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UGUST 1942 L. O. O L S O N V ic e P r e s id e n t , M id la n d N a ti o n a l B a n k , M in n e a p o lis P r e s id e n t , M in n e s o ta B a n k e r s A s s o c ia tio n ^IC T O R Y m BU Y Ml UNITED STATES ff W AR aJB°NDS and M l STAMPS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis AFTER THE W A R — W H A T ? i^r <4c ,<^ «^c < r < r ^ <T~ <r^ <r‘~ < ^ > ^ ^ > ^ ^ ^ v*- ^ E ffectiv e S erv ice Correspondent Service at the Merchants National Bank in Cedar Rapids is prompt, cooperative, effective, and rendered by an organization experi enced in every requirement of inter-bank relations, alive to the emergency demands of war. A CEDAR R A P ID S BA N K CEDAR R A P ID S SERVICING A LL IOWA MERCHANTS NATIONAL BANK OFFICERS J a m e s E. H a m i l t o n , Chairman S . E. C o q u i l l e t t e , President H. N. B o y s o n , Vice President R o y C. F o l s o m , Vice President M a r k J . M y e r s , V. Pres. & Cashier G e o r g e F . M i l l e r , V. Pres. & Tr. Officer M a r v i n R. S e l d e n , Vice President F r e d W. S m i t h , Vice President J o h n T. H a m i l t o n II, Vice President R. W. M a n a t t , A sst. Cashier L. W. B r o u l i k , Asst. Cashier P e t e r B a i l e y , Asst. Cashier R. D. B r o w n , Asst. Cashier O. A. K e a r n e y , Asst. Cashier S t a n l e y J . M o h r b a c h e r , Asst. Cashier E. B. Z b a n e k , Building Manager /tißfi Cedar m‘YfO-DO é¡i¿ R apids Io w a Member Federal Deposit Insurance Corporation 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 , 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 co p y , $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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis We place all our faith and trust in the gallant men who com pose our armed forces. We know they are vigilantly guard ing our liberties, night and day, and that because of them, w e can go about our usual duties in comparative serenity. » » La Monte Safety Paper, through guarding against possible check fraud, is relieving the harassed Banker and Business Man of a potential source of worry and loss. La Monte Safety Papers, invented seventyone years ago for checks and other ne gotiable documents, are the Symbol of Safety. Your lithographer or printer will be glad to show samples and explain how your trade mark or insignia can be adapted to your check paper. GEORGE LA MONTE & SON, Nutley, N. J. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N A TIO N A L BANK OF THE CITY O F N E W YORK Statem ent o f Condition , June 30, 1942 RESO U RCES C a s h a n d D u e f r o m B a n k s ........................................................................ $ 1 ,1 3 7 ,3 9 9 ,1 2 6 .8 3 L . S. G o v e r n m e n t O b l ig a t io n s , d ir e c t a n d f u l l y .............................................................................................. S t a t e a n d M u n ic ip a l S e c u r i t i e s ......................................................... S t o c k o f F e d e r a l R e s e r v e B a n k ............................... 1 ,5 7 3 ,4 0 5 ,1 5 6 .6 6 8 6 ,7 8 3 ,5 9 6 .1 2 6 ,0 1 6 ,2 0 0 .0 0 O t h e r S e c u r i t i e s .............................................................................................. L o a n s , D is c o u n t s a n d B a n k e r s ’ A c c e p t a n c e s ................................ B a n k in g H o u s e s .............................................................................................. O t h e r R e a l E s t a t e ........................................................................................ M o r t g a g e s ........................................................................................................... C u s t o m e r s ’ A c c e p t a n c e L i a b i l i t y ......................................................... O t h e r A s s e t s ..................................................................................................... 1 7 7 ,8 5 2 ,5 0 1 .7 5 8 2 2 ,7 5 3 ,4 5 8 .1 1 3 7 ,2 5 0 ,7 0 9 .4 1 6 ,8 7 8 ,1 1 0 .3 4 8 ,0 4 3 ,6 5 2 .5 2 4 ,0 4 1 ,3 8 4 .6 3 9 ,0 3 9 ,8 4 3 .7 6 guaranteed $ 3 ,8 6 9 ,4 6 3 ,7 4 0 .1 3 L IA B IL IT IE S C a p it a l F u n d s : C a p it a l S t o c k ............................................................. $ 1 0 0 ,2 7 0 ,0 0 0 .0 0 S u r p l u s ..................................................................... 1 0 0 ,2 7 0 ,0 0 0 .0 0 U n d iv id e d P r o f it s ............................................ 4 0 ,7 9 9 ,6 5 4 .8 2 $ 2 4 1 ,3 3 9 ,6 5 4 .8 2 D iv id e n d P a y a b l e A u g u s t 1, 1942 ......................................................... R e s e r v e f o r C o n t in g e n c ie s . . . . . ...................................... R e s e r v e fo r T a x e s , I n t e r e s t , e t c .......................................................... 5 ,1 8 0 ,0 0 0 .0 0 11,509,712.71 3 ,8 3 6 ,5 2 1 .7 8 D e p o s i t s ................................................................................................................. A c c e p t a n c e s O u t s t a n d i n g ..................................................................... 3 ,5 9 5 ,4 5 1 ,0 3 0 .5 4 4 ,6 2 5 ,1 7 7 .3 5 L i a b il it y a s E n d o r s e r o n A c c e p t a n c e s a n d F o r e ig n B il l s . 7 6 8 ,0 7 6 .8 0 O t h e r L i a b i l i t i e s ............................................................................................... 6 ,7 5 3 ,5 6 6 .1 3 $ 3 ,8 6 9 ,4 6 3 ,7 4 0 .1 3 United States Government and other securities carried at $427,742,675.70 are pledged to secure public and trust deposits and for other purposes as required or permitted by law. Member Federal Deposit Insurance Corporation N orth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1942 5 T A TO MESSAGE OUR CUSTOMERS forced by the reputation it enjoys for sound operation and its attitude toward business. A bank can be different by rendering an extra measure of service and maintaining a progressive policy in the making of loans. This, the Midland prides itself upon. A glance at the Comparative Statement below shows that our efforts are being re warded with growth in business and added strength in financial worth. THE GROWTH of any business enter prise is largely dependent upon the wealth and volume of business in the territory which it serves. In the case of a business involving the sale of com modities the quality of the merchan dise and the price are important fac tors, yet the reputation of the seller and the service rendered are more often the deciding factor. A public service institution such as a bank has only service to sell, rein A RECORD OF STEADILY INCREASING GROWTH Comparative Statement o f Condition as of June 30 1935 RESOURCES Cash and Due from B a n k s. . . . . . U. S. Government S ecu ritie s. . . . Other S e c u r it ie s ............................................ Loans and D iscoun ts................................. Other A s s e t s ....................................................... $ 5 ,9 6 4 ,7 3 6 3 ,0 6 7 ,8 8 6 1 ,3 04 ,42 2 4 ,3 6 8 ,4 0 2 1 98 ,4 22 1939 1937 $ 5 ,2 1 9 ,3 3 1 4 ,1 4 4 ,4 7 1 1 ,5 87 ,35 2 6 ,1 3 6 ,7 1 8 1 90 ,2 42 $ 7 ,2 1 0 ,7 2 6 4 ,0 3 5 ,1 8 0 1 ,2 29 ,84 7 5 ,9 2 5 ,8 2 5 2 2 2 ,9 3 8 $ 1 4 ,9 0 3 ,8 6 8 $ 1 7 ,2 7 8 ,1 1 4 $ 1 8 ,6 2 4 ,5 1 6 $ $ $ 1941 $ 8 ,2 4 2 ,0 7 4 4 ,3 1 3 ,3 9 6 1 ,2 2 3 ,4 6 8 8 ,9 5 1 ,2 9 2 1 56 ,7 38 $ 2 2 ,8 8 6 ,9 6 8 1942 $ 8 ,6 8 0 ,6 9 4 9 ,3 3 5 ,5 7 7 1 ,4 6 0 ,1 3 4 8 ,6 4 3 ,7 7 9 1 15 ,4 42 $ 2 8 ,2 3 5 ,6 2 6 LIA B ILIT IE S Preferred Stock . . • • • • • • • • • • • Common S t o c k ............................................... Surplus and Und’vd. P rofits. . . . Miscellaneous R e s e r v e s ...................... Reserve fo r Int., Exp. and Taxes . D e p o s i t s ................................................................. 5 0 0 ,0 0 0 5 0 0 ,0 0 0 2 8 4 ,8 0 9 4 7 ,6 7 0 4 4,50 1 1 3,5 2 6 ,8 8 8 $ 1 4 ,9 0 3 ,8 6 8 3 9 0 ,0 0 0 6 0 0 ,0 0 0 4 2 0 ,2 2 4 1 0,0 0 0 1 38 ,5 35 1 5,7 1 9 ,3 5 5 $ 1 7 ,2 7 8 ,1 1 4 2 2 4 ,3 7 5 7 5 0 ,0 0 0 5 35 ,7 05 3 0,62 5 1 25,035 1 6 ,9 5 8 ,7 7 6 $ 1 8 ,6 2 4 ,5 1 6 $ None 1 ,0 0 0 ,0 0 0 7 12 ,9 06 4 1 ,0 4 6 1 86 ,0 10 2 0 ,9 4 7 ,0 0 6 $ 2 2 ,8 8 6 ,9 6 8 $ None 1 ,0 00 ,00 0 7 2 1 ,5 06 2 17 ,0 05 178,431 2 6 ,1 1 8 ,6 8 4 $ 2 8 ,2 3 5 ,6 2 6 MIDLAND NATIONAL BANK AND TRUST COMPANY o f Minneapolis • SECOND AVENUE SOUTH AT FOURTH STREET M em ber F ederal D e p o s it In su ra n ce C o r p o r a tio n N o rth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1942 6 HOW STRONG IS A TANK? O ne tank is powerful— but real combat effective ness depends on coordination with other weapons, with other service arms, with repair crews. So in the production of these and the other weapons on which we depend for our freedom. Industrial Teamwork within each war industry and with others is responsible for the output records the nation’s plants are making each week. An integral and vital part of this teamwork is Insurance, the in dustry that protects other industries— reducing accidents, cutting financial worry, assuring con tinued speedy production all along the line. ☆ TH E HOME ☆ NEW https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis YORK IN SU RA N CE aids Industrial Teamwork The laboratory of insur ance works on scientific principles. From genera tion s o f un d erw ritin g e x p e r ie n c e co m es the modern insurance policy with all its aspects of pro tection and service. Co operation with industry lessens exposure to loss. M ore— insurance stores a large reserve against losses that occur unavoidably. A U G U S T N o r f m W E / ïE R N 19 4 2 DES MOINES NUMBER 661 FO R T Y -SEV EN T H Y E A R Oldest Financial Journal West of the Mississippi River IN T H IS IS S U E Editorials CLIFFO RD DE PUy Publish er R A L P H W. M O O R H E A D Associate Publisher A c ro s s th e D e sk f ro m th e P u b l i s h e r .____ __________________________ ______ _______ Feat ure A r t icles F ro n tis p ie c e -—R e tu r n i n g to C a m p ______________________ _________________ :......... . H EN RY H. H A Y N E S Editor 527 Seventh Street, Des Moines, Iowa Telephone 4-8163 • 8 A f t e r th e W a r — W h a t ? ........................................................... .......... ........ G. 11 Sidney Houston 12 I t G oes W h e re th e C ro w d s A re ..................................................... ............................................... 13 N e w s a n d V ie w s ........................................................................... .........................Clifford De Pay 14 C e le b ra te T w e n ty - f if th A n n i v e r s a r y ............................. ............................................................. 15 W a r C o n fe re n c e in D u l u t h .................... ........ .......... ............... ......... ........ Henry H. Haynes 16 P ic tu r e s a n d P e r s o n a litie s a t th e M in n e s o ta C o n v e n tio n ............. .......... ......... ............... 17 L e g a l Q u e s tio n s a n d A n s w e r s .................. ......... ....................................... ...................... .............. 18 NEW Y O R K O FFICE Frank P. Syms Vice President 505 Fifth Ave. Suite 1202 Telephone MUrray Hill 2-0326 C o u n te r a c tin g t h e C o u n t e r f e it e r ..................... Leslie K. Curry a n d Julian T. Baber 20 Insurance T h in g s Y ou W ill W a n t to K n o w A b o u t W a r D a m a g e I n s u r a n c e ..... ........................... 23 Bonds and Investments M IN N E A P O L IS , O FFICE Jos. A . Sarazen Associate Editor Telephone Hyland 0575 T h e M o n th ’s M a r k e t M a n e u v e r s ............................................................... James H. Clarke 27 State Banking News M in n e s o ta N e w s ............................................................................................... ..................................... 33 W h a t M in n e s o ta S ta te m e n ts S h o w _________ ____ __________ ______ ______ _____ 33 T w in C ity N e w s ...... ................... .................................... .............................................................. 35 S o u th D a k o ta N e w s .............................................................................. .............................................. 39 W h a t S o u th D a k o ta S ta te m e n ts S h o w ............ ................................................................. 39 N o r t h D a k o ta N e w s ...................... ........................... ............................................................................. 42 W h a t N o r t h D a k o ta S ta te m e n ts S h o w ............................................................................ 42 N e b r a s k a N e w s ............................................................ ..................... .................................................. - 45 W h a t N e b r a s k a S ta te m e n ts S h o w _________________ __ _____________ ___ _____ 45 O m a h a C le a r in g s ...............— ................................................... ............................................... 47 L in c o ln L o c a ls _____ ________ _______________ _________ ____ ___ ___ ____________ 49 CONVENTION CALENDAR ST ATE M EETIN G S I o w a J u n i o r B a n k e r s — D e s M o in e s , O c to b e r 25. I o w a A n n u a l C o n v e n tio n — D e s M o in e s , O c to b e r 25, 26 a n d 27. N e b r a s k a A n n u a l C o n v e n tio n — O m a h a , H o te l F o n ta n e lle — D a te to b e d e c id e d . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Io w a N e w s ....................... ................................ ............... ........ ........... ......... .............. .......... ................ 51 Io w a N e w s ................................................................ ...................................................................... 54 W h a t Io w a S ta te m e n ts S h o w ................................................................................................... 57 The D irecto rs’ Room A F e w S h o r t S to r ie s to M a k e Y o u L a u g h ...... ................................................................... ...... 66 *•» : Across the Desk From the Publisher State Bankers Conventions Needed Now 1. To help sell more W a r Bonds and Stamps 2. To d iscuss plans to prevent inflation 3. To analyze problems facing farming and business Joseph B. Eastm an, D irector of the Office of Defense T ransportation, has requested th a t all “ non-essential” conventions be cancelled for the d u ratio n of the em ergency and w ith this we agree, especially w ith the larg e r national con ventions. However, we believe th a t S tate B ankers Con ventions are needed now more th an ever and th a t they are decidedly essential for the three re a sons m entioned above am ong others. F irst to give bankers ideas on how they can sell more w ar bonds and stam ps. Second, to w ork out plan’s to prevent inflation, and th ird , to help analyze the problem s facing farm ers and busi ness men in this present economic struggle. A state convention which covers only a small area and the tran sp o rta tio n of the delegates back and forth will not prevent the m ovem ent of troops or m aterial for w ar purposes, we believe should be held and also considered as an essential meet ing. W hether the convention is called a Clinic or a Business S tudy Group is only a question of term s, b u t bankers are more essential now to the successful conduct of the w ar th an a t any tim e in th eir history. As we have already mentioned in the N o r t h w e s t e r n B a n k e r 85 per cent of all the W ar N o rth w e ste r n Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1942 Bonds and Stam ps are being sold by and th ro u g h banks, and if they can get to g eth er and discuss how they can do this job b etter, it will be of assistance to the national governm ent. Or, if in one day or perhaps two, they can w ork out plans which will help prevent inflation, cer tain ly such a convention or clinic will be of in valuable help to the governm ent and to the n a tion. Also, w ith as m any problem s and new rules and regulations facing farm ers and business men, if bankers can get together to discuss these and hear how other bankers are solving these prob lems, and explaining these rules and regulations to th eir own custom ers, such a m eeting is of in estim able value to the nation. As one b an k er told us the other day, who is very much in favor of his association holding th eir annual m eeting, “ I hear speakers discuss and explain the m any governm ent regulations th a t have been imposed on us in recent m onths — I begin to u n d erstan d w hy w ar m akes it nec essary for me to operate my bank on a different basis th an th a t to w hich I have been accustom ed. W hen I re tu rn home I am stim ulated m entally, and surely in a m uch b etter position to aid our governm ent in its w ar effo rt.” Also H enry Koeneke, president of the Ameri- 9 can B ankers Association, in a recent statem ent, said : “ The A. B. A. will maintain a direct and practical working relationship with its members throughout the duration of the emergency. This will be done through the extension of clinics and other intimate types of gatherings which, by rea son of size and geographical representation, offer no serious transportation problems.” Thus, the state m eetings w ould certainly not be any la rg e r th an the clinics or other “ intimate types of gatherings” to w hich Mr. Koeneke re fers and which he says “ offer no serious tra n s p o rtatio n problem s.” So we say, l e t ’s have state bankers conventions d u rin g the balance of the em ergency because bankers, different from any other group in the country, are contributing so m uch to help fu r nish the m oney to m ake the m unitions to win the w ar. The N o r t h w e s t e r n B a n k e r would be glad to have your views ; do you th in k our state b an k ers conventions should be cancelled for the du ratio n or do you th in k they should be continued? L et us know w hat you th in k about this im portant subject. W ar Bond Survey Appreciated In the Ju n e issue of the N orthwestern B anker we presented a bond su r vey u n d er the heading “ HOW THE PR E SE N T PROGRAM TO SELL AVAR BONDS CAN BE IM P R O V E D .” AVe asked num erous bankers to give us th eir sum m ary of both the favorable and unfavorable points concerning the present trea su ry plan to sell w ar bonds and stam ps. In a le tte r to us Henry A. Wallace, vice presi dent of the U nited States, said: “ I have read the comments of your bankers both favorable and unfavorable with much interest. It would seem to me from the survey in the Northwestern Bank er that the Treasury has done an unusually good job.” In another le tte r from Ross Barrett, Jr., Chief of the Business P ublications section of the W ar Savings Staff, he said, “ Thank you very much for all the trouble you have taken in conducting and reporting to me upon your splendid survey. ’’ “ I have read with great interest the result of your canvass in the Northwestern Banker which is most illuminating and helpful, and will be of great assistance to us in formulating our plans. “ Keep up your good work. We are counting on you to continue your deeply appreciated sup port in the drive towards Victory.” J u s t recently we were in W ashington and had a very nice visit w ith Air. B a rre tt w here we re peated to him the fact th a t bankers everyw here were doing th eir utm ost to help sell w ar bonds and finance the governm ent in this present em er gency. Air. B a rre tt was deeply appreciative of the fact th a t banks th ro u g h o u t the nation, have sold 85 per cent of the w ar savings bonds an d stam ps and he knows th a t they will continue in this fine effort. It is believed by both National Bank the N ebraska B ankers Examination Fees A ssociation and the In Should Be Reduced dependent B ankers As sociation as well as m any others th a t N ational B ank exam ination fees should be reduced. R ecently E. E. Placek, president of the F irst N ational B ank of W ahoo, N ebraska, and re p re senting the N ebraska B ankers Association, and Ben DuBois, secretary of the Independent B ank ers Association of Sauk Centre, Alinnesota, ap peared in W ashington to present the views of these two associations. In re p o rtin g back to his members, Air. DuBois issued a re p o rt which was also signed by Air. P lacek and which said, “ There are quite a num ber of small national banks througho u t the coun try th a t pay a heavy exam ination fee in com pari son to th eir size. As most of you know, the basic m inimum is $75 for the first $25,000 of assets and the rem ainder is subject to an assessm ent of 3 cents on each $1,000 in excess thereof. P rio r to Ja n u a ry 3, 1941, the basic m inim um was $100 but C om ptroller O ’Connor reduced this am ount to $75. I t would seem logical for the C om ptroller to fu rth e r reduce the basic m inim um to $50. If the A. B. A. sponsored bill to do aw ay w ith the cost of one exam ination per year is legislated the national banks w ill be relieved of quite an ex pense. Otherwise there should be a definite effort m ade to revise the present regulation as it effects the sm aller national b a n k s.” AVe, too, believe th a t the com ptroller should fu rth e r reduce the basic m inim um to $50 and thus m ake the cost of exam ination on the sm aller national banks less burdensome. N orth w estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1942 m s " I O W A ’S FRIENDLY w m v MEMBER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FEDERAL DEPOSIT BANK" ☆ INSURANCE CORPORATION N o rth w e ster n B anker August 19b2 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 12 A fter the W a r - W h a t ? “If the U nited States ivill assume, perhaps in colaboration w ith G reat B ritain, a position of w orld dom ination such as is im plied in the so-called A tlan tic Charter, and if the present barriers to w orld trade are broken down, then, w ith the trem endous resources of this Nation geared to a w orld-w ide dem and, I can visualize this cou n try entering into a golden era that ivill exceed anything we have y e t seen and, if we can keep the w orld at peace, m ight con tinu e fo r m any years to come. ' By G . Sidney Houston Manager, Investment Research Department First Bank St ock Corpo ration , St. Paul G. S I D N E Y H O U STO N H E R E is abroad in th is co u n try today a ra th e r w idespread feeling, even am ong th e m ore intellig en t individuals, th a t we can w in th e p res e n t w ar, b u t in so doing we shall find our econom y so reg im en ted th a t our daily lives w ill be ordered by th e state to about th e sam e ex ten t as if H itler w ere to conquer th e country. It is w ith in th e scope of possibility th a t th is idea em anated from th e H itler F ifth Column, b u t one h ears it aro u n d th e bridge tables and in v arious places w here th e w ar is discussed. To m y T m ind, there is n ot the slig h test b asis in fact for any such statem ent, and l firm ly b elieve that it is not possible to have any such situ ation exist in th is country after th e w ar term in ates. I am going to give you m y ideas of bankin g d u rin g and a fte r th e w ar period, b u t first I w a n t to give you m y idea of w h a t th e post-w ar period w ill look like from th e stan d p o in t of g en eral economics, based, of course, on the assum ption th a t we are com pletely victorious over our enem ies. In th e period im m ediately follow ing W orld W ar I, th e various agencies of th e govern m en t quite pro m p tly re lin quished all th e controls th a t th e y held over th e econom ic stru c tu re . The w ar had lasted long enough so th a t th e re w ere su b stan tial pent-up dem ands for consum er goods and, a fte r a sh o rt de lay, business sta rte d on a steep-up grade, w hile com m odity prices reached th e hig h est point ever recorded in the histo ry of th is country. Like m ost N orth w estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1942 joyrides, it w as nice w hile it lasted, b u t it term in ated in th e m ost severe decline in com m odity prices th a t th is co u n try has ever experienced w ith in a sim ilar tim e and w ith a depression in business th a t lasted for several m onths. F u rth erm o re, th e boom period laid th e foundation for th e depression w hich started in 1929. W e are at th e p resen t tim e going th ro u g h th e g reatest economic u p heaval in our history, converting th irty m illion people from peace-time p u rsu its to w ar production and w ith draw in g ten m illion m ore into the A rm ed Forces. W hen th e w ar ends, th e re tu rn to peace-tim e activities w ill be no less of an economic upheaval. It is, therefore, m y opinion th a t the federal g overnm ent should retain m ost, if not all, of th e controls w hich have been given to it u n til such tim e as th e econom y of th is co u n try is again on a sound peace-tim e basis. T his should p erm it th e co untry to go th ro u g h th is a d ju stm en t w ith o u t the custo m ary post-w ar boom, w ith th e accom panying run-aw ay prices and su b seq u ent depression. To illu strate, if th is w ar lasts th ro u g h 1943, w e shall probably have a deficiency in norm al p u rchasing of autom obiles of som ew here aro u n d six m illion cars. If we w ere to assum e th a t 1944 w ould produce a norm al de m and of about th ree and one-half m il lion, we should th e n need to m an u factu re some nine and one-half m illion cars if we w ere to b rin g th e supply and dem and factors into balance by th e end of 1944. T his w ould be nearly double th e nu m b er of autom obiles m an u factu red in th is co u n try in any previous year. H ow ever, th e com panies are ably m anaged and able to produce near-m iracles, as th e ir con version to w ar-tim e production has show n. It is conceivable th at, if th ey are allow ed to go on th e basis of th ree shifts p er day, th ey m ight produce th is large o u tp u t of autom obiles. In th e process of doing so, th ey probably w ould bid up all kinds of com m odity m arkets, likely to pay highly com peti tive wage rates, and th e cost of au to m obiles w ould rise m aterially. Added to this, th e public w ould be h u n g rily aw aiting these new cars and w ould be inclined to bid th e prices even higher. H ow ever, w hen th e m a rk e t had reached th e satu ra tio n point, th ere w ould be w idespread unem ploym ent am ong autom obile w orkers, w hich w ould have repercussions on every p a rt of th e economy. T his w ould be paralleled by sim ilar operations in th e field of refrig erato rs, w ashing m a chines, radios, and any o th er num ber of consum er goods. If, how ever, th e g overnm ent w ill re ta in its control over prices, p re ven tin g any such run-aw ay situation, and w ill continue th e allocation of m aterials to th e various industries, no such unbalanced situ atio n is likely to develop and th e stim ulus of pent-up dem and can be carried on so th a t we shall probably have th ree or m aybe five y ears of good average business ra th e r th a n eighteen or tw enty-four m onths of boom business followed by tw o or m aybe th ree y ears of depres sion. In th is post-w ar period, it appears likely to m e th ere w ill be some fu r th e r social reform s and certain ly we shall continue some of th e ones already in stituted. Social S ecurity is, 13 in m y opinion, w ith us perm an en tly . I believe th e re w as a definite need for th e Securities and E xchange Com m is sion and th a t it w ill continue. W e shall likely also find som e form of subsidy for th e low-income group, a t least u n til such tim e as we can in crease th e ir p roductivity. F ew of us realize th a t 17 per cent of our popula tion in 1935-1936 got only ap p ro x i m ately 3V2 p er cent of th e natio n al incom e, and th a t 32 p er cent of th e population got less th a n 10 per cent. Too g re a t a pro p o rtio n of our p opula tion in th is low-income group is bound to be a co n stan t th re a t to our dem oc racy. I know som e of you w ould like m e to tell you w h a t is th e outlook for taxes in th is post-w ar period, and I w ould fra n k ly say th a t I th in k you w ill have p len ty of taxes. H ow ever, th e en tire ta x stru c tu re of th e U nited States, national, state, an d local, is a hodge-podge en tirely based on th e line of least resistan ce from a political standpoint. Some day we should re vam p our e n tire ta x stru c tu re , b u t it seem s a little too m uch to hope th a t th is will come in the n ear fu tu re. B roadly speaking, I th in k th a t th e post-w ar period w ill disappoint th e left-w ing N ew D ealers because it w ill not go far enough, and it w ill likew ise disappoint th e old-style reactio n aries because it w ill go too far. I believe th a t th e capitalistic system w ill su r vive, th a t th e profits m otive w ill re m ain, and th a t p riv ate in v estm en t will continue. It is m y guess th a t som e im p o rta n t ex p erim en ts w ill be trie d in leveling th e fluctuations in th e business cycle and it is p erfectly w ith in m y scope of im agination th a t some progress m ay be m ade in th a t direction. T his w ould m ean th a t defi cit spending w ill again be reso rted to in periods of depression and th a t th e ta x stru c tu re w ill be so designed as to hold th e econom y dow n in periods w hen it m ig h t o therw ise reach boom proportions. A nd it w ill n o t be v ery su rp risin g w hen I say th a t I believe a large national debt is w ith us m ore or less perm an en tly . I t m ay be th a t some of you view th e m o u n tin g natio n al debt w ith g reat alarm , b u t it m u st be borne in m ind th a t a n atio n al debt in te rn a lly held does not have th e tendency to reduce th e n atio n al incom e, it sim ply is a re d istrib u to r of th a t income. C ertain people are tax ed for in te re st on the debt, w hich is in tu rn paid by th e federal g o v ern m en t to those holding the bonds. T he im p o rta n t po in t is th e relatio n b etw een th e am ount of th e debt service and th e to tal of th e n a tio n al income. (T u rn to page 65, please) The C ru ise r to sell W a r S a v in g s B onds a n d S ta m p s d esig n ed by th e C e n tra l N a tio n a l B a n k of Des M oines It G oes W here the Crowds A re H E pictures here aptly illu strate an o th er exam ple of th e m any con trib u tio n s banks all over th e country are m aking to prom ote the sale of W ar Savings Bonds and Stam ps. T he com bination float and cruising sales booth w as designed and built by the C entral N ational B ank & T ru st Com pany of Des Moines, w here it w as p u t to good use recently in a num ber of projects sponsored by th e Des Moines R etailers W ar A ctivities Com m ittee. F ra n k R. W arden, vice p resident of th e bank, in com m enting on th e float, says: “We here at the ban k felt a far g re a t er num ber of prospective p u rchasers could be reached if W ar Savings Bonds and Stam ps w ere tak en to places T w here the large crow ds assem bled, ra th e r th an try in g to b ring the crow d to any certain spot. To date this tra v eling booth has been used in th e city wide Bond and Stam p drive, at a circus grounds, and at th e A m erican Legion F o u rth of Ju ly celebration in D rake Stadium . It w as also used by E a st Des Moines m erchants for th e ir parade and program later in th e m onth, and again at th e Des Moines airp o rt for tw o days d uring a special m ilitary a ir craft show. It w ould be difficult to determ ine ju st how m any thousands of dollars w o rth of Bonds and Stam ps w ere sold from th is cruising booth, b u t th e total am ount m ust be very im pressive.” The P a t te n fa m ily fo u n d th em se lv es q u ite as m uch a t hom e on th e n a rro w co n iines of a float p la tfo rm as th e y used to on th e sw eeping decks of th e a ir c r a f t c a rrie r “ L e x in g to n .” I o w a ’s (a n d , as f a r as w e know , A m e ric a ’s) la rg e s t N a v y fa m ily — e ig h t sons a n d a f a th e r , six of w hom w ere a b o a rd th e a ir c r a f t c a rrie r “ L e x in g to n ” w h en it w a s su n k , clim bed a b o a rd th e C e n tra l N a tio n a l B a n k ’s c ru is in g bond bo o th to p e rso n a lly a u to g ra p h a ll bon d s p u rc h ase d . The e n tire fa m ily w as on th e float a t th e tim e th e above p ic tu re w as ta k e n . H o w ev er, fo u r of th em w ere b u sily e n g ag e d g re e tin g frie n d s a n d a u to g ra p h in g bon d s a t th e f a r side, b ey o n d th e re a c h of th e cam era. N orth w estern Ranker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August Î942 14 N e w s a n d V ie w s O F THE B A N K IN G W O R L D By Clifford De Puy ETU R N IN G from a m o n th ’s trip th ro u g h th e east, m any of th e fol low ing item s are based on observa tions and experiences along th e way. R At New London, C onnecticut, we a t tended th e g rad u atio n of M iss E v ely n De P uy from th e C onnecticut College for W om en. T here w ere 153 in the grad u atin g class. W ith th e U. S. Subm arine Base ju st across the T ham es R iver at New L on don and w ith th e U. S. Coast Guard A cadem y located very n ear th e col lege, and w ith a day and n ig h t air raid w arden lookout schedule to w hich the stu d en ts w ere assigned to do th e ir p art, th e en tire w ar p ictu re w as b ro u g h t v ery close to th ese college girls. The railroads of th e co u n try are do ing an excellent job w hen you con sider th a t the p assen ger traffic has in creased 50 per cent, although in m any of th e tra in s w hich are tak en by com m u ters out of New York, standing room only is a rule ra th e r th a n an exception. On one day in New York we w ere very collegiate, as we had lunch at the H arvard Club w ith m y cousin, Donald H. Clifford and his wife, and in the evening we had din n er at the Yale Club w ith m y brother-in-law , R ichard E yre, b u t in spite of th is seem ing con flict, we had no indigestion. H ave you heard th e latest slogan w hich is “ I hate to say goodbye—but a ‘good b uy’ is a d efen se bond.” Carl Getscb, general m anager of the Tow ers H otel in Brooklyn, and his charm in g wife invited Mrs. De P uy and me to spend th e w eekend w ith them , and he m ade us feel very m uch at hom e and said to rem em ber th a t w h enever we w ere in Brooklyn, “The L etsch-string w as alw ays out.” At th e Irv in g T ru st Company, One W all Street, New York, we enjoyed a nice visit w ith Joseph S. M oss, Jr., vice president, and Frank G. B urrow s, ad v ertisin g m anager. W e learned th a t Charles G. Gam brell, assistan t vice president, w ho used to rep resen t th e Irv in g T ru st Com pany in the N o r t h w e s t e r n B a n k e r territo ry , is now in the A rm y and located at Dayton, Ohio. H ave you h eard th e story about a colored boy w ho w as caught in the d raft and ordered to report? W hen th e officer ask him, “W h a t’s your nam e?” th e d ark ey replied, “Well, Cap’n, you au g h ta know —you sent fo r’ m e.” In B ryn Mawr, P ennsylvania, we visited our relatives, Mr. and Mrs. W. A. Gilm an, he being vice p resident of N. W. A yer and Son of Philadelphia. B ryn M aw r College is a v ery old and in terestin g school, and we enjoyed going th ro u g h th e grounds and look ing at th e buildings, and one evening had d in n er at th e B ryn M awr College Inn. > Jk As you en ter th e C urtis P ublishing com pany in P hiladelphia, you step into a v ery beautiful lobby, clear across one side of w hich is a m u ral decora tion called “The D ream G arden.” This beautiful p icture is ren d ered in favrile glass m osaic by L ouis C. Tiffany from a p ain tin g by M axfield P arrish. T he Mayflower cocktail lounge in W ashington, D. C., is still th e rendez vous for m any of the “big sh o ts” in the capital. Seated n ex t to us one night w as D onald H. N elson, head of the W ar P roduction Board, and a num ber of his associates. He looked cool, calm and confident. The W hite H ouse is guarded m ore closely th an ever, and pedestrians have to w alk on the opposite side of each stre e t w hich su rro u n d s the p resi dential m ansion. W e found th is out by u n in ten tio n ally crossing the street one afternoon, and we h ard ly reached the o th er curb, w hich w as n earest the W hite House, w hen the w histles blew and th e guards cam e ru n n in g in our direction to “suggest” th a t we w ere not allow ed on th a t side of the street. “ M on ticello ,” C h a rlo tte s v ille , V irg in ia , hom e of Thom as Jefferson, a n d w hich he d esig n ed h im self. M r. Je ffe rso n w as p re s id e n t of th e U n ite d S ta te s tw o term s, fro m 1801 to 1809. N orth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19^2 The O ccidental R estaurant is one of th e m ost fam ous in W ashington, and >• * 15 w as opened in 1912 by Gus B uchholz. On th e w alls of the re s ta u ra n t th e re are 736 p ictu res of senators, congress m en, cabinet officials and m any o th er celebrities. C . A . Slife and A s s o c ia t e s Celebrate 2 5 th A n n iv e rsa ry of the Farmers State Bank George Olm sted, p resid en t of th e H aw keye C asualty Com pany of Des Moines, had lunch w ith us at th e C arl ton Hotel. George w en t to W ashing to n recen tly as a m ajor, and since th e n has been prom oted to L ieutenantColonel and placed in charge of the d istrib u tio n b ran ch of th e In te rn a tio n al D ivision of th e A rm y Services of Supply. T his b ran ch of th e service directs th e flow of m u n itio n s to th e vario u s fighting fro n ts in th e w orld. W e w ere caught in our first daylight air raid alarm w hile in W ashington. E v ery o n e on th e stre e t m u st seek sh elter a t once and every autom obile, taxicab and om nibus m u st stop w here ever it is. Im m ediately a fte r th e alarm is sounded, air raid w ard en s w ith bands on th e ir arm s come out of office buildings, b anks and stores and pa tro l th e ir p a rtic u la r sections. W hen th e alarm is over, traffic continues as usual. W hen you e n te r th e T reasury D e partm ent at W ash ington , you are m et by tw o g u ard s w ho direct you to the in form ation desk. H ere are half a dozen girls to ask w hom you w ish to see and w h at y o u r nam e and address is. A fter you have tran sacted y o u r business, you th e n have to get a n o th er p erm it before you can leave th e building. It is alw ays an in sp iratio n for us to visit th e L incoln M em orial, w hich w as designed by th a t fam ous sculptor, D aniel C hester F rench. Above th e fa m ous statu e are these words: “In this tem ple, as in the hearts of the peo ple for w hom he saved the U nion, the m em ory of Abraham L incoln is en shrined forever.” W hen we w ere en terin g th e N a tional Gallery of Art, also know n as th e M ellon Art Gallery, we had th e o p p o rtu n ity of g ettin g a close-up view of th e 18-year-old stoop-shouldered K ing P eter II of Y ugoslavia, w ho w as ju s t finishing a to u r of th e gallery. His fiancee is P rin cess A lexandra of Greece, w ho is in E ng lan d doing w ar w ork w hich she sta rte d in Greece a fte r the Ita lia n invasion. Mr. and Mrs. Jam es LeCron had cocktails w ith us a t th e New M illard Hotel. Mr. LeCron is now in th e of fice of th e C oordinator of Inter-A m eri(T u rn to page 62, please) c. A. S L I F E 1. What about the next 25 years? 2. Will a depression follow this war boom? 3. Have bankers learned any lessons from the past? 4. Can bankers “call the next turn” in time to put their “house in order”? The N o r t h w e s t e r n B a n k e r received a letter recently fro m C. A. Slife, cashier of the F arm ers State B a n k of H awarden, Iow a, w hich was so in teresting and so thought-provoking that we asked his perm ission to re print it here. The F arm ers State bank is now celebrating its tw entyfifth anniversary but it also is proud that all of its present officers have been connected w ith the bank during its entire tw enty-five years. Mr. Slife, in his letter, asked som e p ertin en t questions about the fu tu re and w e are sure you w ill be interested in w h a t he has to say.—E d ito r’s Note. “Ju n e 30, 1942, m arked th e 25th an n iv ersary of th e F arm ers State B ank of H aw arden. E stablished in 1917 be fore the e n try of the U nited States into the first w orld w ar, th e inflation th a t featu red the years 1918 and 1919 w itnessed a very rapid rise in deposits. In 1920 the tide tu rn e d and for about th e next 13 y ears th e general tendency was m ore or less dow nw ard, reaching very low levels in 1932 and 1933. “D uring the past few years the tren d has again been strongly upw ard, w ith m any banks now show ing m ore de posits th an ever before. C harts show- ing deposit tren d s over a long period of y ears th ro u g h o u t th e nation look like rough riding roller coasters, w ith dizzy heights and deep depressions. W hat we w ould like to know is W H E R E A RE W E NOW ?’ I have found no one w ho p retends to know ju s t w here th ey are going b u t m ost every one seem s to feel sure th ey are on th e way. “G reat statesm en and big politicians in th e p ast have striv en to iron out the wide up w ard and dow nw ard sw ings in the national econom y and to level off and hold th e course to a m ore even keel. A glance at an offi cial business ch art on the w all near th e w rite r’s desk covering the past 167 y ears p ictures plainly th a t no generation d uring this period has been able to accom plish and hold an even keel for v ery long. “A bout every seven years th e tide appears to sw ing to m inor peaks fol lowed by m inor depressions, and about every 20 years to a m ajor peak fol lowed by a m ajor depression. The ch art is reliable evidence th a t depres sions alw ays follow booms, and should serve as a guide for our economic be havior and conduct. I note, however, th ere is no definite w ay of know ing for certain ju st w hen th e peak will be reached or w hen the depression w ill set in, for we find the tu rn for b etter or w orse is freq u en tly a little ahead or a little behind schedule. F or instance, a recession w as due in 1928, b ut from causes w hich few u n d er stand, it d idn’t arriv e u n til October, 1929. The in terv en in g m onths w it nessed th e w ildest stock m ark et boom in m odern history, to be followed by one of the w orst and longest depres sions appearing on this 167 y ear chart. “E v ery tim e b ank exam iners call here we ask them to be sure to let us know well in advance w hen the n ex t slum p w ill arrive. W ithout doubt our d ep artm en t of banking and th e FDIC are vitally in terested in keeping the banks in sound condition. W hile we cannot charge them w ith the responsibility of ‘calling the tu rn .’ th e ir personal and official in te re st in keeping banks sound is v ery helpful to bankers. It is our job to be on the lookout for the tu rn and be prepared to m eet th e em ergencies w hen th ey come. “May we ask the N o r t h w e s t e r n B a n k er to tip us off about six m onths (T u rn to page 62, please) N orth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19't2 A T T H E M IN N E S O T A C O N V E N T IO N I N D U L U T H — R e a d in g fro m le f t to rig h t, 1— E m il A. Stak e, vice p re sid e n t, F ir s t N a tio n a l B a n k , C hicago, a n d F. H. K rook, c ash ie r, C iti zens S ta te B a n k , N ew U lm . 2— M. E. K alton, cash ie r, S e c u rity S ta te B a n k , W ells; W illiam N. Johnson, vice p re sid e n t, N o rth w e s te rn N a tio n a l B a n k , M in n e a p o lis; It. S. B ea tty , c h ie f n a tio n a l b a n k ex am in er, M in n e a p o lis; J. J. M aloney, a s s is ta n t cash ie r, F i r s t N a tio n a l B a n k , M in n e ap o lis, a n d A. F. W eyer, v ice p re s id e n t a n d cash ie r, F i r s t N a tio n a l B a n k , E l- m ore. 3— G. N. Reppe, p re s id e n t a n d cash ie r, F i r s t S ta te B a n k , G ra n d M eadow ; W. O. Anderson, B ro w n -B lo d g e tt & C om pany, S t. P a u l, a n d W. M. Newm an, v ice p re sid e n t, F a r m ers S ta te B a n k , Osseo. 4— George J. M einz, v ice p re s id e n t a n d cash ie r, A m e ric a n N a tio n a l B a n k , S t. C loud; H. R. K urth, p re sid e n t, C itiz en s B a n k , H u tc h in so n , a n d new vice p re s id e n t of M in n e so ta B a n k e rs A s so c ia tio n ; S. R. K nutson, vice p re s i d e n t, C itiz en s B a n k , H u tc h in s o n , a n d J. H. J u lig, p re sid e n t, F ir s t N a tio n a l B a n k , H u tc h in so n . > x War Conference In Duluth Attendance Exceeds Expectation At Fifty-Third Annual Convention of Minnesota Bankers Association L O. OLSON, cashier of th e M idland N ational B ank, M inneapolis, w as ♦ elected p resid en t of th e M inne sota B an k ers A ssociation a t th e 53rd C onvention and W ar Conference of th e organization held last m o n th in Du luth. H. R. K urth, p resid en t of th e Citizens B ank of H utchinson, w as nam ed association vice president, and Jam es H. H ogan, p resid en t of th e Kerrick S tate B ank, becom es tre a su re r. A ssociation officers and host b anks of D uluth w ere agreeably su rp rised at th e size of th e reg istratio n . Pre-con ventio n speculation placed th e a tte n d ance a t aro u n d 600, b u t w hen th e cards w ere all counted n early 800 had reg is tered, indicating th a t w hile in th e in te re s t of an all-out w ar effort it is probably w ise to elim inate national conventions, state m eetings are d raw ing a good crow d of serious-m inded ban k ers w ho come to learn m ore about th e ir business. N o rth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1942 By Henry H. Haynes lunch w hich followed w ere provided by th e D uluth C learinghouse banks. Editor P ro v ing th a t th e h an d is quicker th a n th e eye, M ichael M acDougal, n a tionally-know n detective of gam bling m ethods and devices of all kinds, at th e pre-convention sm oker led his audience th ro u g h a m aze of card and rice trick s w hich w ere beautifully executed b u t decidedly bew ildering. M arked cards are of course a p a rt of every professional gam blers equip m ent, b u t the clever gam bler doesn’t need m ark ed cards to in su re him self all th e top cards every deal, or a t least often enough to m ake him th e w inner. A ccording to Mr. MacDougal, all dice and ro u lette w heels in gam bling houses are crooked, b u t ap p aren tly suckers continue to be born every m inute. The en terta in m e n t by Mr. M acDougal and the su b stan tial dutch The m orning of T hursday, Ju ly 9, first convention day, w as given over largely to special m eetings. M em bers of the P io n eer Club of th e M innesota B a n k e r s Association, rep resen tin g those w ho had been 50 y ears or m ore in th e banking business, held a gen eral session and luncheon. The E x am iners Club of M innesota, composed of form er b an k exam iners, elected F. J. H aeney, cashier of th e Security State Bank, Glencoe, to head th e or ganization for th e com ing year, w ith G. S. Bacon, presid en t of th e E m pire S tate B ank of Cottonwood, as vice president, and G. N. R eppe, vice p resi dent and cashier of th e F irs t State Bank, G rand Meadow, w as reelected secretary and treasu rer. The board of directors of th e N inth F ederal R eserve district, headed by J. N. P eyton, held a (T u rn to page 37, please) * A T T H E M IN N E S O T A C O N V E N T IO N I N D U L U T H — B elow , re a d in g fro m le f t to rig h t, 1— L.. O. Olson, cash ie r, M id la n d N a tio n a l B a n k , M in n e ap o lis, a n d new p re sid e n t, M in n e so ta B a n k e rs A s so c ia tio n ; J. H. Julig, F i r s t N a tio n a l B a n k , H u tc h in s o n , a n d O. E. F urtness, p re sid e n t, C aledonia S ta te B a n k . 2— L. D. Barnard, B a n k o f W illm a r, a n d M. A. Lukken, p re sid e n t, A le x a n d ria S ta te B a n k . 3— W illiam D un can, 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 , a n d E. R. Gafford, second v ice p re sid e n t, C hase N a tio n a l B a n k , N ew l o r k C ity . 4— W all E. Coapman, s e c re ta ry , W isco n sin B a n k ers A sso c ia tio n , M ilw a u k e e ; F. D. M cCartney, v ice p re sid e n t, F i r s t N a tio n a l B a n k , O akes, N o rth D a k o ta , a n d P aul W. Lou don, e x e c u tiv e d ire c to r, n in th d is tr ic t V ic to ry B ond C am p a ig n , M in n eap o lis. 5— F rank P. Pow ers, p re sid e n t, K a n a b e c S ta te B a n k , M ora, a n d K. O. Sattre, c ash ie r, B lue E a r th https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis S ta te B a n k . 6— M. O. Grangaard, vice p re sid e n t, F i r s t N a tio n a l B a n k , M in n e a p o lis; M ajor T. S. Clayton, lia iso n offi cer, F e d e ra l R eserv e B a n k , M in n eap o lis, a n d O. R. P reston, a s s is ta n t v ice p re sid e n t, F e d e ra l R e se rv e B a n k , M in n eap o lis. I— E. F. V ollrath, a s s is ta n t c ash ie r, S ta te B a n k of Ceylon, a n d H arry A. W alsh, a s s is ta n t s e c re ta ry , M a n u fa c tu re rs T ru st C om pany, N ew Y o rk C ity. 8— R obert E. P ye, cash ie r, F ir s t S ta te B a n k , M e d fo rd ; G. O. Thorpe, p re sid e n t, W isconsin B a n k e rs A sso c ia tio n , C hippew a F a lls , a n d W. L. Boss, a s s is t a n t c ash ie r, F i r s t N a tio n a l B a n k , S t. P a u l. 9— J. A. K iecker, vice p re s id e n t a n d cash ie r, C itiz en s S ta te B a n k , G ibbon, an d A. Briese, vice p re sid e n t, F i r s t N a tio n a l B a n k , F a ir f a x . 10—Leo H oward, c ash ie r, S h e rb u rn N a tio n a l B a n k , a n d O. B. Schneck, p re s id e n t a n d cash ie r, N o rth w e s te rn S ta te B a n k , O rto n v ille . Can a TtUStGQ Pocket Insurance Commission on Property? H em pstead borrow ed $5,000 from his bank is South D akota and gave a m o rt gage on his hom e th e re as security. S ubsequently he sold the p ro p erty to Garden. G arden k ep t up th e m ortgage paym ents for a w hile and th e n ceased paying them . The b an k sued to fore close and, as an incident to the fore closure, contended th a t G arden had as sum ed th e m ortgage and w as th e re fore liable for any deficiency. Should th e b ank be su stained in its contention regard in g Garden? No. The action of a purchaser of m ortgaged property in m aking p ay m ents on the m ortgage debt is sim ply con sisten t w ith an in ten t to p rotect his property in terest. It does not mean that he assu m es the debt itself. A N ebraska apartm ent building w as operated by a tru stee. It em ployed a ren ta l and m anaging agent w hich also operated an insu ran ce agency. Such agen t procured in su ran ce on th e build ing and collected a com m ission th e re on. Could the beneficiary of th e tru s t recover th e com m ission in th e event due credit th erefo r w as not given in th e tru s t accounts? Yes. A tru stee violates the duty he ow es and is accountable to the b en e ficiary if he accepts for h im self from a third person any bonus or com m is sion for any act done by him in con nection w ith the adm inistration of the trust. In the decision upon w hich the an sw er is based a recovery by the b en eficiary against the tru stee w as per m itted. H ultgren sued Sorenson in M inne sota to com pel specific perform ance of an agreem ent to convey certain real estate and personal property. By w ay of rep ly Sorenson asserted th a t H u lt gren should not p revail in his su it because he w as en titled to dam ages ra th e r th a n specific perform ance of the personal p ro p erty featu res on th e ac tion b ro u g h t by him . Should Soren son be su stained in such contention? No. W here part of an entire con tract relates to personal property, and N orth w estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19'f2 These and Other Timely Legal Questions Are Answered By the LEGAL DEPARTMENT the rest to a subject m atter, such as land, over w hich jurisdiction to re quire specific perform ance is ordina rily exercised, specific perform ance m ay be had of the contract as a w hole, in clu d ing the part relatin g to personal property. Snow borrow ed $500 from F a rre ll in Iowa. As evidence of the indebtedness he fu rn ish ed F a rre ll w ith a prom is sory note signed by him and his wife. The note w as not paid w hen it fell due and F arrell sued. At th e trial, Mrs. Snow contended the note w as w ithout consideration as to her. F arrell te sti fied, how ever, th a t he had agreed to m ake th e loan only on condition th a t Mrs. Snow sign. T his w as denied by both defendants. W as it a m a tte r for the ju ry to decide as to w h eth er such condition w as p a rt of the transaction? Yes. In ail action on a note signed by a husband and w ife, w here the w ife contends that the note w as w ithou t consideration as to her, the m atter of w h eth er the payee agreed to m ake the loan on ly if the w ife w ould sign the note w as for the jury to decide. N eed less to say, if, in the question the jury b elieved Farrell, there w as sufficient consideration. M axw ell opened an account in a W is consin bank in his w ife’s nam e. He retain ed possession of th e passbook and exercised dom inion over th e de posit. S ubsequently he died and his wife claim ed the deposit. She w as u n able to show th a t he had delivered the book to h er or th a t he had intended to give h er the am ount deposited. Should h e r claim he allowed? No. The m ere fact that a bank ac count w as opened in h is w ife’s nam e by a husband, w ho retained p ossession of the passbook and continued to exer cise dom inion o ver the deposit, did not en title the Avife to the am ount of the deposit after the husband’s death, in the absence of evidence of his delivery of the book to her or of his in tention to giv^e her the am ount deposited. A South D akota state bank becam e a m em ber of the F ederal Deposit In surance C orporation prio r to Ju ly 1, 1933. It closed in April, 1936 because of its unsound financial condition. In Novem ber, 1936 th e South D akota Con stitu tio n w a s am ended, generally speaking, so th a t the ex tra stockhold ers liability, w hich previously existed, w as abolished. The b a n k ’s assets w ere insufficient to pay its liabilities and the receiver sought to collect from one of the stockholders his ex tra liability th ro u g h a suit filed in 1937. Could th e receiver collect? Yes. In a recent decision iiiAolving facts su bstan tially sim ilar to those out lined in the question, the Suprem e Court of South Dakota held that the stockholder in the closed bank Avas liable to the receiver under the hnv prior to the con stitu tion al am endm ent. In so holding, it said that creditors of the bank had vested rights again st the stockholders that Avere not destroyed by the am en dm en t’s passage. T avo loAvans, w ho w ere angry a t a b an k er there, sought to gain entrance to th e b ank at w hich he w as em ployed in th a t state a fter closing hours. A fight ensued and th e b an k er w as badly injured. Follow ing the fight, one of the two, w ho w as not the prim e m over in th e affair, w as charged w ith in ten t to inflict great bodily injury. Should he be convicted even though he w as not p rim arily responsible for the tro u ble? Yes. W here î a v o or more com bine to accom plish an u n la w fu l purpose, each is resp onsible for the act of an other w hich is a probable consequence (T u rn to page 41, please) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 20 Counteracting the C O U fttC tfcìtG t A Panel Discussion by Leslie K. Curry Vice President Mercanti le-Com merce Bank & Trust Co. x St. Louis and Julian T. Baber > United State s S e c r e t Se rv ic e Treasury Department Washington, D. C. L E S L IE K. C U R R Y JU L IA N T. B A B E R R. CURRY: I w as pleased to Mr. Baber: Well, it isn ’t as large have you tell me, Mr. Baber, as som e of th e o th er federal agencies, of th e grow ing in tim acy be b u t we have offices in 54 cities, and a tw een th e A m erican people and th e Secret Service agent is usually on U nited States Secret Service. By let h an d w hen he is needed. tin g th e average citizen in on some Mr. C urry: W ill you tell us how of yo u r secrets in your “K now Your th e b anks can help th e Secret Service? M oney” educational program , you are Mr. Baber: B anks co n stitu te th e certain ly developing g re a te r vigilance first line of defense of th e Secret Serv again st counterfeiting. I hope th a t ice ag ainst th e counterfeiter. Tellers bankers, of all people, have learned help a g reat deal by detecting co u n ter by now w here to locate th e n e a re st feits included innocently in custom er Secret Service agent and th a t th e y deposits. As a m atter of fact, F ra n k know his relatio n sh ip to o th er federal J. W ilson, chief of th e Secret Service, agencies. likes to reg ard tellers as deputy agents Mr. Baber: T h ank you, Mr. Curry. p inch-hitting for our m en w hen th ey I t is good to know th a t our efforts are not available im m ediately. are b earing fruit. And, as you say, Mr. C urry: I ’d say th a t’s a high it is alw ays su rp risin g to me w h en I com plim ent by Chief W ilson, and I find a b a n k e r w ho is not fam iliar w ith know tellers in every b an k w ill co th e background and c u rre n t activities operate w ith th e Secret Service in of the Secret Service, w hich w as es every way. tablished d u rin g th e Civil W ar. The Mr. B aber: You’re absolutely right, first and m ost im p o rta n t responsibility Mr. C urry, and you m ay be sure the of th e Secret Service is protectio n of Secret Service appreciates your sp irit of cooperation. Our relationship w ith th e P resid en t of th e U nited States. N ext is suppressing of coun terfeitin g banks and b ankers has been m ost cor of th e cu rren cy and o th er obligations dial for m ore th a n 75 years. of th e U nited States. The Secret Mr. C urry: W ill you tell us a little Service also in v estigates certain ir about y our new educational crim e reg u larities relatin g to th e F ed eral fighting plan? D eposit In su ran ce C orporation and Mr. B aber: Since it rep resen ts a o th er law s w ith w hich th e T reasu ry new approach to law enforcem ent, D epartm en t is concerned. we are ra th e r proud of th is new sys Mr. C urry: T hen I suppose th e Se tem and I shall be pleased to discuss cret Service is a ra th e r extensive o r it. The Secret Service is th e first fed ganization? eral investigative agency to attem p t M N o rth w e ste r n Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19^2 on a wide scale th e p revention of a m ajor crim e w ith o u t relying upon th e age-old m ethods of investigation, pros ecution, and im prisonm ent. Mr. C urry: T h at certain ly sounds interesting. Please continue. Mr. Baber: B ear in m ind I said th is is an a ttem p t to p reven t crime. Well, th a t’s the objective of th e Secret Service—crim e preven tio n th ro u g h ed ucation instead of crim e suppression th ro u g h th e courts and the jails. As victim s of counterfeit notes, our citi zens lost an average of $771,000 a n n u ally from 1933 to 1936. The first edu cational effort of th e Secret Service began in 1937 in sm all test areas. W hen losses from counterfeiting dropped im m ediately, th e program w as intensified by Chief W ilson to cover finally every state th ro u g h Se cret Service field offices, and it’s still going strong. Mr. C urry: I am su re you can count on th e su p p o rt of banks and b ankers th ro u g h o u t th e country. Mr. Baber: T h an k you, Mr. Curry. May I say it is th e earn est desire of S ecretary M orgenthau and Chief W il son to cooperate w ith the banks w h en ever it is possible. It m ay in te re st you to know th a t banks last y e a r lost $19,200 in accepting 2,697 bogus notes w hich slipped th ro u g h undetected in custom er deposits. Mr. C urry: Is th a t so? I ’m sure this group w ill be gratefu l if you w ill ex- 21 plain briefly th e best m ethod of de tectin g co u n terfeit m oney. Mr. B aber: W ell, anyone w ho re ceives a doubtful bill should first com p are it w ith an o th er note know n to be genuine of th e sam e ty p e and denom ination. The p o rtra it on a co u n terfeit bill is g enerally d ark and sm udgy, the oval b ackground is too d ark and fails to show th e fine cross-ruled lines w hich d istin g u ish th e genuine. The saw tooth points on th e rim of th e T re a su ry seal on a co u n terfeit are usu ally irreg u lar, and th e serial n u m b ers are spaced poorly and p rin te d unevenly. An experienced teller can spot in stin ctiv ely th e stran g e or “u n frie n d ly ” face on a co u n terfeit bill as quickly as he can iden tify th e face of a s tra n g e r before his w indow . T hrough y ears of tra in in g he acquires a sort of six th sense enabling him to dis tin g u ish betw een good and bad en g rav in g and p rin tin g . Mr. C urry: May I in te rru p t you for a m om ent, Mr. Baber; are m ost coun te rfe its p rin te d from engraved plates? Mr. B aber: No, Mr. C urry, quite to th e contrary. T he photo-engraving process has p ractically elim inated th e hand-engraver. T he photo-engraving m ethod, how ever, is incapable of re producing accu rately th e delicate lines and shadow values w hich iden tify gen uine currency. E tch in g w ith acids re su lts in in ferio r shading, p articu larly in th e p o rtraits, in w hich th e facial featu res are coarse and rough, and th e eyes lack expression and vitality. Mr. C urry. I see. B ut w h at about altered or raised notes; is th e re any p a rtic u la r m ethod by w hich th e y m ay be detected? Mr. B aber: Most asuredly, Mr. C urry. N ow adays, notes are issued in eleven denom inations and each carries a sta n d a rd p o rtra it. Study of these p o rtra its is th e b est p rotection against altered notes, and tellers w ill do w ell to disreg ard o th er ch aracteristics and iden tify a note by th e p o rtra it it bears. Mr. C urry: W ell, I have h ere a $5 bill w ith a p ictu re of A braham L in coln. You m ean if I should see L in coln’s p o rtra it on a $20 bill, I should know som ething is w rong? Mr. B aber: E xactly, Mr. C urry. You see, th e note-raiser tam p ers w ith gen uine currency, erasin g th e co rner n u m erals and denom inational le tte r ing. H e th e n su b stitu tes in p a in t or in k th e a rtistic flourishes n ecessary to increase for his ow n purposes th e n o te ’s original value. He m ay even te a r off th e corn ers of genuine bills and paste th em over th e n u m erals on notes of sm aller denom ination. H ow ever, he finds a stu m b lin g block in th e p o rtra it, w hich he cannot a lte r satis factorily. In Time of War Prepare for Peace The advice of George Washing ton to his countrymen “In time of peace prepare for war” is equally appropriate today when written in reverse. When this war ends, American banking will be confronted with unprecedented problems — and opportunities. We believe an account with us would be a benefit to you at all times. . . . THE . . . P H IL A D E L P H IA NATIONAL BANK O R G A N IZ E D 1803 PHILADELPHIA, PA. Resources over $ 6 5 0 ,0 0 0 ,0 0 0 Member of Federal Deposit Insurance Corporation N o rth w e ster n Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19^2 22 Mr. C urry: Are m any raised notes being circulated these days? Mr. Baber: Not a g reat m any. H ow ever, tellers should inspect care fully all cash deposited by refugees from A xis-controlled countries, m any of w hom have been defrauded on th e so-called “Black B ourse” in exchang ing th e ir funds for U nited States c u r rency p rio r to d ep artin g from th e ir hom e lands. T hey learn of th e ir losses only w hen th ey atte m p t to b an k th e ir m oney in th is country. Mr. C urry: T h a t’s vicious sw indling. A re such losses extensive? Mr. Baber: Most notes traceable to th e “Black B ourse” are $1 and $2 bills raised skillfully to rep resen t $100 and $500. Mr. C urry: Is it tru e th a t genuine cu rren cy is p rin ted on tw o sheets of paper? Mr. Baber: Definitely no, Mr. Curry. G enuine cu rrency paper is m ade in one sheet u nder governm ent contract. It contains tin y red and blue fibers w hich increase its tensile stre n g th and durability. The fibers are not placed in th e paper as a protective feature. Mr. C urry: T h a t’s interesting. Now w h at is th e geom etric lathe-w ork on a bill? C o n tin en ta l I llino is N atio n a l Bank a n d T rust C om pany OF CHICAG O Statem ent o f Condition , June 30, 1942 RESOURCES Cash and Due from Banks..................................$ 577,203,002.54 United States Government Obligations, Direct and Fully Guaranteed......................... 943,918,547.00 Other Bonds and Securities................................ 59,499,850.16 Loans and Discounts............................................ 263,515,028.22 Stock in Federal Reserve Bank....................... 3,000,000.00 Customers’ Liability on A cceptances............. 609,497.01 Income Accrued but N ot Collected................. 3,251,165.30 Banking H o u se ..................................................... 11,850,000.00 Real Estate Owned other than Banking House 1,717,220.93 $1,864,564,311.16 liabilities D ep osits................................................... $1,724,560,308.81 A cceptances........................................... 609,497.01 Reserve for Taxes, Interest andExpenses . . . 5,524,883.01 Reserve for C ontingencies........... .................. 17,270,133.83 Income Collected but N ot Earned.... 541,861.08 Common S tock ....................................... 50,000,000.00 Surplus..................................................... 50,000,000.00 Undivided Profits................................... 16,057,627.42 $1,864,564,311.16 U n ite d S ta 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 $209,276,878.45 a re p le d g e d to 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 itte d b y law M em b e r F ederal D eposit In su r a n c e C orporation N orth w estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19fi 2 Mr. Baber: It is th e lace-like p a t te rn in th e border, and is so-called be cause it is engraved by a v ery com pli cated m achine know n as th e geom etric lathe. It is alm ost im possible to du plicate this w ork flawlessly. Mr. C urry: I believe you told me th e governm ent issues only th ree types of notes. How m ay tellers identify the types im m ediately? Mr. Baber: By glancing at th e color of th e T reasu ry seal and serial n u m bers, w hich are blue on silver certifi cates, red on U nited States notes, and green on F ed eral R eserve notes. Mr. C urry: W hat is a b an k ’s re sponsibility w hen a teller discovers a counterfeit note, raised bill, or coun terfeit coin in a cu stom er’s deposit, and th e custom er insists upon its retu rn ? Mr. Baber: Well, I know of cases in w hich banks re tu rn e d th e co u n ter feits for fear of possible legal action. As a resu lt of th e efforts of th e Secret Service, th e Secretary of the T reasu ry issued an order October 17, 1941, au thorizing all banks to seize any and all counterfeits com ing to th e ir a t tention for su rre n d e r to th e Secret Service. Mr. C urry: W hat becomes of coun terfeits seized by th e Secret Service? Mr. Baber: T hey are held un til every possible use in crim inal p ro ceedings has been exhausted. T hen th ey are destroyed in W ashington. Mr. C urry: B ankers som etim es re ceive com plaints from custom ers claim ing to have received counterfeits from th e banks. I realize th a t w hen a bank takes in a co u n terfeit—and this does happen occasionally despite the vigilance of tellers—th ere is alw ays the possibility it m ay be paid out again innocently. In controversies betw een b ank and depositor over coun terfeits traced to a cu stom er’s account after he leaves th e bank, the bank is the u ltim ate loser, not only in the am ount involved, b ut in prestige, w hich is m ore im portant. I know of th e loss of good accounts by banks w hich failed to subscribe to th e th eory th a t “the custom er is alw ays rig h t.” W hat is your advice, Mr. Baber? Mr. Baber: Briefly, m ay I say th a t tellers m ay avoid such em b arrass m ents if th ey w ill im prove th e ir sense of observation in identifying the “u n frien d ly ” faces w hich leer at them from the average counterfeit bill or coin. L et th e ir m otto be: “By T heir Faces Ye Shall K now T hem .” Same Color “W hat kind of ice cream w ould you like, little g irl?” “I guess stra w b e rry w ould look best on m y dress.” H E W ar Dam age C orporation has issued R egulations “A ”, effective last m onth, co ntaining regulations, rules and ra te s covering quotations for in su ran ce u n d er policies to be is sued, w hich of course m ay be issued only th ro u g h a fiduciary agent. A n u m b er of th e m ore im p o rtan t clauses of th e reg u latio n s are quoted as fol lows: T Territory F o r th e presen t, in su ran ce w ill be w ritte n on p ro p erties situ ated in the C ontinental U nited States of A m erica, Alaska, V irgin Islands, H aw aii, P u erto Rico and th e Canal Zone. Effective Date and Term of Insurance The p ro d u ce r’s acceptance of th e application does not co n stitu te a b in d er. The in su ran ce applied for shall tak e effect on th e “Effective D ate,” at noon sta n d a rd tim e, at th e place w here th e p ro p e rty is located, and shall te r m in ate 12 m onths th e re a fte r at th e sam e hour. If th e application has been p ro p erly com pleted and is accom panied by full p ay m en t of prem ium , th e “Effective D ate” shall be th e date on w hich th e application is received and date-stam ped by th e F idu ciary A gent (but in no ev en t earlier th a n Ju ly 1, 1942), unless a la te r date is requ ested in th e application. sions, and coded cities of locations. The ra te for b lanket insurance shall be the ra te for the highest rated building or location. The “P ro R ata D istrib u tio n ” clause in th e policy applies w ith re spect to b lanket insurance w ritte n sub ject to less th a n 90 per cent coinsur ance. Service Fee to Producer The service fee to the producer shall not exceed 5 per cent of th e prem ium , w ith a m inim um fee of $1.00 p er pol icy, and a m axim um fee of $1,000 per policy. The service fee shall not be deducted from the rem ittan ce w hich accom panies the application. The serv ice fee m ay be paid on each policy issued, and shall become due upon the issuance of the policy and shall be payable on or before the 20th day of th e m onth following. Service fees shall be paid on renew als. Service fees m ay be paid only to producers. Coverage for Privately Owned Furs, Jewelry, Art Objects, and the Like F urs, jew elry, w orks of art, sta tu ary, paintings, pictures, etchings, an tiques, stam p and coin collections, m anuscripts, books and p rin ted publi cations m ore th a n 50 years old, models, curiosities, and objects of historical and scientific interest, w hen privately owned, m ay be specifically covered, provided th e application or th e sched ule attach ed th ereto sets fo rth sepa rately the discription, location and the am ount of coverage of th e p ro p erty to be so covered. The lim its of coverage shall be $5,000 for any one article and a total of $10,000 for any one in terest w ith respect to any and all of the fore going types of property. In any such case the fiduciary agent shall attach to the policy a separate endorsem ent (or endorsem ents) extending the cov erage of the policy to include each type of such p ro p erty so listed in th e appli cation a n d /o r the schedule, subject to the foregoing lim its of coverage. Such endorsem ent shall also state th a t the “C oinsurance” clause and “Pro R ata D istrib u tio n ” clause, both of w hich are a p a rt of the policy, shall not be appli cable to th e p ro p erty covered u n d er th e endorsem ent. Policy Exclusions U nless otherw ise specifically pro vided in w ritin g thereon in accordance w ith these regulations, th e policy shall not cover accounts, bills, currency, deeds, evidences of debt, securities, money, bullion, stam ps, furs, jew elry, precious and sem i-precious stones, w orks of art, statu ary , paintings, pic tures, etchings, antiques, stam p and coin collections, m anuscripts, books Policy Form and Coverage In su ran ce w ill be w ritte n only on th e form of policy prescribed by the corporation. The policy w ill over only direct physical loss of or dam age to th e p ro p e rty insured. The policy does not provide consequential coverage, such as use and occupancy, re n t and re n ta l value, or coverage for o th er in d irect losses. On Fire On Ordinary Resistive ConstrucConstruction tion Churches, hospitals, public buildings________ 10c Apartments, office buildings, warehouses___15c Manufacturing plants, wharves, bridges____ 20c Railroads and public utilities_____________ Rolling Stock_____________________________ Blanket Insurance Roadbeds and trackage___________________ W here m ore th a n one p ro p erty is Floaters for movable property (with 100 per u n d er th e sam e ow nership w h e th e r at cent coinsurance m andatory)___________ one or m ore locations, all such p ro p erties m ay be in su red u n d e r one policy Property in transit for an am o u n t of in su ran ce covering 25c Vessels under construction b lan k et on all such p roperties, p ro Vessels devoted to storage or industrial use__50c vided th e application (and th e sched ule, if any) shall set fo rth th e ap p ro x i Ferries, commercial bulls, storage cargo, 50c pleasure craft m ate d istrib u tio n of th e to tal coverage Pleasure watercraft and pleasure aircraft on all such p ro p erties according to th e respective states, te rrito rie s, posses (when not in u se )--------------------------------- 15c 20c 30c 30c 30c 10c 25c 3c 3 7 14 c 75c 75c N o rth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis O n I\ onelassified 25c August 1942 24 and p rin ted publications m ore th a n 50 years old, m odels, curiosities, objects of h istorical or scientific in terest, pleasure w a te r craft, p leasu re aircraft, stan d in g tim ber, grow ing crops, o r chards, or any real p ro p e rty w hich is not a p a rt of a stru c tu re or building. Explanation of Coinsurance Clause T he effect of th e “C oinsurance” clause is to assess equitably th e cost of th e insurance. The follow ing is one illustration: Value ........................................... $10,000 In su ran ce req u ired by (50%) C oinsurance Clause . . . 5,000 In su ran ce actually carried . 5,000 L o s s ............................................. 1,000 In th is case, th e p ro p e rty ow ner has carried sufficient in su ran ce to com ply w ith th e 50 per cent “C oinsurance” clause and, th erefore, th e loss of $1,000 w ould be paid in full. Follow ing is an o th e r illustration: Value .............................................. $10,000 In su ran ce req u ired by (50%) C oinsurance Clause .............. 5,000 In su ran ce actu ally carried . . 2,500 Loss ........................................... 1,000 In th is case, since th e p ro p e rty ow n er has carried only one-half of th e re quired am o u n t of insurance, he wcmld collect b u t one-half of his loss. The p ro p erty ow ner w ould th e n recover only 50 per cent of his loss, or $500. In th e case of a to tal loss u n d er e ith e r illu stratio n , th e p ro p e rty ow ner w ould collect th e face am ount of th e policy. New Book on Money Bank Builders G o to W ar A brochure or booklet of u n usual in terest, en titled “Y our M oney and the F ed eral R eserve System ,” has been issued by th e F ed eral R eserve B ank of M inneapolis, and produced un d er th e supervision of Oliver Powell, first vice p resid en t of th e bank. The book is p rofusely illustrated, and w hile, of course, educational in n atu re, is so arran g ed th a t it should provide a h igh ly successful m edium th ro u g h w hich all persons not fam iliar w ith th e set up of th e F ederal R eserve System w ill gain a factual, w orking know ledge of th is b ran ch of our national banking operations. “B ankers have co n tributed m ore to the w ar effort th a n m ost of them real ize,” points out J. B. Gander, president of th e B ank B uilding & E quipm ent Corporation of America, St. Louis. “W ithout th e ir support for th e past th irty years, our organization w ould h ard ly be in a position today to tu rn out m illions of dollars of w ar goods. Our experience in building and m od ernizing over 1,000 banks—th a t’s a co ntract com pleted every ten days— forced us to develop a com plete organ ization, in order to handle every con ceivable type of building and m oderni zation problem .” * Declare Dividend The board of directors of M anufac tu re rs T ru st Com pany declared th e re g u la r q u arterly dividend of 50 cents p er sh are on th e com m on stock, p ay able on Ju ly 1, 1942, to stockholders of record on Ju n e 15, 1942. The board also declared th e reg u lar q u a rte rly dividend of 50 cents per sh are on th e p referred stock, payable Ju ly 15, 1942, to stockholders of record on Ju n e 30, 1942. D. -* Dies in Philadelphia Joseph W ayne, Jr., re tire d president of th e P hiladelphia N ational B ank and of th e P hiladelphia Clearing H ouse A ssociation, and p erhaps Philadel p h ia ’s b est know n and m ost influential banker, died th ere recently. Mr. W ayne, a descendant of “Mad A n th o n y ” W ayne, w as 68 y ears old. 'r J. B. G A N D E R T h at this “com plete” organization is gettin g things done fast today, is indi cated by th e Commodity Credit Cor p o ratio n ’s placem ent of a co ntract w ith th is firm for 4,000 bins, to be com pleted in sixty days. Some idea of the scope of th e job can be gained from the fact th a t these “bins,” in reality, are alm ost as large as sm all b unga lows, and alm ost as substan tially built. D raw ing on its experience in build ing and m odernizing some of A m eri One thousand Allied Mutual agents continued to ca’s largest banks, th e B ank B uilding send an increased number of applications to their & E q u ip m en t Corporation adapted home office during the first six months of 1942. peace-tim e techniques for “getting This splendid production was aided by the fact things done.” To expedite g etting in to production quickly on vitally that Allied Mutual agents offer popular farm liability, needed w ar goods, Mr. O rabka th rew public liability, workmen's compensation lines in his en tire organization into the task addition to full coverage automobile protection. of g etting m aterial . . . m illions of feet of lum ber; thousands of pounds of nails; carloads of plum bing and h eating supplies. L iterally thousands of telegram s w ere dispatched to sup i C A S U A L T Y COMPANY pliers all over th e U nited States. As th e ir affirm ative replies came in, or / H a ro ld S. E vans, P re sid e n t ders w ere of necessity placed over the long distance telephones, later con DES MOINES / Y " ., i H u b b e ll Bldg. Des M oines, Iow a firm ed in w riting. Agents Continue Gains First Six Months in 1942 • N orth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis j ALLIED MUTUAL August 1942 V- 25 As do m an y executives engaged in w ar production, M essrs. G ander and O rabka both feel th a t th e experience th e ir o rganization w ill gain d u rin g th e p re se n t em ergency w ill re su lt in m any technological advancem ents in both m aterials and m ethods; and th a t such progress w ill co n trib u te m uch to b e tte r b an k con stru ctio n a fte r th e w ar. “W hile we are h eavily engaged in w ar produ ctio n ,” states Mr. G ander, “a good po rtio n of our organization is still engaged in b an k m odernization. W hile W PB reg u latio n s lim it such w o rk to $5,000, we find th a t figure provides us w ith considerable latitude, since long ago we learn ed how to 's tre tc h ’ b a n k e rs’ dollars. No b an k er w ho really needs m odernization should h esitate to go ahead. W e con ten d it is u n p atrio tic to do so, since b a n k e rs are in th e w ar as m uch as the re st of us. W ar-tim e financing is ju st as im p o rtan t as w ar-tim e produ ctio n .” Dividend The board of directo rs of th e Chem ical B ank & T ru st C om pany have de clared th e re g u la r q u a rte rly dividend of 45 cents p er sh are on th e capital sotck of th e bank, payable early last m onth, to stockholders of record Ju n e 15, 1942. Trust Promotions With Des Moines Firm The M ercantile-Com m erce B ank and T ru st Com pany announced th e ap pointm ent of Joseph A. M cCarthy as tru s t officer and Jo h n P. B utler as associate tru s t officer. Both have been connected w ith th e tru s t d ep artm en t for m any years, and p rio r to th is ap p o intm ent M cC arthy served as asso ciate tru s t officer and B utler as an a ssistan t tru s t officer. W heelock and Cum m ins, Des Moines in v estm en t bankers, announce th a t Ira D. A llen and F red E. G aehner, YOU ARE A SELECT RISK Savings and Loan Dividend D irectors of th e Tw in City F ederal Savings and Loan A ssociation, M inne apolis, have declared a sem i-annual dividend a t th e ra te of 3 per cent per annum , payable Ju n e 30, according to announcem ent by Roy W. L arsen, vice president. T his is th e 39th con secutive sem i-annual dividend paid by th is association since its organization. Since 1936, dividends have been at the ra te of 3 p er cent p er annum . Resources of th e association now exceed $16,500,000. M em ber’s accounts have increased m ore th a n a m illion dollars since th e first of th e year, ac cording to Mr. Larsen. This makes it possible for you to secure high grade insurance at about half the usual cost. Thousands of bankers all over the country carry our accident and health insurance. You are a better citizen with your income protected. Insurance paid up to Dec. 15th for only S2.00. Write for lit erature and applications. Minnesota Commercial Men’s Association “Papa, w h at is a pro p h et?” “My son, a pro p h et is a m an w ho tells you w h at is going to happen but doesn’t bet any m oney on it.” 2550 Pillsbury Ave. Minneapolis, Minn. Assistant Cashiers E d w ard E. Brow n, p resid en t of th e F irs t N ational B ank of Chicago, a fte r a re g u la r m eeting of the board of di rectors, announced th e ap p o in tm en t of W illiam C. H. Dobbeck, W alter A. G rau, and A rth u r B. N o rth ro p as a s sis ta n t cashiers. All w ere prom otions fro m th e staff as each of th e m en h ad b een em ployed by th e b an k for m an y years. Northern Trust Dividend T he board of directo rs of th e N o rth e rn T ru st Com pany have declared th e 178th consecutive q u a rte rly dividend. T his dividend of $4.50 w as payable last m o n th to stockholders of record a t th e close of business Ju n e 16th. Build Business w ith Plenty of Field Help W e ste rn M utual a g e n ts alw ays h av e a t th e ir disposal p len ty of in te llig e n t, tra in e d field service m en. T his e x tra service m ay m ean m uch to y o u r agency. In v e s tig a te it now. k L e g a l R ese rv e FIRE and AUTO POLICIES EMPLOYERS MUTUAL STANDARD POLICY FORMS Western Mutual CASUALTY COMPANY DES MOINES An Agency Company — Assets Over $4,000,000 • Automobile Insurance • Workmen’s Compensation • General Liability • Elevator Insurance * Plate Glass Insurance Fire Insurance C om pany : N in th and G ran d Des M oines, Iow a ‘"Orer a Third o f a Century o f Safety and Service with Savings” N o rth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19k2 26 both of Des Moines, have becom e affili ated w ith th e firm, and th a t R. W. Mellen, of Mason City, has also become a re p resen tativ e of th e com pany. Messrs. Allen and G aehner w ere for a num b er of y ears w ith Jackley and Company, Des Moines. for several years. A few w eeks ago he en tered the em ploy of th e C entral N ational B ank & T ru st Company. Be fore w orking w ith Jackley and Com pany, he had been w ith Jesse M. Stev enson In v estm en t Company. Mr. Bowen w as th e son of Cromwell Bowen, w idely know n a tto rn ey of m any y ears ago. Tom Bowen Dies T hom as M. Bowen, 42, died a t his hom e in Des M oines a fte r suffering a h e a rt attack. He had been associated w ith Jackley and Company, an in v estm en t house, Chicago Auditors Elect At the recen t ann u al m eeting of the Chicago B ank A uditors Conference, R. O stengaard, com ptroller auditor of the Live Stock N ational Bank UNION ST O C K YARDS • TELEPHONE YARDS 1220 STATEMENT OF Council Bluffs Savings Bank RESOURCES C a sh a n d d u e f r o m b a n k s ......................................... $2 1 , 7 9 1 , 6 9 0 . 0 0 U n i t e d S tates G o v e r n m e n t s e c u r i t i e s ................... 6 ,2 3 6 ,9 5 9 .2 0 State a n d m u n i c i p a l s e c u r i t i e s ................................. 7 8 0 ,6 8 1 .7 6 O t h e r m a r k e t a b l e b o n d s ............................................ 9 9 3 ,8 4 7 .9 1 5 ,7 4 2 ,6 0 2 .2 8 L o a n s a n d d i s c o u n t s .................................................... F e d e r a l R e s e r v e B a n k s t o c k ..................................... 7 5 ,0 0 0 .0 0 B a n k b u i l d i n g ................................................................. 4 2 5 ,0 0 0 .0 0 I n t e r e s t e a r n e d , n o t c o l l e c t e d .................................. 3 9 ,7 9 7 .5 9 C u r r e n t r e c e iv a b le s a n d o t h e r a s s e t s ................... 8 ,1 0 5 .9 8 $ 3 6 ,0 9 3 ,6 8 4 .7 2 LIABILITIES C a p i t a l .................................................................................$ 1 , 0 0 0 , 0 0 0 . 0 0 S u r p l u s ................................................................................ 1 ,5 0 0 ,0 0 0 .0 0 Und d e d profits a n d r e s e r v e s ............................... 13 9 ,1 2 0 .5 8 U n e a r n e d d i s c o u n t ....................................................... 2 7 ,4 9 3 .5 8 D e p o s i t s ............................................................................. 3 3 , 4 2 7 , 0 7 0 . 5 6 $ 3 6 ,0 9 3 ,6 8 4 .7 2 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 P rovidence, R. I. P resid en t, U nion Stock Y a r d & T r a n s it Co. R o b e r t J. D u n h a m In vestm en ts W il lia m J. O ’C o n n o r R ic h a r d H a c k e t t A ss’t G e n e r a l M a n a g er, Union Stock Y a r d & T ra n s it Co. G e n e ra l M a n a g er, C entral M a n u fa c tu r in g D is tr ic t R a l p h M. S h aw O r v is T. H e n k l e W inston, S tr a w n & S h a w V ic e -P re sid e n t a n d G en era l M a n a g er, U nion Stock Y a r d & T r a n s it Co. T h o m a s e . W il so n C h a irm a n o f the B o a rd , W ilson & Co., Inc. D a v id H. R eim ers P resid e n t, T h e L iv e Stock N a tio n a l B a n k o f Chicago SERVI NG AGRICULTURE AND I NDUSTRY fftn c e JS68 M E MB E R F E D E R A L N orth w estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D E P O S I T August 19?i2 In stead of paying th e bonuses in cash, th ey are autom atically placed in W ar Bonds, so th a t th e agents are building up th e ir com m ission incom e and a t the sam e tim e increasing th e ir in v estm en t in th e bonds w hich are essential to the w inning of th e w ar. One in terestin g featu re of th e plan is th at, instead of p u rchasing the bonds centrally, th e com pany sends an appli cation and its check to th e local b ank designated by th e agent, so th a t credit for the sale of th e bond goes to the ag en t’s own com m unity. CONDITION June 30, 1942 BOARD Live Stock N ational Bank, w as elected president; W. E. H arrison, a ssistan t au d ito r of the City N ational B ank & T ru st Company, vice president; P. H. Cordes, au d ito r of the Lake Shore T ru st & Savings Bank, treasu rer, and D. J. MacDonald, a ssistan t auditor of th e N o rth ern T ru st Company, secre tary. The Chicago Conference is a m em ber of th e N ational A ssociation of B ank A uditors & C om ptrollers w hich has 49 conferences in cities th ro u g h o u t the U nited States. I N S U R A N C E C O R P O R A T I O N B. A. Gronstal, p resident of the Council Bluffs Savings Bank, Council Bluffs, Iowa, in th e statem en t of his ban k for Ju n e 30, 1942, show s deposits of $5,245,000, loans of $3,122,000, capi tal stock $150,000, and surplus and u n divided profits of $309,000. The officers of th e bank are as fol lows: B. A. Gronstal, president; E. P. S choentgen, vice presid en t and ch air m an of board; J u liu s Rosenfelcl, vice president; E. H. Spetm an, cashier and tru s t officer; John M. Jurgens, E. P. Juel, John B. K eeline and D. E. H esse, a ssistan t cashiers, and E averne Tollinger, a ssistan t tru s t officer. Alien investment Company H arold L. Allen, Des Moines in vest m ent dealer, announces th e opening A ugust 1st of th e H arold L. A llen In vestm en t Company, a t 412 E quitable Building, Des Moines. Mr. A llen has been in th e invest m en t business in Des Moines for the last 15 y ears and recently has been vice p resid en t of F irst Securities Cor poration of Des Moines. A ssociated w ith Mr. A llen in the new firm w ill be Charles E. Deuben, form erly assistan t m anager of the Goodbody & Com pany offices and, p rio r to th at, w ith Babcock, R ushton & Company, Des Moines offices. A nother associate w ill be Clarence S. Sm ith, w ho has been w ith F irs t Se curities C orporation in recent years. 27 Government Inflationary Attitude Pushing M arket Up "It Will Take More Than Inflation Talk W e Have Had So Far to Support a Rising Stock Market" N othing th a t h a p pened in Ju ly on th e w orldw ide b a t tle fro n t w as good for our side — bu t th e m ark ets p re tty w ell d i s r e g a r d e d th e news. C ertain ly none of these de velopm ents could be in te rp re te d as op tim istic—th e G erm an gains in Russia, R om m el’s success in E g y p t w ith his G erm an and Ita lia n troops, fu rth e r Jap an ese landings in th e A leutians and New G uinea, th e continuous loss of cargo ships in th e C aribbean and off our east coast. M a rkets in this country, how ever, w ere strong enough to sh rug off bad n ew s— especially the stock m a rk e t— w ith the talk of inflation again in the new s. W e are w ritin g this M onday m orning, the 27th— there is still a w eek to go— but at this po in t stocks record a gain fo r the m onth. On J u ly 1st the in dustrial averages com piled by Dow Jones w ere 103.34—Saturday, J u ly 25th, th e y closed at 106.53, a gain of 3.19 points in tw enty-one days of trading. The high p oint of the m o n th was J u ly 16th, w h e n the averages hit 108.91— a recovery of alm ost 17 points fro m the low of the year of 92.92 on A p ril 28th. At no tim e during the m onth did volum e of trading on the B ig Board reach a level w h ich is considered the break-even point finan cially for bro kers—a m illion shares. In fact, on Saturday, the 18th, the volu m e w as 99.000 s h a r e s— th e lo w e s t in tw e n ty fo u r y e a r s. T h e b ig g e s t g a in in th e a v e r a g e s w a s reco rd ed o n th e 8th w h e n th e m a r k e t r o se 2.18 p o in ts— th e v o l u m e th a t d a y Avas 570,800 sh a r e s. T he s h a r p e s t drop Avas 1.38 p o in ts on th e 23rd— th e v o lu m e , h o w e v e r , b e in g o n ly 333.000 sh a r e s. U p to th is w r itin g th e r e h a v e b een tAvelve d a y s in th e m o n th w h e n sto c k s im p r o v e d — n in e d a y s o f d eclin e . D evelopm ents in AVashington d u r ing th e p ast few w eeks have been help ful to th e stock m a rk e t—regard less of The Month's Market Maneuvers Prepared for The Northwestern Banker By Jam es H . Clarke Assistant Vice President American National Bank & Trust Co. Chic ago how bad th e u ltim ate effect of the econom y of th e co u ntry m ay be. The action of th e N ational W ar L abor B oard p erm ittin g an o th er increase in w ages of steel w o rk ers—th e failure of C ongress to su p p o rt o ther ceilings— especially on farm prices—are defi n itely inflationary. W ith tw o or th ree groups receiving increased incomes, costs of living m ust rise — and, of course, to th e d etrim en t of those class es—v ast in nu m b er—w hose incomes rem ain th e same. This, coupled w ith a dim inishing supply of available con su m er goods, m u st force prices higher and higher. A nd in th e absence of effective price ceilings th is w ill prove to be serious. Som e of this excess w ill spill over into the stock m a rk e t— som e already has— but in the absence of eventual currency inflation, such a developm ent cannot be looked upon as a stable or lasting developm ent. U ltim ately the earnings of corporations, the dividends th ey are able to pay, th eir vulnerabil ity to n ew taxes, th eir general posi tions in the w ar econom y— these and a fe w other fu n dam ental factors w ill determ ine stock values. E arnings re ports released this w eek have not been good — g o vernm ent contracts are not proving to be v e ry profitable— and a stiff tax bill is now in the Senate. I t w ill be S ep tem b er, in all probability, before it is ready for the House and Senate Conferees to iron out th eir dif ferences. I f fu rth e r earnings sta te m en ts are poor and the discussions of the tax bill are unpleasant, it w ill take m ore than the inflation talk w e have had so far to support a rising stock m arket. T h e g o v e r n m e n t b o n d m a r k e t a c te d Avell in J u l y — th e s t e p p in g u p o f d is c o u n t b ill s a le s to $350,000,000 w e e k ly , a n d th e o ff e rin g of $2,000,000,000 in 2s o f 12- 15- 51/49 — b o th b e in g Aveil receiAred . T h e a llo tm e n t o f o n ly 52 p e r c e n t o f s u b s c r ip tio n s o n th e 2s is a g o o d c lu e to Iioav Avell th e y w e r e a c c e p te d — a s th e ta l k o n th e d a y o f th e o ff e rin g AA'as t h a t a llo tm e n ts m ig h t r u n a s h ig h a s 75 p e r c e n t. It p ro b a b ly Avill b e a g o o d p o lic y f o r b a n k s to fig u r e o n re c e iA in g 50 to 75 p e r c e n t o f Avhat th e y s u b s c r ib e f o r in th e f u t u r e — a t le a s t, o n b o n d o ffe rin g s — a n d gOAre r n t h e i r s u b s c r ip tio n s a c c o rd in g ly . In short, the old days of receivin g in allotm en ts on ly 10 or 12 per cent of the am oun t you put in for are gone —buy up to you r lim it—but don’t OAre r subscribe. The days of such profits Avith bonds bid up to su bstan tial pre m ium s fo llo w in g the offering are also gone. The turnover a ctivity in your govern m en t portfolio should be kept to a m inim um . B uy w h a t you can and hold them — but don’t churn them round w ith the hope th a t you w ill pick up an extra thirty-second of a point. M unicipal bonds w ere stro n g er d u r ing th e m onth. T here w as one siz able offering—th e $17,100,000 of City of D etroits. At th is w ritin g th ere is b u t little on th e horizon in the w ay of new offerings. E ven some of the w eaker revenue bonds acted b e tte r— b ut b ankers w ho have not already combed th e ir lists for those issues fully or p artly dependent on tolls or gas taxes had best do it. Railroad bonds, after a sin kin g spell in June, picked up a bit in July. I n vestors have again become encouraged by the consistently good earnings and outlook for the rails— at least, so long as the w ar lasts. Rails w ith their heavy capitalization do not face the tax problem s that other industries do — and that has encouraged buying here and there. There is a bill in W ashington w hich w ould perm it sol v e n t roads w ith bonds selling at sharp discounts— such as N ew Y ork Central and S outhern Pacific— to buy these in w ith th eir excess fu n d s— and th en re tire th em w ith o u t paying the incom e N orth w estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1912 28 tax on the m ore or less theoretical profit w h ich results. Because of the rails’ poor earnings in recent years— because of low ratings— m o st banks and insurance com panies xoon’t and can’t buy them . W ith these tw o b u y ers out of the m a rket, a d m itted ly it is difficult fo r these bonds to do m u ch — especially w h e n no one seem s to w ant to be caught w ith rail bonds w h e n the w ar ends. B u t there are a fe w bright spots now. P ublic u tility bonds—the best grades — have held w ell, but there have been som e price con cession s in the m edium grades. The u tilities in m any cases face three ev ils—h igh er taxes for one; h igh er w age and m aterial costs for a second; and low er rates for a third. T here is not m uch neAV financing in sight. The Treasury, of course, plans to raise about $2,000,000,000 in A ugust —partly through reopening th e reg is tered 2 1 4 s of 1972/67 (the tap issu e) to in stitu tio n s. If as m any as $800,000,000 are sold, perhaps the Treasury can get by in A ugu st by step ping up bill sales—if not, it can resort to an other Certificate of In debtedness. It m ay be n ecessary to lo w er reserve re quirem ents in N ew York and Chicago — aside from that, n o th in g spectacular seem s lik ely in the govern m en t m ar ket. Chase National Promotions F red C. E ggerstedt, Jo h n J. Lendrum , Jo h n D. R evene and Carl W. W eis have been prom oted to second vice p residents of the Chase N ational Bank. Cloyd H. H uffard w as ap p o in t ed an a ssistan t cashier. Guaranty Trust of New York In th e Ju n e 30, 1942, statem en t of th e G u aranty T ru st Com pany of New York, the deposits w ere $2,289,224,762, w ith capital stock of $90,000,000, su r plus fund of $170,000,000 and undivided profits of $19,470,856. The total U. S. governm ent obligations am ounted to $1,306,319,482. Mercantile-Commerce Bank and Trust Company The M ercantile-Com m erce B ank and T ru st Com pany of St. Louis, in th e ir Ju n e 30, 1942, statem ent, show ed de posits of $225,311,000, w ith capital stock of $10,000,000, su rplus of $4,000,000 undivided profits of $3,318,000. The total U. S. governm ent obligations am ounted to $79,000,000. THEY’RE COMINGMILLIONS STRONG! ■ Close Des Moines Office Goodtaody & Co., in vestm ent and com m odity brokers, discontinued th eir Des Moines office, effective last m onth, according to an announcem ent by LaV erne M. Barlow, resident m anager of the firm. A sim ultaneous announcem ent by W illiam H. Sievert, m anager of the Des Moines office of L am son Bros. & Co., 207 E quitable building, revealed th a t B arlow and Charles E. Deuben, assistan t m anager of th e Goodbody of fice, w ill join the Lam son firm. ig g * . ' ND MILLIONS MORE will see that they will get where they are going À with plenty of ammunition and food. Yes, they are well fed. The best fed army in the world! Organized agriculture is back of them. The well rounded programs under the guidance of the U. S. Department of Agriculture, through its state and county war boards, result in intelli gent production— the kind of food they need and plenty for the future. It requires large sums of moneyfor this stepped-up production. City dollars are put to work on farms and ranches through the Federal Intermediate Credit Banks, which issue in exchange their consolidated collateral trust debentures. These conservative, safe investments supply the sinews of war in the form of production loans to hundreds of thousands of farmers throughout the Nation — loans made by local credit institutions. THE FEDERAL INTERMEDIATE CREDIT BANKS SPRINGFIELD, MASS. LOUISVILLE, KY. ST. PAUL, MINN. BALTIMORE, MD. NEW ORLEANS, LA. OMAHA, NEB. BERKELEY, CAL. COLUMBIA, S. C. ST. LOUIS, MO. WICHITA, KAN. SPOKANE, WASH. HOUSTON, TEX. F u r t h e r in fo r m a tio n r e g a r d in g th e D e b e n tu r e s m a y b e o b t a in e d fro m CHARLES R. DUNN, F is c a l A g e n t N o rth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19h2 31 Nassau Street, New York, N. Y. A B A Cancelled The A dm inistrative Com m ittee of the A m erican B ankers A ssociation has voted unanim ously to cancel plans for holding a convention of the Associa tion this year. The convention w as to be held in D etroit, Septem ber 27-30. A lthough plans for th e convention have been cancelled, th e A ssociation will m ain tain a direct and practical w orking relationship w ith its m em bers th ro u g h o u t th e d u ration of the em ergency. T his w ill be done through the extension of clinics and other in ti m ate types of g ath erings w hich, by reason of size and geographical re p re sentation, offer no serious tra n sp o rta tion problem s. These m eetings w ill enable Associa tion officers, com m itteem en, m em bers of the staff and o thers to b ring to the m em bership tim ely discussions of problem s and activities th a t affect w artim e banking. E v ery channel of 29 com m unication betw een th e Associa tion and its m em bers w ill be k ep t open and used effectively. Elected Assistant Cashier George J. F itzg erald has become associated w ith th e A m erican N ational B ank and T ru st Com pany of Chicago in an official capacity, h aving been re cently elected to th e post of a ssista n t cashier by th e b a n k ’s board of di rectors. able th ro u g h th e W ar Dam age Corpo ration. The letter suggests th a t banks in terested in th is type of w ar dam age in surance should consult insurance brokers and agents, w ho w ill p rep are applications for policies. F inancial in stitu tio n s in th e coastal areas and o th er regions are requesting m ortgagors to apply for and carry WDC in surance on m ortgaged real es tate, the le tte r states. “W h eth er m o rt gagees have th e rig h t to compel m o rt gagors to pay for such insurance de pends upon th e w ording and in te n t of th e m ortgage agreem ent,” it says. Should m ortgagors decline to carry WDC policies, the com m ittee points out in its letter, Rule 10 of the reg u lations of th e W ar Damage Corpora tion provides banks w ith an o pportu n ity to p rotect th e ir m ortgage in te r ests. “U nder th is ru le,” th e letter states, “banks and o ther financial in stitu tio n s m ay purchase b lan k et cover age to protect th e ir in terests in real estate m ortgages, ch attel m ortgages held as collateral to consum er credit loans, and o ther p ro p erty co nstituting collateral for com m ercial loans.” n u r U lT IM V y GENERAL MOT ORS ACCEPTANCE CORPORATI ON is engaged prim arily in facilitating wholesale distribution and retail sales of consumer goods m anufactured by G E O . J. F IT Z G E R A L D Mr. F itzg erald w as fo rm erly a n a tional b an k exam iner in th e Seventh F ed eral R eserve D istrict, hav in g served continuously in th a t capacity since 1929. P rio r to th a t tim e he w as associated for several y ears w ith Chi cago banks. He is a nativ e of Chicago and atten d ed H oly Cross School and C athedral College, continuing his stu d ies a t St. M ary’s U niv ersity in B alti m ore, w h ere he received his degree of B achelor of A rts and M aster of A rts. F ollow ing service in th e arm y in th e last w ar, he re tu rn e d to Chicago, w h ere he has since resided. liquidating credits, which are widely diversified as to region and enter' p rise , c a p ita l e m p lo y e d b e in g in excess o f e ig h ty m illio n d o lla rs. G en era l M otors C orporation In obtaining short term accommo and its affiliates or sold by dealers d a tio n , G M A C issu es o n e s ta n ' in its products, such as automobiles dard form of note. This and trucks; refrigeration and air conditioning ap obligation it offers to GENERAL pliances; lighting, power banks and institutions, MOTORS in convenient m aturities and heating equipm ent. INSTALM ENT a n d d e n o m in a tio n s at T he business consists of investm ents in selfP L A N current discount rates. These EXECUTIVE notes OFFICE NEW YORK - BRANCHES IN PRINCIPAL Public U tility In dustrial R a ilro a d M unicipal A.C.ALLYNandcompany In corporated 10© W est Monroe Street, Chicago N ew York R ep resen ta tiv es: M ilw aukee W aterloo Omaha Des Moines Boston Cedar Rapids N o rth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CITIES BONDS Insurance for Bank Funds W ar risk in su ran ce p rotecting b an k s ag ain st losses in m oney and secu rities as a re su lt of air raids or o th er enem y action, or defense opera tions of th e U nited States arm ed forces, w ill in all likelihood be m ade available by th e W ar Dam age Corpo ra tio n w ith in th e n ex t m o n th or two, according to th e In su ran ce and P ro tective C om m ittee of th e A m erican B ankers A ssociation. In a le tte r sen t by th e com m ittee to th e A ssociation’s en tire m em bership, it is pointed out th a t insurance ag ain st loss or dam age to real estate on w hich b an k s hold m ortgages, as w ell as b an k in g prem ises, is now avail- are available, in limited amounts, upon request. August 1942 30 Dedicate Service Roster C ontinental-Illinois P o st No. 383, the only b an k post in th e A m erican L e gion, dedicated last m o n th th e 9% by 9-foot trip a n e l service ro ste r of the C ontinental-Illinois N ational B ank and T ru st Com pany of Chicago in honor Harold L. Allen an n o u n ces the opening of the HAROLD L. ALLEN INVESTMENT COMPANY at 412 Equitable Bldg. Des M oines ★ ★ ★ T he S e rv ice M e n ’s R o ste r o f th e C o n tin e n ta l Illin o is N a tio n a l B a n k & T ru s t C om pany w h ich w as d e d ic a te d la s t m onth. With Mr. Allen will be associated of th e b a n k ’s 210 m en w ho are serving in th e arm ed forces. CHARLES E. DEUBEN T his service m en’s ro ster stands on th e first floor of the bank and is em bellished by a photom ontage of en larged w ar pictures, p rin ted in a sub dued tone of grey, w hich form the background for the nam es of the serv ice men. The m ontage is divided into th re e panels, each six feet ten inches high, and to g eth er nine feet wide. T hese picture-covered panels form the face of th e stru c tu re w hose base is eighteen inches thick. The su rm o u n t ing w aln u t e n tab latu re carries, in high relief, a golden eagle and a colorful ribbon w ith th e letterin g , In the A rm ed F orces. The over-all heig h t of an d CLARENCE S. SMITH ★ ★ ★ THE HAROLD L. ALLEN INVESTMENT CO. 412 Equitable Bldg. DES MOINES Telephone 3-3251 Teletype DM93 Federal Home Loan Bank of Des Moines Des Moines, Iowa STATEMENT OF CONDITION JULY L 1942 RESERV ES A d v a n c e s to M e m b e rs ..............................................................................................................................$14,073,624.25 U . S. G o v e rn m e n t O b lig a tio n s a n d S e c u ritie s f u lly G u a ra n te e d b y U . S ....................... 4,050,110.84 A c c ru e d I n t e r e s t R e c e iv a b le .............................................................................................................. 33,843.22 D e fe rre d C h a rg e s a n d O th e r A s s e t s ................................................................................................ 4,407,68 C ash ................................................................................................................................................................ 5,045,559.95 the stru c tu re is nine and one-half feet, and it is flanked on each side by a grosgrain silk flag. In addition to th e trip an el stru c tu re carry in g the nam es of th e b a n k ’s m en in th e arm ed forces, an llx20-foot m ul tista r service b an n er hangs in the colonnade on th e second floor of the bank. Opens New Branch Jam ieson & Company, a New York Stock E xchange brokerage firm whose h ead q u arters are in M inneapolis, re cently reversed the usual tre n d in the brokerage in d u stry by opening a new b ranch instead of closing one. T heir new b ranch is in Sioux Falls, South JAMIESON & COMPANY Stocks Bonds Grain Q Cotton Butter Eggs Commodity Brokers $23,207,545.94 L I A B I L I T I E S A N D C A P IT A L C a p ita l S to c k S u b s c r ip ti o n s .......................................................................... ^ D e b e n tu re s O u ts ta n d in g .............................................................................. P re m iu m s on D e b e n tu re s ............................................................................ D e p o s its — M e m b e rs a n d A p p lic a n ts ....................................................... A c c ru e d I n t e r e s t P a y a b l e .............................................................................. D iv id e n d s P a y a b le J u ly 7, 1942: M e m b e r I n s tit u tio n s ..................................................... ......................................... $ 22,539.80 R e c o n s tru c tio n F in a n c e C o r p o r a t io n ........................................................ 55,461.75 S u r p lu s : R e s e rv e s ........................................................................................................................ $682.940.12 U n d iv id e d P r o f its ................................................................................................... 239,884.20 Members $10,458,000.00 1 0 , 0 0 0 , 0 0 0 .0 0 New York Stock Exchange 2,700.72 1,712,789.04 33,230.31 and Other Principal Exchanges 78,001.55 Government — Municipal Corporation Bonds • CHARLES C. RIEGER 922,824.32 $23,207,545.94 ^ P a r t ic i p a tio n in $91,500,000.00 c o n s o lid a te d F e d e ra l H om e L o a n B a n k d e b e n tu r e s o u ts ta n d in g , w h ic h a r e th e j o i n t a n d s e v e ra l o b lig a tio n s o f th e tw e lv e F e d e r a l H o m e L o a n B a n k s . ST. PAUL MINNEAPOLIS Manager Bond Department Minneapolis — Atlantic 8235 N orth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19k2 31 D akota, w ith th e office in charge of R obert J. D alton, w ho has been w ell and favorably know n in in v estm en t and g ra in circles for m any years. In estab lish in g th is branch, Jam ieson & Com pany bought th e assets of th e old Gefke-Dalton firm and and th u s p ro vides Sioux F alls and th e su rro u n d in g area w ith first class facilities for tra d ing in all com m odities as w ell as stocks and bonds. The office will fu rn ish con tin u o u s quotation service and direct w ires to all prin cip al m arkets. The opening of an office in Sioux F alls by Jam ieson & Com pany w as a n a tu ra l developm ent as it rounded out this com pany’s coverage of th e Middle W est area. Its o th er offices are located in M inneapolis, St. Paul, D uluth, F a r go and G rand F orks. A^merican National, Chicago Official Changes Resources of th e A m erican N ational B ank and T ru st Com pany of Chicago totaled $95,366,142 on Ju n e 30, 1942, com pared w ith $93,023,254 on A pril 4, 1942, th e date of th e previous sta te m ent call by th e com ptroller of c u r rency. D eposits increased betw een these call dates from $87,076,336 to $89,493,057. D em and deposits advanced from $75,669,682 to $82,014,901, w hile savings deposits advanced slightly from $5,917,967 to $6,146,689. U. S. governm ent deposits dropped from $5,425,412 to $1,266,738. At th e recent reg u lar m onthly m eet ing of the board of directors of th e N o rth ern T ru st Com pany the follow ing official changes w ere made: Don. H. McLucas, from a ssistan t secretary to attorney; A lfred T. Capps, Jr., and Jam es D. Green, to a ssistan t secreta ries. Named Iowa Member E ugene McGuire, p resid en t of McGuire-W elch & Co., Des Moines in v est m ent firm, has been nam ed Iow a m em ber of th e eighth district com m ittee of Cancel F A A Convention The 27th an n u al convention of th e F in an cial A dv ertisers A ssociation, scheduled to be held in Chicago begin ning October 26th, has been cancelled. T his action w as tak en by th e executive com m ittee of th e A ssociation a t a m eeting held a t th e E dg ew ater Beach H otel in Chicago recently. V ictor Cullin, p resid en t of th e Asso ciation and a ssista n t secretary of the M ississippi V alley T ru st Com pany, St. Louis, in anno u n cin g th a t th e 1942 convention w ould be cancelled, said: “A n u m b er of factors led to our deci sion, w hich is actu ally a consensus opinion of our m em bership. F irst, of course, is th e req u est of Defense T ra n sp o rta tio n C oordinator E astm an, th a t convention tra v e l be reduced. Be yond th a t is th e fact th a t th e n early 700 m em bers of our A ssociation are th e m en and wom en w ho are directing th e g re a te st p a rt of the trem endous ad v ertisin g and sales prom otion cam paign being conducted by th e banks of th e co u n try to sell W ar Bonds and Stam ps. N othing m u st in te rfe re w ith th e contin u atio n and expansion of th is p ro g ram th ro u g h w hich th e b anks of th e co u n try have been responsible for 85 p er cent of all W ar Bond sales.” Semi-Annual Dividend T he B oard of D irectors of th e City N ational B ank and T ru st Com pany of Chicago, at th e ir recen t reg u lar m eet ing, continued th e ir policy of declaring a sem i-annual dividend of $2.00 per share, of w hich $1.00 w ill be paid on A ugust 1, 1942, to stockholders of rec ord as of Ju ly 20, 1942, and $1.00 on N ovem ber 2, 1942, to stockholders of record October 20, 1942. A tra n s fe r of $200,000 from u n d iv id ed profits to su rp lu s account w as also m ade. The b a n k ’s capital is now $4,000,000 and su rp lu s $3,800,000. i ^ I N C E T H E o rg a n iz a tio n o f th is B a n k in 1863, it h as c o n tin u o u s ly ca rrie d U n ite d States B o n d s as a n in v e stm e n t* E x p e rie n c e g a in e d in b u y in g a n d s e llin g G o v e r n m e n t is s u e s m a k e s t h e s e rv ic e o f o u r B o n d D e p a rtm e n t o f special v alue in c o n n e c t i o n w i t h t h e is s u e s o f UNITED STATES TREASURY BILLS AND CERTIFICATES OF INDEBTEDNESS In q u irie s b y te le p h o n e , w ire, o r m ail are in v ited , a n d q u o ta tio n sheets w ill b e m aile d o n request* T e le p h o n e F r a n k lin 6 8 0 0 — L D 9 2 - 9 3 - 3 1 3 T e le ty p e C G 9 8 7 The First N ational Bank o f Chicago N o rth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19^2 32 the N ational A ssociation of Securities Dealers. He replaces M ichael D earth of M urdoch, D earth & W hite, Inc., w ho is now in th e navy. All Signed Up P u rch ase of W ar Bonds by hom e office em ployes of N o rth w estern N a tional Life of M inneapolis w ere v irtu ally trip led in July, com pared to June, follow ing a step-up in su b scriptions u n d er th e com pany’s pay roll savings plan to m eet th e increased quotas set by th e T reasu ry D epartm ent, accord ing to P resid en t O. J. A rnold. “E ach and every one of th e com p a n y ’s 470 hom e office em ployes has now signed up for th e reg u lar p u r chase of W ar Bonds, th e total subscrip tion averaging b e tte r th a n 10 p er cent of salary ,” Mr. A rnold reports. As a result, Nw N L has earned the rig h t to display the T reasu ry D ep artm en t’s special “10% ” m in u tem an flag. The ten-per-cent-of-pay-roll record does not include purchases by em ployes in th e com pany’s agency offices, w hich are now being solicited on the 10 p er cent basis, although one office rep o rts its personnel is c u rre n tly investing 23 p er cent of pay roll in W ar Bonds u n d er th e pay roll savings plan. THE LABORATORY OF EXPERIENCE N D U STR Y has its scientifically equipped laboratories for the purpose of testing quality and assuring the maintenance of correct standards. The only laboratory in which the quality of the correspondent service of a bank can be tested is the labo ratory of day-to-day experience. And the best test of quality is the way this service functions when the call is for something be yond the efficient handling of purely routine matters. The American National Bank and Trust Company of Chicago welcomes this type of test and feels that it can be particularly helpful to out-of-town banks today because of Chicago’s increas ing importance as a war production center. If we can render any service to you or your customers, please call on us. I Bank of America The statem en t of condition of B ank of A m erica as of Ju n e 30, 1942, shows deposits at th e all-tim e high m ark of $1,958,430,000, an increase of $272,942,000 over a y ear ago, and an in crease of $50,047,000 since D ecem ber 31, 1941. Total resources w ere $2,143,202,000, a gain of $265,464,000 over a year ago. Loans and discounts ou tstan d in g ag gregated $889,353,000 w hich is $44,887,000 h igher th a n a y ear ago. Since De cem ber 31, 1941, loans and discounts decreased $25,216,000, w hile bond in vestm ents increased $81,437,000. E arn in g s after operating expenses and accruals for taxes w ere $12,618,000. F rom this total $2,133,000 w as re served for depreciation of ban k p rem ises and am ortization of bond p re m ium s and $2,053,000 w as set up in reserves and applied to th e absorption of losses or th e rev aluation of assets. A fter paym ent of $5,267,000 in divi dends at th e an n u al ra te of $2.40 per share on th e com m on stock and $2.00 p er share on the p referred stock, and after profit-sharing bonus to employes, capital funds w ere increased from earnings for th e six m onths period by $3,119,000. This, w ith th e dividend, is equal to approxim ately $4 p er share p er annum on th e com m on stock. Follow ing th e policy previously es tablished, one-half of th e n et increase in undivided profits w as tra n sfe rre d to th e w ar contingencies reserve. C apital funds, including reserves, now total $158,767,000, w hich is an increase of $2,024,000 for th e year, afte r th e utilization of $3,882,450 to re tire 77,649 shares of p referred stock du rin g the period, and afte r applying $842,000 of an unallocated reserve, p re viously set up for th e purpose, to re duce th e book value of certain banking prem ises, in addition to norm al de preciation. P resid en t L. M. G iannini stated th a t th e curtailed dem and for o rdinary civilian credit had m ade m ore funds available to finance w ar production. “We are continuing to carry forw ard our policy of u n stin ted su p p o rt to A m erica’s victory p rogram ,” he said. Try It on the Horse A M E R I C A N NATIO NAL BA NK AN D T R U S T CO M P A N Y OF CHICAGO LA S A L L E S T R E E ----------------- Member Federal Deposit 1 OUR B U S I N E S S N orth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19k2 , AT W A S H IN G T O N ât.-----------------S ; Insurance Corporation HE L P B U S I N E S S A farm han d took his girl for a buggy ride and nine m iles out in th e co untry the horse dropped dead. “Oh, d ear,” sighed th e girl, “and I ’m so tired!” “Suppose I give you a nice kiss,” said th e farm hand. “T h at w ill p u t life in you.” “In th a t case,” said th e girl, “y o u ’d b etter kiss th e horse.” 33 G ood Business in Fairmont M IN N E S O T A NEW S L. O. OLSON President Minneapolis W ILLIAM DUNCAN, Jr . Secretary Minneapolis F a irm o n t’s th ree banks rep o rted $18,124,000 in tran sactio n s of business significance th e first six m onths in 1942, m ore th a n $2,600,000 in excess of the sam e period of the previous year, and m ore th a n m any cities m uch larger in population. The gain in F airm o n t this year is 17 p er cent over a year ago. W ith $3,069,000 of b ank debits in June, F a ir m ont is 8 p er cent above th e m onth a year ago. ^X^hat Minnesota Statements Show JU N E 30, 1942 The \ 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 your bank is not included in th e list beloiv it is because Y O U d id not send in you r statem ent. Please do so next tim e. TOWN BANK CASHIER Capital $ 100,000 A lexandria...........Farmers National B an k........................ A. C. Schneiderhan 1 50,000 Anoka................... First National B an k.............................. A. L. Lindm an.. 50,000 Austin...................Austin State B an k.................................. A. A. Haakenson 100,000 Bem idji..................First National B an k.............................. R. H. Welle............. 100,000 Benson...................Swift County B an k................................ C. A. L arson........... 50,000 Bird Island...........State Bank o f.......................................... Edw. Anderson . . . . 30.000 Blue E arth ............Blue Earth State B an k......................... K. O. Sattre.............. 35,000 Braham ................. First National B an k............................. E. M. A n d erson .... 35,000 Brainerd................Citizens State B an k............................... Ja s. K. Tinkelpaugh i 75,000 Canby......................National Citizens B an k........................ H. B. Lueders........... 50,000 Cannon F a lls....... F irst National B an k.............................. Eldridge L. Peters. 60,000 Cloquet...................First National B an k.............................. Lynn S. Olson......... 100,000 Conger................... State Bank ............................................. H. C. Hanson......... 10,000 Cosmos...................First State B an k...................................... H. L. Swanson. . . 15,000 Crookston..............F irst National B an k.............................. H. A. Wilson......... 100.000 Detroit L a k e s.. . . Becker County National B an k..........Alden Pearson . . . 50,000 Duluth.................. City National B an k................................ Rcbt. H. Magic. . . 600,000 Duluth.................. First & American N ational.................. Sylvester T. Strain 2,000,000 Duluth...................Minnesota National B an k ...................... Jorice E. Brow n.. 400,000 Duluth...................Northern National B an k...................... L. O. A nderson... 1,000,000 East Grand Forks.M innesota National Ban k....................L. H. Everett......... 50,000 Elk River.............. Bank of ...................................................M. C. Tesch.............. 20,000 Elk R iver..............First National B an k............................. R. A. E llin gson ... 25,000 Ellsw orth.............. Ellsworth State B an k........................... G. P. B a u m a n .... 20,000 E ly .......................... First National B an k............................. G. T. Somero......... 50.000 Eveleth................. Miners National B an k............................ J. R. Schuknecht. . 45,000 Fairm ont............... Fairmont National B a n k .................... W. H. N o rm an .... 50,000 Fairm ont............... Martin County NationalBan k..............C. F. Holden........... 95,000 F aribau lt............... Security National B an k....................... Chas. MacKenzie . 125,000 F aribau lt.............. State Bank ..............................................Ray Meyer ............. 50,000 E. C.c. Beimer Beimer. Fergus F a lls......... National Bank & Trust Co...................E. 100,000 R. E. E. Lincoln Lincoln. Fergus F a lls......... First National B an k ............................. R100,000 B. W. W. Lloyd Lloyd. . . F ulda........ ............ Citizens State B an k...............................B. 25,000 Grand Rapids. . . . First National Ban k............................ G. G. P. Mitchell. 75,000 S. H. Severson. Hopkins..................F irst National Bank. .......... . 50,000 Je ffe r s ................... State Bank ................................... c. R. Duroe. . . 25,000 Kim ball.................. State Bank .................................. E. A. Erickson. 25,000 E. A. Lewiston................ Security State B an k............................. E. A. Highum Highum. 40,000 Lonsdale................State Bank o f ......................................... J.J. J . J irik........ 20,000 A. C. C. Stallman Stallm an. Mankato.................National Bank of Commerce............. A. 100,000 Mankato................ National Citizens B a n k .........................G. G. A. A. Hudy Hudv. . . . 200,000 Marshall. ............ First National B an k............................. K. E. Sheffield......... 50,000 Minneapolis..........Farmers & Mechanics Savin gs............ John De Laittre. . . Minneapolis.......... First National B an k..............................J . G. Maclean......... 6,000,000 Minneapolis..........Marquette National B an k...................... Merth E. Mortenson 300.000 Minneapolis..........Northwestern National B an k ............. Guy E. M a ste r s.... 5,000,000 Minneapolis..........Midland National B an k....................... Robt. S. Stebbins. . 1,000,000 Montevideo........... Security National Bank....................... W. A. Grunert. . . . 50,000 Montevideo........... Union State B an k................................. Chas. O. Bennett.. 50,000 M oorhead............ First National B an k............................. Lawrence Mauritson .100,000 M ora...................... Kanabec State B an k............................. V. W. P e te rso n .... 60,000 New U l m ............State Bank ............................................. Edward A. S to ll... 40,000 Northfield............. First National B an k ............................. H. O. Dilley............ 75,000 Northfield.............. Northfield National B an k.................. P. M. O d eg aard .... 50,000 Red W ing.............. Goodhue County National Bank.........H. J. Croke............... 125,000 Redwood F alls. .. .Citizens State B a n k .............................M. O. Hanson.......... 25,000 Rochester.............. Union National B an k........................... A. C. B urgan.......... 145,000 Rush C ity..............State Bank o f......................................... Carl H. Som m er... 60,000 St. Charles............ First National Bank.............................Geo. Eckles ............. 50,000 St. P au l.................Farmers & Merchants........................... J . Entenmann, Jr . 50,000 St. P a u l................ American National B an k..................... Fred J . Gode............. 2,500,000 So. St. P au l......... Drovers Exchange B an k....................... H. G. Sw an so n .... 100,000 St. P a u l.................Empire National B an k......................... C. T. DeHon........... 500,000 St. P a u l................ First National Ban k............................. Arthur W. McNee. 6,000,000 St. P a u l.................F irst State B an k..................................... W. E. Olson............ 100,000 St. P a u l.................Midway National B an k......................... Harold M. Schwartz 200,000 St. P a u l................ St. Anthony Park S ta te ........................ G. H. Greaves........ 30,000 So. St. P au l......... Stock Yards National B an k............... J. G. M cGarraugh.. 250,000 St. P a u l................ .Western State B an k................................E. Leo N ash............ 50.000 Sauk Center........ Merchants National B an k....................J . H. Hansen........... 50,000 Thief River Falls Union State Ban k..................................A. W. Hensrud. . . . 50,000 V irginia................ State Bank ..............................................J. E. Takkinen. . . . 100,000 W ayzata................ Wayzata State B an k............................. W. T. Blackmarr. . 25,000 White Bear Lake. First State B an k....................................F. J . Taylor............. 25,000 W illm ar................. Security National B an k....................... George W. O d ell... 100,000 Winona.................. First National B an k............................. Charles W. B ritts.. 250.000 Winona.................. Winona National B an k....................... John Ambrosen . . . 200,000 $ Surplus and Profits 102,048 62,733 35,446 54,668 65,111 69,765 64,241 68,481 24,350 45,829 53,492 29,671 170,148 30,654 5,281 55,732 58,815 341,343 521,989 274,847 419,772 22,022 34,205 30,171 28,816 79,125 24,286 112,587 46,703 161,901 59,452 150,067 210,809 80,186 59,802 77,965 64,488 16,439 29,637 26,632 54,053 251,735 101,084 5,737,229 9,657,094 213.685 6,391,292 721,506 125,279 36,975 73,264 75,329 181,776 65,800 59,478 154,290 83,408 85.451 18,793 34,225 69.065 880,144 101,398 623,221 8,000,923 139.069 243.548 23.572 393,376 50.397 45,033 79,144 28,970 43,366 20,921 35,634 302.064 302,088 Loans and Bonds and Cash and Due Discounts Securities From Banks Deposits 804,634 $ 1,211,694 $ 867,441 S 2,743,862 253,778 568,907 298,904 1,054,544 397,093 362,365 442,918 1,124,290 597,999 710,181 418,240 1,614,003 495,452 633,313 550,441 1,537,093 536.053 223,984 316,328 966,935 471,298 197,056 216,550 761,264 543,603 310,507 364,572 1,134,267 394,583 122,506 174,912 644,553 588,305 699,571 641,170 1,776.386 391,229 38,349 284,096 932,984 349,778 490,053 250,423 992,812 357,063 1,726,300 729,486 2,556,159 188,236 82,393 127,878 360,272 106,062 118,962 32,893 133,375 306,456 570,331 514,144 1,253,172 516,813 571,946 330,256 1,316,065 2,353,867 3,334,307 4,338,996 9,112,923 9,064,939 18,028,506 11,729,045 35,376,474 1,642,955 4,400,699 4,677,004 10,208,123 4,409,260 5,000,949 5,769,319 13,811,876 206.115 460,075 278,500 881,242 244,744 221,542 81,432 504,062 251,816 206,152 197,989 617,647 186,174 112,378 63,685 314,388 347,561 542,753 412,078 1,191,951 340,385 235,063 175,068 702,754 503,713 681,830 737,738 1,804,135 591,797 393,356 663,065 1,536,334 1,052,637 1,196,307 641,217 2,651,250 393,872 328,653 321,985 962,402 1,026,158 1,346,543 773,805 2,940,073 925,845 725,609 599,112 1,987,934 590,776 414,825 376,719 1,281,665 598,412 344,024 530,830 1,422,242 428,655 562,686 196,734 1,078,275 434,373 124,470 154,778 628,195 112,407 84,900 154,930 324,788 268,384 237,741 231,030 658,838 236,453 185,375 143,756 522,954 598,057 510,826 677,222 1,639,544 1,663,623 2,419,757 1,577,800 5,268,769 620,533 775,090 588,196 1,847,353 24,531,373 43,580,143 5,878,932 68,914,461 47,420,046 81,511,958 70,146,483 182,095,755 3,122,566 1,852,200 3,588,443 8,123,064 52,753,941 74,916,372 58,454,867 176,836,814 8,642,492 10,795,710 8,680,693 26,118,683 316.603 1,033,043 490,182 1,655,712 662,967 202,826 248,269 1,035,244 682,869 598,803 468,067 1,598,237 652,098 288,455 449,110 1,271,505 261,474 1,179,757 481,461 1,730,328 258,976 820,671 258.305 1,198,632 124.296 487,464 204,473 718,494 563,166 1,501,264 934,202 2,735,150 437,218 369,768 798,023 1,493,570 719,030 955.533 762,497 2,243,385 364,464 240,537 367,993 892,954 352,042 348.830 266,242 892,191 395,384 987,308 327,687 1,568,063 6,929.444 20.187,626 19,909,179 43,564,291 1,135.301 781,639 900,753 2,558,699 4,900,911 2.614.530 3,708,198 10,109,942 63,429,269 55,291.118 60,142,952 165,779,517 569.361 1,626,694 424,549 2,410,211 2,636,889 2,382,189 1,853.046 6,229,527 255,153 332,670 148,723 661,613 2,590,425 2,402,877 2,888,500 7,270,780 497,181 397,941 459,917 1,260,897 222,172 648,387 163.590 961,991 486,083 593,085 334,279 1,301,111 306,263 716.249 366.254 1,257,755 476,543 70,185 113,005 599,298 131,673 220.833 236.869 557,774 325,438 846,090 419,343 1.499,846 1,899,281 2,869,671 1,202.970 5,527.283 1,516,353 2,330,994 1,306,672 4,803,605 $ N o rth w este rn B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A u g u st 19b2 34 MINN E S O T A With the Colors From Minnesota Second L ieu ten an t A lexan d er M. Castle, son of L ew is G. Castle, vice p resid en t of th e N o rth e rn N ational B ank of D uluth, is w ith th e 35th A rm ored R egim ent statio n ed a t Pine Camp, AVatertown, N ew York. S. R. Kirby, vice p resident, rep o rts th a t his son, P rivate D. R. K irby, is now at M arine B arracks, D estroyer Base, San Diego, C alifornia. Edw ard AY7. F ish er, form er bookkeeper a t th e bank, is stationed w ith F lig h t B at Jefferson B arracks, M issouri, and C. L. Olson, form er teller, is also statio n ed w ith F lig h t B a t Jefferson B arracks. C. A7. NEWS Stube, form er bookkeeper, is serving as a p rivate w ith Co. “D”, 81st In fa n try T rain in g B attalion, Camp Rob erts, C alifornia, w hile Robert Ham m erstrom , an o th er bookkeeper, is sta tioned w ith B attery “B”, 615th C. A., F o rt R andolph, Canal Zone. R ichard N. AAelle, son of N. A. W elle, of th e A rlington S tate Bank, has joined th e N avy A ir Corps and is sta tioned at Iowa City, Iowa, u n d er the leadership of Lt. Com. B ernie B ierm an. AAr. E. Brockm an, vice p resident of the M idland N ational B ank and T ru st Co. of M inneapolis, rep o rts th a t the follow ing em ployes of th e b an k are now in th e arm ed forces: Pvt. 1st C. John C. A nderson, Pvt. E arl E. A n drew s, Pvt. 1st C. Jam es R. Brow n, Pvt. L aw ren ce D eSom ery, Pvt. Gerald H eaeox, Sgt. Tech. Oscar AYT. Hokanson, Sgt. John S. Irons, Pvt. P. L eroy Jacobson, Pvt. John P. K nutson, Pvt. George G. M agnuson, Pvt. H ow ard MoCrea, U. S. M. C., Pvt. J. Sam uel Miscensik, Pvt. H okan F. M oreen, Pvt. John Ordos, Pvt. Gerald F. Owens, Pvt. R aym ond J. Quinlan. H. C. Core, personnel officer of th e F ederal R eserve B ank of M inneapolis, rep o rts th a t th e follow ing em ployes are in the m ilitary services at this tim e. The last six nam es listed are some w ho have entered the service so recently th a t th e ban k has no record of th e cam ps w here th ey are sta tioned. In addition to those listed below, the ban k has one gold sta r in its service flag. John H ow ard John son, clerk, w ho entered the m ilitary services M arch 2, 1942, died of p n eu m onia on May 4th of th is year w hile STATEMENT OF CONDITION stationed at F t. Lewis, AYashington. Sgt. P hilo E. N elson, Guard, B7DB, Second M arine Brigade, F leet M arine Force, care of P ostm aster, San F ra n cisco, California; Sgt. Oscar A. Dahlberg, Clerk, B attery “A”, 175th Field A rtillery B attalion, A. P. 0. 34, care of Postm aster, New York; L ieut. ARctor V. G ustafson, Clerk, B attery “A”, 175th Field A rtillery B attalion, A. P. O. 34, as at June 30, 1942 care of P ostm aster, New York; Captain AYRlliam C. H an son, Clerk, 634th T ank D estroyer B attalion, Group No. 2, RESOURCES T ank D estroyer Command, U. S. Army, Cash on Hand and Due from B anks....................... $ 70,146,483.62 Camn Hood, Texas; Sgt. C lem ent A. V anN ice, Clerk, Com pany 7, Sixth B at U. S. Government B onds........................................... 73,611,870.00 talion, 2nd S tudent T rain in g Regim ent, (Direct and Fully Guaranteed) ISSC, F o rt B enning, Georgia; Staff Sgt. L ester AY7. A nderson, Clerk, HeadGuaranty Fund . .,........................................................ 600,000.00 o u arters and H ead q u arters B attery, (U. S. Bonds 'until Commissioner of Banks) 57th Field A rtillery B attalion, A. P. O. Loans and Discounts................................................... 46,262,868.00 No. 7, San L uis Obispo, California; Yeoman W illiam Sellable, Clerk, USS Other Bonds and Securities....................................... 7,300,088.42 Pyro, care of P astm aster, San F ra n O verdrafts .................................................................... 8,059.08 cisco, California; Pvt. George B. B ar rett, Clerk, Squadron “A”, Group XI, Bank Buildings ............................................................ 590,450.52 A ir Crew Classification Center, Max Customers’ Acceptance Liability.............................. 1,157,178.32 w ell Field, Alabam a; Lieut. Edw ard AAA Quinlan, Clerk, B attery 1, 14th Interest Earned but not Collected.............................. 387,156.05 Coast A rtillery, F o rt F lagler, AYashingOther Assets ................................................................ 23,863.16 ton; *Pvt. D avid L. K night, Clerk, 2408 Clinton A venue, M inneapolis; N avy A viation Cadet F rederic I). Cool, Clerk, Total R e so u rc e s.................................................... $200,088,017.17 B uilding 24-5, Room 144, N avy A ir Base, Corpus C hristi, Texas; Pvt. L y LIABILITIES man A7. A nderson, Clerk, 37091714, Capital Stock ................................................................ $ 6,000,000.00 Q u arterm aster D etachm ent, A. P. O. No. 932, care of P ostm aster, San F ra n Surplus ....................................................................... 6,000,000.00 cisco, California; Seam an T hom as E. Undivided Profits ........................................................ 3,657,094.83 AYRlder, M essenger, Radio School, Reserve for Interest, Expenses, Taxes, E tc.......................................... 961,881.09Coast G uard Yard, C urtis Bay, M ary land; Pvt. W allace L. A nderson, Clerk, Interest Collected but not E arn ed ............................ 130,254.25 98th Field A rtillery, B attery “A”, F o rt Lewis, AVashington; Pvt. Curtis O. H er Letters of Credit and Acceptances............................ 1,157,178.32 m ann, Clerk, 727t.h O rdnance Com Other Liabilities .......................................................... 85,853.18 pany, Geiger Field, Spokane, AYashington; Pvt. E arl C. B enson, Clerk, Deposits ......................................................................... 182,095,755.50 F inance Office, F o rt B arrancas, F lo r ida; Sgt. George O. Krenz, Clerk, H ead Total Liabilities ................................................... $200,088,017.17 q u arters and H ead q u arters Company, R eception Center, F o rt Snelling, Min V. S. Government obligations and other securities carried at $24,903,879.96 nesota; Sgt. R aym ond L. F orsberg, Clerk, Com pany “M”, 135th In fan try , in the foregoing statement are deposited to secure public funds A. P. O. No. 34, care of Postm aster, and for other purposes required by law. New York, New York; Lieut. Burrell G. Laraw ay, G uard, Com pany “F ”, 5th M em ber Federal D eposit In su ra n c e Corporation Q uarterm aster T rain in g "Regiment, Affiliated with f i r s t b a n k s t o c k c o r p o r a t i o n F o rt F ran cis E. AVarren, AVyoming; Pvt. J. D ouglas Guddal, Clerk, Head(T u rn to n ex t page, please) First National Bank and Trust Company of Minneapolis N orth w estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1942 35 T w in A R N U L F U E L A N D , p resid en t of M idland N ational B ank & T ru st Company, has been elected first yice p resid en t of th e R obert M orris Associates, natio n al financial credit organization. F ive M inneapolis b an k ers atten d ed th e A m erican In stitu te of B an k in g ’s G raduate School of B anking in New B runsw ick, New Jersey. T hey are Gordon M urray, F irs t N a tional B ank & T ru st Company; W il lard W. H olm es and D onovan E. Cronley, N o rth w estern N ational B ank & T ru st Com pany; Clifford C. Som m er, M idland N ational B ank & T ru st Com pany, and A. W . M ills, F ed eral R eserve B an k of M inneapolis. A ttractin g considerable a tten tio n re cently in th e lobby of F arm ers & Me ch an ics Savings Bank w as a five-foot scale m odel of th e U.S.S. M inneapolis, n av y cruiser. Also displayed w ere sm aller models. S everal M inneapolis in v estm en t m en and b an k ers have been nam ed to exec u tiv e posts of th e B etter B usiness B u re a u of M inneapolis for the com ing year. C. S. A sh m an , in v estm en t deal er, is tre a s u re r of th e organization, w hile th e board of directors includes W. E. Brockm an, vice p resid en t of M idland N ational B ank & T ru st Com pany, and Guy W. E aB one, vice p resi dent, F irs t N ational B ank & T ru st Com pany. C it y N e w s By Jam es M. Sutherland Special Correspondent m ent firm is Paine, W ebber, Jackson & Curtis. T w enty-third annual peony show of th e M innesota Peony and Iris Society found th e lobby of N orth w estern N a tional Bank & T rust Com pany banked w ith colorful blooms. b a n k ’s in v estm en t departm ent. The tw o have been in the in v estm en t busi ness in M inneapolis since 1921, w hen both en tered th e bond d ep artm en t of the M inneapolis T ru st Company, th en affiliated and later m erged w ith F irst N ational. E lm er E. W illiam s of Allison-William s Company, M inneapolis, has been elected M innesota m em ber of the board of governors of th e In v estm en t B ankers A ssociation of Am erica. He w ill take office at the an n u al IBA con vention in October. T w in City Bond Traders Club, Inc., held its annual sum m er outing Ju ly 23rd at M inneapolis Golf Club. W ITH THE C O L O R S FRO M M IN N ESO TA D irectors of F irst N ational B ank and T ru st Company of M inneapolis have elected Cecil A. Burnham assistant cashier and nam ed George J. Sehaust to succeed B urnham as m anager of the q u a rte rs D etachm ent, F o rt Omaha, N ebraska; Pvt. Robert N. W alsh, Clerk, A. E. S.—23, A. B. G.—2, N aval A ir Base, San Diego, California; Pvt. John S. A\reik, Clerk, l-B-6, Camp El- (C ontinued from page 34) m m m m im m w Out-of-Town hanks O ut-of-tow n banks and bankers will find here com plete b an k in g facilities fo r p ro m p t and economical handling of accounts in Chicago. We would appreciate the opportunity of serving you. AV. S. M cfadden and C. L. Grandin, Jr., have been ad m itted to p a rtn e rsh ip in P iper, Jaffray & Hopwood, M inne apolis in v estm en t firm. C. Mees, M inneapolis, re sid e n t p a rtn e r of Paine, W ebber & Company, continues in th e sam e capacity u n d er th e consolidation of th a t firm an d Jackson & Curtis. N ew nam e of th e investR. C i t y N a A Nil T R U S T 2 S O U T H 0 8 t io n a l C O M P A N Y B of L A S A L L E a n C h ica g o S T R E E T (Member Federal Deposit Insurance Corporation) N o rth w este rn B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis k A u g u s t 19^2 36 • liott, San Diego, California; Pvt. John J. S ylvester, Mail Car D river, M arine B arracks, U nited States N aval T ra in ing Station, G reat Lakes, Illinois; Corp. R ay Ekberg, G uard, N aval Am m un itio n Depot, B u rn s City, Indiana; Pvt. In gvald J. Iverson, Clerk, Sta tion H ospital, D uncan Field, San A n tonio, Texas; Pvt. John D. W estley, Clerk, H ead q u arters B attery, 76th F ield A rtillery Brigade, A. P. O. No. 309, F o rt Lew is, W ashington; Pvt. C ollins L. E astm an, Clerk, B attery “A”, 35th B attalion, A. A.—R. J. C., Camp W allace, Texas; Pvt. R ichard R. Woodruff, Clerk, Platoon 343, R ecruit Depot, M arine Corps Base, San Diego, THE P u b l ic N a t io n a l B ank AND TRUST COMPANY OF NEW YORK MINN E S O T A NEWS • California; Pvt. W illiam H. Turner, Clerk, H am ilton Field, California; Pvt. K yle K. F ossu m , Clerk, Com pany “B”, T h ird Platoon, F irst F inance T raining B attalion, F o rt B enjam in H arrison, Indiana; Pvt. H arold Sw anson, Clerk, Com pany “A”, Platoon 2, 107 B attalion, M edical R. T. C., Camp Joseph T. Rob inson, A rkansas; Pvt. Cyrus C. Bloomquist, Clerk, 30th Technical School Squadron, B arracks No. 779, Scott Field, Illinois; Pvt. Earl O. B eeth, Clerk, Field A rtillery 32—8, F. A. R. T. C., F o rt Sill, Oklahoma; A pprentice Seam an Ralph J. D reitzler, Clerk, U. S. Coast G uard, Com pany “K ”, M an h a tta n Beach T raining Station, B rook lyn, New York; B enjam in E. Ivodadek, Jan ito r; R oyle B. H uber, Janitor; John E. F ay, Clerk; W alter D. M ontgom erie, Clerk; Gordon I). M cElroy, Clerk; W illiam G. Larson, Clerk. Reports Good Business C. P. Baum an, cashier of th e E lls w o rth State Bank, rep o rts th a t crop conditions in his te rrito ry are excel lent, and th a t th ey are looking for w ard to bum per sm all grain and flax crops. Corn is also com ing along in g re at shape and, w ith some w arm w eather, it w ill m ake a very good crop, also. Mr. B aum an also rep o rts th a t he has tak en over the Ona T h eatre in E llsw o rth in p a rtn e rsh ip w ith H. H. W egner, and th a t they had th e ir open ing last m onth. Eyota W ar Bond Sale R ecently E yota and su rro u n d in g te r rito ry held a com bination A m ateur N ight-W ar Bond rally program , w hich netted a total of $26,500 in w ar bonds and stam ps. D uring the evening th e farm ers, business m en and o ther residents of the com m unity listened to a program of talks, m usic and novelty stu n ts, and purchased $13,250 in w ar bonds and stam ps. The high spot of the evening came w hen Mrs. Sidney P rath er, a w ar refugee from F rance who is residing in R ochester for the duration, purchased a like am ount from Clarence Talen, cashier of the F arm ers State B ank of Eyota, w hich boosted the total sales to $26,500. Mr. T alen w rites us th a t E yota w as m ost fo rtu n ate in securing such an offer as Mrs. P ra th e r’s, and although she obviously cannot rep eat such an offer, she w ill be m ost happy to assist in th e sale of bonds and stam ps w h er ever possible. r Check Control S e r v i c e — M aintaining an intimate, personalized corre spondent bank service. Do you have perfect control of y o u r checks? T h is q u e stio n Those banks who now use safety doesn’t involve simply keeping E x p e rie n ri* —0 fficials with years of service in this field, assuring a knowledge of re quirements and valuable as sistance. them in a safe place. It concerns principally control of distribution to your customers. P o lic y — To cooperate with out-of-town banks rather than compete for business which is rightfully theirs. to whom each book was given. numbering appreciate how effec tively it does its job. It conserves check inventories because people just don’t waste numbered checks. Safety Numbering of all checks And the way it wipes out “no- which are not imprinted will account” checks is remarkable. give you this control. The cus We have an interesting booklet tomers sign a receipt for each entitled “ Safety N um bering” book received and you _ ___ which tells the whole know where to start story in a few mo your investigation should they be mis used in any way because you know 1 ments. Write for it Deluxe if you would like 1 to e x p lo r e i t s possibilities. C HECK PRINTERS cfin e . M a n u fa c tu r in g P la n ts a t CLEVELAND V . N o rth w e ste rn B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A u g u s t 19^2 CHICAGO KANSAS CITY ST. PAUL J 37 W a r Conference in Duluth (C ontinued from page 16) m eeting p rio r to th e convention ses sions, and w ere luncheon guests of th e D uluth C learing H ouse A ssociation a t th e N o rth lan d C ountry Club. T he serious and responsible p a rt w hich b anks have in our w ar econ om y w as forcefully p resen ted by O. G. Jones, p resid en t of th e Goodhue C ounty N ational B ank, in his p resi dential address a t th e opening of the first convention session. Only by col lective effort can th e U nited S tates w in th e w ar, Mr. Jones said, and th e banks are a v ital p a rt of th is w ar effort. The “business as u su a l” idea is out now, he said, and the business of w a r financ ing is th e m ost im p o rtan t function of every ban k in g in stitu tio n in th e coun try. The job is h ere to do, and th e b an k s m u st do it. I T he h a rd e st w orked a t an y state b an k ers m eeting is th e A ssociation sec re ta ry , and B ill D uncan, M innesota scribe and his capable assistan t, B lanche B oesch, k ep t all details func tio n in g sm oothly. J u s t to relax and to w atch one of th e ir contem poraries w ork, W all Coapman, secretary of th e W isconsin B ankers A ssociation, Mil w aukee, and H arry H ausm an, secre ta ry of th e Illinois B ankers Associa tion, from Chicago, atten d ed th e M in nesota convention in D u lu th —som e thing, we presum e, like th e postm an w ho tak es a long w alk on his day off. Mr. Coapm an said he got a g re a t kick out of atten d in g a sta te m eeting w here he h ad no responsibility. G. O. Thorpe, p resid en t of th e W isconsin B ankers A ssociation, from Chippew a Falls, w as also a D u lu th visitor. The skit, “M other Buys a Bond,” w as ad m irab ly p resen ted by a cast of th re e w om en and tw o m en from th e F ed eral R eserve B ank of M inneapolis. Those tak in g p a rt in th e production, including stage arran g em en ts, w ere F ran ces K ersteter, Jean M oorehouse, D orothy Olson, R ichard Jan ssen , S yl vester C hristnach, John G illette, an d D ouglas K elly. C haracters p o rtray ed w ere the fath er, a defense p la n t w o rk er; th e m other, w ho w ith th e ex tra incom e h er h u sb an d w as g ettin g was buying e v ery th in g she could lay h e r h an d s on, w ith th e exception of W ar Bonds; a son w ho w an ted to en list b u t so far had been dissuaded by his m other; a young d au g h ter w ho ju st couldn’t tak e th e w ar v ery seriously; and th e g ran dm o th er, w ho deplored h e r d a u g h te r’s inconsistency and w as secretly aiding h er grandson to real ize his am bition to enlist in th e arm ed forces. As the play progresses th e m o th er of course changed h er a ttitu d e and becam e the m ost en th u siastic W ar Bond buyer of th e family. Som etim es folks w ho ju st go along for th e ride, end up by being taken for one, according to tw o Chicago ban k ers w ho attended the M innesota convention. W hat sta rte d as a casual sight-seeing drive and a visit to banks in Superior, W isconsin, for W illiam H. M iller, vice p resid en t of th e City N ational Bank, Thom as A. Ford, of th e A m erican N ational Bank, and the w riter, came to a h a lt for an hour and a half in th e office of Chief D onnelson, head of th e detective b u reau of the City of D uluth. You w on’t believe it, Central Hanover Bank and Trust Company N EW YORK Statement of Condition at Close of Business June 3 0 , 1 9 4 2 ASSETS Cash and Due from B a n k s ....................................... $ 3 6 1 , 2 5 2 , 6 6 3 . 4 2 U . S. Government S e c u ritie s..........................................6 6 0 , 4 5 5 , 5 0 0 . 1 0 State and Municipal S e c u r i t i e s ........................... 4 7 , 5 3 5 , 509.89 O ther S e c u r i t i e s ...................................................... 20 ,4 1 7 ,00 0.86 Stock in Federal Reserve B a n k ........................... 2,4 3 0 ,000.00 Loans and Bills P u r c h a s e d .......................................... 2 2 0 , 1 2 8 , 7 5 6 . 3 1 Real Estate M o rtg ag es............................................... 6,36 7 ,444.84 Banking H o u s e s ...................................................... 1 4 ,4 4 0 ,9 10 .0 0 O ther Real Estate ...................................................... 1 ,0 3 8 , 369.05 Interest A c c r u e d ...................................................... 1 ,662,068.39 Customers’ Liability Account of Acceptances . 1 , 389, 266.47 Total $ 1 , 3 3 7 , 1 1 7 , 4 8 9 . 3 3 LIABILITIES C a p i t a ! ................................. $ 2 1 , 0 0 0 , 0 0 0 . 0 0 S u r p l u s ..................................6 0 , 0 0 0 , 0 0 0 . 0 0 Undivided Profits . . . 1 7 ,802,359.28 $98, 80 2, 359.28 Reserve for T axes, Interest Accrued, etc......................................... 4 ,2 3 6 , 289.73 Dividend Payable July 1 , 1 9 4 2 .............................................. 1 ,05 0 ,000.00 A cceptances................................................................... 1 ,4 8 1 , 2 5 0 .3 4 D ep o sits.............................................................................. 1 , 2 3 1 , 5 4 7 , 5 8 9 . 9 8 Total $ i ,3 3 7 D i7> 4 8 9-33 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 ..................................... $65,645,537.74 Member Federal Deposit Insurance Corporation N o rth w este rn B an ker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A u g u st 1942 38 • b u t we all th re e m ain tain it w as our first experience in a jailhouse. L earn in g in S uperior th a t n earby w as th e tallest g rain elevator in th e w orld, th e p icture-taking in stin cts of you r editor w ere aroused, an d w hile Bill and Tom w aited in th e car, th e p ictu re w as taken. W e th e n drove leisurely back to D uluth, an d upon reach in g the m ain th o ro u g h fare of the city w ere hailed by a m otorcycle policem an and escorted to th e office nam ed above, charged w ith h aving tak e n a picture of a sh ip y ard in Su- M INNESOTA NEWS perior. It really d idn’t take very long to convince th e Chief th a t we w eren ’t sab atu ers or spies, b u t it seem ed like a long tim e to us. The films w ere tak en from th e cam era and developed, and sure enough, th ere w as a p icture of th e g rain elevator. W e w ere re leased, b u t the p icture rem ains in the files of Chief Donnelson. We are not fam iliar w ith th e tactics of law-en forcem ent bodies in o ther cities, b ut we w ould like to com plim ent th e au th o rities in D uluth on th e ir alertness and rap id ity of apprehension, and to "T he B a n k at th e Y a r d s ” Your “N a tu ra l” C hoice Thousands of hogs, cattle and sheep are reaching the Sioux City market as America begins feeding the world. From Iowa, Nebraska, South Dakota and Minnesota bankers find this bank an invaluable link in their livestock, grain and hay business. Our location (only bank in the stock yards) has made us experts in livestock and farm lines. We are also thoroughly equipped to handle general Sioux City business, no matter where it may be. Let us handle all your Sioux City business for you! O F F IC E R S C. L. Fredricksen, President M. A. Wilson, Vice President W. G. Nelson, A ssistant Vice President W. C. Schenk, Cashier H. C. Linduski, A ssistant Cashier C. L. Adams, A ssistant Cashier J. S. Haver, A ssistant Cashier Jam es L. Smith, Auditor D IR E C T O R S C. R. McKenna, Pres., Johnson Biscuit Co. B. L. Sifford, Attorney, Sifford & Wadden G. F. Silknitter, President, Sioux City Stock Yards Company C. L. Fredricksen, President M. A. Wilson, Vice President H. C. Boswell, Secretary-Treasurer, Western Contracting Corporation M em ber Federal D eposit In su ra n c e C orporation LIVESTOCK NATIONAL n S IO U X C IT Y , IOW A N o rth w este rn B an ker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A u g u st 1942 * express our appreciation for th e ir courteous tre a tm e n t w hile in custody. Dr. Paul F. Cadman, econom ist for the A m erican B ankers Association, gave an excellent talk on “A m erican F inance in Post-W ar R econstruction,” p ain tin g ra th e r a d ark picture, to be sure, b u t softening the blow by citing a n u m ber of preventive m easures w hich can be, and we hope w ill be taken, so th a t th e financial in terests of th is country, including the in vest m en t b anking firms, can again assum e th e ir rig h tfu l place in our progressive business stru ctu re. The discussion of the soldiers and sailors civil relief act by Ralph H. Comaford, atto rn e y of M inneapolis, and a question and answ er forum on R egulation W lead by Thom as H odg son, a ssistan t counsel for th e F ederal R eserve B ank in M inneapolis, w ere of special in te re st to all ban k ers w ho w ere privileged to h ear them . N um er ous questions on both subjects com ing from th e floor of th e convention w ere fully explained and elaborated upon. R esolutions adopted at the closing session pledged the su p p o rt of the M innesota B ankers A ssociation to every phase of th e w ar effort, and th an k ed all A ssociation officers w ho had co ntributed so generously of th e ir tim e d uring the p ast year. Newlyelected P resid en t Olson, in his accept ance speech, urged th e continued co operation of th e m em bership to insure th e successful conclusion of th e pres en t w ar, and pledged his u n tirin g efforts to th a t end. In appreciation of his official activities d uring th e past year, re tirin g P resid en t Jones w as p re sented w ith a beautiful engraved w rist watch. The fifty-third M innesota con vention concluded w ith a luncheon a t tended by the new officers and the executive com m ittee. Bank President Dies A. J. Johnson, pioneer business m an and b an k er in Yellow Medicine County, died at his hom e in G ranite Falls last m onth. Johnson had been an officer of the G ranite Falls B ank for 29 years and p resident th e last six. Apply for Bank at Boyd L A sufficient am ount of stock has been sold and application has been m ade to th e state banking dep artm en t for a c h a rte r to open a ban k at Boyd. A date for a h earin g is expected to be set. The application is for a b ank of $10,000 capital, $2,000 su rp lu s and $1,500 undivided profits. 39 SOUTH D A K O T A H. N. THOMSON President Presho NEWS First National Bank of the Black Hills R. E. D riscoll, p resid en t of th e F irs t N ational B ank of th e Black H ills of R apid City, South D akota, in his sta te m e n t of Ju n e 30, 1942, re p o rts deposits of $12,080,000, w ith loans and discounts of $5,110,000 an d capital stock of $500,000, su rp lu s of $340,000 and undivided profits and reserv es of $216,764. O thers offices of th e b an k are a t Lead, w ith John M. R yan, vice p re si d en t and m anager; a t Deadwood, w ith C. O. Gorder as vice p resid en t and m anager; a t Belle Fourche, w ith DeW itt M alvin as vice p resid en t and m anager; a t H ot Springs, w ith W alter L. V oigt as vice p resid en t and m an ager; a t Newell, w ith D. J. H ull as vice p resid en t and m anager; at Spearfish, w ith W. E. D ick ey as vice p resid en t and m anager, and a t Sturgis, w ith G. A. M cGarraugh as vice p resid en t and m anager. Debit Figures High Sioux F a lls’ business volum e d u rin g th e first six m onths of th is y e a r stands 34 p er cent ahead of th e Jan u ary - GEORGE M. STARRING Secretary-Treasurer Huron Ju n e period in 1941, according to b ank debit totals of th e M inneapolis F ederal R eserve Bank. Checks draw n by depositors against th e ir accounts in local banks during Ju n e totaled $32,796,000, as against $23,432,000 for Ju n e a y ear ago. D ebit figures gath ered from re p o rt ing banks th ro u g h o u t the state p u t the first six m onths volum e for 1942 25 p er cent above th a t for th e sim ilar 1941 period w hile Ju n e volum e w as 30 per cent ahead of th a t for June, 1941. New Fieldman D. W ayne George, Spearfish, w ho has been w ith the traffic d ep artm en t of In land A irlines for about th ree years, has accepted a position of fieldm an for the F irst N ational B ank of the Black Hills, and has started upon his new duties. Mr. George replaces H. W. Ouren, Spearfish. Committees Named Standing com m ittees for 1942-43 for th e South D akota B ankers Association, w ith the first nam ed as chairm an, have been appointed as follows: A gricultu re —R. M. D ePuy, B rook ings; L. J. R asm ussen, Viborg; Wm. C. Duffy, Sioux Falls; A. F. Litz, Delmont; L. F. W addington, Rosholt; R ussell Bard, Miller; M. J. Schirber, Tim ber Lake; Thom as L. Seppala, Edgem ont. Bank M anagem ent —Wm. C. Rempfer, P arkston; A. G. Berger, Clear Lake; B. R. Laird, Tyndall; C. H. Lockhart, W atertow n; L. A. Jacobson, B ryant; H. B. Lovald, Philip. P ublic R elation s —T. S. H arkison, Sioux Falls; C. I. D anforth, Y ankton; A rth u r R. Johnson, F landreau; Gorden Maxam, Lake P reston; W. P. Jones, Mobridge; J. M. P atton, M itchell. T axation —L. C. Forem an, E lkton; R. E. Driscoll, Rapid City; W. W. B ak er, Sioux Falls; C. A. B rem er, A ber deen; Chas. E. Lee, Volga; W. H. Frei, W agner. Special Com m ittee on C om peting G overnm ent L end in g A gen cies —Jo h n N. Thom son, Centerville; L. L. Lillibridge, Burke; F red Roesch, A berdeen; J. M. Lloyd, Y ankton; T. M. B risbine, W oonsocket; F red Lewis, Lemmon. Bank Assets Sold Real estate belonging to the closed F arm ers G u aranty State B ank of Volin w as sold in circuit court a t Y ankton, recently, five pieces of prop e rty in and n ear Volin being disposed of at a to tal of $1,160. T he b ank build ing, including v au lt and some of the fixtures, on w hich th ere had been a bid of $300, w ent to H. O. Stoem and H. C. H anson for $450. A residence p ro p erty in Volin w ent to L aw rence C. Johnson of Y ankton and Carl Johnson of H udson for $460, W h a t South Dakota Statements Show JU N E 30, 1942 The N orth w estern B anker is pleased to pu blish B ank Statem ents received before going to press— p u t us on you r m ailing list and send us you r statem ents im m ediately after each call. If your bank is not included in th e list below it is because Y O U d id not send in your statem ent. Please do so next tim e. CASHIER BANK TOWN .$ Aberdeen........ . . . Aberdeen National B an k.............. Centerville. . . . , . . Bank of ............................................ . . . E. F. Herrboldt. . . . . . . Eureka State B an k.......................... Eureka............ M iller.............. . . . .First National Bank........................ Mitchell.......... Mitchell.......... . . . .Mitchell National B an k.................. , . . J. N. Shelby............ . Pierre.............. . . . First National B an k........................ Rapid City. . . . . . .First National of Black Hills. . . . . . . Noel W. K lar.......... Rapid City. . . , . . . Rapid City National B an k............ . . . W. E. Shoberg........ . . . . W. E. Perrenoud. . . Sioux Falls. . . Sioux Falls. . . ,. . . . Northwest Security National. . . . Vermillion . . . . . . . Citizens B a n k .................................. Watertown. . . . . . .Farmers & Merchants B an k.......... Watertown. . . . . . . F i r s t Citizens N ational................ Yankton.......... . . . F i r s t Dakota N ational.................. Capital 100,000 50,000 25.000 50,000 100,000 100,000 50,000 500,000 150,000 265,000 500,000 50,000 50,000 150,000 100,000 Surplus and Profits $ 190,899 22,604 24,033 109,156 48,984 66,910 19,080 556,764 165,854 256,261 624,644 27,411 77,249 177,174 62,074 Loans and Discounts $ 558,975 315,014 215,604 695,809 708,075 840,115 248,817 5,110,191 1,847,228 2,653,534 4,866,849 364,290 571,652 1,131,829 672,158 Bonds and Securities $ 2,101,119 104,150 101,236 29,430 985,617 354,182 279,433 4,170,396 600,655 2,540,048 5,053,285 128,724 352,450 1,364,177 369,938 Cash and Due From Banks § 850,682 300,316 160,368 312,604 717,000 795,615 256,191 3,675,862 1,068,554 3,978,829 5,841,717 245,872 569,537 868,053 884,011 N orth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Deposits $ 3,281,704 670,935 432,012 1,169,820 2,266,609 1,867,103 722,412 12,080,672 3,355,062 8,645,679 15,018,926 676,916 1,377,708 3,151,281 1,819,634 August 1942 40 • SOUTH a garage building to L udvig Olson for $150 and H a rry F u rro w of Volin se cured a q u a rte r acre of land in th e east p a rt of Volin for $30. All p ro p erty w as sold for m ore th an the original bids w ith th e exception of a building now occupied by the barbershop, w hich sold for $70, the original bid, and w as pu rch ased by Mrs. C hester O ursland of Sioux Falls. D AKO TA NEWS Add to Surplus Fund The R apid City N ational Bank, R apid City, South Dakota, has tra n s ferred an additional $25,000 to its su r plus fund, b ringing th e su rp lu s up to $150,000, equal to th e b a n k ’s capital of $150,000. Deposits total $3,355,062, a new high point since the bank opened for business eight y ears ago. FIRST NATIONAL BANK OF THE BLACK HILLS R a p id C ity H ot L ead S p rin g s STA TEM EN T S tu rg is OF D eadw ood S p e a rfis h C O N D IT IO N JU N E B e lle F o u r c h e N e w e ll • Fair to Replace Farnsworth R ecently W allie D. Fair, w ho for th e p ast seven y ears has been calling on ban k ers in the cen tral states, was appointed as a rep resen tativ e for the U nited States Check Book Com pany in W yom ing, w estern South D akota and p arts of N orth D akota and Mon tana. In recent m onths Mr. F a ir has been in the Omaha area. P revious to this he w as located at Pueblo, Colorado Springs and Denver, Colorado. Mr. F a ir attended Colorado Col lege in 1921 and 1922. He holds a Bachelor of Science degree from 30, 1942 RESOU RCES C ash on H a n d , in F e d e ra l Reserve B a n k , a n d D ue fro m B a n k s a n d B a n k e rs .........................................................................................................................$ 3 , 6 7 5 ,8 6 2 . 4 7 U. S. G o v e rn m e n t O b lig a tio n s ................................................................................... 2 , 9 8 6 ,0 6 1 . 9 3 S ta te a n d M u n ic ip a l B o n d s . .................................................................................. 5 7 7 3 3 0 .0 6 O th e r B onds a n d S e c u r itie s ........................................................................................ 1 0 7 , 0 0 5 .0 0 C om m ercial P a p e r ...................................................................................... 5 0 0 , 0 0 0 .0 0 -------- *----------------- $ 7 , 8 4 6 ,2 5 9 . 4 6 S tock in F e d e ra l R eserve B an k in M in n e a p o lis ........................................................................................ 2 5 , 2 0 0 .0 0 O v e rd rafts ..................................................................................................................................................................... 6 ,6 8 0 .1 3 L oans a n d D is c o u n ts ................................................................................................................................................ 5 , 1 1 0 ,1 9 1 . 4 7 B a n k in g H ouse, F u r n itu r e a n d F i x tu r e s .................................................................................................... 1 4 9 , 1 3 1 .0 0 In c lu d e s B a n k in g H o u se s a t R a p id C ity . D ead w o o d , B e lle F o u rc h e , S tu rg is, S p e a rfish , a n d N ew ell, a ll c le a r of e n c u m b ra n ce s. R eal E s ta te O w ned, o th e r th a n B a n k in g H o u s e s ...................................................................................... 1 0 .0 0 I n te r e s t E a rn e d b u t n o t C o lle c te d ...................................................................................................................... 7 1 , 5 8 2 .1 3 O th e r A sse ts ............................................................................................................................................................... 2 2 2 .7 0 T O T A L ........................................................................................................................................................................S1 3 , 2 0 9 ,2 7 6 . 8 9 L IA B IL IT IE S C a p ita l S to c k , C o m m o n .............................................................................................. 5 0 0 , 0 0 0 .0 0 S u rp lu s ................................................................................................................................. 3 4 0 , 0 0 0 .0 0 U n d ivided P ro fits a n d R e s e rv e s ................................................................................ 2 1 6 ,7 6 4 .4 1 -------------------------$ 1 , 0 5 6 ,7 6 4 . 4 1 R eserved fo r In te re s t. T a x e s, a n d O th e r E x p e n s e s ....................... 4 8 ,4 7 1 .2 5 I n te r e s t C ollected b u t n o t E a r n e d ................................................................................................................... 2 3 , 3 6 8 .5 3 D e p o sits ........................................................................................................................................................................ 1 2 , 0 8 0 ,6 7 2 . 7 0 M e m b e r F e d e ra l D e p o s it In s u r a n c e C o rp o ra tio n $ 1 3 , 2 0 9 ,2 7 6 . 8 9 w. to Minneapolis you’ll find a Sparkling New CO FFEE SHOP and Sand wich Bar at Hotel Radisson. Budget Prices. . . In the heart of the loop. Jam es L. G o rm ley Raymond K. Swanson M a n a g e rs HOTEL MINNEAPOLIS N o rth w este rn B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A u g u s t 19^2 D . F A IR th e K ansas State A g ricu ltu ral College. He is m arried and has a twelve-yearold daughter. The te rrito ry he w ill serve is the n o rth cen tral region, w hich w as for m erly covered by H orace F a rn s w orth, w ho is now m anaging his ranch near H ulett, W yom ing. Mr. F a ir m ade his first trip on the te rrito ry in July. He w as accom panied by H om er H. Peterson, vice presid en t and m anager of the check book firm. Bank Employe W eds Miss Rozella May Jen k s of Vale, who, for th e p ast tw o y ears has been em ployed in the F irst N ational B ank at Sturgis, w as m arried recen tly to K en n eth Bracewell, w ho is em ployed by the Lockheed A ircraft p lan t a t B ur bank, California. Mr. and Mrs. Bracewell w ill m ake th e ir hom e in Glendale, California. 41 • SOUTH Dwight Elected President A t a m eeting of th e board of direc to rs of th e Springfield S tate Bank, E. B. D w ight w as elected p resid en t of th e b an k to succeed Jo h n R. Talsm a, w hose d eath occurred recently. A t th e sam e tim e Mrs. V inta Kibble, a ssist a n t cashier, w as elected as cashier, to succeed Mr. D w ight. P. G. M onroe is vice p resid en t and th e o th er d irectors are Dr. C. M. K eeling, H. E. K etcham , W. J. H o rn stra and A rch Craw ford. Land Bank Appraiser Dies L. J. T horpe, 61, F ed eral L and B ank ap p raiser, w ho m ade his hom e in P ierre, w as found dead in his hotel room a t C ham berlain recently, a p p a r en tly th e re su lt of a h e a rt attack. Mr. T horpe had left his hom e a few days before his death, ap p aren tly in his usual health. L E G A L Q U ESTIO N S (C ontinued from page 18) of carrying out the u n law fu l design, even thou gh the particular crim e com m itted w as not a part of that design. A n Iow a banker h ad tw o liens on a tru c k belonging to W illett in th a t state. Could he th e re a fte r claim th a t he had retain ed th e o th er hen? No. One w ho has tw o lien s on the sam e property, and proceeds to fore close one of the lien s and at that tim e claim s no right under the other, “w a iv es” the right to claim su b se q uently that he retained the other lien. A M innesota banker w as divorced by his wife. The decree provided th a t he w ould pay h e r a certain am o u n t each m o n th as alim ony. Subsequently he rem arried . Did such rem arriag e, sta n d ing alone, w a rra n t a m odification of th e h u sb an d ’s d u ty to pay alim ony to his first wife? No. A divorced husband’s second m arriage is not, stand in g alone, a cir cum stance w arrantin g a m odification of his d uties to h is divorced w ife as im posed by the divorce decree. A bel ow ned 75 per cent of th e stock in a m an u factu rin g co rporation in M innesota. He m ade a deal w ith B row n w h ereb y he agreed to sell and B row n agreed to buy th e stock. T h ere a fte r Abel refu sed to go th ro u g h w ith th e deal. B row n sued for specific p e r form ance to req u ire th a t th e stock be tra n sfe rre d to him . Abel asserted he w as liable for dam ages only. The stock w as not sold on th e open m ark et, D AKO TA N EWS • had no established m a rk e t value, and its actual value w as conjectural or problem atical. Should B row n prevail? a party en titled to receive shares of capital stock has a right to require that they be issued to him . Yes. W here corporate stock is not sold on the m arket and as such has no estab lish ed m arket valu e, and its actual valu e is conjectural or problem atical, specific perform ance of an agreem ent to sell it m ay be enforced, as there is no definite basis for a ssess in g dam ages. U n less the rem edy in dam ages is both adequate and certain, The stu d en t m editated th o u g h tfu lly ere he spoke. “I am not sure, father, w h eth er I shall be a specialist for th e ears or th e teeth .” “Choose the teeth, m y boy; everyone has thirty-tw o of them , b u t only tw o ears.” F ill ’E m U p Guaranty Trust Company of New York F ifth A v e. at 4 4 t h St. ^ Broadway L o n d o n : 1 1 B ir c h in L a n e , E . C. 3; M a d iso n A v e. a t 6 0 t h St. B u s h H o u s e , W . C. 2 Condensed Statement of Condition, June 30, 1942 R ESO URC ES C ash o n H a n d , in F e d e r a l R e s e r v e B a n k , an d H u e fr o m B a n k s a n ti B a n k e r s ......................................... $ U. S. G o v e r n m e n t O b l i g a t i o n s ............................. P u b lic S e c u r itie s S to c k o f th e F e d e r a l R e s e r v e B a n k . . . O th e r S e c u r itie s an ti O b lig a tio n s . . . L o a n s a n ti B ills P u r c h a s e d ........................ C red its G ra n ted o n A c c e p ta n c e s . . . . A ccr u e tl I n te r e s t a n d A c c o u n ts R e c e iv a b le R ea l E sta te B o n d s a n d M o r tg a g e s . . . 6 7 0 ,7 2 1 ,5 7 1 .7 6 1 ,3 0 6 ,3 1 9 ,4 8 2 .8 6 4 4 .8 7 4 .3 0 8 .1 9 7 ,8 0 0 ,0 0 0 .0 0 2 2 ,7 9 3 ,9 5 9 .5 4 5 1 1 ,0 7 2 ,4 0 4 .9 6 4 ,2 2 2 ,4 1 7 .8 7 6 ,2 1 0 ,9 0 9 .6 8 1 , 7 9 0 ,7 2 9 .9 4 2,575,805,784.80 1 0 . 7 6 7 .2 1 2 .1 9 1 ,1 3 9 ,3 2 1 .9 2 B a n k B u ild in g s . O th e r R e a l E sta te T o ta l R e s o u r c e s . ................................... $2,587,712,318.91 L IA B IL IT IE S D e p o s it s ...............................................$ 2 ,2 6 9 ,9 6 9 ,9 2 1 .1 2 T r e a s u r e r ’s C h e c k s O u ts ta n d in g 1 9 - 2 5 4 ,8 4 1 .7 6 $2,289,224,762.88 $ 7 ,7 8 4 ,7 4 9 .6 2 A c c e p ta n c e s . . . . . L ess: O w n A c c e p ta n c e s H e ld fo r I n v e s t m e n t . 3 ,5 6 2 ,3 3 1 .7 5 4 ,2 2 2 ,4 1 7 .8 7 l i a b i li t y a s E n d o r s e r o n A c c e p ta n c e s a n d F o r e ig n B i l l s ........................................................................... F o r e ig n F u n d s B o r r o w e d ..................................................... D iv id e n d P a y a b le J u ly 1, 1 9 4 2 ......................................... Ite m s in T r a n s it w ith F o r e ig n B r a n c h e s a n d N et D iffe r e n c e in B a la n c e s B e tw e e n V a r io u s O ffices D u e to D iffe r e n t S ta te m e n t D a te s o f S o m e F o r e ig n B r a n c h e s ................................................................ M is c e lla n e o u s A c c o u n ts P a y a b le , A c c r u e d T a x e s , e tc . 9 2 ,9 5 7 .0 0 1 5 2 ,5 5 0 .0 0 2 ,7 0 0 ,0 0 0 .0 0 7 6 6 ,5 8 0 .2 3 1 1 ,0 8 2 ,1 9 4 .4 1 2,308,241,462.39 $ 9 0 ,0 0 0 ,0 0 0 .0 0 1 7 0 ,0 0 0 ,0 0 0 .0 0 1 9 ,4 7 0 ,8 5 6 .5 2 C ap ital . . . . S u r p lu s F u n d . . U n d iv id e d P r o fits T o ta l C a p ita l F u n d s T o ta l L ia b ilitie s . . . . 279,470,856.52 $2,587,712,318.91 Securities carried at $ 1 4 5 ,7 9 8 ,2 5 3 .5 6 in the above Statement are pledged to qualify for fiduciary powers, to secure public monies as required by law, and for other purposes. T his Statement includes the resources and liab ilities o f the English and French Branches as o f June 2 6 , 1 94 2, and Belgian Branch as o f October 3 1, 1941, Member Federal Deposit Insurance Corporation N o rth w este rn B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A u g u st 19k2 42 C. C. W attam , Fargo, secretary of th e association. The list of key bankers: Adam, L. V. Skoglund, H ettinger; B arnes, A. C. T horkelson, Valley City; Benson, C. I. E rstad , Maddock; Billings, J. F. T est er, Medora; B ottineau, W. H. Gjerdingen, B ottineau; Bowm an, D. G. Hogoboom, Bowman; B urke, H. M. W estrum , Bowbells; Burleigh, N. I. Roop, Bism arck; Cass, J. E. Carley, Casselton; Cavalier, L. E. Callahan, M unich; Dickey, B. R. C rabtree, Ellendale; Divide, E. G. H anson, Crosby; Dunn, H. M. W eydahl, Killdeer; Eddy, M ar tin Aas, New Rockford; E m m ons, G. A. L enhart, Hazelton. NORTH D A K O T A NEWS J . O. M ILSTEN President Belfield C. C. WATTAM Secretary Fargo Employed by Alaska Bank Voluntary Liquidation E lizabeth C. G ellner, a ssista n t cash ier of th e N o rth w estern B ank of Langdon, is now em ployed in a b an k a t A nchorage, Alaska. The In k ste r paying and receiving statio n of th e F irs t State B ank of Gilby w as vo lu n tarily discontinued. The F arm ers State B ank of Sheldon, Sheldon, N orth Dakota, has com plete ly discharged its deposit liability and discontinued business. Bank Deposits Higher B ank deposits of th re e national banks in G reater G rand F o rk s w ere rep o rted considerably h ig h er th a n a y ear ago in response to a call by th e com ptroller of th e cu rren cy recen tly for condition of all natio n al banks. The to tals were: F o r 1942, deposits $8,412,398; resources $9,189,629; 1941, deposits $7,320,305; resources $8,052,794. The individual b anks rep o rted as follows: F irs t N ational B ank in G rand F o rk s —1942, deposits, $4,173,849; resources $4,584,407; 1941, deposits $3,694,510; re sources $4,081,291. Red R iver N ational B ank—1942, de posits $3,357,249; resources $3,645,322; 1941, $2,880,695 and $3,148,203. M innesota N ational B ank, E ast G rand F o rk s—1942, $881,330 and $595,900; 1941, $745,100 and $823,300. Key Bankers Named A list of 53 county key b ankers to aid in the banker-farm er contact w ork or ag ricu ltu ral developm ent, spon sored by the ag ricu ltu ral com m ittee of th e N orth D akota B ankers A ssocia tion, is announced by F. A. Irish, ch airm an of th e state com m ittee, fol low ing the an n u al convention in Dick inson. T here are four counties, Slope, Sioux, Oliver and Billings, w hich are now w ith o u t banks, and in these coun ties m en have been nam ed w ho have long been active in ag ricu ltu ral de velopm ent work. S erving w ith Irish on th e state com m ittee are: F. D. M cCartney, Oakes; F. A. Foley, Rolla; Clarke B assett, Fargo; D. A. S tew art, Bowman; and F oster, J. C. Hoffert, C arrington; Golden Valley, T. E. H udson, Beach; G rand F orks, Theodore H. Tufte, N orthw ood; G rant, A. O. Fiatland, Carson; Griggs, George H. Johnson, Cooperstown; H ettinger, H. C. Bowers, Regent; K idder, V erne W ells, Robin son; LaM oure, Sharpe P reutz, Kulm; Logan, George Laney, Napoleon; Mc H enry, M. T. Thom pson, Tow ner; M cIntosh, J. J. Doyle, W ishek; McKen zie, O. N. Stenehjem , W atford City; McLean, H. A. F ischer, AVashburn. M ercer, R obert M. Stroup, Hazen; M orton, F. H. E llw ein, New Salem; M ountrail, E. O. L erberg, Parshall; Nelson, Jo h n P. Lam b, M ichigan City; Oliver, E. H. Johnson, Center; P em bina, F ra n k in Page, H am ilton; Pierce, H. O. L yngstad, Rugby; Ram sey, R. S. Collinson, Devils Lake; Ransom , E. N. K ittelson, E nderlin; R enville, E. L. H ubbard, Mohall; R ichland, C. A. Bonzer, Lidgerwood; Rolette, W. A. Moen, Rolette; Sargent, G. A. K lefstad, F o r m an; Sheridan, E. C. W ahl, McClusky; Sioux, F ra n k Fiske, F o rt Yates; Slope, M. E. Johnson, Amidon; Stark, I. E. W hat North Dakota Statements Show JU N E 30, 1942 The N orthw estern B anker is pleased to pu blish Bank Statem ents received before going to press— p u t us on you r m ailing list and send us you r statem ents im m ediately after each call. If your bank is not included in the list below it is because Y O U d id not send in you r statem ent. Please do so next tim e. TOWN BANK CASHIER Capital Bism arck.......... ...B an k of North Dakota................ .82,000,000 Bism arck.......... ...D ak ota National B an k................ 100,000 Bism arck.......... ...F ir s t National Bank.................... 200.000 Drake................ . . .First National Ban k.................... 25,000 F argo................ ...F ir s t National B an k.................... ___J. P. F arrell........... 350,000 F argo................ ...M erchants National B an k.......... 150,000 Jam estow n. . . . .. .Jam es River National Bank. . . . 100,000 Jam estown. . . . ...N atio n al Bank o f........................ 100,000 Langdon............ . . Northwestern Bank .................... 15.000 Minot................ «. .Union National B an k.................. ___.1. S. W estlake......... 100,000 Northwood........ ..Northwood State B an k................ 25,000 Rugby................ . . Citizens State B an k...................... 25,000 Valley City. . . . . . .American National B an k............ 50,000 Valley City. . . . ...F ir s t National B an k.................... 50,000 Watford City . ...F ir s t International B an k............ 15,000 N o rth w este rn B an ker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A ugust Í9Í2 Surplus and Profits $ 863,484 85,217 253,987 30,423 427,763 231,554 37,575 45,884 26,280 52,982 34,271 42,734 33,377 64.982 9,116 Loans and Discounts $ 2,135,853 619,285 578,194 177,417 3,486,088 1,228,855 391,925 389,447 180,951 262,731 189,551 121,349 252,424 355,703 137,184 Bonds and Securities 828,018,240 630.966 2,262,625 157,514 2,914,576 2,231,701 599,603 848,863 99,950 835,353 227,835 90.328 283,448 398,338 86,960 Cash and Due From Banks 8 9,874,249 676,392 1,535,236 387,888 3,121,084 1,150,784 506,438 428,238 113,714 502,411 219,573 546,611 278,020 246,465 254,605 Deposits 839,016,952 1,799,782 4,016,685 670,297 9,065,828 4,266,102 1,385,328 1,542,307 360,904 1,512,285 581,328 692,685 758,156 920,265 443,032 43 • NORTH Giedt, R ichardton; Steele, M. G. P ed erson, Hope; T ow ner, H. R. R endahl, Cando; T raill, O. C. S tusrud, Mayville; W alsh, K. D. B ennett, P a rk River; W ard, W. E. Tooley, Minot; W ells, E d w in Lysne, H arvey; W illiam s, J. A. C unningham , W illiston; S tutsm an, K. A. W erner, S treeter. Called to the Colors F. A. V ogel, m an ag er of th e B ank of N o rth D akota, at B ism arck, re p o rts th a t th e follow ing em ployes and sons of em ployes of th e b an k are now in th e arm ed forces: Pvt. E rvin Nadolski, fo rm er head bookkeeper, 303 M aterial Squadron, 88th A ir Base G roup Sp., W illiam s Field, C handler, A rizona; Sgt. George Olson, form er fieldm an, 48th P u rsu it Squadron, N o rth Islan d Naval A ir Station, San Diego, California; 1st Sgt. John J. M iller, fo rm er accountant, Com pany “A ”, 164th In fa n try , A ustralia; 2nd Lieut. D avid \ Togel, 125th R egim ent, 3d B attalion, Com pany “L ”, F o rt B enning, Georgia, son of F. A. Vogel, m anager; Sgt. H arry R. Vadnie, Service Com pany, 164th In fa n try , A ustralia, son of J. F. Vadnie, section head, collection and land departm en t; Corp. H ow ard E. M ohler, Com pany “E ”, 55th B attalion, M. R. T. C., Camp B arkeley, Texas, son of Mrs. Clara L euhrs, clerk, book keeping d epartm ent; O. J. M ohler, R-166138, N um ber M anning Depot, B randon, M anitoba, son of Mrs. Clara L eu h rs, clerk, bookkeeping d e p a rt m ent; AS Ronald Rea E m ch, Com pany 324 USN, N aval T rain in g Station, G reat Lakes, Illinois, son of Chas. R. E m ch, fieldman; Seam an 1st Cl. R obert C. W orl, U. S. N aval School, G reat Lakes, Illinois, son of Mr. R. A. W orl, fieldman; A ir Cadet P hilip L. Ellithorpe, A rm y A ir Corps, U nassigned, son of Mr. L. M. E llithorpe, fieldman; (T/5) 3709 3833 Lloyd G. Tw eed, 141st A rm ed Signal Corps, A. P. O. 251, care of P o stm aster, New Y ork City, son of Mr. L. B. T w eed, fieldman. Miss Gellner to Seattle E lizabeth Gellner, w ho w as assistan t cashier of th e N o rth w estern B ank of L angdon, has resigned h er position and is now em ployed in Seattle. Longest Record of Service W esthope is laying claim to h aving th e b an k p resid en t w ith th e longest record of continuous service in N orth Dakota. W. T. M unn has served his in stitu tio n th e re for 33 years. Minnewaukan Bank News V. A. H eiberg, p resid en t of th e F a rm e rs S tate B ank of M innew aukan, re p o rts th a t th e capital of his b an k has been increased $10,000 by stock divi dend. Deposits are up $146,000 over last year, and crop prospects for th is y ear are excellent. Mr. H eiberg also re p o rts th a t S her DAKOTA NEWS m an Dahl, a form er assistan t cashier in th e bank, is now w ith th e N avy in th e Canal Zone, and R. F. R iersgard, a teller, is w aiting a call to service in th e Navy. Bank in "Healthy Condition" The B ank of N orth D akota has an o perating profit of $164,741.60 for the y ear ending A ugust 31, 1941, and “is in a very h ealth y condition at this tim e,” an audit by J. M. Shirek, chief audi tor, revealed. This com pared w ith $154,337.76 for th e previous year and $165,557.63 for two years ago. • A ccepts Grafton Position Leslie Campbell of M into began w ork recently as a teller at th e G raf ton N ational Bank. Mr. Campbell w as form erly em ployed by th e W alsh County State Bank, b ut some tim e ago w ent w est w here he w orked for aw hile w ith th e B ank of America. He re cently re tu rn e d to accept th e G rafton position. “W hen I looked out of th e window, Johnny, I w as glad to see you playing m arbles w ith Billy.” “W e w asn ’t playing m arbles, Ma. We ju st had a fight and I w as helping him pick up his teeth .” IBank of America N A T IO N A L s a v i V o s A S S O C IA T IO N C A L I F O R N I A ' S O N L Y S T A T E W I D E BANK Condensed Statement of Condition June 30, 1942 RESOURCES Cash in Vault and in Federal Reserve B a n k ................................................ Due from B a n k s ................................................................ TOTAL C A S H ......................$ 419,241,180.44 Securities of the United States Government and Federal A g e n c i e s ...................................................... State, County and Municipal B o n d s ...................... Other Bonds and Securities........................................... Stock in Federal Reserve B a n k ................................ Loans and D iscou n ts...................................................... Accrued Interest and Accounts Receivable . . • Bank Premises, Furniture, Fixtures and Safe Deposit V a u l t s ........................................................... Other Real Estate O w n e d ........................................... Customers' Liability on Account of Letters of Credit, Acceptances and Endorsed B i l l s ........................... Other R e s o u r c e s ........................................................... $ 281,630,555.61 137,610,624.83 577,768,948.24 152,331,236.93 40,730,129.54 3,720,000.00 889,353,623.96 6,743,874.65 31,583,980.49 4,885,096.27 15,775,711.08 1,068,838.83 TO T A L R E S O U R C E S ........................................$2,143,202,620.43 LIABILITIES D EPO SITS: D e m a n d ...................................... $1,017,139,210.01 ! qco ¿on coc oo Savings and Time . . . . 941.291,316.31 S $1-958,430.526.32 Liability for Letters of Credit and as Acceptor, Endorser or Maker on Acceptances and Foreign B i l l s ................................................ 16,253,811.89 Reserve for Interest Received in Advance . . . 6,485,162.92 Reserve for Interest, Taxes, Etc..................................... 3,265,447.69 Capital: . $ 50.000,000.00 Common (4,000,000 Shares) 9.247.020.00 Preferred ( 462,351 Shares)* 62,000,000.00 Surplus ...................................... 19,389,879.12 Undivided Profits . . . . 11,942,203.92 Reserve for War Contingencies, etc. 3,016,034.92 Other Reserves ................................ Reserve for Increase of Common 2.752.980.00 C a p i t a l ........................................... 419,553.65 Preferred Stock Retirement Fund TOTAL CAPITAL F U N D S ...................................... 158,767,671.61 T O T A L L I A B I L I T I E S .................................... $2,143,202,620.43 *Is su e d a t $50 ($20 C a p ita l— $30 Surplus), A n n u a l Dividend $2. P referred to e x te n t of a n d r etira b le at is su e price a n d a c cru e d d iv id e n d s. This statement includes the figures of the London, England, banking office. MAIN OFFICES IN TWO RESERVE CITIES OF CALIFORNIA SAN FRANCISCO LOS ANGELES 495 branches united for strength and service Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1942 44 V H . M. BUSH N ELL, President ELLSW O RTH M OSER, Executive Vice President V. B. C A LD W E L L, Vice President R. H. M A LLO RY , Vice President T. F. M 'JRPH Y, Vice President H. W . YATES, Vice President H . E. R O G ERS, Asst. Vice President C. A. E. E. N. E. Y. O FFUTT, Trust Officer L. V IC K E R Y , Cashier E. LANDSTROM , Assistant Cashier V/. LYM AN , Assistant Cashier L. S H O LIN , Assistant Cashier C . M cELH A N EY , Asst. Trust Officer H. T. U EH LIN G , Asst. Trust Officer CTO RS ROBERT P. MORSMAN ROY PA G E, Vice President and LINN P. CA M P BELL, President Byron Reed Company, Inc. General Manager EDW IN A . DUFF EDWARD FLYN N , Nebraska Power Company H EN RY W . PIERPONT, President Executive Vice President Chicago, Burlington &? Quincy Railroad Co. JO H N W . H U G H ES , President Guarantee M utual Life Company Standard Oil Company of Nebraska ABR A H A M L. REED, G LEN N E. JE N N IN G S , President Wright & Wilhelmy jk ' Company A íú-¿\. ARTHUR A . LO W M A N , President Northwestern Bell Telephone Company Chairman of the Board Byron Reed Company, Inc. H A RR Y F. REED, President J | |flj TfflR M if t ly i JjB ■B n IJ w S K , ' 5 H B H e Eg •. j i y i f f I« P S S 'ills S Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1942 L. G. Doup Company ELLSW ORTH M OSER, Executive Vice President HERBERT M. BU SH N ELL, President i» be a five cent charge per check, the cost of a book of 20 checks being $1. C ustom ers m ay w rite as m any checks as th ey care to and control th e cost them selves. NEBRASKA NEWS O. A. R ILEY P resident Hastings New Assistant Bookkeeper \YM. B. H U G H ES Secretary Omaha New Checking Service Both th e A lliance N ational B ank and th e G uardian State B ank of A lliance have installed a new type checking account service, it w as announced re cently. The new service is designed for those w ho desire th e convenience of a checking account w ith o u t m ain tain ing a m inim um balance, the only re q u irem en t being th a t enough m oney he on deposit to cover the checks w rit ten. T here w ill be no m onthly service fees or activ ity charges on these ac counts. U nder th e new account th ere w ill F ra n k Svik, Jr., has accepted a po sition as a ssistan t bookkeeper w ith the C larkson Bank. Mr. Svik replaces his b ro ther, Joseph Svik, w ho resigned recently to join the arm ed forces. Elect New Vice President The board of directors of the Genoa N ational B ank has announced the elec tion of Clyde E. P earson to th e posi tion of vice president, succeeding J. W. P oynter, w ho left last m onth for Los Angeles, California, w here he is to be em ployed by the B ank of A m er ica. Mr. P earson is well qualified for W h at Nebraska Statements Show JU N E 30, 1942 The N orthivestern B an ker is pleased to pu blish Bank Statem en ts received before going to press — p u t us on you r m ailing list and send us you r statem ents im m ediately after each call. If your bank is not included in th e list beloiv it is because YO U d id not send in your statem ent. Please do so next tim e. CASHIER . E. M. K night............ . ( - H. Sudman.......... .Ed. C. Austin............ . J . A. K ucera.............. . Howard Burdick . . . . E. R. Sp ray .............. . . . . First National B an k..................... . . Harold Livingston . . . Chas. F. Tous.......... . . . Stephens National B an k ................ . J . G. Edloff.............. . . . . F i r s t National Bank...................... .A. H. F ran tz............ . . . .First National B an k ...................... . D. V. Sorensen........ .Vernon Rice ............ . F. J . Cleary.............. Grand Island. ....O verlan d National Ban k.............. . George J. Armstrong H astings. . . . . - ■ • City National B an k........................ .Floyd A. H an se n .... H astings........... . . . Hastings National B an k............... .Chas. E. Deets.......... . H. R. Killinger........ Hebron ............ .John M. Spear.......... . . . ■ Bank of ...................................... . . . . T. B. Cole.................. K ram er............ ...F a r m e rs State B an k...................... . Benj. C. Bilhorn . . . . . . . Continental National Bank. . . . . . , C. W. Battey............ . ■ • First National B an k...................... . Howard Freeman . . . B. C. C lark................ Lincoln............ . . . National Bank of Commerce........ . C. H. R yan................ L oud City. . . . . . . . First National Bank. .................. . . H. M. Krogh............ . . . First National B an k................... . . Robt. T. Covington . . Nebraska City . . • Farmers Bank ................................ . J . R. Stevenson........ Nebraska City . . . Otoe County National Bank. . . . . . H. H. Teten.............. N orfolk............ . . . National Bank o f ............................ . L. W. R oss................ W. H. Munger.......... North P latte. North Platte. . ■ • . McDonald State B an k.................... . J . Y. C astle.............. . J. T. Stewart, I I I ... Om aha............ . Paul Hansen .......... Om aha............ . R. H. H all.................. Omaha............ . Clvde O. Darner. . . . Om aha............ .John McCumber . . . . South Omaha. .A. L. Vickerv.......... Omaha............ . C. B. Gudmundsen.. Ord.................. . A. J. B axter.............. P alisade.......... Plattsm outh. . Plattsmouth State B an k................ . Frank A. Cloidt........ . F. R. Kingsbury. . . . Ponca.............. .Elm er W. L a r so n ... Scotia.............. Scottsbluff. . . . John Broadhurst . . . Scottsbluff. . . . ■ Scottsbluff National B an k............ . J. L. W itters............ American National B an k.............. . I), W. Reynolds........ Sidney.............. Spalding.......... . . . Spalding City B an k ........................ . M. J . Dolce................ Spencer.......... . . . Spencer State B^n k....................... . G. Bentz .................. Tekam ah........ .. . . F i r s t National B an k...................... . H. J . W ragge............ Wahoo............ . . . . First National B an k ...................... .Jam es L. K u d rn a... Wakefield........ Wakefield National Bank. . . . . . . . .Robert F. Anderson. Wisr>er............ .Neil D. Saville.......... Wymore.......... L. Boyd R ist............ Y ork................ ....F i r s t National B an k.......................... . H. E. Nordlund........ ^Includes cash and due from banks. TOWN BANK ....A llian ce National B an k............... . . . .Guardian State B an k...................... . .Beatrice National Bank. ................ . . . . Clarkson Bank . ............................ . . . Central National B an k............... . Capital 75,000 125,000 100,000 40,000 100,000 30,000 150,000 25,000 100,000 50.000 50.000 100,000 200,000 100,000 100,000 125,000 40.000 75,000 15,000 10,000 650,000 1,000,000 350,000 25,000 75.000 25,000 50,000 50,000 100,000 100.000 100,000 1,500.000 500,000 25,000 2,000.000 50,000 1,100,000 60.000 50.000 50.000 25,000 25,000 50,000 100,000 50,000 30.000 25,000 62,500 80,000 25.000 50,000 50,000 150,000 Surplus and Profits 93,749 97.275 110,708 13,268 85,088 22,292 118,724 13,564 94,218 22,609 98,169 148,584 470,578 64,307 89,247 170,478 23,384 61.982 23.748 6,403 323,580 534,803 509,723 37,529 79,778 48,358 138.819 46,647 30,999 147,242 44,977 1,729,103 904,116 32.219 2,463,294 376,801 1,105,776 46.0«0 10,653 121,383 29.791 7,001 30,733 174,701 63.833 30.916 11.711 84,726 73.466 33,066 61.166 14.631 219,876 Loans and Discounts 393,361 1,599,586 968,906 144.817 1,143,871 229,111 1,555,400 30,241 820.340 249,327 444,096 678,994 1,527,684 680,949 882,405 1,244,890 245,946 560,890 195,017 36,467 4,376,414 3,461,325 4,722,719 211,253 684,955 266,326 339,672 271,550 584,312 966,844 405,325 13,085.588 7,654,790 352,263 17,617,709 2,896,991 5,929.174 296,074 165,191 614,265 191,181 70,482 202.615 624,961 433,554 117.019 52,524 730,523 570,497 298.906 286,239 135,408 839,720 Bonds and Securities 434,302 472,706 880,066 168,438 1,388,890 31,887 436,114 44,997 499,311 198,721 301,800 963,335 2,911,064 284,017 424,047 1,142,471 102,728 424,463 43,439 28,662 5,846.454 14,874,567 7,322,000 406.469* 633,086 13,700 522,405 160,600 731.468 741.104 426,245 11.447.115 8,297,029 303,952 27,131,933 3,299.318 18,943,678 204.000 39.309 266,899 99.9 82 8.699 265.070 315.092 291 841 18,579 59.398 165,153 383.392 52.500 SI.900 203,910 734,719 Cash and Due From Banks 1,500,668 778,942 1,386,546 164,172 1,413,434 241,769 1,186,332 201,960 1,478,640 204,269 372,450 1,108,573 1,714,004 631,534 701,686 908,243 262,099 795,832 136,426 17,343 6,875,955 9,537,857 7,914,700 1,221,049 671,678 1,034,797 541,037 592,362 864.292 697,992 13,678,510 8,995.610 383,820 18,412,718 7,059,084 13,120,061 333,885 217,591 523,407 199.630 130,314 438.387 2,688,284 1.105,752 145,055 163,297 622,372 1.142,798 253.963 225,996 251,573 966,466 N o rth w e ste rn B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Deposits 2,195,349 2,623,797 3,026,768 425,667 3,744,571 456.069 3,012,973 243,966 2,608,798 606,608 975,136 2,534.268 5,535,464 1,434,514 1,829,576 3,048,760 560.288 1,657,656 336,136 64,747 16,191.835 26,642,901 18,846,253 549,319 2,350.424 877,029 1,709,056 891,148 1,471.649 2,305,488 1,387,573 36,556,397 23,392.563 977,316 71,044,824 12,427,532 36,276,695 741,914 361.720 1,208,542 439,189 175,966 826,156 3,062,543 1,743,255 229,322 238,194 1,375,281 1,961,756 553,754 473,167 525.666 2,216,489 A u g u st Í9b2 46 • N EBRASKA his position, and he w as form erly w ith the F irs t N ational B ank of Genoa for 24 years. N EWS* to produce g reater resu lts in th e ir area. Stockholders Meeting Held Banks Head Salvage Campaign U nder th e able leadership of R obert I. Stout, p resid en t of th e F irs t N a tional B ank, and R. K. Hancock, ex ecutive vice p resid en t and cashier of th e B u rt C ounty State B ank, T ekam ah is g ettin g w ell u n d e r w ay in th e g reat salvage cam paign. The b an k s are of fering w o rth w h ile prizes in an effort A t the ann u al stockholders m eeting of th e Peoples State B ank of W olbach, held last m onth w ith 15 stockholders in attendance, th e p resen t officers w ere reelected as follows: W. E. Mc In ty re, president; and J. C. W ilson, vice p resident and cashier. The rep o rt of condition show ed an increase in volum e of business and deposits over last year. A 6 per cent (ommercejnist (ompa ny dividend w as deciared on th e com m on stock. 60th Birthday The F irs t N ational B ank of Falls City celebrated its 60th b irth d ay last m onth by passing th e $2,000,000 m ark in deposits. The bank, successor to Reuel Nims & Company, w as ch artered as a n a tional b ank in July, 1882. Its origi nal staff w as as follows: Stephen B. Miles, president; Jo h n W. Holt, vice president; Reuel Nims, cashier; Van S. A shm an, a ssistan t cashier. The p resen t officers of the bank are as follows: E. H. Towle, president; George R. F roehlich, executive vice president; K enneth G. Sandrock, vice president; F ra n k W. Buchholz, cash ier; A ndrew D. Cam eron, a ssistan t cashier and auditor. 18-1 First National of M cCook Established 1865 KANSAS CITY, MISSOURI M ember Federal Reserve System Statement of Condition at Close of Business June 30, 1942 RESOURCES Cash and Due from B anks____________________ $103,039,314.71 U. S. Obligations, Direct and Fully G uaranteed— 69,359,225.09 State, M unicipal and Federal Land Bank Bonds_ 172,398,539.80 19,707,494.77 Stock of Federal Reserve B ank________________ 300,000.00 Other Bonds and Securities---------------------------- 9,377,074.36 29,384,569.13 Loans and Discounts----------------------------------------------------------- 54,883,834.16 Bank Premises and Other Real Estate Owned________________ 2,180,859.02 Customers’ Liability Account Letters of C redit______________ 10,267.25 Accrued Interest Receivable________________________________ 237.514.92 Overdrafts ----------------------------------------------------------------------- Other Resources __________________ _______________________ Total Resources------------------------------------------------------------ 2,244.80 3 001.99 $259,100,831.07 LIA BILITIES Deposits ( N e t ) ------------------------------------------------------------------ Surplus ----------------------------------- / ______________ 4,000,000.00 Undivided Profits ----------------------------------------------3,613,914.37 13,613,914.37 Reserve for Dividends D eclared____________________________ 60,000.00 Liability Account Letters of C redit__________________________ 10,267.25 Accrued Interest, Taxes and Expense________________________ 127,672.96 Other Liabilities __________________________________________ 1,025.06 Total L iabilities________________________________________ $259,100,831.07 Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1942 Puts in " P A Y C " The B eatrice State B ank announces th a t it has p u t in the “PAYC” (Pay-AsYou-Check) checking accounting sys tem. U nder the program depositors are not required to m aintain a m inim um balance. A charge of five cents is m ade for each check w ritten , a book of 20 checks costing one dollar. Honored at Birthday Dinner $245,287,951.43 Capital ----------------------------------------------------------- $6,000,000.00 Member Federal Deposit Insurance Corporation H olland Larm on, president of the F irs t N ational B ank of McCook, Ne braska, in th e statem en t of his bank for Ju n e 30, 1942, show s deposits of $2,350,000, loans and discounts of $684,000, capital stock of $75,000, and su r plus and undivided profits of $79,000. The officers and directors of the bank are as follows: Holland Harmon, president; H. P. W aite, vice president; H. M. K rogh, cashier; Max B illesbach, assistan t cashier; I). N. Cobb and H. P. Sutton, directors. F. G. Stilgebouer, p resident of the State B ank of Benkelm an, w as hon ored last m onth by a b irth d ay dinner given by the bank force at th e home of Mr. and Mrs. D. E. Gallatin. Mr. G allatin is th e vice p resid en t and cash ier of th e bank. Credit Associations Meet At a special m eeting of N ebraska Cooperative Credit A ssociations held at York recently, M illard M. M artin of Allen, N ebraska, and Ross M artin of Elgin, N ebraska, w ere elected to th e board of directors of th e state association to fill vacancies. 47 Company, in v estm en t firm, he is also head of th e South Omaha Feed Com pany. He is a U niversity of N ebraska graduate. The 16-room three-story Coad re si dence, bu ilt 52 y ears ago in O m aha’s W est F arn am district, at a cost of about $40,000 is being razed. The house w eathered th e E aster Sunday tornado of 1913. A rthur L. Coad, presid en t of th e P ackers N ational B ank of Omaha, w hose father, J. F. Coad, built the house in 1890, said there w ere no build ings w est of the residence at the tim e it w as erected. The Coad fam ily lived th ere 35 years. Omaha Clearings MAHA again topped th e nation in th e am o u n t of increase in bank clearings over th e sam e m o n th last y e a r in th e re p o rt for th e w eek ended Ju ly 15th, according to D un and Bradstreet. O m aha’s gain w as 33.9 per cent. The n atio n al to tal rep resen ted a gain of 7.2 p er cent. O H. H. E arhart, m anaging d irecto r of th e O m aha branch. F ed eral R eserve B ank of K ansas City, recen tly a n nounced these prom otions of b ank offi cers, m ade by th e p a re n t bank: George A. Gregory, cashier of the O m aha branch, becom es a ssista n t vice p resid en t of th e p a re n t b an k at K an sas City. Oliver P. Cordill, a ssista n t cashier at Omaha, becom es cashier. U r w in S. B erry becom es a ssista n t cash ier at Omaha. Mr. G regory, a fte r being associated w ith th e F irs t N ational B ank of H enry, Illinois, and the Om aha N ational Bank, joined th e clerical staff of th e Omaha F ed eral R eserve b ra n c h in 1918. He had been cashier since 1923. Mr. Cordill has been w ith th e bran ch since 1920. He becam e a ssista n t cash ier in 1928. Previously, he had been w ith th e F irs t N ational B ank of H am ilton, M issouri, and la te r w ith th e Tootle-Lacey N ational B ank of St. Joseph, M issouri, and th e aud itin g de p a rtm e n ts of th e Com m erce T ru st Com pany and F ed eral R eserve B ank a t K ansas City. Mr. B erry left th e City N ational of Council Bluffs, Iowa, to join th e cleri cal staff of th e Om aha F ederal R eserve b ran ch in 1919. loans, it w as estim ated by E d w in N. H orne, new presid en t of the Federal L and B ank of Omaha. The new law, signed by P resid en t Roosevelt, retain s th e reduced rate on both land b ank and com m issioner loans until Ju ly 1, 1944, for the 27,000 farm er-borrow ers in N ebraska. The rate w ould have expired Ju ly 1st this y ear if new legislation extending it had not been enacted. A verage saving for each farm er or stockm an is around $132. H ow ard B uffet, 38 y ear old Omaha in v estm en t broker, filed recently for the R epublican nom ination for Con gress in th e second N ebraska district. He is a m em ber of th e Omaha school board. It is his first v en tu re in p artisan poli tics, m otivated, he said, by the belief “th e R epublican p a rty is the only agency th a t stands betw een our chil dren and a one-party state—prelude to slavery.” Besides being presid en t of Buffet & W . D ale Clark, p resid en t of the Om aha N ational Bank, has been re elected p resident of th e Omaha Y. M. C. A. for th e com ing year. C. W. Mead w as elected a vice president. Don H. K nott, tre a su re r of th e Occidental B uilding and Loan A ssociation, w as elected to the board of directors, suc ceeding F ra n k Field, w ho has m oved to Lincoln. C. W . W in kler of L exington, Ne braska, has been nam ed field re p re sentative of the Live Stock N ational B ank of Omaha, according to A lvin E. Johnson, president. Previously, he w as a rep resen tativ e of th e St. Joseph, M issouri, Stock Yards Company. He is a grad u ate of th e U niversity of N ebraska A gricultural College and has been active in 4-H Club w ork in Dawson county and in livestock ju d g ing. Occidental B uilding and Loan Asso ciation of Omaha recently declared its reg u lar q u arterly dividend on a 3 per cent an n u al basis. It w as the 183rd dividend declared by th e association. THE FIRST NATIONAL BANK M cCOOK, N E B R A SK A C ondensed Statem ent at the Close of B usiness Ju n e 30, 1942 RESOURCES L IA B IL IT IE S Loans and Discounts....................S 684,955.81 Overdrafts...................................... 1 02.33 Stock in Federal Reserve B a n k .. 3,600.00 Banking House, Furniture and Fixtures ................................... 20,253.84 U. S. Government Bonds ............. $ 340,129.88 Municipal Bonds and Warrants . . 279,731.46 Other Market Bonds 13,226.00 Cash and Sight Exchange 1,221,040.72 1,854,128.06 Capital Stock . . . . . 875,000.00 Surplus Fund ........... 43,500.00 Undivided Profits . . . 36,278.67 Unearned Interest C o lle c te d ................ 6,639.44 Reserve for Con tingencies ............. 45,000.00 Reserve for Interest.. 2,447.91 Dividend .................... 3,750.00 212 616.02 D EP O S ITS ................................. 2,350,424.02 82,563,040.04 N ebraska farm ers and stockm en w ill save m ore th a n $3,569,000 in in te re st charges d u rin g the n ext tw o y ears as a re su lt of congressional action co n tin uing the 3% per cent rate on farm O FFICER S R olland Larm on, P resid en t D. N. Cobb AND 82,563,040.04 DIR ECTO R S H . P . W aite, Vice P resid en t M ax Billesbach, A ssistan t Cashier H . M. Krogh, G ishier H. P. S utton Member of the Federal Deposit Insurance Corporation N o rth w este rn B an ker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A u g u s t 19^2 48 ----- NEBRASKA N E WS • Am ong th e first p assengers on the initial trip of a resto red stage coach, placed in service in Zion N ational P ark, U tah, w ere Mr. and Mrs. Jackson B yron T ru n n ell of Salt Lake City, new lyw eds. Mrs. T ru n n ell is th e form er C ynthia A nne M allory, d au g h ter of Mr. and Mrs. R ichard H. M allory of Omaha. Mr. M allory is vice p resid en t of th e U nited S tates N ational B ank of Omaha. M arried at Salt Lake City, th e couple honeym ooned at th e park. Regional m anagers and th e ir co w o rk ers attended a train in g course in Omaha. The new regional m anagers are: Iow a — N. L. Landers and E. C. Konicek. N ebraska —Jack C. B ristow e, M. M. In helder and L. F. Johnson. South D akota —W . F. M ailand and J. E. S tew art. W yom ing —Don A. B eaton. A ppointm ent of 12 new associate re gional m anagers also w as announced: Iow a —J. H. Moore, P. P. Zerfass, John Com stock and F ran k Motz. N ebraska Bert W addell, a vice p resid en t of the —P aul B oisseree, M. L. W hite, C. M. H itchm an and F. M. Reece. South Da ko ta —L. E. H alverson, H. S. D zie and O. K. Sm ith. W yom ing —R. H. H ylton. H en ry H ovey w as joined at San A ntonio several w eeks ago by his wife and th e ir two children, Ford II and Constance. N am ed a ssistan t regional m anagers w ere Clarence R odgers, N ile K innick, ex-Iowa U niversity football star; A. J. U nder th e leadership of A lvin E. Johnson, p resid en t of the Live Stock F ederal L and B ank of Om aha since 1933, p resen ted his resignation a t a recen t m eeting of th e F a rm Credit Ad m in istratio n B oard a t Omaha. He plans to re tu rn to his hom e in M oorcroft, W yom ing, and to devote his tim e to ran ch in g interests. E d w in N. Van H orne, new presid en t of th e F ed eral L and B ank of Omaha, announced recen tly th a t th e F a rm C redit A dm in istratio n B oard a t Omaha h as approved selection of eight reg io n al m anagers, key m en in th e land b a n k ’s new organization plan. U nder th e new setup, th e b a n k ’s four-state d istrict is split up into eight regions. W. M. W illy w as nam ed su perv iso r of th e new associate service division of th e bank. V IC T O R Y M Behrm ann, W. N. P arm eter, K noll and W alter M ichaels. Louis cently as presid en t of th e South Omaha Savings Bank, has been elected p resid en t of the B roadw ay N ational B ank of San A ntonio, Texas, to suc ceed Col. W. A. T urnbull, w ho resigned because of ill health. The San A ntonio bank began business F e b ru a ry 15, 1941. Mr. Hovey is th e son of Mr. and Mrs. Ford E. H ovey of Omaha. F o rd Hovey is presid en t of th e Occidental Build ing and Loan Association. N ational B ank of Omaha, the regional housing com m ittee took steps recently A lthough it w as cold and rain y at to have the order freezing lum ber and L ake M iltona, A lexandria, M innesota, o th er building m aterials, lifted in Ne braska. T. L. D avis, p resident of th e F irst N a The com m ittee decided on the action tional B ank of Omaha, and Mrs. Davis m ade good use of th e ir fishing rods afte r a survey revealed a shortage of and lines, and caught plenty of bass. dw ellings w as being created by the influx of defense w orkers. A reas af T hey spent th ree w eeks at th e lake. fected p a rticu larly are Omaha, L in Also at Lake M iltona at the sam e coln, F rem ont, W ahoo, Y utan, Mead, tim e w ere Mr. and Mrs. L aw rence A shland, P apillion and P lattsm outh. B rin ker and Miss C atherine Thum m el. H enry A. H ovey, w ho resigned re- G A T / O N R A T E S N O W E F F E C T I V E AT EXCELSIOR SPRINGS A. J. R hodes, a ssistan t cashier of the Omaha N ational B ank and for 10 years a m em ber of the tru s t d ep artm en t of the bank, addressed the Omaha CoO perative Club recently on “W ills and E state P lan n in g .” Mrs. Jam es H. Moore, a Red Cross staff a ssistan t and wife of an Omaha banker, w as nam ed head of the Omaha w om en’s aid raid w arden group by F o rre st N. Croxson, chief air raid w a r den. M ISSOURI THE TIME AN D PLACE FOR THE R S S 7 " OF YOUR LIFE W illiam A. Sawtell, Jr., son of W. A. S aw tell, presid en t of th e Stock Yards A Perfect Vacation. All sports and re creations. Entertainment, dancing Health giving mineral baths, and worlds finest indoor swimming pool The Elms stables, with the best Missouri-bred riding horses. Delicious food. Bring the whole family. N ational B ank of Omaha, and Mrs. Sawtell, w as grad u ated recently from the officers’ candidate school at F o rt Sill, Oklahoma, and com m issioned a Second L ieu ten an t in th e Field A rtil lery. He left for Camp W hite, Oregon, after a brief visit w ith his p aren ts in Omaha. American plan rates, including all meals, as low as , - 77 FAR MORE TO OFFER BUT FAR FROM BEING EXPENSIVE YOUR STATE BANKERS ASSOCIATION OFFICIAL SAFE, V A U L T AN D TIMELOCK EXPERTS F. E. D A V E N P O R T & C O . THE N o rth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1942 OMAHA 49 E lton M. Jess, bookkeeper, are now in th e arm ed forces. A lbert Babcock, form erly w ith the N orth Loup C redit A ssociation, has been elected a ssistan t cashier, an d Miss B. Faye Cargill is th e new book keeper. G oes to Blue Hill Mill M ilrae Nelson of Upland, a grad u ate of th e H astings College of Commerce, has accepted a position w ith th e Com m ercial B ank of Blue Hill. A ccepts Bank Position H E N ebraska state b anking d e p a rt m en t has issued a c h a rte r to th e P ick rell State Bank in Gage County, a new corporation being form ed to re place th e F a rm e rs S tate B ank of w hich th e late F re d L. P o th ast ow ned th e controlling interest. B anking D irector W ade R. M artin said th e m ove w as m ade because Mr. P o th a s t’s w idow did not w ish to take th e resp o n sib ility of continuing th e old in stitu tio n . Ed B aum an, w ho is p resid en t of th e p re se n t bank, w ill continue as p resi d e n t of th e new one. O ther directors are: l). R eil, W illiam F. Spilker, E rn est H. Spilker and W illiam Vanderliood, all of P ickrell. T Joe L. Bartek, w ho g rad u ated from th e W ahoo H igh School in 1936, has since com pleted th e accounting course a t the Lincoln School of Commerce. Mr. B artek has accepted a position w ith th e N ational Bank of Comm erce. He sta rte d his service w ith th is good b an k in L incoln last m onth. N ebraska farm ers and stockm en w ill save over $3,569,000 in in te re st charges d u rin g th e n e x t tw o y ears as a resu lt of congressional action continuing th e 3 V2 p er cent ra te on farm loans, said E d w in N. Van H orne, p resid en t of the F ed eral L and B ank of Omaha. The new law re ta in s th e reduced ra te on both federal land b an k and com m is sioner loans u n til Ju ly 1, 1944, for th e 27,000 farm er-borrow ers in th e state. The low ra te w ould have expired Ju ly 1st of th is year. A verage saving for each farm er or stockm an figures around $132, Van H orne said. A good m any farm er-borrow ers have indicated th ey w ill in v est th e ir in te re st savings in w ar bonds, he re ported, or use it to store a reserv e w ith th e ir national farm loan associa tions and the land bank, to tak e care of fu tu re paym ents on th e ir loans. Mrs. Leo B artholom ew has resigned h er position w ith th e Cheyenne Coun ty tre a s u re r’s office to accept a posi tion w ith the A m erican N ational B ank of Sidney. Davis Vice President The Om aha N ational B ank has an nounced prom otion of D avid F. D avis to be a vice p resid en t of th e bank. Mr. Davis has been associated w ith th e bank, in the tru s t departm ent, since 1923, and recently has been tru s t officer for th e institution. New Assistant Cashier D. R oger T hum an, son of A. Thu- His new position w ill b rin g him into m an, president, w as appointed assist th e com m ercial activities of th e bank. a n t cashier at a recen t m eeting of the board of directors of th e State B ank Siemering to Ashland of T renton. A rth u r J. Siem ering of Thedford has accepted a position as clerk w ith th e F arm ers & M erchants N ational B ank Called to the Colors E lm er W. Larson, cashier of the of A shland. Mr. Siem ering has had S tate B ank of Scotia, rep o rts th a t considerable banking experience and Lloyd E rv in , assistan t cashier, and is well qualified for his position. Intimate and friendly CONTINENTAL NATIONAL BANK correspond ent service is machinelike in speed and accuracy. It fully recognizes, however, the need for friendly, intimate treatment of individual correspondent accounts. Friendly counsel is always available to you through our executives who make your problem their problems. USE THIS BANK AS YOUR LINCOLN CORRESPONDENT (ONTINENTAL RATIONAL BANKS Bought and Sold Confidentially and with becoming dignity BANK EM P LO Y EES P LA CED . 37 Y e a rs S a tisfa cto ry Se rv ice . THE CHARLES E. WALTERS CO. OMAHA. B aHk LINCOLN Member Federal Deposit Insurance Corporation N EBRASKA N o rth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1942 50 LIVE STOCK N A T I O N A L BANK O M A H 1 A S ta te m e n t of C ondition June 30, 1942 LIABILITIES RESOURCES B onds an d O th e r S ecu rities S tock in F e d e ra l R eserv e B ank $500,000.00 C apital S tock (C om m on) 7,654,790.82 L oans an d D iscounts 130,086.02 S u rp lu s (E a rn e d ) 750,000.00 37,500.00 U ndivided P ro fits 154,116.84 R eserv e fo r T axes, In te re s t, etc. 171,837.52 1.00 B an k in g H ouse an d F ix tu re s U n e arn ed D iscount 8,914.49 D ividends P ay ab le Ju n e 30, 1942 7,500.00 N one O th e r R eal E s ta te U. S. Gov. S ecu rities $8,166,943.15 (Less than Market Value) D eposits : B an k s C ash, S ig h t E x ch a n g e an d due fro m Fed. Res. B ank 8,995,610.89 17,162,554.04 $12,324,495.36 O th er D eposits 11,068,067.67 23,392,563.03 $24,984,931.88 $24„984,931.88 CAPITAL, SURPLUS & LOANS & UNDIVIDED PROFITS DISCOUNTS DEPOSITS $ 612,234.18 $1,759,199.39 $4,635,097.58 - Ju n e 30, 1933 - Ju n e 30, 1936 - 747,477.52 1,796,905.08 12,790,038.84 Ju n e 30, 1939 - 994,019.28 6,063,357.21 12,531,829.81 Ju n e 30, 1942 - 1,404,116.84 7,654,790.82 23,392,563.03 O F F IC E R S A N D D IR E C T O R S ALVIN E. JOHNSON H. C. KARPF President Vice President W. P. ADKINS Chairman HOWARD O. WILSON R. H. KROEGER Vice President Vice President PAUL HANSEN Cashier C. G. PEARSON H. H. ECHTERMEYER Asst. Cashier Asst. Cashier H. B. BERGQUIST L. S. BURK JAS. J. FITZGERALD Coal and Grain Chicago Secy. Commercial Sav. & Loan Assn. L. V. PULLIAM Asst. Cashier T. E. GLEDHILL LEO T. MURPHY HERMAN K. SCHAFER Farmer Mgr. Allied Mills, Inc. Pres. Maney Milling Co. CARL A. SWANSON Pres. Jerpe Com. & Cold Storage Co. This Bank Has No Affiliated Companies Member of Federal Reserve System and Federal Deposit Insurance Corporation Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1942 k 51 Federal Home Loan Bank IO W A A. T. DONHOWE President Des Moines Waterloo Savings Bank V. Spaulding M iller, a ssista n t cash ier of th e W aterloo Savings B ank of W aterloo, Iowa, in th e Ju n e 30, 1942, statem en t of his bank, show ed de posits of $8,507,000, w ith loans and discounts of $2,637,000, capital stock of $175,000, su rp lu s of $250,000, and undivided profits of $18,000. The officers of th e W aterloo Sav ings B ank are: H. G. N orthey, p re si dent; R. W. W aite, vice president; Carleton Sias, vice p resident; J. J. M iller, cashier; F ran cis R. La Barre, V. Spaulding M iller and O liver J. S chutte, a ssista n t cashiers. Davenport Banker Dead H a rry C. L ynn, 60, vice p resid en t and cashier of th e N o rth w est D avenport B ank and T ru st Company, D avenport, died a t his hom e in th a t city last m onth. N EW S ERANK WARNER Secretary Des Moines cause of th e 600 train ees w ho are now living in Des Moines hotels d uring th e ir train in g period at th e O rdnance P la n t a t A nkeny, tw elve m iles n o rth of Des Moines. These train ees will have finished th e ir w ork soon after th e first w eek in October, th u s m aking room s available for the “W ar W ork C onferences,” w hich w ill consist of 3 co n v en tio n s in 1, including: (1) The Iow a A ssociation of Bank A uditors and C om ptrollers, (2) T he Iow a Junior B ankers A ssociation, and (3) The Iowa B ankers A ssociation. As S ecretary W arn er says: “W ar w ork su bjects dealing w ith q uestions and problem s on h ow the Iow a bank ers can contribute still m ore and to the m axim um of th eir com bined abil ity to help the F ederal G overnm ent in all its financial problem s and any other problem s in w hich bankers m ay be able to aid to help this country w in the w ar w ill be discu ssed.” The Ju ly 1, 1942. statem en t of the F ederal Home Loan B ank of Des Moines show s capital stock subscrip tions of $10,458,000 and debentures o u tstanding of $10,000,000. Advances to m em bers am ount to $14,073,000 and U. S. G overnm ent obligations, fully guaranteed, are $4,050,000, and cash on h an d is $5,045,000. In th e surplus account th e b ank has reserves of $682,940 and undivided profits of $239,884. F o r th e six m onths ending Ju n e 30, 1942, th e gross incom e of th e bank w as $259,940 and the expenses w ere $115,840, leaving a n et income for th e first six m onths of $144,100. The num ber of m em ber in stitu tio n s is now 246, and the assets of these m em bers are $264,000,000. The officers of th e bank are as fol lows: R obert J. R ichardson, president; W alter H. L ohm an, vice presidenttreasu rer; Jam es M. M artin, assistan t secretary; A rthur E. M ueller, assist a n t treasu rer; Robert H. B ush, a tto r ney; and J esse E. B illin g s, field re p resentative. New Ryan Bank Opens P resid en t E. L. W rig h t of th e Citi zens State B ank of H opkinton a n nounces th e opening last m onth in R yan of a b ran ch bank w hich w ill serve th a t tow n and su rro u n d in g te r ritory. The q u arters to be occupied by the new b ank have ju st been re m odeled, and are v ery pleasing in ap pearance. A ccepts Bank Position W illiam D egnan, w ho has been op eratin g a filling statio n at A yrshire for th e p ast few years, has accepted a position w ith th e C entral Savings B ank and T ru st Com pany of Em m etsburg. Mr. D egnan sta rte d his new duties last m onth. Iowa W a r W o rk Conference Th ree Conventions In O n e In Des Moines A ccepts Legion Post R. H. Griffin, p resid en t of th e Odebolt S tate Bank, w as elected com m an d er of Roose P o st of th e A m erican Legion a t th e a n n u al election of offi cers. He h ad served as a d ju ta n t th e p ast year. Iowa Convention Changed From September to O ctober 25, 26, 27 F ra n k W arn er, secretary of th e Iow a B ankers A ssociation, has announced th a t th e 56th a n n u al convention of th e Iowa B ankers A ssociation w ill be held Sunday, M onday and Tuesday, Octo b er 25, 26 and 27, 1942, instead of in S eptem ber as originally planned. T his change w as m ade necessary be- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Iowa junior Bankers Association Iowa Association of Bank Auditors and Comptrollers Iowa Bankers Association Sunday, M onday and Tuesday — October 25, 26, 27 Fort Des Moines Hotel https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis thanks to his D en tist ... and his B a * One of the many w ar responsibilities shouldered by Bankers https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 54 IO W A FRO M N EW S H ERE A N D TH ERE By J. A. Sarazen, Associate Editor W IT H loan volum e show ing a steady decline; and M el E llis, su p e rin te n d e n t of banking, suggesting adequate service charges and red u c tion of in te re st rates paid on deposits in his recen t le tte r to every state b ank in Iowa, th e chief subject ev ery w here you go is service charges and reduction of in te re st rates. N ot since the natio n al b an k holiday has th e re been as m uch th o u g h t given th is m a t te r as at th e p resen t tim e and real ac tion is being tak en all along th e line and m ore is expected. The th o u g h t seem s to be th a t som e th in g w ill have to be done w ith in th e n ex t y ear to bolster rev en u e and it m ight as w ell be done a t once w hile th e farm ers are receiving good prices. A check of b ank statem en ts show s th a t liquidation of loan volum e is orderly b u t undoubtedly w ill become a serious m a tte r w ith in th e nex t year if th e tre n d continues dow nw ard. W ith th e farm ers receiving fifteen dollars per h u n d red w eig h t for hogs, and other farm com m odities proportionately high, and w ith no durable goods such as autom obiles available in w hich he can invest this m oney, it is little w on der th a t he is paying off his obliga tion to th e bank. T he th o u g h t occurs to th e w rite r th a t m ore of th is m oney should be going into w ar bonds. The farm er w ho takes th e a ttitu d e th a t he w ill clean up all his obligations spick and span before buying w ar bonds m ay aw ake some day to find th a t he does not control th e farm b ut instead w ill answ er to th e gestapo. In feeder te rrito ry loan dem and will be stren g th en ed considerably this fall if farm ers get a break in th e price for young beeves as th ey are ready and w illing to get back into th e m a r ket w hen prices w a rra n t it. This item is a bit of h isto ry con cerning a sm all b ank—the A etna Sav in gs Bank, M clntire, located in the n o rth p a rt of M itchell County. The ban k w as organized in 1899 and de posits as of Ju n e 30th w ere $83,300 w ith loans and discounts of $9,634, gov e rn m en t bonds $25,222 and other bonds $11,500. T he b ank is m anaged by R. D. W illiam s, cashier, w ho has been at th e helm for 36 years, and one lady assistant. It has had m ore th an its share of experience w ith crim inals as it has been burglarized once and held up twice. The population of Mc ln tire is 300 and is located in a fair farm ing te rrito ry . B orrow ers are few, says Mr W illiam s, as m ost farm ers can finance them selves. He w rites some insurance b u t not extensive. The high in deposits for th is bank w as in 1923 w hen th ey got up around $175,000. The n um ber of savings accounts on Ju n e 30th totaled 42 and tim e m oney am ounted to $26,345 on w hich 2 per H elp in g U n cle S a m F o r over seventy years, th ru good and bad times, we have furnished special cabinet w ork and fixtures for banks, court houses and stores. A t present, however, we are in full production on defense work. W hen conditions again become norm al we expect to be ready as usual to m ake special plans and designs for new and rem odeled bank fixtures. Should any special problem s arise in connection w ith your present equipm ent we will ap p re ciate your w ritin g us and we will do our best to take care of your needs. BANK Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19^2 FI XTURE S PE C I AL I S T S Di) -• cent in te re st is being paid. C hecking deposits am ounted to $36,951 and p u b lic funds $19,921. The capital is $10,000 w ith su rp lu s and undivided profits of $5,000. The b an k w as released from S. F. I l l in July, 1933, w hen 50 per cent of th e deposits w ere im m ediately m ade available and th e o th er 50 per cent w aived w ith b an k earn in g s pledged. The bulk of th e w aived deposits have been paid to depositors from th e seg reg ated assets, plus 16 or 17 p er cent from th e b ank earnings. F. F. Harshbarger, president, has served in th a t capacity for 16 y ears and J. W. Errington is vice president. T hese m en and th e board of directors are to be com m ended for th e ir sticktoitiveness and b rin g in g th e b an k th ro u g h w hen th in g s looked the darkest. B an k ers fully realize th e im p o rtan t p a rt th e y play in th e sale of w a r sav ings bonds and are g ettin g b ehind th e pro g ram w holeheartedly, and th e fact th a t b anks sell so m any bonds is not m erely coincidental. The job req u ires m uch tim e w ith o u t rem u n eratio n and th e b an k ers suggestion often converts m oney w hich could rem ain in th e b an k in th e form of a deposit, into w ar savings bonds. F o r instance, rep o rts from b an k s in A llam akee County of bonds sold d u rin g th e first six m onths of 1942 show th e b an k s selling 8 8 V2 p er cent of th e bonds sold or a total of $620,000 w orth. It w as th e six th county in th e state to reach and ex ceed its quota pledge of $1,180,000. AV. A. K neeland, cashier of th e Postville S tate B ank, is chairm an, C. H. McGorden, cashier of th e W aukon State B ank, vice chairm an. O ther b an k ers active on com m ittees w ere J. E. W elsch , cashier, New Alb ins Sav ing Bank; M oritz K erndt, cashier, K ern d t B ro th ers Savings Bank, L an sing; and C. V. N elson, cashier, F a rm ers and M erchants Savings B ank, Waterville. W e ra n into W alker H anna, p resi dent, H anna-K ram er Com pany of B u r lington, and Mrs. H anna, a t New H am pton the o th er day as th ey w ere re tu rn in g from R ochester, M innesota, w h ere th ey u n d erw en t a ro u tin e check-up. W alk er said th e y b oth w ere found “disgustingly h e a lth y .” Over a couple of cokes W alker told us th a t he th o u g h t th e tim e w as n e a r a t h and w hen b anks w ould cease to pay any in te re st on deposits. Mrs. F rank J. D vorak, w ife of the cash ier of th e F irs t T ru st & Savings B ank, Cedar Rapids, passed aw ay at IO W A NEWS — a local hospital Ju ly 19th after a brief illness. The L isbon B ank and Trust Com pany is in th e process of rem odeling th e te lle rs’ cages into th e new low type and w ill also build a consultation room in th e fro n t p a rt of th e bank. Deposits are off slightly here and loans rem ain nearly as high as six m onths ago. In te re st rates at th e M echanicsville T rust and S avin gs Bank w ere reduced Ju ly 1st on six m onths C. D.’s from 2 p er cent to 1 per cent. Tw elve m onths C. D.’s still bear 2 per cent. In th e last six m onths deposits gained $60,000 and loan volum e decreased $20,000. The Tipton State Bank revised checking account service charges slightly up w ard effective Ju ly 1st. A ccounts w ith an average daily bal ance of less th a n $200 w ill be charged a m inim um of 50 cents. F o rm erly the base charge applied only on accounts w ith an average daily balance of $100 or less. The Osage Farm ers N ational Bank (T urn to page 57, please) “ENCIRCLEMENT 5!» On all sides, Sioux City is "encircled" by one of the richest grain and livestock areas in all the world. Hence it is one of the great markets of the Northwest! First National officers know grain and livestock prob lems thoroughly, so they can give you complete cor respondent service on ALL your Sioux City business. Let us serve you in this great market place. V Buy U n ite d S ta te s W ar Bonds a t th is B a n k A. G. Sam, President J. P. H ainer, Vice President J. R. Graning, Assistant Cashier Fritz Fritzson, Vice Pres, and Cashier E. A. Johnson, Assistant Cashier J. T. Grant, Assistant Cashier W. F. Cook, A uditor MEMBER FED ERA L DEPOSIT INSURANCE CORPORATION f d s t h n ih u l BANK I N S I O U X C ITY Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19^2 56 W h at Iowa Statements Show JU N E 30, 1942 The N orth w 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 ed ia tely 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 you r statem ent. Please do so next tim e. TOWN BANK CASHIER Capital .O. D. E llsw o rth .... $ 25,000 Algona................... Iowa State B a n k .. . . H. L. Gilmore............ 50.000 A lgon a...................Security State Bank. . E. A. Schemel.......... 50,000 • G. R. Alley................ 100,000 .F . H. Schleiter.......... 100,000 . Ralph M. Butler. .. 50,000 .W. E. Whorrall........ 25,000 . R. J. Meyers............ 150,000 .E . E. Wiemer.......... 100,000 .F . Van Erdewyck. . . 50,000 Burlington............ Burlington Savings B an k .. . W. H. Sw iler............ 100,000 Burlington............ National B an k ....................... .Thomas L. Dyer. . . . 200,000 C arlisle.................. H artf ord-Carlisle Savin gs. G. D. Schooler.......... 25,000 H. C. Sm ith................ 50,000 . W. E. Brown............ 100,000 . Reginald B. Figge. . . 200,000 Mark J. Meyers........ 500,000 .Ervin F. Stepanek. . 250,000 . Chas. Kriz ................ 50,000 . Roy E. Oughton. . . . 50,000 . Lester F. Smith. . . . 50,000 Chariton................ National Bank & Trust Co............. . B. R. Van Dyke........ 100,000 . Wm. A. Herbrechtsmeyer .................... 100,000 . C. E. Bradley............ 50,000 . J. H. N issen.............. 400,000 Clinton.................. Clinton National B an k................... . L. J. Derflinger........ 60,000 C olfax.................... F irst National B an k....................... H. E. B ell.................. 25,000 . J . F. Schafer............ 25,000 Walter Buenneke . . . 25,000 . E. H. Spetm an.......... 150,000 Council B lu ffs... .Clyde A. Blanchard. 100,000 Craw fordsville.. . K. A. Coates............ 20,000 . Herman Staak ........ 600,000 . F. A. Johnson.......... 135,000 . T. C. A arestad.......... 100,000 Des Moines............Bankers Trust Co........ . F. C. A tkins.............. 1,000,000 . J . N. Coffee................ 150,000 Des Moines. .Central National B an k................ . J . R. C apps................ 1,250,000 . Harry G. Wilson . . . . 2,500,000 Des Moines............Valley Savings B an k...................... . J . R. Astley................ 200,000 . J . Yvo Floerchinger. 25,000 Roy F. Glab.............. 250,000 .Joseph V. Keppler. . 300,000 25,000 Glen H. M illard........ Eldon......................First National Bank. Robert Weidenbach . 25,000 . Chas. J . Spies............ 25,000 .Donald T. L aw le r... 50,000 Harry T. H uff.......... 100,000 . H. H. Mohrfeld........ 205,000 Melton E. Lehning . . 100,000 Albert R. Benbow ... 105,000 . A. F. A gena.............. 20.000 H. L. Ollenburg........ 50,000 50,000 . Lavera M. Boll........ L. M. Lann ing.......... 60,000 C. A. S life.................. 25,000 . H. Visser .................. 50,000 - K. F. Busching........ 25,000 50,000 . J. L. Campbell........ Independence........Farmers State Savings Bank. . C. L. Fiester.............. 100,000 . M. F. H enderson ..,. 100,000 G. T. Ju ffer.............. 15,000 Ralph H. Maloney. . 50,000 C. E. Stew art.......... 75,000 J. I). Roth................ 25,000 . J. R. Dyer................ 50,000 L a u re l...................Peoples Savings Bank. .Hugh C. McCleerv. . 25,000 R. E. Tool.................. 62,450 G. I.. H ill................ 50,000 C. W. Anderson........ 25,000 . G. L. Scoles.............. Manson..................Manson State Bank. 25,000 John Jargo .............. 75,000 100,000 . A. T. D avis................ Marshalltown. ('. E. O rr.................. 75,000 25,000 Guy C. Martin.......... 400,000 Wm. W. Boyd.......... Mason City. R. A. Potter.............. 100,000 50,000 . F. C. Burke.............. Monticello..............Monticello State B a n k ... H. M. Carpenter. . . . 400,000 Carson Williams . . . 30,000 50,000 D. U. Van M etre... Glen Downing ........ 125,000 B. L. McKee.............. 125,000 L. R. B assett............ 50,000 Nevada. H. T. Faw cett.......... 40,000 A. E. Hindorff.......... Newton................. Jasper County Savings Bank. 100,000 Newton..................Citizens State B an k ..................... Walter T. Robinson. 100,000 40,000 D. F. B usse................ 35,000 Oakland................. Oakland Savings Bank. J . J. E van s................ 50,000 M. C. Hanson.......... Oelwein..................First National B an k .. 20,000 Onslow................... Onslow Savings Bank. Geo. H. Paulsen........ Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19^2 Surplus and Profits § 44,282 89,089 19,038 96,908 40.011 24,222 37,008 79,004 93,334 22,233 247,507 140,591 53,109 53,681 32,811 142,484 2,429,100 191,514 61,062 62,630 28,776 50,587 Loans and Discounts $ 620,190 889,885 446,345 822,916 518,563 460,916 260,580 1,841,281 966,058 224,716 2,483,064 1,667,453 495,261 369,049 337,769 1,694,520 8,311,961 2,705,995 442,070 188,802 324,384 353,860 Bonds and Securities $ 169,568 92,000 39,514 848,317 662,705 124,340 28,494 347,247 743,335 110,096 680.793 1,514,653 65,036 548,613 849,628 1,323,070 22,753,491 1,672,636 666,636 966,570 393,272 932,094 75,823 65,376 515,200 90,455 72,033 22,649 21,799 309,011 118,401 41,758 2,878,856 99,233 54,368 962,791 137,963 737,827 1,956,580 288,137 70,850 237,417 423,841 42,751 23,411 142,300 34,749 204,155 64,467 31,896 80,071 28,302 32,068 64,066 37,323 22,338 34,732 17,656 139,929 101,254 107,167 20,016 111,131 20,384 72,201 134,488 16,183 20,036 55,843 27,055 45,202 111,175 217,798 61,290 25,644 436,629 80,043 35,460 109,268 56,129 62,775 104,205 280.436 82,390 20,398 255,484 72,192 47,032 55,000 126.648 43,200 844,676 672,660 2,469,469 269,965 499,300 273,616 310,393 3,122,243 1,459,712 198,486 9,348,669 2,110,450 634,781 9,759,977 1,355,553 11,472,317 15,506,407 4,141,568 574,472 1,417.144 1,443,131 282,105 145,505 874,639 930,713 1.900.081 722,415 165,139 610,975 149,028 326,563 496,501 496,588 303,311 224,235 160,160 844,983 1,087,853 763,578 195,937 1,151,645 126,883 436,092 789,690 193,715 263,574 379,653 361,301 499,655 1,497,907 977,885 786,753 144,434 3,263,187 1,535,159 233,516 2,865,709 474,611 492,285 890,296 1,126,925 496,394 322,313 2,387,255 678,495 442,498 558,046 596,178 299,000 692,758 180,556 2,676,459 692,381 212,147 86,575 70,500 598,396 206,368 56,600 16,142,358 851,445 411,966 10,716,726 1,816,600 14,393,378 29,362,324 845,300 148,445 3,420,898 7,462,240 163,486 339,110 143,252 177,623 356,977 2,065,620 472,798 914,644 199,915 229,795 88,500 99,900 166,230 13,487 454,215 861,821 498,054 6,500 392,439 731,200 304,577 252,770 42,300 488,104 177,350 120,780 112,644 162,139 1,120,404 760,794 189,104 4,229.671 270,331 426,458 1,911,415 67,100 168,500 1,495,527 2,982,792 444,393 24,800 737,151 631,826 206,282 131,090 822,521 93,100 Cash and Due Deposits From Banks $ 953,985 § 237,425 1,286,936 2,153,806 842,567 407,132 2,089,362 595,148 912,075 1,963,485 298,212 802,934 120,690 351,881 955,681 2,928,797 1,011,000 2,566,220 326,119 592,902 2,500,985 5,363,189 1,814,834 4,697,263 219,870 713,880 512,385 1,343,671 711,936 1,808,528 1,041,833 3,773,275 20,612,620 49,775,524 2,985,580 6,115,892 434,695 1,435,733 488,123 1,501,884 360,047 1,014,152 378,941 1,556,495 607,423 479,515 2,321,359 1,445,048 330,818 124,731 237,606 1,833,436 878,145 309,299 14,158,019 1,503,956 442,388 9.482,543 806,570 15,648,662 19,949,274 2,940,687 615,940 2,006,186 2,794,596 205,733 152,800 388,673 343,728 1,550,165 1,341,795 242,076 605,606 93,147 457,649 503,147 828,193 342,940 216,062 334,321 547,185 672,646 964,504 264,453 510,511 216,478 391.697 700,155 127,066 274,285 207,564 194,978 311,455 1,230,047 2,710,636 821,591 47,302 2,911,437 1,327,253 366,280 1,190,343 356,370 313,437 876,067 2,824,410 517,443 165.632 1,440,085 461.978 345,234 353,660 892,374 232,596 1,958,138 1,234,484 6,575,179 2,288,037 952,705 482,700 571,839 5,245,763 2,344,998 507,143 36,259,220 4,138,207 1,331,947 27,827,540 3,747,740 39,484,302 61,637,433 7,360,214 1,248,367 6,370,364 10,914,903 587,609 584,091 1,239,318 1,045,645 3,615,681 3,848,384 758,496 1,972,674 395,670 941,044 983,336 1,344,398 601,443 536,325 567,957 1,655,915 2,424,399 2,175,993 436,686 1,910,217 980,170 1,037,600 1,559,443 323,480 968,209 662,818 626,958 854,392 2,727,966 4,547,881 2,251,142 330,197 9,880,284 2,976,337 947,549 5,381,036 814,611 849,212 3,016,409 6,586.144 1,351,663 463,451 4,211,445 1,647,082 916,024 950,082 2,164,928 561,497 W H A T IO W A STATEM ENTS S H O W TOWN BANK P ella.......................Pella National B an k.. Perry...................... First National B a n k ... Red O ak................ Montgomery County National. St. A n sgar............ St. Ansgar Citizens S tate................. Sheldon.................. Security State B an k........................... Shenandoah.......... Security Trust & Savings B an k. .. Sioux City............ Toy National B an k............................. Sioux City............ Woodbury County Savings Bank. . , Spencer.................. Clay County National B an k ............... Storm L ak e..........Security Trust & Savings B a n k .., S tu a rt.................... First National Bank. .. .. ................. Wapello. W aterloo............ ..W aterloo Savings B an k................. . Wyoming.............. Citizens State B an k........................... IO W A N EW S FRO M HERE A N D TH ERE Capital 65,000 100.000 50,000 300,000 50,000 50,000 25,000 100,000 50,000 25,000 I. G. McQueen.......... 20,000 D. H. Dingsley.......... 50,000 Albert Halvorson . . . 50,000 R. A. Schneider........ 60,000 W. H. Longman. . . 400,000 250,000 250,000 300,000 100,000 60,000 A. E. Anderson........ 100,000 . K. R. Tuttle.............. 55,000 75,000 50.000 50.000 . G. B. Eginton.......... 35,000 . C. L. Beech.............. 25,000 65,000 25,000 50.000 250,000 175,000 . J . J . Miller................ 25,000 . L. B. Madson. . . . . . . *Includes Bonds and Securities CASHIER H. C. Moret.............. E. A. Heiden............ Don Hickman............ Max von Schrader. H. P. Schölte. . _____ W. B. C rist................ J . S. Zdychnec.......... Oscar Helgerson . . . Loans and Discounts 692,130 631,324 478.029 2,302,157 622,707 801,946 242,761 1,306,812 567,457 157,650 200,054 426,117 465,241 596,404 3,546,247 3.626,408 3,521,463 2,339,727 1,833,519 794,025 1.242,167 402,739 904,341 359,483 500,003 169,593 588,416* 834,675 258,183 459,804 2,820,016 2,637,101 286,716 Surplus and Profits 77,208 108,939 40,232 312,000 73,922 120,165 12,222 88,579 56,304 19.686 22,697 38,573 48,150 72,637 229,823 326,460 277,432 391,966 157,983 115,772 101,421 23,618 240,995 55,125 60,542 40,161 27,318 133,071 22,162 123,791 388,488 268,039 39,288 Bonds and Securities 59,200 620,561 439,889 2,895,685 805,758 400.976 40,068 662,741 206,512 267,574 94,930 145.423 212,527 319,250 1,708,565 3,172,299 2,243,478 5,469,344 853,815 739,232 486,476 174,321 887,012 252,800 338,755 183,436 442,849 94,139 493,397 3,547,256 2,700,699 202,760 Cash and Due From Banks 821,998 401,584 327,220 3,081,233 901,345 452.490 257,490 1,050,110 646,053 172,618 214,420 394,607 422,499 922,470 3,425,990 6.142,468 5,501,153 4,863,832 724,018 988,698 645,663 462,974 937,745 238,535 438,549 204,579 289,275 806,656 355,077 921,227 3,989,014 3,510,547 301,635 Deposits 1,442,734 1,463,082 1,152,399 7,808,511 2,214,057 1,503,505 364,748 2,857,564 1,331,172 550,682 470,875 904.886 1.019,242 1,745,132 8,219,216 12,272,392 10,918,227 12,224,382 3,123,973 2,348,900 2,218,761 1,024,278 2,388,978 757,414 1,169,393 493,784 815,977 1.905,670 657,023 1,717,318 9,694,683 8,507,759 729,915 ice on Ju n e 15th and is stationed at Camp M cA rthur, San Pedro, Califor nia. after its gran d fath er. Mr. H am ilton is vice p resid en t of th e M erchants N a tional Bank, Cedar Rapids. I t ’s a boy at th e Mr. and Mrs. John T. H am ilton home. B orn Ju ly 11th, On A ugust 5, F rank Camp, p resi dent, The F irs t N ational Bank, W est Union, w ill celebrate his 40th year in th e b anking business We don’t know how old he is b u t he certainly (C ontinued from page 55) recen tly increased su rp lu s to equal capital w hich am ounts to $100,000. T he increase w as m ade from earn in g s an d o th er reserv es am ount to $20,000. w eight six pounds and five and onehalf ounces. It is th e ir first child and w ill be called Jo h n T. H am ilton, III, M itchell County B ankers A ssocia tion held a m eeting at P ioneer State P a rk w ith 65 b an k ers and m em bers of th e ir fam ilies in attendance. M itchell C ounty w en t over th e top in th e ir Ju n e quota of w ar bonds sold. The quota w as $90,000 and th e to tal am o u n t sold w as $120,000. SECURITY NATIONAL BANK SIOUX CITY. IOWA Statement of Condition June 30, 1942 The U nion T rust & Savings Bank, Stanw ood, reduced in te re st ra te s ef fective Ju ly 1st, from 2Vz p er cent on 12 m o n th s C. D.’s to 2 p er cent. No change w as m ade in th e ra te paid on six m o n th s C. D.’s and savings ac counts w hich is 2 p er cent. T his ra te applies on am ounts up to $2,000 and on additional sum s th e ra te paid is 1 p er cent. Since th e first of th e y e a r de posits h ere have gained $105,000 and loans and discounts have decreased $50,000. The Tipton State Bank pays 1 p er cent on savings accounts, IV2 p er cent on six m o n th s C. D.’s and 2 per cent on 12 m o n th s C. D.’s. D eposits in th e last six m onths increased $86,000 and loans are off a like am ount. R obert S. N elson, fo rm erly a ssist a n t cashier, F a rm e rs Savings B ank, W alford, and for th e last y ear em ployed by th e B ank of A m erica on th e w est coast, w as inducted into serv ASSETS Cash on H and and on Deposit with Banks _______________________$ 5,501,153.36 United States Government S e c u ritie s____________________ 2,013,507.09 Bonds and Securities------------------229,971.61 Loans and Discounts____________ 3,521,463.35 Security Bank Building, Vault and Fixtures _____________________ 162,500.00 Federal Reserve Bank Stock_____ 15,000.00 2,064.71 Other A sse ts___________________ $11,445,660.12 LIA BILITIES Capital _______________________ $ 250,000.00 Surplus _______________________ 250,000.00 27,432.56 Undivided Profits and Reserves__ D e p o sits_______________________ 10,918,227.56 OFFICERS CHARLES R. GOSSETT President B. M. WHEELOCK Vice President ALBERT C. ECKERT Vice President R. EARL BROWN Cashier DANIEL B. SEVERSON Assistant Cashier FRANK H. ABEL Assistant Cashier ALVIN G. NELSON Assistant Cashier ROBERT W. LEWIS Assistant Cashier $11,445,660.12 Member Federal Deposit Insurance Corporation Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1942 58 • IO WA NEWS • looks hale and h e a rty for a m an th a t has tak en it on th e chin for th ese past 40 years. D ave L yn ch , form erly cash ier here, is now statio n ed at F o rt Sm ith, A rkansas, as a captain. The N orth w ood State Bank has no problem w ith tim e money. Tim e and savings accounts only am ount to $95,000, w hereas deposits subject to check total $460,000 The F orest City B ank & T rust Com pany pays 2 p er cent on savings ac counts. Certificates of deposits are not issued in any form. A. J H eim erm ann, cashier, Stacey- R ecent call statem en t of th e Cresco U nion Savings Bank, lists loans and discounts at $728,000, a decrease of $58,000 d u rin g th e p ast six m onths. ville Savings Bank, is recouperating from an operation for gallbladder tro u ble w hich he recently u n d erw en t at M ercy H ospital, M ason City. The F irst N ational Bank, Sum ner, reduced in te re st rates last M arch 1st from 2 per cent to 1% p er cent on WT ST. L OUI S S ta te m e n t of C o n d itio n , June 30, 1942 RESO U RCES C ash a n d D u e fro m B a n k s ................................................ $ 46,727,520.04 U . S. G o v e rn m e n t S e c u r itie s .............................................. 52,180,098.21 ( In c lu d in g th o s e p led g e d , $29,427,284.71) I n v e s tm e n t in M ississip p i V a lle y C o m p an y , w h o lly o w n e d su b s id ia ry , c o n sistin g of o b lig a tio n s of U . S. G o v e r n m e n t......... ...................................................... 3,880,000.00 7,042,611.37 B o n d s a n d O th e r S e c u r itie s ................................................ F e d e ra l R e se rv e B a n k S t o c k .............................................. 243,000.00 L o a n s a n d D isc o u n ts ........................................................... 48,336,862.98 C u s to m e r’s L ia b ility on A c c e p ta n c e s a n d L e tte r s of C re d it .................................................................................. 172,268.14 R e al E s ta te ................................................................................ 692,037.39 A c c ru e d E a rn in g s R e ce iv a b le ( N e t ) .............................. 282,524.34 O v e rd ra fts .................................................................................. 4,182.27 O th e r R e so u rc e s ....................................................................... 78,892.45 $159,639,997.19 L IA B IL IT IE S C a p ita l ......................................................................................... $ 6,000,000.00 S u rp lu s a n d U n d iv id e d P r o f i t s ............................................ 3,727,350.93 D iv id e n d s D e c la re d , P a y a b le A u g u s t 1 a n d N o v e m b e r 1, 1942....................................................................... 180,000.00 A c cru e d I n te r e s t, E x p e n s e s a n d T a x e s P a y a b le ( N e t) a n d O th e r R e s e r v e s .............................................. 932,372.06 172,268.14 A c c e p ta n c e s a n d L e tte r s of C r e d it................................ O th e r L ia b ilitie s ..................................................................... 25,409.12 D e p o s its : U . S. G o v e rn m e n t a n d O th e r P u b lic F u n d s ................................ $ 14,772,464.20 O th e r D e p o sits ................................ 133,830,132.74 148,602,596.94 both savings and certificates. Loans and discounts Ju n e 30th am ounted to $435,842, w hich is ju st $252.00 m ore th a n the year end statem en t showed. In the six m onth period to Ju n e 30th, the D ecorah State B ank held ju st about even on deposits and lost $171,600 in loan volume. Loans and discounts as of Ju n e 30th am ounted to $1,011,204. M any friends of H arry C. L ynn, vice president, N o rth w est B ank & T ru st Company, D avenport, w ill re g re t to learn of his death. He died Ju ly 19th in his hom e w here he had been confined since suffering a cere bral hem orrhage on A pril 25th. Mr. L ynn w as born. October 30, 1881, in H edrick, Iowa, and had been con nected w ith th e banking business all of his active life. He w as engaged in banking in H edrick, O ttum w a, Iowa, Clarem ont, California, and had been w ith the state banking dep artm en t in Des M oines for fifteen y ears before com ing to D avenport. S tatem ent of th e L iberty T rust & S avings Bank, D urant, as of Ju n e 30th, lists loans and discounts of $765,861. This is a slight decrease of only $27,000 d uring th e last six m onths period. Deposits increased in this tim e $125,000 and now am ount to $1,395,800. The F arm ers & M erchants S avings Bank, M anchester, reduced in terest rates paid on deposits Ju ly 1st from 1V2 per cent to 1 p er cent. Ju st a y ear ago th e bank had reduced from 2 p er cent to 1V2 per cent. Jim Burbridge, president, said his loan volum e has decreased about $100,000 d uring the past y ear and now rem ains around $600,000. R ecent reductions in in te re st rates paid by some of th e Jackson County banks include Spragueville and Maquoketa banks to 1 p er cent w hich w en t into effect last A pril 1st. The A ndrew s Savings Bank reduced from 2 per cent to 1 p er cent effective July 1st. $159,639,997.19 Complete Bond Campaign W. A. K neeland, chairm an of th e com m ittee in charge of th e A llam a kee County bond pledge cam paign and cashier of th e Postville State Bank, announces th a t his county has com pleted its bond pledge cam paign, having reached its quota of $1,180,800. Mr. K neeland also rep o rts th a t th e b ankers of his county have been very Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1942 59 . active in th is cam paign, h aving sold 88% p er cent of th e bonds sold durin g th e period from J a n u a ry 1 to Ju n e 30, 1942, th e am o u n t being $702,000. Monticello State Bank H alstead M. Carpenter, cashier of th e M onticello S tate B ank a t M onti cello, Iowa, in his sta te m e n t for Ju n e 30, 1942, show s deposits of $5,381,000, w ith loans and discounts of $2,865,000, and capital stock p referred $285,000, com m on stock, $115,000, w ith su rp lu s and undivided profits of $109,268. T he o th er officers of th e bank, in addition to Mr. C arpenter, are: R. A. Cartano, president; F rank E. Stiinson, vice president; H. W. Stuhler, vice president; C. E. F oth ergill, Chas. IO WA NEWS . w as th e principal speaker. Mr. A lbert H alvorson of the St. A nsgar Citizens State B ank and chairm an of Group 3, gave a rep o rt of th e w ork done by these nine counties in Iowa, w hich com prise Group 3. A bountiful d in n er w as served by C lark K elly of Osage to about 60 peo ple. Employed by Dayton Bank H arold F. Johnson began his duties in the F irst N ational B ank of Dayton recently. Mr. Johnson is well quali fied for his position as he w as em ployed in th e form er F arm ers State B ank th ere and since th en as exam i n er in several banks. More recently he has been em ployed by th e state highw ay commission. First Trust and Savings Bank O f Davenport R. O. B yerrum , executive vice p resi dent of th e F irs t T ru st and Savings B ank of D avenport, Iowa, in th e sta te m ent of his bank for Ju n e 30, 1942, show s deposits of $4,246,000 and loans M. E uett, Jam es A. M aurice, P aul T. Schuetz, and I). P. Sutherland, a ssist a n t cashiers. With the Colors From Iowa W alter H. D iekm ann, a ssista n t cash ier of th e Peoples Savings B ank of Elm a, w as inducted into th e arm ed services in July, 1942, and is stationed a t Jefferson B arracks. D onald B. W atson, son of J. H. W at son, a d irecto r of th e Peoples T ru st and Savings B ank of Indianola, is now a t a n aval tra in in g statio n in San Diego, C alifornia. Clifton M. Parker, cashier of th e E xchange S tate B ank of Springville, tells us th a t his son, W illiam C. Parker, is statio n ed a t F t. B enning, Georgia, w h ere he holds th e ra n k of captain in th e in fan try . Mr. W illiam P a rk e r w as fo rm erly a ssista n t cashier of th e A m erican N ational B ank of Idaho Falls, Idaho. A viation Cadet F ran k Jacobs, son of W alter Jacobs, cashier of th e L ake City State B ank of L ake City, has r e p orted at th e A ir F orce A dvanced F ly in g School at A lbuquerque, New Mexico, w h ere he w ill com plete th e advanced phases of his course of tra in in g as an aerial bom bardier. Jam es H. P ullm an, Jr., form er cash ier of th e F re m o n t C ounty Savings B ank, Sidney, is now a cadet in th e U. S. N avy P re-F lig h t School a t St. M ary’s College, C alifornia. Charles A. M onaghan, fo rm er a ssista n t cashier, is now an av iatio n cadet in th e te c h nical division of th e foreign service. On Ju ly 21, 1942, R obert D. A rthur, farm re p re se n ta tiv e of th e Citizens N ational B ank of Boone, enlisted in th e services of the U nited States Navy. County Association Meets T he M itchell C ounty B ankers Asso ciation, consisting of nine banks, had a d in n er m eeting at Pioneer State P ark , Riceville, last m onth. Mr. H eyden, th e county ch airm an and cashier of th e Osage F a rm e rs N a tional B ank, acted as m aster of cere m onies. F a th e r F itzg erald of Osage Geared to Save Time — Often a Full Day Fast Service Counts Today, When All Eyes Are Turned on Business Expansion and The National Defense Program Many progressive bankers have found by experience that the highly trained staff and the specialized facilities of the Drovers —do speed collections. They appreciate the im mediate personal attention which each item and collection receives under the close, personal attention of an executive. Notification of an unpaid or returned item, is prom pt. Remitting of collections to banks not carrying accounts here, is geared to save tim e—often a full day. W e Invite You to Use Drovers Service for all your Chicago Items and Collections DROVERS NATIONAL BANK DROVERS TRUST 0 SAVINGS BANK U N I O N mmamemKmmtmmmm, S T O C K Y A R D S , C H I C A G O Members, Federal Deposit Insurance Corporation N o rth w e ste rn B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A u g u st 1942 60 —• and discounts of $2,110,000, w ith a capital stock of $135,000 and su rp lu s and undivided profits of $99,000. The officers of th e b ank are: Geo. M. B ech tel, president; R. O. Byerrum , executive vice president; H. R. B ech tel, vice president; F. A. Johnson, cashier and tr u s t officer; L ouis M artin, a ssista n t cashier; and AV. C. Siddle, a ssista n t tru s t officer. Bank President Deceased W illiam Rogers, 63, p resid en t of th e F irs t N ational B ank at F a rra g u t, died recen tly a t H and H ospital in S hen an doah. On State "Honor Roll" Officers and directo rs of th e Farm - IOW A NEWS ers S tate Savings Bank, Independence, Iowa, have been notified th a t th e ir b an k is now on th e state honor roll, designated for banks having larger su rp lu s and undivided profit account th a n capital stock issued. Capital stock of th e b ank is listed at $100,000, w hile th e su rplus and undivided prof its are set at $101,254.27. E. F. Sorg, p resid en t of th e in sti tution, states th a t he believes his ban k is also on an o th er honor roll—th a t of soliciting th e purchase of w ar bonds from th e ir custom ers. He says th ey handle betw een $30,000 and $40,000 w o rth of these securities m onthly, ap p roxim ately $200,000 w o rth having been sold since D ecem ber 7, 1941. N orthw est C orner T h ird and B rady Streets D A V E N PO R T , IO W A Condition on June 30, 1942 RESOURCES L IA B I L I T I E S Total C a p it a l............... $ 135,000.00 ............. 75 000.00 Undivided Profits. 24,233.61 Surplus Reserves. 15,748.44 Trust Funds .... D ep o sits. $4,527,567.01 $ 249,982.05 108,203.88 31 ,173.73 ...................... Total $4,527,567.01 M ember of the F ederal D eposit Insurance C orporation Farmers State Savings Bank IN D E P E N D E N C E , IO W A Statement of Condition June 30, 1942 Resources Cash and Due from Banks......................................................................................................$ Loans and Discounts.............................................................................................................. First Real Estate Mortgages................................................................................................. U. S. Government Bonds........................................................................................................ Municipal S ecu ritie s............................................................................................................... Other Marketable Securities.................................................................................................... Furniture and Fixtures. . . Overdrafts .............................................................................................................................. Capital Stock (Common) Surplus ........................ Undivided P r o fit s ......... Deposits ........................ 672,646.62 617,442.64 470,411.55 621,115.63 216,231.99 24,475.00 3,000.00 330.07 $2,625,653.50 Liabilities ......................................................................................................... $ 1 0 0 , 0 0 0 . 0 0 ......................................................................... 50,000.00 ......................................................................... 51,254.27 ......................................................................... 2,424,399.23 $2,625,653.50 E. F. SORG, President E. E. EVERETT, Vice President C. L. F IE ST E R , Cashier P. E. SORG, Asst. Cashier Member F ederal D eposit Insurance Corporation 21 Years of Continuous Service Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1942 All officers an d directors of th e Oak land Savings B ank w ere reelected at th e an n u al m eeting of the bank, at w hich tim e a sub stan tial increase in deposits and satisfactory earnings w ere reported, and th e reg u lar sem i an n u al dividend w as declared. W. L. Spencer is president; H. H. Spalti, vice president; J. J. Evans, cashier; D. J. Spencer and H. R. Spencer, assistan t cashiers; and AV. L. W hite and E. E. Spalti, directors. R esources of th e bank as of Ju n e 30th w ere $1,042,707 and deposits ex ceed $950,000. The Oakland Savings B ank is th is y ear com pleting a halfcen tu ry of banking, and now joins th a t group of in stitu tio n s w ho have con tinuously served th e ir com m unities for over fifty years. Otto K oerth has resigned as cashier of the F irst State B ank of F red erick s burg, due to ill health, and C. E. Leach, form erly a ssistan t cashier, is now cashier. W ern er Borcherding, w ho has been em ployed as bookeeper for th e N ashua E q u ity Company, assum es the position of assistant. Mr. K oerth has been in th e banking business forty-one years, tw enty-seven of w hich have been in F redericksburg. 4,246,411.23 4,138,207.35 Unearned Interest Annual Meeting Resigns Because of Health First Trust and Savings Bank Loans and Discounts.................... $2,110,450.82 Banking House ........................... 45,000.00 Furniture and Fixtures................ 12,489.30 U. S. Government Bends ........... $ 555,356.99 Municipal Bonds. 96,287.80 Other Bonds . . . . 199,802.38 Cash and Due from Banks ........... 1,503,956.13 2,355,403.30 Other A s s e ts ............................... 4,110.72 O verd ra fts................................... 112.87 •- C lay County National Bank F. J. O’B rien, p resid en t of th e Clay C ounty N ational B ank of Spencer, Iowa, in th e Ju n e 30, 1942, statem en t of his bank, shows deposits of $2,348,900, loans and discounts of $794,000, corn loans of $342,000, U. S. bonds of $257,000, state, county and m unicipal bonds of $125,000 and cash and due from banks of $988,000. The common capital stock of th e bank is $60,000, the p referred stock is $25,000, th e su r plus is $30,000 and th e undivided profits are $85,772. The officers and directors of the bank are as follows: F. J. O’Brien, president; I. N. K irby, vice president; O. M. Chaney, vice president; A. E. A nderson, cashier; C oletta Graff, David T. Olson and A^era Oldhausen, assist a n t cashiers; and D. E. B evin g, J. A. King and R. L. Cobb, directors. Add Two Men to Staff A ddition of tw o m en to th e staff of th e tru s t d ep artm en t of the Iowa-Des M oines N ational B ank & T ru st Com pany w as announced recently by H er b e rt L. H orton, president. C. Ream D aughrity, for th e p ast th ree y ears counsel in charge of th e 61 -• in h eritan ce ta x division of th e state tax com m ission joins th e p robate di vision of th e tr u s t departm ent. D aughrity, a g rad u ate of W est H igh School in Des Moines and of the D rake U n iv ersity L aw School, w as ad m itted IO WA NEWS •- H. Doolittle, vice p resid en t and tru s t officer. G arns attended E a st H igh School in Des Moines. H is latest em ploym ent has been w ith th e savings and the in stallm en t loan dep artm en ts of th e bank. dent; J. F. Baden, presid en t of the Security State B ank of Independence, vice president; C. E. S tew art, cashier of th e F arm ers State B ank of Jesup, secretary; and D. H. Dingsley, cash ier of th e Rowley Savings Bank, tre a s u rer. County Officers Elected Heads Lions Club At th e recent an n u al m eeting of B uchanan C ounty B ankers A ssocia tion the following officers w ere elec ted: W. W. Blasier, p resid en t of the F a rm e rs State B ank of Jesup, p resi L aw rence L. Bless, cashier of the V entura State Bank, w as recently elected p resid en t of th e Lions Club at Clear Lake, and took office officially at th e ir first m eeting in July. n i l yin IP n il AAl U[III lH UOlfn JE OTTUMWA, .. i if J J Jl m 0 IOWA M em ber of F ederal R eserve S ystem C. REAM D A U G H RITY to th e b ar in 1924. He practiced law for tw elve y ears in Ida C ounty before his em ploym ent by th e state ta x com m ission here. He w as connected w ith th e law firm of Cam pbell and Cam p bell, of B attle Creek, and w as in g en eral practice in Ida Grove. Statement of Condition as of June 30, 1942 RESOURCES L o a n s and D is c o u n ts .................................................................. $2,302,157.72 105,000.00 B ank B u ild in g ................................................................................ 23,933.64 F urniture and F ix tu res and S a fety D ep o sit V a u lts. . . . 7,000.00 O ther R eal E s ta te .......................................................................... 15,000.00 S to ck in F ed eral R eserve B a n k .............................................. 2,501.00 O verdrafts .................................................................................. U . S. B o n d s .......................................................$ 615,229.25 M unicipal B o n d s ............................................ 1,728,324.80 O ther M arketable B o n d s ............................ 552,132.13 5,976,919.39 Cash and E x c h a n g e ....................................... 3,081,233.21 $8,432,511.75 L IA B IL IT IE S Capital (C o m m o n ) .......................................................................$ 300,000.00 Surplus .............................................................................................. 200,000.00 U n d ivid ed P rofits and R e s e r v e s ............................................ 112,000.00 D ivid en d P ayab le July 1, 1942................................................. 12,000.00 D e p o sits ............................................................................................ 7,808,511.75 $8,432,511.75 BUY RAYM OND GARNS R aym ond G arns, an em ploye of the b an k for fifteen years, has been p ro m oted to th e staff of th e tru s t de p artm en t, w hich is headed by Clyde W AR B O ND S O F F IC E R S FRANK VON SCHRADER, Chairman of Board and President W. C. M ILLER, Assistant Cashier H. L. POLLARD, Vice President FRED DIMMITT, Assistant Cashier R. W. FUN K, Vice President FRANK M. POLLARD, Asst. Cashier MAX VON SCHRADER, Cashier C. G. M ERRILL, Trust Officer C. P. GLENN, Assistant Cashier M e m b e r F ed era l D e p o sit In su ra n c e C orporation Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1942 62 —• A ccepts Bank Position R. H. F lieh ler has been appointed by th e board of directors of the Com m u n ity Savings B ank of Edgew ood to take th e position of a ssista n t cashier, m ade vacan t by th e resig n atio n of R obert E. A rth u r, w ho recen tly en tered th e arm ed forces. Graettinger Replaces Raleigh E dw in G raettin g er has accepted a position w ith th e G raettin g er State B ank to replace Stanford Raleigh, w ho is leaving for th e arm y. To Head Branch Bank Phil Orr, w ho has been connected w ith th e F irs t N ational B ank of P e r ry for some tim e, w as recen tly m ade m anager of th e B ren to n State B ank at W aukee. IOWA NEWS Union Bank and Trust Company Max von Schrader, cashier of the U nion B ank & T ru st Com pany of Ot tum w a, Iowa, in th e statem en t of his b ank for Ju n e 30, 1942, show s deposits of $7,808,000, loans and discounts of $2,302,000, U. S. G overnm ent bonds of $615,000, m unicipal bonds of $1,728,000, o th er m arketable bonds of $552,000, and cash and exchange of $3,081,000. The capital of th e bank is $300,000, w ith su rp lu s and undivided profits of $312,000. The officers of the bank are: F rank von Schrader, chairm an of the board and president; H. L. Pollard and R. W. F unk, vice presidents; Max von Schrader, cashier; C. P. Glenn, W. C. M iller, Fred D im m itt and F rank M. Pollard, a ssistan t cashiers; and C. G. M errill, tru s t officer. C ouncil B luffs S a v in g s B ank COUNCIL BLUFFS. IOWA STATEMENT, JUNE 30, 1942 ASSETS Cash on Hand and Due from Banks ........................................$1,833,436.28 U. S. and Other Bonds.................. 598,396.14 Total Cash Resources............... $2,431 832.42 Loans ............................................. $3,122,243.12 Overdrafts ..................................... 699.48 150,000.00 Bank B u ild in g ............................... Capital Stock Surplus L IA B I L I T I E S ...............................$ 150,000.00 .......................................... 250,000.00 Undivided Profits and Reserves. . . Deposits ........................................ $5,704,775.02 59,011.70 5,245,763.32 $5,704,775.02 O FFICERS B. A. Gronstal, President E. P. Schoentgen, Vice Pres. & Chair, of Board E. P. Juel, A ssistant Cashier Julius Rosenfeld, Vice President John B. Keeline, Assistant Cashier E. H. Spetman, Cashier and Trust Officer D. E. Hesse, Assistant Cashier John M. Jurgens, Assistant Cashier Laverne Tollinger, Assistant Trust Officer THE MONTICELLO S T A T E BANK M O N T IC EL L O , IOW A Statem ent of C o n d itio n at the close of business Ju n e 30, 1942 A SSETS Cash and Due from Banks. . . $1,190,343.18 United States Bonds ........... $1,502,601.49 Municipal Bonds. 332,736.85 Other Bonds . . . . 76,077.44 1,911,415.78 Loans and Discounts . . . . 2,865,709.73 Overdrafts ......... 697.05 Stock in Federal Reserve Bank. . 15.000.00 Banking House . . 25,000.00 L IA B I L I T I E S Time Deposits . . . $3,052,136.26 Demand Deposits. 2,328,900.60 $5,381,036.86 Capital Stock Preferred . . . . 285,000.00 C o m m o n ......... 115,000.00 Surplus 100,000.00 Undivided Profits. 9,268.31 Reserves............. 117,860.57 Member of the Federal Reserve System Member of the Federal Deposit Insurance Corporation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19^2 400,000.00 .............. $6,008,165.74 Northwestern Banker •C . A . SLIFE C ELEB R A TES (C ontinued from page 15) in advance of th e elusive answ er as to w hen the peak w ill be reached? We offer four w hite sidew alls and one black spare (if ever available again) for a dependable forecast. “Being reg u lar readers of th e N o r t h w ester n B a n k e r we w ill w atch its colum ns closely for th is forecast. We alw ays find its pages full of inform a tion valuable to bankers, its new s sec tions extensive and in terestin g and its editorials packed full of common sense. “A lot of ban k ers w ho w ere fo rtu nate enough to w eath er the storm s of th e p ast 25 y ears w ill not be here 25 y ears hence, b u t we are hopeful th a t m any w ill survive to see ju st w h at does happen, and th a t those w ho are com ing up in th e business w ill be spared some of th e headaches th a t fol low overexpansion, by keeping in m ind the tren d s upw ard and dow n w ard as revealed to us in th e reliable business charts. E ven w ith 25 years of experience in banking it m ay take an o th er jolt or tw o to hold our feet on the ground, as booms do have great pulling power, b u t we are determ ined, as m any b ankers are, to keep in m ind w h at alw ays follows booms. “Our p resen t officers, W alter Scott, president; W. E. Sedgwick, vice p resi dent; C. A. Slife, cashier; E. V. Slife, a ssistan t cashier, all have been con nected w ith th e bank for the entire 25 years, and these officials, together w ith E. B ru n stin g and C. H. Sedgwick, compose the board of directors. N EW S A N D VIEW S (C ontinued from page 15) can Affairs, and like his good friend, Vice P resid en t H enry A. W allace, Jim is becom ing a v ery good Spanish speaker, and ju st recently w ent to Mexico City, w here he delivered a speech in Spanish. T hey tell a sto ry in W ashington th a t w hen th e secretaries and sten ographers w ere first h ired th ey w ere given a com plete m ental and practical exam ination before th ey w ere em ployed, b u t now th e young ladies are sim ply tak en into a room w here th ere is a w a sh in g m achine, a typew riter and a m achine gun, and if th ey can tell w hich is the typew riter, th ey get the job. $6,008,165.74 A rlington C em etery is alw ays a beautiful place to visit, even w ith all of its sad m em ories. We stopped again at the tom b of th e U nk now n 63 -• Soldier, read once m ore th e in scrip tion w hich said, “H ere rests in hon ored glory an A m erican soldier k now n but to God.” The m ost talked-about series of a r ticles in W ash in g to n are those being published in th e Times-Herald each Sunday u n d e r th e heading “H avin g a W onderful Tim e B oys.” These are w ritte n by Georgiana X. P reston, and are re fe rred to as fol lows: “IN-TRO-DUCING, ladies and g en tlem en , the second character of a fa m ous com pany, th e “H avin g W onder ful Tim e B oys,” w ho are w illin g to throw every th in g overboard, in clu d ing national u n ity, so long as they can have top b illin g in w h at is to them the greatest sh ow on earth—th is war. “Sunday, the W ash ington Tim esH erald p u b lish es a profile of M arshall F ield, No. 2 m an of a m otley cast of characters w h ich in cludes W alter W in ch ell, George and D orothy B ack er, A rchibald M acLeish, D rew P ear son, H en ry Luce and his beautiful w ife, Clare Booth Luce, E rn est K. L ind ley and (carnival sty le) ‘m any, m any others.’ ” In Orange, V irginia, we sp en t a de lightful w eek w ith Mr. and Mrs. R ich ard E yre in th e ir new hom e, “H ick ory H ill.” The h o sp itality of th e South w as nev er m ore in evidence, and th e ir m any friends w ere m ost courteous to us w ith th e ir m in t ju lep and cocktail p arties for w hich th e y are fam ous. The South is a land w here an cestry w orship reaches its m ost delightful and in terestin g peak. IOWA NEWS •- large seven-day clock, dated 1802 and m ade by th e Swiss clockm aker, Leschot, w hich m arks th e days of the w eek by th e descent of th e cannon ball w eights, and is w ound from a folding ladder. The double glass doors to th e salon opposite are geared to g eth er so th a t eith er one also oper ates th e other. Beside th e chim neyb re a st in th e dining room is a dum b w aiter by w hich bottles w ere raised directly from the w ine-cellar, th e em p ty bottles re tu rn in g as co u n ter w eights. The U n iv ersity of V irginia is also located at C harlottesville, and w as es tablished in 1819. D uring th e last school year th ere w ere only 72 girls enrolled, and believe it or not, the college does not welcome them , b ut has to accept them because it is a state university. T here is a plaque on one of th e buildings w hich says: “W oodrow W il son, student, U n iv ersity of V irginia, 1879-1881, p resident of the U nited S tates of A m erica, 1913-1921.” A nother v ery beautiful place is The Waterloo Savings Bank W A TERLO O , IOW A Statement of Condition as Made to Superintendent of Banking, at the Close of Business June 30, 1942 RESO U R C ES F irst M ortgage L oans______________________________ $ 648,218.70 Loans S'ecured by C o lla tera l________________________ 1,139,426.29 C om m ercial Loans S up p o rted by F inancial Statem ents ______________________________________ 849,459.92 O verdrafts ________________________________________ R eal E state (fo rm er b a n k b u ild in g in c lu d e d )----------F u rn itu re and F ix tu re s-------------------------------------------State, C ounty and M unicipal B o n d s--------------------------- 173,179.34 M arket B o n d s _____________________________________ 148,223.51 C om m ercial P a p e r _________________________________ 1,230,000.00 Securities of the U. S. G overnm ent and its In stru m e n ta litie s ________________________________ 1,149,195.98 Cash on H and and D ue from B anks_________________ 3,510,547.92 $2,637,104.91 826.87 78,951.00 22,769.56 6,211,146.75 $8,950,799.09 L IA B IL IT IE S In C harlottesville, V irginia, we visited th e hom e of Thom as Jefferson at M onticello. T his is a m ost b eau ti ful and d elightful place, and th e hom e and m ost of th e eq uipm ent and gad gets in it w ere designed by T hom as Jefferson, including th e first swivel ch air w hich w as ever m ade, and w hich E lean or R oosevelt recen tly had copied for F. D. R. T hom as Jefferson died at M onticello at th e age of 83 on Ju ly 4, 1826, th e 50th a n n iv e rsa ry of th e signing of th e D eclaration of A m erican In d ep en d ence. By a coincidence Jo h n A dam s also died on th a t sam e day. T he house contains m any exam ples of Jefferso n ’s inventive genius. In th e ceiling of th e east portico is a w ind-vane o perated by a w eathervane above. Over th e hall door is a C apital S t o c k ___ S urplus _________ U n d iv id ed P rofits D eposits ------------ .$ 175,000.00 250,000.00 18,039.14 $8,950,799.09 Deposits Insured by The Federal Deposit Insurance Corporation Washington, D. C. $5,000.00—Maximum Insurance for Each Depositor—$5,000.00 OFFICERS H . G . N o r t h e y , P r e s id e n t R , W . W a i t e , V ice P r e s id e n t C a r l e t o n S i a s , V ice P r e s id e n t J . J . M i l l .e e , C a s h ie r F r a n c is R . L a B a e r e , A ss’t C a s h ie r V. S p a l d in g M i l l e r , Ass’t Cashier O l iv e r J . S c h u t t e , Ass’t Cashier DIRECTORS Cl a r e n c e E . Ca m p b e l l C a r l e t o n S ia s R . W . W a it e H arry G . N orth ey J . J . M il l e r L ow ell J . W alker C. F . A l t s t a d t H a r r y A . L im b e r t W il l E . Ogle C. R . D a v is K . L. B eagdon Geo r g e E . P ik e C l y d e H in s o n J a m e s G. E a s t o n Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 443,039.14 8,507,759.95 August 19k2 64 W hat Their Statements Show Figures Reported by Banks in Larger Financial Centers According to Their Statements JU N E 30, 1942 Capital . $ 4,000,000 . 50.000.000 1.000.000 . 30.000,000 1,000,000 3.000,000 6,000.000 . 21.000,000 100,270.000 . 90,000,000 . 50.000,000 . 41,597,980 . 7,000,000 San Francisco. . . .Bank of America.................................. 59,247,020 St. Louis................ Boatmen’s National B an k................... 2,500.000 St. Louis................ First National B an k.............................. 10,200,000 St. Lou is................Mercantile^Commerce Bk. & Tr. Co.. 10,000,000 6,000,000 TOW N BANK 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 ti o n a l B a n k ................................ C h ic a g o ..................... L iv e S to c k N a tio n a l B a n k .................... 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 ............C o m m e rc e T r u s t C o.................................. N e w 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 e w Y o r k ...............C h a se N a tio n a l B a n k ................................ 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 ................ I r v in g T r u s t C o.......................................... N e w Y o r k ................ M a n u f a c t u r e r s T r u s t ............................ “M ontpelier,” th e hom e of Jam es M ad ison, n ear Orange, V irginia. T his is owned now by M arion D uP on t Scott. She is th e w ife of th e fam ous m ovie actor, R andolph Scott, b u t th e y have been sep arated for some time. W hile we w ere in W ashington th e follow ing sto ry w as told to prove th a t the w ar h a sn ’t dulled P resid en t Roosev e lt’s sense of hum or. It is supposed to have been told to P rim e M inister W inston C hurchill w hen he w as a t the W hite H ouse on his recen t visit. H ere ’s th e story: “A sailor w alked into an auction room , and found a p a rro t being au c tioned off. The sailor bid $10, b u t w as raised to $15, and in tu rn raised the an te to $25. The bidding w en t on, and th e sailor m atched th e offers, and the p a rro t w as finally knocked down to him for $45. “ ‘T h a t’s p len ty to pay for a b ird ,’ th e sailor told th e auctioneer. ‘Can the p a rro t ta lk ? ’ “ ‘Can th a t b ird talk!’ replied the $ Surplus and Profits 4,142,918 65,057,627 1,100,026 49,359,832 1,639,120 11,415,137 7,613,914 77,802,359 141,069,654 189,470,856 54,323,292 43,086,937 11,322,863 81,389,879 2,300,081 10,070,730 7,318,897 3,727,350 auctioneer. ‘W hy against you.’ ” he $ Loans and Discounts 55,965,920 263,515,028 5,092,956 404,730,275 5,742,602 43,750,169 54,883,834 226,496,200 822,753,458 511,072,404 213,802,752 287,446,670 82.312,269 889,353,623 21,073,462 75,698,881 44,086,239 48,336,862 w as bidding E llio t P aul in his new book, “The L ast Tim e I Saiv P aris,” gives a v ery graphic and in terestin g description of how F rance g radually slipped from being a first rate pow er to one of a conquered nation. If you h av en ’t read this book, we can certain ly recom m end it to you be cause it is m ost interesting, and in one place Mr. P aul says, “W hat h ad be come of F ren ch unity, security, soli darity, and sp irit is today m ore apparre n t th a n it w as then. C lem enceau h ad sabotaged th e only prom ising w orld peace proposal since th e Ser m on on the M ount. The b u rg lars of th e Quai d’ O rsay abused all of F ra n c e ’s form er allies. T hey had failed in an a ttem p t to grab th e R uhr, th e R hineland and the Saar. F rance w as econom ically unsound, financially bankrupt, m orally ill and p h ysically tottering. From a first class pow er she had slipped to a third class relic.” Statem ent of C ondition Ju n e 30, 1942 THE CLAY COUNTY NATIONAL BANK SPEN C ER , IOW A RESOURCES Loans and Discounts...................... $ Overdrafts ..................................... Banking House ............................. Furniture and Fixtures.................. Federal Reserve Bank Stock........... Accrued Interest on Bonds Bought. Interest Earned but NotCollected. C. C. C. Corn Loans. .$342,390.56 U. S. Bonds and Notes 257,103.84 Obligations guaranteed by U. S. Government 9,000.00 Bonds of Other Gov ernmental Agencies 5,165.00 State. County and mu nicipal Bonds . . . . 125,572.60 Cash and Due from Banks .................. 988,698.47 L IA B I L I T I E S 794,025.07 496.29 30,000.00 6,800.00 3,450.00 171.49 1,800.00 Common Capital Stock $ 60,000.00 A ” Preferred $tock 15.000. B ” Preferred Btock 10.000. 00 Surplus ...................................... 30.000. 00 Undivided P r o fits ...................... 85,772.33 Reserves, “ A ” Preferred Stock Retirement ........................... Deposits ................................... 15.000. 2,348,900.99 1 ,727,930.47 $2,564,673.32 F. J. O ’Brien. President I. N. Kirby, Vice President O. M. Chaney, Vice President Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis O F F I C E R S AND D IR E C T O R S A. E. Anderson, Cashier Coletta Graff, Asst. Cashier David T. Olson, Asst. Cashier Vera OI hausen, Asst, Cashier August 19^2 $2,564,673.32 D. E. Beving, Director J. A. King, Director R. L Cobb, Director 00 Bonds and Securities 76,957,963 1,003,418,397 15,856,500 617,400,474 8,011,487 267,618,127 98,743,794 728,408,009 1,666,204,952 1,381,787,749 373,652,625 448,499,788 64,964,837 774,550,313 36,887,078 165,528,513 109,617,192 63,102,709 $ Cash and Due From Banks $ 72,657,942 577,203,002 30,575,890 443,491,914 21,791,690 126,247,537 103,039,314 361,252,663 1,137,399,126 670,721,571 282,750,437 363,455,727 60,920,991 419,241,180 44,557,768 100,023,015 85,232,740 46,727,520 Deposits $ 196,717,970 1,724,560,308 49,023,489 1,391,531,654 33,427,070 413,516,485 245,287,951 1,231,547,589 3,595,451,030 2,289,224,762 780,348,990 1,041,290,928 190,084,094 1,958,430,526 97,533,941 312,405,960 225,311,682 148,602,596 V ictor Cullili, p resid en t of th e Financial A dvertisers A ssociation and assistan t secretary of th e M ississippi Valley T ru st Com pany of St. Louis, in a recen t le tte r to us, said: “I read th e N orth w estern B anker reg u larly and find th a t it im proves w ith age. It couldn’t be otherw ise w ith such a fine staff as editors.” H. N. B oyson, vice president of the M erchants N ational B ank at Cedar Rapids, spent his vacation w ith his fam ily on Lake Itasca n ear Douglas Lodge, M innesota, w here the breezes w ere cool and th e fishing w as good. L ast m onth Charles H. Bryant, presi dent of th e Des Moines M orris Plan Company, celebrated his 25th an n i v ersary as m anager and p resid en t of the com pany w hich w as organized in 1916 and has grow n to a point w here it averages 7,000 loans annually. Mr. B ry an t has been active in Des Moines financial circles since 1907 and in addition to his w ork w ith the Des Moines M orris P lan Com pany has contributed a g reat deal of tim e and energy to various form s of com m unity service. John T. H am ilton II, vice president of the M erchants N ational B ank of Cedar Rapids, has very proudly an nounced th e arriv a l of John T.III and says th a t both th e fu tu re president of th e M erchants N ational B ank and his m o th er are doing fine. 00 M any Do “My wife had a dream last night, and th o u g h t she m arried a m illion aire.” “You’re fortunate. Mine th in k s th a t in the daytim e.” A FTER TH E W A R — W H A T ? (C ontinued from page 13) L et us now see th e effect of th is large n atio n al debt on th e banks. D uring th e 18 m o n th s ended last De cem ber 31, th e natio n al debt of th e U nited States increased by $15,789,000,000. Savings Bonds, T ax A ntici pation Notes, and p u rch ases by gov e rn m e n t tr u s t funds took ju s t a little over eight billion dollars of th is in crease, leaving appro x im ately seven and th ree-q u arters billion dollars available for p u rchase by th e banks, and th e b anks took about five and onehalf billion dollars of th is total. P ro jectin g these calculations over th e 18 m o n th s ending Ju n e 30, 1943, we come to th e conclusion th a t th e ap p ro x i m ate increase in th e gov ern m en t debt w ill be fifty billion dollars, of w hich tw en ty -th ree billion seven h u n d re d m illion w ill be available for pu rch ase by banks. T here are so m any assu m p tions used in a rriv in g a t th is figure th a t it is probably little m ore th a n a guess, b u t it gives us an idea as to w h a t we m igh t possibly expect. If th e sam e percen tag e of absorption w ere to apply as in th e preceding 18 m onths, th e b an k s w ould have to take som ew here betw een fifteen an d eig h t een billion dollars by th e end of th e n ex t fiscal year. T his w ould m ean th a t th e ir holdings as of th e first of th is y ear w ould on th e average be in creased by 60 to 75 per cent in total. T he b anks can expect increased de posits and increased earn in g assets, low er excess reserves, and a low er p ercentage of capital funds to de posits. W hile th e re is some inflation a ry risk in th is procedure, it is not likely to cause any difficulty if prices are controlled w hile th e dem and for goods is in excess of th e supply. As to th e risk w hich th e b anks ru n in h aving so heavy a percentage of th e ir assets in g o v ern m en t bonds, I should v e n tu re th e opinion th a t th e long term in te re st ra te w ill not be p e r m itted to change m uch for th e d u ra tion. It is possible th a t th e short-term ra te m ay show som e fu rth e r stren g th . So far as excess reserv es are con cerned, it is m y opinion th a t the T re a su ry and th e F ed eral R eserve B oard w ill see to it th a t th e b anks are supplied w ith an adequate bal ance, m oving th e req u ired reserv es YOUR STATE BANKERS ASSOCIATION OFFICIAL SAFE, VAULT AND TIMELOCK EXPERTS F. E. DAVENPORT & CO. bonds p erm itted u n d er th e W ar Pow ers Bill, it is m y estim ate th a t th e banking system could absorb a total of som ew here around one h u n d red n in ety billions of debt w ith o u t fu rth e r legislation being passed. It m ight be w ell to inject a t this point th e question of w h eth er or not th e banks w ill volu n tarily absorb the trem endous increase in th e debt neces- dow n w henever conditions seem to re quire such action. Some of you m ay have w ondered how far th e banks can go in absorbing th e increase in the federal debt and, ju st to give you some idea, if th e reserves w ere re duced to th e old m inim a of 7, 10, and 13 per cent, w ith all th e o th er factors rem aining even, th e F ederal R eserve itself w ere to purchase all of the STA TEM EN T OF C O N D IT IO N M e r c a n tile - C o m m e r c e B a n k and Trust Company L o c u s t » E ighth - St. C harles St. L o u is J U N E 30, 1942 THE R E SO U R C E S Cash and Due from B a n k s.............................................. $85,232,740.20 U. S. Governm ent Obligations, direct and guaranteed (including $21,683,294.52 p le d g e d * ) .................. 79,007,706.60 O ther Bonds and S ecu rities........................................... 30,609,486.21 Demand and Time L o a n s ............................................. 44,086,239.07 Stock in Federal Reserve Bank in St. L o u is ............... 420,000.00 Real Estate (Company’s B u ild in g )................................. 2,650,000.00 O ther Real Estate (Former Bank of Commerce Bldgs.) . 1,500,000.00 O v e rd ra fts.......................................................................... 33,374.12 Customers’ Liability on Acceptances and Letters o f C r e d it..................................................................... 194,294.37 O ther R e so u rc e s................................................................ 93,712.75 $243,827,553.32 THE L IA B ILIT IE S Capital S to c k ..................................................................... $ 10:000 , 000.00 Surplus .............................................................................. ^ 000 ,000.00 Undivided P ro fits .............................. $3,318,897.99 Reserve for Dividends Declared . . . 450,000-00 3, 768,897.99 535,551.52 Reserve for Interest, Taxes, etc....................................... 2,203.05 Unpaid D iv id e n d s............................................................ 194,294.37 Bank’s Liability on Acceptances and Letters of Credit 14,924.14 Other L iab ilities............................................................... Deposits, Secured: Public Funds . . $ 16,479,711.26 Other Deposits, D e m a n d ................ 177,701,698.72 Other Deposits, T im e ..................... 31,130,272.27 225 311,682.25 $243,827,553.32 * A ll S e c u r itie s p le d g e d are to the U. S. G overnm ent or its Agents, State o f M issouri a n d the City o f St. Louis, to secure deposit a n d fiduciary obligations. M E M B E R F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T I O N OM AHA N o rth w e ster n Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19^2 66 MERCHANTS MUTUAL BONDING COMPANY Incorporated 1933 H om e Office V A L L E Y B A N K B U IL D IN G Des Moines, Iowa • © This is Iowa’s oldest surety company. A progressive company with experi enced, conservative management. We are proud of our hundred and fifty hank agents in Iowa. To be the exclusive representative of this company is an asset to your bank. © e W rite to E. H. WARNER S e c r e ta r y a n d M a n a g e r I o w a ’s L a r g e s t B u s in e s s T r a in in g S ch o o l Many banks, bond-houses, insurance companies and other financial insti tutions employ A. I. B. graduates. Write or telephone when you need efficient office employes. E. O. FENTON, Director American Institute of Business DES MOINES 10th and Grand Tel. 4-4221 BANK S U P P L IE S A d d re s s in g M a c h in e s . . . . A d d in g M a c h in e s D u p lic a tin g M a c h i n e s .................E le c tro -C o p y is t E q u ip m e n t . . . O zalid W h i te p r i n t P ro c e s s T y p e w rite rs . . . E d ip h o n e V oice W r i tin g F r id e n C a lc u la to rs KOCH BROTHERS P r i n t e r s . . . B o o k b in d e rs . . . Office O u tf itte r s S ta t io n e r s . . . B u s in e s s M a c h in e s G ra n d A v e n u e a t F o u r th S tr e e t D E S M O IN E S N orth w estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1942 sary to finance the T reasury, and it is m y opinion th a t they w ill do so as long as the T reasu ry continues to keep its offerings in line w ith w h at the b anks w ant. T here is alw ays, of course, the possibility th a t some issue w ill not be fully subscribed, and I should suspect th a t following this, th e re m ight be some m oderate p res sure placed on the banks to subscribe for bonds as and w hen th ey are offered. As to the outlook for loans d uring the w ar, th ere seem s to be little to indicate at the p resen t tim e th a t th ere w ill be any im p o rtan t dem and for m oney in this territo ry , and m any b an k ers feel the best we can hope for is th a t the tren d w ill not be m ore th a n m oderately dow nw ard. W ith agricul tu ra l incom es fairly well sustained and the average consum er unable to buy m any of the things he needs, it w ould be logical to assum e th a t the g eneral tre n d of borrow ing in th e non defense areas w ill be dow nw ard. F u r therm ore, the presen t regulations re strictin g sm all loans w ill elim inate m any loans w hich m ight othew ise be made. I have given you m y idea of w h at th e post-w ar p icture m ay look like and I also w ish to give you some idea of w h at banking conditions m ay be like at th a t tim e. Of course, I am not a ttem p tin g to say w hen th e w ar w ill end, but, if conditions th en existing approxim ate those w hich I have already set forth, I should be of the opinion th a t th e general tren d of b an k ing w ill not be g reatly different in the fu tu re th an it has been in the past. T here m ay even come a tim e w hen th e banks w ill ten d to low er th e ir ra th e r inflated holdings of governm ent debt, b u t I should not anticipate th a t th is w ould be in the im m ediate post w ar area. One of th e reasons for th is statem en t is th a t th e governm ent w ill still have su b stan tial m atu rities and th e re m ay even be m ore p ressu re b ro u g ht on the banks to absorb T reas u ry offerings in th e im m ediate post w ar area th a n th ere is du rin g the w ar. A large volum e of individual p u r chases can be su stained u n d er th e stim ulus of p atrio tism th a t m ay be h ard to inspire in the im m ediate post w ar period. If we can look forw ard to a period of som ew hat stabilized business in the im m ediate post-w ar years, I should anticipate th a t th ere w ould be a m oderate increase in the dem and for loans at th e banks by those w ho have aw aited th a t period before sta rtin g new ventures. I should im agine th a t the total of these loans, how ever, w ill not be of such volum e as to stra in in anyw ise th e credit or facilities of th e banks. As far as th e outlook for in terest rates is concerned in th e post-w ar period, it is m y opinion th a t T reasu ry financing, plus a sluggish dem and for loans, w ill have a tendency to keep in te re st rates at relatively low levels for some time. A nd now let me give you m y view s as to th e longer-range outlook. If the U nited States w ill assum e, p erhaps in collaboration w ith G reat B ritain, a position of w orld dom ination such as is im plied in th e so-called A tlantic C harter, and if th e p resen t b a rrie rs to w orld trad e are broken down, then, w ith th e trem endous resources of this nation geared to a world-wide dem and, I can visualize th is co untry en terin g into a golden era th a t w ill exceed an y th in g we have y et seen and, if w e can keep the w orld at peace, m ight con tin u e for m any y ears to come. Reduce Interest on Time Deposits C. L. Beech, cashier of th e F irst N ational B ank of S tuart, recently an nounced th at, effective last m onth, in te re st on tim e and savings deposits w as reduced from 2 per cent to 1 per cent. Open New Branch The F arm ers and M erchants State B ank of W in terset opened a banking office in Booneville. T his brings the num ber of offices operated by th is bank to th re e —th e other tw o being located at O rient and St. Charles. E. E. C ushm an of D exter is the office m anager of th e new Booneville office. Linder A ccepts Teller's Position Ed. G. L inder has recently accepted a position as teller w ith th e Iowa State B ank and T ru st Com pany of Fairfield. Mr. L inder has had previous banking experience, and w as for tw o years a field supervisor w ith th e Iowa State Sales Tax Division. We also receive w ord from th is Fairfield bank th a t th ey have recently changed th e ir bank fixtures to the low m odern type and installed fluores cent lighting w hich has added to the appearance of th e in terio r of th e build ing. Ring Out Good News A farm d inn er bell w as obtained from Mrs. E lizabeth Owen, of near Hum boldt, m ounted on top of the tw o story bank building of the Iow a State Bank of A lgona, and rung every tim e a W ar Savings Bond is sold. It lias 67 • caused considerable com m ent and stim ulated in terest in b u yin g of bonds. E very ring of the b ell is a gen tle re m inder. A ccepts New Position K erm it S. Paulson, vice p resid en t of th e F a rm e rs Savings B ank of Joice, Iowa, has severed his active relatio n s w ith th e above b an k and accepted an offer as a ju n io r b an k exam iner of th e F ed eral D eposit In su ran ce C orpora tion. He sta rte d his service in th a t capacity recently. H is position in th e b ank has not yet been p erm an en tly filled. IOW A NEWS • C itizens Savings B ank of Anam osa, w rites us th a t B. E. R h in eh art, direc to r and ch airm an of th e board of the A nam osa in stitu tio n , w as recently m arried to Mrs. C harlotte H artm an, and left im m ediately after th e m a r riage for a honeym oon trip to various points in Oklahoma. New Assistant Cashier D. C. Merlo, w ho has been w ith th e Sprague S tate B ank of Caledonia, Min nesota, for th e past 35 years and who has been cashier of th a t b ank for th e p ast 16 years, has accepted a position as assistan t cashier of th e D yersville N ational B ank of D yersville, Iowa. The new organization, effective last m onth, is designed “to provide b e tte r loan service to farm ers,” Mr. Van H orne said. A ssociate m anagers include J. H. Moore, P. P. Zerfass, Jo h n Comstock and F ra n k Motz for Iowa. Reduce Interest Rate B. C. Casady, cashier of th e State Savings B ank of C antril, announces th at, effective last m onth, his bank reduced th e in te re st ra te on both tim e and savings deposits from 2 per cent to 1 p er cent. A ccepts Position at Harlan Randall Bank Remodeled J. H. B rekkan, cashier of th e R an Board Selects Regional dall State Bank, announces th a t his Managers b an k has ju st been rem odeled and new fixtures installed. The v a u lt w as m oved back about 10 feet and rebuilt. A co n sultation room and e n try have been added, and a new fro n t p u t on th e building. Anamosa Banker Marries Leo J. W egm an, p resid en t of th e E dw in N. Van H orne, p resident of th e F ed eral L and B ank of Omaha, recently announced th e F a rm Credit Board of Omaha had approved selec tion of m anagers of th e eight regions. T he m anagers, all of w hom have been em ployed by th e bank in other capacities, include N. L. L anders and E. C. K onicek for Iowa. H. W. O uren of Belle Fourche, South Dakota, has accepted a position in the H arlan N ational B ank and assum ed his duties last m onth. Mr. Ouren w as form erly connected w ith th e H ar lan N ational B ank and so w ill come as no stra n g e r to th a t com m unity. F o r the p ast few years he has been w ith th e F irst N ational B ank of th e Black Hills, at Belle Fourche, South Dakota. TARGET FOR TONIGHT ... Y o u r fíu s in e s s ? Maybe they won’t actually come and drop a b o m b on your business, but the Axis war lords have their eye on it, just the same. They want to wipe it out as a competitive force—or take it over lock, stock, and barrel. Here is a threat that you can reply to n ow , today, and in no uncertain terms— by buying War Bonds to the very limit of your powers, that our arme,d forces may have the guns, tanks, and planes they need to crush the Axis o n ce a n d fo r all. THE GOAL: 10% OF EVERYONE’S INCOME IN WAR BONDS Every American wants the chance to help win this war. When you install the Pay-Roll War Savings Plan (approved by organized labor), you give your employees that chance. For details of the plan, which provides for the systematic purchase of War Bonds by voluntary pay-roll allotments, write: Treasury Department, Section S, 70912th St. NW., Washington, D. C. B u y War Savings Bonds T L is s p a c e is a c o n t r ib u t io n to A m e r ic a ’s A ll-O u t W a r P r o g r a m b y THE NORTHWESTERN BANKER N o rth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1942 68 • IOWA NEWS • Pays 10 Per Cent Dividend The F o rt Dodge N ational B ank paid a 10 p er cent dividend from its tru s t fund last m onth, F ra n k C. Moeller, president, announced recently. W ith th is dividend, th e eighth since liquidation began, depositors have re ceived 90 per cent of th eir total de posits, Mr. Moeller said. Reorganize Wellsburg Bank NEXT DOOR TO CITY HALL* PHONE 45 The Peoples Savings B ank of W ells burg w as reorganized at a m eeting of th e board of directors recently. The change resu lted in th e selection of the p resent cashier, George H. Geerdes, as president, of the bank; F re d Lundem ann of Ackley, vice president; G. H. B allard of Iow a Falls, as cashier in the place of G. H. Geerdes. H arold Geerdes was m ade assistan t cashier and Doris B eecroft w as retain ed as bookkeeper. Mr. B allard w ill assist in th e m an agem ent of the b ank as cashier, filling the vacancy in th e force caused by th e d eath of J. J. L undem ann, w ho held the office of vice president, b u t also assisted Mr. Geerdes in th e active w ork of the bank. M A SO N CITY, IO W A They Laughed Through Tears Officials and em ployes of th e W h it ney Loan and T ru st Com pany of A t lantic, w ere laughing th ro u g h th e ir tears recen tly a fter being “blitzed” by C harles M allette, w ho w as w orking at th e b ank w hile C harles B allard w as tak in g a vacation from his duties as custodian. Mr. M allette had been w arn ed to avoid certain gadgets around th e bank, b u t his advisors overlooked some of them , w ith th e resu lt th a t he trip p ed a b u tto n settin g off th e te a r gas equip m ent w hile dusting. The startled Mr. M allette dashed into th e stre e t to call b an k officials a fter brav in g th e tear gas b arrag e and th e b ank doors w ere th ro w n open early to air out the building. It w as some tim e, how ever, before A ssistant Cashier in c o u n try b an k w a n ts ch an g e. T w enty-five y e a rs experience. A v ailab le now o r la te r. W rite R. M., N o rth w e ste rn B an k er. For Sale — R econditioned b a n k book keep ing m ach in e v e ry good condition. W rite E. C. O., N o rth w e ste rn B an k er. 20th y ea r p la n n in g a d v e r tis in g program s fo r ba n ks and tr u s t com panies. M e m ber F in a n cia l A d v e rtise r s A sso cia tio n . ( llzNiLínú C o u n s D e l o n B a n k R . W E S S L IN G , P R E S ID E N T N o rth w este rn B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A u g u s t 19^2 P U b l i e R e l a t i o n s <^A/[oins-±, LfotMCl traces of th e gas had disappeared en tirely and th e bank staff got a full sam ple of effectiveness of th e equip m ent. A ccepts Cashier's Position Miss D orothy Y oungberg has re signed at th e New H artfo rd postoffice and has been engaged as cashier of th e New H artfo rd b ranch of the P a rk ersb u rg S tate Bank. Former Banker Dies George C. M ilbrandt, 46, M itchell county auditor since 1938, died re cently at th e farm hom e of his brother, Roy, near Osage. He w as em ployed in th e F arm ers and M erchants B ank at Osage from 1916 u n til 1926 and w hen it closed he w as cashier. Cashes Old Certificate Speaking of old docum ents, et cetera, E. H. Mertz, vice presid en t of the H ayesville Savings Bank, cashed a certificate of deposit recently, w hich had been issued in 1915 by th e late George S. Griffin, form er cashier of the bank. Mr. M ertz said it w as the oldest one he had ever cashed. The certificate w as o u tstand ing th ro u g h o u t W orld W ar I and th ro u g h th e high, depression and “rep ressio n ” years w hich followed, b u t even after all th a t tim e, it w as still w o rth its face value. Mr. M ertz added, “Of course it w as redeposited in th e H ayesville Savings B ank.” Bank Liquidates At a recen t m eeting of th e board of directors, th e F irst N ational B ank of N ora Springs voted to liquidate its business, and notices w ere sent to all depositors to w ith d raw th e ir m oney by Ju n e 30th. The b ank w as 50 y ears old on Ju ly 1, 1942, and du rin g th a t tim e its busi ness has been conducted by th e PiehnSchnedler family. L. H. P iehn w as founder, his son-in-law, H. F. Schnedler succeeded him , and th e la tte r’s son, W. H. Schnedler, has had charge of th e b a n k ’s affairs since his fa th e r’s death in Jan u ary , 1941. A ccepts Bank Position Cletus D ockendorf recently accepted a position w ith th e A lta Vista State B ank to replace N orbert Johann, who has enlisted in th e navy. G oes to FD IC Jo h n L. Cram er, Steam boat Rock, w ho has for several years served as 69 • a ssista n t cashier of th e H ard in C ounty Savings B ank in E ldora, has been ap pointed to th e exam ining staff of th e eig h th d istric t of th e F ed eral D eposit In su ra n c e C orporation. H is te rrito ry w ill be in p o rtions of Iow a and Illinois. Vinton's New Bank Opens T he B enton B ank and T ru st Com p any of V inton opened for business last m onth. T h ro u g h o u t opening h u n d reds of citizens of V inton v isted th e b an k to m eet officials and adm ire th e new flower-bedecked fixtures. To celebrate th e opening of th e new bank, 50 m en m et at th e V inton Coun try Club for a steak d in n er th e n ig h t before. H osts w ere Ju d g e C larence Nichols and J. H. Milroy. E v ery b an k in B enton C ounty w as represented. Also p re se n t w ere sta te b an k in g offi cials, and b a n k ers from Des Moines, W aterloo and Cedar Rapids. I O W A N E W S • Heads Cham ber of Commerce V incent P. Cullen, executive vice p resid en t of th e N ational B ank of B urlington, w as recen tly elected head of th e B urlington C ham ber of Com m erce to succeed Carl C. Riepe. Appears in W ar Bond Film J. M. H utchinson, tru s t officer of th e D avenport B ank and T ru st Com- And ex Go ¿Advertisers II V A l l e n , H a r o l d L., I n v . Co., D e s M o i n e s ............................................................ A l l i e d M u t u a l C a s u a l t y C o m p a n y ............... A. C. A l l y n a n d C o m p a n y ................................ A m e r i c a n I n s t i t u t e o f B u s i n e s s .................. A m e r i c a n N a t i o n a l B a n k a n d T r u s t C o.. 30 24 29 66 32 Manages New Department A tto rn ey A. L. Vogle of D yersville, has been nam ed m an ag er of a new ly created farm d ep artm en t in th e A m er ican T ru st and Savings B ank in D u buque, it w as announced recently. Mr. Vogl w as assista n t cashier of th e D yersville N ational B ank for m any y ears and la te r w as associated w ith th e E a ste rn Iow a L ivestock M arketing A ssociation. F o r th e p ast eight years he has been d ep u ty collector w ith th e U nited States D ep artm en t of In te rn a l R evenue. Meet at Wayland T he L ouisa-W ashington C ounty B ankers A ssociation held a m eeting a t th e W ayland H igh School recently. The W. S. C. S. served six ty a t th e dinner. A fter th e dinner, Mrs. Lee H uston spoke on, “B anking F ro m th e W o m a n ’s A ngle,” followed by a discus sion com paring N ebraska b an k in g m ethods w ith Iow a m ethods by F ra n k K rone, vice p resid en t of th e N ational B an k of W ashington. To conclude th e activities of th e evening, a gen eral discussion was held reg ard in g th e new req u irem en ts of R egulation W. Banks Sold or Bought! quietly, quickly and in a personal manner JAY A. W ELCH BANK BROKER Haddam, Kansas “35 Years Practical Banking Experience” pany, w as featu red in th e “M inute Men for V ictory” p a rt of a new sreel re leased last m onth by T w entieth Cen tu ry Fox M ovietone News. The pic tu re, w hich had a four-day show ing at th e Capital T h eater in D avenport, w as m ade a little over tw o m onths ago at th e broadcasting studio of WOC. In th e featu re Mr. H utchinson m akes an appeal to th e people of Iowa to do th eir p a rt in th e purchase of w ar bonds and stam ps. 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 o . . 68 H o m e I n s u r a n c e C o m p a n y .............................. 6 H o t e l R a d i s s o n ....................................................... 40 I I o w a - D e s M o i n e s N a t i o n a l B a n k ............... 72 I r v i n g T r u s t C o m p a n y ........................................ 71 B J B a n k o f A m e r i c a ................................................ 43 B a n k e r s T r u s t C o m p a n y ...............................52-5 3 J a m i e s o n a n d C o m p a n y ...................................... K C C e n t r a l H a n o v e r B a n k a n d T r u s t C o.. . . C e n t r a l N a i o n a l B a n k a n d T r u s t C o .......... C h a s e N a t i o n a l B a n k ........................................... C ity N a tio n a l B a n k an d T r u s t C o m p an y — C h i c a g o ............................................................... C lay C o u n ty N a tio n a l B a n k — S p e n c e r. . C o m m e r c e T r u s t C o m p a n y .............................. C o n tin e n tal-Illin o is N a tio n al B a n k an d T r u s t C o m p a n y .................................................. C o n tin en tal N atio n al B a n k — L in c o ln ... C o u n c i l B l u f f s S a v i n g s B a n k ......................... 37 10 4 35 64 46 22 49 62 I) D a v e n p o r t a n d C o m p a n y , P . E ................... 48-6 5 D e L u x e C h e c k P r i n t e r s , I n c ........................... 3 6 D es M o in es B u ild in g , L o a n a n d S a v in g s A s s o c i a t i o n ............................................................ 68 D r o v e r s N a t i o n a l B a n k ...................................... 59 K l i p t o L o o s e L e a f C o m p a n y ............................ 68 K o c h B r o t h e r s .......................................................... 66 I j G e o r g e L a M o n t e a n d S o n ................................. 3 L e s s i n g A d v e r t i s i n g C o m p a n y .................... 68 L i v e S t o c k N a t i o n a l B a n k — - C h i c a g o . . . . 26 L i v e S t o c k N a t i o n a l B a n k — O m a h a .......... 50 L i v 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 . . 38 M M ercan tile C om m erce B a n k an d T r u s t C o m p a n y ................................................................. M erch a n ts M u tu al B o n d in g C o m p an y . . . M e r c h a n t s N a t i o n a l B a n k ................................. M i d l a n d N a t i o n a l B a n k a n d T r u s t C o.. . M i n n e s o t a C o m m e r c i a l M e n ’s A s s n ............ M i s s i s s i p p i V a l l e y T r u s t C o m p a n y .......... M o n t i c e l l o S t a t e B a n k ........................................ 65 66 2 5 25 58 62 O E O m a h a N a t i o n a l B a n k ........................................ 19 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 . . 25 E l m s H o t e l ................................................................. 48 P F P h i l a d e l p h i a N a t i o n a l B a n k ......................... 21 P u b l i c N a t i o n a l B a n k a n d T r u s t C o .......... 36 F a r m e r s S t a t e S a v i n g s B a n k ......................... F e d e r a l H o m e L o a n B a n k ................................ 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 .......... F i r s t N a t i o n a l B a n k — C h i c a g o .................... F i r s t N a t i o n a l B a n k — M c C o o k .................... 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 ............... F i r s t N a tio n a l B a n k of th e B la ck H ills. 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 ............ F ir s t T ru s t a n d S av in g s B a n k — D a v e n p o r t ............................................................................. F i s h e r C o m p a n y ..................................................... 60 30 28 31 47 55 40 34 60 54 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 ............... 29 G u a r a n t y T r u s t C o m p a n y ................................. 41 S S e c u rity N a tio n a l B a n k — S ioux C ity . . . . 57 U U n i o n B a n k a n d T r u s t C o m p a n y ............... U n i t e d S t a t e s N a t i o n a l B a n k ......................... U n ited S ta te s T re a s u ry D e p a rtm e n t. . . . 61 44 67 \v W a n t a d s ...................................................................... C h a r l e s E . W a l t e r s C o m p a n y ......................... W a t e r l o o S a v i n g s B a n k ................................... 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 .......... N o rth w e ste rn B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 30 68 49 63 69 68 25 A u g u s t 1 9 't2 70 IN THE DIRECTORS' ROOM A r m y Lingo A. M.—A bbreviation for am plitude m odulation. A m phicephalous—H aving a head at both ends. B aldie—A rm y haircut. Blab off—T alk out of tu rn . B oudoir—Squad tent. Cosm olines—A rtillery. Gas house—Saloon or beer garden. Gigolo—Soldier w ho gets a phone call from a girl. Goof off—To m ake a m istake at drill. H ay b u rn e rs—Cavalry. Housewife-—Sew ing kit. Iro n horse—Tank. Jeepy-—Screwy. M other M cCrea—Sob story. Old m an—Com pany com m ander. P ay y o u r re n t—L ay off th e ladies. P ineapple—H and grenade. Salivate—Knock out. Santa Claus in the p its—Good ta rg e t record. See th e chaplain—S hut up. Slum —Food. Stone c ru sh ers—In fan try . Stovepipe—T rench m ortar. Sw eat—To expect. Take off—Bawl out. Top kick, Top kno ck er—F irs t se r geant. Needs Time P apa—Now, daughter! I sim ply w on’t have th a t new boy friend of yours kissing you like that! D aughter—Oh, give him a chance, father! H e’ll learn! Aviation Jargon B ird dog—One w ho cuts in on a n o th e r’s girl. Brace—E x aggerated position of a t tention. Cadet w idow —Young lady w ho has been know n by several classes of av ia tion cadets. Dodo — U nderclassm an w ho has nev er been aloft. Get y o u r head out of y o u r cockpit— P ay a tte n tio n to w h a t is going on. Gig—A dem erit; also a verb denoting given a dem erit. G unner—One w ho sits a t foot of th e m ess table and see th a t all dishes are refilled. H. P.—H ot pilot, one w ho th in k s him self a p re tty good flyer. Pop it out—E x p an d one’s chest to th e limit. P ull y o u r w ings in—Tuck y o u r el bows into y o u r sides. Rap it back—P ull y o u r chin in. N o rth w e ste rn B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A u g u st 1942 Stam p on it—Stam p on a sm ile w hich has been ordered w iped off. W ashing m achine—T raining-squad ron com m ander’s airplane. W oofin’—To indulge in tall tales. Must Have Been H usband: One n ig h t w hen you w ere aw ay, I heard a burglar. You should have seen me going dow nstairs th ree steps a t a tim e!” W ife: “W here w as he—on th e roof?” Can H appen Speaker: “Now, ladies and gen tle m en, I w an t to tax yo u r m em ory.” Voice in Audience: “G reat grief! H as it come to th a t? ” Suspicious A m an w as charged w ith shooting a n u m ber of pigeons, th e p ro p erty of a farm er. The solicitor for th e defense trie d to frig h ten th e farm er. “Now,” he rem arked, “are you p re pared to sw ear th a t this m an shot your pigeons?” “I d idn’t say he did shoot ’em ,” w as th e reply. “I said I suspected him .” “Ah! Now w e’re com ing to it. W hat m ade you suspect th a t m an ?” “W ell, firstly, I caught him on m y land w i’ a gun. Secondly, I heerd a gun go off and saw some pigeons fall. T hirdly, I found four o’ m y pigeons in his pocket—and I don’t th in k them birds flew th ere and com m itted sui cide. Shrapnel W an t ad in a B ritish new spaper: “W anted, as m any defense w o rkers as possible to talk about g overnm ent se crets w hen off duty. A. H itler & Co., B erlin, Tokyo and Rom e.” The H aw aiian language has an al p habet of only 12 letters. Im agine conducting a w ar w ith governm ental agencies and bureau s lim ited to th e n u m b er of letter com binations one could obtain from so stingy an alp h a bet. New answ er in G reat B ritain to a person asking th e direction: “I don’t know , I ’m a p arach u tist m yself.” Some tim e later it w ould be a good m ove for th e League of N ations to adopt th e F in n ish troops for its own standing arm y. W e still th in k the Italian s w ould have done b e tte r had th ey stuck to g ran d opera. W hat w e’re afraid of is p re tty well covered in an answ er given in an E a st ern first-aid class: “In case of a head w ound, p u t a to u rn iq u et around the neck.” Disgusted “W hen you ju m p ,” said the officer to th e p arach u tist about to m ake his first leap, “count 10 and pull th e rip cord. If n o thing happens, count 10 m ore and pull th e second rip cord. W hen you get down, a tru c k w ill be w aiting to take you back to cam p.” The rookie jum ped out of th e plane, counted to 10, pulled th e first cord. N othing happened. He counted to 10 once m ore, pulled th e second cord. A gain nothing happened. Said he, in disgust: “Phooey. I ’ll bet th a t tru ck w on’t even be dow n th ere and I ’ll have to w alk back to cam p.” Good Friends “Y assum ,” said Callie, the Negro cook, “I been engaged for goin’ on 10 days.” “W ho is the bridegroom ?” “W ellum , h e ’s a m ighty nice m an.” “H ave you know n him long?” “Yes, indeedy. D on’t you rem em ber, Miz, dat about tw o w eeks ago you lem m e off one day rig h t after din n er tim e so’s I could get to th e fu n ’el of a lady friend of m ine?” “Yes, I do.” “W ellum , de one I ’m fixed to m arry is de d ep arted ’s hu sb an d .” Just Suppose The su p erlatively graceful Isadora D uncan, fam ed for h er am azing nim bleness, w as a g reat believer in eugen ics. Once, she w rote to George B ernard Shaw and suggested th a t if they w ere th e p aren ts of a child, it w ould u n doubtedly be superhum an. “J u s t im agine,” she w rote, “w h at a w onderful child it w ould be, w ith m y body and yo u r b rain s.” Shaw w rote back: “If ev ery th in g tu rn e d out as you suggest, no doubt th e child w ould be as w onderful as you say. B ut suppose it had m y body and yo u r b rain s?” I r v in g T r ust C o m pa n y O N E WALL S T R E E T • N E W Y O R K Statement of Condition, June 30, 1942 A S S E T S C ash on H an d , and D ue from F ederal R eserve B a n k and O ther B a n k s . . . U . S. G o v e r n m e n t S e c u r i t i e s ................................................................................................... $ 2 8 2 ,7 5 0 ,4 3 7 .2 3 3 6 5 ,7 7 6 ,2 5 5 .8 5 State, C o u n t y a n d M u n i c i p a l S e c u r i t i e s ............................................................................ O t h e r S e c u r i t i e s ................................................................................................................................ S t o c k in F e d e r a l R e s e r v e B a n k ............................................................................................... 4 9 9 ,8 4 0 .0 0 4 ,2 8 8 ,4 3 0 .3 2 3 ,0 8 8 ,1 0 0 .0 0 L o an s and D isc o u n ts .................................................................................................................. F i r s t M o r t g a g e s o n R e a l E s t a t e ............................................................................................... 2 0 1 ,8 7 3 ,9 5 6 .8 0 1 1 ,9 2 8 ,7 9 6 .7 1 H e a d q u a r t e r s B u i l d i n g .................................................................................................................. O t h e r R e a l E s t a t e ........................................................................................................................... 1 7 ,1 3 4 ,8 0 0 .0 0 1 ,1 8 0 ,1 8 0 .1 2 L i a b il i t y o f C u s t o m e r s f o r A c c e p t a n c e s ............................................................................ A c c r u e d I n c o m e , A c c o u n t s R e c e i v a b l e , e t c ........................................................................ 1 , 6 2 6 , 7 2 3.2 2 2 ,1 0 7 ,4 8 3 .7 0 $ 8 9 2 ,2 5 5 ,0 0 3 .9 5 L I A B I L I T I E S D e p o s i t s .................................................................. O ffic ia l C h e c k s .................................................... $ 7 7 3 ,6 1 9 ,6 2 9 .3 6 6 ,7 2 9 ,3 6 0 .9 8 $ 7 8 0 ,3 4 8 ,9 9 0 .3 4 A c c e p t a n c e s .............................................................. L e s s A m o u n t in P o r t f o l i o ............................. $ 4 ,1 4 5 ,0 3 0 .8 7 2 ,2 7 1 ,7 3 3 .5 0 1 ,8 7 3 ,2 9 7 .3 7 2 ,2 5 4 ,3 8 9 .1 5 7 5 0 ,0 0 0 .0 0 4 7 9 ,0 4 1 .7 0 R e se rv e for T a x e s and O th er E x p e n se s . D i v i d e n d p a y a b l e J u l y 1, 1 9 4 2 ................... O t h e r L i a b i l i t i e s .................................................... U n earn ed and D eferred In co m e 2 ,2 2 5 ,9 9 3 .0 7 . . . . $ 5 0 ,0 0 0 ,0 0 0 .0 0 5 4 ,3 2 3 ,2 9 2 .3 2 C a p i t a l S t o c k ......................................................... S u r p l u s a n d U n d i v i d e d P r o f i t s ................... 1 0 4 ,3 2 3 ,2 9 2 .3 2 $ 8 9 2 ,2 5 5 ,0 0 3 .9 5 U nited States G overnm ent Securities are stated at am ortized cost. O f these, $40,016,204.79 are pledged to secure deposits of public monies and for other purposes required by law. M e m b e r F ed era l D e p o s it In su ra n c e C o rp o ra tio n BOARD OF DIRECTORS W ILLIA M N . EN STR O M H A RRY E. W A R D P resid e n t C h a irm a n o f th e B o a rd O. L. A LEXANDER ED W A R D H. CLARK HARO LD A. H A TC H J. W H IT N E Y PETERSON P resid e n t P o c a h o n ta s F u el C o m p a n y In c o r p o r a te d C h a irm a n o f th e B o a rd C erro d e Pasco C o p p er C o rp o ra tio n V ice-P resid e n t D e e rin g M illik e n & C o ., In c . E x e c u tiv e V ice-P resid e n t U n ite d S ta tes T o b a c c o C o m p a n y ADAM K . LUKE JACO B L. REISS JO H N F. D EG EN ER , Jr. V ic e -P re sid e n t a n d T rea su rer W e s t V irg in ia P u lp a n d P aper Com pany P resid e n t, In te rn a tio n a l T a ilo r in g C o m p a n y H EN R Y P. BRISTOL P resid e n t B risto l-M yers C o m p a n y W . G IB SO N CAREY', Jr. P resid e n t T h e Y a le & T o w n e Mf g . C o. C . A . A u ffm o r d i & C o. HIRA M A. M A TH EW S P resid e n t, N a tio n a l L ea d C o m p a n y C h a irm a n , E x e c u tiv e C o m m itte e V ice-P resid e n t N a tio n a l S u g a r R efin in g W ILLIA M SK IN N ER Com pany M ICHAEL A. MORRISSEY P resid e n t P resid e n t H E N R Y FLETCHER T h e A m e r ic a n N e w s C o m p a n y , In c . W illia m S k in n e r & S o n s F letc h er & B r o w n R EID L. CARR P resid e n t C o lu m b ia n C arbon C o m p a n y https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FLETCHER W . RO CKW ELL W ILLIA M K . D IC K GEO RG E F. G EN TES V ice-P resid e n t A U G U STU S G . PA IN E FRA N CIS L. W H IT M A R S H C h a irm a n o f th e B o a rd N e w Y o r k & P e n n sy lv a n ia C o. P resid e n t F rancis H . L e g g e tt & C o m p a n y R fOCRL POinT or lOUIR’S UIRR EFFORT As the governmental and financial center of Iowa, Des Moines naturally is a focal point of Io w a ’s War effort which today is contributing much toward ultimate Victory. To a greater degree than ever before most Iowa Banks today find it advantageous to have a correspondent connec tion in Des Moines to better serve their customers in the War emergency period. Iowa’s Largest Bank is com pletely equipped to handle your Des Moines account. . . to pro vide you and your customers with the type of service called for by these unusual times. Can w e help you? Call on us at any time. / a itimi gdm uy Member Federal Deposit Insurance Corporation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis