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AUGUST 1941 m L. T . M O R R IS P r e s id e n t , F i r s t C itiz e n s N a ti o n a l B a n k , W a te r to w n P r e s id e n t , S o u th D a k o ta B a n k e r s A s s o c ia tio n https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis VACATION NEWS AND VIEWS Page 12 FOR YOUR GRAIN ITEMS Food is rapidly b eco m in g a prom inent factor in n ation al d efen se. C edar R apids is an important grain center a n d most Iow a ban ks find it to their a d v a n ta g e to carry an accou nt at this point. The MERCHANTS NATIONAL renders outstan din g service in the h a n d lin g of grain item s. A CEDAR R A P ID S BA N K CEDAI* R A P ID S SERVICING A LL IOWA MERCHANTS NATIONAL BANK OFFICERS J ames E. Hamilton , Chairman S. E. Coquillette, President H. N. B oyson, Vice President Roy C. F olsom, Vice President Mark J. Myers, V. Pres. & Cashier George F. Miller, V. Pres. & Tr. Officer Marvin R. S elden, Vice President F red W. S m ith , Vice President J ohn T. H amilton II, Vice President R. W. Manatt , Asst. Cashier L. W. B roulik, Asst. Cashier P eter B ailey, Asst. Cashier R. D. B rown, Asst. Cashier 0. A. Kearney, Asst. Cashier S tanley J. Mohrbacher, Asst. Cashier E. B. Zbanek , Building Manager Cedar Rapids Iowa Member Federal Deposit Insurance Corporation 1 - ^ ^ 'V* - ^ -- N o r th w e s te r n B a n k e r, p u b lis h e d m o n th ly b y th e D e P u y P u b lis h in g C o m p a n y , I n c ., a t 527 7 th S tr e e t, D e s M o in e s , Io w a . S u b s c r ip tio n , 35c p e r copy. $3.00 p e r y e a r. E n t e r e d a s s e c o n d - c la s s m a t t e r a t th e D e s M o in e s p o s t office. C o p y r ig h t, 1941. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis /r * 1 > V (y k « i A l V fJ j iííSííK«*« í4 iííí* iííífS it??íig í;ííü ! ■**<**■»**>*< «** * :Íl>Í1ii!S>IPHifíÍiÍi!i!!!!!HÍ2Jt:!i!!!Sill!!!!«: ¡Í!BP*W s!:;::n!í!«!ílíáf;S!n!íJíüS!!Síi!ft§i:«5SS5sn:a!í!5! p h y s ic a l fa c iiit n *o sofí I g p l^ mmmvm □: a a tVAín'nihith I héíiiiiíníitiii re sp o n d e ® lUi'íatüí.SífSfíííti omes https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4 That was YOU!.. . h e K ID was standing on a street corner, in the rain. The crummy curled-up felt hat —left in the mess hall by the oldtimer who swiped the kid’s new issue headpiece—was too small, let the rain trickle down his neck. The OD blouse had a size 16 collar that sagged in front. The rough field shoes would have fitted two other fellows. He looked more like a scarecrow than a sol dier, and felt funnier. It was his second month in the Army, and his second camp. In the shift, his serv ice record hadn’t arrived in time for pay day, and a lone two-bits stood between him and the next. Main Street was lined with movie houses, dance halls, eat joints and banana-split dispensaries—all strictly no good to a soldier shy of folding money . . . He had come into town because he was fed up with the barracks; but even bunk fatigue was better than roaming around by yourself in the rain in a strange town... He wondered when the first truck would start back to camp . .. T kid soldier was Y O U . .. remember? You’ve probably forgotten. Looking back, those were the best days of your life—but not all of them, if your memory tells the truth! Some of them were pretty sour, par ticularly at first. Later, you learned about the “Y” huts and service clubs where you could spend time when you hadn’t any thing else to spend. They tossed teas, and held dances, and you met some local girls and got invites to Sunday dinners, and felt like a human being once more! Th e Giveto the Remember Now we have another citizen army, mostly kids like we were. Sure, the Army dresses them better, and feeds them better than it did us. But these boys get home sick and lonesome, fed up with formation and drill and routine, just as we did. They have the same old problem with their spare tim e —and tw enty-one bucks a m onth doesn’t solve i t . . .T h at’s where the USO comes in. T h e USO—United Service Organizations for National Defense—are all the old wel fare outfits working under one big tent today. (See the list below.) Outside of camps and in nearby towns, they set up recreation centers for service men, and de fense workers; places where the boys can loaf and play when off duty. They help out with problems, give directions and ad vice, arrange entertainments; may even put the boys up for the night or on week ends when they are out on passes. And they do a good job, as they always have! The USO figure they will have to take care of 2,000,000 customers in the next year—men in the armed services, men and girls away from home on defense jobs. And they need $10,765,000—a little over $5 per person served . . . It isn’t much to ask for. And where can a 5-spot buy more than in the USO?. . . Send your contribution to United Service Organizations, National Headquarters, Empire State Building, New York, N. Y., or to your local USO Committee. Join the army behind the Army! Thanks . . . U.S.O.! The Young Men’s Christian Association • The National Catholic Community Service • The Salvation Army • The Young Women’s Christian Association The Jewish Welfare Board • The National Travelers Aid Association This s p a c e d o n a t e d by THE HOME INSURAN CE CO M PAN Y NEW YO RK Fire • Automobile • Marine Insurance https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis t w F lying m issiles striking the w in d -sh ield of the m odern motor car carry no threat of d a n g er a s th ey on ce did. U se of sa fety g la ss protects a g a in st harm. So m uch so that sa fety is tak en for gran ted In th ese d a y s w h e n crim inal instincts frequently find exp ression in check frauds, La M onte S a fe ty P a p e r s b r in g th e s a m e c e r ta in se n se of security to b an k in g an d in d u s trial A m erica. La M onte S afety Papers, u sed for check s a n d other m o n ey -v a lu ed docum ents, axe proof a g a in st alteration b y m e c h a n i c a l or c h e m ic a l e r a s u r e . O nce issu ed , the check properly written o n La M on te S a fe ty P a p e r c a r r ie s its o w n a s s u r a n c e of s a fe ty . M o reo v er, w h e n m a d e w ith the tradem ark or in dividual d e sig n of the user. La M onte S a fe ty P a p e r s p r e v e n t c o u n te r fe itin g a n d h a v e th e d i s t i n g u i s h e d a ir of qu ality — for q u ality th ey are. Ask your L it h o g r a p h e r or P r in te r to s h o w y o u sa m p les of La M onte S afety P apers in w h ich tradem arks or ind ividu al d esig n s h a v e b e e n m a d e part of the p ap er it s e lf— or if y o u prefer — write us direct. m n i& J e t y n v n https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis m or^ A U G U ST W e/ t er n 19 4 1 FO R TY-SIX TH Y E A R NUMBER 649 Oldest Financial Journal West of the Mississippi River CLIFFO RD DE PUY Publisher IN THIS ISSUE R A L P H W. M O O R H E A D Editorials Associate Publisher A c ro s s th e D e sk f r o m th e P u b lis h e r . H EN R Y H. H A Y N E S Feature Articles Editor F r o n tis p ie c e ................................................................................................................................................ 10 W h a t W ill A m e ric a n A g r i c u lt u r e G et O u t o f t h e W a r ? .........C liffo rd V . G regory 11 J. STUART D A V IS Associate Editor N e w s a n d V ie w s ................ ........................................................................... R a lp h W . M oorhead 12 527 Seventh Street, T r y in g to S o lv e th e W a g e a n d H o u r P r o b le m .................................... ..L eslie K . C u rry 15 In c o m e T a x R a te W ill B e H ig h e r f o r 1941............................................................................... 14 K e ep th e P r o f i t S y s te m — Do B u s in e s s th e A m e ric a n W a y ............................................. . Des Moines, Iowa 16 L e g a l D e p a r t m e n t — D oes P a r t n e r s h i p E x is t? .............. ......................................... ............... 18 Telephone 4-8163 W h a t Y o u r B a n k C a n D o f o r N a tio n a l D e f e n s e .................. ......... O tis R . P re sto n 19 Insurance W h ic h I s M o re V a lu a b le — A M a n o r A H o u s e ? ..........................F . G. P ackw ood 21 N EW Y O R K O FFICE Frank P. Syms Bonds and Investments Vice President 505 Fifth A ve. Suite 1202 Telephone MUrray Hill 2-0326 Jos. A . Sarazen Associate Editor Telephone Hyland 0575 CONVENTION CALENDAR A m e r ic a n B a n k e r s A s s o c ia tio n — H o te l S te v e n s , C h ic a g o , S e p te m b e r 28 -O cto b e r 2. F in a n c ia l A d v e r ti s e r s A s s o c ia tio n — H o te l S ta t l e r , C le v e la n d , S e p te m b e r 8 - 11 . N a ti o n a l A s s o c ia tio n o f B a n k A u d i to r s a n d C o m p tr o lle r s 17th A n n u a l N a ti o n a l M e e t — C h ic a g o , I l l i n o i s , O c to b e r 8-11. STATE CONVENTIONS D es M o in e s , J a m e s H . C la rke 25 ...................... ........ ... 26 State Banking News M IN N E A P O L IS O FFIC E I o w a — H o te l F o r t te m b e r 8-9-10. The Month’s M arket Maneuvers........... ......... W hat Their Statements Show........................ Sep N e b r a s k a — P a x to n H o te l, O m a h a , O c to b e r 9-10. Nebraska News ......... ..................................... W hat Nebraska Statements Show..... . Omaha Clearings .................................... Lincoln Locals ..... .................................... South Dakota News.......................................... W hat South Dakota Statements Show... Minnesota News ......... ..................................... W hat Minnesota Statements Show........ West Central Clearing House Meeting. Twin City News................. ....................... North Dakota News ...................................... W hat North Dakota Statements Show... Iowa News ...................................................... W hat Iowa Statements Show............... . Iowa News from Here and There.......... . 31 31 .............................. 35 .............................. 37 .............................. 37 .............................. 39 .............................. 39 .............................. 40 .............................. 43 .............................. 45 .......................... 45 .............................. 47 ............................. 50 J . A . S a r a z e n 57 The Directors’ Room A Few Short Stories to Make You Laugh.... 58 M EM BER Audit Bureau of Circulations Financial Advertisers Association https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1 " N o Bank Ever Regretted N ew Fixtures" C apital N a tio n a l B ank, L ansing, M ichigan N 70 years of bank fixture experience, we have never known a bank to regret new fixtures. In almost every case their senti ment is "why didn't we modernize before?" You too will be delighted with the appear ance— and the effect— of new fixtures. Invariably, they more than pay for them selves in a very short time. F isher w ill be h a p p y to su rvey you r m odernization p ro b lem w ith no obligation w h atever to you. 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 Across the Desk From the Publisher Sell Your Customers 0n every hand the W hat They W ant question of salesm an Should Bank The question of bank salaries Salaries Be *n r(dati° n f° Other expenses of ship of bank services an d the m erchandising of bank needs is discussed a t conventions and a t bank director m eetings. I G. W. McSweeney, sales m anager of the De Luxe Check P rin te rs of Chicago, said recently : “ Banks are well on their way towards building a merchandising organization to match their strong administrative and operating divisions. We have all the tools with which to work plus a definite economic need as an incentive. The right kind of sales personnel in sufficient numbers can be secured from the 275,000 bank employees to say nothing of the help ice can get from the 46,000 directors and the many thousands of stockholders. ‘‘There is a great need right now in the banking business for a lot of good old American salesman ship— the clean-cut hard hitting type of salesman ship that contributes as much or more than it takes; the type of salesmanship that has helped so much in the building of our communities. I f we want to go into the school of constructive salesmanship we have to approach it with our heads up and our courage high because there is no room in that fra ternity for the chap ivho pulls his punches.” “ The time will come when every bank will put a man in the field and keep him there in order to sell bank services successfully. Examine your prices; start with your own customers, find out ivhat they need and sell it to them.” W e believe th a t this is sound advice, and if every b ank will find out w h at th e ir custom ers need, w h at th e ir requirem ents are, and then sell it to them , it will increase the hanks profits and, a t the same time, keep the custom ers satisfied. N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A ugust 1941 the bank is alw ays a very impor, x J J 1 taut, one. Most banks in the p ast four or five years have been paying b etter salaries to th eir employees. A prom inent b anker said re c e n tly : “ Banks expect more from their employees, yet the average salaries are lower. Other industries are bleeding banks of their best help which banks w on ’t be able to replace. You w on ’t be able to train ‘green hands’ economically under the 40hour w eek.” If, as this h an k er points out, other in d ustries are ta k in g help aw ay from the banks, it m ay be necessary to increase bank salaries in order to hold capable young men and women. C ertainly every bank should be train in g em ployees to move up into positions of tru s t w hen ever the occasion requires. Obviously, local conditions m ust dictate w hether or n o t bank salaries should be increased in any p a rtic u la r institution. jo Increased? Farmers in An A11 figures indicate Excellent Condition th a t farm ers are in the m o st a d v a n ta g e o u s position they have been d uring the p ast ten years. To begin w ith, the farm er is paying low er taxes th a n city w orkers w ith equal n et incomes. F o r example, a f arm er w ith a n et income of $100 pays taxes of $9.80, w hereas the city w orker w ith the same income pays $17.20. F o u r very favorable factors about the farm out look are these: 1. Farm Income is increasing faster than NonFarm Income. 9 2. Because of their non-cash income, farmers pay less in taxes than city workers with equal in comes. Thus, as defense taxes increase, farm ers will have proportionately more spending power than city workers. 3. Farmers also w ill benefit greatly from two government programs affecting their farm p rices: a, Government pegging of hog, butter, chicken and egg prices. b. $724,000,000 annually was added to Farm Income by government loans of 85 per cent of parity prices. These loans, plus soil con servation and parity payments, will give farmers their prewar (1909-14) purchasing power. 4. Because Farm Income is increasing more rap idly than farm production expenses . . . farmers today have their highest profit in a decade. As everyone knows, a prosperous ag ricu ltu re m eans a prosperous nation, and, based on figures now available, farm ers are going to have a very prosperous 1941, and will probably m ake the high est profit they have m ade in m any years. Increase Value of 0ne v e ry definite Government Bonds By "'Hy to “ “ “ “ the r* . r v a lu e of g o v e rn Decreasing Expenses ment bonds is t0 see th a t expenses fo r non-defense item s are m aterially reduced. Some b ankers believe th a t at least $2,000,000,000 can be cut from the non-defense budget. This certainly should be done, if, as some be lieve, the fed eral and local governm ent debt will reach $120,000,000,000 before the defense p ro duction p rogram is completed. O. W. Adams, executive vice president of the U tah S tate N ational B ank of S alt L ake City and fo rm er p resid en t of the A m erican B ankers Asso ciation, in a recent address pointed out t h a t : “ Certainly Government owes it to the people whom it asks to buy its bonds to do everything it can to avoid unnecessarily increasing the total cost of the defense program and to keep the ultimate debt down to an amount which can be met without destroying the value of the dollar, without destroy ing the savings of the people. “ The question is whether they will be worth anything in potatoes and wheat and clothes and meat; whether they will have buying power. And the answer to that is one that we all know. It is just this: These bonds will have buying power just to the extent that the debt of Government, coupled with its current demands, remains within the capacity of the producers of this country to meet. “ The smaller the debt, the more valuable these bonds; the greater the debt, the less their value.” Every individual and every institution which buys defense savings bonds wants them to have as much “ collateral” and as much “ valu e” back of them as possible, and one way to do this is to de crease non-defense expense items, because, as Mr. Adams points out, the sm aller the debt, the more valuable will be these bonds. Banks in G ood Shape W hatever the outFor Job Ahead C0T , of thfle f esent w orld conflict m ay be, the banks of the U nited S tates are in good shape fo r the job th a t lies ahead. D uring the p ast eight years, m ergers, consoli dations and the elim ination of w eak banks has been completed. The banking system of the U nited S tates today is in the best shape th a t it has been fo r m any years. A ccording to Leo T. Crowley, chairm an of the F ed eral D eposit Insurance C orporation: “ S tru ctu rally , the banking system is on an emi n ently sound Tooting. W e find the natio n al sys tem and the state system w orking harm oniously together, th e ir independence preserved despite the th re a t of unification th a t came w ith the 1933 banking holiday. W e see a system greatly invigo ra te d by the severe p ru n in g of its w eaker u n its d uring the past years thro u g h failures, m ergers, and v o lu n tary liquidations—its individual units given new life and re h ab ilitate d th ro u g h the in jection of new capital funds and in m any cases by FD IC financial aid, so th a t th eir m illstones of w orthless assets could be throw n off, and th eir depositors be given again real protection in the form of valuable assets and reasonable capital accounts. “ The banks certainly do not lack available resources for the financing job they have ahead. In fact, so swollen are th e ir vaults th a t the au thorities responsible fo r control of the volume of bank cred it already are asking fo r additional pow ers to prev en t a ru n aw ay expansion of such credit. The assets of insured commercial banks increased from 63 billion dollars a t the end of 1939 to n early 71 billion dollars a t D ecem ber 31, 1940 a ju m p of 12 per cent. A trem endous vol ume, and un d er present conditions th ere can be little doubt about the availability of a g reat p a rt of i t . ” N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19M https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 11 W hat W ill American Agriculture G et O ut of the W a r? W HAT w ill ag ricu ltu re, and w h at w ill th e nation, get out of W orld W ar II? N ot m ore te r rito ry ; we don’t w a n t th at. N ot th e resp o n sib ility of policing th e w orld, if we can help it. All we w a n t is the o p p o rtu n ity to p u rsu e our w ay of life in peace; th at, and th e p reserv atio n of those trad itio n s of A m erica, oppor tu n ity and p rosperity. W hen th is m ess is over, on th e asset side we w ill have m any new p lan ts and m uch new equipm ent; enlarged producing capacity th a t can be d iv e rt ed to peace-tim e production. W e w ill have an enlarged supply of skilled m anpow er. Our success in changing from a w ar to a peace econom y w ith o u t a severe depression w ill depend on achieving a sane balance in our econom y now, and in m ain tain in g it a fte r th e w ar. Only a balanced economy, like a balanced engine, can ru n co ntinuously a t high speed w ith o u t te arin g itself to pieces. Our econom y has been unbalanced for years. A g ricu ltu re has been g et tin g too sm all a sh are of th e national income. The g re a t ru ra l m a rk e t of A m erica has not had sufficient b u y ing pow er, and in consequence in d u s try has not h ad enough m a rk e ts and labor has not had enough w ork. If price and w age policies d uring th is period dislocate still m ore th e re latio n sh ip betw een ag ricu ltu re and o th er groups, th e e n tire econom y w ill suffer for it a fte r th e w ar. The natio n al incom e w ill be up about ten billion dollars th is year afte r p aying th e in creased federal taxes. T h ere w ill probably be a fu rth e r increase of th e sam e am ount in 1942. It is im p o rta n t th a t labor should not get all th a t increase, it is im p o rta n t th a t in d u stry should not get it all. In p ro p o rtio n to population, a g ri c u ltu re ’s sh are of 10 billion dollars is about 2.8 billions. A ctually, th e in crease in farm incom e th is y e a r w ill be about a billion. The action of th e se cretary of a g ri c u l t u r e in annou n cin g m i n i m u m prices for hogs and for p o u ltry and d airy products, and passage by con gress of th e 85 p er cent p a rity loan bill, have been severely criticized. B ut if th ese acts are to be criticized a t all, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis By C LIFFO RD V. G R E G O R Y A sso ciate Publisher Wallaces' Farmer and Iowa Homestead Des Moines C L IF F O R D V. G REGORY it should be because th ey give the farm er too little ra th e r th a n too much. If an inflationary price spiral is started, it w ill be because of increased w ages and prices of m anufactured goods ra th e r th a n because of increased farm prices. The cost of living index is only 85 p er cent of the 1924-28 av er age. It w ill not go m uch above th a t average because of rising food prices, unless th ere is a lot of pyram iding be tw een th e farm er and th e consum er. The new loan rate of w heat w ill add only one-half cent to the cost of a pound loaf of bread. The increased corn loan w ill add about 7 per cent to th e retail cost of m eat. The new loan rate w ill about about 5 per cent to th e cost of such w idely used cotton goods as overalls, w ork sh irts, sheets, tow els, etc. Rice prices are now close to parity. The price of tobacco has alm ost no relation to th e price of th e finished product, so th a t retail tobacco prices should show no effect from the new loan rate. Note th a t the figures given re p re sent increased costs. How m uch those costs m ay be pyram ided into increased prices is som ething over w hich the farm er has no control, and som ething congress has not y et been able to control effectively. F o r exam ple, before the 85 per cent loan bill w as passed, cotton m ill m ar gins had increased m ore th a n eight cents a pound as com pared w ith a year previous. T h at is an increased proc essing charge of $40 a bale . . . sev eral tim es the increase w hich w ill re sult from th e 85 p er cent loan bill. This increase in cotton m ill m argins is not due to increased labor costs, as the o u tp u t per dollar of labor costs is 7 per cent h igher th a n a year ago. If farm prices w ere increased 10 per cent rig h t across the boards, th e cost of living w ould be raised only 2 per cent, still leaving it 13 per cent below th e 1924-29 average. M any critics have seized this oppor tu n ity to attack the w hole concept of a g ricu ltu ral parity. Suppose we m ake a com parison on a basis m ore easily understood. L ast year the cotton farm er re ceived 10 cents an hour for his labor in grow ing cotton. And bear in m ind th a t this is a long w ay sh o rt of allyear-round em ploym ent. U nder the 85 per cent loan bill the cotton farm er w ill earn 1314 cents an hour. At p a r ity prices for cotton his earnings w ould be a little m ore th a n 16 cents per hour. Cash g rain farm ers in the corn belt last y ear earned about 34 cents an h o u r for th e tim e spen t in producing corn; w heat farm ers received 33 cents an ho u r for raisin g w heat. The new loan bill w ill give th e corn farm er about 4 cents an hour more; th e w heat farm er about 10 cents an hour more. R em em ber again th a t this is a long w ay sh o rt of a steady, year-round job a t these wages. A verage w ages in the m otor indus try, before the recent increases, w ere 96 cents an hour. Does anyone con ten d th a t th e w o rk er receiving 96 cents an hour, or even th e W PA w o rk er receiving 45 cents an hour, w ill have to go naked if cotton farm ers earn 16 cents an hour, or h u n g ry if (T u rn to page 23, please) N orthw estern Banker August 19M 12 New s OF THE and B A N K IN G V ie w s W O RLD By R A L P H W. M O O R H E A D , Associate Publisher E d ito r’s N ote: P ublisher De P u y is enjoying a little w ell-earned vacation as this issue goes to press. The w riter retu rn ed last m o n th fro m a m o st en jo y able vacation in Colorado and is th ere fore occupying the role of guest con ductor of the publishers “N ew s and V iew s” colum n fo r this m onth. P re sented here are a fe w vacation odds and ends w h ich w e hope w ill be of in terest to our m a n y readers w ho either kn o w Colorado m u c h better than the w rite r or w ho by chance have n ever enjoyed a vacation in that beautiful state. T T H E suggestion of a m u tu al acquaintance, th is y e a r our fam ily voted to spend a po rtio n of our Colorado vacation in th e P oudre R iver district. T his is in n o rth e rn Colorado, n o t far from th e W yom ing line and is en tered th ro u g h F o rt Collins. F ort C ollins is a beau tifu l city, population 12,000, and is th e hom e of th e Colorado A g ricu ltu ral and M echanics College. A T he Poudre R iver gets its nam e from th e F re n c h nam e for “pow der.” T h at section of Colorado is b eau tifu l and is m ore rugged and not th ick ly settled as E stes P a rk and o th er b e tte r know n areas. Most of th e canyon is included in th e R oosevelt N ational P ark , so nam ed a fte r “T eddy” ra th e r th a n F. D. T he P oudre R iver road is v ery good and ru n s stra ig h t up th e canyon and a t th e top n e a r Saw tooth M ountain is beau tifu l Cam eron Pass. W e w ere in tere ste d on a trip across th e pass, (w hich incidentally goes on tow ard Salt Lake City) to see h u n dreds of cattle grazing in th e beautiful valleys on top of th e C ontinental Divide 12,000 feet high. T hey had experienced some v ery late snow s on th e Divide as late as early June, and th ere w as still con siderable snow on th e m ountains, m ak ing Ju n e actually th e ir springtim e. Our delightful hom e for a ten day period w as A rrow head Lodge, fortyfour m iles up Poudre Canyon from F o rt Collins. It is owned an d oper ated by Mr. and Mrs. Carl Brafford and son Marion. The B rafford’s oper ate a cleaning establishm ent in F o rt Collins. Mrs. B rafford rem ains a t the lodge all th e tim e d uring th e sum m er m anaging th e lodge and th e ir eleven fine cabins, w hile Mr. B rafford and M arion are able to spend th e ir w eek ends there, and th e rem ain d er of th e w eek in F o rt Collins. T h eir delightful h o spitality w as such th a t w e had no desire to leave th e lodge for a single m inute of our en joyable ten days. N ight life in Poudre Canyon is quite lim ited, b u t w ild life is abundant. W e w ere surp rised to find so m any w ild deer th ro u g h o u t th e area, and w ere told th a t th e re are thousands and th o u sands of deer th ro u g h o u t th e Rockies, in spite of a ra th e r lengthy open season in the fall of th e year. T here are also bear, m o u n tain lions, and bobcats, none of w hich are a t all dangerous, since th ey contrive to stay out of sight m ost of th e tim e. Our children had a g reat deal of fun w ith a year-old pet deer w hich w as rescued by the B rafford’s a y ear ago w hen it had been in ju red by a pack of dogs. T hey fed it from m ilk bottles, and con sequently “S kip py” hangs around and “m ooches” bread and crackers from the various cabins. If he sees an open door, he w alks rig h t in and begs for food. We w ere told th a t last w in ter he w ould disappear for several dajrs, th en re tu rn to th e lodge b ringing w ith him several of his w ild deer friends who, w ith am azem ent, w atched him w alk rig h t up to cabin doors and beg for food. M any of th e lodges and cam ps in the Poudre C anyon as well as o th er re so rt sections rem ain open the y ear round since th e w in ters in Colorado are not a t all severe and th ey do n ot have a great deal of snow on th e east side of th e m ountain. The roads are kep t open except across th e Divide w here drifts of course pro h ib it traffic for several m onths in th e w inter. Inci dentally, we w ere in terested in learn ing th a t school children in th e P oudre Canyon go to school th ro u g h o u t th e sum m er m onths and have th e ir vaca tion in th e w in ter. T hey go to con solidated schools and are picked up in statio n wagons. One featu re of Colorado m otoring w hich we liked v ery m uch is th e ir road m arking. T hey have a single line in th e m iddle of th e pav em en t and over hills and aro u n d curves w here passing o th er cars is dangerous, th ey have a b rig h t yellow line on y o u r side of the road. In o th er w ords, w h en ever th e yellow line is on y o u r side of th e road, keep in yo u r lane and do not atte m p t to pass o th er cars. T his is ju st about th e m ost sim ple y et de pendable driving guide th a t one could ask for. M issouri highw ays are a t tem pting to do m uch th e sam e th in g A bove, le f t to r ig h t: One of th e th o u sa n d s of d e er w h ic h a b o u n d in th e R ockies, th is one sn a p p e d on D eer R id g e, n e a r E ste s Park. In th e c e n te r, th e fa m o u s T eller H ouse h o te l in C e n tra l C ity, C olorado. T he c o rn er room a t th e le f t is th e o rig in a l b a n k in g house e sta b lish e d b y th e K ountze Bros, o f Omaha and N ew York, a n d th ro u g h i t p a sse d m illions of d o lla rs o f gold a n d silv e r in th e six tie s a n d se v e n ties. R ig h t, a v iew o f Arrow head Lodge, in th e P o u d re R iv e r C anyon, above F t. C ollins. N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19^1 13 L e f t, F ath er F lan agan g ra c io u sly poses f o r our c a m e ra w h e n w e sto p p e d a t B oys T ow n fo r a m o m en t en ro u te to Colo rad o . C e n te r, th e M oorhead f a m ily a t th e m a rk e r sh ow ing th e C o n tin e n ta l D iv id e, C am eron P a ss , up th e P o u d re C an yon. A ltitu d e h e re is a ro u n d 12,000 fe e t. B ig h t, “ Skippy, ” th e ta m e d eer w h ic h m ak e s A rro w h e a d L odge, in th e P o u d re C anyon, h is h e a d q u a rte rs . H e loves c r a c k e r s a n d b re a d — a n y g iv e n am o u n t. by p a in tin g red arro w s aro u n d curves and over hills w h en passing is p ro h ib ited, b u t w e still p re fe r th e yellow line. It is p a rtic u la rly helpful in m ou n tain driv in g w h ere visibility is often re stricted. A fter te n glorious days in th e P oudre Canyon, we drove dow n th ro u g h F ort C ollins to L oveland, te n m iles south, th e n back in to th e m o u n tain s for a w eek in E ste s Park, w hich w e h ad not seen for 15 years. W hile th e to u r ist business is v ery good th is year, th e village of E stes P a rk is also ex p eri encing a boom because th e F ederal G overnm ent is co n stru ctin g a 13 m ile w ater tu n n e l in th a t area to be know n as th e Colorado-Big T hom pson D iver sion T unnel. I t w ill supply irrig atio n w ater to 175,000 farm ers in n o rth e rn Colorado, and th re e m iles of it have alread y been bored. T he pro ject w ill be com pleted in 1945 since engineers are boring from both sides of th e Divide an d hope to have a get to g eth er p a rty in a n o th e r four years. The gov e rn m e n t co n stru cted a b eau tifu l city for th e tu n n e l w o rk ers on th e east side of th e m o u n tain s ju s t outside E stes P ark , and th is has consequently aided th e village in a business way. It w ill add m illions of dollars ev en tu ally to th e rev en u e of Colorado farm ers. H orse back ridin g continues as one of th e prin cip al diversions of E stes P a rk vacationers. T hey claim th e re are m ore rid in g h orses in th e E stes P a rk area th a n in any sim ilar area in th e w orld. M any of th e w ealth y vaca tio n ers in E stes P a rk b rin g th e ir own individual rid in g hoses from all over th e U nited States, and we saw m an y a sleek rid in g h orse heading into E stes P a rk in specially b u ilt tru c k s co n tain ing licenses from as fa r east as N ew Y ork state. It is doubtful if th e horse th u s gets a vacation. F o r those w ho w an t to study n atu re w h e th er it is rocks, birds, anim als or vegetation, E stes Park is a paradise. R ocky M ountain N ational Park w hich covers m ost of th e E stes P a rk area is of course u n d er federal supervision. The ran g ers collect a $1.00 fee from each car en terin g the N ational P ark, and th is en titles one to come and go th ro u g h o u t th e p ark du rin g the entire year. This m oney to g eth er w ith m any of our tax dollars goes to m ain tain th e splendid paved roads th ro u g h o u t th e park , and Uncle Sam certain ly does m anage th e p ark beautifully. F o r those w ho w a n t to stu d y n atu re, th e ir staff of ran g ers m ain tain a com plete w eekly program of hikes, n atu re studies, and lectures for every day of th e week. Some of these hikes are even for sm all children 8 to 12, others are for children 12 to 16, and still o th ers are for m ore m atu re students. E v e ry n ig h t a t th e M orain P a rk Am p h ith eatre and m useum th e ran g ers p u t on a lecture illu strated by m otion p ictu res or slides, telling of th e various natio nal p ark s th ro u g h o u t th e U nited States. In o th er w ords, if you w ish, you can p u t in every single m in u te of every day as a guest of Uncle Sam ’s high pow ered rangers, and th u s obtain both inform ation and fun. In going out to Colorado, w e w ent th ro u g h Om aha and had th e pleasure of stopping over for a few m inutes at “B oys’ Tow n,” F ath er F lan agan ’s fa m ous school ju s t w est of Omaha. Our ch ildren w ere p a rticu larly in terested in th is en terp rise and we had th e plea sure of m eeting F a th er F lanagan. He is a m ost gracious m an and is doing a m arvelous w ork. N atu rally our chil d ren w ere terrib ly aw ed over g etting his au to g rap h and his p icture for w hich he sm ilingly posed. N ebraska has certain ly come into its own th is year. Crops never looked b etter, and th e corn h u sk er state is certain ly on th e m ap in a big agricul tu ra l way. W e enjoyed to u rist accom m odations a t N o rth P latte, stopping at th e lovely Cam pbell’s cam p al though th e re are o th er excellent to u r ist cabins in th a t city. W e w ere re m inded th a t N o rth P latte bankers, in cluding W . M. M unger, cashier of th e F irs t N ational; W . H. M cDonald, ch air m an of th e M cDonald S tate Bank, an d o th er N orth P latte financeers e n te r tained th e ban k ers of th e 1941 Group M eeting tra in a t a b reak fast w hen th ey passed th ro u g h th a t city th is spring. N orth P latte is an excellent tow n of 12,000 and certainly looks fine th is year. E stes P ark , of course, h arb o rs m any notables. Dr. E dw ard Steiner, retire d P rofessor of Religion a t G rinnell Col lege, and know n as a lectu rer th ro u g h out th e co u n try lives in E stes P a rk each sum m er. He delivers m any ser m ons in th a t area. E dna Ferber, w ell know n au th o r w ho incidentally spent p a rt of h e r childhood in O ttum w a, Iowa, w rites m any of h e r books a t Longs P eak Inn. W hile we w ere in the park, th e H onorable H arlan F isk e Stone, new Chief Justice of th e U nited States suprem e co u rt took his oath of office as Chief Ju stice in th e presence of some of th e U nited States rangersand a select group of notables in E stes P ark. On Ju ly 4th Ju stice Stone delivered a special salute to th e U nited States flag in fro n t of th e Stanley H otel in th e park. The occasion w as th e 165th an n iv ersary of th e signing of th e DecN orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A ugust 19^1 14 Income TCX R titß W ill Be Higher for 1941 W IL L greatly-increased incom e ta x ra te s for 1941 have any serious effects on th e o u tstan d ing C onsum er C redit Loans of banks? If so, can banks do an y th in g to offset these effects? C. A. McClintock, p resid en t of The Colonial T ru st Com pany, P ittsb u rg h , Pennsylvania, believes his b an k can. He points out th a t m any people are certain to find them selves in em b ar rassin g financial positions n ex t M arch on incom e ta x pay m en t date. Al tho u g h n early all th ese people p ro b ably realize th a t taxes w ill be h ig h er . . . few of th em realize how m uch h ig h er th ey are likely to be . . . and few er still have p lanned to do an y th in g about it. T his m eans th a t m any people, faced by th e necessity of m ak ing incom e ta x p aym ents bigger th a n th ey ever dream ed of, m ay be unable to m ake usu al m on th ly paym ents on th e ir personal loans; o th ers w ill w an t to ren ew th e ir loans for m ore m oney; on top of all th is th e re w ill probably be an in ru sh of new loan business. Mr. M cClintock believes it is th e d uty of his b ank to show its custom ers w h at to expect in th e w ay of in creased taxes . . . and to suggest a system atic savings plan to m eet th is contingency. laratio n of Independence, and th e cerem ony w as b roadcast over all of th e netw orks. It followed im m ediately afte r P resid en t R oosevelt’s F o u rth of Ju ly address. M ountain clim bers in late Ju n e and early Ju ly w ere disappointed to find th a t th e Longs P eak tra il w as k e p t closed u n til Ju ly 15th on account of late snows. T here w ere snow d rifts 15 to 20 feet h igh n e a r th e sum m it, and th e tra il w as declared unsafe by th e rangers. F ish in g in th e Rockies d u rin g our visit th e re w as only fair. On account of th e still m elting snows, th e riv e rs and stream s w ere not clear, and th is seem ed to an noy th e tro u t, m aking them sulk and hide b en eath big rocks. W e w ere unable to coax th em out. Therefore, fu tu re vacationers w ill no N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19M F or Married C ouples W ithout D ependents N et P re se n t Congress Treas. Income* Taxes Propos. Propos. ? ? $1,500** ? ? 1,800** ? ? 2,000** $72 $11 $44 2,500 152 3,000 31 97 202 312 4,000 70 352 506 5,000 110 502 700 6,000 150 1,131 8,000 • 317 889 1,364 1,628 10,000 528 2,316 12,500 858 2,013 15,000 1,258 2,853 3,073 4,800 20,000 2,336 4,756 6,824 25,000 3,843 7,055 50,000 14,128 20,794 19,540 75,000 27,768 36,689 35,127 100,000 43,476 54,124 52,474 500,000 330,156 347,598 346,122 1,000,000 717,584 739,598 738,086 *Net incom e is th a t rem aining a fter deductions for in terest, tax paym ents, ch u rch contributions, etc. **There has been no in tim a tion as to th e b rack et at w hich incom e taxes m ay begin. doubt find them ready and w illing. W e enjoyed even m ore, w atching fish erm en pull out big tro u t from “T ro u t H aven,” a sm all com m ercial pond stocked w ith thousands of beautiful big tro u t rig h t in E stes P a rk village, and you are provided w ith a fly rod, y o u r bait is placed on th e hook and you m erely toss it out and pull in w h atev er m ay strike. W h atev er you catch, (and you alw ays catch som e th in g w ith in a few m in u tes), is 80c p er pound and y o u r fish are dressed for you. At th at, it is probably cheaper th a n m ost of th e fish v eteran fisher m en b rin g back from Canada and v arious d istan t points, considering the cost of such excursions. W e highly recom m end spending a day in Colorado’s fam ous ghost city, C entral City, fo rty m iles due w est of D enver on an excellent highw ay. Cen A ccordingly, T he Colonial T ru st Com pany has prep ared a folder w hich contains a table of contem plated taxes for various incom e brackets. T his table show s th a t incom e taxes m ay be increased from four to six tim es in 1941 for people w ith average incomes. T he folder th e n explains how to open an “Incom e T ax ” savings account w hich w ill perm it people budgeting in advance, to take care of these taxes w hen th ey fall due. T his folder w as sent w ith a letter from Mr. M cClintock to all personal loan, appliance, FH A and autom obile accounts. It also w en t to all check ing and savings accounts because of its tim eliness and interest. An adver tising cam paign w as in itiated in the th ree daily P ittsb u rg h papers. Dis plays w ere set up in th e b an k lobby . . . folders w ere placed in convenient table and desk racks. F olders w ere also offered to th e general public in th e closing com m ercial of th e b a n k ’s reg u lar new s broadcast over a local radio station. The Colonial T ru st Com pany pro poses to handle these new “Incom e T ax ” savings accounts in th e sam e m an n er as reg u lar savings accounts . . . and not along the lines of a “C hristm as Club” service. tra l City, rig h t up in rugged m oun tains, experienced one of the g reatest gold ru sh es in 1859. F ro m th en on th ro u g h th e early 70’s m illions of dol lars of gold and silver w ere m ined in th a t area w hich is dotted w ith sm all holes in th e ground m ade by pro s pectors from all over th e w orld. In fact, it is claim ed th a t m ore th a n $500,000,000 in gold, silver, and various o ther m etals have been m ined since 1859 in th a t area. In th e 70’s th e tow n becam e so rich th a t some of its citizens erected w hat they called th e finest hotel in th e world, th e “T eller H ouse,” and they also bu ilt a g ran d opera house and staged g ran d opera. Such sta rs as Sarah B ernhardt and w orld fam ous singers played in th a t opera house. H orace G reeley spent some tim e in C entral City as w ell as Oscar W ilde (T u rn to page 23, please) 15 Banks A re Still Trying to Solve W W(ig(i ÜHäHour Problem E HAVE a law w hich is defi n ite as to wages, hours, and penalties, and indefinite in m ost of its o th er provisions. A fter alm ost th re e years, th e confusion th a t su rro u n d s th e enfoi’cem ent of th e law is g re a te r th a n a t th e tim e th e law becam e effective. N ot u n lik e th e F ed eral Incom e T ax Law, th is one w ill grad u ally be w ritte n in its final form by th e courts, and since th e y are show ing a definite ten d en cy to dis agree, it is c ertain th a t th e final d e te r m in atio n of each co n tro v ersial point w ill re st w ith th e Suprem e Court. It m ay be y ears before we have a n y th in g th a t approaches a definite law, and in th e m eantim e th e confusion m ay, conceivably, becom e greater. E v en if th e law is am ended to th e ex ten t of no longer being burdensom e to b an k s or is even com pletely re m oved from th e F ed eral statu tes, it is m y opinion th a t th e re w ill be no long-range p e rm a n e n t relief. Sooner or la te r w ar activ ity w ill cease, and w hen it does unem p lo y m en t w ill be come an even g re a te r problem th a n du rin g th e p ast decade. M oreover, th e m ajo rity of th e 48 states are now considering w age and h o u r legisla tio n —in ev ery case m odeled a fte r th e F ed eral Act. T his tre n d to w ard th e passage of state w age and h o u r law s m ay be expected to grow , and some day we w ill have 48 little F a ir L abor S tan d ard s Acts, all of w hich w ill p ro b ably be m ore severe th a n th e law we are now considering. Since th e re is some possibility th a t ban k s w ill be b ro u g h t into coverage by co u rt decision, it is ju s t as obvious th a t every provision of th e law m u st be observed in order to p re v e n t th e possible accum ulation of a heavy con tin g e n t liability. B anks are sim ply caught on th e h o rn s of a dilem m a, w h ere th e y m u st rem ain u n til th e courts have decided if th e y actually are engaged in in te rsta te com m erce or are in stru m e n ta litie s of com m erce. P erh ap s th e experience w ill be good for us, in th a t it w ill p rep are us for th e sta te law s th a t are alm ost certain to come. W hile th e F a ir L abor S tandards Act, or, as it is m ore com m only know n, th e W age and H o u r Law, is By Leslie K. Curry Vice President M erca nti le -Com m erce Bank & Trust Company, St. Louis L E S L IE K. C U R R Y fairly brief, th e rulings, in te rp re ta tions, and co urt decisions w hich have developed are volum inous and in m any instances, contradictory. Add to th a t th e confusion resu ltin g from th e different m eanings read into them by in te rested bankers, m any of w hom are freq u en tly speaking or w ritin g on the subject, and even those of you w ho have devoted m ore th a n th e usual am o unt of study to th is problem u n doubtedly become confused and be w ildered. Is it any w onder, then, th a t th e m anaging officers in m any of the sm all in terio r banks have th ro w n up th e ir hands in disgust and are doing n o th ing tow ard com pliance, or, w hich m ay be w orse, are doing exactly th e w rong thing. T hey are th e ones w ho m ay finally be called on to pay a heavy penalty. I have personal know l edge of eighteen banks of m oderate size located in one state w hich, after inspection by th e W age and H our Di vision, w ere each called on to pay from $175 to $900 to cover alleged m inim um salary and overtim e com pensation. J u s t m u ltiply these in stances by the average for th e coun try and the resu lts w ill be frightening. The a d m in istrato r has from tim e to tim e released various in terp retativ e bulletins in an attem p t to clear up controversial points grow ing out of th e indefinite provisions of the act, b u t these are alw ays prefaced w ith th e statem en t th a t th ey are subject to final d eterm in atio n by th e courts. T hey have th e ir chief value as an indica tion of th e course of action the ad m in istra to r w ill pursue, b u t do not in any sense relieve th e em ployer of legal liability. Since th e act itself is silent on th e subject, it is to be as sum ed th a t th e state sta tu te of lim ita tions m ay apply, and if th a t be true, an em ployer m ight find him self sub ject to an action even afte r th e pas sage of a long period of years th ro u g h out w hich some in te rp re ta tiv e ru lin g h ad been com plied w ith in every re spect. It should be pointed out, how ever, th a t th e courts w ill undoubtedly give full credit for sincerity if in te r p retativ e rulings are observed. If it should u ltim ately be d eter m ined th a t banks are engaged in in te rsta te com m erce and are covered by th e law, it is quite probable th a t m any w ill find th a t th e y have been inno cently accum ulating overtim e liabil ity. F o r instance, if an em ployee w orks overtim e on his own initiative or as a re su lt of an agreem ent be tw een em ployees, th e em ployer is nonetheless responsible for hours sp en t on such w ork, even though th e em ployee m ay have signed out a t th e reg u lar hour. W e m u st rem em ber th a t in th e act th e definition of th e term “em ploy” includes “to suffer or p er m it to w ork.” T h at provision also m akes it illegal for an em ploye to en ter into an agreem ent w ith his em ployer to w ork overtim e b u t to sign out a t an earlier hour. The an sw er to th e problem is to so arran g e th e w ork th a t overtim e w ill n ot be necessary, b u t w hen it does oc cur, th e em ployee m u st be com pen sated for all tim e w orked in excess of th e sta tu to ry m axim um , including fractional hours, at a ra te w hich shall n ot be less th a n one and hone-half tim es th e reg u lar ra te of pay. Such N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19M 16 Keep the Profit S y ste m Do Business Tfì6 A ttì6fÌC 0 tl Wûj/ LL A G R EE th a t our biggest problem in th e w orld today in our search for ab u n d an t, peace ful living and pro sp erity , is d istrib u tion,” said H a rry G. Swift, d istrict sales ag en t of th e M archant C alculat ing M achine Com pany of M inneapolis. A Mr. Sw ift w as b o rn and educated in E ng lan d and has sp en t m an y y ears rep resen tin g his com pany in Scan dinavia, C entral E urope, and th e Bal kans. He w as th e re and lived am ong th e people w h en th e p re se n t fire w hich seem s to be b u rn in g up th e w orld w as in th e process of being set. Mr. Sw ift said: “T h ere are tw o schools of th o u g h t on th is subject of distribution. One believes th a t we can legislate ourselves into ab u n d an t living and p ro sp erity and th e o th er believes th a t th e p rinciples of th e su rv iv al of th e fittest, fair com peti tion and th e profit system is th e only sure way. In o th er w ords, th e A m eri can way. paym en ts are p resum ed to be m ade w ith in a reasonable tim e, w hich g en erally should not be la te r th a n th e n ex t re g u la r pay day. In th e in s titu tion w ith w hich I am connected we pay salaries tw ice m onthly, b u t all accum ulated overtim e is paid at th e second pay period each m onth. W e do not believe we w ill be subject to any criticism because of th is inasm uch as our salaries are all based on a m o n th ly rate. In so far as th e act is concerned over tim e pay m en ts m u st be in cash. H ow ever, th e a d m in istra to r has ru led th a t tim e and one-half off, if given d u r ing th e sam e p ay period, or p rep ay m ent, u n d e r certain conditions, m ay be considered as a cash paym ent. As long as we m u st endeavor to observe every provision of th e law u n til th e re h as been a final d eterm in a tion by th e courts, in those cases w here overtim e is n ecessary it m ay be m ore econom ical and have a less vio len t and re c u rrin g effect on th e e a rn ings sta te m e n t to pay overtim e rates for e x tra w o rk ra th e r th a n to em ploy additional w o rk ers in o rd er to m eet th e 40-hour deadline. N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A ugust 19^1 H A R R Y G. S W I F T In order to control overtim e it is first necessary to know exactly w h at co n stitutes hours w orked. The adm in is tra to r says th a t all tim e is included d u rin g w hich an em ployee is req u ired to be on d uty or to be on th e prem ises or a t a prescribed w ork place, w h eth er w o rk ing or not. I hope you w ill note th a t th e ad m in istrato r used th e w ord “req u ired .” Obviously it w as not his in ten tio n to in fer th a t every em ploye m u st come on to th e prem ises a t th e precise m om ent at w hich w ork is p re sum ed to start, so th a t th ere m u st be a nom inal allow ance betw een th e tim e of com ing on th e prem ises and actual ly rep o rtin g for w ork. It has come to m y atten tio n , how ever, th a t th e in spectors have no fixed rule for d eter m ining th e am ount of spread th a t m ay be allowed. I have h eard th a t in some in stances th ey have allow ed as m uch as 20 m inutes, and in o thers as little as 5. U ntil th e a d m in istrato r gives us a definite ru lin g —if th ere is such a th in g —th e re is a certain chance th a t m u st be tak en w ith respect to the lapse of tim e betw een signing in and actually rep o rtin g for w ork. Meal pe riods are not counted as hours “Those w ho prom ise paradise, ease, luxury, by legislation, call it idealism , th e ir prom ises produce softness, lack of individual ch aracter and resource fulness, and courage. T hey believe in to talitarian ism and th e subm ergence of th e individual by th e state. Those w ho speak of th e profit system be lieve th a t it is responsible for the best paid w orkm an in th e w orld and th a t it has produced th e b est living conditions since th e beginning of tim e,” com m ented Mr. Sw ift as he com pared the living conditions in E u rope to those of America. “E ven if H itler w ins, he loses,” con tin u ed Mr. Swift. “A ny form of gov ern m en t w hich regim ents th e indiual is bound to fail in a w orld w here en lig h ten m en t is th e order of th e day. Sooner or later th e individual w ill as sert his rig h ts to individual life, lib erty, and th e p u rsu it of happiness, and developm ent of character, regardless. A nd d ictators have a w ay of m ellow ing w ith age if th ey live th a t long.” w orked, although a sh o rt recess is. T raveling to and from th e reg u lar place of w o rk is not included, b ut trav elin g tim e inciden t to th e em ployee’s duties m u st be counted. Tim e sp ent atten d in g lectures and study courses afte r th e reg u lar w orking h o urs is exem pt if atten d an ce is w holly on a v o lu n tary basis and if the m aterial is n o t so definitely and closely related to th e em ploye’s job as to actually co n stitu te a p a rt of his w ork. In o rder th a t each b an k m ay know w h e th e r overtim e liability is develop ing, it is absolutely necessary th a t tim e records be kept. M oreover, the act itself provides for th e prep aratio n and re ten tio n of certain personnel rec ords. I am certain th e re is not a bank an yw here th a t does n ot have am ple records of th is type, b u t th ere m ay be those th a t have been careless w ith re spect to tim e records. If th a t is true, those ban k s m ay find them selves se verely penalized by th e ad m in istrato r or by th e courts if it should ever be come necessary for them to prove how m uch tim e w as actually w orked (T u rn to page 38, please) 17 N orthw estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19kl Does Partnership Exist Between Lessor and Lessee? W earne took out certain life in s u r ance in K entucky. The policy p ro vided for th e p ay m en t of p rem ium s sem iannually and th a t a thirty -d ay grace period w ould be allow ed on th e pay m en t of prem ium s. A fter th e pol icy w as in effect for som e tim e, W earne en tered into a su pplem ental agreem en t w ith th e in su ran ce com pany providing for th e p ay m en t of prem ium in stallm en ts on a m on th ly basis. T his agreem en t w as silen t as to th e applicability of th e thirty-day grace period on th e paym ents due th ereu n d er. W as it applicable? No. A thirty-day grace period w ith in w hich prem ium s m ay he paid under a life in surance p olicy is inapplicable to in stallm en ts of prem ium s paid m onthly under a su pp lem ental agree m ent, w here the p olicy itself provides on ly for sem iannual p aym ents. Chelsea, a b anker, ow ned a farm th a t had been deeded to him by his father. He en tered into a lease of th e place w ith B ostw ick in w hich it w as agreed th a t he should receive one half of th e proceeds or p roducts of operating th e farm . Did such a lease create a p a rtn e rsh ip betw een Chelsea and Bostwick? No. A lease of a farm reservin g to the lessor as yearly ren t one h alf of the proceeds or products of operating the farm does not create a partnership b etw een the lessor and the lessee. M axwell sold to Jo h n sto n a p rom is sory note in N ebraska and indorsed it to him “w ith o u t reco u rse.” I t su b sequently developed th a t M axwell w as guilty of frau d and m isrep resen tatio n to Jo h n sto n in selling th e note to him . Does th e fact th a t the note w as in dorsed “w ith o u t reco u rse” p rev en t Jo h n sto n from recovering from M ax well? No. W hen a note is sold and the in dorsem ent thereon is “w ith ou t re cou rse”, the w ording of the in dorse m ent does not relieve the indorser from liab ility for fraud and m isrepre sentation practiced by him in effect in g the sale. N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1941 These and Other Timely Legal Questions Are Answered By the LEGAL DEPARTMENT C ertain real estate w as sold in N orth D akota to a county th ere at a tax sale. The record ow ner quitclaim ed it to the county for ten dollars so th a t the county need not give certain notices req u ired by law for o rd inary tax sales. W as the quitclaim good? Yes. W here realty is sold to a county in N orth D akota at a tax sale, the cou n ty, for the sake of econom y, ex pedition, and clarity of title, could p erfect its title to the realty by ac quiring a quitclaim deed from the record ow ner in lieu of g iv in g statu tory notice of the expiration of the tim e for redem ption and of secu rin g a tax deed. G rant borrow ed from Hodges in South D akota five th o u san d dollars w ith w hich to buy and sell cattle. G ra n t’s operations w ere en tirely his ow n and th e cattle he bought and sold w ere strictly his own property. T here w as no fiduciary relationship betw een him and Hodges. G rant failed to pay th e loan w hen it fell due and Hodges sought to have him crim inally prose cuted as an em bezzler. Could he do so? No. To con stitu te the crim e of em bezzlem ent, there m ust ex ist a fiduci ary relation b etw een the accused and the person injured of the character m entioned by statu te and the alleged subject of the em b ezzlem ent m ust be the property of another, acquired by reason of the fiduciary relation. Since this w as n ot the case here, an em bezzlem ent prosecution w ill not lie. A M innesota b an k er held a chattel m ortgage on an autom obile ow ned by A. B. H ause and th e chattle m ortgage w as duly signed in th e p roper fashion. W hen th e in stru m e n t w as filed for public record, how ever, th e ow n er’s nam e w as erroneously show n on the records, and treated as, A. B. House. W as such recording constructive notice of th e b a n k e r’s lien? Yes. In a case in v o lv in g su bstan tia lly sim ilar facts, the M innesota Suprem e Court held recen tly th at the doctrine of idem son an s w as appli cable and that th e recording operated to giv e co n stru ctive notice to the public of the ch attel m ortgage of the banker. D uncan died in Iowa. The probate of his estate w as com m enced in one of the counties there. L ater on, one of his h eirs com m enced th e probate of it in an o th er county. W as th e second set of probate proceedings valid? No. There cannot be tw o ad m in is trations of the sam e estate at one tim e, and the court w h ich first obtained jur isd iction th ereof w ill con tinu e to hold such jurisdiction u n til it is set aside by direct attack. A South C arolina state ban k w as nam ed coexecutor and tru ste e u n d er a will, duly qualified th ereu n d er, and en tered upon th e discharge of its duties as such. Subsequently it w as converted to a national bank. Should th e n ational b ank continue to act as coexecutor and trustee? Yes. The South Carolina Suprem e Court held, in a case in v o lv in g sim ilar facts recen tly, th at the n ational bank should con tinu e to act as had the state bank and said th at it could see no good reason w h y the bank should lose its p ow er to act as coexecutor and tru stee of the estate sim p ly b ecau se it changed from state su pervision to federal su pervision. Jordan, a banker, sailed from L iv er pool on May 1, 1940, for New York. He died w hile on th e boat tw o days la te r and w as bu ried at sea. Subse quently his w idow sued th e com pany th a t ow ned and operated th e ship, claim ing th a t it had violated h er rig h t to accord h er h u sband a decent burial. Can she recover? (T u rn to page 46, please) 19 W hat Your Bank Can Do For AM in no position to ta lk about th e problem s involved in th e p h y s ical p roduction of defense m ate rial, for th a t is not th e b a n k e r’s job. As bank ers, we are in te re ste d in th e financial aspect of th is trem endous p ro g ram and how it m ay affect us. T h ere are tw o prin cip al financial ob jectives (1) th e im m ediate, w hich, as we all know , is to assu re adequate financing of our pro g ram of defense, (2) th e long-range objective, w hich is to finance it and y e t p u t into effect safeguards ag ain st serious m alad ju st m en ts in our price stru ctu re. The question im m ediately arises of how our g o v ern m en t is to procure funds for th is program . W e all know th a t we have a large reserv o ir of available b an k funds sufficiently ade quate, it w ould seem, to finance any p resen tly contem plated program , b u t as y et th e g o v ern m en t has n o t b o r row ed from com m ercial b an k s for de fense purposes, and ap p aren tly does not w ish to do so since defense sav ings bonds m ay not be pu rch ased by banks. The reason for this, of course, is obvious. If b anks pu rch ased these bonds, it w ould re su lt in a co rrespond ing cred it expansion and rise in de posit volum es. T hese increased de posits would, of course, be increased pu rch asin g pow er, and th is is th e very th in g th a t th e g o v ern m en t w ishes to avoid. You w ill recall th a t d u rin g th e W orld W ar No. 1, b an k s b o ught th e larg e r p o rtio n of L ib erty Loan bonds w hich re su lte d in a cred it expansion th a t h ad no sm all p a rt to play in th e sh a rp ly risin g price sp iral we ex p eri enced at th a t tim e. Now th e re are a t least th re e oth er m ethods of g o v ern m en t financing: F irst, taxation, w hich is an im p o rta n t source of income; second, gov ern m en t borro w in g from individuals and cor porations; th ird , a pro g ram w hich has been freq u en tly advocated by politi cians . . . th a t of p rin tin g fiat m oney w hich is so dangerous it can only be com pared to d ynam ite itself. In th e y e a r 1939, o u r n atio n al in come w as app ro x im ately 69 billion dollars. T he tax es received by th e go v ern m en t d u rin g th e n ex t y ear from th a t incom e am ounted to ap p ro x im ately 6 billion dollars. It is I National Defense By Otis R. Preston Assistant C ash ie r Federal Reserve Bank of Minneapolis B e f o r e th e N o rth D a k o ta B a n k e r s C o n v e n tio n O T IS R. P R E S T O N obvious th a t as th e national income rises, ta x receipts w ill m aterially in crease. I t w as recently estim ated th a t w ith a national incom e of 90 billion dollars, a t p resen t tax rates the gov e rn m e n t’s tax receipts w ould am ount to b etter th a n 11 billion dollars, and if th is defense program continues on th e basis it is contem plated, we m ay expect our national incom e to reach a figure b e tte r th a n 90 billion dollars; in w hich event, it is reasonable to an ticipate th a t w ith in th e n ex t few years, in view of th e recen t request of th e tre a su ry for an additional 3xk billion dollars in taxes, th a t our a n nu al ta x receipts m ay am ount to 15 billion dollars. W ith this business activity, it is to be expected th a t we m ay approach also full em ploym ent, w hich w ill di m inish W PA expenditures and other program s th a t have cost our govern m ent in th e p ast several years, huge sum s of money. Of course, it is not reasonable to ex pect th a t we shall be able to finance all th is defense program th ro u g h tax atio n and obviously th e govern m ent w ill continue to borrow . As you ban k ers know, th u s far th e tre a su ry has experienced no trouble w h atso ever in borrow ing w h atev er funds have been needed, and every new is sue to date has been g reatly oversub scribed. Excess reserves of 6 billion dollars held by banks constitute, I m ight say, a basis for adequate funds for th is program , b u t it appears to be a sounder policy to tax and borrow on th e earnings and savings of indi viduals and corporations, falling back on th e b an king system only as a sec ondary reso rt th ro u g h th e purchase by them of securities in am ounts needed. As I said before, we are con fident th a t the banks w ill n o t fail to supply th e funds if called upon. As you know, on May 1 last, th ere w as offered to th e public defense bonds Series “E ”, “F ”, and “G”, and defense postal savings stam ps. The long-range objective of th e tre a su ry d ep artm en t in offering these defense bonds to th e public is principally to a v e rt price inflation. Now ju st w h at is inflation? One m ight define it as n o thing m ore or less th a n a sharp, undesirable, and dangerous rise in the general price level, w hich, it w ould seem, could easily occur w ith th e busi ness activ ity we are now rapidly ap proaching. A lthough we do not have th e defense in d u stries in the n o rth w est such as th ey have in the east and on th e w est coast, y et in th e Tw in Cities some concerns have now re ceived su b stan tial governm ent con tracts and th e ir w orkm en, form erly receiving $40, $50, and $60 a week, are now receiving $100 a w eek and more. These w orkm en, in alm ost all cases, are spending th e ir m oney freely in purch asin g larg er am ounts of con su m ers’ goods, such as autom obiles, etc., and the old law of supply and dem and sta rts to w ork . . . th e c u rta il m ent in th e production of consum ers’ N orthw estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19M 20 Plenty of Field H elp H e lp s Yo u Build Business I n t e l l i g e n t , tr a in e d fie ld s e r v i c e m e n a lw a y s a r e a t th e d is p o s a l o f W e s t e r n M u tu a l a g e n t s . g a te w hat s e r v ic e th is I n v e s t i e x tr a m a y m e a n to you r agency, Legal R e se rv e — N on-A ssessab le F ir e a n d A u to P o lic ie s S ta n d a r d P o lic y F o r m s W estern M utual F ir e I n s u r a n c e C o. 9th and Grand Des Moines, Iowa "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 19bl goods and active buying resu lts in a shortage of goods, creating a seller’s m arket, h ig h er prices—all an infla tio n ary m ovem ent. W h at does inflation m ean to us as bankers? W e can b est illu strate th is by recalling th e period du rin g and follow ing th e W orld W ar No. 1 w hen w h eat w as selling a t $3.00 and m ore, an d we all seem ed to feel th a t such prices w ould exist forever, and w ent ahead and broke up new land, re su lt ing in a rap id a g ricu ltu ral expansion in th e n o rth w est. W e of th e b an king fra te rn ity certain ly do n ot w ish a sim ilar situ atio n resu ltin g from th is de fense program . W e recognize th a t it is not difficult to operate a ban k w ith out losses w hen prices are low, b u t h isto ry show s th a t serious losses are la te r developed on credit extended w hen prices are high, w hen cattle are selling a t $150 a head, and w hen farm com m odities are high. I m ention this, for th e pressing problem today w hich is confronting us all is to use every factor th a t w ill p rev en t ru n aw ay prices and an eco nom ic situ atio n com parable to th a t w hich followed th e last w ar. One m ethod is to tak e aw ay from individ uals and o thers benefiting from th is program a p a rt of th e ir earnings and savings, th ereb y reducing th e ir p u r chasing power. I now w ish to com m ent on the savings bond p rogram itself by giv ing you an outline of essential facts about these bonds and savings stam ps. F o r th e benefit of th e ban k ers w ho have n ot qualified as issuing agents and w ho are n ot carry in g a stock of these defense bonds, I m ig h t say th a t th ere are th re e series of these bonds, i. e., “E ”, “F ”, and “G”. Series “E ” is an appreciation bond, registered, n o t tran sferab le, taxable as to incom e by th e F ed eral G overn m en t only. It is v ery sim ilar to the old U nited Sates Savings Bond w ith w hich you are all fully fam iliar. Ma tu rity is 10 y ears from issue date. The equivalent yield is 2.9 per cent if held to m atu rity . Individuals only are eligible for th e p u rchase of these bonds in am ounts n o t exceeding $5,000 m a tu rity value in an y one cal en d ar year. These bonds can be re deem ed a t any tim e afte r 60 days from th e date of issue. Series “F ” is an appreciation bond also. It has a m a tu rity of 12 years, and like th e “E ” bond, no in terest will be paid, b u t th e bond w ill pe riodically increase in redem ption value and if held to m a tu rity w ill re tu rn a yield of 2.53 p er cent. This bond m ay be reg istered in th e nam e of an individual as w ell as any asso ciation, p a rtn ersh ip , fiduciary, or cor(T u rn to page 46. please) W hich Is M ore Valuable— A M (M or a House? Some Excellent Reasons W hy Selling Accident and Health Insurance Will Add Materially to Your Income IS T E N closely, w hile I ad m in ister th e in tra v e n o u s th a t inoculates you w ith th e c ru x of th is situ a tion. I t is this: “A ccident and H ealth Is P rim a ry In su ra n c e .” I recom m end th a t you have a large a ttra c tiv e sign m ade and h an g it in y o u r office w here you w ill see it m an y tim es each day. Conspicuously place it so y o u r office v isito rs also often read “A & H Is P rim a ry In su ra n c e .” If you rem em ber th a t each day, and rem em b er w hy, you can forg et all else. T he w ord “p rim a ry ” m eans “th a t w hich is first in ran k , or im portance; fundam ental; chief.” A ccident and h ealth th u s is “p rim a ry in su ra n c e ” because all form s of in su ran ce are good only if you in su re th e income, or “earn in g pow er,” th a t pays th e prem ium s. L et us am plify th a t s ta te m en t and illu stra te it. “E a rn in g pow e r” is m a n ’s m ost valuable, invisible y et p rim a ry asset. All he m ain tain s th a t costs m oney; taxes, in su ran ce and upkeep or re n t on his hom e, food, clothing, recreatio n , doctors, dentists, drugs, th e education of his ch ildren in school or in college, th e operation of his autom obile, th e in sta llm e n t p ay m en ts on all he owes, yes, and even his life in su ran ce p ro g ram for re tire m ent, or to b u ry him an d leave th e fam ily in com fortable circum stances, all depends on his continued income. Do you question this? All rig h t, w h a t w ould h ap p en to all of those th in g s you an d y o u r fam ily now enjoy if y o u r incom e—y o u r earn in g pow er —w as sabotaged by accident or ill ness, say for six m onths, or a year, or longer? W ould collections come in and th e com panies be paid? T hey have p erfected th e robot, or autom atic pilot for airplanes, b u t n o t for an y type of business or profession I know of. M aybe you are one of th e 2 p er cen t in th is c o u n try w ho are n o t de p en d en t on y o u r earn in g pow er or continued incom e. T h en you are fo r tu n ate, b u t financially lonesom e, b e cause 98 p er cent of th e people in th e L https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis By F. G . Packwood M anager Southwest ern Department M assachusetts Bonding and Insurance Company Kansas C it y U nited States of A m erica depend on eith e r th e pay check or th e ir earn in g pow er. Some 26 p er cent of these A m erican fam ilies receive from $1,000 to $5,000 p er year. T he o th er 74 per cen t get less th a n $1,000. So, g entle m en, 98 p er cent of th e expirations in y o u r agency probably depend on continued income. You m ay be sabo tag in g yo u r ow n business, exposing y o u r lifeline, if you do not in su re th e ir incom e or earn in g power. H ave I proven to y o u r satisfaction th a t “A & H is P rim a ry In su ra n c e ” an d w hy th a t is so? P rim a ry for th e assured, p rim a ry for th e agent. P erh ap s you do not clearly appraise th e value of th e earn in g pow er of your clients and prospects so th ey fully u n d e rstan d its g reat value. The E n g lish m easure w ealth in term s of in come. A m an an n u ally earn in g 1,000 pounds is said to be w o rth 1,000 pounds. C learly prove to y o u r pros pects th a t a m an earn in g $2,000 per y e a r a t 25 y ears of age has earnings u p to age 60 of $70,000; th a t m eans his earn in g pow er is w o rth $70,000 (plus his increased earnings as tim e goes on). On th e sam e basis, a m an at age 35 earn in g $3,000 p er y ear has an invisible asset of $75,000, w hile a m an 45 y ears of age earn in g $4,000 p er y ear has an invisible asset of $60,000. If th ese th re e m en w ere clients of your agency and had buildings, stock and o th e r visible personal p ro p erty w orth, r e s p e c t i v e l y $70,000, $75,000 and $60,000, how m uch tim e w ould you spend try in g to sell th em fire and w in d storm insurance? W ould you call them “Old F ogey” if th ey said th e y d idn’t believe in fire and w ind F . G. P A C K W O O D insurance? Yet I am told th a t one fire policy in each 1,200 becomes a claim each year, w hile th e ratio on accident policies averages one loss out of each eight policies each year. May be y o u r clients w ould like also to have a policy th a t pays them for th eir m ore freq u en t losses. P aying A & H losses to your clients m ay m ake th em h ap p ier about paying you so m uch in prem ium s each year and seldom g etting an y th in g back. Did you ever have a client tell you that? Did th a t client ever have an accident or illness th a t you should have paid for u n d er a policy you should have sold him? W h at does th e m an on th e op erat ing table th in k about as th e surgeon p rep ares for th e operation? Probably of how his fam ily w ill get along w hen 22 deprived of his re g u la r incom e—u n less he is p rotected by accident and health insurance. If you see a building b u rn in g by fire you say “Is it in su red ?” W h at do you say or th in k w hen you see a m an b u rn in g up w ith fever? W hich is m ore valuable, a m an or a house? W hy in su re only th e house? B roken bones often cause prolonged disability. L ay people do n o t tak e th is seriously. T hey are m ore concerned about w ho m ig h t tak e out th e ir ap p en dix th a n about w ho m ig h t set a b ro k en leg. T hey th in k n early any doctor can set a b ro k en bone. How w rong th e y are! C ertain bones broken at certain sites practically alw ays tak e a long tim e to heal (delayed union) and freq u en tly do not heal (non union). F o r instance, fractu res of th e hip or nav icu lar of th e w rist, tra n s verse fractu res of th e m iddle arm bone (hum erus) and oblique fractu res occurring in th e low er th ird of th e shin bone (tibia) are alw ays slow in u n itin g and freq u en tly go on to n o n union. T his m ay re su lt regardless of how ideally th e tre a tm e n t is car ried out. A p a tie n t hav in g a chronic appendix rem oved is o rd in arily back to w o rk in th re e or four weeks; one having a fractu red w rist is lucky to get back in eight to ten w eeks. R e m oval of gallbladder w ill keep you from w ork about a m onth, w hereas disability from a b ro k en hip is con serv ativ ely te n m onths to a year? N early every able-bodied m an and wom an needs and is a prospect for som e form of an accident or h ealth policy. M edical reim b u rsem en t, dis m em berm ent, p erh ap s a c c i d e n t a l d eath benefits, for everyone, adding w eekly indem nity to in su re those h av ing incom e or earn in g power. No o th er line except life has as m any prospects. You cannot sell a dw ell ing fire policy to persons not ow ning a house, nor can you sell auto liability to persons not ow ning autom obiles. The sam e or sim ilar reasons create m uch few er prospects for bonds, b u r glary, robbery, plate glass, boiler, in land m arine, w o rk m en ’s com pensa tion, etc. Does it not take supersales m anship to sell com pensation and general public liability to a m an to pay for in ju ries to o thers occurring in or about his business or property, leaving him self u ninsured, w hen for m uch less he can buy a policy to pay for his ow n accidental injuries, not re stricted to location or to em ploy m en t or unem ploym ent w hen he is in jured? W h at w ould you th in k of a farm er m oaning about shortage of p astu re if he w as standing half-knee deep in a section of bluegrass? Y our accident and h ealth prospects rep resen t your section of bluegrass. I ’ll adm it “pickin ’s are sh o rt as sheep p a stu re ” in m ost of y o u r prospect fields. Y our ag ric u ltu ral colleges and successful farm ers preach th e gospel of d iv ersi fied crops. You know and u n d erstan d th a t so w ell th a t I cannot u n d erstan d w h y you do n o t do a little “diversified fa rm in g ” by p lan tin g a little patch of accident and h ealth prospects and clients. You cannot expect g rain to grow w here seed has n ot been sown. You cannot profitably apply th e H en ry W allace form ula to y o u r accident and h ealth field because th e governm ent has not subsidized our business, y et th ere has been, and th ere rem ains in dexes th a t our business creates in te r est and has attra c te d outside a tte n tion. Socialized m edicine is not the an sw er to th e enorm ous national economic loss ru n n in g into billions created by accidents and illness. The solution of th a t problem is our hered i ta ry rig h t and obligation. If we do not sell accident and health insurance m ore aggressively and m ore success fully, I p redict you w ill see th e gov e rn m en t tak e over th a t problem for us. If an agent w ould sell one good ac cident and h ealth policy a week, av eraging $1,200 a y ear in prem ium s, for five consecutive years, w ith av er age com m ercial lapse ratio of 5 per cent, and p u t all those com m issions in his piggy-bank, he could m ake a $5,000 splurge a t th e end of five years. T h at w ould m ean some fun as well as good business. Ninety-five p er cent of you could easily do th a t v ery little th in g w ould you only plan y o u r w ork th a t way. The average agent u n in ten tio n ally w astes m ore tim e, in some lackadaisical m anner, th a n th is sug gested program requires. If you desire to be able to convince prospects th ey should have good and adequate accident and h ealth in su r ance, first buy such a policy for y o u r self. C arry it w ith you and show every prospect exactly w h a t you carry. W atch th e favorable reaction of y o u r prospect. You w ill n ever suc cessfully sell a profitable volum e of ac cident and h ealth in su ran ce u n til you believe in it sufficiently to carry it yourself. If you do not now have such a policy, apply for it as y o u r first act w hen you get back to y o u r agency. If you do, you m ay th in k kindly of me some day w hile convalescing w ith th e peace of m ind enjoyed only by the adequately insured. “Your success w ill depend p rim a rily on how w ell you select y o u r pros pects and w h at you say w hen you call on th em .” F EMPLOYERS MUTUAL CASUALTY COMPANY DES MOINES An Agency C om pany — Assets O ver $4,000,000 I L N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A ugust 19M • Automol Automobile Insurance Compensation • Workmen’s Wc • General Liability • Elevator Insurance • Plate Glass Insurance LL 23 V A C A T IO N N EW S A N D VIEW S (C ontinued from page 14) and notables of all kinds. General Grant visited th e city, and in his h onor the n atives paved w ith silver th e stre e t rig h t in fro n t of th e “T eller H ouse” Hotel. T hen th e tow n slow ly becam e a ghost tow n w ith m ining unprofitable. B ut te n y ears ago some w ealth y D en v er people, to g eth er w ith D enver U ni versity, conceived th e idea of reviv in g the tow n, re-opening th e T eller H ouse and p u ttin g on a m o n th of g ra n d opera there. It has been a huge success and tickets to th e opera a re sold out m onths in advance. W e w ere th e re du rin g th e opera season w hich closed Ju ly 22, an d g reatly enjoyed v isitin g the T eller H ouse and stro llin g aro u n d th ro u g h th e little n a rro w streets, look ing at th e old houses, hotels, stores, and b ars w hich are exactly as th e y w ere in th e 70’s. In th e B ar of th e Teller H ouse is supposedly the original p ain tin g know n as “T he F ace on the B ar Room F loor.” W e w ere also m uch in terested in th e b uilding n e a r th e T eller H ouse w hich is now occupied by th e D enver M useum of H istory, w hich room w as th e original b anking house of th e city. It w as know n as th e Rocky M ountain N ational B ank in 1866. It w as one of th e oldest b an k s in th e state and w as organized by th e K ountze B roth ers of Om aha and New York. Still in existence are th e th ree cages, one m ark ed “R eceiving T eller” a n o th e r “paying T eller” and th e oth er m ark ed “Gold.” Over th a t counter passed m illions of dollars of gold d u st and gold nuggets.* In closing th is colum n, P u b lish er subm its from one of our b an k er friends th e follow ing “L e tte r of a M odern F a th e r” to his daughter: “My D ear D aughter: “W as so relieved to see y o u r p ictu re in last S u n d ay ’s paper. W e had begun to be uneasy. W hen you w en t E a st to spend th e sum m er w ith y o u r threecar school friends, w e d id n ’t expect you to w rite, b u t we th o u g h t th a t you would send y o u r address. P icking you out of th a t beach group m ade every th in g all rig h t again. “A re you com ing here, or w ill you go direct to school, and if so, w h a t school? I w o u ld n ’t be p ry in g into y o u r affairs, b u t y o u r siste r Eloise is going to be m arried and she said sh e’d like you to be a b ridesm aid if we could find you. Eloise is y o u r second sister, you will recall, n e x t to Peggy. “I don’t know exactly w hom Eloise is m arry in g , b u t it is n ex t m onth. I asked h e r th e m a n ’s nam e b u t I d id n ’t catch it, and as she w as in a h u rry , I De P u y h esitated about m aking h er rep eat it. She said I w ould be crazy ab out him if I should ever know him. “Your m o th er and I hope to m eet him before th e w edding, b u t th a t is not so im p o rtan t as we probably w ill see a g reat deal of him afterw ard. “Yours affectionately, F a th e r.” A M E R IC A N A G R IC U L T U R E (C ontinued from page 11) corn farm ers earn 38 cents an hour? If price changes d uring th is period ten d to resto re balance instead of to dislocate it still fu rth e r, if a su b stan tial p a rt of th e w ar costs are paid by heavy tax atio n of increased national income, w h erev er it m ay be, th en th ere is no reason w hy th e post-w ar period cannot be one of p ro sp erity for everyone. Promise or Threat Said th e S tern Young W om an Teacher: “Tommy, if you cannot be have yourself I shall have to take your nam e.” Outside Tom m y confided to a chum: “My tea c h e r’s th reaten ed to m a rry me if I don’t look out.” P re s id e n t O. 7 . A r n o ld v isits w ith typical N W N L p o lic y h o ld e rs at M an kato, M in n eso ta , m eetin g Ju n e 16 , 19 4 1. People A re Interested L IE V IN G th at m odern business, BElike a democratic governm ent, can Fidelity & Surety Bonds Blanket Bonds Burglary & Forgery Insurance ☆ NATIONAL SURETY CORPORATION VINCENT CULLEN President prosper best through a w ell-inform ed “citizenry,” and suspecting that m odern policy owners are insurance-curious, N WN L recently conducted a series of experim ental policyholder m eetings in small cities of M innesota and N orth D akota. T h e m eetings turned belief into conviction. T h ey proved that ow n ers of life insurance are alert to their privileges and responsibilities; they are interested in how their funds are handled, w h at their dollars m ean to the n a tio n ’s economy; they are eager to be inform ed. M oreover, the m eetings re flected w h a t life insurance m en, proud of their profession, have them selves long felt — th a t policyholders harbor a feel ing of friendly confidence in the insti tution w hich has stood by them through the w orld’s worst depression w ith an in tegrity u nm atched by any other business or financial institution. Like its forward-looking plan of agents’ com pensation introduced in 1939, like its new m ethod of rem uner ating brokers, effective July 1, 1941, N w N L ’s policyholder m eetings — all of w hich w ere kept entirely free from any suggestion of a sales atm osphere — are distinctly a new departure, a new m ile stone in a record already studded w ith progressive achievem ent. N orthwestern N a t i o n a l LIFE INSURANCE COMPANY O . J . A r n o ld , M in n e a p o lis , P re s id e n t M in n e s o ta N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19^1 24 -i I b Ü x ere ** * \ó p ro m o te t0 ' t í b u sí» ess? , ugb * e V>íiuk r . Y es, lk r A sociaAns^;e • iV(\ verVi^eTs glar t F in a n c ia bcgt p lace Asá0ü o n : / b e n eftt6 î r ° ^ oïlv etiÛ o n s erettici, . t tVw \vhere AttC n l b e banV Jo in ^ oW)’ ‘ ConvenVI° n ' FINANCIAL ADVERTISERS 231 SOUTH LA SALLE STREET, CHICAGO ASSOCIATION P re s to n E . R e e d , E x e c u tiv e V ic e -P re sid e n t A non-profit organization for the betterment of bank advertising • • • p u b lic ity . . . new b u s i n e s s m e t h o d s . . . pu b lic relations» N orthw estern R anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August Í9M 25 The Month’s Market Maneuvers The m a rk e ts in Ju ly p re fe rred th e w ar com m uniques of th e R u ssians to those of th e G er m a n s — and prices w ere firm to stro n g er. T h ere w e r e o th er reasons also w h i c h w ere re JA M E S H . C L A R K E sponsible for b e t te r m arkets. P rice control legislation m et w ith setbacks. E a rn in g s s ta te m en ts w ere good. Inflation cam e back into th e new s w ith a b ang as prices climbed. A n R. F. C. loan to G reat B ritain obviated th e necessity of sell ing h e r U. S. stocks in th e m ark et. I n come from th e sale of D efense Bonds plus expected incom e from th e new “T ax Savings P la n ” of th e G overnm ent helped th e G overnm ent m a rk e t—by reducing th e a m o u n t of m oney to be raised by new financing th is year. T hese developm ents plus a few o th ers w ere sufficient to offset th e bad new s—th e in tro d u ctio n of th e new ta x bill—th e definite tig h ten in g of th e situ atio n in th e F a r E a st—th e a n nouncem ents from OPACS of forced c u rta ilm e n t of produ ctio n in th e au to m obile an d o th e r in d u stries in th e com ing m onths. L et’s look at the stock m arket first. P rices w en t up—w e m en tion ed that above—but volu m e also increased sharply. F or th e first tim e in 1941, sh ares traded in any one day exceeded one m illion sh ares—the th eoretical break-even p oint for stockbrokers. A s w e w rite th is during th e m orning of W ednesday, Ju ly th irtieth , there have been th ree days of a m illion or m ore volu m e and n um erous others w h en trading ran alm ost that h igh. The first tw o days w ere su ccessive, July eighth and n in th —fo llow in g th e p ubli cation of th e occupation of Iceland. The third day—Ju ly tw enty-second — cam e on the h eels of the an nou nce m ent of the R. F. C. loan of $425,000,000 to Great B ritain —secured by B ritish h oldings of our stocks. Using Dow-Jones averages fo r in dustrial stocks as a ya rd stick— prices w ere up about six points in Ju ly. On Ju n e th irtie th the average w as 123.14 —yesterd a y afternoon at the close it was 129.19— th is m o rn in g th e volu m e of trading is light and prices are slig h tly easier. N o t including today, there have been tiven ty-fo u r days of trading in the J u ly m a rk e ts— gains Prepared for The Northwestern Banker By James H. Clarke Assistant Vice President American National Bank & Trust Co. Chicago w ere reported fifteen tim es and losses nine. A good barom eter of the feel ing in financial circles is the sale price of seats on the N ew Y o rk Stock E x change. Y esterday a seat sold for $32,000, a gain of $5,000 fro m the pre vious sale and $12,000 above the low point h it in M ay of this year. So, for the present, m ore o p tim ism prevails in stock m a rk e t circles— but the m a rket is a sen sitive one and the threat of our entrance into a shooting w ar hangs over it at all tim es. D espite th e reappearance of inflation ta lk and in th e face of risin g G overn m en t deficits, th e m ark et for T reasu ry issues w as stro n g th ro u g h o u t July. W hen we w rote our article for last m o n th’s issue of th e N o r t h w e s t e r n B a n k e r , th e long te rm T reasu ry 2% ’s of 1965 w ere bid 111.17—th is m orning th e bid is 111.22—gettin g back up aro u n d th e old highs. T he new ta x able 2%’s of 1958 have had a m ost su b stan tial rise—last m o n th quoted a t 103.31—today a t 105.3 on th e bid side. As m entioned previously, m uch of th is m a rk et stre n g th is doubtless based on th e assum ption th a t th e volum e of new offerings by th e T reasu ry w ill be sm aller th a n an ticipated—due to in creased sales of Defense Bonds and th e expected sales of th e new ta x a n ticipation notes. The T reasu ry m ade no new offering in Ju ly —none is expected in A ugust. The Com m odity Credit C orporation offered $400,000,000 1%% notes due F e b ru a ry 15, 1945. This issue w as heavily over-subscribed, th e allo tm ent w as b u t 4%—th e presen t bid is 100.26 or a rise of about % of a point. M unicipals continued stron g in July and at the end of the m onth there w ere no large blocks of unsold bonds overhan gin g the m arket. H igh grade corporate bonds rem ained firm and here and there in th e second grade list gain s wTere recorded. L aclede Gas 5 %’s at 79% in y esterd a y ’s m arket w ere 8% points h igh er than a m onth ago—W abash 4%’s of 78 at 15% w ere up tw o and one-half points. A ll W abash issu es w ere strong. The corporate m arket, how ever, was inactive during the m onth. A bout the only issue of any size w hich was offered was $15,000,000 of R em in g to n R and 3%% debentures due in 1956. These bonds, priced at 103%, w ere not too enthusiastically received— and as w e w rite this there are bonds avail able at the offering price. Only a few issues are scheduled for A u g u st— the usual dog days of the m arket. The W isconsin P ow er and L ig h t C om pany is planning a $30,000,000 first m ortgage issue w hich m a y be offered in A ugust. Safew ay Stores also m a y do som e re financing. The Peoples Gas L ig h t and Coke C om pany also is retiring its $15,000,000 of 4’s of 1981 and its $22,000,000 4’s of ’61 through a refu n d ing deal at a low er coupon— all to be ta ken by five insurance companies. This p re tty w ell covers the m eager new s in the corporate bond field— except to m en tio n th a t the railroads are still buying cars and equipm ent tru st issues are offered fro m tim e to time. W ith w ar orders pouring out of W ashington a t a ra te com petitive to Senate oratory, we find business in dices and em ploym ent of labor a t peaks n ot seen in m any years. T here w ill be m any sh arp changes, how ever, in th e n ear fu tu re w hich m ay a lte r th e p icture m aterially. Industries, such as m otors, refrig erato rs, office equipm ent, and th e like, are on th e list of OPACS for sh arp cuts in p ro duction rates. W hile in tim e these in d u stries can be tooled up for de fense production th ere w ill be a period of lag—probably six m onths, a t least. The unem ploym ent created w ill be a problem —and a tough one if living costs rise w hile no pay envelopes come in. T hus we face a situ atio n w here large backlogs of orders can n ot be quickly converted into th e finished products— a period in w hich corporate profits are a p t to suffer. Those w ho have an in te re st in securities of com panies w hich come in th is classification—and m ost do—should tem p er enthusiasm w ith th is thought. Iowa Investment Bankers Field Day M em bers of th e Iow a In v estm en t B ankers A ssociation have ten tativ ely set th e date of W ednesday, Septem ber 10th, for its an n u al F ield Day. This date is th e closing day of th e an n u al m eeting of th e Iow a B ankers AssociaN orthw estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19bl 26 W h a t Their Statements Show Figures Reported by New York, Chicago and St. Louis Banks According to Their Statements of June 30, 1941 TOW N BANK C h ic a g o ..................... A m e ric a n N a tio n a l B a n k ......................... C h ic a g o .....................C ity N a tio n a l B a n k a n d T r u s t C o . . . C h ic a g o .................... C o n tin e n ta l- I llin o is N a t i o n a l ................ C h ic a g o .....................D ro v e rs N a t i o n a l ......................................... C h ic a g o .....................F i r s t N a tio n a l .............................................. C h ic a g o .....................L iv e S to c k N a t i o n a l .................................. C h ic a g o .................... N o r th e r n T r u s t C o m p a n y ......................... K a n s a s C it y ...........N a tio n a l B a n k o f ......................................... N e w Y o r k .............. C o m m e rc e T r u s t C o m p a n y ....................... N ew Y o r k ................ C e n tr a l H a n o v e r B a n k & T r u s t .......... N ew Y o r k .............. C h a s e N a tio n a l ............................................ N e w Y o r k ...............G u a r a n ty T r u s t C o....................................... N e w Y o r k ................ M a n u f a c tu r e r s T r u s t ............................... N e w Y o r k ...............P u b lic N a tio n a l B a n k ................................ P h ila d e lp h i a ...........P h ila d e lp h ia N a t i o n a l ................................ S t. L o u i s ...................F i r s t N a tio n a l ............................................. G E N E R AL S u r p lu s a n d C a p ita l P r o f its 1,600,000 $ 2,644,982 4.00 0 . 000 3,807,289 50.000. 000 59,904,536 450,000 590,996 30.000. 000 43,948,933 1.000. 000 1,629,949 3.000. 000 11,017,554 6.000. 000 6,888,338 2 1 . 0 0 0 . 000 75,642,735 100,270,000 137,453,100 4.00 0 . 000 4,531,221 90.000. 000 187,600,863 41,591,220 40,986,644 7.000. 000 10,758,293 14.000. 000 31,089,053 10 , 200,000 9,387,148 $ JV j MOT OR S ACCEPTANCE CORPORAT I ON T is engaged primarily in facilitating wholesale distribution and retail sales of the following products of General Motors Corporation and its world-wide affiliates: CADILLAC, BUICK, OLDSMOBILE, PONTIAC, CHEVROLET automobiles; fr i g i d a i r e appliances for refrigeration and air conditioning; d e l c o lighting, power and heating equipment; g m c trucks; Be d f o r d , v a u x h a l l and other foreign made automotive vehicles. The business consists of investments in selfdiquidating credits, widely diversified as to region and enterprise, capital employed being in excess o f $80,000,000. In obtaining short term accommodation, g m a c issues one standard form of note. This obligation it offers to banks and institutions, in convenient maturities and denominations at current discount rates. GENERAL MOTORS INSTALMENT P L A N These notes are available, in limited amounts, upon request. EXECUTIVE OFFICE NEW YORK N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BRANCHES IN PRINCIPAL CITIES August 19 hi L oans and D is c o u n ts $ 25,024,268 49,028,153 248,168,150 4,652,750 354,132,748 5,791,956 53,945,973 45,181,723 204,181,966 773,392,278 30,368,995 498,674,894 265,145,759 81,949,677 100,515,199 66,729,123 Bonds and S e c u r itie s $ 30,296,826 51,785,501 860,766,561 5,938,482 526,540,806 4,204,692 217,508,939 90,485,279 488,033,315 1,723,201,697 21,944,228 1,261,883,028 415,390,600 55,869,499 239,200,875 98,732,337 C a s h a n d D ue F ro m B a n k s $ 33,658,401 88,618,965 613,604,317 2,605,405 447,255,627 20,275,913 161,127,660 83,528,534 736,514,822 1,311,004,575 34,776,398 962,197,492 338,701,838 51,527,394 349,835,246 14^4,744,116 $ D e p o s its 83,745,913 180,963,896 1,609,637,608 12,012,463 1,261,276,006 28,184,515 409,666,153 209,286,887 1,345,706,309 3,615,427,528 77,931,770 2,434,203,362 949,477,244 170,701,011 641,682,042 292,519,267 tion, w hose session concludes at noon on th e 10th. Definite announcem ent of th e place th e F ield Day w ill be held has not been made, b u t it is presum ed the W akonda Club, Des Moines. Com m ittees nam ed for th e F ield Day are as follows: A rran g em en ts — W infield Jackley and George P eterson. In v itatio n s — A rth u r Keyes and Jam es Cummins. L o ttery —S herm an F ow ler and J u lian W hite. E n te rta in m e n t — F ra n k W arden, K enneth H enkle and W infield Jackley. Golf and T ennis — Ira Allen, Ted H enderson and Don Gordon. R efreshm ents—Jam es Shaw, R obert M cCrary and Owen M cDermott. P rizes—H a rry Graefe, K enneth H en kle and C harles M arcellus. To Bond Department G u aranty T ru st Com pany of New Y ork announces th e tra n sfe r of Rob e rt H. Craft, second vice presid en t to the U nited States G overnm ent Bond D epartm ent. T his d ep artm en t w ill be u n d er the jo in t supervision of M essrs. C raft and A rth u r H. Kiendl, second vice presidents. Semi-Annual Dividend T he reg u lar $4 sem i-annual dividend on th e com m on stock of th e A m erican N ational B ank and T ru st Com pany of Chicago w as voted a t th e m eeting of the b a n k ’s board of directors held last m onth. A sim ilar dividend w as de clared in Ja n u a ry , placing th e bank stock on an $8 an n u al dividend basis, an increase from th e $6 an n u al rate m aintained for several y ears p re viously. T he dividend w as declared out of th e b a n k ’s earnings for the first six m onths of 1941, being payable $2.00 on Ju ly 15th to stockholders of rec ord Ju ly 14th and $2.00 on October 15th to stockholders of record Octo b er 14th. 27 Seventy-one Years Jo h n F. Flaacke, a ssista n t secretary of Chem ical B ank & T ru s t Com pany, last m o n th began his 71st y e a r of con tin u o u s service w ith th e bank. In p o in t of service, he is th e dean of New Y ork b an k ers and as fa r as is know n, for len g th of continuous service w ith one in stitu tio n he holds th e record for th e en tire country. Mr. F laacke w as b o rn in N ew Y ork City on A ugust 22, 1855. He en tered th e b a n k ’s em ploy on Ju ly 12, 1871, d u rin g th e p residency of Jo h n Quen tin Jones, and has served u n d e r seven of th e ten p resid en ts w hich th e b an k has had in its 118 y e a rs of existence. Mr. F laacke w as one of th e organiz ers of th e B ank C lerk’s B uilding & Loan C om pany in 1890 an d w as also active in organizing th e New York C hapter of th e A m erican In stitu te of B anking, of w hich he w as th e first tre a su re r. He is a m em ber of th e Bliz zard M en’s Club an d th e Society of Old B rooklynites. A dm itted to the b ar in 1903, he w as a m em ber of th e law firm of Clark, C arr & E llis from 1921 to 1940, w hen he w as elected head of C olum bian Carbon Company. Mr. C arr is also presid en t of th e S o u th ern C arbon Company, th e South e rn Gas L ine Inc., and Celotexo Corpo ration, and a d irector of m any com pa nies, including In te rsta te N atu ral Gas Com pany, M ississippi R iver F u el Cor poration, N atu ral Gas Pipeline Com p any of Am erica, Texom a N atu ral Gas Com pany, M agnetic P igm ent Com pany, F red erick H. Levey Company, Inc., and D. A ppleton-C entury Com pany. Average Profits Profits before dividends of all in sured com m ercial ban ks th ro u g h o u t the natio n averaged 64 cents p er $100 of deposits du rin g 1940, according to a su rv ey of earnings and expenses of in sured banks com piled by th e B ank M anagem ent Commission of the A m er ican B ankers Association. The survey, w hich is prep ared a n n u ally by th e Commission, reveals a de crease in profits before dividends of 8 cents p er $100 of deposits from 1939, and an increase of 4 cents p er $100 of deposits over th e 1938 figures. Profits before dividends for th e in- Named Board Chairman F re d e ric k E. H asler, for th e p ast ten years ch airm an of th e executive com m ittee of T he C ontinental B ank & T ru s t Com pany, has been elevated to the ch airm an sh ip of th e board of di recto rs by action of th e board. Mr. H asler w as b o rn in W esterfield, Essex, E ngland. He cam e to th e U nited S tates at th e tu r n of th e cen tu ry and e n te re d th e ship b rokerage firm of J. H. W in ch ester & Company. A fter th re e y e a rs w ith th a t firm, he becam e m an ag er of th e A m erican Sm elters S team ship Com pany. Two y ears a fte r th a t, he w as m ade a ssist a n t to th e p resid en t of th e Chesepeake & Ohio Coal & Coke Company. In 1909, Mr. H asler, w ith his b ro th er, form ed th e firm of H asler B rothers, steam sh ip ow ners and m e rc h a n t b a n k ers, now kn o w n as H asler and Com pany. L a te r he w as associated w ith th e B ank of A m erica as vice president. H e also served as p resid en t of th e In te rn a tio n a l T ru st C om pany w hich w as acquired by The C ontinental B ank of New Y ork in 1931, a t w hich tim e Mr. H asler becam e ch airm an of th e execu tive com m ittee and a d irecto r of th a t bank, w hich is now The C ontinental B ank & T ru s t C om pany of N ew York. h e h o r s e and mule were used to plow and cultivate most of the land in this country only a few years ago. Agriculture was a large industry then but, not until tractor and truck took up where old dobbin left off and, with other machinery, increased the output of human hands, did farming become the Big Business it is today. T Thousands of investors, in cities far removed from individual farm operations, are taking the opportunity to place their funds in securi ties backed by progressive agriculture. They do this by purchasing consolidated debentures of the Federal intermediate credit banks. These obligations are eligible as security for all fiduciary, trust and public funds held under authority of the Federal government and, regardless of maturity, for loans to Federal Reserve member banks. New Director H a rry E. W ard, p resid en t of Irv in g T ru s t Com pany, has an nounced th e election of Reid L. Carr, p resid en t of Colum bian C arbon Com pany, to th e Irv in g ’s board of directors. Mr. C arr w as b orn in Cornw all, V er m ont, and is a g ra d u a te of M iddlebury College and N ew Y ork L aw School. THE 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 S SPRINGFIELD, MASS. LOUISVILLE, KY. ST. PAUL, M IN N . HOUSTON, TEX. BALTIMORE, MD. N EW ORLEANS, LA. OMAHA, N EB. BERKELEY, CAL. COLUMBIA, S. C. ST. LOUIS, MO. WICHITA, KAN. SPOKANE, WASH. further information regarding the Debentures may be obtained from CHARLES R. D U N N , Fiscal Agent 31 Nassau Street, New York, N. Y. N orthw estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19-4-1 28 sured b anks by states ran g ed from $1.37 p er $100 of deposits for th e in sured b anks of O klahom a to 31 cents in Maine. E arn in g s from c u rre n t operations before deduction of expenses of th e n atio n ’s in su red b an k s averaged $2.58 per $100 of deposits. T hese earn in g s rang ed from $4.90 in both N o rth an d South D akota to $1.75 in N ew Y ork state. C u rren t operatin g expenses averaged $1.81 p er $100 of deposits for all in sured com m ercial banks. T he hig h est average of o p eratin g expense w as $3.63, in cu rred by th e b an k s of W est V irginia and th e low est average w as $1.20, w hich w as in cu rred by th e banks of N ew Y ork state. R ecoveries and profits on securities sold by in su red com m ercial banks in th e various states ranged from $1.21 p er $100 of deposits for th e banks in N ebraska to 9 cents for N evada’s banks, and the national average w as 55 cents. Losses on loans and securi ties, and all o th er charge offs averaged 68 cents per $100 of deposits am ong all in su red com m ercial banks, vary in g from $1.46 per $100 of deposits in M aine to 26 cents in Nevada. D eduction of c u rre n t operating ex R ailroad M unicipal Stock Retired Public U tility In dustrial A.GALLYNandCOMPANY In corp orated 100 W est Monroe Street, Chicago N ew York M ilw aukee Omaha W aterloo Doston D es Moines Cedar Rapids F H A TITLE II LOANS B ■ ■ Iow a Banks W elco m ed A s O riginating Brokers a a a Insured Loans P u rchased At P revailin g Premium B U B M o rtg a g e In v estm en t Corporation An Approved FHA Mortgagee 1021 Fleming Bldg., Des Moines, Iowa N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis New Director At a m eeting of th e board of direc tors of M anufacturers T ru st Company, A lbert N. W illiam s, p resid en t of the W estern U nion T elegraph Company, was elected a d irecto r of th e bank. Mr. W illiam s w as elected p resident of th e W estern U nion T elegraph Com pany ju st recently. P rio r to th at, he was p resid en t of th e L ehigh Valley R ailroad and w as regarded as one of the o u tstan d in g m en in th e railroad field. Mr. W illiam s w as born in Denver, Colorado, 53 years ago and w as grad u ated from th e Sheffield Scientific School of Yale U n iversity in 1910. P ractically his en tire business career, up to th e tim e he becam e presid en t of W estern Union, w as spent in th e ra il road field. BONDS R ep resen tatives: pense, losses, charge offs and dividends from c u rre n t earnings and recoveries left a n et profit of 26 cents p er $100 of deposits for all insured com m ercial banks. These figures ranged from a n et profit of 94 cents for th e banks of South D akota to a n et loss of 5 cents for th e banks of Maine. A ugust 19M W alter K asten, presid en t of th e F irst W isconsin N ational Bank, announces th a t a t a m eeting of the board of di rectors on Ju ly 24th, it w as voted to retire all of th e b a n k ’s o u tstanding p referred stock, nam ely $7,500,000, p resen tly held by th e R econstruction F inance C orporation. In paying back th is sum to th e gov e rn m en t agency, th e b ank w ipes out w h at is left of th e original issue of $10,000,000. T he directors also voted to tra n sfe r $2,500,000 from undivided profits to com m on capital account, th u s m aking th e com m on capital, w hich will be th e only stock outstanding, $10,000, 000. T hey also voted to tra n sfe r $1,000,000 to su rp lu s account, increasing th a t account from $3,000,000 to $4,000,000. LaMonte Celebrates 70th Year The 70th an n iv ersary of th e found ing of George La M onte and Son, N utley, New Jersey, m a n u factu rers of safety papers, w as celebrated recently. A flag raisin g w as held at th e plant w ith ap p ro p riate cerem onies conducted by th e A m erican Legion and V eterans of F oreign W ars. George V. La Monte, presid en t of th e organization, ad dressed th e 300 assem bled employes. R ep resen tativ es from th e com pany’s b ran ch offices in New York, Cleveland, Chicago, St. Louis, K ansas City, San Francisco and A tlan ta and officers of 29 m onths of 1940. M arch foreclosures num bered 5,683, or 15 per cent m ore th a n th e sh o rt m onth of F eb ru ary w hen th e nu m b er w as 4,950. The M arch foreclosures, how ever, w ere 11 p er cent few er th a n M arch, 1940, w hen th ere w ere 6,379 hom es lost th ro u g h foreclosure. In th e first th ree m onths of this y ear th e foreclosure ra te w as 3.4 cases per 1,000 dwellings. C ooperating in th is m o n th ly survey by th e B oard’s D ivision of R esearch and S tatistics are sheriffs, county clerks, court clerks, county recorders and other local offi cials in 1,800 com m unities. THE F la g ra is in g a t L a M onte 70th a n n iv e rs a ry c e le b ra tio n a t N u tle y , N ew Je rs e y George La M onte and Son, L im ited of Toronto, Canada, atten d ed a three-day m eeting a t th e plant. A golf to u rn a m en t w as held a t the Y ountakah Coun try Club, followed by a d in n er w hich w as atten d ed by officers, directors, heads of d ep artm en ts, sales re p re se n tativ es and all em ployes w ho have been w ith th e com pany 25 y ears or m ore. H andsom e gold w atches w ere presen ted to each of th e 23 em ployes w ho have served th e com pany for m ore th a n a q u a rte r of a century. The business w as begun in 1871 w hen George La Monte, g ra n d fa th e r of th e p re se n t president, obtained his first p a te n ts on safety pap er for the protection of checks, d rafts and o th er negotiable in stru m en ts. It w as tru ly a pro d u ct b o rn of a n a tio n ’s need, for a t th a t tim e A m erica’s b an k s and b u si ness houses w ere suffering serious losses th ro u g h “check raisin g .” The m enace w as so alarm in g as to th re a te n th e developm ent of th e checking sys tem w hich w as to play so im p o rtan t a p a rt in th e g ro w th of A m erican in d u s try. F ro m th e sta rt, b a n k ers found th is protective pap er invaluable for th e prev en tio n of check fraud, and its spe cial ad v antages soon aroused th e in te re st of o th er types of business. It w as n a tu ra l th a t corporations, large and sm all, should soon avail th e m selves of th e protectiv e featu res a f forded by th is un iq u e p ro d u ct for th e ir rem ittan ce form s and pay checks. All in terlin e tickets issued by th e railro ad s in th e U nited States, Canada and Mexico are now p rin te d on La M onte Safety P aper, as w ell as a ir line and bus tickets, autom obile re g is tra tio n and d riv ers’ licenses, m oney or ders, identification cards and other form s w here it is im p o rtan t to p rev en t alteratio n and counterfeiting. La M onte Safety P apers are know n and used in E urope, A ustralia, New Z ealand and th e O rient—Cuba, South and C entral A m erica and in th e v a ri ous possessions and te rrito rie s of the U nited States. T hrough co n stant research, experi m en tatio n and im provem ents in for m ulae and m an u factu rin g m ethods, La M onte Safety P ap ers have kep t pace w ith increasing dem ands for protec tion and have been bro u g h t to th e ir p resen t high stan d ard s of efficiency. George La Monte, th e founder of the com pany, w as its first president and w as succeeded by his son, George M. La Monte, w ho served u n til his death in 1927, w hen George V. La Monte be cam e president. George V. La Monte, Jr., is now in th e em ploy of th e com p any and his son, th e fifth George La M onte, w as born in May of th is year. O ther officers of th e com pany are: M. L. H aggerty, vice president; A lbert E. Howe, treasu rer; Joseph Sylvander, secretary. P u b l ic <ATIO A A L B ank AND TRUST COMPANY OF NEW YORK S e r v i c e — M ain tain in g an intimate, personalized corre spondent bank service. Experience— Officials with years of service in this field, assuring a knowledge of re quirements and valuable as sistance. Policy — To cooperate with out-of-town banks rather than compete for business which is rightfully theirs. Foreclosures F oreclosures in u rb an areas in the first q u a rte r of 1941 w ere 14 per cent below th e n u m ber in th e sam e period last year, it w as rep orted by econo m ists of the F ederal Home Loan B ank Board. All types of m ortgage lenders th ro u g h o u t th e nation reported 16,107 non-farm real estate foreclosures in Ja n u ary , F e b ru a ry and M arch as com pared w ith 18,680 in th e first th ree ESTABLISHED 1908 MEMBER NEW YORK CLEARING HOUSE ASSOCIATION FEDERAL DEPOSIT INSURANCE CORPORATION Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19M https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 31 Petersburg Banker Dies E rn e st Hall, 68, of P etersb u rg , re tired Boone county ran cher, b an k er and business m an, died in a Lincoln hospital recently afte r a lingering ill ness. Hall, born in Cass county in 1873, had operated since 1900 an 8,000-acre ranch, and since 1934 had been p resi dent of th e P etersb u rg S tate Bank. NEBRASKA NEWS C A R L D. GANZ P r e s id e n t A lvo Leaves Avoca Bank WM. B. H U G H ES S e c r e ta r y O m ah a New Assistant Cashier Becomes Bank Examiner A t a m eeting of th e b oard of d irec to rs of th e F irs t S tate B ank of B eaver City, held last m onth, L. A. B ottrell, assista n t cashier of th e F a rm e rs and M erchants B ank of Edison, w as u n a n i m ously elected a ssista n t cashier a t B eaver City, to succeed W. S. Bowen. W illis Bowen, form erly of O rchard and for y ears connected w ith th e old Citizens State Bank, has been g ran ted a position w ith th e state as b an k ex am iner. F o r th e p ast five y ears he has been a ssistan t cashier of th e F irs t N a tional B ank at B eaver City. Oscar Z im m erer, assistan t cashier of th e F a rm e rs State B ank of Avoca, has resigned to accept a position w ith the A m erican R eserve Life In surance Company. Mr. Z im m erer h ad been connected w ith th e b ank for 14 years. Install " P A Y C " Plan It w as announced recently th a t both Falls City, N ebraska, banks, the F irst N ational B ank and th e R ichardson W h a t N ebraska Statements Show JU N E 30, 1941 The N orth w estern B an ker is pleased to p u blish B ank 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. TOW N BANK C A S H IE R C a p ita l A lli a n c e .................,. A lli a n c e N a tio n a l ............................ $ 75,000 A lli a n c e ................... .G u a rd ia n S t a t e ................................. 125,000 B e a tr ic e .............. . . .B e a tr ic e N a t i o n a l .............................. 100,000 B r u n i n g ................ . .B ru n in g S t a t e ..................................... 25,000 C la r k s o n .............. . . C la rk s o n B a n k ................................. 40,000 100,000 C o lu m b u s ............ . . C e n t r a l N a tio n a l ............................ 30,000 C r a w f o r d .............. . .C ra w fo rd S t a t e ............................................E . R . S p r a y ............... F a i r b u r y .............. . . F i r s t N a ti o n a l ................................... 150,000 F a i r m o n t .............. , . .F a r m e r s S t a t e ................................... 25,000 F r e m o n t .............. . . S te p h e n s N a tio n a l ..................... .... ___ J . G. E d lo f f .................... 100,000 50,000 G o rd o n ................... . .F ir s t N a ti o n a l ................................... 100,000 G r a n d I s l a n d . . . , .C o m m e rc ia l N a ti o n a l ................... 200,000 G r a n d I s l a n d . . . . . F i r s t N a tio n a l . ................................ 75,000 G r a n d I s l a n d . . . ..O v e r la n d N a tio n a l .......................... 25,000 H a r t i n g t o n _____ . .B a n k o f ................................................ ___ E . M . H o a r .................... 100,000 H a s t i n g s . . . . . . . . . C ity N a ti o n a l . .................................. 125,000 . . . . C h a s. E . D e e ts ............ H a s t i n g s ......... . . . H a s tin g s N a ti o n a l .......................... 40,000 H e b r o n ..................., . T h a y e r C o u n ty ................................. ___ H . R. K ill in g e r ............. 75,000 K e a r n e y . . . . . . . . . F o r t K e a rn e y S t a t e . . . . . . . . . . . . . . . . J o h n M . S p e a r ............ 15,000 T . B. C o le ..................... K e y s to n e .............. . .B a n k o f ................................................. 10,000 K r a m e r ................. . . F a r m e r s S t a t e ..................................... 628,000 L i n c o ln ................ ..C o n t i n e n t a l N a t i o n a l ..................... 1,000,000 L i n c o ln ................ . . F ir s t N a t i o n a l ..................................... 350,000 . B. G. C l a r k ................ L i n c o ln ................ . . N a tio n a l B a n k o f C o m m erce . . . . 25,000 75,000 M c C o o k ................. . . F i r s t N a t i o n a l ..................................... ___ H . M . K r o g h .................. 25,000 M o r r i l l .................. . .F ir s t N a t i o n a l ..................................... 50,000 N e b r a s k a C i t y . . . .F a r m e r s B a n k ..................................... 50,000 N e b r a s k a C ity . . . .O to e C o u n ty N a t i o n a l ..................... 100,000 , . De L a y N a ti o n a l. .......................... 100,000 N o r f o lk . ............... .. N a t i o n a l B a n k o f ............................ ___ L . W . R o s s .................... 100,000 N o r th P l a t t e ___ . . F i r s t N a tio n a l ................................. . 100,000 N o r th P l a t t e . . . , ,. M cD o n ald S t a t e . . . . . . . . . . . . . . . 1,500,000 O m a h a ................... . .F i r s t N a ti o n a l ................................... 500,000 O m a h a ................... ..L i v e S to c k N a t i o n a l ................ .. 25,000 . . R. H . H a l l ................... O m a h a ................... ..N o r t h S id e ............................................ 2,000,000 O m a h a ................... . O m a h a N a ti o n a l .............................. 200,000 . .P a c k e rs N a ti o n a l .............. 500,000 O m a h a ................... ..S to c k Y a rd s N a t i o n a l .............. .. 1,100,000 O m a h a ................... . .U n ite d S ta t e s N a t i o n a l ................. 50,000 P a li s a d e ................ . F r e n c h m a n V a ll e y ............................ . . . . A . J . B a x t e r ................ 50,000 50,000 P l a t t s m o u t h . . . . . .P la t ts m o u th S t a t e .......................... 50,000 S c o tt s b l u f f .......... ..F i r s t S t a t e ............................................ . . . . J o h n B r o a d h u r s t . . . . 100,000 S c o tt s b l u f f ............ . S c o tts b lu ff N a t i o n a l ........................ ___ J . L . W i t t e r s ............... 60,000 S id n e y ................... . .A m e r i c a n N a tio n a l ....................... 30.000 S p a ld i n g .............. ..S p a ld i n g C it y ........................................ . . . . M . J . D o lc e ................... 62,500 T e tk am ah . . . . . . . . .F i r s t N a tio n a l .............. .. 80,000 W a h o o ................... . . F ir s t N a t i o n a l .................................... 50,000 W i s n e r ................... . .F ir s t N a tio n a l ............................... . . 50,000 W y m o re ................ . W y m o re N a tio n a l . . . . . . . . . . . . . 150,000 Y o r k ............................F i r s t N a ti o n a l .................................... ♦ In c lu d e s c a sh a n d d u e f r o m b a n k s . S u r p lu s a n d P r o f its $ 87,865 72,873 137,304 27,990 10,874 75,827 19,743 114,911 13,053 94,075 42,915 131,935 470,669 53,919 29,640 79,036 141,530 20,144 57,895 20,773 6,087 367,168 489,699 492,495 31,238 67,125 40,410 133,731 42,847 79,765 30,826 135,787 36,444 1,200,000 764,386 32,830 2,262,434 107,289 291,227 1,090,794 11,588 16.370 112,036 25,975 153,385 33,120 29,159 75,331 76,319 52,799 14,656 218,670 L oans and D is c o u n ts $ 369,654 1,457,175 1,065,475 159,033 139,916 1,186,145 284,950 1,644,580 35,697 1,034,883 484,938 687,358 1,526,091 646,757 424,863 775,114 1,154,042 277,545 485,861 210,669 42,104 4,392,397 3,876,061 3,838,591 206,917 617,236 276,564 398,523 306,397 805,194 606,400 973,763 405,589 16,399,922 9,053,497 507,127 18,655,348 1,801,118 2,560,578 5,883,564 189,685 188,177 627,847 342,574 762,819 423,766 150,122 676,359 643,465 328,385 171,234 782,761 Bonds and S e c u ritie s $ 318,748 265,384 805,185 47,674 137,814 1,417,265 31,505 342,852 45,675 329,438 223,450 871,657 2,613,869 300,040 65,241 359,655 890,257 78,680 126,935 43,852 20,052 4,099,606 10,676,374 4,149,500 280,927* 525,381 14,100 524,291 121,900 360,584 290,363 578,140 254,402 4,684,901 3,238,354 104,912 18.744,471 380,402 2,759,410 15,437,466 31,489 322,063* 284,156 154,473 147,526 245,414 18,577 131,141 145,648 91,500 176,266 683,514 C ash a n d D ue F ro m B a n k s D e p o s its $ 1,368,825 $ 1,928,225 478,384 1,990,970 1,221,064 2,880,420 41,194 200,285 51,220 278,368 1,066,816 3,496,828 115,913 388,983 578,223 2,417,895 147,363 196,051 852,489 2,027,557 301,207 870,027 718,813 2,080,022 878,979 4,425,074 293,993 1,083,498 196,673 640,116 504,090 1,470,977 791,222 2,612,039 179,215 487,998 951,347 1,448,367 77,649 296,400 14,114 58,977 5,098,420 12,610,233 8,546,030 21,918,176 6,453,126 13,357,116 425,973 783,000 1,760,611 360,099 589,174 830,282 1,570,465 472,218 823,999 1,061,041 2,110,847 328,952 1,103,546 939,792 2,247,437 731,507 1,258,326 10,346,719 29,973,231 4,591,685 15,448,613 280,104 828,229 19,350,240 53,067,650 1,110,637 2,992,479 4,211,623 8,808.356 10,219,353 29,937,430 118,253 284,242 465,070 344,985 1,077,790 239,515 662,416 1,730,390 2,667,735 417,995 1,011,830 60,233 180,482 397,324 1,079,411 517,456 1,274,402 124,376 443,693 199,781 487,519 623,461 1,773,251 N orthw estern Ranker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August Í9M 32 • NEBRASKA NEWS b an k ers who are in terested in this “business builder.” F ree literatu re and com plete inform ation regarding “PAYC” w ill be sent to all b ankers w ho w rite to th e check book firm. County B ank, have in stalled th e “PAYC” (Pay-as-You-Check) no m in i m um -balance checking account system . Geo. R. F ro eh lich is executive vice p resid en t of th e F irs t N ational, and A. F. Schaible is p resid en t of th e R ich ardson C ounty Bank. T here are now over 100 b anks in th e m id-w est w ho are offering th e “PAYC” checking plan to th e ir custom ers, ac cording to info rm atio n received from th e U nited States Check Book Com pany, orig in ato rs of th e plan. In addi tion, th e y re p o rt th a t inquiries are being received alm ost daily from Anniversary The B ank of Dixon County, Ponca, N ebraska, recently celebrated its 60th an n iv ersary in connection w ith the “Ponca Days of ’56” celebration. The b an k w as organized and opened for business on Ju n e 25, 1881, as a p riv ate in stitu tio n by the late E. E. • H alstead, w ho operated it as such u n til 1911 w hen he took out a state ch ar ter. In 1920 th e p resen t m anagem ent purchased th e ban k and has operated it since. In Ja n u a ry of th is y ear the c h a rte r w as extended to 1991. The B ank of Dixon County is the oldest b ank in n o rth w est N ebraska and am ong th e oldest in th e state. The p resen t m anagem ent consists of C. A. K ingsbury, president, W. S. Gilman, chairm an, board; H. H. Mille, vice president; F. R. K ingsbury, cash ier; Wm. B ernard, teller, and F. A. K ingsbury, bookkeeper. Redecorate Bank AMERICAN NATIONAL BANK AND TRUST C O M P A N Y LA S A L L E S T R E E T AT W A S H I N G T O N Appointed Manager M e m b e r F e d e r a l D e p o s it In s u ra n c e C o r p o r a tio n S ta te m e n t o f C o n d itio n as o f J u n e 3 0 , 1941 RESOURCES CASH A N D U. DUE FROM B A N K S .................................................. $ 3 3 , 6 5 8 , 4 0 1 . 3 0 S. G O V E R N M E N T O B L I G A T I O N S — D l R E C T A N D F U L L Y G U A R A N T E E D ............................................................. 1 3 ,3 4 6 ,6 7 1 .4 1 1 6 , 3 5 0 ,1 55 .8 1 2 5 ,0 2 4 ,2 6 8 .5 2 1 0 8 ,0 0 0 .0 0 1 6 ,7 0 9 .5 0 1 9 1 ,9 5 1 .2 3 1 .0 0 4 7 ,4 4 9 .3 8 M U N IC IP A L A N D O T H E R M A R K E T A B L E S E C U R IT IE S LOANS A N D FEDERAL D I S C O U N T S ............................................................. R E S E R V E B A N K S T O C K ................................... C U S TO M E R S ’ L IA B IL IT Y ACCRUED IN TE R E S T ON A C C E P T A N C E S . . . R E C E I V A B L E ................................... R E A L E S T A T E O W N E D .................................................................... O T H E R A S S E T S .................................................................................. $ 8 9 ,3 4 3 ,6 0 8 .1 5 LIABILITIES C A P I T A L S T O C K — P R E F E R R E D ................................................$ C A P I T A L S T O C K — C O M M O N ....................................................... s u r p l u s - U N D IV ID E D ............................- - - - - - - - - - PREFERRED STOCK R E T IR E M E N T FUND - - 6 0 0 ,0 0 0 .0 0 1 ,0 0 0 ,0 0 0 .0 0 2 ,0 0 0 ,0 0 0 .0 0 P R O F I T S .................................................................... - - RESERVE FO R T A X E S , IN T E R E S T , C O N T IN G E N C IE S , E T C . ............................................................................................................. UNEARNED D I S C O U N T .................................................................... L IA B IL IT Y O N A C C E P T A N C E S ................................................ 6 4 4 ,9 8 2 .0 1 2 0 0 ,0 0 0 .0 0 8 1 7 ,9 4 5 .0 4 3 1 8 ,0 5 7 .8 7 1 6 ,7 0 9 .5 0 D E P O S ITS : d e m a n d ......$ 7 3 , 9 0 1 , 9 5 3 . 3 7 U N IT E D STATE S G O V E R N M E N T OTHER P U B L IC S A V I N G S .... O THER T IM E FUNDS - - - 3 ,6 0 0 ,0 0 0 .0 0 3 4 ,2 9 2 .4 0 - - - 3 0 ,0 0 0 .0 0 $ 8 9 ,3 4 3 ,6 0 8 .1 5 N orthw estern B anker A t a m eeting last m o n th of th e board of directors of th e Craig Cooperative C redit A ssociation, Dee V alder of T ekam ah w as appointed m anager of th e cooperative bank. He took over th e new duties of his Craig office th e sam e day of his appointm ent. Mr. V alder w as a clerk in th e F a rm ers State B ank in T ekam ah before th a t in stitu tio n w as consolidated w ith th e F irs t N ational B ank a n um ber of y ears ago. To Remodel Bank The S tate N ational B ank of W ayne plans to s ta rt several in terio r im prove m ents soon. The ceiling in th e b ank will be low ered to provide for a sys tem of com plete air conditioning to be installed. T he finance office w ill be moved to th e d irecto rs’ room in the n o rth w est p a rt of th e building, and th e officers w ill use th e finance office on th e east. Some o th er changes are also contem plated. Secures New Position Miss D orothy N ygaard of Om aha is em ployed a t th e Stockm en’s B ank in R ushville, tak in g th e position m ade vacant by th e resig n atio n of Mrs. W hitney. 6 ,1 7 9 ,6 6 7 .9 6 D E P O S IT S 8 3 ,7 4 5 ,9 1 3 .7 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The F irs t N ational B ank of Cedar R apids has been redecorated. The w alls w ere rep ap ered and th e wood w ork varnished. August 1941 B a n k H e lp W a n t e d M a n y a t tr a c t i v e p o s itio n s no w open from C h i c a g o to P a c i f ic C o a s t f o r p o s t i n g m a c h i n e operators, sten o g ra p h ers, te lle rs and as s is ta n t cashiers. C o untry b ank experience preferred. W r i te for ap p lic a tio n blank. T H E C H A R L E S E. W A L T E R S CO. P. O. B o x 1313, O m aha, N e b r a sk a 33 of debt in 1949, th e city of Omaha in 1951 and th e Omaha school d istrict in 1956, if no new bond issues m atu re a t a later date, W . L. Pierpont, p resi d en t of th e A ssociation of Omaha T ax payers, said after a recen t survey. Included in city bonds are $872,550 of special assessm ent bonds, m atu rin g 1942-1947, w hich become a general obligation on th e due date. Also in cluded are in tersection bonds totaling $1,507,600, m atu rin g in th e sam e pe riod. P eak year for re tire m e n t of city bonds comes in 1942. Douglas co unty’s peak is 1946. MAHA b u siness is definitely on th e upgrade, and th e prospects for th e fu tu re look equally good. W ith prin cip al b u siness indicators show ing in creases for Ju n e and th e pace equaled d u rin g th e first half of July, C ham ber of Com m erce officials predicted a y e a r su b stan tially ahead of 1940. F o r instance, Ju n e g rain receipts increased 134.1 p er cent over th e sam e m o n th in 1940, w ith g rain sh ip m en ts ju m p in g 122.3 p er cent. B ank clearings rose 25.7 p e r cent and b an k debits 20.6 p er cent. F o r th e first half of th e year, clear ings w ere up 14.6 p er cent an d debits 17.3 p er cent. A typical w eek w as th a t of Ju n e 21 w hen clearings w ere $38,582,283 com p ared w ith $29,594,195 th e sam e w eek a y e a r ago, and debits w ere $42,670,485 com pared w ith $34,506,035 the sam e w eek in 1940. O F ollow ing th is tren d , th e Ju n e 30 b an k call figures revealed th a t both Om aha b an k deposits and loans w ere alm ost $16,000,000 ahead of a y e a r ago. H ere w ere th e totals: D eposits, Ju n e 30, 1941, $142,959,519; Ju n e 30, 1940, $127,086,784. Loans, Ju n e 30, 1941, $55,998,404; Ju n e 30, 1940 $40,819,199. T he steady increase in loans w as a t trib u te d to gen erally im proving b u si ness and to th e dem and for m oney to finance fu tu re business expansion. F ig u res, as of Ju n e 30, 1941, for in dividual banks: YO UR STATE BANKERS ASSO CIA TIO N O FFIC IA L SA FE, V A U L T A N D TIM ELOCK EXPERTS F. E. DAVENPORT & CO. D eposits Loans O m aha N ational $53,067,650 $18,656,375 F irs t N ational 29,973,231 16,399,922 5,883,564 U. S. N ational 29,937,430 Live Stock Nat. 15,448,613 9,053,497 Stock Y ards Nat. 8,379,863 2,595,427 P ack ers Nat. 2,992,378 1,786,086 Douglas Co. Bk. 1,431,413 641,204 So. Om aha Sav. 900,712 475,202 N o rth Side Bk. 828,229 507,127 D ouglas county, of w hich Om aha is th e county seat, w ill be en tirely free T he F ederal Land B ank of Omaha received th e th ird largest benefit pay m en t in th e nation as a re su lt of com pliance w ith m ajor phases in th e 1939 crop control program , it w as reported in W ashington recently. The am ount received by th e land bank w as $92,963. L arg est single p aym ent w ent to the P ru d en tial Insu ran ce Company, $133,191; second larg est to th e M etropoli ta n Life In su ran ce Company, $96,332. T he Lincoln Jo in t Stock L and B ank of Lincoln, N ebraska, received $18,908. The U nited States N ational B ank of Om aha received $2,067.53, U nited States Securities Com pany of Omaha $2,159.97. W E W ILL P U R C H A SE WHEAT LOANS G o o d Service assured on all Grain and Hay Draft Collections \ L ive Stock N ational Bank Omaha (Member Federal Deposit Insurance Corporation) OMAHA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker August 19M 34 • NEBRASKA Back recen tly from B altim ore, A l vin E. Johnson, p resid en t of th e L ive stock N ational B ank of South Omaha and regional head of th e state defense housing com m ittee, said he w as in form ed by officials of th e G lenn L. M artin Com pany, w hich w ill operate, th ro u g h a subsidiary, th e big bom ber p lan t now u n d e r co n stru ctio n a t F o rt Crook, a few m iles so u th of Omaha, th a t th e p la n t ev en tu ally is expected to em ploy 16,000 m en, alth o u g h it w ill n ot be able to use n early th a t m any a t th e beginning. NEWS U nder th e w ill of Mrs. M yrtle A. C rum m er, w idow of Dr. LeRoy Crumm er, form er O m ahan, w ho died in Los Angeles Ju n e 9, L aw ren ce Brinker, Om aha in v estm en t banker, who w as h e r financial adviser, received $10,000. H er estate w as estim ated at about $150,000. A fter a n um ber of o th er bequests to relatives and friends the residue is left to a niece, Mrs. L uella M. Riley of Los Angeles. Mrs. C rum m er’s F ilipino chauffeur w as be q ueathed $1,000. 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 Co m p a n y NEW YORK Statement of Condition at Close of Business June 30, 19 4 1 • Twenty-five L incoln business and civic leaders w ere hosts to a like n u m b er of Omaha m en a t a picnic on th e banks of th e P latte riv e r near A sh land, N ebraska, recently. T. B. Strain, Lincoln banker, or ganized the get-together, a so rt of re tu rn engagem ent for a p a rty O m ahans gave for L incolnites a y ear or so ago. A fter a d in n er featu rin g N ebraska steaks and corn on th e cob, George H olm es, L incoln banker, spoke. G overnor D w ight G risw old of Ne b rask a w as a guest. W illiam Saw tell, presid en t of th e Stock Y ards N ational B ank of South Omaha, responded for the Om ahans. A p aym ent of $150,000 on indebted ness of th e Ak-Sar-Ben (Douglas street) bridge betw een Omaha and Council Bluffs w as m ade Ju ly 1, the th ird an n iv ersary of purchase of the span by Ak-Sar-Ben, Omaha civic or ganization. T his m ade a total of $600,000 paid since th e bridge w as acquired by Ak-Sar-Ben, reducing th e am o u n t of o u tstanding bonds to $1,750,000. T ru s tees an ticipated a fu rth e r su b stan tial paym ent a t th e end of this year. T he Ju ly 1 p aym ent reduced in te r est charges by $6,000 a year. ASSETS Cash and Due from B a n k s ....................................... $ 7 3 6 , 5 1 4 , 8 2 2 . 1 4 U. S. Government Securities..........................................4 2 6 , 9 2 2 , 3 5 6 . 2 1 State and Municipal S e c u r i t i e s ........................... 3 4 ,5 7 1,2 13 .13 Other S e c u r i t i e s ...................................................... 2 6 ,5 3 9 ,7 4 6 .5 2 2 ,4 3 0 ,0 0 0 .0 0 Stock in Federal Reserve B a n k ........................... Loans and Bills P u r c h a s e d .......................................... 1 9 7 , 4 2 4 , 2 3 7 . 7 1 Real Estate Mortgages............................................... 6 ,757,729 .22 Banking H o u s e s ...................................................... 14,76 9,010 .00 Other Real E s t a t e ...................................................... 1 , 0 5 5 , 6 0 2 .7 3 Interest A c c r u e d ...................................................... 1,50 4 ,9 41.78 Customers’ Liability Account of Acceptances . 1,8 17,56 4 .9 4 Total $ 1 , 4 5 0 , 3 0 7 , 2 2 4 . 3 8 L IA 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 ..........................................6 0,000,000 .00 Undivided Profits . . . 1 5 , 6 4 2 , 7 3 5 .6 0 $96,6 4 2,735.60 Reserve for Taxes, Interest Accrued, etc......................................... 4 ,9 0 0 ,7 5 9 .0 5 Dividend Payable July 1, 1 9 4 1 ...................................................... Acceptances................................................................... 1,0 5 0 ,0 0 0 .0 0 2 ,0 0 7 ,4 2 0 .3 7 Deposits.............................................................................. U 345 >7 ° 6 »3 ° 9 - 3 6 Total $ 1 , 4 5 0 , 3 0 7 , 2 2 4 . 3 8 There are pledged to secure public monies and to qualify for fiduciary powers U. S. Government S e c u r i t i e s .......................................... M em b er F ed eral D e p o sit In s u ra n c e C o rp o ra tio n Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1941 $ 8, 4 7 1 , 886.25 U niversity of Om aha reg en ts re elected W . D ale Clark p resid en t a t a reorganization m eeting recently. Mr. Clark is p resid en t of th e Omaha N a tional Bank. O ther officers also w ere re-elected. More th a n $300,000 in defense bonds and m ore th a n $15,000 in defense stam ps w ere sold th ro u g h th e Omaha postoffice in th e first tw o m onths since the sale opened May 1. The figures did not include sales m ade th ro u g h Om aha banks and o th er business in stitutions. V acation-bound before A ugust 1 w ere Mr. and Mrs. R ay R. R idge, w ho headed for N o rth ern Pine Lodge, M innesota, w here th ey have sp en t the last four seasons. Mr. Ridge is a vice presid en t of th e O m aha N ational Bank. The 179th dividend w as declared by th e Occidental B uilding and Loan As sociation of Om aha Ju ly 1, according to Ford E. H ovey, president. Live Stock N ational B ank of South Om aha has installed com plete air-con ditioning equipm ent. Jam es R. C onnell, form er Omahan, has been elected to th e board of gover- 35 nors of th e Bond Club of N ew York. He is w ith Sterm , W am pler & Com pany, N ew Y ork in v estm en t firm. O. H. H olq u ist of th e F irs t N ational B ank of Om aha w as re-elected tre a s u re r of th e Om aha C ham ber of Com m erce good-will group, th e T ribe of Yessir, a t a recen t m eeting. C harles J. Regan, bak in g com pany official, w as nam ed Big Chief. P a tric ia M onen, d a u g h te r of Mr. an d Mrs. D an M onen, left recen tly to spend a m o n th in C alifornia v isitin g h e r g ra n d p a re n ts, Mr. an d Mrs. T. J. M onaghan, in A rcadia, an d frien d s in P asadena. Mr. M onen is vice p re si dent, tr u s t d ep artm en t, O m aha N a tional Bank. Lincoln Locals L in coln ’s six banks have had an u p IRECTO R M ARTIN of th e N ebras ka b an king d ep artm en t w as ad sw ing in business in th e last th ree vised by A ssistant A tto rn ey G eneralm onths, boosting th e to tal assets to $54,915,301 or $2,739,438 above th e fig N elson th a t he is correct in holding u re of A pril 4th, th e b an k call issued th a t th e banking d ep artm en t acquires no ju risd ictio n over sm all loan com pa by th e com ptroller of th e cu rren cy re vealed. T he call w as th e reg u lar m id nies u n til A ugust 24th, w hen th e new y ear call for th e statem en t of condition law goes into effect. U ntil th a t date Mr. M artin is w ith o u t a u th o rity to re of all banks a t th e close of business New Teller on Ju n e 30th. Miles Moore, M ason City, Iow a, be ceive applications or publish notice of application. A 6 p er cent rise in deposits in th e gan w o rk in g last m o n th as a teller in p ast th re e m onths w as p rim arily re T he new law provides th a t those th e N ational B ank of N orfolk, rep lac sponsible for th e gen eral surge. now holding licenses need secure no ing P aul Riley, w ho recen tly m oved to new a u th o rity to operate u n til M arch K ansas City. D eposits increased $2,927,174, placing 1st next, and those w ho desire to en th em over th e Decem ber 31, 1940, fig te r th e business before th e new law u re by $1,346,249. T his raised th e to Banker Elected to goes into effect m ay apply to th e sec tal assets of th e Lincoln banks $1,216,re ta ry of state, w ho still retain s ju ris 483 over th e to tal of six m onths ago. School Board S. H. Megown, cashier of th e F irs t diction. If all req u irem en ts of th e N ational B ank of M inatare, w as a p p re sen t law are com plied w ith before Alex C. Lau, 58, vice p resid en t of pointed to fill th e vacancy on th e M in A ugust 24th, th e secretary of state a ta re school board caused by th e re s m ay issue a license, as in th e past, if H. P. L au Com pany and pro m in en t in L incoln business and civic affairs all ign atio n of Lloyd G arber, w ho w as re th e applicant is pro p erly qualified. cen tly tra n s fe rre d to B illings by th e G reat W estern Sugar Com pany. A su rv ey of 35 p er cent of N ebraska banks show ed th e y m ade $58,164,285 in new loans and renew ed $52,407,023 in loans in th e second half of 1940, according to th e re search council of the A m erican B an k ers A ssociation. D A ccepts New Position Mr. L. A. Brooks, bookkeeper in th e B ank of Cody for n early tw elve years, has accepted th e position of assista n t cashier in th e A nchor B ank of Merrim an, ta k in g th e position fo rm erly held by F. O. W angerin. ” Ad-Round C o n tin en tal N a tio n a l B ank " co rre sp o n d e n t se rv ic e offers y o u m o d e rn e q u ip m en t, tra in e d New Bank Organized p e rso n n e l, a n d the lo y a lty of officers ex p eri A bank, to be know n as th e W inslow Co-Operative C redit A ssociation, has been organized a t W inslow , an d w as opened for b u siness last m onth. Offi cers are Jo h n U rban, president; H. P. B artling, vice president; te m p o rary secretary -treasu rer, C hris M artinsen; directors, C hris M artinsen, J o h n U r ban, H. P. B artling, H. H. L allm an an d F re d N iebaum . The association, w hich h as th e fo rm er W inslow S tate B ank B uilding as its place of business, is equipped to care for deposits an d act as a m edium of exchange. e n c e d in h a n d lin g y o u r Lincoln item s. C o n t in e n t a l N a t io n a l b 3 of- & LINCOLN Member Federal Deposit Insurance Corporation Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19^1 36 • NEBRASKA his life, died recen tly a fte r an illness of five weeks. Mr. L au had been a directo r of Se cu rity M utual Com pany and of the N ational B ank of Com m erce. He w as pro m in en t in th e cham ber of com m erce for y ears and served as its p re s ident, w as a p ast p resid en t of Lincoln C ountry Club, and a Mason. H is hob bies w ere golf and h u n tin g , an d he w as a m em ber of Red Deer H u n tin g Club. Follow ing th e en actm en t of a new law fixing th e legal relatio n sh ip be- NEWS tw een th e op erato r of a safe deposit v a u lt and those w ho re n t boxes, B ank ing S u p erin ten d en t M artin has draw n up a form of con tract w hich he sub m itted to A ssistan t A ttorney G eneral Kelley. The la tte r advised Mr. M artin th a t th e legislature evidently intended to create th e relatio n sh ip of landlord and ten an t, and th a t his form w ill have to be re w ritte n to give effect to th is intention. He says th e courts apply th e law of bailm ent (tru ste e ship) to these contracts, b u t it m ay be difficult in an agreem ent to cover all liabilities th a t m ay arise. “C om plete” S erv ice in S io u x City T he ra re c o m b in a tio n of fa v o ra b le lo catio n — in the Sioux C ity Stock Y a rd s— lo n g e x p e rie n c e, a n d a n • Mr. K elley also held th a t as th e lia bility is lim ited th ere is no need to carry insurance, b u t th a t to be safe a provision settin g out th a t th e bank is not an in su re r of th e contents m ight be inserted. Forma! Opening Held T he form al opening and g uest day of the F irs t N ational B ank of Ogallala was held S aturday, Ju ly 26th. F o r th e p ast tw o m onths th e bank has occupied q u a rte rs on th e second floor of the b an k building w hile re m odeling w as being done on th e first floor. All new and m odern b an k fixtures have been installed. The cage type of b an k fixture is no m ore, an d from now on p atro n s w ill be m et out in the open. C ashier H. J. G eisert and P resid en t M. D. K eller said th ey appreciated the public’s cooperation in w alking up sta irs for th e p ast tw o m onths to carry on th e ir ban k in g transactions. T hey said th ey believed th e public would be glad it h ad cooperated w h en th e new fixtures and arran g em en ts are inspected. e x te n siv e n etw o rk of c o rre sp o n d e n t b a n k s in Iow a, Directors1 Meeting N e b ra s k a , S outh D ak o ta, a n d M in n eso ta e n a b le s this The sem i-annual m eeting of th e di recto rs of th e S tate B ank of A lexan dria w as held last m onth. Follow ing th e m eeting, Mr. and Mrs. J. J. Rothm eier e n tertain ed th e directors a t a six o’clock dinner. Those p resen t w ere H. R. Jen n in g s of D avenport, Geo. A pking of Daykin, M erle Cory, Jo h n B acker and Miss Nellie Moore. L u th e r B onham of Fairb u ry w as unable to be present. b a n k to re n d e r th e v e ry b e st c o rre sp o n d e n t serv ice in Sioux City. Let u s se rv e y o u , not o n ly o n y o u r live stock a n d a g ric u ltu ra l item s, b u t o n a ll y o u r Sioux C ity tra n s actio n s. O F F IC E R S C. L . F r e d r ic k s e n , P r e s id e n t M . A . W ils o n , V ic e P r e s id e n t W . G. N e ls o n , A s s is ta n t V ic e P r e s id e n t W . C. S c h e n k , C a s h ie r H . C. L in d u s k i, A s s i s t a n t C a s h ie r C. L . A d a m s , A s s i s t a n t C a s h ie r J . S. H a v e r , A s s i s t a n t C a s h ie r D IR E C T O R S C. R . M c K e n n a , P r e s ., J o h n s o n B is c u i t Co. B. L . S iffo rd , A tto r n e y , S iffo rd & W a d d e n G. F . S i lk n i tte r , P r e s id e n t , S io u x C ity S to c k Y a r d s C o m p a n y C. L . F r e d r ic k s e n , P r e s id e n t M . A . W ils o n , V ic e P r e s id e n t H . C. B o s w e ll, S e c r e t a r y - T r e a s u r e r , W e s t e r n C o n tr a c ti n g C o r p o r a tio n Arrival Delayed A. R. K uhlm an, w hose election as a ssistan t cashier of th e F irs t N ational B ank of H ooper w as recen tly an nounced, w ill be unable to assum e his H ooper position as soon as h ad been planned. Due to th e fact th a t no suc cessor has been appointed a t th e Scrib n er Bank, Mr. K uhlm an w ill rem ain th ere u n til possibly A ugust 4th before beginning his w o rk a t th e H ooper bank. Bank Interior Improved A noticeable im provem ent has been m ade on th e in terio r a t th e Citizens S tate B ank of Paw nee City. Several w eeks ago th e grill w ork above th e cages w as cut dow n and recen tly C. R. McClure and son, Tom, have been re decorating th e interior. T he steel ceil ing has been p ainted w hite and all the w oodw ork a light buff finished in blue. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19bl 37 Bow m an as vice president. Mr. Bow m an relinquished his dual title of cashier, and R ichard B. Stevens, h ere tofore a ssistan t cashier, w as elected cashier of th e bank. Miss H elen Jones w as advanced to th e office of assistan t cashier. SOUTH DAKOTA Leaves Banking Business L. T. MORRIS President Watertown NEWS FSA Conference C harles McCumsey, Omaha, Ne braska, p resid en t of th e F ed eral L and Bank, and Jam es S tew art, R apid City, d istrict re p re se n ta tiv es for th e bank, w ere guest speak ers at a m eeting of F a rm S ecurity A d m in istratio n county councilm en in R apid City last m onth. E m il L oriks, H uron, state ch airm an of th e FSA, presided, and about 80 a t tended. M ajor purp o se w as to in stru c t new ly elected county council m em bers on phases of th e FSA program . L oriks spoke on “D isadvantaged F am ilies in A m erican A g ricu ltu re” and councilm en from v arious areas discussed w ays in w hich th e FSA can aid those fam ilies in B lack H ills counties. GEORGE M. STARRING Secretary-Treasurer Huron county b ank closed in 1935. He said th e P lan k in to n b ank “cam e th ro u g h th e b an k crisis in good shape and to day has a capital stru c tu re of $40,000” w hich includes capital, surplus, and undivided profits. Bank Officers Elected The M obridge Citizens State B ank officials elected for th e com ing year are: P au l Jones, president; Mrs. B. M. B atteen, vice president; J. D. Lesher, cashier; W alter D. Brown, of A ber deen, and David L. Bratm oe, direc tors. Mr. Jones w as recently ap p o in t ed as a m em ber of th e South D akota B anking Commission, by G overnor H. J. Bushfield. Mr. Jo n es’ appointm ent is for a th re e year term . Geo. W. Malcolm of S turgis has re signed his position w ith th e F irs t Na tional B ank of th e Black Hills. S tu r gis office, and w ill devote his full tim e to in su ran ce business. He is district rep resen tativ e for th e Policyholders’ Life In su ran ce Company. Mr. Malcolm has been engaged in th e b anking business for several years and for a n u m ber of y ears he w as associated w ith th e old B utte C ounty B ank in Belle Fourche, later going to N island w here he w as cashier of the Irrig a to r’s State Bank, a b ran ch bank of th e B utte County Bank. W hen this bank w as consolidated, he w en t to Newell as a ssistan t cashier of the R eclam ation State Bank. He rem ained in th is capacity up to th e tim e of th e purchase of th e B utte County B ank by th e F irs t N ational B ank of th e Black Hills. He later w as tra n sfe rre d to Sturgis, w here he w as em ployed at th e tim e of his resignation. Branch Bank Opened Change in Officers Banker A ccepts Chairmanship T he tw en ty -th ird b ran ch office of a state b an k w en t onto th e South Da kota rolls last m o n th w h en a bran ch office of th e F a rm e rs and M erchants S tate B ank a t P la n k in to n opened in W hite L ake w ith M. O. Oltm ans, form er S tickney b anker, as m anager. B ank S u p erin ten d en t E rlin g Haugo said W h ite Lake had been w ith o u t b an k in g service since th e A urora T he statem en t of th e Citizens Bank, V erm illion, of th e condition of th e b an k on Ju n e 30, is a source of pride to th e bank officers, as it show s a h ealth y increase over th e statem en ts of th e sam e date in previous years. A t a directors m eeting recently, two changes w ere m ade in the officers of th e bank. R ay G. Stevens continues as p resid en t of th e b ank and F. E. T. N. H ayter, vice presid en t of th e F irst N ational B ank and T ru st Com p any of Sioux Falls, has accepted the ch airm anship of a local group of the new ly organized credits for th e Can ada com m ittee w hich is u n d ertak in g a national effort to induce A m ericans to v isit Canada du rin g th e ir vacations th is year as a “practical m eans of bolstering C anada’s in tern al economy W h a t South D akota Statements Show JU N E 30, 1941 The N orth w estern B an ker 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 below it is because Y O U d id not send in your statem ent. Please do so next tim e. TOW N BANK C A S H IE R A b e r d e e n ................ A b e rd e e n N a t i o n a l ........................................C la y to n W a l k e r .......... $ C e n te r v ille ...............B r n k o f ............................................................J o h n N . T h o m s a n . . . E u r e k a ...................... E u r e k a S ta te ................................................E . F . H e r r b o l d t ........... F u l t o n ........................F u lto n S t a t e .....................................................J u liu s B e r t s c h ............. H a r t f o r d ...................C o m m u n ity B a n k ........................................ N . F . V a n V l e e t . . . . L a k e P r e s t o n ........ C o m m u n ity S ta t e ....................................... G o rd en M a x a m ........... M itc h e ll.................... C o m m e rc ia l T r u s t & S a v in g s ..............E . A . L o o m e r ............... M itc h e ll.................... M itc h e ll N a tio n a l .................................... J . N . S h e lb y .................. P i e r r e ....................... F i r s t N a tio n a l .............................................. L . L . B r a n c h .................. S io u x F a l l s ............. F ir s t N a tio n a l ..............................................N e e l W . K l a r ............. S io u x F a l l s ............. F i r s t N a tio n a l ..............................................W . E . P e r r e n o u d . . . . R a p id C it y ..............N o r th w e s t S e c u rity N a t i o n a l ................ J . V ir g il L o w e ............ W a t e r t o w n ..............F a r m e r s & M e r c h a n t s ..............................S. B. C r o th e r s ............ W a t e r t o w n ..............F i r s t C itiz e n s N a t i o n a l ........................... B e r t M o r g a n ............... Y a n k to n ...................F i r s t D a k o ta N a t i o n a l .............................. H . C. D a n f o r t h .......... C a p ita l 100,000 50,000 25,000 25,000 25,000 25,000 100,000 100,000 50,000 500,000 375,000 500,000 50,000 150,000 100,000 S u r p lu s a n d P r o f its $ 177,903 12,600 13,864 32,356 41,479 45,053 43,175 60,753 18,651 516,466 143,614 572,760 64,794 146,833 57,480 Loans and D is c o u n ts $ 771,415 271,556 139,998 193,503 305,537 198,987 729,015 782,269 224,846 5,375,689 2,972,230 5,522,819 643,608 1,178,915 649,183 B onds and S e c u r itie s $ 1,296,318 71,285 106,845 76,977 74,349 138,670 864,014 281,887 234,235 3,179,828 1,712,910 3,129,341 326,750 1,085,474 320,192 C ash a n d D ue F ro m B an k s $ 942,315 204,477 99,949 141,135 124,422 120,186 452,609 575,320 256,636 1,999,801 2,716,548 3,445,120 241,770 706,283 589,852 Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ep o sits $ 2,798,471 509,297 310,503 356,611 445,388 398,044 1,913,036 1,531,098 654,693 9,748,459 6,864,392 11,452,814 1,101,769 2,788,625 1,459,248 August 1941 38 • SOUTH by providing our n o rth e rn neighbor w ith dollars to buy arm am en ts.” Former Banker Deceased A resid en t of B rookings county for m ore th a n 30 years, H arley H illyer, age 69, died at th e M unicipal H ospital in B rookings last m onth of a th ro a t ailm ent w hich had caused an illness of m ore th a n a y e a r’s duration. Mr. H illyer had been engaged in farm ing east of B ushnell for th e p ast 20 years. P revious to th a t tim e he was active in th e ban k in g and real estate business. State Charter Granted A c h a rte r for th e first South D akota B ank to be organized w ith en tirely new capital and by new sponsors since 1938 has been g ran ted an A berdeen group w hich is p rep arin g to operate the B row n C ounty Bank, th e state banking com m ittee announced re c e n t ly. The group is ch artered for $50,000 capital and $10,000 in undivided p ro f its and surplus. It w ill becom e th e th ird b an k in A berdeen, tw o national banks already o p eratin g there. T hey DAKOTA NEWS are th e A berdeen N ational, an affiliate of th e F irs t B ank Stock C orporation, and th e F irst N ational, linked w ith th e N orthw est B ancorporation. T he new ban k ch arter w as issued to N elson R. Field, R. E. Huffm an, H. B. C lark and E lm er T hurow , all of A ber deen, and G. S. E v arts, M inneapolis. S u p erin ten d en t E rlin g H augo of the b anking d ep artm en t said a certificate of a u th o rity w ould be g ran ted as soon as capitalization w as com pleted. He said this w as expected w ith in a m onth w hen the group is to have a F ederal Deposit In su ran ce C orporation g u a r antee for depositors. The new bank brings to 127 the n um ber o perating u n d er state charter, several having changed from national to state th e p ast year. The state banks also sponsor 23 b ranch offices quali fied to carry on all b an king business but loans. G oes to Minneapolis H. L. Sm ith, a ssistan t m anager of the N ational B ank of South D akota in V erm illion, left recently to join the staff of the F irs t B ank Stock C orpora Thanks for telling me rr — T hat’s the attitude o f a large proportion o f bank custom ers w hen to ld about g e ttin g 2 0 0 c h e c k s o n N ational Safety Paper—im printed w ith their nam e and address. W ith initial orders w e also supply a fine leather cover gold-stam ped w ith custom er’s name — ail for $1.25 W R IT E for the full d etails o f our plan to promote personalized checks. A big saving for your bank! A real service for your customers! CHICAGO KANSAS CITY ST. PAUL P la n ts a t NEW YORK CLEVELAND CHECK P R I N T E R S , I NC. Lithographers a n d Printers Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 194/ • tion in M inneapolis, W. H. Jarm u th , m anager of th e bank, announced. Mr. Sm ith has been connected w ith the V erm illion b ank since 1926. His position here w ill be tak en by Jo h n T. Sanger, w ho for th e past th ree years has been cashier of th e F irs t N ational B ank of Valley City, N orth Dakota. W A G E AND HOUR PROBLEM (C ontinued from page 16) by an em ploye or a group of em ployes. A pro p er revision of operating m eth ods, looking tow ard th e elim ination of duplicated effort and unnecessary records, w ill generally solve m uch of th e overtim e problem and, w hich is equally im portant, w ill frequently produce a su b stan tial reduction in costs. Such changes m u st be w orked out in each bank, inasm uch as local trad itio n s and conditions inevitably ex ert an influence on individual bank operating m ethods. R ecent y ears have bro u g h t us m any new and vexing problem s. B ank in come has been drastically reduced th ro u g h co n stan tly decreasing in te r est rates, and we have all been com pelled to rely m ore and m ore on serv ice charges as a p a rt of our operating income. Today we are having some increased dem and for m oney, w ith a slight tendency for rates to stiffen; how ever, we are at th e sam e tim e faced w ith a co n stan tly increasing tax load, and, as nev er before, we m ust be seeking every legitim ate m eans to cu r tail our costs. Since, as I have said before, th e W age and H our Law pro vides us w ith an additional incentive, it seem s to me th a t we should u n d er take to tu rn p o tential increased cost into increased n et profit and, a t the sam e tim e, go far tow ard solving the ho u r problem . Promotions Am ong th e m id-year prom otions an nounced by M anufacturers T ru st Com pany of New York, are those of Rob e rt W. Cordon, E r r e tt D unlap, Jr., Nel son M. M cK ernan and Jo h n H. Brennen. M essrs. Cordon, D unlap and Mc K ernan have been elected a ssistan t vice presidents, and Mr. B rennen has been elected as a ssistan t secretary. These officers are affiliated w ith th e b a n k ’s out-of-town d ep artm en t and are w ell know n to M anufacturers T ru st C om pany’s correspondents in various p arts of th e U nited States. 39 M IN N E S O T A NEWS O. G. JONES President Red Wing W IL L IA M D U N C A N , J r . S e c r e ta r y M in n e a p o lis Duluth Banker Dies H e n ry S. M acGregor, 63-year-old p resid en t of th e City N ational B ank of D uluth, one of th e city ’s oldest and larg est b an k in g in stitu tio n s, died sud denly of a h e a rt a tta c k last m onth. W idely kn o w n in b an k in g circles of the n o rth w e st and active in D uluth civic activities, Mr. M acGregor headed th e City N ational B ank since Jan. 9, 1940, w hen he w as nam ed to succeed R. M. Sellwood w ho had been p resi den t since 1914. Bank Deposits Increase D eposits in th e nine banks of Brow n county have surged u p w ards $616,102.61 du rin g th e p ast year, a com para tive surv ey of th e condition of these financial in stitu tio n s reveals. T he resources of th e sam e banks in creased $665,687.44 d uring the sam e pe riod-—from Ju n e 30, 1940, to Ju n e 30, 1941—w hen calls for condition of n a tional and state banks w ere made. D uring th e p ast six m onths th e in crease in deposits have been $281,114.45 and of resources, $304,374.02. T he increase in th e resources and deposits in th e nine banks of Brow n county du rin g th e p ast year as well as th e p ast six m onths is an indication th a t th is section is on an u p w ard trend. At th e close of business th e last of Ju n e th e total resources in th e nine banks of B row n county w ere $9,225,311.12, w hile th e to tal deposits w ere $8,236,572.33. A t th e close of business D ecem ber 31, 1940, th e resources w ere $8,920,937.10 and th e deposits, $7,945,457.88. On Ju n e 30, 1940, the resources of th e nine banks w ere $8,559,623.44, w hile th e deposits w ere $7,620,469.72. W hat Minnesota Statements Show JU N E 30, 1941 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 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. TOW N BANK C A S H IE R S u r p lu s a n d P r o f its ; 1 0 ,0 0 0 3,372 100,000 10,907 50,000 32,797 75,000 67,307 100,000 60,543 25,000 22,984 25,000 28,323 30,000 66,516 35,000 57,873 75,000 33,961 60,000 27,099 100,000 146,590 10,000 28,184 25,000 17,238 10,000 3,047 100,000 59,543 600,000 353,479 2,000,000 1,448,418 400,000 261,129 411,330 1,000,000 50,000 24,582 20,000 30,163 25,000 32,183 50,000 67,887 45,000 21,216 125,000 160,581 55,442 50,000 50,000 96.640 25,000 23,473 70,399 25,000 21,411 30,000 8,656 25,000 50,000 69,756 54,003 25,000 25,000 13,297 12,838 20,000 28,885 40,000 20,000 25,832 35,000 9,931 200,000 245,526 25,476 25,000 5,262,011 6,000,000 8,793,811 322,430 500,000 712,905 1,000.000 6,447,030 5,000,000 112,374 50,000 43,753 50,000 100,000 72,664 70,851 60,000 40,000 167,245 65,532 75,000 70,082 . . 50,000 p a g e 41, p le a s e ) C a p ita l $ . . . . F i r s t N a t i o n a l .......................... . . . .F i r s t N a t i o n a l .......................... . . . . .F ir s t S t a t e ................................. . . . . F i r s t N a t i o n a l ................ ......... S ta t e B a n k o f . ........................ . . . . B lu e E a r t h S t a t e ................... . . . . C itiz e n s S ta t e ....................... . . . .F irs t N a t i o n a l ......................... . . . . F i r s t N a t i o n a l .......................... , . . . .S ta te B a n k o f .......................... . . . . . E m p i r e S t a t e ............................ . . . . S ta t e B a n k o f ......... ................ . . . .F i r s t N a t i o n a l .......................... . . . .C itv N a t i o n a l ............................ . . . . F i r s t & A m e ric a n N a tio n a l .M in n e s o ta N a tio n a l, , N o r th e r n N a t i o n a l . . . . . . . . E a s t G ra n d F o r k s .M in n e s o t a N a t i o n a l .............. . . . .F i r s t N a t i o n a l ................ . . . . E l y ....... ............. . . . . F i r s t N a t i o n a l .......................... . . . . M in e rs N a t i o n a l ..................... . . . . S e c u r i ty N a t i o n a l ................. . . . . S t a t e B a n k o f ..................... F a i r v ie w ......... . . . . F a irv ie w S t a t e .......................... G r a n d M e a d o w . . . F i r s t S t a t e . . ............................ H o p k in s .......... L e w i s t o n ......... . . . .S e c u r ity S t a t e .......................... M e lro s e ............ M in n e a p o lis . . M in n e a p o lis . . . . . . F i r s t N a t i o n a l .......................... M i n n e a p o lis .. M in n e a p o lis . . M i n n e a p o lis .. M o n te v id e o . . . ............ M o n te v id e o . . . . . . .U n io n S t a t e . . . . M o o rh e a d . . . . K a n e b e c .. . . . N ew U lm . . . . N o rth fie ld . . . . N o r th fie ld . . . . ...R . H . W e lle ................ . . . H . C. H a n s o n .............. . . . H . L . S w a n s o n ............ . . .H . A. W ils o n .............. . . . R o b t. H . M a g ie ......... . . . J o r ic e . . . L. O. . . . H . M. . . . M . C. E . B ro w n . . . . A n d e r s o n ......... M a c k e n z ie . . . . T e s c h ................... . . . J . R . S c h u k n e c h t. . . . . . C h as. M a c k e n z ie . . . . . . . R a y M e y e r ..................... . . . W . H . N o r m a n ............ . , D . L„ G r e g a r s o n . . . . . . .B . W . L lo y d ................. . . , A . P . R is c h m ille r . . . . . . . C. R . D u r o e ................... . . . E . A . E r i c k s o n ............ . . . J . A . L i lly ..................... . . . F. . . . J. . . . G. . . H. J. C. A. C. M a c h a c e k ......... N e ls o n ................ H u d y ................... S ta lb o e r g e r . . . . . H . R . N e s s ..................... ( T u r n to https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis L oans and D is c o u n ts $ 36,013 796,690 399,136 615,337 555,729 201,892 248,200 481,638 549,034 571,825 381,113 400,263 186,424 350,265 107,060 326,436 2,169,045 8,565,662 2,174,507 4,057,942 249,093 261,955 303,038 317,117 340,146 1,171,761 434,781 524,418 241,832 632,710 301,766 280,177 411,239 368,217 119,736 74,434 281,774 243,595 271,802 1,832,053 296,058 20,139,041 45,914,654 3,650,288 8,944,513 48,081,095 300,903 573,856 768,846 765,995 290,080 299,500 191,999 B onds an d S e c u r itie s $ 15,786 680,328 301,250 594,264 457,220 200,527 149,821 118,021 272,680 575,427 328,976 1.612,576 68,863 139,895 231,060 2,341,007 13,507,993 3,180,584 4,290,874 335,369 154,491 125,772 429,748 272,015 962,789 197,953 478,859 50,104 203,890 155,100 26,571 572,931 85,008 84,000 191,102 199,976 138,662 23,500 1,685,184 209,872 25,645,824 61,337,260 524,300 5,569,638 58,955,912 906,760 138,816 365,193 161,200 1,199,590 719,440 417,781 C a s h a n d D ue F ro m B a n k s D ep o sits $ 66,619 $ 24,175 563,213 1,910,647 297,787 923,605 295,600 1,407,224 409,533 1,290,313 186,197 553,697 125,742 471,442 152,669 637,451 273,525 1,020,385 1,539,441 531,203 357,809 976,697 605,626 2,389,948 111,597 331,299 229,391 663,099 119,041 38,227 799,412 1,215,647 4,830,029 8,433,801 15,241,741 34,181,208 3,993,071 8,835,052 6,180.922 13,184,259 223,853 745.048 110,158 493,880 108,798 499,338 618,398 1,259,705 701,629 135,157 653,163 2,557,298 249,673 804,054 1,537,951 562,585 113,231 360,445 382,512 1,159,507 223,905 636,223 54,198 340,807 223,482 1,106,863 197,522 576,011 82,728 267,282 148,537 374,589 161,101 565,467 107,737 452,778 46,010 406,689 1,623,996 4,777,783 170,933 622,521 7,237,158 68,171,262 75,609,052 167,725,991 6,687,922 2,963,075 20,947,006 8,242,074 53,043,124 151,906.382 454,491 1,502,674 204,866 843,117 357,257 1,367,677 1,130,788 317,348 454,542 1,767,895 223,897 1,102,178 145,791 653,216 Northwestern Banker August 19M 40 W e s t Central Clearing H o u se M eeting OLLOW ING an aftern o o n of golf for th e m en and bridge for th e ladies, m ore th a n one h u n d red ban k ers and th e ir w ives, and guests, w ere p resen t at th e d in n e r an d p ro gram sponsored by th e W est C entral M innesota C learing H ouse A ssociation on Ju ly 28th a t th e M ontevideo Golf Club. I. M. Thom pson, ch airm an from Milan, presided. The A ssociation m eets four tim es a year, w ith th is sum m er m eeting one of a social n atu re. R ep re sen tativ es from b an k s in M inneapolis and St. Paul w ere also p resent, am ong them L a rry Olson, vice p resid en t of M idland N ational, M inneapolis, and vice p resid en t of th e S tate A ssociation. Follow ing th e dinner, O. G. Jones, p resid en t of th e Goodhue C ounty N a tional at Red W ing, and A ssociation president, spoke briefly, as did also F. A. A m undson, M innesota Com m is sioner of B anking. Mr. A m undson F said th a t banks in his state had show n g re a t im provem ent in recen t years, w ith the tre n d back to the note case and aw ay from securities. He w arned th a t the lending policy should be w atched, how ever, since th ere could be p len ty of grief w hen th e p resen t de fense program relaxes. Mr. Jones spoke along th e sam e lines, and asked his listen ers to qualify as soon as pos sible for the sale of defense bonds. W illiam D uncan, A ssociation secre tary , spoke at length on recent tax legislation w hich relieves banks from a considerable burden, except in the case of excessive real estate holdings. He also w arned of the period following defense preparation, saying th a t even u n d e r the m ost p ru d en t m anagem ent th e re w ill be some losses, b u t th a t w ith th e p resen t supervision, and good ju d g m en t exercised on the p a rt of the b ankers, th e storm should be w eath A m ong th o se a tte n d in g th e re c e n t m e e tin g of th e W est C e n tra l M in n e so ta C lea rin g H ouse A sso c ia tio n , h eld in M o n te v id e o , w ere, re a d in g fro m le f t to rig h t, 1— I. M. Thomp son, c ash ie r P eo p les S ta te B a n k , M ila n ; A rthur K rebs, vice p re s id e n t N o rth w e s te rn S ta te B a n k , A p p le to n ; a n d G-lenn B lom quist, c a s h ie r N o rth w e s te rn S ta te B a n k , D aw son. 2— F. A. Am undson, M in n e so ta C om m issioner o f B a n k in g , S t. P a u l; C. E. M elbye, c a sh ie r S ta te B a n k of K e rk h o v e n ; a n d R. O. Bishop, s u p e rv isin g ex am in er, P .D .I.C ., S t. P a u l. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August Í9M ered in good shape. Mr. D uncan cau tioned his m em bers about applying service charges th a t are excessive—if custom ers rebel and th e m atter comes before th e M innesota legislature, w h at th is body does w ould v ery likely w ork a h ard sh ip on banks. T he secretary said cooperative banking is becom ing p rev alen t in M innesota. T here are no supervising law s to cover this type of banking, and som ething m u st be done, to stop this cooperative trend. The m eeting closed w ith th e aw ard ing of golf and bridge prizes m ade by Lud Roe, M ontevideo editor and new s paper m an, w hose w itty rem ark s are not exceeded by his genial personality. We th in k th ere w as som ething a little questionable going on w hen th e re w ere so m any refusals of th e last, and prob ably the best, door prize. Bill D uncan finally got it, w hen even his refusals w ere of no avail. 3— C. C. E lkjer, p re s id e n t F a rm e rs & M e rc h a n ts S ta te B a n k , C lark field ; O laf Gandrud, p re s id e n t S w ift C o u n ty B a n k , B en so n ; O. G. Jones, p re s id e n t G oodhue C ounty N a tio n a l B a n k , R ed W in g , a n d p re s id e n t M in n e so ta B a n k e rs A sso c ia tio n ; a n d W illiam Duncan, Jr., s e c re ta ry M in n e so ta B a n k e rs A sso c ia tio n . 4— Lud Roe, M o n te v id e o ; R. J. Schubert, a s s is ta n t c a sh ie r C itiz en s S ta te B a n k , E ch o ; Sib ert Johnson, c a s h ie r N o rth w e s te rn S ta te B a n k , A p p le to n ; a n d Leonard N elson, c a sh ie r C itiz en s S ta te , E cho. 41 W H A T M IN N ESO TA STATEM ENTS S H O W (C ontinued from page 39) R ed w o o d F a l l s . . . .C itiz e n s S t a t e .............................. .............. M . O. H a n s o n ............. R o c h e s t e r ................ U n io n N a t i o n a l , ................... .. .............. A . C. B u r g a n ............. R u t h t o n ................... .F a r m e r s & M e r c h a n t s .............. S t. C h a r l e s ............ .F i r s t N a t i o n a l .............................. S t. C lo u d ................ S t. C loud S t a t e ............................ ..............E . W . W e n d t............. S t. P a u l ................... A m e ric a n N a t i o n a l ................... S t. P a u l ................... D ro v e rs E x c h a n g e ..................... ..............H . G. S w a n s o n ........... S t. P a u l ................... E m p ir e N a t i o n a l .............. .. .............. A r t h u r W . M c N e e . . S t. P a u l ................... S t. P a u l ................... F i r s t S t a t e ..................................... .............. W a lte r E . O l s o n . . . S t. P a u l ................... M id w a y N a t i o n a l ........................ .............. T. H . M a g e e ............... S t. P a u l .................. S t. A n th o n y P a r k ..................... S t. P a u l ................... S to c k Y a r d s N a t i o n a l ............ S t. P a u l ................... W e s te r n S t a t e .............................. .............. W . H . K o r t u m .......... S a u k C e n t e r ......... .M e rc h a n ts N a tio n a l ................ .............. J . H . H a n s e n ............. T h ie f R iv e r F a lls U nion S t a t e ..................................................A . W . H e n s r u d ........... V i r g i n i a ................... S ta t e B a n k o f .............................. ..............R . H . W i lli n b r in g . W h ite B e a r L a k e . F i r s t S t a t e ..................................... W i llm a r ................... .B an k o f ............................................ ..............A . E . N o r d s tr o m . . W i l l m a r ................... .S e c u rity N a t i o n a l ........................ W i n o n a ................... . F i r s t N a t i o n a l .............................. .............. C. F . W i t t .................... W i n o n a ................... • W in o n a N a t i o n a l ....................... ..............J o h n A m b r o s e n . . . . . . . . . . 25,000 100,000 20,000 50,000 25,000 3,000,000 100,000 500,000 6,000,000 100.000 215,000 30,000 250.000 25,000 50.000 50.000 50,000 25,000 100,000 100,000 250,000 200,000 77,663 96,783 18,467 35,483 30,492 904,414 91,609 381,817 7,368,898 126,550 236,347 19,297 323,584 58,639 48,501 78,535 61,762 19,933 88,643 34,432 272,684 279,890 484,208 913,560 215,769 405,810 356,885 6,380.576 1,226,253 4,832,945 62,894,928 656,761 2,400,817 292,450 2,700,610 512,627 229,334 475,434 384,895 167,716 711,802 412,256 1,813,574 1.404,499 275,858 685,063 61,832 269,569 7,502 16,250,306 598,380 2,047,426 26,999,366 1,551,350 2,064,986 212,651 1,678,425 411,270 538,996 486,800 690,638 134,429 578,829 616,219 2,930,384 2,047,711 673,858 900,818 143,386 170,156 154,712 14,250,269 619,676 2,738,613 76,669,669 333,978 1,839,653 142,056 3,434,176 314,095 298,560 293,498 311,519 229,454 704,248 486,685 1,258,587 837,462 1,328,177 2,295,675 397,254 772,739 468,983 33,555,135 2,195,057 8,733,385 154,642,063 2,350,194 5,686,107 595,330 7,266,243 1,150,004 993,814 1,151,439 1,302,945 502,701 1,821,386 1,427,988 5,579,284 3,970,223 State Banks "Healthy" M innesota’s sta te b an k s a re in a “h e a lth y ” condition, F. A. A m undson, C om m issioner of B anks, said recently as he disclosed a re p o rt show ing th e condition of 486 sta te banks, one sav ings b an k and four tr u s t com panies as of Ju n e 30, 1941. T he re p o rt show ed these significant facts: An increase in loans and discounts of $4,872,221 for th e second q u a rte r of th e y ear, th e to tal being $145,299,314. U. S. bonds and secu rities increased $2,936,668; o th er bonds and securities decreased $4,774,034; o th er real estate decreased $56,037. D eposits increased $3,826,414, to a total of $306,247,103. Cash reserv e on h an d to taled $66,766,856, or th re e tim es th e am ount re quired by law. C om m issioner A m undson said th a t d u rin g th e second q u a rte r of th e y e a r state b anks re tire d capital d eb en tu res to talin g $122,200, w hile capital stock increased $105,000. S urplus and u n d i vided profits, he poin ts out in th e re port, increased $691,902. “The dem and for local loans is in creasing and sta te b an k s are co n tin u ing to dispose of th e w eak er issues in th e ir bond portfolios,” said Com m is sioner A m undson. “Bond prices in re cent m o n th s have p erm itted th is liqui dation w ith o u t serious loss to th e banks. The d ep artm en t is continuing to advise sta te b an k s to dispose of an y und esirab le secu rities w hich th e y hold. The re p o rt g en erally reflects a v ery h ea tlh y condition of M innesota state ban k s.” Austin Man Honored E. C. D uncanson of th e H om e F ed eral Savings & L oan A ssociation of A ustin has been elected to th e execu tive board of th e T ri-State B uilding, L oan Savings A ssociation. He w as STA TEM EN T OF CO NDITION F irs t N a tio n a l B a n k and T r u s t C o m p a n y o f M in n e a p o lis as at June 30, 1941 □ R esources Cash on Hand and Due from Banks............................ $ 75,609,052.95 U. S. Government Bonds (Direct or Fully Guaranteed) ............................................................... 53,724,450.00 Guaranty Fund (U. S. Bonds with Commissioner of B anks).................................. 600,000.00 Loans and Discounts....................................................... 45,914,654.06 Other Bonds and Securities.......................................... 7,012,810.54 Overdrafts ..................................................................... 22,737.72 Bank B uildings.............................................................. 645,905.96 Customers’ Acceptance Liability.................................. 273,740.90 Interest Earned but not Collected................................ 360,918.16 Total Resources ..................................................... $184,164,270.29 L ia b il it ie s Capital Stock .................................................................$ 6,000,000.00 S u rp lu s............................................................................. 6,000,000.00 Undivided P ro fits ........................................................... 2,793,811.12 Reserve for Interest, Expenses, Taxes, etc.................. 1,160,872.92 Interest Collected but not Earned................................ 209,854.25 Letters of Credit and Acceptances................................ 273,740.90 D eposits........................................................................... 167,725,991.10 Total Liabilities .................................................... $184,164,270.29 17. S . G o v e rn m e n t o b lig a tio n s a n d oth er s ec u ritie s c a rrie d at $ 2 6 ,5 0 9 ,0 2 9 .6 7 in the fo r e g o in g statem en t a re dep o sited to secu re p u b lic fu n d s a n d fo r other p u rp o s e s re q u ire d by la w . M em ber F e d e r a l D epo sit I n s u ra n c e C o rpo ra tio n A ffilia te d w ith F IR S T b a n k s t o c k c o r p o r a t io n Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1941 42 •MINN ESOTA chosen a t th e convention recen tly con cluded at D uluth. S im ultaneously w ith th e an n o u n ce m en t of th e honor to Mr. D uncanson, L eonard M. F la n n e ry , secretary -treas u re r of th e A ustin H om e F ed eral a n nounced th a t th e com pany h ad reached a new h igh w ith $1,500,000 in assets com pared to th e $25,000 w ith w hich th e firm started. Semi-Annual Meeting Tw ice each y e a r th e F irs t N ational B ank of G rand R apids holds a m eeting NEWS of its stockholders to discuss affairs of the bank, and to m ake plans for th e benefit of th e institu tio n . The second such m eeting of 1941 for th e b ank w as held last m onth, and revealed v ery sa t isfactory conditions in th is financial in stitu tion. A t th e p resen t tim e th e F irs t N a tio n al has m ore m oney loaned, on safe loans, th a n a t an y previous tim e in the h isto ry of th e bank. The b an k depos its are also show ing a steady increase, reflecting in th is p a rt of th e b a n k ’s business th e general im provem ent in C o n tin en ta l I llin o is N a tio n a l Bank a n d T rust C om pany OF CHICAGO Statement of Condition, June 30,1941 r e so u r c e s Cash and Due from B an k s.....................................$ 613,604,317.32 U nited States G overnm ent O bligations, D irect and F u lly G uaranteed........................... 794,435,700.00 Other Bonds and Securities. ................................. 66,330,861.06 Loans and D iscou n ts................................................ 248,168,150.26 Stock in Federal R eserve B an k ......................... 2,700,000.00 C ustom ers’ Liability on A c cep ta n ces.............. 559,572.83 Income A ccrued but N o t C o llec ted .................. 2,660,422.95 Banking H o u s e ......................................................... 12,150,000.00 Real Estate O wned other than Banking H ouse 2,315,500.67 $1,742,924,525.09 L I A B I L I T IE S D e p o s its....................................................... $1,609,637,608.67 A c c e p ta n c e s............................................... 613,189.50 Reserve for T axes, Interest and E xpenses. . . . 5,014,513.33 Reserve for C o n tin g en cie s.................... 17,359,273.31 Income C ollected but N o t Earned.. 395,403.99 Com m on S to c k .......................................... 50,000,000.00 Surplus.......................................................... 40,000,000.00 Undivided P rofits...................................... 19,904,536.29 $1,742,924,525.09 U n i t e d S t a te s G o v e r n m e n t o b lig a tio n s a n d o t h e r s e c u r i ti e s c a r r ie d a t $173,228,329.29 a r e p le d g e d t o s e c u r e p u b lic a n d t r u s t d e p o s its a n d f o r o t h e r p u r p o s e s a s r e q u i r e d o r p e r m i tt e d b y law Member Federal Deposit Insurance Corporation Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19bl • in d u stry and m erchandising th ro u g h out th is section. B ank profits d uring the first half of th e y ear w ere large enough so th a t a dividend w as declared, payable to hold ers of stock of record on Ju ly 1st. Brief Minnesota News By J. S. H o a g l u n d S. E. Storm , cashier of th e State B ank of W heaton, has ju st re tu rn e d from a vacation sp en t a t th e lakes in the n o rth e rn p a rt of th e state. Mr. Storm also visited for a few days in Chicago w hile on vacation. Stanford R onning, cashier of th e U nion S tate Bank, B row ns Valley, re p o rts th a t business is excellent at this tim e, an d th a t th e flax an d w heat crops are good. R. D. B eery, p resid en t of th e bank, is a t p resen t vacationing a t his cot tage located a t th e lakes in th e n o rth ern p a rt of th e state. H. G. B orgerding, p resid en t of th e N o rth A m erican S tate B ank of Bel grade, has been confined to his hom e for th e p ast few w eeks by illness. A. J. B orgerding, cashier of the N o rth A m erican, is a t p re se n t visiting his fath er, w ho resides a t San Diego, California. M iss Ida M uggli, a ssistan t cashier of th e F irs t N ational B ank of Cold Spring, is at p resen t on a vacation trip w ith h er sister, L ou ise M uggli. T heir trip w ill take them th ro u g h Yellow stone N ational P ark, W ashington and Oregon, and th ey w ill re tu rn th ro u g h B ritish Columbia. T hey p lan to be gone about a m onth. Mrs. F red Stein is assisting h e r h u s band, F red S tein, cashier of th e F irs t N ational B ank of Cold Spring, in the b ank th is sum m er. H. L. S w anson, cashier of th e F irst S tate B ank of Cosmos, rep o rts an in crease in capital of th e b an k from $10,000 to $15,000. Mr. Sw anson also says th a t th e F irst State B ank is show ing an increase along o th er lines. E d w in Sandvig, w ho has been w ith th e S tate B ank of B rooten for 25 years, w as recen tly prom oted from th e posi tion of assista n t cashier to vice p resi dent. 43 Twin C ity News J. H A M E R N IC K has been prom oted from teller to a ssista n t cashier of U n iv ersity N ational Bank, M inneapolis. dw ard By James M. Sutherland E E m ployes of F ir st N ational B ank & T rust C om pany, M inneapolis, have been offered a p lan for v o lu n ta ry p ay roll deductions for p u rch ase of U. S. defense savings bonds and stam ps. E inar B erg, p a rtn e r in th e T w in In v estm en t H ouse of Jam ieson & Com pany, re p re se n te d th e n o rth w e st a t th e d in n e r in N ew Y ork h onoring E m il Schram , new p resid en t of th e New Y ork Stock E xchange. F o u r new officers have been added to th e staff of M arquette N ational B ank, R alph W . M anuel, president, announced follow ing th e Ju ly m eet ing of th e board of directors. E m ployes prom oted to officers’ posi tions are Joseph W. N eiiner, nam ed a s s o c i a t e t r u s t officer; E d w a r d Sch m itt, associate m ortgage loan offi cer; P aul W. P etterson, a ssista n t m o rt gage loan officer, and H arold R. Gabrielson, a ssista n t incom e advance offi cer. E lection of Jam es A. Galbraith as a ssista n t cash ier of M idland N ational B ank & T ru st Com pany in charge of th e cred it d e p a rtm e n t w as announced by Edgar E. M attson, president. Mr. G albraith joined th e cred it de p a rtm e n t of N o rth w e ste rn N ational B ank & T ru s t C om pany in 1926 and h ad been connected w ith it since th a t tim e, th e last seven y ears as credit investigator. C entral N ational Bank, M inneapolis, hen cefo rth w ill be know n as Central N orth w estern N ational Bank. The nam e change, voted by stockholders Special C o r r e s ponde nt and directors, has been approved by th e com ptroller of currency. T he bank is an affiliate of N o rth w est Bancorporation. C hester E ggen has been elected as sista n t cashier of Chicago-Lake State Bank. H e w as connected w ith M ar q u ette N ational B ank and U n iversity N ational B ank before going to Chi cago-Lake a y ear ago. A ppointm ent of nine new a ssistan t b an k exam iners has been announced by E. H. Sedlacek, chief n ational bank exam iner in M inneapolis. T hey are C harles E. Corchran, E. W alter Geckler, Glen Gore, B en M aynard, Jr., and W illiam T u stison , M inneapolis; John W eiss, Chippew a Falls, W isconsin; W illiam R iek, La Crosse, W isconsin; R alph E. D ye, Shelby, M ontana, and M erle Stone, Fargo, N o rth Dakota. A m erican N ational Bank, St. Paul, has inform ed custom ers it w ill p ro vide special savings accounts for those desiring to anticipate increased in come ta x paym ents in 1942. In te re st w ill be com pounded q uarterly. George J. Johnson, senior vice p resi den t a t A m erican N ational Bank, has been elected presid en t of th e B ank of W illm ar, M innesota, as successor to th e late J. F. B ranton. LEGAL IN V EST M E N T For JAMIESON & C OM PA N Y Stocks Bonds Grain q Q f Cotton Butter E ggs IN SU R A N C E COM PANIES Accounts Insured up to $ 5 ,0 0 0 C o n v en ien t . . . S afe Commodity Brokers • Members New York Stock Exchange I and Other Principal E xchanges e ST. PAUL — MINNEAPOLIS • Government — Municipal Corporation Bonds • CHARLES C. RIEGER M anager Bond Department 3 % (Current Rate) St. Paul Federal j Savings & Loan Association Axel A. Olson, Sec’y-Mgr. 4 East Fourth St., ST. PAUL, M INN. M inneapolis — Atlantic 8235 _______________________________________ Noi thwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1941 44 J. L. D riscoll and A rthur Geggie have been nam ed co-m anagers of the M inneapolis office of F en n er & Beane succeeding V incent M cLane, w ho re signed ow ing to o th er business plans. I nterbank deposits and bal ances are the basis upon which the cost accountant appraises income against which service costs are charged in analysis. But interbank relation sh ip s have a tangible value not in cluded in the expert’s figures of profit and loss. Without this w ell-estab lish ed system of mutual service and understand ing, our whole American bank ing structure would lose some thing of its distinctive character and much of its efficiency. ... THE . . . P H IL A D E L P H IA NATIONAL BANK ORGANIZED 1803 PH IL A D E L P H IA , PA . C apital, S u rp lu s an d U n d iv id e d P ro fits $45,000,000 M em ber of Federal Deposit Insurance Corporation N orthwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1941 A lton F. Junge, form erly a m em ber of th e staff of Jo h n S. B aum an & Com pany, M inneapolis, has become asso ciated w ith th e bond d ep artm en t of N o rth w estern N ational B ank & T ru st Company. E lection of tw o new directors of In vestors Syndicate of M inneapolis has been announced by E. E. Crabb, p resi dent. T hey are G. M. Stew art, M inne apolis, presid en t of G. M. S tew art L um ber Company, and H erbert J. Lorber, vice presid en t and general m anager of Rollins, B urdick and H u n ter, Chicago, in su ran ce brokers. T hree new directors of th e affiliated organization, In v esto rs M utual, Inc., are C. P alm er Jaffray of Piper, Jaffray and Hopwood; R obert J. Stallm an, vice presid en t of W ells-Dickey Com pany, and E u gen e P. M cCahill, p resi den t of M cCahill & Company, all in v estm en t b an k ers of M inneapolis. R. B. R athbun, associate m anager of H arris, U pham & Company, M inne apolis, w as local d irector of the alum i num drive conducted Ju ly 21-29. Ar thur P. Kem p, vice president, F irst N ational B ank & T ru st Company, was treasu rer. Browne Elected President W. J. “B ill” Brow ne, p resid en t of th e W adena County S tate Bank, of W adena, is th e new p resid en t of th e N orth C entral M innesota Clearing H ouse A ssociation. Mr. B row ne w as elected at a business m eeting held at the recreatio n hall a t R u ttg e r’s Birchm ont Lodge in Bem idji last m onth. O ther officers are R. H. W elle, cashier of the F irs t N ational B ank of Bem idji, vice president, and E. R. Hall, cashier of th e F irs t N ational B ank of Cass Lake, secretary -treasu rer. At th e business m eeting W illiam D uncan of th e M innesota B ankers As sociation spoke on defense bonds. O. G. Jones of Red W ing, p resid en t of the M innesota B ankers A ssociation, spoke briefly afte r Mr. D uncan. P robability of inflation and th e care th a t should be tak en in th e purchase of securities form ed th e basis of an in terestin g ta lk given by W. G. Kahle rt of Jam ieson and Company, dealers in stocks and com m odities, before th e b an k ers and th e ir w ives a t the b an quet held a t th e B irchm ont Hotel. 45 P ub lic R elation s — A. C. Idsvoog, chairm an, G rafton; R. H. B arry, Fargo; G. A. K lefstad, F orm an; J. F. M clntee, New E ngland, and C. P. K jelstrup, Minot. C onsum er Credit —N. I. Roop, ch air m an, Bism arck; R. W. Delaney, Jam es town; G. E. Tollefson, Dickinson; M. G. Pederson, Hope, and L. W. Schwoebel, New Rockford. NORTH DAKOTA J . I. H E G G E P r e s id e n t H illsb o ro NEWS Operate Branches S tate E x am in er Jo h n G raham a n nounced th e F irs t S tate B ank of Gilby has been au th o rized to o perate a p ay ing and receiving statio n a t In k ste r w hile th e F irs t S tate B ank of S haron has been au th o rized to o perate a sim ilar statio n a t A neta. Hampden Pioneer Dead M artin M ortenson, 73, w ell-know n farm e r an d b an k er of th e H am pden vicinity, died last m o n th a t a M inot hospital. A t th e tim e of his d eath Mr. M or tenson had b an k in g in te re sts a t Rol ette. G oes to Ellendale F ra n k G. S uttle, w ell k now n in b an k in g circles in N o rth and South D akota, and long associated w ith the F irs t N ational B ank a t A berdeen, took over his d uties a t th e F irs t N ational B ank of E llendale last m onth, h aving been elected vice p resid en t of th a t in stitu tio n in Ja n u a ry . New Director Elected C. C. WATT AM S e c r e ta r y F a rg o No o th er change in th e personnel at the b ank is an ticipated at this tim e, officials of th a t organization an nounced. Dr. C. J. M eredith, pro m in en t Valley City physician and surgeon, w as elected to the board of directors of the F irs t N ational B ank in Valley City, succeeding J. T. Sanger, w ho has re signed to accept a banking position at V erm illion, South Dakota. Retired Banker Dies Dies at Friend's Home E rick A. L indstrom , 66 y ears old, re tire d b an k er at H am ar, died of a h e a rt attack w hile re tu rn in g hom e from a fishing trip. He had been fish ing in th e Sheyenne riv e r n ear H am ar and died a t th e hom e of a neighbor. Names New Committees J. I. Hegge, p resid en t of th e N orth D akota B ankers A ssociation, h a s nam ed th e follow ing com m ittees to serve for th e ensuing year: A gricultural —F red A. Irish, ch air m an, Fargo; A. L. N etcher, Fessenden; D ugald S tew art, Bowman; F. F. Foley, Rolla, and Clarke B assett, Fargo. L eg isla tiv e —J. O. M ilston, chairm an, Belfield; H. A. Fischer, W ashburn; J. R. M adsen, M andan; G. A. L enhart, H azelton, and H. W. George, Steele. A1 W. Engel, 62, b an k er from E s mond, N orth Dakota, died at Valley City recen tly in a frien d ’s home. He had been to F argo on a business trip, b u t did not feel well w hen he reached Valley City. He stopped to re st and died after reaching his frien d ’s home. He had been a b an k er a t Esm ond for 40 years, after previously being lo cated at H illsboro and V alley City. Changes in Valley City Don Buckm an, a ssistan t cashier, F irs t N ational B ank in Valley City, was nam ed to succeed J. T. Sanger as cashier. Mr. B uckham has been w ith the b ank for th e p ast six years, and his election to succeed Mr. Sanger comes as a fine prom otion for him. H e w ill be succeeded as a ssistan t cash ier by H arlan d E rickson of Cando. W h a t North D akota Statem ents Show JU N E 30, 1941 The N orth w estern B an ker is pleased to p u 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 you r bank is n ot inclu ded 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. TO W N BANK C A S H IE R B is m a r c k ............ . . D a k o ta N a ti o n a l B a n k & T r u s t C o. . ■A . A . M a y e r ............ .$ B is m a r c k ............ . . . F i r s t N a t i o n a l ............................................ . B. F . L a w y e r ......... C a r s o n ................ . . .G r a n t C o u n ty S t a t e ................................. . D. C. M c V a y ............ C r o s b y ................... . . F a r m e r s S t a t e .......................................... . E . G. H a n s o n ............ D ic k in so n ............ . . F i r s t N a t i o n a l ............................................ .T . A. T o lle fs o n . . . . D r a k e ................... . . .F i r s t N a t i o n a l ............................................ .H . M. R o s s e b o ......... F a r g o ................... . . . F i r s t N a t i o n a l ............................................ . F a r g o ................... ...M e r c h a n t s N a t i o n a l .............................. . C. H. O ls o n ............... . J a m e s t o w n . . . . ,. . . J a m e s R iv e r N a t i o n a l .......................... . M. J . G r e tte n b e r g . J a m e s t o w n ......... . . . N a tio n a l B a n k o f ................................... . E . W . M u e lle r . . . . L a n g d o n .............. . . N o r th w e s te r n ............................................... .G u s H a r t m a n ........... M in o t...................... . . F i r s t N a t i o n a l .......................................... . W a lte r E . T o o ley . M in o t................... . . . U n i o n N a t i o n a l ........................................ . .1. S. W e s tla k e . . . . . . N o r th w o o d ......... . .N o rth w o o d S t a t e ........................................ .T h e n H . T u f t e ......... P a g e ..................... . . . F i r s t S t a t e ................................................... . E . G. C la p p ............ R a y ....................... .. . C i t i z e n s S t a t e ............................................ W. S. R a y m o n d . . . R u g b y ................... . . C itiz e n s S t a t e ............................................ . L . N . S e s s i n g ......... S te e le ................... . . . B a n k o f S te e le ............................................ . H . W . G e o r g e ........... V a lle y C ity . . . . . . . A m e r i c a n N a t i o n a l ................................. . R. M. H o u g e n . . . . W a tf o r d C ity . . . . F i r s t I n t e r n a t i o n a l ................................. . .O. N . S t e n e h j e m . . . C a p ita l 100,000 200,000 15,000 20,000 100,000 25,000 350,000 150,000 100,000 100,000 15,000 150,000 100,000 25,000 15,000 15,000 25,000 15,000 50,000 40,000 S u r p lu s a n d P r o f its 81,736 245,830 11.738 11,169 80,389 30,296 350,042 209,930 24,328 44,469 20,313 148,058 33,912 31,633 8,289 3,000 35,879 10,956 28,738 5,409 S L oans and D is c o u n ts S 659,000 863,167 76,249 209,844 461,369 258,726 3,239,811 1,342,772 490,773 562,047 170,892 1,373,773 299,688 201,884 52,774 21,787 259,727 181,406 259,173 191,988 Bonds and S e c u r itie s 399,018 1,777,481 74,059 14,368 480,310 122,396 1,904,772 1,391,228 440,121 486,982 20,201 998,515 635,624 129,008 52,795 143 37,011 37,647 208,515 28,651 $ C ash a n d D ue F ro m B an k s S 462,158 1,116,176 63,865 289,610 1,039,417 285,324 2,773,695 1,225,379 453,280 432,875 128,656 905,159 375,523 182,394 31,708 41,951 370,285 94,474 250,886 81,789 Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D e p o s its $ 1,398,769 3,417,021 191,594 491,653 1,882,980 514,302 7,557,926 3,642,166 1,295,954 1,367,514 294,270 3,148,392 1,251,213 463,149 120,768 56,397 610,369 293,079 682,427 267,218 August 19^1 46 • NORTH DAKOTA NEWS L E G A L DEPARTMENT N A T IO N A L DEFENSE (C ontinued from page 18) (C ontinued from page 20) No. A person w h o books passage on an ocean-going ship im p lied ly acqui esces to be bound by th e custom of the sea and con sen ts to burial th erein in the even t of death during the voyage. poration. H oldings of th is bond are lim ited to $50,000 cost price, issued in a n y one calendar year. R edem ption m ay be effected on one m o n th ’s w rit te n notice to a F ed eral R eserve B ank or to th e T reasu ry D ep artm en t after six m onths from th e date of issue (only on th e first day of th e m onth). Series “G” is an incom e bond, reg istered, not tran sferab le, taxable as to incom e by th e F ed eral G overnm ent only. I t has a m a tu rity of 12 y ears and b ears in te re st at th e ra te of 2% p er cent if held to m atu rity , payable sem iannually by check. T his bond m ay be p u rchased by anyone except a com m ercial bank. T he holdings of th is bond are lim ited to $50,000 cost price, issued in any one calendar year. Now you m ay becom e an authorized issuing ag en t and acquire a stock of Series “E ” bonds by th e com pletion of an application-pledge agreem ent au th o rized by a resolution adopted by y o u r board, and you m ay obtain a stock up to $6,500, w ith o u t pledging any collateral. In o th er w ords, you are really tak in g these bonds on con signm ent, and should you desire a stock in excess of $6,500, a pledge of secu rities is required. F ed eral R eserve banks do not have an y stock of defense postal savings stam ps. These stam ps m ay be p u r chased from yo u r local postm asters for resale. It is a pleasure to tell you th a t of th e 45 n ational banks in N o rth Da A M ississippi b a n k e r operated a bus line in th a t state. Due to a breakdow n on one of th e ru n s, w hich w as occa sioned by a d riv e r’s negligence, one of th e passengers w as forced to w alk a considerable distance on a cold, w et day. She co ntracted pneum onia and died. H er h u sb an d sued for dam ages. The bus operation w as covered by in surance pro tectin g th e ow ner ag ain st death claim s due to accidents. W as the h u sb an d ’s claim such th a t it w as covered by th is insurance? Yes. The p neum onia and death of the p assen ger resu lted from the n eces sary exposure to the w eath er in a m an n er w hich w as u nforeseen, happened by chance, and not in accordance w ith the u su al course of th in gs. It w as, therefore, accidental and th u s w ith in the protection of the policy. R E F R E S H Y O U R SEMA* R Y STOPPING A T AN O u t - o f - T o • kota, 34 have qualified as issuing agents, or 76 p er cent of y o u r national banks, w hich incidentally is on a p ar w ith th e o th er states in th e N inth F ed eral R eserve D istrict; and of the 118 state banks, 54 have qualified as issuing agents, or 46 per cent of your state banks, w hich com pares v ery fa vorably to th e banks in th e o th er states in th is district. I cannot forego th is o p p o rtu n ity of co n g ratu latin g you ban k ers in back ing th is bond sales p rogram as you have. T he A m erican B ankers Asso ciation, speaking for th e b an k ers of Am erica, has offered and urged the use of th e facilities of th e banks by th e U nited S tates T reasu ry in th e sale of defense savings bonds and stam ps to th e public, and it is hoped th a t all th e rem ain in g banks in our co u n try w ho have not qualified as is suing agents w ill soon do so. W e all know th a t our individual fu tu re secu rity is tied to th e fu tu re secu rity of our governm ent, and th a t we in th e b an k ing field are in stru m en talities acting in behalf of th e public and our gov ernm ent. T his p rogram gives us a fu rth e r o p p o rtu n ity to serve our coun try. Doctor: “W as yo u r w ife’s slim m ing diet a success?” H usband: “Rather! L ast T h u rsd ay she disappeared com pletely.” Captain: “H ave you cleaned the deck and polished th e b rass?” New Sailor: “Yes, sir. A nd w ith m y telescope, I ’ve sw ept th e horizon!” w n 'R a n k s O u t-o f-to w n banks and bankers w ill find here c o m p lete b a n k in g fa c ilitie s fo r p ro m p t and Guest rooms fashioned for 19 5 0 -th e econom ical handling o f accounts in Chicago. W e smartest dinin'; rooms in America - and beautiful lobbies - all air-conditioned for Summer com fort! Dine in the Bombay-Black Mirror Room and the | w ould appreciate the opportunity o f serving you. IN®s g zmm-m Amber Room Coffee Shop. Relax in the fa scin a tin g K ing C o le Room. C it y N a t io n a l AND TRUST 2 0 8 S O U T H COMPANY B of C hicago 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 1941 ank S T R E E T 47 IO W A A urelia, w ere re-elected a t th e annual stockholders’ m eeting. The officers are: W. H. Bischel, president; J. M. W hitney, vice p resi dent; H. H. Deyloff, cashier. D irectors in addition to th e above officers are A. E. H ickey and R. S. W hitney. J. M. W hitney has been a director for th e p ast 38 years. N EW S Sivright Named Director H. R. YOUNG P r e s id e n t A rlin g to n PRAN K W A RN ER S e c r e ta r y D es M o in es New Cashier 5 Per Cent Dividend Oscar A. Olson, fo rm erly vice p re si d e n t of th e U nion N ational B ank a t R ochester, Minn., has p u rch ased th e in te re sts of Geo. W. N elson in th e N orthw ood S tate B ank and has suc ceeded Mr. N elson as cashier and ex ecutive m an ag er of th e bank. A t a m eeting of th e directors of th e local in stitu tio n held last m o n th th e tra n sa c tio n w as com pleted, and new s of th e change w as announced th e fol low ing day. No o th er changes in th e b an k p ersonnel w ere made, and th e o th er officers and directors w ill con tinue, including Jo h n S. V eenker, president; E. E. B reen, vice p re si dent; C arl L. B olender, a ssista n t cash ier, w ho w ith Otto B uth and Mr. Olson co n stitu te th e board of directors. Mr. Olson comes h ighly recom m end ed as an able b a n k e r w ith 30 years of experience. B efore locating in R ochester five y ears ago, he w as for te n y ears head of a b an k at T im ber Lake, S. D., and served tw o y ears w ith th e b an k in g d e p a rtm e n t of South Dakota. T he com m ittee for holders of cer tificates of deposit covering deben tu re s of th e A m erican T ru st Co. of D avenport, announces a d istrib u tio n of five per cent w ill be m ade to hold ers of record Ju ly 26th at th e com m ittee offices in th e D avenport B ank Duilding on A ugust 5th. The am ount of this d istrib u tio n is $137,696.47, and brings th e total am o unt d istrib u ted to $1,376,946.10, or 50 p er cent of th e face of th e deben tures. The last distrib u tio n w as on M arch 26th. T his distrib u tio n should n ot be con fused w ith any d istrib u tio n s on de b en tu res of th e L iquidation Corp. The com m ittee for A m erican T ru st certifi cate holders consists of F red A. K ahlke, chairm an; A. H. Ebeling, F red L. S trieter and H. L. W ilcken. Ventura Banker Dies Jacob Stork, p resid en t of th e V en tu ra S tate B ank, died last m onth at th e M ercy H ospital in M ason City. Mr. S tork h ad been in failing h ealth for about six years, b u t w as able to be about u n til about a w eek before his death. Annual Meeting All directors and officers of th e F a rm e rs L oan and T ru st Com pany, affiliated w ith th e Toy N ational Bank, of Sioux City, w ere re-elected a t the recen t a n n u al m eeting. H eaded by R. R. B rubacher, p resi dent, th e group includes Jo h n W. Van Dyke, vice p resid en t and ch airm an of th e board; E a rl A. Hoffman, vice presid en t; E. H. Spiecker, secretary, and J. W illiam V an Dyke, tre a su re r. N am ed as tr u s t officers w ere Mr. B rubacher, Mr. H offm an and Jo h n W. Van Dyke. A 5 p er cen t dividend w as declared. H arv ey L. W elch w as advanced to th e presidency of th e R obert M orris Associates a t th e ir an n u al election. He is vice p resident and m anager of the credit d ep artm en t of th e F irs t N ational B ank of St. Louis and h ith erto first vice presid en t of th e organ ization. O ther officers elected w ere as fol lows: F irs t vice president, J. W ilson Steinm etz, vice p resident N inth B ank & T ru st Co., Philadelphia; second vice president, Joseph W. Simpson, Jr., vice presid en t F irs t W isconsin N ational Bank, M ilwaukee; A lexan der W all, full-tim e secretary -treasu rer Rotary Club Speaker W alter Robinson, cashier of the N ew ton N ational Bank, w as the sp eaker at th e R otary club’s luncheon m eeting in th e H otel M aytag last m onth. Mr. Robinson, w ho accom panied Sw ift & Co. officials on a trip to th e east coast some m onths ago, discussed th e p rep aratio n of livestock for m ar ket and m ark etin g processes. Presides at Meeting L. C. Rum m els, assista n t cashier of th e F irs t S tate B ank of W est B ranch, w as in Des Moines recen tly to preside over a m eeting of th e executive board of Group 8, Ju n io r B ankers Associa tion of Iowa. D uring his recen t to u r of th e east th e association held its first ann u al convention, w ith 300 young b an k ers present. A lthough Mr. R um m els w as absent he w as honored by being elected ch airm an of th e G roup 8, w hich em braces six counties of eastern Iowa. Officials Re-elected All th e p resen t directors and officers of th e F irs t T ru st & Savings Bank, HARRY H. S IV R IG H T of th e organization, w as renam ed for the 27th year. New directors w ere elected for twoyear term s as follows: W illiam P. F lynn, vice presid en t In d ian a N a tional B ank of Indianapolis, Ind.; W illiam J. Gratz, vice president F irst N ational Bank, St. Paul, Minn.; Jo h n W. K onvalinka, vice president Irv in g T ru st Co., New York, N. Y.; V. H. N orthcutt, vice p resid en t F irs t Na tional Bank, Tam pa, Fla.; H a rry H. Sivright, vice presid en t Iowa-Des Moines N ational B ank & T ru st Co., Des Moines, Iowa, and V incent Yager, a ssistan t vice p resident H arris T ru st & Savings Bank, Chicago, 111. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1941 1 W F.N TY years ago, fo o tb all, baseball, softball, tennis and sw im m ing were sports played by d a y lig h t only. N o w h u n d red s of Iow a com m unities enjoy these form s of recreation after dark. T oday, Iow a has 150 fo o tb all fields, 20 baseball diam onds, 100 or m ore tennis courts, softball d iam onds and sw im m in g pools illu m in ated for n ig h t-p lay . G ro w th of n ig h t-lig h te d athletics is only one of m an y im p o rta n t developm ents in Iow a d u rin g these p ast tw o decades. E q u a lly consistent, a lth o u g h less spectacular, has been the g ro w th of the B ankers T ru s t C om pany. Since 1920, assets have g ro w n m ore th a n fo u r-fo ld --a n d each year m ore correspondent banks are saying “Use B ankers T ru s t in Des M oines.“ M e m b e r F e d e r a l D e p o s it I n su ra n c e C o r p o r a tio n https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IOWA WHAT’S BEEN Comparison in number oi night lighted playing areas 1920 no lighted playing areas 1940 hi a fararaa a a a raa taa a a a tatatataa tataa tatatatatata300 Comparison of resources Bankers Trust Company 1920 d* c* 0 $ $ $ $ 5 1940 y y v w y c 4 , 700,000 y y y y $$$$S$$$i Y y T 23 , 399,000 irtf ' W • ■ , ; ■ ■ ■ 1 ' w] W IIÈ Im L ■li ■ ■ ■ .ocust https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis rines T T Y 50 W h a t Iowa Statements Sh o w JU N E 30, 1941 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 sen d us you r statem ents im m ed ia tely after each call. If you r bank is not inclu ded 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. TOW N BANK C A S H IE R C a p ita l A d e l.......................... .D a lla s C o u n ty S t a t e .......................... S 25,000 A l g o n a . ................. .I o w a S t a t e ............................................... 50,000 A m e s ....................... , A m e s T r u s t a n d S a v in g s ................ 75,000 A m e s ....................... . U n io n S to ry T r u s t & S a v in g s . . . . 100,000 A t l a n t i c ................ . A t l a n t i c S t a t e ........................................ 50,000 B o o n e ..................... . .Boone S ta t e B a n k & T r u s t C o.. . . . . R . J . M e y e r s ................ 150,000 B o o n e ..................... ...C itiz e n s N a t i o n a l ................................. . . . E . E . W ie m e r .............. 100,000 B r e d a ....................... .B re d a S a v in g s ....................................... 50,000 B u r li n g to n ............ .B u r li n g to n S a v in g s ............................ 100,000 B u r li n g to n ............ .N a t i o n a l B a n k o f ................................. . 200,000 C a r l is le ................... . H a r tf o r d - C a r l is le S a v in g s .............. 25,000 C e d a r F a l l s ......... . C e d a r F a lls T r u s t & S a v in g s ......... . . . H . C. S m i t h ................ 50,000 C e d a r F a l l s ......... . F i r s t N a t i o n a l .............. ......................... 100,000 C e d a r R a p id s . . . . .G u a ra n ty B-»nk & T r u s t C o ............ 200,000 C e d a r R a p i d s . . . , .M e r c h a n t s N a t i o n a l ............................ 500,000 C e d a r R a p i d s . . . ..P e o p le s S a v in g s ................................... 250,000 C e n t e r v i l l e .. . . . . . F ir s t N a t i o n a l ........................................ 50,000 C h a r i to n .............. .. . F i r s t S t a t e .............................................. 50,000 C h a r i to n ................ .N a ti o n a l B a n k & T r u s t C o ............ 100,000 C h a rle s C it y ......... . f i r s t S e c u r i t y ....................................... 100,000 C l a r i n d a ................ . P a g e C o u n ty S t a t e ............................ 50.000 C li n to n ................... . C ity N a t i o n a l ........................................ 400,000 C li n to n ................... . C lin to n N a t i o n a l ................................. 60.000 C o lf a x ..................... . F i r s t N a t i o n a l ........................................ 25,000 C oon R a p i d s . . . . . F i r s t S t a t e .............................................. 25,000 C oon R a p id s . . . . . .Iow a S a v in g s .......................................... 25,000 C o u n c il B l u i f s . . . .C o u n c il B lu ffs S a v in g s ..................... . . .E . H . S p e t m a n ............ 150,000 C o u n c il B l u f f s .. . .S t a r e S a v in g s B a n k ............................ 100,000 C r a w fo rd s v ille . . ., .P eo p les S a v in g s ................................... 20,000 D a v e n p o r t.............. .D a v e n p o rt B a n k & T r u s t ................. 600,000 D a v e n p o r t.............. .F ir s t T r u s t & S a v in g s ........................ . . .F . A . J o h n s o n .............. 135,000 D e n is o n ................... . F i r s t N a t i o n a l ........................................ 100,000 D es M o in e s ......... .. .B a n k e rs T r u s t C o................................ 1,000,000 D es M o in e s ........... . .C a p ita l C ity S ta t e ............................... . , J . N . C o ffey ................ 150,000 D es M o in e s ......... .. .C e n tra l N a t i o n a l ................................. , . . J . R . C a p p e ................ 1,000,000 D es M o in e s .......... . J o w a -D e s M o in es N a t i o n a l .............. . . . H a r r y G. W ils o n ........ 2,500,000 150,000 D es M o in e s ......... ...V a lle y S a v in g s ..................................... 25,000 D e W i tt.................. D e W itt B a n k & T r u s t ..................... . . . J . Y vo F lo e r c h in g e r , D u b u q u e ................. . .A m e ric a n T r u s t & S a v in g s ............ 250,000 D u b u q u e ................. .¡ F ir s t N a t i o n a l ........................................ 300,000 D u n la p ...................... .D u n la p S a v i n g s ................................... 25,000 E m m e t s b u r g . . . . . Io w a T r u s t & S a v in g s ..................... 25,000 E s th e r v ill e ............ .E m m e t C o u n ty S t a t e ....................... 50,000 E s t h e r v i l l e .. . . . . .I o w a T r u s t & S a v in g s ..................... 50,000 F a r n h a m v ill e . . . . . S e c u r ity S a v in g s ................................. 25,000 F o r t D o d g e ........... , .T h e S ta te B a n k ..................................... 100,000 F o r t M a d is o n . . . ,. .F o r t M a d is o n S a v in g s ....................... . . .H . H . M o h r f e ld ......... 205,000 F o r t M a d is o n . . . , . Io w a S t a t e . ......... .................................. 100,000 105,000 F o r t M a d is o n . . . . .Lee C o u n ty S a v in g s ............................ . . . A . R . B e n h o w ........... 20,000 G a r w in ................... . .F a r m e r s S a v in g s ................................. G la d b ro o k .............. .S ta t e B a n k .............................................. 50,000 G r in n e l l................ . G rin n e ll S t a t e .............. ......................... 60,000 H a w a r d e n .............. .F ir s t N a t i o n a l ........................................ 50,000 H u m b o ld t.............. .H u m b o ld t T r u s t & S a v in g s ............ . . . J . L. C a m p b e ll........... 50,000 In d ia n o la .............. .P e o p l e s T r u s t & S a v in g s .............. . . .M . F . H e n d e r s o n . . . . 100,000 Io w a C i t y .............. .I o w a S ta t e B a n k & T r u s t ................ . . ,M . B. G u th r ie .............. 100,000 50,000 J e f f e r s o n ................ .J e ffe rs o n S t a t e ....................... ............. 75,000 J e s u p ....................... .F a r m e r s S t a t e ....................................... K e llo g g .................. .K e llo g g S a v in g s ................................... 25,000 25,000 K i r o n ....................... .K iro n S t a t e ............................................ . . . C . E. D a h l.................. 50,000 K n o x v ille . . . . . . . .C o m m u n ity N a t i o n a l . . ..................... 5,000 ¡L a u re l..................... .P e o p le s S a v in g s ................................... . . . H u g h C. M cC le ery . 60.200 L e M a r s .............. .. . .F ir s t N a t i o n a l . ..................................... ___ R . E . T o o l................... 50,000 L is b o n ..................... . L isb o n B a n k & T r u s t ..................... . . . G . L . H ill..................... 25,000 C. W . A n d e r s o n ......... M a d r id ................... . C itv S t a t e ................................................. 25,000 G. L . S e u le s ................ M a n s o n . . . . . . . . . M a n s o n S t a t e ....................................... 75,000 J o h n .l a r g o ................ M a q u o k e ta ............ . J a c k s o n S ta t e S a v in g s ..................... 100.000 A . T . D a v is ................ . M a r s h a ll to w n . . . ..F id e lity S a v in g s ..................... .. 50,000 M a r s h a ll to w n . . . . S e c u r ity S a v in g s ................................... . . C. E . O r r ..................... 25,000 M a r te lle ......... ..F a r m e r s S a v in g s ................................. 400.000 M a s o n C it y .......... . f i r s t N a t i o n a l ........................................ .. . W m . W . B o y d ............ . 100,000 . , „R. A . P o t t e r ......... .. . M a s o n C ity . . , . . . U n ite d H o m e B a n k & T r u s t .......... 50,000 M is s o u ri V a lle y . . F i r s t N a t i o n a l ....................................... . . . H . M. S ils b y ................ 75,000 K e n n e th W . R a s h . . M o n o n a ................... .U n io n S ta t e B a n k .............................. 50,000 . M o r n t V e rn o n B a n k & T r u s t. . . , . . D . U . V a n M e tr e . . . M o u n t V e rn o n 125,000 M u s c a tin e . . . . . . . . .C e n tra l S t a t e . ........................................ 125,000 M u s c a ti n e ............ . .M u s c a tin e B a n k & T r u s t ................ . . . B . L . M c K e e .............. 126,956 40,000 . .S ta te B a n k & T r u s t ............................ . . .H . T . F a w c e t t ......... 100,000 N e w to n .................... .J a s p e r C o u n ty S a v in g s ..................... . . . A . E . H in d o r f f ......... 100,000 N e w to n ................... . N e w to n N a t i o n a l . ............................... 15,000 N o rth w o o d ............ . N o rth w o o d S t a t e ................................... 40,000 O a k la n d ................ . .C itize n s S t a t e ....................................... . . .D . F . B u s s e .................. 35.000 O a k la n d ................ . .O ak la n d S a v in g s ................................. 50,000 O e lw e in ................ .. .F ir s t N a t i o n a l . . . . . . . . . . . . . . . . . . . . . M . C. H a n s o n ............ 20,000 O n s lo w .............. .. . . O n slo w S a v i n g s . ................................. 65,000 O r a n g e C ity . . . . . N o r t h w e s t e r n S t a t e ............................ 100,000 O s a g e ..................... . .O sa g e F a r m e r s N a t i o n a l ................ 300,000 O t t u m w a . . . . . . . . .U n io n B a n k & T r u s t .......................... 50,000 P e l l a ....................... . P e l l a N a t i o n a l ........................................ . . . H . P . S c h ö lte .............. 50,000 , . F ir s t N a t i o n a l ........................................ 25,000 . .C o m m e rc ia l S t a t e ..................... .. . . . . . 100,000 . . .O s c a r H e lg e rs o n . . ..H o u g h to n S t a t e ................................... 50,000 ..M o n tg o m e r y C o u n ty N a t i o n a l . . . . . . I v a n E ric k s o n . 25,000 R e in b e c k .............. ..L i n c o ln S a v in g s ................................... . . . J . W . H e p p e r le . . . . Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August Í9bl S u r p lu s a n d P r o f its $ 35,276 88,276 118,995 66,382 119,611 72,493 81,187 19,023 214,045 115,457 44,277 43,752 35,597 128,666 322,306 177,446 60,557 23,283 59,313 77,426 62,288 358,009 111,285 60,107 19,346 18,226 260,153 105,412 39,004 2,496,518 70,284 53,360 908,094 141,639 791.571 1,753,792 303,913 63,837 203,781 419,066 37,145 140,126 133,561 31,329 31,231 191,891 69,777 33,491 68,438 27,511 59,424 34,392 29,400 96,304 94,050 132,391 106,453 20,629 68,429 37,446 121,334 11,327 28,500 50,184 23,565 40,234 94,141 204,406 83,956 23,402 432,361 78,715 36,000 30,909 74,131 84,865 225,675 16,702 230,611 67,510 27,576 42,550 48,000 115,360 39,354 64,843 94,792 292,469 57,253 117,115 31,678 75,193 47,610 57,038 L oans and D is c o u n ts $ 602,558 821,174 902,213 642,135 885,694 1,896,673 1,194,489 248,312 2,449,698 1,482,303 498,840 562,539 372,483 1,476,924 9,972,653 3,031,667 179,972 350,975 370,720 938,243 583,391 2,747,425 322,473 523,291 284,760 295,422 3,103,206 1,532,772 248,852 9,891,584 1,880,892 665,493 11,316,477 1,510,119 11,665,025 16,795,041 3,897,474 562,701 1,606,101 1,646,456 270,848 740,411 1,249,960 477,901 329,734 1,976,617 704,622 202,849 542,955 168,573 634,264 552,756 284,239 886,704 750,871 1,774,504 805,658 160,603 514,032 276,118 867,914 167,140 239,464 380,136 355,243 496,747 1,542,003 1,112,966 925,656 160,287 3,512,901 1,615,854 219,938 124,816 547,797 986,372 1,327,313 671,468 311,546 2,809,432 650,869 208,095 504,848 533,950 369,346 343,826 752,070 714,957 2,187,621 631,432 851,755 404,426 1,292,017 582,228 703,577 Bonds and S e c u r itie s $ 50,065 304,158 759,547 495,053 525,621 238,875 493,469 83,430 302,163 1,114,104 54,502 147,007 705,376 1,088,904 15,136,201 791,578 822,957 265,734 610,316 103,904 147,068 1,976,887 481,215 165,708 95,175 69,911 677,445 272,748 47,900 15,319,724 741,588 345,564 6,201,767 1,136,693 10,117,884 15,064,632 483,790 46,490 3,077,990 1,550,863 143,569 129,227 360,649 248,765 406,372 1,725,003 373,686 872,964 133,883 30,700 82,500 135,371 265,684 526,593 305,651 369,289 692,901 170,542 48,500 182,447 49,477 457,430 91,370 100,762 104,914 43,960 1,033,239 500,734 117,760 3,421,276 57,085 412,939 194,182 85,400 1,326,066 1,932,938 276,438 19,400 393,565 425,604 95,215 166,499 118,400 813,471 108,700 22,500 414,669 2,142,221 570,609 101,765 157,276 574,354 193,153 61,780 C a sh a n d D u e D e p o sits F ro m B a n k s $ 120,948 $ 709,185 1,841,989 833,558 403,283 1,847,241 522,066 1,554,686 611,160 1,871,349 815,511 2,741,926 790,864 2,340,240 251,683 518,948 2,674,407 5,148,392 1,795,922 4,124,352 56,974 543,754 547,779 1,183,592 642,378 1,629,463 1,202,715 3,438,253 15,413,287 38,756,540 1,960,211 5,427,195 658,136 1,524,066 304,125 853,276 607,192 1,488,189 939,824 1,794,182 462,837 1,098,578 2,054,196 6,060,203 1,030,109 1,691,186 253,723 863,936 161,766 502,078 106,856 429,541 1,389,283 4,865,371 434,757 2,034,506 144,767 387,278 9,516,628 31,713,335 1,445,125 3,741,299 217,437 1,090,106 8,893,207 24,358,265 659,273 3,085,266 10,288,857 30,139,589 19,610,863 48,703,069 2,487,749 6,440,357 448,719 974,573 1,644,998 5,839,625 2,708,063 10,162,861 104,395 461,221 376,383 1,081,830 754,607 2,198,846 250,555 919,589 93,260 368,050 981,598 3,084,929 1,371,101 3,518,889 234,357 687,869 532,543 1,800,687 80,274 337,050 257,709 820,191 597,860 1,156,266 119,354 474,839 395,593 1,370,787 685,528 1,793,591 1,246,651 3,163,065 681,304 1,709,905 204,316 941,609 152,449 751,401 59,825 323,702 449,015 1,328,586 95,760 276,929 222,213 874,445 311,127 686,026 125,790 535,776 256,363 794,544 805,118 2,251,089 2,503,399 4,403,952 727,947 2,041,135 66,414 296,574 2,559,318 9,006,737 2,593,649 1,070,101 223,484 777,441 356,444 597,098 284,617 790,912 683,131 2,771,374 3,070,718 6,007,546 321.046 1,166,222 98,543 383,715 903,853 3,800,106 409,485 1,365,899 220,806 483,460 145,263 744,838 186,971 753,697 818,607 1,866,466 72,363 465,535 562,679 1,218,940 323,452 1,273,011 2,577,739 6,449,990 654,697 1,755,541 496,149 1,301,329 117,588 613,101 738,889 2,459,689 553,414 1,248,893 184,983 879,021 51 W H A T IO W A STATEM ENTS S H O W (C o n tin u e d f r o m p a g e 50) TOW N BANK C A S H IE R R o c k V a l l e y . . . . . .V alley S t a t e .......................................... S t. A n s g a r . . . . . . .S t. A n s g a r C itiz e n s S t a t e .............. S h e ld o n .............. . . . S e c u r i t y S t a t e ..................................... S h e n a n d o a h . . . . . . S e c u r i t y T r u s t & S a v in g s ............ S io u x C ity . . . . . . . F i r s t N a t i o n a l ............................ ........ S io u x C ity . . . . . . . L iv e S to c k N a t i o n a l ........................ ------W . C. S c h e n k ............... S io u x C i t y . . . . . . . S e c u rity N a t i o n a l ..................... .. S io u x C i t y . . . . . . . T o y N a t i o n a l . . . . . . . . . . . . . . . . . . S io u x C ity . . . . . . . W o o d b u ry C o u n ty S a v in g s .......... . . . ,C. T . M c C l i n t o c k . . . . S p e n c e r .............. . . .C la y C o u n ty N a t i o n a l ..................... S p e n c e r .............. . . . F a r m e r s T r u s t & S a v in g s ............ . . . .K . R . T u t t l e ................ S to r m L a k e . . . . . . C itiz e n s F i r s t N a t i o n a l ................... S to rm L a k e . .. . . . C o m m e rc ia l T r u s t & S a v i n g s . . . S t r a t f o r d ............ . . .F a rm e rs S a v in g s .............................. . . . .E . J . J o h n s o n .............. S t u a r t . . . . . . . . . . . F i r s t N a t i o n a l ............................ ........ T o le d o ................ . . . N a tio n a l B a n k o f .............................. V i n t o n ................ . . .S ta te B a n k o f ..................................... .H o r a c e B. H a m m e r . . W a p e llo . . . . . . . . . .S ta te B a n k o f ....................................... W a s h i n g t o n .. . . . . N a tio n a l B a n k o f .............................. . . , . E . F . M iic k ................... W a s h i n g to n . . . . . . W a s h in g to n S t a t e ............................ W a te r lo o ............ . . .N a tio n a l B a n k o f .............................. . W a te r lo o ............ , . .W a te rlo o S a v in g s .............................. .. . . . J . J . M ill e r ................... W a y la n d ............ . . . W a y la n d S t a t e ................................... W e s t B e n d . . . . . . . I o w a S t a t e ............................................ Offering " P A Y C " Plan T he addition of th e S tate Savings Bank, Council Bluffs, and th e Council Bluffs Savings B ank to th e ra n k s of those now offering th e “PAYC” (Payas-You-Check) no - m inim um - balance checking account plan com pletes th e score in Council Bluffs, so th a t now th is city is 100 p e r cent for the “PAYC” plan. T he o th er tw o Coun cil Bluffs banks, th e City N ational B ank and th e F irs t N ational B ank, have been offering th e “PAYC” sys tem for several years. Over 100 m id-w estern b an k s have installed th e “PAYC” checking plan, according to th e U nited States Check Book Com pany, its originator. The system is sold w ith com plete m erch an dising aids, including new sp ap er ad C a p ita l 35,000 50,000 50,000 60,000 400,000 250,000 250,000 300,000 100,000 85,000 100,000 75,000 50,000 20,000 35,000 80,000 65,000 25,000 80,000 50,000 250,000 175,000 25,000 20,000 S u r p lu s a n d P r o f its 55,392 35,760 43,723 66,576 198,335 304,893 265,874 375,427 131,608 99,712 81,445 226,240 47,525 17.458 37,893 73,715 118,035 18,947 48,135 118,241 325,777 227,158 37,900 28,575 m ats, posters, displays, etc., and, ac cording to th e check book firm, the plan is being operated successfully and profitably in alm ost every in stal lation. F re e lite ra tu re and com plete in fo r m ation is available to in terested b a n k ers w ho w ill w rite to th e check book com pany. W ater Transportation Clinton, Iowa, is am ong th e m any riv e r tow ns in Iow a and o th er states w hich stan d to g reatly benefit by th e recen t expansion and re su lta n t in crease in tra n sp o rta tio n on th e Mis sissippi R iver, according to E dw ard M. W arner, p resid en t of th e City N a tional Bank. T he M ississippi R iver is now controlled by locks and dam s L oans and D is c o u n ts 553,333 528,499 419,037 599,759 3,034,479 3,450,252 3,687,499 2,694,614 1,876,864 862,367 1,343,000 1,092,898 342,954 197,200 204,678 720,616 844,541 300,780 422,849 549,907 3,065,127 3,113,405 278,964 295,083 Bonds and S e c u r itie s 128,122 111,189 141,179 352.199 1,797,390 1,219,430 853,707 3,617,058 735,778 530,913 315,264 225,883 248,500 76,200 125,600 222,318 407,830 45,985 335,522 356,232 3,088,420 1,486,862 145,077 74,373 C a sh a n d D ue F ro m B an k s 289,555 528,499 396,425 628,329 2,587,547 3,345,861 4,117,095 3,842,423 597,014 865,168 487,327 1,167,444 142,912 129,289 137,105 378,847 675,406 221,027 770,183 717,603 2,758,372 2,858,794 186,258 104,720 D e p o sits 887,806 801,500 880,953 1,462,567 6.944,671 7,396,185 8,321.118 9,644,201 2,954,360 2,101,145 2,011,141 2,170,173 649,330 367,521 406,810 1,178,793 1.763,599 521,008 1,398,121 1,472,877 8,321,562 7,164,808 546,837 433,521 all th e w ay from M inneapolis to New Orleans, and Clinton has new riv er docks and Dam No. 13 is located there. A significant expansion of w ater traffic on all sections of th e M ississippi R iver is rep o rted for 1940 by the U nited States E n g in eer for th e Mis sissippi V alley D ivision w hose detailed statistical p resen tatio n of th e 1940 traffic reveals a su b stan tial increase in th e volum e of so-called package freig h t handled by carriers on the M ississippi R iver, along w ith a con- FOR B A N K S ty a c ti. a b o u t MC H EC K S! 1. S a v e s c h e c k e x p e n s e ! M o n o g r a m m e d ch ecks a re sold to c u s to m e r . . . 200 fo r only $1. 2. A p p eals to cu s t o m e r im m e d ia te ly as a g r e a t deal of p r e s t i g e goes w i t h t h e u s e of p erso n a l checks. 3. N o t a n o r d i n a r y a p p e a r i n g check. E v ery o n e likes its m o d e r n des ign. I n d iv id u a l’s m o n o g r a m is p o p u l a r a n d p r o v id es v e r y p e r so n a l element. 4. B e a u tif u lly p r i n te d in T W O colors in ste a d of th e c u s t o m a ry one color. 5. Available in choice of T H R E E col ors of S afety P a p e r —Azure, Corn or Stone. 6. N u m b e r e d c o n s e c u t i v e l y — p r o m o tes c u s t o m e r ’s reconciliation of balan ces, an i m p o r t a n t ed u cational fe a t u re g o in g f a r t o w a r d s elim in atin g ov erd ra fts. Write for Free Estimates AND Wri te t oday f or F REE C OU N T E R DI S PL AY and I N F OR M A T I ON ! CO M PAN Y United S tates Check B ook Co. DES MOINES O M A H A . N E BRA SKA Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19bl 52 . tin u in g gain in th e volum e of bulk freight. Both n o rth b o u n d and southbound M ississippi R iver package and b u lk freig h t in 1940 to taled 16,565,226 tons. T his com pares w ith 13,908,817 tons of freig h t handled on th e M ississippi R iver system in 1939. F o r th e y ear 1940, upbound traffic handled on th e M ississippi R iver in th e v ario u s divisions com prising th e riv er system from th e m o u th of th e passes to M inneapolis, consisted of 4,166,207 tons of freight, th a t b oth IOWA NEWS • o riginated and term in ated on th e Mis sissippi. A to tal of 2,732,433 tons th a t o riginated on th e M ississippi moved n o rth w ard s and th e n to destinations rem oved from th e riv e r itself, 1,751,435 tons of traffic th a t came to the M ississippi from o ther th a n M issis sippi origins and w as handled via th e M ississippi to final destinations re m oved from th e riv e r area. New Bank Building “M odern, convenient and safe, b u t not e x trav ag an t.” T h at is th e description given for th e new hom e of th e F a rm e rs & M erchants Savings B ank of O ttum w a, now being constructed on E a st Second S treet a t a cost of ap proxim ately $40,000. The tw o-story building, form erly ow ned by th e L ow enberg B akery an d occupied u n til recen tly by th e H of m ann D rug Company, w as purchased by th e b an k for its p erm an en t home. E stablished m ore th a n a q u a rte r cen tu ry ago, th e in stitu tio n has ren ted q u a rte rs in th e F ra sie r H otel building (now th e M ilner H otel) a t Second and C ourt Streets. W oodbury Sanborn Dead W oodbury Sanborn, 72, life-long resi dent of Sioux City and pro m in en t citi zen, died last m o n th a t his hom e th ere afte r a six m o n th s’ illness. A lthough Mr. S anborn w as for m any y ears in th e in surance business, he be gan his career as a banker, being first connected w ith th e Iow a Savings B ank of Sioux City, and later w ith th e N a tional B ank of Sioux City. Federal Reserve Member " T r u e o r F a ls e " Statem ent . . . "Your ban k ca n sa fe ly entrust ALL of its Sioux City item s to the First N ation al Bank in Sioux City" A nsw er . . . This statem ent is TRUE. This bank IS eq u ip p ed to h a n d le your com p lete correspondent b u sin ess in Sioux City, in clu d in g com m ercial item s, livestock, grain a n d h a y item s. Try First N ation al service! M EM BER FED ERA L D E P O S IT IN S U R A N C E C O R P O R A T IO N IN SIO U X C IT Y The Citizens S tate B ank of Clarinda, Iowa, has been adm itted into m em ber ship in th e F ed eral R eserve System , the F ederal R eserve B ank of Chicago announced recently. Returns to Iowa Jo h n P o rter, w ho up u n til a few m onths ago w as em ployed in th e Rock Rapids S tate Bank, has been appointed an a ssistan t exam iner in th e Iowa State B anking D epartm ent. Mr. P o rter left Rock R apids th is sp rin g to go to California, w here he w as affiliated w ith the B ank of Am erica. Pay Trust Fund Some 500 persons w ho hold tru s t certificates of th e depositors’ tru s t fund of th e K iron S tate B ank w ere slated to receive alm ost $48,000 in dividends at th e bank last m onth, or w h en th e ir certificates w ere presen ted for p ay m ent. The am ount rep resen ts th e rem ain ing 40 per cent of th e tru s t fund, six 10 per cent dividends having been re leased prio r to th e p resen t dividend. YO UR STATE BANKERS ASSO CIATIO N O FFICIA L SA FE, V A U L T AN D TIM ELOCK EXPERTS F. E. DAVENPORT & CO. OM AHA Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19^1 t 53 • IOWA NEWS • * New Bank Employe Miss M argaret H arris, w ho h as been em ployed in th e F a rm e rs & M erchants Savings B ank at M anchester, h as ac cepted a sim ilar position in th e F irs t N ational B ank a t M ason City a n d a s sum ed h e r d uties Ju ly 28th. Named Assistant Cashier G. H. B allard, fo rm erly of Ackley, last m o n th w as elected a ssista n t cash ier of th e Iow a F alls S tate B ank a t a m eeting of th e b oard of directors. He had been w o rk in g w ith th e b an k a week. A long tim e re sid e n t of Ackley, Mr. B allard w as fo rm erly a ssista n t cashier of th e A ckley S tate B ank. Visits Old Friends E llis D. Robb and J. S. M cClain of A tlanta, Georgia, are in E ld o ra for a visit w ith old friends. Mr. Robb is a n ativ e of E ldora, a fo rm er m ayor of the tow n and also a t one tim e cashier of th e H ard in C ounty B ank. L a te r he served as state b an k exam iner and for y ears as chief n atio n al b an k exam in e r in n ine so u th e rn states, w ith h e a d q u a rte rs in A tlanta. H e is now retired. Mr. M cClain is also a n atio n al b an k exam iner, h aving for y ears w orked u n der th e direction of Mr. Robb. New Bank Opens T he N o rth w est B ank and T ru st Com pany, D av en p o rt’s new state-ch ar tere d bank, has opened for business. The b ank has a capital stock of $100,000 and a paid-in su rp lu s of $25,000. It is D av en p o rt’s th ird bank. T he new b an k is housed in th e old N o rth w est D avenport Savings B ank Building, located in a su b u rb an b u si ness d istric t in th e n o rth w e st p a rt of th e city. P re sid e n t of th e new b an k is H en ry H. Jebens, law yer and recen tly elected p resid en t of th e D avenport board of education. He is p ro m in en t in R epub lican politics. O ther officers are H. C. L ynn, execu tive vice p resid en t and cashier, w ho has been associated w ith th e state ban k in g d e p a rtm e n t for 15 years, and Lloyd W. From m e, a ssista n t cashier. bro th er, th e late H a rry H. T u rn er, held th e position from 1932 u n til his death in an auto accident last m onth, and p rio r to 1932 th e ir fath er, Daniel W. T u rn er, headed th e bank. Jam es Holmes, w ho has been as sista n t cashier, w as nam ed cashier to succeed th e late E lda C hristians. Mrs. Speers, H olm es and H en ry C ram er w ere elected to th e board of directors. Hold-over directors are Jo h n Cram er, vice presid en t of th e bank, and Lou Luiken. More th a n 350 persons hold stock in th e new concern. Elected Bank President Mrs. C harles H. Speers of E ldora, th e form er Nellie T u rn er, w as elected p resid en t of th e F a rm e rs Savings B ank at Steam boat Rock a t a m eeting held last m onth. E lection of Mrs. Speers continues th e presidency of th e Steam boat Rock b an k in th e T u rn e r fam ily, as h er T \ M e L ive St o c k â N a t io n a l B a n k -c fí UNION STOCK Xd Á Í C O YARDS STATEMENT TELEPHONE OF YARDS 1220 CONDITION June 30, 1941 RESOURCES Cash and due from b a n k s ...........................................$ 2 0 ,2 7 5 ,9 1 3 .2 3 U n ite d States G o v ern m en t se c u r itie s ................... 2 ,3 0 8 ,5 5 3 .4 4 State and m u n icip al se c u r itie s ................................. 7 7 1 ,1 5 4 .0 1 1 ,1 2 4 ,9 8 5 .2 4 O th er m ark etab le b o n d s ............................................ L oans and d is c o u n ts ..................................................... 5 ,7 9 1 ,9 5 6 .0 0 Federal R eserv e B ank s t o c k ..................................... 7 5 ,0 0 0 .0 0 B ank b u ild in g .................................................................. 4 5 0 ,0 0 0 .0 0 Furniture and e q u ip m e n t............................................ 1.00 In terest earn ed , not c o lle c t e d .................................. 3 6 ,7 3 4 .4 8 C urrent r e c eiv a b les and o th er a s s e ts .................... 1 0 ,5 6 6 .3 7 $ 3 0 ,8 4 4 ,8 6 3 .7 7 LIABILITIES C a p ita l................................................................................. $ 1 ,0 0 0 ,0 0 0 .0 0 S u r p lu s................................................................................ 1 ,5 0 0 ,0 0 0 .0 0 U n d iv id e d profits and r e se r v e s................................ 1 2 9 ,9 4 9 .4 0 U n ea rn ed d is c o u n t........................................................ 3 0 ,3 9 8 .9 5 D e p o s it s ............................................................................. 2 8 ,1 8 4 ,5 1 5 .4 2 $ 3 0 ,8 4 4 ,8 6 3 .7 7 BOARD OF DIRECTORS Fr e d e r ic k H. P r in c e A r t h u r G. L e o n a r d Providence, R. I. President, Union Stock Yard & Transit Co. R o b e r t J. D u n h a m W illia m J. O ’C o n n o r Investments Ass’t General Manager, Union Stock Yard & Transit Co. R ic h a r d H a c k e t t Geiieral Manager, Central Manufacturing District R a l ph M. Sh a w Winston, Strawn & Shaw O r v is T . H en kle T h o m a s e . W il so n Vice-President and General Manager, Union Stock Yard & Transit Co. Banks Sold or Bought! Chairman of the Board, Wilson & Co., Inc. D a v id H . R eim ers President, The hive Stock National Bank of Chicago quietly, quickly and in a personal manner JA Y A. W E L C H H addam , K ansas “35 years Practical Banking Experience.” SERVING AGRICULTURE ffv n c e M E M B E R F E D E R A L D E P O S I T AND INDUSTRY J8 6 8 I N S U R A N C E C O R P O R A T I O N Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19hi 54 • IOWA NEWS • H en ry T rebelhern, w ho has been em ployed in th e Iow a S tate B ank at W est Bend, re tu rn e d to his hom e in W inthrop, M innesota, w here he w ill answ er his d ra ft call. E. M. Saugstad of M ankato, M innesota, w ill succeed Mr. T rebelhern. B unce has been w ith th e d ep artm en t since 1921. H e has been deputy su p er in te n d en t since 1933. T he appointm ent was confirm ed a t a recen t m eeting of th e banking board, E llis said. He also disclosed th e ap p ointm ent of E d w ard W ilkinson of M ason City as an a ssistan t b an king exam iner. Bunce Reappointed Buys Bank Building M elvin W. Ellis, Iow a S tate S u p erin ten d e n t of B anking, recen tly a n nounced th e reap p o in tm en t of R alph Bunce as dep u ty su p erin ten d en t. The Iow a Savings B ank at Dike has bought th e building in w hich it is do ing business from Carl A ndersen. W hen the new b ank at Dike m ade Answers Draft Call a five-year lease for th e banking room in th e building tw o y ears ago, th ey in cluded an optional buying clause w hereby th ey could purchase the building du rin g th e period of th e lease for a consideration of $3,600. The op tion w as exercised by th e b an k now. G oes to Mason C ity Miss R u th Clasen has accepted a position in th e F irs t N ational B ank a t M ason City and began w o rk th e re A ug u st 1st. She w ill be succeeded in th e Iow a T ru st and Savings B ank by Mrs. M aurice Jo rd an of E m m etsburg. To Erect New Building The First N a tio n a l Bank of C hicago New Bank Opened Statem ent of Condition June 30, 1941 a s SETS Cash and D u e from B anks, . . . . . . U n ited States O b ligation s—Direct and fully Guaranteed, $ 4 4 7 ,2 5 5 ,6 2 7 -4 8 U n p led g ed , . . . . . $ 3 6 1 ,5 2 9 ,2 5 6 .2 3 P led ged —-To Secure Public Deposits and Deposits Subject to Federal Court Order, 4 5 ,6 8 5 ,1 6 6 .7 3 To Secure Trust Deposits, . 4 1 ,4 8 6 ,1 8 6 .6 2 Under Trust Act of Illinois, . . 4 4 9 ,2 2 0 ,1 1 9 .1 2 5 1 9 ,5 0 9 .5 4 . O ther B on d s and Securities, • Loans and D isco u n ts, . Real Estate (B a n k B uilding), . O ther R eal Estate, . • Federal R eserve B an k Stock, C ustom ers’ Liability A cco u n t o f A cceptances, . Interest Earned, n o t C ollected, . O ther A ssets, . . . . 7 7 ,3 1 9 ,6 8 7 .5 3 3 5 4 ,1 3 2 ,7 4 8 .9 0 5 ,1 8 7 ,3 1 2 .8 3 881 ,0 4 1 .2 1 2 ,1 0 0 ,0 0 0 .0 0 1 ,7 6 5 ,5 1 3 .6 7 3 ,0 2 2 ,9 9 5 .2 4 1 4 5 ,6 0 2 .8 3 $ 1 ,3 4 1 ,0 3 0 ,6 4 8 .8 1 LIABILITIES C apital S to ck —C o m m o n , Surplus F und , . . .$ . . 3 0 ,0 0 0 ,0 0 0 .0 0 4 0 , 0 0 0 ,0 0 0 .0 0 O ther U n d iv id e d Profits, D iscou n t C ollected but n o t Earned, D ivid en d s D eclared , but U n p a id , 3 ,9 4 8 ,9 3 3 .2 2 R eserve for T axes, etc., Liability A cco u n t o f A cceptances, 2 ,4 4 1 ,6 0 7 .0 0 T im e D eposits, . D em an d D ep osits, . . . Northwestern Banker August 19bi The R u th v en S tate B ank began b u si ness last m onth, w ith a large crow d of people g ath erin g a t its place of busi ness to w elcom e th e new in stitution. P ro m in en tly displayed in th e lobby of th e new b an k w ere large and beau tifu l b askets of flowers from o th er banks. Those banks w ho sen t th e flowers are as follows: Toy N ational B ank of Sioux City; Iowa-Des M oines N ational B ank & T ru st Com pany of Des Moines; C entral N ational B ank and T ru st Com pany of Des Moines; N o rth ern T ru st Company, Chicago, Illinois; F irs t N ational B ank of M ason City; F a rm e rs T ru st & Sav ings B ank of Spencer, an d th e Clay County N ational B ank of Spencer. W. W. L inebarger, w ho w as assist a n t cashier of th e F irs t N ational B ank of Clarion and la te r cashier of th e b ank a t B attle Creek, is cashier, and W m. B rennan, w ho has been associ ated w ith banks in R u th v en for m ore th a n tw en ty years, is a ssistan t cash ier. 7 3 2 ,7 7 1 .8 7 7 5 0 ,0 0 0 .0 0 1 ,8 7 9 ,2 3 8 .7 2 $ 1 8 4 ,1 3 4 ,8 6 0 .0 5 9 6 2 , 3 3 0 ,0 1 6 .1 7 1 1 4 ,8 1 1 ,1 3 0 .1 2 1 ,2 6 1 ,2 7 6 ,0 0 6 .3 4 D eposits o f P ublic Funds, 2 ,0 9 1 .6 6 Liabilities oth er than th ose above stated, $ 1 ,3 4 1 ,0 3 0 ,6 4 8 .8 1 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T he Am es T ru st and Savings B ank has plans com plete for th e new b ank building th ey w ill erect ju st n o rth of th e F arew ay Grocery. I t w ill be one story, 50x78 feet, and w ill be m ost com plete in every detail. T hey ex pect to s ta rt construction of th e new stru c tu re w ith in a m onth. T his w ill be A v ery fine im provem ent. Celebrates 81st Birthday A ugust F reund, head of A. F re u n d and Company, dealers in m erchandise, farm m achinery and autom obiles, and p resid en t of th e A m erican T ru st and Savings B ank of Low den, observed his eighty-first b irth d a y last m onth. C apable e x p e rien ce d b an k er w a n ts p o sitio n . C a sh ier or a s s is ta n t, w ith in v e s t m ent. P r e fe r n orth h a lf Iow a. C. W . N o r th w e s te r n B ank er. 55 •MINNESOTA Set High Marks Des M oines b an k s set new all-tim e high m ark s in resources an d deposits on Ju n e 30th, date of th e la te st b ank call. R esources of the eight b anks th e re stood a t $127,312,285, as com pared to $119,889,519 as of th e b an k call on De cem ber 31, 1940, and $108,766,528 as of th e b an k call on Ju n e 29, 1940. D eposits show ed a sim ilar u p w ard clim b, w ith a p re se n t to tal of $116,722,410. T his is a gain of n early $7,000,000 over th e $109,885,289 of deposits a t th e beginning of 1940, and $18,000,000 m ore th a n th e $98,705,892 deposits volum e of a y e a r ago. Loans and discounts, w ith a to tal of $46,678,950, show ed a gain of $4,400,000 over those of six m onths ago, b u t w ere slig h tly u n d e r those of a y e a r ago, w h en th e loan figure stood a t $47,008,339. Cash on h an d and funds due from b an k s to taled $43,899,489. T his is v ir tu a lly a m illion dollars u n d e r th e to tal reg istered six m o n th s ago, b u t m ore th a n seven m illion dollars g re a te r th a n th e to tal for a y e a r ago. U nited S tates bond holdings in creased from $18,892,096 a y e a r ago to $22,123,639. In v e stm e n t in o th er secu ritie s rem ain ed v irtu a lly statio n ary . T he p re se n t to tal of th ese o th ers is $12,115,866, as com pared to $11,772,153 a t th e beginning of 1940. Myers Gravely III M ark J. M yers, 65, w ho rose from m essenger boy to th e position of vice p resid en t and cashier of th e M erchants N ational B ank of Cedar R apids, su f fered an acute illness a t th e b an k re cently and w as ru sh e d by am bulance service to St. L u k e’s H ospital. A lthough becom ing conscious sh o rt ly a fte r arriv al, he w as rep o rted as in “grav e condition” by his physician. Mr. M yers becam e affiliated w ith th e b an k in 1900. Former Banker Dies F ield er W. C onverse of Los Angeles, fo rm erly cashier, an d la te r p resid en t of th e old Iow a Savings B ank of E stherville, died in C alifornia of a h e a rt attack. New Federal Reserve Member T he F ed eral R eserve B ank of Chi cago, Illinois, last m o n th announced th a t th e Com m ercial Savings Bank, L ohrville, Iowa, has been ad m itted to m em b ersh ip in th e F ed eral R eserve NEWS* System . Officers of th e b an k are: F re d S. Buffman, president; G. W. E vans, executive vice p resid en t and cashier, and F ra n k L. Sm ith, a ssistan t cashier. County Bankers Meet T he D elew are County B ankers Asso ciation m et at th e E arlville G rill in E arlville recently. A d in n er w as served at six th irty o’clock, followed by a business m eeting. E leven w ere p re sen t as follows: E v e re tt W rig h t and F ra n k Irish of H opkinton; A. A. Schm idt and Dan S ch n ittjer of Delhi; J. H. B urbridge and Mr. Cooley of M anchester; Clifford G rim es and Mr. B ush of Colesburg; Carl Laxson, Searles Bisgrove an d W ill H u n t of Earlville. Bank Remodeled W hen you step into th e F irs t State B ank of Coon R apids you w ill find th e sam e fam iliar faces th ere b u t m ost Reprint from Northwestern Banker, Des Moines Correspondent Bank Service What the What the Country Banker Cita Banker to ^^Pousiness.’ Says: Letter No. 2 "Friends get what they ask for" “R egarding suggestions as to things a country banker could do to im prove and m ake m ore valuable the service rendered by his city correspondent, here is one, in a few words: “Pick out the m an in his correspondent bank who is the m ost fam iliar w ith country conditions, then culti vate him and become intim ately ac quainted w ith him. Keep him full of inform ation regarding good things as w ell as bad things. If he is a real executive handling country bank ac counts he will like it and become a close friend. The re su lt is friends generally get w hat they ask for from friends (plus a lot of extras). “Maybe this sounds a little am ateur ish, bu t afte r m ore th%n th irty years of experience I know it w orks.” T L The Country Banker Speaks: — F ROM tim e to tim e th e N orthw est ern B anker h a s c o n d u c te d s u r v e y s on c o rre s p o n d e n t h a n k r e la tio n s h ip , T h e p re v io u s s u r v e y w a s m a d e te n y e a r s ago. M an y th in g s v ita lly affectin g h a n k in g a n d fin an cial in te r e s ts o f a ll k in d s h a v e h a p p e n e d d u r in g th e s e te n y e a rs . By no w . h o w e v e r, bu sin e s s a n d b a n k in g c o n d itio n s h a v e m R j w e re s e n t to l.uoo » Io w a, M in n e so ta . N e b ra sk a . .' k o ta a n d S o u th D akota. c e n ta g e s a n d o th e r in fo rm a p e a rin g in th e c h a r ts w e re lak i re p lie s re c e iv e d to th e quesli« T o o b ta in u n b ia s e d o p in io n s, w e re a s k e d n o t to s ig n th ei o r n a m e s of th e ir b a n k s. D E FIN IT IO N O F D R O V ER S SE R V IC E etter The fundam ental purpose of Drovers Service seek close acq u ain tan cesh ips and build the is to serve Correspondents thoughtfully, a c warm friendships that m ake for better un curately, quickly. derstanding. But eq u ally elem en tal are Today, w h en all e y e s are turned on b u si the important considerations that m ake your n e ss exp an sion and the N ational D efense relationships with Drovers friendly, an d a Program, source of personal satisfaction to you. more important than ever. That's elem ental. The correspondent relationships officers are bankers of long exp erien ce. They a correspondent in C hicago, and w e invite are gen u in ely interested in conditions and your b anking problem s in your com munity. They attention. inquiry, w h ich w ill receive prompt Drovers Service is P lanned to Meet Your Needs -. >Z * ■ DROVERS RATIONAL BARR DROVERS TRUST 0 SAVINGS BANK UNI ON S TOCK Y A RDS , CHI CAGO ....... ■- M em bers, F e d e r a l D epo sit In s u ra n c e C o rpo ra tio n Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis are You n eed such August 19M 56 ev ery th in g else is changed, and th e change is a decided im provem ent. The old fashion grille, sep aratin g p a tro n s from b an k officials, has been re m oved and replaced w ith a n eat ma- M ERCHANTS MUTUAL B O N D IN G CO M PA N Y Incorporated 1933 H o m e Office V A L L E Y B A N K B U IL D IN G Des M oines, Iowa ® • This is Iowa’s oldest surety company. A progressive company with experi enced, conservative management. We are proud of our hundred and fifty bank agents in Iowa. To be the exclusive representative of this company is an asset to your bank. W r ite to E. H. W ARNER S ecr eta ry and M an ager hogany finished panel, low enough so p a tro n and b an k er can ta lk face to face and w ith o u t peering th ro u g h bars. I t ’s a new idea adopted by m ost m od e rn banks. The outside w oodw ork of th e bank has been rep ain ted and all the inside of th e m ain b anking room rep ain ted and redecorated and Venetian blinds h u n g at all th e windows. To com plete th e m odernization new floor covering is to be laid in th e w orking space back of th e b a n k ’s counters. Spencer Re-elected W. L. Spencer w as re-elected p resi den t of the O akland Savings B ank at th e an n u al m eeting of stockholders held last m onth. T he follow ing offi cers and directors w ere also re-elected. H. H. Spalti, vice president; J. J. E vans, cashier; D. J. Spencer and H. R. Spencer, a ssistan t cashiers, and E. E. Spalti and W. L. W hite, directors. “A satisfacto ry increase in business activ ity w as noted for th e p ast y ear,” Spencer said, “w ith a m arked increase in deposits along w ith loans and dis counts. E arn in g s w ere satisfactory.” Veteran Banker Dies C harles L. McMinn, 56, associated w ith O ttum w a banks for 37 years, died recently. Mr. McMinn h ad been in poor health for some tim e. He had been connected w ith th e O ttum w a Savings Bank, th e O ttum w a N ational B ank and a t th e tim e of his death w as w ith th e U nion B ank and T ru st Company. Iow a’s L argest B usin ess T raining School Many banks, bond-houses, insurance companies and other financial in sti tutions employ A. I. B. graduates. W rite or telephone when you need efficient office employes. E. O. FENTON, President American Institute of Business DES MOINES 10th and Grand Tel. 4-4203 HOME J F e d e r a l S a v in g s AND LOAN ASSOCIATION OF DES MOINES — ou r F ed era lly In su red u p to $ 5 ,0 0 0 savin gs a ccou n ts are th e so lu tio n to you r in v e st m e n t and trust p ro b lem s. C urrent d iv id en d 3T4 p ercen t. Statem ent on request. 414 Sixth Avenue D es M oines, Iowa A ccepts New Position W ilfred N elson of W akefield, K an sas, began w ork in th e State B ank of A llison last m onth. Mr. N elson had been em ployed by a b ank in W akefield for 13 y ears before com ing to Allison. Bates G oes to Washington D. W. Bates, form er Iow a S uperin te n d e n t of B anking, has joined th e liquidation division of th e F ederal De posit In su ran ce C orporation a t W ash ington. Branch Bank Discontinued The R alston b ran ch of th e Security Savings B ank of S cranton w as discon tin u ed Ju ly 1st, due to insufficient vol um e of business to pay for m ain tain ing th e office. All accounts have been tra n sfe rre d to th e Scranton Bank. Install Cooling System KOCHBROTHERS PRinTERS - B00HBII10ER5 - OFFICE OUTFITTERS STOTIOliERS - B USI fl E55 fWKHinES GRfllìD n V E n UE Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis AT FOURTH August 19bl P a tro n s and em ployes of th e Com m u n ity N ational Bank, K noxville, are not com plaining about th ese hot days, at least w hile in th e bank, for th e new air conditioning u n it is m ain tain in g a cool 75 degree tem p eratu re, regardless of w h a t it m ay be outside. jUcUAJL&it G & it Our policy provides a maximum assessment of 2 / i % in Zones One and Two—and 3^2% in Zone Three (Western Iowa). Hawkeye Mutual Hail Insurance Association Carver B ld g. Fort D o d g e, Iow a 57 c IO W A FRO M N EW S H ERE A N D TH ERE By J. A . Sarazen, Associate Editor ANKERS of F ayette cou n ty got to g e th e r a t Oelwein on Ju ly 29th, for th e ir a n n u al m id-sum m er business and social m eeting. A sh o rt business m eet ing w as held, w hich w as follow ed by golf and o th er e n te rta in m e n t and dancing in th e evening. The A m erican Savings Bank, Trip oli, reduced in te re st rates, effective Ju ly 1st, from 2V2 to 2 p er cent. J. A. T hom pson, a ssista n t cashier, Cresco U nion Savings B ank, w as nam ed to serve on th e board of direc to rs to succeed Dr. W m. Connolly, re cently deceased. A rnott A rgali has joined th e State Savings B ank, L aw ler, and w ill a s sum e th e d uties of a ssista n t cashier, effective A ugust 1st. He succeeds E dith S ealley, w ho is leaving th e bank. The D ecorah State B ank recently in creased th e su rp lu s to $100,000, equal to th e capital. O ther reserves are n early $20,000. The in te re st rate paid on deposits here is 2 p er cent on 12 m o n th s’ CD’s and IV2 p er cent on six m o n th s’ CD’s and savings accounts. Bob Sm ith recen tly joined th e Citi zens S tate Bank, H opkinton, as book keeper, succeeding M arvin R hine w ho joined a w est coast bank. “A good w ife is h a rd to find,” so w rote a w ell-know n a u th o r in one of his recen t books. A frien d replied: “Listen, bro th er, betw een bridge clubs, society m eetings, pictu re show s and bargain sales, any k ind of a wife is h a rd to find these days.” T he Som ers Savings B ank has in creased its capital stock from $20,000 to $25,000 by declaring a stock divi dend. G uttenberg b an k s reduced in te re st ra te s Ju ly from p. m. from 2V2 to 2 p er cent, effective 1st. B anking h o u rs h ere are 9 a. m. to 12 noon, an d from 1 to 3:30 p. m. ev ery business day. The F arm ers & M erchants Savings M anchester, reduced in te re st rates, effective Ju ly 1st, from 2 to 1% p er cent. Bank, 34 3 46 42 35 I) F . E. D a v e n p o r t a n d C o m p a n y ........33-52 De L u x e C h e c k P r i n t e r s , I n c ................ 38 D e s M o i n e s Building- , L o a n a n d S a v i n g s A s s o c i a t i o n ............................................ 57 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 22 E p p l e y H o t e l s C o m p a n y ............................ 46 F J. A. SA R A Z E N B C e n tral H a n o v e r B a n k an d T r u s t C o ... C e n tral N atio n al B a n k a n d T r u s t C o ... C i t y N a t i o n a l B a n k a n d T r u s t C o ......... C o n tinental-Illinois N ational B a n k a n d T r u s t C o .................................................... C on tin en tal N ational B a n k — L in c o ln .. 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 ..... 27 F i n a n c i a l A d v e r t i s e r s A s s o c i a t i o n ....... 24 F i r s t N a t i o n a l B a n k — C h i c a g o ................ 54 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 ........ 52 F i r s t N a t i o n a l B a n k a n d T r u s t C o ..... 41 F i s h e r C o m p a n y ................................................ 7 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 ....... 26 H 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 A s s n . 56 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 . . . 56 H o m e I n s u r a n c e C o m p a n y ........................ 4 I I o w a - D e s M oines N a tio n a l B a n k a n d T r u s t C o............................................................ 60 J J a m i e s o n a n d C o m p a n y .............................. 43 K K o c h B r o t h e r s ................................................. G e o r g e L a M o n t e a n d S o n ......................... 5 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 .................. 56 L iv 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 . . . 53 L iv e S t o c k N a t i o n a l B a n k — O m a h a . . . . 33 L iv e S t o c k N a t i o n a l B a n k — S i o u x C i t y . 36 M M e r c h a n t s M u t u a l B o n d i n g C o m p a n y . . 56 M e r c h a n t s N a t i o n a l B a n k .............................. 2 M o r t g a g e I n v e s t m e n t C o r p o r a t i o n ......... 28 N N a t i o n a l S u r e t y C o r p o r a t i o n ....................... 23 N o r t h w e s t e r n N a t i o n a l L i f e I n s . C o . . . 23 O O m a h a N a t i o n a l B a n k ..................................... 17 P P h i l a d e l p h i a N a t i o n a l B a n k ....................... 44 P u b l i c N a t i o n a l B a n k o f N e w Y o r k . . . . 29 S The P alm er S tate B ank paid its first dividend of $5 p er share recently. The b an k w as organized in 1937. Deposits are now in excess of $200,000. In te re st bearing deposits are not accepted from an y one person in excess of $100. 56 L St. P a u l F e d e r a l S a v i n g s a n d L o a n . . . . 43 U U n i t e d S t a t e s C h e c k B o o k C o m p a n y . . . . 51 U n i t e d S t a t e s N a t i o n a l B a n k — O m a h a . . 30 W C h a r l e s E . W a l t e r s C o m p a n y ..................... W a n t A d ................................................................ J a y A. W e l c h ......................................................... W e s s l i n g S e r v i c e s ............................................ 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 ......... 32 54 53 57 20 C. F. B utler, president, The E x change B ank, S pringville, passed aw ay Ju ly 27th, at th e age of 83. T he shock from a fall h asten ed his death. He w as sem i-active up u n til a few days before his d eath and w as one of the oldest b a n k e rs in th e state from a p oint of service to h is bank, h av in g served in one capacity or an o th e r for th e last 62 years. T he D elh i S avin gs B ank reduced in te re st ra te s Ju ly 1st from 2% to 2 p er cent. J. M. P aulson, a ssista n t cashier, F a rm e rs & M erchants S tate Bank, L ake Mills, has been recu p eratin g at his hom e from a severe fall. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19M 58 In the D ir ec to r s ' R o o m Garlic By Hitler Off Thirty Points Sonny (reading an item from the w ar fro n t): “W h at does th is pap er m ean by ‘seasoned troops,’ D ad?” Dad: “M ustered by th e officers and peppered by th e enem y.” D espondent P atient: “H ere I am in th e prim e of life w ith a chronic ill ness. T h in k of it, Doctor! W h at could be w orse th a n diabetes a t 35?” Doctor (w ith his m ind on th e ticker tape): “H ’m, how about Cities Serv ice a t 5% ?” Breakfast Time Worse Luck “W h at is a tactfu l w ay for a g irl’s fa th e r to let h e r boy frien d know it’s tim e to leave?” “He m ay casually pass th ro u g h th e living room w ith a box of shredded w h eat in his h an d .” “I have a book you ought to read. Shall I lend it to you?” “H eavens, no! I can ’t even find tim e to read all th e books I ought not to read .” Considerate Right Again Teacher: “H ave you h eard of Ju liu s C aesar?” Bobbie B u rtn er: “Yes, sir.” Teacher: “W h at do you th in k he w ould be doing if he w ere alive to day?” B. B.: “D raw ing an old-age p en sion.” The Whole Show A certain W elshm an w as th e proud possessor of a v e ry fine bass voice. M eeting a frien d one day, he confided th a t he h ad h ad a rem ark ab le dream . “D ream ed I w as in a m ig h ty choir,” he explained. “Oh, b u t it w as splen did! T here w as such a choir as y o u ’ve n ev er seen. F ive th o u san d sopranos, five th o u san d altos, five th o u san d te n ors—all singing at once double forte. Oh, m agnificent!” H is frien d gasped w ith am azem ent. “B ut suddenly,” continued th e sing er, “th e conductor stopped th e lot and tu rn in g to me, he said: ‘N ot quite so loud in th e bass, Mr. Jones!’ ” Proposed H e w as ju s t plain dum b as fa r as m ak in g love to girls w as concerned. B u t he w an ted to pop th e question to M ary. T h eir p a th led th ro u g h th e cem etery an d as th e y sat dow n on a seat he had an in spiration. “M ary!” he b lu rte d out. “H ow w ould you like to see y o u r nam e on m y to m bstone?” Sm ith h ad b o ught a store as a going concern. In six m o n th s’ tim e it had failed. L a te r on, m eeting th e original ow ner, he h alted him , and said: “You know th a t business you sold m e as a going concern?” “Yes. W h at of it?” “W ell, it’s gone!” rem ark ed Sm ith shortly. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis O h— “W ho p u t those flowers on m y desk?” said th e sales m anager angrily. “T he p resid en t of th e com pany, sir.” “P re tty , a re n ’t th ey ?” An Ear for Music Mrs. M arshall: T he m usic teacher is w aiting for you in th e draw ing room. H ave you w ashed y o u r face and h an d s?” “Yes, m am m a!” “A nd y o u r ears?” “T he one on th e side of th e teacher!” No Fifth Columnist An E n g lish m an and a G erm an w ere arg u ing over w hose co u n try ow ned th e finer navy. T hey asked th e old Irish m a n in th e corner to settle th e argum ent. “T he Irish have th e b est n avy,” he said. “In h eav en ’s nam e, w here is th e Irish n avy?” asked th e o th er two. “A nd w h at a fool I ’d be telling you w hen you m ight be a couple of spies,” replied th e Irishm an. Eternal Hope Going— Gone Northwestern Banker H ospital N urse: “You w ish to see th e young m an in ju red in th e m otor accident. You are th e lady he w as w ith ? ” Gwendolyn: “Yes, I th o u g h t it w ould be only fair to give him th e kiss he w as try in g for.” August 19^1 “So you had y o u r first day on th e links y esterd ay ,” said a frien d to Joe Knoflicek. “H ow did you m ake out?” “W ell,” said Joe, “I m ade it in 40.” “You did!” exclaim ed his astonished friend. “Say, you did m ig h ty well! M any an experienced golfer w ould be p ro u d of th a t record!” “Yes,” said Joe, “and tom orrow I am going out to try th e second hole.” W ho C a re s? A nnoyed m ovie goers (to m an in n ex t row ): “E xcuse me, b u t we can ’t h e a r a w ord.” M an in N ext Row: “A nd is it any business of y o urs w h at I ’m telling m y w ife?” Husbands T he p reach er had ju s t finished a serm on on th e duties of w ives to m o th er th e ir husbands. “I w an t every w om an w ho w ill go hom e an d m o th er h e r h u sb an d to stan d up,” he cried. A little w om an, w ho w as know n to be a trifle deaf, leaped to h er feet. “A h,” cried th e preacher, “th e re is one w om an w ho w ill m o th er h e r h u s band.” “M other him ?” cried th e w om an, sittin g dow n again. “I th o u g h t you said ‘sm other h im ’.” All Guilty I t seem s th a t a m in ister in a sm all tow n w ho w as poorly paid decided to take d rastic steps in o rder to get m oney. A ccordingly, th e nex t Sun day m orning he spoke th u s from th e pulpit. “B rethren, I have to live th e sam e as you. In order to live I m u st have m oney. So, in th e fu tu re I m u st have m ore m oney th a n I have had in the past. “T he m o rning offering w ill now be received, b u t before we do so I have one th in g m ore to say. “I have seen a certain m an in th is audience flirting w ith an o th er m an ’s wife, and unless I find a five-dollar bill in th e collection I am going to a n nounce th a t m a n ’s nam e from this p u lp it.” T he collection w as tak en and w hen th e m in ister counted th e m oney he found n in eteen five-dollar bills, and one tw o-dollar bill, to w hich w as pinned th e follow ing note: “T his is all th e m oney I have w ith me, b u t I w ill give you th e o th er th ree dollars tom orrow .” THE ADDING MACHINE YOU CAN TRUST! ACCURATE ( Precision built b y master craftsDEPENDABLE men to perform faithfully under DURABLE ( hard w ear and tear! Manufactured since 1903 More than 100 models available than 600% increase in the sales of Allen W ales Adding Machines during the past six years Our nearest agen cy will lei you try a machine without obligation—Telephone them or write us A L L E N W A LES A D D IN G M A C H IN E C O R P O R A T IO N 4 4 4 M adison A v en u e, N e w York, N. Y. SALES A N D SERVICE IN 4 0 0 AM ERICAN CITIES A N D IN 4 0 FOREIGN COUNTRIES https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Û i 'îfoMÏi S e r v i c e ...in des moinEs / Most Iowa Banks find it advan tageous to have a correspondent connection in Des Moines. Iowa’s Largest Bank is equipped to serve you effectively because: • 2. It has adequate resources. It has a background of valuable experience gained through close association with Iowa Banks and Iowa Business since 1875. 3. It has well-trained personnel and complete, modern facilities to give prompt, helpful attention to your correspondent requirements. W o , W e S e r v e ija u ? IOW A-DES MOINES NATIONAL BANK & Tru st com pan y M e m b e r o f The Fe d e r al D e p o s i t I nsurance Corporation A. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
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