m ore th a n 584,000 loans

I O W A

N EW S

to talin g over $382,000,000 to business
firm s and individuals th ro u g h o u t the
state d uring th e y ear 1939, according
to th e second sem i-annual survey of
bank lending activ ity of the A m erican
B an k ers Association.
The survey, w hich w as particip ated
in by 264 banks, or 40 p er cent of the
646 com m ercial banks of th e state,
show ed a definite expansion of bank
cred it in th e field of new loans. The
n u m b er of new loans m ade betw een
Ju ly 31st and D ecem ber 31st w as 11,862
g reater, or 6 per cent g reater, and the

C e n t r a l H a n o v er Ba n k and T ru st Co m pa n y
NEW YORK

Statement of Condition at Close of Business
June 29^ 1940

ASSETS
Cash and Due from B a n k s ....................................... $ 7 2 9 , 7 6 6 , 4 7 4 . 7 4
U. S. Government Securities..........................................3 7 1 , 2 6 1 , 3 6 9 . 4 4
State and Municipal S e c u r i t i e s ...........................
2 6 , 3 5 0 ,6 7 7 .9 5
Other S e c u r i t i e s ......................................................
24,9 96 ,108 .61
Stock in Federal Reserve B a n k ...........................
2 ,4 3 0 ,0 0 0 .0 0
Loans and Bills P u r c h a s e d .......................................... 1 5 8 , 9 6 4 , 7 1 1 . 1 8
Real Estate Mortgages...............................................
7 ,0 8 9 ,9 5 3 .4 2
Banking H o u s e s ......................................................
15 ,2 18 ,0 10 .0 0
Other Real E s t a t e ......................................................
1 , 6 5 2 , 0 3 0 .5 6
Interest A c c r u e d ......................................................
1, 8 8 7 , 4 4 7 . 9 1
Customers’ Liability Account of Acceptances
.
3 ,7 15 ,4 4 8 .4 4
Total $ 1 , 3 4 3 , 3 3 2 , 2 3 2 . 2 5

LIA B IL IT IE S
C a p i t a l ................................. $ 2 1 , 0 0 0 , 0 0 0 . 0 0
S u r p l u s ................................. 60,000,000 .00
Undivided Profits
. .
.
1 3 , 2 8 5 ,3 2 9 . 0 8
Reserve for Taxes,
Interest Accrued, etc.........................................
Dividend Payable
July 1, 1 9 4 0 ......................................................

$ 9 4 ,2 8 5 ,3 2 9 .0 8

5»735 »^I 5-59
1,0 5 0 ,0 0 0 .0 0

Acceptances...................................................................
3 >949 »2 ^0 - 3°
Deposits......................................................................... 1 , 2 3 8 , 3 1 1,8 2 7 . 2 8
Total $ 1 , 3 4 3 , 3 3 2 , 2 3 2 . 2 5

There are pledged to secure public monies and to qualify for fiduciary powers
U. S. Government S e c u r itie s ..................................
M ember Federal Deposit Insurance Corporation

Northwestern Banker

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

August 1940

•

$6 , 3 8 0 , 3 3 1 . 6 1

dollar volum e of new loans m ade d u r­
ing th is period w as $12,073,220, or 13
p er cent g re a te r th a n rep o rted by an
equivalent n um ber of banks for the
previous six m onths.
The 264 banks rep o rted th a t d u ring
1939 th ey made:
387,322 new loans to taling $199,138,664
192,650 renew als of loans totaling
$119,135,050
5,011 m ortgage loans to taling $14,583,603
A total of 584,983 to taling $332,857,317
The su rv ey reveals th a t business
firm s in th e state are using less th an
tw o-thirds of th e “open lines of cred it”
m aintained for th e ir use on th e books
of th e banks. T w enty-nine banks in
the larg er centers of th e state reported
th a t th ey carried on th e ir ledgers d u r­
ing th e second half of th e y ear $21,126,325 in “open lines of c red it” consisting
of specific am ounts of credit offered to
and kep t available for established b o r­
row ers for use as needed by them . Of
th is am ount $12,843,337, or 60.7 per
cent, w as actually used.
The average n u m ber of new loans
m ade p er b ank w as 1,467 an d th e av er­
age new loan w as $514.
The average nu m b er of renew als per
b ank w as 730 and the average renew al
w as for $618.
The average n um ber of m ortgage
loans per ban k w as 19 and th e average
m ortgage w as for $2,910.
The Iowa survey w as p a rt of a n a­
tional b ank lending activity survey,
m ade by th e A m erican B ankers Asso­
ciation.

Claims Approved
Judge R alph W. H asn er of W aterloo
recently approved a n um ber of claim s
against th e M asonville Com m unity
C redit U nion of M asonville, w hich has
operated for several m o nths as so rt of
a b anking in stitu tio n m anaged by
farm ers and o thers of th e M asonville
com m unity.
Judge H asn er approved a claim
against th e organization for $2,655.54
in favor of th e M asonville cream ery,
and an o th er claim for $1,181.54 in favor
of Thom as C. Rowell, M asonville ele­
v ato r operator.
Judge H asn er ordered th a t all others
having claim s ag ain st th e union m ust
p resen t th em before A ugust 8th, and
ru led th a t any objections to these
claim s by th e credit union m u st also
be filed by th a t date.
W A N T T O B U Y — C o n tro llin g sto c k o r
m in o r ity i n te r e s t in n o r th c e n t r a l o r
n o r th e a s te r n Io w a b a n k . A d d re s s C. W .
c a re
of N o rth w e ste rn
B a n k er,
D es
M o in e s, Io w a .

55

•
Travelers Enters
Bonding Field
A nnouncem ent has been m ade by
T he T rav elers In d em n ity Com pany of
th e p ersonnel of th e com pany’s new
fidelity and su re ty organization in
charge of the business in Des Moines

I O W A

NEWS

•

Mr. Proudfoot is a n ative of Indianola, Iowa, and is a grad u ate of th e U ni­
v e rsity of Chicago L aw School, hold­
ing Ph.B. and J.D. degrees. He has
been associated w ith th e bonding bu si­
ness since 1926.
Mr. K ahl w as b o rn in L afayette,
Indiana, and received his education in
th e public schools of th a t city. In
addition he holds an LL.B. degree
from th e Jo h n M arshall L aw School
in Chicago, Illinois, and en tered th e
bonding field in 1930.

W hy He Resigned
A desire to devote his tim e to the
cause of th e religious sect, Jeh o v ah ’s
W itnesses, w as given by Otto T.
B rehm er as the reason for his resig­
nation as presid en t of the W alnut
S tate Bank.
“I have decided to take m y stand
fully on th e side of God and H is K ing­
dom and give allegiance to H im ,” B reh­
m er said. He declared the “B attle of
A rm ageddon” is at hand.

E. V. P R O U D F O O T

and M inneapolis. E d w in V. Proudfoot
has been appointed assista n t m an ag er
of th e fidelity an d su re ty d ep artm en t
in th e com pany’s Des M oines office;
and Jo h n K ahl has accepted th e assistA ssets of the Pioneer— a handful of household effects, a prairie schooner and a team of oxen or
horses PL U S those valuable yet intangible assets of CONFIDENCE, OPTIMISM, INITIA TIVE,
IND U STR Y AND THRIFT.

A MIGHTY NATION MOVES WESTWARD
— and A m erica b lossom s into the m ost productive
and m ost diversified nation of all time.
unique service in C hicago for Banks and their
customers of this fast-grow ing agricultural area.

From the close of the civil w ar to the 1890's, the
greatest migration in history gain ed momentum;
reached its am azing clim ax (1885-1893) w hen
governm ent land s w ere "opened up" and free
farms of 160 fertile acres w ere m ade ava ila b le
to each settler just for the "settling." Oldtime
cow b oys, far-flung ranches and picturesque
round-ups disap p eared —subm erged under w a v e
after w a v e of e a g er pioneers w ho pushed the
frontiers of civilization constantly forward until
the m idw est and w e st w ere joined in one vast
m anufacturing and food-producing empire.

True, pioneer d a y s and need s of yesterd a y have
long since p a ssed . But the rich experiences
gain ed then, g ive background and m eaning to
present d a y affairs. And a changin g w orld pre­
sents n ew horizons; a m aze of n ew problems to
be solved ; a new call upon those sam e valu ab le
pioneer characteristics—now a s before.
The Drovers brings to ev ery banking problem
the helpfulness and benefits of long experience
PLUS the progressive view point so much needed
in the fast m oving w orld of today. It's a "nat­
ural" as a C hicago Correspondent for m idw estern Bankers w h ose customers ship live stock to
Union Stock Yards.

The Drovers N ational Bank is proud to h ave ha 1
a part in this great w estw ard expansion. Estab­
lish ed in 1882— seven teen years after the Civil
War— it quickly d evelop ed a com plete and

M em b e r s F ed eral D e p o s i t Insurance Corporation
J OHN KAHL

a n t m an ag ership of th e fidelity an d
su re ty d e p a rtm e n t in th e M inneapolis
office. The T rav elers e n te rs th e bond­
ing field Ju ly 1st in order to com plete
its portfolio of in su ran ce coverage.

DRDVERS NATIONAL BANK
: DROVERS TRUST & SAVINGS BANK
UNI ON
E>v

STOCK

YARDS,
•

CHI CAGO
...............

Northwestern Banker

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

August 1940

56

News From

DßS

J. VAN L IE W , vice p resid en t of
♦ th e Capital City S tate B ank and
dean of Des M oines b an k ers, re tire d
last m onth a fte r 52 y ears of service
w ith th a t bank.
Van Liew had been a vice p resid en t
of th e b an k for th e last 21 years, and
a m em ber of the board of directors for
32 years. He began as a collector J a n u ­
ary 31, 1888, and has been w ith th e
b an k continuously since th a t date.
Van Liew w as a guest of directors,
officers and em ployes of th e b an k at
W akonda Club a t a dinner. He w as
p resen ted w ith a radio.

D

Check tran sactio n s th ro u g h b anks of
nine leading Iow a cities show ed a gain
of $50,277,000 for th e first six m onths of
1940 as com pared w ith those of th e cor­
responding six m onths of 1939.
The to tal for th e first half of th e
p rese n t y ear w as $1,340,974,000, w hile
th a t of th e like period of last y e a r was
$1,290,697,000.
Of th e to tal increase in check p ay ­
m ents, $2,033,000 w as reg istered d u r­
ing th e first q u a rte r of 1940, and $48,244,000 d u rin g th e second q u arter.

B A N K E R S ---- Y O U ’ L L

FIND

IT

PROFITABLE

As check tran sactio n s th ro u g h banks
fu rn ish an accurate p icture of the
m ovem ent of m oney in local com m uni­
ties and th e state at large, indications
are th a t Iow a business w as m uch m ore
active d uring th e second q u a rte r of the
y ear th a n th e first.
Des Moines led th e state in check
tran sactio n s for th e six-m onth period,
w ith a total of $559,439,000. Sioux City
w as second w ith $216,509,000, Cedar
Rapids in th ird place w ith $145,110,000,
and D avenport ran k ed fo u rth w ith
$131,739,000.
Iow a’s 297 savings banks, 243 state
b anks and th ree tru s t com panies had
to tal resources of $486,872,883 as of
Ju n e 29th.
The average cash reserv e in all
banks w as 28 p er cent.
The resources show ed an increase
of $40,190,539 over those of Ju n e 30,
1939, and a decrease of $7,614,782 from
M arch 26, 1940.
L isted am ong assets of th e banks
were: Loans and discounts, $296,836,771; credits subject to sight drafts,
$106,322,710; U nited States securities,

TO

USE

ADVERTISING

D. R. WESSLI NG, PRESI DENT

^

BY

WESSLING

OUÏE A, D T
ovea

$45,127,956; securities g u aranteed by
the U nited States governm ent, $14,613,434, and cash on hand, $14,003,139.
D eposits to taling $438,922,631 w ere
on h an d Ju n e 29th, an increase of
$37,599,063 over Ju n e 29, 1939, b u t a
decrease of $8,316,626 from M arch 26,
1940.
The Iow a assessm ent on public de­
posits held by banks ceased last m onth
for th e first tim e in 15 years.
The assessm ent am ounted to 1 p er
cent a year on 90 p er cent of th e daily
balance of public deposits held by th e
banks.
The state tre a s u re r’s office notified
banks holding such deposits th a t th e
assessm ent w ill n ot be m ade for th e
six m onths beginning Ju ly 1st.

Garden Picnic
The g arden a t th e L. R. B assett
home, N evada, w ith its new outdoor
fireplace and its garden table and
chairs provided a delightful settin g for
a picnic get-together of th e Nevada
N ational B ank force, w hich honored
Mr. and Mrs. H arlan Sarsfield.
The delicious d in n er w as served
about 7 o’clock. Mr. and Mrs. Sarsfield
w ere presented w ith a w edding gift
from th e bank group.
Those p resen t w ere Mr. and Mrs.
Sarsfield, Mr. and Mrs. B assett and
daughter, Peggy, M uriel Shaw, Mr. and
Mrs. G. L. H en ry and fam ily, Mr. and
Mrs. F. G. K ing and fam ily, Mr. and
Mrs. F. G. McConnell, Mr. and Mrs.
E. F. Schoonover, Mr. and Mrs. H ow ­
ard Rem ien, Miss R u th McCollom and
Leslie H enderson.

Boone A . I. B.

OVER *2000- NET PROFIT^
ON A *200 INVESTMENT
IN ONLY TWO YEARS!
—N a m e o f B a n k o n R e q u e s t
Increase Revenue, Secure NEW Cus­
tomers, Create Good Will with the
Amazing “ PAYC” Plan.
New customers and greater profits are yours
with PAYC (Pay As You Check) Plan. That
is because small depositors, wage earners like
this new, convenient service. It solves your
“money-order” problem; ends minimum bal­
ance, service charge problems; simplifies ac­
count handling; ends check charge comput­
ing; and provides uniform handling in ad­
vance. Many leading banks now using this
plan. Write today for full details.

U n it e d

S t a t e s

1309-15 HOWARD STREET
Northwestern Banker

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

August 19^0

WRITE FOR PROFIT BUILDING
DETAILS TODAY
Get your share of this small depositor
business. Write today, let us show
you. PAYC copyrighted but no royalty
charged. Complete details of plan on
request. Address Dept. NW-A.

C h e c k
•

B o o k

C o .

OMAHA, NEBRASKA

E ig h t Boone county b an k ers recen t­
ly received certificates signifying com­
pletion of a four-year course as p re­
scribed by th e A m erican In stitu te of
Banking.
Those receiving th e certificates are
A. C. H erm an and E. E. W eim er of the
Citizens N ational Bank, R. M. W ilson,
A. B. D eering, Jr., and C. M. Canady of
the Boone State B ank and T ru st Com­
pany, and A rnold Boehm, H. A. Boehm
and R ichard Nachazel, all of Ogden.
The course w as sta rte d four years
ago by T. L. A shford for Boone county
b ank employes. He tau g h t the first
year w ith th e subject being “B ank Or­
ganization.” L. R. Johnson w as in ­
stru cto r for tw o years, teaching “Com­
m ercial L aw ” and “N egotiable In s tru ­
m en ts,” w hile P rofessor S chram pfer
of Iow a State College ta u g h t the final
y ear w ith th e subject being “Econom ­
ics One.”
R. M. W ilson w as p resid en t for th ree
years of th e class, w ith A rnold Boehm
being presid en t th is p ast year. V ern

57
K uhl w as elected p resid en t for the
com ing y ear and th e class will be con­
tinued.

Annual Meeting
The a n n u al m eeting of th e officers
an d stockholders of th e O akland Sav­
ings B ank w as held T uesday evening,
Ju ly 2nd. Re-elected for th e com ing
y ear w ere th e follow ing officers and
directors:
W. L. Spencer, president; H. H.
Spalti, vice president; M. H. E vans,
cashier; J. J. E vans, D. J. Spencer and
H. R. Spencer, a ssista n t cashiers; W.
L. W hite and E. E. Spalti, directors.
A h ighly successful year, both from
th e stan d p o in t of profits and totals,
w as revealed in th e a n n u al report. The
officers of th e b an k pointed out an in ­
creased to tal of local loans m ade d u r­
ing th e y e a r and a continued b rig h t
outlook on business conditions for th e
com ing year.
Still active in th e affairs of th e b ank
is one of its founders, H. H. Spalti.
Mr. Spalti helped organize th e bank in
1892. It w as incorp o rated in 1907.

Keokuk A . I. B.
H arold F. M artin, a ssista n t cashier
of th e S ecurity State Bank, w ho has
been A. I. B. w ork en th u sia st No. 1 in
K eokuk, being in stru m e n ta l in th e o r­
ganization of the Study G roup tw o
y ears ago and hav in g served as p re si­
d en t of th e group for th e tw o y ears th e
class has been in existence, is receiv­
ing co n g ratu latio n s from his friends
on th e successful passing of his b ar
exam in atio n recently. H arold has been
w ith th e S ecurity S tate B ank for th e
p ast six y ears and has studied law
th ro u g h th e correspondence course of
th e A m erican E x ten sio n of Law School
a t Chicago since Septem ber, 1935. He
passed his ex am ination and w as ad­
m itte d to th e b a r on Ju n e 25, 1940.

Dies in Oskaloosa
Jam es W. W illiam s, re tire d Oska­
loosa business m an and civic w orker,
succum bed th e re recen tly follow ing an
extended illness, a t th e age of 82 years,
five m onths and 13 days.
Mr. W illiam s w as a self-educated
m an and rose from th e ra n k s of a
lab o rer in th e m ines at Beacon to one
of O skaloosa’s o u tstan d in g citizens
w ho n o t only acquired som ew hat ex­
tensive holdings and in te re sts locally
b u t w ho gave his la tte r y ears to u n sel­
fish com m unity service.

W H E N your customers are
in need of special or unusual
service, such as
Quick re tu rn s upon
doubtful items;
Close and reliable
credit information;
Investm ent counsel;
call upon this Bank.
Long- years of experience in
dealing with these and similar
banking problems enable us
to give you prompt and de­
pendable service.
... T H E ...

P H IL A D E L P H IA
NATIONAL BANK
ORGANIZED 1803

PHILADELPHIA, PA.
Capital, Surplus and Undivided Profits
$ 4 3 ,0 0 0 ,0 0 0
Member of Federal Deposit Insurance Corporation

YOUR STATE BANKERS ASSO CIA TIO N
O FFICIA L SA FE, V A U L T AN D
TIMELOCK EXPERTS

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

Northwestern Banker

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

August 19^0

58
He served as directo r of th e M a­
h ask a C ounty State B ank m an y y ears
and devoted m uch of his tim e to serv ­
ing th e Oskaloosa Young M en’s C hris­
tia n A ssociation and th e M ahaska
county Red Cross chapter, of w hich he
w as president.

The total of deposits am ounted to
$13,370,410.94, as com pared w ith $13,252,245.76 a y ear ago.

F in ish in g touches w ere m ade recen t­
ly on th e in terio r decorating of the
Com m ercial State B ank in Denison.
U nder th e supervision of D enison
m en, th e sidew alls and ceiling w ere
covered w ith celotex. Low er half of
th e w alls is of d ark green m aterial, the
balance and th e ceiling are covered
w ith m odernistic blocks, light green in
color.
L atest type fluorescent lights w ere
placed in the ceiling.
Rem odeling th e bank m ark s 21 y ears
of continuous operation for th e estab­
lishm ent.
P re sen t officers are: J. W. M iller, Jr.,
president; L. C. Thiedem an, vice p resi­
dent, and J. J. Miller, cashier. D irec­
to rs include J. W. and J. J. Miller,
T hiedem an, W. E. K ahler and F ra n k
Hoffm ann.
A ctive along w ith th e M iller b ro th ­
ers in serving p atro n s of th e b ank are
George Sievert, a ssistan t cashier; Rae
Hoffeins, teller, and Joyce N ahnsen,
stenographer.

The an n u al m eeting of th e stockhold­
ers of th e State B ank of L ed y ard was
held at th e b an k w ith th e re-election
of all of th e officers. T hey are: P re si­
dent, Mrs. Levi W eim er; first vice p re s­
ident, W. C. Carlson; second vice p re si­
dent, E d T. H alvorson; directors, D. A.
C arpenter, H erm an Goetz and Mrs.
F ra n k W eim er; cashier, W illiam E.
W eim er.

Resources Increase
R esources of W aterloo’s tw o b anks
increased a to tal of $163,332.82 durin g
th e six-m onth period ending Ju n e 29th,
statem en ts of condition revealed.
D eposits show ed a gain of $118,165.18
du rin g th e six-m onth period, w ith both
banks sh arin g in th e increase.
R esources as of Ju n e 29th totaled
$14,334,108.42, as com pared w ith the
total of $14,170,775.59 on th e sam e date
a year ago.

NATIONAL

BANK
O

LA

The Security T ru st & Savings Bank,
Shenandoah, of w hich E. C. F ishbaugh
is president, has declared its sem i­
ann u al dividend of 4 p er cent. T his
is th e thirty -eig h th dividend the bank
has declared since it opened 31 y ears
ago.

Bank Remodels

Officers Named

AMERICAN

Dividend

S A L L E

AND

N EW S A N D VIEW S
(C ontinued from page 14)
conceivable dem and and a t th e low est
rates in history. N evertheless, th e
suggestion has been advanced in cer­
ta in q u a rte rs in W ashington th a t th e
governm ent m ight have to take over
th e functions of financing th e indus­
trial side of preparedness. Such a
step would, of course, be one of th e
T rojan horse m aneuvers th a t m u st
be exposed to public scru tin y if w e
are not to n u rtu re in our ow n m idst
one of th e characteristics of to ta lita ­
rian ism ag ain st w hich we are p re ­
p arin g to defend ourselves.”
In these days w hen th ere is a con­
siderable am ount of pessim ism and
defeatism in th e air, p erhaps th e fol­
lo w in g op tim istic an a ly sis of the fu ­
ture by one of th e leading in v estm en t

TRUST

COMPANY

j

S T R E E T

AT

W A S H I N G T O N

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Statem ent o f Condition ^

1 |, as o f J u n e 29, 1 9 4 0
w

RESOURCES
CASH

AND

DUE

FROM

BANKS

.

.

LI A B I LI T I ES

.$ 2 6 ,3 2 2 ,6 3 6 .6 6

.

U . S . G O V ’T O B L I G A T I O N S — D I R E C T A N D
F U L L Y G U A R A N T E E D ...............................................

12,910,565.60

CAPITAL

STO C K — PREFERRED

CAPITAL

STOCK— COM M ON

SURPLUS

.

.

UNDIVIDED
MUNICIPAL

AND

OTHER

M ARKETABLE

14,402,923.35

s e c u r i t i e s

LOANS AND

FEDERAL

DISCOUNTS

RESERVE

BANK

.

_

_

____________

STOCK

_

.

.

19,681,287.82
78,000.00

.

.

.

.

PRO FITS

.
.

.
.

.
.

.

.

.
.

.

.

.

.

.

.

600,000.00

.

.

.

.

1 ,0 0 0 ,0 0 0 .0 0
1 ,0 0 0 ,0 0 0 .0 0

.

.

.

.

.

.

.

.

PREFER RED STOC K R ETIR EM EN T FUND
RESERVE
FOR
TAXES,
TIN GENCIES, ETC..
.
UNEARNED

.

INTEREST,
. . . . .

_

_

C ON­
. .

D I S C O U N T ............................................. .......

LIA BILITY

ON

A C C E P T A N C E S

.

.

.

6 5 1 ,5 8 8 .6 5
140,000.00
921,133.58
167,071.25
12,602.35

DEPOSITS:
C U STO M ER S'
ANCES

LIABILITY

ON

ACCEPT­

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

.

d e m a n d

12,602.35

SPECIAL

.

.

.

.

DEPOSIT

-

.$ 5 6 ,7 3 9 ,2 3 9 .9 0
3,750,671.94

(Subject to court order)
ACCRUED

IN TEREST

REAL ESTATE
OTH ER

RECEIVABLE

OWNED

Northwestern Banker

_

.

212,247.62

August 1940

UNITED

STATES

G O V ’T

OTHER

PUBLIC

FUNDS

1.00
s a v i n g s

33,075.50
$73,653,339.90

A S S E T S .


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

_

OTHER

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

TIM E

DEPOSITS

2,6 0 0 ,0 0 0 .0 0
135,662.79
5,7 1 0 ,3 6 9 .4 4
225,000.00

69,160,944.07
$ 73.653.339.90

59
services is w o rth considering. H ere
it is:
“Of one th in g we are ce rta in —A tr e ­
m endous in d u stria l and re a rm a m en t
boom —One th a t w ill tak e at least five
y ears, and possibly ten (if th e ‘cycle’
th e o ry has n o t been u p set by H itler)
—and one on w hich ev en tu ally m ore
th a n 20 billion dollars w ill be spent.
T h a t boom w ill abolish u n em ploym ent
and m ake for a ‘full d in n e r pail.’ A nd
m o st im p o rta n t a U N IT E D NATION
—one n ot based on CLASS H A TRED
w ill em erge. E ach w ill get his sh are
according to ability, train in g , and IN I­
T IA T IV E . That is w h at W illkie stands
for. E v en tu ally stock m a rk e t prices
w ill respond to th e influence of in ­
flation—balanced in due m easu re by
im posed tax atio n on profits. Trading

frie n d ly
C
D e s ¿ M fo in e s

íS a n k

offering complete ,
modern facilities —

V alley
SAVINGS BANK

in the n ext five years should have none
of the hectic p henom ena of the last
th ree years. I t should re p e a t th e Bull

DES MOINES

p erio d of 1932-1937 w ith o u t bearin g a
‘baby b e a r’ ev ery few m onths. W h at
is said about stocks holds good to com ­
m odities—such as w heat. E dible com ­

Member Federal Deposit Insurance Corporation

Officers

Frederick M. Morrison, P resident
Winfield W. Scott, V ice P resident
J. R. Astley, Cashier
Edward P. Kautzky, A ssista n t Vice President
Marvin L. Payne, A ssistan t Cashier
Frank M. Thompson, A ssistan t Cashier

m od ities should m ove h igh er because
of the exp ected fam in e in E urope and
the fact that w e m ay h ave to feed a
great part of the w orld during the n ext
few years. ‘FOOD IS A W EA PO N ’. It

is m y opinion th a t th e tim e is n ear
w h en Ave, w ith F U L L G RA N A RIES
will n o t only dictate DEMOCRACY to
a sta rv in g w orld b u t ‘m ake th em like
i t ’.
“W h at is th e actual cost of a per­
son al loan ” is a v ery in te re stin g pam ­
p h le t recen tly sen t out by W illiam G.
Rabe, vice p re sid e n t of th e M anufac­

tu r e r s T ru s t Com pany, 55 B road
S treet, N ew York.
In his le tte r to th e N orthw estern
B anker , Mr. R abe says, “This is the
first tim e, we believe, th a t an y b an k
or lending in stitu tio n has set fo rth
fu lly an d fra n k ly th e tru e costs of a
perso n al loan in term s of discount,
sim ple in te re st and actual dollars and
cen ts.”
If you have n o t received a copy of
th is v ery in te re stin g folder, we are
su re th a t Mr. Rabe w ill be glad to send
one to you.

fp /h e cB fiite m r i o f * 0 e m e r m o

y

OMAHA

>

AIR-CONDITIONED for year 'round comfort.

»

V /
V /
V /

FONTENELLE

»

V/

HOTEL

»

V /
V /
N /
V /
V /
\ /
V /

Delving into the future, the designers of the
recreated Fontenelle have set the style for the
hotel of the next decade. Beauty and comfort
are emphasized in the new features and in
the new interiors throughout the hotel including lobbies, guest rooms, dining and
entertainment rooms, and the convention facil­
ities-all of which depict the fashion of 1940.

»

Controlling stock, northern Iowa town
of 900 $25,000.00. Address C. B., c/o
NORTHWESTERN BANKER, 555 Seventh
St., Des Moines, Iowa.

THE HOTEL OF TODAY

»

Bank fo r S a le

H

»

The F rench are rap id ly finding out
th a t th e y are not to be responsible for
a d m in istra tio n in th e occupied areas
of th e ir country. Objections have al­
read y been m ade to G erm any th a t th e

fiiiiiJ

y

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

Northwestern Banker

August Í9W

60

YOUR GRACIOUS HOST
FROM COAST TO COAST

*PÍ

« O

,,

arm istice term s have been violated
because G erm any has issued an order
w hereby th ey assum e control of all
cu rren cy in th e occupied area and re ­
quire all banks to subm it lists of v alu ­
ables for th e ir own or personal ac­
counts.
T hese
valu ables
include
stocks, bonds, gold, precious stones,
currency and all other sim ilar objects
of value.

If F ran ce th in k s th a t she is going
“to get off easy” u n d er G erm an dom i­
nation, she is rapidly finding out the
contrary.

The Gotham

The U nited States D epartm ent of
Com m erce th ro u g h figures recently is­
sued, show th a t exp orts of airplanes
and o ther aeronautic products in May
1940 w ere valued a t $22,590,000, as com­
pared w ith $21,795,000 in A pril 1940
and $10,365,000 in May 1939.
The C ontinental Illin o is N ational
B ank and T rust Com pany of Chicago

The .Drake
The Dlachstone

has recen tly p u t out a new booklet,
“W h at a T ru st D epartm ent Does”.
Copies have been distrib u ted to all
officers, division m anagers and su p er­
visors of the bank and in addition
some of th e booklets have been d istrib ­
uted outside th e bank according to
Ju liu s K. W aibel, ad v ertising counsel
of th e bank.

The C ontinental Illinois N ational
B ank and T ru st Com pany has also
published a “S tenographic M anual”
for th e benefit of every ty p ist and
sten o g rap h er in th e institution.
Som ething new and o u tstanding in
sum m er e n te rta in m e n t w as p u t on
Ju ly 29 to A ugust 3 in Sioux City u n ­
der th e nam e of “Sioux City’s $25,000
Sum m er Circus.” We are advised by
Carl F redericksen , presid en t of the
Live Stock N ational Bank, it w as one
of the m ost spectacular events ever
staged in th a t energetic m etropolis.
Carl also sent a n um ber of tickets to
th e event w hich w as sponsored by
business men, m an u factu rers, bankers
and Sioux City people in general, w ho
sent out in vitations to m ore th a n 400,000 people in Iowa, N ebraska, M inne­
sota and South Dakota.
S tars of vaudeville, m usical comedy,
Sioux C ity’s fam ous w hite horse p a­
tro l and W orld Cham pion M onahan
Post B and w ere on h and to e n te rta in
the visiting thousands in this Sum m er
Festival. Twice a day th ere w as a
big m usical com edy program in the
G randview P a rk band shell and tw ice
a day also the circus perform ed at the
Stock Yards ball park.
“H in ts for H u stlers” is th e nam e of

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Northwestern Banker

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

August 19b0

61
a booklet issued by th e E d u catio n and
P ublic R elations Com m ittee of th e Mis­
so u ri B an k ers A ssociation, of w hich
W illiam S. Sherrill, ad v ertisin g m an ­
ag er of th e F irs t N ational B ank in St.
Louis, is a m em ber. In fact Bill is
now serv in g his th ird consecutive y ear
on th is v ery im p o rta n t com m ittee.
The booklet has received v ery fav o r­
able com m ent from b a n k ers in Mis­
so u ri an d in m any o th er states
th ro u g h o u t th e country.

j

W ith F ran k lin I). R oosevelt b re a k ­
ing a 150 y e a r preced en t by allow ing
him self to be a candidate for a th ird
term an d w ith H en ry A. W allace
forced on th e dem ocratic delegates
for th e vice p residency because th e
"big boss” said th e y m ust, th e com ing
cam paign looks like a v ery in terestin g
an d exciting one.
Incidentally, as th e new dealers seek
to b re a k all th e ru les by continuing
in pow er for 12 y ears a "look a t th e
re c o rd ” show s th a t th e to tal gross
U n ited States public debt o u tstan d in g
is 49 billion dollars and th e g u a ra n ­
teed debt is $5,532,000,000. All obli­
gations, including g u a ran teed issues,
to ta l n early 38 tim es the G overnm ent
debt w h en the U nited S tates entered
W orld W ar No. 1.
J. W . M assie, au d ito r of th e R epub­
lic N ational B ank of Dallas, and p re si­
d en t of th e N ational A ssociation of
B ank A uditors and C om ptrollers, a n ­
nounces th a t th e ir six teen th an n u al
convention w ill be held in St. Louis,
M issouri, O ctober 16 to 19, 1940.
A v ery fine pro g ram is being a r­
ran g ed and capable and o u tstan d in g
m en w ill discuss such subjects as
“A u d ito rs’ and C om ptrollers’ R eports
as an Aid to B ank M anagem ent”, “In ­
sta llm e n t L oans—-Audit and C ontrol”,
“T ru s t A udits and C ontrols”, “The
O bjectives of B ank S up erv isio n ”,
“M ortgage L oans—A udit and C ontrol”,
“E d u catin g th e B ank A u d ito r”, and
“B an k ’s R eserve A ccounts”.
A uditors, com ptrollers, and o th er
b an k m en are u rged to a tte n d and lis­
te n to these v ery in te re stin g discus­
sions.
C hester C. H am m ond is ch airm an of
th e convention com m ittee and those
desirin g to m ake reserv atio n s can
w rite him care of th e F irs t N ational
B ank of St. Louis.

T he follow ing b an k ers in th e N orth ­
B anker te rrito ry g rad u ated in
th e 1940 class of th e Graduate School
of B an king at R utgers. T here w ere
232 m em bers in th e g ra d u a tin g class.
K. J. M cDonald, Iow a T ru st and Sav­
ings Bank, E sth erv ille, Iowa; Oscar A.
Otto, W h itn ey L oan and T ru st Com­
pany B ank, A tlantic, Iowa; S. H. F in ­

w este rn

ger, F irs t Service C orporation, M inne­
apolis, M innesota; M ilford E. L ysen ,

F ederal R eserve Bank, M inneapolis,
M innesota; T heodore D. Maier, F irst
N ational Bank, St. Paul, M innesota;
O. H. Odin, M arquette N ational Bank,
M inneapolis, M innesota; Otis R. P res­
ton, F ed eral R eserve Bank, M inne­
apolis, M innesota; H arold B. Thom son,
F a rm ers and M erchants State Bank,
Presho, South Dakota.
Cedric H. Sm ith, presid en t of Sm ith,
B u rris and Company, 135 South La
Salle Street, Chicago, has ju st issued
a m em orandum on the business o u t­
look and the security business w hich
is one of th e m ost concrete and p o ten t
analyses of th e secu rity business
w hich we have read in a long tim e.
If you h av en ’t received a copy we
suggest th a t you w rite and get one.
Am ong o th er things Mr. Sm ith says
is this: “We, in th e secu rity business,
are too easily licked. If th e w ind isn ’t
blow ing from th e w est, we assum e we
can ’t sail eastw ard. Yet a couple of
stro n g arm s can row a boat even if
th e re ’s a calm. T h a t’s w h at th e finan­
cial fra te rn ity forgets. I ’ve seen se­
curities sold w hen th ey all said it
couldn’t be done. B ut th e y ’ve been
sold—not order-taken.
“R ight now th e security selling-andtra d in g business of this co untry has

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Northwestern Banker

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

August 1940

62
before it one of its g re a te st and m ost
golden o pportunities. I t is an oppor­
tu n ity for service to th e A m erican in ­
vestor. It is an o p p o rtu n ity to en ­
courage action—action on th e p a rt of
security b u y ers—action th a t w ill focus
a tten tio n on th e real secu rity barg ain s
th a t are rig h t in fro n t of our noses—
oppo rtu n ities we can touch, b u t can­
not see.”
The o th er day a b a n k e r frien d of
m ine in N ew Y ork sen t m e th e follow ­
ing le tte r w hich has been w ritte n by
W illiam H. Griffith to W en d ell W illkie:

“You m ay be in terested in th e fol­
low ing copy of a le tte r m ailed to W en­
d ell W illkie:

“We, th e people, nom inated him,
and we, th e people, m u st do all in our
pow er to elect him.
“T here is too m uch a t stake to over­
look any o p p o rtu n ity to serve our
country, our fu tu re, and our self-re­
spect.
“P erh ap s th is le tte r w ill suggest to
you sim ilar o p p o rtu n ities.”
275 M an h attan A venue,
Crestwood, Y ounkers, New York.

M ON EY INVESTED
HERE

S in c e i 8 y 8

LIB ER A L EARNINGS

is secured by
Well Built
Well Financed
ABOVE-average HOMES!
All accounts insured up to
$5,000 by an agency of the
Federal Government.

with
SAFETY
Statement on request

POLK COUNTY
FEDERAL

W a t e r lo o

S a v in g s & Lo an A ss n .

B u i l d i n g a nd L o a n

511 Seventh St.
DES MOINES
Assets $1,500,000.00

Association
East Fifth at Lafayette

W ATERLOO

IO W A

M e m b e r Fede ra l H om e Loan B ank S y s te m

Federal Home Loan Bank of Des Moines
DES MOINES, IOWA
STATEMENT OF CONDITION JULY 31, 1940
RESOURCES
Advances to M embers.....................................................................................................$14,507,062.50
U . S. Government Obligations and Securities Guaranteed by U . S............... 1,367,000.00
Accrued Interest R eceivable.........................................................................................
45,750.25
Deferred Charges .............................................................................................................
17,716.11
Cash ....................................................................................................................................... 3,117,294.77
$19,054,823.63
LIABILITIES
Members’ Stock Subscription.....................................
Government Stock Subscription.................................
♦Debentures Outstanding ..............................................
Premiums on Debentures ..............................................
Deposits .................................................................................
Accrued Interest P a y a b le..............................................
Surplus :
Reserves ......................................................................................... $471,571.38
Undivided Profits ...................................................................... 207,402.95

$ 2,523,200.00
7,394,900.00
7,500,000.00
1,250.00
916,103.82
40,395.48
678,974.33
$19,054,823.63

♦Participation in $48,500,000 consolidated Federal Home Loan Bank debentures out­
standing, which are the joint and several obligations of the tw elve Federal Home Loan
Banks.

Northwestern Banker

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

August 1940

“Mr. W en d ell W illkie,

care R epublican N ational Com m ittee,
W ashington, D. C.
D ear Mr. W illkie:
Based upon conversations w ith a
host of people these last few days, the
big question each m an is asking is
“W h at can I do n ex t to in sure p u ttin g
W illkie in the W hite H ouse?”
None of us, as yet, know s th e b est
an sw ers to th a t question because we
don’t know m uch about politics, al­
though you can be sure th a t before
m any m onths have passed we w ill be
going full steam .
M eanwhile, no m a tte r w h a t else
your cam paign requires, it w ill certain ­
ly need m oney—lots of it, probably,
because such opposition as you w ill
have seem s to have unique access to
unlim ited funds.
T herefore, sim ply as a first step, I
take pleasure in sending you $4.00—
one for m yself, one for m y wife, and
one for each of m y tw o children. W ith
th is m oney we send you th e best
w ishes and sincere su p p o rt of an
A m erican home.
V ery tru ly yours,
W illiam H. Griffiths.”
P h y llis Otto, the 15 year old (b irth ­
day A ugust 7th) d au g h ter of Oscar A.
Otto, vice p resid en t of th e AVhitney
L oan and T ru st Com pany of A tlantic,
won th e Iow a W om en’s Golf Cham ­
pionship recen tly a t W akonda Coun­
try Club, Des Moines, by defeating
K athleen Carey, V assar cham pion, of
Cedar Rapids. In th e first 18 of th e
36 holes of th e cham pionship flight
Miss Otto shot a 79, sm ashing Wak o nda’s com petitive course record for
women.

G uaranty Trust, New York
The statem en t of condition of th e
G u aranty T ru st Com pany of New York
as of Ju n e 30, 1940, published today
(Ju ly 2nd) show s total resources of
$2,600,724,024.70, as com pared w ith $2,653,187,645.96 at th e tim e of th e last
published statem ent, M arch 31, 1940,
and $2,215,168,135.01 on Ju n e 30, 1939.
D eposits of $2,302,794,072.60 on Ju n e 30,
1940, com pare w ith $2,343,234,641.08 on
M arch 31, and w ith $1,898,035,301.81 a
year ago.
H oldings of U nited States govern­
m ent obligations are show n at $959,055,409.42, as com pared w ith $840,110,253.69 on M arch 31 and w ith $636,527,767.39 on Ju n e 30, 1939. Cash on hand,
in F ederal R eserve Bank, and due
from banks and b an k ers is $1,134,793,036.68, w hich com pares w ith $1,239,001,641.16 on M arch 31, and w ith
$1,013,232,650.33 on th e corresponding
date a year ago.

A

N E W purpose for saving m oney
system atically began to be sug­
gested to A m erican com m uni­
ties w ith a com bined p opulation of
10,000,000 recen tly w h en 60 savings,
building and loan associations sta rte d
developing “Own - a - H om e S avings”
clubs. Sim ple in operatio n an d in ob­
jective, th e clubs seek to reach couples
w ho w ill w a n t hom es th re e y ears or
m ore from now and to s ta rt th e m ta k ­
ing som ething out of each pay envel­
ope now to lay aside for th a t home.
E xperien ce of recen t y e a rs h as show n
th a t th e first or “dow n” p ay m en t on a
hom e is th e biggest bugaboo a n y fam ­
ily faces w h en it sets out to acquire
pro p erty . Most people in o rd in ary
financial circum stances don’t have
$1,000 or $1,500 in cash w hich th e y can
sp are to in v est in a hom e, e ith e r now
or an y tim e later.
W h at to do about it is th e n e x t ques­
tion. One an sw er w hich has been a t­
tem p ted in th e p ast four or five y ears
h as been th e increasing w h ittlin g aw ay
at th e req u ired dow n paym ent. The
first plans for m u tu al m ortgage in s u r­
ance by a g o v ern m en t agency m ade
th e big leap of suggesting only a 20
p er cent dow n p ay m en t re q u ire m e n t
w h en 25 or 30 p er cent w as established
practice. W ith in a couple of y ears
th ey w ere proposing a m ere 10 p er
cen t dow n paym ent, an d now adays a
plan has been w orked out to build
$2,500 hom es for a nom inal 5 p er cent
dow n paym ent. B ut th e experienced
m ortgage lender, t h e experienced
cred it executive of an y sort, know s
th a t th is is n ’t good lending practice.
The o th er w ay to approach th e sam e
problem is to encourage th e prospec­
tive hom e-ow ners to accum ulate th e
dow n p ay m en t and th a t is th e objec­
tive of th e “Own-a-Home Savings”
clubs. Now th e m ost effective w ay to
encourage people is to pay th em for
doing som ething. So th e “Own-a-Home
S avings” clubs o perate on a plan w hich
pays th e fu tu re hom e-ow ner to accu­
m u late his dow n p ay m en t w ith m o n th ­
ly savings. Sem i-annual dividends are
credited on his savings club account in
th e sponsoring savings and loan asso­
ciation, and th e p er an n u m ra te is a n y ­
w h ere from 3 to 4 p er cent in th e asso­
ciations w hich have sta rte d th e clubs
so far. F o r exam ple, for a couple sav­

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

By G e o rg e W . W e st
President
United States Savings and Loan League

ing $25 a m onth to accum ulate a dow n
p aym ent for a $4,000 house in th ree
years, betw een $43 and $50 of th e to tal
accum ulation w ill re p re se n t dividends
credited by th e association and th e ac­
tu al m oney p u t in by th e savers w ill
be only $900. If five y ears are ta k e n to
save as m uch as $1,500 w ith m onthly
paym ents of $25, th e dividends w ill
am ount to $120 or so. T hus th e m em ­
b ers of th e new clubs are to be w ell
paid for th e ir pains of foregoing the
use of th a t $25 a m onth, or $15 or $50,
depending on th e kind of hom e th ey
w an t to build and how long th ey w an t
to save for it.
T here are obviously m any ad v an ­
tages in gettin g hom e-ow ners of th e
fu tu re to th in k in g about th e ir plans
several yaars ahead of tim e—ad van­
tages in addition to th e financial ones.
M em bers of these clubs—and th ey will
be bona fide clubs w ith th e ir ow n spe­
cial passbooks, m em bership cards, and
periodic com m unications designed for
m em bers—w ill have lots of tim e to
th in k about th e kin d of hom es th ey
w ant. T hey will have tim e to study
different plans and not be ru sh ed
around th in k in g th ey have to m ake up
th e ir m inds w hile th e tim e is ripe to
build a home. A fam ily w hich has
$1,000 or $1,500 set aside specifically
for a hom e is n a tu ra lly in a b e tte r b a r­
gaining position all th e w ay around.
The people w ho have some m oney,
experience has long since proved, can
come n earer to m aking term s to suit
th em selves th a n those w ho have to
borrow practically all of it.
Savings and loan associations have
tak en th e in itiative in establishing
th ese clubs because th e function of
m aking hom eow ners out of those w ho
s ta rt w ith no capital at all dates rig h t
back to th e ir beginnings in th is coun­
try. In th e first savings and loan in ­
stitu tio n in 1831, th e re w as a lim ited
n um ber of m em bers, one of w hom b o r­
row ed th e m oney w hich the rest of
them w ere accum ulating. D epending
on how long each w aited to borrow

from th e in stitu tio n , the actual am ount
he had to borrow w as larger, or sm all­
er. T hey all w en t along p u ttin g in so
m uch a m onth, regardless of w h eth er
th ey planned to borrow th e “fu n d ”
nex t year or five y ears from then. So
in th a t early form of th e building and
loan association th ere is the definite
seed of to d ay ’s “Own-a-Home Savings”
clubs w hich w ill probably n um ber 100
or so before th e y ear is out.
It is too early to predict w h at th e ir
average m em bership w ill be, since th e
clubs are ju st g etting u n d er way, b u t
even if th e sixty associations now
sponsoring them should have an av er­
age of only ten m em bers saving an
average of $15 a m onth (a conservative
estim ate all th e w ay aro u n d ), th e re
w ould be set aside for fu tu re hom e
ow nership in th is co untry $9,000 every
m onth, and it is m ore likely to be tw ice
th a t m uch by the last m onths of th is
year. T h at w ill be th e m ost concen­
tra te d piece of financial foresight in
w hich th e A m ericans have ever in ­
dulged in th e in te re st of hom e ow ner­
ship. A nd to th e savings and loan
executives from M eriden, Connecticut,
to Rock Hill, South Carolina, from
S taten Island to Santa B arbara, Cali­
fornia, and A berdeen, W ashington, and
th e sixty large and sm all cities in be­
tw een, it seem s high tim e th is w as
done.
Clubs in th e n o rth w est are being
sponsored now by th e Ames B uilding
and Loan A ssociation, Ames, Iowa; th e
F irs t F ederal Savings an d L oan Asso­
ciation, Sioux City, Iowa; th e W aseca
Savings and Loan A ssociation, W aseca,
M innesota, and th e M inot F ed eral Sav­
ings and L oan A ssociation, M inot,
N o rth Dakota.

Graduate School
The Second G raduate School of Sav­
ings and Loan held in Chicago u n d er
auspices of th e A m erican Savings and
Loan In stitu te and N o rth w estern U ni­
versity, Ju ly 29th to A ugust 9th, re ­
peated the first y ear course for some
sixty new com ers and offered a m eaty
cu rriculum of advanced studies for th e
m ore th a n tw o-thirds of last y e a r’s stu ­
dent body w ho retu rn ed . The states
in the n o rth w est sen t nine rep resen ­
tatives, four beginners and five re ­
peaters.

64
H ailed th ro u g h o u t th e savings and
loan business as th e m ost forw ardlooking step ever ta k e n in m anage­
m en t train in g , th e G raduate School
now has com plete plans for a threey ear course, w hich can be finished in
th re e sum m er sessions. The th ird y ear
w ill not be given u n til 1941, w h en th is

HOME
toER A L Savings
AND LOAN ASSOCIATION
OF DES MOI NES
— our Federally Insured up to
$5,000 savings accounts are
the solution to your invest­
ment and trust problems.
Current dividend 4 per cent.
Statem ent on request.

904 Grand Avenue
Des Moines, Iowa

ASSETS OVER
$ 1, 2 0 0 , 0 0 0 .0 0

AND

LOAN

ASSOCIATION

OF DES MOINES
216 8th Street

Phone 4-5324

UNBROKEN
DIVIDEND R EC O RD FO R
20 YEARS
□

HOME

Building and Loan Association
FORT DODGE, IOWA
Member Federal Home Loan Bank System

DES MOINES BUILDING-LOAN &
SAYINGS ASSOCIATION

Oldest and Largest
in Des Moines
411 6th Ave.
ELMER E. M ILLER
Pres, and Sec.

Dial 4-7119
H UBERT E. JAM ES
A sst. Sec.

Member Federal Home Loan Bank System

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


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

A u g u s t 19 W

y e a r’s m iddle-year m en w ill be ready
to go into the hom e stretch. An origi­
nal th esis on a savings and loan sub­
ject is also a req u irem en t for th e
diplom a from the G raduate School and
stu d en ts are now sub m ittin g th e titles
of th e ir projected theses w hich m u st
be in a y ear ahead of tim e.
The faculty and visiting lectu rers
have been draw n from th e colleges,
universities, financial in stitu tio n s and
professions in Chicago and a few other
cities relativ ely close by and from th e
p ersonnel of th e U nited States Savings
and L oan League.
A fu n dam ental course in “Savings
and Loan M anagem ent” w ill be con­
ducted for th e first y ear stu d en ts by
Dr. H en ry E. H oagland of Ohio State
U niversity, and an advanced course in
th e sam e subject w ill be given by Dr.
H a rry G. G uthm ann of N orth w estern
U niversity. F irs t y ear m en w ill also
be ta u g h t “Savings and L oan L aw ” by
H orace Russell, general counsel of the
U nited States League; “B usiness F o re­
castin g ” by R alph H. R ichards, p resi­
den t of the F ederal H om e Loan B ank
of P ittsb u rg h , and “C onstruction P ro ­
cedure and S upervision,” by F ra n k lin
H ardinge, Jr., secretary, Society of
R esidential A ppraisers. The other
th re e subjects in th e second year
course are “A dvertising P rinciples and
T echnique” u n d er Dr. L yndon O.
Brow n, associate professor N orthw estBrow n, associat eprofessor N o rthw est­
ern U niversity; “F in ancial S ystem s”
u n d e r Dean Chas. S. T ippetts, School of
B usiness A dm inistration, U niversity of
P ittsb u rg h ; and “P ersonnel M anage­
m ent and D evelopm ent” u n d er E. F.
W onderlic, d irector of personnel,
H ousehold F inance Corporation.
T his y e a r’s course for all stu d en ts
includes nine special lectures and
ro u n d table conferences sta rtin g the
first n ig h t of school. Subjects an d lec­
tu re rs are: “Our P resen t Position in
th e B usiness Cycle,” by M elchior Palyi,
form er econom ist of th e D eutsche
B ank and now inv estm en t counselor
in Chicago; “The M echanics of Legis­
lation,” by M orton Bodfish, executive
vice p resid en t of th e U nited States
Savings and Loan League; “R ecent
D evelopm ents in Com m ercial B ank
Policy,” by Dr. W alter L ichtenstein,
vice p resid en t of th e F irs t N ational
B ank of Chicago; “A rch itectu ral De­
velopm ent in th e C ontem porary Small
H om e,” by George F red Keck, profes­
sor of arch itectu re, A m erican School
of Design, Chicago; “M odern City P la n ­
nin g ,” by Dr. A lbert L epaw sky, execu­
tive d irector F ed eratio n of T ax Ad­
m in istrato rs, and research associate at
the U n iversity of Chicago; “The Re­
sponsibility of th e B usiness M an to the
P ublic,” by Dr. E rn e st O. Melby, Dean
of th e School of E ducation, N orthw est-

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Home Office: W est Liberty, Iow a
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65
e ra U niversity; “The F u n ctio n s of th e
B usiness E x ecu tiv e,” by A. D. T heo­
bald, a ssista n t vice president, U nited
States Savings an d L oan League;
“G row th of Cities from a Sociological
V iew point,” by Dr. Louis W irth , p ro ­
fessor of sociology, U n iv ersity of Chi­
cago; and “The Uses of S tatistical R e­
p o rts,” by F re d T. Greene, p resid en t
of th e F ed eral H om e L oan B ank of
Indianapolis.
S tudents in th e school from W iscon­
sin, M innesota, Iow a and N ebraska in ­
clude: Jo h n W. H aley, secretary of th e
F irs t F ed eral Savings an d Loan Asso­
ciation of M adison, AVisconsin; R obert
J. P ittelkow , se cretary of th e E q u i­
table Savings and L oan A ssociation,
M ilw aukee; W. Conan T hornton, p re s­
ident, F irs t F ed eral Savings an d Loan
A ssociation, F on du Lac, W isconsin;
Axel A. Olson, executive secretary of
th e St. P aul F ed eral Savings an d Loan
A ssociation, St. Paul, M innesota; Hu-

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S h a w , M c D e r m o t t a n d S p a r k s .......................
S t o c k Y a r d s N a t i o n a l B a n k , S t. P a u l
.
U
U n i t e d F e d e r a l S a v i n g s a n d L o a n A s s ’n
U n i t e d S t a t e s N a t i o n a l B a n k .........................
U. S. C h e c k B o o k C o m p a n y ..............................
V
V a l l e y S a v i n g s B a n k ...........................................

26
42
64
32
56
59

w
W a n t a d s .................................................................. 5 4-5 9
C h a r l e s E . W a l t e r s C o m p a n y ......................... 35
W a t e r l o o B u i l d i n g a n d L o a n A s s ’n .......... 62
W e s s l i n g S e r v i c e s ................................................ 56
W e s t e r n M u t u a l F i r e I n s u r a n c e C o .......... 23
W o o d B r o t h e r s T h r e s h e r C o m p a n y .......... 65

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Advertisers

Hawkeye Mutual Hail
Insurance Association

A
A l l e n W a l e s A d d i n g M a c h i n e C o r p ....... 67
A . C. A l l y n a n d C o m p a n y . . ...................... 28
A m e r i c a n I n s t i t u t e o f B u s i n e s s ............ 64
A m e r i c a n N a t ’l B a n k & T r u s t C o .............. 5 8
A n d r e w s H o t e l ....................................................... 44

Carver Itldg.

B

B a n k e r s T r u s t C o m p a n y ............................48-4 9
V . W . B r e w e r C o m p a n y ................................ ¿6
C
C h a s e N a t i o n a l B a n k .....................................
4
C e n t r a l H a n o v e r B a n k a n d T r u s t C o .. . . 54
C e n t r a l N a t i o n a l B a n k a n d T r u s t C o.. . . 3
■City N a t i o n a l B a n k a n d T r u s t C o m p a n y 40
C o n tin en tal-Illin o is N atio n al B an k &
T r u s t C o m p a n y .................................................. 52
C o n t i n e n t a l N a t i o n a l B a n k ...................... 37
I)
F . E . D a v e n p o r t a n d C o m p a n y .............36-5 7
D e L u x e C h e c k P r i n t e r s , I n c ................... 61
D e s M o i n e s B l d g . , L o a n a n d S a v . A s s n . . 64
D r o v e r s N a t i o n a l B a n k ................................ 55
E
E m p l o y e r s M u t u a l C a s u a l t y C o m p a n y . . 65
E p p l e y H o t e l s C o m p a n y ............................. 59
F
F e d e r a l D i s c o u n t C o r p o r a t i o n .............. 29
F e d e r a l H o m e L o a n B a n k o f D e s M o i n e s 62
F e d e r a l I n t e r m e d i a t e C r e d i t B a n k .... 30
F i r s t F e d e r a l S a v in g s a n d L o a n A ssn,
S t. P a u l .................................................................... 64
F i r s t N a t i o n a l B a n k , C h i c a g o ................. 36
F i r s t N a t i o n a l B a n k , S i o u x C i t y ......... 53
F i s h e r C o m p a n y ..................................................... 21
G
G e n e r a l M o t o r s A c c e p t a n c e C o r p ........ 27
G u a r a n t y T r u s t C o m p a n y o f N e w Y o r k . 34

Fort D o d g e. Iowa

EMPLOYERS
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i
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• Automobile Insurance
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II

HARVESTING MACHINERY
1886

b e rt E. Jam es, a ssistan t secretary of
th e Des Moines B uilding, Loan and
Savings A ssociation, Des Moines; Geo.
E. V irden, building and loan su p erv i­
sor, state of Iowa, and George T. Carson, state exam iner from th e Iowa
S tate A u d ito r’s office; A rth u r G. C hris­
tensen, secretary -treasu rer of th e E q u i­
table B uilding and Loan A ssociation,
F rem ont, N ebraska; U rbin P. Schulz,
a ssistan t secretary of th e N ebraska
S tate B uilding and Loan, F rem ont,
an d C hauncey E v an s of th e Omaha
L oan and B uilding A ssociation.

1940

H a w k e y e M u t u a l H a i l I n s u r a n c e C o .. . .
L. W . H o l l e y a n d S o n ...........................................
H o m e B u i l d i n g a n d L o a n A s s ’n ..................
H o m e F e d e r a l S a v i n g s a n d L o a n A s s ’n .
H o m e I n s u r a n c e C o m p a n y ..............................
H o t e l B i s m a r c k .......................................................
H o t e l W e l l i n g t o n ..................................................

65
65
64
64
6
60
37

I

Threshers Combines
Corn Pickers
D e p e n d a b le p rod u cts fo r over 5 0
years to H arvest an d T h resh a ll
g ra in s an d seed s.
A good
ow n ers.

in v e stm e n t

fo r

fa rm

A p r o fita b le b u sin e ss fo r d ealers.
S a fe an d d esira b le fa rm p a p er is
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□

WoodBros. Thresher Co.
D e s M oin es, Iow a

Io w a-D es
M oines N a tio n a l
Bank
&
T r u s t C o ..................................................................... 68
I o w a I n v e s t m e n t B a n k e r s A s s ’n .................. 24
.1

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

K

K o c h B r o t h e r s ..........................................................
K i r k e b y H o t e l s G r o u p ........................................
L
G e o r g e L a M o n t e a n d S o n .................................
L a m s o n B r o t h e r s a n d C o m p a n y .................
L e s s i n g A d v e r t i s i n g C o m p a n y ....................
L i v e S t o c k N a t i o n a l B a n k , C h i c a g o ..........
L i v e S t o c k N a t i o n a l B a n k , O m a h a .............
L iv e S to c k N a tio n a l B a n k , S io u x C ity . .
M
M c G u i r e , W e l c h a n d C o m p a n y ....................
M e r c h a n t s N a t i o n a l B a n k .................................
M erch an ts M utual B onding C om pany. . .

29
65
60
5
31
64
51
35
38

with

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«
19

P h ilad e lp h ia N ational
B a n k ....................... 57
P o l i c y h o l d e r s M u t u a l C a s u a l t y C o ............ 64
P o lk C o u n ty F e d e ra l S av in g s and L oan
A s s o c i a t i o n ............................................................. 62

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Federal Reserve Bank of St. Louis

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X

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force

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28
2
61

N o rth w e ste rn N a tio n al B a n k an d T ru st
C o m p a n y ................................................................. 43
O m a h a N a t i o n a l B a n k ........................................

' 1 * HE k een execu tive equips his
clerical

FOURTH
August 19W

66

IN THE DIRECTORS' ROOM
A Long W ay to Go

Cheaper

W eary W illie”s financial position
w as v ery shaky, and w h en he m et a
k ind old lady in th e p a rk he decided to
tell h e r his sto ry .”
“Yes, m a’am ,” he said, “I ’ve asked
for m oney, and begged for m oney, and
cried for m oney.”
“H ave you ev er th o u g h t of w orking
for it, m y m an ?” she asked.
“No, not yet, m a’am ,” said W illie.
“You see, it’s like this, I ’m going
th ro u g h th e alphabet, and I a in ’t got
to W ’ y e t.”

A Chicago actress en tered a law y er’s
office and said, “I w a n t a divorce.”
“C ertainly,” said th e law yer. “F o r a
nom inal fee I w ill s ta rt proceedings.”
“W hat is a nom inal fee?”
“Five h u n d red dollars.”
“N othing doing,” re to rte d th e ac­
tress. “I can have him shot for te n .”

He Should Know
Prospective B ridegroom ( g a i l y ) :
“W ill it tak e m uch to fe a th e r a n e st? ”
F u rn itu re Dealer: “Oh, no; only a
little dow n.”

Handsome Brute
A w om an ru sh ed into a police sta ­
tion w ith a p hotograph in h e r hand.
“My h u sb an d has disappeared,” she
sobbed. “H ere is his photograph. I
w an t you to find him .”
The serg ean t looked a t th e pho to ­
graph.
“W hy?” he asked.

The Opposite
T he grocer w as busily engaged a t­
tendin g th e w a n ts of his custom ers
w hen he suddenly caught sight of a
sm all boy gazing h a rd a t a large crate
of oranges.
“Now then, m y lad,” he began, “w h at
are you up to?”
“N othing,” replied th e boy.
“N o th in g ” echoed th e grocer. “W ell,
it looks to m e as if you w ere try in g to
tak e one of those oranges.”
“You’re w rong, m iste r,” re to rte d th e
boy. “I ’m try in g not to .”

Quiet, Please
H usband: “Did you ever notice, m y
dear, th a t a loud ta lk e r is gen erally an
ig n o ran t perso n ?”
W ife: “W ell, you n eed n ’t shout so;
I ’m not deaf.”

Easy for Him
Betty: “I ’m sorry. No doubt y o u ’ll
find som e o th er girl w h o ’ll m ake you
forget m e.”
F ran k : “Oh, b u t I can nev er forget
you.”
Betty: “N onsense. You did it on m y
last b irth d a y w ith o u t an y tro u b le.”

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Federal Reserve Bank of St. Louis

Great Minds
T hey w ere sittin g in th e p arked car.
F o r a long w hile n eith e r one spoke a
w ord. F in ally th e girl asked: “W hat
are you th in k in g ab o u t?”
“T h d sam e th in g you are,” replied
th e boy, w hereupon she prom ptly
slapped his face.

Safety First
A w om an m otorist w as driving along
a co u n try road w hen she noticed a
couple of rep air m en clim bing tele­
phone poles.
“Fools!” she exclaim ed to h e r com­
panion, “th ey m ust th in k I n ever drove
a car before.”

Remit at Once
D oubtful: “I ’ve been gettin g th re a t­
ening letters th ro u g h th e mail. Isn ’t
th e re a law ag ain st th a t? ”
P o st Office Official: “Of course th ere
is. I t ’s a v ery serious offense to send
th re a te n in g letters. H ave you any idea
w h o ’s doing it?”
“Sure. T he W oofus F u rn itu re Com­
p an y .”

Try Spinach

Not Always
Custom er: “Oh, Mr. Moss, it ’s the
old sto ry —th e w om an alw ays pays.”
Shopkeeper: “W ell, if y o u ’d look
th ro u g h m y books, y o u ’d find th a t
some of th em don’t.”

That'll Work
Sm ithson: “My w ife is prolonging
h e r holiday. I need h e r a t hom e, b ut
it seem s useless to w rite suggesting
th a t she re tu rn .”
F riend: “Get one of th e neighbors to
suggest it, old boy.”

V

S

He Knew

♦
>

The v ery new ly m arried couple
stopped for lunch at a little w ayside
hotel. D uring th e m eal th e m anager
w as over-attentive, and the young h u s­
band began to get angry. F o r about
the te n th tim e in a q u a rte r of an h o u r
th e m anager cam e to th e ir table. “And
w h at can I get for you now ?” he asked.
“Some honeym oon salad!” snapped
th e young husband.
“H oneym oon salad?” echoed the
m anager. “W h at ever does th a t con­
sist of?”
“J u s t lettuce alone,” cam e the reply.

The conversation w as on th e fash ­
ionable topic. It w as about dieting.
“Yes, said Fellow es. “I ’ve eaten beef
all m y life.”
“B ut do you th in k it has done you
any good?” she asked.
“Good?” he re tu rn e d confidently. “I
feel as stro n g as an ox.”
“T h a t’s stran g e,” she ventured. “I ’ve
been eating fish for about th ree
m onths, and I can ’t sw im a stro k e.”

Teacher: “If Colum bus w ere alive
today w ould he be looked on as a re ­
m arkable m an ?”
Billy: “Yes, h e ’d be five h u n d red
y ears old.”

A Safe Bet

Enemies

The old m a rtin e t w as lecturing his
nephew .
“N ever know n such a gen eratio n ,”
said th e old fellow. “You m odern boys
w a n t too m uch.”
The boy w as tactfu lly silent.
“Do you know w h a t I w as g etting
w hen I m arried y o u r a u n t? ” asked the
uncle.
“No,” replied th e nephew , realizing
th e tim e had come to te rm in ate th e
arg u m ent, “and I bet you d idn’t,
e ith e r.”

Y

He Surely Would

“Sir, if you don’t leave m y door im ­
m ediately, I ’ll call m y h u sb an d —and
h e ’s an old H a rv a rd football player.”
“Mam, if you love him , don’t call
him ’cause I used to play for Yale!”

Chilly
He: “I dream ed of you last n ig h t.”
She (coldly): “Really!”
He: “Yes; th e n I w oke up, sh u t th e
w indow , and p u t an ex tra b lan k et on
th e bed.”

#

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