Full text of The Northwestern Banker : August 1942, Forty-Seventh Year, Number 661

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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
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BU Y

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UNITED
STATES

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W AR

aJB°NDS
and

M l STAMPS


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Federal Reserve Bank of St. Louis

AFTER THE W A R — W H A T ?

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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

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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.


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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.


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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

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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

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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


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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 .


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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

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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

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Federal Reserve Bank of St. Louis

August 1942

m s

" I O W A ’S FRIENDLY

w m v
MEMBER


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FEDERAL

DEPOSIT

BANK"

☆
INSURANCE

CORPORATION

N o rth w e ster n B anker
August 19b2

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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

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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


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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

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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

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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

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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 .

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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

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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
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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

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