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OUR 50"' YEAR G E O R G E A. B E IT O P re s id e n t, N o rth e rn S ta te B a n k , G onviek, M in n eso ta P re s id e n t, M in n e so ta B a n k e rs A sso c ia tio n BUY UNITED IT ATX• .WAR BONDS AND STAMPS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A Country Bank Is a Public Utility Page 15 -^ r 0^ ^ ^ *£ < ^ K ^. *£^ ^ ^ <: ^ << < ^ A Great Network Banks of the middle west which use this bank as their correspondent if combined as one bank would form a tremen dous institution. The scope of their business would comprise a vast financial empire. Merchants National Bank is proud of these hundreds of loyal accounts. Their wish is our command and our experi ence is at their constant disposal. ACEDAR RAPIDS BANK f-- ---CEDAR ^ ^ ^ -*zr <<•*<^ ~*C *4 -*< ■*< R A P ID S SERVICING ALL IOWA THE MERCHANTS NATIONAL BANK OFFICERS J a m e s E . H a m i l t o n , C h a ir m a n S . E . C o q u il l e t t e , P re s id e n t H . N . B o y s o n , V ice P r e s i d e n t R o y C. F o l s o m , V ice P r e s i d e n t M a r k J . M y e r s , V . P r e s . & C a s h ie r G e o r g e F . M i l l e r , V . P r e s . & T r . O fficer M a r v i n R. S e l d e n , V ice P r e s id e n t F r e d W . S m i t h , V ice P r e s i d e n t J o h n T . H a m i l t o n I I , V ice P r e s i d e n t R. W . M a n a t t , A s s t. C a s h ie r L. W . B r o u i . i k , A s s t. C a s h ie r P e t e r B a i l e y , A s s t. C a s h ie r R. D. B r o w n , A s s t. C a s h ie r 0 . A. K e a r n e y , A s s t. C a s h ie r S t a n l e y J . M o h r b a c h e r , A s s t. C a s h ie r E . B. Z b a n e k , B u ild in g M a n a g e r Cedar R apids Iow a Member Federal Deposit Insurance Corporation N o rth w e ster n B an k er, p u b lish ed m o n th ly by th e D e P u y P u b lis h in g C om pan y, a t 527 S ev en th S t., D es M oines, Io w a . S u b scrip tio n , 35c p er cop y, $3.00 p er year. E n tere d a s S econ d C lass M atter J a n u a r y 1, 1895, a t th e P o s t Office a t D es M oines, Io w a , u n d er A c t o f M arch 3, 1879. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis JL V 1 sJ P &%/ t The cry of "first bale” will resound through countless Southern plantations in a few weeks, as K ing Cotton holds his first court of the season in the country markets. This commodity, so necessary in war and peace, had to reach maturity to become really useful. So it is w ith your War Bonds— the "ripening” process goes on automatically as long as you are w illing to hold them. And the person who cashes them in now not only sees his principal disappear for purchases made under war-time conditions, but loses by far the greater part of what gain he or she would have by holding them. N ext time you think of cashing in your bonds— think of the day when you w ill get your money’s w orth and more. H old them and remember why you bought them. a THE HOME* NEW YORK AUTOMOBILE https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • MARINE 4 THE C H A SE N A T IO N A L B A N K O F THE CITY O F N E W YO RK | S T A T E M E N T OF CONDITION, JU N E 30, 1943 | R E SO U R C E S l ► ► I | E | ! ; ! ; ! ; Cash and D ue from B a n k s ........................................... U . S. G overnm ent O b ligation s, direct and fully g u a r a n t e e d .................................................................... State and M unicipal S e c u r itie s..................................... O ther S e c u r i t i e s .............................................................. Loans, D iscou n ts and B ankers’ A cceptances Accrued Interest R e c e i v a b l e ..................................... M o r t g a g e s .......................................................................... C ustom ers’ A cceptance L i a b i l i t y ............................... Stock o f Federal R eserve B an k ..................................... B anking H o u s e s .............................................................. O ther R eal E s t a t e .............................................................. O ther A s s e t s .................................................................... | | ; ; j ; [ $ ! 8 8 7 ,3 0 8 ,6 8 2 .6 7 | 2 ,9 0 0 ,0 2 6 ,1 6 5 .8 4 1 0 8 ,5 2 3 ,2 4 1 .1 6 1 6 3 ,5 2 0 ,9 3 9 .4 8 1 ,1 5 9 ,7 6 9 ,3 8 0 .6 9 1 2 ,2 8 8 ,9 2 0 .4 8 5 ,1 8 1 ,1 7 1 .1 2 5 ,1 7 9 ,3 0 7 .2 6 7 ,0 5 0 ,0 0 0 .0 0 3 4 ,5 7 1 ,6 3 2 .2 4 3 ,5 5 1 ,8 0 8 .2 6 1 ,2 7 5 ,8 6 8 .2 9 $ 5 ,2 8 8 ,2 4 7 ,1 1 7 .4 9 j $ 2 9 2 ,3 0 0 ,7 9 0 .3 9 < 5 ,1 8 0 ,0 0 0 .0 0 1 2 ,0 8 0 ,4 8 1 .8 0 1 3 ,5 7 6 ,1 4 4 .9 7 4 ,9 5 2 ,6 2 7 ,3 4 3 .8 6 $ 5 ,7 7 4 ,3 2 7 .6 6 J 1 6 7 ,6 2 2 .9 1 6 ,5 4 0 ,4 0 5 .9 0 $ 5 ,2 8 8 ,2 4 7 ,1 1 7 .4 9 j L IA B IL IT IE S Capital Funds: Capital Stock . . . . . $ 1 1 1 ,0 0 0 ,0 0 0 .0 0 S u r p l u s ..................................... 1 2 4 ,0 0 0 ,0 0 0 .0 0 U ndivided Profits . . . . 5 7 ,3 0 0 ,7 9 0 .3 9 D ividend Payable August 1, 1945 ......................... Reserve for C o n t in g e n c ie s ........................................... Reserve for T axes, Interest, etc.................................... D e p o s it s ................................................................................ A cceptances O utstanding . . $ 8,32 5,42 3.24 Less A m ount in P ortfolio . 2 ,5 5 1 ,0 9 5 .5 8 Liability as Endorser on A cceptances and Foreign B i l l s ........................................................ O ther L i a b i l i t i e s .............................................................. [ > United States Government and other securities carried at $1,32-0,747,440.00 are pledged to secure U. S. Government War Loan Deposits of $1,120,367,649.78 and other public funds and trust deposits, and for other purposes as required or permitted by law. > Member Federal Deposit Insurance Corporation [ N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A ugust 1945 j ; ) O UR 5 0 th YEAR 5 Give yo u r B an k 's cheeks the ad van tage of HAMMERMILL UNIFORMITY... Q Q fa'. Because Hammermill Safety is the uniform check paper ) it i t IT no "feathering" or re- easy to write on . . . no scratching writing. Its protective surface shows any attempt at alteration. Its colors are the same run after run. quality lends prestige Its unvarying and dignity to your customers’ checks Hammermill Safety is the uniform check paper because it is made complete in one mill ip^g§ where Hammermill produces its own pulp s makes the pulp into paper, sensitizes the paper to produce Hammermill Safety with every step under one control. If you w ou ld like a cop y of the Hammermill Safety Sam ple Book, write on your bank letterhead to Safety Paper D ivision, Hammermill Paper Com pany, 1513 East Lake Road, Erie, Pa. No obligation. No salesm an w ill call. OU R 5 0 th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern B anker August 19^5 6 green hand at 9:00 useful employee at 11:30 UNUSUAL? Not at all. Many inexperienced operators have learned to use the National Ledger Posting Machine in less than an hour. An entirely new principle makes this possible. Key board operation, insertion of forms and method of print ing are entirely different. Training is simplified and fatigue greatly reduced. There is positive protection against error. The machine makes accuracy com pulsory. No matter what type of ledger posting operation you use . . . dual plan, unit carbon or unit photographic . . . this machine will handle all three. All records are always neatly posted due to positive alignment of figures both vertically and horizontally. T h e resu lt is a sta tem en t goin g to th e d ep ositor w hich is a d efinite cred it to th e b an k from th e sta n d p o in t of ap pearan ce. T h ere are sa v in g s too, in operation, n ot o n ly b eca u se of th e sim p licity o f th e m ach ine, but, for ex a m p le, through th e elim in a tio n o f ca rb on ized journal rolls. THERE'S A N A TIO N A L FOR EV ER Y BA N K AND EV ER Y B A N K IN G JO B Large bank . . . middle size bank. . . small bank . . . there’s a National system to meet every need. Why not take up your problems with the National representative? He will be glad to make any suggestions to help you speed up service to cus tomers and gain maximum efficiency. There is no obligation. National Accounting - Bookkeeping machines are available through priorities. Q /fStU m al CASH REGISTERS • ADDING MACHINES ACCOUNTING-BOOKKEEPING MACHINES T HE N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1945 NATIONAL CASH REGISTER CO. O UR 5 0 th YEAR 7 Question: W hat do you think will happen to bank de posits when we have beat en the Jap s? M. T. T hom pson, president, P ioneer S tate B ank, T ow ner, N o rth D akota: “I th in k b an k deposits w ill go dow n afte r th e Ja p s are b eaten if farm and livestock prices go dow n and also if w e a th e r conditions are poor for ra is ing crops.” George L iggett, p resident, F irs t N a tion al B ank, Utica, N ebraska: “We have discussed th is question m any tim es. Our deposits are about th re e and one half tim es w h a t th e y w ere in 1941. F o r co u n try b an k s we cannot see a n y th in g b u t a loss of about half th e ir deposits as farm prices decline and th e custom ers use th e ir balances for m any item s th e y have been w a it ing to buy. W e th in k th e decline w ill be g rad u al.” R. M. M esserschm idt, p r e s i d e n t , F irs t N ational Bank, W est Des Moines, Iowa: “I th in k th a t final v icto ry w ill not b rin g an y sh arp drop in deposits b u t th ey w ill rem ain fairly stable th ro u g h o u t th e n atio n for som e little tim e. T h ere m ay be som e declines in som e b an k s in som e localities b u t I be lieve th ese w ill be offset w ith increases in others. D eposit w ith d raw als for im pro v em en ts to factories and hom es and purch ases of m ach in ery and house hold conveniences still keep th e m oney in circu latio n and w ith d raw als a t one point cause in creases in o thers. De posit w ith d raw als for debt red u ctio n cause a direct redu ctio n in deposits and I do not an ticip ate an y u n u su al w ith d raw al for th a t purpose because b o rro w ers in general are not carry in g th e b u rd en of debt into th e postw ar period th a t th e y did in W orld W ar I. Lack of confidence could cause a sh arp decline but I do not believe we need fear th a t. Our g o v ern m en t is not apt to p erm it a tig h te n in g of th e m oney (T u rn to page 36, please) OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IN THIS AUGUST, 1945, ISSUE Editorials Across the Desk from the Publisher......................................... ............................ 10 Feature Articles W h a t Do Y ou T h in k ? ................................................................................................................. D e a r E d i t o r .............. 7 9 Frontisp'age ................................................... 12 “ S o m eo n e S h o u ld S in g O u r P r a i s e s ” ..................................................... R . P . B la ke 14 A C o u n tr y B a n k e r Is a P u b lic U t i l i t y ................................................... ........ T. L . C ox 15 T h e r e Is N o S u b s ti t u te f o r a G ood C u s to m e r ............................ D o ro th y R a g a n 16 S a v in g th e S oil S a v e s M o n e y ................ ..............................................L e s te r E . C lapp 17 N e w s a n d V ie w s o f th e B a n k in g W o r ld ...................................... C liffo rd D e P u y 18 19 A b o u t B a n k e r s Y o u K n o w — J a m e s R. L e a v e ll.......................... ............................... U n p a id T a x e s — L e g a l Q u e s tio n s a n d A n s w e r s ............ ............................................. 20 22 T h e “ B ig T h r e e ” o f th e D ro v e rs B a n k s ........................................................................ H o w C o u n tr y B a n k s A r e A d v e r t is in g .................................................................................. 24 Bonds and investments C o r p o r a te B o n d P r ic e s A r e B e h in d th e P r o c e s s io n ........... R a y m o n d T rig g e r N o r t h w e s t e r n N a tio n a l C h a n g e s ..................................................................... 33 34 Insurance H o w L o w I n t e r e s t R a te s W ill A ffe c t I n s u r a n c e ....................... W . F . P oorm an 39 State Banking News M in n e s o ta N e w s ....................................................................................... T w in C ity N e w s ................................................ S o u th D a k o ta N e w s .................. ................... ............... ............................... ............................... S io u x F a l ls N e w s .................................................................................................................. N o r th D a k o ta N e w s ................................................ F a r g o N e w s ................... N e b r a s k a N e w s ............................................................................................................. O m a h a C le a r in g s ............................................................................................................... L in c o ln L o c a ls ....................................................................................................................... Io w a N e w s ............................................................................ ............................ ............................ D es M o in e s N e w s ................................................ B e a u t i f u l C o u n tr y H o m e .......................................................................................................... O p e n s N e w P e r s o n a l L o a n D e p a r t m e n t ................. 43 45 49 49 52 52 55 57 59 61 66 67 68 The Directors' Room A F e w S h o r t S to r ie s to M a k e Y ou L a u g h ........................................................................ 70 N O R T H W E S T E R N B A N K E R , 527 Seventh St., Des Moines 9, Iowa, Telephone 4 -8 1 6 3 C L IF F O R D D E P U Y , Publisher R A LP H W. M O O R H EA D Associate Publisher E L IZ A B E T H C O L E Advertising Assistant H EN RY H. H A Y N ES Editor M A R G U E R IT E B R O W N Office Supervisor N E W Y O R K O F F IC E Frank P. Syms, V ic e President, 505 Fifth A v e ., Suite 1806 RUTH K IL L E N Associate Editor S A D IE E. W A Y Circulation Department Telephone MUrray H ill 2-0326 N orthw estern Banker A ugust 1945 8 Regulation Q U n d e r R e g u la tio n Q o f th e F e d e ra l R e s e rv e B o a rd , m e m b e r b a n k s a re p r o h ib ite d fro m a b s o r b in g e x c h a n g e c h a rg e s, e x c e p t in triv ia l a m o u n ts . I t is h e ld th a t such a b s o r p tio n is a n in d ir e c t p a y m e n t o f in te re s t o n b alan ces. S in ce m e m b e r b a n k s a re th e re f o r e r e q u ire d to c h a rg e th e ir c u s to m e rs w ith a n y e x c h a n g e in c u rre d in th e c o l le c tio n o f n o n - p a r b u sin ess, it is to th e in te re s t o f b o th b a n k a n d d e p o s ito r th a t th e se ite m s b e collected through the most economical channel. T h e P h ila d e lp h ia N a tio n a l B a n k provides such facilities. T h r o u g h o u t th e y ears w e h a v e sp e c ia liz e d in th e c o lle c tio n o f cash a n d c o lle c tio n ite m s, a n d h a v e b u ilt u p facilities s e c o n d to n o n e . W e are th u s in a p o s itio n to o ffer a c o lle c tio n serv ice w ith m in im u m c h a rg e s. W e h a v e p r e p a r e d a p a m p h le t w h ic h w e b e lie v e w ill be o f in te re s t to y o u , a n d w e in v ite y o u to w rite fo r a c o p y . THE PH IL A D EL PH IA NATIONAL BANK / fia r / r y r.) / dn (& j ’y s f / t r z r / / J dV '-'./ PH ILA D ELPH IA M E M B E R orthw estern B anker Digitized forNFRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1945 F E D E R A L D E P O S I T i, I N S U R A N C E PA. C O R P O R A T I O N O U R 5 0 th YEAR 9 able soon fo r those who m ig h t w a n t to see it.” W arren G a r st , Cashier, Home Sta te B ank, J effer son, Iowa. "Gives Us the Information" T h e fo llo w in g le tte r s w e re re c e iv e d fro m N o rth w e ste r n B a n k e r rea d ers. Y o u r v ie w s a n d o p in io n s on a n y su b je c t w ill b e g la d ly p u b lis h e d in th is co lu m n . "Much Interest in This Idea" " M il l a r d M. M a rtin , cashier of th e Secu r ity S ta te B ank, A llen, N e b rask a, suggests in th e first B ear E ditor le tte r in th e J u ly N o r th w estern B a n k er th a t th e sm aller b an k s cannot g e t out an d a ro u n d to call on th e ir custom ers. ‘ ‘ I n w artim e, b o th sm aller an d b ig g er co u n try b an k s a re finding th is h a rd to do. B u t w artim es w ill n o t la s t forever, a n d in norm al tim es b o th la rg e r an d sm aller coun tr y b an k s will find i t easier to c a rry on some k in d o f a n outside p ro g ram , even if th ey do n o t have a fu ll tim e m an on th is w ork. ' ‘ F o r exam ple, assum ing th a t 1940 was reaso n ab ly norm al, th e F ir s t N a tio n a l B ank of M iller, S outh D ak o ta, h ad $885,000 in deposits in a tow n of 1,460. M r. C ahalan of th a t b a n k has th e first a rtic le in the J u ly N o rth w este rn B a n k er and in th a t a rtic le he says, 'O u r officers g et out into th e c o u n try an d know c attle , ran ch ers and th e ra n ch e rs set-up in tim ate ly . ’ H e seems to stress th is as a n im p o rta n t p a rt of th e ir work. ' ‘ The nex t a rtic le in the sam e issue is fro m th e S ta te B a n k of M orristow n, M or ristow n, M innesota. T his b a n k h a d $180,000 in deposits in 1940 in a tow n of 667. M r. P y e o f th a t b an k s tells th a t th ey m ake calls on th e ir custom ers on th e fa rm s, th a t th ey w orked in p ro m o tin g a colt show and did o th er th in g s, in clu d in g ta k in g p ictu res o f th e ir custom ers when th ey m ade calls on them . M r. P y e re g a rd s th is p ictu re ta k in g on th e fa rm as an un u su al good will b uilder. ' ' These are th e two m ain a rticle s in the J u ly num ber. T hey b o th in d ic a te th a t sm all b an k s in sm all tow ns can an d do g e t out an d a ro u n d in norm al tim es— an d find it h e lp fu l a n d p rofitable to do it, too. ' ' Some b an k s have re g u la r m en fo r o u t side calls, and, of course, n o t a ll can do th a t. B u t m ost an y b a n k er w ill have some tim e now an d then w hen he can drive out into th e c o u n try and call on his custom ers. So f a r as we know, no b a n k w hich has done th is fo r a reasonable tim e has fe lt th a t th ey w a n ted to give it up. Some have dro p p ed it while w a rtim e conditions forced a m anpow er sh o rta g e — b u t p lan on s ta rtin g a g a in as soon as possible. I n fa c t, th ere seems to b e so m uch in te re s t in th is idea th a t our Io w a B a n k ers ’ a g ric u ltu ra l com m itte e is now g a th e rin g in fo rm a tio n from banks in several sta te s w here th is has been done an d will have th a t in fo rm a tio n availO UR 5 0 th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis " W e en jo y th e N o rth w ester n B a nk er im m ensely an d are g lad th a t we have it in th e field, g iving us all th e in fo rm a tio n as to b anks a n d th e ir m ethods an d expe riences. ’ ’ L eo E . R y a n , Cashier, P latte Valley S ta te Bank, Kearney, Nebraska, ' ‘ I find, however, th a t while a. few nam es a p p e a rin g in th a t section a re fa m ilia r, m ost o f those m entioned are stra n g e rs to me— th u s does the flight of tim e a lte r our re la tionships. I have now been aw ay fro m N e b ra sk a since 1923 and find m yself out of touch w ith m any of those I fo rm erly knew. " T h e w rite r is a n old-tim e N eb rask a B anker, fo r m any y e ars w ith the old F ir s t N a tio n a l o f H a stin g s, an d consequently in tere ste d in m a tte rs an d th in g s in th e m id west. ’ ’ W. A. T aylor ,, 501 W est Santa Clara Avenue, Santa A na, California. "Read With Great Interest" "Very Helpful" “ I n a recen t issue of the N o r th w estern B a n k er you discuss 'W h a t th e C ountry B a n k er W a n ts fro m H is C ity C orrespond ent. ’ I fo u n d th is a rtic le h e lp fu l a n d en joyed i t very m uch. ' ‘ I note w ith in te re s t th a t you have m ade previous surveys on correspondent b a n k re latio n sh ip . W ould it be possible to ob tain a re p rin t o f these a rticle s? T h an k in g you fo r th is service, I wish to re ite ra te how h e lp fu l I fo u n d your la s t a rtic le on th is subject. ’ ’ A. T. W h eel er , J r ., A ssist ant Vice President, Union N ational Bank, Kansas City, Missouri. "Most Interesting" " Y o u r survey of 'W h a t the C ountry B an k er W an ts from H is C ity C o rre sp o n d en t’ is m ost in te re s tin g , and I a p p rec ia te very m uch receiving th is a rtic le fro m th e N orth w e st er n B a n k e r . ” H u n ting to n M. T u r n e r , Vice President, Chemical B ank <$• Trust Company, New Y ork City, N ew York. "Glad to See Billy Hughes' Picture" " I a p p rec ia te your sending me th e J u n e num ber of the N o r th w ester n B a n k er c o n ta in in g the le tte r of J a y D. R ising. ‘ ‘ I t w as a pleasure to me to have the oldtim e an d well know n countenance of 'B i l l y ’ H ughes g re et me on th e page of y our N e b ra sk a section, w ith whom I served back in 1920-21 as chairm an of th e executive coun cil of th e N e b rask a B an k ers A ssociation and from whom I b u t recen tly had a fine letter. ' ' T h an k you fo r the re p rin t N o rth w ester n B ank er , e n title d C ountry B an k er W an ts fro m C orrespondent, ’ w hich I have very g re a t in te r e s t.” E van R and o lph , fro m th e 'W h a t th e H is C ity re a d w ith President, The Philadelphia National Bank, Philadelphia, Penn sylvania. "Retaining Article for Study" " I w as so very m uch in te re ste d in the a rticle e n title d ' W h at th e C ountry B a n k er W an ts from H is C ity C o rre sp o n d en t’ in your J u n e N o rth w ester n B a n k er . " W h ile we, of course, cannot in co rp o ra te in our correspondent b a n k service all of the suggestions which w ere offered in response to your survey, nevertheless th e replies did suggest fields w hich u n d o u b ted ly could be developed fu rth e r. W e a re re ta in in g your a rtic le fo r a d d itio n a l s tu d y .” D onald M cD ougal, A ssist ant Cashier, N orthern Trust Company, Chicago, Illinois. "Article Is 'On the Beam' " " I believe we should be ju s t as quick to give a fellow a p a t on th e back fo r w h at we like as a 'b u s t in th e n o s e ’ fo r w hat we d o n ’t like. ' ‘ So-o-o, I w a n t to com plim ent you on th e p u b licatio n of th e p ap er, ' A re B an k ers Becom ing L oan L a z y ? ’, by A rth u r G. Ca halan, p re sid en t o f the F ir s t N a tio n a l B ank of M iller, South D ak o ta, in th e J u ly N orth w e st er n B a n k er , T his b a n k er a n d his b a n k are re ally ' on th e beam ’ as th e ir loan volume reveals. A nd his a rtic le discloses th a t he is not overlooking an y other angles in supplying com plete b an k in g service to his com m unity. " M o s t of us c ountry b an k ers can sta n d a lot o f encouragem ent along th is line. I t w ould be h e lp fu l i f you w ould le t us h e a r fro m other b an k ers who a re m a in ta in in g good loan volum es in these tim es when so m any b a n k sta te m en ts disclose loan to ta ls a t an all-tim e low. ’ ’ E . W . R o ssiter , President, B ank o f P artington, P a r t ington, Nebraska. "On the Right Track" I t ’s a d iffe re n t w a r, g r a n ’p a p p y ! C ivil w a r is over! T he ' ' The re su lts of your C orrespondent B an k Survey in the N o rth w ester n B a n k er a re very in te re s tin g indeed, a n d re assu rin g as well. I feel we in th e la rg e r cities a re on (T u rn to page 35, please) N orthw estern B anker A ugust 19^5 10 Across the Desk (1) That the dollar is the only stable currency and before long all American dollars subscribed to the fund will be a scarcity. (2) That the U. S. will be forced into the moral obligation of lending more and more money abroad. ty te d M . V in ïa n ; They say th a t you are a very quiet, calm, deliberate individual and th a t you will m ake us a g reat S ecretary of the T reasury, b u t you have certain ly been m oving like a stream lined rocket recently, as in the short space of a few m onths you have been (1) Economic S tabilization D irec tor, (2) F ederal Loan A dm inistrator, (3) D irector of W ar M obilization and Reconversion, and now S ecretary of the T reasury. W ith 22 years in governm ent service, your back ground should enable you to do a good job as S ecretary of the T reasury. Y our specialization in ta x legislation will also be trem endously help ful to you. W h atever the problem s of your office m ay be, and th ere will be m any, you a t least have the good wishes and confidence of the bankers of America. 3>ea>i H aiesU fy . rW a<f,ne>i: As chairm an of the Senate B anking and C ur rency Committee, you w ere no doubt pleased w ith the approval of the B retto n W oods plan for an in tern atio n al bank and a w orld currency stabilization fund. The m ain opposition to this program in the Senate came from S enator R obert A. T aft of Ohio, who fought the m easure both in the Senate Committee hearings and in the debate on the floor. His m ain objections were th e s e : N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A ugust 19^5 The U nited S tates is the first to accept the plan w hich calls fo r: (1) A n $8,800,000,000 m onetary fu n d designed to stabilize postw ar exchange ra te s and end a prim e b a rrie r to foreign tra d e —fluctuating cu r rencies th a t often have m ade in tern a tio n al busi ness a gamble. (2) A $9,100,000,000 in tern atio n al bank fo r re construction and developm ent to guaran tee and m ake loans intended to restore w a rto rn countries and perm it the economic grow th of in d u strially re ta rd e d lands. This c o u n try ’s investm ent in the fu n d w ill be $2,750,000,000 and in the bank $3,175,000,000. O ther nations will contribute sm aller am ounts, according to quotas th a t were based on such things as prew ar foreign tra d e volume and n a tional w ealth. Before the B retto n W oods m onetary fu n d and in tern atio n al ban k can begin to operate, nations having 65 per cent of the quotas to the fu n d and the bank m ust accept the agreem ents and deposit th eir quotas and subscriptions. I t will probably tak e from a y ear to a year and a h alf before the plan begins to function. AY. R andolph Burgess, president of the A m eri can B ankers Association, and who was originally opposed to the stabilization fund, now believes th a t it is desirable to go ahead w ith the fu n d w orking in conjunction w ith the in tern atio n al bank. He sums up the fu tu re of the B retto n AVoods plan when he says: ‘'Not since the pas sage of the Federal Reserve Act has a more im portant piece of financial legislation come before the Congress than the Bretton Woods proposal. It involves a six billion dollar commitment by the United States. But, more important, it is both a symbol of international economic cooperation, and a powerful instrument for good or ill in the postwar economic world, depending on the wis dom with which its facilities are used.’' The vote in the Senate was 61 to 16 for the passage of the Bill, including 19 R epublicans who voted for the Bill and 14 R epublicans who voted against it. A few of the R epublicans who voted for the B retto n AVoods plan included S enator Ball of M in n eso ta; S enator Donnell of M isso u ri; Senator O U R 5 0 th YEAR 11 Fromthe Publisher H ickenlooper of Io w a; S enator V andenberg of M ichigan; and S enator Y oung of N orth D akota. Am ong the R epublicans voting against the B re t ton W oods bill were S enator B rooks of Illinois, S enator Bushfield of South D a k o ta ; S enator B u t ler of N eb rask a; S enator C apper of K ansas; Sen ato r G urney of South D a k o ta ; S enator L anger of N orth D a k o ta; and S enator W herry of N ebraska. L e t ’s hope, S enator W agner, th a t the new leg islation will do everything th a t its proponents believe it will and prevent the U nited S tates from becoming the provider of funds for an in te rn a tional W .P.A., w hich m any of the opponents of the Bill fe ar m ight happen. 3beasi 3 h o sta ld ft. ftichle>i<j,: C ertainly one of the g reatest postw ar problem s w hich A m erican business m ust face is th a t of the relatio n of capital and lab o r; em ployer and labor, or w h atever you m ay wish to call the relatio n ship betw een the unions on the one hand and m an u factu rers and owners of in d u stry on the other. No sound economy can long exist when these two groups are in constant turm oil and seem ingly p erp etu ally antagonistic to each other. R ecently you em phasized th a t the leaders of labor who continually dem and more pay for less production and shorter hours are leading th eir follow ers down hill. You also emphasize th a t if labor is to have h igher w ages and pay lower prices for the goods it purchases, this can only be done, “ th ro u g h in creasing the p ro d u ctiv ity per m an hour of la b o r.” I f this is not accom plished then the n et result is inflation and rising prices. You also said that, ‘‘The effort to delude the masses of the people into thinking’ that when the war is over they are going to live better and work less, is a confidence game of majestic size.” I t seems strange to us, Mr. R ichberg, th a t as sm art as the leaders of labor are supposed to be, th a t th ey would do any th in g to im pede recon version or to hinder m an u factu rers or in d u stria l ists from gettin g th e ir p lan ts reconverted from w ar to peacetim e production, yet R. J. Thomas, p resid en t of the U nited Autom obile W orkers Union of the CIO, m ade this statem ent, “ That victory in Japan would he the signal to start authorizing strikes. There will be a lot of them; we will authorize strikes in every plant where a present grievance continues to exist. “ The major cause of postwar strikes would be OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the fact that employers in the automobile industry simply haven’t accepted the union.” I f this is the attitu d e of the U nited Autom obile AVorkers, one of the biggest unions in the U nited States, then the postw ar p icture does not look like it would be sta rtin g off for sm ooth sailing. Yet you will notice th a t Mr. Thomas does not com plain of w orking conditions, of hours of w ork nor of pay, but sim ply th a t the autom obile in d u stry has not “ accepted the u n io n .” W h at the re tu rn in g service men m ay have to say about strik ers can be p artia lly surm ised from a recent survey m ade by a W ashington organiza tion on the general subject, “ W hat the service men are th in k in g ,” in which is this significant p a ra g ra p h : “ They curse out strikes and strikers. They say they are not anti-labor or anti-union, but they don’t like strikes at home when they are fighting abroad. The peeves on this particular (Subject are the most numerous, the most pro foundly profane.” S ecretary of L abor Lewis B. Schwellenbach summed up the whole labor situation succinctly by em phasizing th a t la b o r’s legislative gains of the last 10 years m ay be lost if in d u strial strife continues durin g the reconversion period and “ wage earners of the United States should lose their most effective weapon—the public opinion in the United States.” Thus, Mr. R ichberg, it seems th a t other prom i n en t authorities also agree w ith your view point th a t L abor has much to gain if it produces more goods per m an hour of labor, and if strikes are reduced, and if it continues to hold the good will of the public. The question is, will it be wise enough to do so? 3b e a t (3le fittestt ft. A ttle e ,: As the new Prim e M inister of E ngland, you say, “ We are embarked on a great adventure of democracy, freedom and social justice” . As A m ericans we agree w ith those objectives but we d o n ’t th in k they need to be achieved by socialism or governm ent ow nership of every basic industry. Therefore, we cannot see the wisdom of n a tionalizing every in d u stry in the U nited K ing dom and by m aking the B ank of E nglan d public p ro p erty as well as u ltim ately nationalizing all the land. N orthw estern Banker August 19^5 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 13 m m MM OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker August 1945 14 “A t regular intervals we m eet in conventions, slap each other on the hack, and tell US w h at fine fellow s WE are. W e pay speakers from other professions to tell us the same thing. W hy m ust we continue to pou n d hom e to O U RSE LVE S the things WE know ? W ould it strain the bonds of m odesty for us, in d ivid u a lly and collectively, to try for som e third-person p u b lic ity ? It is tim e som eone was singing our praises other than ourselves to each other." "Someone Should AM a co u n try b anker. T here are several th o u san d s of us spread over , th ese U nited S tates. T here are also o th e r thousan d s of b an k ers and b an k em ployes in our la rg e r tow ns and cities. Collectively, we n u m b er several hu n d red s of thousands, but, view ing our position on a percentage basis we find th a t we com prise only a fraction of one p er cent of our to tal population. A t re g u la r in terv als we m eet in con ventions arran g ed th ro u g h our b a n k ers associations. M uch d o w n rig h t h ard w ork is p erform ed by th e officers of those associations to m ake th em suc cessful from our ow n po in t of view. E xcellent in stru c tiv e p rogram s are a r rang ed by com petent men. Top grade speakers are em ployed to p re se n t facts and in fo rm atio n h ighly p e rtin e n t to our chosen profession, all of w hich is good. In addition to this, those periodic conventions give us th e o p p o rtu n ity to slap each o th er on th e back and tell US w h a t fine fellow s we are.. W e pay public sp eakers from o th er professions to come and tell us th e sam e thing. W e like it, and fu rth erm o re, we know th a t it is tru e Have Done a Good Job W e know we have done and are do ing a su p erlativ e job in connection w ith th e w ar effort. W e know th a t no o th er group so sm all as ours could have handled th e job of financing th e w ar w ith such d ispatch and efficiency. We know also th a t th e ratio n in g p ro gram m ig h t have bogged dow n in a m aze of red tape w ith o u t th e m achin ery we have provided to facilitate its sm ooth operation. W e know th a t we are th e custodians of a v a st reserv o ir of m oney; th a t we w ill use all of our com bined in g en u ity and ab ility to safe g uard th a t m oney for those w ho en tru ste d its keeping to us; th a t it can and w ill be used to build and expand business, in d u stry and agricu ltu re. W e know th a t as individuals we are v itally concerned w ith th e progress of our localities, and collectively w ith th e N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A ugust 1945 Sing O u r Praises” By R. P. Blake President Farmers Savings Bank Mitchellville, Iowa We n ev er seem to ex h aust w ays and m eans to tell ourselves how good w e are. A continuous flood of self praise reaches us each w eek directed from one or m ore of our ow n associations. We n ever tire of w ritin g about o u r selves in our ow n b an k ers publications to w hich we ourselves subscribe and read religiously. E ven occasionally some governm ental agency directs some flattery our way, usually ju st preceding a req u est for some service or other. B ut w hy m u st w e continue to pound hom e to ourselves the th in g s W E know? Is th ere th e th o u g h t in our own m inds th a t we still have a few ra ts in th e pan try ? I believe not. Our Own Testimony R. P. B L A K E “ T h e p u b lic is n o t b e in g in fo rm e d ” p ro sp erity of th e en tire nations. These th in g s W E know. B ut how about the o th er 99 plus per cent of our people? Do they know these things and have we resto red o u r selves to th a t place of high resp ect ability we enjoyed not so long ago? The Answers The answ ers to these questions are brief. T he public is inadequately in form ed as to w h at we are doing and can do. C ontinued creation and opera tion of governm ental lending agencies and th e ir patronage by borrow ers in dicates th a t we are n ot entirely tru s t w o rth y as regards our business of loan ing; and curren cy hoarding denotes a continued lack of confidence of de positors. W e use every available ad vertising m edium to convince the o th er 99 per cent of the people th a t we ru n a re spectable business, th a t ours is a p e r fectly safe place to leave m oney and th a t we have it to loan. Our ads are good. W e pay m illions each y ear to keep them th a t way. T hey are as con vincing as th e b est advertisin g brain s of th e co u n try can m ake them , b u t th ey still have our ow n individual nam es signed at th e bottom . Our case is being presen ted to th e A m erican Public solely on our ow n testim ony. We have experienced a fair degree of success in our endeavors b u t people do continue to hide m oney u n d er th e m attress and th ey still do borrow a five or ten from o thers th a n ourselves. We continue to dw ell w ith a few metatarsels in our closet because no one b u t ourselves, th ro u g h paid ad v ertise m ents, has told the general public th a t th e en tire skeleton has been rem oved perm anently. Is th ere any reason w hy our bu si ness w ith th e p rin te rs of papers and m agazines should all be done w ith the ad v ertisin g m anagers? Can none of it be tran sacted w ith th e editorial w rit ers? Is th ere n o thing in all of the ram ifications of our business to inspire (T u rn to page 41, please) OUR 50th YEAR 15 A Country Bank Is A Public U tility As Such, It Is Only Worth to Its Community the Value of the Service It Can and Does Render COUNTRY b a n k e r,” says T. L. Cox, cashier of th e B ank of B lountsville, in th e little tow n of B lountsville, A labam a, “is a public u tility. And, fu rth e r a public u tility of any k in d is only w o rth to a com m u n ity th e value of th e service it can and does re n d e r.” In 1935 Mr. Cox accepted th e position of cashier of a sm all b an k w ith re sources of app ro x im ately $47,000 and 300 custom ers. Today, th e B ank of B lountsville has resources of over $800,000 and 3,000 custom ers. T he sto ry is not one of sudden “getrich-quick” com m unities, or of an y sud den influx of w ealth. The p o ten tiality w as th e re all th e tim e, and th e re su lt w as achieved by e a rn e st application of Mr. Cox’s guiding them e, th a t a b ank “ Serves,” com m ensurate w ith sound business principles. He contends th a t th e “service” to be re n d ered by a b an k is as broad as its cu sto m ers’ needs; th e lending of m oney to th e custom er w hen he needs it is no m ore of a b an k service th a n is th e advices as to how to p rep are his in come ta x b lanks—how to in v est his su rp lu s earn in g s—how to purchase b e tte r stock—how to im prove breed s— how to conserve soil—how to preserv e su rp lu s prod u cts—how to grow m ore crops on less acres w ith less effort—in short, how to get th e m ost out of w hat he has. A W ith these ideas firm ly im bedded in th e policy of th e b an k in 1935, Mr. Cox took th e presid en t of the b an k and m ade several trip s over its territo ry , v isitin g not only form er custom ers, b u t others. T hey discussed w ith these m en th e ideas set out above, pointing out w ays and m eans in w hich th e bank could be of definite and helpful use in each instance. T he re su lt w as th a t in a sh o rt tim e th e ban k w as forced to em ploy additional help. In stead of tak in g a “vacation” each year, Mr. Cox takes th e vacation tim e in m aking these trips, inspecting the progress th a t has been made, m aking m ore suggestions, in v itin g each person visited to come into th e B ank of B lountsville and discuss his personal problem w ith th e banker, show ing Jim w h at Jo h n had perform ed u n der like or sim ilar conditions, lettin g Jo h n see th a t Jim had im proved some faulty condition by doing th u s and so, and in fact, acting as a clearing house for the com m unal ideas th a t w ere found good by th e tria l and e rro r m ethod of others. Some Examples It w ould be im practical to go into detail of th e services ren d ered by this b ank to th e com m unity and co u n try in w hich it is located, b u t th e follow ing are some exam ples of some of the th ings th a t have been accom plished T. L . C O X F in d s o u t h ow h is bank can be useful« th ro u g h the cooperation of this bank w ith the farm ers. A bout 1940, this b ank had a custom er w ho had never been able to accum ulate v ery much, b u t w as a h ard w o rk er and w illing to try. This farm er w as a one-horse share-cropper and m ainly planted cotton and corn. Financially he w as not g etting ahead. This p arty th e n purchased a sm all 40 acre farm , borrow ing the g reater p a rt of th e p u r chase m oney of the farm from this bank, and also borrow ing m oney for supplying and m aking a crop. He im m ediately changed his w ay of farm ing, purchased good stock and farm ing tools, and changed and increased th e v ariety of w h at he had been grow ing. He began grow ing tru c k crops, includ ing beans, tom atoes and peanuts, b u t still raised some cotton, corn and hay. D uring th ree years, now on th e fourth, this farm er has im proved the produc tion of the farm a t least double, re modeled his buildings, purchased 20 m ore acres of land and has paid for all of his land, buildings and ex tra farm tools. In stead of borrow ing m oney in th e spring, he has a b ank account the year around. A Fruit Farm A s sistin g in th e p u rc h a se o f b e e f c a ttle lik e th e above, ow ned b y J . F . A lld red g e , is one o f th e m a n y se rv ice s th e B a n k o f B lo u n ts v ille m ak e s a v a ila b le to its cu sto m ers OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Some 7 or 8 years ago, this bank fostered in p articu lar one fru it farm , m ainly peaches and apples. To begin w ith, th e ow ner only h ad 40' acres of land. He purchased o ther lands, and began to add to and increase his groves. T his w as financed largely th ro u g h th is bank. A lthough th is fru it farm er has in th e sh o rt tim e lost one crop com pletely on account of severe freeze, he has been able to increase th e acreage of his farm to approxim ate ly 120 acres and has paid all of his in(T u rn to page 42, please) N orthw estern Banker August 19b5 16 There Is No Substitute for A Good Customer But After the W ar There Will Definitely Be Substitutes for Those Employes W ho Persist in Ignoring Even the Most Simple Courtesies E T ’S m ind our com pany m an n ers By Dorothy Ragan w hile th e custom ers are clam oring Teller at our re ta il doors. W e blam e the Se curity -F irst National Bank w ar for th e skim m ing over of little Los Angeles things, for lack, for neglect of service, for ru d en ess—b u t th ese realities flour ished long before ratio n in g . . . th e y ’re only em phasized now. T h ey ’re in sh arp focus th a t w e m ay see th e sim ple facts and set th em rig h t. Say w h at you w ill about caterin g to custom ers, th e fra n k indifference and th e in cred ible business m an n ers w hich have been flung at th e public in th e p ast w ill not be to lerated in a p o stw ar w orld. C ustom ers w ill grow m ore discern ing about w h a t th e y b u y and how it is sold to them . In like m anner, em ployers w ill rebuild th e ir stocks and perso n n el to m eet th e new dem ands. In a w orld th a t is to be b e tte r in every respect, our daily buy in g and selling w ill undou b ted ly reach a h ig h er plane of efficiency and satisfaction to all con cerned. Serious efforts in ad v ertisin g w ill go “h an d in glove” w ith service. The cus tom er—th e reasonable, norm al custom er—w ill be helped back to a rig h tfu l position . . . and not to second place afte r th e stock w ork, th e absurd ities D O R O TH Y RAGAN “ L e t ’s m in d our co m p a n y m a n n e rs” of ru les and regu latio n s and th e p e r sonal feelings of those w ho serve. T here is no su b stitu te for th e cus th e custom er-relations are as finely tom er, b u t th e re w ill definitely be sub w ro u g h t and as superbly fitted as is stitu te s for em ployes w ho do not qu al th e latest fashion he sells today. ify. If every ow ner of shop, store, One em ploye alone m ay be th e cus re sta u ra n t or office w ould in ject som e to m e r’s only link w ith an en tire or th in g of his ow n p ersonal in te re st in ganization . . . consequently he w ill his business into those p ersons w ho have to be th e best. Seldom does an rep re se n t him , he m ight have som e incident of service (good, bad or u n th in g alive and grow ing. Profits w ould u su al as it maj^ be) reach th e one at m ultiply. If ev ery ow ner or personnel th e top—th e individual w hose h e a rt d irecto r or ad v ertisin g m an ag er could and soul fully appreciate th e im plica w itn ess th e atro cities of public re la tions. To those leaders of in teg rity tions w hich exist w ith in th e business and vision w ho have builded a “place he is co n stan tly endeavoring to in in th e su n ” of business should go the crease, he w ould get to th e point of sm allest details. T he custom er—the contact first . . . b u t quickly! And v ery life blood of any business—should before he spends fabulous am ounts on have its pulse tak en regularly! ad v ertisin g he w ould see to it th a t C om plaints m any tim es are brushed L N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A ugust 1945 off . . . for a floor m anager, a hostess or cashier dares n ot speak of situ atio n s too elem entary. He m u st n ot rep eat an y th in g b u t th e m ost im p o rtan t events because em ployes o u tnum ber him and th ey can m ake an u n p leasan t scene th e n ex t tim e . . . if not before. W ho operates th e business, anyw ay? E m ployers or em ployes? R egrettably, it is too often th e latter. Ask any top executive th e real sig nificance of details and little things and he w ill tell you th a t big tra n sa c tions are alw ays th e o utgrow th of lit tle ones w ell done. A custom er only w an ts to buy or be served, to enjoy in h e r ow n peculiar way, th a t for w hich she pays. True, th is is w ar now —b u t postw ar planning cannot overlook a program for th e people them selves, th e people w ho w ill be guided in building a b rig h t new era. H opefully, we shall all look forw ard to train ed personnel once again . . . and to m anagem ent w ith a purpose beyond th a t of volum e quotas and colossal prom otions. P riv ate en te rp rise and th e com petitive sp irit w ill in sp ire business tactics to a new high. L et’s be ready w ith th e h u m an quality, th e in tellig en t approach, a personal in te re st and th o u g h tfu l good m an n ers th a t th e paying public deserves. Illinois Convention The Illinois B ankers A ssociation will hold its 1946 A nnual Convention a t th e Jefferson H otel in St. Louis May 1, 2 and 3. H a rry C. H ausm an, secretary, announces th a t a full program of activities for Illinois b an k ers has been scheduled, contingent, of course, upon ODT restrictio n s on trav el and th e re laxation of th e p resen t ban on the holding of such m eetings. In Practice Groom: H ave you kissed th e bride? B est Man (absently): Oh, yes, h u n dreds of tim es. OUR 50th YEAR 17 T he tw o p ic tu re s a b o v e a re e x c e lle n t illu s tra tio n s of w h a t soil c o n se rv a tio n w ill do w h e n p ro p e rly a p p lie d . E ro sio n h a s p ra c tic a lly d e stro y e d th e corn p la n ts in th e p ic tu re a t th e le ft, an d to n s of s ilt h a v e b e en c a rrie d a w a y or d e p o site d in th e up-and- Saving the dow n corn row s. A t th e r ig h t is th e sam e field, c o n to u re d a n d te rra c e d to p re v e n t ra p id run-off, th e re b y s a v in g th e soil so it w ill c o n tin u e to p ro d u c e fo r its p re s e n t a n d fu tu r e ow ners. Soil Saves MOUSy Ten W ays Bankers Can Help in the Soil Conservation Program E A R E h e a rin g and read in g a lot th ese days about soil and w a te r conservation. E v en so, som e of us m ay still be som ew hat hazy concerning w h a t it involves and w h at pro g ress is being m ade in th e w ork. Also we m ay w onder w hy b an k ers should be in te re ste d and w h a t th ey m ig h t do to help fu rth e r th e w ork. B roadly speaking, co nservation re fers to th e w ise use of all our n a tu ra l reso u rces—forests, stream s and lakes, m in eral deposits, and our soil. More specifically, soil co nservation is a sys tem or m ethod of m an agem ent of our farm s so th a t we get m axim um produc tio n w ith th e m inim um of soil loss. T he vario u s fields of conservation of o u r n a tu ra l resources are v ery closely related. F o r exam ple, a system atic w ildlife p ro g ram is absolutely d epend e n t on a co n stru ctiv e soil co nservation program . W Why Arc Bankers Interested? Because as custodians of m uch of th e m oneys and w ealth of th e com m unity they, m ore th a n any o th er group, re a l ize th a t all w ealth in an ag ricu ltu ral com m unity comes from th e soil. All of th e m oney used to p u rch ase th e n e cessities of life, to build our hom es, schools, churches, roads and to m ain ta in th e business and professional firm s in our tow ns and cities m ust come from th e p roducts grow n from o u r soil. W hen th e soil deteriorates, m oney incom e decreases, farm hom es an d buildings are neglected or even O U R 5 0 th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis By Lester E. C la p p Extension Soil Con servatio nist Iowa S ta te C olle ge and U. S. Department of Agriculture S o il co n se rva tio n is a p la n k in th e a g ric u ltu ra l p la tfo r m o f a ll B a n k ers A sso cia tio n s, a n d h a n k ers as in te r e s te d p a r tie s c o u ld w e ll sta rt fu rth e r a ctio n on th e p r o je c t b y o r g a n izin g sh o rt a ftern o o n to u rs w ith C o u n ty A g e n ts a n d S o il C o n serva tio n ists to b ec o m e fa m ilia r w ith th e p r o b le m in th e ir o w n co u n ty. abandoned. Roads, schools and ch u rch es go to pot. Our sm all tow ns grow sm aller and sm aller and th ere is a heavy m igration of the population from th e com m unity. Since soundness of loans to farm ers, w h eth er on real estate or on chattels as security, depends on repaym ent ability, it m akes a g reat deal of differ ence how th e land is farm ed on w hich th e farm er lives. Good conservation p ractices and sound loans to farm ers go h and in hand. What Is Being Done in Soil Conservation? D uring th e p ast 25 years, as a resu lt of educational w ork on th e p a rt of our schools, colleges, extension service, F ederal agencies, and th e press, farm ers have become increasingly aw are of th e grow ing seriousness of th e ir soil problem s and have tak en steps tow ard correcting them . A n im por ta n t forw ard step w as tak en in 1935 w hen th e Soil C onservation Service w as established to fu rn ish F ederal as sistance on soil conservation problem s. The m ost significant progress has been m ade in Iow a since th e passage of th e soil conservation districts law in 1939, u n d er w hich 59 countyw ide soil conservation districts have already been established. The soil conservation d istrict is a v ery im p o rtan t u n it in the conserva tion setup. It is a legally established corporate organization of land ow ners in w hich an elected body of th re e com m issioners is responsible for develop ing th e program on soil conservation. The com m issioners have the a u th o rity to req u est assistance from any govern m ental agency in carry in g th ro u g h th e ir program . W hile th e m ajor co operating agencies have been th e E x tension Service and th e Soil C onserva tion Service, o th er agencies and in sti tu tio n s w hich have freely cooperated are th e A gricultural E x p erim en t Sta tion, F o rest Service, A g ricultural Ad ju stm en t Agency, F a rm S ecurity Ad m inistration, S tate C onservation Com m ission, Iow a H ighw ay Commission, county boards of supervisors, schools, churches, farm loan com panies, bank(T u rn to page 47, please) N orthw estern Banker August 19^5 18 News and V iews OF THE BANKING W ORLD By Clifford DePuy D E W IT T A. FORW ARD of th e N a tional City B ank of New York has been appointed a senior vice presid en t and Leo N. Shaw , vice p resi dent, has been given th e additional title of d eputy m an ag er O verseas Di vision. Mr. F o rw ard has been w ith th e b ank since 1916 follow ing g rad u atio n from Colgate U niversity and m ost recently as vice p resid en t in charge of w estern Percy W7. H all, secretary of the Iowa B ankers A ssociation from 1910 to 1916, died in Los A ngeles last m onth. Mrs. H all died several y ears ago. Two sons are still living and are in the au to mobile business in Los Angeles. F o r a n u m ber of y ears after he re signed his secretaryship, Mr. H all rep resen ted th e M echanics and M etals N a tional B ank of New Y ork in th e ir cor respondent division. The b ank w as later m erged w ith the Chase N ational Bank. W. H. B renton, p resid en t of The B renton B anks in Iowa, in the com bined Ju n e 30th statem en t of his banks, show s a total capital stru c tu re of $1,396,000 and total deposits of $23,399,000. T otal loans are $4,576,000 and total bonds am ount to a little over $17,000 , 000 . D e W it t A . F orw ard L eo N . S h aw business of th e bank. He w as form erly in charge of th e N ational City branches in Brooklyn, tak in g over th a t te rrito ry w hen P eoples’ T ru st Com pany of B rooklyn w as m erged w ith N ational City. He h as had a broad ban k in g ex perience across th e co u n try and was recen tly elected a m em ber of th e board of tru ste e s of Colgate U niversity. He is also a tru ste e of th e Dime Savings B ank of B rooklyn and directo r and vice p resid en t of th e N ational City Safe Deposit Company. Mr. Shaw cam e to N ational City in 1916 follow ing his g rad u atio n from A m herst. S hortly after, he sp en t some tim e in R ussia and w as vice consul of th e U nited States C onsular staff there. He trav eled back and fo rth betw een Siberia and P etro g rad in connection w ith his g o vernm ent w o rk and re tu rn e d to th e U nited States in 1920 to re-enter th e service of th e N ational City B ank of New York. He is know n th ro u g h o u t th e w orld as a foreign ex change expert. Rod M aclean, ad v ertisin g m anager of C alifornia B ank, Los A ngeles, has a poem titled “H ey Diddle Diddle,” on Ted M alone’s “B etw een th e Book E n d s” page of Good H ousekeeping M agazine for A ugust 1945. N orthw estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A ugust 1945 P eter Van B runt, w ho has been a handsom e com m ander in th e N avy d u rin g th e p ast th ree years, re tu rn e d to th e C entral H anover B ank and T ru st Com pany of New Y ork as vice p resid ent in charge of th e W estern Division. W hile in th e service, C om m ander Van B ru n t w as attach ed to th e E x ecutive Office of th e S ecretary of th e N avy as assistan t chief of th e N egotia tion Division, w hich handles the original negotiation of N avy contracts. Earl H. Sollenberger, for 13 y ears a b ank exam iner in th e 7th F ed eral Re serve D istrict on the staff of th e N a tional B anking D ep artm ent and the F ed eral R eserve B ank of Chicago, has been elected second vice presid en t of th e C entral N ational B ank in Chicago, Roosevelt Road at H alsted Street. Mr. Sollenberger recently resigned as vice presid en t and cashier of the State B ank of Blue Island. He has ta k e n up his duties in C entral N a tio n a l’s b an k ers’ division w hich is headed by L eR oy A. L istu g, executive vice president. Captain Norm an A. M iller in a recent le tte r to th e N o r t h w e s t e r n B a n k e r said: “E veryone in S udetenland is m aking hay and it’s quite a sight to see these old w om en climb these hills to p u t up 25 square yards of hay. There is a definite shortage of m an p ow er w h ich is good excep t for the non-fraternization policy w hich is harder to enforce ev ery day, especially w h en the girls flag our jeeps dow n by w a v in g a b lank et and p ointin g to the forest. “T his little tow n of Schonbach, Czechoslovakia, is fam ous for its h an d m ade violins, g u itars and cellos. Yes terd ay I drove to Selb, B avaria, and visited th e R osenthal C hinaw are “fabrik,” probably m ost popular b rand at home. It w as tru ly beautiful. I bought a set for 300 m ark s ($30.00) w o rth about $150.00 in Des Moines. No duty, taxes, etc. is p re tty good deal. We use old k ra u t m arks and th ey allow us 50c instead of 10c. Can’t con vince these m aster-racers th a t allied m ark s are good.” W alter T. R obinson, form erly vice p resid en t and cashier of th e N ew ton N ational Bank, has been appointed Loan G uarantee Officer of th e V eterans W A L T E R T. R O B IN S O N Io w a L oan G u a ra n tee O fficer A dm inistration for Iowa, w ith offices in Des Moines. Mr. Robinson has long been active in th e banking business in th e Hawkeye State and has held m any im p o rtan t positions in the State A ssociation, and brings to his new w ork a fine back ground of financial experience w hich should be m ost helpful to him in look ing after loans for th e re tu rn e d v et erans. In a le tte r to th e N o r t h w e s t e r n OUR 50th YEAR 19 B a n k e r he said, “I am p re p a rin g in skeleton form and m ak in g it as b rief as possible, th e n ecessary steps and form s to be used in m aking a GI loan.” About Bankers You Know C. AV. B ailey, p resid en t of th e F irs t N ational B ank of C larksville and fo r m er p resid en t of th e T ennessee B an k ers A ssociation, has been p ro m in en tly m entioned for th e office of vice p resi den t of the A m erican B ankers A ssocia tion to succeed F ran k C. R athje, p re si d en t of th e Chicago City B ank and T ru st Com pany w hen, in reg u lar order, Mr. R ath je becom es p resid en t of th e national organization. Mr. Bailey, w ho has been connected w ith th e F irs t N ational B ank, C larks ville, T ennessee, for 41 years, has been presid en t of th a t in stitu tio n since 1920. He has been p ro m in en t not only in th e civic life of his hom e county, b u t in th e public affairs of his state as well. He is a p ast p resid en t of the R otary Club of C larksville and served as dis tric t g o vernor of R otary In tern atio n al. He has served for several y ears as a m em ber of th e A g ricu ltu ral Com m is sion, ABA, and in addition served as ch airm an of th e Com m ission’s sub com m ittee for th e Food-For-Freedom program . He h as also served as T en nessee’s m em ber of th e A m erican B an k ers A ssociation’s executive coun cil and for a n u m b er of y ears has been a m em ber of th e faculty of th e G radu ate School of B anking w h ere he con ducted th e sem in ar on C ountry B ank Credit. Com m erce T ru st Com pany of K ansas City has begun th e operation of a real estate loan d ep artm en t to be u n d e r th e m anag em en t of five new officers of the bank, E. L. AValsh, vice p resident; R ay R. R eece, a ssista n t vice president; W il liam E. G raves, R oy E. Bake and George H. M iddelkam p, assistan t cash iers. The five new officers for m any years have been th e executives of th e K ey stone M ortgage In v e stm e n t Company, an affiliate of th e bank. Mr. W alsh w as th e K eystone president. He and each of his associates has had m ore th a n 25 y ears experience in lending m oney on real estate. JA M E S R E A D E R L E A V E L L Joseph Bam e, ad v ertisin g m anager of th e Com m ercial N ational B ank and T ru st Com pany, 46 W all S treet, New Y ork City, recen tly displayed in his ban k th e larg est exhibition of m odern m erch an t ship m odels ever assem bled O P R E S ID E over th e destinies and th e activities of a financial in stitu tio n w ith resources of over $2,787,000,000 req u ires experience, tra in in g and ex ecutive ability of a ra re degree. These qualities, and m any more, are possessed by Jam es R eader Jjeavell, p resid en t of th e C ontinental Illinois N ational B ank and T ru st Com pany of Chicago. No doubt Mr. Leavell anticipated th e p resen t popular tre n d of M issouri-born governm ental executives, w hen he chose M ontgom ery City, M issouri, as his b irth p lace on October 12, 1884, and w hen reaching voting age he becam e affiliated w ith th e D em ocratic party. One of Jim ’s ou tstan d in g ch aracteristics is his ability to appraise people and w eigh im p artially th e ir stro n g and w eak points. He know s v ery w ell th e different qualities and capacities of th e officers in his b ank and th e kind of a job th ey are best qualified to do. A nother o u tstanding ch aracteristic is his ability to collect ideas and opinions from m any different kinds of people w ith v ary in g backgrounds and experiences and by th e process of evaluating th is in form ation he reaches a conclusion of his ow n th a t is surp risin g ly correct. He has a w ell developed u n d erstan d in g of h um an n a tu re and can forecast individual reactions to events and outside influences w ith u nusual accuracy. Jim n ever gives any evidence of gettin g excited b u t alw ays rem ains calm, and socially he is p articu larly courteous and gracious. He is a great lover of social gam es and plays them all well. He is v ery m uch in terested in th e raising of flowers and is quite an a u th o rity on cam ellias and has developed m any of his own, and possesses one of th e larg est collections of cam ellia p rin ts in th e country. Mr. L eavell attended school at W estm in ster College at F ulton, M issouri, and (T u rn to page 67, please) (T u rn to page 38, please) T he new d e p a rtm e n t w ill m ake all types of real estate loans, including FH A “T itle I I,” and loans u n d e r th e GI bill. OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T N orthw estern Banker A ugust 19^5 A re Unpaid Taxes Alw ays A f lt S t Ü 6U O n Property? U N TER, a stockholder, directo r and vice p resid en t of a N ebraska bank, w as also a m em ber of th e city council of th e city in w hich th e bank w as located. U nder th e law no officer of the city can be in terested di rectly or in d irectly in any co n tract to w hich th e city is a p arty . Could th e b ank accept and re ta in deposits of th e city? H No. In a recent d ecision so holding, the N ebraska Suprem e Court pointed out that each deposit of city fu n d s in a bank is a contract exp ress or im plied b etw een the city and the bank and that such a contract is void w h ile a m em ber of the city council or officer of the city is a stockholder, director or officer of such a bank. Suppose, in th e preceding question, th a t th e re has been a long continued course of dealings w hereby, as to b an k deposits, th e prohib itio n s of th e law had not been recognized and such law had not been ad m in istrativ ely in te r preted to apply to b an k deposits. W ould th e 'deposits, n evertheless, be illegal and void? Yes. A s to th is feature, the N ebraska Suprem e Court said th at the prohibi tion under the law w as clear and there could be no q uestion as to the m eaning of the w ords in the law w h ich operated to ban the deposits. In such circum sta n ces it ruled th at a resort to the con stru ction placed on th e law by ad m inistrative bodies w as n eith er n eces sary nor proper. In th e decision ta k e n as th e prece d en t for th e above, tw o o th er fact fea tu re s are ap p aren t. F irstly , a national ra th e r th a n a state b an k w as involved and, secondly, th e deposits of th e city ’s funds w ere divided am ong various bank s located in th e city on th e basis of a form ula w orked out so as to “sp read ” th e city ’s b an k in g business on an equitable basis b etw een th e banks. Should th ese tw o elem ents, or eith e r of them , change th e ru lin g th a t th e deposit in H u n te r’s bank w as not proper? N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August Í94'5 This and Other Timely Legal Questions Are Answered By the LEGAL DEPARTMENT No. A s a m atter of fact, the N ebras ka Suprem e Court, in its holding, took for granted that the n ation al vs. state bank feature w as not im portant, as the result should have been the sam e w ith eith er type of bank. On th e banking b u sin ess “spread” feature, the court sim p ly recited the facts and, apparent ly, considered them to be of such a nature th at th ey should not affect the fundam ental reason ing of the decision w hich w as that the law should control. H ooper held a $5,000 m ortgage on ce rta in real estate of a N ebraska com pany. S ubsequently th e com pany failed to pay its occupation fee ta x to th e state th a t had been assessed after th e date of th e m ortgage. A t th e tim e, th e law provided th a t such taxes should be a first lien on all p ro p erty of th e com pany from date of assessm ent. W as th e ta x lien p rio r to th e m ortgage lien held by Hooper? Y"es. T axes m ay be m ade a first lien upon all property of th e ow ner of the property taxed w ith the resu lt th at th ey have p riority over a m ortgage or any other lien ex istin g again st the property. T h is is true w h eth er such m ortgage or other lien w as created be fore or after the a ssessm en t of the tax. Shroeder, a M innesota banker, en tered into an agreem ent w ith Jones to co n stru ct a house. The agreem ent provided th a t disputes should be arb i tra te d and fu rth e r provided th a t th e a rb itra tio n provision should be irrev o cable. A dispute arose. Jones refused to a rb itrate. Could S hroeder go ahead w ith th e arbitration? Yes. In M innesota, w here an arbitra tion is irrevocable and one of the par ties w ithd raw s or refu ses to participate in the arbitration proceedings, the arbi trators m ay proceed ex parte at the in stance of the other party and make a valid award. D ecision s so h olding may also be found in Illinois, Indiana, Ohio, W est V irginia and other states. Leary, a N orth D akota banker, w as grounded due to w eath e r conditions in th e state of W ashington w hile en ro u te hom e from an extended trip on a reg u lar flight on a com m ercial air line. He sought, by legal proceedings, to req u ire th e air line to p u t him on th e next plane even th ough it w as full to capac ity and it w ould have been necessary to cancel some one’s reserv atio n in or der to secure th e needed space. Could he do so? No. A n airplane p assen ger w h o se airplane has b een grounded on a reg ular flight before reaching its d estin a tion because of adverse w eath er condi tion s does not have th e right to con tinue on the n ext plane if the latter is full to capacity and it is n ecessary to cancel som eon e’s reservation in order to secure the needed space. The Su prem e Court of W ashington so held in a recent decision. M atthew s, a South D akota banker, ow ned a farm in th a t state on w hich he had a tracto r. T here w as some ques tion as to th e v alidity of M atthew s’ rig h t to th e tracto r, b ut it w as definite ly in his possession. A nderson, w ho had a faulty title to th e tracto r, sought to recover it from M atthew s by rep lev in. Could he do so? No. In replevin , the plaintiff m ust recover on the strength of his ow n ti tle, and the defendant, thou gh n ot the ow ner, if in p o ssessio n of the property, is en titled to a jud gm ent in replevin proceedings w here the plaintiff has no clear title and no clear rig h t to p o sses sion. At common-law, generally speaking, th e subsequent m arriage of a testator, coupled w ith th e b irth of a child, oper ates to revoke a w ill m ade p rio r to (T u rn to page 51, please) O U R 5 0 th YEAR 21 Member ©UR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Federal Deposit Insurance Corporation N orthw estern Banker A ugust 19 22 D A L E E. C H A M B E R L I N S en io r V ic e P r e sid e n t G E O R G E A. M A L C O L M P r e s id e n t F R E D E R IC K N . M E R C E R S en io r V ic e P r e s id e n t The //Big Three 77 of the Drovers Banks CTIVE m anagem ent of th e the D rovers B anks of Chicago w ill continue u n d e r th e supervision of a trio of senior executives, d irectors announced follow ing th e death, early in Ju n e, of W illiam C. Cum m ings, p resid en t of th e D rovers N ational B ank and of th e D rovers T ru st and Savings B ank. The “Big T h ree” are George A. Malcolm, th e new president, and F red erick N. M ercer and Dale E. C ham berlin, senior vice presid en ts of both banks. All are w ell know n to th e ban k in g fra te rn ity of th e m idw est. E ach has a record of m ore th a n a q u a r te r of a cen tu ry of service w ith th e D rovers. Mr. O tstott has been a directo r and vice presid en t of th e D rovers T ru st and Savings B ank for m any years. A Long Service Tilden Cummings, Chairman of Advisory Committee Tilden Cum m ings, son of th e late p resid en t of th e D rovers B anks, and co-executor and co-trustee of his es tate, has been nam ed ch airm an of th e advisory com m ittee of both banks. The estate in te re st in th e D rovers B anks w ill rem ain intact. Mr. Cum m ings is a b an k er of m any y ears expe rience. Frank Covert Promoted F ra n k Covert, w ho needs no in tro duction to b a n k ers of th e m idw est, has been prom oted from a ssista n t cashier to a ssista n t vice p resid en t of th e D rovers N ational B ank. He has been in charge of th e D rovers correN orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19^5 FR A N K M. C O V E R T A s s is t a n t V ic e P r e sid e n t in C harge C o rresp o n d en t B a n k D iv is io n spondent bank division for m any years, and w ill continue in th a t ca pacity. O ther prom otions in th e official staff of th e D rovers N ational B ank are: R obert Lough, assistan t vice p resi dent; Leo R. G ruber, cashier; Leslie G. S harp and D rohm er J. K orista, assist a n t cashiers. M urray M. O tstott has been elected to th e board of directors. An in terestin g sidelight on th e D rov ers “Big T h re e ” is th a t th ey have a com bined service record of 108 years, m any y ears of w hich w ere served u nder th e presidency of th e late W il liam C. Cum m ings. Mr. Cum m ings him self sta rte d w ith th e D rovers N a tional B ank in 1894, and served con tinuously u n til his death on Ju n e 7, 1945. The D rovers B anks are located at th e U nion Stock Y ards in Chicago and have specialized in friendly service to correspondent banks for 63 years. “This policy w ill be continued,” accord ing to th e “Big T hree.” The D rovers N ational B ank w as es tablished in 1882 p rim arily as a “Y ards” bank, to serve every b ranch of th e livestock industry. F ro m the first it featu red a highly specialized service to correspondent banks, m eat packers and livestock com m ission firms. Today, due to th e v ast in crease in its in d u strial area, th e D rov ers serves a w ide field and m eets all the Chicago req u irem en ts of hu n d red s of m idw estern banks. The D rovers T ru st and Savings B ank w as organized in 1902. T he Ju n e 30, 1945, statem en ts of condition show com bined resources of $103,740,823.05. OUR 50th YEAR 23 C o rresp o n d en t banks, let this be your F oreign D ep artm en t! domestic correspondent banks find it unnecessary to maintain their own Foreign Departments since the complete facilities o f our Foreign Department are at their entire disposal. If a problem arises all that is necessary is to phone, wire, or write us. They initiate the transactions; we furnish the facilities. The long experience of our Foreign Department enables us to provide correspondents with pro l i jf O ST OF O U R cedures requiring minimum detail work on their part on transactions involving Foreign Remittances, Letters o f Credit, Export Collections, etc. Here is an excellent method to secure additional revenue and other collateral benefits, to maintain existing relationships with old customers, and to develop business with new clients. Your inquiries as to how we can work with you on Foreign banking transactions are invited. Manufacturers T rust Company 55 Broad Street, N e w Y o rk 15, N . Y. M em ber F ederal Deposit Insurance Corporation OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e stern Banker A ugust 19^5 24 How Country Banks A re Advertising Below are examples of local newspaper advertising selected by the Northwestern Banker and being used by banks in towns of population from 521 to 4,070. N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1945 OUR 50th YEAR 25 WANTED for FORGERY! -Mr. Z NO PHOTOGRAPH AVAILABLE. OPERATES UNDER MANY ALIASES. 43 TO 45 YRS., 5 FT. 8 IN. TO 5 FT. 9 IN., 140 TO 145 LBS., MEDIUM BUILD, SPARSE SANDY HAIR, SALLOW COMPLEXION, PROMINENT CHEEK BONES, EVEN TEETH, MAY HAVE SMALL MUSTACHE. NEATLY DRESSED. H ere is a n a rtist's a tte m p t to reco n stru ct th e a p p e a r a n c e of Mr. Z. D escriptions o f c h e c k fo rg ers a re b e in g co n sta n tly p u b lis h e d in th e " P ro tective B u lletin " is s u e d b y th e A m erica n B a n kers A sso c ia tio n , a s a w a r n in g to b a n k e rs. One of the most valued functions of the American Bankers Association is its powerful, continuous Educational Program against preventable losses through the activities of bank crim inals. » » James E. Baum, one of the leaders in this work and M anager of the A .B .A /s Protective Department, states: "After more than half a century of first-hand experience in protecting banks against loss from crime, the records of this department have con clusively demonstrated that s im p le p r e v e n tiv e m e a s u r e s are the bank's best protection against crooks." » » M ay we remind you that La Monte Safety Paper is just such a simple pre ventive device. Long recognized as the s ta n d a rd for check protection, it has effectively demonstrated the truth of that famous axiom, "A n ounce of pre vention is worth a pound of cure." F or S a m p le s of L a M onte S a fe ty P a p er s e e y o u r L ith o g ra p h er or P rinter — or w rite u s direct. X.A MONTE GEORGE LA MONTE & SON r h a W a v y L in e s a re a La M o n te T ra d e M a rk O UR 5 0 th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B U Y W AR B O N D S AND SPEED V IC T O R Y PAPER NUTLEY, NEW JERSEY W e s u p p l y m a n y b a n k s a n d b u s in e s s o r g a n iz a tio n s w ith th e ir o w n in d iv id u a l l y id e n t if ie d S a f e ty P a p e r . T h e is s u in g o r g a n iz a tio n 's T ra d e -M a r k is in th e p a p e r its e lf a n d a p p e a r s on b o th th e fro n t a n d b a c k of th e c h e c k . S u c h in d iv id u a l iz e d p a p e r p r o v id e s m a x im u m p r o te c tio n a g a in s t c o u n te r fe itin g —s a v e s B a n k s s o r t in g tim e —h e lp s p r e v e n t e rro rs. N orthw estern B anker August 19b5 26 Promotions Investors Syndicate Elects The Chase N ational B ank announces th e follow ing prom otions in th e official staff of th e bank: E sm ond B. G ardner, pension tr u s t d ep artm en t, and W. A rth u r Grotz, railro ad d ep artm en t, to be vice presidents; Jam es J. M ajor, fo r eign d ep artm en t, to be a second vice president; A dolphe H ague, com m ercial banking, H a rry P. H illen and David A. Scott, foreign d ep artm en t, to be as sista n t cashiers; and Irv in L. D yer to be a ssista n t com ptroller. The d irectorate of Inv esto rs Syndi cate, u n d e rw rite rs and d istrib u to rs of in v estm en t securities, have announced th e election of R obert E. M acgregor as p resid en t and d irector of th e corpora tion and th e election of E a rl E. Crabb as ch airm an of th e board of directors. Re-elected also to th e board were: Jo h n M. H arrison, H en ry M. G allagher, and P au l E. Von K uster. Mr. M acgregor, pro m in en tly id en ti fied w ith th e financial affairs of th e N in th F ederal R eserve D istrict, had been associated w ith the N o rth w estern N ational B ank of M inneapolis from 1897 to Ja n u a ry 1, 1945 w hen he re tired as senior vice presid en t of th e Ö5Q* E A R L E. C R A B B B e c o m e s C hairm an of B oard bank. Joining th e staff of th e old N o rth w estern N ational in 1897 he had successively served as m essenger, clerk, bookkeeper, teller, assistan t $ 2 0 0 ,0 0 0 IN GO LD DUST 2 gold w a tc h e s , r u n n in g , m a rkin g p e rfe c t tim e , a ls o v a lu a b le p a p e rs, saved b y th is H e rrin g S a fe . THE ORIGIN OF THE WORLD WIDE H -H -M T R A D IT IO N ... •fa For 16 previous years, Silas Herring had produced the world’s best safes, but the world still doubted any safe would withstand a firstrate conflagration. Then came the San Francisco holocaust, May, 1850. Twenty-five Silas Herring safes came through the fire in good order — with contents intact! 100 other safes were destroyed — their contents reduced to ashes! 'Ar It is this proud tradition that inspires the present HHM organization to keep the Hf W standard of a performance — always years ahead! IN P R E P A R A T IO N : “ P ro g re s s in P r o t e c t i o n ." A n illu s t ra t e d h isto ry o f d e v ic e s men h a v e used to p ro tect th e ir v a lu a b le s from th e ca v e m an e ra to th e p re se n t. L im ite d e d it io n . For a r c h ite c ts , b a n k e rs , e x e c u t iv e s . P le a s e r e se rv e (b y le tt e r) y o u r co p y n o w . G r a t is . H E R R I N G - H A L L - M A R V I N S A F E CO. R O B E R T E. M A C G R E G O R P r e s id e n t and D ir e c to r General O ffic e s : Hamilton, Ohio BRANCH OFFICES in New York, Chicago, Boston, Washington, St. Louis, Atlanta, Houston OTHER AG EN CIES ALL OVER THE WORLD MANUFACTURERS OF BANK VAULT EQUIPM ENT - BANK COUNTERS - TELLERS* BUSES AND LOCKERS SAFE DEPOSIT BOXES - NIGHT DEPOSITORIES • BANK AND O FFICE SAFES BUILDERS OF THE UNITED N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis STATES SILVER STORAGE VAULTS-WEST POINT MILITARY RESERVATION A ugust 1945 cashier, cashier, and vice president, and w as senior vice presid en t from 1941 u n til 1945. Mr. Crabb becam e associated w ith In v esto rs Syndicate in 1925. He served OUR 5 0 th YEAR 27 * * T he C O N T I N E N T A L BANK & T R U S T C O M P A N Y of N E W YORK w a s fo u n d ed 75 y e a rs ago th is m o n th Member Federal Deposit Insurance Corporation ______________ J O U R 5 0 th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker A ugust 1945 28 as a vice p resid en t from 1925-1935, w as executive vice p resid en t from 1935 to 1939, and has been p resid en t of th e corporation since Ju ly 1939. He also is p resid en t of In v esto rs Syndicate of A m erica, Inc., In v esto rs Syndicate of Canada, Ltd., In v esto rs M utual, Inc., In v esto rs Stock F und, Inc., and In vestors Selective F und, Inc. Lyman E. Wakefield Dies L ym an E. W akefield, p resid en t of F irs t N ational B ank of M inneapolis from Ju ly 30, 1926, u n til Ju n e 29th of this y e a r w hen he w as nam ed ch air m an of its board of directors, died W ednesday, Ju ly 25th, of coronary throm bosis at his hom e in M inneap olis. Mr. W akefield w as tak en ill on Ju n e 16th. A fter a m onth a t A bbott H os pital, M inneapolis, he had re tu rn e d to his hom e. F u n e ra l services w ere held a t W estm in ster P resb y terian Church, M inneapolis, at 3 p. m., F r i day, Ju ly 27th, followed by p riv ate in te rm e n t a t Lakew ood Cem etery. B orn Ju ly 7, 1880, on th e W akefield farm , Long Lake, M innesota, Mr. W akefield w as th e son of W arren and A bby (E ldredge) W akefield. He a t tended W ayzata high school. In 1897 he en tered th e em ploy of th e F irs t N a tional Bank, A ustin, M innesota, as m es senger and jan ito r. F ive y ears later he came to th e N o rth w estern N ational B ank of M inneapolis w ith w hich in sti tu tio n he served u n til 1911, advancing to th e position of assistan t cashier. He th e n becam e tre a su re r and later vice presid en t of W ells-Dickey Com pany, M inneapolis inv estm en t b an k ers, and also served as vice p resid en t of W ells-Dickey T ru st Company. In 1925 w hen W ells-Dickey T ru st Com- Guaranty Trust Company o f New York F ifth Ave. at 4 4 th St. . LONDON M adison Ave. at 6 0 th St. PARIS BRUSSELS C o n d e n s e d S ta te m e n t o f C o n d itio n , J u n e 3 0 , 1 9 4 5 RESO U R C ES Cash on H and , in F ed eral R eserve B an k , and D u e from B an k s and B a n k e r s ..................................$ U . S. G overnm ent O b l i g a t i o n s ........................................ L oans and B ills P u r c h a s e d ............................................... P u b lic S ecurities . . . . . $ 5 9 ,2 5 0 ,0 1 4 .0 0 Stock o f th e F ed eral R eserve B an k 7 ,8 0 0 ,0 0 0 .0 0 O ther S ecu rities and O b ligation s . 2 3 ,4 3 5 ,5 6 5 .7 3 Credits G ranted on A cceptan ces . 1 ,8 1 6 ,3 3 1 .8 5 A ccrued In terest and A ccounts R e c e i v a b l e ........................................ 1 1 ,4 0 5 ,0 2 4 .2 2 R eal Estate B ond s and M ortgages 1 ,5 2 4 ,9 8 4 .9 0 B ank B u i l d i n g s ................................................................... O ther R eal E s t a t e ................................................................... 5 5 6 ,3 8 2 ,1 3 4 .6 4 2 ,1 4 3 ,8 5 3 ,2 3 9 .7 5 1 ,0 8 7 ,2 4 7 ,5 9 1 .1 7 L Y M A N E. W A K E F IE L D 1 0 5 ,2 3 1 ,9 2 0 .7 0 9 ,3 3 5 ,5 6 4 .1 9 7 8 5 ,2 3 2 .7 9 T otal R e s o u r c e s ................................. $ 3 , 9 0 2 ,8 3 5 , 6 8 3 .2 4 L IA B IL IT IE S C apital . . ..................................$ 9 0 ,0 0 0 ,0 0 0 .0 0 Su rp lus F und . . . . . . 1 7 0 ,0 0 0 ,0 0 0 .0 0 U n divided P r o f i t s ........................... 4 7 ,3 7 4 ,4 5 4 .5 8 Total C apital F u n d s ........................................ $ G eneral C on tin gen cy R e s e r v e ........................................ D e p o s i t s ........................................ $ 3 ,4 6 9 ,4 0 4 ,5 7 9 .2 9 T reasurer’s C hecks O u tstan d in g 2 1 ,5 2 9 ,5 1 7 .1 8 T otal D e p o s i t s ...................................................... B ills P a y a b l e ................................. A c c e p t a n c e s ................................. $ 3 ,7 7 7 ,7 3 0 .8 2 L ess: O wn A cceptan ces H eld for In vestm en t . . . 1 ,9 6 1 ,3 9 8 .9 7 $ 1 ,8 1 6 ,3 3 1 .8 5 L iability as E ndorser on A ccept ances and F oreign B ills . . 1 4 7 ,7 3 2 .0 0 D ivid en d P ayable Ju ly 2 , 1 9 4 5 2 ,7 0 0 ,0 0 0 .0 0 Item s in T ransit w ith F oreign B ranches and Net D ifferen ce in B alan ces b etw een O ffices D ue to D ifferen t Statem en t D ate o f F oreign B ranches . 1 ,0 2 6 ,3 2 4 .9 3 A ccou n ts P ayab le, R eserve for E x p e n ses, T axes, etc. . . . 2 3 ,7 8 5 ,5 2 0 .7 4 3 0 7 ,3 7 4 ,4 5 4 .5 8 3 5 ,0 5 1 ,2 2 2 .6 7 3 ,4 9 0 ,9 3 4 ,0 9 6 .4 7 4 0 ,0 0 0 ,0 0 0 .0 0 Celebrates Anniversary 2 9 ,4 7 5 ,9 0 9 .5 2 T otal L iab ilities . ........................... $ 3 , 9 0 2 ,8 3 5 , 6 8 3 .2 4 Securities carried at $1,233,090,665.65 in the above Statement are pledged to qualify for fiduciary powers, to secure public moneys as required by law, to secure Bills Payable, and for other purposes. This Statement includes the resources and liabilities of the English, French and Belgian Branches as of June 26, 1945. Member Federal Deposit Insurance Corporation N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1945 p any and M inneapolis T ru st Com pany consolidated, he becam e vice president of F irs t M inneapolis T ru st Company, th e resu ltin g organization. A y ear lat er he w as elected presid en t of the F irst N ational Bank, in w hich capacity he served u n til his advancem ent to the ch airm an sh ip of th e board of direc tors. He w as succeeded at th a t tim e by th e election of H en ry E. Atwood of M inneapolis as presid en t of the bank. A ugust 1st m arked th e 75th an n i v ersary of T he C ontinental B ank and T ru st Com pany of New York. Nam es w hich are still byw ords in A m erican business and finance w ere am ong th e founders of th e B ank w hen it opened its doors in th e old E quitable Building at 120 Broadw ay. T hey included Jacob H. Schiff, later senior p a rtn e r of K uhn, Loeb and Company; H. B. Claflin, head of th e larg est d ry goods house in A m erica; M arcellus H artley, a leading financier and “captain of in d u stry ”; R obert L. C utting, one of N ew Y ork’s m ost pro m in en t citizens; Joseph Seligm an, founder of th e b anking house of J. and W. Seligm an and Company. O U R 5 0 th YEAR 29 ICTURE OF A MAJOR MARKET ...which is still growing! Population, income, retail sales, and other figures paint an impressive picture of the California of 1945. More important to business and banking executives everywhere is the fact that this market holds promise of con tinuing development. If the possibilities of this market are a serious consideration to you, follow the lead of business, industrial, and banking executives every where. Direct your inquiries to this bank which serves California through branches in more than 300 cities and towns—a statewide service which offers many unique advantages. Inquiries will receive prompt attention. < R E S O U R C E S O V E R Ah B I L L I O N D O L L A R S ► iBank of America NATIONAL M E MB E R F E D E R A L R E S E R V E SY S T E M s a v in g s • MEMBER ASSOCIATION FEDERAL DEPOSIT I N S U R A N C E C OR P O R A T I O N Complete Banking Facilities - Commercial - Savings - Trust - Safe Deposit Main Offices in the two reserve cities of California . . . San Francisco - Los Angeles Blue and Gold BANK of AM ERICA T R A V E L E R S C H EQ U ES are available through authorized banks and agencies everywhere. Carry them when you travel. O UK 5 0 th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern B anker A ugust 19^5 30 In keeping w ith th e tim es, The Con tin e n ta l decided th a t its an n iv e rsa ry w ould not be “celeb rated ” in th e cus tom ary lavish sense. “Our a tte n tio n is centered a t th is tim e,” said F red erick E. H asler, p resid en t and ch airm an of th e board, “on th e u n u su al o p p o rtu n i ties w hich are ahead of us in th e nex t few years. “It has nev er been our practice, nor is it o u r in ten tio n now, to cover th e endless ran g e of services w hich th e public a t large can use. W e fully recognize th e value of such p opular services as in stallm en t loans, savings, and pay-as-you-go checking accounts. B ut for ourselves, we have set quite an o th e r course, shaped by experience in seventy-five y ears of service: “The n um ber of our accounts will alw ays be in keeping w ith th e capacity of our officers to serve each one. E v ery custom er, w hen he calls, can deal p er sonally w ith an officer w ho know s his account and u n d erstan d s th e aim s and problem s of his com pany or bank. “W e feel th a t such an organization as th e C ontinental can continue to u n d ertak e un u su al services, both to b anks and com m ercial custom ers.” X Protection for United Nations Charter Some of th e details su rro u n d in g th e signing of the U nited N ations C harter in San F rancisco on Ju n e 26th, can now be unfolded. R evealed recently was th e story of th e precautions tak en to p rotect th e actual signed c h a rte r itself. E ven before the actual signing took place officials of the State D epartm ent had conducted an investigation of all types of available equipm ent suitable for th e protection of th is valuable docum ent w hile in tra n sit and later. I t w as decided to p rotect th e C h arter by keeping it in a H erring-H all-M arvin “T re a su rg a rd ” chest and one w as im m ediately purchased from the San X ■X r George Keithahan, a se c re t se rv ice m an, e x am in es th e sp e c ia lly m ad e case eq u ip p ed w ith c o m b in a tio n lo ck a n d c o n ta in in g th e U n ite d N a tio n s O rg a n iz a tio n C h a rte r, w h e n th e h e a v ily g u a rd e d h is to ric docu m e n t re a c h e d W a sh in g to n , D. C. T I L D E N C U M M IN G S C hairm an , A d v iso r y C o m m ittee O fficers o f th e D rovers N ational B ank G eorge A . M a lc o lm .. F r ed eric k N . M e rcer D a le E . C h a m b er lin . F rank M . C o v e r t . . . . R o b ert L ou gh .............. L eo R. G ru b er.............. D roh m er K o r ista L e s lie G. S h a r p ............ ................................... P r e s id e n t ...................... V ic e P r e s id e n t ...................... V ic e P r e s id e n t A s s is t a n t V ic e P r e s id e n t A s s is t a n t V ic e P r e s id e n t ....................................... C a sh ier ................. A s s is t a n t C a sh ier ................. A s s is t a n t C a sh ier M e m b e rs F ed e ra l D e p o s it Insu ra nce Corporation l 'm ù là s I DRDVERS NATIONAL BANN DROVERS TRUST 0 SAVINGS BANN U N I O N S T O C K Y A R D S , ..... _____ .. N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A ugust 19fi5 C H I C A G O :. . F rancisco stock of th e H erring-H allM arvin Safe Company, of H am ilton, Ohio. Im m ediately on com pletion of th e signing th e C h arter w as locked in th is chest w hich w as th en bound w ith steel bands and sealed by the S tate D ep artm ent and th e chest placed u n d er 24-hour g u ard by Secret Service m en. Two days later, on Ju n e 28th, th e chest w ith its precious contents and the Secret Service guards w ere placed aboard a special A rm y plane and flown to W ashington. It is in terestin g to note th a t today the w orld attach es m uch m ore im portance to th e protection of such historic docum ents th a n form erly. L et us hope th a t th is im portance aug u rs well for th e fu tu re observance of treaties and ch a rte rs so th a t these docum ents will not be treated as “scraps of p a p e r” w hen some dictator feels th e urge to oppress th e free peo ples of th e w orld. O UR 5 0 ih YEAR > 31 A Foreign Department A T Y OUR S E R V I C E Plans of both exporters and importers to resume foreign trade are well advanced. New connections are being sought—old ones revived. . . . Helping your customers with their foreign trade and international banking transactions will be a valuable service. Helping our correspondent banks with these problems is, in turn, a service we can offer you. Our long-established, world-wide facilities are available to you. A Partial List of Bankers Trust Company Collection of Par and Non-Par Checks Collection of Notes, Drafts, Coupons, Matured Bonds and Other Items (Domestic and Foreign) Transfer of Funds, Remittances and Domestic Money Orders Credit Information Servicing Loans to Brokers and ______ _____ Dealers Participation with Correspondent Banks in Loans to Local Enterprises _____ _____ Services to Banks Commercial and Travelers Letters of C r e d i t ___ ______ Safekeeping of Securities________ Consultation on Pension and Profit-Sharing Plans_______ _ _ Dealers in United States Govern ment, State and Municipal Securities C.o-Paying or Exchange Agent, Co-Transfer Agent or Registrar, and Co-Depositary _________ Investment Information Trust and Reserve Accounts Receipt and Delivery of Securities International Trade and Foreign Banking Facilities Commercial Paper Purchases BANKERS TRUST COMPANY JVEW MEMBER O U R 5 0 th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FEDERAL DEPOSI T YORK INSURANCE CORPORATI ON N orthw estern Banker August 1945 32 Whe r eve r t h e r e is m a r k e t a b l e i n v e n t o r y . H . ..... : .'.'0 SWl I H 1 WÊÊm 1I , Great National M anu factu rin g Co. 1400 ANY TOWN, BALANCE SUMMERSET ANY STATE, U. S. A. S H '/E T , a s o f J u n e 3 0 , / 1945 A SSET S .$ Ca sh o n h a n d : . 4 1 6 .2 3 5 ,2 4 8 .5 4 C a sh in b a n 'll) . . . A c c o u n ty Re l i v a b l e 2 6 ,4 1 8 .6 7 '^ V E N T O R Y ■ 8 9 ,0 0 9 .4 0 TOT AL C U R R E N T A S S E T S .you can $ 1 2 1 ,6 9 2 .8 4 bi g i n v e n t o r y l o a n s Readily m arketable inventories of your customers can be excellent " fishing g ro u n d ” fo r your inventory loan d ep artm en t. M any custom ers in need of additional w orking capital, do not realize that th e ir inventories may be accep table collateral for loans. Y et—w hen in v entory is field w arehoused on th e borrow er’s premises by the Lawrence System you have sound, desirable col lateral for your loans. Tell your custom ers about this service . . . it can bring m uch extra loan business to you. F or 30 years the Lawrence System has helped banks and other lending agencies increase th e ir loan business—and very prof itably. C u rren tly Law rence advertises to 18 ” top- pro sp ect” in d u stries. T he Lawrence W arehouse Company branch office in your territo ry will gladly coop erate with you. Phone or write for the new free descriptive booklet, "F ield W arehousing On Y our Prem ises,” for your customers. LAWRENCE WAREHOUSE COMPANY Jichi Warehousing FO R BANK LOANS ON INVENTORY New York: 72 Well Street • Chicago: 1 North LaSalle Street • San Francisco: 37 Drumm Street • Los Angeles: W. P. Story Building • Buffalo • Boston • Philadelphia • Kansas City, Missouri • St. Louis • New Orleans • Jacksonville, Florida • Dallas • Houston • Denver • Fresno • Portland, Oregon • Atlanta • Cincinnati • Washington, D. C. N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A ugust 1945 O U R 5 0 th YEAR Corporate Bond Prices A re Behind the Procession The Present Lag of the Corporate Market May Be Because It Is Facing the Huge Volume of Pending Financing That Is Scheduled Before the Next W ar Loan OW th a t th e Seventh W ar Loan h as been w ound u p —and so suc cessfully by th e over-all count— it w ill be ap p ro p riate to tak e th in g s a p a rt a b it and to see w h a t effect it has had on th e m oney m a rk e t and th e b an k in g system . Two th in g s have been m ost in evidence, th e first being th e u n u su al stre n g th in th e long Treasury s, p a rtic u la rly th ro u g h o u t the w hole period of th e Drive. The second featu re has been th e condition th a t b ro u g h t th is price ac tio n about. Of th e $3.6 billion increase in U. S. G overnm ent holdings of th e m em ber b an k s in 101 cities betw een May 16 and Ju n e 27, $3.3 billion or over 91 p e r cen t w as re p re se n te d by o th er th a n Bills and C ertificates, or W ar L oan “cover.” Also, loans *to c a rry U. S. G overnm ent issues in creased by over $2.2 billion in th e sam e period despite special effort in th is D rive to hold in d irect b an k p a rtic ip a tion to th e m inim um . F ed eral R eserve su p p o rt w as lessened how ever w ith a decline of $340 m illion of to tal F ed eral R eserve C redit as borrow ings w ere reduced from th e $916 m illion peak on Ju n e 6. R eduction in borrow ings to $42 m il lion by Ju n e 27 w as in line w ith the u su al p ractice of clearing th e decks for th e m id y e a r statem en t. E a rlie r em phasis on th e utilizatio n of bo rro w ing pow er by th e b anks is a sound in dication. Yields on 3 to 12 m onths m a tu ritie s m ake liquidation unw ise in th is b rack et w hich enjoys p referred b o rro w in g privilege. N The 1 Vi’s Have Shot Their Bolt P review s of th e price action of th e new 1%’s w ere rep resen ted alm ost en tire ly by too m odest forecasts. G ener ally about 1 po in t p rem iu m h ad been envisioned. The b u rs t of b u ying th a t sen t th e price up to 101.15 w h en tra d ing opened Ju ly 2 w as quite generally su rp risin g . T he su b seq u en t settin g back to 101.10-101.12 resu lted from m ore sober consideration th a t, b a rrin g a gen eral advance in th e price level OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis By Raymond Trigger Investment Analyst New York City This is a discussion of fa c tors affecting your invest ment portfolio. If you have any questions, or if you find yourself in disagree ment with comments here in, your letters, addressed to the N O R T H W E S T E R N B A N K E R , w ill be w e l come and will be answered here if the subject m atter is of general interest. Under no circum stances will the editor of this column dis cuss sp ecific securities. and an o th er change in th e p a tte rn such as took place in th e six m onths p re ceding th e Seventh W ar Loan, th e new 1%’s seem to be “th ro u g h ” pricewise. R em aining level for som ething u n d er a year, th e price curve for this issue th en descends gradually for th ree y ears or m ore before sta rtin g dow n in earnest. The u n fo rtu n ate p a rt of it is th a t all o th er issues in th e 5-7 y ear m a tu r ity group are in th e sam e boat so th a t “roll over” o p p o rtunities no longer ex ist as far as price is concerned. W hile these o th er issues are th u s rela tiv ely as high priced th e yield ad v antage of th e several 2’s beginning w ith th e D ecem ber 1951-49 issue n ev er th eless m akes th is group m ore desir able for new money. The Distorted Spread Between Governments and Corporates The w idening spread betw een th e long 2% ’s and high grade long term corporates w as com m ented upon in our last article. F o r an o th er m onth the corporates have scarcely moved (w ith notable exceptions such as Texas E lectric Service 2%’s). The re su lt is th a t th e spread betw een long corporates and T reasu ry s is w ider th a n ever and th e w hole th in g looks m ore irratio n al th a n ever. In fact, th e scram ble for th e long 2%’s has developed into som ething of a b u y ers’ panic as a re su lt of m ore drastic sealing dow n of allotm ents of th e new 2% ’s and 2%’s th a n w as ex pected, and due to fear th a t th e re m ay not be any m ore of such issues in fu tu re W ar Loans. B etw een Ju n e 5 and Ju ly 5 th e ineligible 2% ’s and 2% ’s m oved up % to % w hile th e “b an k ” 2% ’s of Septem ber 1972-67 gained a full point. "Policing" a Failure W h at m ay be even m ore of a th re a t to th e 2% ’s and 2% ’s is th e failure of policing to p rev en t the heavy roll-over operations th a t w ere th e th o rn in th e side of th e last two W ar L oan Drives. It has been observed pointedly th a t in surance com pany purchases in th e last tw o drives w ere about tw ice as great as th e accum ulation of new funds by these institutions. This w ould suggest th a t about half of th e $8 billion p u r chases of the in su ran ce com panies in th e last tw o drives m ust have been for replacem ent. The 2% ’s and 2% ’s could therefore go by the board as a penalty, or m ere ly as a m atter of opportunism if the m ark et continues to bid prices up to a point w here new offerings of 2% ’s and 2% ’s at p ar w ould be silly or ex trav ag an t. The possibility th a t these issues m ay become a th in g of the past m ust be adm itted. W hat is h ard to u n d erstan d though is the ap p aren t com pulsion to buy T reasu ry s in the (T u rn to page 35, please) N orth w e stern Banker August 19^5 34 Northwestern National Changes READY F O R V -J D A Y ? The'job with top priority today is, o f course, knock ing Japan out of the war. Next in importance to the alert executive is what hap pens after V-J Day. Will his new products be ready ? Will his plant be set for speedy production ?Has he explored his markets to make sure his products will win acceptance ? Does he need more cap ital ? Would his position improve with wider distri bution ? In short, is his financial house in order for V-J Day ? These are v ita l ques tions and expert help may be needed to find the an swers. Since 1888, the firm of Hornblower & Weeks has aided in the expansion of American industry by underwriting and distribu ting sound capi tal issues in many fields. This long and varied experience will be helpful to those faced with such problems. A call upon a Partner at any Hornblower & Weeks office may be the first step in the solution of your post-war adjustments. C L A R E N C E E. H IL L N e w B o a rd C hairm an J O S E P H F. R I N G L A N D H e a d s N o r th w e ste r n N a tio n a l H E board of directors of N o rth w est e rn N ational B ank of M inneapolis has elected Clarence E. H ill to th e posi tion of ch airm an of th e board; Clarence R. Chaney to the positions of director a n d . vice ch airm an of th e board; and Joseph F. R ingland to th e positions of d irector and p resid en t of th e bank. Mr. Hill, pro m in en t in local banking circles for m any years, w as elected vice presid en t of N o rth w estern N a tional B ank of M inneapolis in 1922 and in 1944 w as elected a director. T Mr. Chaney joined th e b ank as an office boy in 1907. He becam e assistan t cashier in 1920, vice p resid en t in 1929, and in 1940 becam e executive officer of th e tru s t d ep artm en t w ith th e title of vice p resident and vice ch airm an of th e T ru st Com m ittee. Mr. R ingland has had a long and varied banking career. S tartin g w ith th e U nited S tates N ational B ank of Omaha, he becam e successively vice p resident of the G reat Falls N ational Bank, presid en t of th e Stock Yards Na- S pecia lizin g in U n listed S ecu rities BANK — INSURANCE HORNBLOW ER PUBLIC UTILITY — INDUSTRIAL — REAL ESTATE & W EEKS LUMBER & TIMBER 40 W a ll S t r e e t BONDS, PREFERRED AND COMMON STOCKS N e w Y o r k 5, N . Y . BO U G H T — SOLD — QUOTED Since 1888— F in an cial Service Adapted to Your Requirements Offices: N ew Y ork; B oston; C hicago; C leveland; P h ilad elp h ia; D e tro it; P o rtla n d , M e.; P rovidence; B altim ore; B angor. N orth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1945 REMER, MITCHELL & REITZEL, INC. 208 S o . La S a lle S t ., C h ic a g o 4 R A N d o lp h 3736 W E ST E R N U N IO N T E L E P R IN T E R “W UX” B E L L SYSTEM TELETY PE CG-989 O U R 5 0 th YEAR 35 tional B ank of South St. Paul, p resi d en t of E m p ire N ational B ank of St. Paul, and vice p resid en t of G u aran ty T ru st C om pany of New York. In Ju ly of 1944, he m oved his residence to M inneapolis to becom e vice p resid en t of N o rth w e ste rn N ational B ank of M inneapolis. C O R P O R A T E BOND PRICES (C ontinued from page 33) fear of p riv atio n w hen th e re is no d e a rth in th e co rporate field yet. Corporates F o r th e p ast tw o m onths, corporates have been slow ed up pricew ise by th e W ar Loan or its earlier im m inence and th e av ailability to certain b uyers at th a t tim e of 2% ’s a t par. T hese sam e bonds are now rou g h ly 1% points higher. The p resen t backw ardness of the corporate m a rk e t m ay be because it is facing th e huge volum e of pending financing th a t is scheduled before the n ex t W ar Loan. H ow ever it is a long road th a t has no tu rn in g . M eeting th e c u rre n t lack of en th u siasm th e recen t issue of $53,119,000 Louisville & N ashville 2% ’s has gone slow ly at 98% and at th e p resen t w ritin g it is understood th a t th e issue is only about 40 p er cent sold. A break of % to % point in th e price w ould n o t be surprisin g . The sm aller issue of $25,000,000 U nion Oil of C alifornia, 2% ’s did b e tte r and has held fractionally above the offering price of 101. A fu tu re advance w ould not be u n w a rra n te d . T his issue com pares favorably w ith th e Shell Union Oil 2% ’s on m ost counts and could sell up a po in t or m ore to be in line. The provision for re tire m e n t of over 75 p er cent of the issue by sin k in g fund should be a stro n g price factor. ‘ ‘ W hen did a people in our free U. S. A. ever buy 18 billion dollars in w ar bonds in six weeks w hen peace reigned? ‘ ‘ W hen did a people ever b u ild navies, arm ies, tan k s, planes, guns, airfields an d m ak e m u n itio n s of w a r till w e w e n t w ith out gas, cars, sugar, b u tte r, m eat and clothes, in peacetim e ? D o n ’t m ake me laugh— or m ad— by such fool p ro p a g a n d a as ‘ P e a ce tim e ju s t has to be b u llis h ’— b e tte r p re p are fo r th e e v il d a y t h a t is com ing. ‘ ‘ Y ou c a n ’t set aside n a tu ra l laws. ‘ ‘ Y ou c a n ’t eat your pie and have it, too. ‘ ‘You c a n ’t w aste and not w ant. ‘ ‘ Y ou c a n ’t go on a spree w ith o u t a h e ad ache follow ing. ‘ ‘ Y ou c a n ’t d an ce w ith o u t p a y in g th e fiddler. ‘ ‘ You c a n ’t be a p ro d ig al w ith o u t com ing to w ant. ‘ ‘Y ou c a n ’t be S a n ta Claus too o ften w ith o u t spoiling some kids. ‘ ‘ You c a n ’t p lay w ith fire and n o t get burned. ‘ ‘ You c a n ’t fool all the people all the tim e. ‘ ‘ ‘ Be not deceived, God is n o t mocked. W h a tso e v e r a m an sow eth t h a t sh all be also reap. ’ ‘ ‘ Look out, you B ullish B ulls, the tim e of dehorning is ju s t aro u n d the corner. I f your financial blood is too th in you will bleed to death. ’ ’ D r . E . C. J tjnger, President, Soldier Valley Savings Bank, Soldier, Iowa. FIC6 CONSOLIDATED DEBENTURES a re Prime Short Term Issues ¿or ctmedtmetti C on solidated ¿die £cwd& D ebe nt ures of the Federal intermediate credit banks offer excellent media for employment of large cash balances. Issued monthly in maturities from 6 to 12 months and denominations from $5,000 to $100,000, they are available regularly through recognized dealers DEAR EDITOR and dealer banks. Eligible as security for most fiduciary, (C ontinued from page 9) trust and public funds, these debentures are authorized th e rig h t tra c k in seeking to ren d er a w o rth while service, fo r, as you have p o in ted out, the p rin c ip a l criticism by th e co u n try b an k ers a p p ea rs to be th a t they do not see enough o f us in these days of m an power sh o rtag e an d g re a tly re stric te d tr a v el. T his should certain ly m ean th a t co rre spondent b a n k re la tio n sh ip benefits both p a rties. ‘ ‘ S urveys of th is ty p e are of value to the b a n k in g f r a te r n ity a n d serve to im press re ad e rs w ith th e value o f th e N orth w e st er n B a n k er . ” G ilbert H . P e r k in s , Vice under the Federal Farm Loan Act, as amended. They are legal investment for savings banks and insurance companies in various states, besides enjoying exemption from all state, municipal and local taxes. THE FEDERAL INTERMEDIATE CREDIT BANKS Requests for supplemental information regarding President, Chemical B ank SiTrust Company, New York City, N ew York. these seasoned issues should be addressed to: CHARLES R. DUNN, Fiscal A gent "Look Out, You Bullish Bulls" " J u s t a little ‘ I o b je c t’ to one of your c o n trib u to r ’s views th a t should n o t be news to anyone in business a fte r W orld W a r I. T his c o n trib u to r says, ‘ P eace or th e news of p eace ju s t h a s to be b u llish . ’ I th in k th a t is all Bull. O L R 50»h YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 31 NASSAU STREET * NEW YORK 5, N. Y. ☆ ☆ N orth w estern Banker August 19^5 36 W H A T DO Y O U TH IN K? (C ontinued from page 7) THOMSON & McKin n o n STOCKS • BONDS COMMODITIES 216-218 Empire Bldg, DES M O IN E S Phone 4-2127 I l W a ll S t r e e t , N ew Y o r k 231 S. L a S a lle S t., C h ic a g o B r a n c h e s in 34 C itie s Write for our weekly Stock Survey D IR E C T P R I V A T E W I R E Lâverne M. Barlow M anager M e m b e rs N ew Y o r k S to c k E x c h a n g e a n d o th e r p rin c ip a l e x c h a n g e s in circulation because it has a financ ing program of its ow n to carry th ro u g h .” R. A. Cihak, cashier, Comm ercial S tate Bank, W agner, South Dakota: “I th in k th a t located as we are in a stric tly ag ricu ltu ral com m unity and subject to crop failures, our deposits depend m ore on our ability to raise crops th a n th e w ar in th e Pacific. H ow ever, our deposits w ould tend to decrease about 25 p er cent if re stric tions w ere rem oved and m erchandise, especially farm pow er m achinery w ere available to purchase. T his is in our ow n case. I w ould th in k th a t in an in d u strial center, th e effect w ould be th e opposite of ours.” bank deposits w ill increase a fter we have b eaten th e Japs. Deposit totals w ill continue upw ard for a few years. “It is tru e th a t the p rim ary cause of increase in deposits has been th e w ar economy. I feel, how ever, th a t th ere w ill be a stro n g dem and for our com m odities for tw o or th ree y ears w hich in tu rn w ill cause strong prices and increased deposits.” Procedures in "Inventory Financing" “In v en to ry F in an cin g ” is the nam e of a v ery in te re stin g book w hich has ju st been published by th e L aw rence W arehouse Company, 72 W all Street, New York. L. C. R um m ells, cashier, F irst S tate B ank, W est B ranch, Iowa: “I th in k L O U IS B E N O IS T P u b lis h e s B o o k on W a r e h o u s in g In the forew ord of th e book it says: “ ‘In v en to ry F in an cin g ’ seem s to offer b anking one of its g reatest o p portuni ties for new, safe, profitable loan vol um e. A nd as any serious a ttem p t at in v en to ry financing will, preponder- Our Warehouse Receipts Provide the Soundest Foundation for All Inventory Loans C o n s u lta ti o n serv ice is fre e to b a n k s . A d d r e s s in q u ir ie s to o u r n e a r e s t office. ST. PAUL TERMINAL WAREHOUSE CO. Experienced and Responsible Operators of Field Warehouses 515 Io w a Des M o in e s N a t ’1 B a n k B ld g ., Des M o in e s, Io w a St. Paul N orth w estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Minneapolis August Î945 Milwaukee Chicago Indianapolis Detroit OUR 5 0 th YEAR .37 . A» W i* of0*"- / îi/ o ^ o f « " ** : --- Are Y ou ? T o d a y th e veteran s of our Euro p ean v icto ries are sa ilin g to final trium ph in th e P a cific! M ean w h ile patriotic A m erican in d u s tr ia l le a d e r s are f o l l o w i n g a f u ll- s p e e d - a h e a d p r o g r a m to h asten p ea ce through th e Payroll S a v in g s Plan! From coast to coast, veteran B on d salesm en — and w o m en — w h o put over the M igh ty 7th , are o n ce more m ustered into ser v ic e for p lan tw id e se le c tiv e re s o lic ita tio n c a m p a ig n s. T h e se sp ecia l efforts to keep em p loyee B ond b u yin g at a m axim um are d irected toward tw o major o b jectives: A To h o ld every n ew 7 th War Loan subscriber on the Pay r o ll S a v in g s P la n b o o k s — m a in ta in in g a n d , w h e r e v e r p o s s ib le , in c r e a sin g p resen t B ond allotm ents. R To co n v in c e all regular sub scribers w h o recen tly stepp ed up their B ond buyin g, of the m any advantages of con tin u in g on th is foresighted , extraB onds-for-the-future basis. Back up our fig h tin g m en w ho h ave w on on e war— and w ill w in another. U se se le c tiv e reso lici tation to m ake your P ayroll S a v in g s P lan m ore effec tiv e— put a tighter rein on inflationary ten d e n c ie s— b u ild p eacetim e pros perity. T h e T reasury D ep a rtm en t acknow ledges w ith appreciation the publication o f this message by N O R TH W ESTER N BANKER •k T h is is a n official U. S. T reasury advertisem ent prepared u n d e r the auspices o f the T reasury D ep a rtm en t a n d W a r A d v e rtisin g C ouncil O U R 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orth w e stern Banker ★ August I9'i5 38 antly, involve th e use of field w a re house receipts, we have felt it m ost tim ely and constru ctiv e to p re se n t to bank loan officers th e in form ation w hich we have accum ulated d u rin g m any y ears of v ery close contact w ith th e ban k in g business in connection w ith in v en to ry financing.” The booklet is b eau tifu lly illu stra te d w ith th re e colored draw ings and if you have not received y o u r copy we are sure th a t you can get one by w ritin g to e ith e r L ouis B enoist, president, or R. L. Gordon, vice p resid en t of L aw rence W arehouse Com pany. BROADWAY A B O U T BANKERS YOU KNOW (C ontinued from page 19) R andolph Macon College at A shland, V irginia. On May 19, 1917, he m arried L orna Doone Carr. T hey have no children. He began his b an king business w ith th e M echanics A m erican N ational B ank of St. Louis in 1905, and w as as sista n t cashier from 1913 to 1919; vice p resid en t of th e F irst N ational Bank, St. Louis, 1919; vice president, Conti n en tal and Com m ercial N ational Bank, Chicago, 1920; vice p resident Conti n en tal N ational B ank and T ru st Com pany (consolidation of C ontinental and AND In th e b anking and business world, he is a d irector of th e C ontinental Illi nois N ational B ank and T ru st Com pany of Chicago; C ontinental Illinois Safe Deposit Company; A rm our and Company; Elgin, Jo liet & E a ste rn R ail way; In tern atio n al H arv ester Com pany; and a m em ber of th e advisory com m ittee of th e Chicago Loan Agency of R econstruction F inance C orpora tion. OLIVE S T . L O U IS 2, MISSOURI Statement of Condition, June 30, 1945 RESOURCES Cash and Due from B an k s........................................................... U. S. G overnm ent S ecu rities....................................................... (Including those p led ged $57,061,259.80) Other Bonds and S ecu rities....................................................... F ederal R eserve Bank S tock ....................................................... Loans and D iscoun ts...................................................................... Customers' Liability on A ccep tan ces and Letters of Credit Real Estate .................................................................................. Accrued Earnings R eceivab le (N et).................................. O verdrafts .................................................................................... Other R esources ......................................................................... Com m ercial N ational B ank and Conti nen tal and Com m ercial T ru st and Sav ings B ank), 1927; elected executive vice p resid en t of th e C ontinental N a tional Com pany 1928; continued to hold sam e office in C ontinental Illinois Com pany (union of C ontinental N ational Com pany and bond d ep artm en t of Illi nois M erchants T ru st C om pany), 1929; assistan t to ch airm an of th e board of C ontinental Illinois B ank and T ru st Com pany and C ontinental Illinois Company, 1930; presid en t C ontinental Illinois B ank and T ru st Com pany (now C ontinental Illinois N ational B ank and T ru st C om pany), 1930; p resi d en t C ontinental Illinois Company 1932, u n til final papers of dissolution w ere filed in 1939. $ 47,497,244.91 111,123,272.56 10,868,147.02 300,000.00 55,098,838.89 222,379.46 424,182.69 500,666.98 39,809.56 46,416.34 $226,120,958.41 LIABILITIES Capital ...........................................................................................................$ 6,000,000.00 Surplus and U ndivided Profits............................................................. 5,076,952.58 D ividends declared , p a y a b le A ugust 1 and N ovem ber 1, 1945 240,000.00 Accrued Interest, E xp en ses and Taxes P a y a b le (Net) and Other R eserves .................................................................................... 1,724,312.74 A cceptan ces and Letters of C redit..................................................... 222,379.46 Other Liabilities ......................................................................................... 175,063.08 Deposits: U. S. Governm ent and Other Public F u n d s.......................................$ 41,701,945.58 Other D eposits .................................................... 170,980,304.97 212.682,250.55 The unselfish cooperation w hich Mr. Leavell has alw ays given to th e affairs of civic organizations of Chicago is indicated by th e fact th a t he is an active m em ber of th e board of direc to rs of the Chicago C hapter A m erican Red Cross; Salvation Arm y; m en ’s board of directors of th e P assav an t M em orial H ospital; a tru stee of N o rth w estern U niversity, serving as a m em ber of th e developm ent com m ittee, properties com m ittee, audit com m ittee, and executive com m ittee and N o rth w estern U niversity Associates. He is on th e advisory council of th e Chicago C om m unity T rust; advisory board, Bond Club of Chicago; N ewcom en So ciety; m em ber of the executive board and tre a su re r of th e Chicago C hapter of N ational F oundation for In fantile Paralysis; and tre a su re r of th e Com m u n ity and W ar F u n d of M etropolitan Chicago, Incorporated. He is a m em ber of th e Bond Club of Chicago; B ankers Club of Chicago; Chi cago Club; Comm ercial Club, Boston Club of New Orleans, Louisiana; and P hi Delta T heta fratern ity , and attends th e M ethodist church. $226,120,958.41 S t u c k H is N e c k O u t M em b er F e d e r a l D ep o sit In su ra n ce C orporation N orth w estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19^5 The g reat big b eautifu l car drew up to the curb near w here th e cute little w orking girl w as w aitin g for a bus, and a gentlem an stuck his neck out and said: “Hello, Pm driving w est.” “How w onderful,” said th e girl, “brin g me back an orange.” OUR 5 0 th YEAR N ORDER to m ain tain th e stab ility of su lt in an increase in th e dollar re By W . F. Poorman ' com panies, actu aries m u st be pessiq u irem en t of retire d persons. I w ould Vice President and A ctuary ■m ists. I th in k you have all heard reason from th is that the sale of life C e ntral Life Assurance Society th e sto ry of th e ag en t w ho w as in com in surance in the future w ill be very Des Moines p etitio n and called th e a c tu a ry of his good, as the person w ho p reviously com pany for help. The a ctu ary in thou ght that $5,000 w as enough, w ill form ed th e ag en t in stric t confidence be in clined to purchase $10,000. th a t a t th e end of th e y ear th e ir divi The cost of life insurance, like all dend scale w as to be increased 10 per Gaul, can be conveniently divided into cent, to w hich th e agent replied, “Oh, th ree p arts, nam ely, (1) expenses, (2) you w ill have to do m ore th a n th at, I m ortality, and (3) in terest. have alread y increased it 50 p er cent.” W ith respect to exp en ses, it seem s W e shall consider th e fu tu re of th e to me th a t ex p en ses may tend to in life in su ran ce business and p a rtic u crease but the average size policy larly as to how it m ay be affected by should also tend to in crease w h ich w ill th e c u rre n t low in te re s t rates and m ake but little difference in the cost probable decrease in th e p u rch asin g per thousand. pow er of m oney. W ith respect to m ortality, it w ould F irs t I th in k w e can consider the seem to me th a t m ortality w ill prob probable fu tu re n atio n al incom e. T his ably tend to im prove although certain is v itally im p o rta n t in b oth th e sale ly at th e younger ages it cannot im and th e p ersisten cy of life insurance. prove m uch m ore. I th in k th a t u n W e all know w h a t happ en ed to in s u r questionably th e expectation of life, ance in th e depression of th e early w hich I m ust h asten to add m eans lit 30’s w hen th e n atio n al incom e dropped tle to actuaries since th ey m ust con to appro x im ately 40 billion dollars a sider th e y ear in w hich death occurs, year. Most econom ists are agreed th a t w ill be lengthened. th e n atio n al b udget can n o t be less th a n Our p resen t serious problem is the 20 billion dollars a y e a r a fte r th e w ar, ra te of in terest. and I have h eard of estim ates of 25 billion p er year. W hen we add to th is I th in k we should first consider the th e appro x im ate 10 billion a y ear col ra te of in te re st on c u rre n t investm ents lected by states, counties and m unici since th e rate earned by the com panies W . F. P O O R M A N palities, w e find th a t we are confronted “ . . . A c tu a r ie s m u st b e p e s s im is t s ” w ill ten d to th is rate, provided, of w ith a fu tu re a n n u al tax b u rd en of course, th a t in th e m eantim e th ere is som ew here b etw een 30 and 35 billion no change. . If we assum e th a t th e dollars p er year. M any people feel th a t th e N ational A dm inistration w ill com panies’ d istrib u tio n of in v estm en ts th at a nation cannot stand over an in tak e all possible steps to see th a t the is th e sam e as for the forty-nine larg definite period a tax burden of as m uch national incom e stays above th is sum, est com panies as of D ecem ber 31, 1944, as 25 per cen t of the n ation al incom e. and if this is done it seem s to me, as we find th a t th e c u rre n t n et effective If th is be true it is apparent that the a people, we w ill be handling m ore ra te of in terest, ignoring capital gains national incom e m ust exceed 120 b il dollars. In o th er words, a p air of or losses, is not in excess of 2.6 per lion dollars per year or w e are in trou shoes instead of costing $5.00 w ill cost, cent and probably n earer 2.5 per cent. ble. I th in k th e re is no q uestion b u t let us say, $7.50, and w ill likew ise re P erso n ally it seem s to me th a t this 1. “M a n y p e o p l e f e e l th a t a nation c an n ot sta n d o ve r an in d efin ite p e r i o d a ta x b u rd e n o f as m uch as 25 p e r cen t of th e n a tio n a l in com e. Tf th is be tru e it is a p p a r e n t th a t th e n a tio n a l in c o m e m u st e x c e e d 120 b illio n s of d o lla r s p e r y e a r or ive are in t r o u b l e ” 2. “ W i t h r e s p e c t to life in surance expenses, it se em s to m e th a t e x p e n s es m a y te n d to increase w h ic h w i ll m a k e O UR 5 0 th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis b u t little diffe re n c e in th e cost p e r th o u s a n d . ” th e re tu rn of b u ild in g a c tiv ity , I d o u b t th a t m ortgages w ill y i e l d a n et effective rate m u ch in excess of 3.25 3. “I t is m y o p in io n th a t in th e p e r ce n t.” r e la tiv e ly near fu tu r e th e h ighest gra d e pu blic u tilities, w h ic h now 4. “T h e p u b l i c w i ll co n tin u e to b u y y i e l d 2.58 p e r ce n t c o u ld ea s ily d r o p high p r e m i u m in surance so long as to a y i e l d of 2.40 p e r cen t or 2.35 p e r th e rate e a r n e d b y th e c o m p a n ie s is cent. in excess of th e m a r k e t rate for se cu rities of sim ila r sa fe ty .” T h e sa m e c o u ld be tru e w i th in d u stria l a n d railroads. Even w ith N o rth w e stern Banker August 1945 40 c u rre n t rate, low as it m ay seem, m ay ten d even low er since in te re st ten d s to th e ra te of long te rm govern m en t bonds freely m arketable. It is m y opinion th at in the relatively near fu ture the h ig h est grade public u tilities, M ERCHANTS MUTUAL BONDING COM PANY Incorporated 1933 H o m e Office SOUTHERN SURETY BUILDING Des M oines, Iowa • This is Iowa’s oldest surety company. A progressive company with experi enced, conservative management. W e are p ro u d o f ou r h u n d red and fifty b an k a g en ts in Iow a. To be the exclusive representative of this company is an asset to your bank. Write to E. H. W ARNER Secretary and Manager w h ich now yield 2.58 per cent, could easily drop to a yield of 2.40 per cent or 2.35 per cent. The sam e could be true w ith in du strials and railroads. E v e n w ith th e return of b uildin g a ctiv ity, I doubt th at m ortgages w ill yield a n et effective rate m uch in ex cess of 3 H per cent. T his th o u g h t is based on th e fact th a t th e F ed eral L and B ank is now authorized to m ake farm loans of 65 p er cent of norm al value as com pared w ith th e previous 50 p er cent. T hese loans are 4 p er cent n et to th e borrow er. L ikew ise I feel th a t hous ing loans w ill continue to be m ade by th e F ed eral Home A d m inistration and if th e loans are n ot purchased at least at p a r by investors generally th ey w ill be purchased by some agency of the governm ent, ju st as w as tru e p rio r to th e w ar. If th is be logical it w ould seem th a t th e probable decrease in the ra te of corporate bonds m ay m ore th a n offset any possible increase from m o rt gages. I do not w ish to be an alarm ist since th e n et c u rre n t rate of in te re st w ill not be experienced by life com panies for several y ears and m any th in g s can h ap p en w ith in th a t tim e. I do feel th a t as far as th e foreseeable fu tu re is con cerned th a t th e n et in te re st earnings of life com panies w ill ten d dow nw ard. T his w ould likew ise be tru e for some tim e even if in te re st ra te s should s ta rt u p w ard tom orrow (and rates are still falling) since life insu ran ce com panies hold m any in v estm en ts m ade y ears ago and w hich cannot be refunded u n der th e ir term s to th e c u rre n t low er ra te s u n til m atu rity . The rate of in te re st earned by life com panies alw ays lags far behind th e general m ark et rate Insurance Agents— f :: Here’s Another Business Builder* H ave you w an ted an autom obile p olicy all w rap p ed up in one easy-to-sell p ack age? A sin gle premium p olicy that's low-in-cost but high in the com plete co v era g e offered INVESTIGATE ALLIED MUTUAL’S SINGLE PR EM IU M P O L IC Y Takes care of Bodily Injury, Property D am age, M edical P aym ents, C om prehensive, and one of various types of Collision co v era g e . . . all in one simple-to-write co v era g e. Cost is low . This n on -assessab le protection is b ack ed b y A llied's fam ous claim settlem ent policy. Investigate. A L L I E D M U T U A L CASUALTY COMPANY Harold S. Evans, Hubbell Building N orth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1945 P resid en t Des Moines, low o T F in d C orp oral J o n e s, th a t ex -r e a l e s ta te s a le s m a n , and b rin g h im to m e! eith er in an increasing or decreasing m arket. You w ill probably ask how does this affect old business upon th e books guaran teein g a h ig h er ra te of in terest. In terest, as we have seen, is only one elem ent in th e determ in atio n of the cost of life insurance, and p articu larly is th is tru e of prem ium paying policies. F u lly paid policies p resen t m ore of a problem since th e loading is elim inated b u t th e expense largely continues and th e gain from m o rtality can be m ore th a n offset by th e loss in in terest. I feel t h a t p articip atin g com panies should be settin g aside a p o rtion of th e earnings upon th is business a t th is tim e to m ake up for th e probable defi cits of th e fu ture. T his accum ulation should take into account not only th e life in su ran ce itself, b u t also th e g u a r anteed options contained in th e poli cies. To Illustrate h ow fu lly p o licy holders and beneficiaries are availin g th em selv es of th ese guaranteed options it is in terestin g to note th a t in 1929 8.53 per cent of the proceeds of the p olicies w ere left w ith the C entral L ife under the settlem en t options, w h ereas in 1940, 27.62 per cent w ere left, and in 1944, 38.95 per cent. T his problem is also em phasized by th e fact th a t should th e ra te of in te re st in th e fu tu re on in v estm en ts of equal security rise above th a t w hich th e com panies are able to pay, large sum s w ould u n questionably be w ith d raw n for in v est m ent elsew here. F o r th is reason it w ould seem th a t th e com panies should stay relativ ely liquid to m eet th is pos sible dem and for cash w hich w ill tend to fu rth e r depress th e ra te of in te re st earned. As to w h at action should be tak en w ith reg ard to th e rates and values for new business, it seem s to me th e fol low ing is ra th e r indicated— (1) as re spects expense, a provision for approx im ately th e sam e expenses as we have a t th is tim e; (2) w ith respect to th e m o rtality assum ption, it is m y feeling th a t th e com m issioners stan d ard ordi n ary table should be used ra th e r th a n O U R 5 0 th YEAR 41 the A m erican experience table of m or tality . The adoption of a c u rre n t m or tality table w ill have little, if any, ef fect upon th e cost of insurance. On th e o th e r hand, th e public feels th a t th e life com panies are charg in g m ore for in su ran ce th a n th e y should because of th e use of an an tiq u ated m o rtality table re su ltin g in a low ratio of actu al to expected m ortality, not know ing th a t th e actu aries h ad ta k e n th is into account in com puting prem iu m s and dividends. (3) As to th e in te re st as sum ption, if m y conclusions w ith re spect to th e fu tu re in te re st ra te are cor rect, it w ould seem th a t a ra te as high as 2V2 p e r cent in te re s t could be safely assum ed, b u t if th e com panies are to follow th e ir tra d itio n a l policy of con servation, 2 p e r cent w ould seem m ore in line, and p a rtic u la rly so if a c u rre n t m o rtality table is used. F o r exam ple, th e C. S. O. 2 p e r cent n e t prem iu m s app ro x im ate those of th e A m erican E xperien ce 2V2 p e r cent. In an y te st of u ltim ate solvency th e actu al incom e of th e com pany is th e im p o rta n t th in g ra th e r th a n th e refinem ents in com pu tatio n . You w ill ask at once w h a t w ill be th e effect of reducing th e in te re st assum ption, and p a rtic u la rly th e effect upon th e cost of in su ran ce to policy holders. O bviously if a low er ra te of in te re st is assum ed to be earned upon th e reserves, p rem iu m ra te s m u st in crease, and p a rtic u la rly is th is tru e for lim ited p ay m en t life policies. Of course cash su rre n d e r v alues w ill be increased. The dividends to be paid upon policies depend upon th e ex p eri ence of th e com pany and should th e assu m p tio n be too conservative, a h ig h er dividend th a n w ould otherw ise have been contem plated w ould resu lt, and if th e experience is w orse th a n expected th e dividends lower. So, in a com pany w ith adequate p rem iu m ra te s (if th e p rem iu m ra te s in th e aggregate w ere too low th e com pany w ould obviously becom e insolvent) it m akes no differ ence to policyholders as a group so long as prem iu m s are adequate. In conclusion it is m y feeling (1) th a t com panies g en erally w ill adopt policies w ith a low er in te re st assu m p tion and p robably w ith th e com m is sioners S tandard ord in ary table since m any states have m ade th e adoption of such a table m andatory in 1948; (2) that the public w ill con tinu e to buy high prem ium in surance so lon g as the rate earned by the com panies is in ex cess of the m arket rate for se cu rities of sim ilar safety; (3) th a t w h en th e m ark et ra te on conservative securities exceeds th a t earned by th e com panies th e tendency w ill be to p u r chase ord in ary life, double protection, fam ily income, etc. You w ill note th a t for th e last th ree or four y ears little has been said to th e effect th a t the public should buy decreasing te rm in su rance and in v est th e ir funds else w here. (4) As to th e cost of insurance to th e public, it m akes no difference w h a t prem ium rates are adopted so long as th ey are adequate since th e cost is adjusted back by m eans of divi dends depending upon th e experience of th e com pany. (5) W hile a change in th e reserv e basis generally w ill a t tra c t considerable public a tten tio n the m a tte r is afte r all technical and made to m ain tain th e safety of th e com pany and has, in and of itself, no real effect on th e real cost of insu ran ce to policy holders. "S O M E O N E SH O U LD SIN G O U R PRAISES" (C ontinued from page 14) one of those m asters of prose to w rite a kind w ord in our behalf—a w ord th a t w ould lend credence to our own claim s? H ave we done no th in g im p o rta n t enough to ju stify a favorable occasional com m ent by those w riters w ho daily fill our papers w ith strip s on every subject b u t our own? Is o u r business so u tte rly devoid of h u m an in te re st th a t nothing can be w ritte n to our credit in m agazines in g eneral circulation? W ould it stra in th e bonds of m odesty for us, individu ally and collectively th ro u g h our v a ri ous associations, to p resen t such facts as w ould be new s of general in te re st to such publications as are available? The correct solution of problem s re lated to these questions could only re su lt in a b etter inform ed public, bet- A new Sickness Policy for Bankers pays $25.00 to $50.00 per week and no reduction in the weekly rate for non-confinement. All diseases covered at the m axim um rate. PROTECT and SAVE! These must be the American watchwords today and tomor row. We want to assist you in providing adequate protec tion for your clients. Let us show you our plan of complete insurance protection for dwelling and mercantile risks as well as all classes of automobile insurance. We also offer Plate Glass Insurance coverage. To round out your program of protection and savings for your clients, write us today. WESTER! Ill IT II FireInnran»(limpany 81,00 pays for insurance in full to th e 15th of next Septem ber. W R ITE FO R A PPLIC A TIO N AND DETAILS. MINNESOTA COMMERCIAL MENS ASSOCIATION 2550 Pillsbury Ave. Minneapolis 4, Minn. NINTH & GRAND OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis DES MOINES 8, IOWA N orth w e stern Banker August 19^5 42 y te r bank custom ers and perh ap s a hig h er esteem for th e profession. And unless and u n til the o th er 99 plus p er cent of our population can h ear our praises sung in th ird person, we m ust rem ain relegated to a place in th e subdued light of sem i-respect ability and no am ount of self-praise w ill alter th a t fact. > A C O U N T R Y BANK IS A PUBLIC UTILITY (C ontinued from page 15) 'acilities J acts’ ‘'°"W‘ IS o n -th e -g ro u n a k n ° ^ ne5S,in d u s tr y , a g - c « ^ ^ COntaCtSW,t,0' M ^ ^ R e sp o n d e n t . ^ . „ „ U . O n 'o n g V , your s e r v i c e - and a W s out tin s state. v e in m any « a y s th at g ^ of m ere ro u tin e the usual lunU . BANKS R y Ice-President &n 0 ic h a r d efficiency V 4 DIVISION G eorge T . CAMWOX - ^ i b eyon d debtedness and is now n ettin g from th is farm approxim ately $10,000 per year. The b ank has consistently encour aged in every w ay possible cattle ra is ing and dairying, catering only to highbreed type of beef and dairy cattle. It is not necessary to say th a t these are “going” concerns and m aking good in th e ir lines. So it is to be seen th a t th e resu lts achieved by th e B ank of B lountsville are not a hap h azard thing. It is b ro u g h t about by h a rd w ork and the applica tion of the idea th a t a b an k is a “pub lic u tility ” using its good offices for th e increase of th e p ro ductivity of th e individual and th e com m unity. The grow th of th e ban k follows as a n atu ra l result. 3- LavVI-ES v ic e .president y ^ .P re sid e n t n n , Ab o A . H A ^ - ^ - Declare Dividend T he directors of F irs t B ank Stock C orporation at th e ir m eeting last m onth declared a sem i-annual dividend of 40c p er share on th e capital stock of th e corporation, payable Septem ber 10, 1945 to stockholders of record at the close of business A ugust 17, 1945. This am ounts to $1,132,475.20 A dividend of 35c p er share, am ounting to $990,915.80, w as paid to its stockholders on M arch 12, 1945. The seventy-tw o b an k affiliates of F irs t B ank Stock C orporation had com bined n et operatin g earnings for the first half of 1945 aggregating $2,906,537. * * Substantial Gain FIRST WISCONSIN NATIONAL BANK OF MILWADKEE • W i s c o n s i n ’s Bank f o r Banks MEMBER FEDERAL o rth w e ster n Banker Digitized forNFRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis DEPOSIT August 1945 INSURANCE CORPORATION A su b stan tial gain in deposits and U nited S tates G overnm ent securities w ith o th er classifications holding about steady is show n in California B ank’s m id-year statem en t of condition w hich lists deposits at $427,126,727, a gain of about $19,000,000 since th e first of th e year. U nited States G overnm ent securities now stan d at $295,000,000 as com pared w ith $269,000,000 at th e beginning of th e y ear and to tal resources are up from $422,440,244 to $442,128,349. L oans increased slightly since th e first of th e year, m oving up from $53,226,468 to $54,411,953. OUR 50th YEAR 7* * K 43 Bank, M oorehead, president; Jo h n Score, cashier, V ergas State Bank, Vergas, treasu rer. D irectors are, H. E. Swenson, vicé presid en t and assistan t cashier, F irs t N ational B ank of F erg u s Falls, for O tter Tail; L aw rence Paulson, p resi dent, F a rm e rs S tate B ank of R othsay for W ilkin; and D. G. Johnson, cashier, F irs t N ational B ank of H aw ley for Clay. M IN N E S O T A NEW S G E O R G E A . B E IT O P r e sid e n t G on vick W IL L IA M D U N C A N , J r. S ecreta ry M in n ea p o lis Buy Bank Interests L. J. H in to n and B. J. D allm an, stock holders in th e People’s S tate B ank, T ru m an , M innesota, p u rch ased th e controlling in te re st of th e A. L. W ard estate in th e T ru m a n N ational B ank there. B oth b an k s w ill continue to operate for th e tim e being. It is in tim ated th a t ev en tu ally th e b an k s w ill consolidate u n d e r one organization. R. L. K rause, cashier of th e T ru m an N ational B ank will continue as an offi cer in w hich ev er b ank rem ains. The T ru m an N ational B ank w as o r ganized by A. L. W ard in 1902. P re se n t officers are G. M. Seaberg, president; R. G. V andrey, vice president; R. L. K rause, cashier, and Lucille Luckow , a ssista n t cashier. Heads Bankers Association Guy Bacon, p resid en t of th e E m pire S tate B ank of Cottonwood, M innesota, w as elected to th e p residency of th e W est C entral B ankers A ssociation at th e an n u al m eeting of th a t group held at M ontevideo. O ther officers are W. A. G ru n ert, cashier, S ecurity N ational Bank, M ontevideo, vice president; and A. E. A rntzen, president, F a rm e rs and M erchants S tate Bank, A ppleton, secre tary -tre a su rer. Propose Bank at Ogilvie A pplication has been m ade for a new state b an k for Ogilvie, M innesota. A h ea rin g w as held before th e state b a n k ing com m ission in St. P au l last m onth on th e question of g ra n tin g a c h a rte r for the p urposed financial in stitu tio n . A t one tim e Ogilvie had tw o banks. The depression p u t both out of busi ness. L ater an o th er b ank w as started b u t after operating a few y ears w as liquidated, leaving th e city w ith o u t ban k ing facilities. Crookston Cashier D onald T. L aw ler has tak en up his d uties as cashier of th e C rookston T ru st Company, Crookston, M innesota. A g raduate of R utgers grad u ate school of b an king of th e A m erican B anking A ssociation, New B runsw ick, New J e r sey, he has w orked for ten y ears at the S ecurity N ational Bank, F arib au lt, and eight y ears as cashier of th e Iowa T ru st and Savings Bank, E stherville, Iowa. Assistant Trust Officer A nnouncem ent w as m ade last m onth of th e election of M orris S. K nudsen as a ssistan t tru s t officer in th e tru s t d ep artm en t of F irs t and A m erican N a tional Bank, D uluth, M innesota. Mr. K nudsen has been a m em ber of the F irs t and A m erican staff since 1925, and has been active in th e D uluth chap te r of th e A m erican In stitu te of B ank ing. Clearing House Officers The P a rk Region Clearing House A ssociation m et last m onth at D etroit Lakes, M innesota. T his association em braces th e banks of O tter Tail, Clay, B ecker and W ilkin counties. Officers for the ensuing y ear w ere elected as follows: O. M. Alme, cashier, A m erican State Oakland Bank Changes Hands A. L. L eraas of M inneapolis, fo rm er ly of R ochester, has purchased th e con tro llin g in te re st in th e State B ank of Oakland, M innesota, from A lfred Christopherson and A rt Sorenson of A lbert Lea and Oakland, respectively. Mr. L eraas, w ho w as a form er ap p raiser w ith th e F ederal L and Bank, has been field supervisor of th e E. C. F. L. O. of th e farm credit ad m in istra tio n for th e past 10 years and loan rep resen tativ e of th e regional a g ri c u ltu ral credit corporation for th e 14 so u th eastern M innesota counties w hich include F reeb o rn and M ower counties. Takes Montana Post E. W. Simmet, w ho has been a teller at th e F irs t N ational B ank in M ankato, M innesota, since December, 1943, has been appointed a ssistan t cashier at the F irs t N ational B ank in Glendive, Mon tana. Named President A. J. Kane, form er cashier of The F irs t N ational B ank of B rew ster, Min nesota, w as elected p resid en t of th a t b an k at a m eeting of the board of di rectors called to re-nam e officers caused by th e recen t death of Adam Bauchle, th e b a n k ’s p resident since it w as or ganized in F e b ru a ry of 1917. P. W. Doeden w ill continue in his office as vice president. W. G. Quarnstrom w as elected cashier and director, and F red K oster, a ssistan t cashier. The board of directors now is com posed of A. J. Kane, P. W. Doeden, W. G. Q uarnstrom , L. E. Johnson, F. P. H aberm an, A llan C. Severson, all of B rew ster, and E. W. K ane of W o rth ington. S carborough ¿ C ompany i First N ational Bank Building, C hicago OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis '? H lftM ic ïà H orace A. Smith, Iow a R epresentative D es M oines, Iow a N o rth w e stern Banker August 19^5 44 -• Becomes County Auditor F. G. H aag, a ssista n t cashier, F irs t N ational B ank of B audette, B audette, M innesota, resigned recen tly to tak e an ap p o in tm en t as county auditor, L ake of th e W oods county. H e h ad been w ith th e F irs t N ational B ank of B audette since Ju ly 1924. Pay Account in Full T he F irs t N ational B ank, Alden, M innesota, is paying th e ir te n th 10 p er cent D epositors T ru st dividend at th is tim e, w hich rep resen ts a 100 p er M I N N E S O T A NEWS cent p aym ent to th e ir depositors. “It has been a long grind, b u t we have ac com plished our aim of paying this ac count in full,” said J. F. Greeley, cash ier. New Luverne Officers N ew ly-elected cashier of th e L uverne N ational Bank, L uverne, M innesota, to replace the resigned S. R. H am m er, is G ary P. B aum an, w ho w as assistan t cashier of th e ban k from A pril to De cem ber last year, and since th e n has been associated w ith th e Citizens State • B ank of W aln u t Grove. Mr. B aum an w as the form er cashier of th e E lls w o rth State Bank, E llsw orth, M inne sota, from 1937 to 1944. D uring th e y ear 1942 he w as p resid en t of th e Nobles County B ankers A ssociation. N ew a ssistan t cashier also elected is J. E. Brady, fo rm erly cashier, F irst State Bank, M apleton, Iowa. New Officers Named A. F. W eyer, re tirin g p resid en t of th e M innesota B ankers A ssociation, presided at a clearing-house m eeting, follow ing a d in n er at th e M ankato, M innesota, golf club recently. N ew officers elected at th e m eeting are: Clarence M. B anks, p resid en t of the S tate B ank of V ernon Center, p resi dent; L eonard Nelson, cashier of th e F arm ers S tate B ank of H untley, vice president; and H. E. Glaeser, cashier of th e F irs t N ational B ank of Good T h u n der, secretary. Hope for New Bank ILLIONS of dollars are now being sent to Europe by generous Americans to assist needy relatives and friends. Based on experience after the last war, such remit tances will run into hundreds of millions annually—and your bank undoubtedly has customers who will require this service. It is not necessary for you to establish costly connections with foreign countries to render this service. Right here in Chicago, we have the necessary facilities to transmit funds to any country by mail, airmail or cable at a moderate cost. We will supply the necessary forms, bearing the name of only your bank, and keep you fully posted. Why not consult us now? We are ready to serve you. M AM ER ICAN NATIONAL BANK AI MD T R U S T COMPANY OF CHICAGO LA S A L L E S T R E E l ------------------------- t AT W A S H IN G T O N ►tv------------------------ Member federal Deposit O U R B U S I N E S S N orth w estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I August 194-5 Insurance Corporation S T O H E L P B U S I N E S S H eaded by M artin M iller and o th er successful business m en and farm ers of Avoca, M innesota, and com m unity, a new b an k w ill in all probability be established in th a t village if a ch ar te r can be secured. W ork of soliciting pledges for stock has been going on for several w eeks and has m et w ith splendid success, according to Mr. Miller. More th a n one-half of th e necessary am ount re quired has already been subscribed, and Mr. M iller w as hopeful of having the full am ount of $32,500 pledged w ith in a few w eeks. P re se n t plans call for capital of $25,000, su rp lu s of $5,000 and undivided profits of $2,500. T here w ill be no large am ount of stock to any stock holder, Mr. M iller states, it being th e desire of th e p rom oters to have th e stock w ell d istrib u ted in th e trad e te r rito ry of Avoca. Canton Bank Opened The Canton S tate Bank, Canton, Min nesota, w ith a capital of $25,000, w hich w as subscribed by May 1st, opened for business last m onth, th e board of directors announced. C anton has been w ith o u t a ban k since 1929. Officers are Jo h n B. Sills, president; L ester F inney, vice president; B yron W illford, Cyril Snyder and Rev. J. D. W ilson, directors. L aw rence Galligan, form erly a ssistan t cashier at th e Scanlon-H abberstad Bank, Lanesboro, w here he w as em ployed for 27 years, is cashier. S ubscription of capital stock w as al m ost e n tirely from th e com m unity. OUR 5 0 th YEAR 45 T w in C it y N e w s T M. K U LP, w ho for th e last tw o and a h alf y ears h as been associated ♦w ith th e M inneapolis office of th e R eco n stru ctio n F in an ce Corporation, has joined th e F irs t N ational B ank of M inneapolis as m an ag er of th e in sta ll m e n t sales financing division. K ulp w as for four y e a rs w ith G eneral M otors A cceptance C orporation in Iow a and for 14 y ears w ith C om m ercial C redit Company. M arquette N ational B ank of M inne apolis has nam ed P aul W. P etterson its m ortgage loan officer to sup erv ise th e b a n k ’s resid en tial and com m ercial m ortgage activities and th e recen tly established v e te ra n s’ hom e loan divi sion. P e tte rso n has been w ith M ar qu ette N ational since 1930 and is a p ast presid en t of th e M inneapolis ch ap ter of th e A m erican In stitu te of B anking. R. T). Baker, a ssista n t cashier of the F ed eral R eserve B ank of M inneapolis, has resigned to e n te r p riv a te business. He h as becom e a p a rtn e r in th e firm of W ayne and B aker, w holesale b ro k e rs in tu rk e y s and eggs, w ith offices in th e B aker B uilding in M inneapolis. He w as w ith th e F ed eral R eserve nine years. Clarence R. C haney, recen tly elected vice ch airm an of th e board of th e N o rth w e ste rn N ational B ank of M in neapolis, has been re-elected p resid en t of th e M inneapolis Y. M. C. A. The M innehaha N ational Bank of M inneapolis h as com pleted rem odeling of its in terio r, in creasin g its floor space by appro x im ately 1,000 squ are feet. F lu o rescen t ligh tin g fixtures have been installed, co u n ters and fixtures m odernized and new flooring and v e n tila tio n system installed. New booths have been provided for safe deposit custom ers and a d ire c to rs’ room has been provided. O U R 5 0 th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis By E. W . Kieckhefer Special Correspon dent Northwestern Banker A. T. P arson, a ssistan t cashier of the Stock Y ards N ational B ank of South St. Paul, has been prom oted to cashier. Larson, w ho has been w ith th e bank since 1937, had been m ade assistan t cashier in 1941. He has been asso ciated w ith th e ban k in g business since 1917, w ith th e old C apital N ational B ank of St. P aul th ro u g h its m ergers w ith th e M erchants and F irs t N ational B anks and later w ith th e bond d e p a rt m en t of th e F irs t Securities C orpora tion. He w as w ith th e R egional A gri c u ltu ral C redit C orporation from 1932 to 1937. Joseph D. H usbands, vice president and cashier of th e N o rth w estern N a tional B ank of M inneapolis, has been elected to th e board of directors of the F o u rth N o rth w estern N ational Bank. He has been an officer of th e N o rth w e stern since 1930. Clarence E. H ill, w ho w as elected ch airm an of th e board of th e N o rth w estern N ational Bank, also has been elected a d irector of th e N orthw est B ancorporation. Von E. L uscher, w ho re tu rn e d to Banco in Ju ly after service as a m ajor in th e air corps in th e Pacific, w as elected a vice p resid en t of Banco. P re viously he h ad been m anager of the in v estm en t departm ent. A rth u r R. E vans, w ho has been acting m anager of th e in v estm en t departm ent, w as elected m anager. Carl E. V oigt, w ho came to Banco in 1943 afte r em ploym ent in Banco af filiates in South D akota since 1924, w as elected a ssistan t presid en t of th e firm. Et. Col. M. D. A very of St. P au l w ill succeed F rank W. P eck as presid en t of th e F ed eral L and B ank of St. P aul Septem ber 30. Peck has resigned to become m anaging director of th e F arm F oundation w ith h ead q u arters at Chi cago. He form erly w as director of a g ricu ltu ral extension a t the U niver sity of M innesota and w as th e first co operative b ank com m issioner in the F a rm Credit A dm inistration w hich he helped establish in 1933. More Time to Fish Nels M. Nelson, w ho has been asso ciated w ith th e F irs t N ational Bank, W indom , M innesota, for 40 years, re tired from service recently. On th e oc casion of his sixty-fifth b irth d ay a few days before he w as feted at a d in n er given by his co-workers and directors of th e b ank and w as th en presented w ith a purse of $300 by th e b ank force and directors. J am ieson & Company M embers New York Stock Exchange and Other Principal Exchanges ★ STOCKS BONDS COMMODITIES ★ MINNEAPOLIS FARGO ST. PAUL GRAND FORKS DULUTH SIOUX FALLS EAU CLAIRE PRIVATE WIRES N o rth w e stern Banker August 19k5 46 • Bankers Meet Eighty-five ban k ers, m em bers of th e F o u r C ounty C learing H ouse A ssocia tion, com prising D akota, Goodhue, W a basha and Rice counties in M innesota, and including tw enty-five tow ns, a t tended th e an n u al d in n e r m eeting of th e association held at F arib au lt, Officers elected at th e m eeting w ere: F ay Case, p resid en t and cashier, Se c u rity S tate B ank of Cannon Falls, president, succeeding C. E. Caldwell, vice p resident, F irs t N ational B ank of F arm in g to n ; J. J. Jirik , cashier, State B ank of Lonsdale, vice president; MINN ESOT A N E W S * and A. S. F unk, cashier, Security State B ank of H am m ond, secretary -treas u rer. D irectors nam ed w ere H. G. S w an son, St. Paul, from D akota county; E. A. N ordly, Red W ing, from Goodhue county; Clyde Thom as, M azeppa, from W abasha county, and F ra n k Shandorf, D undas, from Rice county. Vice President Elected A t a recen t m eeting of th e board of directors of th e F irs t N ational Bank, A ustin, M innesota, R. F. L ichty w as elected a vice president. Mr. L ichty cam e to th e b ank in J a n uary, 1942, from H um boldt, Iowa, w here he h ad been county agent for th ree years. He w as born and raised on a farm at W aterloo, grad u ated from th e W aterloo high school and th e Iowa S tate college at Ames. In his w ork at th e F irs t N ational B ank he has been pro m in en t in ru ra l and civic affairs. W ith his ag ricu ltu ral background, he has been p a rticu larly active in farm operations. Prizes In connection w ith th e celebration of The B ank of E lk R iv er’s six tieth an n iv ersary recently, a $25 w ar bond w as offered to th e person b rin g in g in th e oldest cancelled check d raw n on th e ban k and a sim ilar bond for the deposit book w ith th e oldest entry. The B ank of E lk River, E lk R iver, M innesota, w as first organized in June, 1885, and has been serving th e com m u n ity since th a t tim e. Take Cashier Post LET’S POOL OUR EXPERIENCE TO BENEFIT YOUR CUSTOMERS B y adding the experience and facilities of 1 this bank to those of your own, you can broaden the service extended your customers. This has been the experience of many of our correspondent banks. For ideas on methods and techniques are freely exchanged, to the benefit of both institutions. Your inquiries are cordially invited. THE NORTHERN TRUST COMPANY 50 S O U T H LA SALLE ST R E E T , C H IC A G O 9 0 , IL L IN O IS M em ber F ederal D eposit Insurance Corporation N o rth w e ste r n Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August Jo h n W. Sands, secretary of th e N o rth w est N ational F a rm Loan as sociation w ith h ead q u arters in W ar ren, M innesota, and lifelong resid en t of A lvarado, has accepted a position as cashier of th e S tate B ank of W arren and took over his new position last m onth. A . F. Myers F u n e ra l services w ere held recently for A. F. M yers, 59, p resid en t of th e N orthfield N ational B ank and T ru st Company, N orthfield, M innesota, w ho died there. Hold Annual Meeting P. E. W ilm s, cashier of th e F irst N ational Bank, Sleepy Eye, M innesota, w as elected vice-president of th e B row n County B ankers A ssociation recently w hen th e ann u al m eeting w as held at Sleepy Eye. George H. V etter, cashier of th e F a rm e rs and M erchants at New Ulm, w as elected president; W illiam E. Comnick, New Ulm, secretary and treasu rer; E. H. Tam s, cashier, Peoples S tate B ank of Comfrey, and A. M. P au l son, a ssistan t cashier, State B ank of H anska, directors. Takes Over Cashiership H arold F. Jesk e came from Lam berton, M innesota, last m onth to tak e over his duties as a cashier at th e W indom S tate Bank, W indom , a position w hich O U R 5 0 th YEAR 47 has been held by A lfred P rech t, w ho now goes to Floodwood, M ichigan. Mr. Jesk e has sp en t m ore th a n tw e n ty y ears in th e b an k in g business. F o r n in eteen y ears Mr. Jesk e w as in th e b an k at Jeffers and th e last two y e a rs have been sp en t in th e sam e w o rk in L am berton. Serves 80 Years The F irs t N ational B ank, one of Red W ing, M innesota’s oldest b u siness in stitu tio n s, recen tly celebrated its 80th a n n iv e rsa ry and special ho n o rs w ere paid A. H. Lidberg, cashier and m em b er of th e board of d irecto rs w ho is ro u n d in g out his 40th y e a r of co n tin uous service w ith th e in stitu tio n . P re se n t officers of th e b an k are Leon J. K aliher, p resident; B. G. F eatherstone, vice p resident; E. C. E rb, E. B. Josephson, E. H. L idberg, C. E. T ripp, to g e th e r w ith Mr. K aliher and A. H. Lidberg, m em bers of th e board of di rectors, and J. C. Johnson, P au l Wintervold, C. L. Skoglund and R u th S w an son, a ssista n t cashiers. President of Association R. A. Bezoier, vice p resid en t and cash ier of th e F irs t N ational B ank of R ochester, M innesota, w as elected p resid en t of th e S o u th ern M innesota Clearing H ouse A ssociation at it a n nu al m eetin g recently. Also elected w ere H ow ard Hill, cash ier, S tate B ank of B row nsdale, vice president; C. B. N ew m an, vice p resi dent, Dodge C enter S tate B ank of Dodge C enter, secretary -treasu rer; and A. H. H aak en so n of A ustin, G. Skogsm a rk of K asson and C larence T alen of E yota, directors. Hills Bank Bought S. O. M ithun, Steen lu m b er and im p lem en t dealer, an d S. R. H am m er, Luv ern e ban k er, announced th a t th e y had p u rch ased th e E xchange S tate B ank a t H ills, M innesota, from Mrs. Mabel G. Edm onds, M arcus, Iowa. T hey took possession last m onth. U nder th e new ow nership, Mr. M it h u n is p resid en t of th e bank, w hile Mr. H am m er is vice p resid en t a n d execu tive officer. A rth u r Johnson, w ho has been a ssista n t cashier, has been ad vanced to cashier. P re se n t cashier of th e H ills b an k is A rt R ortv et, w ho recen tly w as ap pointed by th e county board of com m issioners of Rock county to serve as county v e te ra n s’ service officer. S A V IN G THE SO IL SA VES M O N EY Experience Service Cooperation (C ontinued from page 17) ers and farm im plem ent m an u factu r ers. A statistical sum m ary of th e accom p lish m ents in Iow a d u rin g th e p ast six y ears show s th a t up to Ju n e 1, 1945, 4,700 farm ers have been given assist ance from th e ir respective districts in m ak ing com plete farm conservation plans. M any th o usands of o th er farm ers have th ro u g h educational pro gram s been assisted in establishing soil co nservation practices. In m any coun ties these practices are spreading on th e ir ow n m om entum . F a rm e rs are learn in g from each o th er and are lim ing, fertilizing, im proving pastures, co n touring and establishing grass w a t erw ays on th e ir ow n in itiativ e u n til such tim e as th ey can get assistance in w orking out a com plete farm plan. It is estim ated th a t th e re w ere about 1,000,000 crop acres p lan ted on th e con to u r in 1944. T his should increase ra p idly from y ear to year. A n o th er phase of soil and w ater con serv atio n is th e drainage problem in riv e r bottom areas and in reh a b ilita t ing tile and open ditch drainage sys tem s in th e level p rairie regions of th e state. Two counties in n o rth cen tral G EO RG E Manned by officials with years of experience, our Correspon dent Bank Division renders a complete service, conducted in an intimate and personalized manner. The guiding policy is one of cooperation in all matters of mutual interest. Public National BANK AND COM PANY OF m i US T NEW E S T A B L IS H E D I V YORK 19 0 8 M AUe m b e r . N e w Y o r k C le a r i n g H o u s e A s s o c ia tio n , F e d e ra l D e p o s it In su ra n c e AjC o r p o r a t io n J G IA N A K A P O P O L O U S George Gianakapopolous has a checking account in a bank and, de spite the fact that his signature looks like a carelessly dropped fork ful of spaghetti, he receives his cancelled checks and statement every month, and the checks are always his and his statement is always correct. filing checks, and it isn’t so much the elimination of these errors that reduces bank costs, because sooner or later all errors are located and cor rected. The really important reason why signatures should be easy to read is because it is necessary to sort them and file them correctly— QUICKLY! George probably never gives a thought to the difficulties his bank experiences in sorting and filing his checks correctly. He, like everyone else, assumes that in the banking business things are done accu rately and he has no conception as to what banks have to go through in order to make everything come out even. If a signature is so bad that it re quires consultation before it can be properly sorted and filed it con tributes to a bottle neck, so it isn’t necessarily the number of missorted items that make it important for customers to use imprinted checks but rather the items which cannot be sorted correctly— Q U IC K LY . That is where the DeLuxe Person alized Check program comes into the picture. May we tell you more about it? It isn’t so much the fact that bank people make errors in sorting and That's Different I t ’s fu n n y th a t a w om an w ho can spot a blonde h a ir a t te n paces can ’t see a p a ir of garage doors. OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e stern Banker August 19^5 48 • M I N N E S O T A Iow a have established soil conserva tion d istricts w h ere inadeq u ate d ra in age is a m ajor problem . T h eir p ro gram cen ters aro u n d th e estab lish m en t and reh ab ilitatio n of drain ag e system s. M any o th er counties in th is area are plan n in g on d istric t organizations in th e n e a r futu re. T he tre n d to w ard s g reatly in creas ing th e acreage of in te rtille d crops d u r ing th e tw o w a r periods h as resu lted in serious soil and fe rtility losses. F o r exam ple, in 11 counties com prising th e sou th c en tral district, th e corn acreage w as in creased from 659,000 acres in 1914 to 860,700 acres in 1918—an in C. L . F R E D R I C K S E N P r e s id e n t W . G. N E L S O N A s s is ta n t V ic e P r e s id e n t H . C. L I N D U S K I A s s is t a n t C ash ier and M a n a g er of A ir B a s e F a c ilit y crease of 30.6 p er cent. D uring th e sec ond w ar period th e com bined acreage of corn and soybeans increased in th ese sam e counties from 592,000 acres in 1940 to 744,000 acres in 1943—an in crease of 25.6 p er cent. A ccording to carefully prep ared estim ates m ade at Iow a State College, th e ra te of soil depletion in th e state has been 50-75 p er cent g re a te r d u rin g 1945 th a n in 1940. What Are Bankers Doing? 1. G etting first h an d inform ation concerning soil problem s and w h at is being done in th e com m unity. 2. P articip atin g in a to u r of th e “Confidentially Yours” "When we want personal service or M . A. W IL S O N V ic e P r e s id e n t W . C. S C H E N K C ash ier N E W S - confidential information in Sioux City, we can always depend on the Live Stock National Bank," say our corre spondent banks. C. L. A D A M S A s s is ta n t C ash ier We are proud of this reputation and J. S. H A V E R A ss is ta n t C ash ier we hope that you, like our other corre JA M E S L. S M IT H A u d ito r spondents, will look upon this bank as "Confidentially Yours" in Sioux City. L ive St o c k National OF SIOUX B C I T Y , IOW A f M EM BER " 'W a n k F, D E C . " t/te county in w hich v arious phases of soil conservation practices are observed. 3. E ncouraging and p articip atin g in th e organization of a soil conservation d istrict w here one is contem plated. 4. U rging th e ir custom ers to coop erate w ith th e ir soil conservation dis tric t in establishing soil conservation practices. 5. In co rp o ratin g soil conservation clauses in lease form s. 6. C ooperating w ith th e E xtension Service, Soil C onservation D istrict, ru ra l schools and 4-H Clubs in educa tional and p roject w ork concerning soil conservation. 7. In itia tin g or cooperating in p ro m oting county w ide projects such as p astu re im provem ent contests, alfalfa contests, corn yield contests on con to u red fields, and terra c in g contests. 8. F e a tu rin g soil conservation p rac tices in th e ir advertising. 9. U sing soil conservation displays in th e ir show w indow s. 10. P rom oting sound land v alu a tions. Asst. Vice President at Philadelphia National The P hiladelphia N ational B ank an nounces th e ap p o in tm en t of Louis W. Bishop as an assista n t vice president, effective A ugust 1, 1945. Mr. Bishop is a n ative of South Caro lina and received his education a t S par ta n Academy, L andrum , South Caro lina. H e began his b anking career in 1913 w ith th e B ank of Piedm ont, South Carolina, and w as soon prom oted to a ssistan t cashier. A fter serving in W orld W ar I he re tu rn e d to th e sam e b an k as cashier, and la te r en tered th e services of th e F irs t N ational B ank of G reenville, South C arolina, from w here he m oved to R ichm ond, V irginia, ac cepting a position in th e credit d e p a rt m en t of th e F ed eral R eserve Bank. In 1922, he accepted a position w ith th e S tate-P lanters B ank and T ru st Com pany, w here he w as elected a ssistan t cashier in 1931, com ptroller in 1935, cashier in 1938, and vice presid en t and cashier in 1942. H e has served on a nu m b er of com m ittees of th e A m erican B ankers Asso ciation and is at p resen t a m em ber of th e B ank M anagem ent Commission. H e is ch airm an of th e com m ittee th a t issued th e m anual “Simplified B anking F orm s and P rocedure,” w hich has had a w ide d istrib u tio n th ro u g h o u t th e U nited S tates and foreign countries. Indeed A r u t is a grave w ith th e ends knocked out. N o rth w e ste r n Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1945 O UR 5 0 th YEA R 49 to th e position of a ssistan t cashier. He is a p ast presid en t of th e R apid City Cham ber of Commerce. SOUTH On Gam e Commission DAKOTA NEWS C. O. G O R D E R P r e sid e n t D ead w ood A ctin g S ecretary L O IS J . H A L V O R S E N John A . Egge A re sid e n t of th e Sioux F alls area for 74 years, J o h n A. Egge, G arretson, South D akota, died recently. He w as 90 y e a rs old. Mr. Egge w as a d irecto r of th e F irs t N ational B ank of G arretson. He re p re sen ted M innehaha county in th e state leg islatu re in 1895 and 1903. In 1907 he w as elected to th e sta te senate. Open Banks for Bond Sales In South D akota H u ro n ’s th re e b an k s sold bonds a t th e ir w indow s from 7 to 9 S atu rd ay evening in th e final stages of th e S eventh W ar L oan drive. O pening of th e banks, it w as ex plained, w as in ten d ed as a convenience for ru ra l people w ho n o rm ally come to H u ro n for shopping S atu rd ay nights, an d for w age ea rn e rs w ho are paid by th e w eek or m onth. H u ro n b an k s w hich p articip ated in th e special bond selling ev en t are: F a rm e rs and M erchants B ank, N a tio n al B ank of South D akota, and N o rth w est S ecurity N ational B ank. G E O R G E M . S T A R R IN G S ecreta ry -T rea su rer H u ro n (In the S e r v ic e ) cashier at th e P ie rre N ational Bank, recen tly w as re tire d as a colonel in the air corps. Promoted to Assistant Cashier The reg u lar m onthly m eeting of th e d irectors of th e F irs t N ational B ank of th e Black H ills w as held recen tly at Belle F ourche, South Dakota. T w enty of th e directors and b ank officials w ere p resent. W infield R. McCain, w ho has been a senior clerk at th e R apid City office and has been in th e em ploy of th e F irs t N ational B ank of th e Black H ills for th e p ast eleven years, w as prom oted Talks to Committee O U R 5 0 th YEA R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Carl J. Odegard, vice presid en t of the N o rthw est S ecurity N ational Bank, H uron, South Dakota, has received an ap p ointm ent by South D akota Gover nor S harpe to m em bership in th e N a tional R esources D evelopm ent Com m ission. Largest Deposits A t Ju n e 30th T he N o rth ern T ru st C om pany’s to tal deposits w ere $747,124,631.41, hig h est rep o rted for any call date. L oans and discounts in creased to $69,583,253.86; U. S. G overn m ent securities gained $53,000,000 d u r ing th e q u a rte r to stan d a t $488,128,033.88; and savings deposits aggregated $108,509,012.01. Cash and due from banks w as dow n som ew hat from th e previous call to to tal $124,661,259.18. of ground floor office space in th e Sioux F alls Gas Com p an y B uilding in Sioux Falls, for oc cupancy by th e U nion Savings Bank, is now u n d er way, according to W illiam C. Duffy, p resid en t of th e b an king in stitu tio n . W hile it m ay prove im pos sible to com plete th e rem odeling pro gram in final form u n til some m ate rials now u n d er g overnm ent re stric tions are released, it is still planned to move th e b an k about Septem ber 1st, he said. The b an k is now occupying q u a rte rs in th e C ataract H otel B uilding in Sioux Falls. e m o d e l in g R D eW itt M alvin, vice p resid en t and m an ag er of th e Belle F ourche, South D akota, office of th e F irs t N ational B ank of B lack H ills, suffered a b ro k en leg recen tly w hile out at th e Round-Up grounds d rillin g w ith o th e r m em bers of th e B it and S p u r club. T he accident o ccurred w h en his ho rse sidesw iped an o th e r h orse and his leg w as stru c k by th e sp u r or a p o rtio n of th e o th er saddle. P au l S. Dewell, P ierre, South Da kota, has assum ed th e du ties of special ex am in er and a ssista n t to th e S u p erin te n d e n t of B anks V. W. Abeel, it w as announced recently. Mr. Dewell, w ho served as exam iner in charge of th e liquidation of closed ban k s in 1930-33 an d la te r as a ssista n t Appointed to Commission Sioux Falls News Banker Breaks Leg Assists Superintendent O f Banks W alter H. B urke, cashier, P ie rre N a tional Bank, P ierre, South Dakota, and W illiam L. Johns, B ison ran ch er, w ere appointed by G overnor M. Q. S harpe to th e Game, F ish and P a rk s Commission created by th e 1945 legislature. Mr. B urke, w ho served six y ears on th e p ark board, is S tate W ar Loan C hairm an and a form er S tate R epubli can C entral Com m ittee treasu rer. John N. Thom son, chairm an of the A m eri can Bankers A ssociation Su bcom m ittee on A gricultu ral C redit of the A ssociation’s C om m ittee on F ederal L egislation , analyzes the Flannagan B ill before the C om m ittee on A g riculture of the H ouse of R epresentatives at its hearing. Mr. Thom son is vice p residen t and cashier of the Bank of C en terville, C en terville, South D akota. Ralph W atson, presid en t of th e N o rth w est S ecurity N ational Bank, has announced th e resignation of H . C. W haley, form erly first a ssistan t m an ager of th e b a n k ’s H u ro n branch. Mr. W haley has accepted a position as as sista n t loan directo r for th e South Da ko ta regional v e te ra n s’ ad m inistration, and w ill assist in ad m in isterin g th e p rogram u n d er th e G. I. Bill of R ights, w hereby th e g o vernm ent w ill guaranN o rth w e ste r n B anker August 19i5 SO U TH tee loans of up to $2,000 for v eteran s. Mr. W haley w as v e ry active in com m u n ity affairs at H uron, w h ere he w as tre a s u re r of th e E lks Lodge and as sisted w ith C ountry Club m anagem ent. R esto ratio n of Sioux F alls A rm y A ir F ield to full stren g th , u n d e r th e air forces redeploym ent program , has g reatly increased activ ity at th e “b a n k ing facility” a t th e post, o perated by th e N o rth w est S ecurity N ational Bank, according to Oliver N ordby, m anager. The post w ill have a p opulation of ap prox im ately 17,000 v e te ra n s co n stan tly for several m onths. T hough each in d i vid u al w ill rem ain in th e city only a few days for processing, one of th e task s to be done is th e pay m en t of all back pay owed, covering a three-m onth period in m ost instances. The heavy volum e of m oney being placed in cir culation b y th e soldiers is alread y re flected in zoom ing deposits a t local banks. T ow ard th e end of th e 7th W ar Loan Drive, w h en th e possibility appeared th a t Sioux F alls m ig h t fail to reach assigned quotas for th e first tim e, local ban k s w e n t “all o u t” in sponsoring a concerted ad v ertisin g cam paign u rg in g bond purchases. T he four m em bers of th e C learinghouse A ssociation—U nion S avin gs Bank, N ational B ank of South Dakota, F ir st N ational Bank and T rust D A K O T A NEWS Company and N o rth w est Secu rity N a tional B ank— also conducted a well- publicized evening bond sale on Ju n e 30th, w hich w as v ery successful. At least in p a rt due to th e ir efforts, bond sales sp u rted in th e city and every quota w as reached. Am ong recen t v isito rs in Sioux Falls w as A. R. E van s, M inneapolis, m an ager of th e in v estm en t d ep artm en t of th e N o rth w est B ancorporation. W illiam C. Duffy, p resid en t of the U nion Savings Bank, rep resen ted the South D akota B ankers A ssociation at a m eeting called by G overnor M. Q. S harpe at P ie rre to ch art a program of assistance for re tu rn e d veteran s. Mr. Duffy is ch airm an of a SDBA com m it tee nam ed to assist in ad m inistering th e loan program for v eteran s u n d er th e G. I. Bill of R ights. O ther b an k ers of his com m ittee are C. H. Lockhart, vice presid en t of th e F irs t Citizens N a tio n al B ank of W atertow n; J. M. Lloyd, vice p resid en t of th e A m erican S tate B ank at Y ankton; A. E. D ahl, p resid en t of th e R apid City N ational Bank, and XV. P. Jones, p resid en t of th e Citizens B ank of Mobridge. XV. B. W hitm an, a ssistan t secretary of th e M anufacturers T ru st Com pany of N ew York, visited in Sioux Falls. He w as in th is area calling on m idw est correspondents. A t a R apid City m eeting at w hich C. O. Gorder, Deadwood, w as nam ed presid en t of th e South D akota B ank ers A ssociation, th ree Sioux Falls b an k ers w ere nam ed state vice p resi dents of th e A m erican B ankers Asso ciation. T hey w ere T. N. H ayter, vice p resid en t of th e F irs t N ational B ank and T ru st Company, national b an k division; C. A. C hristopherson, ch air m an of th e U nion Saving B an k ’s board of directors, savings b an k division, and P. H. M cD ow ell, vice presid en t and tru s t officer of th e N o rth w est S ecurity N ational Bank, tru s t division. A t a recen t m eeting of th e Sioux F alls K iw anis Club, th e sp eaker w as C. A. C hristopherson, form er congress m an and ch airm an of th e board, U nion Savings Bank. He expressed th e view th a t th e U. S. Senate m ay be th e first to ra tify th e w orld security pro posals evolved at San Francisco, and saw an o p p o rtu n ity for U. S. w orld leadership provided th e nation is m ade stro n g at hom e by a sound fiscal policy. The w ar com m ittee on conventions has g ran ted approval for th e 1945 stag ing of th e fam ous Sioux E m pire F air, according to F ran k Cinkle, tre a s u re r of th e fair association and vice p resi dent and cashier of th e N ational B ank of South D akota. E xcellent livestock and ag ricu ltu ral exhibits are antici- lonson com boxes &cobioeis &lpxUency/ gr*di " YOUR COIN A S COM PACT A S YO U R CURRENCY" /iacU icU U e. ¿Q-osi 9*n*ned¿cU e ’S b eliu & u f. Lonson Coin Boxes For All Denominations Lonson Coin Cabinets Lonson Coin Containers are used wherever loose coin accumulates and must be kept in Three Sizes sorted and counted. Banks, Financial Institutions and other businesses handling coin find them invaluable for keeping coin sorted, counted and compact for mobility. LONSON COIN BOXES are available either with wooden dividers for loose coin, or with no dividers for use with wrapped coin. They are "Self-Counting" and will hold only the amount of coin for which they are built. A vail able for all denominations. LONSON COIN CABINETS are constructed of heavy welded steei for durability. Divisions are exact and will hold only the amount of change indicated. Coin rolls are visible for exact counting and detection of misplaced rolls. They are Compact and save space on the counter. Available in three sizes to fit your counter needs. Write today for complete information and prices. iji H ::: iji ? Lonson rmmufflCTURinG co. S carborough ^ C ompany :a First National Bank Building, Chicago 7N orth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19b5 Horace A . Smith, Iowa Representative Des Moines, Iowa O U R 5 0 th YEA R 51 • SO U TH pated, in addition to a rodeo, huge stage show and m idw ay attractio n s. S tate T re a su re r E. V. Y oungquist, 63, died a t his hom e a t P ie rre last m onth. He had been ill w ith a h e a rt ailm ent. S tate T re a su re r E. V. Y oungquist, w as elected tre a s u re r in 1942 and re elected in 1944. He w as a fo rm er state re p re se n ta tiv e from T rip p county. He organized a state b an k a t C arter in 1910, o p eratin g it for 15 years. He w as em ployed as a salesm an from 1925 u n til 1928, w ith h e a d q u a rte rs a t Sioux Falls, and in 1928 w en t to R apid City, w h ere he conducted a real estate and in su ran ce b u siness u n til 1932, w hen he w as em ployed by th e state to liqui date closed b an k s in th e w estern p a rt of th e state. T ra n sfe rred to H u ro n in 1939, he w as active in b an k liquidation in th a t area before re tu rn in g to R apid City. G overnor M. Q. S harpe appointed M iss H azel Dean, d ep u ty tre a s u re r for Six years, to succeed Mr. Y oungquist. She is a W essington S prings resident. L E G A L Q U EST IO N S (C ontinued from page 20) such m arriage. It h as been held in W isconsin th a t a subseq u en t m arriag e alone w ill not o perate to revoke such a w ill. R ecently, th e Suprem e Court of th a t state w as asked to rev erse its p revious ru lin g s and hold th a t th e m arriag e revoked th e will. W ould you say it w ould do so? T he court refused to change its pre vious ru lin gs. In doing so it said that the rule laid dow n by the p revious d ecision s th at m arriage alone is in effective to revok e a prior w ill is not clearly w ron g and, since it is estab lished by the w eigh t of au th ority in the U nited S tates and has existed in W iscon sin for m any years, it m ust be considered a rule of property and m ust not be changed. B olian b o u g h t ce rta in bonds on an a p a rtm e n t house th a t w as undergoing a b a n k ru p tc y reo rg an izatio n at about fifty cents on th e dollar. T here w ere no frau d u len t, fiduciary, or o th er re la tio n sh ip s involved th a t m ig h t re su lt in th e p u rch ase being characterized as som eth in g o th er th a n an o rd in ary b u si ness tran sactio n . W as Bolian, in his p articip atio n in th e reorganization, lim ited to th e cost to him of th e bonds in stead of th e prin cip al am ount th e re of? D A K O T A NEWS ordinary rule, the prices w hich secu rity holders pay for th eir secu rities in no w ise affects th e m easure of their participation in reorganization pro ceedings. T his is true as to voting rights, ultim ate recoveries, and all other features. Sm ith held up and robbed a national b ank in South D akota in 1936. T h ere a fte r he left th e state and w as u lti m ately cap tu red in M ichigan m ore th a n th re e y ears later. The federal law provides th a t indictm ents m ust be • re tu rn e d w ith in th ree years. T his was not done here. Does it m ean th a t Sm ith can escape punishm ent? No. S tatu tes of lim ita tio n s do not run in favor of fu g itiv es from justice. The requ irem en ts that in dictm ents be returned w ith in three years do not “extend to any person fleeing from jus* tice,” to quote the language of the stat ute, and Sm ith can not escape p un ish m ent because of a delay in the return of the in d ictm en t in the circum stances outlined. Latest Q uo tations Prom pt Execution Our direct wire connections, both telegraph and teletype, assure correspondent banks of utmost efficiency in the purchase and sale of U. S. G O V E R N M E N T B O N D S T R E A S U R Y BILLS CERTIFICATES OF IN D EB TED N ESS TREASU RY NOTES Inquiries are invited Telephone Franklin 6800 —LD 92-93-313 Teletype CG 987 The First National Bank of Chicago member federal depo sit in su ra n ce c o rpo ratio n No. In the absence of som e equi table reason, takin g the case out of the O UR 50tl» YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e ster n B anker August 1945 52 Iowan Is Assistant Cashier R alph W. Mode has been elected as sistan t cashier of th e A m erican State Bank, W illiston, N o rth D akota, in place of R aym ond Bell w ho has joined th e M arines. Mr. Mode w as form erly connected w ith th e E xchange State B ank of Lim e Springs, Iowa. NORTH DAKOTA Grand Forks Deposits Higher NEWS A . C. ID S V O O G P r esid en t G rafton New Officers Named H a rry W. George, w ho h as been con nected w ith th e B ank of Steele, Steele, N o rth D akota, for 18 years, w as elected p resid en t of th a t b an k in g in s ti tu tio n a t a special m eeting held last m on th to fill vacancies on th e board of directo rs caused by th e d eath of th e late M artin P eterson, fo rm er p resident of th e bank. M aurice P e te rso n w as elected vice president, and O. L. P e te rso n w as elected to fill th e vacancy on th e board of directors. P rio r to com ing to Steele, Mr. George w as connected w ith th e F irs t N ational B ank of S treeter. Capital Stock Boost The S tate B ank of Souris, Souris, N orth D akota, h as in creased its capi tal stock from $15,000 to $25,000, ac cording to C ashier O. S. F reem an. T hey have also in creased th e ir su rp lu s account from $15,000 to $25,000. T h eir deposits of te n y e a rs ago am o u n tin g to $50,000 have gone w ell over th e m il lion dollar m a rk at th is tim e. Besides C ashier F reem an , o th er offi O u t - o f - T C. C. W A T T A M S ecreta ry F a rg o cials include Carton F reem an, assis ta n t cashier; V ictor F ry k m an , p resi dent; and Nels M agnuson, vice p resi dent. Andrew Balerud A ndrew B alerud, 76, p rom inent fa rm e r and successful businessm an, w ho h ad lived in Minot, N o rth Dakota, and vicinity since 1902, passed aw ay at M inot recently. Mr. B alerud w as w idely know n th ro u g h o u t th e n o rth w est as a direc to r of th e U nion N ational B ank at Minot. Deposits Reach New High B ank deposits in M inot have soared to new high record totals. All de posits in M inot’s th re e ban k s total $23,216,169. S u b tractin g a to tal of $2,732,104 in w a r loan deposit accounts, th e to tal is still above th e 20 m illion dollar figure —$20,484,064. L a st M arch 20th total deposits in M inot’s th re e ban k s w ere $21,493,403, w hich included $1,249,439 in w ar loan deposit accounts. o w n R com plete banking fa cilities for prom pt and economical handling o f accounts in Chicago. We would appreciate the opportunity of serving you. it y N a t io n a l A N II T R U S T 2 0 8 S O U T H C O M PA N Y B (Member Federal Deposit Insurance Corporation) N o rth w e ster n Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19Í5 ank of C h i c a g o L A S A L L E Paid in Full The office of L. R. Baird, B ism arck, N o rth D akota, state receiver of closed banks, recen tly m ailed to depositors th e final 50 p er cent dividend of th e am ounts th ey had in th e Citizens B ank in M inot w hen it closed in July, 1931. The final p aym ent w as in excess of $48,000. M em bers of th e P e te r E h r fam ily, p rincipal stockholders in th e bank, en tered into an agreem ent w ith Mr. B aird last fall w hereby arran g em en ts w ere m ade for liquidation of th e re ceivership th ro u g h p aym ent in full of th e depositors. Becomes Vice President The board of directors of th e F irs t N ational B ank in St. Louis has an nounced th e election of M ack A. Aidrich as a vice president. He has been associated w ith th e F irs t N ational B ank for a nu m b er of y ears and as an a ssistan t vice presid en t for four and a half years. a n k s O ut-of-tow n banks and bankers w ill find here C Deposits, resources and w ar bond de posits of G reater G rand F orks, N orth D akota, banks all show ed increases over a y ear ago. T otal deposits for th e y ear ending Ju n e 30, 1945, w ere $21,929,212.44; total resources, $25,606,145.45, and w ar loan deposits, $3,076,104.39. In 1944, total deposits w ere $17,535,000.76; to tal re sources, $20,676,675.52, and w ar loan deposits, $2,488,811.29. S T R E E T Fargo News D a k o t a ’s b an k deposits are th e g reatest in history, ju m p ing from $15,000,000 in 1933 d u rin g th e “black blizzard,” to $218,000,000 in 1945, according to figures m ade public by R . S. See, dep u ty state b an k ex am iner at Bism arck. T he figures w ere based on footings as of early th is year, and Mr. See ex pected a fu rth e r increase. The sto ry of N orth D akota’s finan cial com eback since th e days of dust storm s and depression is “incredible and unbelievable,” b u t backed up w ith cold cash, he said. “In addition to deposits in state orth N O UR 5 0 th YEA R 53 banks, n atio n al b an k s o p eratin g in th e sta te h ad on deposit som e $165,000,000, m aking to ta l deposits in all b an k s $383,000,000—or appro x im ately $638 for ev ery m an, w om an and child in th e state, Mr. See declared. “T his is exclusive of m oney invested in w a r bonds, p ostal savings, secu ri ties and th e u ntold sum circu latin g in th e pockets of citizens and h o arded at home. “O rdinarily, figures are u nrom antic, b u t w h en one vizualizes all th is w ealth being w rested from soil w hich only a dozen y ears ago w as deem ed w o rth less w astelan d by m an y of o u r econo m ists, it’s like a fan tastic fairy tale. F o r practically all th e w ealth produced in N o rth D akota comes from th e soil. “It could only h ap p en in N o rth Da kota. My y ears of dealing w ith th e cash p ictu re of th e sta te convinces me it can h it th e low est in depression and bounce back q uicker th a n an y state in th e U nion. T h a t’s som ething to re m em ber if any one should advocate giving it back to th e In d ian s.” B an kers of F argo and Moorhead w ere asked recen tly to w atch for $1,200 w o rth (m a tu rity value) of E-bonds stolen from th e hom e of Mr. and Mrs. George Kelly of M oorhead by p row lers w ho en tered th e residence w hile th ey w ere aw ay over th e w eekend. T he bonds w ere k e p t in a w ritin g desk and a p p a re n tly n o th in g else w as touched. To aid N o rth D akota m oto rists w ho h ad failed to obtain th e ir 1945 au to m obile d riv e r licenses, th e F ir st N a tion al B ank and Trust C om pany of F arg o provided a spot in its lobby for sales. A rran g em en ts w ere m ade b y Ju d g e P. M. P au lsen of Cass coun ty court, w hose office h andles licenses, an d he also a rra n g e d for evening h ours. A b ra n c h office of th e state m otor vehicle re g istra tio n d ep artm en t, in Fargo, also sold th e licenses, w ith Mrs. Ju le V. Poseley in charge. B ank debits a t V alley City, North Dakota, for Ju n e, 1945, show ed an in crease of 5 p e r cent over Ju n e, 1944, alth o u g h th e cu m ulative total, J a n u a ry th ro u g h Ju n e, w as 2 p er cent low er th a n th e p revious year. J. A. Graham of B ism arck, ch a ir m an of th e N o rth D akota sta te b a n k ing board, announced th a t th e F irs t S tate B ank of V en tu ria discontinued accepting deposits on Ju n e 20, 1945, and has gone into v o lu n ta ry liquida tion. th e F irst N ational B ank of M inot, suc ceeding R. A. H. B randt, resigned, it w as announced following a m eeting of th e board. The board also elected W alter E. Tooley, cashier, as a vice president, succeeding the late H en ry E. B yorum . Dr. A. D. M cCannel is president. W einhandl assum ed his duties last m onth. B randt, w ho is p resid en t of th e M inot A ssociation of Commerce, announced th a t he w ill continue to m ake th a t city his hom e and w ould p ractice law, handle real estate and insurance. W einhandl is a n ative of N o rth Dakota, bo rn a t M andan, w here he resided u n til October 15, 1940, w hen he accepted a position in th e contact d ep artm en t of th e N orthw est Bancorporation. His duties w ere w ith banks in N o rth D akota and M ontana. His first experience in b anking w as as bookkeeper w ith th e F irst N ational B ank of M andan, in 1918. He becam e a d irector and vice p resid en t of th a t in stitu tio n . Resourceful A doctor had an u rg en t call from a m an to th e effect th a t his sm all son had sw allow ed a fo u n tain pen. “All rig h t,” replied th e doctor, “I ’ll come a t once. W hat are you doing in th e m eantim e?” Came th e answ er: “I ’m using a pen cil.” B A N K Sc T R U S T COMPANY F o u n d ed 1824 165 B road w ay, N e w Y ork C O N D E N SE D ST A T E M E N T OF C O N D IT IO N At t h e c lo s e o f b u s i n e s s , J u n e 3 0 , 19 4 5 A SSETS .$234,328,714-06 Cash and D u e from Banks______ U. S. Government Obligations, Direct and Fully Guaranteed_____ 800.444,800.06 Bankers’ Acceptances and Call Loans 152.,707,930.46 State and Municipal Bonds___________ 86 ,804,061.05 Other Bonds and Investments________ 77.,477,682.48 Loans and Discounts_______________ 233 ,373,035.46 329,793.50* Banking Houses___________________ ,204,325.12* Other Real Estate__________________ 263,157.42 Mortgages_________________________ ,269,317.68 Credits Granted on Acceptances_______ Accrued Interest and Accounts ,063,584.72 Receivable_____________________ 365,311.91 Other Assets______________________ $1,592 ,531,713.92 L IA B IL IT IE S $20,000,000.00 Capital Stock. Surplus. Undivided Profits_____ Unallocated Reserves— 60,000,000.00 12,343,548.26 5,771,998.20 $98,115,546.46 Reserves for Taxes, Expenses, etc.4,099,612.51 900,000.00 Dividend Payable July 2, 1945 Acceptances Outstanding $2,203,587.18 (Less o w n a c c e p t a n c e s h eld , i n p o r t f o l i o ) 449,748.22 1,753,838.96 971,775.66 Other Liabilities--------------------------Deposits (i n c l u d i n g O f f i c i a l a n d C e r t i f i e d C h e c k s O u t s t a n d i n g $ 20 ,2 3 2 ,406 .79 ) 1,486,490,940.33 $1,592,331,713.92 S e c u r iti e s c a r r i e d a t $ 428 , 382 , 1 4 1 . 1 7 i n t h e f o r e g o i n g s t a t e m e n t a r e d e p o s i t e d to s e c u r e p u b l i c f u n d s a n d f o r o th e r p u r p o s e s r e q u ir e d b y la w . Assessed Valuation $4,636,434.12 A. R. W einhandl w as elected execu tiv e vice p resid en t and a d irecto r of O U R 5 0 th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e ste r n Banker August 19^5 54 * S e n d U s Y o u r COMMODITY LOANS N orth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19^5 O U R 5 0 th YEAR 55 NEBRASKA NEW S E D G A R M cB R ID E P r esid en t B lu e H ill Heads Lincoln Bank B yron D unn, form erly executive vice p resid en t of th e N ational B ank of Commerce, in Lincoln, N ebraska, has been chosen by th e board of directors as p resid en t of th e in stitu tio n , follow ing th e d eath last m o n th of M. W eil. Mr. D unn h as been a close associate WM. B. H U G H E S S ecreta ry Omaha sociations. He is a m em ber of the cham ber of com m erce, d irector and p ast p resid en t of R o tary Club, a m em b er of both Broadview and th e U ni v ersity clubs. Bank Officer Changes W eeping W ater, N eb rask a’s F irs t N ational B ank held th e ir an n u al m eet ing last m onth w hen th e resig n atio n of T heodore Davis, as president, w as ac cepted, and H en ry Crozier w as elected as th e new president. R ay C. W iles w as elected as director, and as th e vice president, to succeed H en ry Crozier. New Bank to Open A m eeting w as called last m onth for th e purpose of dissolving th e W estern C ooperative C redit A ssociation, W es tern , N ebraska. A new b an k w ill m ake its appearance soon in W estern, o p erating u n d er th e nam e of N ebraska S tate Bank. Increase Capital F a rm e rs and M erchants S tate Bank, Bloomfield, N ebraska, has increased th e capital stock of th e corporation from $25,000 to $35,000. BYRON DUNN N e w B an k P r e s id e n t w ith Mr. W eil in th e b an k in g business for a n u m b er of years. To fu rth e r in su re th e co n tin u ity of th e p re se n t control and m an agem ent th e stock holdings of Mr. W eil have been placed in a 15-year tru s t. Mr. D unn joined th e staff of th e N a tional B ank of Com m erce in 1907 as a collector and has p rogressively held th e positions of teller, bookkeeper, as sista n t cashier, cashier, vice p resid en t and executive vice p resid en t and tru s t officer. He is a g rad u ate of V erdon high school and C otner college, and a tte n d ed th e U n iv ersity of N ebraska, has served in Lincoln as p ast p resid en t of th e L incoln C learing H ouse A ssocia tion, and is a m em ber of th e L an caster County B anking A ssociation, and the N eb rask a and A m erican B anking AsO U R 5 0 th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Stuart Bank Liquidates The F irs t N ational B ank of S tuart, N ebraska, announced it is vo lu n tarily liqu idating as a re su lt of th e recent d eath of its president, D ennis Criss, and th e subsequent resig n atio n of th e cashier, Mrs. C. S. Brady. It is S tu a rt’s only bank. E stablished in 1903, th e b an k has capital, su rp lu s and undivided profit to taling $59,336. The F irs t N ational B ank of A tkinson w ill take over all its deposits and loans. Association Elections In accordance w ith th e req u est of th e executive council, N ebraska group p resid en ts are nam ing m em bers of th e n om inating com m ittee to act at the re stric te d convention it is planning to hold th is fall, confined to m em bers of th e executive council, group p resi dents, and th e six m em bers of the nom inating com m ittee. T his m in iatu re convention w ill elect a p resid en t and a vice p resident of the state association, and th ree m em bers of th e executive council (one re p re sen tin g Group F our, one Lincoln and one O m aha). It w ill also probably be asked to elect N ebraska officials of th e A m erican B ankers A ssociation, in cluding tw o m em bers of the ABA ex ecutive council to succeed J. O. Peck of Colum bus and R. R. Ridge of Omaha w hose term s expire th is fall, a N ebras k a vice presid en t for each of th e four divisions, nam ely, th e N ational bank, S tate bank, Savings bank and the T ru st division, also th ere should be a m em ber of th e ABA nom inating com m ittee and an alternate. G . D. Lawson George D. L aw son died recently at Chula Vista, California. Mr. L aw son w as cashier of th e A sh land N ational Bank, A shland, N ebras ka, for m any years, and w as well know n in A shland. Elected President M inor B aird w as elected presid en t of th e F a rm e rs State Bank, Superior, N ebraska, at a m eeting of th e board of directors. He has been vice p resid en t of th e bank. The vacancy w as caused by th e death of P ercy B aird several w eeks ago. The new m em ber for th e board of directors w ill be elected at th e an n u al stockholders m eeting. Father and Son Buy Bank Dr. O. R. Ivins, presid en t of th e C raw ford S tate Bank, Crawford, Ne braska, and his son, C aptain Jam es Ivins, purchased th e Sioux N ational B ank of H arrison, N ebraska, last m onth. O. R. Ivins w ill be presid en t of th e bank, and Jam es vice presid en t and m anager. C aptain Ivins, w ho served fourteen m onths in th e E u ropean th e a tre of operations as a w ing and staff nav i gator, w as placed on inactive statu s last m onth. Director and Vice President George C. Soker, p resid en t of th e S tate B ank of H ildreth, N ebraska, an nounces th a t L eon Sam uelson of F ran k lin , has been elected d irector and vice presid en t of th a t b ank to succeed th e late C. E. Sam uelson. Joins Bank Staff The F a rm e rs and M erchants S tate Bank, Bloomfield, N ebraska, has em ployed a new teller, H a rry Myers. Mr. N o rth w e stern Banker August 1945 56 • N E B R A S K A NEWS • an absence of nearly th ree y ears spent in arm y service. Design New Check N ational B ank of Commerce, Lincoln, N ebraska, th a t b ank has in au g u rated a new idea in b ank checks. W ith th e N ebraska Salesbook Com pany they have designed a check w hich th ey call Post-A-Check. It is p rin ted on light cardboard, a little lig h ter th a n a reg u lar post card. The fro n t side is like any o rd in ary check w hile th e reverse side is standard postcard size. To m ail a check it is only necessary to affix th e address and a one cent stam p—a handy postage and p aper saver. A ccording to G lenn Yaussi, a ssista n t vice p resid en t and tru s t officer of th e Fifty-third Anniversary Ju lien Stevenson, cashier a t F a rm ers Bank, N ebraska City, N ebraska, w ho has been in A rizona since th e C hristm as holiday season to benefit his health, w as to leave Phoenix last m onth for N ebraska City. M yers has been em ployed in th e Plainview S tate Bank, P lainview . With Dodge Bank G. J. B orgm eyer began his du ties at th e F a rm e rs S tate B ank, Dodge, N e braska, recently, h av in g resigned his position w ith th e S u rety N ational F a rm L oan A ssociation. R. H. H olsten, cashier of th e bank, is m aking plans to leave soon for C alifornia. The N ew York T rust Company Capital Funds O ver $50,000,000 IOO BROADWAY M A D IS O N A V E N U E A N D 4 0 T H STR EET TEN RO C K EFELLER PLAZA C. J. O’Brien, presid en t of th e Mc Cook N ational Bank, McCook, N ebras ka, and Mrs. O’B rien celebrated th e ir fifty-third w edding an n iv ersary re cently. Mr. O’B rien is 76 y ears of age and is still active in th e bank. He is th e only living organizer of th e bank. More Banker Help In addition to th e u sual b an k er help extended to 4-H Club boys and girls, th is year, th e N ebraska B ankers Asso ciation announces, a new project is planned. T he U nion Stock Y ards Com p any of Om aha w ill hold a calf sale to m ake b e tte r grades of calves m ore readily available to 4-H boys and girls to be held around October 31st and N ovem ber 1st, w ith about 5,000 fine selected calves on sale. The associa tion w ill u rge its m em bers to cooperate in financing p urchases of calves a t this sale by 4-H clubbers. Back at Work J. L. H am pl has resum ed his duties as a ssistan t cashier at th e Schuyler S tate Bank, Schuyler, N ebraska, after Y O U R STATE B A N K ER S A S S O C IA T IO N O F F IC IA L S A F E , V A U L T A N D TIM E LO C K EXPERTS Member of the federal Deposit Insurance Corporation F. E. DAVENPORT & CO. OM AHA 7 & Y 0 0 T Heads Bar Association Dan J. Riley, p resid en t and cashier of th e Dawson Bank, Dawson, N ebras ka, and a law yer, w as elected at a d in n e r m eeting of th e R ichardson C ounty B ar A ssociation, at Falls City, N ebras ka, to serve as presid en t of th e group for th e com ing year. Returned Home Closes at 3 O 'C lo ck The P en d er S tate Bank, Pender, Ne braska, is closing a t 3 p. m. according to an ad v ertisem en t announcing th e change in hours. B anks in o th er n o rth e a st N ebraska tow ns have previously changed h o urs to close at 3 p. m., it w as stated. George S. Farran George Sam uel F a rra n , 73, farm er, m erchant, b an k er and construction m an and long tim e resid en t of W ayne and M adison counties, died last m onth at a Sioux City, Iowa, hospital. In 1936, he becam e p resid en t of Winside S tate Bank, W inside, N ebraska, w hen it w as organized and continued as such u n til th e tim e of his death. In Charge W hile th e board of directors of the B ank of M adison, M adison, N ebraska, have not tak en any action nam ing a cashier to succeed G. E. Benning, de ceased, N. S. Strom , form erly one of th e assistan ts to th e cashier, is in charge as m anager. L E - L A C Y BANKS AND THEIR CUSTOMERS H A V IN G BUSINESS IN THE ST. JO E AREA ARE INVITED TO USE THE SERVICES OF THIS BANK FOR PROMPT AND EFFICIENT HANDLING OF THEIR ITEMS. 'Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1945 O U R 5 0 th YEAR 57 offers to p u rchase th e p lan t w ere m ade as early as last fall, b u t w ere declined. X L inn F. Campbell, p resident of the B yron Reed Company, realtors, has been elected a director of th e W orld P ublishing Company, p u b lisher of th e Om aha W orld-Herald. He fills a new post on th e board. He began w ith th e B yron Reed Com pany as an office boy w hen he w as 15. He is a d irector of th e U nited S tates N ational B ank of Omaha. MAHA b an k deposits totaled $417,512,079 a t th e close of business Ju n e 30, according to figures in re sponse to a b an k call from th e Comp tro lle r of C urrency. T his w as an in crease of $30,642,437 over th e D ecem ber 30, 1944, figure, w hich w as $386,869,642. L oans aggregated $53,125,656 on Ju n e 30th, an in crease of $3,260,055 over D ecem ber 30th figure of $49,865,601. The Ju n e 30th figures, by individual ban k s Mrs. F. H. D avis, w idow of F. H. D avis, long presid en t and board ch air O .X O m aha N a t io n a l............ U . S. N a t i o n a l .............. F ir s t N a tio n a l .............. L iv e S tock N a t io n a l. . S tock yard s N a tio n a l . . P a c k e rs N a t io n a l......... D o u g la s C ou n ty B a n k . N o r th S id e B a n k ......... S o u th O m ah a S a v in g s D ep o sits L oans $146,624,012 $15,499,253 83,317,341 7,673,524 78,031,549 13,823,426 66.590.037 19,875,011 23.156.038 2,674,057 8,298,183 934,614 5,853,211 692,195 3,984,431 241,933 1,657,277 711,643 T o ta ls .............................. ,$417,512,079 $53,125,656 m an of th e F irs t N ational B ank of Omaha, died recen tly in Omaha at th e age of 92. She w as th e d au g h ter of Bishop R obert H. C larkson, first E p is copal bishop of N ebraska, after w hom C larkson H ospital in Om aha is nam ed. S urviving are a son, Thom as L. D avis, w ho succeeded his fa th e r as p resid en t of th e F irs t N ational B ank of Omaha; tw o daughters, Mrs. W alter B. R oberts and Mrs. Mene Bohling, of Omaha; tw o grandchildren, L ieu t, (j.g.) John F. D avis, in th e N avy overseas and on leave from his duties at the F irs t N ational Bank, and Mrs. Jo h n L auritzen, Omaha. T here are th ree great-grandchildren. A lvin E. Johnson, presid en t of th e Live Stock N ational B ank of Omaha and tre a su re r and d irector of th e F a rm Crops Processing C orporation, con firm ed a rep o rt in W ashington th a t an offer to p u rchase th e Om aha in d u strial alcohol plant, operated by th e FCPC, has been received, b u t said th e board of directors had not m et to con sider it. The rep o rt w as th a t a large d istillery m ade th e offer. P revious In d iv id u al figures for D ecem ber 30, 1944: D ep o sits L oan s O m ah a N a tio n a l ....................$142,649,470 $14,770,470 U . S. N a t io n a l.......................... 78.487.718 7.212.314 F ir s t N a tio n a l ....................... 72,132,315 12,973,680 L iv e S tock N a t io n a l............ 56,827,127 9,843,785 S tock yard s N a t i o n a l ............ 19,650,891 2,466,040 P a c k e rs N a tio n a l ................. 7,186,531 998,364 D o u g la s C ou n ty B a n k .......... 5,084,833 768,014 N o r th S id e B a n k ................... 3,391,610 229,336 S o u th O m ah a S a v i n g s . . . . 1,459,147 603,598 T o ta ls N A $386,869,642 $49,865,601 T I MILTON TOOTLE, JR. P R E S ID E N T O N A L N V IC E P R E S I D E N T E. H. SCHOPP V IC E P R E S I D E N T A S S T . C A S H IE R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A MILTON TOOTLE, III GRAHAM G. LACY O UR 5 0 th YEAR B FRED T. BURRI A S S T . C A S H IE R K Fred W . Thom as, vice presid en t of th e F irs t N ational B ank of Omaha, has been elected p resid en t of th e Omaha lib rary board, succeeding B ruce Mc Culloch, editor of th e Omaha JournalStockm an, w ho becam e presidentem eritus. Mr. T hom as is a form er re g en t of th e U niversity of N ebraska, and is a tru ste e of Doane College, Crete, N ebraska, and vice presid en t of B row nell Hall, Om aha g irls’ school. R ay F. S lizew sk i has been prom oted from a ssistan t cashier to vice p resi den t of th e South Omaha Savings Bank, Clarence F. W itt, president, an nounced. Mr. Slizewski began his b an king career a t th e Stock Y ards N a tional B ank of Om aha in 1928 and w as w ith th a t in stitu tio n u n til 1942. A grad u ate of South H igh School, Omaha, and m em ber of th e A m erican In stitu te of B anking, he is also a m em ber of th e Om aha Ju n io r Cham ber of Commerce. Mr. and Mrs. Slizew ski have th re e children. H arry G reenw ay, Omaha in v estm en t banker, has purchased th e W. R. M atthew s residence at 123 N o rth T h ir ty-eighth A venue in Omaha. A ssessed v alu atio n of th e F ir st N a tion al Bank building in Om aha re cently w as cut from $450,000 to $400,000 by th e board of equalization. The land assessm ent rem ain s th e same, $440,640. A pproxim ately s i . R. E. WALES C A S H IE R $800,000 of South JOSEPH, MO. M e m b e r F e d e r a l D e p o s it I n s u r a n c e C o r p o r a tio n E. L. GRUME A S S T . C A S H IE R N o rth w e ster n Banker August 1945 58 • N E B R A S K A Om aha bridge bonds outstanding, now d raw in g 4 p er cent in terest, w ill be refunded at 1!4 p er cent. City com m issioners of O m aha voted to accept a proposal from th e Om aha banks, w hich own th e bonds, to accept re funding bonds at th a t rate. The b an k s p reviously had proposed IV2 per cent, b u t th e low er ra te w as agreed upon at conference w ith th e com m issioners. The low er ra te is ex pected to save $20,000 in te re st a n n u ally and to h a ste n th e day w hen th e bridge w ill be debt-free. L egislation recen tly enacted by Con gress m akes it possible for th e F ed eral L and B anks to close loans p ro m p t ly and to serve m ore farm ers w ith o u t th e necessity of a second m ortgage, Com m issioner Loan, according to E. N. Van H orne, p resid en t of th e F ed N E WS eral L and B ank of Omaha, w hich cov ers N ebraska, Iowa, South D akota and W yom ing. Up to th is tim e, land ban k s have been lim ited to a loan of 50 p er cent of th e appraised norm al value of th e land, plus 20 p er cent of th e p erm an en t im provem ents, w hereas now th ey can loan up to 65 p er cent of th e norm al value of th e security. L and B ank Com m issioner Loans w ill be continued for one y ear from Ju ly 1, 1945, and can be m ade up to 75 p er cent of th e norm al ag ricu ltu ral value of a farm . K enn eth G. H arvey, p resid en t of the Douglas County B ank of Omaha, in su b u rb an Benson, has sold his 160acre livestock feeding farm , th ree m iles w est and one mile south of Mr. Your account in this bank is under the close personal super vision of officers who know from long experience how best to serve you in Nebraska's Capital City. (ONTINENTAL RATIONAL (!) Bank LINCOLN Member Federal Deposit Insurance Corporation N orthw estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19^5 • H arv ey ’s co u n try hom e at 144th and C enter streets, w est of Omaha. The farm w as bought by Jo h n F arb er, p resid en t of th e Service Life In surance Com pany of Omaha, for about $35,000. Mr. H arvey had ow ned th e farm six y ears and had fed as m any as 1,000 head of stock a year. O. H. E lliott, of the F irs t N ational B ank of Omaha, w as called to Boze m an, M ontana, by th e death of his m other, Mrs. S. F. E lliott, w ho died in Los Angeles. R ites w ere at Bozeman. L ester E. Souba, em ploye of th e Live Stock N ational B ank of Omaha 10 years, has tak en a position as life u n d e rw rite r for th e E quitable Life Com pany of Iowa, effective Ju ly 1st. C. W. Mead w as re-elected presid en t of th e Om aha Y. M. C. A. at th e an nual m eeting. H enry H ovey, form er Om aha and San Antonio, Texas, banker, and his children, Constance and F o rd Hovey, II, have m oved to th e ir new Omaha residence at 5023 California street. Mrs. D ale Clark, w ife of th e p resi dent of th e Om aha N ational Bank, has been re-elected a d irector of th e Oma ha Sym phony O rchestra A ssociation. Mrs. F ra n k Conlin is the new p resi dent, succeeding Miss E ileen KelikerJeffers, w ho has served five years. Am ong boxholders for th e first AkSar-Ben horse racing m eet since 1942 are C. L. Landen, E. T. R ainey, H. M. B u sh n ell, E. F . P ettis, A lvin E. John son, Jam es P. Lee, T. L. D avis, and Ray R. Ridge. V. J. Skutt, vice presid en t of th e U nited Benefit Life In su ran ce Com pany of Omaha, has been nam ed OUR 50th YEAR 59 * N E B R A S K A g en eral ch airm an of th e 1945 U nited W ar and C om m unity F u n d drive in Om aha. Mr. S k u tt w as a ssista n t gen eral ch airm an last y ear u n d e r L in n P. Cam pbell and ch airm an of th e b u si ness division th e y e a r before u n d er D ale Clark. The C ontinental Illinois Bank and T ru st C om pany of Chicago w as re vealed as th e firm w hich agreed to lend th e N ebraska P ow er Com pany seven m illion dollars at 2 XA p er cent in te re s t to refinance its 6 and 7 p er cen t p re fe rred stock. T his cam e to lig h t at a h e a rin g before th e N ebraska R ailw ay Com m ission on w h e th e r NPC should be given a u th o rity to borrow th e m oney. R ailw ay com m ission m em bers de cided to go ahead w ith th e h e a rin g de sp ite co ntentions of objectors to th e stock re tire m e n t plan, w ho had asked a jo in t h earin g w ith th e F ed eral P ow e r Com m ission and h ad contended th a t th e S tate R ailw ay C om m ission w as w ith o u t ju risd ictio n because NPC is a M aine corporation. N E WS* In 1902 he sold his in terests in the com pany and founded th e bank. He also had. served as director and m em b er of the finance com m ittee of the Security M utual Life In su ran ce Com pany, as ch airm an of th e board of di rectors of th e Com m ercial T ru st Com pany, and at one tim e as chairm an of th e City P a rk Commission. L incoln ’s three d ow n tow n and a like n u m b er of su b u rb an banks show ed large gains in deposits on Ju n e 30th th is year, com pared w ith th e sam e date a year ago. D uring th e «ame period gains also w ere noted in loans b u t they did not keep pace w ith th e increase in deposits. T his w as show n in th e re p o rts of th e banks, calls for w hich as of Ju n e 30th, have been m ade by the com ptroller of th e currency. The gain in deposits, as show n by th e rep o rts of th e six banks, w as $27,771,450.11, th e aggregate for Ju n e 30th th is y ear being $140,662,767.58, com pared to $112,891,317.47 on the sam e date a y e a r ago. th e b an k ers w ays and m eans of p re serving th e soil of N ebraska for the assurance th a t loans made to farm ers w ould be safe. “The soils of th e state are th e foun dation upon w hich our ag ricu ltu re m u st be bu ilt,” said Dean B urr. “M eth ods of p reserv in g this basic resource are m atters of first im portance to all of us.” J. F. P eters, N ebraska banking direc tor, atten d ed a three-day m eeting at Chicago w ith sm all loan supervisors of four states. P eters said th e problem of g ran tin g ch a rte rs to sm all loan com panies w as discussed a t the m eeting. States re p resen ted w ere N ebraska, Iowa, Illinois and W isconsin. C l oses Bank C. E. Nelson, cashier of th e F a rm ers S tate Bank, Keene, N ebraska, w ho has been w ith th e b an k for 25 years, is closing his ban k to becom e a p a rtn e r in th e Jo h n Boasen In su ran ce office in K earney. Mr. N elson w ill handle dif feren t types of insurance, loans and real estate. W . W. Burr, dean of th e N ebraska college of agriculture, in a d in n er speech a t th e an n u al b an q u et of the m ortgage b an k ers sh o rt course, told Our P o lic y OFFICERS F R A Z E R L . FO R D P r esid en t J . A . G R E E N F IE L D V ic e P r e sid e n t H A R R Y H . MOHLER V ic e P r esid en t th o s. M ORRIS WELL, 86, fou n d er and p resid en t of th e N ational B ank of Com m erce, died last m o n th a fte r an extended illness. B orn in F rance, Mr. W eil cam e to th e U nited States in 1875, settlin g first in A tchison, K ansas. He su bsequently lived in St. Joseph, M issouri, M uscotah an d B u rr Oak, K ansas, com ing to L incoln in 1891 as an em ploye of th e L incoln P a in t and Color Company. BANKS J . M cCu l l o C ashier ugh M. E . B L A N C H A R D A s s is ta n t C ash ier L O U IS J . K O M ER A s s is ta n t C ashier YOU W ILL FIN D T h e h a n k in g officers h e re have a frie n d ly , h e lp fu l in te re st in your liv esto ck p ro b le m s. F ir st S t. « lo se p li STO CK Y A R D S B A N K South St. Joseph, Mo. Bought and Sold Confidentially and with becoming dignity BANK E M P LO Y EES P LA C ED . 40 Years S a tisfa c to ry Service “ O nly B ank in th e Y ards” Member Federal Deposit Insurance Corporation THE CHARLES E. WALTERS CO. OM AHA, N EB R A SK A O U R 5 0 th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e ster n Banker August 1945 60 A We Invite You to Send Us Your Out-of-Town Items fo r Credit Special A ttention G iven C ollection o f G R A IN D RA FTS L ive S tock N ational B ank O M A H A (Member Federal Reserve Bank and Federal Deposit Insurance Corporation) N orth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1945 OUR 50th YEAR 61 Veteran Pilot Returns IO W A The F irs t S tate B ank of Audubon, Iowa, announces th a t Lt. E dw in L. H aals has re tu rn e d to th e ir employ. Fifty-seven m issions in th e Pacific area as a pilot of a B-25 earned him his h o n orable discharge last m onth. He had been connected w ith th e F irs t S tate B ank for six y ears p rio r to en terin g th e service in October 1942. N EW S FRANK W ARNER S ecr eta ry D es M oines R. R . B R Ü B A C H E R P r e s id e n t S io u x C ity W arner Leaves C ity National E d w ard M. W a rn e r resigned as p re sid e n t of th e City N ational Bank, C linton, Iow a, effective A ugust 1. In an n o u n cin g his resig n atio n as p re sid e n t of th e bank, Mr. W a rn e r said he w as not p rep ared a t th is tim e to announce his fu tu re plans. Mr. W a rn e r cam e to th e City N atio n al B ank as p resid en t on T han k sg iv in g He has been active in W ar L oan drives in addition to Red Cross and C om m unity F ed eratio n cam paigns. He is a m em ber of th e Clinton C ountry Club, th e K iw anis Club and v arious M asonic bodies. Heads Commercial Club J. H. Dye, cashier, V alley S tate Bank, Rock Valley, Iowa, has been elected p resid en t of th e Rock V alley Com m er cial Club. W hile Mr. Dye has been th e re only tw o years, he has becom e w ell know n th ro u g h o u t th a t te rrito ry . Two New Employes R osem ary B rau n and R obert De Boer are new em ployes of th e A lton Savings Bank, Alton, Iowa. Miss B rau n succeeded A rm ella P o tteb au m w ho h ad been w ith th e b an k th re e years. Double Capital T he board of directors of th e P a r k e rsb u rg S tate Bank, P ark ersb u rg , Iowa, voted recen tly to increase th e capital stru c tu re of th e b an k from $25,000 to $50,000, tak in g th e m oney from su rp lu s and undivided profits. E. M . W A R N E R R e s ig n s as C lin to n B a n k H e a d Day, 1936, and since has been identified w ith v ario u s civic and o th er com m u n ity activities, as w ell as p ro m in en t in b an k in g circles. In annou n cin g his plan s for th e fu tu re Mr. W a rn e r said he and Mrs. W a r n e r sincerely re g re t th e y m ake it n ecessary for th em to leave C linton. “W e h ad plan n ed to m ake Clinton o u r hom e for th e rem ain d er of our lives,” he said. Mr. W a rn e r cam e to C linton a fte r an exten d ed experience in banking, w hich sta rte d in th e U nited S tates N ational B ank in Omaha, N ebraska, in 1902. F o r th e en su in g 20 y ears he w as engaged in b a n k in g in N eb rask a and W yom ing an d su b seq u en tly w as identified w ith a n u m b er of Chicago b an k s and o th er financial in stitu tio n s. O U R 5 0 th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis m s Io w a Convention R. R. B r u b a c h e r, p r e s id e n t of th e Ioiva B a n k e r s A sso cia tio n , announces th a t to con form ■ to th e O D T r e stric tion s on con ve n tion s, th e Ioiva A s s o cia tio n w i l l confine its 1945 an n u al session to a s tr e a m li n e d m e e ti n g c o m p r is in g fifty or less delegates. T h e 1945 co n ve n tio n , con sistin g of business sessions on ly, w i l l be h e ld at th e H o te l F o rt D es M oin es, in Des M oines, on W e d n e s d a y , S e p t e m b e r 19th. Sessions w i l l co n ve n e a t 10:00 a. m. a n d 1 :30 p. m., w i t h a d jo u r n m e n t p la n n e d a t 3 :3 0 p. m. A d d i tio n a l in fo r m a tio n on th e m e e tin g w i ll b e p u b l i s h e d in th e S e p t e m b e r i s s u e o f th e N O R T H W E S T E R N BANKER. On Leave C aptain J. N. Hess, form erly w ith th e F irs t N ational Bank, New H am p ton, Iowa, w as hom e on a 30 day leave last m onth. C aptain H ess w as a squadron leader w ith th e A rm y Air Forces, based in E ngland. He com pleted his m issions, p articip atin g in th e air offensive ag ain st G erm any. D uring his stay in E ngland, C aptain H ess m arried H ilda Jeffries of Bed ford, E ngland. D uring th e 7th W ar L oan drive, th e F irs t N ational B ank sen t out several h u n d red le tte rs to a select group of custom ers. The le tte r explained th e advantages of th e E bond and urged its purchase. The re su lts of th e le tte r w ere quite pronounced w ith definitely increased sales. Begins 33rd Year Officers and directors of th e Oakland Savings Bank, Oakland, Iowa, w ere elected at th e an n u al m eeting of th e stockholders w ith W. L. Spencer, presi dent, being nam ed to serve his th irty th ird y ear as head of th e institu tio n . J. J. E vans w as re-elected vice presi dent and cashier, H arold Spencer as a ssistan t cashier, Mrs. Donald J. Spen cer and Mrs. M argarite Joh n so n as bookkeepers, W. L. W hite and E. E. Spalti as directors. O ther directors are W. L. Spencer, J. J. E vans and H arold Spencer. D eposits of th e O akland b an k reached a new high d u rin g th e last year. C ashier E vans announced to th e stockholders, to tal resources show ing $2,483,764.99, deposits totaled $2,372,639.99. Iowa Over the Top Iow a w en t gloriously over th e top in th e M ighty 7th W ar L oan Cam paign, selling $97,581,000 w o rth of E bonds as com pared to th e to tal quota of $82,000,000. T his is, indeed, a fine record and m uch credit is due to Iow a banks for th e fine show ing made. Sales to individuals covering all types of issues and including E Bonds, am ounted to $172,880,000. Total sales including all types of securities and all types of investors am ounted to $369,017,000. Iow a ran k ed second in th e n atio n on N orth w e stern Banker August 1945 62 • percen t of E Bond qu o ta sold. It is no tew o rth y th a t o u r sta te could have been first had w e sold $246,000 m ore in E Bonds. T his w ould have been about $2,500 m ore p er county. W e could have been first if M ontana, w hich w on out by tw o-tenths of one p e r cent, h ad sold $35,000 less in E Bonds. We, of course, w ish w e h ad b eaten M ontana. H ow ever, we are pleased w ith th e resu lts. I t w as fa r beyond all expectations as w e en tered th e final w eek of th e cam paign. D uring th e final w eek we sold ap proxim ately $19,000,000 w o rth of E I O W A N EW S • Bonds as a trem endous w ave of b u y ing w as launched in w hich Iow a b a n k ers did w onderful w ork. m an, Mr. G othier, Mr. Boyd, C. C. Van Dyke, P e te r B. Jansen, F. M. T recker and A rnold W. P etersen. New Officers Announced Directly to the Pacific Officers and directors of th e F irs t T ru st & Savings B ank of A nthon, Iowa, for th e new fiscal year w ere elected at th e an n u al m eeting of directors and stockholders last m onth. Officers elected w ere E a rl A. Hoff m an, president; F ra n k C. Gothier, vice president, and H om er Boyd, cashier. N am ed as directors w ere Mr. Hoff Staff S ergeant Donald J. Spencer, son of W. L. Spencer, presid en t of th e Oak land Savings Bank, Oakland, Iowa, w ith a T hu n d erb o lt F ig h te r G roup in th e E u ro p ean assem bly area is being deployed d irectly to th e Pacific fight ing area. He has been overseas 18 m onths and holds th e P resid en tial U nit C itation and th e E u ro p ean T hea te r of O perations Ribbon w ith six b at tle stars. Add to Staff Mrs. D orothy W agner has recen tly joined th e staff of the Citizens S tate Bank, Donnellson, Iowa, as a teller and bookkeeper. Increased volum e of business as indicated by th e ir recen t statem en t w ith resources to taling al m ost $2,000,000, has m ade additional help necessary. The D onnellson b an k w ent over th e top in th e recen t bond drive selling 114 p er cent on E bonds and m aking th e ir to tal bond sales 149 p er cent over quota. BROAD—But Specific, Too! First National Bank service in Sioux City is both general and specific. While well-equipped to handle your down-town items, it also attracts many banks who want experienced service on grain, hay and live stock items. Final Dividend Our officers understand farm prob lems from years of practical experience. They invite you to use this bank in Sioux City for all your correspondent items. H olders of th e tru s t certificates of th e A ndrew Savings B ank of A ndrew , Iowa, w ill receive th e ir final dividend S eptem ber 15, 1945, th u s receiving a full 100 cents on a dollar. Elects AIB Officers A. G. Sam, J. P. Hainer, V ice President Fritz Fritzson, V ice Pres, and Cashier J. T. Grant, Assistant Cashier President J. R. Graning, Assistant Cashier E. A. Johnson, Assistant Cashier W. F. Cook, Auditor Up and About Again NATIONAL BANK S ’fo UXC /f l/ K inley S m ith of th e Live Stock N ational Bank, Sioux City, Iowa, has been elected p resid en t of the Sioux City ch ap ter of th e A m erican In stitu te of B ankers. O ther officers nam ed w ere E. A. Johnson, F irs t N ational B ank vice president, and A1 V lenderm an, W ood b u ry C ounty Savings Bank, secretarytreasu rer. L eonard C. L am ar, Toy N ational Bank, w as appointed by th e national p resid en t to serve as associate council m an for Iowa. All are Sioux City bankers. A rnold R u ther, vice p resid en t of th e Clarence Savings Bank, Clarence, Iowa, w ho has been on th e sick list for th e p ast six m onths, is again able to m ake daily appearances at th e bank. ★ Tama Bank Bought Out N ine Tam a, Iowa, businessm en have purchased th e controlling in te re st in N o rth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19b5 O U R 5 0 th YEAR 63 The money your depositors re the day of receipt. All you have to do is ask your ceive from the sale of live stock is speedily trans shippers to instruct their com ferred to their credit in your mission firms to route the pro Bank if routed through us. The ceeds of their live stock sales Stock Yards post office is just through this Bank. We shall be across the street and the advice glad to supply you with instruc of credit is mailed to you on tion cards for this purpose. in Chicago £TA e LIVE STO CK BANK € ^ C(d / u C U ^ O ESTABLISHED 1868 U N I O N S T O C K YARDS D A V I D H. R E I M E R S , P r e s i d e n t Member Federal Deposit Insurance Corporation O U R 5 0 th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker August 19^5 64 * th e T am a S tate B ank from th e H. H. P eyto n fam ily of D uluth, M innesota. J. H. N eil succeeds H. H. P ey to n as president, and R ay A dair succeeds Lew is R. P ey to n as vice p resident. D irectors are Mr. Neil, Mr. A dair, A l b e rt and H u b e rt K ubicek, F re d Goza and R. L. Beale; H u b e rt K ubicek is cashier; P h ilip Sevick and A nna Jabe, assista n t cashiers; M erle Ream s, teller, and D orothy C arpenter, bookkeeper. On an inactive Status Maj. H a rry W. Schaller, p resid en t of th e C itizens-First N ational B ank of IO W A NEWS S torm Lake, Iowa, w ill be placed on an inactive statu s by th e W ar D epart m en t at th e end of his p resen t 60-day te rm in al leave. He en tered service th re e y ears ago and sp ent 22 m onths overseas. To G o to Madrid L. M. L anning has resigned his posi tio n as cashier at th e G rinnell State B ank, G rinnell, Iowa, effective Septem b er 1st. Mr. L an n in g w ill becom e associated in an executive capacity w ith th e City S tate B ank of M adrid w hich he helped ^M EM BER F E D E R A L H O M E L O A N BA N K STATEMENT OF CONDITION June 30, 1945 HOME FEDERAL SAVIN G S AN D LO A N ASSOCIATION 414 Sixth Avenue Des Moines, Iowa Officers and Directors Arthur S. Kirk President Dr. Lawrence E . Kelley Vice President C. B . Fletcher Secretary-Treasure? Edith Keeling Assistant Treasurer Henrietta Albright Assistant Secretary Harold J . Howe Counsel ASSETS C ash .......... ................ - ........................................$ 285,732.35 U n ite d S ta te s W a r S a v in g s B o n d s........ 584,137.50 S to c k in F e d e ra l H om e L o a n B a n k ......... 100,000.00 F i r s t M o rtg a g e L o a n s .................................... 4,899,476.03 R e p a y a b le on m o n th ly p a y m e n t p la n . L o a n s on P a ssb o o k s a n d C e rtific a te s.— F u r n itu r e a n d F ix tu r e s ........................... Office B u ild in g ..... O th e r A sse ts ...................................................... J. T . Schilling Iowa Power & Lig ht Co. Dr. John L . Hillman President Emeritus Simpson College Capt. Jonathan M. Fletcher In M ilitary Service NEW LOW INTEREST RATES We will make a loan on your home as low as 4% interest without commis sion on appraisal values of 50%. 6,522.01 12,664.34 126,243.67 2,708.68 T h e s e a r e p r e p a i d e x p e n s e ite m s . Dr. Marvin J. Houghton Dentist Joseph N. Chamberlain Rea! Estate & Insurance $6,017,484.58 L I A B I L I T I E S S a v in g s a n d In v e s tm e n t A c co u n ts........ $5,555,474.42 114,534.27 N e w lo a n s o n w h ic h th e s e f u n d s h a v e n o t b e e n d is b u r s e d . James Kelly Jam es Kelly, 87, pro m in en t Des Moines county farm er and banker, died in B u rlington recently. Mr. K elly w as one of the original organizers of th e F a rm e rs & M er ch ants Savings B ank th ere and served as a director u n til 2 y ears ago. Vet Joins Bank L aV erne Staker, w ho w as honorably discharged from th e arm y in May afte r serving in A frica and Italy, as sum ed duties in th e F a rm e rs Savings Bank, Garw in, Iowa. He had been em ployed by th e T riple A in Des M oines before going into service. Resigns Presidency Charles A. W illiam s, Sr., p resid en t of th e M ahaska S tate Bank, Oskaloosa, Iowa, for th e last 11 years, has resigned as head of th e b an king house. B ut directors elected him as chairm an of th e board in w hich capacity he w ill serve. R ussell S. H ow ard, vice president, becom es th e new president, succeed ing Mr. W illiam s, and H. H. W illiam s, cashier, w ill serve as vice president. F re d D usenberry has been elected as cashier and R alph Hoar, recently re tu rn e d from Pacific service, has been m ade first a ssistan t cashier. Takes Bank Position W. C. G rangaard, w ho served nine y ears as tre a s u re r of A llam akee county, has resigned to accept a posi tion as a ssistan t cashier in the W aukon S tate Bank, W aukon, Iowa. He will succeed W illard C. K iesau. Starts Duties L. H. V ardam an, w ho has been cash ier of th e F a rm e rs’ S tate B ank at KeoT h e s e a r e c u r r e n t a c c o u n ts . sauqua, Iowa, and w ho recen tly p u r D iv id e n d s D e cla red a n d U n p a id ...................................... 64,980.82chased th e controlling in te re st in th e T o b e p a id in c a s h J u l y 1, 1 9 4 5 , o r c r e d i te d o n s a v in g s a c c o u n t. E m erson S tate Bank, E m erson, arriv ed R e se rv es a n d U n d iv id e d P ro fits: last m onth to tak e up his duties as G e n era l R e se rv es ...........$157,472.53 presid en t of th e bank. Specific R e se rv es ........ 77,676.29 O th e r L ia b ilitie s ............................................. U n d iv id e d P ro fits _____ 38,990.00 8,356.25 274,138.82 $6,017,484.58 ( We invite you to call and talk with us about starting a savings I < account. Or write us for our booklet explaining how to open a > ( savings account by mail. Each account is insured up to $5,000. j We are headquarters for ( G. I.) Soldiers Loans and are in the m arket fo r all good home loans at rates from U°/o to 6% according to classification. W e are n o w a s ix m illio n d o lla r co m p a n y https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C. W. A nderson to organize in 1934. He w ill join Mr. A nderson in th e opera tion of th e bank. E a c h a c c o u n t is in s u r e d n p to $ 5 ,0 0 0 .0 0 . L o an s in P ro c e ss................ ............................ P H O N E 3-0555 N orth w e stern Banker * August Í9k5 Everly Bank Pays Dividend The E v erly S tate Bank, E verly, Iowa, afte r only 14 m onths of opera tion, paid th e ir first dividend last m onth to stockholders in addition to increasing th e ir su rp lu s fund from $6,500 to $8,500 and th e ir undivided profits from $1,407 to $2,354. The dividend th a t w as m ailed to all of th e p resen t stockholders am ounted to $3 per share of stock. O U R 5 0 th YEAR 65 * IOWA Add Assistant Cashier Post At a m eeting of the board of di rectors of the Security State Bank, Algona, Iowa, James R. Murtagh was elected to the position of assistant cashier. He has been a member of the armed forces since March 4, 1942, and has just recently been discharged. His position w ith the bank is not a re placement, but is an addition made necessary by the large increase in business. Observe Golden Anniversary The Forest City Bank and Trust Company, Forest City, Iowa, cele brated its golden anniversary of fifty years last month. Several years ago the old Forest City National gave up its national charter and transferred to a state bank. The last statem ent published by the bank show s that it has demand de posits totaling $1,491,771 and time de posits of $248,715. The assets of the bank total $2,410,676. The present officers af the bank are: H. R. Cleophas, president; H. N. Rye, cashier; Henry Gjellefald and C; O. Nerby, assistant cashiers. The di rectors are: A lvin E. Clauson, H. R. Cleophas, Skiles Core, B. J. Perry and H. N. Rye. Edward B. Zbanek Edward B. Zbanek, 64, manager of the Merchants National Bank build ing, Cedar Rapids, Iowa, died recently. He was born in Cedar Rapids, and lived there all his life. He had been w ith the Merchants National since 1900, w hen he was first employed as a m essenger boy. Prior to that time he was w ith the Citizens National Bank for two years. At the Merchants National he served progressively as a transit department clerk, auditor, teller, assistant cashier and vice president. Attended Bank School C. E. Miller, who is cashier of the Iowa Trust and Savings Bank, Estherville, Iowa, attended a graduate school of banking at Rutgers U niversity in N ew Brunswick, New Jersey, recently. Pay 5 Per Cent Dividend Paym ent of another 5 per cent diviYOUR STATE BANKERS ASSOCIATION OFFICIAL SAFE, VAULT AND TIMELOCK EXPERTS F. E. DAVENPORT & CO. NEWS • dend to depositors holding participa tion trust certificates in the old State Savings Bank, Council Bluffs, Iowa, who are the trustees of the assets of the old bank, was announced last month. This is the eleventh dividend de clared by the trustees, bringing the total up to 95 per cent paid to deposi tors holding participating trust certifi cates in the old bank. Including the present dividend just declared, more than $1,260,000 has been paid to the holders of the trust certifi cates, according to Clyde A. Blanch ard, executive vice president of the State Savings Bank. The dividends just announced amounted to about $90,000. Minnesota Cashier J. E. Brady has accepted the position of cashier in a bank at Luverne, Minne sota. Mr. Brady has been cashier in the First State Bank, Mapleton, Iowa, the last year. J. R. W elch has been elected cashier at the First State Bank to succeed Mr. Brady. Fred H. Welch, president; THE NATIONAL BANK OF WATERLOO --------- --------------- ----- “ STATEMENT OF CONDITION A s of June 30, 1945 -------------------- ---------------------- ------------------ — ----------------- ----- RESOURCES Cash and D u e fr o m B a n k s________________________ $ L oans and D isc o u n ts______________________________ U. S. G overn m en t S e c u r itie s_______________________ State, C ou nty and M u n icip al S e c u r itie s------------------O ther B o n d s _______________________________________ Stock in F ed eral R eserve B a n k ____________________ O v e r d r a f t s ________________________________________ F u rn itu re an d F ix tu r e s____________________________ A ccrued In terest r ec e iv a b le ________________________ 3 ,8 1 9 ,1 1 4 .3 6 2 ,6 3 5 ,8 2 0 .5 7 1 0 ,7 0 9 ,9 7 4 .3 8 3 ,0 3 5 ,8 4 3 .5 4 3 5 0 ,1 3 2 .9 8 1 8 .0 0 0 .0 0 4 1 6 .6 3 6 ,6 7 0 .2 1 6 6 ,4 5 1 .1 1 $ 2 0 ,6 4 2 ,4 2 3 .7 8 LIABILITIES C ap ital S tock — C o m m o n _________________________ $ 2 5 0 ,0 0 0 .0 0 S u rp lu s ___________________________________________ 3 5 0 ,0 0 0 .0 0 2 0 6 ,4 6 5 .5 8 U n d ivid ed P r o f i t s ________________________________ R eserve fo r T a x e s, In terest, e tc .___________________ 1 4 1 ,1 4 5 .4 7 In terest C ollected but not E a r n e d ________________ 5 ,7 3 1 .2 4 D e p o s i t s ___________________________________________ 1 9 ,6 8 9 ,0 8 1 .4 9 $ 2 0 ,6 4 2 ,4 2 3 .7 8 ★ OFFICERS J a m es M. G r a h a m ....... President Ch a s . S. McKiNSTRY....Fice Pres. R. L. P e n n e ............... ........Cashier H. F. HoFFER....Assisfemi Cashier R. L. K ilgore ....A ssistant Cashier A. J. B u r k . ...... Assistant Cashier Member Federal Reserve System Member Federal Deposit Insurance Corporation OM AHA O UR 5 0 th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e ster n Banker August 1945 66 * IOWA and Lloyd Crow, vice president; W il lard G. Sanford and Orval Spahn are directors. Bond Sales Over Million Sale of war bonds through the Peo ples’ Savings Bank at Laurel, Iowa, passed the m illion dollar mark last month, according to Hugh McCleery, cashier of the institution. That total has been reached after the constant ac cumulation of purchases through the various drives since war financing be gan and according to Mr. McCleery was attained through public co-opera tion of the type which is w inning the war. Larger Quarters To take care of a growing volum e of business, the Installm ent Loan De partment of the Iowa-Des Moines Na tional Bank & Trust Company has moved to larger and more convenient quarters on the first floor of the bank building at Sixth and W alnut in Des Moines, Herbert L. Horton, president of the bank, announced recently. The Department is now located in easily-accessible, air-conditioned offices on the ground floor just off the Sixth avenue corridor in Room 104, or may be entered from the street at 215 Sixth avenue. The new quarters have been de signed and equipped to insure prompt NEWS • ness and efficiency in handling install ment loans and receiving payments. They include a public area for m eet ing customers, an accounting and rec ord department, private offices for con ferences, and walnut counters at the payment windows conforming to the counters used in the main banking room. Verne T. Bonnett, assistant vice president, and Gerald O. Nelson and Frank R. Sage, assistant cashiers, are officers of the department, which handles automobile, appliance, FHA modernization, equipment, home re pair, personal, G. I. business loans and insurance premium financing. Des Moines News Valley Savings Bank members and their families celebrated selling $340,000 in bonds, going 128 per cent over their quota, w ith a picnic at Walnut Woods State Park last month. Picnic games, w ith prizes, as w ell as picnic fare and awards presented winners of the two bond selling teams were features of the affair. First prize of a $50 war bond in one group w ent to Ida Mae E lm an of the statem ent de partment with second prize of a $25 bond going to H elen N ich olson , safety deposit department. M arcella Camp bell, bookkeeping department, won the $50 bond first prize of the other group " KILLS TW O BIRDS with ONE STONE’’One- 'address "" ing serves for enclosure and envelope. Tension Window Envelopes also save time, avoid errors and cut costs. Popular for mailing checks, statements receipts and correspondence. TENSION KNOWS HOW 1912 Grand Ave., Phone 4-4126, Des M oines 14, Iowa and Miriam M unson, PBX operator, won the second prize. All prizes were presented by W. W . Scott, vice presi dent. L u cille W esson was presented with a $10 bill by the employes of the bank for her work in issuing the bonds. A door prize of $5 was won by M arilyn Jones. The committee in charge of the picnic included AV. A\T. Scott, George Gill, J. R. A stley , E sth er H am ill and H elen N icholson. The Iowa State Bank has inaugu rated a new service feature recently in the form of a purchase club, a postwar project which enables customers to save now for goods to be released after peace comes. The program is the same as that of the Franklin Square Na tional Bank. N ew York. Olney S. W eaver who is principal of the Oak Park and Sabin schools helping in the bank during the summer holiday, is promoting the club plan. Bank totals according to the last statem ent have reached the $5,000,000 mark. Mark L ynn Johnson, 77, banker and real estate manager, died at his home in Des Moines last month. A director and chairman of the trust committee of the Central National Bank and Trust Company for 35 years, Mr. Johnson had been associated with the bank longer than any other officer or employe. R olfe O. W agner, president of the Capital City State Bank, has returned from a few w eeks vacation spent golf ing and fishing at Lake Okiboji. Semi-Annual Dividend Directors of the Central State Bank, State Center, Iowa, declared a semi annual dividend of $6 per share on the common stock outstanding July 1st, it was announced by E. S. Pitman, cash ier. They also announce the sale of the former Central State Bank building to Dr. B. M. Biersborn, who plans ex tensive remodeling of the building for his own use. The Central State Bank S carborough ^ C ompany First National Bank Building, Chicago N orth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1945 Horace A . Smith, Iowa Representative Des Moines, Iowa O U R 5 0 th YEAR 67 • I O W A N E W S • Through 4 wars and many panics and depressions Beautiful Country Home E S T A B LIS H E D W -------- > , STATIONERS V 1889 A BOOKBINDERS OFFICEOUTFITTERS^\^^_^^BUSINESS MACHINES Grand Ave . at Fourth Des Moines , 1a . No Market Losses le v a tio n of th e b e a u tifu l hom e o f PIo ICwe xaTe. cUuLRtivoEceDa tevhicedereonpisrea thsbidlue efffnrtooppnoft oethsite e F i r s t T ru s t & S a v in g s B a n k , of D a v e n p o rt, th e e n tra n c e of th e D a v e n p o rt C o u n try Club, R . O. B yerru m IF th e hom e o v e rlo o k s th e M ississip p i R iv e r a n d a ffords a b e a u tifu l v iew up an d do w n t h a t w ide ex p an se of w a te r. F o rm e rly a p a r t of th e L a n e e s ta te , th e hom e a t one tim e w as th e club house fo r th e n e a r-b y c o u n try club. M r. B y e rru m , a s tro n g a d v o c a te o f u n it a n d in d e p e n d e n t b a n k in g , is Io w a c a n d id a te fo r th e A m e ric a n B a n k e rs A sso c ia tio n e x e c u tiv e council. H e h a s been a c tiv e in A B A e n d e a v o rs fo r m an y y e a rs, h a s been s ta te v ice p re s id e n t fo r Io w a a n d Io w a m em b e rsh ip c h a irm a n . E x p e rie n c e d in b o th c ity a n d c o u n try b a n k s, he h a s th e a b ility to fo rc e fu lly a d m in is te r th e office w h ich he seeks. YOU INVEST YOUR MONEY -in o u r 3 % F ed e r a lly in s u r e d c e r is located in the bank building for merly occupied by the First State Bank which they purchased three years ago. Lieut, (j.g.) W. L. H aesem eyer serv ing w ith the N avy on an LST some where in the Pacific, is president of the bank. N EW S A N D VIEW S (Continued from page 19) in the United States outside of the Na tion’s capital. This was a part of the bank’s pub licity in connection w ith the 7th War Loan. The display opened auspi ciously w ith Vice Admiral F . H. Leary, USN, commander of the Eastern Sea Frontier and A lbert V. Moore, presi dent of the Moore-McCormack Lines, Inc., chairman of the Maritime Indus try division of the 7th War Loan Com m ittee as the principal speakers. W alter C. K im ball, president of the bank, presided. Outstanding repre sentatives of the War Shipping Ad ministration, the Navy, Coast Guard, United States Maritime Service, United Seamen’s Service, the Seamen’s Church Institute and marine labor unions t ific a t e s , have w h ic h sa fety , li q u id it y a n d f r e e d om fro m m a rk et lo s s e s . G eorge E. V irden, Secretary The Russell County Building & Loan Association RUSSELL, KANSAS Mr. danker: D o y o u k n o w that r e c e n tly , in th is te r r ito r y a lo n e , o v e r 1 0 0 b a n k s h a v e s u b sc r ib e d to th e D . A . S . A G R I C U L T U R A L D IG E S T T h e r e is n o o th e r a g r ic u ltu r a l in fo r m a t io n se r v ic e ju st lik e it. F o r s a m p le r e le a s e s a n d f u r th e r in fo r m a t io n w r ite to Doane Agricultural Service, Inc. B o x 3 0 2 , 2 0 6 P ly m o u th B ld g. You Should H ave It! O UR 50th YEAH https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D e s M o in e s 9 , Iow a H o m e O f f ie e — S t . L o u i s N orth w e stern Banker August 1945 68 O pens New Personal Loan Department T H E U n ion B ank & Trust Company, of O ttu m w a, Io w a, has re c e n tly m oved its P e rso n a l a n d In s ta llm e n t L o a n D e p a rtm e n t in to new q u a rte rs in a b u ild in g a d jo in in g th e b a n k . P ic tu re d ab o v e is th e e x te rio r a n d a n in te rio r v iew of th e new d e p a rtm e n t. T he fro n t o f th e b u ild in g is fa c e d w ith g laz ed tile , w ith sta in le ss ste el trim . T he in te r io r p ic tu re w a s ta k e n fro m th e s tr e e t e n tra n c e a n d i n c lu d ed a lo n g c o u n te r, w h e re L inda K itch en , a s s is ta n t m a n a g e r, is in te rv ie w in g tw o cu sto m ers. A t th e le f t re a r is th e p r iv a te office o f J. C. B lack ford , m a n a g e r, a d jo in in g w h ich is a c o n s u lta tio n room . T he q u a rte rs a re a ir c o n d itio n e d th ro u g h o u t. were present. The signal which opened the exhibit was sounded by 24-year-old Lieut. A llen Jorgensen, USMS, mer chant marine hero of three war theatres, who rang “eight bells” on a ship’s bell installed on the speaker’s table. Jorgensen was selected as the “typical American Merchant Mariner” to represent the 225,000 seamen now on active duty in the merchant marine, at the ceremonies. George A. M oeckly, assistant cashier DES MOINES BUILDING-LOAN & SAYINGS ASSOCIATION Oldest In Des M oines 210 6th Ave. D ial 4-7119 ELMER E. MILLER Pres, and Sec. HUBERT E. JAMES Asst. Sec. FO R Y O U R E N J O Y M E N T . . . of the Bankers Trust Company, Des Moines, has been elected president of the 6-foot Club. George says he is one of the smaller members of the Club even though he measures 6' IV2 " in height. The Club is composed of busi ness and professional men in Des Moines who are 6 feet tall or more. Banks Sold or Bought! quietly, quickly and in a personal manner JAY A. WELCH L isten to th e BAN K BROKER Haddam, Kansas “WORLD OF MUSIC" KRNT, 1350 KC 1 to 1 :30 p.m. Sundays “36 Years Practical Banking Experience” lÁJeóófinff S e r v ic e s C o u n s e l o n B a n k D . R . W E S S L IN G , P R E S ID E N T P la n to u se an a d v e r tis in g p r o g r a m o f w e ll w orded m essa g es c r e a te d by W e s s lin g S e r v ic e s , D e s M o in e s , I o w a P u b l i c R e l a t i o n s 2 )ed « N orth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1945 1/YjoineS 9 , J^ovua F. L. Ford, president of the First National bank of St. Joseph, Missouri, has increased the surplus account of his bank from $375,000 to $500,000, thus giving the bank a surplus account equal to the capital, which was already $500,000. In addition to this, First Na tional has undivided profits of over $98,000 and deposits on June 30th were $29,824,000. Leonard P. A yres, vice president of the Cleveland Trust Company, says that, “Stock prices measured in terms of their yields are now nearly as high as they were in the average month of 1929 w hen the greatest of all bull mar kets reached its climax. An average for the 12 months of that year shows that the prices of all dividend-paying common stocks traded on the New York Stock Exchange were 24 tim es their dividends. In June of this year the prices were 23.5 times their divi dends.” W ayne H u m m er and Company, 105 W est Adams Street, Chicago, in one of their recent bulletins, said, “There is nothing in current banking statistics to indicate a change in the bull trend of the market. The present down turn in the general business level is too often confused w ith an ordinary down turn. That sort of thinking leads only to pessim istic conclusions. In fact, there is a basis for a boom in all civil ian goods, a rising level of activity, O U R 5 0 th Y E A R 69 • IO WA which w ill not, of course, offset com pletely the cut-back in m ilitary ex penditures, but w ill give the country a period of prosperity—a period of rising living standards.” The assertion that banks have profi teered at public expense during the war em ergency cannot be supported by the record, and a close examination of statistics for all 13,268 insured com mercial banks in the United States “show s that the economy w ith which these banks are serving the people and Treasury may in the long run prove too costly,” according to “Earning Power of Insured Commercial Banks,” released by M. A. Schapiro & Co., Inc., one Wall Street. On August 1st Jam es M. K em per, chairman and president of the Com merce Trust Company of Kansas City, Missouri, declared a 50 per cent stock dividend. This year also celebrates the 80th anniversary of the Commerce Trust Company w hich on June 30th had deposits of over $413,000,000, cap ital $6,000,000, surplus $6,000,000 and undivided profits $5,171,000. The new setup w ill give the bank a capital of $9,000,000, leaving the surplus and undivided profits as given above. Mrs. J. J. M iller, w ife of J. (Jake) A va ila b le Cashier or A s s is ta n t, 33 y e a rs old, 15 y e a rs g e n e ra l e x p erien c e , c o u n try a n d c ity b a n k s. P r e f e r N e b ra s k a to w n p o p u la tio n 2000-6000. W rite B ox 59, N o rth w e s te rn B a n k e r, 527 7th S t., D es M oines, Io w a. NEWS • M iller, vice president and cashier of the Waterloo Savings Bank, Waterloo, Iowa, died last month at the age of 57 from a cerebral hemorrhage. Mrs. Miller had not been sick, and death came very suddenly. Just the day before she and Mr. Miller had celebrated their 34th wed ding anniversary. A resident of Waterloo for most of the time since 1891, Mrs. Miller was active in the work of the First Baptist Church, formerly serving as a dea coness and as president of the church W omen’s society. In addition to Mr. Miller, those sur viving are three daughters, Mrs. Glenn Appointment of Mr. Donhowe gave Iowa national banks representation on the board, it formerly having been made up of officials of state banks only. Other new members named to the board are: W. R. Remien, vice presi dent of the Atlantic State Bank; John C rossw aite, Mrs. L u cy Jayn e Marx and Mrs. B. W . H aven strite, a grand daughter G retchen Marx, a grandson, M ichael J. H aven strite, all of W ater loo, and a sister, Mrs. Jam es E verett, Camp Hood, Texas. On State Bank Board Arthur T. Donhowe, vice president of the Central National Bank and Trust Company, Des Moines, was named by Gov. Robert D. Blue to suc ceed B. Frank Kauffman, president of the Bankers Trust Company, Des Moines, on the Iowa state banking board. The governor replaced all former members except Melvin W. Ellis, state superintendent of banking, who serves as a board member automatically by reason of his position. The board, which holds monthly meetings, acts in an advisory capacity to the state superintendent. A. T . D O N H O W E O n I o w a B a n k in g B oard T. Baylor, president of the First State Bank, What Cheer, and Ray A. Nold, executive vice president and cashier of the Rock Rapids State Bank. All of the appointments take effect immediately for a term of four years from last July 1. Index To Advertisers R B a n k o f A m e r i c a ..................................................... 29 B a n k e r s T r u s t C o m p a n y , D e s M o i n e s . . . 71 B a n k e r s T r u s t C o m p a n y , N e w Y o r k . . . 31 C C en tral N atio n al B a n k an d T ru st C o m p a n y .................................................................. C h a s e N a t i o n a l B a n k ........................................... C h em ical B a n k a n d T r u s t C o m p a n y . . . . C ity N a tio n a l B a n k a n d T r u s t C o m p a n y , C h i c a g o ..................................................... C o n tin en tal B an k and T ru st C om pany. . C o n tin e n ta l N a tio n a l B an k , L in co ln . . . . 13 4 53 52 27 58 D D a v e n p o r t , F . E . a n d C o m p a n y .............65 -5 6 D e L u x e C h e c k P r i n t e r s , I n c ............................ 47 D es M oines B u ild in g , L o a n & S a v i n g s A s s o c i a t i o n ................................................ 68 D o a n e A g r i c u l t u r a l S e r v i c e s , I n c ............... 67 D r o v e r s N a t i o n a l B a n k ...................................... 30 F 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 . . . . 35 F i r s t N a t i o n a l B a n k , C h i c a g o ....................... 51 F i r s t N a t i o n a l B a n k , O m a h a ....................... 58 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 .................. 62 F i r s t S t. J o s e p h S t o c k Y a r d s B a n k .......... 59 F i r s t W i s c o n s i n N a t i o n a l B a n k .................. 42 O U R 5 0 th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N G A 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 ............. 40 A m erican N a tio n al B a n k and T ru st C o m p a n y .................................................................. 44 G u a r a n t y T r u s t C o m p a n y ................................. 28 M H a m m e r m i l l P a p e r C o m p a n y ....................... 5 H e r r i n g - H a l l - M a r v i n S a f e C o m p a n y . . . 26 H o m e F e d e ra l Sav in g s a n d L o an A sso ciatio n .......................................................... 64 H o m e I n s u r a n c e C o m p a n y .............................. 3 H o r n b l o w e r & W e e k s ........................................ 34 I I n v e s t o r s S y n d i c a t e ............................................. Io w a D es M oines N a tio n a l B a n k a n d T r u s t C o m p a n y .................................................. 36 72 J J a m i e s o n a n d C o m p a n y ................................... 45 K K och B ro th ers L 25 32 68 63 60 48 50 M M a n u f a c t u r e r s 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 a n y .. M e r c h a n t s N a t i o n a l B a n k .............................. M 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 o c i a t i o n ............................................................................ M ississip p i V a lle y T r u s t C o m p a n y . . . . Ü O m a h a N a t i o n a l B a n k ........................................ 21 I* 8 P h i l a d e l p h i a N a t i o n a l B a n k ................... P u b lic N a tio n a l B a n k a n d T ru s t C o m p a n y .......................' ........................................ 47 R R e m e r , M i t c h e l l & R e i t z e l , I n c .................... 34 R u ssell C o u n ty B u ild in g an d L oan A sso ciatio n .......................................................... 67 S ........................................................ 67 L a M o n t e , G e o r g e a n d S o n ................................. L a w r e n c e W a r e h o u s e C o m p a n y .................. L e s s i n g A d v e r t i s i n g C o m p a n y .................... L ive S to ck N a tio n a l B an k , C h i c a g o . .. . L i v e S t o c k N a t i o n a l B a n k , O m a h a .......... L iv e S to c k N a tio n a l B a n k , S io u x C i t y .. L o n s o n M a n u f a c t u r i n g C o m p a n y ............. N a t i o n a l B a n k o f W a t e r l o o ............................ 65 N a t i o n a l C a s h R e g i s t e r C o m p a n y ............. 6 N e w Y o r k T r u s t C o m p a n y .............................. 56 N o r t h e r n T r u s t C o m p a n y ................................. 46 23 40 2 41 38 S t. P a u l T e r m i n a l W a r e h o u s e C o m p a n y 36 S c a r b o r o u g h a n d C o m p a n y ........... 4 3 - 5 0 - 6 6 T T e n s i o n E n v e l o p e C o r p o r a t i o n .............. 66 T h o m s o n & M c K i n n o n .................................. 36 T o o t l e - L a c y N a t i o n a l B a n k ................... 5 6 -5 7 l U n i t e d S t a t e s N a t i o n a l B a n k ................ 54 U n i t e d S t a t e s T r e a s u r y D e p a r t m e n t . . . . 37 W W a l t e r s , C h a r l e s E . C o m p a n y ................ 59 W e l c h , J a y A ........................................................ 68 W e s s l i n g S e r v i c e s ................................................ 68 W estern M u tu al F ire Insurance C o m p a n y ................................................................. 41 N o rth w e ste r n B anker August 19b5 70 In the Directors’ Room The A nsw er Inspector: Don’t you know you can’t sell life insurance w ithout a license? Salesman: I knew I w asn’t selling any, but I didn’t know the reason. Too Q uick Mother: You have mud all over your new pants, w hat happened? Johnny: Didn’t have time to take them off before I fell in the creek. T hat’s W hy A gracious but elderly lady of the South was visiting the soldiers in a nearby army camp. She was shocked to find one young lad in the guard house. The soldier explained he was there because he had gone to church, which shocked her still more. He w ent on, “Lady, I had a job. I had an auto mobile. And I had a girl friend. Then the draft came along. I got number 176. “Before I knew it, number 176 came up. They marched me off to camp. They gave me shoes that were too short, pants that w ere too long, a pack too heavy and a bed too hard. For six days they marched me around a field ten hours a day. On the seventh day they marched me five miles to a church I didn’t belong to, to listen to a sermon I didn’t agree with, preached by a minister I didn’t like. And when that minister finished the sermon he said, ‘Number 176. Art thou weary, art thou languid, art thou sore distressed?’ “Lady, that’s w hy I’m here. I an swered him .” 'Dood’ It Is That So?? Chivalry: The attitude of a man toward a strange woman. South Pacific: Miami w ith malaria. Gangster: An expert on how to win friends and influence slot machines. Miser: A man who sprains his ankle squeezing a tupe of toothpaste. Pessim istic Indian: One who walks around w ith a w et blanket. Strait jacket: A good thing to wear w hen you want to sleep tight. Boy: A noise w ith dirt on it. Detour: The roughest distance be tw een two points. Celebrity: A great man far away from home. Lesson “Did you give your w ife a lecture on economy?” “Yes.” “Any results?” “Yes—I gave up sm oking.” R espectfu l Professor: “I want you to explain this examination paper. W hy do you have all your answers in quotation marks?” Freshman: “Just a bit of courtesy to the man seated at my left, sir.” Visitor: Willie, do you know “How doth the little busy bee?” Willie: No, I don’t, but I know when you monkey w ith him he doth it! L et Go the A nchor The vicar prided him self on his ora torical powers. He was describing the downward path of the sinner, and used the metaphor of a ship drifting and going to pieces on the rocks. A sailor in the audience was deeply interested. “The w aves rush over!” cried the preacher. “Her sails are split! Her yards are going! Her masts are shivered! Her helm is useless. She is driving ashore! There seems no hope! Can nothing be done to save her?” The sailor rose in his seat, his eyes wide w ith excitement. “Let go the anchor!” he shouted. D id You K n ow ? Football player: A contortionist w ho’s always running around his own end. Vacuum cleaner: A collective noun. Turkey: A country that resents any foreign attempt at gobbling. Anarchist: A nice fellow to bomb around with. Gets a Buggy R ide The guy who works like a horse doesn’t always draw the girl with the beautiful carriage. H ad B etter Be W ife (to husband sneaking up the stairs): “Is that you, dear?” Husband: “It had better be me.” W here to Look “If you’re looking for my husband, he’s gone fishing. Just walk down to the bridge until you find a pole with a worm on each end.” , Y es Sir U nanim ous Wife: When we married, I thought you were a brave man. Husband: So did most everyone else. N o rth w e ster n Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 19^5 C aptain, m a y I send these G erm an v e n i r s b a c k to t h e f o l k s ? sou Captain (as his company is leaving a reportedly mined trench): You stay here. If there is an explosion, blow your whistle. Understand? Private: Yes, sir. Will I blow it going up or coming down? OUR 50th YEAR "T his exceeds o u r lim it. W hy no t pla ce the overline w ith the B a n ke rs T ru st?" "A g o o d id e a ! They're fa m ilia r w ith situa tions o f this ty p e " T h a t’s th e r ig h t a n s w e r ! In c o o p e ratin g w ith a line of c re d it fo r v ery la rg e ac counts, or in a n y of th e o th e r im p o rta n t w a y s in w hich a Des M oines co rresp o n d en t can give valuable service to y o u r bank, we welcome an o p p o rtu n ity to be helpful. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BANKERS T R U ST COM PANY t t r DES MOINES FQgAICTORY BUY WAR BO N D S STAMPS VANCOVER B.C. ^SEATTLE ,TACOMA SPOKANE PORTLAND eos*0*4 MINNEAPOLIS ■ >. ST PAUL MEDFORD HURON HARTFO RD N EW YORK pHlLADaPH/A j T S ACREMENTE) £ A N FRANCISCO KANSAS > CITY ST LOUIS JOPLIN LOS ANGELES TULSA |FT SMITH SAN DIEGO AI R L I NE S ITEXARKANA SHREVEPORT N E W ORLEANS COLLECTIONS An I m p o r t a n t S e r v i c e f o r Y o u r C u s t o m e r s W h e n y o u s e n d ch e c k s or d rafts to Direct a ir m ail co n n ectio n s w ith all this B ank for collection y o u g et fast, im p o rtan t fin a n c ia l a n d b u sin e ss c e n d e p e n d a b le se rv ic e to p o ints a n y ters a re th e re b y a v a ila b le . w h e re in Io w a a n d th ro u g h o u t the A U nited S tates. tran sit b u sin e ss in d ic a te s th a t Io w a D es M oin es is th e h u b of a n etw ork B anks a n d B ankers a re rely in g to a of ra ilro a d s. It is a lso s e rv e d b y two g re a te r extent th a n e v e r before on ste a d ily in c re a sin g of m a jo r a ir lin es . . . U n ited 's tra n sc o n the facilities of this B ank to pro v id e tin e n ta l E ast-W est rou te a n d fast a n d C o n tin e n t's N orth-South sy stem . Mid- efficient serv ice for their custom ers. C a p ita l tf-nncU . Ò vest tf-iu e M illio n ^ b o lla /il https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis vo lu m e