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Federal Reserve Bank of St. Louis

The farmer is all important in the development of Cedar
Rapids as a continually greater market for the produce
of his farm.

The marketing of a record crop which will

feed the people of the world is a job of major importance.
The Merchants National is ready to assist your bank in
this undertaking and to share in handling the credit
- ^ «£

requirements of your customers.

* f <*










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James E. H am ilton , Chairm an o f Executive Committee
S. E. CO'QUILLETTE, Chairm an o f the Board
John T. H amilton II, President
H. N. B oysO'N, Vice President
Roy C. F olsom, V ice President
M ark J. M yers, V. Pres, and Cashier
George F. M iller, V. Pres, and T rust Officer
M arvin R. Selden , V ice President
F red W . S m it h , Vice President
R. W . M an att , A sst. Cashier
L. W. B roulik , Asst. Cashier
P eter B ailey , Asst. Cashier
R. D. B rown , Asst. Cashier
O. A. K earney , Asst. Cashier
Stanley J. M ohrbacher, Asst. Cashier
W allace S. H am ilton , Building- M gr.

Cedar Rapids


Member Federal Deposit Insurance Corporation

Northwestern Banker, published monthly by the Northwestern Banker Company, at 527 Seventh Street, Des Moines, Iowa. Subscription, 35c
per copy, $3.00 per year. Entered as Second Class Matter January 1, 1895, at the Post Office at Des Moines, Iowa, uner Act of March 3, 1879.
Federal Reserve Bank of St. Louis

/a/tH 7hJ

e/ftm tfC O H J//nM e4

The Country Home
on Harlem Heights
during the early morning hours
of September 15, 1776, General George
Washington entered the stately hallway of
the Roger Morris summer home on Harlem
Heights where his official Headquarters
were established two days after the battle
of Long Island and the day after the
evacuation of New York City. For a period
of about five weeks, General Washington
occupied the north room on the second floor
as his office and bedroom and it was there
that he and his staff planned some of the
strategy and battles that were to eventually
lead to American Independence.
This m agnificent G eorgian mansion
o m e t im e


which has been completely re­
stored, is now a museum owned
and maintained by the City of
New York and is under the cus­
todianship o f the W ashington
Headquarters Association of the
Daughters of the American Revo­
At the time Roger Morris chose
this site for his country home,
The view from the form al garden.
New York City was ten miles
to the south. The original plot
At the outbreak of the Revolution, M or­
consisted of 100 acres which ‘‘commanded
ris, who was an ardent Tory, fled to Eng­
the finest Prospect in the whole Country:
land. The mansion was captured by the
the Land runs from River to River: there
British after Washington and his staff fled,
is Fishing, Oystering, and Claming at
and for seven years it was used as British
either end . . .” The house was begun in
or Hessian Headquarters until the British
1765 and was completed in the summer of
evacuated New York.
1766 in time for Lieutenant-Colonel and
Today, the house stands as a monument
Mrs. Morris to close their town house at
representative of a colorful period in Amer­
the corner of Whitehall and Stone streets
ican history.
and escape from the intense heat of the city.
7he Home, through its agents and bro­
During the builder’s ten year tenancy, the
kers, is America’s leading insurance pro­
house was the scene of many brilliant
tector of American Homes and the Homes
Colonial affairs, for Mrs. Morris, who had
of American industry.
been the wealthy and popular Mary Philipse of Philipse Manor, had a
large circle of friends, including
George Washington. In fact some
historians claim that Washington
himself was seriously interested in
Miss Philipse before she married
Roger Morris.


Washington’s office in the Roger Morris house.
Federal Reserve Bank of St. Louis


Hundreds o f thousands o f Am eri­

accounts and other form s o f busi­

cans are now con siderin g either

ness which often g o to the insti­

business trips abroad or, as ac­

tution furnishing the traveler with

c o m m o d a tio n s p erm it, tou rist

his Letter o f Credit.


If you d o not n ow sell C. N . B.

Unquestionably, som e o f these

Letters o f Credit, w e suggest that

travelers w ill be friends o f your

you com m unicate with our Foreign

bank. And by having C. N. B.

Department and find out h ow you

Letters o f Credit available, you

can issue them with your bank’s

can make them profitable cus­

ow n imprint profitably, efficiently,

tom ers— at the same time op en in g

and without materially increasing

the d o o r to safe-keeping, custodian

the w ork o f your present staff.

C. N. B. Betters of Credit give holders the facilities of our overseas
branches and serve as an introduction to leading bankers abroad.



Mem ber Federal D ep osit Insurance Corporation

Northwestern Banker, August, 1946
Federal Reserve Bank of St. Louis


George La Monte & Son not only produced the iirst
practical safety paper —but La Monte Safety Papers
have become widely recognized as iirst in quality. » »
La Monte's famous "wavy lines" trade-mark has be­
come almost as familiar in the banking world as cur­
rency itself. » » That's because, for generations, so
many of America's leading banks have specified this

product. » » Bankers, you see, are astute business
men. They regard checks as more than simply a me­
dium for the transfer of funds . . . see in them an
advertising opportunity of unusual proportions —an
opportunity to make favorable impressions by the
millions on their customers and those they hope to

For Samples ot La Monte Safety Paper see your Lithographer or Printer — or write us direct.



jut» 5- -

Ml0TO W N ,U .S.ft--_



RaNK a n d T ru st




A Check Paper All Your Own
Why not follow the lead of America's out­
standing banks and corporations? Let us
reproduce your trade-mark in the paper
itself. Such i n d i v i d u a l i z e d check paper pro­
vides maximum protection against coun­
terfeiting—sa ves banks sorting' tim ehelps prevent errors.
Federal Reserve Bank of St. Louis

Northwestern Banker, August, 1946


Since its founding in 1803, The Philadelphia

The Philadelphia National is proud to have

National Bank has seen the Nation grow to

played a leading role in this development—

economic supremacy . . . expanding westward

for not a few of these banks turned to it for

across rivers, mountains and wide plains.

experienced and dependable cooperation.

As new industrial centers developed behind

Today, the total number of Philadelphia

the tide of the steadily advancing frontier, the

National’s correspondent banks exceeds a

smaller, newly established banks naturally

thousand—many of these relationships dating

looked to the East for assistance in financing

back to pioneer days. This same quality

the loans which helped build the factories and

cooperation is available to you. We shall be

productive farms of the strong America we

pleased to discuss with you in detail the

know today.

benefits of forming such a relationship.





Northwestern Banker, August, 7946
Federal Reserve Bank of St. Louis









This proof machine handles all debits
and credits going through your bank!
Federal Reserve Bank of St. Louis

E v eryth in g can be entered on this National 2000 P roof Machine, mail, counter and
clearing house items. It not only provides centralized control o f all departments,
but also positive proof o f every credit total recorded.
This National P roof Machine has an automatic lock which makes accuracy
compulsory. N o o th e r m a ch in e has th is fe a tu re. I f a mistake has been made in
listing or addition, the operator need only press the error key, and the amount o f
the error is automatically printed on the master tape and the correction is made.
Only then will the machine go ahead with the next credit.

There's a National for Every Bank and Every Banking Job
Whether your bank is small or large, there’s a National Machine to meet its
every need. Put your problems up to your National representative . . . let him
show you how some one, or more, o f the many National time- and money-saving
machines can help you. Call him today, or write, The National Cash Register
Company, Dayton 9, Ohio.



Northwestern Banker, August, 1946


Can you name five
ojyour local bank?

The best known
name in paper!
An independently conducted poll* was
taken recently to determine which bank­
ing services are the best known. “ Check­
ing Accounts” was the winner— named
by more than 84% of those interviewed.
Most people are introduced to your
other services through their checking
accounts. That’s why it is good public
relations to give your customers checks
on a paper they know well, whose
quality inspires respect and confidence.
Hammermill Safety is such a paper.
Your customers use Hammermill papers
in their business. The name itself— “ the
best known name in paper” —means re­
liable service to them. Checks on Ham­
mermill Safety are an unobtrusive
reminder of your careful judgment in all
the services you offer the public.
A n ote on your bank le tte rh e a d w ill brin g s a m p le s
of H am m erm ill S a fe ty show in g its w ide ran g e of
easy-to-w rite-on c o lo r s . Ju st a d d r e s s H am m erm ill
P a p e r C om pany, 1513 E a s t L a k e Road , E r ie , P a.
‘ R e p o r t e d in B a n k in g, June, 1946

C H E C K IN G A C C O U N T S LE A D in a p oll conducted to d is c o v e r
the best k n o w n b a n k in g s e rv ic e s am o n g a ll c la s s e s of peo ple

Northwestern Banker, August, 1946
Federal Reserve Bank of St. Louis


M0eur E d itor

Oldest Financial Journal West of the Mississippi

The following letters were received
from Northwestern Banker readers.
Your views and opinions on any sub­
ject will be gladly published in this


51st Year


No. 709

A cross the Desk from the Publisher............................... — ....... -........... 10

"Benefited Very Much"
“ We feel that by reading and studying
the many articles which appear each month
in the N orthwestern B anker that we are
benefited very much. We also pass the
N orthwestern B anker around to our em­
ployes as they, too, enjoy reading each
B. F. Aron, Vice President
and Cashier The City Na­
tional Bank, Crete, Nebraska

"Should Read H. R. 6225"

D ear E ditor ........................................................................... .............................
H ow 90 Bales o f H ay Increased Savings A ccou n ts................................
Y ou r G. I. Loan Question B ox................................ Walter T. Robinson
A 3-Bank Banker..............................................................................-................
News and View s o f the Banking W orld ....................... Clifford De Puy
About Bankers You K now — Sidney M aestre.................................... ......



“ Bankers of Iowa should get hold of H. B.
6225 from their Congressman, which is a bill
to provide for control and regulation o f bank
holding companies and for other purposes.
Read it and then urge passage o f same. Con­
tact your representative and senator.”
F. E. Manuel, President
George State Bank, George,

Can D am ages fo r Loss o f Profits Be in Excess o f Ceiling Prices?.... 20

"An Ardent Reader"

H ow to Get Y ou r Share o f Farm Business.................B. R. Walinder 35

“ It has been a great pleasure for me to
be an ardent reader of your very fine publi­
cation, the N orthwestern B anker , for
many years.”
Boyd F. Jordan, formerly
Cashier o f the Muscatine
Bank and Trust Co. and now
Executive Vice President of
the new American Bank,
Oshkosh, Wisconsin

"My Congratulations"
“ Dear Cliff: Please relay to the Univer­
sity Club my congratulations on its acquisi­
tion o f a top-notch new president. Best re­
Bod Maclean, Advertising
Manager California Bank,
Los Angeles, California

Prices o f G overnm ent Bonds Expected to Hold Steady

......... :...................... ............ ........ ..... ........... Raymond Trigger 31


M innesota News .............................................................
Tw in City N ew s........................................................ E. W. K ieckhefer
South Dakota N ew s........................................................ — .............................
Sioux F alls N ew s.......................................................................................
North Dakota N ew s............................................................................................
Nebraska News .....................................................................
Omaha News .......................
Lincoln Locals ...........................................................................................
Iow a News ...........................................................................................................
Des M oines N ew s.................
Conventions ...............................................


A F ew Short Stories to- Make Y ou L a u g h -........................................ .


”50 Per Cent in Loans"
“ It lias been suggested by several bankers
that we call your attention to the volume of
loans that we have in this bank to the ratio
o f our deposits, which is about 50 per cent.
This is an unusual situation and we have
been advised that we are the only bank in
the northwest that has this large loan ratio
and we would like very much to have you
advise us if you know of any other bank that
(T u rn to page 22, please)
Federal Reserve Bank of St. Louis

527 Seventh St., Des Moines 9, Iowa, Telephone 4-8163
Associate Publisher


Associate Editor

Advertising Assistant


Circulation Department

Frank P. Syms, Vice President, 505 Fifth Ave., Suite 1806

MUrray Hill 2-0326

Northwestern Banker, August, 1946

doomed to failure. That is why for our own selfpreservation we must face the unpleasant fact that
Stalin, like Hitler, will not stop but can only be
I t’s time for America to wake up and realize
that Russia’s real foreign policy is an attempt to
communize the rest of the world.

2>ea4 ¡jahu /J. ileillif:

Across tlie Desk
From tlie Publisher
ubeaï rWillla*n G. Bullitt:
AVe sincerely hope that every citizen in the
United States reads your book, “ The Great Globe
Itself,” in which you present one of the most in­
telligent and at the same time realistic stories
of what is actually taking place in the Soviet
As a former United States Ambassador to
Russia, you certainly know “ whereof you speak.”
The idea that we can appease Russia, that we can
be kind to Russia, that we can be nice and sweet to
Russia and get anywhere is completely debunked
by what you have to say, and the sooner the
American people realize it, the better.
The intention and desire of Russia to completely
communize the other countries of the world is still
their permanent and paramount foreign policy.
As you very ably emphasized : ‘ ‘ The aim of Soviet
foreign policy is constant; to establish Communism
dictatorship throughout the earth. In its own
eyes the Soviet Government is always engaged in
warfare, open or concealed, with the non-Communist states of the world. And when the Soviet
Government embraces in friendship any non-Communist government, it is always with the ultimate
intention of driving a dagger into its back. That
is why Stalin is unappeasable. That is why
President Roosevelt’s ‘ great design’ was foreNorthwestern Banker, August, 7946
Federal Reserve Bank of St. Louis

Yes, indeed, the chartered banking system of
America is at the crossroads and as president of
the Second National Bank of Washington, D. C.,
your recent remarks on the banking and capital­
istic systems are certainly much needed at this
AYe have too long taken our free enterprise for
granted, and as you pointed out Air. Reilly, if
vre do not do something to protect it, as well as
our chartered system of banking, it will go as
other economies have gone in England and France
and elsewhere, that is toward the left, towards
socialism and towards totalitarianism on the part
of the governing leaders. As you so forcefully
mention— “ We have so many blessings in Amer­
ica that we too often take them for granted. One
of the greatest of our blessings is the capitalistic
system, more popularly known as free enterprise.
Like the air we breathe, we think it belongs to
us and do nothing to protect and preserve it.
“ In my opinion, only the shooting war is over.
Not until the torn fabric of peace is re-woven
yvill the war and the hard tasks it imposes on us
be finally ended. In this program the bankers of
America can play a very prominent role.
“ The world at large is in turmoil, endeavoring
to recover from the greatest war in history. All
over the world, we see hunger, want and despair.
These are conditions which breed discontent, an­
archy and which, unless checked, lead to great
social and economic changes.
“ There is a strong movement to the left. In
Great Britain the labor movement is committed to
a policy of nationalizing not only the Bank of
England, international communications, and in­
land transportation, but also the coal and iron
industry. In France, as well as a number of other
continental European countries, the trend toward
Government ownership of the principal means of
production is very pronounced. What the ulti­
mate outcome will be in Germany and Italy is
anybody’s guess.
“ If we are complacent we may say that it can’t
happen here—but it can.”
It certainly can happen here and it is the .job
of every banker in America through the opera­
tion of his own bank and through his own po­


litical influence to see that we have proper
representatives in our state government and in
our national government to prevent the socialistic
and communistic tendencies which are all around
us in the world to say nothing of the existence of
them in our own nation. The United States still
stands out as the last great citadel of capitalistic
endeavor and free enterprise—let ns keep it that

jb ea A MuW icuj, S h ie ld s :
As vice president and economist of the Bank
of Manhattan Company, New York, we were inter­
ested in your expressions of optimism about the
future prosperity of the United States that unless
“ We fail to remove the blocks to full production
by our private enterprise system, then we are
likely to suffer a series of shocks through infla­
tion, labor strife and chronic unemployment which
would weaken the nation’s productive strength at
a time when it is dangerous to be weak.”
We are glad, Mr. Shields, that you “ take the
optimistic view of our longer range outlook.”
“ Time after time in our history” you also point
out “ the forces of radicalism have for a period
held our progress in check and threatened our in­
stitutions of enterprise. Always before the natural
inclination of our people towards conservatism has
in time prevailed and we have gone forward to
new heights of industrial achievement and I be­
lieve we are going to do it again. ’ ’
We certainly hope you are correct, Mr. Shields.
On the other side of the picture David Lawrence
recently stated that ‘ ‘ The nation is headed toward
the most severe economic depression in its history
and the responsibility for it will fall squarely on
President Truman, whose mistakes since V-J Day
will cost the American people not only consid­
erable unemployment, but the hardships of infla­
tion that could have been readily avoided.”
Mr. Lawrence believes that the “ only way ont of
the dilemma is for rigid controls on both wages
and prices, and on work stoppages to be insti­
tuted at once—which President Truman lacks the
courage to do.”
Let’s hope, Mr. Shields, that with our industrial
equipment, our engineering knowledge, our man­
agement ability and all the other factors which
make the United States great, we can lessen what­
ever period of adversity may be ahead and by
taking advantage of the opportunities which are
within our grasp, we will face a period of great
prosperity and not one of a great depression.
Federal Reserve Bank of St. Louis

jb eo si

M a n a g e m e n t" :

To rise to a position where you are included as
one of three men in the “ Top Management” of
one of the largest banks in the world, is recogni­
tion indeed of your ability and financial acumen.
You three gentlemen, Winthrop W. Aldrich as
Chairman of the board, II. Donald Campbell, vicechairman of the board and Arthur W. McCain,
president of the Chase National Bank, have been
designated as the three guiding geniuses of your
great institution.
We were interested in seeing just where you all
received your start.
We notice that you, Mr. Aldrich, commenced life
in Providence, R. I., a very fine city with 253,000
Mr. Campbell, you were born in Danville, Illi­
nois^ community with 36,000 population, and you,
Mr. McCain, were born in Little Rock, Arkansas,
with a population of 88,000, and secured your first
job in the Bank of Jonesboro, Arkansas, a town
which has a population of 11,729. As the top exec­
utives in a great institution in a city with a popula­
tion of 7,554,000, we were interested that your be­
ginnings were in smaller communities where you
kept in touch with business, with banking and
with commerce at its foundations in the “ grass
roots” of America.
Most of our institutions have been built by such
men as yourselves who grew up in communities
where they learned the fundamental principles of
sound economics and good business judgment.
Therefore as the gentlemen from Providence
and Danville and Little Rock, we salute you and
have full confidence that you will continue to
guide one of the greatest banks in the world along
the road to improved service to its depositors and
increased leadership in the affairs of the nation
and the world.

jbea% Kenneth K.


Your remark that banks have become “ the slaves
of the treasury department” is quite true since
they receive approximately one-fourth the interest
paid by the Government on their large holdings
of federal securities.
If individuals had purchased Government Bonds
to a greater degree it would not have been necessary
for the banks to do so.
Banks can only cease being “ slaves” if they can
increase their local loans and sell some of their

Northwestern Banker, August, 1946


Northwestern Banker. August, 1946
Federal Reserve Bank of St. Louis


m ill rind where’er y o u roattv*
That marble flo o r s ^ gilded walls
Can never make a home. * «*♦ «
But every house where love abides
And friendship is a guest «>•»<*><»
Ts surejy home, afi^homesweethome
Tor there the heart can r e s t -

Henry PanDyke


« BE


It you would like extra copies o f this picture we will be glad to send them to you with our compliments.— The Northwestern Banker.
Federal Reserve Bank of St. Louis

Northwest ern Banker, August, 1946

THIS IS THE UNION BANK HAYRACK PARTY. Those enjoying the ride, from left to right, are Henry
Crossley, president o f the Exchange Club; Harold Wilson, president Erie Advertising and Sales Club; Jeanne A.
Caldwell, president Business and Professional W om en’ s Club; S. A. Wagner, president Kiwanis Club; Otto C.
Brown, president Lions Club; and A. J. Hartleb, vice president the Union Bank of Erie.

lion* 9 0 !tuh>s o f Hu 1/
Mncreused Surinfjs A ccounts
A Bank in Pennsylvania Tells Customers to
"Make Hay While the Sun Shines"

RECENT publicity program to
promote to its customers the
idea “Make Hay While the Sun
Shines” has resulted in a substantial
increase in savings accounts and dol­
lar volume for the Union Bank of
Erie, Pennsylvania.
Just prior to a special lobby display
and other publicity, the Union Bank
mailed a letter to a selected group of
loan customers who were not carrying
a savings account, and to three hun­
dred additional friends and customers
of the bank. The letters were mailed
on a Saturday to reach the customer
on Monday morning, the opening day
of the display.


The letter carried the heading, “ Sure,
THIS IS HAY,” and directly beneath
this heading was stapled several stems
of real hay. The letter read as fol­
Everybody should be “making hay
Northwestern Banker, August, 1946
Federal Reserve Bank of St. Louis

while the sun is shining”—and it’s
certainly shining today!
Everyone is busy—xoages are higher
—there’s much work to be done, and
it looks as though it will continue for
quite some time.
So, we say, NOW is the time to
systematically save. Lay away a speci­
fied amount each pay day. It’s sur­
prising how quickly it will grow—and
safe, too!
In the years to come you can enjoy
the fruits of your labor and profit by a
wise decision, if you start saving today.
Let us tell you all about our savings
plan—it makes it profitable for you to
Vice President-Cashier.
Describing the display in the bank
lobby and other publicity methods
used, Alfred J. Hartleb, vice president
and cashier of the Union Bank, says:

“ Monday morning the lobby was ap­
propriately decorated to carry out the
idea. On the outside in front of the
bank, seven bales of hay were ar­
ranged on end on either side of the
entrance. In the lobby of the bank
there were thirty-three bales between
the two customers’ counter desks; fif­
teen were arranged in skyscraper fash­
ion. The other eighteen were through­
out the bank at various points of ad­
vantage. Seventeen bales were used
between our building entrance to the
building’s lobby and from there to the
building’s main entrance. Eighteen
display cards of various sizes and col­
ors, of the enclosed wording, were
attached to the bales of hay through
the bank lobby and building lobby.
There were ten pitchforks used, which
were stuck in various bales of hay.
The officers and employes on the first
floor wore straw hats and red and blue
bandanna handkerchiefs. In the front

THE LOBBY of the Union Bank o f Erie, Pennsylvania, displayed numerous bales of hay to carry out the
suggestion to “ Make Hay While the Sun Shines.”
The view above is from the entrance to the bank.

window—high enough that it could be
seen from across the street—was a
cow—four feet by three feet, which
was mechanized and the head and
mouth moved as though the cow was
chewing its cud, and the tail was
switching. Around it was built sev­
eral bales of hay, pitchforks stuck in
the hay, straw hats and a couple of
black cats on which were written
“ Feed the Kitty every day. Ten cents
a day will make $36.50 a year.” A
large, colorful sign in the front win­
dow drew to the attention of the crowd
that ‘Make Hay While the Sun Shines’
meant ‘Save regularly—and so much
money . . . Ain’t Hay.’
“At noon Monday, from the park
to the bank, which is six blocks, we
had a hayrack party. At 12:30 our
local radio station made a fifteen min­
ute recording in which the announcer
described the hayrack, the bank lobby
and the particular window in which
the cow was set up. After which he
asked a direct question on savings of
each of the riders—there was quite a
bit of ad libbing, which made it very
entertaining and humorous. We also
were complimented very highly by the
radio listening public when the re­
cording was broadcast over the local
station that evening from 7:15 to 7:30.
“ In following up the above program
for the purpose of opening new sav­
ings accounts, we are paying the em­
ployes 50c per $100 for all new business
which is put on the books and which
Federal Reserve Bank of St. Louis

will be paid to them next January 1st
on the balance at that time. We have
opened a number of accounts so far
and expect that it will accelerate as
the employes find it is profitable to
them.” # #

They Know About
Country Banks
(See Cover Photo)
Shown seated in our cover picture
this month are (left to right) Norman
B. Shaffer and O. B. Wallace, vice
presidents of the Continental Illinois
National Bank and Trust Company of
Chicago, whose names are household
words in that bank of 3,000 people.

later he became cashier of the First
National of Letcher, South Dakota, and
from 1925 to 1929 he was assistant
superintendent of the South Dakota
Banking Department. In September
of 1929 he joined the Continental Illi­
nois and in 1936 was elected an assist­
ant cashier. He has been a vice presi­
dent since 1943.
Standing are (left to right): Wilfred
E. Resseguie, second vice president,
and Arthur J. Frey and George F.
Kernan, assistant cashiers.
“Bill” Resseguie is another Iowan.
He was born in Algona. When he was
graduated from the University of
Iowa in 1926, he became an out-of-town
representative of the Continental and
in 1942 he was elected an assistant
cashier. In 1945 he was advanced to
second vice president.

Norm Shaffer is a product of Al­
toona, Iowa, where he worked in the
Shaffer State Bank after completing
his studies at Drake University. In
1921 he left the bank in Altoona and
joined the State Banking Department
in Des Moines. Four years later he
emigrated to Chicago and the Conti­
nental, and was elected to official posi­
tion in 1929. In 1940 he became a fullfledged vice president.

Not to be outdone, Art Frey ar­
ranged to be born in Emmetsburg,
Iowa. In 1921 he became assistant
cashier of the Patterson Savings Bank,
Patterson, Iowa, and was successively
in the Des Moines National and Peo­
ples Trust and Savings, Perry, Iowa,
until he joined the Continental in Chi­
cago in 1926. He was elected an assist­
ant cashier in 1943.

Barry Wallace comes from Wessington Springs, South Dakota. He at­
tended Dakota Wesleyan, and in 1910
was employed as assistant cashier of
the Commercial and Savings Bank,
Mitchell, South Dakota. Eight years

The only native Chicagoan in the
picture is George Kernan. He started
his banking career with the Continen­
tal at 20 and worked up through vari­
ous of the bank’s 52 divisions and was
elected an assistant cashier in 1945.
Northwestern Banker, August, 1946


Loa Question

Y ou r 6'. / .
Important Points Dealing Primarily With
New Construction Loans and Appraisals

Iowa Loan Guarantee Officer, who
answers the things you want to
know about the Servicemen's
Readjustment Act

HIS month’s Question Box deals
primarily with new construction
loans and appraisals.

tional thereto. This requires you to
notify the loan guarantee office within
thirty days following full disburse­
ment from such account.

Should loans for the construction
Q. Under prior confirmation, when
of new homes he processed under the
automatic plan, or with prior confir­ the lender follows his usual custom of

A. Yes.
Q. Tn case the date of final and full
disbursement is not the same as date
of the note shown on the home loan
report, or the date shown on the cer­
tificate of disbursement, where and
how should Ave indicate to the loan
guarantee office the date of actual final
and full disbursement?

Tn the case of new construction
loans, what advantages are there to
the lender in using escrowed or ear­
marked accounts?

A. In the case of automatic loans
show such date of disbursement at
the top of the reverse side of the loan
report; in the case of prior confirma­
tion in the space above your signature
on the certificate of disbursement.

A. The only advantage in using such
accounts is to gain full disbursement,
thereby obtaining a certificate of guar­
anty immediately. For a definition of
“full disbursement” read Section 36:
4301 (p) of the Regulations.

A. It has been ruled that an escrow
account requires deposit of the pro­
ceeds of the loan with an independent
depositor out of the control of both
the lender and the borrower. It fur­
ther requires a formal escrow agree­
ment with full instructions for com­
plete disbursement of the proceeds of
the loan. It has been recently ruled
that the lender’s attorney may act as
escrowee. Funds earmarked cannot
exceed 10 per cent of the amount of
the loan. Consequently earmarking is
limited in its use to such transactions
as repairs, or loan closing costs.
When funds are either escrowed or
earmarked and so indicated on the
home loan report, your guaranty cer­
tificate will have to be issued condi­
Northwestern Banker, August, 1946
Federal Reserve Bank of St. Louis

A. No. It is required, however, that
loans be reported for guarantee, either
automatic or prior confirmation pro­
cedure, within thirty days from date
of full and final disbursement.
Q. Can the date of final payment of
loan expenses be construed to be the
date of full and final disbursement?

A. Lenders generally prefer to make
such loans with prior confirmation. It
is our opinion that loans for the con­
struction of new homes can best he
processed with prior confirmation.
Such procedure is outlined in chapter
6, pages 16 and 17 of the handbook en­
titled “Guaranty or Insurance of
Loans to Veterans.”

Q. What are the difficulties involved
in connection with setting up of such

thirty days from the date of the cer­
tificate of approval?

Answers Your Questions

placing funds in a “Loans in Process”
account to be disbursed during the
process of construction, should he indi­
cate on the home loan report that
funds have been escrowed or ear­

A. No. In the eyes of the regula­
tions he has neither escrowed nor ear­
marked funds. If the dwelling has
been completed, the lender will certify,
among other things, that construction
has been completed in compliance
with the terms of the contract. This
is done on Form 1876, certificate of dis­
bursement, following receipt of which
a loan guaranty certificate is issued.
Q. Do new construction loans have
to be reported for guarantee within

Q. H oav are appraisals m a de on n e w
c o n s t r u c t io n lo a n s ?

A. From blueprints, specifications
and a contractor’s bid submitted by
the lender to the appraiser prior to
Q. H oav does the appraiser deter­
mine costs of neAV construction?

A. Such costs are determined from
an actual breakdown of building costs
in his community from information
assembled through reliable sources.
Q. To what extent A v il l the FHA fa­
cilitate in the determining of costs
through their present system in grant­
ing priorities?

A. Since June 10, 1946, the Federal
Housing Administration, before grant­
ing a priority for a new house, re-

quires specifications, blueprints and a
contractor’s bid. The priority will not
be granted except at a cost in line with
reasonable value. In the case of con­
tractors building for sale, two FHA
inspections during the process of con­
struction are mandatory. In the case
of a veteran building a house through
a contractor, he can request two FHA
inspections, which will be provided
free of cost, thereby the lender, the
appraiser and the veteran are provided
with a guide as to reasonable costs and
likewise with careful inspection dur­
ing construction.

A 3 -fía n k Mtanker

Q. May an eligible veteran build a
home on property owned by his wife?

A. No. Title to the property must
be in the name of the veteran, or in
the name of the veteran and his wife
as joint tenants with right of survivor­
Q. Is the widow, or divorced wife
of a veteran eligible for a guaranteed

A. No. Privileges under Title III of
the Act are for the eligible veteran
only and do not extend to his family.
Q. When a new home is contem­
plated, is it required that the applicant
employ an architect to draw up plans
and specifications?

A. If stock plans and specifications
are available, they may be used. Plans
furnished by magazines, such as Bet­
ter Homes and Gardens, have been
prepared by r e l i a b l e architects.
Sketches on wrapping paper without
measurements and specifications are
not acceptable.
Q. Can a veteran who is a carpenter
be allowed credit for his own work, in
case he desires to help contract his
own home?

G. N. REPPE DISCUSSES bank problems with Mrs. Reppe. Mrs. Reppe
assisted in the bank during war days, and continues as one of the personnel.

RESIDENT of three banks in south­
ern Minnesota, G. N. Reppe of Grand
makes service to customers
and his community the number one
project of his banking activities. Mr.
Reppe is president of the First State
Bank, Grand Meadow, the First State
Bank of Racine, which he organized,
and the State Bank of Oakland, located
a few miles west of Austin. Mr. Reppe
and his family own all the stock in
the three banks.
A. H. Temanson is cashier of the
bank at Racine, and O. C. Lee is cash­
ier of the State Bank of Oakland.
In operating the First State Bank
of Grand Meadow, Mr. Reppe is as­
sisted by his wife, and more recently
by his son-in-law and daughter, Mr.
and Mrs. Robert D. Burns. Mr. Burns
came into the bank when he returned
from the service.
It could be said of Mr. Reppe that

A. Yes. His labor and skill should
be given consideration in the contrac­
tor’s bid, the same as anyone else. -

Height in a home without a basement
is figured from the bottom of the foot­
ing rather than from the bottom of
the cement floor.

Q. What are the advantages and dis­
advantages of building a home in Iowa
without a basement and in such cases,
how is the cubical content figured?

Q. What is functional depreciation?

A. Attractive homes that are suit­
able for California or Texas are not
often practicable in Iowa, due largely
to climate. Practicability must be
given consideration. It has a direct
relationship to resale value. Footings
have to go down below frost. Usable
space provided in a basement is cheap
and practicable for the small home.
Federal Reserve Bank of St. Louis

A. Functional depreciation occurs
on the interior of the dwelling. It
represents obsolescence, such as old
bathroom, out-of-date bath room fix­
tures, colonnades and poorly arranged
Q. What is economic depreciation?

A. Economic depreciation o c c u r s

he is so interested in his business he
practically lives in the bank. Which,
in case of the Reppe familly, is true.
The second floor of the bank building
has been arranged into one of the most
attractive apartments one could hope
to find anywhere. In fact, the space
was large enough to make two apart­
ments, one of which is occupied by
Mr. and Mrs. Burns.
The bank building, equipped with
oil heat, has a large basement to which
there is a private side entrance off the
street. In the basement Mr. Reppe
has furnished a large room with ta­
bles and chairs, a small complete
kitchen, with all facilities for prepara­
tion of food, and has made the room
available as a meeting place for dif­
ferent local organizations, making the
First State Bank of Grand Meadow,
Minnesota, not only the financial cen­
ter, but also the social center, of the
community. # #

outside of the lot line, such as a change
in the neighborhood, lack of zoning
permitting the encroachment of busi­
ness properties and factories. It could
be brought about by a change in the
racial neighborhood. # #

On Faculty
On the faculty at the Central States
School of Banking at the University
of Wisconsin during its two-week ses­
sion is Sumner G. Sinclair, Northwest­
ern National Bank of Minneapolis aud­
The school provides advanced study
and research in banking, economic and
monetary problems.
Northwestern Banker, August, 1946



By Clifford Oe Puy


OBERT LINDQUIST, assistant vice

president of the American Nation­
al Bank and Trust Company, Chi­
cago, and second vice president of the
Financial Advertisers Association, has
just written a book on advertising
entitled “Planning and Budgeting a
Bank’s Advertising Program.” The
material was originally used as a the­
sis for Graduate School of Banking.
In a letter to the N orthwestern
B anker , Preston E. Reed, executive

“ Advertising is a tremendous force— it brings
a bank added business and profits”

vice president of the F.A.A., said, “ I
believe this book to be the most com­
prehensive study of the over-all pic­
ture of bank advertising that’s been
written in several years.”

As Mr. Lindquist very ably points
out in his excellent book, “Advertising
is a tremendous force — well planned
and intelligently followed through, it
brings a bank not only added business
and profits, but more important for
continuing success, the confidence and
esteem of its community.”
M. K. A7an Horne, president of the
Farmers State Bank of Pawnee City,
Nebraska, has installed a ceiling in his
bank of acoustic fibre which, together
with a modern air-conditioning unit,
makes the bank’s equipment most upto-date.
In commenting on the new ceiling,
Mr. Van Horne said, “It is supposed
to deaden sounds— make it quieter in­
side—so we can hear a customer who
Northwestern Banker, August, 1946
Federal Reserve Bank of St. Louis

might wish to whisper that he would
like to borrow $1,000 or $2,000.”
Brigadier Leonard P. Ayres, vice
president of the Cleveland Trust Com­
pany, emphasizes that, “ In the long
run our national economic welfare de­
pends on the volume of production of
valuable goods and services. The
more we produce the more we shall
have to divide among ourselves, and
the larger the share of each can be.
So far we have done a deplorably poor
job of production since peace returned.
We ought to be having a business
boom, but ever since last summer we
have been impairing the possibility of
having one. We are trying to have a
low-production prosperity, and it can’t
be done.”
Carl AAT. Mesmer, vice president of
the Bankers Trust Company of Des
Moines, has a son, First Lieutenant
Cary AA7. Mesmer, Jr., who was in the
Marine Corps during the war and re­
cently received the following citation
when he was awarded the bronze star
“For meritorious achievement in
connection with operations against the
enemy from 3 August, 1943, to 21 Sep­
tember, 1945, during which time he
served as a weapon’s platoon com­
mander and as commanding officer of
a marine rifle company on Tarawa,
Gilbert Islands; as aide to the assistant
commander of a marine division on
Saipan and Tinian, Marianas Islands;
as aide to the chief of staff of a marine
amphibious corps; and as aide to the
commanding general of a service com­
mand. On Tarawa, First Lieutenant
Mesmer, then a second lieutenant, as­
sumed command of his company when
all other officers had become casual­
ties, and led it with distinction for the
remaining two days of battle. As aide
to the assistant commander of a mar­
ine division on Saipan and Tinian, he,
by his disregard for his own safety
while under heavy enemy fire, served
as an example to all who worked with
him. During combat operations against
the enemy, he continually performed
his duties in a courageous and exem­
plary manner, and throughout this
period he was of invaluable aid to the
commanding general. His conduct was
at all times in keeping with the high­
est traditions of the United States
Naval Service.”
Richard Rapport, bank commission­

er for the state of Connecticut, does
not believe that bank earnings for
1945 have been excessive and indicates
that last year the insured commercial
bank of the country grossed $2,479,000,000 a n d government securities
yielded $1,133,000,000 or almost 46 per
cent of all income.
The Federal Housing Administra­
tion at Washington during 1945 had

an income of $29,850,000 and expenses
of $10,538,000. In 12 years of opera­
tions the FHA has a favorable balance
of income over operating expenses
amounting to more than $70,000,000.
Revival of foreign trade is expected
to receive fresh impetus from Great
Britain’s use of the $3.75 billion credit
from the United States. The Treasury
authorized initial withdrawal of $300
million of the credit. Secretary Sny­
der said the British planned to use
part of the loan for immediate pur­
chase of food and machinery.
Banks in New York have announced
increased rates on security loans and
in general they are as follows: Loans
to government bond dealers on U. S.
government collateral % per cent on
securities of one-year maturity or less,
1 per cent on securities maturing over
one year; loans to brokers and dealers
on customers’ securities IV2 per cent,
and to brokers and dealers on other
than governments for own account, 1
to 1% per cent, depending on the col­
G. D. Thompson, president of the
Moline State Trust and Savings Bank
of Moline, Illinois, and his associates
have taken the first step in the con­
version of their bank to a national
bank under the name of First National
Bank of Moline.
It is expected that the certificate of
conversion and charter from the comp­
troller of the currency will be received
in time so that the new bank may
start operations on September 3, 1946.
The bank is one of the oldest in the
county, having been organized as the
Moline Trust and Savings Bank in
1869 and merging with State Savings
Bank and Trust Company in 1925.
Total resources of the bank are over
Swayne P. Goodenough, vice presi­
dent of the Lincoln Rochester Trust

Company, of Rochester, New York,
and first vice president of the Finan­
cial Advertisers Association, in a re­
cent speech in which he discussed how
to encourage people to come into the
bank, said, “I would begin a definite

A b o u t H u n kers You K n m r

program of modernizing my banking
quarters. I’d remove all the brass
grill work, all the dust and moss-cov­
ered fixtures of a generation or two
ago, and do my best to create a bright,
pleasant atmosphere on the banking
floor—where the customers would do
business across a counter as simply
as they do business at the corner cigar
Robert M. Hanes, chairman of the
Small Business Credit Commission of
the American Bankers Association,
and president of the Wachovia Bank
and Trust Fomppny, Winston-Salem.
North Carolina, in a recent speech
said, “We regret that we do have some
riskless bankers who would avoid their
responsibility of taking ordinary busi­
ness risks, and some who wish to make
more profit by carrying a larger loan
with the support of such a guarantee
and get more interest than they could
“ Such bankers are letting them­
selves in for another wave of criticism,
I believe, when our economy ceases
its upward movement and starts on
the downward trend again. When that
happens, it will be found that the RFC
cannot indiscriminately continue to
guarantee loans at a rate of threefourths per cent or less which it re­
ceives for its guarantee. Losses must
follow in a declining economy, and
the taxpayer will find that he will
have to pay the bill.”

A joint survey made by the Federal
Reserve Board and the Bureau of Agri­
cultural Economics, indicates that 50
per cent of America’s families have
incomes of less than $2,000 a year.
The report gives the income and
amount of assets in each group as fol­
Under $1,000—Median income, $600;
median assets in savings bonds, other
securities and bank deposits, $20.
$1,000-$1,999—Median income, $1,500;
median assets, $230.
$2,000-$2,999—Median income, $2,400;
median assets, $470.
$3,000-$3,999-—Median income, $3,300;
median assets, $900.
$4,000-$4,999—Median income, $4,300;
median assets, $1,450.
$5,000-$7,499—Median income, $5,500;
median assets, $2,700.
$7,500 and Over — Median income,
$10,000; median assets, $7,270.
Federal Reserve Bank of St. Louis

President, Mississippi Valley Trust Co., St. Louis
“ A banker who is decidedly public relations minded”

BANKER who is decidedly public relations minded, Sidney Maestre,
president of the Mississippi Valley Trust Company of St. Louis, Missouri,
is always acutely conscious of ideas, trends, and happenings that have a bear­
ing upon the banking business. These traits, combined with his powers of
concentration, his always firm purpose and his genuine interest in the world
at large, make him the executive and business leader that he is today.
Sidney Maestre was born on December 14, 1891, and attended the Univer­
sity of Missouri, where he was a member of Beta Theta Phi fraternity. In
November, 1914, Mr. Maestre married Louize Hoyt, and they have one son,
Allen S. Maestre. The family are members of Christ Church in St. Louis,
and for recreation Mr. Maestre enjoys golf and hunting. As for politics, he
lists himself as an independent.
Early in his banking career Sidney Maestre was a director and vice presi­
dent of the Mercantile Trust Company of St. Louis. Later he became
president of the Mercantile-Commerce Trust Company, and then president
of the Mississippi Valley Trust Company.
One of the most outstanding characteristics of Sidney Maestre is his pro­
gressive, forward-looking philosophy. A number of years ago he decided
that banks generally were not extending sufficient risk credit, particularly
to small businesses, and therefore he established a department for the han­
dling of what might be termed subnormal risks. To illustrate the wisdom
of his idea, during a recent eighteen-month period his bank made 157 loans
to 71 different types of business for a total of $1,100,000, with delinquencies
(T u rn to page 24, please)


Northwest ern Banker, August, 1946



0 an Ëiamatjes for L oss o f Ë*rofits
Hr in E xcess o f 0 eiHotj E rices?
G h Morton, a banker and saw null
operator, agreed to deliver certain lum­
ber to Grew, a lumber yard operator,
for resale. The contract was valid and
binding. Morton, however, was un­
able to deliver and it became necessary
for him to pay Grew damages. The
measure for such damages was Grew’s
loss of profits. In determining them,
could Grew use as his sale prices fig­
ures higher than applicable and law­
fully fixed ceilings?

No. A person can not recover for a
breach of a contract to sell lumber on
the basis of a loss of proposed sales if
they were to have been made above
lawfully fixed ceiling prices. An ac­
tion will not lie to cover a demand, or
a supposed claim for damages, if, to
establish it, the plaintiff requires aid
from an illegal transaction, or is under
necessity of showing and depending in
any degree upon an illegal agreement
to which he may be a party.


Smith conveyed to Brown certain
property in Nebraska for $5,000 in cash
which amount represented its value.
At the time Smith was indebted in a
substantial amount to a bank and he
made the conveyance in an effort to
hinder, delay and defraud that institu­
tion. Brown also knew that this was
the purpose of the transaction. Was
the conveyance void as to the bank
even though an adequate consideration
was paid?

Yes. Where a grantee, at the time
a conveyance is made to him, has
knowledge of the intent of the grantor
to hinder, delay, and defraud his credi­
tors by the conveyance of his property,
the conveyance is void as to existing
creditors whether or not an adequate
consideration is paid.
Q . Farrell, a South Dakota banker,
signed an agreement, as surety, guar­
anteeing that Bradley would repay
certain funds borrowed by him. Dunne
signed a similar agreement on a sepa­
rate form. Bradley did not pay as
agreed and Farrell had to make good.
Northwestern Banker. August, 1946
Federal Reserve Bank of St. Louis

This and Oilier Timely Legal
Questions Are Answered
by the
Would the fact that Dunne signed a
separate agreement prevent Farrell
from securing from him a contribution
covering a proportionate part of Far­
rell’s outlay of funds?

No. Where several sureties are
bound by the same obligation, à surety
satisfying the obligation is entitled to
contribution from his cosureties, even
though for such obligation the sureties
are bound by separate instruments.

Q. A trustee in bankruptcy for a
realty company came to need certain
funds to preserve the estate of the
bankrupt and borrowed them from a
bank. He gave trustee certificates evi­
dencing the indebtedness to the bank
which were duly approved by the
proper authorities and were in all
things legal and binding. Hater the
trustee resisted the enforcement of the
terms of the obligation by the bank.
Should he prevail?
No. Certificates of a bankruptcy
trustee will always be strictly en­
forced. They are issued for new and
substantial considerations and the
benefits thereof flow directly to the
trustee and his charge. Like treatment
is also to be accorded other similar
obligations of trustees which have
court approval.

Q . Hobert died in Nebraska leaving
a will which created a trust of a sub­
stantial amount of property for chari­
table purposes. Curtin was named
trustee therein. Later on it became
necessary to appoint a successor to
Curtin and this was done by appropri­
ate court action. The will was silent
as to whether the successor trustee
could exercise the same powders as
Curtin. Could he do so?

Yes. The powers conferred upon a
trustee of a charitable trust can prop­
erly be exercised by his successors,
unless it is otherwise provided by the
terms of the trust. Such is the law in
these matters according to the Restate­
ment of the Law, Trusts, and the
Nebraska Supreme Court, in a recent
decision, pointed out that it is appli­
cable in that state.


The stockholders of a corporation
appropriated corporate funds to their
.joint benefit in 1938 and 1939 by the
payment of certain life insurance pre­
miums. The payments could not well
be classified as ordinary and necessary
expenses of the company. The federal
government sought to tax them as
dividend distributions. The payments
were not in proportion to the stock­
holdings. Was this fact fatal to the
government’s case?

No. Corporate earnings may consti­
tute a dividend notwithstanding that
the formalities of a dividend declara­
tion are not observed, that distribution
is not recorded on the corporate books
as such, that it is not in proportion to
the stockholdings, or even that some
of the stockholders do not participate
in its benefits. Nothing in the tax
statute or decisions warrants the view
that a dividend distribution loses its
character as such and becomes a de­
ductible business expense merely be­
cause stockholders do not benefit
equally from the distribution.

Q. Lingel insured a building in
South Dakota against loss by fire. The
policy provided that the building was
insured for its actual cash value. Did
this mean that if the building should
be destroyed by fire the sole measure
of Lingel’s recovery under the policy
would be the replacement cost less
depreciation of the building?
No, according to a recent South
Dakota Supreme Court decision, it
was held that replacement cost less
depreciation of an insured building
Federal Reserve Bank of St. Louis


damaged by fire is an important ele­
ment to be considered in determining,
but is not the sole test of, the actual
cash value of the building. As an inci­
dent to such holding the court pointed
out that other factors might be in­
volved, such as location and obsoles­

Q. Dempster held a mortgage on cer­
tain property belonging to Walker.
The mortgaged property was worth
substantially more than the mortgage
debt and such interest as might accrue
thereon. Walker became hopelessly
insolvent and went into bankruptcy.
Did interest stop running on Walker’s

debt to Dempster from that time for­

No. Generally, interest stops run­
ning upon secured and unsecured
claims after a debtor passes into bank­
ruptcy, unless the estate is solvent.
This rule, however, does not apply to
secured debts when the mortgaged
property is sufficient to pay both prin­
cipal and interest thereon. It follows
that Dempster is entitled to interest
on his claim during the pendency of
the bankruptcy proceedings.


Markle and his wife, Michigan
residents, made identical wills and

subsequently died. A lawsuit arose
between their c h i l d r e n regarding
whether there had been an oral agree­
ment by their parents to make mutual
reciprocal Avills binding on the survi­
vor. Could the lawyer who had drawn
the wills for the Markles testify re­
garding this feature of his communica­
tions with them during the prepara­
tion of the instruments?

Yes. The great weight of the author­
ities and the text writers is that com­
munications between an attorney and
his client during the preparation of a
will are not privileged. Michigan fol­
lows this rule. Some states have spe­
cial statutes covering these matters
and they, of course, govern in those




Through long experience and complete facilities, this bank is
equipped to handle efficiently every type of financial business
connected with foreign commerce, industry and travel. We shall
be pleased to discuss problems of exchange and other foreign
banking matters with our bank correspondents.
Foreign Banking Department Services include:
Foreign R em ittance Service
Commercial Letters o f Credit and Acceptances

Lindeman was convicted in fed­
eral court for using the mails to de­
fraud by reason of the sale by him of
pre-organization certificates in an un­
incorporated business headed by him.
Parts of the government’s case were
summaries of his accounts which were
incomplete. These were admitted in
evidence as they were because Lindeman had failed to keep proper ac­
counts of the funds entrusted to him.
On appeal, Lindeinan sought a reversal
of his conviction on the ground that
they should not have been admitted.
Should he be sustained in this connec­

No. A person in a fiduciary capacity
cannot complain that summaries of ac­
counts admitted in evidence are incom­
plete, where their inadequacy is due
to his neglect to keep proper account
of funds entrusted to him by investors
for specific purposes. # #

Travelers’ Letters o f Credit and Travelers’ Checks
Foreign Monies Bought and Sold
Foreign Collections—Our arrangements with our for­
eign correspondents enable us to offer unusual service
in the discount and collection of sight, time, clean and
documentary bills. Exchange of domestic ladings for
ocean documents is arranged with the ut most dispatch.

Credit information is furnished on foreign firms and corporations.

The First National Bank
of Chicago


Nòrthwestern Banker, August, 1946
Federal Reserve Bank of St. Louis



(Continued from page 9)
compares with this volume o f loans. Our
deposits which are now $1,988,671, have been
gaining steadily, showing an increase of
$331,395 from a year ago, and our loans
have also gained steadily, showing an in­
crease o f $336,473.
“ Recently we found it necessary to dis­
pose o f some of our Governments to meet the
heavy demand for loans, and in a little over
three years we have tripled our growth.”
C. F. Witt, President The
South Omaha Savings Bank,
Omaha, Nebraska

"Observed 31st Anniversary"
“ On August 3rd we observed the 31st
anniversary o f the Lytton Savings Bank by
moving into our new banking quarters. This
bank has had 31 years of continuous opera­
tion without any interruption and without
stock assessment or waivers of any kind by
“ D. R. Wessling was the founder o f the


If your customers want

IRVING is exceptionally
well qualified to help them
locate prospective buyers
and sources of supply in all
leading foreign countries.

Im i
Federal Reserve Bank of St. Louis

T r u s t C o m pan y
O N E W A LL STREET . N EW Y O R K 15, N. Y .
Member Federal Deposit Insurance Corporation

Northwest ern Banker, August, 1946

bank, from whom I purchased control.
“ Also at this time I wish to congratulate
you on your excellent publication the N orth­
western B anker and I feel your editorials
‘Across the Desk from the Publisher’ are
unsurpassed by anyone as they are based
on sound, clear thinking.
“ Our deposits have grown $915,000 in
10 years and are now $1,276,000.”
Theo. J. Tokheim, President
and Cashier Lytton Savings
Bank, Lytton, Iowa

"Our New Building"
“ I got quite a kick out of your article in
the July N orthwestern B anker and we
will let you know when the remodeling in
which we are now engaged is completed so
you may have a chance to see our new build­
ing, which includes quite a few of the recom­

mendations set forth in the N orthwestern
B anker .

F. O. Glascoe, Vice Presi­
dent The Fourth Northwest­
ern National Bank at Fiverside, Minneapolis, Minnesota

(Continued from page 19)

and losses averaging only .005 per
Asked what he considered the most
important problem facing bankers
today, President Maestre replied:
“ Convincing the public that banks
and bankers are benefited only when
the public is benefited."

Named Director
Lester Armour, senior vice president
and director of the City National Bank
and Trust Company of Chicago, was
recently made a director of the Pure
Oil Company.

Improved Model
Greatly improved in operation over
former models is the De Luxe Electric
“ Protectograph” checkwriter, accord­
ing to The Todd Company, Rochester,
N e w York, disbursement-equipment
Chiefly interesting to users, especial­
ly those living in humid or tropical
climates, is the treatment and finish of
all interior parts to resist rust and
Other refinements are an improved
ribbon reverse and control mechanism
assuring trouble-free operation and
uniform inking; an improved prefix
word control and operating mechanism
giving added disbursement safety; a
smoother operating keyboard; im­
p r o v e d check-holding levers, and
stronger shafts, castings, and other
operating parts to assure efficient oper­
ation and long life. Refinements have
also been built into the zero-and-blankstop mechanism which gives positive
mechanical assurance that zeros will
automatically drop i n t o place in
amounts like $100,000, $1,000,000, etc.
The Protectograph is supplied with
a performance guarantee indemnifying
users against losses which may result
from alteration of amount lines writ­
ten on the machine.

At a meeting of the board of direc­
tors of the Mercantile-Commerce Bank
and Trust Company, St. Louis, Walter
L. Pope was appointed assistant trust
officer in the trust department.

Approves A.I.B. Courses

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Many Iowa bankers know by experience that Drovers' specialized
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N ort hwest ern Banker, August, 1946
Federal Reserve Bank of St. Louis

Y A R D S ,


ysH I

The American Institute of Banking,
educational section of the American
Bankers Association, has announced
to its chapters throughout the country
that its correspondence courses have
been granted blanket approval by the
Veterans Administration for veteran
training under the G. I. Bill of Rights.
T h e announcement states, “ The
American Institute of Banking has
been informed by the Veterans Ad­
ministration in Washington that its
correspondence course program has
been approved under Public Laws 16
and 346.
“ This means that veterans of World
War II may enroll for correspondence
courses of the institute, the full costs
of which will be borne by the Veterans
Administration, under either of the
above mentioned public laws up to the
extent of each veteran’s educational



a t Your Service
The coming years should bring the greatest volume of foreign
trade ever attained by the United States, according to the Depart­
ment of Commerce . . . You can render your customers a valuable
service by helping them with their foreign trade and international
banking transactions. Helping our correspondent banks with these
problems is, in turn, a service we offer you . . . The world-wide
facilities o f our Foreign Department are at your disposal.

ban kers

T r u st Co m p a n y






A Partial List of Bankers Trust Company Services to Banks
Collection o f Par and Non-Par
Collection o f Notes, Drafts,
Coupons, Matured Bonds and
Other Items (D om estic and
Transfer o f Funds, Remittances
and D om estic M oney Orders
Credit Information
Commercial Paper Purchases
Servicing Loans to Brokers and
Participation with Correspondent
Banks in Loans to Local
Federal Reserve Bank of St. Louis

Dealers in United States Govern­
ment, State and Municipal
Investment Information
Receipt and Delivery o f Securities
Commercial and Travelers Letters
o f Credit
Safekeeping o f Securities
Consultation on Pension and
Profit-Sharing Plans
Co-Paying or Exchange Agent,
Co-Transfer Agent or
Registrar, and Co-Depositary
Trust and Reserve Accounts
International Trade and Foreign
Banking Facilities

Northwest ern Banker, August, 1946

entitlement.” Complete directions are
then given on the steps to be taken by
the veteran in enrolling under this
Some 150 chapters of the institute
in 32 states had previously been desig­
nated by their state approval agencies
as authorized educational facilities un­
der the provisions of the act. This
earlier approval covered only courses
provided by chapters which veterans
would attend in person. The new blan­
ket approval makes it possible for
veterans to take courses in banking
subjects through regular chapter study
classes or by mail.

Rate Advanced


The Chase National Bank announced
that, effective July 31st, the call money
rate was advanced from 1 to IV2 per
For dealers in U. S. government se­
curities, in cases where the securities
have a relatively short maturity and
are part of current transactions on a
day-to-day basis, the bank’s interest
rate will be continued at three-fourths
per cent for the present.
On other loans against U. S. govern­
ment securities the rate to dealers is
advanced to 1 per cent, effective July
22nd. On loans against corporate and
municipal securities the interest rate
to dealers ranges from 1 to IV2 per

The regular $3 semi-annual dividend
on the common stock of the American
Bank and Trust Company of Chicago
was voted at the meeting of the bank’s
board of directors held last month.
The dividend was declared out of the
bank’s earnings for the first six months
of 1946, being payable $1.50 on July
15th to stockholders of record July
13th and $1.50 on October 15th to stock­
holders of record October 14th.

As a correspondent of The Northern Trust
Company, your bank adds to its own cus­
tomer services the complete facilities, the
techniques and the broad experience gained
by this institution over a period of many
years. And you will find in each of our de­
partments a friendly, cooperative staff, inter­
ested in your problems. Your inquiries are
cordially invited.

E. Jack Sitgreaves, assistant vice
president of the Bankers Trust Com­
pany, New York, has been appointed as
a member of the subcommittee on
Model state banking code of the com­
mittee on state legislation of the Amer­
ican Bankers Association, it has been
announced by Frank C. Rathje, presi­
dent of the A.B.A., who is also presi­
dent of the Chicago City Bank and
Trust Company, Chicago, Illinois.
Mr. Sitgreaves, who was formerly
executive vice president and trust offi­
cer of the Easton Trust Company,
Easton, Pennsylvania, recently re­
turned from the U. S. Army Air Forces
with which he served with the rank of
major in the Meriterranean Theater of
Operations. Before entering the armyhe was associate editor of the Penn­
sylvania Banking and Building & Loan
Codes, Annotated & With Forms, and
served as chairman of the trust com­
pany section of the Pennsylvania
Bankers Association and president of
the Corporate Fiduciaries Association,
Group III, Pennsylvania Bankers Asso­
Martin Katte, auditor of Farmers
and Merchants Bank, Long Beach, Cali­
fornia, was elected president of the
Southern California Conference of the
National Association of Bank Auditors
and Comptrollers at the annual elec­
tion meeting held in Los Angeles.
D. L. Havens, assistant comptroller,
Bank of America, Los Angeles head­
quarters, was elected vice president,
and T. H. Ballmer, head office, Secu­
rity-First National Bank of Los Ange­
les, was named secretary-treasurer.
Outgoing president was Norman E.
Kenyon, assistant auditor of California
Bank, Los Angeles.


50 S O U T H LA S A L L E S T R E E T , C H IC A G O 90, I L L IN O IS
M em ber Federal Deposit Insurance Corporation

Northwestern Banker, August, 1946

To A.B.A. Committee

Auditors Elect

Federal Reserve Bank of St. Louis


The Chase National Bank, New
York, has announced the following
promotions in the official staff of the
Vice presidents—Alfred W. Barth,
Harold R. Robinson and Joseph E.
___ _

Second vice president—Frederick T.
Burrows, Christopher J. Kelly and Ed­
win J. Smith.

Sioux City Manager
G. A. Paulsrud has been appointed
manager of Northwestern National
Life’s northwest Iowa agency with
offices in the Badgerow Building at
Sioux City, Iowa.
The agency covers 11 counties in
northwest Iowa, lying west and north
of the territory of the Connolly Agency
which also has its headquarters in
the company’s Sioux City offices.
Prior to entering the life insurance
business with NwNL in 1939, Mr.
Paulsrud was a teacher and school
superintendent. After making an out­
standing personal production record
he joined the company’s agency field
service staff and during the past year
has been a supervisor attached to the
Des Moines service office.

. . . t h e w a y he lives
Lots of sunshine and a setting of
natural beauty have made the average
Californian a devotee of "life in the
open.’’ It’s easy to enjoy outdoor life
in California, and the citizens are
willing to take the time to enjoy it.

A cash dividend of $1.00 per share
for the current semi-annual period, or
at the annual rate of $2.00 per share on
all common stock outstanding, has
been declared by the directors of Bank
of America NT&SA.
This represents an increase of 25
per cent over the 80 cent dividend paid
in the previous semi-annual period.
At the same time the directors de­
clared the regular semi-annual divi­
dend of $1.00 on the convertible pre­
ferred stock at the regular annual rate
of $2.00 per share.
President L. M. Giannini reported
to the board that after recent preferred
stock conversions aggregating approxi­
mately 385,000 shares, the original 600,000 shares of preferred stock have been
reduced to about 20,000, and as a con­
sequence the board issued a call for
the redemption of the remaining out­
standing preferred shares, effective
July 31, 1946. The right to convert
each preferred share into approximate­
ly one and one-third shares of common
stock expired June 30th.

A.B.A. Members
Seventeen banks from nine states
recently became new members of the
American Bankers Association, accord­
ing to a report of the organization com­
mittee, of which R. L. Dominick, presi­
dent of the Traders Gate City National
Bank, Kansas City, Missouri, is chair­
The new A.B.A. member banks in­
California — American Trust Com­
pany, San Mateo.
Colorado—First State Bank, Rangeley.
Federal Reserve Bank of St. Louis

. . . a n d the w a y he b an ks
Unique is the statewide system of
banking exem plified by Bank of
rThe California Trend” A m e r ic a . N e a r ly 500 b ra n ch e s
. . . a fact-based study . . . will
help you plan your business if
your plans include California.
Write Dept. AD, 300 Mont­
gomery St., San Francisco 20,
or 660 So. Spring St., Los
Angeles 54, for a free copy.

situated in every important town
or city provide a valuable banking
service that is statewide in scope, yet
local in community understanding.

Bank o f America, a member o f the Federal Reserve System and the
Federal Deposit Insurance Corporation, has main offices in the
two reserve cities o f California—San Francisco and Los Angeles.


i&mtk o f A m e rica



v Si n ag s


12 N IC H O L A S

L A N E , L O N D O N , E. C . 4


Northwestern Banker, August, 1946



R em o d eled and E nlavf/ed O ffice

E. CHESTER GERSTEN, president of the Public National Bank and
Trust Company o f New York, announces the formal opening of the ba n k ’ s
newly enlarged and remodeled Midtown Office at Seventh Avenue and 39th
Street. Customers can now be served by an augmented staff with added
convenience and efficiency, both on the main banking floor and on the ex­
panded mezzanine, which houses the Foreign, Credit and New Business
departments. Joseph Singer, vice president, continues in charge of the
Midtown Office. Associated with Mr. Singer are John Obeda, vice president;
Herbert K. Baskin, assistant vice president; Peter White, assistant vice
president, and Benjamin Sloan, assistant cashier.

Illinois—Chatham Bank of Chicago,
Chicago; Marine National Bank of Chi­
cago, Chicago; Tuscola National Bank,
Tuscola, Illinois.
Indiana—Wabash Valley Trust Com­
pany of Peru, Bunker Hill; Wabash
Valley Trust Company of Peru, Den­
ver; Owen County State Bank of Spen­
cer, Gosport.
Kansas—Eskridge State Bank, Esk­
ridge; American State Bank, Great
Bend; Citizens State Bank, McCracken;
Rose Hill State Bank, Rose Hill; Tonganoxie State Bank, Tonganoxie.
Mississippi—Peoples Bank, Louin.
Missouri-—Arcadia Valley Bank, Ar­
Nebraska—First State Bank, Ran­
Oklahoma—Security National Bank,

Banks Help Farmers
The nation’s 13,000 country banks
are extending more than $1,000,000,000
in credit to their farm customers to
support agriculture production, ac­
cording to a report made by the Agri­
cultural Commission of the American
Bankers Association.
The report shows that non-real es­
tate agricultural loans held by all in­
sured banks in continental United
States aggregated $1,009,600,000 on Jan­
uary 1, 1946, an increase of almost
$100,000,000 from the January 1, 1945,
total of $917,400,000. The current out­
Northwesfenn Banker, August, 1946
Federal Reserve Bank of St. Louis

standing loan volume is nearly double
the amount of farm production loans
held by the banks in 1937.
These figures arranged by the Amer­
ican Bankers Association from data of
the Federal Deposit Insurance Corpo­
ration do not include loans from banks
not insured by that agency. From
these non-real estate loans held by the
banks are excluded bank loans guar­
anteed by the Commodity Credit Cor­
poration and all bank loans secured by
real estate. Non-real estate agricul­
tural loans are generally regarded as
farm production loans as the banks
provide credit for their farm custom­
ers to purchase seed, farm equipment
and machinery, breeder and feeder
livestock, and for other agricultural
purposes which contribute directly to
the production of crops.
The largest increase in use of nonreal estate bank credit occurred in
California, where loans outstanding
on January 1st of this year aggregated
$91,800,000, compared with $65,000,000
the year previous. The use of bank
credit by farmers increased in all
states with the exception of South
Dakota, Nebraska, Kansas, Minnesota
and Missouri.

California Bank
An increase of $3,000,00 in the capi­
tal structure of California Bank, bring­
ing the total of that figure to $16,302,729, and a jump in loans from $57,260,-




575 to $65,013,825 are the principal fea­
tures of that institution’s midyear
statement of condition.
The capital structure is now made
up of $6,500,000 in common stock, $6,500.000 in surplus and $3,302,729 in
undivided profits. The gain of $1,500.000 in common capital and $900,000
of the $1,120,000 gain in surplus was
realized through the sale of 60,000
shares of stock at $40 per share which
was sold ratably to shareholders early
in the year.
Normal deposits remained about the
same as at the first of the year, a de­
cline in demand deposits being offset
by a similar increase in time deposits,
but a drop of $37,000,000 in United
States war loan deposits resulted in
an overall decrease in total deposits to
$449,086,179 as compared with $486,625,009 at the beginning of the year.
Total resources of the bank now
amount to $468,649,686.
California Trust Company, wholly
owned by the bank, shows capital of
$1,000,000, surplus of $500,000 and un­
divided profits of $239,960.

McKittrick Joins
Chase National Bank
Winthrop W. Aldrich, chairman of
the board of the Chase National Bank,
announced recently that Thomas H.
McKittrick will join the staff of the
bank as a vice president in the coming
autumn, giving his attention to ques­
tions of policy involved in foreign rela­
tionships and loans, as well as to the
bank’s operations in the foreign field.
Mr. McKittrick has been engaged in
banking and financial affairs in Europe
for the past 30 years, the only inter­
ruption being four years during which
he saw foreign service in the Ameri­
can army during World War I and two
years in the New York office of Lee,
Higginson & Company. His first work
abroad was to assist in the organiza­
tion of the Genoa, Italy branch of the
National City Bank of New York, of
which he became acting sub-manager.
In 1922 he joined the firm of Lee, Hig­
ginson & Company in London, being
later admitted to a partnership, which
he retained until 1939. Since the be­
ginning of 1940 he has held the office
of president of the Bank for Interna­
tional Settlements in Basle, Switzer­
land, which position he relinquished
on June 30th this year in order to re­
turn to the United States.


The 194th consecutive quarterly
dividend of the Northern Trust Com­
pany, Chicago, was declared by the
directors. This dividend of $4.50 is
payable on July 1, 1946, to stockhold­
ers of record June 18, 1946.
Federal Reserve Bank of St. Louis

facilities,fa d s, contacts

;.l, com p lete, modern



, rp

,i knowledge

ness, in d u in '’

Im re

fa d .« «

of Wisconsin

b u s i-


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^ 0{ aU the banks through"

c o n t a c t s ^ 0-

c . _ and always

out this state. A
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tine efficiency.
( mere routine
the usual limits o

D M .« « *

D .V .S 1 0 H

y ¿ce President
^ president
^ president

Georce T. Campbell
Richard J- Lawless
Donald A-Harper - A ss.




Wi s c ons i n’s Bank for Banks




Northwestern Banker, August, 1946


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near Carmel

F. A. A.


Non'ftv/c; cm F a n .'.cr, A u g u st, 1746
Federal Reserve Bank of St. Louis












P rices
E xpected to H old Steudy
However, Prudent Bankers Will Keep the Average Maturity of
Their Governments Within Five Years— Perhaps a Little Closer to Four
Investment Analyst
New York City
published t w o
months ago, the report to Con­
gress by the governors of the
Federal Reserve System on postwar
credit policy remains the most impor­
tant development since the Treasury’s
debt retirement program was launched
last spring.
The report of the governors con­
tains three rather vague and ill-defined
proposals for greater monetary con­
trols. They are offered for the consid­
eration of the Congress at this time,
and are not urged for immediate, or
even prompt adoption. Certain details
are designedly undefined on the theory
that the Congress will want to develop
its own definitions and will also desire
to discuss the whole problem with
Treasury and reserve experts before
writing the new proposals into law if,
indeed, the Congress proves receptive
to the Reserve’s suggestions.
Thus, there is no need for precipitate
action in anticipation that the Reserve
will be granted new and additional
powers over the country’s commercial
banks. The terms are yet to be pro­
mulgated and the entire philosophy
upon which the three proposals rest
may be rejected by the Congress when,
perhaps some time in early 1947, it gets
around to considering the subject.
The underlying philosophy upon
which the report rests is close to that
of those who have advocated con­
tinued price control as a major, and
in some cases as the only means of
combating inflation. Long before the
Congress deals with the Reserve’s
pleas price control may be a dead duck.
If so, practically all the basic assump­
tions made by the governors will be
highly suspect and, presumably, not
very persuasive.
In sum, then, quite possibly the rem­
edies proposed will seem worse than


l t h o u g h
Federal Reserve Bank of St. Louis

the evils complained of by the Con­
gress. Of equal interest is the question
of whether any additional powers
(aside from the question of whether
those sought are the most desirable)
are needed. On this point the gover­
nors appear almost naive. They find
themselves unable to follow a “tradi­
tional policy” and ask for “alternative
measures.” But the reason that the
traditional policy may not be followed
is that the Reserve has given an as­
surance to the Treasury that an artifi­
cially low rate will be maintained on
one-year certificates because the board
“does not favor a higher level of inter­
est rates than the government is now
Thus, by throwing in with the
“cheap money” people, the board has
hamstrung itself. Unable to resort in
the public interest to the recognized
instruments of credit control—the dis­
count rate and open market operations
—which were conferred upon it by
the Federal Reserve Act, the board
now seeks further powers.
The complete summary, then, is that
the three proposals may be harmful
and may not be needed.

Budget Balance Remote
In contrast to this rather unsatisfac­
tory situation arising from policies not
uninfluenced by political considera­
tions, the authorities, without asking
for additional powers and acting well
within the framework of “traditional
policies,” have taken a few steps along
the orthodox path of deflation. For
one, the debt has been further reduced
by the redemption of $1,250,000,000 of
certificates on August 1st. The re­
maining $1,219,000,000 was “rolled
over” in the strange jargon of the
banking world. That operation brought
the total reduction of federal debt to
$13,400,000,000 since the program was

initiated last spring. The Federal Re­
serve has eliminated the one-half per
cent preferential discount rate on
loans to member banks collateralized
with short governments. There is an­
other “drive” on to increase sales of
savings bonds and to dissuade holders
from cashing those they now own.
All of the efforts to control the banks
and to prevent demonetization of the
debt and to curb an inflation that may
or may not develop would be infinitely
easier, or perhaps entirely unneces­
sary were the federal government to
balance its budget. On this score the
outlook ik, charitably püt, spotty.
In the fiscal year ended on June
30th, the government came through
with a deficit of almost $22,000,000,000,
a sum $32,000,000,000 less than was
thought proper in the preceding fight­
ing war year. The trend doubtless
will persist because the outlays on way
efforts must be much smaller, but the
authorities can claim no special credit
for spending less on a war that is
won. The sector to which attention
should be directed is that of the home
front. In the year just ended, the cost
of the federal government, exclusive
of war activities, debt interest, care
of veterans and international mone­
tary commitments was upwards of
$6,000,000,000, some $2,000,000,000 more
than in the preceding fiscal year. And
the worst part is that the cost of ordi­
nary government services is still ris­
ing. In June it was $917,000,000 com­
pared with $364,000,000 in June, 1945.
The situation is not improved when
the intake side is considered. In the
’45-’46 fiscal year, revenues were off
only $3,400,000,000, but a good deal
more than a third of the drop took
place in the final month of the fiscal
All this adds up to continued deficit
Northwestern Banker, August, 1946



financing. The latter is inflationary.
So it seems essentially futile to be
making herculean efforts to combat in­
flation and at the same time to be per­
sistently introducing inflationary po­
tentialities into the economic system.

of the Currencies"
There is no reason to be cheerful on
this subject. Ohio’s Senator Taft, al­
though a politician who perhaps is not
unaware that there is a presidential
contest coming in 1948, and a Republi­
can not averse to embarrassing the
administration is, nevertheless, a man
whose words carry weight. He has
estimated federal income at 35 and
outgo at 47 billions in the present fiscal
years, or a deficit of 12 billions.

However, the authorities still have
vast powers with which to maintain
the “cheap money” policy and doubt­
less will use them. The debt retire­
ment program likely will be continued
since Mr. Snyder has abandoned the
course he once hinted at when it
seemed that by so doing he might help
to preserve OPA. More recently, he
has found no cause for concern with
the slight tightening of money rates
in financial centers and told the press
that the government fiscal policy won’t
be much affected thereby.
Altogether, as this is written, man­
agers of bank portfolios need not be
unduly concerned about the price of
governments. There has been some

f f e j U*-



C ompany

New York Stock Exchange
and Other Principal Exchanges


Fminrlpft 1913

McK in n o n

216-218 Empire Bldg.



Phone 4-2127


11 W all Street, New York
231 S. LaSalle St., Chicago
Branches in 34 Cities

P riv a te W ir e to A ll Prin cip a l M a rk ets

Northwestern Banker, August, 1946
Federal Reserve Bank of St. Louis

Write for our weekly Stock Survey

Laverne M. Bartow
M anager

Members New York Stock Exchange
and other principal exchanges

shaking out of speculative holdings on
margin and during July there was
some weakness in prices. Some of the
banks will be pushed around a bit to
maintain reserves as war loan ac­
counts are drawn upon, but the two ba­
sic factors are unchanged. There will
be vast sums seeking employment and
there will be no retreat by the authori­
ties from the determination to hold in­
terest rates on government debt at, or
even below prevailing levels.
Although there is no reason why the
quotation for Canadian dollars, the
English pound or Sweden’s kroner
should be considered when fixing in­
vestment policies, the start of what
may be a “Battle of the Currencies”
last month did create some fears in the
minds of bankers.
It is probably not important that
one of the most frequently invoked
arguments in support of the Bretton
Woods plan was that something must
be done to forestall a race to devalue
currencies and that, if anything, we
are now looking at a trend among
other countries to upvalue their cur­
rencies as against the U. S. dollar. The
record contains too many instances
of poor predicting by Washington to
justify singling out this particular non­
The fact is that Canada restored her
unit of currency to parity with that
of the U. S. and that Sweden has up­
graded her kroner in dollars. The
Swiss franc, of course, is in a class
by itself, backed by 100 per cent and
more of gold.
The Canadians had every justifica­
tion for abandoning a wartime expe­
diency. Their economy is every bit
as sound as ours and something like
that may be said of the Swedish situ­
For years residents of the U. S.
have been buying Canadian invest­
ments, enticed by both the investment
merit and the 10 per cent discount.
Their judgment was good and, finally,
rewarded. It may easily be that the
Canadian dollar, reflecting the realities
of trade, is worth a premium over the
U. S. dollar. On the over-all position,
of course, Canada is in excellent shape.
It is true that she has large London
credits and probably no more than
adequate New York credits, but it is
conceivable that the $3,750,000,000
granted Britain could, by roundabout
ways, be converted in part to paying
some of England’s debt to Canada with
U. S. dollars which Canada might
then make available to the world at
a discount. It would be an ironic
twist, but of no fundamental signifi­
cance. We would have to pay more
for that which we buy from Canada
and get less for that which we sell,
while our tourists would no longer be

able to spend 90c dollars on Canadian
vacations, but none of this presages
a war of currencies.
All that is in sight is that gradually
the world will adjust its trading levels
to the realities. The world over there
is too much currency and its equiva­
lent. The excesses, however, are un­
evenly distributed. Measured in U. S.
dollars, a few currencies are too low
and many are too high. Adjustments
are ahead, hut no battle of currencies.
Consequently, there is no reason to
fear that the dollar will be dislodged
from its proud place, or that U. S.
obligations payable in dollars will go
The quotations for governments will
continue to be governed by the deci­
sions of the policy makers in Washing­
ton. For some time ahead, or at least
as long as continued deficit financing
makes practically impossible the long
term funding of the war-incurred debt
at interest rates higher than now pre­
vailing, prices of governments will
hold more or less within the ranges
already established this year.
Since it is obvious that one day
there must be a change in policy, it is
only prudent that commercial bankers
keep the average maturity of their
governments within five years and
closer to four than to five where a
conservative course is followed. And,
of course, war loan accounts and other
deposits likely to be withdrawn within
a year should be covered in full by
one year certificates as an added meas­
ure of precaution even though the
yields therefrom are quite unsatisfactory. # #
Compiled by the Northern Trust Company, Chicago

(as of J u l y 23, 1946)
Alabama ...................................... -33/,
Los Angeles, California.......... .iy 2
San Diego, California............... .2
Chicago, Illinois ......................... •1V?
Shreveport, Louisiana . . . . . . . .5
Baltimore, Maryland ............... .lVs
Boston, Massachusetts ............. .4 V,
Detroit, Michigan ..................... ,4 V. 12-15-60
Kansas City, Missouri............... .3 Vo
Camden, New Jersey................. •3 L
New York State......................... •3Vo
Cleveland, Ohio ......................... .5
Dayton, Ohio ............................. ■1%
Oklahoma City, Oklahoma. . . . .1
Philadelphia, Pennsylvania . . ,1V4
Knoxville, Tennessee ............... , 3 V .
Houston, Texas ......................... ■1%
West Virginia ............................. .1


124,530 last year,” Vice President
Smith continued.
Investors Syndicate of America, Inc.,
sales jumped from $35,700,100 (face
amount) in the first six months of
1945 to $73,347,777 (face amount) in
the same 1946 period; Investors Syn­
dicate of Canada, Ltd., new business
rose from $8,573,000 to $18,528,000 dur­
ing the same six months; Investors
Syndicate Title & Guaranty Company
reported an increase of $4,000,000, and
Investors Syndicate’s three affiliated
“fund” companies grew more than


Saves Foreign Stamps
The Foreign Department of City Na­
tional Bank & Trust Company, Kansas
City, is rendering an unusual service
to some of the bank’s customers who
are interested in stamp collecting. Be­
cause of the large amount of corre­
spondence which this department car­
ries on with countries all over the
world, an unusual number of current
foreign stamps are thus made available
to these collectors. City National
Bank, through a letter to its corre­
spondent bank and export-import cus­
tomers, obtained the names of the
philatelists interested in these stamps.





Consolidated collateral trust debentures, issued by the
Federal intermediate credit banks, constitute joint and
several obligations of these institutions. They are au­
thorized under the Federal Farm Loan Act, as amended.
When maturing in six months or less, they may be
purchased by Federal R eserve Banks and are
acceptable as collateral for fifteen-day loans to
member banks. Furthermore, the debentures are legal
investment in various states for funds of insurance
companies, savings banks and other fiduciaries.
These debentures become available at regular intervals
for subscription, in denominations o f $5,000, $10,000,
$50,000, $100,000, due from six to twelve months.
They are obtainable from dealers and dealer banks.

Sales Nearly Double
Gross sales of Investors Syndicate’s
affiliated and subsidiary companies al­
most doubled in the first six months
of 1946 over the 1945 corresponding
period, R. L. Smith, Jr., vice president
and general sales manager of the inter­
national investment company, an­
“ New business, consisting of sales of
certificates for our face amount compa­
nies and shares of capital stock for our
'fund’ companies, were $119,510,664 at
the end of June compared with $60,
Federal Reserve Bank of St. Louis

Requests for supplemental information
regarding these seasoned issues should be addressed to

C H A R L E S R . D U N N , F isc a l A g e n t
1 N a ssa u S treet

N e w Y o r k 5, N . Y

Northwestern Banker, August, 1946



prices to farmers and food producers.
will adjust itself. It is apparent that,
It will do no speculative hoarding in the light of vastly increased labor
One of the country’s principal food
and will maintain the largest possible and other costs, prices cannot now re­
chains recently made, through the me­
supplies of food to be made available turn to prewar levels. It is equally
dium of newspaper advertisements,
equally to all customers.
apparent that retailers have no control
the following three-way pledge to its
In general, this is the way in which over the wholesale or production price
kinds of retailers, dealing in all structure, save that resulting from
1. It will continue to pass on to cus­
tomers the benefit of all savings made manner of commodities, can best serve their mass purchasing power. But
through its system of pricing at low­ the public in the battle against infla­ mass cooperation of all retailers such
as that advertised by this food chain
est point to yield a reasonable profit.
save tremendous sums for con­
2. It will pay legitimate market
No one knows where the prUe level
sumers and help control the “inflation­
ary spiral.”
The majority of retailers have kept
faith with the people. Even when all
price controls were suddenly removed,
f f ’ r
¡ » a ./
N they held price increases to the mini­
c. (
mum within their control. Maximum
efficiency in distribution plus maxi­
mum efficiency and output in produc­
tion hold the real solutions to the price

Pledge to Consumer


s e l e c t iv e

f u n d in


Foresight and Capital

Prospectus on request from Principal Underwriter

R. E. Macgregor, President
Minneapolis, Minnesota





Every day is moving day for the banks
o f this country . . . they move money.
Thru the medium o f some forty mil­
lion checks, and thru the use o f that
perfect disbursing machine known as
the checking system, they distribute
money from coast to coast in a manner
that appears effortless.
This easy flow o f money is possible
only because o f precision methods
and workmanship on the part o f the
nation’s fifteen thousand banks. And
when those forty million checks have
been sorted and photographed, re­
corded and shipped, added up and
paid, canceled and filed, a good day’s
work has been done and someone is
A ny little thing that will lighten the
work of those who handle these forty
million checks is worth a lot. So why
not lighten the work of those who
sort them and file them by letting
them read printed names instead of

Northwestern Banker, August, 7946
Federal Reserve Bank of St. Louis






those horrible signatures? It won’t
cost anything because customers like
Personalized Checks and they are per­
fectly willing to pay for them.
D on’t forget that the old-fashioned
"speed-up”, whether in factories or
banks, is in the discard. It’s no longer a
question of how we can do things faster
but how we can do them easier. It
adds up to the same thing, o f course,
so when you sort and file checks
easier by looking at clean-cut printed
names instead o f those funny little
scrawls you are sorting and filing
faster and more accurately.
^Could you r customers like Personal­
ized Checks? W ould they be willing
to pay $1.2 5 for two hundred? It
won’t take long to find out. Just slip
one o f our little enclosures in your
statements next month and see what
happens. W e’ll be pleased to supply
you, without charge, whatever quantity
you need.

The oil industry of the United States
reached its present status of efficiency
through foresight in planning 10 and
15 years in advance and risking capital
to find new reserves. This industry
requires vast sums for exploration.
The cost of the first barrel of oil in
most instances is fantastic.
To cite a few examples: An American
oil company entered Venezuela in 1920
and eight years later brought in its
first commercial oil well, after invest­
ing $42,000,000. Another American oil
company made its start in Venezuela
in 1934; six years later it discovered
oil, with an exploration expense of
$14,000,000. In Colombia, the first in­
vestment in an area now important in
oil production was made in 1916; 17
years later oil was struck after an ex­
penditure of $21,000,000, but the oil
was not marketed until six years later
after additional outlays of $39,000,000.
In the Middle East, an oil company
spent nine years and $15.000,000 to
market the first barrel of oil. It takes
an average of 10 years to devcfiop com­
mercial oil in foreign lands.
It requires courage, foresight and
capital to build an oil supply. Private
enterprise in the United States has
all three. In foreign lands the oil in­
dustry has not fared so well, due to
political causes—high taxes, trade re­
strictions, political risks in general,
hostility to foreign capital, nationali­
zation, autarchic trends, monetary dif­
ficulties, and like retarding factors.
Oil in the United States is an excel­
lent example of how private enterprise
outstrips government dominated in­
dustry. It can use its own foresight
and capital in a nation of sound money
and is not afraid to use both in the
development of a product.



H o ir io #*W Vom * Shore
o f Form Mosto ess
In a Radius of Ten Miles in Each Direction from Your
Bank, There Are 1,600 Farmer Prospects— All
With More Money Than They Ever Had Before
America Fore Insurance Group
UOTING census figures on farm
values would not arouse inter­
est because, at best, these are
averages. Insurable farm values fluc­
tuate greatly from state to state and
even from county to county. Instead
I would suggest to you that when you
are analyzing your possibilities, you
make an analysis of your individual
working area. Take an area extend­
ing ten miles in each direction from
your town. This will give you 400
square miles, and many agents travel
far greater distances. The size of the
farms will vary with the type of farm­
ing, but even on a conservative basis
of four farms to a section, you will
have 1,600 prospects. And what about
these 1,600 prospects? Are they in the
doldrums? Are they hard up? Not
by a long shot. They are now, and
have been or the past few years, “in
the money.”


Is this period of farm prosperity
likely to end all too soon? I not only
hope not, but honestly think not.
There will quite likely be some level­
ing off but fundamentally everyone,
the politician, the merchant, the bank­
er, the business man, knows that if
our country is to prosper the farmer
must be prosperous.
What is the farmer doing with this

The farmers are saving their money
and are using a good share of their

farmer today is a progressive indi­
vidual and mechanized farms will be­
come more and more commonplace—
more values for you to insure.

Get Your Share

B. R. W A L IN D E R
“ The farmer must be prosperous”

savings to pay off the old mortgage.
No small sum now in the hands of
the farmers will be spent for machin­
ery and various appliances as soon as
they become available. The average

that your Banker’s Blanket Bond
does not protect your Cash Letter while it is in transit
by mail or express? Ask about our
Cash Letter Policy, which fills the gap.

But how are you going to get your
share of this farm business from the
men who are “in the money,” paying
off their mortgages and buying ma­
chinery? First by knowing not only
the conditions of the policy you have
to sell, but the one your competitor is
selling as well. By familiarizing your­
self with the needs of the farmers in
your area. By giving service. (Inci­
dentally, service in the opinion of the
farmer doesn’t consist of a visit every
five years to solicit the renewal.) By
being a judge of values, qualified to
make a reasonably accurate estimate
of building values. Certainly by being
able to judge utility value. By famil­
iarizing yourself with the underwrit­
ing requirements of your company
and adhering to those requirements.
I can think of no branch of the insur­
ance business where good common
sense is more in demand. There are
other branches requiring a higher de­
gree of technical knowledge but com­
mon sense cannot be obtained through
reading textbooks.

Prospect List
Agents have used various methods
of compiling their prospect lists. The

D id you know


Insurance Counselors
Federal Reserve Bank of St. Louis

to Banks











Northwestern Banker, August, 1946



good old system of cold canvass has
been relied on by some, others have
watched the sales and removals, while
some have developed sizeable volumes
through service rendered the owners
who are distantly removed from their
farms. In this latter instance, good use
has been made of surveys. We have
heard a great deal about surveys the


Incorporated 1933

Home Office

Des Moines, Iowa

This is Iowa’s oldest surety company.
A progressive company with experi­
enced, conservative management.
W e a re p r o u d o f o u r h u n d r e d an d
f ift y b a n k a g e n ts in Io w a .

To be the exclusive representative of
this company is an asset to your bank.

W r it e to

E. H . W A R N E R
Secretary and Manager

past few years, but fundamentally the
successful farm business has always
operated on the survey plan. An appli­
cation can well be considered a survey
because that, in substance, is what it
is intended to be. It might well be
mentioned, too, that authorities in the
business can prove that no company
has ever succeeded in the proper han­
dling or development of farm business
on other than the application or sur­
vey plan.
Each agent must decide for himself
the branch of insurance he intends to
push. If he prefers sitting in his office
or if he thrives best in city atmos­
phere, he need give no second thought
to the farm business. If, on the other
hand, he prefers the wide open spaces,
the fresh air of the country, an oppor­
tunity to get close to nature, enjoys
meeting and talking with farmers and
can speak their language and has been
endowed with his share of common
sense, then he should succeed as a
farm insurance agent.
May I suggest that you analyze your
qualifications and if you measure up,
apply yourself. You will find that
your compensation will be in propor­
tion to the effort you exert. # #

Investors Syndicate of America, Inc.,
wholly owned Investors Syndicate sub­
sidiary, elected: James S. Lane, secre­
tary, Harold K. Bradford, vice presi­
dent, J. R. Ridgway, chief mortgage
loan officer, and Messrs. Gruenhagen
and Dion, as vice presidents. All are
officers of the parent company.
Directors of Investors Mutual, Inc.,
an open-end investment company for
whom Investors Syndicate is principal
underwriter and investment manager,
elected: Ralph J. Faville, of the invest­
ment department, as secretary, and
Messrs. Gruenhagen and Dion as vice
Investors Selective Fund, Inc., an
affiliated open-end investment com­
pany, named Edward M. Burke, mem­
ber of the parent company’s legal staff,
as secretary, and Messrs. Dion and
Gruenhagen, vice presidents.
Robert W. Peterson, assistant coun­
sel of Investors Syndicate, was named
secretary of Investors Stock Fund,
Inc., for whom Investors Syndicate
also acts as investment manager and
principal underwriter, and Messrs.
Dion and Gruenhagen, vice presidents.

Promote Ten Officials

We Are All Investors

Directors of Investors Syndicate and
its affiliates and subsidiaries have pro­
moted ten members of the executive
Investors Syndicate elected Norman
B. Waag, chief accounting officer, as
Secretary; Dewey F. Gruenhagen and
E. N. Dion, investment department
members, as vice presidents; and C. D.
McGuiggan, of the mortgage loan de­
partment, a vice president.

In a recent editorial, the Saturday
Evening Post discussed the “war
against saving,” caused by the steady
decline in return on invested capital,
and the enormous increase in taxes
on earnings. In conclusion, it said: “ If
the war against saving is carried much
further, our users of capital will be
driven to government lending agen­
cies, with the inevitable evils that
arise when investment is made, not to
produce a profit, but to augment politi­
cal power . . . For the ‘Little People’
the prospect would be much as the
London Sunday Times lately stated
it: ‘The worker will face a single vast
monopolist employer — the State —
whom he can neither emulate nor
“Most of these evils can be avoided
if the so-called Common Man will con­
sult his own interest instead of letting
demagogs and executive secretaries
of leftist committees define it for him.
If he did that, he might even champion
the right of the investor to his just
share of the pie, if only on the ground
that, when you come down to earth,
we are all investors.”
Government domination of industry,
like government ownership of indus­
try, is the sure and inevitable road to
Statism. That is why we must keep
private enterprise alive—and to keep
it alive we must allow it adequate
earnings on the people’s savings it


F in a n c e T h a t N e w F a r

L O C A L L Y ...
For well over a year Allied Mutual has run (and will continue to run)
newspaper advertising suggesting to new car buyers that their local financing
institutions are willing, ready and able to take prompt and personalized care
of all car financing problems.
Our Allied Mutual agents continue to cooperate with home town banks.
Many banks represent Allied Mutual.

W r ite

Harold S. Evans, President
Hubbell Building

N orthw estern

Federal Reserve Bank of St. Louis

A u g u s t , 194 6

Des Moines 7. Iowa


W e l l , M a ’ am , I ’ m here b e c a u s e I had
t r o u b le r a is in g m o n e y .
Y o u se e , M a ’ am ,
th e ten s lo o k e d to o m u c h lik e on e s.

The Road to War
According to a recent nation-wide
survey, 62 per cent of the American
people now believe that we will have
another world war within 25 years.
Only 24 per cent believe that we will
have a lasting peace. By comparison,
three years ago, when the last war
was at its height, 47 per cent of the
people felt that a lasting peace was
probable, and only 43 per cent were
convinced of the inevitability of an­
other war.
The diminishing faith of the Ameri­
can people in man’s ability to prevent
wholesale murder and destruction on
an incredible scale is in inself a ter­
rible commentary on the state of the
world. Its origins are obvious enough.
We have watched the failure of the
United Nations Security Council to ar­
rive at workable agreements. We have
seen the trend back to the old balance
of power policies which did so much
to foment World Wars I and II. We
have seen the rights of small nations
destroyed and the voices of dissenters
violently stilled. We have seen author­
ities pessimistically forecast that the
world may break down into two great
opposed spheres of influence, led by
the Soviet Union on one side and the
United States on the other.
The challenge this offers to all the
nations of the world is the greatest
they have ever faced. For, should war

come again, it could very well end
only in the death of civilization as we
know it. The atomic bomb is in its in­
fancy, and the “improved” bombs of
the future, compared to those of today,
will be like a 1947 car beside the prim­
itive vehicles that appeared forty-odd
years ago. Other weapons, of unim­
aginable scope and destructive power,
are in the experimental stage. It is
perfectly possible that this kind of
scientific progress, once unleashed for
war, may mean the ruin of all man­
What nation wants this? What gov­
ernment, no matter how greatly it dis­
trusts its neighbors, will assume the
awful responsibility for another war?
What differences are so important that
they cannot be reconciled in the in­
terest of a lasting peace? The very
existence of every being, whether he
be Russian or American, Pole or
Greek, Indian or Briton, depends up­
on the answers given to these tre­
mendous questions.

Chemical Bank Appointment
Frank K. Houston, chairman of the
Chemical Bank & Trust Company, an­
nounces the appointment of Edgar T.
Sloan as assistant secretary of the
Mr. Sloan is a graduate of Yale Uni­
versity and the Harvard Business
School and prior to the war was an
assistant cashier of the Phoenix State
Bank of Hartford, Connecticut. He
has recently been released from the
army where he held the rank of major
and served with the War Department
Price Adjustment Board in Washing­
ton, D. C.


YOU have clients who look to
you to protect their investments.
YOU have investments which
you wish to protect in the in­
terest of your bank.
WE have a complete line of
WE offer for your inspection,
without obligation, an Agency
Contract which will enable you
to service these needs.

In the July issue of the N or th w est ­
B anker , on page 84, it was stated
that Dr. Melchior Palyi is economist
for the First National Bank of Chicago.
This statement is incorrect for Dr.
Palyi is not associated in any way with
the First National Bank of Chicago.
The editors regret this error.




Write us now



Accident Insurance, $5000 Principal Sum for
only $2.00 Paid Up in Full to the Middle of
next December.

2 5 5 0 P ills b u r y A v e . S o .
Federal Reserve Bank of St. Louis



M in n e a p o lis 4 , M in n e s o ta

Northwestern Banker, August, 1946


/fo r e c a st

K evision

present conditions is inexcusable. The
most tangible anti-inflationary action
U NLESS economies are made in vari­ spending in view of present inflation­ the federal government could take
ous items of the budget presented ary conditions. The President, in a would be to run a substantial budget
by the President last January for the statement on the director’s report, said surplus. The problem is to find the
fiscal year 1947, an upward revision
that government expenditures will be places where substantial cuts can be
will be necessary to carry through the reduced. The President stated further made.”
Although the spendings of the civil
government’s administrative program, that all deferrable construction and
according to Business Comment, the public works projects will be studied departments and agencies constitute
monthly publication of The Northern and that military and veterans’ pro­ little more than 5 per cent of total ex­
Trust Company, Chicago.
grams will be reviewed to determine penditures in the budget, they are esti­
Quoting a report by Mr. Steelman, where they can be reduced. These ob­ mated at more than twice the 1939
level, the bulletin points out, stating
director of reconversion, that this re­ servations are encouraging.
vision may reach 10 to 15 per cent, the
“Some administration officials recog­ “Some of these programs are essential
bulletin goes on to say that “ Mr. Steel­ nize the necessity of restraining ex­ while it would appear that others are
man’s report, however, stressed the penditures in the present inflationary not, at least under present conditions.”
In conclusion the bank says, “The
need for reduction in government environment. A budget deficit under
importance of economy wherever pos­
sible cannot be minimized, yet it is
obvious that near-term savings in non­
war expenditures can hardly exceed a
few billion dollars unless the interna­
tional loan program is curtailed. Real­
ly substantial cuts, if they are to come,
must be found in military items. The
budgeted figures-—$8,000,000,000 for the
army, $5,000,000,000 for the navy, and
$3,000,000,000 for other war purposes
—are almost one-tenth of the national
production of goods and services. Un­
informed persons cannot say that sub­
stantially lower figures would endan­
T o meet the foreign banking requirements o f your cus­
ger national security. But the military
tomers you need not maintain accounts in foreign countries
should know that they cannot have
the free rein in peace that they had in
if you use the comprehensive services which our Foreign


Complete Foreign Banking

Service for Your Customers


Department offers you. We are prepared to:

• supply you with the facilities for establishing
Letters o f Credit for importations from abroad,
and for the handling o f export collections;
• transmit funds to any foreign country by mail,
airmail, or cable;
• furnish data regarding exchange regulations, and
credit information on foreign buyers and sellers;
• equip you with all the necessary forms bearing
the name o f but one bank— your own —and
without cost to you.
You are invited to consult with us regarding any phase
o f our foreign facilities for banks.



Member Federal Deposit

Nort hwest ern Banker, August, 1946
Federal Reserve Bank of St. Louis

IIK S c -

Insurance Corporation

Rathje Scores Guaranteeing
Of Bank Credit
The concept of the guarantee of
bank credit by the government was
criticized by Frank C. Rathje, presi­
dent of the American Bankers Associa­
tion, at the annual dinner of the Cali­
fornia Bankers Association last month.
“ The desirability of the banking
system of the nation relying upon
government guarantees, insurance,
and underwriting is a serious thing,”
Mr. Rathje said. “ This nation was
built by virtually complete freedom
on the part of the banks who during
the years demonstrated an ability to
furnish the sound credit needs of
industry and the people generally. It
is to be borne in mind that government
insurance or guarantees alone will not
prevent a repetition of falling prices
and forced liquidation when once again
excess production raises its towering
“The bankers of the nation can well
afford to bear in mind in the building
of the approaching credit structure,”
Mr. Rathje continued, “that prices of
commodities will fluctuate, and that
the*.indebtedness incurred at present
high levels of prices and incomes may
necessarily have to be liquidated at a
lower price level.





i n n e s o t a

St. Paul

Ben Woodworth Promoted
News of the election of Ben S. Woodworth, advertising manager, as assist­
ant cashier, and advancement of Delmar E. Kulp, assistant comptroller, to
the position of comptroller, was an­
nounced recently by Henry E. Atwood,
president of the First National Bank
of Minneapolis.
Mr. Woodworth entered the employ


vice presidents, and Kenneth M. Mor­
rison, vice president and comptroller.

Reorganize Barrett Bank
As the result of a reorganization
effected recently at the Citizens State
Bank at Barrett, Minnesota, Palmer
J. Score, formerly of Elbow Lake, is
the cashier of that institution. He suc­
ceeds J. B. Steffanson, who has held
that position for the past four years
but because of failing health, has re­
tired and returned to his former home
at Isanti.
In the reorganization Palmer Score
and his uncle, John Score, cashier of
the Vergas, Minnesota, State Bank,
acquired stock in the Barrett bank.
Mr. Score held the position of assist­
ant cashier of the Bank of Elbow Lake
for a year and a half prior to his recent
service of 41 months in the U. S. Army.
Since returning from service he has
served as assistant cashier at the Bar­
rett bank for the past few months.
Other officers of the reorganized
bank are: S. A. Bye of Northfield,
president; John Score of Vergas, vice
president, and Ardis Peterson of Bar­
rett, assistant cashier. The bank’s fi­
nancial statement shows footings of
$448,980, deposits of $415,435, capital
stock of $25,000, surplus fund of $5,000
and undivided profits of $3,544.

Purchase Amboy Interests
B E N S. W O O D W O R T H
Newly elected assistant cashier

of the former Minneapolis Trust Com­
pany in 1921, was elected assistant
secretary in 1924 and retained this
position until the trust company and
the First National were merged in
1933. After an extended leave of ab­
sence he returned to the bank in late
1934 and has since been in charge of
Mr. Kulp was also with the Minne­
apolis Trust Company, joining that
firm in 1918 as auditor and comptroller
and going to the First National as
assistant comptroller at the time of
the merger.
Mr. Atwood also has announced the
retirement of three officers. They are
W. A. Volkmann, Arthur P. Kemp,
Federal Reserve Bank of St. Louis

Richard L. Myers and William C.
Blethen of Mankato, Minnesota, are
the new president and vice president
of the Security National Bank at Am­
boy, which has undergone several
changes in personnel recently.
Mr. Myers, president of the Good
Thunder First National Bank, and
manager of the office specialties com­
pany in Mankato, and Mr. Blethen,
Mankato attorney, along with S. B.
Wilson, also a Mankato attorney, have
purchased some of the interests of
stockholders in the bank. Mr. Blethen
and Mr. Myers will also replace Ruth
Dredge and the late E. C. Wingen as
directors of the bank. Mr. Myers re­
places C. H. G. Hazel as president, and
Mr. Blethen replaces George Sharp as
vice president.
Mr. Wingen, cashier, who died last

month, had been a banker for 40
years and was with the Security Na­
tional 20 years.
Eldor Pick of Mapleton will be added
to the present staff at the bank, but
no other changes in personnel are

Bancorporation Reports
The interim report of Northwest
Bancorporation and affiliated banks
and companies, covering operations for
the six months ended June 30, 1946,
was released last month by J. C. Thom­
son, president.
The consolidated net income for six
months ended June 30, 1946, was $2,410,047, equal to $1.55 per share, com­
pared with $2,540,118, equal to $1.64 per
share, for the same period in 1945.
These figures are after deducting the
usual provision for charge-offs and
write-downs which is credited to re­
serves for contingencies. This provi­
sion for the six months ended June 30,
1946, aggregated $1,133,139, compared
to $955,270 for the same period in 1945.
Consolidated net earnings from cur­
rent operations before provision for
taxes on income increased $732,724 for
the six months ended June 30, 1946,
over the six months ended June 30,
1945. Profit on securities sold declined
$651,492 for the corresponding periods.
The profit on securities sold during the
first six months of 1945 was unusually
Net cash income of the holding com­
pany was $873,054 for the six months
ended June 30, 1946, compared with
$767,988 for the same period in 1945.
A dividend of 40c per share, in the
aggregate amount of $619,507, was paid
May 25, 1946.
The capital and surplus of North­
west Bancorporation increased from
$51,034,451 at December 31, 1945, to
$52,896,604 as of June 30, 1946, equiva­
lent to a book value for the corporation
stock of $34.15 per share as of June
30, 1946, as compared to $32.95 per
share as of December 31, 1945. The
book value of the stock excludes re­
serves for contingencies which aggre­
gated $13,612,892 as of June 30, 1946,
and $12,577,692 as of December 31,
Combined deposits of affiliated banks
as of June 30, 1946, were $1,261,045,814
(including war loan account of $140,062,825), compared to $1,309,694,167 (of
which $255,208,414 represented war
loan deposits) as of December 31, 1945.

Transfer Control to Askov
The annual meeting of the stock­
holders of Security State Bank of
Askov, Minnesota, was held at the
bank July 1st, at which time Askov
people purchased the bank stock be­
longing to the Hurley interests at Pine
Northwestern Banker, August, 1946


Minnesota News

City, transferring control of the insti­
tution to Askov people.
At the organization meeting held
after the transfer of ownership, Holger R. Buck was elected president, C.
R. Pedersen and Tony Sebald, vice
presidents, and E. L. Hugelen, cashier.
Francis D. Miller, returned service
man, is back at the bank as assistant
The board of directors consists of
Holger R. Buck, C. R. Pedersen, Tony
Sebald, E. L. Hugelen and Hans Mosbaek.
Mr. Miller took over his old duties
at the bank after serving as assistant
bookkeeper and helper at the Ameri­
can office for a short time. He was
on the bank staff before entering the

Veteran Returns to Bank
Back from nearly four years in the
service, where he served as a first
lieutenant in the Air Corps, Claire
Hansen has resumed his position as
teller at the First Robbinsdale State
Bank of Robbinsdale, Minnesota.
Mr. Hansen began employment with
the bank in September, 1940, and was
employed there until June, 1942, when
he entered the service. He served
with the Air Corps in England, France,
Italy and Germany.

directors of the institution h^^Msst
Mr. Leider entered the employ of
First Bancredit Corp., an affiliate of
the bank, in 1938 and served as sales
correspondent and credit man for the
organization. In 1941 he was assigned
to the post of credit man in Bancredit’s
Houston, Texas, branch office. He re-

Elected Assistant Cashier
Lloyd L. Leider was elected assistant
cashier of the First National Bank of
St. Paul at a meeting of the board of

E ffe c tiv e c o -o r d in at ion
of all departments assures rapid, efficient han­
dling of every type of banking transaction. You
are invited to use any or all of our facilities.
Promoted at First National, St. Paul

C it y

N a t io n a l

H a n k

A N D T R U S T C O M P A N Y o f C h ic a g o
2 08





turned to St. Paul in 1942, serving as
credit supervisor and later was placed
in charge of sales promotional work
for the corporation.
In 1945 he became a member of the
bank’s department of banks and bank­
ers, working with correspondent banks
in developing loaning procedures in
the field of consumer credit financing.

Appointed Cashier


o i i n s n u


Nort hwest ern Banker, August, 1946
Federal Reserve Bank of St. Louis

Appointment of Harold L. Hanson as
cashier of First National Bank of
International Falls, Minnesota, was
announced recently by G. N. Millard,
president. Mr. Hanson began his new
duties as successor to Lloyd V. Han­
son, who resigned several weeks ago
and has gone to Virginia City, Mon­
Mr. Hanson was discharged in March
following three and one-half years of
duty with army transportation corps.
He saw service in the Philippines.
Native of Baudette, where his fa­
ther, H. C. Hanson, is president of the
First National Bank, he is a graduate
of the University of Minnesota. He
had extensive experience in banking
prior to the war with Northwest Bancorporation banks at Sauk Rapids and
Slayton. Following his discharge, he
returned to Slayton and was cashier
of the Murray County State Bank until
he accepted the First National appoint­


H ENRY E. ATWOOD, president of
the First National Bank of Min­
neapolis, has announced election of
W. Hubert Kennedy, Minneapolis busi­
ness man and investment counselor,
as a vice president of the bank. Mr.
Kennedy took up his duties in the
trust department August 1st and until
then was vice president and treasurer
of Justus F. Lowe Company. He was
associated with Wells-Dickey Company
for 20 years and was president of the
Cedar Lake Ice & Fuel Company until
that firm was sold.



Among those named to the Minne­
sota USO campaign committee for
1946 are J. G. Byam, vice president,
First National of Minneapolis; J. Cam­
eron Thomson, president, Northwest
Bancorporation; Henry E. Atwood,
president, First National of Minneap­
olis, and Julian B. Baird, president,
First National of St. Paul.

Special Correspondent
Northwestern Banker

Loan Association, was elected president
of the Twin City Financial Advertisers
Association at its first annual meeting.
John he Laittre, vice president and
treasurer of Farmers and Mechanics
Savings Bank of Minneapolis, was
elected secretary and treasurer. Mr.
Soash replaces Ben S. Woodworth,
assistant cashier of the First National
of Minneapolis, who was the first presi­
dent of the association.
Columbia Heights State Bank has in-

creased its total authorization for ac­
ceptance of deposits from $1,200,000 to
$5,000,000. Deposits of the bank now
total $1,670,000. Herbert Woodward,
who organized the bank in 1937 and
was its first cashier, predicted the
bank’s deposits would pass the $5,000,000 mark in the next five years.

Honor Minnesota Banker
A plaque honoring him as outstand­
ing northeastern Minnesota business
man for his contribution and coopera­
tion with agriculture, has been pre­
sented to Ben R. Hassman, 67, presi­
dent of the First National Bank of
Aitkin, Minnesota. The award was
presented at the annual picnic of the
Honor Roll Society of Northeastern
Minnesota at the Northeast Experi-

"Open House9'in Minneapolis

Consolidated net income of the
Northwest Bancorporation during the
six months ended June 30th was re­
ported by President J. Cameron Thom­
son as $2,410,047, equal to $1.55 per
share, compared with $2,540,118, equal
to $1.64 per share, for the same period
in 1945. Consolidated net earnings
before provision for taxes increased
$732,724 over the 1945 period. Capital
and surplus increased from $51,034,451
to $52,896,604 during the six months.
A semi-annual dividend of 40 cents
per share has been declared by direc­
tors of the First Bank Stock Corpora­
tion, payable September 9th.
dividend will bring to $2,264,950.40 the
dividends paid this year. Combined
net operating earnings of $3,003,945
were reported for the first six months
of 1946, equivalent to $1.06 per share,
compared with $2,786,659, equal to 98
cents per share, in the first, half of
1945. Net operating earnings of the
corporation alone were $1,333,348.
Vern C. Soash, assistant treasurer of
the Minnesota Federal Savings and
Federal Reserve Bank of St. Louis

office were introduced by the Northwestern National Bank o f Minneapolis to the
public at a recent “ open house’ ’ attended by several hundred persons.
In the picture above, J. F. Ringland, left, president o f Northwestern National,
looks on as Leroy Berg, right, manager o f the ba n k ’ s Lake Street office, presents
a cigar to bank customer Frank E. Seidel, president of the Seidel Tire and Supply
Improvements in the office include building o f a second entrance, on Nicollet
Avenue, remodeling of the front of the building, expansion of the floor space 25
per cent, modernization o f the vault, and installation of recessed fluorescent
lighting, an acoustical tile ceiling and air conditioning. This is the fourth en­
largement for the Lake Street office since it was founded in 1908. A staff of
almost 70 employes works in the office.
Nort hwest ern Banker, August, 1946


Minnesota News


ment Station in Duluth. Approximate­
ly 200 farmers from Pine, Aitkin,
Koochiching and St. Louis counties
were present at the affair.

and after the naval indoctrination
course at Fort Schuyler, New York,
and naval military government stud­
ies at Columbia University, was suc­
cessively assigned to the Commander,
Naval Forces, Europe, and to the Head­
quarters staff of Lt. General George
Patton, Jr., where he served with the
Third U. S. Army in England and

Joins Federal Reserve
John N. Peyton, president of the
Federal Reserve Bank of Minneapolis,
announced recently that the bank’s
board of directors appointed Thomas
H. Hodgson, recently a commander in
the navy, as assistant vice president
of the bank. Before entering military
service, Mr. Hodgson was assistant
counsel of the Federal Reserve Bank.
Mr. Hodgson entered military serv­
ice as a naval lieutenant in April, 1943,

Following staff service at the naval
training school at Princeton Univer­
sity and Civil Affairs Staging Area,
Monterey, California, Mr. Hodgson was
flown to Manila and Tokyo immediate­
ly after the Japanese surrender, and
there was a member of General Mc­

Right in the Center!
The pig that went to market, the com­
mission man, and the packer who
converts the pig into bacon, are all at
the very doors of the Live Stock National
Bank of Sioux City.
Where can you find a more logical
correspondent bank connection in Sioux
City, than this 50 year old bank, right
in the Sioux City stock yards? We
invite your account.
C. L.


M. A. W IL S O N
Vice President


H. C. L IN D U S K I
Assistant Cashier

J. S. H A V E R
Assistant Cashier

W . G. N E L SO N
Assistant Vice President
C. L. A D A M S
Assistant Cashier

Member Federal Deposit Insurance Corporation





ive S t o c k
Na t / o n a l B a n k




“y /te
Northwestern Banker, August, 1946
Federal Reserve Bank of St. Louis

F vD .i.C.

¿¿y t/ce


Arthur’s General Headquarters until
his return to the States a short while
While in Tokyo Mr. Hodgson was in
charge of the liquidation of 32 Japan­
ese and foreign banks and Japanese
exploitation companies.

Clearing House Election


H. G. Hill, of the State Bank of
Brownsdale, was elected president of
t h e Southern Minnesota Clearing
House Association, at the annual meet­
ing held in Rochester.
The session was attended by dele­
gates from Mower, Olmsted and Dodge
counties, and guests from the Twin
C. B. Newman, of the Dodge Center
State Bank, was elected vice president
and Clare Talen of the Farmers State
Bank of Eyota, secretary-treasurer.
The annual banquet was attended by
175 members and guests. The pro­
gram included a panel discussion on
the G. I. Bill of Rights, with G. N.
Reppe, Grand Meadow, presiding.
Golf featured the afternoon activi­
ties, with prizes going to Art Sands,
president of the Minnesota Bankers
Association, and F. A. Amundson,
state commissioner of banks.

Joins Frost Rank
Jean Gudahl has been employed as
bookkeeper at the State Bank of Frost,
Minnesota. Miss Gudahl recently was
graduated as valedictorian of her class
in the Frost high school.
The State Bank was organized in
October, 1899, and has two years to go
before celebrating its golden anniver­
sary. Its recent statement showed de­
posits of more than three-quarters of a
million dollars.
T. H. Gullord is president; John J.
Nelson, vice president; C. Kittlsen,
cashier; A. J. Brandsoy and Carl Erdhal, assistant cashiers.

Minnesotan Promoted
Charles N. Davis of Graceville, Min­
nesota, a World War II veteran with
a record of 35 combat air missions
over Europe, was elected as cashier of
the First State Bank of Cando, North
A native of Windom, Minnesota, Mr.
Davis began his banking career in
1937 with the Luverne National Bank
at Luverne, Minnesota. He remained
with that institution until his entrance
into the army in December, 1941. His
overseas service was with the Eighth
Air Force and, at the time of his dis­
charge last fall, he held a commission
as first lieutenant. Since last Novem­
ber he has been assistant cashier of
the First State Bank at Graceville.



S o u th

Falls, has been appointed locality
housing expediter for all parts of
South Dakota east of the Missouri
River. His duties consist of speeding
the movement of materials and man­
power connected with the veterans’
housing program. Mall was engaged
in the banking business for 14 years.
He organized the Farmers & Mer­
chants Bank at Huron in 1918, serv­
ing as its president until 1924.

Ih ik o l a


Transferred to Deadwood
Miles S. Wilson, who resumed his
work in the Newell office of the First
National Bank of the Black Hills, Deadwood, South Dakota, four months ago
after serving about four years in the
U. S. Navy, has been transferred to the
Deadwood office of this institution. He
had worked in the Newell bank about
two years before going into the navy
and had at that time been transferred
from the Deadwood office to Newell.

Bank Debits Up
June bank debits in 17 South Dakota
cities totaling $121,250,000 were 12 per
cent heavier than for June last year
and helped push the year’s total thus
far to a point 27 per cent ahead of
1945, the Ninth Federal Reserve Dis­
trict reported.
Debits for the year total $755,294,000
compared with $593,825,000 for the January-to-June period in 1945.
Percentage gains for June included
Aberdeen 18, Belle Fourche 29, Brook­
ings 21, Chamberlain 27, Deadwood 37,
Dell Rapids 3, Huron 23, Lead 73, Madi­
son 3, Milbank 34, Mitchell 18, Mobridge 33, Pierre 39, Rapid City 25,
Sioux Falls no gain, Watertown 10,
and Yankton 28.

Business and Pleasure
Combining pleasure with business,
the officers and directors of the State
Bank of Alcester, South Dakota, and
their wives visited the Carl Oden home
recently for the regular monthly bank
meeting and in anticipation of Mr.
Oden’s seventieth birthday anniver­
sary which came in July.

Deadwood Banker Retires
A. H. Shostrom, lifelong resident of
Deadwood, will devote his entire time
to the management of the Shostrom
Insurance Company, t h e business
started by his father, L. P. Shostrom,
more than 50 years ago.
Mr. Shostrom resigned recently as
assistant cashier and assistant man­
ager of the First National Bank of
the Black Hills after 25 years of serv­
ice with the institution.
Federal Reserve Bank of St. Louis


He is succeeded as assistant man­
ager and cashier by H. P. Person, as­
sistant cashier, and long time employe
of the bank. John F. Baggaley steps
into Mr. Person’s position.

Horace Barton, representative of
Halsey Stuart at Grand Rapids, Michi­
gan, visited Sioux Falls with his fa­
ther, John (). Barton, vice president
of the Northwest Security National
Bank. # #

First Bank Stock Reports

S io u x F u i is N e w s
JOHN P. McQUILLEN, an ex-major
s j in the Army Air Forces, has been
chosen vice president, trust officer and
member of the board of directors of
the Northwest Security National Bank
in Sioux Falls, pursuant to his resig-

J. P. McQuillen

Adolph Lodmell

nation as assistant U. S. district at­
torney. He succeeded P. H. McDow­
ell who resigned from the bank to
enter other business. At the same
time Ralph M. Watson, president of
the bank, announced promotion of
Adolph Lodmell to the office of vice
president and assistant trust officer.
Lodmell has been associated with the
bank for 27 years. McQuillen was
first appointed assistant U. S. attor­
ney in 1939 and was reappointed to
that post in April of this year after
serving with the AAF since August
10, 1942. While in the army he served
at various fields in the United States,
Alaska and Edmonton, Canada.
Vern D o h a , a World War II veteran,
has been promoted to assistant man­
ager of the Chamberlain branch of
the Northwest S e c u r i t y National
W. L. Mall, former South Dakota

banker and former United States Em­
ployment Service manager in Sioux

Directors of First Bank Stock Cor­
poration at a meeting last month de­
clared a semi-annual dividend of 40
cents per share on the capital stock of
the corporation, payable September 9,
1946, to stockholders of record at the
close of business August 16, 1946. Pay­
ment of this dividend will bring to a
total of $2,264,950.40 the amount paid
in dividends to stockholders in 1946.
The 73 bank affiliates of First Bank
Stock Corporation had combined net
operating earnings for the first half
of 1946 aggregating $3,204,498. The
portion thereof applicable to the par­
ent corporation, together with the re­
sults of the operation of the corpora­
tion and other active affiliates, pro­
duced combined net operating earnings
of $3,003,945, equivalent to $1.06 per
share on the 2,831,188 shares of stock
outstanding on June 30, 1946. The lat­
ter figure compares with combined net
operating earnings of $2,786,659, equal
to 98 cents per share, for the first half
of 1945.
During the six months ended June
30, 1946, First Bank Stock Corpora­
tion, the parent company, received
dividends from affiliates totaling $1,424,759. With other income, after de­
ducting accrued expenses-, the net oper­
ating earnings of First Bank Stock
Corporation only were $1,333,348 for
the six months’ period.
The above earnings figures are after
accruals for estimated taxes based on
income, and are subject to later adjust­
Deposits reported by the bank affili­
ates in published statements as of
June 29, 1946, aggregated $1,055,365,386. This includes U. S. war loan de­
posits of $120,885,887.

G. I. Loan Movie
The “ABC’s of GI Loans,” a short
public relations film depicting the
Northwestern Banker, August, 1946


South Dakota News

making of such loans and which clari­
fies some of the ex-serviceman’s mis­
conceptions of home and business
loans as provided for in the GI Bill of
Rights, has been filmed and is now
being offered for general sale to banks.
This ten minute educational movie
short, intended as a good-will builder
for banks, is being produced by Mode
Art Pictures, Inc., of Pittsburgh, Pa.,
producers of a number of public rela­
tions films for such firms as Allegheny
Ludlum, American Fruit Growers,



e w


Pittsburgh Coal, Superior Steel and
an entire series of educational films for
the United States Office of Education
and the Department of Agriculture,
and is being released by Syndicated
Films of Pittsburgh, Pa., acting as
sales agent. Individual copies of this
black and white sound film will be sold
to banks for $115 (35 mm. size) and
$105 (16 mm. size).
J. L. Baker, president of Mode Art
Pictures, credits The Colonial Trust
Company, Pittsburgh, Pa., with the
original suggestion for making this

American Dollar Strong
The American dollar “is and will
continue to be the strongest man-made
force in the world,” the Oregon Bank­
ers Association was told by Frank C.
Rathje, president of the American
Bankers Association and president of
the Chicago City Bank and Trust
Company, Chicago, Illinois. “But that
does not gainsay the fact that it will
fluctuate from time to time in the
terms of commodities, nor does it
preclude the possibility that the dollar
will not permanently step from one
plateau to another in the terms of its
purchasing power.”
The word “inflation” is a misnomer,
Mr. Rathje said; “ extreme pressures
for higher prices” would be more ac­
curate. “After a careful analysis, we
should determine whether we are ex­
periencing an extreme price rise or
are we about to experience such an
extreme rise. If we are, then we
should determine the cause and devote
ourselves to a cure or a preventive.
“Out of the maze of conflicting ideas
there appear three fundamental neces­
“The restoration of civilian produc­
tion with the same zeal for life that
we devoted to production of war ma­
terial to destroy.

h e

o r k


r u s t

o m p a n y




100 B R O A D W A Y
A N D 4 0 T H ST R E E T


Member o f Federal Deposit Insurance Corporation

k b s t e r

^ :« s



T e n s i o n T i e E n v e l o p e s c lo s e tig h tly
o n all e n c lo su r e s re g ard le ss o f th ick n ess.
T h e b u lk ie r th e c o n te n ts , th e tig h te r th e
h o ld . J u st o n e sim p le tw is t o f th e strin g
a r o u n d th e lo w e r b u t to n . T h is m ean s
q u ic k e r c lo su r e , b e tte r p r o te c tio n and
safer arrival.


1912 Grand Avenue
Nort hwest ern Banker, August, 1946
Federal Reserve Bank of St. Louis

Prone 4-4126

Des Moines 14, Iowa

“To rebuild our foreign trade to
provide an additional outlet for our
production and to give the people of
other nations of the world the benefit
of our industrial production.
“To maintain the present purchasing
power of our American dollar. Do that
to demonstrate to the world that we
will defend the integrity of that dollar,
and in addition, to be fair to the people
of America who invested their accumu­
lated funds and their savings in the
securities of this government during
the war years.
“ Make these fundamentals the creed
of our people and the philosophy in
our government and all of the other
problems that lie in our path will be
surmounted with an ease and grace
that will justify an even greater pride
in our American way of life. I have
great faith in the future of America.”

The Hobbs Bill
Passage of the Hobbs Bill, which
was signed by the President on July
3, was made necessary by the rack­
eteering activities of certain organized
labor groups.
Genesis of the bill goes back to 1941,
when a New York City teamsters’
union stopped trucks arriving from
outside the city, and compelled ship­
pers or buyers to employ union drivers
and pay them the union scale. Threats
and violence were employed. A farmer
driving his own truck and hauling his
own produce was forced to hire a
union driver. A test case was taken
to the Supreme Court, which held
these activities did not violate t;he
Federal anti-racketeering act, and that
remedial action would have to be
taken by Congress.
The Hobbs Bill is the result. It
simply makes it unlawful for union­
ists, along with everyone else, to
interfere with interstate commerce by
extortion or robbery. It does not
interfere with labor’s rights to strike
or picket. It is in no sense a “class”
It is a remarkable fact that some
labor leaders vehemently objected to
the passage of this bill by Congress,
and its signing by the President. To
all intents and purposes, those objec­
tors were saying, in effect, that union
labor has a right to racketeer, to
threaten, and to use violence to gain
its ends. The plain fact is that such
a measure should have been enacted
long ago, and Congress’ long delay in
passing it is indefensible.
The Hobbs Bill is not designed as
the answer to all our labor difficulties.
It simply puts unionists on the same
basis as all other citizens so far as
the observance of ordinary rules of
law and order is concerned.


\ o r Ü i D a k o ta


Elected Cashier at Minot
Election of W. D. Johnson, cashier
of the First State Bank of Cando,
North Dakota, as vice president of
Union National Bank, Minot, was an­
nounced last month by President
Harry M. Grant of the Minot bank.
Mr. Johnson has now assumed his
new duties. He had been connected
with the Cando bank since 1934.

Brothers Purchase Stock


Three brothers, Oscar, Milo and
Lloyd Gubrud, have purchased the
bank stock of R. G. Rasmusson in the
Farmers State Bank of Crosby, North
Dakota. Each will serve on the board
of directors which has been increased
from three to five members. Mr. Ras­
musson is vice president of the First
National Bank of Williston, North
The Gubrud brothers are all lifelong
residents of Divide county, where they
have been associated with the imple­
ment and oil business.

Two State Directors


Two new directors have been named
to the board of the Greater North Da­
kota Association. W. H. Westergaard,
vice president and director of the Wil­
liston (North Dakota) Savings and
Loan Association and chairman of the
board and president of the First Na­
tional Bank of Reserve, Montana, was
elected to succeed Harry K. Peyton
who resigned. L. T. Orlady of James­
town, North Dakota, and member of
the North Dakota State Water Conser­
vation Commission, was named to suc­
ceed the late R. R. Wolfer, who was
chairman of the board of the National
Bank of Jamestown.
Mr. Westergaard has been engaged
in the real estate business in Williston
for 40 years, established an abstract
business there and still owns a major­
ity interest, and for the past 20 years
has been engaged in the farm mort­
gage business, in addition to personal
extensive farming interests in the Wil­
liston vicinity. He organized the bank
at Reserve, Montana, in 1917 and al­
though the population of the town is
only 200, the bank has totals of more
than $3,000,000.
Federal Reserve Bank of St. Louis


Mr. Orlady is a native North Dako­
tan who has long been associated with
local and state civic affairs.

Made Advisory Chairman
LeRoy A. Pease, executive secretary
of the Greater North Dakota Associa­
tion, has been appointed U. S. Bonds
advisory chairman for the state of
North Dakota, succeeding F. L. Conk­
lin of Bismarck, it was announced by
Treasury officials recently.
At the same time the appointment
of Harold G. Wheeler to succeed the
late R. R. Wolfer of Jamestown as
director for the state of the U. S. Sav­
ings Bond division was announced. It
was revealed by National Director Ver­
non Clark that North Dakota residents
have purchased $412,000,000 in all is­
sues of bonds since May 1, 1941, of
which $200,000,000 were in E bonds.

Home Building Outlook
Home building in 310 cities, with
over two-thirds of our urban popula­
tion, in 1945 gained 25.8 per cent over
the preceding year, said Earl E. Crabb,
chairman of the Board of Investors
Syndicate, in a recent statement.
Twenty-five of 42 regions showed
home building increases over the pre­
vious year, eleven registered declines,
and six were virtually unchanged.
“Alabama, Arizona, Arkansas, Colo­
rado, District of Columbia (Washing­
ton), Florida, Iowa, Kentucky, Massa­
chusetts, Minnesota, New Hampshire,
New Jersey, New York, North Caro­
lina, Oklahoma, Pennsylvania, Rhode
Island, South Carolina, South Dakota,
Tennessee, Texas, Virginia, Washing­
ton, West Virginia and Wisconsin,”
continued Mr. Crabb, in reporting pre­
liminary results of the company’s
eleventh annual national housing sur­
vey, “showed increased residential
building in 1945 over 1944.
“California, Delaware, Georgia, Kan­
sas, Louisiana, Maine, Maryland, Mis­
souri, Montana, Nebraska and Utah
registered declines compared with a
year earlier, while Connecticut, Illi­
nois, Indiana, Michigan, Ohio and Ore­
gon showed virtually no change.”
New homes built in the 310 cities
during 1945 housed 342,240 people, a

gain of 70,288 or 25.8 per cent more
than in 1944, which was the lowest in
eight years. The 1945 total, however,
was 646,992 or 65.4 per cent below the
peak year of 1941 when 989,232 people
were housed in these same cities. The
1945 volume was 252,356 above, or al­
most three times greater than the
89,884 people furnished with new
homes in 1934, the record low level.
Volume in 1945 was 176,896 or 34.1 per
cent below 1930, which the building
trade generally considers a “normal”
The 310 cities are located in 41 states
and the District of Columbia. Their
1940 population, latest available fig­
ures, was 49,733,780 or 66.8 per cent
of the urban population of the United
Shortages of labor and materials
along with the priorities and other
restrictions on housing ever since V-J
Day largely are responsible for the
relatively low volume of home con­
struction compared with the demand
for new homes.
“ Federal construction of homes in
1945,” explained Mr. Crabb, “housed
only 26,304 people in these 310 cities.
This is 51.4 per cent fewer than in 1944
when such housing sheltered 54,156
people. Homes federally built formed
only 8 per cent of the total 1945 hous­
ing in our survey compared with 20
per cent in 1944, 44 per cent in 1943,
and 26 per cent of the 1942 totals. Fed­
erally constructed homes in 1943 shel­
tered 217,564 people, and 154,352 in
“Demand for new homes in the 310
cities generally appears promising, as
a result of accumulating home short­
ages. Home building depends on num­
ber of families, which in this country
is increasing faster than population,
the movement of people, and relatively
high ‘real income.’ All of these factors
favor greater home building.
“Older houses are increasing in these
310 cities, as a consequence of slow
home construction. Dwelling units in
these 310 cities, as of January 1, 1946,
approximated 15,087,045. Of this total
12.7 per cent or 1,914,635 dwelling units
were 15 years or less old, having been
built from January 1, 1930, to the first
day of this year. In other words, 87.3
per cent of all dwelling units in these
same 310 cities at the start of this year
were 15 or more years old.” # #

Broke the Habit
Son: “How did you and Mom first
get acquainted?”
Dad: “ None of your business—but
it sure cured me of whistling.”
Northwestern Banker, August, 1946










Assistant Vice President


Executive Vice President


T ru st O fficer


Vice President




Vice President


Assistant Cashier


Vice President


Assistant Cashier

Vice President


Assistant Trust Officer


Assistant Vice President


Assistant Trust Officer


Assistant Vice President


X a t io n a l


o j Om aha


Nort hwest ern Banker, August, 1946
Federal Reserve Bank of St. Louis



Attending Bankers School
J. Cronk, cashier of the Nebraska
State Bank in Ord, is in Madison, Wis­
consin, attending the Central States
School of Banking. The school, spon­
sored by state bankers associations of
14 midwest states, began July 25th and
runs until August 10th. Research
courses in banking, economics and
monetary problems are offered those
attending the school.

X eh rask a

David City


Lightning Strikes Bank
Raises Capital Account
The City National Bank of Crete,
Nebraska, has raised the capital ac­
counts from $90,547 on June 30, 1945,
to $98,765 as of June 29, 1946. Depos­
its have gone up over $552,000 in that
time and are now $2,298,679. Govern­
ment bonds in the amount of $414,000
have been purchased in the past year,
making a total holding of government
bonds $1,195,300.
John Rothmuller, who celebrated
his 75th birthday in May, has served
as president of the bank for the past
16 years. B. F. Aron, who has been
with the bank for four years, serves
in the capacity of vice president and
Directors are John Rothmuller, B. F.
Aron, Herbert G. Smith, Robert K.
Kuncl, John E. Mekota, John Smejkal
and Dr. F. J. Stejskal.

clerk. He served from January, 1942,
to August of the following year when
ill health forced his resignation.
Surviving are his wife, Helen, and
two daughters, Mary Lou and Joan

A. J. Denman
A. J. Denman, manager of the Amer­
ican Crystal Sugar Company, and for
more than 15 years a member of the
board of education in Grand Island,
Nebraska, died at his home after a
long illness. He was 65 years old.
A native of Grand Island, Mr. Den­
man was active in civic affairs. He
was a former president of the Chamber
of Commerce, and was president of
the Overland National Bank. In 1939
the American Legion gave him its
award as the city’s most distinguished

25 Year Employe Resigns
Anna F. Johnson, assistant cashier
at the First National Bank of West
Point, Nebraska, resigned her position
recently after serving faithfully and
efficiently for the past twenty-five and
one-half years.
The employes of the bank presented
Miss Johnson with a gift as a remem­
brance and appreciation of her serv­

James Pavlik
James Pavlik, former Saunders coun­
ty clerk, died recently at the Lincoln
Veterans Hospital following a linger­
ing illness. He was 48 years old.
Mr. Pavlik, a resident of Weston,
Nebraska, was employed at the Farm­
ers and Merchants Bank at Weston
and also the Weston Bank prior to
1942, when he was elected county

New Bank Opens
The North Loup Valley State Bank
opened for business July 1st, succeed­
ing the liquidating North Loup Coop­
erative Credit Association, State Bank­
ing Director J. F. Peters announced
last month.
President of the bank, which is capi­
talized at $32,500, is C. W. McClellan,
retired farmer. F. J. Schudel is vice
president and Ray Hill, cashier.
The North Loup Bank is the third
to be organized this year in Nebraska,
Mr. Peters stated. Two previous ones
were the Crofton State Bank at Crofton, which opened April 8th and has
just joined the FDIC, and the Springfield State Bank which opened Febru­
ary 23rd. Nebraska now has 284 state
banks in operation.


Lightning struck several places in
Beatrice during a late afternon thun­
derstorm last month.
The chimney of the First National
Bank Building was struck, scattering
bricks in the street. Some of the
bricks plummeted through the roof of
the Schroeder shop but there were no

Hanes Warns Banks
The RFC blanket guarantee of loans
being offered -by banks by the Recon­
struction Finance Corporation is a
“sugar coating of the socialization of
banking which if followed extensively
by banks can mean that eventually
the government will take over all
banking,” the 200 bankers attending
the annual Carolina Bankers Study
Conference at the University of North
Carolina were told by Robert M.
Hanes, chairman of the Small Business
Credit Commission of the American
Bankers Association, who is president
of the Wachovia Bank and Trust Com­
pany at Winston-Salem, North Caro­
lina. Mr. Hanes was president of the
A.B.A. in the year 1939-40.
“We regret that we do have some
riskless bankers who would avoid
their responsibility of taking ordinary
business risks and some who wish to
make more profit by carrying a larger
loan with the support of such a guar­
antee and get more interest than they
could otherwise,” he said. “ Such bank­
ers are letting themselves in for an­
other wave of criticism, I believe,
when our economy ceases its upward
movement and starts on the downward
trend again. When that happens, it
will be found that the RFC cannot in­
discriminately continue to guarantee
loans at a rate of three-fourths of 1
per cent or less which it receives for

D id you know that adoption of our Cash Letter
insurance enables you to dispense with detailed
Cash Letter transcripts and keep only a duplicate
adding machine tape? Ask us for details.

& Com pany

Insurance Counselors to Banks

Federal Reserve Bank of St. Louis







Nort hwest ern Banker, August, 1946


Nebraska News

its guarantee. Losses must follow in
a declining economy, and the taxpayer
will find that he will have to pay the
“ There is now considerable argu­
ment taking place between Secretary
of Commerce Henry Wallace and the
Reconstruction Finance Corporation,”
Mr. Hanes said, “as to which will do
the lending job for small business, and
each will probably try to outbid the
other in attempting to take charge of
this function. In the meantime, the
RFC is offering to banks an automatic
blanket guarantee up to 75 per cent
of the amount of loans made to busi­
ness. This blanket guarantee arrange­
ment is merely a sugar coating of the
socialization of banking. If the banks
follow this plan extensively, it can
mean that eventually the government
will take over all banking.”
Mr. Hanes told the audience that
banking had its own program for meet­
ing the credit needs of business and
small business particularly, and re­
minded it of the small business credit
program of the A.B.A. with its accent
on more modern credit practices, a
greater use of the correspondent bank­
ing system, and the network of credit
groups. The country is now blanketed
with 49 of these local area credit
groups with a total of $675,000,000 of
“We are determined that chartered

banking will do the postwar credit job
in the same creditable manner as it
financed both the government and
business during the war,” he declared.
“For some time there has been an
insistent demand on The part of certain
leaders in government to establish in
this country what is known as a con­
trolled or managed economy,” Mr.
Hanes added. “ This means govern­
ment operation of hanks, insurance
companies, and other financial insti­
tutions. If this is brought about, it
will mean that government will also
control all business, for business will
then have to go to the government for
its credit needs, and government will
dictate how business is to operate.
“ In the past, every time the sociali­
zation of a government has been ac­
complished, the first essential step was
to get control of the financial institu­
tions. It happened in Russia, in Ger­
many, in Italy, and in Spain. Now
England, with its socialist government
has embarked on the same course by
taking over the Bank of England and
threatening to take over the large
banks in that country.
“Here in the United States we have
been following this same pattern. We
now have 36 government agencies
making loans to farmers, businesses,
and individuals. We must work to
stop this socialization of our financial
institutions.” # #

L e t Us Help You
finance your excess requirements o f your live­
stock borrowers.
We have ample facilities and are glad to have the
opportunity o f helping you serve your customers.

F ir s t S t . >loso|»ii
S T O C K Y A R D S B .W K
South St. Joseph, Mo.
Frazer L. Ford, President
J. A. Greenfield, Vice President
M. E. Blanchard, Asst. Cashier
Thos. J. McCullough, Vice Pres, and Cashier
Louis J. Komer, Asst. Cashier


II/{O S”

Names Councilmen
Completion of the American In­
stitute of Banking organization of
associate councilmen to assist the
twelve executive councilmen in pro­
moting the work of the American In­
stitute of Banking in their various
territories is announced by George
J. Greenwood, Jr., newly elected na­
tional president of the Institute. Mr.
Greenwood is assistant manager of
The Bank of California National Asso­
ciation, Portland, Oregon. Each execu­
tive councilman has several states in
his jurisdiction and in each state in his
territory he has associate councilmen
working under him.
Councilmen in several middle west­
ern states are:
Iowa—W. A. Acuff, Iowa-Des Moines
National Bank & Trust Company, Des
Moines, Iowa; James R. Brown, IowaDes Moines National Bank & Trust
Company, Des Moines, Iowa.
Minnesota— James G. Goblisch, First
Grand Avenue State Bank, Saint Paul,
Minnesota; Emmett J. Erickson, Farm­
ers & Mechanics Savings Bank, Min­
neapolis, Minnesota.
Nebraska—Ted Thompson, National
Bank of Commerce, Lincoln, Nebraska;
Clarence F. Witt, The South Omaha
Savings Bank, Omaha, Nebraska.
North Dakota—A. A. Mayer, The Da­
kota National Bank, Bismarck, North
Dakota; A. O. McLellan, The Mer­
chants National Bank & Trust Com­
pany, Fargo, North Dakota.
South Dakota—S. H. Finger, The Na­
tional Bank of South Dakota, Huron,
South Dakota; Harold N. Thomson,
Farmers and Merchants Bank, Presho,
South Dakota.
Illinois—Guy R. Cheatham, The Cen­
tral National Bank & Trust Company,
Peoria, Illinois; Arthur E. Urick, Har­
ris Trust & Savings Bank, Chicago,
Indiana—Paul E. Jones, The Indiana
Trust Company, Indianapolis, Indiana;
Joseph J. Schuster, Gary National
Bank, Gary, Indiana.
Missouri—Hugh S. Hauck, The Boat­
men’s National Bank, St. Louis, Mis­
souri; William E. Oram, Jr., Mercan­
tile Home Bank & Trust Co., Kansas
City, Missouri.
Wisconsin—Wall G. Coapman, Wis­
consin Bankers Association, Milwau­
kee, Wisconsin; Anthony J. Deniger,
Marine National Exchange Bank, Mil­
waukee, Wisconsin.

Member Federal Deposit Insurance Corporation

Northwestern Banker, August, 1946
Federal Reserve Bank of St. Louis


Nebraska News


nesota. Mrs. Davis will stay until af­
ter the Labor Day holiday.
Mr. and Mrs. Wallace Spear and
daughter, Miss Sarah, returned re­
cently after a two weeks’ stay at Lake
Miltona. They were at the Minnesouri Angling Club. Miss Barbara
Spear preceded her family home. Mr.
Spear is trust officer of the First Na­
tional Bank of Omaha.

R OBERT H. STORZ, new president
of the Omaha Chamber of Com­
merce, recently called a meeting of
the board of directors to name a 24man committee to study Omaha’s city
and school financial muddle and to
make recommendations to the mayor
and city council.
On the committee are Dale Clark,
president, O m a h a National Bank;
James P. Ree, former banker and now
vice president of the Omaha & Coun­
cil Bluffs Street Railway Company;
Ellsworth Moser, executive vice presi­
dent, United States National Bank of
Omaha; E. F. Pettis, former banker
and now secretary-treasurer of the
Brandeis Store; Ray R. Ridge, vice
president, Omaha National Bank, and
Charles I). Saunders, vice president,
First National Bank of Omaha.
Because Uncle Sam was withdraw­
ing war loan deposits from Omaha
banks to make payments on the na­
tional debt, Omaha deposits were more
than $60,000,000 less than six months
ago when the comptroller of currency
called for figures as of June 29th.
Loans showed a decrease of nearly
$7,000,000 in the same six-months pe­
The total deposits of Omaha banks
were $430,834,850 at the close of busi­
ness June 29th, compared with depos­
its of $491,372,438 for December 31,

Loans totaled $58,229,431, compared
with $65,132,109 six months earlier.
Not all banks showed individually
a decrease in deposits and loans.
“We are witnessing the greatest in­
flationary trend in our history.” That
was what speakers told National Farm
Loan Association secretary-treasurers
from Iowa, Nebraska, South Dakota
and Wyoming at their first convention
since 1943. They met at the Fontenelle Hotel in Omaha.
They also heard the prediction that
farm land prices are likely to start
falling in a year or two.
President Edwin N. Van Horne of
the Federal Land Bank of Omaha
warned that “inflation will continue
because of the unfulfilled demand for
farm machinery, electrical equipment,
rails, nylons, new houses, furniture,
clothing, building materials—and the
prices people are eager to pay.”
The executive committee includes
P. M. Nelson, Cedar Falls, Iowa; F. W.
Ellerbrock, Iowa City, Iowa; Glenn R.
Pedersen, Odebolt, Iowa; V. L. Chris­
tensen, Harlan, Iowa; Anton Tresnak,
Dodge, Nebraska; E. R. Vorhees, Wauneta, Nebraska; L. S. Madson, Brook­
ings, South Dakota; and W. H. Barney,
Rapid City, South Dakota.
Mr. and Mrs. Thomas E. Davis re­
cently motored to their summer home
on Lake Miltona, at Alexandria, Min­

Alvin E. Johnson, president of the
Live Stock National Bank of Omaha,
is spending the summer at Lake Mil­
tona, Minnesota, to get a much needed
rest from his civic and business activi­
ties. Mrs. Johnson and a son, Alvin
W., are also at the lake.
James T. Wachob, 74, veteran Oma­
ha investment banker, died recently
at his apartment in the Blackstone
Hotel at Omaha. He was a former
partner in the Wachob Bender & Com­
pany investment banking house of
Omaha, which he organized in 1921.
He retired from active business in
J. B. Frazier, Jr., Omaha investment
banker, recently underwent an emer­
gency appendectomy. He is a navy
veteran of World War II, having
served as a lieutenant-commander in
the Pacific, after service in Iceland.
Charles I>. Saunders, vice president
of the First National Bank of Omaha,
was presented with a ship’s clock re­
cently when he retired as president of
the Omaha Chamber of Commerce.
The clock was given to him by the
chamber’s board of directors. In mak­
ing the presentation, Robert H. Storz,
new chamber president, said the clock,
encased in a miniature ship’s wheel,
typified Mr. Saunders’ service as a
“helmsman for the charted course fol­
lowed by Omaha during the past

P irst National
iBank ot Omaha
Federal Reserve Bank of St. Louis

Oldest National Bank. From Omaha West
Member Federal Deposit Insurance Corporation

Northwestern Banker, August, 1946


Nebraska News

former Omaha
banker, recently spent two weeks in
his former home town. He returned
in a Constellation plane to Santa Bar­
bara, California, his present home.
Mr. and Mrs. Yates are planning a
trip to South America in the autumn
to visit Mr. Yates’ brother, Farrar
Yates, another former Omahan, who
lives in Buenos Aires.



Mrs. Gordon D. Taft, wife of the
former Omaha investment banker
who is with the War Department in
Washington, spent the month of July
in Omaha with her parents, Dr. and
Mrs. John J. Foster.

then cared for 400 evacuees for two
Oscar H. Holquist of the First Na­
tional Bank of Omaha has been elected
treasurer of the Tribe of Yessir of
the Omaha Chamber of Commerce.
The group sponsors good will visits
to nearby towns.
Mrs. Victor Caldwell and her daugh­
ter, Miss Betty, left recently with Mr.
and Mrs. Casper Y. Oft'utt for Lake
Okoboji, Iowa, to spend a week at the
Offutt cottage. Mrs. Caldwell is the
wife of a vice president of the United
States National Bank of Omaha. # #

Wallace W. Keenan, trust officer of
the Live Stock National Bank of Oma­
ha, has purchased the Van Sant School
of Business in Omaha, which has been
owned and operated by Miss lone C.
Duffy since 1910. Mr. Keenan will
take over active management of the
A former FBI man and later an
instructor at Creighton University in
Omaha, Mr. Keenan plans more em­
phasis on business education for men
as part of the school’s curriculum.
Mrs. H. M. Bushnell, wife of the
president of the United States Na­
tional Bank of Omaha, and Mrs. Clar­
ence Landen were among the honor
guests at ground-breaking ceremonies
for the new Omaha Levee on the Mis­
souri River.
They were among six women who
directed operation of the Red Cross
canteen during the 1943 flood and fed
10,000 dike workers for three days,


Bought and Sold

Confidentially and with becoming dignity

40 Years Satisfactory Service


Bank as vice president and manager
ever since.
Mr. Maly started in the banking
business in 1904 as assistant cashier of
the First National Bank of Spalding,
Nebraska. In 1909 he became cashier

Retires from First National Bank

TANLEY MALY, who was in the

S banking business in Lincoln for 25
years, has retired from his position as
vice president of the First National
When Mr. Maly retired July 1st he
had been in the banking business in
Nebraska for 42 years.
In Lincoln Mr. Maly first was asso­
ciated with the old City National Bank
of Lincoln, which liquidated in 1926
when the City National Bank in Lin­
coln was formed. Mr. Maly was presi­
dent of this bank when it merged
with the First National Bank in 1928.
He had been with the First National

of the Cedar Rapids, Nebraska, Nation­
al Bank, and in 1910 he joined the
S. S. Hadley Company, bankers, where
he served as assistant cashier, cashier
and finally president.
He also owned a half interest in the
First State Bank of St. Edward, Ne­
braska. He was never active in serv­
ice in St. Edward, though he served
on the board of directors and as a vice
president. He sold this bank when he
came to Lincoln in 1921.
Since his retirement, Mr. Maly said,
he has “just been taking it easy.” He
retired under the First National’s pen­
sion plan.
Although eligible for retirement last
year, he stayed on for an additional
year because of the war.
In the opinion of Assistant Attorney

rfe T0 0 TLE-LACY
Many Tootle-Lacy correspondents follow the plan of reviewing their
problems in cooperation with us—often to mutual satisfaction.

Nor t h westet n Banker, August, 1946
Federal Reserve Bank of St. Louis

Nebraska News
General Vail, given to the department


A H A C ou n try Ittioli S u rr ey

of banking, a director of a bank can­
not function as such when all his
stock is jointly owned. Mr. Vail says
that the law very plainly states that
every director must own stock in his
own name and right.

were mailed
recently to between 11,000 and
12,000 banks with assets of $7% million
or less by the Government Bond Port­
folio Committee of the American Bank­
ers Association’s Country Bank Opera­
tion Commission in a nation-wide sur­
vey to provide data on government
bond holdings. Each participating
bank will be able to compare its own
bond holdings with the average of
other banks of its state in the same de­
posit category. All figures from banks
participating in the survey will be
held in strictest confidence and only
percentage figure averages will be
released for comparison purposes.
The questionnaire was accompanied
by a letter from Claude F. Pack, presi­
dent of the Home State Bank, Kansas
City, Kansas, who is chairman of the
Government Bond Portfolio Commit­
tee. Mr. Pack writes:


Loans made by Lincoln banks in­
creased more than two million dol­
lars during the first six months of 1946
as compared with figures for Decem­
ber 31, 1945. Total deposits to June
29, 1946, declined by a total of $7,998,797 as compared with the December,
1945, total.
Figures released in response to a
national bank call as of June 29, 1946,
reflecting the condition of business in
Lincoln were deceptive in their totals
for deposits, however, bank officials
explained, because the government
has been withdrawing large war loan
deposits to use for its expenses and to
reduce its bonded indebtedness. Actu­
ally, individual deposits have in­
creased greatly during 1945, they said.
Deposits in Lincoln’s three down­
town banks totaled $136,697,286 to
June 20th, with loans totaling $12,961,544. These compare with $144,696,073
in deposits on December 31, 1945, and
$10,833,608 in loans.

u e s t io n n a ir e s



“Bank deposits in this country have
increased nearly 95 billion dollars
since the war started, and in the same
time bank holdings of Government
securities have increased over 85
billion. The rate of growth of deposits
has been most rapid in rural areas.
Although total deposits of all banks
probably will not decline, important
regional shifts might easily take place,
and in the event of a serious drought
or decline in farm prices, shifts in
rural areas might be of considerable
significance. With the war over, the
above facts have special significance
because other important changes are
taking place in the banking structure.
Loans are increasing and there is a
growing belief that the continued de­
cline in interest rates is causing banks
gradually to move into longer maturi­
ties in their investment accounts.”
(Turn to page 61, please)

this bank

for Lincoln

service with the assurance of effi­
ciency and promptness.



o n t in e n t a l


a t io n a l

B ank

Member Federal Deposit Insurance Corporation
— and another nice thing is, you can have
immediate possession.












Federal Reserve Bank of St. Louis

M em ber Federal Deposit
Insurance Corporation

Northwestern Banker, August, 1946


Show n above is the O m aha Live Stock N ation al B ank’ s 24 H our Transit
D epartm ent. H ere, the clearin g and p rocessin g o f thousands o f transit item s
takes p la ce 24 hours a day.

Providing our correspondents with fast, efficient 24 hour transit service
is not a one-man s job by any means. In the transit department alone,
27 well-trained, dependable employees speed collection items and cash
letter transactions on their way night and day. Transit service plays
an important part in banking. Send your items where complete transit
facilities await your service— night and day!




F R I E N D l Y y j



Northwestern Banker, August, 1946
Federal Reserve Bank of St. Louis


I <» w a


New President Elected
The Farmers Savings Bank of Remsen, Iowa, held its annual meeting and
election of officers last month, the
stockholders electing a board of seven
directors. Joseph Ahmann was elected
president to fill the vacancy caused by
the death last spring of Bernard
Bohlke. Mr. Ahmann had been vice
president for many years.
Other officers elected were: J. P.
Schroeder and L. S. Homan, vice presi­
dents; Adolph Frasch, re-elected cash­
ier; and Jay J. DeLay and Filmore
Frasch, assistant cashiers. Mr. DeLay
recently returned to the bank after 26
months in the Army Air Forces, of
which time 10 months was spent on
Okinawa with the 8th Air Force.

Joins West Union Bank
Reid Giese, recently discharged from
the army as a captain, has joined the
staff of the First National Bank of
West Union, Iowa. Mr. Giese’s home
is in Good Thunder, Minnesota, and
prior to his army service he was em­
ployed in the Earlham Savings Bank,
Earlham, Iowa.

Claussen Elected President
At the annual meeting of the stock­
holders of the Farmers Savings Bank,
Ricketts, Iowa, last month, P. H. Claus­
sen was elected president. Mr. Claus­
sen had been cashier of the bank since
1909. August Meyer, who retired from
the presidency, was elected to the
board of directors. Milton Struck,
with the bank since 1936, was elected
cashier and Ruth Bielow was promoted
from the position of bookkeeper to
assistant cashier.

Des Moines

replaces W. H. Fobes who resigned his
position to go into business in Calmar,
Maxine L. Welch, stenographer of
the American National Bank, returned
to her home recently from Rochester,
Minnesota, where she underwent an
operation to set the bones which were
broken in her leg in a Memorial Day
accident. Miss Welch stepped in an
excavation and suffered severe breaks
in two bones above her ankle. Wanita
Ward, a recent Arlington high school
graduate, is taking Miss Welch’s place
until her injuries heal.

elected to fill his office. H. W. Bow­
ers is vice president and L. R. Bassett
is cashier.
All preferred stock was retired dur­
ing the past year, with the local share­
holders receiving a 100 per cent com­
mon stock dividend. Material earnings
were also added to the capital struc­
ture which is now near the $200,000

Gets Bank Office
After a lapse of fourteen years, Fort
Atkinson, Iowa, has banking service.
On July 15th the Citizens Savings
Bank of Spillville opened a bank office,
with Adolph A. Novak, Jr., as man­
ager and assistant cashier. Mr. Novak
is a brother of Roy V. Novak, cashier
of the Spillville Bank.
Fort Atkinson has not had banking
facilities since January, 1932. The new
office affords people of Fort Atkinson
territory every needed service.

Oscar Helgerson

Funeral services for Oscar Helger­
59, prominent Red Oak banker,
Plan to Remodel
The Nevada National Bank of Ne­ were held at the Bethlehem Lutheran
Church in Red Oak last month. He
vada, Iowa, has recently purchased
additional business footage, and plans died at his home after an illness of
to remodel its bank premises in the over a year.
Mr. Helgerson was born November
coming season of 1947. Additional
1887, at Beloit, Iowa.
lobby space is planned for the con­
As a young man he pioneered and
venience of its customers, new work
space for the clerical force, and a pri­ homesteaded in South Dakota and
later became affiliated with the bank­
vate room for the directors.
S. M. McHose, senior member of the ing profession in South Dakota, Mon­
board and president of the bank since tana and Iowa.
Following the bank failures of the
its organization in 1934, retired this
past winter and Col. H. E. Hadley was early 30’s, he served as a receiver of
the national banks of southwest Iowa.
He served as cashier of the National
Bank of Decorah, Iowa, for several
years. In 1936 he joined H. C. Hough­
ton, Jr., in the Houghton State Bank,
and later in the consolidation of the
Houghton State Bank with the First
National Bank of Red Oak. He served
the bank as a vice president.
Survivors include Mrs. Helgerson,
two sons, Robert of Ottumwa, and Aus­
tin T. of Oak Ridge, Tennessee, and a
sister, Mrs. John Skaris of Canton,
South Dakota.

Appointed Teller at Arlington

New Teller and Director

Lee B. Richards of Sioux Falls,
South Dakota, has accepted a position
as teller at the American National
Bank of Arlington, Iowa. Mr. Rich­
ards was recently discharged from the
army after 39 months service, 19
months of which were spent overseas
in the European theater. He is a
graduate of the University of South
Dakota and prior to his army service
was in the country newspaper busi­
ness in Iowa and South Dakota. He

Robert L. Gossard of Kasson, Minne­
sota, has accepted a position as book­
keeper and teller with the Alton Sav­
ings Bank of Alton, Iowa. Mr. Gos­
sard was a flight instructor on a B-29
in the Pacific theater, and received his
discharge in May of this year.
Dr. D. J. Gleysteen, for many years
a director of the Alton Savings Bank,
passed away recently. His successor
as director is M. C. Muilenburg, local
Federal Reserve Bank of St. Louis

John P. Hainer, vice president of the
First National Bank in Sioux City, died
last month. Mr. Hainer had been ill since
last November.

Northwestern Banker, August, 1946


Iowa News

J. Floyd Rich Retires
Retirement of J. Floyd Rich, vice
president and a director of the State
Bank of Fort Dodge, Iowa, was an­
nounced last month.
Mr. Rich has been identified with
Fort Dodge banking for nearly 50
years, and in point of service is dean
of the city’s bank officials.
He entered the business as a young
man and has been continuously asso­
ciated with Fort Dodge banks since.
He was an official of the First National
Bank and of the First State Bank and
Trust Company before the organiza­
tion of the State Bank.
Mr. Rich will continue to make his
home in Fort Dodge.

B. O. Ball Resigns
Barney O. Ball has resigned as cash­
ier of the West Burlington Savings
Bank of West Burlington, Iowa, be­
cause of ill health and a desire to
retire from active bank service, but
will continue as a member of the
board of directors.
L. Roy Trout, executive vice presi­
dent of the bank for the last five years,
has been appointed vice president and
cashier by the directors.
Mr. Ball had been cashier of the
bank since September 2, 1930, and was
in the banking business 15 years prior
to that time. He has been active in
church circles and is a member of the

DAN, who recently resigned as cashier of
the Muscatine Bank and Trust Company
o f Muscatine, Iowa, to accept the office o f
executive vice president of the New
American Bank o f Oshkosh, Wisconsin.
His successor is F. Warren Allen, associated
with the bank since 1917 and assistant
cashier since 1924.

Service That Fits
Our goal is to give full and attentive service
to our correspondent accounts. Our moderate

Burlington Kiwanis Club and Masonic
Lodge No. 1.

size guarantees the close, personal relation­
ship that you need.

Named Assistant Cashier
L. O. Schoenthal, assistant cashier
and in charge of farm management for
the Whitney Loan & Trust Company
of Atlantic, Iowa, the last two years,
was elected cashier of the bank at the
annual meeting last month.
Officers re-elected at the annual meet­
ing were: James G. Whitney, presi­
dent; O. A. Otto, vice president, and
Paul G. Sandhorst, Hugh Allen and
Charles McCauley, assistant cashiers.
Directors of the bank are: Mr. Whit­
ney, Mr. Otto, H. A. Marshall, Fred R.
Long, L. L. Balding, E. C. Schelm and
Earl Hawes.

May we assist you in your correspondent
needs in Sioux City?
A. G. Sam, President
Fritz Fritzson, Vice Pres, and Cashier
E. A. Johnson, Assistant Cashier
J. T. Grant, Vice President
H. H. Strifert, Assistant Cashier
J. R. Graning, Assistant Cashier
R. E. Gleeson, Assistant Cashier
W. F. Cook, Auditor

Joins Red Oak Bank
Wendell E. Strom has been elected
cashier of the Montgomery County Na­
tional Bank of Red Oak, Iowa.
Announcement was made by Presi­
dent George W. Artherholt that Mr.
Strom was joining the bank.
A graduate of Carleton College and
the University of Iowa School of Law,
Mr. Strom was special agent with the
FBI three years before entering the
navy. He was in the Pacific theater
three years and was discharged as a





/ ft

Nort hwest ern Banker, August, 1946
Federal Reserve Bank of St. Louis

S / O U X


/ 'f l f




Celebrates 50th year
The Iowa Trust and Savings Bank
observed its 50th anniversary last
month, marking a half century of



Years o f


Specialized Experience
Federal Reserve Bank of St. Louis


HIS B A N K has been closely identified with the live
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This is only one o f our many services used by bankers
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Northwestern Banker, August, 1946


Iowa News

service to Centerville, Iowa, and terri­
Founded the 13th day of July, 1896,
by William Bradley, Sr., the Iowa
Trust and Savings Bank has grown
throughout the years and stands today
as a sound banking institution.
Started with a capital stock of $50,000, it now has a capital stock of $50,000, surplus of $50,000, undivided prof­
its of $35,836 and reserve of $50,000.
In addition it has deposits as of July
1, 1946, of $3,387,412.
The presidency of the bank passed
in its infancy from William Bradley,
Sr., to J. A. Bradley, his son. From
that time until J. A.’s death in June
of 1933, he maintained a guiding con­
trol. He gave his banks, of which the
Iowa Trust and Savings was only one,
his undivided attention for he believed
in sound and careful management.
After his death, W. O. Steele became
president, and upon Mr. Steele’s death
John Young assumed the presidency.
Mr. Young has been identified with the
Iowa Trust and Savings Bank since
August 1, 1937.

Elected Assistant Cashier
At a recent meeting of the board of
directors of the Farmers Savings Bank
of North English, Iowa, Robert W.
Davisson was elected assistant cashier.
Mr. Davisson worked at the Farmers
Savings Bank for four years before
entering the service. He served in the
army for three years, and upon dis­
charge returned to his work at the

Opening Branch in Waucoma
The Iowa State Banking Department
has approved the application of the
State Bank of Lawler, Iowa, to open
a branch bank in Waucoma. This
branch will be managed by Eugene J.
Timlin, who has been active in the
Lawler Bank since the control of that
institution was taken over by Vincent
and Ed Kelly and others.

Named Bank Director
Walter A. Ruehlman, president of
E. M. Peet Manufacturing Company,
was elected to the board of directors
of the City National Bank of Council
Bluffs, Iowa.
Mr. Ruehlman’s appointment was
made to fill a vacancy created by the
resignation of Herman Krasne, who
will reside in California.
Mr. Ruehlman was named at a regu­
lar meeting of the directors, according
to R. W. Turner, president.

Heads Johnson
County Bankers

Bank, tendered his resignation at the
bank recently.
Ailing health was
given as his reason for leaving the

Advanced From Auditor
Charles E. Krejci has been named
assistant cashier of the Peoples Sav­
ings Bank of Cedar Rapids, Iowa. Mr.
Krejci, who has been an employe of
the bank for 19 years, served as audi­
tor the last two years. Before that
he was a teller.

Announces Two Promotions

Senator LeRoy S. Mercer, vice presi­
dent of the Hills Bank and Trust Com­
pany of Hills, Iowa, was elected
president of the Johnson County Bank­
ers Association at a recent meeting of
the organization at the Hotel Jefferson
in Iowa City. He succeeds Charles
Koss, cashier of the Swisher Trust and
Savings Bank of Swisher.
W. W. Summerwill, vice president
of the Iowa State Bank and Trust Com­
pany of Iowa City, was elected vice
president of the association.
O. E. Markitan, cashier of the Solon
State Bank of Solon, was named treas­
urer, and Elmer Ulch, assistant cash­
ier of the Swisher Trust and Savings
Bank, was named secretary.

Takes Cashier Position
Henry C. Overbeck took over last
month as the new cashier of the Iowa
Falls State Bank, Iowa Falls, Iowa.
He goes to Iowa Falls from Fort Col­
lins, Colorado, where he has, for the
last nine years, been manager of the
installment loan department.
Born in eastern Nebraska, Mr. Over­
beck has been engaged in the banking
business for nearly 20 years.

Resigns Cashier Post
Henry Dye, who went to Rock Val­
ley, Iowa, in October, 1943, to fill the
position of cashier at the Valley State

Promotions of Edward J. Sattler and
Wilfred L. Buck to positions of assist­
ant cashiers at Woodbury County Sav­
ings Bank of Sioux City, Iowa, have
been announced.
Mr. Sattler spent two and one-half
years in military service, of which
nearly two years were spent overseas
in the European theater. He has had
wide experience in real estate apprais­
al and mortgage lending and will con­
tinue his work in the real estate mort­
gage department.
Mr. Buck was graduated from Cen­
tral high school and began as a mes­
senger boy for Woodbury County Sav­
ings Bank in August, 1935. He ad­
vanced from messenger to bookkeeper
and then to teller. He had three years
of military service, spending two years
in the European theater.

Re-elect All Officers
William Zunkel was re-elected execu­
tive vice president and cashier of the
Palo Alto County State Bank of Emmetsburg, Iowa, at the annual stock­
holders meeting recently.
W. H. Brenton of Des Moines was
re-elected president and George Kelley
of Dallas Center was re-elected vice
president. Other officers are Miss Flor­
ence Berdin, William Degnan and
Severt Swanson, assistant cashiers.
W. J. Degnan remains manager of
the bank’s Mallard office. Mr. Swan-

M r. Banker:


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Box 603, 206 Plymouth Bldg.

You Should Have It!
Northwestern Banker, August, 1946
Federal Reserve Bank of St. Louis

Des Moines 9, Iowa
H o m e O ffic e — S t. L o u is

Iowa News
son is manager of the bank’s Ayrshire


Joe T. Grant, for seven years assist­
ant cashier at the First National Bank
of Sioux City, Iowa, was elevated to
the vice presidency of the bank at a
meeting of the board of trustees.
Mr. Grant’s banking experience be-


five members, Mr. Ide, H. F. Harsh,
A. E. Jensen, G. D. Newcomb and Mr.
The First National Bank is one of
the oldest banks in Iowa and is ob­
serving its Diamond Anniversary this
year, having been organized in 1871,
75 years ago.
A. E. Jensen is president and G. R.
Heflin, cashier.

will be an entrance through the bank
lobby as well as from the street. Sev­
eral of the upper floors of the building
will be used for banking purposes.

Menzer Named Director
According to an announcement made
last month by Frank A. Ide, chairman
of the board of directors of The First
National Bank in Creston, Iowa, N. I.
Menzer was elected director of the
bank at their meeting to fill the va­
cancy caused through the death of
Bert Tallman last May.
Mr. Menzer had previously served
on the bank board during the period
1929 to 1933. The board consists of

W e W on d er
The best 10 years of a woman’s life
are from 28 to 30.

A s o f June 2 9 , 1 9 4 6


j . r . G R AN T
Newly Elected Vice President

gan with the Farmers National Bank
of Clay, Kentucky, where he served in
various capacities for seven years. He
then moved to the Merchandise Na­
tional Bank of Chicago, Illinois, where
he stayed two years.
He went to Sioux City in May, 1937,
as auditor for the First National Bank.
Shortly after he was named assistant
cashier. Mr. Grant has had wide expe­
rience in installment loan and real es­
tate financing.
Born in Clay, Kentucky, Mr. Grant
is married and has two children.

C ash an d D u e f r o m B a n k s ---------------------------------------------- .$


D is c o u n t s --------------------------------------------------------

U . S . G o v e r n m e n t S e c u r it ie s -------------------------------------------S ta te , C o u n ty an d

M u n ic ip a l S e c u r it ie s ------------------

O t h e r B o n d s ______________________________________________
S to c k in F e d e ra l R e s e r v e B a n k ---------------------------------O v e r d r a f t s _________________________________________________
F u r n itu r e a n d F ix t u r e s ---------------------------------------------------A c c r u e d In te re st R e c e iv a b le ------------------------------------------


C a p ita l S to c k — C o m m o n -----------------------------------------------

Named Grand Treasurer
Milton E. Lehning, cashier at the
Iowa State Bank, Fort Madison, Iowa,
was named grand treasurer of the
Iowa Knights Templar following his
election by delegates attending the
82nd annual conclave at Templar Park,
Spirit Lake, Iowa.

Opening Loan Department
The First Trust and Savings Bank
of Davenport, Iowa, has taken over the
building adjoining the bank on the
west side and will operate a small loan
department on the main floor. R. O.
Byerrum, executive vice president,
said they expect to have the depart­
ment opened by August 15th. There
Federal Reserve Bank of St. Louis


S u r p lu s

-------------------------------------------------------------- -----------------

U n d iv id e d

P r o f i t s ------------------------------------------------------------

R e se r v e f o r T a x e s , In te r e s t, e t c .------------------------------In te re st C o lle c te d b u t n o t E a r n e d -----------------------------D e p o s i t s ____________________________________________________


_ 22,342,473.25


James M. Graham...... Chairman
Chas. S. McKinstry. . . .President
R. L. P e n n e ........................ Vice Pres.

A. J. Burk....
H . F. Hoffer. .
R. L. Kilgore..


.Assistant Cashier
.Assistant Cashier

Member Federal Reserve System
Member Federal Deposit Insurance Corporation

Northwestern Banker, August, 1946

Iowa News


tie s M o in e s \o u \s
Mr. and Mrs. John de Jong left New
York by plane last month for a sixweek visit to Amsterdam, Holland.
Mr. de Jong, vice president of the
Iowa-Des Moines National Bank and
Trust Company, is visiting there with
two sisters and one brother and their
families. They are Mr. and Mrs. Rich­
ard de Jong, Dr. and Mrs. Jan Scholtede Jong and Mr. and Mrs. Herman de

Richard de Jong, whose home is in
Batavia, Java, East Indies, visited his
brother in Des Moines in 1940. The de
Jong’s intend to return to the United
States by plane some time in Septem­
Winfield Scott, senior vice president
of the Valley Bank and Trust Com­
pany, and Mrs. Scott celebrated their
25th wedding anniversary last month.

The June 29th bank call shows Des
Moines banks had total deposits of
$279,985,000 — a $10,000,000 increase





automobile and fire insur­
Special bank service and
attractive proposition for
banker agents.

over June, 1945. Loan figures, spurred
by industrial loans, went up from
$49,539,760 to $65,448,076 in the same
Bank clearings the first week in July
set a new high for any one week in
1946, due partially to the expansion in
business at higher prices after removal
of OPA controls. The figure hit more
than $14,000,000,000.
Another new high in Des Moines
was set during the first six months
when check transactions totaled $1,340,243,000. This shows an increase
over the first six months in 1945, pre­
vious record six months, of more than
J. R. Astley, vice president of the
Valley Bank and Trust Company, and
Mrs. Astley spent their vacation at
Lake Okoboji last month.

The Iowa State Bank has established
a G. I. loan department, with M. J.
Dwigans, assistant cashier, in charge.
Assisting him are Harold Grimes, who
joined the bank recently after receiv­
ing his discharge from the service, and
Doris Olson, secretary.
A d isp la y o f m ore than 2,000 co in
banks o w n e d b y Clarence Simmons
o f the Iow a State Bank will be shown
in a corner display w indow o f Y o u n kers Department Store in Des M oines
fro m Sunday, September 8th, through
Tuesday, September 9th, in connection
with the annual convention o f the
Towa Bankers A ssociation. M r. Sim ­
mons has been collecting the banks
fo r many years and is still adding to
his collection.

year. The former Debate and Public
Speaking committee is this year di­
vided into two separate committees;
also, the former Membership and Pub­
licity committee now becomes the
Membership and Enrollment commit­
tee, and a separate Publicity commit­
tee has been formed. The members
of the committees are as follows:
Debate Committee—E. Francis De
Vos, Federal Reserve Bank of St.
Louis, St. Louis, Missouri, chairman;
Thomas J. Brennan, Jr., Federal Trust
Company, Newark, New Jersey; Ar­
thur Deckelmann, First National
Bank in Spokane, Spokane, Washing­
ton; John F. Elsbree, Webster and
Atlas National Bank of Boston, Boston,
Massachusetts; Douglas C. Giles, The
Manufacturers National Bank of De­
troit, Detroit, Michigan; Ronald B.
Harrison, The Marquette National
Bank of Minneapolis, Minneapolis,
Minnesota; J. Morris Howard, Jr., The
First National Bank, Newport News,
Virginia; Raymond F. Moore, Twen­
tieth Avenue-Irving Office, American
Trust Company, San Francisco, Cali­
fornia; C. Russell Moore, Pittsburgh
Branch, Federal Reserve Bank of
Cleveland, Pittsburgh, Pennsylvania;
Vic J. Passera, Jr., Louisiana Savings
Bank & Trust Co., New Orleans, Louis­
iana; Bruce Percy, Genesee Valley
Trust Company, Rochester, New York;

Greenwood Announces A.LB,
Committee Appointments


Mt. Pleasant, Iowa
E. A. HAYES, President
O, T. WILSON, Secretary
Established 1929

The completion of appointments to
seven national committees of the
American Institute of Banking, edu­
cational section of the American
Bankers Association, was announced
last month by George J. Greenwood,
Jr., newly elected national president
of the Institute. Mr. Greenwood, who
is assistant manager of The Bank of
California National Association, Port­
land, Oregon, disclosed that two new
committees have been created this


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M ain tain in g an intim ate,
personalized correspondent
bank service.

Officials with years of serv­
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knowledge of requirements
and valuable assistance.

To cooperate with out-oftown banks ra th e r than
compete for business which
is rightfully theirs.

C 7 7 fe

p u b l ic
GUARANTY TRUST COMPANY of New York last month opened a branch
office in Rockefeller Center at 40 Rockefeller Plaza. It brings to three the
branches of Guaranty in New York City. A view of the main banking floor,
looking from the entrance, is pictured above. The office is under the general
supervision o f Alfred C. Howell, vice president, as are the other New York City
branches. Other officers o f the new branch are: Robert W. Stephens, second vice
president; John R. Currier, John F. Gately, Reidar E. Gundersen and Lawrence M.
Pritchard, assistant treasurers; Kenneth S. Stocker, assistant trust officer, and
Alfred W. G. Spindler, assistant secretary. William M. Stevenson, assistant
treasurer, will be in charge o f the branch of Guaranty Safe Deposit Company.


E S T A B L IS H E D 1908

Howard S. Starks, The Citizens and
Southern National Bank, Atlanta,
Georgia; Charles F. Straka, Marine
National Bank of Chicago, Chicago,
Forum and Seminar Committee—
John H. Duerk, Howard Savings In­
stitution, Newark, New Jersey, chair­
man; Fred G. Brittle, Jr., The Bank of
Virginia, Richmond, Virginia; George
Clark, The Farmers and Merchants
National Bank of Los Angeles, Los
Angeles, California; Winston G. Ettling, Mercantile-Commerce Bank &
Trust Co., St. Louis, Missouri; S. Oram
Farrand, Verona Trust Company, Ve­
rona, New Jersey; Postell Hebert,
Union Planters National Bank & Trust
Co., Memphis, Tennessee; Ralph E.
Kenner, Lincoln National Bank and
Trust Company, Fort Wayne, Indiana;
M. C. Miranne, City Bank Branch,
Whitney National Bank of New Or­
leans, New Orleans, Louisiana; Ethel
F. Roberts, State Street Trust Com­
pany, Boston, Massachusetts; Roy L.
Robeson, Manufacturers and Traders
Trust Company, Buffalo, New York;
J. Ralph Wagner, National Bank of
Wyandotte, Wyandotte, Michigan; S.
O. Washburn, National Bank of Wash­
ington, Tacoma, Washington; Roy
Zimmerman, Security-Peoples Trust
Company, Erie, Pennsylvania.
Membership and Enrollment Com­
mittee—C. Edward Berryman, The
Marine Trust Company of Buffalo,
Buffalo, New York, chairman; Walter
E. Batts, Branch Banking & Trust
Federal Reserve Bank of St. Louis

Company, Wilson, North Carolina; L.
Eston Davis, American Trust Com­
pany, Oakland, California; Ivan F.
Dudding, The Kanawha Valley Bank,
Charleston, AVest Virginia; T. Robert
Faragher, Dexter and Broad Street
Branch, Peoples National Bank of
Washington, S e a t t l e , Washington;
James G. Goblisch, First Grand Ave­
nue State Bank, St. Paul, Minnesota;
Theo L. Karau, Echo Park-Sunset
Boulevard Branch, Citizens National
Trust & Savings Bank of Los Angeles,
Los Angeles, California; Theodore L.
Klein, The First National Bank of
Philadelphia, Philadelphia, Pennsyl­
vania; John Maples, Jr., Birmingham
Trust & Savings Co., Birmingham, Ala­
bama; Earl Menz, American State
Bank, Milwaukee, Wisconsin; Ruth
Miller, The Bank of Akron, Akron,
Ohio; Mrs. Margaret Murray, Union
Bank & Trust Co. of Fort Worth, Fort
Worth, Texas; Wilbert T. Roberts,
The Oneida National Bank and Trust
Co. of Utica, Utica, New York; Charles
E. Van Dine, The American Bank &
Trust Co., New Haven, Connecticut.
Publicity Committee — Kathryn C.
O’Connor, Putnam & Co., Hartford,
Connecticut, chairman; John R. Abernethy, The National Bank of Charleroi
and Trust Co., Charleroi, Pennsylvania;
Otto W. Beaman, Federal Reserve
Bank of Kansas City, Kansas City,
Missouri; Miss Leslie Braziel, Wacho­
via Bank and Trust Company, Wins­
ton-Salem, North Carolina; Dair Da­
vidson, Bank of America National



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<7/te C. L. D O W N EY Gomfu^uf.
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CcU et W la fifM A i

Northwestern Banker, August, 1946


___________________O M A H A

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Trust and Savings Association, Sacra­
mento, California; William V. O.
French, The Baraboo National Bank,
Baraboo, Wisconsin; Gilbert S. Goshorn, The Florida National Bank of
Jacksonville, Jacksonville, Florida; L.
A. Laberge, The National Bank of
Commerce and Trust Company of
Providence, Providence, Rhode Island;
Laurine Lees, Portland Trust and
Savings Bank, Portland, Oregon; Jo­
seph S. Maddlone, The First National
Bank of Merrick, Merrick, New York;
Nell O’Connell, Hillcrest State Bank,
Dallas, Texas; Louis R. Sabo, Cincin­
nati Branch, Federal Reserve Bank of
Cleveland, Cincinnati, Ohio; Elizabeth
Bruen, National Newark & Essex
Banking Company, 744 Broad Street,
Newark, New Jersey.
Public Relations Committee—D. C.
Armanino, American Trust Company,
San Francisco, California, chairman;
Edward H. Fowler, The First National
Bank & Trust Company of New Haven,
New Haven, Connecticut; W. R. Gay,
Commercial National Bank in Shreve­
port, Shreveport, Louisiana; Harry
Goodfriend, The Anglo California Na­
tional Bank of San Francisco, San
Francisco, California; W. Albert Hess,
The Bank of Virginia, Norfolk, Vir­
ginia; Winfield T. Irwin, The First Na­
tional Bank of Philadelphia, Philadel­
phia, Pennsylvania; John Kossin, Pitts­
burgh Branch, Federal Reserve Bank
of Cleveland, Pittsburgh, Pennsylva­
nia.' H. C. NLholls, The First National
Bank, Madison, Wisconsin; Edward
D. Rhame, The Amsterdam City Na­
tional Bank, Amsterdam, New York;
Sumner G. Sinclair, Northwestern Na­
tional Bank of Minneapolis, Minneapo­
lis, Minnesota; A. M. Sommers, Union
Planters National Bank & Trust Com­
pany, Memphis, Tennessee; H. R. Zim­
merman, Citizens Branch, The United
States National Bank of Portland,
Portland, Oregon.
Public Speaking Committee—Roland
Bratton, The Fort Worth National
Bank, Fort Worth, Texas, chairman;
Louis Barta, Live Stock National
Bank, Omaha, Nebraska; LeRoy S.
Clark, The Marine Midland Trust Com­
pany of New York, New York, New
York; Clarence A. Davis, Common­
wealth Bank, Detroit, Michigan; C.
Gordon Dodd, The Pacific National
Bank of Seattle, Seattle, Washington;
Charles W. Fellows, Federal Reserve
Bank of Richmond, Richmond, Vir­
ginia; Robert S. Gillespie, Providence
Institution for Savings, Providence,
Plan to use an advertising program of
well worded messages created by
W essling Services, D es Moines, Iowa

P u b l i c

R e l a t i o n s

D . R . W E S S L IN G . P R E S ID E N T

Yl'joinei 9,
Northwestern Banker, August, 1946
Federal Reserve Bank of St. Louis


Rhode Island; Stetson B. Harman,
First Trust and Savings Bank of Pasa­
dena, Pasadena, California; H. J. Nel­
son, Federal Reserve Bank of Philadel­
Arthur A. Rauterberg, Jr., First Wis­
consin National Bank, Milwaukee, Wis­
consin; T. M. Reinhart, Prichard
National Bank, Prichard, Alabama;
Clifford F. Tuttle, First National Bank
in Houston, Houston, Texas; Elmer W.
Warren, The First National Bank of
Gettysburg, Gettysburg, Pennsylvania.
Women’s Committee—Alice I. Jones,
Third National Bank and Trust Com­
pany, Scranton, Pennsylvania, chair­
man; Mrs. Gudrun M. Baker, Seattle
Trust and Savings Bank, Seattle,
Washington; Evelyn Blough, United
States National Bank in Johnstown,
Johnstown, Pennsylvania; Betty Car­
ter, The Fourth National Bank in
Wichita, Wichita, Kansas; Eleanor D.
Connors, The Seamen’s Bank for Sav­
ings in the City of New York, New
York, New York; Margaret Gaughran,
The Hibernia Savings and Loan So­
ciety, San Francisco, California; Mrs.
Louise Howington, First National
Bank, Atlanta, Georgia; Eleanore Jacod, Peoples Trust Company of Ber­
gen County, Hackensack, New Jersey;
Mrs. Ruth G. Karkalits, Continental
National Bank of Fort Worth, Fort
Worth, Texas; Martha R. Lerch, Com­
mercial National Bank, Charlotte,
North Carolina; Mrs. E. Kay Madden,
Seattle-First National Bank, Seattle,
Washington; Eleanore J. Madson, Con­
tinental Illinois National Bank and
Trust Company of Chicago, Chicago,
Illinois; Daisy M. Powell, The Fifth
Third Union Trust Company, Cincin­
nati, Ohio; Doris Tucker, Phoenix
State Bank and Trust Company, Hart­
ford, Connecticut; Mrs. Dorothea B.
Wilkes, Crenshaw & Santa Barbara
Branch, Security-First National Bank
of Los Angeles, Los Angeles, Califor­
In addition to the national commit­
tees there are six committees in the
executive council. The personnel of
these committees is as follows:
Budget Committee—David T. Scott,
The First National Bank of Boston,
B o s t o n , Massachusetts, chairman;
George J. Greenwood, Jr., The Bank
of California National Association,
Portland, Oregon; Garnett A. Carter,
The Fulton National Bank, Atlanta,
Educational Advisory Committee—
Herbert E. Widenhofer, Fort Wayne
National Bank, Fort Wayne, Indiana,
chairman; J. Vincent O’Neill, The Na­
tional City Bank of New York, New
York, New York; Christian Ries, Fed­
eral Reserve Bank of Minneapolis,
Minneapolis, Minnesota.
Nominating Committee—Edward C.

ties has most significance when related
to such items as capital accounts, cash,
or total resources. When the returns
are in and tabulated, we will send you
a copy of the results in a form that
will be just as illuminating and helpful
to you as possible . . . The information
we are seeking is of tremendous inter­
est to every country bank, but only
through the cooperative effort of these
banks is it possible to find out what
is taking place. Your cooperation in
giving us these figures for your bank
should prive to be of mutual benefit.”

AUGUST, 1946

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 ........... 36
A m e r i c a n N a t io n a l B a n k an d T r u s t Co. 38

B a n k o f A m e r i c a ............................................. 27
B a n k e r s T r u s t C o m p a n y — D es M o i n e s . . 63
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 . . . 25

An excellent interpretation of both
Spanish fiesta and the meat shortage.


Boyer, The National Bank of Com­
merce in New Orleans, New Orleans,
Louisiana, chairman; J. Kaye Ewart,
National Bank of Washington, Ta­
coma, Washington; C l a r e n c e W.
Brown, American Trust Company,
Sacramento, California.
Chapter Administration Committee
—W. Howard Martie, Farmers Depos­
it National Bank, Pittsburgh, Penn­
sylvania; Hartwell F. Taylor, The
Bank of Virginia, Richmond, Virginia;
Alton P. Barr, Security Savings Bank,
Birmingham, Alabama.
Program Committee — Garnett A.
Carter, The Fulton National Bank, At­
lanta, Georgia, chairman; Floyd W.
Larson, secretary, American Institute
of Banking, New York, New York.
Transportation Committee—Howard
R. Chamberlain, Union Trust Company
of Rochester, Rochester, New York,
chairman; H. Waldo Graff, Trinity
State Bank, Fort Worth, Texas; Walter
D. Behnke, Old Kent State Bank,
Grand Rapids, Michigan. # #

Bank Survey
(Continued from page 51)
Mr. Pack points out that banks
holding large amounts of bonds with
long maturities may find a certain
concentration of risk in large deposit
accounts. “ It is this situation,” he
writes, “that prompts the Country
Bank Operations Commission to pre­
pare and distribute to country banks
information as to what changes are
actually taking place in investment
policies of country banks. In order
that you may receive the benefits of
this study we are asking for your co­
operation in giving us a statement of
your Government bond maturities as
of the call date—June 30, 1946—and
also the items for your bank shown at
the bottom of this attached form.
Naturally, the volume of long maturi­
Federal Reserve Bank of St. Louis

Way down in Georgia a traveling
man found himself stranded for the
night and in his rambles around town
noticed there were two Baptist church­
es. He asked a colored man why there
should be two churches of the same
“Well, boss, Ah’ll tell you,” said the
informant. “Dey jus’ can’t agree. One
of de churches believes dat Pharaoh’s
daughtah found Moses in de bulrush­
es. De odah church claims dat’s what
she sez!”
He Had 'Em All
It seems the gate broke down be­
tween heaven and hell. St. Peter ap­
peared at the broken part and called
out to the devil, “ Hi, Satan, it’s your
turn to fix it this time.”
“ Sorry,” replied the boss of the land
beyond the Styx, “my men are too busy
to go about fixing a mere gate.”
“Well, then,” grumbled St. Peter,
“ I’ll have to sue you for breaking our
“Oh, yeah,” said the devil, “where
are you going to get a lawyer?”

C entral N ational Bank and Trust C o ...
C e n t r a l S ta te s M u t u a l I n s u r a n c e A s s n ..
C h a se N a t io n a l B a n k ......................................
C it y N a t i o n a l B a n k an d T r u s t
C o m p a n y — C h i c a g o ....................................
C o n t i n e n t a l B a n k an d T r u s t C o m p a n y . .
C o n t i n e n t a l N a t io n a l B a n k — L i n c o l n . . .



D a v e n p o r t , F. E. C o m p a n y ....................... 48-60
D e L u x e C h e c k P r in t e r s , I n c ........................ 34
D e s M o in e s B u i l d i n g L o a n an d S a v i n g s
A s s o c i a t i o n ...................................................... 60
D o a n e A g r i c u l t u r a l S e r v i c e ......................... 56
D o w n e y , C. L. C o m p a n y ............................... 59
D r o v e r s N a t io n a l B a n k ................................. 24

F e d e r a l I n t e r m e d i a t e C r e d it B a n k s . . . . 33
F i n a n c i a l A d v e r t i s e r s A s s o c i a t i o n ........... 30
F i r s t N a t i o n a l B a n k — C h i c a g o ............. 22
F i r s t N a t io n a l B a n k — O m a h a ............... 49
F i r s t N a t io n a l B a n k — S i o u x C i t y .............. 54
F i r s t St. J o s e p h S t o c k Y a r d s B a n k —
S o u t h St. Josep h , M o ................................... 48
F i r s t W i s c o n s i n N a t io n a l B a n k ................ 29

H a m m e r m i l l P a p e r C o m p a n y ....................
H o m e I n s u r a n c e C o m p a n y ...........................



I n v e s t o r s S y n d i c a t e ................................... 34
I o w a - D e s M o in e s N a t i o n a l B a n k ......... 64
I r v i n g T r u s t C o m p a n y .................................... 23

J a m i e s o n an d C o m p a n y .................................. 32

K l i p t o L o o s e L e a f C o m p a n y ......................
K o c h B r o t h e r s ...................................................


L a M o n t e , G e o r g e an d S o n ......................
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 ........... 60
L i v e S t o c k N a t i o n a l B a n k — C h i c a g o . . . 55
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 . . . . 52
L i v e S t o c k N a t i o n a l B a n k — S i o u x C it y 42


10, Regional
American Institute of Banking,
Lincoln, Nebraska.
September 9-11, Iowa Annual Conven­
tion, Des Moines, Hotel Fort Des
September 22-25, A. B. A. Annual Con­
vention, Chicago, Hotel Stevens.
September 30-October 2, Mortgage
Bankers Association of America,
Annual Convention, Cincinnati,
Netherlands-Plaza Hotel.
October 7-10, Financial Advertisers
Annual Convention, San Fran­
October 11-12, Nebraska Annual Con­
vention, Lincoln, Hotel Cornhusker.
October 21-23, National Association of
Bank Auditors and Comptrollers,
Oklahoma City.
November 7-8, Mid-Continent Trust
Conference, Chicago, Drake Hotel.

M e r c h a n t s M u t u a l B o n d i n g C o m p a n y . . 36
M e r c h a n t s N a t io 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 n ... 37

N a t i o n a l B a n k o f W a t e r l o o ...............
N a t io n a l C ash R e g i s t e r C o m p a n y ......
N e w Y o r k T r u s t C o m p a n y ...................... 44
N o r t h e r n T r u s t C o m p a n y ........................ 26

O m a h a N a t io n a l B a n k ............................... 21

P h i l a d e l p h i a N a t io n a l B a n k ...................
P u b l i c N a t i o n a l B a n k an d T r u s t C o . . . . 59

R e m e r , M i t c h e l l & R e itz e l, I n c ..........


St. 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 28
S c a r b o r o u g h an d C o m p a n y ................ 35-47-58

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 .......... 44
T h o m s o n & M c K i n n o n .............................. 32
T o o t l e - L a c y N a t io n a l B a n k ..................50-51

U n it e d S ta te s N a t io n a l B a n k ...............



W a l t e r s , C h a r le s E. C o m p a n y ............. 50
W e s s l i n g S e r v ic e s .......................................... 60
W e s t e r n M u t u a l F i r e I n s u r a n c e C o ... 37

Nort hwest ern Banker, August, 1946



Fresh Meat
Cannibal Cook: Shall I boil the
missionary, boss?
Cannibal Chief: Don’t be silly; that’s
a friar.

He Probably Would
“Now, really, Private, in civilian life,
would you come to me with a trivial
complaint like this?”
“No, Captain; I’d send for you.”

Some Test
Movie Actress: I’ll endorse your cig­
arettes for no less than $50,000.
Cigarette Manufacturer: I’ll see you
inhale first.

Take Your Time, Dad!
“ I’ve been thinking, my son, of retir­
ing next year and leaving the business
to you.”
“ There’s no hurry, is there, dad? You
go ahead and work a few years more
and then we can retire together.”

Permanent Guest
Neighbor: You have a new baby
brother at the house? How nice. Is
he going to stay?
Little Girl: I guess so—he’s got all
his clothes off.
A Bit Startling
Traveling Salesman (reading mes­
sage from his w ife): “Twins arrived
tonight. More by mail.”
C ant Stop Nature
Chinese: Lighthouse no good for
fog. Lighthouse he shine, whistle he
blow, fog-bell he ring—and fog he
come in just the same.
Conservative Scottie
Scotsman (leaving on business trip):
Goodbye, all, and dinna forget to take
little Donald’s glasses off when he is
no lookin’ at anything.
Word for Word
“But I thought—” began the typist,
“ It’s not your business to think,”
snapped the manager. “Just you take
down what I say, word for word, and
keep your own ideas to yourself.”
So that afternoon the following let­
ter was brought for him to sign:
“Dear Mr. Browne—Write it with an
‘e.’ Pure swank—his father was a
gardener. With regard to your letter,
of whatever date it was, I can quote
you the following prices. Hi! Thomp­
son! It’s that outsider Browne. How
much shall we stick on? Twenty per
cent! Make it thirty? Righto. Thirty
dollars a ton. Awaiting your esteemed
order, I am, yours truly. That’ll set­
tle him.”
Northwestern Banker, August, 1946
Federal Reserve Bank of St. Louis

What a Question!
Mrs. Jones was spending a day in
bed with a severe cough, and her hus­
band was working in the back yard
and hammering nails into some boards.
Presently, his neighbor came over.
“ How’s the wife?” he asked.
“Not very well,” replied Jones.
“ Is that her coughin’?”
“ No, you fathead, it’s a henhouse.”
Pogo Stick Success
A young man of burning ambition
approached a great merchant and
begged him to reveal the secret of
his success.
“ There is no easy secret,” pro­
nounced the g. m. “You must jump
at your opportunity.”
“But, sir, how can I know when my
opportunity comes?”
“You can’t,” declared the merchant.
“You’ve just got to keep jumping.”
Pointed Reply
“Doctor,” said the wild-eyed patient,
as he rose from the steps of his farm
homestead and rushed down to meet
the doctor’s car. “ Pm in a deuce of
a pickle. Don’t know where to turn
for relief.”
“What’s the trouble?” asked the doc­
“The ghosts of my departed rela­
tives come and perch on the tops of
the fence posts all round the orchard,”
replied the patient. “ Every night it’s
the same old round — they just sit
there, waiting, waiting, waiting. What
can I do to get rid of them?”
“ Sharpen the tops of the posts,” the
doctor prescribed, as he drove off.

An ultra-smart city man was driving
through an Illinois village when he
thought he would show his compan­
ions how clever he could be at the
expense of the natives. He stopped
the car and called them.
“Can either of you tell me this? If
it’s twenty miles from here to New
Haven, and butter is 35 cents a pound,
how old am I?”
One of the villagers thought for a
moment, then said, “Forty-four.”
“ Marvelous,” said the city man,
amazed. “How on earth did you find
that out?”
“Well,” replied the yokel, “ I have
a brother who is twenty-two, and he’s
only half crazy.”
And Hurry Up!
Wife (trying on hats): “Do you like
this turned down, dear?”
Husband: “How much is it?”
“Eleven dollars.”
“Yes, turn it down.”
Got His Wish
Judge: “What have you to say for
Prisoner: “ I say I wish I was in a
place where there are no traffic cops.”
Judge: “Granted! Thirty days!”
So Different
“Women, in my opinion, are differ­
ent now from what they used to be.”
“ How’s that?”
“ There’s my daughter, for instance
—she’s taking up law, whereas her
mother always lays it down.”
“ Is your husband very handy around
the house?”
“Well, once our antique clock was
out of order, and John took it apart,
found the trouble, and then put it back
together again, without having any
parts left over.”
“ Isn’t that wonderful!”
“ Only now the cuckoo comes out
every quarter hour and says, ‘What
time is it?’ ”
Federal Reserve Bank of St. Louis

/ knew the Bankers Trust

could give us an idea

yes, and these figures prove
their suggestions were sound

E ’RE always glad to have correspondent banks turn to us for help
when they encounter something that’s puzzling.
the habit, too.

We hope you’ll get

Sometimes, you’ll find we have the answer right on

At other times, by combining our experience with yours, we can

work out the answer together.

In any event, we welcome every oppor­

tunity to be helpful.
Member—Federal Reserve System
Member F. I). I. C.

Federal Reserve Bank of St. Louis

Des Moines is occupying a growing and increasingly important
position as a grain center.
For prompt, efficient service, Iowa Banks are invited to route
grain and other drafts to this Bank for collection.
A steadily growing volume of transit business indicates that Iowa
Banks and Bankers are relying to a greater extent than ever be­
fore on the facilities of this Bank to provide fast and efficient
service for their customers.


S tsi& tU f,

G oA A & isp xu id lestt

G a n + ta ctio -n