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C. C. N E U M A N N
E xecu tive V ice President, Farmers and M erchants N ation al Bank
Oakland, N ebraska
President, N ebraska Bankers A ssociation

Federal Reserve Bank of St. Louis



*4 4



. . . W ith a c tiv itie s c o v e r in g th e e n tir e field o f fin a n c e . . ,
w ith o ffic er s w h o a re in tim a te ly a c q u a in te d w ith c o n d itio n s
th r o u g h o u t Iow a . . . an d w ith a s tr o n g d ir e c to r a te w h o se
m e m b e r s a re le a d e r s in c o m m e r c e a n d in d u s tr y . . .

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. . . T h is b a n k is w ell e q u ip p e d to se r v e as y o u r C ed ar
R a p id s C o r r e sp o n d e n t.
W'e in v ite y o u to u se o u r c o r r e ­
sp o n d e n t s e r v ic e , and to lea rn th e v a lu e o f M e rc h a n ts
N a tio n a l c o o p e r a tio n .





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J am es E. H a m ilto n , Chairman
S. E. Co qu illette , P resid en t

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H. N. B oyson , Vice P resident
R oy C. F olsom , Vice P resident
M ark J . M y er s , V. Pres. & Cashier
G eorge F . M iller , V. Pres. & T rust Officer
M arvin R. S elden , Vice President
F red W. S m it h , Vice President
J ohn T. H a m ilto n I I , Vice P resident
R. W. M a n a tt , Asst. Cashier
L. W . B r o ulik , Asst. Cashier
P eter B a iley , Asst. Cashier
R. D. B ro w n , Asst. Cashier
0 . A. K earney , Asst. Cashier
E . B. Z b a n e k , Building M anager

----------------- *

Cedar R apids

Iow a

Wlember Federal Deposit Insurance Corporation

N o rth w e ste rn B an k er, p u b lish e d m o n th ly by the D e P u y P u b lis h in g C om pany, In c ., a t 555 7th S tree t, D es M oines, Iow a.
S u b sc rip tio n , 35c p e r copy, $3.00 p e r y ear. E n te re d as sec o n d -c la ss m a tte r a t th e D es M oines p o st office. C opy rig h t, 1939.
Federal Reserve Bank of St. Louis
Federal Reserve Bank of St. Louis




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Nutley . . . . New Jersey
Federal Reserve Bank of St. Louis




There w as no f i r e ! N obody b u t Jack F rost
rang in the false alarm th at stirred this sp rin k ler
system to action. It was then th at apparatus to
reta rd hazard tu rn ed hazard itself. T he flood th at
flowed from it did considerable dam age to
m achinery and tools and soaked and spoiled
consignm ents of goods.
T em p eratu re changes are often to blam e w hen
w ater teem ing with p ressure accidentally b u rsts
through soldered sprinklers to quench, n ot fire,
bu t output, sales, profits. S tilled by this d ren ch ­
ing tide are the w heels and w orks th at create

Federal Reserve Bank of St. Louis


funds to pay debts, hills and b an k loans.
It is clear from this th at prem ises equipped
w ith autom atic sp rin k ler system s often risk loss
as great as fire, if the apparatus works right at the
w rong tim e. S p rin k ler Leakage Insurance is the
only p rotection against loss from this hazard.
Banks having an in terest in plants and b u ild ­
ings equipped with sp rin k ler leakage system s
should consult th e local HOME agent about suit­
able coverage. H e will be glad to point out the
various form s w ritten by THE HOME to safeguard

invisible values.


V A L U E S — NO.
















Banking Facilities

ECENT world events have focused the attention of


manufacturers and merchants throughout the United

States on the possibilities of increasing their trade with



Latin-American countries.
The Chase National Bank maintains branches in sev­
eral leading cities in the Caribbean area, and long estab­
lished relationships with financial institutions in every
trade center in Latin America. The Foreign Department
of the Chase at the head office in New York thus has a
timely and well-rounded knowledge of business and
financial conditions in these countries.
The benefits of these facilities and first hand connec­
tions are available to Chase Correspondent Banks. Equally
valuable services are at their disposal for their banking
requirements with Old World countries.

Member Federal Deposit Insurance Corporation
Federal Reserve Bank of St. Louis




n o ^ m w e/ t e r n


19 3 9


Oldest Financial Journal West of the Mississippi River


A cross th e D esk fro m th e P u b lish e r ..................................................................................



Feature Articles
R A L P H W. M O O R H E A D
Associate Publisher


F ro n tisp ie c e — “ W a rm th a n d C heer W ith in ” .....................................................................
W h a t I E x p e c t fro m M y B a n k e r ..................................................... G. R. M cArthur
W h a t T h ey A re D oing A b o u t W ag es a n d H o u rs ..........................................................
N ew s a n d V iew s ......................................................................................... Clifford De Puy
S o m eth in g D iffe re n t in B an k A d v e rtisin g ............................................ ...........................
Solving th e P ro b lem of A d eq u ate E a rn in g s .......................... William C. Rem pfer
H ow to Id e n tify Good a n d B ad M oney ........................................ ... Julian T. Baber
To C ele b ra te 75th A n n iv e rs a ry ..............................................................................................
L e g a l D e p a rtm e n t .......................................................................................................................


555 Seventh Street,
Des Moines, Iowa
Telephone 4-8163



Bonds and Investments
D em an d fo r D u ra b le Goods ..................................................................................................... 25
T h e M o n th ’s M a rk e t M an eu v ers ..................................................... ..James H. Clarke 26
N e b ra sk a In v e s tm e n t B a n k in g N ew s ........................................................... ....... ............ 33


State Banking News
Frank P. Syms
V ice President
330 West 42nd Street
Telephone Bryant 9-5490

N e b ra sk a N ew s ......................... ....................................................................................................
O m aha C le a rin g s ................................................................................................................
L incoln L ocals .....................................................................................................................
S o u th D ak o ta N ew s ..................................................................................................................
M in n eso ta N ew s ...........................................................................................................................
T w in C ity N ew s ....................................................................... James M. Sutherland
N o rth D ak o ta N ew s ........ ................................. ..........................................................................
M o n tan a N ew s ..............................................................................................................................
Iow a N ew s ......................................................................................................................................


J. A . Sarazen
Associate Editor

Savings and Loan
P u b lic R e la tio n s— Y o u r G re a te s t O p p o rtu n ity _______________ A. D. Theobald 61

Telephone Hyland 0575

The Directors* Room
A F e w S h o rt S to rie s to M ake You L a u g h ...................................................................... 66

Audit Bureau of Circulations
Financial Advertisers Association
Federal Reserve Bank of St. Louis

Across the Desk
From the Publisher

Hanes Hits Hard
R obert M. Hanes, newly
at Centralized
elected President of the

A m erican B ankers Assoan
ciation, m ade a tw o-fisted,
h ard h ittin g speech the other day in Boston
against centralized control of banking.
He arg u ed fo r S ta te ’s rights.
He favored the independent banking system.
He opposed a system operated from “ A single
d riv e r’s s e a t” .
He argued in the favor of individual in itiative
and enterprise.
Not for some tim e has any banking official
stepped out into the open and u n fu rle d the flag
of independent enterprise and argued against the
centralized control of banking as did P resident
H anes in his Boston address.
We co n g ratulate him on his initiative and hope
he will continue this fighting spirit.
Among other things which Mr. H anes said were
these p u n g en t p arag ra p h s:
“ There is a body of opinion at w ork in this
country to day th a t tries to m ake us forget the old
A m erican philosophy of S ta te s’ rights. The A m er­
ican system of 48 independent S tates has been
u n d er severe criticism for several years past.
There are people who tell us th a t this system
which lias operated as a check system on cen tral­
ized powers, as its creators intended it should, is
an an tiq u ated system. W h at they w ould have us
accept is a system reg u lated and directed from a
single d riv e r’s seat and autom atic as fa r as our
activities are concerned.
“ Prom the outset, enterprise, or free enterprise,
as we like to call it, depended upon and still de­
pends upon a free or independent banking system
operated by experienced, qualified men who know
the credit needs of th e ir comm unities, and how
best to m eet them.
“ The banking system lies at the h ea rt of the
Federal Reserve Bank of St. Louis

question of free enterprise vs. planned economy,
local rig h ts vs. centralized control. W itho u t free
enterprise there are no local rights. A nd you c a n ’t
have free enterprise w ithout an independent
credit system. If business men or home owners
ever have to go, h at in hand, to the agents of the
political pow er in control, fo r credit, th ey will
have su rrendered two v ital elem ents in A m erican
freedom , freedom of speech and freedom of the
ballot. ’ ’
May the day never come, as Mr. H anes suggests,
w hen business men and other individual borrow ­
ers have to go h at in hand to a political pow er in
order to secure credit accomodations.
If there is to be a change in the direction of
centralizing banking and control of credit it m ust
be done by each individual b anker exertin g his
personal influence against legislation of this kind
or character.
H eaven knows there is enough “ centralized
leg islatio n ” on the sta tu te books now, bu t let us
see th a t no more is placed there and the way to
prevent it is th ro u g h the ballot box.

Eccles, the
Echoes Ag

Once again C hairm an Marrin e r “ S p e n d th rift” Eccles,
C hairm an of the F ed eral R e­
serve B oard, argues for contin­
uation of the spending m ethods of our n ational
adm inistration in order to “ Prim e the P u m p ”
and “ S ta rt the W heels of In d u s try ” .
This tim e he ballyhooed a t the m eeting in ob­
servance of the 25th anniversary of the St. Louis
F ed eral Reserve B ank.
Mr. Eccles also believes in increasing the taxes
in order th a t there m ay be more m oney to spend.
No reference in any of his rem arks was made
about reducing expenses.
Ju s t lend and spend and spend and lend and
everything will be lovely.

Mr. E ccles’ program is as follows :
1. Reduce exem ptions w hich enable single men
earning less th a n $1,000 and fam ily heads earning
less th an $2,500 to escape federal income taxes.
2. Increase tax rates on persons earning from
$5,000 to $50,000.
3. Increase the “ n o rm a l” income ta x on cor­
porations to tak e aw ay a share of “ w ar profits.”
4. P u t ex tra taxes on “ ra in y day reserv es”
piled up in “ excessive am o u n ts” by large corpora­
5. Reduce consum er taxes, such as the excises
on autom obiles, gasoline and th eate r tickets.
6. A d ju st social security and unem ploym ent in­
surance taxes so th a t they will not exceed benefit
paym ents, at least u n til tim es are m uch better.
As is well known, there has been a feud going
on betw een the S ecretary of the T reasury and the
C hairm an of the F ed eral Reserve B oard, and as
one political w riter puts it, “ The gap betw een the
Eccles group and the M orgenthau-H anes-treasury
group is as wide as ever.
“ The first still strongly adheres to the spending
policy and, w ith the more radical of the adm inis­
tra tio n economists, is bent upon a revival of the
spending-lending scheme rejected by congress last
“ The second believes the new naval program in ­
volving 1 % billion dollars for new construction is
adequate spending— even in an election y e a r.”
A nyw ay Mr. Eccles keeps on echoing the same
idea th a t we should spend our w ay into prosperity
and borrow ourselves rich and if there was ever
any crazier idea proposed by the head of the F e d ­
eral Reserve system , we d o n ’t know w hat it is.
A t the A m erican
Must Maintain Sound
B ankers C onvention
National Credit

in S eattle the official
resolutions carried this s ta te m e n t:
“ W e re ite ra te our belief th a t an approach to
a balanced budget should be the p rim ary objective
of our public fiscal policy to the end th a t sound
n ational credit m ay be m aintained. W e tak e ad ­
v an tag e of this op p o rtu n ity to express to our fel­
low bankers, and to in stitu tio n al and priv ate
investors, our continuing conviction th a t the
bonds of our F ed eral G overnm ent are the safest
of all investm ents. W e are not disquieted by tem ­
p o ra ry fluctuations in th e ir m ark et prices, for
these securities embody more fully th a n do any
others the qualities of m ark e tab ility and safety. ’ ’
As we view it a t this time, “ A n approach to a
balanced b u d g e t” is perhaps a very nice and
m odest w ay to p u t it because certainly a balanced
Federal Reserve Bank of St. Louis

budget fo r the U nited States Governm ent is a long,
long ways off.
A nd certainly we m ust m aintain a sound n a­
tional credit and the only w ay th a t it can be m ain­
tained is to actually obtain and keep in force a
balanced budget. A nd th a t will be more th a n ju st
“ An a p p ro ach ” to the subject,

Unit Banks
A t the annual m eeting
Serve Towns Best of the Nebraska Bankers

were passed soundly endorsing the dual banking
system and opposing “ any form of branch b an k ­
in g .”
The resolution adopted by the N ebraska B an k ­
ers was as follow s:
“ We h ea rtily endorse the dual banking system
of the U nited S tates and tak e a stand against
branch banking in any form, as we believe the in ­
tere st of the banking fra te rn ity and of the clients
of the banks are best served by both natio n al and
S tate banks. We believe th a t branch banks will
unduly re stric t credit and operate against the
best in terest of the sm all tow ns and comm unities
in g en e ral.”
In com m enting on the advantages of the u nit
banking system P resid en t P. C. Neum ann, of the
N ebraska A ssociation and Vice P resid en t of the
F arm ers and M erchants N ational B ank of O ak­
land had this to say : “ On each and every ban k er
in the S tate rests the responsibility of m aintaining
a t all tim es in his own com m unity a sound and
constructive banking policy. No outside agency
can perform those day-to-day, everyday banking
services so vital to the financial w elfare of our
respective com m unities as a sound w ell-m anaged
local banking in stitu tio n ; and no system of b an k ­
ing is b e tte r fitte d to our ru ra l N ebraska com­
m unities th a n our dual system un d er w hich we
o p erate.”
The u n it banking system will continue to pros­
per in ju st the degree th a t it is well m anaged from
the inside and th a t job is up to every b an k er in his
own local com m unity. He can do the best job if
he will and m ost of them are.

Europe Still Owes Us


14 is little wonder

that the recent ses‘

s i o n of C o n g r e s s
passed the “ Cash and C a rry ” Bill as fa r as p u r­
chases to be m ade by E uropean countries are con­
cerned in connection w ith W orld W a r No. 2.
C ountries across the A tlan tic still owe us $14,500,000,000 from the W orld W a r of 21 years ago.
Federal Reserve Bank of St. Louis


W hat I Expect From
By G . R. McArthur

My Banker

Vice President
N orthw estern Public S e rv ic e Company
Huron, South Dakota

H E R E is no doubt th a t today th e
A m erican people are ta k in g a
keener, m ore critical in te re st in
th e conduct of business th a n ever be­
fore. A nd w h en I say critical, I m ean
exactly th at. D uring recen t y ears
m ost of th em have suffered loss, eith er
of jobs or of savings, and u n d er such
circum stances m en are prone to accept
w ith o u t serious question an y scrapegoat th a t ap p ears plausible. In th e
confusion of fears and resen tm en ts,
th e y seem to have concluded th a t
sh o rtsig h ted and selfish business m an ­
agem ent is chiefly responsible for th e ir
m isfo rtu n e.” T h a t sta te m e n t recen tly
appeared in one of our n atio n al trad e
jou rn als, aim ed to reflect th e a ttitu d e
of th e public.
F o r m o n th s past, business leaders
have been giving th o u g h t and stu d y to
th e public acceptance enjoyed by th e ir
respective businesses in p articu lar, as
well as th a t enjoyed by business in
As an exam ple of th is in te re st and
study, let m e cite you th e Ju n e 16,
1939, issue of Standard Trade and Se­
curities, w hich devoted one e n tire sec­
tio n of th a t issue to th is question of
public acceptance.
“B usiness in general is rap id ly be­
com ing public relatio n s conscious, a
v ery n a tu ra l developm ent in view of
the events of recen t years. It is p ro b ­
able, in fact, th a t th is m ark s a new
m ilestone in co rporate practice. At
first, we had w h at m ight be called the
production period, w h en in d u stry w as
concerned first of all w ith th e technical
problem s of production. T his w as fol­
lowed by th e d istrib u tio n period, w hen
th e accent w as sh ifted from th e te c h ­
nical problem s of p roduction to th e
problem of finding w ays to im prove
and enlarge m a rk e ts—w hen th e need
for increasin g sales becam e m ore
p ressin g th a n th e need for increasing
“It is p erh ap s too soon to say th a t
public relatio n s re p re se n ts th e th ird
m ajor phase of co rporate practice, b u t
it is a problem w ith w hich business
m u st contend for a t least a n u m b er of
y ears ahead, if not p erm anently.

Federal Reserve Bank of St. Louis

"I Must Feel a Genuine C o n fid en ce In His Business
and Its M anagem ent"
"H e Must A t All Times Be Honest, Sincere, Courageous,
Sym pathetic, Patient, a G o o d Neighbor and
a G o o d C itizen"
“The necessity for cu ltiv atin g good
relations w ith th e public is not a t­
trib u tab le solely to the advent of th e
New Deal. It is a factor th a t has been
in need of atten tio n for m any y ears
p rio r to th e p resen t A dm inistration,
b u t one th a t had co n stan tly been sub­
ordinated to th e desire to increase
sales. In o th er words, little of th e bud­
get w as assigned for cu ltivating good
w ill tow ard th e com pany and by far
th e g reatest p a rt for gaining a con­
su m er desire for th e product produced.
“The New Deal can be th an k ed for
b rin ging hom e to business th e fact
th a t in d u stry ’s prom otional activities
had created only a liking fo r its prod­
ucts and for its policies. H ad m ore
effort been devoted to fostering good
will, business would not occupy the
bugaboo role it now plays in th e m inds
of a large portion of th e public.”
T h at w as not w ritte n for th e benefit
of any one business alone. R ather, it
reflects a careful ju d g m en t after th o r­
ough investigation of “The B usiness
P rospect.”

Public Acceptance
T his g reater em phasis on public ac­
ceptance—th e grow ing consciousness
of th e need for cu ltivating public good
w ill is exem plified in m any ways.
M any business groups are today p ro ­
m oting courses, th e aim of w hich is to
show em ployes how to cultivate cus­
tom er good will. C orporations are in ­
ducing th e ir em ployes to join local o r­
ganizations and are con trib u tin g to lo­
cal activities, in o rder to fight th e
charge of absentee m anagem ent.
It is n o t alw ays easy to ascertain th e
sta tu s of our public acceptance. The
usu al test is th e ex ten t of proposals for
re g u lato ry legislation and th e n um ber
and n a tu re of com plaints from our cus­
tom ers. B ut in th is we m ay be fooled
for th ere are no definite levels of to ler­
ance. C ustom ers w ill p u t up w ith situ ­

ations for a certain length of tim e, or
w ith a given problem u n d er certain
conditions, and you m ay n ever h ear
from them . On th e o th er hand, th e re
is a point beyond w hich th e com posite
quality of all relations betw een your
business organization and yo u r cus
tom ers can n ot be low er or your cus­
tom ers w ill im m ediately become vocal.
Public relations are not separate and
d istinct from o th er business activities.
Public a ttitu d e tow ard your business
is determ ined by the w ay the individ­
ual custom er is treated in every con­
tact he has w ith th e b an k and its em ­
ployes. It is not som ething strange,
form idable and outside the scope of
our usual and custom ary field of en ­
deavor. Public relations activities are
p a rt and parcel of our daily operations,
so handled th a t th e custom er is not
conscious of them .

Everybody Belongs
Someone has asked, “W ho belongs
in th e public relations d ep artm en t?”
In answ ering th a t question, one’s
th o u g h ts first tu rn to th e head of some
d ep artm en t b u t I like to say in m y
ow n com pany th a t our public relations
d ep artm en t is our largest departm ent,
because everyone on our payroll be­
longs to it.
Of course, w h at I m ean is th a t any
em ploye w ho contacts th e public in
any way, is th e com pany to those peo­
ple. The w ay em ployes act, th e ir cour­
tesy and tact, th e service th ey give or
fail to give, th e answ ers th ey m ake to
questions—all have a definite bearing
on th e w ay th e public feels tow ard the
com pany. That, of course, is n ot new.
B ut w hen w e th in k of these em ployes
as belonging to a public relations de­
partm en t, p erhaps th a t is new and will
give you a clue as to th e tra in in g and
a ttitu d e of m ind th a t is necessary if
public confidence and resp ect are to be
(T u rn to page 31, please)


W hat They A re Doing
About Wages and Hours
A N K ERS nationw ide are finding
them selves confronted w ith a se r­
ous problem in th e ir efforts to com ­
ply w ith th e req u irem en ts of th e
W ages and H ours L aw enacted by th e
recen t Congress, and w hich becam e ef­
fective on October 24, 1939. The p ro b ­
lem w ill ev en tu ally be solved, as have
th e m any o th ers confronting th e b a n k ­
ing profession d u rin g p ast years, b u t
in the m eantim e com pliance w ith the
Law is w ork in g considerable incon­
venience on some b an k s and is a real
hard sh ip on m any others.
In th e public m ind, “keeping b a n k ­
ers h o u rs” has come to be synonym ous
w ith w h a t is considered a “so ft” job—
plen ty of pay and v ery little w ork.
Jo h n P ublic sees only th e notice on the
door, “B anking H o u rs from 10 A. M.
to 2 P. M.”, and know s no th in g of th e
trem endous am o u n t of detail and cleri­
cal w ork n ecessary before and a fte r
those hours. I t is th is before and after
w ork th a t p resen ts th e problem .
To help clarify th e situ atio n th e
N o r t h w e s t e r n B a n k e r asked th e sec­
retarie s of a n u m b er of M iddlew estern
States to tell us w h at th e y have done,
or are doing, to b rin g som e ord er out
of w h at ap p ears to be a chaotic condi­
tion. AVe find from th e ir rep o rts th a t
some b anks have reduced th e ho u rs
th ey are open to th e public, o th ers
have increased th e ir clerical force, and
o thers are paying overtim e. I t is re ­
ported, too, th a t th e re is question as
to w h e th e r b an k s come u n d e r th e Law,
and in some cases plans are being laid
to have th e L aw am ended at th e n ex t
session of C ongress so th a t b an k s w ill
be exem pt. A n u m b er of suggestions
are m ade w hich we feel su re our re a d ­
ers w ill find helpful.


H arry C. H ausm an, se cretary of th e
Illinois B an k ers A ssociation, advises
th a t a special com m ittee assigned to
th e stu d y of th e subject has recom ­
m ended th a t Illinois b an k s proceed
im m ediately to th e 40-hour w eek, since
th ey w ill need to do so n ex t October
in an y event. A p a rt of th e Illinois
com m ittee re p o rt reads as follows:
“A fter a gen eral discussion of the
subject m atter, th e C om m ittee u n a n i­
m ously w en t on record as approving
Federal Reserve Bank of St. Louis

cepted th e th eo ry th a t th e Act w as in
keeping w ith th e sp irit of th e tim es
and th a t em ployes of banks should be
given th e sam e privileges and oppor­
tu n ities accorded o th er business en­
terp rises and th a t th e banks should,
therefore, m ake every effort to ad ju st
them selves im m ediately to th e 40-hour
week, although it is n ot conceded th a t
banks necessarily come w ith in the
provisions of th e law or th a t it is at all
m an d ato ry a t th e p resen t to confine
th e w orking ho u rs of th e ir em ployes
to less th a n 44 hours a week.
“T he Com m ittee th ereu p o n agreed
th a t its discussion should be divided
into tw o phases— (1) th a t of m eeting
th e provisions of th e law; (2) d eter­
m ination of objectives desired w hich
North Dakota
involve eith er am endm ents to th e F ed­
eral Act or regulations by th e A dm inis­
South Dakota
tra to r and proposed state legislation.
“AATth reg ard to th e first phase, the
Com m ittee strongly recom m ends, and
urges com pliance by th e banks in the
State, th a t each b an k m ain tain a tim e
record for each em ploye for each w ork
th is record to be signed by the
Reduce Hours O pen to the
respective em ployes and for th e p u r­
pose of th e record, recom m ends a sim ­
ple form. T hese records should be
kept on file by each b ank for not less
H alf-holiday on Satu rd ay.
th a n 4 years.
“To th e banks th ro u g h o u t th e State
Increase C le rica l Force.
it is recom m ended th a t th ey agree by
or clearing house associations
G o to 40-hour W eek Imme­ counties
as to th e h o urs w hich th ey w ill be open
to th e public and to ad ju st such hours
so as to give necessary service to th eir
Endeavor t o H a v e L a w com m unities and a t th e sam e tim e
enable them to com ply w ith th e Act,
Am ended as it A pp lies to and th a t such a d ju stm en t be m ade im ­
m ediately w ith th e idea of operating
u n d er a 40-hour w ork w eek basis.
“In th is connection, it w as reported
Adoption of Uniform Hours th a t such action has already been
tak en in several instances, in w hich
Not Possible.
th e banks by m u tu al agreem ent have
established th e ir ho u rs open to the
Pay the O vertim e.
public to be from 9 to 2 on w eek days
and from 9 to 12 on S aturdays or some
th e general purposes of th e F a ir L abor o th er one day in th e week.
“AATth reg ard to th e second phase of
S tan d ards Act, otherw ise know n as th e
AVages and H ours act, and Recom ­ the discussion, th e Com m ittee recom ­
m ended th a t its approval be confirm ed m ends th a t an effort be m ade to have
by th e Council of A d m inistration in th e p resen t F ed eral Act am ended by
behalf of th e A ssociation and th a t the th e forthcom ing Congress so as to p e r­
m em ber banks be urged to com ply m it an a d ju stm en t of w ork weeks
n o t only w ith th e provisions of the w ith in 5-week periods so th a t any over­
Act b u t its spirit. T he Com m ittee ac­ tim e caused by necessary service to


th e public in any one w eek can be
leveled out over 5 weeks. It w as
b ro u g h t out th a t th is plan w ould p a r­
tic u la rly be helpful at th e end of the
m o n th peak due to th e p re p a ra tio n of
d ep o sito rs’ statem en ts and otherw ise
incidental e x tra w o rk gen erally in ­
volved in a b an k a t th a t tim e.”

In d ian a b anks have been an tic ip a t­
ing th e change for th e p ast tw o years,
according to Don E. W arrick, secre­
ta ry of th e In d ian a A ssociation, w ho
says th a t his office w as encouraging
sh o rte r h o u rs even th re e y ears ago.
Mr. W arrick says:
“More and m ore In d ian a b anks are
observing a half-holiday and th e te n d ­
ency is still m ore in a d irection of Sat­
u rd a y afternoon. Most of our co u n try
banks are sh o rten in g th e ir h o u rs so
th a t th e b anks m ay open a t 9:00 a. m.
and close at 3:00 p. m. Most of our
large city b anks are observing 9:00 to
2:00 and one city is observing 10:00
to 3:00 and a n o th e r 9:30 to 2:30.
“W e find our In d ian a b anks are in
fine shape in hav in g ad ju sted th e m ­
selves over th e last tw o y ears to th e
ev en tu a lity of w ages and hours. In
fact th is A ssociation has been en co u r­
aging th e sh o rten in g of b an k in g h ours
for over th re e years in an ticip atio n of
th e problem w hich confronts us today.
“On J u ly 6 of th is y e a r we sen t out
a b u lletin w hich stated th a t a d ju st­
m en ts m ig h t be m ade in relatio n to
h o u rs over a fo rtn ig h tly or m o n th ly
period. T his in te rp re ta tio n w as g a th ­
ered from vario u s services an d from
th e ABA, b u t our a d m in istra to r of th e
W ages and H o u rs Act in Indiana, Mr.
Viat, d isputes th is in te rp re ta tio n . In
fact, I have been u nable to find any
official in te rp re ta tio n of th e reg u latio n
to su p p o rt th e in te rp re ta tio n w hich
th e services have been p u ttin g out. It
is m y u n d e rsta n d in g th a t th e re w as a
verbal discussion in th e offices of th e
W ages an d H o u rs D ivision w hich led
b anks to th in k th a t th e y m ig h t gain
th is po in t ultim ately, b u t th a t official
in te rp re ta tio n w as n ev er prom ulgated.
“M ost of th e problem s arisin g in
relatio n to th e ad m in istratio n of th is
Act in In d ian a come from th e ty p e of
em ploye to be included; i. e. ja n ito rs
and people only collaterally em ployed
in relatio n to banking. Then, too, th e re
is th e problem of overtim e and its
com pensation.
“T h ere is no question b u t w h a t it
has created q uite a b it of confusion
am ong In d ian a b an k s an d I suspect it
w ill create even m ore confusion w hen
th e h o u rs come dow n to 40, effective
October 24, 1940.”

In keeping w ith th e sen tim en t ex­
p ressed in som e o th er States, F rank
Federal Reserve Bank of St. Louis

Shall banks rem ain open few er hours every day, shall th ey close one
h a lf day per week, or shall th ey p ay overtim e to th e ir employes?
Complying w ith th e requirem ents of the W ages and H ours L aw p re ­
sents a real problem.

W arner, secretary of th e Iow a Asso­

ciation, finds th a t his m em bers feel
it w ould be advisable to anticipate the
1940 ho u rly reduction now, ra th e r
th a n w ait u n til n ex t year and have
an o th er hill to clim b at th a t tim e.
D iscussing th is and o th er phases of
th e situation, Mr. W arn er says:
“B anks m ore and m ore are seeing
th e feasibility and th e practicability,
if th ey have not already done so, of
m aking one a d ju stm en t now th a t w ill
cover m ilestones of October 24, 1939
and of October 24, 1940. T hey feel th a t
if th ey consum m ate th e ir m axim um
necessary read ju stm en ts now th a t it
w ill be m uch easier afte r October 24,
1940 for them and less ja rrin g and a n ­
noying possibly to th e ir public clien­
tele. T here are tw o chief w ays to re ­
duce th e n um ber of ho u rs “open to the
public” so as to enable banks to b e tte r
conform to req u irem en ts of th e F a ir
L abor S tandards Act of 1938:
(1) A half-hour later opening in th e
m orning a n d /o r a half-hour or
an h o u r earlier closing in th e
aftern o o n for each day in the
w eek is one way;
(2) M aking one-half day a holiday
on some afternoon d uring th e
w eek is a n o th er way.
“T he use of eith er one or both of
these m ethods has been found of ade­
quate help by banks th ro u g h o u t the
S tate th a t have trie d e ith er or both.
W hile is has been suggested th a t p e r­
haps th e w ork of em ployes m ig h t be
staggered, it can and should be said
th a t th a t recom m endation applies to
larg er banks because in th e m ore ru ra l
and sm aller banks th e o p p o rtu n ity to

stagger w ork is practically lacking b ut
the sh o rten in g of the business day and
th e observing of a half holiday in each
w eek are factors th a t banks, large or
sm all, u rb an or ru ral, can equally con­
“It is the belief of m any th a t sooner
or later business in th is co u n try w ill
be operating on a 5-day week. T rade
unions th ro u g h o u t th e co u ntry have
already been operating on such a w o rk ­
w eek for the last tw o or th ree y ears or
m ore. They, am ong others, desire it is
said, th a t all business shall go to a
5-day week. If th a t is to come in the
n ear fu tu re y ears it is felt th a t it
w ould be m uch easier to m ake an
ad ju stm en t from w h at is now a m ore
or less 5%-day w eek to th e 5-day w eek
if th e b ank w ere already observing
S aturday afternoon as a half holiday.”

Som ew hat like th e secretaries of
o th er States, Fred M. B ow m an, secre­
ta ry of the K ansas B ankers Associa­
tion, feels th a t the best m ight as well
be m ade of w h at for th e p resen t is a
highly disagreeable situation. To m ake
it easier for th e b an k er he has had
prep ared several W age and H our rec­
ord sheets w hich if p roperly kep t w ill
give th e em ployer not only all such
data required, b u t also th e necessary
Social Security data. The records con­
sist of th ree separate sheets—In d iv i­
dual E arnings, Pay Roll, and Time
Com m enting on the W age and H our
Law, Mr. B ow m an says:
“The wage and h o u r sen tim en t in
our state is adverse to its application
(T u rn to page 29, please)







V iews

By Clifford De Puy
W. A verill H arrim an, ch airm an of
th e board of th e U nion Pacific R ailroad
Company, and p a rtn e r in th e p riv ate
bank in g firm of B row n Bros., H a rri­
m an and Com pany, believes th a t if as
m uch in tellig en t th o u g h t w ere given
to developing b e tte r public u n d e r­
stand in g of th e im p o rta n t services p e r­
form ed by W all S treet and th e b a n k ­
ing business as a w hole, as has been
devoted to th e technical aspects of
banking, p o p u l a r m isconceptions
w ould be corrected and fu tu re political
difficulties m inim ized.
In em phasizing th e confused th in k ­
ing w hich governs th e public attitu d e
tow ards banking, he says, “T h at b a n k ­
ers w ere condem ned a few y ears ago
for m aking w h a t w ere called im provi­
d en t loans, y e t today th e y are being
condem ned for alleged u n w illingness
to lend m oney.”
Dr. T hom as E. Shearer of P rentice,
Hall, Inc., N ew York, w ell k now n p u b ­
lishers of T ax Services, in a re c e n t ad­
dress gave as his opinion th a t th e a t­
titu d e in W ashington, D. C., is th at,
“B usiness m u st be allow ed to m ake a
T here is one th in g sure, th a t if b u si­
ness isn ’t allow ed to m ake a profit,
Democracy, as we know it in th is coun­
try, w ill be a th in g of th e past.

If you don’t th in k G erm any is busy
w ith h e r propaganda, you can get a
copy of “F acts in R ev iew ,” issued by
th e German Library of Inform ation
(or m is-inform ation as you like), 17
B attery Place, N ew York.
T his propaganda sh eet w as sta rte d
only recen tly and is m ark ed Volum e 1.
The first article in th e issue w e have
has to do w ith th e subject “P oland

and to depend on th e state for a living.
“In som ething like 250 fields, th e
govern m ent is com peting w ith p riv ate
business — banking, m anufacturing,
loans, real estate, public utilities, build­
ing construction, ag ricu ltu re and n u ­
m erous o ther fields.
“B ureaucracy reigns ram p a n t in the
federal adm inistration. T here a r e
n early 250 bureaus, boards, com m is­
sions, ad m inistrations, corporations
and o th er pay roll en terp rises —a gain
of n early 300 per cent over those w hich
existed in 1914.”
P erh ap s some day, and let us hope
before it is too late, th e A m erican pub­
lic w ill change th is ru le of A m erica by
B ion H. B arnett, ch airm an of the
board of th e B arn ett N ational Bank,
Jacksonville, Florida, w ho has long
been recognized as one of th e prom i­
n e n t and successful b an k ers of the
south, discussed our gold policy in a
recen t article and expressed him self as
“W h at value w ould be placed on
gold should we stop buying it? W h at
can we do w ith it if we continue to buy
“H ow can we get out of this statu s
quo (defined by th e negro preach er as
‘de fix w e’s in ’)? Only, in m y opinion,
by stopp in g try in g to buy prosperity
w ith spending.

Such m aterial is allow ed to be pub­
lished in th e U nited S tates b u t it
w ouldn’t last five m in u tes if some
A m erican w as p ublishing sim ilar m a­
terial in G erm any.

“The g overnm ent has borrow ed and
sp en t over 25 billions du rin g th e p ast
six y ears and up to th e beginning of
th e p resen t w ar had n eith er reduced
th e n u m b er out of w ork n o r increased
th e prices of a g ricu ltu ral products. It
should give up try in g to overcom e the
n a tu ra l laws of supply and dem and.
T he effort w as first m ade in th e tim e
of D iocletian, has been trie d various
tim es since by several countries, and
has n ever p erm an en tly succeeded and
n ev er will. The price of labor is gov­
ern ed by th e sam e inexorable law.
L abor nev er w ill get full em ploym ent
by passing law s raising its price and
sh o rten in g its ho u rs of w ork.”

W. H om er H artz, of Chicago, and
p resid en t of th e Illinois M anu factu r­
e rs’ A ssociation, in com m enting on
w h at has h appened in th e U nited
States since 1914 b rin g s out th e fact
th at, “In 1914, th e U nited States be­
lieved in h a rd w ork; now th e p rev ail­
ing philosophy is to avoid h a rd w ork

Back in 1933 th e banks of th e U nited
States borrow ed m oney from the R e­
co n stru ction F inance C orporation and
issued preferred stock for th e am ount
of $1,147,715,000.
All of this sum has been repaid ex­
cept 600 m illion dollars, w hich is still

B etrayed by B ritish and F ren ch .”
The n e x t article is en titled “N eutral
P ress D en oun ces B ritish B lockade.”
Federal Reserve Bank of St. Louis

T his is a v ery m arvelous record and
one of w hich any b an k er m ay w ell be
In the last tw o m onths banks have
re tire d $5,599,000 of g overnm ent owned
E. C hester G ersten, presid en t of the
Public N ational B ank and T ru st Com­
pany of N ew York, in discussing th e
“Problem s of B a n k In v estm en t,”
m akes th is in te re stin g observation:
“E arn in g s of banks are now derived
from service charges, low in te re st rates
on available sound loans, and from
low-yield bonds. Likew ise, th e depos­
ito r’s incom e is dim inished by reduc­
tions, and even elim ination, of in terest
on tim e deposits. In te re st on dem and
deposits is a th in g of th e past.
“Is th is satisfactory to depositors?
Is it good for th e co u n try generally?
M ight it n ot be b e tte r if in te re st rates
w ere higher, and m oney w ere earning
th e rew ard to w hich accum ulation is
en titled ?”
H arm on F. Rom m el, rep resen tativ e
of the Chemical B ank and T ru st Com­
pany of New York, and w ho travels
out of th e ir Chicago office, attended
th e prevue in th e d irecto rs’ room in
the B ankers T ru st Company, Des
Moines, w hen R ichard R. R ollins, vice
president, show ed his cinem a skill by
producing on th e screen pictures he
took at the Seattle A. B. A. convention
and also m oving pictures of th e farm
appraisal m eeting held by Group 6 on
th e Rollins farm .
Most of th e films w ere show n in col­
ors and it is expected th a t Mr. Rollins
w ill soon be tra n sfe rin g his activities
to Hollywood.
The U nited S tates D epartm ent of
A griculture, in discussing th e credit

outlook for 1940, points out th a t the
volum e of sh o rt term credit used by
farm ers du rin g 1939 and ’40 for pro­
duction and living costs, for live stock
and m achinery and for farm im prove­
m ents is expected to be 5 or 10 per cent
g reater th a n th a t used in 1938 and ’39.
B etw een Ju n e 30, 1938, and Ju n e 30,
1939, th e com m odity loans held by
com m ercial banks and o ther lenders
u n d er purchase ag reem ent w ith the
Com m odity C redits C orporation in ­
creased $248,780,000, w hile th e total of
com m odity loans and o th er personal
and collateral loans of com m ercial
banks to farm ers increased $267,761,000. T he principal increase in com­
m odity loans held by com m ercial
banks and o th er lenders w ere in corn
loans and cotton loans.
At th e reg u lar session of congress,
w hich convenes in Jan u ary , it looks as
(T u rn to page 41, please)


Something Different

Bank Advertising
The M itchell Corn P alace as it appeared th is F all
during the celebration from Septem ber 23 to 30.

F YOU have ever been a visito r at
M itchell, South Dakota, it is quite
likely you have seen th e Corn Palace,
since it is one of th e o u tstan d in g show
places of th e city. F irs t erected in 1892,
th e o riginal building has, of course,
been g reatly changed and enlarged,
and as far as is know n, is th e only
stru c tu re of its k ind in th e world.
U nique and unusu al in character, it
is n a tu ra l th e M itchell Corn Palace
should becom e fairly w ell know n in
th e m iddlew est, b u t it rem ained for
th e M itchell N ational B ank to give th e
Palace w h a t m ight be term ed w orld­
w ide publicity. W ith b an k m oney o r­
ders of th e M itchell N ational B ank
trav ellin g th e length and b re a d th of
th e U nited States, and h u n d red s of
them going into foreign countries, J.
M. P atton, vice p resid en t of th e bank,
saw an o p p o rtu n ity to publicize his
city and one of its m ain attractio n s.
H ow he did it is illu stra te d in th e fac­
sim ile of a M itchell N ational B ank
m oney o rd er show n below.
F in d in g it n ecessary to rep len ish th e
b a n k ’s su p p ly of m oney orders, Mr.
P a tto n had lithog rap h ed across th e
face of th e order, “Hom e of th e W orld’s
Only Corn Palace.” T he orders are

Federal Reserve Bank of St. Louis

p repared on safety paper, and aside
from th e line as noted above are of the
usual m oney order type. It would seem
th e re is an idea here for banks in other
tow ns w ho m ight w ish to boost some
u n u su al featu re of th e ir city.
The plan of a Corn Palace for M itch­
ell originated w ith a conversation be­
tw een tw o M itchell residents in th e
sum m er of 1892. A group of business­
m en canvassed th e tow n and secured
su bscriptions of $3,700 and an organiza­
tion m eeting w as held and com m ittees
w ere chosen to c arry out various
phases of p relim in ary w ork. A build­
ing, 66x100 feet, w as erected on the
n o rth e a st corner of Main stre e t and
F o u rth avenue. It w as covered on the
outside w ith corn, w orked out in geo­
m etric designs w ith vary in g shades of
th e g rain and inside it w as decorated
w ith an ingenious assortm ent of corn
products, fabricated by th e w om en of
M itchell. The Iowa S tate band and
tw o South D akota bands w ere obtained
and the attendance of o u tstanding
bands becam e a ch aracteristic featu re
of Corn Palace W eek for th e nex t
th irty years.
D uring th e nex t few y ears it becam e
necessary to enlarge and rem odel the

building from tim e to tim e. The last
change w as m ade in 1937, w hen various
tow ers and m in arets w ere added, h ig h ­
ly colored and pictu red w ith O riental
The building is freshly decorated be­
fore each Corn Palace celebration, th e
decorations rem ain in g in place for one
In th e earlier days, various
shades of corn w ere arran g ed in geo­
m etric and form al designs to cover the
exterior. B ut in later years th ere have
been elaborate panel pictures, both in ­
side and out, form ed by w hite, red,
yellow and o th er shades of corn, some
of w hich is grow n especially for this
purpose. It takes betw een tw o and
th ree thousand bushels of corn to deco­
ra te th e Palace each year; and in the
recen t d ry y ears it w as som etim es
necessary to em ploy sheaf g rain and
grasses to fill out. The designs for the
panels are all the w ork of local artists.
Corn Palace W eek has not only
b ro u g h t crow ds from all p a rts of the
state and far beyond its borders, b u t
has attra c te d speakers of national and
in tern atio n al reputation. Am ong o ut­
standing m en w ho have spoken from
th e Corn Palace platform here have
(T u rn to page 24, please)


How to Solve the Problem of
Adequate Earnings
E d ito r’s N o te— A t the conclusion of
P art One of this article on A dequate
E arnings, Mr. R e m p fe r w as discussing
salary records and gross incom e per
em ploye, ending by saying “I t seem s to
m e that the inescapable conclusion
m u st be reached th a t these em ployes
are giving free services to the bank’s
custom ers, or services rendered m uch
beloiv cost to the bank.” N ow read
O D E T E R M IN E w h e th e r th is is
th e case I have p rep ared Schedule
E, w hich covers th e receipts and
costs of w h at m ight be term ed activ ity
in th e banks. In te re st received on
loans and bonds is m ore or less fixed,
w hile th e o th er earn in g s come from
the o th er d ep artm en ts w hich m ight be
called th e activ ity dep artm en ts. So
also, th e expenses for salaries, in te re st
paid and taxes are largely statio n ary ,
w hile th e o th er expenses are m easured
approxim ately by th e activ ity in th e
bank in its o th er dep artm en ts. T his is
broug h t out in a sta rtlin g m an n er in
Schedule E.
D educting th e expenses of th is activ ­
ity in th e b an k from th e earn in g s re ­
su ltin g from charges for th is activity,
the b anks of South D akota had n et
earnings of $195 p er em ploye in 1938,
th e b an k s of th e U nited States had
$219 and th e F irs t N ational B ank of
P ark sto n had $1,314 p e r employe. In
o th er w ords, P a rk sto n earned m ore
th a n six tim es as m uch p e r em ploye as
th e average b an k in South D akota or
the U nited States for th a t m atter. And
for seven m o n th s of th a t y e a r P a rk ­
ston, w ith a population of 1,500, w as a
tw o b an k town! You guessed it—
th ese earn in g s w ere from service
charges. A nd Schedule E includes
service charges.
W h eth er th e average South D akota
ban k m ade a profit in 1938 depended
en tirely on how m uch it received in
service charges on activ ity in th e b an k
outside loans and bonds and how well
it k ep t dow n its activ ity expenses.
In m any respects th is schedule is
the m ost im p o rta n t and m ost en lig h t­
ening one of th e w hole series. In g en­
eral, th e re is n o t m uch th a t can be
done about th e o th er earn in g s and ex­
penses of th e bank. T hey are largely
fixed. B ut h ere is som ething flexible,
about w hich som ething can be done.

Federal Reserve Bank of St. Louis

As fu rth e r proof th a t our help at
P ark sto n w as not overw orked, this
C ash ier, First National Bank
schedule show s th a t th e m oney outlay
Parkston, South Dakota
for supplies or expenses having di­
President, South Dakota Bankers Ass'n
rectly to do w ith activ ity w as about
th e sam e as th e U nited States average
p er employe, nam ely $1,284 as against
$1,233. All in all, th is schedule pro­
vides the fairest te st w h eth er or not a
b ank is overstaffed, and is th e one to
w hich I re fe rred above.
And, of course, an o th er source of
pride to me is th e fact th a t our in sti­
T hese sta rtlin g figures show th a t the
b anks of South D akota and th e U nited tu tio n alm ost doubled th e U. S. av er­
States fu rn ish th e physical m aterials age per em ploye in gross incom e from
and supplies in th e ir checking d ep art­ service charges, nam ely $2,598 to
m ents to th e ir custom ers below actual $1,452, and m ore th a n doubled th e state
cost, and do th e w ork involved in re n ­ average, nam ely $2,598 to $1,130.
Our charges at P ark sto n are well
derin g such services for a p altry $200
p er y ear p er employe, or a little m ore w ith in the schedules suggested in
Booklet No. 23, issued th is sp rin g by
th a n $15 per m onth.
H ow long w ould any o th er p ru d en t th e B ank M anagem ent Com m ission of
business m an em ploy a clerk at a sal­ th e A m erican B ankers Association,
a ry of $1,509 per year w ho w as able to covering uniform account analysis.
b rin g in n et earnings to th e business The m em bers of th e com m ission allow
of only less th a n $200? I t is tru e th a t an earnings credit of IV2 p er cent—we
th is activ ity m akes it possible for th e allow 2V2 p er cent. T hey charge for
b an k to get its dem and deposits w ith ­ cu sto m er’s checks or item s, “loaded”
out in terest. The average dem and w ith deposits, at 5 cents each—we
deposits p er em ploye in South D akota charge 4 cents. T hey charge an over­
in 1938 w ere $65,400. F ig u rin g this head m aintenance of th e account a t 50
w o rth th e sam e ra te paid for tim e cents w hich we do n ot charge. You
m oney, and deducting 20 per cent for w ill readily see from th e above th a t we
reserves, th e in te re st saving on th e are not holding up our custom ers.
We charge at th e ra te of 50 cents per
actual dem and deposits in South Da­
kota b anks for 1938, w ould have been $100 for m aking change, m inim um
$921 p er employe. Add this am ount to charge 10 cents, and th e B ank M anage­
his $195 of n et earnings, th e to tal n et m ent Com m ission advocates m aking
incom e p er em ploye w ould have been such a charge. M aking change is one
of th e m ost expensive and m ost abused
$1,116, w hich w ould still leave him
sh o rt $393 of earn in g enough to pay his tran sactio n s in a bank, due to th e cost
of shipping and in su rin g coin and c u r­
In o ther w ords, each em ploye m ust rency, th e tim e involved in handling
earn an additional $393 in service and counting it, th e danger of m aking
charges besides th e $195 n e t am ount m istakes, and th e excessive abuse of
he now earns before he can pay his th e privilege by a g reat m any custom ­
ow n salary. T his m eans th a t th ere ers. Before we im posed our charges
m u st be eith er (1) h ig h er schedules of for m aking change, m ost of our m er­
service charges, (2) additional activity ch an ts w ould m ake a deposit, includ­
a t p re sen t schedules of charges, an d /o r ing all th e ir loose change in th e m orn­
(3) a reduction in th e n u m ber of em ­ ing, and before noon th ey w ould be
ployes. Since it is axiom atic th a t back for it to use in th e ir business.
w h en charges are increased, activity W e used to handle th e ir change 12
dim inishes, it follows th a t th e n um ber tim es a week, w hile now w e fu rn ish
of em ployes m ust be reduced. If th is th em w ith only a rep len ish m en t of it,
is done at th e sam e tim e th a t activity once or tw ice a w eek—and get paid for
charges are increased, i. e., sufficient it. F u rth erm o re, th is charge is more
to cover actual costs, th e budget w ill easily explained and defended th a n al­
be balanced as far as salaries are con­ m ost any o th er charge m ade by th e

By William C . Rempfer

C harging for all services has low ered
activ ity in th e checking d e p a rtm e n t of
b a n k a c t iv it y
OUr b ank in a n o te w o ith y m anner, as
E a rn in g s a nd E xpenses C om pared w ith U. S. A verage 1938
I have pointed out, it now being about
S outh D akota B anks— 43 N a tio n a l a nd
o ne-tm ra or xne activ ity p er $ jl,u 'u u o i ------------ ---------------------------------RECORD PER BANK
deposits as com pared w ith a num ber
N et
of banks w hich w ere contacted, and
E a rn in g s
O th e r
O th e r
certain ly less th a n one-third of th e
A v e ra g e P e r B a n k
A c tiv ity
E a rn in g s
E xpenses
activ ity m our b an k p rio r to th e m sti- go Dak National Bankg
1 2 ,0 5 7
1 2 ,8 2 7

-”l>-»/-»na C licil feLö.
t im
I l l -L
kJjLj lj VV
. -r*

ston for each $141,600 of deposits and
investm ents, w hile in 1938 we had one
for each $339,300. Over half of o u r
H ow ever, th ere are still b an k ers w ho
th in k certain services should be re n ­
dered to th e com m unity free of charge.
Of course, none of th em th in k s th a t
m oney should be loaned to anyone
w ith o u t in terest, although I have been
inform ed of one w ho even does th a t on
his $5 or $10 loans, ju st because he is
afraid of com petition. C ertainly, as
our schedule show s SO well, these activ ity services involve costs to th e
bank, and th e custom er receiving th em
should pay for th em according to a
covers th e ir cost b u t yields th e b an k a
fair profit.
tp r

w h irli

T re re iv e d

la te lv

fro m

So. D a k . S ta te B a n k s

2 ,7 8 1

3 ,9 6 0

ah so. D a k . B a n k s
Ail U n ite d s t a t e s B a n k s
P a r k s to n

E a rn in g s a nd E xpense R ecord
126 S ta te
O th e r
E a rn in g s

N et
E a rn in g s
A c tiv ity

O th e r
E xpenses

1 ,1 6 6

1 .0 9 6





1. 179

6 ,2 16

5.14 1

1 ,0 7 5

1 ,1 3 0




2 1.5 8 0

3 ,8 4 0

1 ,4 5 2

1 ,2 3 3


5, 195

2 ,5 6 7

2 ,6 2 8

2 ,5 9 8

1 ,2 8 4

1 ,3 1 4

o p e r a t in g

statem ent

of banks

In c lu d in g Proposed R eserves fo r Losses a n d D ividends— 1938 E a rn in g s a nd E xpense R ecord
South D akota B anks— 43 N a tio n a l a nd 126 S ta te — C om pared w ith U. S. A verages

A v e ra g e P e r B a n k
in c o m e

So. D a k .
N a tio n a l
B anks

So. D a k .
S ta te
B anks

A ll
So. D a k .
B anks

A ll
U . S.
B anks

P a r k s to n
8 ,3 3 8

l. I n te r e s t on L o a n s

2 4 ,8 2 5

7 ,8 3 3

1 2 .1 5 7

5 1 ,5 7 0

2. I n te r e s t on B o n d s

1 2 .9 4 8

3 .0 0 7

5 ,5 3 6

3 8 ,9 0 0

8 ,5 7 7

3 other Earnings

1 2 ,8 2 7

3 ,9 6 0

6 ,2 1 6

2 5 ,4 2 0

5, 195

5 0 ,6 0 0

1 4 ,8 0 0

2 3 ,9 0 9

1 1 5 ,8 9 0

2 2 .1 1 0

1 8 ,1 7 2

4 .9 0 2

8 ,2 7 8

3 4 ,7 0 0

7 ,9 3 2

1 6 .1 4 0

5 ,1 6 0

L saiariesDI8BURSEME]S 18
2. I n te r e s t P a id


^ a x es

5 ,6 5 0

1 ,7 7 1

2 ,7 5 2

1 ,8 3 4



7 ,2 4 6


1 2 ,0 5 7

2 ,7 8 1

5 ,1 4 1

2 1 ,5 8 0

2 ,5 6 7

3 7 ,7 1 3

9 ,9 3 2

1 6 ,9 9 4

7 9 ,6 6 6

1 6 ,3 3 6

cream and produce concern in Chicago
w hich has n um erous local stations in
South D akota and th e n o rth w est. I
q i i n t e - “ Tn c h e c k i n g our records up
u n til today, SO far in th e m onth of
June, 1939, th e exchange of $21.74
charged by you rep resen ts a total of

4 - o th e r E xpenses

„ ’; j
p a id

* A ctu al a m o u n t ch arg ed off $18,600 p e r b a n k , all banks of th e U. S. or 52 p e r c en t of expectancy, m ak in g
a (Jeficiexicy of $2,856 in ste ad of a deficiency of $20,656 fo r th e a v erag e b a n k in th e U. S.


r p u .'s

w ith


u y U b.
X nib c o n e s p o n u b W lU l d l l
item of $11.27 charged on a to tal of
$10,420 by an o th er bank; an o th er item
of $7.04 for $5,827; an o th er item of
$11.44 on a to tal of $4,151 and $16 on
a total of $6,736; $6.30 on a total of
, , ,
, 4 . / .. O C »
$5,445, and $9.80 on a total of $6,136.
, ,,
W ill some one please tell me how a
bank c a n shin i n coin and currencv.
and pay out $10,420 w o rth of sm all
cream and Lproduce checks a t a cost of
, ,

5 . r e s e r v e s o f 1 % o n A v e ra g e D ep o s its lo r 1938
6 - D iv id e n d s, S % o n C a p ita l S to c k
T o ta l

d e f ic ie n c y

1 2 ,6 5 6

2 ,5 9 0

5 .1 5 1

3 6 ,4 0 0 *

3 ,5 1 0

8 .0 0 0

2 ,4 0 0

3 ,8 6 4

2 0 .4 8 0

2 ,0 0 0

5 8 ,3 6 9

1 4 ,9 2 2

2 6 ,0 0 9

1 3 6 ,5 4 6

2 1 ,8 4 6

7 ,7 6 9



2 0 ,6 5 6

(su rp lu s)



In c lu d in g Proposed R eserves fo r Losses a nd D ividends— 1938 E a rn in g s and E xpense Record
South Dakota Banks_ 43 N a tio n a l and 126 S ta te -C o m p a re d w ith U. S. A verages
_________ _______________________ ___ —--------------------------------------------------------------------------------•


U . S.
B anks


F ir s t
N a tio n a l
P a r k s to n

3 .6 0

2 .4 9

4 .6 8

1 .2 4

0 .7 0

1 .4 3

4 .8 4

3 .1 9

2 .1 9

av era g e
P e r B ank

So. D a k .
N a tio n a l
B anks

So. D a k .
S ta te
B anks

So. D a k .
B anks


3 .1 3

4 .1 3

1 .0 4

1 .5 2

4 .1 7

5 .6 5

« p ll.Z i • x.a. IJclIllv l l l d l u d l l U.U Lllclv oliU Liivi

not find it difficult to m ake 100 p er
cent on its capital stock p er year! W e
have been ch arging 1 p er cent on

2 other

ers for y ears and do n o t believe it
excessive,’ because
w.e are v irtu a lly fi.

1 s a ia rie s D I S B U R S E M E N T S
„ T,
^ _ .,
2. I n te r e s t P a id

Smith Dakota H ankers A ssociation
m inim um ra te s of 50 cents p e r $100 of
cream and produce checks th e b an k
h an d lin g $ 1 0 ,4 0 0 w o rth of th e m w ould
have leceiv ed ovei $ 5 0 .
I am convinced th a t th e h ig h m ortal.



th e last 20 y ears is due p rim a rily to
(T u rn to page 46, please)
Federal Reserve Bank of St. Louis

4 i n te rest
^ ^

4 - o th e r
S u b - to ta l

1 .5 8

1 .8 9

1 .7 4

0 .9 6

0 .4 6

0 .6 8

0 .5 5

0 .4 6

0 .1 5

0 .1 8

0 .1 9

0 .2 1

0 .9 2

1 .0 7

0 .9 9

0 .6 2

0 .7 1

3 .1 1

3 .8 2

3 .4 7

2 .2 5

4 .5 0

1 42**

0 .1 8

5 . R e s e rv e fo r L osses







0 .6 3

0 .9 4

0 .7 5

0 .5 6

0 .5 7

R e s e rv e fo r D iv id e n d s

------------- ---------------------------------T o ta l

D e fic ie n cy

4 .7 4

5 .7 6

5 .2 2

3 .8 1


0 .5 7


0 .3 8


(0 .0 4 )
(su rp lu s)

** j n cludes 0.53 accrued in te re s t on bonds pu rc h a se d in 1938.


How Bankers Can Identify
G ood and Bad
M oney
By Julian T. Baber
United S ta te s S e c r e t S e rv ic e , Washington, D. C.

URING th e p ast tw o years, w hile
a tten d in g State B an k er conven­
tions, I have h ad th e privilege
of m eeting m any ban k ers, including
p ast p resid en ts of th e A m erican B ank­
ers A ssociation and S tate associations,
some of w hom indicated by th e ir in ­
quiries th ey w ere u n aw are of th e
duties and resp onsibilities of the
U nited S tates Secret Service.
Coming from ban k ers, these in ­
quiries have been a bit perplexing,
and I have since w ondered w h y b a n k ­
ers know so little about us w h en our
in terests are so closely related. H ow ­
ever, it has occurred to m e th a t p e r­
haps it is our fau lt th a t we are not
b e tte r know n in th e b an k in g field.
May I say th a t th is is one of th e re a ­
sons we are on y o u r program . W e
w an t you to know th a t th e S ecret S erv­
ice as a division of th e T re a su ry De­
p artm e n t is one of th e oldest in v esti­
gative agencies in th e G overnm ent
stru ctu re. In fact, we are th is y ear
an n iv ersary .
Briefly, we are charged w ith th e re ­
sponsibility of p reserv in g th e in te g rity
of th e cu rren cy and coinage and o th er
fiscal obligations of th e G overnm ent,
as well as th e g re a t resp o n sib ility of
p rotectin g th e P re sid e n t of th e U nited
States and m em bers of his fam ily, and
th e person elected to be P resident. W e
are called upon occasionally to pro tect
visitin g royalty, our m ost recen t re ­
sponsibility being T h eir M ajesties, the
K ing and Queen of E ngland, w ho v is­
ited th e U nited States in June. T his
additional d u ty tax ed our resources
to th e lim it, b u t I am h appy to say th e
arran g e m en ts connected w ith th is dual
task w ere successful in every p a rtic u ­
Since th e n a tio n ’s b an k s are our first
line of defense in com bating th e coun­
terfeiter, y o u r tellers occupy th e fro n t
line tren ch es an d you m u st depend
upon th e ir ju d g m en t and discrim in a­

Federal Reserve Bank of St. Louis

tion in d eterm ining the q uality and
c h a ra c ter of th e m oney passing
th ro u g h th e ir hands.
T ellers perform a splendid service
th ro u g h th e ir general efficiency in de­
tectin g counterfeits included innocent­
ly in custom er deposits. M any new
co u n terfeits first come to our a tte n ­
tion in th is m anner. I feel th a t our
efforts in suppressing counterfeiting
w ould be retard ed in g reat m easure
if we failed to receive th is assistance
from our b an k er friends.

Organized Racket
W ith a com paratively sm all field
force scattered a t strategic points, the
resp o n sibility of keeping our m oney
clean re sts sq u arely upon th e Secret
Service. B ankers share w ith us a com­
m on in te re st in th is responsibility and
we rely upon them in coping w ith a
problem w hich in recen t y ears has
developed into an organized rack et
w ith u n derw orld connections exten d ­
ing th ro u g h o u t th e country, and even
into foreign countries. W e value h igh­
ly y o u r cooperation and it is Chief
F ra n k J. W ilson’s desire th a t all b ank
em ployees shall reg ard them selves as
unofficial Secret Service agents, alw ays
on th e qui vive for th a t shady com­
m odity w hich is th e spaw n of th e crim ­
inal en g rav er and th e crim inal p rin ter.
The average teller daily sees the
p o rtra its of W ashington, Jefferson,
Lincoln, H am ilton, Jackson, and p er­
h aps G rant and F ran k lin , hu n d red s
of tim es. T hey pass before him in
rap id review and it is im possible for
him to stop and exam ine m in u tely the
p o rtra it on each note. H e m u st ac­
cept or reject th e notes in sta n tly and,
incidentally, he m akes few m istakes.
A n experienced teller can spot in stin c­
tiv ely th e strange, or “u n frien d ly ,”
face on a co u n terfeit note as quickly as
he can spot th e face of a stra n g e r be­
fore his cage.

T hrough long y ears of train in g , your
teller acquires a so rt of sixth sense
in sep aratin g the chaff from the w heat
—a sense enabling him to distinguish
betw een good and bad engraving and
printing. But, w h at about th e butcher,
th e baker, th e candlestick m aker?
W hy are th ey usually th e victim s of
th e counterfeiter? It is because th ey
are n o t fam iliar w ith th e quality and
c h aracter of our cu rren cy and coin­
age, and it follows th a t th e co u n ter­
feiter m akes capital of th is ignorance
by d istrib u tin g his w orthless wares.
The finished product of th e B ureau
of E n g rav in g and P rin tin g in W ashing­
ton, D. C., surpasses in excellence the
cu rren cy o u tp u t of all o th er nations,
because our genuine notes are p rin ted
from steel plates superbly engraved
by han d by the finest craftsm en in the
w orld. E xcept for th e serial num bers
and T reasu ry seal, w hich are surface
printed, every line, every dot, every
dash on a genuine note stands up
clearly and d istinctly and th e com­
posite design p resen ts a challenge
w hich th e co u n terfeiter cannot m eet.
The p aper is im pregnated w ith tin y
red an d blue silk fibers to increase its
d u rab ility and tensile stren g th . These
distinctive fibers are difficult to dis­
cern a t first glance and, c o n trary to
popular belief, th ey are n o t intended
as a protective feature.

In th is fast m oving age, th e average
person does not tak e tim e to consider
our m oney seriously in term s of qual­
ity appreciation. He is inclined by
h ab it to identify cu rren cy by the large
denom inational nu m erals appearing
in th e corners of each note. He is not
im pressed by th e a rtistic w o rk m an ­
ship, superb engraving and p rin tin g
values and general high class ap p ear­
ance of our p aper money.
(T urn to page 56, please)

Federal Reserve Bank of St. Louis


C h airm an of E x e c u tiv e C om m ittee
F ir s t N a tio n a l B ank & T r u s t Co.

F R A N K M . P R IN C E

C. T. JA F F R A Y

C hairm an of the B oard
F ir s t N a tio n a l B ank & T r u s t Co.

To Celebrate

7 5 th

C hairm an of th e B oard
F ir s t B ank Stock C orporation


First National of Minneapolis to Hold Diamond Jubilee December 12
ir s t n a t io n a l b a n k & t r u s t
COMPANY, oldest b an k in M inne­
apolis and one of th e oldest in th e
n orth w est, w ill celebrate th e diam ond
a n n iv e rsa ry of its organization D ecem ­
b er 12th.
F o r it w as on th a t date in 1864 th a t
Jacob K. Sidle and a group of asso­
ciates signed th e o rganization certifi­
cate. A m o n th la te r to th e day—J a n u ­
ary 12, 1865—th e c h a rte r as a national
bank w as issued by th e U nited States
com ptroller of cu rren cy —c h a rte r No.
710. A nd on J a n u a ry 24, 1865, th e
bank opened for business.
A ctually, th e h isto ry of F irs t N a­
tional goes back of D ecem ber 12, 1864,
to a tim e seven y ears earlier w h en th e
p riv ate b an k in g firm of Sidle, W olford
& Com pany w as organized. F o r F irs t
N ational stem m ed from th is p riv ate
Jacob Sidle cam e to M inneapolis in
1857 from York, P ennsylvania. He w as
36, am bitious and read y to back th a t
am bition w ith th e $10,000 he carried in
his pocket.
He team ed w ith P e te r W olford, a
local m an, to found th e p riv ate b a n k ­
ing firm b earin g th e ir nam es. In 1863,
Jacob’s y o u n g er b ro th er, H en ry G.
Sidle, tem p ted by th e glow ing rep o rts
received as to th e possibilities in th e
fast-grow ing little com m unity called
M inneapolis, sold th e fam ily blacksm ith in g and general m erchandising

Federal Reserve Bank of St. Louis

business in York and headed w est to
jo in Jacob.
The follow ing y ear th e priv ate b ank
w as converted into a b an k u n d er state
c h a rte r—one of th e first to be so ch a r­
tered in M innesota—and becam e the
M inneapolis Bank. T h at sam e year,
th e tw o Sidles and th e ir associates or­
ganized th e F irs t N ational Bank, w ith

L . E. W A K E F IE L D
P re s id e n t
F ir s t N a tio n a l B ank & T r u s t Co.

q u a rte rs in th e old N icollet H ouse at
th e corner of W ashington and H enne­
pin Avenues.
Jacob w as first p resid en t of the
bank, H en ry th e first cashier. How
rapidly th e b ank grew w ith the equal­
ly rap id ly grow ing city is show n by
th e capital changes of th e institution.
A t th e organization, th e capital was
$50,000; 10 y ears later th a t figure was
doubled. In October, 1877, it w as
jum ped to $600,000, and in 1885 to
$ 1, 000, 000.
T hree y ears later Jacob died, after
24 y ears as president, and H enry was
selected to succeed as president. He
served u n til his re tire m e n t in 1894.
In Ju ly of th a t year, F. M. P rince be­
cam e associated w ith th e b ank for the
second tim e—th e second tim e, because
some y ears earlier he had been a clerk
th ere—from 1878 to 1882, to be exact.
Mr. P rince w as m ade cashier and
executive officer, w ith Captain Jo h n
M artin, a pioneer lum berm an, as presi­
dent. The y ear 1895 saw an o th er im ­
p o rta n t nam e added to th e list of the
b a n k ’s officers, th a t of Clive T. Jaffray.
Mr. Jaffray took over th e duties of
cashier, relinquished by Mr. Prince,
w ho w as m ade vice president. Judge
J. B. Gilfillan succeeded Captain M ar­
tin as p resid en t in 1903, serving two
years; th en th e presidency w as given
to Mr. Prince, w ho continued for 10

F ro m 1894 on, ably directed by Mr.
P rin ce and Mr. Jaffray, th e b an k devel­
oped rap id ly w ith th e city. Some y ears
earlier, th e b ank h ad m oved from its
q u a rte rs in th e N icollet H ouse to a
location across W ash in g to n A venue.
By 1897 still fu rth e r en larg em en t w as
required, and th e b an k m oved to M ar­
qu ette and F o u rth Street. Then, in
1907, a new b uilding w as erected a t
F ifth S treet and M arquette, site of th e
p re se n t eighteen-story stru c tu re , b u ilt
eight y ears later.
In 1900, N icollet N ational B ank w as
m erged w ith F irs t N ational. T h irteen
y ears later, an ag reem en t w as m ade
w ith th e M inneapolis T ru s t Company,
u n d e r w hich stockholders of th e two
in stitu tio n s becam e identical.
N ineteen fifteen saw th e m erger
of F irs t N ational w ith S ecurity N a­
tional B ank and th e beginning of F. A.
C ham b erlain ’s long association w ith
Mr. Jaffray and Mr. Prince.
S ecurity N ational w as organized in
1878, an d at th e tim e of th e m erg er in
1915, Mr. C ham berlain w as its p re si­
dent, a post he h ad held since 1892. It
b ro u g h t to th e m erged in stitu tio n $24,000,000 in deposits, sw elling th e to tal
to $50,446,000.
S im ultaneously w ith th e m erger, th e
new F irs t and S ecurity N ational B ank
m oved into th e ju s t com pleted F irs t
National-Soo Line B uilding, its p resen t
Mr. C ham berlain w as p resid en t of
th e consolidated b an k for tw o years,
becom ing ch airm an of th e executive
com m ittee in 1917 sim ultan eo u sly w ith
Mr. Jaffray ’s election as presid en t. Mr.
C ham berlain has served continuously
as ch airm an of th e executive com m it­
tee since 1917, w hile Mr. P rin ce has
been ch airm an of th e board of d irec­
to rs since 1915, a post he w as selected
to fill w h en F irs t an d S ecurity N atio n ­
als m erged.
The decade of th e 1920’s saw the
rap id expansion of F irs t N ational (the
w ord “S ecu rity ” w as dropped from
th e new nam e in 1920).
E x ten sio n of F irs t N ational service
on a city-wide basis began in 1922,
w h en th e b an k acquired th re e neig h ­
borhood banks. O thers w ere added by
p u rch ase or o rganization soon after,
and th e p re se n t “F irs t N ational
G roup” includes th re e b ra n c h offices—th e St. A n th o n y Falls, N o rth Side and
W est B roadw ay Offices, an d fo u r affili­
ated banks, th e M innehaha and Bloomington-L ake N ational B anks and the
Produce and H en n ep in S tate Banks.
F o r m an y y ears a close com m unity
of in te re st had existed b etw een th e
F irs t N ational B ank and th e M inneap­
olis T ru s t Com pany, w hich w as estab ­
lished in 1888. In 1913, th e relatio n
w as cem ented by an ag reem en t w hich
(T u rn to page 39, please)

J ----------



H e serves b est w ho serves o th ers w ell.
T h is is the
slo g a n and p la n o f o p era tio n o f th e H aw k eye C asualty
a g en t. H e is p rou d o f the C om p any h e rep resen ts and
the C om p any is p rou d o f h im .

T h is m a n k n o w s h is b u sin e ss a n d is a c r e d it to th e I n s u r ­
ance P ro fe ss io n . W e ll tr a in e d b y s tu d y a n d e x p e rie n c e
h e is b e tte r q u a lifie d to p r e s c rib e f o r y o u r in s u ra n c e n ee d s.
T h e H a w k e y e m a n is y o u r n e ig h b o r, close a t h a n d , alw ay s
re a d y , w illin g a n d a b le to d iscu ss a loss s e ttle m e n t o r p r o ­
te c tio n p ro b le m . T h e H a w k e y e C a su a lty a g e n t is a h ig h ly
re g a rd e d r e p u ta b le m a n in y o u r c o m m u n ity . H e w a n ts
to k n o w y o u — it w ill p a y y o u to k n o w h im .
H aw k eye
C asualty
Is Iow a’s
O wn S tock C om p any, w ith a s­
sets o f over o n e m illio n dollars.

casualty comPAny
Des moines, iouia


A .
N orthw estern Banker
Federal Reserve Bank of St. Louis

D ecem ber 1939

Settlement of Claim
Under Negotiable Instrument A c t
U nder the N egotiable In stru m e n t
Act a holder of a negotiable in stru m e n t
discharges it and ex tinguishes th e debt
if he renounces his rig h ts ag ain st the
principal debtor. Jo h n held, in M in­
nesota, a note for $500 dollars on w hich
G irard w as m ak er and Sorvisto w as
endorser. G irard w en t into b a n k ru p t­
cy. Com position proceedings w ere had
th erein in w hich G irard ’s creditors, in ­
cluding John, received 25 p er cent on
th e ir claims. As an incident thereto,
Jo h n gave a receip t for th e paym ent
w hich contained th e w ords th a t it w as
in full settlem en t of his claim. Could
he th e re a fte r recover th e balance due
from Sorvisto, th e endorser?

These and Other Timely Legal
Questions Are Answered

No. A ccording to a recent M inne­
sota Suprem e Court d ecision in vo lv in g
a som ew h at sim ilar set of facts, John,
in sign in g the receipt th at he did, v o l­
u ntarily relin qu ish ed and discharged
the debt for every purpose and re­
leased the endorser from liab ility. It
w as not n ecessary for John to give
such an all in clu siv e release to receive
the com position p aym ent of 25 per cent
of h is claim hut, inasm uch as he w en t
as far as he did in it, he m ust, of n eces­
sity, accept the consequences.

in T ennessee th a t also provided for
disability benefits and duly paid all
prem ium s thereon. The policy con­
tain ed a provision th a t after one year
it should be incontestable except for
th e n o npaym ent of prem ium s. A fter
tw o years, Brow n becam e disabled, in ­
com petent and confined to bed because
of d rinking. A b an k er friend w as ap ­
pointed his g u ardian and, as such,
sought to recover disability benefits
for B row n u n d er the insurance. The
in su rance com pany refused to pay,
claim ing th e disability benefit p rovi­
sion had been obtained th ro u g h fraud
in th a t Brow n had had th e d rin k hab it
w hen he procured th e insurance and
had not told them . W ould such a de­
fense be perm itted?

By the


in terest of the beneficiary is in alien ­
able, and even though by the term s of
the tru st it is provided that the incom e
shall he paid to the beneficiary person­
ally or on h is personal receipt.
B row n bought some life insurance

Coyne set up a tr u s t fund w ith a
tru s t com pany as tru ste e for th e bene­
fit of h e r son. In doing th is she p ro ­
vided th a t th e son should receive the
incom e from th e fund u n til his death
and th a t th e re a fte r th e fund should go
to a nam ed charity . The tr u s t in s tru ­
m ent read th a t th e in te re st of th e son
should be inalienable and th a t th e in ­
come should be paid to him personally
or on his personal receipt. A bout ten
years la te r th e son, by w ritte n assign­
m ent, directed the tr u s t com pany to
pay th e incom e to an o th er, w hich it
did. T his w en t on for about a y e a r and
th en the son suddenly rescinded his
previous assig n m en t and dem anded
th a t th e tru s t com pany pay him th e
equiv alen t of w h a t it had paid out u n ­
der it. W as th e tru s t com pany liable
for this paym ent?

W eiser died in Iowa leaving a w ill
w hich provided th a t a tru s t com pany
th e re should be the executor. The
will w as silent regarding w h eth er a
tom bstone should be provided for him
out of th e funds of th e estate. Should
it be so provided?

No. If incom e is received by a tru s­
tee w hich is payable to a beneficiary
and it is paid to a third person by the
tru stee on the order of the beneficiary,
the tru stee is under no liab ility to the
beneficiary for m aking such paym ent,
although by the term s of the trust the

Yes. T his situ ation is governed by
the gen eral rule that the cost of a
tom bstone or m onum ent suited to the
d ecedent’s estate and his condition in
life is a proper charge again st h is es­
tate as part of the fun eral ex p en ses or
exp en ses of adm inistration in the ab­
Federal Reserve Bank of St. Louis

No. The p rovision in the p olicy to
the effect that it should he in co n test­
able after one year excep t for n on ­
p aym ent of prem iu m s con trols and
w ill he g iv en full force and effect. T his
ru lin g is in accordance w ith recent
F ederal, T exas, T enn essee, and South
Carolina decisions.

sence of a direction therefor in the
w ill.
A South D akota resid en t violated a
sta tu te of th e state relatin g to offenses
by certain officers having custody of
public funds. He w as indicted. His
in dictm ent w as en titled “Indictm ent
F o r E m bezzlem ent,” w hereas the
crim e w as not, stric tly speaking, em ­
bezzlem ent. In th e body of th e indict­
m ent, how ever, th e crim inal acts w ith
w hich he w as charged w ere properly
outlined. W as th e indictm ent rendered
invalid by th e m istake in th e title?
No. A m isnom er or inaccurate des­
ignation of a crim e in the caption or
other part of a com plaint, indictm ent,
or inform ation w ill not v itia te it w here
there is a sufficient detailin g of the
facts co n stitu tin g the offense in the
body of the in stru m en t so that the
defendant is fu lly apprised of the na­
ture of the charge again st him .
W ilson, a N ebraska business man,
endorsed a check draw n on a b ank in
a n o th er city for a business acquaint­
ance to enable him to cash th e check.
U nder th e m istaken im pression th a t
the check had been re tu rn e d unpaid,
W ilson m ade it good a t his local bank.
L a te r w hen the check w as re tu rn e d he
saw th a t the draw ee b ank had stam ped
it paid w ith a p erfo rato r and th a t w hat
had actually happened w as th a t the
draw ee b ank had charged it to the
p u rp o rted m ak er’s account and he had
re tu rn e d it on th e ground th a t it w as a
forgery. In such circum stances could
W ilson recover th e am ount of the
check from th e draw ee bank?
Yes. A s b etw een equally innocent
persons, d raw ee and payee or indorsee,
the draw ee p ayin g a check on w hich
the d raw ee’s nam e has been forged
can n ot recover the am ount paid on
d iscovery of the forgery. It follow s
that the actual lia b ility in th is m atter
fell on the drew ee bank and that, since
W ilson made good the check under a
m istake of fact, he could recover his
exp en d itu re in th is con n ection from
such hank.
A North D akota b an k er em ployed an
atto rn e y to prosecute a claim on a
prom issory note on a contingent fee
basis. The con tract w as in w ritin g and

provided no p ay m en t w ould be due
th e a tto rn e y unless a collection w as
m ade and fu rth e r provided th a t th e
claim w ould n o t be com prom ised
w ith o u t th e a tto rn e y ’s consent. F acts
developed in ciden t to th e claim th a t
caused th e b a n k e r to believe it w ould
be advisable to com prom ise th e m a tte r
and he effected a com prom ise w ith o u t
the a tto rn e y ’s consent. W as such a
com prom ise valid?
Yes. S tip ulations contained in con­
tracts b etw een a clien t and liis attor­
ney w h ereb y the attorn ey’s righ t to
com p en sation is exp ressly m ade con­
tin gen t upon the su ccessfu l prosecu ­
tion of the claim and p rovid in g that
tiiere shall he no com prom ise w ith ou t
the a ttorn ey’s con sen t have gen erally
been held in valid as an tagon istic to
those con sid erations of public policy
w hich favor an am icable adjustm ent
of litigation . North D akota, as w ell
as JoAva, N ebraska, South D akota, M in­
nesota, Illin ois, M ichigan, U tah and
M ontana, follow th is gen eral rule.
Sm ith, a hanker, held certain special
ta x bills issued by K ansas City and St.
Louis, M issouri, to co n tracto rs in p ay ­
m en t of p aving and sew er im prove­
m ents upon w hich he received in terest.
The cities w ere not liable on th ese bills
to th e co n tracto rs or th e ir successors
and h ad no connection w ith th em
afte r th e ir issuance except keeping
ro u tin e records. T he bills w ere se­
cured by liens on th e p ro p e rty ben e­
fited and th e ir p ay m en t could be en ­
forced only by foreclosure of such
liens. W as it n ecessary th a t Sm ith
pay a F ed eral incom e ta x on th e in te r­
est p ay m en ts he received on th e bills?
Yes. The F ed eral R even u e A ct pro­
vid es th a t in terest from an obligation
of a state, territory, or any politieal
su b d ivision thereon is exem pt from
the incom e tax. It has b een held that
th is m ean s an obligation issu ed by
one of the bodies nam ed in the exercise
of its b orrow in g pow er. The obliga­
tion s held by Sm ith w ere n ot of this
type, for th ey w ere n ot ob ligations of
the cities, eith er in form or in substance. C onsequently it w as n ecessary
th at he pay the F ed eral incom e tax
on the in terest therefrom .
W here a person is adjudged an in ­

com petent and expenses and a tto rn e y ’s
fees are th e re a fte r in c u rre d in good
faith in proceedings to resto re his ca­
pacity, m ay th e y be charged ag ain st
th a t p e rso n ’s estate w h ere th e y are
reaso n ab ly necessary and w h e th e r or
n o t th e proceedings are successful in
re sto rin g him to th e sta tu s of a com ­
p eten t person?


D ecem b er

tr a n s a c tio n s


1 st



th e

la r g e st

th e

y ea r

w ill u n le a s h


flo w o f m o n e y th a t w ill e a s e c r e d it a n d
im p r o v e c o lle c tio n s w h ic h in tu r n s h o u ld
im p r o v e a n d a c c e le r a te b u s in e s s g e n e r a lly .

$190,000,000 NEW MONEY
T h is



c o n s e r v a tiv e

e s tim a te


th e

a m o u n t o f ca sh th a t w ill h e lo a n e d o n th e
1 9 3 9 Io w a C orn C rop .
d iv id e


fin e

p r o fit

Io w a h a n k s w ill

in te r e st

a lo n e .

S c o r e s o f Io w a h a n k s a re a lr e a d y e q u ip p e d
w ith W e s te r n M u tu a l s u p p lie s r e a d y to re a p
th a t a d d itio n a l p r o fit f r o m th e in s u r a n c e
w h ic h

is r e q u ir e d


m u st

accom pan y

e a c h lo a n s u b m itte d to C. C. C.

W e s te r n

M u tu a l a g e n ts a re in a p o s it io n to m e e t
a ll c o m p e t it io n w ith a p o lic y th a t e n jo y s a
la r g e

fa v o r a b le

p u b lic

a c c e p ta n c e

lib e r a l c o m m is s io n s c h e d u le .



A W e s te r n

M u tu a l c o n tr a c t is a v a lu a b le a sse t to an y
liv e h a n k in g in s titu tio n .

W r ite to d a y f o r

c o m p le t e in fo r m a t io n .

"Safety and Service with Savings"



Yes. The rule appears to be estab­
lish ed th at exp en ses and atto rn ey s’
fees incurred in good faith in proceed-

N orthw estern Banker
Federal Reserve Bank of St. Louis

D ecem ber 1939

in gs to restore the capacity of one w ho
has been adjudged in com petent m ay be
charged again st th at p erson ’s estate,
w h en such fees and ex p en ses w ere rea­
sonably n ecessary, w h eth er or not the
proceedings have been su ccessfu l.


0 YOU have a problem in
connection with your transit
Do your custom ers give you
docum entary drafts that you
find it difficult to collect?
Is your present method of han­
d ling out-of-town items such
as to cause you work, time,
and expense th at you would
like to avoid?
These are questions to which
we th in k our continuously
operating tran sit and collec­
tion department has found the
... T H E ...

O R G A N IZED 1803

Capital, Surplus and Undivided Profits
$ 4 1 ,0 0 0 ,0 0 0
Member of Federal D eposit Insurance Corporation

N orthw estern Banker
Federal Reserve Bank of St. Louis

D ecem ber 1939

Jackson, a banker, obtained a fire in­
surance policy on his home. The pol­
icy contained a provision, w hich is
found in m any, to th e effect th at, if
o th er sim ilar in surance w as obtained
on th e sam e p ro p erty w ith o u t the in­
s u re r’s consent, th e in su ran ce obtained
by th e b an k er w ould be invalidated.
S hortly th e re a fte r th e b a n k e r’s son,
w ith o u t th e b a n k e r’s know ledge or
p rio r assent, also bought fire insurance
on th e place. Still later th e banker,
overlooking th e provision in th e policy
obtained by him , ratified th e p rocure­
m ent of th e insu ran ce by his son. W as
th e in su ran ce originally procured in ­
Yes. W here one h a v in g a p olicy of
in surance con tain in g a clause against
other in surance ratifies a second policy
issued w ith ou t h is k now ledge or prior
assent, such ratification valid ates the
unauthorized policy, so th at it con sti­
tu tes other in surance, and the in sur­
ance first obtained is thereby in v a li­
dated. H old in gs to th is effect are to
be found in W isconsin, M issouri, Kan­
sas, K entucky, L ouisiana, and Texas.

(C ontinued from page 15)
been F ra n k lin D. Roosevelt, Theodore
Roosevelt, H erb ert H oover, W illiam
H ow ard Taft, W illiam Jen n in g s Bryan,
and Senators Borah of Idaho and Jo h n ­
son of California.
One of th e p rincipal features of the
Corn Palace celebration is th e street
show. Seven blocks of Main street
th ro u g h the business district, from the
M ilwaukee depot to S eventh avenue, a
block beyond th e Corn Palace, are
roped off and occupied, form ing one of
th e longest stre e t show s in th e U nited
D uring th e rem ain d er of th e year,
th e Corn Palace serves as a convention
hali, and is also th e scene of basketball
to u rnam ents, m usic festivals, th e an ­
nual P re sid e n t’s Ball, th e C harity Ball,
and o ther im p o rtan t functions. B ut its
p rim a ry purpose is alw ays in evidence,
and it rem ains th e only large public
building w hose sole decoration, inside
and out, is ears of corn saw n length­
w ise and arran g ed to form pictures and
sym bols by th e v ary in g shades of the
Mr. P atto n advises th a t d u rin g this
p ast sum m er, from Ju n e u n til A ugust
30th, m ore th a n 35,000 persons had reg­
istered and inspected th e building.

Favorable Economic
Factors Seen in Continued

Demand for Durable Goods
UR index of business activ ity re ­
corded a n o th e r sh arp advance
for October. T he O ctober in ­
dex w as 104.5, as ag ain st 98.4 for Sep­
tem b er and 87.9 for October, 1938.
Several in d u stries established new
high records in October. Steel ingot
p roduction w as th e h ig h est on record.
Zinc consum ption, seasonally adjusted,
w as th e h ig h est on record, an d al­
th ough no statistics are available, it
w as reliab ly rep o rted th a t m achine
tool orders have recen tly reached
h ig h er levels th a n ever before. Cotton
and ru b b e r consum ption, seasonally
adjusted, cam e w ith in a sm all dis­
tance of m aking new high records for
all tim e.
T his rem ark ab le expansion co n tin ­
ued in N ovem ber, th o u g h possibly at
a som ew hat slow er rate. By th e m id­
dle of th e m o n th it w as estim ated th a t
th e F ed eral R eserve B oard’s index of
in d u stria l production, w hich, unlike
our b u siness index, is u n ad ju sted for
long-tim e tren d , had reached about 125.
The h ig h e st level p reviously reached
w as 126 in Ju n e, 1929, so th a t th e re is
h ard ly any doubt th a t th e index w ill
reach a new high record before th e
end of th e year.
T h ere continued to be considerable
ap p reh en sio n in some circles re g a rd ­
ing in ventories. T he D ep artm en t of
Commerce, o th er g o v ern m en t b u reau s
and m an y p riv ate individuals issued
w arn in g s over th e dan g ers of overexpanded in v en to ries as a re su lt of th e
ru sh to place fo rw ard orders a fte r th e
o u tb reak of w ar. T hese w arnings, of
course, w ere issued w ith th e b est in ­
tentions. T hey w ere based, how ever,
on th e assu m p tio n th a t in v en to ries
h ad actu ally in creased sh arp ly in Sep­
tem ber, w hereas, as a m a tte r of fact,
th e available statistics failed to su p ­
p o rt an y such assum ption. M anufac­
tu r e r s ’ sales, in an y case, expanded
m uch m ore rap id ly th a n in v en to ries
increased, so th a t so fa r as th e im m e­
diate fu tu re is concerned th e re a p ­
pears to be no basis for serious w o rry
over in v e n to ry problem s.
P a rtic u la rly is th is tru e in view of
th e b re a d th of th e p re se n t phase of th e
recovery m ovem ent. Since 1932 v a ri­
ous u p w ard m ovem ents in in d u stria l
produ ctio n have h ad a com m on weak-

Federal Reserve Bank of St. Louis

P repared fo r

by an organization of

leading economists

ness, nam ely, insufficient dem and for
p ro d u cers’ durable goods; b u t today
dem and for durable goods is th e o ut­
standing featu re of th e m ovem ent.
W hen pro d u cers’ durable goods are in
h eavy dem and th ere is, of course, no
need for w o rry in g about the dem and
for consum ers’ goods, because th a t fol­
lows as a m a tte r of course. T h at th at
is th e condition today is evident from
th e circum stance th a t activ ity in th ree
in d u stries w hich are typical of these
tw o fields, steel, autom obile and te x ­
tiles, is e ith er a t or close to th e g reatest
in history.
H ow long w ill it last? T here is still
no assurance th a t th e p resen t high
ra te of operations w ill last m ore th a n
four or five m onths, although steel
m ills are booked w ell into 1940, cotton
textile m ills are sold th ro u g h Decem­
ber, and some m achine tool m akers
are rep o rted to be booked th ro u g h
1940. T he reason for th is lack of as­
surance lies p rim arily in a curious b u t
u nm istakable state of u n c e rta in ty in
financial circles. T his is evident from
th e fact th a t although in d u strial activ­

ity has continued to expand rapidly
since th e first half of Septem ber, stock
prices have n ot m ade fu rth e r gains.
So pronounced has th e divergence be­
tw een these tw o factors become th a t it
m ay be estim ated th a t by th e m iddle
of N ovem ber stocks on th e average
w ere at least 30 per cent underpriced
on th e basis of th e ir norm al relatio n ­
ship w ith th e level of business activity.
F e a r of h eavier taxes to finance the
national defense program , rising oper­
atin g costs as a re su lt of the recen t rise
in com m odity prices and dem ands for
h ig h er w ages have been advanced as
reasons for this financial u n certain ty .
Some observers decried also th e ab­
sence of any sign of revival in th e m a r­
k et for new capital financing. B ut the
m ost plausible explanation of th e di­
vergence w as foreign selling of A m eri­
can securities, w hich, although it has
probably am ounted to less th a n 10 per
cent of total volum e, has been p e rsist­
en t and has led A m erican investors to
w onder w h at w ould h appen to stock
prices if for any reason, such as a tu rn
for th e w orse in th e E u ro p ean situ a­
tion, th e volum e of foreign selling
should increase. A lthough m ost A m er­
ican in d u stries can absorb increased
costs caused by h ig h er wage rates as
long as dem and is as active as a t p re s­
ent, some investors, m oreover, w ere
(T u rn to page 28, please)


The Month s Market Maneuvers


Prepared for Î H E N O RTH W ESTERN B A N K ER by J A M E S H. C L A R K E ,
Assistant Vice President, American National Bank & Trust Company, Chicago

A RK ETS w ere quiet in No­
vem ber—a continuation of
th e lack of activ ity w hich charac­
terized October. W hile th e tem po
of th e w ar quickened som ew hat
w ith increased a ir raids and de­
stru ctio n of boats—th e stock
m ark et, w h i c h
th riv e s on such new s, w ent
down. A nd G overnm ents and
ja m e s h . c la r k e
o th er high grade bonds im ­
proved. D espite th e assum ption
th a t w ar is d estru ctiv e to a bond m arket.
W ith stee l a ctivity around 94.4% of capacity, com ­
pared w ith 62% a year ago—carloadings at 771,000
cars again st 657,000 w eek ly at th is tim e la st year,
and both autom obile production and electric output
sh ow in g good gain s—the stock m arket averages are
about the sam e as in N ovem ber, 1938. The N ew
York T im es’ W eekly In d ex of B u sin ess A ctiv ity is
around 107— last year it w as ap proxim ately 90—
the F ederal R eserve Board In dex is around 120 (the
exact figure for N ovem ber w ill not be available u n til
late D ecem b er)—in 1938 it w as 103. B ut the DowJon es average for in du strial stock s, Avhich h it 155.92
on Septem ber 12th in the sharp rise w h ich follow ed
the declaration of w ar, is about 148.50 as w e Avrite
th is the m orning of N ovem ber 27th.

T hen, too, earnings reports have been m u ch bet­
ter. D uPont, in the first n ine m o n th s earned $5.19
per share— in last year’s sim ilar period, $2.31. Union
Carbide $2.10 against $1.48—W estin g h o use $3.39
com pared w ith $2.32—General M otors $2.39 against
$0.73. A n u m b e r of com panies have d istributed lib­
eral dividends— others have renew ed theirs. Gen­
eral E lectric, General M otors, A m erican L ig h t and
P ow er are exam ples of larger dividend payers—
Pure Oil a case of renew al— but in no case have
these p a ym en ts m ade any real im p ro v em en t in
prices. A n d in the face of th e passage of the A rm s
Em bargo A ct, and large w ar orders fo r planes, the
aircraft stocks have declined. I n the face of all this
it w ould appear th a t the stock m a rket, w h ich year
in and year out is a fa irly accurate appraiser of con­
ditions, is w rong this tim e— but is th a t the case?
There are a n u m b e r of other factors to consider, a
fe w of w h ich w e m en tio n ed in last m o n th ’s article.
F o r in stan ce—business is probably ru n n in g ahead
of actu al consumption-—inv en to ries are being built
up—stocks in w a r tim es sell at a m ore conservative
ratio to earn ing s th a n in peace tim es—to enum erate
a few factors w hich b rin g caution now. T hen, too,
th e re is selling from abroad—not c u rre n tly large b ut
Federal Reserve Bank of St. Louis

com ing in each day—our foreign trad e has been
badly d isru p ted by th e w ar and changed m aterially
by th e A rm s E m bargo Act. F oreign buying from
E ng lan d and F ran ce has been m oderate except for
airc ra ft—and w ith th e w ar considered a “fu n n y ”
one by business th ere is a h esitancy to seek w ar
orders. P erhaps, th e recen t feelers for new taxes to
cover our ow n arm am en t p rogram have also dis­
couraged buyers of stocks.
T he fact th a t th e S. E. C. rep o rts show ed selling
in th e Septem ber rise by officers and directors of
com panies m ay possibly be in te rp re te d as lack of
faith in th is boom on th e p a rt of th e “in sid e rs”. At
lease the stock m a rk e t has acted poorly since Sep­
tem ber 12th—th e daily averages show th a t in cold
h ard figures—m aybe some of th e developm ents
m entioned above have played a p a rt in it.
T h e G o v e r n m e n t b on d m a r k e t d isr e g a r d ed th e
w a r in O ctober— a s w e ll a s th e a n n o u n c e m e n t th a t
th e T r e a su r y Avill r a ise $500 m illio n in ca sh . T h is
sh o u ld b e o u t o f th e w a y b y th e tim e th is a rticle
is p rin ted . T h e r e is e v e r y re a so n to b e lie v e th e offer­
in g Avill b e s u c c e s s fu l— a n d if th is is tr u e w e m ay
e x p e c t a r e fu n d in g o f th e $1,378 m illio n 1%% N o te s
d u e M arch 15, 1940, so m e tim e e a r ly in D e cem b er.
T aato e x a m p le s w ill sh o w th e g e n e r a l im p r o v e m e n t
in th e p a st th ir ty d a y s. On O ctob er 25th , th e 214s of
1952/50 Avere 103.10 b id — N o v e m b e r 25th th e bid
Avas 104.18. On s im ila r d a te s th e b id s o n th e lo n g
2%s o f 1965 AAere 103.18 an d 104.29 r e s p e c tiv e ly . T h e
h ig h g ra d e co rp o ra te m a r k e t Avas a lso str o n g . T h e
C o m m o m v e a lth E d iso n 314s, AAhich AAre m e n tio n e d
la s t m o n th a t 107% , are a b o u t 110 as w e Avrite th is —
is s u e s o f co m p a ra b le q u a lity h a v e s h o w n sim ila r
g a in s.
S e c o n d g ra d e b o n d s, d e sp ite g r a tify in g g a in s in
e a r n in g s, e sp e c ia lly n o tic e a b le in th e r a ils— folloAved
th e c o u r se o f th e sto c k m a rk et. I t w ill ta k e a c o n ­
tin u a n c e o f g o o d e a r n in g s to a ttr a c t im p o r ta n t b u y ­
in g in to th is field.

The first corporate offering of any size w ill m ake
its appearance tom orrow , $52,500,000 of Public S erv­
ice of Colorado— bonds and debentures— w ill be
sold. Dealers are optim istic as to the reception—
but all this w ill be past h istory w h e n yo u read this.
The im p o rta n t factors, how ever, aside fro m the
sucess of the issue itself, are the testin g of this
m a rket for the first tim e in over tw o m o n th s and
the am ount of other financing w ill be released if
this goes over.
(T u rn to page 27, please)



(C ontinued from page 26)
W ith D ecem ber before us, m ost
business indices, w ith th e exception of
d e p a rtm e n t store sales, m ay be ex­
pected to decline. The gen eral p a tte rn
of b u siness is not im p o rtan t, how ever,
for th e n e x t th irty days—we shall
have to w ait u n til th e outlook for
early 1940 becom es clearer. W ith these
u n c e rta in tie s before us, in v esto rs a p ­
p ear to be m ore in te re ste d in a sure
incom e th a n quick profits.

Director and Treasurer
Follow ing a long established p rece­
dent of M inneapolis-M oline Pow er
Im p lem en t Com pany to prom ote m en
from th e ra n k s to executive positions,
S. L. A ngle has been elected d irector
and tre a s u re r of th e M inneapolis-M o­
line P ow er Im p lem en t Com pany by
th e board of directors. He also w as

and in contacting all the various com­
pany branches. In his position as as­
sistan t au d ito r and au d ito r he has for
years had charge of not only th e reg ­
u la r accounting departm ents, b u t also
has had m uch to do w ith factory costs
and production schedules. He is well
know n th ro u g h o u t th e M inneapolisMoline organization because from
tim e to tim e he has visited various
branches on business.

Iow a guests. The cam paign, w hich
lasted tw elve w eeks, provided prizes
for agents qualifying by w ritin g new
D uring th e tw elve w eeks of the
cam paign m ore th a n 240 Iowa agents
qualified by producing new business.
“The cam paign w as one of the best
producers we have had in our tw en ty
y ears in Des M oines,” Alex R. Nelson,
p resid en t of H aw keye reports. “In the
tw elve w eeks of its operation m ore
th a n 240 agents in Iowa who qualified
produced m ore th a n $27,000 w o rth of
new business. Before the final resu lts
of th e cam paign are totalled w e ex­
pect the total to exceed $30,000.”

Campaign Concluded
The H aw keye C asualty Com pany
of Des M oines has ju st com pleted a
C hristm as “Sell-ebration am ong its

Federal D iscount
Dubuque, Iowa

A utom obile Finance
Time Payment Plans for
Automobile Purchasers



Capital, Surplus and U ndivided Profits
Exceed One M illion Dollars



S. L. A N G L E

appointed co n tro ller of th e com pany.
Mr. A ngle en tered th e accounting
d e p a rtm e n t of th e M inneapolis Steel
and M achinery Com pany, one of th e
predecessor com panies of th e M inne­
apolis-M oline P ow er Im p lem en t Com­
pany, in 1920. He w as appointed to
th e position of assista n t au d ito r of
th e fo rm er com pany in 1924, an d in
1928 he w as m ade auditor. Mr. A ngle
becam e th e au d ito r of th e M inneapolisMoline P ow er Im p lem en t Com pany
im m ediately a fte r its o rganization in
1929, w hich position he held u n til his
recen t election to th e office of tre a s ­
u re r and d irecto r to succeed th e late
W. S. Peddie u n d e r w hose direction
he served for m an y years. He h as wide
experience in both th e Hom e Office

Short Term

Collateral Trust Notes
Notes Secured by Collateral Under Trust
Agreement With American National
Bank and Trust Co., Chicago, III.
m m ■

Inform ation on Request

N orthw estern B anker
Federal Reserve Bank of St. Louis

D ecem ber 1939

P resid en t N elson fu rth e r said th a t
H aw keye C asualty prem iu m ratin g s
for the first ten m o n th s of 1939
am ounted to $627,000 as com pared to
$514,000 for th e sam e period a y e a r
ago. He added th a t th is year, for th e
first tim e, th e com pany’s to tal assets
have passed th e $1,000,000 m ark.

Retirement Plan
T he m an ag em en t of The Chase N a­
tional B ank is info rm in g its em ployes
th a t as a re su lt of recen t am endm ents
to th e F ed eral Social S ecurity Act ex­
ten d in g th e old-age benefits th e re ­
u n d er to em ployes of natio n al b anks
as of J a n u a ry 1, 1940, th e b an k is





alterin g its own retirem en t and in ­
su rance plan in such m an n er th a t the
com bined benefits u n d er th e plan and
th e Social S ecurity Act w ill afford re ­
tire m e n t allow ances com parable to
those provided for by th e p resen t plan.
The notice states th a t am endm ent
of th e plan w ill not affect retirem en t
an n u ities already p u rchased or the
rig h ts of em ployes w ith respect to a n ­
n u ities w hich m ay be p u rchased by
th e b ank on account of service p rior
to Ju ly 1, 1933. B oth th e non-contrib u to ry and co n trib u to ry group life
in su ran ce in force on th e lives of
Chase em ployes w ill be continued
w ith o u t change.



\ i l T I M


V y





appliances for refrigeration and air


lighting, pow er

and heating equipm ent;



— foreign made autom otive vehicles.

The business consists of investments in
self-liquidating credits, widely diversi­
fied as to region and enterprise, capital
employed being in excessof $80,000,000.




N orthw estern B anker


high school and college years. His ex­
perience at th e Com m erce dates back
to 1925 w hen he w as em ployed in the
new business departm ent. H is experi­
ence also includes several y ears in the
operation of th e savings and school
savings d ep artm en ts and installation
and operation of th e sm all loan d ep art­
m ent. In 1936 he becam e rep resen ta­
tive for th e b ank in K ansas.
“W in ” says th e W orld W ar No. 1
w as called off a few m onths afte r it
w as learned th a t he joined th e arm y
and blam es th a t experience for his
lack of h irsu te adornm ent. He adds
th a t m aybe he had b e tte r join up again
and get the p resen t arg u m en t settled.

In obtaining short term accommodation,
GMAC issues one standard form of note.
This obligation it offers to banks and in­
stitutions, in convenient maturities and
denominations at current discount rates.

are available, in limited amounts, upon request.

Federal Reserve Bank of St. Louis

W inston R. Tate, assistan t cashier
of th e Com m erce T ru st Company,
K ansas City, has become trav elin g rep ­
resen tativ e in N ebraska. “W in ”, as he
is know n, has rep resen ted his bank in
K ansas for th e p ast four y ears and will
now trav el in the tw o States.
Born in K ansas City, he attended
the U n iversity of K ansas, having been
em ployed in a sm all b ank d uring his


is engaged primarily in facilitating
wholesale distribution and retail sales
of the following products of General
Motors Corporation and its world'
wide affiliates: Cadillac , la salle ,

To Travel Nebraska

D ecem ber 1939

(C ontinued from page 25)
w ondering w h at th e ultim ate conse­
quences w ould be in th e event th a t one
re su lt of th e p re se n t situ atio n w ere a
still h ig h er and p erm an en tly h igher
level of w age rates.
If, on th e o th er hand, th ese fears
could by any m eans be dissipated,
stock prices w ould probably rise and
th a t w ould alm ost autom atically b ring
about a good m a rk e t for new capital
issues. In th a t event th e co u ntry
w ould be clearly in a position to enjoy
a considerable period of active busi­
ness conditions.


(C ontinued from page 13)
b u t subm issive to th e a p p a re n t fact
th a t we m u st comply.
“W e gave 45 m in u tes at each of our
recen t state-w ide circu it of G roup
m eetings to th e consideration of th is
m atter. Our m eetings w ere too large
to p erm it satisfacto ry round-table dis­
cussion b u t we did m ake certain rec­
om m endations at each.
“Our A ssociation officers have been
adverse to recom m ending an y p ro ­
gram of reduced hou rs open to th e
public. T here w ere num ero u s dem ands
for th is in th e in te re st of u n ifo rm ity of
practice th ro u g h o u t th e state. W e rec­
ognize such adv antages b u t th e re are
so few privileges left w h ereb y th e
b a n k e r m ay exercise his ow n ju d g ­
m en t th a t we felt it b e tte r to allow th e
b a n k ers locally to reach th e ir own
conclusions and so advised them . H ow ­
ever, on th e date of each G roup m eet­
ing we did assem ble sep arately in th e
county association officers for discus­
sion on th is problem . T h ere w as a p re ­
ponderance* of favor to closing S a tu r­
day afternoon, w h ere aftern o o n closing
seem ed advisable. The m in o rity m em ­
bers felt v e ry keenly th a t S atu rd ay
aftern o o n w ould be th e w o rst day to
close, th is applying w h ere trad e h a p ­
pens to be heavy on th a t afternoon.
One o th er preferen ce on th e p a rt of a
m ajo rity w as th a t any daily reduction
in open h o u rs be th ro u g h earlier clos­
ing in th e aftern o o n ra th e r th a n later
opening in th e m orning. To save
reh ash in g and annou n cin g an o th e r
operatin g p ro g ram a y e a r hence we
have suggested th a t any changes now
m ade be on th e basis of a 40 h o u r
ra th e r th a n 42 h o u r week.
“P ractically all of our counties are
organized into county associations and
these have been m eeting recen tly and
for th e m ost p a rt are tak in g into con­
sid eratio n th e tw o conclusions above
m entioned.
“It w ould certain ly n o t seem pos­
sible to stan d ard ize on any daily
h o u rly o peration n o r in an y one a fte r­
noon for closing by all banks.
“W e feel th a t we have quite com ­
pletely w orked out th e w hole g eneral
problem and th u s given th e local

b anks the benefit of th is inform ation
in such w ay th a t th ey could act locally
w ith in th e ir county association. At any
rate, th is m a tte r has had quite com­
plete a tten tio n by th e banks in K an­

So far th ere has been no uniform
plan of opening and closing hours sug­
gested to th e m em bership, says W il­
liam D uncan, Jr., secretary of the M in­
nesota B ankers Association. Mr. D un­
can feels it m ight be b e tte r to let the
b anks m ake individual attem p ts to
com ply w ith the W age and H our Law,
and th e n from th is experience will

come a plan of some k ind th a t can be
followed by all. He w rites:
“In reg ard to th e W age and H our
Law, w ill say th a t th ere is an effort
being p u t fo rth by th e banks in this
state to com ply w ith th is law, b ut
th ere is no unifo rm ity in th e program
as far as ru ra l ban k s are concerned.
In some sections of th e state banks are
closing S aturday noon.
“W e are constantly suggesting
“stream lin in g ” banking operation p ro ­
gram s so th a t th e law m ay be com­
bed w ith, and still give as m uch serv ­
ice to th e public as can possibly be
given w ith in the h o u r provisions
u n d er th e law.


O bligations representing public taxing
power are inherently conservative in c h a ra c­
ter. That is why municipal bonds are such
a deserving fa cto r in a bank's investment
program .
For 22 years the W hite-Phillips Corporation
has specialized in municipal bonds.
this time we have helped hundreds of banks
with their investments.
W e invite you, also, to benefit from our
experience and cooperation.



Investment Bankers
Federal Reserve Bank of St. Louis


N orthw estern B anker

D ecem ber 1939

“We have not, as yet, suggested a
unifo rm plan and I am inclined to
th in k th a t we w ill not do so u n til th e
banks have had some experience in
th e ir own a ttem p ts to com ply w ith the
law, and begin to realize th e difficulties
encountered. As th e saying goes, “it
is h a rd to teach an old dog new tric k s,”
and it is m y opinion th a t we m u st go
th ro u g h a period of visual education
before we a rriv e at a point w here th e
average b an k o p erato r w ill appreciate
th a t sh o rte r b an k in g h o u rs is th e only

W. F. K eyser, se cretary of th e Mis­

souri A ssociation, is probably rig h t
w hen he says about all th a t can be
done w ith th e problem so far as his
office is concerned, is to recom m end,
since th e re ap pears no w ay to enforce
u n ifo rm ity of action. Some banks in
M issouri, he says, have adopted th e
custom of closing S atu rd ay afternoon,
o thers have changed th e ir h o u rs d u r­
ing all th e w eek days, and still oth ers
have tak en no steps a t all to w ard
sh o rten in g hours, seem ing, as Mr.
K eyser says, not y et to be im pressed
w ith th e necessity of th e ir com plying
w ith th e law.
E x cerp ts from tw o bulletin s m ailed
by Mr. K eyser to th e M issouri m em ­
b ersh ip read as follows:

“A fter a full discussion of th e m atter
th e Council of A d m inistration and
group secretaries voted to recom m end
th e ad visability of S aturday tw elve
o’clock noon closing by th e banks and
tru s t com panies of th e S tate as one
m eans of com plying w ith th e W age
and H our Law. F o r th e sake of u n i­
fo rm ity and to obviate any doubt as
to th e legal status, it is suggested th a t
noon closing be confined to S aturday
of each week.
“Since June, th is question has been
discussed a t th e m eetings of several
county b an k ers associations w ith the
re su lt th a t a su b stan tial num ber of
co u n try banks are now closing a t
noon on S aturday w hile o thers have
announced th e ir in ten tio n to do so at
specified dates in th e n e a r future.
B anks in th e cities and m ost of the
larg er tow ns have been follow ing the
practice a long time.
“R eports reaching us from banks
th a t close S aturday noon each w eek
are u nanim ous to th e effect th a t the
public has responded to th e practice
w ith little or no criticism . U niform ity
in th is m a tte r is highly desirable and it
is hoped th a t w h erev er th e custom of
closing half a day each w eek is fol­
lowed, S aturday afternoon w ill be
given th e preference.”

B A N K E R : “Legally, Mr. T hom as, w e are in n o w ay
liab le for lo ss on a 'N o -a cco u n t’ check. B ut perhaps
w e can h elp you. A t least w e can qu ick ly find ou t
to w h om the check w as origin ally issued. T hat may
lead to a c lu e.”
M R .T H O M A S: (Surprised) “I th o u g h t anyone cou ld
com e in and g e t a ch eck b o o k .”
B A N K E R : “N o t in this bank. W e use a nu m bering
system . A ll ch eck s w ith o u t cu stom er’s im print are
sig n ed for. I’ll have a rep ort in a jiffy, then w e can
p h o n e the man h im self.”
M R. T H O M A S: “T h is certainly giv es m e a new
co n cep tio n o f your care and th o ro u g h n ess.”
Can your bank afford Safety N u m b erin g? Can you
afford not to have it? It isn ’t costly. W rite for details.

A surv ey is now being conducted
am ong M ontana banks, according to
E th el W . W alker, secretary -treasu rer
of the M ontana B ankers A ssociation,
in w hich she is asking w h at ho u rs the
banks are staying open to th e public,
and o th er questions relatin g to the
provisions of th e W age and H our Law.
Mrs. W alker says:
“A nu m b er of our larg er banks have
reduced th e ir open ho u rs from 10 to 2,
w here form erly th e y w ere from 9:30 to
2:30. Some banks are try in g to stagger
hours of em ploym ent, some are adding
additional em ployes, some are w atch­
ing ho u rs as closely as possible and
w here necessary paying th e overtim e.
H ow ever, th ere is no uniform practice
followed y et in M ontana. It is going
to be a v ery difficult situ atio n for our
sm all co u n try banks w hich have been
rem aining open for long hours to ac­
com m odate farm ers.”

T he N ebraska A ssociation is not
plan n in g to ru sh its m em ber banks
into any one uniform plan so far as
closing tim e is concerned, according
to W illia m B . H u g h e s , secretary. In
th e m eantim e Mr. H ughes has a su r­
vey on th e m a tte r u n d er way.
“The officers of this A ssociation,”
w rites Mr. H ughes, “believe th a t the
a tta in m e n t of one u n iform practice in
o rder to com ply w ith th e W age-H our
law w ill be a fairly long-drawn-out
“T hey w ould look dubiously at any
suggestion th a t th e A ssociation a t­
tem p t to ru sh all m em ber banks into
some one plan such as all closing every
S aturday afternoon.
“D iscussions of th e problem have
been prom oted in our Regional Clear­
inghouse m eetings and at th e S tate
“Our officers believe th a t w ith in a
reasonable tim e some m ore or less
uniform practice w ill em erge and th ey
in ten d to help all possible in th is pro­
cess w ith o u t attem p tin g to h u stle any­
“Our new officers got to g eth er for
the first tim e at A ssociation h ead q u ar­
te rs last m onth, and am ong th e m at­
te rs decided w as th a t we tak e a survey
of our banks at th e earliest possible
tim e to determ ine if any one practice
is in th e lead.”

North Dakota

Lithographers and Printers
Plants a t

N orthw estern B anker
Federal Reserve Bank of St. Louis

D ecem ber 1939



C. C. W a tta m , secretary of th e N orth
D akota B ankers A ssociation, advises
th a t various groups in his S tate have
been discussing th e AVage and H our
situation, and some recom m endations
have been made. H e says:
“The question of th e w age and hour
law w as discussed at recen t group


(C ontinued from page 11)
m erited. C ertainly, you w ill concede
me th a t “L et th e b uyer b ew are” is no
longer to be considered sm art cus­
tom er-relations. “T reat every custom er
fairly and alike” w ill come n earer to
obtaining th e desired results.
It m ight also be w ell to rem em ber
th e adm onition of Jo h n D. R ockefeller:
“N ext to doing th e rig h t thing, th e
m ost im p o rtan t th in g in th e w orld is to
let th e public know you are doing th e
rig h t th in g .”

Three Judgments
I t m ay su rp rise you to know th a t
your custom er does not form a single
judgm ent about you or about your
business as you re p re se n t it to him .
A ccording to th e observations of o ut­
stan d in g co n sultants of national re ­
pute, your custom er form s th ree sepa-

Public U tility




South Dakota
C om petition by G overnm ent lending
agencies, w hose activities are not su b ­
ject to lim itatio n of th e W ages and
H ours Law, is m entioned by George
M . Starring, se cretary of th e South
D akota A ssociation, as affecting the
situ a tio n in his State. He says:
“No concerted action has been tak en
by th e b anks in our sta te in order
to com ply w ith th e law. T he subject
has been discussed in ten or fifteen of
ou r b u lletin s and we believe m ost of
th e b an k s have e ith e r reduced th e ir
hours, h ired additional help, or are
paying overtim e. Some of th e b anks
are opening at a la te r h o u r and closing
earlier and we believe a few of them
are closing on one aftern o o n a week.
The W age and H o u r L aw w as dis­
cussed at each of our seven group
m eetings th is fall b u t n o th in g w as
accom plished to w ard stan d ard izin g
h o u rs open to th e public. A lthough
som e b an k ers w ould have liked to
stan d ard ize h o u rs for th e ir ow n group,
m ost of those in atten d an ce a t th e
m eeting expressed a desire to w ork
out th e ir ow n h o u r problem s. T his
m ay be a ttrib u te d to the fact th a t cus­
to m ers m ake different dem ands u p ­
on b anks in vario u s com m unities
th ro u g h o u t th e state. T here seem s to
be little th a t th e A ssociation can do
now, since th e b an k s have expressed
them selves as q uite g enerally in favor
of w ork in g out th e ir ow n problem s in
th is connection. W e had hoped th a t
som e u n ifo rm h o u r redu ctio n a r­
ran g em en t w ould evolve out of th e
G roup m eetings. I t is probably not
necessary for state-w ide or G roup
stan d ard s to be set up b u t com ­
p etitiv e b an k s should w o rk out u n i­
form opening and closing h o u rs if
th e y w ould avoid custom er and public
criticism . Some b anks do not w ish to
reduce h o u rs fu rth e r because th ey
w ould th e re b y reduce th e ir com peti­
tive stan d in g w ith th e gov ern m en t
lending agencies w hich have already
gained q uite a foothold. G overnm ent
lending agencies are not subject to th e
W age and H o u r Act so m ay d isregard
its provisions an d rem ain open to th e
public a su b sta n tia l n u m b er of ho u rs
d u rin g th e day w ith o u t in c u rrin g addi­
tional salary expense.

P arap h rasin g th e S criptures, we can
p u t it in an o th er w ay:
“L et y o u r light so shine am ong m en
th a t th ey m ay see y o u r good w orks
and glorify th e in d u stry of w hich you
are a p a rt.”



m eetings h ere in th e state. The so u th ­
w e ste rn g roup voted to recom m end to
all th e ir b an k s th a t th ey close on Sat­
u rd a y afternoons. O ther g roups failed
to get to g eth er and adopt an y un ifo rm
practice w ith reference to it, th e dis­
cussion indicatin g th a t it w as a local
problem w hich every b an k m u st solve
for itself, and th a t conditions in differ­
en t localities w ere not such as to m ake
a un ifo rm p ractice th ro u g h th e state
possible or desirable on th e p a rt of all.”


1 0 0 W est M o n r o e S tr e e t, C h ica g o — T e l. F r a n k lin 8 4 0 0
N ew Y o r k

M ilw a u k e e

R e p r e s e n ta tiv e s :

W a te r lo o

O m aha
D e s M o in e s

B o s to n
C ed ar R a p id s

S e c u re d b y F H A I n s u re d M o rtg ag e s
h e ld u n d e r T ru s t I n d e n tu r e
C e n tr a l N a tio n a l B a n k & T ru s t C o m p a n y , D es M o in es, Io w a , T ru s te e

M o r tg a g e I n v e s tm e n t C orp oration
825 Fleming Bldg.
Des Moines, Iowa

Dallas, Texas— Des M oines, Iowa— Houston, Texas—Tulsa, Oklahoma

N orthw estern Banker
Federal Reserve Bank of St. Louis

D ecem ber 1939

And bear in m ind th a t he is often con­
fro n ted w ith having you as a neighbor
w h e th er he w ants to or not. In th is
set of judgm ents, th e courtesy and the
o th er neighborly qualities you show
are im portant.
The th ird set of judgm ents w hich
y o u r custom er form s about you have
to do w ith you as a citizen. And you
are no o rd in ary citizen like Jo h n
Sm ith. You are a citizen of such great
im portance th a t your activities and
w elfare are as m uch a m atter of n a ­
tional concern as the w elfare and activ­
ities of our arm y or our navy. T ran s­
lated into local term s, you are re ­
garded as being able to help or h u rt
your town.
Your custom er has definite reactions
as a borrow er, as a depositor; definite
prejudices as a neighbor and equally
definite ideals as a citizen. And he is
judging you as a provider of a service
he needs; as a neighbor he has to live
w ith; and as a citizen.
Cross tabulations m ade of recen t cus­
tom er surveys, provide a v ery in te r­
esting discovery:
F irst. T h at people have v ery defi­
n ite ideas as to w hich business o rgani­
zation gives it th e m ost courteous
tre a tm e n t and w hich gives it th e least
courteous treatm en t.
Second. T hey have v ery definite
ideas as to w hich is th e m ost active
and w hich is th e least active in p ro ­
m oting th e civic interests.
T hird. In those com m unities, w here
th e business organization had th e h igh­
est ra tin g for being a good neighbor,
as exem plified by courteous treatm en t,
and for being a good citizen, as exem p­

rate ju d g m en ts about you and your
business, and w h at he finally th in k s is
a com posite of all of th ese judgm ents.
In th e first place th e re is th e ju d g ­
m ent he passes on you w h en he th in k s
of his relatio n s w ith you on a strictly
business (or across th e counter) basis.
In th is judgm ent, y o u r policies as to
loans, in te re st on loans, in te re st on de­
posits, service charges and a h u n d red
and one o th er m a tte rs are extrem ely
im portant.
B ut th e custom er also form s a set of
judg m en ts about you as a neighbor.

R E Crum

m er

&Co m



Established 1897

508 In su rance B uilding
M. T. C r u m m e r , Mgr.
314 Equitable Bldg.
W a l t e r P. D a v i s , Mgr.

S h a w , McDermott &Sparks
Investment. Securities
Suitable for Investment of Banks,
Institutions and Trust Funds

307 Equitable Bldg.


Phone 3-6119

lified by activity in prom oting th e w el­
fare of th e city and its trad e territo ry ,
th ere w as th e least desire for su b sti­
tu te service and in fact, th e least com­
plaints and criticism .

Everyone a Salesman
E v ery m an and w om an connected
w ith a business organization today is
a salesm an. E very b an k er or bank
em ploye here present, is a salesm an.
Today’s — and increasingly tom or­
ro w ’s — concept of business and of
b anking is to sell a service.
C ustom er satisfaction in th a t service
is th e goal tow ard w hich all business
is striving.
To w in and hold friends for the busi­
ness we rep resen t, is th e m ain task
and responsibility of salesm en. All of
us know th a t we have to w in a friend
before we can w in a sale, and th a t we
have to hold th a t friend if we ever ex­
pect to rep eat and sell him again.
A salesm an never forgets a custom er
and nev er lets a custom er forget him.
The tru e m easure of our w o rth as in ­
dividual salesm en and as a selling o r­
ganization is th e m easure of our suc­
cess in m eeting this responsibility in
all our relations w ith our public.
“Delayed service,” “stalling,” “for­
gotten prom ises,” “indefinite inform a­
tion,” “buck passing,” “neglect or slow
handling of com plaints,” “slow re ­
sponse to custom er com m uniations,”
all m ean trouble for yo urself and for
your business organization, w h ereas—
good custom er contacting opens the
w ay to acquaintance; acquaintance
leads to friendliness; friendliness
m akes for u n d erstan d in g and respect;
u n d erstan d in g b r e e d s confidence;
w hile ignorance breeds suspicion and
m istrust.
Your public definitely believes th a t
your ch aracter as an individual reflects
th e ch aracter of th e m anagem ent of
your business.
Individually, we m u st recognize th a t
good public relatio n s do not ju st h ap­
pen — th ey are cultivated and they
grow. T hey are not th e fru it of one
d ay ’s w ork—b u t th e product of many.
If you and I would w in th e confi­
dence of our public, we m ust be pos­
sessed of tw o essential qualifications:
F irst, w e m u st feel a genuine confi­
dence in our respective business and
its m anagem ent.
Second, we m ust at all tim es be hon­
est, sincere, courageous, sym pathetic,
patient, a good neighbor and a good
T h at is w h at I expect from m y bank.

Ned—T h at g u y ’s business gets in
people’s hair.
Ted—W h at does he do?
Ned—M anufactures h a ir tonic.

N orthw estern B anker
Federal Reserve Bank of St. Louis

D ecem ber 1939



schooling. In d istrict court at Omaha,
Miss S ch u rm an ’s suit had been dis­
m issed by Judge Rine.

Investm ent Bankers

Organized 1920
P r e s id e n t
Li nco ln

proposal th a t D ouglas county, of
w hich Om aha is county seat,
tak e over th e Ak-Sar-Ben an d South
O m aha bridges and co n stru ct one in
F lorence (su b u rb an d istric t to th e
n o rth ) w as m ade recen tly to th e
county board by Stranahan, H arris &
Co., Toledo, Ohio, in v estm en t firm.
T he proposal w as m ade by th e com ­
p a n y ’s Om aha rep resen tativ e, M. M.
M eyers. A co n tract w as subm itted, of­
ferin g to finance th e deal u n d e r a
choice of vario u s proposals.
The com pany offered to buy bonds
of th e Ak-Sar-Ben and South Om aha
bridges a t p a r and fu rn ish th e m oney
to build th e o th er span suggested. In ­
te re st rate, M eyers said, probably
w ould be “som ething u n d e r 4 per
T he proposal w as re fe rred to C ounty
A tto rn ey E n g lish and th e b o ard ’s a u ­
ditor, for stu d y and rep o rt.


A $600,000 profit claim ed to have
been m ade on th e sale of th e South
Sioux City, N ebraka, bridge to Da­
ko ta county, N ebraska, w as th e basis
of a su it filed recen tly in d istrict court
a t O m aha ag ain st S tran ah an , H arris
& Co.
The su it w as b ro u g h t by Carl H.
Cook, Glenwood, Iowa, atto rn ey ; G. A.
Royal, Des M oines atto rn ey , and R. H.
D yer of D akota county. T hey asked
$90,000, w hich, th e p etitio n alleged,
re p re se n te d th e 15 p er cent of th e n et
profit prom ised th em in a w ritte n con­
tra c t if th e bridge w as sold.
The sale to D akota county w as m ade
D ecem ber 3, 1937, for about $1,500,000,
th e p etitio n declared S tran ah an , H a r­
ris & Co. b o ught th e bridge bonds at
a discount an d la te r sold th em to Da­
ko ta county, th e petitio n asserted.
Mr. and Mrs. A. C. P otter recen tly
re tu rn e d by plane to Om aha a fte r a
tw o w eeks v isit on th e w est coast. Mr.
P o tte r is head of B urns, P o tte r & Co.,
O m aha in v e stm e n t b ankers. Mr. P o t­
te r atten d ed th e in v estm en t b an k ers
convention on th e coast.
R ay M oehn of Carroll, Iowa, w as
elected p resid en t of E ig h th D istrict

R O B E R T P. E L L I C K
Se c re ta ry
O m a ha

N ational F a rm Loan A ssociation Sec­
re ta ry -T reasu rers at a recent conven­
tion in Omaha.
He succeeded F red C. la ic h sin g e r of
Columbus, N ebraska, w ho w as nam ed
to th e executive com m ittee.
H. C. M odlin, P erry , Iowa, w as
nam ed first vice president; A ndrew
H edm an, W ebster, South Dakota, sec­
ond vice president; A nton Tresnak,
Dodge, N ebraska, reelected secretarytre a su rer.
J. S. L unn, W inner, South Dakota,
w as a n o th er new m em ber added to the
executive com m ittee. O thers w ere re ­
Miss Josephine O. S churm an of Oma­
ha recen tly w as given judgm ent for
$7,819.95 in h e r suit against h e r form er
step father, E. A. Pegau, in a m andate
issued by th e N ebraska suprem e court.
The ju d g m en t w as th e sam e as th a t
allowed by th e suprem e court in a
fo rm er ruling, now reaffirm ed by the
court, w hich overruled a defense m o­
tion for a new hearing.
Miss Schurm an sued for an account­
ing of $34,239, rep resen ted by sale of
stock in th e W estern A uto Supply
Company, w hich she alleged w as held
in tru s t for h e r by Mr. Pegau. The
co u rt allow ed Mr. Pegau credit for
m oney he paid for Miss S ch u rm an ’s

W e w an t to contact someone w ith
$5,000 w hich he would be w illing to in ­
vest in an estab lish ed financing b u si­
ness now op eratin g a t a profit. We
p refer a m an who has had b a n k in g or
other business experience w ith some
know ledge of credits and collections
who would like to become activ e in
helping to develop business fo r th is
company in Iow a. A personal in te r­
view w ill be arran g ed w ith anyone
w ritin g th a t he can q u alify and giving
his d ate of b irth , business tra in in g
and experience. W rite II. J . care
N o rth w estern B anker.

Consolidated an n u al bond in terest
charges for the city of Omaha, school
d istrict and county (Douglas) dropped
$230,416.41 betw een 1934 and 1938 as
the re su lt of debt retirem en ts, P resi­
dent W. L. P ierp oint of th e Associa­
tion of Omaha T axpayers rep orted re ­
cently after a study of local govern­
m en t bonded debt.
In te re st du rin g th e five-year period
for the th ree branches totaled $5,033,495.74 or enough to build six duplica­
tions of the new Omaha m unicipal
u n iv ersity building, he said.
The paym ents included $818,766.65
by th e county, $2,140,175.66 by the city,
$2,074,553.43 by th e schools.
D uring the period, th e county re ­
tired $1,600,000 of bonds, th e city $3.536,825 in general obligation bonds and
th e school d istrict set aside $1,869,768
to m eet debt re tire m e n t requirem ents.
In th e sam e period, th e city paid off a
block of special assessm ent bonds not
included in the tabulations.
The 1937 in terest charges dropped
below a m illion dollars for th e first
tim e in a long period of years. In
1938 th e total for in terest w as $885,236.85. It w as $1,115,658 in 1934.

L a m s o n
B r o s .

8c G o .

E S T A B L I S H E D 1874

141 W. Jackson Blvd., Chicago
50 Broadway, New York
Our b ra n ch o ffic e s are
equipped to render com ­
p le te b ro k era g e serv ice
in the handling of grain
(cash and futures),
stocks, bonds, cotton and
provisions. Private wires
direct to all m arkets.

New York, N. Y.
Buffalo, N. Y.
Cedar Rapids, Iowa
Davenport, Iowa
D es Moines, Iowa
Dubuque, Iowa
Fort Dodge, Iowa
Iowa Falls, Iowa
M arshalltown, Iowa
Mason C ity, Iowa
Sioux C ity, Iowa
Storm Lake, Iowa
W aterloo, Iowa
Frankfort, Ind.
La F ayette, Ind.

M inneapolis, Minn.
St. Paul, Minn.
Kansas C ity, Mo.
St. Louis, Mo.
Omaha, Neb.
Lincoln, Neb.
Bloomington, III.
De K alb, III.
Gilman, III.
Galesburg, III.
La Salle, 111.
Peoria, 111.
Quincy, III.
Muskogee, Okla.


Northwestern Banker
Federal Reserve Bank of St. Louis

December 1939
Federal Reserve Bank of St. Louis

th a t p a rt of th e state w ho had been in
th e business for fifty y ears or over.
P ro m in en t in th is group w as Louis J.
K udrna of W ahoo, w ho dates his en­
tran ce into th e business about 1885
w ith th e F irs t N ational Bank, w ith
w hich he is still connected.

C. C. N EU M A N N
Presid e nt
O akland

Flowers Dies
Cleo J. Flow ers, 39, a ssista n t cashier
a t the Om aha N ational bank, w ho re ­
cen tly w as found in th e b an k seriously
in ju red , died in an Om aha hospital.
Mr. Flow ers, officials said, h ad been
in a depressed condition since re tu r n ­
ing from a long vacation in Ju n e and
July. He had been su fferin g from a
nerv o u s diso rd er th a t h ad req u ired
B orn in A lbany, Mo., Mr. F low ers
w as g rad u ated from th e U n iv ersity of
M issouri, and la te r re tu rn e d to A lbany
w h ere he w as associated w ith his
fa th e r in th e G en try C ounty bank.

Omaha A . I. B.
O m aha C hapter of th e A m erican In ­
s titu te of B anking held its first F o ru m
D in n er of th e 1939-1940 season last
m o n th at th e E lks club.
F re d M. W ilcox, regional d irec­
to r of th e Social S ecurity Board, w hose
office is in M inneapolis, discussed “So­
cial S ecu rity ”. As b an k s go u n d e r the
act on J a n u a ry 1, 1940, th e subject
proved to be both tim ely and in te re s t­
L incoln c h ap ter w as rep resen ted by
a n u m b er of m em bers w ho cam e over
to h e a r Mr. W ilcox, an d th e re w ere
also several re p re se n ta tiv es of n earb y
b an k in g tow ns. 127 people atten d ed
th e d in n e r and lecture.

Hour Change
A nnouncem ent w as m ade by th e
th re e b anks of B roken Bow th a t b an k
ho u rs w ould be changed sta rtin g No­
vem ber 13th. A t th a t tim e b anks open
at 9 a. m. and close at 3 p. m. each day.
All B roken Bow b an k s are m em bers of
th e F ed eral D eposit In su ran ce C orpor­
atio n and all b an k s are affected by th e
federal w age and h o u r act. T his act
applies to all businesses h av in g tr a f ­
fic in in te rsta te com m erce.
U nder th e act a forty-tw o h o u r w ork
w eek is now required. The action ta k ­
en by th e B roken Bow b anks in
changing h o u rs to m ake com pliance
w ith th e act possible is also being ta k ­
Federal Reserve Bank of St. Louis

Kimballton Meeting
WM. B. H U G H E S
Secreta ry

en by banks in m any o ther cities
th ro u g h o u t th e state.

The receiver of th e W eston B ank
w as authorized to pay a dividend of
1.367 p er cent or $3297.38 to th e cred­
itors. He w as also authorized to pay a
first and final dividend to th e general
creditors of $20.67.
W ith this paym ent of 1.367 per cent
to the depositors of this b ank th ey w ill
have received to date a total of 48.367
p er cent of all m oney on deposit. This
is n early half of th e deposit m oney on
h and at th e tim e th e b an k closed and
in am ount totals $118,675.75.
T his is th e seventh dividend paid by
th e receiver of th e W eston B ank since
it closed its doors. The first dividend
w as F e b ru a ry 20, 1932, and totaled 15
p er cent. T h at sam e y ear th ere w ere
th ree m ore dividends totaling 20 per
cent, or close to $86,000 w as paid back
to depositors in 1932.

County Meeting
F o u rteen m em bers of th e Buffalo
C ounty B an k ers’ A ssociation m et in
H earney recently. T hey discussed th e
effect of th e new w age and h o u r law
and took up ro u tin e business.
P resen t w ere Glen Gibson and Rob­
e rt W oodward, Gibbon; L aw rence
H aug and H arold Conroy, Shelton;
C harles Zim pfer, Bill Cuticka and Jim
H ervert, R avenna; A. T. R eynolds and
A rt Czenkusch, A m herst; J. L. C arter,
and Joe Schleiger, Overton; Bob Burm an, Tom R ussell and P aul H. Kannow, K earney.

A t Holbrook
Mrs. M. R. G arey is filling th e posi­
tion at th e Security State B ank of H ol­
brook m ade v acant by th e resignation
of D. E. Mues, w ho is now em ployed
in a b an k a t Hull, Iowa.

The N ebraska ban k ers had a recent
m eeting at F rem o n t and one of its fea­
tu re s w as th e pictu rizatio n of eight in

E. S. Van Gorder, Jr., C. E. Nelson
and A. A. K ruse, president, cashier and
assistan t cashier, respectively, of A u­
dubon’s F irs t State Bank, attended a
g ath erin g at K im ballton. The Landm and’s N ational B ank officials of K im ­
ballton en tertain ed ban k ers and em ­
ployes of A udubon, E lk H orn, E xira,
and H arlan. A luncheon followed th e
business session.

Hour Changes
In order to com ply w ith th e new reg ­
ulations of th e w age-hour law, th e Ge­
neva State B ank has been forced to
change its b anking hours. The hours,
w hich w ent into effect, are from 9:30
a. m. to 3:30 p. m. B anks over the
co u n try hope to secure exem ption
from th e w age-hour law.

Christmas Savings
Saved up in nickles, dim es and dol­
lars since th e first w eek in D ecem ber
last year, nearly $352,000 is ready to be
poured into Om aha channels of trad e
from six b an k s’ C hristm as savings
Checks for m ore th a n nine thousand
persons w ho began accounts 50 w eeks
ago are being p repared for d istrib u ­
tion. A lthough the accounts are ear­
m arked as C hristm as funds, b ank of­
ficials said th e m oney w ill be used for
taxes, new cars, necessities for the
home, insurance paym ents.
L argest am ount from any individual
b ank w ill come from th e U nited States
N ational. F ro m th ere checks for 5,003
persons, totaling $193,809.50, w ere
ready for distribution.
The to tal am ount saved th is y ear is
an increase of m ore th a n $25,000 over
last year.

H astings bank clearings for th e first
ten m onths of this year are at an alltim e high since th e b an k holiday in
M arch, 1933, according to tabulations.
The total is $6,146,777, com pared to
$6,016,875, cleared in th e first ten
m onths of 1937, th e previous high
m ark for th e five-year period. C lear­
ings for th e first ten m onths of 1938
totaled $5,801,366.
D uring October, the tw o H astings
in stitu tio n s cleared $612,914, com pared
to $584,444 for th e corresponding

m onth last y ear and $535,226 for Octo­
ber, 1937. Gains over 1939 have been
m ade each m onth th is year, except for
July, w hen th e 1938 to tal h it $769,880,
com pared to $693,029 for th e co rre­
sponding four-w eek period of th is

New Bank
A lbion N ational is th e title of a
new b an k in g house organized in Al­
bion w ith a paid up capital of $50,000.



The necessary au th o rity for so doing
has been g ran ted by th e C om ptroller
of C urrency.
T his new corporation w ill succeed
th e well know n and popular banking
firm of T hom pson & Baker. These
gentlem en came to Albion in 1882 and
have established th e largest banking
business in th e county.
The board of directors of th e bank
are as follows: M. B. Thom pson, W il­
lard Baker, L oran Clark, Jam es McKie, and A. W. Ladd.




The officers are as follows: M. B.
Thom pson, president; L oran Clark,
vice president: W illard Baker, cash­
ier; D. V. B latter, assistan t cashier.

Name Campbell Director
The board of directors of th e U nited
States N ational b ank of Omaha an ­
nounce the election of L inn P. Camp­
bell to m em bership on th e bank direc­
Mr. Campbell, presid en t of Byron


. . your Chicago representative
American N ational Bank and T ru st C om pany of
Chicago offers the complete facilities of a corre­
spondent in this im portant financial and business
center— transit, collections, securities transactions,

L I N N P. C A M P B E L L

possible as their Chicago representatives . . . We

Reed Co., Inc., one of O m aha’s fore­
m ost in stitu tio n s since its early origin,
has been actively w ith the com pany
d u ring his business career of thirtyfive y ears in Omaha.
Mr. Campbell is a d irector of the
M etropolitan U tilities D istrict, has
been pro m in en t in real estate and
p ro p erty m anagem ent and active in
m any of the c ity ’s business and civic

welcome a call from you when you visit Chicago.

New Building

credit and investment information. M ore than that,
our officers maintain a personal interest in our
bank clients, and endeavor to be as helpful as






Mem ber Federal Deposit Insurance Corporation

Northwestern Banker
Federal Reserve Bank of St. Louis

December 1939

Carl T horen, W auneta contractor,
w as th e low bidder and w as aw arded
the contract for th e construction of the
new W auneta F alls B ank building.
Five bidders had subm itted figures on
the construction, tw o local, tw o from
McCook and one from K earney.
C onstruction w as to s ta rt about No­
vem ber 1st as soon as th e perform ance
bond and o th er details are w orked out.
Cost of th e im provem ent w ill be ap­
proxim ately $10,000, w hich does not
include fixtures. The co n tract calls
for com pletion in about five m onths.


County Meeting
The W eeping W ater b anks w ere
hosts to th e Cass C ounty B ankers A s­
sociation at th e ir a n n u al m eeting.
Besides th e re p re se n ta tiv es from th e
Cass C ounty b anks several Omaha and
Lincoln b anks w ere represented.
T h ere w ere about 70 in attendance.
The afternoon pro g ram w as held in
th e M asonic hall. M ayor Davis of
W eeping W ater gave an address of
w elcom e w hich w as responded to by
Mrs. Carl Ganz of Alvo, Neb. T. B.
Strain, p resid en t of th e C ontinental
N ational B ank of L incoln spoke on
“G leanings from th e E a st,” w hich w as
followed by a ta lk on “H ybrid Corn
and W h at It M eans to Us,” by D. D.
W ainscott, sales m anager, Steckley
H ybrid Seed Com pany. An executive
session followed the program .

Shorter Hours
To com ply w ith th e new federal
w age and h o u r law, th e W ashington
C ounty B ank at B lair has announced
new opening and closing hours. The
b an k w ill open at 10:00 a. m. instead
of 9:00' o’clock, and w ill close each day
a t 3:00 p. m. including Saturday, w hich
w as fo rm erly 4:00 o’clock.
T he new ho u rs are not in keeping
w ith th e w ishes of th e b an k m anage­
m ent, it has been stated, b u t are com ­
pulso ry due to th e new n atio n al law
w hich forbids in stitu tio n s of th e kind
to w o rk its em ployes m ore th a n 42
hou rs p er week.

p resid en t of the board resu ltin g
. U nited States N ational B ank of tion of
Omaha, has been elected a m em ber of bank executive.
M. B U SH N E L L ,

from recent resig n a­

G w yer H. Yates, form er Omaha
W . B. M illard, jr., vice

th e board of directors of Ak-Sar-Ben,
O m aha’s w idely-know n civic organiza­
The announcem ent w as m ade at a
m eeting at w hich George B randeis,
d e p artm en t store head, resigned as
p resid en t of th e governing board after
serving six years. He w as succeeded
by J. E. D avidson, presid en t of th e Ne­
b rask a P ow er Co.
Mr. B ushnell fills a vacancy on the

presid en t of th e Omaha N ational
Bank, w as re-elected secretary-treas­
u re r of the board. W. O. Sw anson w as
renam ed vice p resid en t and W. H.
Schellberg and J. H. W right, jr., w ere
re-elected board m em bers. The direc­
tors will serve three-year term s.
The ho n o rary position of chairm an
of the board w as created to honor Mr.

Change In Hours
The L exington banks, both th e L ex­
ington S tate and th e F a rm e rs ’ State,
have changed th e ir opening and clos­
ing hours. In order to com ply w ith
th e new w age and h o u r provisions, the
b anks w ill open at 9:30 and close at
The new provision m akes th e b a n k ­
ing ho u rs one h o u r sh o rte r for each
T he Cozad and G othenburg
b anks have also adopted th e sam e

Armour Named
L aurance A rm our, p resid en t of the
A m erican N ational B ank and T ru st
Com pany of Chicago, has been elected
a d irecto r of th e A utom atic C anteen
Com pany of Am erica.

T h e “W a lter s” W a y
W ith o u t P u b licity
Qualified, carefully investigated bank
em ployees furnished free
T H E C H A R L E S E . W A L T E R S CO .
O m aha, N ebrask a

Northwestern Banker
Federal Reserve Bank of St. Louis

December 1939


W. D ale Clark, p resid en t of the
O m aha N ational Bank, w as host a t a
d in n e r recen tly a t th e Omaha club for
125 Om aha and Council Bluffs business
leaders, h onoring George W. H arrison,
chairm an of th e R ailw ay L abor E xecu­
tiv es’ association; Senator E d w ard R.
B urke of N ebraska, G overnor R. L.
Cochran of N ebraska, Dr. F re d C.
W iegm an, new p resid en t of M idland
college, F rem o n t, N ebraska; P resid en t
W. M. Jeffers of th e U nion Pacific ra il­
road, and M ayors D an B u tler of Omaha
and S. W. McCall of Council Bluffs.
The d in n er preceded a U nion Pacific
fam ily p a rty a t th e City A uditorium .

Miss E lizab eth A nn Davis, d au g h ter
of Mr. and Mrs. T. L. D avis and for­
m er queen of Ak-Sar-Ben, w as m a r­
ried to Jo h n R onnow L au ritzen of
M inneapolis a t T rin ity C athedral in
Omaha recently. T he b rid e’s fa th e r is
p resid en t of th e F irs t N ational B ank
of Omaha.
Dean S tephen E. M cGinley p e r­
form ed th e cerem ony. Miss K a th ry n
Hosford, also a fo rm er Ak-Sar-Ben
queen, w as m aid of honor. B rides­
m aids w ere Miss Georgia McCague,
H a rrie t Kelly, Je a n McNeely of St.
Paul, N orm a B rady of N ew York, B eat­
rice Douglass of W est Orange, N. J.,
and Mrs. George L au ritzen of M inne­



apolis, sister-in-law of th e bridegroom .
Out-of-town guests also w ere p res­
en t from M inneapolis, K ansas City,
M elrose, Mass.
The reception w as held on the
eighth floor of th e Blackstone Hotel.
The foyer w as inclosed in so u th ern
sm ilax. B ehind the receiving line w as
a large screen banked solidly w ith
au tu m n leaves and sm ilax. A t each end
of th e im provised hedge w as a large
u rn of ru sset and yellow pom pons,
blending w ith gow ns of the w edding
p arty.
The center of the B lackstone ball­
room w as left free for dancing and
w as outlined in elliptical fashion by
oak trees, ceiling high, at w hose bases
w ere heaped m ounds of yellow ch ry s­
anthem um s. A sm ilax hedge partially
concealed th e orchestra.
F ollow ing an eastern m otor trip,
th e couple will live in su rb u rb an M in­
A t a quiet hom e w edding, Miss
E lizab eth Sm ith, d au g h ter of Mrs. V ic­
tor B. Sm ith and th e late Mr. Sm ith,
fo rm er vice presid en t of th e Omaha
N ational Bank, becam e th e bride of
W alter G riffith Savidge, jr., of L in ­
coln, Neb., son of Mr. and Mrs. W alter
Savidge of W ayne, Neb.
The b rid e’s sisters, M isses Cora Lee

and E leanor served as h er attendants,
and th e b rid e’s b ro ther, V ictor D.
Sm ith, w as groom sm an. Mrs. AV. Dale
Clark, w ife of th e presid en t of the
Omaha N ational Bank, sang. A ssist­
ing a t the reception w ere w ives of
Omaha N ational B ank officers: Mrs.
Clark, Mrs. O. T. A lvison , Mrs. Ray R.
R idge, Mrs. D an J. M onen, Mrs. David
D avis. O thers w ho served w ere Mrs.

E a rl Allen, Mrs. B. W. C hristie, Mrs.
S. R. K irk p atrick , M isses V irginia
L undquist, Josephine Ley and Nelle
The couple w ill live at Lincoln.
C ontinuing

th e

upw ard

tre n d


Omaha b u sin ess, n early all indicators

show ed gains in October over th e sam e
m onth last year.
B uilding p erm its w ere 141.5 per cent
higher, bank clearings 8.9 per cent,
bank debits 5.9 p er cent, livestock re ­
ceipts, 7.2 per cent, postal receipts 12.2
p er cent.
The sam e record w as m ade for the
12 m onths ending October 31, com­
pared w ith th e previous 12 m onths.
B ank clearings in October w ere
$142,452,691; debits $140,760,285.
D ale M atthew s, cashier of the P ack­
ers N ational B ank of South Omaha
and im m ediate p ast p resid en t of the
South Omaha A ssociated M erchants’
and Professional M en’s Club, was
aw arded a service plaque recently at
a p a rty a t C esar’s club in Omaha.
Dr. G. J. H ansen, also a p ast p resi­
dent, m ade the presentation. P resident
for th e com ing y ear is E m m et Hinchey.
John Carmody, form er F ederal L and
B ank of Omaha secretary, w ho since
1934 has been w ith th e resettlem en t
ad m in istratio n and farm security ad­
m in istratio n in W ashington, w as a
recent v isitor in Omaha.
He w as m aking an inspection to u r
of farm secu rity regional head q u arters
and w ent from Omaha to Lincoln.
W arren Johnson, son of Mr. and
Mrs. A lvin E. Johnson of Omaha, re ­
cently w as pledged by th e Sigma Chi
fra te rn ity a t N o rth w estern university.
The young m an ’s fa th e r is p resid en t of
th e Live Stock N ational B ank of South

F. E. D A V E N P O R T & C O .

Northwestern Banker
Federal Reserve Bank of St. Louis

December 1939

He w as a ssistan t cashier of the
C entral N ational b ank a t Lincoln
w hile his father, Dr. P. L. Hall, w as
president, and later w en t to G reen­
wood to become presid en t of th e
Greenw ood State bank.

(C ontinued from page 21)

m ont obtained a $14,000 ju ry verdict

H. L u ik art, as receiver of th e Ver. digre S tate b an k and th e S tate against the b an k on his allegation th a t
b an k of Omaha, asked th e suprem e over a period of y ears he had placed
co u rt for a re h e a rin g of the case in
w hich it held th a t th e in su ran ce su ­
p e rin te n d e n t of th e state of N ew York
w as en titled to th e deposit in th e
Om aha b an k of th e N ational Security
com pany, for w hich he is liquidator.
L u ik a rt’s a tto rn e y s com plain th a t the
co u rt seem s to have overlooked, did
not exam ine, or disreg ard ed th e cita­
tions of a u th o rity show ing th e receiv­
er, as a ju d g m en t cred ito r of the
su re ty com pany, w as en titled to the
deposit. T hey say in an o th e r case the
receiver w as told th a t th e only w ay
he could reach th e deposit w as by
g arn ish m en t, and now th a t he has
invoked th a t proceeding, th e court
says New Y ork has first claim on the
m oney.
It is also insisted th a t th e opinion is
based on th e false prem ise th a t New
Y ork h ad m ade a p rio r dem and for
th e m oney and h ad been sustained,
w hen in fact it w as refused. The a t­
to rn ey s say th e opinion is too brief
and a rb itra ry in deciding an im por­
ta n t question, and by a “m onosyllabic
assertio n th a t w h ite is black,” over­
ru les a public policy announced by
th e legislature.
C. E. M arquardt, cashier of th e Tilden N ational bank, has tak en over the
w o rk of su p erv isin g th e farm ing in te r­
ests in M adison and adjoining counties
for th e S tu a rt In v e stm e n t Co. of L in ­
coln. T his position has been held for
m ore th a n fo rty y ears by I. M. D aw son
of M adison w ho has been ill. Mr. M ar­
q u a rd t is pinch h ittin g for him u n til
he is able to resum e his w ork.
Judge P olk has refu sed to g ra n t th e
M artel S tate b an k a new tria l of its
$14,000 “deposit box m y ste ry ” action
in d istric t cou rt in Lincoln. The case
probably w ill be appealed. H. Joe Boh-

th e m oney in a deposit box and th a t
it had disappeared w hen he called for
it in Novem ber, 1938. Ten m em bers
of th e ju ry signed the verdict. Carl J.
S ittler and W illiam Moore, b ank offi­
cers, w ere originally nam ed defend­
an ts b u t w ere dism issed from the
P hil J j . H all, 51, Greenwood, b an k er
and form er a d ju ta n t general of the
national guard, died at v e te ra n s’ hos­
pital in Lincoln from a lung ailm ent.
Identified w ith th e national guard,
since 1905, he becam e a d ju ta n t gen­
eral in 1913 and served for tw o term s.
He later served as b rigadier general.
He served as colonel of th e Sixth in ­
fa n try and com m ander of th e One
H un d red and T w enty-seventh Field
a rtille ry in th e w orld w ar.

m ade th e stockholders of th e tw o in ­
stitu tio n s identical. T en y ears later
a sim ilar agreem ent w as effected w ith
stockholders of th e H ennepin C ounty
Savings Bank. In 1927 th e savings
bank and the tru s t com pany w ere con­
solidated u n d er th e nam e of F irs t M in­
neapolis T ru st Company.
In th e m eantim e, an o th er m erger
had bro u g h t into th e F irs t N ational
organization th e m an w ho today is
p resid en t of the bank, L ym an E.
W akefield. In 1925 th e W ells-Dickey
T ru st Com pany (established in 1916)
m erged w ith M inneapolis T ru st Com­
pany. Mr. W akefield w as a vice pres­
ident of th e W ells-Dickey organization
and continued w ith M inneapolis T ru st
Com pany in th e sam e capacity u n til
selected to head F irs t N ational.
(W ells-Dickey Company, the in v est­
m ent firm, continued as a separate in ­
stitu tio n afte r W ells-Dickey T ru st
Com pany w as m erged.)
One o th er im p o rtan t event preceded
Mr. W akefield’s election to th e p resi­
dency, th e resignation of Mr. Jaffray
in 1924 to become p resid en t of the Soo
L ine Railroad. Mr. C ham berlain re ­
tu rn e d as p resident of th e b ank for
tw o years, resum ing his post as ch air­
m an of th e executive com m ittee on the

Correspondent Service

11Personal Touch"





Member Federal Deposit Insurance Corporation

Northwestern Banker
Federal Reserve Bank of St. Louis

December 1939


election of Mr. W akefield as p resid en t
Ju ly 30, 1926.
In te re stin g to note is th e rem ark ab le
grow th of th e b an k d u rin g Mr. Jaffra y ’s 29 y ears of active service. W hen
he joined the bank, its deposits w ere
$2,393,000; w hen he resigned in 1924,
deposits w ere $72,117,357. T otal re ­
sources of the b ank and its affiliates
expanded d u rin g th e sam e period from
$3,465,000 to $114,000,000. C apital had
grow n from $1,000,000 to $5,500,000,
and is now $6,000,000.
In 1929, F irs t N ational joined w ith
F irst N ational B ank in St. Paul and



o th er in stitu tio n s in organizing F irst
B ank Stock C orporation, bank holding
com pany, and Mr. Jaffray once m ore
stepped into th e picture, th is tim e as
ch airm an of its board of directors.
Jan u ary , 1933, found him assum ing the
post of p resid en t of F irst B ank Stock,
a position he still holds.
The sam e year, 1933, saw th e m erger
of F irs t M inneapolis T ru st Com pany
w ith the bank into th e p resen t F irst
N ational B ank & T ru st Company.
Thus, all too briefly, goes th e histo ry
of one of the n o rth w e st’s leading
banks, a bank w hose 75 y ears of

C. L. F red ric k se n , P re s id e n t
M. A. W ilso n , V ice P re s id e n t and C ash ier
W . G. N elson, A s s is ta n t C ash ie r
W . C. Schenk, A ss is ta n t C ash ier
L. W . R oss, A ss is ta n t C ash ie r

For A ll Your Sioux City Needs
On live stock, hay and grain items
this bank is your logical Sioux City
correspondent. Our location in the
yards helps us serve you best.
Y/e can serve you likewise on all
your Sioux City items, through our
constant messenger service to all parts
of the city.





S i o u x C i t y , I o wa
“ T h e B a n k a t th e Y a r d s ”
Member Fe de ra l Deposit In s u r a n c e Corporation

grow th and service will be observed
D ecem ber 12th.
P resen t plans call for a diam ond an ­
n iv ersary p a rty of officers and some
600-odd em ployes on th a t day. A m onth
later, w hen the an n iv ersary of the ac­
tu al opening of the bank arrives, th ere
will be ap p ro p riate displays in the
bank lobby to apprize the public th a t
M inneapolis’ oldest, largest bank has
passed an o th er m ilestone in its long,
continued period of service, and is
now 75 y ears “young.”

Survey Handbook
A B ank Survey H andbook compiled
as a guide for checking th e efficiency
of detailed bank operations has been
published by the N ational B ank Divi­
sion of th e A m erican B ankers Associa­
tion, it is announced by M elvin Rouff,
p resid en t of the division and senior
vice p resid en t of th e H ouston N ational
Bank, H ouston, Texas.
The new book is designed to assist
ban k ers in su rv ey in g operating prac­
tices and policies as th ey affect ea rn ­
ings and expenses. In addition, it con­
tain s suggested m ethods for reducing
operating costs.
The publication is divided into four
sections. The first of these is a ques­
tio n n aire analysis of operations. By
using th is questionnaire, bank officers
can m ore readily p rep are a general
surv ey of accounting and auditing
procedures used in th e ir institutions,
as w ell as an analysis of expense con­
trol, personnel m anagem ent, asset
control, and o th er phases of operating
m ethods for each departm ent.
The second edition contains sugges­
tions for reducing expenses and in­
creasing earnings th ro u g h controlled
expense accounts for advertising,
m ailing, legal, and checking costs, and
outlays for new accounts.
Section th ree outlines sources of
com parative statistics on operating
resu lts and ratios, ran g in g from an ­
nual rep o rts com piled by the associa­
tio n ’s N ational B ank D ivision to sta tis­
tics collected by go v ern m en t bank
reg u lato ry agencies.
The concluding section of th e 80page book deals w ith budgetary con­
tro l and stresses th e necessity for ac­
curate ch artin g of incom e sources
and expense item s, to be used as a
m onthly index of operating efficiency.

C. R. M cK en n a, P re s id e n t, Jo h n so n B isc u it Co.
B. L. Sifford, A tto rn e y , Sifford & W ad d en
G. F. S ilk n itte r, P re s id e n t, S ioux C ity
Sto ck Y a rd s C om pany
C. L. F re d ric k se n , P re s id e n t
M . A. W ilso n , V ice P re s id e n t and C ashier
H. C. B osw ell, S e c .-T re a s.,
W e ste rn C o n tra c tin g Corp.

Northwestern Banker
Federal Reserve Bank of St. Louis

December 1939

G ee!
Blonde—J a n e ’s conduct w ith m en
seem s to be le tte r perfect.
Brunnette-—N aturally. She know s
them from A to Z.


W I L L I A M C. R E M P F E U
Pr es id e n t
P a rk s to n

Dies In Canton
F u n e ra l services w ere held for John
E. Lee, w ho died suddenly from an
acute attack of h e a rt trouble. U ntil
about a y e a r ago, Mr. Lee had been
em ployed as bookkeeper in th e F a rm ­
ers State b an k of Canton, h aving been
em ployed th e re ever since his g ra d u a ­
tion from high school about 15 years
ago. L ately he w orked as cashier of
th e F a rm e rs and M erchants State
b ank of Scotland, S. D. S urviving are
his w idow and 14-year-old son, Jo h n
jr., his m other, Mrs. E d w ard Lee; and
tw o b ro th ers, H ow ard of M adison and
R ussel of Des Moines.

Vice President
A ccording to an an n o u n cem en t by
the board of directo rs of th e E xchange
b an k of Lennox, Oscar C. B urke is the
new m anaging officer and vice p resi­
d en t of th is in stitu tio n . Mr. B urke, a
fo rm er b a n k e r at Davis and Viborg,
cam e from the w est coast.
Mr. B urke comes w ell qualified for
th e position and responsibility it in ­
volves. He has had 21 y ears of ex­
perience in banking. He w as born and
reared a t Irene, and th e re received
his in itial tra in in g along th is line. He
becam e p resid en t of th e F irs t N ational
b an k at Davis in 1925 and w as located
th e re for seven years. In 1932 he w en t
to V iborg as p resid en t of the Security
N ational b ank th e re for six years.

Sioux Falls, b an k clearings gained
$750,864.61 in October over th e m onth
of O ctober last year, it w as revealed in
th e records a t th e Sioux F alls clearing­
house, at th e N o rth w est S ecurity N a­
tional bank.
The to tal for th e m o n th w as $7,584,470.11, th e record showed; w hile the
b an k clearings for th e m o n th of Oc­
tob er of one y e a r ago am ounted to

Hazcn Dies
R ichard E. H azen, 81, w ell-know n
W oonsocket b an k er and business m an,
died a t his hom e a fte r a long illness.
Federal Reserve Bank of St. Louis

Secreta ry-Treasu rer
H uron

He had been in failing health for m ore
th a n a year.
Mr. H azen had lived in W oonsocket
for the p ast 27 years, and had served
as presid en t of th e Sanborn C ounty
bank. He leaves his aged wife, three
sons, C linton of H uron, A lbert of
Giffen, Mont., and George of W oon­
socket, and th ree daughters, Allye
B ratsberg, Iren e H azen, and F ern
H azen, all of W oonsocket. A nother
daughter, Mrs. B. W. Allen of Chicago,
preceded him in death.

Final Dividend
The final dividend is now being paid
to depositors of th e F irs t N ational
b ank of Canton. Notices w ent to de­
positors from F red A. Tinan, receiver
of the bank.
The p resen t 17 per cent dividend
now being paid brings the total to 70
p er cent w hich has been paid back to
those w ho held deposits in the bank
at th e tim e of its discontinuation of
business in 1933.
The bank closed its doors on M arch
4, 1933, at th e tim e w hen all banks
w ere closed. It nev er re-opened for
business and w en t into receivership
D ecem ber 13 of th a t year.
The d istrib u tio n of this dividend
w ill brin g $23,163.33 back into the
channels of business here. The total
70 p er cent paid to depositors since the
b a n k ’s closing has am ounted to $108,810.20.

Examiner Dead
H en ry B ottcher, 55, form erly bank
exam iner at T abor and o th er tow ns,
died in a hospital in Long Beach Cal.,
a fte r a w eek’s illness. Mr. B ottcher
w as born in H yde county and w as
county tre a su re r at H ighm ore and
la ter w as em ployed by the state b an k ­
ing d ep artm en t and lived in Tabor,
Y ankton and R apid City. S urviving
are his widow; five b ro th ers and one

New Bank Opens
S outhern H ills ban k is the nam e of
th e new ly organized banking in stitu ­

tion in E dgem ont. It opened for busi­
ness last m onth.
The stockholders of th e bank, w ho
are qualified by holding a sufficient
am ount of stock to act as officers and
directors, are:
T hom as L. Seppala, form erly of
Buffalo, S. D.; B. W. K eating, Buffalo
Gap, S. D.; W. J. Schneider, ran ch er of
Buffalo Gap; A lbert H erm an, Clair
K err, E. H. H ighley, and W illiam
Schoonm aker, pro m in en t businessm en
of Edgem ont.
C. H. K err, well know n E dgem ont
businessm an, w as chosen to head the
in stitu tio n as president.
T hom as L. Seppala, executive vice
president, w ho w ill be the active m an ­
ager of th e new in stitu tio n , comes to
E dgem ont from Buffalo, S. D., having
had tw en ty y e a rs’ experience in the
banking business as cashier of one of
th e stro n g est banks in th e state.
S o uthern Hills b ank is capitalized
a t $25,000, w ith $2,500 surplus, of
w hich $19,000 is com m on stock and
$6,000 in capital debentures.

Dies In Pierre
E. R. Campbell, 53, w ho w as in
charge of South D akota’s closed banks
u n til he becam e ill a year ago, died
recently in P ierre. The body w as sent
to Le Mars, la., for burial.
Mr. Campbell moved to South Da­
kota in 1914 and w as in the banking
business at Spencer u n til 1925 w hen
he w as appointed exam iner in charge
of closed banks in th e W oonsocket
vicinity. L ater he served at Revillo
and H uron. A bout tw o y ears ago he
m oved to P ierre and w as placed in
charge of all closed banks in th e state.

(C ontinued from page 14)
if tw o of the m ajor item s w hich will
be tak en up at th a t tim e are first, the
national defense program , and second,
the rem oval of the debt lim it of 45 bil­
lion dollars.

F a rm relief m ay also be discussed at
th is com ing session.
As far as th e debt lim it is concerned,
th e new -dealers w ill be in a strategic
position because th ey can argue th a t
th e co untry w an ts and favors national
defense and th erefo re th ey m ust raise
th e national debt lim it in order to ac­
com plish this purpose. T hus we go
m errily on into a g re a te r and g reater
national debt.
Robert R hea, editor of Dow T heory
Comment, died last m onth in K ansas
He w as a W orld W ar v eteran and
had been in bed for practically 21
years, since he cam e out of th e arm y,

b u t he p u t up a v alian t fight, devel­
oped a fine business and m ade a fo r­
H is w ork will be carried on by P erry

natio n al banks, b u t to all banks, large
an d sm all.
He believes in the general im proving
of th e service of banks and says, “I am
not p rep ared to e n te rta in proposals
w hich m ight m ean th e d estruction of
p riv ate banking, and fu rth erm o re, we
m u st preserve our dual b anking sys­
tem for th e co u n try has prospered u n ­
d er it.”


H en ry Steagall, ch airm an of th e
H ouse B anking and C urrency Com m it­
tee, is advocating deposit in su ran ce be
increased to $10,000 and suggesting
some k ind or legislation w hich will
rem edy th e P ostal Savings B ank com ­
He also favors liberalizing th e oper­
ations of th e F ed eral R eserve System
so as to m ake it a ttra c tiv e not only to




t - o

f - T


John W. H anes, u n d er S ecretary of
th e T reasury, has denied th a t C hair­
m an of the R eserve Board M arriner S.
E ccles in his St. Louis address o u tlin ­
ing a tax program , spoke w ith any au ­








O u t - o f - t o w n b a n k s a n d b a n k e r s w ill find h e r e
c o m p le te b a n k in g f a c ilitie s fo r p r o m p t an d
e c o n o m ic a l h a n d lin g o f a c c o u n ts in C h ic a g o . W e
w o u ld a p p r e c ia te th e o p p o r tu n ity o f s e r v in g y ou .

th o rity as far as th e A dm inistration is
Mr. H anes said, “I don’t th in k Mr.
Eccles spoke for th e A dm inistration
and I doubt th a t he spoke for Con­
gress, and I know he d idn’t speak for
th e T reasu ry .”
T hus th e “sp e n d th rift” chairm an of
th e F ed eral R eserve Board evidently
is not outlining ta x plans w hich agree
w ith th e T reasu ry D epartm ent.
Orval W . A dam s, form er president
of th e A m erican B ankers A ssociation
of Salt Lake City, again rem em bered
us w ith some of th e U tah Suprem e
Celery w hich is “delicious, crisp and
ten d er,” according to the announce­
m en t on th e box in w hich it w as re ­
L ast y ear Orval w as k ind enough to
rem em ber us ju s t before T hanksgiv­
ing, w hich in 1938 cam e on N ovem ber
30th, b u t th is y ear he sen t it to us on
N ovem ber 20, as he p erhaps w an ted to
agree for once w ith an edict from
W ashington w hich m ade “Franksgivin g ” officially N ovem ber 23rd. A nyw ay
th e celery w as g reatly appreciated and
rem inded us again of a v ery fine gen­
tlem an and an able leader in th e b an k ­
ing circles of th e U nited States.

As we consider th e D ies C om m ittee
R eport from W ashington, and as we


it y


a t io n a l

A N »


2 0 8




C h ic a g o



(Member Federal Deposit Insurance Corporation)

read o th er articles w hich tell us of
m in o rity groups in th is co u n try w hich
are try in g to u nderm ine our govern­
m ent, ju st rem em ber th a t less th a n 1
p er cent of th e R ussian population
caused th e revolution w hich over­
tu rn e d th a t country, and forced the
o th er 99 p er cent to do th e bidding of
th e 1 p er cent.
The g o v ernm ent Corn Loan P ro­
gram w ent into operation in Iowa on

fflm y C i m ö t m a s

^ appp ü e to H ear

U n ite d S tates C h e c k B o o k C o.

Decem ber 1st. A loan of 57c a bushel
is expected soon, w ith all producers
w ho cooperated in th e 1939 AAA pro­
gram eligible to seal th e ir new crop of
corn and obtain th e loan.
Field m en of th e AAA have held a
series of m eetings over th e state to dis­
cuss the type of cribs to be approved
in th e new loan program , and the
grading of corn.

Can't Take It
Blonde—A nd is y o u r husband a
steady drinker?
B ru n ette—No, poor dear. His hand
shakes too m uch.

A ccording to m y lights, it’s w rong to
kiss a m arried wom an.
Oh, be a good m otorist and dim
y o u r lights.
N orthw estern B anker
Federal Reserve Bank of St. Louis

D ecem ber 1939

assisted by Chas. Rieger, to g eth er w ith
Dr. R. T. H artig at th e piano and on
th e accordion, both of M inneapolis.
The guest speaker w as Tom Gibbons
of St. Paul, sheriff of R am sey county,
b e tte r know n th ro u g h prize rin g ex­
periences in earlier days. He m ade a
v ery fine and in sp irin g talk in te r­
spersed w ith Irish w it w hich captured
th e audience.

A. B. L A T H R O P
P r e s id e n t
St. P a u l

Minneapolis Notes
R ecent new s from M inneapolis, as
rep o rted by J. A. Sarazen, reveals th a t
T hrall, W est & C om pany m oved last
m onth from th e ir form er location on
th e g round floor of th e N o rth w estern
B ank B uilding to Room 1500 of th e
sam e building.
H a rris U pham & C om pany have re ­
m odeled th e ir M inneapolis q u arters,
w hich is located on th e ground floor
of th e N o rth w estern N ational B ank
In order to b e tte r serve its m any
custom ers, th e sm all loan d ep artm en t
of th e N o rth w estern N ational B ank &
T ru st Com pany has been m oved to
larg er and m ore convenient space on
th e co rn er of Sixth and M arquette

Meet in Moorhead
M eeting a t M oorhead for th e ir a n ­
n ual election of officers, m em bers of
th e Clay-W ilkin B an k ers A ssociation
nam ed H. Shirley of th e F irs t N ational
B ank, B reckenridge, as president. He
succeeds I. B. L ever son of th e H aw ley
S tate Bank.
P. V. D w yer of th e A m erican State
B ank, M oorhead, w as elected vice
p resident; J e rr y B ren n an of th e F irs t
N ational Bank, M oorhead, w as chos­
en as secretary, and Carl L epper, H aw ­
ley State B ank, as tre a su re r. More
th a n 40 b an k ers from th e tw o counties
atten d ed th e d in n er m eeting.

S e c re ta ry


dent, Jo h n W. B erger, R obert J. R ein­
h a rt and H en ry N. Somsen.
Mr. Krook, w ho w as the first vice
president, is now presid en t of the
bank. P resen t directors, besides those
m entioned, are Jo h n U lrich, V erne
Johnson, W illiam H. Dempsey, and
George V etter. B. J. V etter is now
vice presid en t and V ictor J. Sonday,
a ssistan t cashier.

Named President
C. E. Gesme, cashier of th e F irst
State B ank of Benson, w as elected
p resid en t of th e W est C entral Clearing
H ouse A ssocaition at th e an n u al m eet­
ing at Clarkfield, w hile A. E. A rntzen
of A ppleton w as nam ed as a m em ber
of th e board of directors from Sw ift
county. D. L. Connolly of D anvers is
th e re tirin g presid en t of th e Associa­
tion, w hich includes banks in Swift,
Chippewa, Lac qui Parle, Yellow Medi­
cine and K andiyohi counties.

Timmerman Dies
Adolph H. T im m erm an, vice p resi­
d en t of th e Produce State B ank in
M inneapolis, died suddenly at his
Mr. T im m erm an w as born in St.
Paul, Septem ber 12, 1890, and has been
in th e b anking business for 28 years.
Since 1916 he had lived in M inneapolis.
He w as a m em ber of P lym outh
Lodge No. 160, A. F. & A. M., th e E x ­
chequers Club, and th e A m erican In ­
s titu te of B anking.

Twenty Years
C elebrated recen tly w as th e tw e n ­
tie th a n n iv e rsa ry of th e K lossner State
B ank, b u t th e day w en t unobserved
except th a t som e of th e m en w ho have
been connected w ith th e b an k since its
beginning recalled som e of th e inci­
d en ts d u rin g th e y ears of its grow th.
George V etter of N ew U lm has been
cashier of th e b an k since th e begin­
n in g and th re e m em bers of th e orig­
inal board of d irecto rs are still on th e
board. The v e te ra n directors are F. H.
Krook, B. J. V etter, and A. J. Vogel.
O ther m em bers of th e original board
w ere H erm an A lbrecht, w ho w as p resi­
Federal Reserve Bank of St. Louis

Annual Banquet
L ast m onth th e stockholders of th e
K anabec S tate B ank held th e ir annual
b an quet w hich has been a custom for
several y ears past. T here w as an in ­
crease in th e n u m ber of th e b a n k s’
stockholders w hen the tw o Mora
b anks consolidated. Seventy stock­
holders, th e ir w ives and a nu m b er of
outside guests from th e th ree large
cities of th e state and elsew here
sw elled th e to tal attendance to 180.
F ra n k Pow ers, p resid en t of th e
bank, acted as to astm aster du rin g th e
program follow ing th e dinner. He w as

Assistant Cashier
E arl A. P atch w as elected assistan t
cashier of the T hird N o rth w estern
N ational B ank of M inneapolis at a
special m eeting of th e board of direc­
tors, it w as announced by R. E. Macgregor, president. Mr. P atch entered
th e b an king business w ith th e E ast
H ennepin S tate B ank in 1925 and has
been w ith th e T hird N orth w estern N a­
tional B ank since its organization in
1927. A n ative of Iowa, he cam e to
M inneapolis 30 y ears ago.

Hutchinson Meeting
M essrs. J. T. P eterso n and H. J.
G rant of Le S ueur atten d ed th e q u ar­
terly m eeting of th e M innesota Valley
Clearing H ouse A ssociation, held at
H utchinson.
Speakers at th e m eeting included
Judge M oriarty, C om m issioner of
B anks F. A. A m undson, S ecretary of
th e M innesota B ankers A ssociation
Wm. D uncan, and J. T. P eterso n w ho
gave a rep o rt on his trip to Seattle as
delegate to th e A m erican B ankers

New Director
D irectors of F irs t N ational B ank &
T ru st Co., M inneapolis, have elected
P au l V. Eam es, presid en t of Shevlin,
C arpenter & C larke Co., a director to
fill th e vacancy created by death last
Septem ber of A. McC. W ashburn.
Mr. E am es w as a director of F irst
N ational from 1931 to 1934, resigning
w hen th e n u m ber of directors w as re ­
duced in conform ity w ith th e federal
b anking act of 1933.

With Hastings Bank
F ra n k J. H yland, M inneapolis, has
resigned as assista n t n ational b ank
exam iner in th e n in th federal reserve
d ictrict to accept an ap p o in tm en t a s a
m em ber of th e staff of the F irs t N a­
tional B ank of H astings.

Director Dies
T ru m an A. P erkins, ch airm an of the
board of th e F irs t N ational B ank of
W indom , died recen tly at his hom e in
th a t city.


Tw i n C ity N ews

ITH the c h a rg e of K alm an & Co.
from a D elaw are to a M innesota
C harles O. Kalm an,

Paul, has re tire d for a tim e at least
from active p articip atio n in th e firm.
He w ill hold a su b stan tial in te re st
in the new corporation and act in an
advisory capacity. Mr. K alm an op­
erated th e in v estm en t firm for m ore
th an 30 years, w ith his associates.
The new com pany is u n d er th e ex­
ecutive m anagem ent of E d w in W hite,
president, and P aul R. D oelz and
Joseph L. Seybold, vice presidents.
Mr. W hite form erly w as vice p resid en t
at the St. P aul h e a d q u a rte rs and Mr.
Doelz vice p resid en t in charge of the
M inneapolis office. Mr. Seybold has
been connected w ith W ells-Dickey Co.,
M inneapolis, in recen t y ears as vice
M em bers of th e C entral O perating
Com m ittee of N orth w est Baneorporation held th e ir re g u la r fall conference
at N o rth w estern N ational B ank &
T ru st Com pany last m onth.
A n u m b er of leading business and
financial m en from th e te rrito ry
served by B ancorporation atten d ed the
Jam es D ouglas A rm strong, form er
St. P aul b an k official, died late in No­
vem ber. He had been a lifelong resi­
dent of St. Paul. In October, 1931, he
retired as vice p resid en t of th e old
F irst T ru st Company.

A new in v estm en t firm, Jam ieson &
Company, has been organized w ith
M inneapolis and St. P aul m en a t the
head. P a rtn e rs are Carson F. Jam ie­
son, E inar A. B erg and W illiam G.
K ahlert, w hile associated w ith them
are H arrison R. Joh nston and A lfred
A. B eltz, M inneapolis, and H arry S.
Bauer, St. Paul.
W ith th e closing of th e St. P aul office
Federal Reserve Bank of St. Louis


Special Correspondent

of T hom son & M cKinnon, the new
firm took over personnel of th a t office,
along w ith Thom son & M cK innon’s
w ire and o ther services.
D uring a recent visit to M inneapolis
to speak at th e M innesota B an k ers’
Conference at the U niversity of M in­
nesota, G overnor Carl E. Bailey of
A rkansas w as e n tertain ed at luncheon
by E. A. Purdy, vice p resid en t of
W ells-Dickey Company. W ith Gov­
e rn o r Bailey w as G rover Jernigan,
A rkansas com m issioner of banks.
A dividend w as paid in N ovem ber by
N orth w est B ancorporation. Set by di­
recto rs at 10 cents a share, it am ounted
to m ore th an $150,000 on approxi­
m ately 1,560,000 shares of stock.
Carroll H. Babcock, well know n in
Tw in City in v estm en t circles, has
joined the staff of Piper, Jaffray &
Hopwood, in v estm en t house.

Offices of Thrall-W est Co., M inne­
apolis in v estm en t firm, have been
m oved to 1500 N o rth w estern B ank
building. T hey form erly w ere in the
arcade on the first floor.
D irectors of F irs t N ational B ank &
T ru st Company, M inneapolis, have
elected Paul V. E am es, p resident of
Shevlin, C arpenter & Clarke Company,
a director to fill the vacancy created
by th e death last Septem ber of A. McC.
W ashburn.
Mr. Eam es w as a d irector of the
b ank from 1931 to 1934, resigning w hen
th e n u m ber of directors w as reduced
in conform ity w ith the federal b an k ­
ing act of 1933.
S traus Securities Com pany of Chi­

cago, D etroit, Indianapolis and Mil­
w aukee have opened a M inneapolis
office un d er m anagem ent of H arold V.
N. Booraem . He w as form erly p resi­
dent of the com pany bearing his nam e.
L. A. Singer, for some y ears associated
w ith th e S traus organization, has his
office in the sam e place, 360 R and
F en n er & Beane have opened a Min­
neapolis office at 110 N o rthw estern
B ank Building.
V in cen t McLane,
form erly associated w ith H arris, Upham & Company, is m anager and J.
L ow ell D riscoll is a ssistan t m anager.
D irectors of T hird N o rth w estern
N ational B ank have elected E arl A.
Patch a ssistan t cashier, R. E. Macgregor, president, announced.
started his banking career in 1923 and
has been w ith T hird N o rthw estern
since 1927.
Adolph H. T im m erm an, vice p resi­
dent of Produce S tate Bank, died late
in Novem ber. He had been in the
b anking business 28 years, 23 in Min­

Two new directors of the M inne­
apolis Federal R eserve ban k have
been nam ed for three-year term s
sta rtin g .Jan. 1. T hey are F red D. Mc­
Cartney, vice p resident of the F irst
N ational bank at Oakes, N. D., and
A lbert P. F un k, p resident of the
LaCrosse R ubber Mills com pany, LaCrosse, Wis.
D irectors of F irst B ank Stock Cor­
poration have nam ed R ussell H. B en ­
nett, M inneapolis, to m em bership on
th e board to succeed th e late A. McC.
W ashburn. A. H. K ennedy, vice p resi­
dent of F irst Bank, w as appointed to
the b oard’s executive com m ittee.


• M I N N
Clifford S. A shinun of C. S. A shm un
Co., M inneapolis, has been elected a
m em ber of th e board of g overnors of
th e N ational A ssociation of Securities
D ealers, Inc., from d istric t No. 4, in ­
cluding M innesota, N o rth and South
D akota and M ontana.
L aw ren ce I). W oodard of W oodardE lw ood & Co., M inneapolis, w as
nam ed ch airm an of th e association’s
d istrict com m ittee, w ith Clyde C. N eed­
ham of N eedham & Co., Inc., as sec­
retary .
G. E. B yd ell, a directo r of H ennepin
S tate bank, w as elected a vice p resi­
den t th ere, w hile W alter Fafro, for­
m erly a ssista n t m an ag er of th e N orth
Side office of F irs t N ational B ank &
T ru st com pany, w as elected cashier.
R. E. H asselb erg, on th e staff of
P roduce S tate for 12 years, w as ad­
vanced from th e collection d ep artm en t
to a ssista n t cashier.
Both b an k s are affiliated w ith F irst
N ational.

Heads Bank
The board of d irecto rs of th e E m ­
pire S tate bank, Cottonwood, consist­
ing of T. F. S preiter, C. O. Sather.
Ju liu s Sween, L udw ig Dahl and H. P.
P eterson, com pleted th eir reg u lar
q u a rte rly au d it of th e affairs of the
b an k and re p o rt th a t th e in stitu tio n
is in splendid condition.
F ollow ing th e audit, Mr. S preiter
stated th a t it is im possible for him to
su pervise th e affairs of so m any b anks
and th a t he believed th a t th e business
of th e E m p ire S tate b an k has grow n
to a p oint w h ere it req u ires th e serv ­
ices of a full tim e m an.
He th e n su b m itted his resig n atio n
as p resid en t and d irecto r and the
board unan im o u sly elected Guy S.
Bacon to fill th e position.
Mr. Bacon has been connected w ith
th e state b an k in g d e p a rtm e n t for th e
p ast 15 years, and recen tly resigned
as d ep u ty of banks. H is hom e is in
M ontevideo w h ere he sta rte d in th e
b an k in g business in 1914.

Building Purchased
P u rch ase of a lot and one-story
building in D uluth by th e B ank of
Com m erce & Savings, w hich will
m ove into th e stru c tu re next year,
w as announced. The pu rch ase price is
understood to be aro u n d $50,000.
Ja y E. M arkle, p resid en t of the
bank, w ho announced th e p u rch ase of
th e pro p erty , said th a t te n ta tiv e plans
call for th e rem odeling of th e stru c ­
tu re n ex t sp rin g and th a t it w ill be
occupied by th e bank, w hich has o u t­
grow n its p resen t q u arters. T here is
Federal Reserve Bank of St. Louis



also a stro n g possibility, he said, th at
th e bank m ay add four stories in the
n ear fu tu re to be used as an office

Dies in Stephen
H. I. Y etter, presid en t of th e F irst
N ational bank of Stephen and a
b an k er th ere for m ore th a n 50 years
died recently.
Mr. Y etter w as born in Plainview ,
Minn., in 1860, and opened a p rivate
b ank in S tephen in 1888. The bank
later becam e th e F irst N ational bank
and he rem ained the active head of the
in stitu tio n up to the tim e of his death.

are Louis H am m el, president; A. H.
Lietz, vice president, and E. A. Steichen, a ssistan t cashier.

H arvey Boode has resigned his job
as teller a t the Becker County N a­
tional bank, D etroit Lakes, it w as an ­
nounced by Alden Pearson, cashier.
Boode had been associated w ith the
in stitu tio n since 1928. His position w ill
be shared jointly by Jo h n P earson
and K ent Rogstad.

Elected Cashier
Theodore F. F ranke, cashier of the
F arm ers S tate b ank of Eyota, has sold
his in te re st in th e in stitu tio n to C lar­
ence P alen of Ogilvie, Minn., w ho has
been elected cashier of th e bank.
He has been in th e banking bu si­
ness at Ogilvie and Long Siding,
Minn., and recently has been in the
w holesale business at Ogilvie.
Mr. F ran k e, em ploye of the E yota
b an k for 26 y ears and cashier since
1918, m oved to R ochester to devote his
en tire tim e to th e P ru d en tial In s u r­
ance com pany.
O ther officers of th e E yota bank

Vitally Important
to a b a n k located in a com ­
m u n ity w here livestock is
a facto r
is a
In a L ivestock C enter
W e In v ite Y o u r A ccount

Member Federal Deposit Insurance
Corpora tion

“ T E L L IN G P O IN T S ” is a
booklet o f facts about N ^ N L
high lighting various phases
o f th e C om pany’s record in
sim ple, visual style. T he charts above
(taken from a page in the 1939 edition )
illustrate N W L ’s con sisten t progress
over th e past decade in three im por­
ta n t respects.


Northw estern National

O.J.ARNOLD, President

S T R O N G - ' Minneapolis.Minn. —L I B E R A L

Northwestern Banker

December 1939


• M I N N E S O T A
Capital Increased
D irectors of th e S tew artville N a­
tional b ank announce th a t $20,000 ad­
ditional capital stock w as voted at
a recen t m eeting of th e board. This
m akes th e to tal capital stock of the
fast grow ing in stitu tio n $55,000.
In addition to th e capital stock th e
Stew artville N ational b an k has a s u r­
plus of $11,520.00 and n early $8,000 in
undivided profits.

Personnel Changes
At a m eeting of th e directors of
N orth w est B ancorporation tw o offi­
cial changes w ere m ade in th e p erso n ­
nel of th e co rp o ratio n ’s In v estm en t
D epartm ent.
Von E. L u scher w as elected m an ­
ager of th e In v e stm e n t D epartm ent,
succeeding W. L. M itten, vice p re si­
dent and fo rm er m anager, w ho died
M arch 3, 1939. A rth u r R. E v an s w as
elected a ssista n t m anager.
Mr. L u scher has been in th e org an ­
ization since 1927 w h en he took a
position w ith th e T ru st D ep artm en t
of th e M innesota Loan and T ru st
com pany. L a te r on he w as tra n sfe rre d
to the securities d e p a rtm e n t w hich
w as succeeded by th e Banc N o rth w est
Company. Mr. L usch er cam e to th e


in v estm en t d ep artm en t of th e N o rth ­
w est B ancorporation D ecem ber 1,
Mr. Evans, form erly of La Crosse,
W isconsin, cam e to the inv estm en t de­
p a rtm e n t of N orthw est B ancorpora­
tion Ju n e 15, 1931 from Bacon, W hip­
ple and Company, in v estm en t b ankers
in Chicago.

(C ontinued from page 17)
th e free services rendered. It is plain
th a t operating below costs m akes it
im possible to set up reserves for losses
or to charge them off after th ey are
determ ined.
A nd th a t brings me to No. 5 on our
program , nam ely R eserves for Losses.
T here is every th in g to be said in favor
of settin g up adequate reserves for
losses, ra th e r th a n w aiting to charge
th em off after th ey have actually oc­
curred, or w hen th e exam iner has or­
dered th em charged off. It is m uch
easier and safer to set up reserves d u r­
ing good y ears and tim es of p ro sp erity
and good earnings, th a n to charge off
losses d u rin g bad y ears and tim es of
depression or poor earnings, and it is
uu sally d u rin g th e la tte r tim es th a t the
heav y losses occur.

A ccepting th a t policy as sound, how
m uch of a reserv e should be set up for
losses each year as a definite p a rt of
our overhead expenses d u rin g good
years and bad? F o rtu n ately , a th o r­
ough analysis of the experience of all
banks in th e U nited States for th e p ast
75 years has been made, and by no less
an a u th o rity th a n th e F ederal Deposit
In su ran ce C orporation. I read you
th e ir finding given in th e ir an n u al re ­
p o rt for th e year ended D ecem ber 31,
1938. “Over th e p ast 75 y ears th e b an k ­
ing system has had to absorb approxi­
m ately $14,000,000,000 of losses, or
m ore th a n 1 p er cent of total deposits.”
T here you have it! D uring good years
and bad, depressions, panics, pro sp er­
ity, peace and w ar, th e average annual
losses, less recoveries, have been about
1 per cent of th e deposits in th e banks
of the nation. T his is sim ple to figure.
Pass into reserv es for losses 1 p er cent
of your deposits each year and charge
y o u r losses w hen th e y are determ ined
against th is account and re tu rn all re ­
coveries into it. W e expect our bor­
row ing custom ers to m ake adequate
provision for losses, w hy not do it o u r­
This brings me to No. 6—Dividends,
in our program of disbursem ents. It is
ju st as essential th a t stockholders get
a re tu rn on th e ir m oney in th e b ank
as th a t th e o th er d isbursem ents should
be made. In view of th e risk involved
a ra te of 8 p er cent on th e capital stock
is not excessive. T aking into account
th e surplus, reserves and undivided
profits w hich th e stockholders have in ­
vested in the business this 8 per cent
rate actually am ounts to less th a n 4
p er cent on invested capital, nor should
th e ra te be h ig h er for fear th a t too
m uch w ill be tak en out to th e in ju ry
of reserves or for fear th a t th e public
w ill be overcharged for services re n ­
dered by th e bank.
A pplying th e policy w hich w e have
been developing here, I have prepared
Schedule F, w hich gives effect to it as
applied to th e 1938 earnings and dis­
bursem ents of th e various banks.
T his schedule show s th a t if adequate
provision w ere m ade for losses and
dividends, South D akota banks would
fall sh o rt an average of $2,100 per b ank
in 1938. In th is respect, th e record of
the state banks w as b e tte r th a n th a t
of th e n ational banks of th e state. The
average U nited States b an k fell short
to th e ex ten t of $20,656 from th e de­
sired result. I t should be said, how ­
ever, th a t th e banks of th e U nited
States actually charged off 52 per cent
of the desired 1 p er cent of deposits
(T u rn to page 48, please)

Federal Reserve Bank of St. Louis

December 1939


County Key Bankers
A list of 53 county key b ankers, to
aid in th e b an k er-farm er contact w ork
of ag ricu ltu ral developm ent, sponsored
by th e ag ricu ltu ral com m ittee of th e
N orth D akota B an k ers’ Association,
has been announced by F. A. Irish,
p resid en t of th e F irs t N ational Bank,
Fargo, and ch airm an of th e sta te com ­
m ittee.
T here are th re e counties, Slope, Oli­
v er and Billings, w hich are now w ith ­
out banks, and in th ese counties m en
have been nam ed w ho have long been
active in ag ricu ltu ral developm ent
w ork in th e ir ow n com m unities.
“The com m ittee, w orking th ro u g h
its county key b ankers, does not in iti­
ate its ow n projects, b u t th ro w s its
w hole efforts b ehind th e State B an k ­
e rs ’ A ssociation, th e G reater N orth
D akota A ssociation, and all d e p a rt­
m ents of th e A g ricu ltu ral College,”
Mr. Irish explained. “F o r eight con­
secutive years, b an k ers of th is state
have received th e 1,000 per cen t p ro ­
ficiency aw ard of th e A gricu ltu ral
Com m ission of th e A m erican B ank­
e rs ’ A ssociation, for w ork in th is field.
Only tw o o th er states have m ade an
equal record. T hey are Oregon and
G eorgia.”
Serving w ith Mr. Irish on th e state
com m ittee, are: J. P. W agner, Bis­
m arck; F. A. Foley, Rolla; A. L.
N etcher, Fessenden; and C lark B as­
sett, Fargo.
T he com plete list of county key
b an k ers follows: Adams, A. G. N ew ­
m an, H ettin g er; B arnes, E rie L.
F ouks, V alley City; B enson, A. W.
Engel, E sm ond; Billings, J. F. T ester,
M edora; B ottineau, W. H. G jerdingen,
B ottineau; Bowm an, D. G. Hogoboom,
Bow m an; B urke, H. M. W estrum ,
Bowbells; B urleigh, N. I. Roop, Bis­
m arck; Cass, Jo h n Ottis, K indred;
C avalier, L. E. Callahan, M unich;
Dickey, B. R. C rabtree, E llendale; Di­
vide, E. G. H anson, Crosby; D unn, H.
M. W eydahl, K illdeer; Eddy, L. W.
Schwoebel, N ew R ockford; E m m ons,
G. A. L en h art, H azelton.
F o ster, J. C. H offert, C arrington;
Golden Valley, T. E. H udson, Beach;
G rand F orks, A. A. H olm quist, Gilby;
G rant, A. O. F latlan d , Carson; Griggs,
George H. Jo h n sto n , Cooperstow n;
H ettin g er, J. F. M cEntee, New E n g ­
land; K idder, V erne W ells, Robinson;
LaM oure, F. B. Sullivan, B erlin; Lo­
gan, George L aney, Napoleon; Mc­
H enry, M. T. Thom pson, T ow ner, Mc­
Intosh, J. J. Doyle, W ishek; M cKenzie,
O. N. Stenehjem , W atford City; Mc­
Lean, PI. A. F isch er, W ashburn.
M ercer, R obert M. Stroup, H azen;
M orton, F. H. E llw ein, New Salem;
M ountrail, M. J. Olson, Sanish; Nel­
Federal Reserve Bank of St. Louis

Pres id e nt
F a rg o

son, H. E. E ngesather, Petersburg;
Oliver, B. W. W ilcox, C enter; P em ­
bina, F ra n k lin Page, H am ilton; Pierce,
H. O. Lyngstad, Rugby; Ram sey,
T hom as M. Kelly, W ebster; Ransom ,
E. N. K ittelson, E derlin; R enville, E.
L. H ubbard, Mohall; R ichland, C. A.
Bonzer, Lidgerwood; Rolette, W. A.
Moen, Rollette; Sargent, G. A. Klefstad, Form an; Slope, M. E. Johnson,
Amidon; Stark, J. O. M ilsten, Belfield;
Steele, M. G. Pederson, Hope; S tu ts­
m an, K. A. W erner, Streeter; Tow ner,
H. R. Rendahl, Cando; Traill, O. C.
S tusrud, Mayville; W alsh, J. H. Vorachek, L ankin; W ard, W. E. Tooley,
Minot; W ells, E dw in Lysne, H arvey;
W illiam s, J. A. C unningham , W illiston.

Grand Forks Meeting
A. C. Idsvoog, presid en t of th e G raf­
ton N ational Bank, and th e b an k ers of
th e second district, presided at a m eet­
ing in G rand F o rk s w hen problem s of
N orth D akota in stitu tio n s w ere dis­
cussed. F ifty ban k ers attended.
Speakers w ere F ra n k Scott, Fargo,
p resid en t of th e S tate Association;
M artin Aas, New Rockford, vice p resi­
d en t of th e S tate Association; A. R.
M oorhead, M inneapolis, w ho discussed
tax m atters as regards business in gen­
eral; H. D. Paulson, editor of th e F a r­
go F orum , w ho spoke on th e sta te ’s
financial situation; W esley McDowell,
Fargo, form er presid en t of th e Asso­
ciation, and C. C. W attam , Fargo, sec­
re ta ry of th e S tate A ssociation, w ho
talked of activities of th e Association.
O ther W alsh county b an k ers a t th e
m eeting w ere: W. J. Johnston, G raf­
ton; K. D. B ennett, P a rk R iver; O. H.
L undquist, Adams; J. H. V orachek,
L ankin.

Dies In Fargo
O. R. Larson, 53, vice presid en t of
th e F arm ers S tate b an k of Maddock,
and presid en t of th e board of educa­
tion of the Benson County A gricul­
tu ra l school, died recen tly in a F argo
hospital, w here he had been treated
for a h e a rt ailm ent.

Se cre ta ry
Fa rg o

Assistant Cashier
H en ry E. H anson, one of th e senior
a ssista n t cashiers of th e F irst N ational
b ank of B ism arck, has assum ed the
duties of R ichard H. B arry, w ho accep­
ted th e position of a ssistan t cashier
of the M erchants N ational B ank and
T ru st com pany of Fargo.
H anson has been a m em ber of the
local b ank staff since 1917 w hen he
came from D ickinson w here he had
been connected w ith th e F irst N a­
tional b an k of Dickinson.

In Valley City
Taxes, b an king problem s, and gen­
eral state and national economic condi­
tions w ere discussed by nearly fifty
ban k ers at a so u th eastern district
m eeting of th e N orth D akota B ankers
A ssociation in Valley City.
W. A. Lillequist, presid en t of th e
F arm ers S tate B ank a t Lisbon and dis­
tric t president, presided. E rie Fouks
of Valley City, d istrict secretary, states
th a t Valley City w as selected for the
1940 sp rin g m eeting.

C. B. Tem plem an, presid en t of th e
S ecurity S tate bank of D unseith since
it w as reorganized in 1932, has re ­
signed th e office on account of ill
health. He also is resigning his direc­
torsh ip in th e in stitution.
The board of directors has appointed
C. E. W atkins to fill the vacancy on the
board tem porarily.

Assistant Cashier
T. A. Solheim has become assistan t
cashier of th e A m erican State B ank of
H e cam e from Fessenden,
w here he w as connected w ith th e F irs t
N ational B ank of th a t city. F o r a
tim e he also w as connected w ith a
b ank a t Rugby. H is hom e is n ear

W atcha G o t
The n u rse en tered th e professor’s
room and said softly: “I t ’s a boy, sir.”
The professor looked up.
“Well, w h at does he w an t?”




E T H E L W. W A L K E R
Secretary-Trea s ure r

O. M. J O R G E N S O N
Pr es id ent

Group Elects
Joseph S w in d leh u rst of L ivingston
w as elected p resid en t of th e M ontana
B uilding and Loan league at th e clos­
ing session of th e fifteenth an n u al
m eeting of th e league in Billings. He
succeeds P aul W. Sm ith of Helena.
The delegates from n early 20 state
building and loan associations w ho a t­
tended th e day-long convention voted
to hold the 1940 m eeting in Helena.
V. D. Clark of B illings w as elected
first vice p resid en t of th e group; Jo h n
W. Schroeder of H elena w as nam ed
second vice p resid en t and A lbert Besancon of M issoula was renam ed sec­
retary -treasu rer.
F re d W. C atlett of W ashington, D.
C., a m em ber of th e federal hom e loan
bank board, w as featu red speaker. He
described th e building and loan o pera­
tions of th e federal agency and its
m em ber banks.
His talk w as followed by one given
by Irv in g Bogardus, vice p resid en t of
the P o rtlan d F ed eral Hom e Loan
bank of P ortland, Ore. Mr. Bogardus
explained th e localized functions of
th e banks of this agency.
The program of the closing m eeting
included discussions of the last P a ­
cific States B uilding and Loan con­
ference and of th e U nited States
league m eeting held d u rin g th e sum ­
mer. D elegates from M ontana m em ber
associations took p a rt in th e discus­

New Director
M. E. Slayton of Columbus, w as
elected a directo r of th e Yellow stone
bank, at th e reg u lar N ovem ber m eet­
ing of th e board, it w as announced by
B. M. H arris, b ank president. Mr. Slay­
ton succeeds th e late W. J. Crismas.
The new directo r is a son of D. F.
Slayton, for 32 y ears a m em ber of the
board of directors of th e bank.

Elected Director
H arvey D. Gibson, p resid en t of
M anufacturers T ru st Company, a n ­
nounces th a t Jo h n M. F ra n k lin , p resi­
den t of th e U nited S tates Lines, has
been elected a directo r of th e bank.
Federal Reserve Bank of St. Louis

(C ontinued from page 46)
th a t year, w hich m ade a b e tte r show ­
ing for them , b u t I m ain tain th a t th is
w as not sufficient.
I have tak en th e figures show n in
Schedule F and reduced th em to a
basis per $100 of deposits and give
th em in Schedule G.
The ratios and proportions I have
given you are derived from official
sources. T hey are enlightening. I be­
lieve th ey show th a t th e banks of
South D akota are v ery m uch over­
staffed com pared w ith th e U nited
States averages. I believe th e y show
th a t th e chief cause for th is is th e ex­
cessive am ount of free or underpaid
services rendered by the banks to th e ir
custom ers. I believe th ey show th a t
th e individual em ployes of the banks
are u n d erpaid to th e ex ten t of 27 per
cent as com pared w ith the n atio n ’s
averages. I believe th ey show th a t at
least some of the banks in the state are
still paying too m uch in terest for tim e
money. H ow ever, th e w ar m ay change
this. I believe th ey show th a t the
banks of th e state have m ade inade­
q uate cost analyses, and are governed
in th e ir fiscal operations entirely too
m uch by th e fear of th e ir com petitors.
I believe th ey show th a t inadequate
reserv es for losses are set up by the
banks of th e state as w ell as those of
th e nation. And I believe th ey show
th a t inadequate provision for divi­
dends to stockholders has been made
in a num ber of instances.
I believe it is w orthw hile or, at least,
en lig h tening for each one of us to com ­
pare his own o perating ratios w ith
those show n by th e official figures.
P erh ap s he can see w here he can im ­
prove his own situation. It cannot be
too strongly urged th a t adequate re ­
serves, at least as large as th e 75 year
average of losses in banks as found by
th e FDIC, be set up as against fu tu re
losses. Such a reserve, w hich am ounted
to over 100' per cent of capital stock in
o u r case, cam e in h andy to take up
bond losses in 1930 and 1931. I have
re fe rred to this several tim es because

I believe we should take to h e a rt the
w arn in g issued by th e FDIC th a t u n ­
less such reserves are set up, our rate
of assessm ent for deposit insurance
m ust necessarily be increased ra th e r
th a n decreased in th e n ear future.
In conclusion, let me urge you to
keep a continuous record of your oper­
ations by schedules, ratios, graphs or
charts, so th a t you w ill know at all
tim es ju st w h at your operating trends
are, w here you can increase your earn ­
ings, or w h at is m ore to th e point, re ­
duce your u n necessary overhead. Sim­
ple schedules do not req u ire m uch
tim e or effort and th ey are certainly
w orthw hile. And please get rid of the
notion th a t it is good public relations
to give free services or th a t th e public
loves you for giving them away. W hen
you give som ething for n o thing to the
average person, he instin ctively th in k s
you took it aw ay from som eone else
or are expecting to get it back from
him later in a different and perhaps
u n d erhanded way.
Make y o u r charges uniform , and
m ake no exceptions. If you do, v ery
soon the exception w ill be the rule.
A nd again I urge you to operate profit­
ably and lay up reserves against the
day w hen you w ill need them . Oper­
ate the w ay th e filling statio n does—
give aw ay free air and free w ater, b u t
charge for every th in g else!

Christmas Club
S anta Claus is going to have a well
filled pack th is y e a r as a resu lt of
reg u lar w eekly deposits in m utual sav­
ings bank C hristm as Club accounts
th ro u g h o u t 1939. Follow ing th eir up­
w ard clim b for some tim e past, these
deposits have reached a new high
point. The total for 17 states in w hich
m u tu al savings banks operate will
am ount to $61,384,914, belonging to
1,438,732 C hristm as savers. This is
an average account of $42.67.
New York easily leads in point of
deposits and depositors, th e aggregate
am ount being $27,190,016, holiday
funds of 636,094 depositors. In the
order of states M assachusetts ran k s
second, having deposits of $14,500,000,
and accounts num bering 354,000. Con­
necticut stands third, deposits being
$6,321,459, depositors n u m bering 145,681. New Jersey is fourth, w ith fig­
ures of $3,662,250, and 70,319 deposi­
“Increased saving for C hristm as
th is y ear undoubtedly reflects im ­
proved business and em ploym ent,”
said Jo h n W. Sandstedt, executive sec­
re ta ry of the N ational A ssociation of
M utual Savings Banks. “Also this
gain proves th e grow th of saving for
special purposes.”

u n d er $17,000; today th ey approxim ate
$800,000. P rim g h ar is located in N o rth ­
w estern Iow a and is one of th e sub­
stan tial Iow a tow ns. It has a popula­
tion of 1,000 people. The p resen t active
officers include th e follow ing w hose
nam es are w ell know n th ro u g h o u t
th a t p a rt of th is state:
R. H inm an, president; O. H. Montzheim er, vice president; F. C. Bordewick, cashier, and Jam es H. Metcalf,
a ssistan t cashier.

Pres id e nt
Sioux City

Des Moines A . I. B.
T he A m erican In stitu te of B anking
m em bership has show n m uch in te re st
in th e B eg in n er’s B anking Class. We
have had a v ery consistent atten d an ce
—even b e tte r th a n we had hoped.
Some of th e older m em bers are a t­
ten d in g to get th e benefit of th e
sp eakers p oint of view on th e v arious
T he follow ing m en have spoken so
Jam es W. E d e n b u rn —C redit M an­
ager, B an k ers T ru st Co. S ubject—
B ank O rganization.
R ay M iller—C ashier, C apital City
State Bank. Subject—P aying and Re­
ceiving F unctions.
Lloyd Roe—Dept. M anager, IowaDes M oines N ational B ank & T ru st
Com pany. Subject—A nalysis of Ac­
R. L. C arson—A uditor, Iowa-Des
M oines N ational B ank & T ru st Co.
S ubject—T ra n sit and Clearings.
M axcine B arron, Secretary.

Group Six Meeting
The first of th e custo m ary annual
fall group conferences of the Iowa
B ankers A ssociation w as held in Des
M oines on N ovem ber 8. The ban k ers
of G roup 6 com prising 12 counties in
cen tral Iow a sat dow n to a 6:30 d in n er
a t th e F t. Des M oines Hotel. The m eet­
ing w as presided over by R. R. Rollins,
vice p resid en t of th e B ankers T ru st
com pany in Des Moines, ch airm an of
G roup 6, aided by R ay O. Bailey, sec­
re ta ry of G roup 6 and vice p resid en t
of th e Ja sp e r C ounty Savings b ank at
N ew ton. Clay S tafford of Ames, vice
p resid en t and tre a s u re r of the Iow a
B ankers A ssociation, cashier of the
Ames T ru st & Savings bank, extended
greetings upon behalf of th e state
association. An active and in terestin g
g eneral “R ound T able” co n stitu ted th e
program itself as th e re w ere no set
speeches. The question of adopting
u niform business h o u rs for th e banks
of G roup 6 as w ell as adopting some
one half day each w eek d u rin g w hich
b anks w ould be closed w as th o ro u g h ly
Federal Reserve Bank of St. Louis

Secre tary
Des Moines

discussed, and a m otion w as adopted
th a t all should go home, discuss the
m a tte r w ith th e ir boards of directors
and th en come to th e next m eeting at
th e call of the ch airm an w hen they
should take definite action in adopting
un iform closing hours for all the banks
of Group 6. In view of this plan, the
o th er fall group conferences have been
delayed to see w h at action shall be
ta k en at th a t m eeting by the b ankers
of Group 6.

Membership Meeting
B. A. G ronstal, p resid en t of the
Council Bluffs Savings B ank and a
m em ber of th e m em bership com m it­
tee of the A. B. A. this year, in coop­
eration w ith J. J. Miller, C ashier of
th e W aterloo Savings bank and A.B.A.
vice p resident for Iowa th is year,
called a m eeting of the Iowa A.B.A.
officers in Des Moines on N ovem ber
13. G eneral plans w ere discussed and
outlined for in itiatin g the ann u al
A.B.A. m em bership cam paign in Iowa.
J. J. Miller, as A.B.A. vice president,
w ill soon send out a le tte r to those
b anks in Iowa th a t at th is tim e are
not m em bers of the A. B. A.

At Indianola
The latest published statem en t of
the Peoples T ru st & Savings bank, In ­
dianola, show s total assets of the in ­
stitu tio n standing at $1,841,840. In ­
cluded in th is am ount is cash of $452,124, U nited States governm ent bonds
of $314,332, m unicipal bonds of $371,765, and loans and discounts of $627,415. Deposits of the bank, both dem and
and tim e, are $1,667,161.
D irectors of the Peoples T ru st &
Savings B ank are W illiam B uxton, Jr.,
J. H. W atson, R aym ond Sayre, F. C.
Sigler, M. F. H enderson, W. N. G rant,
V. C. W atson, and W illiam Buxton, III.

Miss W arden Arrives
F ra n k R. W arden, vice presid en t of
the C entral N ational B ank and T ru st
Co. of Des Moines is receiving con­
g ratu latio n s on the arriv al of a new
baby daughter, w eight eight and threeq u arters and a b ru n ette. The arrival
of Suzanne M arie m akes the W arden
fam ily a group of four, since th ey have
a boy now sixteen m onths of age.

Guest Flight
Air-m inded A. G. Sam, new vice
p resid en t of th e F irs t N ational B ank
of Sioux City, w as one of the com m it­
tee of a dozen pro m in en t Sioux Cityans w ho last m onth enjoyed a special
guest flight in one of th e new Lock­
heed fourteen passenger airplanes
w hich the M id-Continent A ir Lines
have added to th e ir equipm ent.
The new plane m ade dem onstration
flights in Sioux City, H uron, South
Dakota, Des Moines and various other
m id-w estern cities.

Fifty Years
The F irs t N ational B ank at Prim g h ar has sent out to its p atro n s and
friends a very in terestin g pam phlet
com m em orating the 50th an n iv ersary
of the founding of th a t bank. The bank
w as founded N ovem ber 11, 1889. In its
first year its deposits w ere slightly

P ic tu re d above is the personnel of
the W alcott T ru st & Savings B ank
of W alcott, Iowa. The in terio r of
the b an k has recently been rem od­
eled. A. M. Sindt, cashier, appears
on the le ft; in the center is the
young lady who tak es care of the
bookkeeping d ep artm en t; and P. A.
D ietz, president, stands on the right.




Federal Reserve Bank of St. Louis

6th and Locust Streets





D uring the last two years, it has been the pleasure of the B ankers T ru st
C om pany to present to the bankers of Iowa and surrounding states, the
inside stories of a num ber of the largest “ Institutions th a t M ake Iow a’’.
L im itations of time and space, of course, m ade it impossible to cover the
entire field. This presentation has, however, helped to give a view of the
m agnitude of Iowa as a home of m any institutions whose fame is nation and world-wide
To again call to your m ind the institutions which have been featured, here is a list— in
the order in which they appeared:
T he M ay tag C om pany........................................................................................................................ N ew ton
E quitable Life Insurance Com pany of Io w a......................................................................... Des M oines
F. W. F itch C o m p an y .................................................................................................................Des Moines
The R a th Packing C om pany...........................................................................................................W aterloo
W. A. Sheaffer Pen C om pany................................................................................................F o rt M adison
Y ounker B ro th e rs........................................................................................................................................ Des Moines
M u rray Iron W orks C om pany.....................................................................................................Burlington
American M u tu al Life Insurance C o m p an y.......... ................................................................ Des Moines
Iowa Broadcasting C o m pany....................................................................................................................Des Moines
Iowa Power and L ight C om pany.............................................................................................................Des Moines
W estern Grocer C om pany.......................................................................................................M arshalltow n
Clinton Lock C om pany....................................................................................................................... Clinton
M eredith Publishing C om pany.................................................................................................................Des M oines
The A rmand C om pany...............................................................................................................................Des M oines
John M orrell 62 C o m pany..............................................................................................................O ttuw m a
Bankers Life of Io w a.................................................................................................................................. Des Moines
Iowa Canning C om pany....................................................................................................................... Vinton
Rollins Flosiery M ills.................................................................................................................................. Des Moines
Iowa State College....................................................................................................................................Ames
S tate U niversity of Io w a............................................................................................................... Iowa C ity
C entral Life Assurance Society.................................................................................................................Des M oines
Quaker O ats C om pany........................................................................................................................... Cedar Rapids
Green Foundry and Furnace W o rk s....................................................................................................... Des M oines

In bringing to a close this series of advertisem ents, Bankers T ru st C om pany is confident
it speaks for all of these institutions in wishing the bankers of Iowa and the surrounding
states a Very M erry Christm as.

Federal Reserve Bank of St. Louis

Member Federal Deposit Insurance Corporation
Member Federal Reserve System

Des Moines


County Meeting
L ouisa-W ashington
C ounty
B ankers A ssociation and a p a rt of th e
H enry C ounty group m et in W ayland
on N ovem ber 16th in th e high school
auditorium for a b an q u et and the
yearly election of officers.
The b an q u et w as served to eightyfour guests by m em bers of the P.-T.A.
The high school o rch estra played sev­
eral num bers.
H. B. H am m er of W apello presided
at th e business m eeting and Carlton
Sias of W aterloo spoke on “The P ro b ­
lem s of The B ank D irectors.”




Officers elected were: F ra n k C.
Crone, executive vice p resid en t of
N ational B ank of W ashington, p resi­
dent; W. F ra n k S toutner, president
of S ecurity State bank, Keota, vice
president, and J. E. H enson, cashier,
Louisa C ounty N ational bank, Colum­
bus Junction, secretary-treasurer.

Keokuk A . I. B.
K eokuk’s Study Group class—tw elve
in n u m ber this y ear—got off on its sec­
ond y ear of A.I.B. w ork headed by
th e sam e popular p resid en t as last

year, H arold M artin, a ssistan t cashier
of the Security S tate bank, and w ith
M argaret H ayes, of th e State Central,
as secretary and treasu rer. The class
has th e sam e teach er as last year,
Joseph P rall, in stru c to r in the Gem
City B usiness college of Quincy, Illi­
nois, and w ho has tau g h t A.I.B. to the
Quincy ch ap ter for a num ber of years,
w ith a large degree of success. As this
goes to press, the' K eokuk group is
delving into the intricacies of com ­
m ercial law and are finding th is y e a r’s
w ork hightly in terestin g and fascinat­
R alph Brow nlee, class m em ber, who
saved his vacation u n til late to sort
of ta u n t those of us w ho had gone
in May—enjoyed the D airy Cattle
Congress and Belgium H orse Show at
W aterloo.
H elen J. K ollm yer, R eporter.

Davenport Meeting
T he 'second m eeting th is year of the
Iow a A ssociation of B ank A uditors
and C om ptrollers w ill be held w ith
a 6:30 d in n er at th e B lackhaw k Hotel
in D avenport on th e evening of De­
cem ber 7th. The D avenport banks will
be hosts. The B ank A uditors and
C om ptrollers A ssociation is affiliated
w ith th e Iowa B ankers Association
and w as founded du rin g th e conven­
tion of th e Iowa B ankers A ssociation
in 1938. The A ssociation endeavors
to have four q u arterly m eetings per
year, each m eeting being held in a
different section of th e state. The last
m eeting w as held at Council Bluffs in
Septem ber. The auditors and com p­
tro llers ch ap ter in N ebraska m et jo in t­
ly w ith th e Iow a chapter. The Illinois
ch ap ter has been invited to m eet w ith
th e Iow a ch ap ter at D avenport.

CHRISTMAS, 1939 © NEW YEAR, 1940

W e w e lc o m e this o p p o rtu n ity to e x te n d
to y o u o u r w a rm e s t w is h e s for a M erry

C h ristm a s


a H appy

N ew

Y ear.

Members, Federal D eposit Insurance Corporation



Y A R D S ,


N orthw estern B anker D ecem ber 1939
Federal Reserve Bank of St. Louis

Federal Member
The F ederal R eserve B ank of Chi­
cago announces th a t th e F idelity Sav­
ings Bank, O ttum w a, form erly know n
as F irst B ank & T ru st Company, has
been adm itted to m em bership in the
F ederal R eserve System . W alter T.
H all is presid en t of th e bank, W alter
L ight is executive vice p resid en t and
cashier, F. A. P alm er is vice president,
and Roy E. Stevens is vice president.
The bank has deposits of approxim ate­
ly $1,500,000.
The F irst B ank & T ru st Co. becam e
th e F idelity Savings Bank, following
approval by stockholders and directors
of the nam e change and a recapitaliza­
tion program .
U nder th e change in capital stru c ­
ture, preferred stock held by th e Re-


co n stru ctio n F in an ce C orporation is to
be reduced from $162,000 to $75,000,
and capitalization fixed at $200,000, in ­
cluding $75,000 of p referred stock, $75,000 of com m on stock and $50,000 of

Grinnell A . I. B.
The G rinnell Study G roup com ­
pleted its re-organization and is now
well in its fifth y ear of study. The
classes, as usual, are being held in th e
G rinnell S tate Bank, w hose officers
have so generously proffered th e use
of th e ir b an k in g room s.
T his y ear th e class is stud y in g
“M oney and B an k in g ’' u n d e r th e com ­
p eten t in stru c tio n of P rofessor J.
C harleton of th e G rinnell College F ac­
ulty, w ho last year ta u g h t th e class
“Econom ics.”
T h ere are sixteen m em bers enrolled
in th e class w ho have chosen W. N.
Shellenbarger, cashier of th e H artw ick
S tate Bank, as president, and R. W.
W elle, m anager of th e Sully B ranch
Office of th e Kellogg Savings B ank, as
secretary -treasu rer.
The board of
governors are H ugh McCleary, L. M.
L anning, Floyd M cAllister, W. R.
Quigley, W. N. Shellenbarger, ex-offi­
cio, and R. W. W elle, ex-officio.
The follow ing b anks are rep resen ted
by m em bers of th e class: H artw ick
State Bank; G rinnell State B ank; Peo­
ples Savings Bank, L aurel; Ja sp e r
C ounty Savings B ank, N ew ton; Pow e­
shiek C ounty Savings Bank, Brooklyn;
and Kellogg Savings Bank.
P au lin e E. H an n sp erg er, R eporter.




Duck Dinner
Em ployes of th e F arm ers & M er­
chants Savings Bank, B urlington, and
th e ir w ives w ere en tertain ed by Mr.
and Mrs. Ray D urbin at a duck d inner
a t th eir hom e in W apello.
G uests included Mr. and Mrs. M. E.
Toothacre, Mr. and Mrs. H enry Rudy,
Mr. and Mrs. Jack Boden, Mr. and Mrs.
C harles H. W alsh, Mr. and Mrs. H er­
b ert W ittcam p, Miss R uth H agerty,
Miss M argaret V andevert, R obert
Riepe, Miss Grace Orr, Miss Myla
K eehn, Miss G ertrude Sheagren, Wal-

te r F unk, all of B urlington, and Mr.
and Mrs. Jak e W aterhouse, Oakville.

New in Clear Lake
The Clear Lake B ank and T ru st
Com pany opened its doors last m onth,
succeeding the F irs t N ational Bank.
The new bank opened w ith a paid
up capital stock of $50,000, su rp lu s $10,000, undivided profits and reserve of
$34,000, m aking a total of approxim ate­
ly $94,000.
The officers are: P resident, C. A.
K nutson; vice president, T. L. Sears;




B a n k e rs in th e S io u x C ity tra d e a re a fre q u e n tly com m ent

It is rep o rted th a t four Iow a banks
w ill spend $32,000 d u rin g th e n ex t year
on in te rio r alterations.
In m ost in stances th e w ork includes
new fixtures, vaults, cabinets, new
lighting fixtures and general a lte ra ­
The largest of these projects is at
Red Oak, w here H oughton S tate B ank
w ill spend $16,000 on im provem ents.
F irs t N ational B ank a t C reston will
im prove its building at a proposed cost
of $7,000.
C itizens N ational B ank at Boone
will u n d e rta k e a $6,000 im provem ent
program , w hile F irs t N ational B ank at
P e rry w ill m ake alteratio n s and add
fixtures costing $3,000.

on th e close a tte n tio n even th e ir sm allest co rre sp o n d e n t


item s a re given at th e F irs t N a tio n a l B an k in S io u x C ity.
All y o u r item s— sm all o r la rg e— a re im p o rta n t to us, and
w e solicit y o u r busin ess w ith th e assu ra n ce you w ill be
pleased w ith o u r co o p eratio n .

J. R. G R A N IN G
A. S. H A N F O R D
Assistant Cashier
E. A. J O H N S O N
Assistant Cashier
Vice President
J. P. H A I N E R
Assistant Cashier
Vice President
F R I T Z F R I T Z S O N , V ic e President & Cashier
Member Federal Deposit Insurance Corporation

F. E. D A V E N P O R T & C O .
Federal Reserve Bank of St. Louis

Northwestern Banker

December 1939

cashier, L. W. S herm an; assistan t
cashier, R. R. Rogers.
The d irectors are: George Peitzke,
H ans H endriksen, Jam es P eterson, C.
A. K nutson, T. L. Sears.

Dumont Meeting
The B utler C ounty B ankers Asso­
ciation m et in D um ont for its m eeting.
A 6:30 d in n er w as served to 15 m em ­
bers by th e H om e cafe.
R ep resen tativ es w ere p re se n t from
Allison, A redale, Clarksville, Greene,
P ark e rsb u rg and Dum ont.




New Examiner

County Meeting

D. W. Bates, state su p erin ten d en t of
banking, has announced th e ap p o in t­
m ent of E dw in (Buck) M anning, Ot­
tum w a, as exam iner in charge of four
Jefferson county b ank receiverships.
M anning form erly w as tre a su re r of
th e republican state cen tral com m it­
The receiverships include th e Iowa
State Savings Bank, th e Iow a Loan
and T ru st Co., and th e F arm ers State
Bank, all of Fairfield, an d th e Linby,
Iowa, Savings Bank.

Two special problem s w ere dis­
cussed at th e Jackson C ounty B ankers
A ssociation m eeting held in th e Jackson S tate B ank in M aquoketa, w ith 14
m em bers present, and W. L. W hite, of
Spragueville, presid en t of th e associa­
tion, presiding.
R epresentatives of banks in M aquo­
keta, B aldw in, Bellevue, A ndrew,
Miles and Spragueville rep orted th a t
th e ir problem in m eeting th e 42-hour
law w ere individual, and could n ot be
settled by county association action.
I t w as decided th a t each b ank should
w ork out th e schedule w hich w ould be
m ost satisfactory to th e individual


In Ft. Dodge Bank


|i i

fo r


Th is bank, with the advantages
of quick, efficient services and
complete facilities, is the logical
channel for your Northeastern
N fj

Iowa business.

T he

Na t i o n a l B a n k
of Wat e r lo o

MEMBER . . Federal Reserve System
Federal Deposit Insurance Corporation

Northwestern Banker
Federal Reserve Bank of St. Louis

December 1939


Glenn Yaussi of Lincoln, Neb., has
joined th e staff of th e F o rt Dodge Na­
tional Bank, F. C. Moeller, p resid en t of
th e bank, announced.
Mr. Yaussi, a teller, began his duties
last m onth.
A native of M arysville, Kan., he w as
associated w ith th e E xchange B ank
th e re for four years and for th e past
six y ears has been a teller in th e Na­
tional B ank of Commerce of Lincoln.
He attended th e U n iversity of Ne­
b raska school of business ad m in istra­
tion before en terin g the banking busi­

Active President
H en ry C. L u e tt of Baldw in, recently
celebrated his 80th b irth d ay an n iv er­
sary and is now looking forw ard to
1942 w hen he and his wife, assisted by
th e ir nine children, w ill observe th e ir
golden w edding a n n iv ersary and 50
y e a rs’ residence in th e ir farm home.
Mr. L uett, w ho cam e to the U nited
States 64 y ears ago from G erm any,
ow ns and m anages a farm of 180 acres
and finds tim e to serve as presid en t of
th e B aldw in Savings Bank.

Whitman Speaks
W illiam W hitm an, a ssistan t secre­
ta ry of th e M anufacturers T ru st Com­
p any of New York, w as a guest speak­
er a t a m eeting of th e Boone State
B ank E m ployees Club. T he group as­
sem bled for d in n er at 6 o’clock in the
p a rty room of H olst Hotel.
Follow ing dinner, Mr. W hitm an
spoke to th e group on th e subject of
b anking in th e larg er ciites and gen­
eral business conditions. M em bers of
th e E m ployes Club from th e Boxholm
b ran ch of th e local b ank w ere also
p resen t for th e m eeting.


- •




Oyster Supper

Heads County Bankers

E ig h ty b an k ers from four southw est
Iow a counties, Page, F rem o n t, Mills
and M ontgom ery, w ere e n te rta in e d at
an oyster su p p er and pro g ram in Shen­
andoah, a t th e S ecurity T ru st and
Savings B ank of w hich E. C. Fishbau g h is president.
The o y ster su p p er w as served by
Miss E sth e r K eith assisted by th e folks
at th e bank, W. H. L ongm an, L ester
W alters, R obert F ishbaugh, C. W.
F ishbaugh, Miss D orothy Gamble and
Miss E d n a W hitehill.
A m usical pro g ram w as presen ted
d u rin g th e evening by a trio from
KMA. A general ro u n d table discus­
sion w as held.
A special g uest w as F ra n k W arner,
from Des Moines.

At a m eeting of th e K ossuth B ank­
e rs ’ A ssociation at Algona, E. A. Schem el w as elected county president, F. L.
McMahon, vice president; J. W. Sm ith
of F enton, treasu rer, and N. L. Cotton
of Lone Rock, treasu rer. Schem el and
M cMahon are from Algona.

Heads C . of C .
A t th e m eeting of th e advisory board
of th e C ham ber of Commerce in Mt.
P leasant, Jo h n P. Budde, p resid en t of

J ? o


i fo

th e H en ry County Savings Bank, w as
nam ed presid en t of th e new organiza­
tion. O ther officers elected w ere C. M.
Vance, vice president, and George
R ochefort, treasu rer.

T he F a rm e rs Savings B ank of Bea­
m an has com pleted extensive rem od­
eling in th e ir m ain banking room. The
counters w hich at one tim e ra n at an
angle to one an o th er have been
straig h ten ed into one long counter

J? w



r d

Fayette Meeting
The an n u al session of th e F ay ette
C ounty B an k ers’ A ssociation, held
w ith d in n e r at F ay ette, w as u n u su ally
w ell attended, w ith every b an k in th e
county except one represen ted .
F re d B reckner, A rlington, w as
elected p resid en t to succeed C. W.
Grim es, W est Union, w ho had served
th e p ast year. Jo h n Lockwood, Oran,
w as elected vice president, and Donald
W itt, Oelwein, secretary and tre a su re r.


December Meeting
At a m eeting of th e C erro Gordo
C ounty Beef C attle P rod u cers Asso­
ciation L eigh C urran, ch airm an of th e
association, announced th a t a cattle
feeders b an q u e t w ith b an k ers w ould be
held in C erro Gordo county som e tim e
d u rin g th e m iddle of December.


I'k e A

e . 3

F &


cn &


S P E ED - S w if tly a n d a c c u r a t e ly c le a r in g te n s o f t h o u ­

s a n d s o f ite m s is b u t a s in g le d a y ’s w o r k to L iv e
S to c k N a t i o n a l ’s s p e c ia liz e d c o r r e s p o n d e n t d e p a r t ­
m e n t.

Opens Office
T he S tate B ank & T ru st Co., new ly
organized b an k in N evada, opened an
office in M cCallsburg w ith F. E. Nail
of th a t place in charge. The b an k
w as organized several m onths ago at
N evada, w ith Jo h n R. H a tte ry as p re s­
ident, and H. T. F a u c e tt as cashier.

EXPERIENCE—O n e of th e o ld e s t b a n k s in C h ic a g o ( e s ta b ­
lis h e d 18 6 8 ), L iv e S to c k N a ti o n a l n o w s e r v e s n e a r l y
500 o th e r a g r i c u l t u r a l b a n k s t h r o u g h o u t t h e c o u n t r y .
R E S U L T S — Y o u d e a l d i r e c t l y w ith S e n io r O ffic e rs h e r e

— r e c e iv e , if y o u w is h , c o u n s e l a n d a s s is ta n c e b e ­
y o n d th e u s u a l c o n c e p tio n s o f c o r r e s p o n d e n t s e r v ­
ic e .

J lo 4 U & it G o d
O u r p o lic y p ro v id e s a m a x im u m
asse ssm e n t o f 2 */2 % in Z o n es
O n e a n d T w o — a n d 3 x/z % in
Z o n e T h r e e ( W e s te rn I o w a ).

Hawkeye Mutual Hail
Insurance Association
Carver Bldg.
Federal Reserve Bank of St. Louis

Y o u r in q u ir y is c o r d ia lly in v ite d .

L iv e S to c k
National B a n k of Chicago



Fort Dodge, Iowa

Northwestern Banker

December 1939


ru n n in g diagonally across th e room.
The high glass top and w oodw ork
w hich w as on th e counters has all been
cut dow n and in its place th re e
m odern low ty p e box counters have
been installed w ith plate glass w in ­
dows at th e cages.
This change will enable th e b an k to
have about tw ice as m uch lobby space
for th e ir custom ers and one e x tra w in ­
dow to w ait on th e public w ith o u t c u t­
tin g down th e w o rk in g q u a rte rs of the




County Officers
At a recent m eeting C. E. Orr of
M arshalltow n w as elected president,
and A. L. M osebach of M elbourne, sec­
re tary -treasu rer, of th e
M arshall
C ounty B an k ers’ Association.

tra n sfe rre d to th e O ttum w a banking
house. Insufficient volum e of income
to w a rra n t continuing the expense of
th e branch is given as the reason for
the move.

D iscontinuance of the Eddyville of­
fice of th e F irst B ank & T ru st Com­
p any of O ttum w a took place on No­
vem ber 20th and all accounts w ere

Increased industrial prospects promising—
Our cattle feeders

and farmers


Complete Banking and Trust Facilities

(C ontinued from page 18)
I have in m ind a grocer w ho catered
to a clientele w hich dem anded th e best
of ev ery th in g th e m a rk e t afforded.
F ully aw are his custom ers inspected
his offerings for freshness and quality,
he visited th e w holesale dealers daily
before sun-up to replenish his stock,
shopping a t various booths in an hon­
est effort to obtain the choicest item s
on his list. One day, w hen his display
of straw b erries attracted m ore th an
usual attention, a stra n g e r purchased
six baskets w ith a $20 note. The grocer
knew m ost of his custom ers, b u t oc­
casionally a stra n g e r patronized his
store, and this stra w b e rry sale to a
n eatly dressed m an, w hom he did not
know, failed to reg ister w ith him until
a few m inutes later, w hen he sent the

T he
C ity N a t i o n a l B a n k
M em b er F e d e ra l D e p o sit In s u ra n c e C o rp o ratio n

fllODERniZE Yo ur

Record Storage



Y o u w ill h a v e q u ic k a c c e ss to th o s e i m p o r ta n t
s e m i-a c tiv e a n d in a c tiv e r e c o r d s w h e n y o u s to r e
th e m in S a fe T s ta c k S te e l S to r a g e F iles. " T a ilo r m a d e ” to fit y o u r B a n k r e c o r d s — a c tu a lly
c o s t le ss th a n o ld - f a s h io n e d c a r d b o a r d
s to r a g e boxes a n d s h e lv in g .

H ere is a picture of the new home in
E ldridge, Iowa, recen tly completed
fo r R obert J. Tank, cashier of the
C entral T ru st & Savings B ank of
th a t city. Mr. Tank moved into his
new home several m onths ago.

O L D Vi A Y — C ostly, s p a c e-w a stin g ,
d i r t y , in fla m m a b le , u n s y s te m a tic , s h o r t­
lived, h a za rd o u s, in co n v e n ie n t.



Y ears o f specialized tra in in g in the
storag e o f re c o rd s have given us
expert k n o w le d g e in solving s to r­
age p ro b lem s. T h is in fo rm atio n
has b een c o n d en sed in th e little
b o o k illu stra te d h ere, "A N E W W A Y

IJàgafJüiHAve-TJlaoUmwm. SaAwiats
H om e O ffice: W e st L ib e rty , Iow a
B u sin ess O ffice: D es M oines, Iow a

Yours without obligation—just mail coupon.

Full Coverage A utom obile
Non-Cancellable Accident and Health
Commercial Accident and Health

T H E S T E E L S T O R A G E F IL E C O .
2 2 1 6 W e st 6 3 rd S t ., C le v e la n d , O h io

P lease m ail us yo u r b o o k le t today.
N am e____________________________

T H E S T E E L S T O R A G E F I L E W A Y — In e x p e n s iv e , spaces a v in g , c lea n , fir e -r e s is ta n t, s y s te m a tic , p e r m a n e n t, s a fe ,
accessible f o r i n s ta n t referen ce.

A ddress

Northwestern Banker
Federal Reserve Bank of St. Louis

December 1939

A g e n c y In q u irie s In v ite d


bill by one of his clerks to a nearb y
b an k for change.
H is indignation
reached lofty h eig h ts w hen th e clerk
re tu rn e d w ith th e an n o u n cem en t th a t
th e b an k h ad re ta in e d th e note a fte r
labeling it counterfeit.
In com m on w ith m any o th er people,
th is grocer w as u n aw are th a t co u n te r­
feits are passed by stra n g e rs in 95
out of 100 instances, b u t I h azard the
guess he w ill exercise as m uch care
h e re a fter in h an d lin g his m oney, in
p a rtic u la r m oney proffered by stra n g ­
ers, as he displays in selecting his
fru its and vegetables. He w ill scan
his cu rren cy a second tim e to reassu re
him self it does not reveal th e tell-tale
d istin g u ish in g m ark s of th e “p h o n y ”
C u rren t co u n terfeits cannot be com ­
pared in deceptive q u ality w ith th e
issues w hich circulated m any y ears
ago. Since th e processes of en g rav ­
ing and p rin tin g have been sim plified
in recen t years, it is u n n ecessary th a t
th e co u n terfeiter shall be a h an d en ­
g ra v e r skilled in th e graphic arts. It
m ay su rp rise you to know th a t m ost
present-day co u n terfeits are m ade by
p ersons w ho have learned ju s t enough
about photo-engraving to build up a
zinc or copper plate suitable for th e ir
purposes. H ow ever, the co u n terfeiter
w ho tu rn s to photo-engraving finds a
serious im pedim ent provided by th is
process w hich is incapable of tra n s ­
fe rrin g to m etal plates th e delicately
cu t hand-engraved lines and shadow
values w hich distin g u ish genuine
notes. F o r th is reason, fidelity to de­
tail is gen erally lacking, p articu larly
in th e p o rtra it in w hich th e facial fea­
tu re s are reproduced coarsely and th e
eyes lack expression and v itality. Be­
cause of th is in ferio r w orkm anship,
faces on co u n terfeit notes are obvi­
ously stran g e and “u n frie n d ly ”, echo­
ing th e base c h aracter of th e ir u n ­
w o rth y sires.




o th er type of co u n terfeiter w ho does
not concern him self w ith the detail
and expense of assem bling a photo-en­
g raving and p rin tin g plant.
sw indler is a specialist in his own
right. He tam pers w ith genuine c u r­
rency, erasing th e co rn er num erals
and denom inational letterin g and sub­
stitu tes in p ain t or in k th e a rtistic
flourishes necessary to increase for his
purposes, th e original value of the
note. He m ay even te a r off th e corners
of $5, $10 or $20 notes and paste them
over th e corners of notes of sm aller

denom ination. G enuine notes are is­
sued in eleven denom inations, each
carry in g a stan d ard denom inational
p o rtrait. Irresp ectiv e of o ther iden­
tifying characteristics, a note should
be recognized only by the p o rtra it it
bears. If one w ill rem em ber the por­
tra its on genuine notes, he w ill not be
deceived by the note-raiser, n o tw ith ­
standing th e fact th e sw indler m ay
display am azing skill in converting a
note of sm all denom ination into a note
p u rp o rtin g to be of larg er denom ina­
tion. The follow ing p o rtraits appear

National Bank
and Trust Company
of Chicago

Note Portraits
W ith th e issuance of th e sm all size
cu rren cy notes, th e G overnm ent c u r­
tailed m aterially th e activities of a n ­
Participating, Non-participating, Juvenile. A n ­
nual and Slnqle Premium Annuities— Every­
thing that any good company has, and several
contracts that many companies do not have.




Equitable Life Insurance
Company of Iowa
G R A D Y V. F O R T , General A g e n t

M oines, I o w a

N orthw estern B anker
Federal Reserve Bank of St. Louis

D ecem ber 1939


on th e v arious denom inations: W ash ­
ington, $1; Jefferson, $2; Lincoln, $5;
H am ilton, $10; Jackson, $20; G rant,
$50; F ra n k lin , $100; M cKinley, $500;
Cleveland, $1000; M adison, $5000;
Chase, $10,000.
C ounterfeiting of coins seem s to a t­
tra c t crim inally-m inded persons of
m eager m eans. F o r th e m ost part,
co u n terfeit coins are m ade of lead or
b abb itt m etal in p laster of p aris molds.
Some “coiners” tre a t th e ir products
w ith a silver p latin g b a th to increase
th e ir deceptiveness. T hese coins are


Incorporated 1933

H om e Office

Des M oines, Iowa

This is Iow a’s oldest surety company.
A progressive company with experi­
enced, conservative management. We
are proud of our hundred and fifty
bank agents in Iowa.
To be the exclusive representative of
this company is an asset to your bank.



W rite to

S e c re ta ry a n d Manag-er




gen erally light in w eight and produce by banks, retailers and the general
a dull sound w hen dropped on a hard public th ro u g h acceptance of counter­
surface. T hey ta rn ish quickly and feit issues. In our endeavor to edu­
have a greasy “feel” w hen rubbed be­ cate the business m an to recognize the
tw een one’s finger tips. Molded coins quality and ch aracter of our currency,
fail to reproduce accurately th e p aral­ we are com ing dow n from our Sinai
lel crevice lines on the rim edge. This and, like Moses, we are spreading the
feature, often identified in e rro r as the tru th so th a t the public m ay be b etter
m illing, is know n as th e reeding. P ro b ­ p rep ared to pro tect itself against frau d ­
ably th e su rest test of a doubtful coin, u len t m oney. H eretofore, we have hid­
unless the coin be co u nterfeit w ith
den our light u n d er a bushel, m onopo­
genuine silver content, is application lizing, so to speak, certain inform ation
of a solution of n itric acid and n itra te w hich should be available to anyone.
of silver. A drop of th is acid on a coin Now th a t th e bushel has been re ­
m ade of base m etal w ill produce a moved, th e lu ste r of th is light extends
black spot. A silver plated coin should to th e highw ays and byw ays, the glare
be scraped first and the acid applied at so stro n g th a t th e coun terfeiter finds
th e po int of abrasion. G enuine coins, his activ ity m ore hazardous w ith his
as w ell as die-struck co u nterfeit coins proposed victim s forew arned.
m ade of silver, w ill re sist th e acid test.
Government Checks
Aside from our p rim a ry in te re st in
su p p ressing counterfeiting, we are
T he G overnm ent last y ear issued
m aking a determ ined effort to reduce the trem endous n um ber of 148,967,048
th e loss in genuine m oney sustained checks. Some of these checks n a tu ­
rally fell into unau th o rzed hands.
Since it is our responsibility to investi­
gate forgeries of G overnm ent checks,
our agents last y ear conducted inves­
tigations in m ore th a n 20,000 such
cases. W e are now placing in effect
preventive m easures intended to re ­
duce th e n u m ber of forgeries and ex­
pedite investigations in such m an n er
th a t banks m ay be relieved of p a rt
of th e additional w ork incident to in ­
vestigations of forged checks bearing
th e ir endorsem ents. In th is connec­
tion, we are asking th e banks to co­
operate fu rth e r w ith us. If a bank in
w hich a forged check has been de­
posited is located a t a point some dis­
tance from our n earest office, and it is
im possible for agents to arriv e on the
scene w ith in 24 or 48 hours, our office
handling th e case w ill th en forw ard
direct to th e bank a photostatic copy
of th e check, w ith a questionnaire,
and req u est th e b ank to interview the
depositor and obtain as m uch inform a­
tion as possible concerning the circum-

¡Peace on eartf), goob m ill to m e n , is tfje gre a te st b o lib a p
to ken eber s p o k e n . . . b u t to it toe toisb to abb “ goob toil!
to y o u anb tfja n k s fo r p o u r s ! ”
O u r 78 th Y e a r to G e t Io w a F a th e rs a n d S o n s R e a d y fo r C h r is tm a s !


Northwestern Banker
Federal Reserve Bank of St. Louis

December Í939


stances u n d e r w hich th e check w as
negotiated. T he S ecret Service adopted
th is p rocedure n o t only w ith th e
th o u g h t of locating th e forger quickly,
b u t as a m eans of assistin g th e bank,
and also th e payee, in obtaining re s ti­
tu tio n speedily.
A G overnm ent check is a w o rth less
in stru m e n t unless it is endorsed by
th e payee and carries th e last en ­
d orsem ent of a p erso n know n to th e
agency w hich n egotiates it. Y our de­
positors do n o t cash com m ercial
checks for stra n g e rs unable to identify
them selves satisfactorily. W hy should
th e y cash G overnm ent checks for p e r­
sons w ho cannot satisfacto rily estab ­
lish th e ir identity?
As a fu rth e r m eans of assistin g y o u r
depositors to
p ro tect them selves
ag ain st forgery, we have caused to be
p rin te d on all W PA checks th e follow ­
ing w a rn in g in red in k on th e fro n t
n e a r th e bottom : “SE E ID E N T IF IC A ­
T his adm onition is also reproduced in
red ink on th e back of th e check above
th e space provided for th e signature:
“W hen cashing th is check for th e in ­
dividual payee, you should req u ire full
identification and end o rsem en t in y o u r
presence, as claim s ag ain st en dorsers
m ay otherw ise re su lt.”
May I say in conclusion th a t a le rt­
ness is of p rim a ry im portance in any
business in w hich m oney is th e m ain
com m odity. W e know th e re is little
salvage value in m istakes. If y o u r
b an k accepts a co u n terfeit note, th e re
is the possibility it m ay be paid out
again innocently. I know depositors
w ho claim ed in full sin cerity th a t th is
or th a t co u n terfeit cam e from th e ir
banks. I also know of b an k s able to
trace a co u n terfeit to a d epositor’s
account a fte r th e custom er left th e




bank. U nless he is p resen t to w itness
th e discovery, the depositor is rarely
ever convinced of th e b a n k ’s claim.
W hen controversies arise, th e ban k is
the u ltim ate loser, not only in the
am ount involved, b u t also in prestige,
w hich is m ore im portant. Som etim es
a good depositor is lost because the
b ank does not subscribe to th e th eo ry
th a t “th e custom er is alw ays rig h t.”
T ellers m ay avoid these u n p leasan t ex­
periences by learn in g to recognize the
“unfrien d ly faces” on counterfeits, for,
a fte r all, by th e ir faces ye shall know
them .

Central H


In The Red
Phrenologist—I find am ong other
things, sir, th a t you do a bit of petting.
B aldheaded G ent—Oh, have you
found a bum p of p ettin g on m y head?
Phrenologist—No, I ’ve found some

Hot Stuff
W aiter—Say, Boss, th e re ’s a guy out
in the lobby cooling his heels.
Boss—W aiting for a job, eh?
W aiter—Naw, som eone gave him
the hot-foot!

Ba n k




C o m pan y


Statement of Condition at Close of Business
September 30, 1939
Cash and Due from B a n k s .................................... $620,500,012.79
U. S. Government Securities....................................... 309,633,823.22
State and Municipal S e c u r i t i e s .........................
Other S e c u r i t i e s ..................................................
25,790,5 51.3 5
Stock in Federal Reserve B a n k .........................
Loans and Bills P u r c h a s e d ....................................... 162,926,724.01
Real Estate Mortgages............................................
Banking H o u s e s ..................................................
Other Real E s t a t e ..................................................
Interest A c c r u e d ..................................................
Customers’ Liability Account of Acceptances
Total $1,185,0 78,6 36.6 1


I o w a ’s L a r g e s t B u sin e s s T r a i n i n g School

Many banks, bond-houses, insurance
companies and other financial insti­
tutions employ A. I. B. graduates.
Write or telephone when you need
efficient office employes.
E. O. FENTON, Director

American Institute of Business
10th and Grand
Tel. 4-4221
Federal Reserve Bank of St. Louis

C a p i t a l ...............................$21,000,000.00
S u r p l u s ............................... 60,000,000.00
Undivided Profits
. .
12,071,935.6 7
$93,071,9 35.6 7
Reserve for Taxes,
Interest Accrued, etc.....................................
Dividend Payable
October 2, 1 9 3 9 .....................................
Deposits.........................................................................1,081,0 50,4 47.79
Total $1,185,0 78,6 36.6 1
T h e r e are pled ged to secure public m onies and to qu alify for fiduciary pow ers
U . S. G o v ern m en t S e c u r i t i e s .............................................

$ 5,2 15,3 47.8 5

M em b er F ed eral D e p o sit In s u ra n c e C o rp o ra tio n

N orthw estern Banker

D ecem ber 1939



The Rising Tide
The six th consecutive m onth of 1939
in w hich constru ctio n in d u stry em ­
ploym ent show ed a su b stan tial m a r­
gin over th e sam e m onth of 1938 is
noted by th e U nited States Savings
and Loan L eague in its su rv ey of th e
effects, in term s of em ploym ent, of the
risin g tide of hom e building w hich has
characterized th e year.
George W. W est, A tlanta, p resid en t
of th e league, recalls th a t increases in




resid ential construction have been
looked forw ard to since the p resid en t’s
conference on hom e building and
hom e ow nership eight y ears ago this
D ecem ber as th e key to b e tterm en t
of th e em ploym ent situation. C ur­
re n t figures seem to bear out the
justice of this claim, the league p resi­
d ent says.
Septem ber saw an increase of 8 per
cent in the em ploym ent in building
trad es as com pared w ith Septem ber,

Federal Home Loan Bank of Des Moines
Des Moines, Iowa
Statement of Condition October 31, 1939
A dvances to M em b ers.................................................................................. • • ................................ $16,494,329.29
U . S. G overnm ent O bligations and S ecu rities G u aran teed by U . S................................ 1,367,000.00
A ccrued In te re s t R eceiv ab le..........................................................................
D eferred C harges .............
Cash ......................................................................................................• • .............................................
G overnm ent Stock S u b s c rip tio n ................................. ...................................................................$
M em bers’ Stock S u b sc rip tio n ........................................................
D ebentures O u tstan d in g ..........................................................................................................
P rem iu m s on D e b e n tu re s..................................................................................................................
D eposits ................................................................................................................
A ccrued In te re s t P a y a b le ...................................................................................
R eserves ................................................................................................................ $426,608.33
U ndivided P ro fits
.................................................................................. 215,262.65



Officer Says
"It's the best yield and
s a f e s t investment for
small trust funds today,”
said a Chicago trust offi­
cer, discussing his pur­
chase of a First Federal
investment certificate for
an estate. Write today
for a prospectus explain­
ing the 3 per cent current
yield, no market fluctua­
tions, and insured safety
of this convenient legal

Your Investments
Purchase insured investment certifi­
cates in the Safety Federal, the larg­
est savings and loan association
operating entirely within the State
of Missouri.

Accounts insured up to $5,000 by the
Federal Savings and Loan Insurance

C u rre n t ra te — 3 %
C a ll o r w rite .

F irst F ed era l S avings

L o a n A s s n , o f C h ic a g o
130 South La Sa lle Street

Northwestern Banker December 1939
Federal Reserve Bank of St. Louis

Savings & Loan Association
910 Grand Avenue

1938, according to th e B ureau of Labor
Statistics. The A ugust m argin over
the previous A ugust w as 7.1 per cent;
th a t of July, 9 per cent; th a t of June,
4.7 per cent; th a t of May, 3 p er cent;
and th a t of A pril, 1.2 per cent. Resi­
dential construction co ntract aw ards
w ere 36 p er cent g reater d uring this
six m onths th a n last year d uring this
sam e period, Mr. W est pointed out.
Savings and loan associations esti­
m ate th a t in the past eight years of
concentration on the increase of em ­
ploym ent by w ay of hom e construc­
tion and repairs, th e credit they have
advanced for these tw o purposes has
supplied th e equivalent of one full
y ears job for 260,000 m en in the build­
ing trades. F actors o ther th a n credit
facilities to w hich th ey a ttrib u te in ­
fluence tow ard the rise in hom e build­
ing include the increasing general re ­
covery of th e nation in th e past few
m onths, th e relative stab ility of build­
ing costs over a su b stan tial period of
th e recent past, increased in te re st in
hom e ow nership th ro u g h the efforts
of the governm ent agencies, the sharp
decreases in vacancies in m any areas
bringing about increased ren ts and
consequent psychology for hom e build­
ing, and th e recen t direction of the
construction in d u stry to sm aller, less
preten tio u s hom es designed for the
g reat m ark et of persons w ith low in ­
“The em ploym ent in the building
trades will feed upon itself,” said Mr.
W est. “M any w ho have jobs in car­
pentering, plastering, m asonry, and
like trad es again, after y ears of idle­
ness, w ill be w an tin g to m ake some
provision for the fu tu re out of w hat
th ey are earn in g now. P urchase or
building of a hom e is the m ost n atu ral
form for this provision for the fu tu re
to take, especially w ith m en whose
w ork brings them so close to this kind
of security. Thus, this y ear m any
thousands of new jobs in hom e build­
ing w ill be creating th e w h erew ithal
for m any of th e w orkm en to em bark
upon hom e ow nership program s in the
n ex t y ear or tw o.”
He pointed out th a t in a typical sav­
ings and loan association surveyed
some y ears ago, one out of every ten
of the borrow ers w as em ployed in the
building trades.

Double Trouble
“Joe tells th e sw ellest stories w ith
double m eanings. One m eaning is
nau g h ty and one is nice.”
“H uh, Tom ’s stories are tw ice th a t
“How com e?”
“Both m eanings are n au g h ty .”

Public Relations —
Your Greatest Opportunity
IN A N CIA L in stitu tio n s have th e
biggest selling job of th e ir h isto ry
on th e ir h ands today and th e y e a r’s
end p resen ts an u n u su al o p p o rtu n ity
to advance th e cause of p riv ate ch a r­
tered in stitu tio n s such as banks, sav­
ings and loan associations, life in s u r­
ance com panies and sim ilar organiza­
tions. All th e w ay from th e an n u al
re p o rts of th e executive officer to the
n ew spaper p ublicity received on the
com pletion of th e fiscal year, th ere
are n u m erous ch annels th ro u g h w hich
th e tru e sto ry of our co n trib u tio n to
th e com m unity can be told.
W hy is it so im p o rta n t to tell th e
story? T rue, the Bigelow plan w as de­
feated in Ohio and the H am and Eggs
plan in C alifornia, b u t lots of people,
th o u san d s of them voted, for these
plans. The latest proposal to give the
g o v ern m en t a m ore active role in the
th rift pro g ram of th e nation is th a t
rep o rted to be u n d er consideration by
S enator W agner. U nder it people
could buy an n u ities from th e gov ern ­
m en t paying up to $100 a m onth at
m atu rity . T his w ould be an expansion
of th e social secu rity program . P e r­
siste n t effort has been m ade in recen t
y ears to b rin g th e little m a n ’s finances
u n d e r the control of governm ent
agencies. The p e rtin e n t question is
how far w ill th ey get w ith it? The
an sw er to th a t is th a t th ey will get as
fa r as th e m isu n d erstan d in g and lack
of u n d e rsta n d in g and u n d erv alu atio n
of th e p riv ate c h a rte red financial in ­
stitu tio n s perm it.
B an k ers and savings and loan ex­
ecutives and life in su ran ce people
know n fu n d am en tally th a t m any bil­
lions of dollars w o rth of good has been
done by th e ir in stitu tio n s in financing
em ploym ent, in seeing m illions of
people th ro u g h w ith helpful th rift
program s, in lending m oney for em er­
gencies and for th e realization of am ­
bitions. W e d o n ’t talk about it enough.
W e d o n ’t tell th e story. W e p re se n t
statem en ts of condition and operation,
lots of figures an lots of stodgy te rm in ­
ology from the acco u n ta n t’s glossary.
Our public relatio n s technique is in th e
em bryo stage. T h a t is w h y th e idea
th a t th e p riv ate in stitu tio n is no good
for th e little fellow, th e th e idea th a t
it is a p illar of a pernicious system of
profiteering for th e few, have found

Federal Reserve Bank of St. Louis

By A . D. Theobald
Assistant Vice President
United State s Savings and Loan League
C hic ago

w h at credence th ey have am ong the
g reat m ass of our population. Now
w ould seem to be an excellent tim e to
tu rn over a new leaf tow ard letting
people u n d erstan d us a little better.
The rep o rts of executive officers, let-

A. D T H E O B A L D

ters to investors accom panying th eir
dividend checks, w indow displays,
folders to be picked up from th e count­
ers inside the bank or the savings and
loan association, ad v ertisin g space in
th e new spapers, any tim e you m ay
have on th e radio—every conceivable
approach to the public should carry
th e sam e sto ry for the y e a r’s end, viz.
w h at your in stitu tio n has done for the
com m unity d uring the year 1939. Much
of this so rt of m aterial should be p re­
p ared by experts, by those who are
train ed to know w h at portions of your
p erform ance du rin g the p ast year
m ake an appeal to people. Of course,
w h atev er is prepared ought to have
th e counsel of the executive officer so
th a t th ere is stric t honesty in the p res­
entation, b u t m ost financiers do not

have the knack of know ing w hat ap­
peals to people and we can afford to
get some advice if we w an t to keep
private, financial in stitu tio n s on the
Probably by and large the financiers
have kept too far from the language
of the m an w ho earns a living in a non­
executive position. F or these are the
men, in a dem ocracy, w ho have the
final say as to w h eth er or not in sti­
tu tio n s are to survive. The tendency
has been to m ake m o netary tra n sa c ­
tions seem m ysterious and nonunderstandable. And the o rd in ary m an is
really afraid of th e th in g he doesn’t
understand. L et som ething go w rong
in even the m ost rem ote corners of
the w orld w hich he does not u n d er­
stand v ery well and his fear takes on
the proportions of panic. T his is w h at
happened in th e financial w orld six or
seven y ears ago and these people, who
had n ever understood th e ir financial
institu tio n s in the first place, tu rn ed to
the only place th ey th o u g h t th ere w as
stren g th enough to afford them sanctuary, to the governm ent. The presen t
persistence of th e idea th a t the gov­
ern m en t is needed to give the little
m an an outlet for his savings is ju st
an old-fashioned hangover from th a t
experience, from the basic lack of u n ­
derstan d in g of finance from w hich
ord in ary people suffered and w hich
financial in stitu tio n s had done little to
In a surv ey of “Public A ttitu d es”
A m erican Savings and Loan In stitu te
have been m aking d uring th e past
year, an overw helm ing m ajo rity of
those w ho w ere asked w h eth er or not
they believed in saving a portion of
th e ir incom es said th a t th ey did. In
the Pacific Coast and Rocky M ountain
section, 78.6% w ere in favor of in v est­
ing and in the N o rth ern A tlantic Coast
section, 90 per cent of those in te r­
view ed believed in looking out for the
future. And a m ajority of the people
we talked to had incom es betw een
$1,200 and $3,000 a year, w ith some
un d er and some over th is average. The
im p o rtan t th in g about our findings is
th a t people have not been led very far
astray by the attem p ts to discredit
th rift and economy. T hey still believe
in financial independence, deep down




$ 1 ,0 5 0 ,0 0 0 .0 0


Federal Savings
Ia n


lo a n

a s s o c ia t io n

216 8th Street

Phone 4-5324

in th e ir hearts. B ut it’s our job to see
to it th a t th ey don’t tu rn to the govern­
m en t for th e ir savings plans or for
th e ir loans by w hich th ey m ay achieve
financial independence. The tim e is
rip e to educate people about w h at th ey
really have in th e ir A m erican in stitu ­
tions of finance. It w ould be crim inal
neglect to pass up th e fiscal y e a r’s end
w ith o u t devoting some m ajor effort
to th e education of th e public in w h at
we do and w h at we stand for. And let’s
p u t it in th e ir language!

r _____H O M E
...... Jj
Eederal Savings
— ou r F ed era lly In su red u p to
$ 5 .0 0 0 savin gs accou n ts are
th e so lu tio n to your in v est­
m en t and trust p roblem s.
C urrent d iv id en d 4 p er cen t.

Statement on request.

Special Dividend
W here You

Y our

See T h is

Savin gs

E m b lem


From Individuals
Small Trusts
Large Corporations
each account receives equal
3 % C u r re n t D iv id e n d
A sse ts $ 1 , 7 0 0 ,0 0 0



Building & Loan Association

69 Broadway

Member Federal Home Loan Bank System

U. S. Government Supervision



(Current D ividend Rate)

A ccou n ts In sured U p to $5,000

S avings & L oan A ssociation
823 Marquette Ave.

N orthw estern B anker D ecem ber 1939
Federal Reserve Bank of St. Louis

Checks for a special one per cent
dividend w ere m ailed recently to all
holders of paid up stock in the Ne­
b rask a State B uilding and Loan As­
sociation, of F rem ont.
The special dividend w as declared
from profits accruing from the sale
of real estate acquired th ro u g h fore­
closure over a period of y ears and
sold for m ore th a n book value.
Dave Rowe, p resid en t of th e Asso­
ciation, said th a t th is special dividend
is in addition to th e reg u lar dividend
w hich w ill be paid as usual Ja n u a ry
Checks totaling $16,463.15 w e r e
m ailed to holders of paid up stock and
$3,523.68 w as credited to th e accounts
of holders of in stallm en t savings cer­
tificates, m aking a total distrib u tio n
of $19,986.83.
T his is th e 96th dividend paid by
the N ebraska State B uilding and Loan
A ssociation since its organization 47
y ears ago, Rowe announced. The As­
sociation has an enviable record, h av ­
ing gone th ro u g h periods of panic,
d ro u th and depreciation w ith o u t m is­
sing a dividend. It has th e distinc­
tion of being one of th e few associa­
tions in th e co untry th a t paid w ith ­
draw ing m em bers prom ptly on th irty
d ays’ notice, as provided by statute,
d u rin g the depression preceding the
b ank holiday.
It is th e larg est financial in stitu tio n
in F rem ont, w ith assets in excess of
tw o and one-half m illion dollars, and
assists hu n d red s of N ebraska citizens
in F re m o n t and th ro u g h o u t the state
every year in building or buying
Officers and directors of th e in stitu ­
tion are to be congratulated on the
pay m ent of th is special dividend and
th e successful m an n er in w hich the
business of th e association has been
conducted over a period of nearly a
half century. It has a record to w hich
the citizens of F rem o n t and N ebraska,
as w ell as h u n dreds of shareholders,
w h e th er borrow ers or savers, point
w ith pride and confidence.

904 Grand Avenue
D es M oines, Iowa


Accounts insured up to
Statem ent on request

819 Francis St.




No Market
Fluctuations —
Plus insured safety for invest­
ment and trust accounts. Call
or write for interesting details.

Assets $1,277,000.00

Savings & Loan Assn.
511 Seventh St.
Member Federal Home Loan Bank System


Standards to Improve
A ssurance th a t stan d ard s of hom e
building w ill im prove ra th e r th a n de­
te rio ra te as resid en tial con stru ctio n
increases in volum e is one of th e p rin ­
cipal needs of th e housing m a rk e t and
hom e-financing business, th e F ed eral

Home L oan B ank Board says in its
forthcom ing S eventh A nnual R eport
covering its operations for th e 1939
fiscal year.
Am ong o ther o u tstanding problem s
listed by th e board were:
1. P rev en tio n of sudden or u n w a r­
ran ted increases in th e costs of build­
ing m aterials and labor.
2. R ehabilitation of neighborhoods
facing d eterio ratio n from encroach­
m en t of slum s, need for rep airs to in ­
dividual homes, and o ther factors.
3. Disposal of about $4,000,000,000 in
real estate “o v erh an g ” or repossessed,
unsold p ro perties held by financial in ­
stitu tio n s and o th er m ortgage lenders.
4. G eneral m odernization of the
m ark et m echanics of construction and
m ark et lending—especially needed is
reform ation of an tiq u ated state and
m unicipal law s dealing w ith real
estate, zoning, foreclosures, title regis­
tratio n s, etc.
“L arge construction activity alm ost
inevitably creates tendencies to re ­
duce building standards, and th ere are
already indications th a t je rry building,
poor m ethods of construction, and
utilization of cheap m aterials are in ­
creasing in volum e,” the rep o rt said
in part.

Regional Conferences
T he th ree regional conferences of
th e A m erican B ankers A ssociation
scheduled to be held th is w in ter for
b ankers of th e South, E ast, and W est,
w ill be devoted to fu rth e r develop­
m en t of broad, efficient banking serv ­
ices to business and in d u stry , it is
announced by R obert M. H anes, presi­
dent of th e association.
C ontinuing th e association’s pro­
gram of education for ban k ers th ro u g h
b anking forum s, th e them e of th e first
m eeting, to be held in Richm ond, V ir­
ginia, D ecem ber 7-8, w ill be “B anking’s
P a rt in B usiness D evelopm ent,” Mr.
H anes said.
The principal speakers at each of the
th ree w in te r conferences w ill be bank
officers who have specific know ledge






Des Moines, Iowa

N0--when it is about
big US and little
YES--when it is as
interesting as the
news and pictures
in their newspaper.
May we prove it?
910 W aln u t Bldgr.


Write for samples

MOON B PKinTmG&muiviiiGCo


1210 Grand Ave.
Des M oines, Iowa

W e advance cash to dealers who
sell automobile tires and other small
units of merchandise on our budget

in a n c ia l



Home Office, F ly n n B ids-, Des M oines, Iow a

N orthw estern Banker
Federal Reserve Bank of St. Louis

Des M oines, Iowa

S e rv in g Itnva B u sin e ss S in ce 1 9 0 7

D ecem ber 1939

of various ban k in g problem s and prac­
tices, based on th e experience they
have gained in th e ir own localities.
They will stress practical application
of recen t developm ents in b an k o pera­
B an k er, experienced, inside an d ou tsid e
work, employed, young, desires change.
W rite J. N orthw estern B anker.

Better Service
— Photo Offset Lithographing
Our new process reproduces all
printed forms with photographic
accuracy—no cuts—no danger of
errors — saves tim e and money.
W rite for Samples and Prices

Mulh'graphing — Mimeographing
Addressing — Mailing
Plans — Copy — Campaigns

707 L o c u st S tre e t
P h o n e 4-0106
B. F . SP R Y , P re s .
S. F . W H IT IN G , Sec.

tion. O pportunities for forum discus­
sions of each topic, will be given those
w ho atten d the sessions.
The th ree conferences this w in ter
w ill m ake the fo u rth successive year




S p e c ia liz e d

of the A.B.A. regional conference pro­
gram . Follow ing the first conference
this w in ter in Richm ond, the second
and th ird have been scheduled for
New York City, M arch 6, 7, and 8.
Sim ilar m eetings w ere held last year
in Columbus, Ohio, M inneapolis, Min­
nesota, and New York City.

Index to Advertisers

1 8 8 6

\S T 3 9 ~

Threshers Combines
Corn Pickers
D e p e n d a b le p rod u cts fo r over 5 0
se a r s to H arvest and T h resh all
grain s and seeds.
A g ood
ow ners.

in vestm en t



A l l e n W a l e s A d d i n g ' M a c h i n e C o r p ...... 67
A l l y n a n d C o m p a n y , A. C ............................. 31
A m e r i c a n I n s t i t u t e o f B u s i n e s s .............. 59
A m e r i c a n N a t i o n a l B k . & T r . C o m p a n y . . 36

B a n k e r s T r u s t C o m p a n y ........................... 50- 51
B e l l e v i e w - B i l t m o r e H o t e l .............................. 64
B e n F r a n k l i n F e d . S a v . & L o a n A s s ’n . . . 63
C e n t r a l H a n o v e r B a n k & T r u s t C o . . . . 59
C en tra l N a tio n al B a n k & T ru s tC o . . . .
C h a s e N a t i o n a l B a n k .....................................
C i t y N a t . B a n k & T r u s t Co., C h i c a g o . . . 42
C i t y N a t i o n a l B a n k , C l i n t o n ......................... 56
C o n t i n e n t a l - I l l i n o i s N a t . B a n k & T r . Co. 57
C o n t i n e n t a l N a t i o n a l B a n k ............................ 39
C r u m m e r C o m p a n y , R . E ................................... 32

A p ro fita b le b u sin ess fo r dealers.
S a fe and d esirab le farm p ap er is
p r o fita b le fo r local fin a n c in g .


Wood Bros. Thresher Co.
D es M oin es, Iow a

D a v e n p o r t & C o m p a n y , F . E ......................38- 53
D e L u x e C h e c k P r i n t e r s . I n c ......................... 30
D e s M o i n e s B l d g . L o a n & S a v i n g s A s s ’n. 63
D i r e c t A d v e r t i s i n g ................................................ 64
D r o v e r s N a t i o n a l B a n k .........................

E p p l e y H o t e l s .......................................................... 38
E q u i t a b l e L i f e o f I o w a ( G r a d y F o r t ) . . 57
E r i c k s o n C o m p a n y , C. E ................................... 64

F a r m e r s U n i o n L i f e I n s . C o .........................
F e d e r a l D i s c o u n t C o r p o r a t i o n ....................
F e d e r a l H o m e L o a n B a n k o f D es M o in es
F i n a n c i a l C r e d i t S y s t e m ...................................
F i r s t F e d . S a v . & L o a n A s s ’n, C h i c a g o . .
F i r s t F e d . S a v . & L n . A s s ’n, M i n n e a p o l i s
F i r s t F e d . S a v . & L o a n A s s ’n. S t. J o s e p h
F i r s t N a t i o n a l B a n k , S i o u x C i t y ..................
F r a n k e l C l o t h i n g C o ........................................ .. .


under the same
Management as


-—in climate, sports and social diversions—golf on its two
famous 18 hole courses, tennis, trap and sheet shooting,
saddle horses, salt water pool and sea bathing, dancing, fishing
and boating . . . moving picture theatre and smart New York
shops . . . excellent cuisine and service . . . distinguished
clientele. Accommodations— 400 rooms— and large hotel
cottages. Purified and softened water for drinking and bath.


$ 9 .5 0 p e r day and up
$ 6 .0 0 p e r day and up


& > U cJ z± 0 4 l




E V A N S T O N , I L L.


A. S. Kirkeby
Managing Director

• C reate c u sto m er good-w ill and
e sta b lis h y e a r ’round “ desk con­
ta c t” fo r y o u r firm nam e w ith
th e se a ttra c tiv e , easel type, m etal
desk c alen d a rs. M ade in sev e ra l
size s and sty le s.
F o r p ric e s in
v a rio u s q u a n titie s , w r i t e :

In c o rp o ra te d


= A
N orthw estern B anker
Federal Reserve Bank of St. Louis

D ecem ber 1939



G a t e C i t y B u i l d i n g ' & L o a n A s s ’n ............... 62
G e n e r a l M o t o r s A c c e p t a n c e C o r p o r a t i o n 28
H a w k e y e C a s u a l t y C o m p a n y ....................... 21
H a w k e y e M u t u a l H a i l I n s . A s s ’n ............... 55
H o l l e y a n d S o n s , L. W ........................................ 65
H o m e F e d e r a l S a v . & L o a n A s s ’n ............... 62
H o m e I n s u r a n c e C o m p a n y ..............................
H o t e l M c A l p i n ............................................................ 65
H o t e l W e l l i n g t o n ..................................................... 65

Banking Supplies of Highest Quality —
Courteous Service—Sensible Prices.

I o w a - D e s M o i n e s N a t . B a n k & T r u s t Co. 68


K o c h B r o s ......................................................................


L a M o n t e & S o n .......................................................
L a m s o n B r o s . & C o ................................................
L e s s i n g A d v e r t i s i n g Co., I n c .........................
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 ..........
L i v e S t o c k N a t i o n a l B a n k , O m a h a .............
L iv e S to c k N a tio n a l B a n k , S io u x C ity . . .


M c G u i r e , W e l c h a n d C o m p a n y .......... .. . . .
M erch a n ts M u tu al B o n d in g C o m p an y . . .
M e r c h a n t s N a t i o n a l B a n k .................................
M oon P r in tin g & E n g r a v in g C om pany. .
M o r t g a g e I n v e s t m e n t C o r p o r a t i o n .............
M u t u a l S u r e t y C o m p a n y o f I o w a ...............



N a t i o n a l B a n k o f W a t e r l o o ............................ 54
N o r t h w e s t e r n F e d . S a v . & L o a n A s s ’n . . 62
N o r t h w e s t e r n N a t i o n a l L i f e I n s . C o . . . . 45
O m a h a N a t i o n a l B a n k ........................................


C o m p lete



Equipm en t


W h e n Y ou S te p
o f f t h e T r a in in

P h i l a d e l p h i a N a t i o n a l B a n k ............................ 24
P o l i c y h o l d e r s M u t u a l C a s u a l t y C o ............ 56
P o l k C o u n t y F e d . S a v . & L o a n A s s ’n . . . 62
R a d i s s o n H o t e l .......................................................
R a n s o m T e a R o o m ..................................................


S a f e t y F e d . S a v i n g s & l o a n A s s ’n .............
S h a w , M c D e r m o t t & S n a r k s ............................
S t e e l S t o r a g e F i l e C o m p a n y ............................
S t o c k Y a r d s N a t . B a n k o f S o u t h St . P a u l


U n i t e d F e d e r a l S a v i n g s & L o a n A s s ’n . . . 62
U n i t e d S t a t e s C h e c k B o o k C o m p a n y . . . . 42
U n i t e d S t a t e s N a t i o n a l B a n k o f O m a h a . 34
W a n t A d ......................................................................
W a n t A d ......................................................................
W a l t e r s C o m p a n y , C h a s . E ..............................
W e s t e r n M u t u a l F i r e I n s . C o .........................
W e s t o n L i g h t i n g S t u d i o ......................
W h i t e - P h i l l i p s C o r p o r a t i o n .........................
W o o d B r o s . T h r e s h e r C o m p a n y ....................

68 'IfeoAA
Q u a lity fj& wetsuf
Bankers cordially invited
to visit Iowa’s outstanding
jewelry store

Federal Reserve Bank of St. Louis

T h e r ig h t k in d o f in s u r a n c e
a g e n c y in a b a n k ca n b e b o tli
in te r e s tin g a n d p r o fita b le .
F a r m e r s U n io n L ife o ffe r s
m o d e r n , sa la b le p o lic ie s —
p lu s an a ttr a c tiv e a g e n c y
c o n tr a c t f o r b a n k s.
W rite
f o r d e ta ils.


T h e H o tel M c A lp in is only
a block aw a y from the
P en n sy lv a n ia R . R. S tation
and only s e v e n m inutes
fro m the G r a n d Central
T erm in a l. B & O Buses
stop at o u r door.
Decidedly, T h e M cA lp in
H otel is a fav o rite w ith the
b an k in g f ra te rn ity .

S IN G L E R O O M f r o m S3
D O U B L E R O O M f r o m $4.50

I n s u r a n c e Co.

L t J n d e r KNOTT Mgt. JohnJ. W oelfle, M g r ^

Home Office, Des Moines, Iowa

Northwestern Banker

December 1939







B ritish Guide (show ing places of
historical in te re st): “A nd it w as in th is
room th a t Lord W ellington received
his first com m ission.”
In su ran ce man: “H ow m an y re ­
new als?”

T he landlady bro u g h t in a plateful
of extrem ely th in slices of bread and
b u tter, w hich ra th e r dism ayed h er
h u n g ry m en boarders.
“Did you cut these, Mrs. B row n?”
asked one.
“Yes, I cut th em ,” came th e stern
“Oh,” said th e boarder, “all right,
I ’ll deal!”

W anted a Lesson
G o Easy
The girl had ju s t said “yes.”
“Do y o u r people know th a t I w rite
po etry ?” he asked.
“Not yet, dear,” she said. “Fve told
them about y o u r d rin k in g and gam b­
ling, b u t I couldn’t tell them ev ery ­
th ing at once.”

G entlem an
(at police
“Could I see the m an w ho w as a rrested
for robbing our house last n ig h t?”
Desk Sergeant: “T his is v ery ir­
regular. W hy do you w an t to see him ?”
G entlem an: “I don’t m ind telling
you. I only w an t to ask how he got
in th e house w ith o u t aw akening m y
w ife.”

O r Buckshot
“E ngaged to five girls a t once!” ex­
claim ed a horrified father, “H ow do
you explain such a situ atio n ?”
“I don’t know ,” replied th e son,
“unless Cupid shot m e w ith a m achine

An Oversight
Have you h eard the one about a
v isito r in an E n g lish hom e w ho com ­
m ented on th e large n u m b er of chil­
dren in th e fam ily?
“Yes,” said th e head of th e house­
hold, “we do have a lot of ch ildren
and th e fu n n y th in g is th a t all th e ir
nam es begin w ith haitch. T h e re ’s
’Orace, ’E rb e rt, ’E n ry , ’U bert, ’Arold,
’A rrie t and ’E tty —all except th e last
one, and we ’ad ’er nam ed H alice.”

No Sale

Jim : W hen you proposed to her, I
suppose she said: “T his is so sudden?”
George: No, she w as h onest about it
and said: “The suspense has been te r­

F irs t S ultan—Listen, pal, I ’ve got a
real barg ain for you. I ’ll trad e you
th e tw o redheads in m y harem for one
of yo u r blondes.
Second—N othing doing, friend. I
can see those scratches on your face!

And It W as


The car w as m oving along a lonely
road. Suddenly, from u n d er the hood
cam e a terrific knocking. The car came
to a stop.
He: Heck, I w onder w h at th a t knock
She: I th in k it’s opportunity, baby.

“T hey say th a t B linkers w ent into
m arriage w ith his eyes sh u t.”
“No wonder! I ’d sh u t m y eyes, too,
if I th o u g h t a gun w as going off!”

A Searching Examination
A m in ister w as loud in his praise of
th e fat and juicy b ird in his colored
host served for dinner, and finally he
asked: “W here did you get such a
fine goose as th a t? ”
“P ah son,” replied his host, “w hen
you p reaches a good serm on Ah doan
ax you w h ar you got it. Ah hopes
you’ll hab de sam e consideration fo’
m e.”

College Stuff
O r Jump Up
The excited sp o rtsm an heaved a
m ighty heave, th e n reeled m adly till
the poor tro u tlin g w as nine feet aloft,
w ith its head ag ain st th e tip of the
rod, flapping feebly there.
“Now w h a t’ll I do?” he dem anded.
“So fu r ez I can see,” said th e
puzzled lum berjack, “th e re a in ’t nuthin ’ fu r you to do except clim b the
Federal Reserve Bank of St. Louis

Mrs. N ew bride: “I took the recipe
for th is cake out of th e cook book.”
Hubby: “You did perfectly right,
dear. It nev er should have been p ut

Knew It All the Time

“And w here w ill you live?” asked
the frien d of th e girl w ho w as about
to be m arried.
“On N in th av enue.”
“B ut w o n ’t th e elevated tra in s
b o th er y ou?”
“T he landlord said th e y w ouldn’t
a fter th e first few nights, and you
know we can spend th e first few
nigh ts a t m o th e r’s.”

Leave It Out

Football: A gam e in w hich th e best
team loses on account of th e other
fellows g etting some of th e d arndest
Co-eds: Lovely creatu res of w hich
it is suicide to date m ore th a n one at
th e sam e so ro rity house.
Yearbooks: T he eds copy 21 other
an n u als th a t th e o th er stu d en ts have
n ev er seen.
Profs.: F act m en nobody loves.

He Eats It Up
Lovely—The w ay to a m an ’s h eart
is th ro u g h his stom ach.
M other—T hen w hy don’t you learn
to cook?
Lovely—I have a b e tte r system . I
cultivate a sense of h um or and hand
him belly laughs.

So W hat?
He—Could a fellow w ith a h undred
dollars in his pocket take you out and
have a big evening?
Blonde—Say, a fellow w ith a h u n ­
dred dollars in his pocket w ouldn’t
have to take me out!

W hy Not?
H ubby—A nd now th a t w e’re m ar­
ried, I ’ll never leave you alone for a
single night.
Wifey-—W hy, you suspicious thing.

’Round and ’Round
Ned—T h at guy got fired for soft
pedaling his job.
Ted—W h at does he do?
Ned—H e’s a six-day bike rider.

R. L. S te e le
251 8 1st A v e n u e , N orth
B illin g s—T e le p h o n e 2706

R. E. M urphy
130 N orth L incoln St.
H a stin g s—T é lé p h o n é 404

A . L. H am ilton
111 Third S treet
T hief R iver F a lls —T e le p h o n e 198

J. W. P axton
105 E ast Front Street
B loom in gton —T e le p h o n e 2384

R. H. S ly e
113 F ourth S treet, N orth
G r e a t F a lls —T e le p h o n e 4343

E. V . M cC orm ick
111 N orth 11th St.
L incoln—T el. 2-2080

V . D. M e r v e a u x
211V2 3rd S treet, S. E.
C e d a r R a p id s—T e le p h o n e 4546

A lle n W a le s A d d in g M a c h in e A g e n c y
209 W. J a c k so n B lvd.
C h ic a g o —T el. W a b a sh 4679-80

E. R. Scott
14 S ou th M ain S treet
H e le n a —T e le p h o n e 1094

R. E. M urphy
118 E a st B Street
M cC ook—T e le p h o n e 28

E. L. M cD on ald
314 S h o p s B u ild in g
D e s M o in e s—T e le p h o n e 3-7762

R a y D e fe n b a u g h
242 S. J e ffe r so n St.
P e o r ia —T e le p h o n e 8233

R. B. W h itin g
517 S e c o n d A v e n u e N orth
F a r g o —T e le p h o n e 5234

O. W . B erg
107 E a st 5th
N orth P la tte —T e le p h o n e 443

J. K n ab e
425 D a k o ta A v e n u e
H u ron —T e le p h o n e 8778

J. F. K arb u sh
205 S. 18th S treet
O m a h a —T el. A tla n tic 2413

C. U rb an
717 St. J o e S treet
R a p id C ity —T e le p h o n e 434

C. W . A n d e r so n
220 Sou th 6th Street
B ra in erd —T e le p h o n e 300

A . L. R ile y
N e w H am pton —T e le p h o n e 110

R. D. D en n is
308 Sou th Fifth S treet
L e a v e n w o r th —T e le p h o n e 176

C. M. B ozarth
214 W e s t 10th Street
S io u x F a lls , S. D .—T e le p h o n e 135

A lle n W a le s A d d in g M a c h in e S a le s Co.
127 S ou th Third S treet
M in n e a p o lis—T el. B rid gep ort 7074

G . H. B a ile y
230 E. S e c o n d S treet
O ttu m w a —T e le p h o n e 1539

C. A . B ish op
420 F e lix Street
St. J o s e p h —T e le p h o n e 6-1188

M. J. D a b o ll
828 St. G erm a in St.
St. C lo u d —T e le p h o n e 6 3 0

W. E. W ilco x
719 L a fa y e tte Street
W a terlo o —T e le p h o n e 3924

G u y W. E d m unds
211 N o. 7th S treet
St. L ou is—T el. C h estn u t 0220

R. E. M urphy
321 W e st Third S treet
G ra nfor
d Is
la n d —T e le p h o n e 140
Federal Reserve Bank of St. Louis

J o s e p h J. R e illy
599 V2 M ain S treet
D u b u q u e —T e le p h o n e 422
L. G. S h a n n o n
1005 C en tral A v e n u e
Fort D o d g e —T el. W aln u t 3446

A . W. C arter
1535 W aln u t S treet
K a n sa s C it y - T e l. VI-3228
L ee B. H a u sa m
408-410 N . M ain S treet
H u tc h in so n —T e le p h o n e 127

Banks in Iowa again will lend millions of dollars on corn sealed in cribs
throughout the state under the program of the Commodity Credit Corporation.
This Bank is pleased to assist Iowa Banks in financing corn loans. W e stand
ready to purchase a substantial amount of these loans from Banks. To insure
satisfactory and prompt service these loans will be handled again by our special
corn loan department . . . whose efficient service merited commendation from
so many Banks last year.
Banks of Iowa are invited to make use of the complete correspondent
facilities always available at Iowa's Largest Bank.


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Since 1875 . . . A Dependable Correspondent Connection . . . Through G ood Times and Bad

Io w a -D es M oines N a t i o n a l Bank
& Trust Co m p a n y

Federal Reserve Bank of St. Louis