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O. A. R IL E Y
V ice President, H astin gs N ational Bank
President, Nebraska Bankers A ssociation

W hat Bankers Can Do to Help Control Inflation
Federal Reserve Bank of St. Louis

Page 11








The Richness of Age
A ge en rich es a hank w ith a fu n d o f e x p erien ce and endow s
it witli certain ch aracteristics that co m e o n ly w ith the p assin g
o f tim e. T h ese elem en ts are im p ortan t in GOOD c o rresp o n d ­
ent h ank service.
A ow in its 6 0 th year, the M erchants N ation al has th ree score
years o f c o rresp o n d en t e x p erien ce to its credit. In som e eases,
this tim e-tested and p ro v en service n ow go es to the second
and even to the th ird g en era tio n o f b a n k ers!




J ames E. H amilton , Chairman
S. E. Coquillette, President
H. N. B oysO'N, Vice President
Roy C. F olsom, Vice President
Mark J. Myers, V. Pres. & Cashier
George F. Miller, V. Pres. & Tr. Officer
Marvin R. S elden, Vice President
F red W. S m ith , Vice President
J ohn T. H amilton II, Vice President
R. W. Manatt , Asst. Cashier
L. W. B roulik, Asst. Cashier
P eter B ailey, Asst. Cashier
R. D. B rown, Asst. Cashier
0. A. Kearney, Asst. Cashier
S tanley J. Mohrbacher, Asst. Cashier
E. B. Zbanek , Building Manager

Cedar Rapids


Member Federal Deposit Insurance Corporation

N orthw estern Banker, published m onthly by the D e Puy P u b lish in g Company, Inc., at 527 7th Street, D es M oines Iow a
Subscription, 35c per copy, $3.00 per year. E ntered as second -class m atter at the D es M oines post office. Copyright, 1941.
Federal Reserve Bank of St. Louis

A M erry Christmas

ana a

Happy, Prosperous New Year
¿ó c o r d i a l l y

e x te n d e d

to a l l o ß o u r ^ r ie n d á

"Iowa’s Friendly Bank

u n icl

^ J r a â t d co

m j i c u i Lj


Member Federal Deposit Insurance Corporation

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

D ecem ber 19M

The Lamp that
Saves Lives __
The Paper that
Saves Money

In former d ays, the lam p w orn on the coal
miner's cap w a s a constant source of danger.
It often ignited m ine g a s or co a l dust, cau sin g
explosion and loss of life. The safety lam p now
in u se is security a g ain st this peril.


the d a y s of La M onte Safety Papers, checks
and drafts w ere subject to the d an gers of
e a s y alteration and counterfeiting. Inventive
g en iu s in ea ch c a se brought the a ssu ra n ce of
s a ie ty . In the m ine, the sa fety lam p h as sa v ed
lives. In banking and b u sin ess, safety paper
h a s g iv en im m easurable security to checks
and other docum ents in volvin g dollars, again st
alteration and forgery. » » La M onte Safety
Papers are the m odern standard of protection,
bringing to bankers and b u sin ess h ea d s every ­
w h ere the satisfying sen se of freedom from
concern over the daily outpouring of chocks
and other v a lu a b le instrum ents of our com ­
m ercial activities. » » Their u se an d en d orse­
m ent b y 75% of the country's lea d in g banks
and b y lea d in g b u sin ess h ou ses, is clear ev i­
d en ce of their safety v a lu e . . . Your Lithog­
rapher or Printer w ill b e g la d to sh ow you
h ow your ow n tradem ark can b e m ad e part
of the paper itself.
Federal Reserve Bank of St. Louis



Freedom of the Seas
]VTore swiftly than was believed possi­

construction of new shipyards as well

ble, m ore powerfully even than hoped

as o th er facilities for arm am ent p ro ­

for, our tw o-ocean


navy is taking

shape to assert this n ation’s inalien­
able rights on the high seas.

In financing the building of these
great industrial defense

plants, the

T o m ake possible our floating ram ­

Chase National Bank is cooperating in

parts of steel and all else th at is nec­

vigorous m easure with correspondent

essary on land and sea and in the air

banks th ro u g h o u t the land, thus h elp ­

to d e fe n d A m e ric a — c o m m e rc ia l

ing to place in the hands of our arm ed

b a n k s th r o u g h o u t th e c o u n try are

forces the means of defending this

actively participating in financing the

natio n ’s h onor and integrity.

Member Federal Deposit Insurance Corporation

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

D ecem ber 19M


■ ¡■ SH IP
_ _ _ _ _ — f H.
¿¿¡¡m m ***

Tins is the B e*
that a Covi
made fa™0®

, :
SàV ' ^
9 A u t A ’: e
m £a &
m s■- * % * &
, , « “'s i ,. ,

>™ '

as Mrs- O ’U a r y s
* » t ^ c k e d ° ' ,e r,

,antem th at started
at fired Chicago t »
' „ to o n e o ftlre ^ e s
d e v e lo p s
.„^cordedW story


C h ic a g o IN Flam es — TherushforlifeoverR andolphStreetBridge
— fro m a sketch by John R . Chapin


roaring holocaust the Chicago office of
was burned to ashes.
This did not, however, prevent settlement of claims
insured by the Company. H. H. Walker, Adjuster of
T he H ome, sat behind this desk, which is now in the
H. V. Smith Museum collection; and from improvised
headquarters accomplished settlement of losses
amounting to more than $3,000,000. The prompt­
ness and reliability with which insured losses were
paid emphasize today the calibre of protection
always afforded by companies of T he H ome F leet.

On the back of one of the drawers in
the desk, H. H. Walker wrote these
words, ”This desk I desire to pass in
the family down to the youngest son
as a memento of the 60 days’ hard work
by its possessor at Chicago, Ills. 1871.”

n this


T he H ome Insurance C ompany
Federal Reserve Bank of St. Louis






19 4 1


Oldest Financial Journal West of the Mississippi River

Across the Desk from the Publisher.

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

H EN R Y H . H A Y N E S

Associate Editor

527 Seventh Street,

Feature A rticles
Frontispiece ........................................................................ .............................................
W hat Can Bankers Do to Help Control Inflation?........................... -.......... -..........
Give Those Dormant Accounts a Shot of Direct Mail.............................................
Coin Banks Are His Hobby........ ..................................................-................................
Legal Department—When Recovery Can Be Made...............................................
Orchids to W. B. “Billy” Hughes.................................................................................
There Must Be No Speculative Boom in Farm Real E state.....................................
Would You Saddle Your Bank With Loans Like These?...-....................................
News and Views.......................................................... -................Ralph W. Moorhead
How Your Bank Can Profit From Farm Auction Sales................... C. M. Amman


Sell Accident Coverage—and Make More Money...............................R ■C. Larson 23
Minnesota Commercial Men’s Makes Building A lterations................................... 25

Des Moines, Iowa
Telephone 4-8163

Bonds and Investments
The Month’s M arket Maneuvers.......................... ...........................James H. Clarke 27
To Sell U. S. Savings Bonds......................................................................................... 28
Q uarter-Century Employes Honored........................................................................... 31

Frank P. Syms
Vice President
505 Fifth A ve.

Suite 1202

Telephone MUrray Hill 2-0326

Jos. A . Sarazen
Associate Editor
Telephone Hyland 0575

State Banking News
Minnesota News ..... ........................................................................................................
Northwestern National Buys Prize W inner................. ......................................
Twin City News.................. .............................................James M. Sutherland
South Dakota News............................................... ..........................................................
1941 Group' Meetings......... ........... .......................... -..............................................
North Dakota News...................................... —- .... .......................................................N ebraska News ..................................................................................-............................
Omaha Clearings ............................................... ....................................................
Lincoln Locals ..........................................................................................................
Brief Nebraska News..... ..............................................................Paul W. Shooll
Iowa News ....................................................... ................................................................
Christmas Display in Clinton............................................... ................................


The Directors* Room
A Few Short Stories to Make You Laugh.
Audit Bureau of Circulations
Financial Advertisers Association
Federal Reserve Bank of St. Louis

Across the Desk
From the Publisher

Docs Inflation
Doom the

In a very in terestin g treatise “ D ollar D oom sday” by E.
Riegel of New Y ork, it is
bis belief th a t inflation dooms
our p resent dollar as a u n it of exchange, and he
believes th a t the “ Index D o lla r” should be used
as a basis for m easuring values.
He believes th a t the D ollar Index B ureau should
be established which would officially au thenticate
and publish “ U nder its seal this index. Based
upon this au th o ritativ e and im p artial pronounce­
ment, business m ay adopt the index dollar ra th e r
th a n the dollar as its credit m onetary la n g u ag e .”
The index d ollar m ight, on the day of a sale or
contract, stand a t 113, m eaning th a t the price
level had advanced 13 per cent from the base
date. The price quoted in index dollars, in a con­
tra c t w ritten in term s of it, would m ean a con­
stan tly rising figure in connection w ith the rising
price level as shown by the official index.
F o r example, 30 days la te r it m ight m ean 115,
if th a t were the official figure released by the In ­
dex B ureau on th a t date. A year la te r it m ight
m ean 149. The figure above 113 would be the
inflationary fa cto r w hich the payer would have
to add to his paym ent.
W e believe th a t this idea of an index dollar has
m uch to recom m end it, b u t we doubt very much
th a t any of our congressm en at AVashington will
tak e the tim e or in tere st to stu d y it sufficiently
to see w hether it is w orth p u ttin g into effect.
The index dollar, to have any real value, would
have to be accepted nationally the same as we
accept now the in d u strial averages for stocks.
AVhether inflation dooms the dollar rem ains to
be seen, b u t of one thing we m ay be sure, th a t its

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

D ecem ber 1941

purchasing pow er will be greatly reduced as the
prices of goods, services and commodities con­
tinue to rise.

Are Bankers Only 0ne of
friends in

my b a n k e r
Los Angeles
y j
sent me a very in terestin g
' *
story from the Los A n­
geles Times, w ritten by C hapin H all, who w rites a
re g u la r column for th a t new spaper entitled
“ W hat Goes O n ?”
In this article Mr. H all points out th a t bankers
are only shopkeepers today, th a t if they have to
m ake a decision on any item more th an $1.98, it
has to be re ferred to the “ m ain office,” and th a t
branch m anagers are tra n sfe rre d around like
S tan d ard Oil filling station atten d an ts.
Mr. H all also seems to th in k th a t no m atter
how successfully an individual is conducting his
business affairs in any p a rtic u la r com m unity,
such a record has no bearing on his statu s w ith
his local banker.
W e disagree entirely w ith Mr. H all, except th a t
we realize th a t he is in a state th a t is dom inated
by branch banking, and th a t m ay have a definite
influence on Mr. H a ll’s a ttitu d e and view point.
In his article, Mr. H alls s a y s :
“ The banker is no longer the guide, phi­
losopher and friend of the community whose
advice is sought on mundane affairs any more
than the modern parson is on affairs of the
soul. He, the banker, no longer wears a top
hat and frock coat or looks out upon the
world with a cold, steely glint in his eye. In­
stead he is a ‘m anager’ who bosses the crew,
refers all matters involving more than $1.98


to the ‘main office’ and who may be trans­
ferred to another post any day, like a Stand­
ard Oil filling1 station attendant.
“ It makes not the slightest difference to
him that you have lived in the community for
50 years and met every financial obligation
on the nose, or that your ‘word is as good as
your bond.’ Bankers are only shopkeepers
today, no longer necessarily the tow n ’s rich­
est or ‘lead in g’ citizens, and their stores are
merely the Blankville branch of the Steenth
National Bank of Bigtown.
“ Even the familiar grills separating the
boys who hand ont or take in the cash are be­
ing removed by at least one big chain bank,
and the manager of any of them is as acces­
sible as a floorwalker in a department store. ’ ’
W e believe th a t the b an k er is still the guide, phi­
losopher and friend to thousands of business men
and individuals who are seeking financial advice.
The b an k er today does tak e into consideration
the previous experience and record of honesty and
in te g rity of the m an or wom an who w ants to b o r­
row money from his bank or ca rry out some busi­
ness transaction.
B ankers today are more th a n shopkeepers, and
they are resum ing the place in th e ir com m unities
of esteem and prestige which they form erly oc­
B ankers are a vital and necessary p a rt of our
m odern business life, and more so today th a n ever
when they are being relied upon to carry th eir
load in our natio n al defense program .
Yes, indeed, bankers are more th an shopkeepers,
and are doing th eir p a rt in every com m unity
th ro u g h o u t the land.
There are m any who believe
our ta x burd en should be passed
on to some fu tu re time, and th a t
it will be easier to pay then th an
now. This argum ent is not likely to be sound in
view of the fact, at some fu tu re time, w ar will be
over, the spending program will have stopped,
and big incomes and high wages will not be as
p rev alen t as they are at the moment.
Therefore, the tim e to pay the taxes is now
when such incomes are available, and not la te r on
when they are less likely to be in effect.
In a recent bulletin the N ational City B ank of
New Y ork s a y s :
“ W ith the federal debt already above
fifty-three billion dollars ( not including the
indirect debt of nearly seven billion dollars)
and certain to rise much higher, it is evident

Let's Assume
Our Tax
Burden Now

that we are piling up difficult debt and tax
problems fo r the future. Such problems may
prove exceedingly embarrassing in the period
of post-war readjustm ent when incomes are
no longer swollen by defense expenditures
and when the willingness to pay taxes is no
longer strengthened by the consciousness of
national crisis.
“ The time to pay taxes, in other words, is
now, when em ploym ent and incomes are high,
and when the need fo r sacrifice is generally
A fter the w ar em ergency is past, the desire and
willingness to pay taxes will be less ap p aren t,
and they will also be h ard er to collect.
Therefore, we quite agree th a t the job for us
all now is to assume our ta x burdens, and pay
w hatever m ay be necessary, assum ing th a t non­
defense expenditures are being reduced a t the
same time.

O f Bankers
Needed Nc

That the leadership of
bankers is needed more
th a n ever was em phasized
by L eonard P. Ayres, who
is now B rigadier G eneral in the statistical divi­
sion of the W ar D epartm ent, who spoke before
the A. B. A. Convention recently.
G eneral A yres pointed out th a t: “ Ever since
the days of Alexander Hamilton and Robert Mor­
ris, American bankers have been leaders in their
communities. They are leaders now, but there are
pressing reasons why they should exercise leader­
ship more generally, more aggressively, and more
effectively in the trying time in which we are,
and in the still more trying times that lie ahead.
There are no bankers w ith whom we are ac­
quainted who a r e n ’t w illing and anxious to exer­
cise th eir leadership in th eir communities, b u t
the General m ust rem em ber th a t the pow ers-thatbe in W ashington have been im peding and com­
peting w ith banking as it has never been com­
peted w ith in the history of the country.
In spite of this com petition, and in spite of
m uch antagonism which has been shown the b an k ­
ers in the past nine years, they are on the firing
line today, helping to sell defense bonds, stam ps
and doing everything they can to w ork out the
pressing economic problem s of today.
W e quite agree th a t the leadership of bankers
is needed now more th an ever.

N orthw estern Banker
Federal Reserve Bank of St. Louis

D ecem ber 1911


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

D ecem ber 19bl


W h a t C an Bank ers Do
In Their O w n Communities

To Help


Some Comments on the Problem of Inflation By
Northwestern Banker Readers

N FL A T IO N —is it coming, or do we
have it? A nd hav in g it, w h a t can
we do about it—or is it now too late
to tr y to do anything?
Inflation, like charity , begins at
hom e, and th e n spreads out like th e
ripp le on a pool u n til th e en tire area
is engulfed.
W e asked several b an k ers to tell
us w h a t th e y th o u g h t could be done
by b an k ers in th e ir com m unities to
help control th e inflatio n ary im pulse,
and replies we received are indeed in ­
terestin g , as noted below.


to try to p rev en t som ething th a t has
already happened. If th ey w ill th ro w
Jo h n L. Lew is out in th e m iddle of
th e ocean w ith a ton w eight around
his neck, th a t m ight help and do a
lot of good.”
E. S. Iiiernan , cash ier of th e A lton
Savings Bank, A lton, Iow a, w rites as

“Inflation is as a huge flood th at, if
it comes, w ill cover th e en tire nation.
I t is idle to believe th a t any one com­
m u n ity can escape.
“People, being people, w ill spend
Clay W. Stafford, cash ier of the
th e ir m oney as th ey please.
A m es T rust & Savings Bank, Ames,
“T he local b an k er m ay, perchance,
Iow a, says:
p u t his own house in order, sacrifice
“The one definite th in g w hich all som e p resen t profits (m aybe lose a
ban k s can do to assist in inflation con­ few custom ers in th e deal) and he
tro l is to p u sh th e sale of D efense m ay advise those of his custom ers
Bonds. Our little bank, w ith o u t m uch w ho come to him for advice, to p u t
perso n al effort b u t w ith th e assistance
T H E IR house in order.
of n ew sp ap er ad v ertisin g w hich we
“In th e G reat Flood, N oah and his
have done, has sold a to tal of $130,- fam ily w ere saved, w hile th e scoffers
925 of these bonds.
“Beyond this, it seem s th a t th e re is
“If everyone p u t th e ir own house
little th a t can be done a t th e p resen t
in order, th e com m unity w ould suffer
tim e, except to call th e people’s a t­ less; and th e re is th e b a n k e r’s task .”
ten tio n to th e fact th a t it is im p o rtan t
Brief, b u t nonetheless to th e point,
th a t th e y set aside u n u su a l reserv es
is th e reply of Eeo .T. W egm an, p resi­
a t th is tim e to tak e care of taxes
dent of the C itizens Savings B ank of
w hich th e y w ill have to s ta rt paying A nam osa, Iowa, w hen he says:
in M arch of n e x t year.
“K eep credit closely in hand. In ­
“To ask people to m ake sacrifices duce bank custom ers to pay th e ir p re s­
and seriously c u rta il ex p en d itu res is en t debt obligations, and avoid useless
like a tte m p tin g to paddle a canoe spending.
C r e a t e cash reserves
ag ain st a stro n g cu rre n t. People can th ro u g h savings deposits or in v est­
see on all sides th e ex trav ag an ce of m en t in g overnm ent bonds for fu tu re
th e federal g o v ern m en t in non-defense contingencies.”
and p ork-barrel projects and w ith th is
Mr. W egm an, folks, is a Dem ocrat,
exam ple from above, it is not possible b u t a p p aren tly not a New D ealer, as
to develop a sacrificial a ttitu d e on th e
evidenced by his advice to “avoid u se­
p a rt of th e people them selves.”
less spending.”
A. R eitan, cashier of th e A lberta A nd now let us tu rn to a statem en t
S tate Bank, A lberta, M innesota, in his
m ade by Dr. George S. B enson, p resi­
rep ly m akes a suggestion reg ard in g
dent of H arding C ollege, Searcy, A r­
Jo h n L. Lew is th a t I am su re m an y of kansas. w h erein th e good doctor
us w ould like to see happen. Mr. m akes a suggestion as to how to avoid
R eitan says:
“T here is only one w ay to avoid in ­
“You know it is alm ost im possible

flation—pay for th e w ar as w e go ju st
as far as possible and th u s avoid heavy
indebtedness and heavy tax atio n over
a long period follow ing th e w ar.
“Two steps are necessary to accom ­
plish th is end.
“1. Collect m ore taxes now, specifi­
cally for defense.
“2. Econom ize now in non-defense
ex p en ditures and apply every possible
dollar of revenue to th e cost of th e
w ar.
“Can we collect m ore taxes for de­
fense now? Yes, nationalism is high,
in d u stries are active, and incom es are
high. People w ill pay high taxes
m uch m ore easily th a n a t any other
tim e.
“Can we economize on non-defense
expenditures? Yes, indeed. N ationaw ide econom y is possible, and is im ­
perative. W e can all practice econom y
w hen we have to.
“I am presid en t of H arding College,
a sm all college in A rkansas, a state
w here th e p er capita incom e is only
$225 a year and th e average fam ily
income only $969 a year. T his col­
lege has no endow m ent, no income
from taxation, no reg u lar large gifts,
and, as our stu d en ts do not come from
w ealth y hom es we cannot charge high
tu itio n and fees. A ccordingly, we can
only balance our budget by econom iz­
ing. Our experience proves th is to
be an asset. It has m ade our stu ­
dents m ore self-reliant, m ore depend­
able, m ore efficient—m ore in dem and.
T h ro u g h o u t th e p ast ten depression
years, we have co n stan tly had m ore
calls for g rad u ates th a n we could sup­
ply, even du rin g th e period w hen th ere
w ere m illions of unem ployed youth,
including thousands of college g rad ­
“W aste and extravagance on the
p a rt of th e public or on th e p a rt of
our G overnm ent is p a rticu larly p ain ­
ful to us. All of our professors are
m aking sacrifices in o rder th a t th e
N orthw estern Banker D ecem ber 19 M
Federal Reserve Bank of St. Louis


G ive Those Dormant Accounts
a Shot of

Direct Mai!

Here Are Samples of Three Letters— Two Introductory and One
Follow-Up— That you Might Try to Promote More
Activity in Your Savings Department
ROBABLY every savings account,
no m a tte r how sm all th e in itial
am ount m ay be, is opened w ith th e
good in ten tio n of being k ept active
and b u ilt up to a sizable sum. B ut
th e re is keen com petition th ese days
for th e savings depositor’s fifty cents
or his dollar, and m any tim es it isn ’t
long before a re g u la r deposit or tw o
w ill be m issed, th e n la te r no m ore
deposits at all, and th e account, if not
w ith d ra w n entirely, rem ain s dorm ant.
In an effort to stir som e activ ity in ­
to d o rm an t accounts, th e F in an cial
A dv ertisers A ssociation has suggested
a n u m b er of form letters w hich b a n k ­
ers can use, and several of th em ap ­
pear below.
One of th e letters, th e w ording of
w hich m ight be changed to fit th e
req u irem en ts of an y bank, reads as
There are tw o im p o rta n t factors in
every successful effort to save m o n ey
— the sta rt— and the keeping at it.
Y ou m ade the sta rt w h e n yo u opened
a savings account in the B la n k N a­
tional B ank, hut—som ehow — yo u did
not keep at it.
“K eeping at it” is not easy— as you
have discovered fo r yourself. I t is
usually easier to spend th a n it is to
save, fo r it is alw ays easy to find an ex­
cuse for spending m o n e y — if yo u w a n t
to spend it.
The one sure plan fo r “keeping at
it” is to decide how m u ch yo u can
spare fro m y o u r w e e k ly or m o n th ly
earnings, th e n — D E P O SIT T H A T

A nother in tro d u cto ry le tte r to dor­
m a n t savings account depositors
m ig h t read like th is one:
Upon looking over our books last
w e e k w e found that your account had
been inactive for a long tim e. This
troubles us a bit, fo r w e feel that it
m a y be an indication of dissatisfac­
tion on your part. I f this is true, even
to the slightest exten t, w e should like
to hear about it.
W e find, how ever, in the fe w cases
of inactive accounts w e have that th ey
are often explained by tw o chief
causes; first, the depositor has m oved
away; second, he has been unable to
m a ke deposits once or tw ice, and has
fallen aw ay fro m the habit of com ing
regularly to the bank.
W h a tever m a y be the reason in yo u r
particular case, w e w ish to assure you

ideals of our in stitu tio n m ay be m ain ­
tained. W e are able to hold Ph.D.
professors at $100 a m onth, w hen th ey
are an n u ally offered tw o or th re e
tim es th a t am o u n t elsew here. Our
h ig h est salary is $1,800 a year, and we
are holding executives w ho are a c tu ­
ally been offered five tim es th a t
am ount. T hese professors also set an
exam ple of th rift and econom y by liv­

ing w ith in th e ir incomes. My own
fam ily car is still a 1936 V-8 because
we are unw illing to b reak th e fam ily
trad ition of never going into debt.
“T his loyalty on th e p a rt of the
facu lty and stu d en ts w ho economize so
faith fu lly for th e ideals of H arding
College convinces me th a t th e public
officials of th e U nited States and th e
g en eral public w ill economize to the


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

D ecem ber 1911

D on’t keep the m o n ey in your purse
aw aiting a convenient tim e to deposit
it; if you do— som e of it w ill su rely
get aw ay fro m you. You kn o w this
to be true. I f it is n ot convenient for
you to come to the bank, you can easily
and safely deposit by mail. M any of
our custom ers do this.
Y ou have m ade the sta rt—now , w h y
not try this plan of saving a definite
a m ount regularly and build up yo u r
savings account in the B L A N K N A ­
T IO N A L B A N K ?
V ery tru ly yours,

o f our sincere desire to be of the great­
est possible assistance to yo u at all
tim es.
W e are looking forw ard to the pleas­
ure of seeing you soon again.
Cordially yours,
A fter using one or both of th e above
letters, you find th a t th ey have stim u­
lated m any d o rm an t accounts into ac­
tivity, so you of course w an t to let
th e depositor know you appreciate
his re tu rn to th e fold. T hen you
m ight send him th e follow ing letter:
I was v e ry glad to notice you were
in today to m ake a deposit on your
savings account, in response to our
recent invitation.
A n d I hope yo u w ill continue w ith
regular deposits. I f you do adopt m y
suggestion of saving som e set su m
each w eek, I kn o w that a year or so
fro m now yo u w ill have no reason to
blame m e fo r m a kin g the suggestion.
Again, I w a n t to th a n k you for com­
ing in. I hope yo u r v isits w ill be fre ­
quent. A n d I w a n t you to know that
all of us are continually at your
service. Consult us freely for advice
on all m o n ey m atters.
V ery tru ly yours,
D irect mail, w h eth er used as sug­
gested above, or to call a tten tio n to
o th er services offered by yo u r bank,
is alw ays w orthw hile. It keeps th e
individual th in k in g about y o u r in stitu ­
tion w ith relatio n to his banking
needs, w h atev er th ey m ay be.
’n th degree for th e salvation of A m er­
ican Democracy, w hen th ey are con­
vinced of th ree things:
“1. T h at econom y is essential to the
p reserv atio n of A m erican Democracy.
“2. T h at all people are joining in
th e effort, both rich and poor.
T h at th e F ed eral G overnm ent w ill
lead th e w ay.—THE END.


Coin Banks
A re His

OWN in Carlisle, Iowa, th e re is a
b a n k e r w ith a hobby. H is hobby
is un iq u e in th a t it is closely re ­
lated to banking, w hereas hobbies of
m ost people are far rem oved from th e
bu siness in w hich th e y are engaged.
B ut Clarence T. Sim m ons, of th e H artford-Carlisle Savings Bank, is different
—his hobby is collecting sm all coin
banks of th e type used by m any b a n k ­
ing in stitu tio n s for d istrib u tio n to
th e ir savings account custom ers to
stim u late activ ity in th a t departm en t.
Mr. Sim m ons has been accum ulating
his collection over a period of years,
and is co n stan tly adding to it. His
collection now to tals som ething over
400 coin b anks of various kinds, sizes,
and shapes. He has one or m ore banks
from every state in th e U nion. C an­
ada and H aw aii are also represented,
and ju st recen tly he had a le tte r from
a b a n k e r in B erm uda saying th a t a
sm all coin b an k from th a t co rn er of
th e B ritish E m p ire w as on its w ay
to him. T ru e to th e old saying th a t
pro p h ets are w ith o u t h onor in th e ir
ow n country, Mr. Sim m ons has few er
coin b anks from his hom e state of
Iowa, th a n from each of m any oth er
states. Iow a b an k ers please note, and
see to it th a t th e H aw keye State is a
little b e tte r rep resen ted .
The coin b an k collection of Mr. Sim­
m ons is u nique in an o th e r w ay—it
is p u rely a “b a n k e rs’ b a n k ” display.


H ere are ju st a few of the 400 coin banks in the Simmons collection. Mr.
Simmons has all his banks num bered and cataloged, fo r easy reference.

By th a t we m ean all th e coin banks in
his collection cam e to him direct from
bankers, and all are sam ples of banks
w hich are now, or at some tim e have
been, used by b an king in stitu tio n s for
d istrib u tio n to custom ers of th e ir sav­
ings departm ents. Mr. Sim m ons says
he u n d erstan d s th ere are in th e coun­
tr y several collections of m echanical
types of coin banks, such as are sold
in toy shops to appeal to juveniles,
b u t so far as he know s his collection
of b an k ers’ banks is th e only one of
its kind in existence.
The types and kinds of coin banks in
th e Sim m ons collection are of m any
sizes and shapes, although those m ade
up to re p re se n t sm all books are the
m ost popular. Of course th e basic m a­
terial used in th e ir construction is
m etal, and th ere are m any m etal m in­
ia tu res—sm all figures of cats, owls,

Two of the m echanical banks in the Simmons collection.
The one on the rig h t Mr. Simmons has had fo r more
th an 45 years, given to him as a child.

bells, beehives, barrels, bank build­
ings, w atches and clocks, houses,
tru n k s, stro n g boxes, and even a ir­
planes. One of th e oldest banks in th e
collection, of th e book type, is also
from th e oldest organized bank in the
U nited States—th e P rovident In stitu ­
tion for Savings, Boston. The picture
at th e beginning of this article, w hile
including only a few of th e Sim m ons
collection, is rep resen tativ e of th e
m any item s in it.
The m onkey and organ-grinder bank
p ictured here, of th e m echanical type,
is d istrib u ted by th e Hom e Savings
B ank of Boston. The coin is placed in
th e m onkey’s m outh and w hen a lever
is pressed, th e coin is tossed from the
m onkey into the organ-grinder’s box.
The h u n te r shooting at th e bear, also
pictured, is around 45 years old, and
(T u rn to page 28, please)

The sm all b an k a t th e le ft is a replica of the B ank of
H aw aii, L td., H onolulu. The airplane is the ‘ ‘ S p irit of
Savings ’ ’, has a w ing spread of about ten inches, and
fuselage length of th e same.

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

D ecem ber 19hl

After Property Is Fully Paid
For, Can


Be M ade

for Misrepresentation?
M INNESOTA b a n k e r bou g h t a
farm in th a t state on in sta ll­
m ents. The seller m ade certain
rep resen tatio n s reg ard in g th e w ell on
the land th a t w ere false. All b u t one
of th e in stallm en ts w ere paid w hen th e
frau d w as discovered. The b an k er
sought to hold up th e last pay m en t b u t
th e seller served notice of defau lt and
th e b an k er m ade th e rem ain in g p ay­
m en t ra th e r th a n fo rfeit th e property.
He th e re a fte r sued th e seller for dam ­
ages for false rep resen tatio n s. Did th e
fact th a t he com pleted pay m en t for th e
land a fte r he discovered th e frau d p re ­
v en t a recovery?


No. The con ten tion that the banker
could not recover because, after d is­
covering the fa lsity of the represen ta­
tion regarding the w ell, he com pleted
h is contract to purchase should not be
su stained as he w as threaten ed w ith
forfeiture. The final p aym ent did not
w a iv e h is right to dam ages.

M cLean sold to F a rre ll a $5,000 prom ­
issory note in N ebraska for $100. The
note had been signed by P etrie and
he had an absolute defense to an y ac­
tion by M cLean ag ain st him on it. F a r ­
rell dem anded p ay m en t w hen th e note
fell due. P etrie refused to pay and
F a rre ll sued, assertin g he w as an inno­
cent holder in due course against
w hom P e trie ’s defense w ould not lie
w hen th e point w as raised a t th e trial.
P etrie b ro u g h t out as ag ain st such an
assertio n th e price paid by F a rre ll for
th e note and th e ju ry found him not an
innocent purch aser. W ould such facts
sustain such a finding?
Yes. In an action on a note, ev i­
dence d isclosin g that the m aker had an
absolute d efen se to the note in the
hands of the original payee and that
the plaintiff purchased the note w hich
had a face valu e of $5,000 for $100 w ill
support a finding that the plaintiff w as
not a holder in due course.

A n Iow a b a n k e r died in th a t state
leaving a w ill u n d e r w hich his p ro p ­
e rty passed to a tru stee. The w ill furN orthw estern B anker
Federal Reserve Bank of St. Louis

D ecem ber t9 b l

These and Other Timely Legal
Questions Are Answered
By the

th e r provided th a t th e tru stee should
pay over to th e b a n k e r’s son th e in ­
come and any p a rt or all of th e p rin ­
cipal w hen, in th e tru s te e ’s judgm ent,
th e p aym ent w ould be to th e son’s best
in terests. It so happened th a t th e wife
of th e son had obtained a divorce from
him and, as an incident thereto, a judg­
m en t for th e su p p o rt of th e ir m inor
children. Could she subject th e tru s t
to th e paym ent of such judgm ent?
No. W here a w ill p rovides that the
testim en ta ry tru stee sh all h ave the
d iscretion of p a y in g the incom e or
principal to the testa to r’s son w hen,
in the tru stee’s judgm ent, such p ay­
m ent w ould be to th e so n ’s b est in ter­
ests, the tru st cannot be subjected to a
judgm ent for the support of the so n ’s
m inor children. A testator has the
righ t to d ispose of h is estate as he

A W isconsin tru s t com pany w as ap­
pointed tru ste e of an estate consisting
in p a rt of U nited States Savings Bonds
th a t increased in value every six
m o n ths ra th e r th a n providing for sem i­
a n n u al in terest paym ents. The in s tru ­
m en t creating the tru s t provided the
incom e from th e principal of th e estate
should go to one person du rin g his life­
tim e and th a t a t his death the principal
should go to another. The tru ste e
tre a te d th e sem i-annual increases in
th e value of th e bonds as incom e and
a rra n g ed th a t it be d istrib u ted accord­
ingly. W as th is proper?
Yes. In a recent case in v o lv in g sub­
stan tia lly sim ilar facts the W isconsin
Suprem e Court held that the in creases
in th e redem ption price of U nited
States Savings B onds ow ned by a trust

estate w ere not appreciations in the
value of the bonds as in the case of
ordinary bonds b ought at discount,
but con stitu ted incom e of the estate
and belonged to the person en titled to
receive the incom e.

Carney w as for m any y ears a resi­
den t of and a b an k er in N orth Dakota.
He resigned from his position w ith the
bank, sold all his p ro p erty in N orth
Dakota, and sta rte d on a jo u rn ey w est
via autom obile w ith th e in te n t of ab an ­
doning his N o rth D akota domicile and
establishing one elsew here. Before he
got out of th e state, how ever, he w as
involved in an autom obile accident
and, in a law su it th a t arose out of it,
th e question arose of w h eth er he w as
still a legal resid en t of N o rth Dakota.
W as he such a resident?
Yes. A person h a v in g his legal resi­
dence or dom icile in N orth D akota,
w ho rem oves from the place of his
dom icile w ith th e in ten tion not to re­
side there any lo n ger and to rem ove to
an oth er state, is still a resid en t of, and
has h is dom icile in, N orth D akota as
long as he rem ains in the state. H is
dom icile in North D akota con tinu es
u n til he acquires an oth er dom icile else­
w here.

W atson w as charged w ith forgery
in Iowa. A t th e trial, th e cashier of
th e local b an k who, for about tw enty
y ears in th e course of his em ploym ent,
had occasion to exam ine specim ens of
h an d w ritin g for th e purpose of estab­
lishing th e identities of th e w riters,
w as p erm itted to testify as an expert
and, as such, to express an opinion on
w h eth er th e accused w rote th e alleged
forged sig n atu re by com paring it w ith
th e w ritin g of th e accused. W as this
Yes. In a recent case in v o lv in g such
a situ ation the Iow a Suprem e Court
held that a bank cashier w as, in the
circum stances o u t l i n e d , sufficiently
qualified by h is w ork, h is in telligen ce,
and h is exp erience over a lon g period

o f years to exp ress an opinion on
w h eth er the d efendant w rote the sig ­
nature in question.

Orchids to W .

B. "B illy" Hughes

The fa th e r of M axwell, a m inor, w as
a resid en t of Iowa. H is m o th er w as a
resid e n t of Texas. N eith er p a re n t had
abandoned or relin q u ish ed th e child.
M axw ell’s fa th e r died an d it becam e
necessary to appo in t a g u ard ian for
him . No Iow a p ro p e rty w as involved
in such an appointm ent. Did th e Iow a
co u rt have ju risd ictio n to ap p o in t a
g u a rd ia n for M axwell?
No. W here one parent dies, th e dom ­
icile of the su rv iv in g parent fixes the
d om icile of th e child in the absence of
an y relin q u ish m en t or abandonm ent.
W here, as here, a m inor ch ild ’s fath er
w as dom iciled in Iow a at the tim e of
h is death and h is m other w as a resi­
dent of T exas, the m inor’s dom icile on
the death of h is fath er w as in Texas
and the Iow a court had no jurisdiction
to appoint a guardian for him .

A co n tro v ersy arose as to th e rig h t
to use certain ch u rch p ro p e rty in a
city in South D akota betw een certain
m em bers of th e church. T he m a tte r
w en t to cou rt and, in th e proceedings,
th e co u rt w as asked to settle certain
ecclesiastical differences w hich had
given b irth to th e controversy. Could
it do this?
No. W h ere a con troversy arises in
court as to the right to u se certain
church property, the court’s p ow ers
are th ose of a secu lar court and are
lim ited to a consideration of the prop­
erty and civil rights of th e litigan ts,
and it cannot settle ecclesiastical d if­
feren ces w h ich giv e birth to the con ­

The Iow a S tate H ighw ay Com m is­
sion sought to condem n for th e public
use as a highw ay a broad strip of land
across a farm belonging to a b an k er in
th a t state. A t th e tria l th e b a n k e r
sought to show th a t th e com m ission
w as seeking to obtain m ore land th a n
w as actu ally needed. T he com m ission,
in rep ly to th is contention, asserted
th a t, in th e opinion of its civil engi­
neers, th e strip sought w as n ecessary
for drainage, snow control, and to p e r­
m it inno cen t d riv ers to get out of th e
w ay of reckless drivers. Could th e
court, despite th e co ntention of th e
highw ay people, go into th e m a tte r
and decide in favo r of th e b a n k e r if it
found th e facts to be as he contended?
Y es. The w id th of land to he taken
for h ig h w a y p urposes is n ot controlled
so lely b y th e op inions of the civ il en gi­
neers as to th e footage required. W hile

(T u rn to page 28, please)


E R E is a salute to a m an w ho de­
serves all th e nice th in g s th a t can
possibly be said about him —Wm. B.
H ughes, th e v eteran S ecretary of th e
N ebraska B ankers A ssociation.
“B illy”, as everyone know s him ,
doesn’t know a th in g about th is trib ­
ute. If he did, he m ig h t try to stop
the N o r t h w e s t e r n B a n k e r presses,
for h e ’s the kind of an executive w ho
keeps alw ays in th e background, p u t­
tin g th e A ssociation above self.
“B illy” has a service record th a t few
A ssociation S ecretaries can m atch—
th irty -six y ears of constant, faithful
service to th e N ebraska B ankers Asso­
ciation. He, and his fa th e r before him ,
are th e only tw o C learinghouse M an­
agers Om aha has ever had. H is father,
W. H. S. H ughes, served from 1884 to
1901 and “B illy” since 1901.
D ecem ber happens to be his an n i­


v ersary m onth as m anager of th e
Omaha Clearing H ouse and th a t is the
occasion of this tribute.
“B illy” began as S ecretary of th e
N ebraska B ankers A ssociation in 1905
and u n d er his careful, faith fu l su p er­
vision th e A ssociation has enjoyed a
m ost constructive era. He is a tireless
w orker, he is a diplom at p ar excel­
lence, and he is beloved and respected
by th e en tire A ssociation m em bership.
“B illy” H ughes has done such a
g ran d job for N ebraska B ankers th a t
th ey are a p t to tak e him as a m a tte r
of course and for granted. T h at in
itself is a g reat com plim ent, b u t recog­
nition of th is th irty -six th a n n iv ersary
is also m erited an d tim ely.
H is thousands of friends everyw here
w ill join in this trib u te to th e v eteran
S ecretary of th e N ebraska B ankers
N orthw estern B anker
Federal Reserve Bank of St. Louis

D ecem ber 19hl


There Must Be No Speculative

BoOtH In Farm Real
PROGRAM to p re v e n t a specu­
lative boom in farm real estate
w as outlined to a group of lead­
ing farm m ortgage lenders of th e
co u n try recen tly by A. G. Black, gov­
ern o r of th e F a rm Credit A d m in istra­
tion. More th a n a h u n d re d in s titu ­
tions and in su ran ce com panies w ritin g
about 75 p er cent of th e m ortgage
loans m ade to farm ers w ere re p re ­
sented at th e conference called by
G overnor Black.
“E xperience tells us th a t a m ajor
w ar in evitably b rin g s about violent
price fluctuations,” G overnor Black
w arn ed th e conference in his opening
message. He drew upon th e record
of th e last land boom to rem in d his
listen ers th a t th ese fluctuations in
tu rn “create serious problem s in th e
field of ag ricu ltu ral cred it.”
“W e w ould be derelict in our resp o n ­
sibility,” G overnor Black told th e lend­
ers, “if we did not endeavor to a n tic i­
pate those problem s and tak e m ea­
sures to soften th e ir effect before it is
too late.” A dherence to a program of
lending on th e basis of norm al farm
values, discouragem ent of speculative
expansion in farm p la n t as w ell as
production and th e encouragem ent of
th e m ore rap id redu ctio n of debt out
of c u rre n t incom es w ere am ong th e
m easures urged by G overnor Black as
necessary in dealing w ith p resen t
problem s.
Calling upon th e farm m ortgage
lenders to cooperate w ith g o vernm ent
agencies in aiding farm ers to m ake
needed shifts to m eet p erm an en t
changes in production req u irem en ts,
G overnor Black u rged m ortgage lend­
ers to adopt five objectives as “an
anchor to th e w in d w ard in th e p re se n t
critical situ a tio n ”:


1. M ake norm al values th e p rim a ry
factor in all appraisals in m aking
farm real estate loans. Our ex­
perience show s th is to be th e
soundest basis of ap p raisal in a
situ atio n such as th e one now con­
fro n tin g us.
2. Im press upon p re se n t bo rro w ers
th e w isdom of m ak in g use of h ig h ­
er incom es now available for th e
rep ay m en t of existing debts. T his

A . G . Black, G o ve rn o r of
the Farm C re d it A dm inis­
urges mortgage
lenders to adopt five ob­
jectives as an anchor to
windward in the present
critical situation. "So fa r
increased sales activity in
land has been sound. Let
us keep it that w a y."

w ill be a factor in p rev en tin g in ­
3. E ncourage farm ers to build re ­
serves out of h igher incom es to ­
day to bridge th e period w hen in ­
comes are not so high, by offering
inducem ents to borrow ers to ac­
cum ulate funds to m eet fu tu re
paym ents. W e should seek by
th is and o th er m eans to discour­
age speculative expansion of th e
fixed farm plant.
4. E v ery effort m u st be m ade to
avoid fostering speculative in ­
creases in production, y et a t the
sam e tim e careful consideration
should be given to th e needs for
extending short-term credit to
farm ers for m aking sound and
n ecessary shifts and increases in
production to m eet th e needs of
th e Food for Defense P rogram .
5. E ncourage th e sound use of credit
to foster a b e tte r balanced ag ri­
culture, yielding a h igher and a
m ore secure stan d ard of living to
th e fam ily type of farm .
“If lenders to ag ricu ltu re u n d ertak e
to follow such a program ,” G overnor
B lack contended, “we w ill accom plish
m uch tow ard in su rin g a sound fu tu re
n o t only for ag ricu ltu re b u t for our
lending in stitu tio n s as w ell.” Closer
cooperation betw een farm ers and all
agencies seeking to serve ag ricu ltu re
w as called for by G overnor Black.
“D uring th is critical period,” th e gov­
e rn o r declared, “closer cooperation on
th e p a rt of all these agencies, govern­

m ental or private, is essential if the
goal of a b e tte r balanced ag ricu ltu re is
to be p erm an en tly m aintained.”
P o inting to “overlending and bor­
row ing on speculative v alu es” as
prim e factors in pushing th e farm
m ortgage debt of th e co u n try to a peak
of 11 billions, G overnor Black declared:
“Once m ore we appear to be headed
tow ard a period in w hich most, if not
all, of these factors m ay again be
b ro u g h t into play. U nless we keep
our heads, we are likely to find our­
selves in th e sam e situ atio n we w ere
in follow ing th e last period of read ­
ju stm en t from a w ar to a peacetim e
economy. It is th e in ten tio n of the
F arm C redit A d m inistration to keep
th e ir heads and come out w ith the few ­
est headaches possible. To th a t end
we are re ite ra tin g today our intention
to continue to m ake real estate loans
p rim arily on th e basis of th e pro­
ductive capacity of th e farm in term s
of norm al values. F u rth erm o re, we
are urg in g our p resen t borrow ers to
m ake as rapid paym ents as th ey can
out of c u rre n t incom es.”
G overnor Black pointed to an in ­
crease in in d u strial production of 56
p er cent on Ju ly 1st over tw o years
ago, a rise of 11 p er cent in w holesale
com m odity prices so far in 1941 and
a gain of 14 p er cent in cash income
from farm m ark etin g s d uring th e first
h alf of 1941 as evidence of th e presen t
trend. “A su stained rise in com m odity
prices is not long in finding expression
in h ig h er prices for land and heavier
debts on farm s,” G overnor Black de­
clared, “and it is this phenom enon of
heavy increases in th e b u rd en of farm
debt th a t w e are p rim arily in terested
in today.”
H ow ever, th ere are a n um ber of
factors at w ork w hich G overnor Black
said tended to forestall speculative in ­
creases in land values on a n y th in g like
th e scale of 20 years ago.
Chief am ong these w ere th e farm ­
ers them selves and th e leaders of the
n ational farm organizations. “E very
farm er I have talked to,” said Gov­
ern o r Black, “is positive in th e opinion
th a t he does not w a n t to see th e land
boom of th e last w ar repeated. T here
N orthw estern B anker
Federal Reserve Bank of St. Louis

D ecem ber 1941


W o u ld You

S(tddl(! Your

Bank W ith Loans Like These?
N T H E S E days w h en b an k s are p u r­
p o rted to have m ore m oney th a n
th e y know w h a t to do w ith, every
b a n k e r is on th e lookout for good
places to loan m oney. The follow ing
re p o rt on a loan w as sen t in to us by
Mel W. E llis, su p e rin te n d e n t of th e
Iow a B anking D epartm ent. Mr. E llis
prefaces th e loan re p o rt by saying:
“A com petent judge of livestock v a l­
ues is a w o rth w h ile p erson on th e staff
of any b an k m aking loans on th a t type
of security, and periodic inspections
keep th e loan com m ittee inform ed re ­
g ard in g th e values beh in d th e assets.
A n Iow a b an k w hich has such an o u t­
side m an has sen t us th e follow ing re ­
p o rt to indicate th e th o ro u g h n ess w ith
w hich it equips its cred it files for the
benefit of its officers and inform ation
of th e exam in ers of th e b a n k .”
S eptem ber 15, 1941.

besides. F av o rite m ount of
w ealth y local (com petitive)
My value th is a s s e t ................$ 125


To th e L oan Com m ittee:
In response to y o u r assig n m en t I
visited today “The Speedw ay F a rm s ”
(o therw ise know as “M cC arthy’s R ac­
ing and Saddle S tables” ) an d subm it
m y re p o rt on th e fo u rteen head of
horses included in y o u r m ortgage.
T hough I adm it I am versed in c u rre n t
m a rk e t values of cattle, hogs, sheep
and o th er farm p ersonal pro p erty , th e
ap p raisal of fast horses such as these
is a b it out of m y line, b u t I have e sti­
m ated th e value of th ese assets to th e
best of m y ability.
As you know , w ealth y local eques­
tria n s patro n ize th ese stables, so in
season th e earn in g s from h o u rly re n t­
als m ay indicate g re a te r values th a n
I have set out, th o u g h I have tak en
into consideration th a t gross re n ta ls
are som ew hat affected by th e h ay and
fodder these nags eat on idle days as
w ell as on busy ones.

No. 5. H ot Sue—Sorrel m are, 5
y ears old, usually ridden by
b a n k e r’s wife. She (the m are)
is gentle and has lots of personality. She has th ree gaits,
start, stum ble and fall.
My value th is a s s e t ................$ 125
No. 6. Golden Melody — F o u r
y ear old m are, and a favorite
w ith th e choir leader of our
church. O w ner says she is
v ery speedy b u t she has never
been clocked. H er sire m ay be
Man-of-War. She w ill be raced
in 1942.
My value th is asset .
.. . $ 125

She lias three gaits— start,
stumble, and fall
five gaits and to have w on first
place in his (w hatever) class
once. He is said to have been
show n in all states w est of
My value th is asset ................ $ 300
No. 2. Steam boat — E leven year
old bay gelding. R ecord 1:59
on m ile track. B orn in New
York and raced on every track
in th e Union. He is w o rn out
and his w ind is bad b u t he w on
th e slow race at th e C ounty
F a ir th is year.
My value th is asset


No. 3. Lone Spot—E ig h t y ear old
m are; choice of th e classiest
eq u estrian in tow n. This m are
earns a lot of m oney for h er
ow ner and highly valued by
My value this asset
. . . . $ 125

No. 7. Fleetw ood — Seven year
old so rrel gelding; saddle and
jum ping horse — jum ps w hen
th e flies are bad. R idden by
w ealthy local lum berm an.
My value th is asset
$ 100
No. 8. T eabiscuit—Two y ear old
bay filly. V ery prom ising an i­
mal. I don’t know h er gaits or
speed b u t hope for th e best.
My value th is asset
. . . . . $ 50
All th e above are p astu re bred.
Six d raft horses from 1 to 7 y ears
$ 600
T otal

. ..



No. 1. Black B eauty—F ive y ear
old stallion, presu m ed to have

No. 4. C hestnut girl. Nine year
old m are w ith foal by Black
B eauty. Five-gaited and lam e

I have not attem p ted to ascribe any
value to M cC arthy’s going business for
some p leasant Sundays it is going good
and on rain y days it isn ’t. Y our com­
m ittee w ill probably w ish to add
enough for th a t to at least equal th e
face of th e M cC arthy line in th e bank.
Above values are presen ted w ith o u t
T. L. H arley, F a rm M anager.

is a m ore co nservative a ttitu d e am ong
farm ers gen erally on th e subject of
land values. T oday th e em phasis, as
fa r as farm ers are concerned, is on
g ettin g a decent sta n d a rd of living out
of th e land—to ea rn from it a fair
living.” A n o th er im p o rta n t factor is
th e fact th a t a m ajo r po rtio n of th e

farm m ortgage debt has been re w rit­
ten in recent y ears on m uch longer
term s, about 40 p er cent of it being in
th e hands of th e federal land banks
and F ed eral F a rm M ortgage C orpora­
“N either agriculture, nor th e lend­
ers to ag riculture, can afford an o th er

period of overlending and speculation,
w ith th e accom panying economic m al­
ad ju stm ents, w hich followed th e last
W orld W ar,” G overnor Black declared.
“We m u st do ev ery th in g we can to
p re v e n t a rep etitio n of th is as w e once
m ore are called upon to m ake th e shift
(T u rn to page 29, please)
N orthw estern B anker
Federal Reserve Bank of St. Louis

D ecem ber 1941







V iews

By Ralph Wn Moorhead
iow a boy c o n t i n u e s
to m ake good. R odney P. Lien,
form er b a n k e r a t W aterloo, M ason
City, and Rudd, has ju s t been m ade
Vice P re sid e n t an d C om ptroller of th e
Cleveland T ru s t Com pany, one of th e
larg est b anks in th e U nited States.
R odney has resigned as S u p erin ten d ­
ent of B anks in Ohio to accept his new
position at age 40.
Des M oines B an k ers say th a t th e
c ity ’s m oney pulse is being su b sta n ­
tially quickened by th e im m ense p ay ­
roll a t th e Des M oines O rdnance p lan t
now u n d e r co n stru ctio n ju s t n o rth of
Des Moines. T he w eekly payroll is
now w ell in excess of one-half m illion
Eighty-five h u n d re d em ­
ployees are now w o rk in g on th e
project, and Des M oines m erch an ts
re p o rt th a t th e y are spending th e ir
m oney regardless of Mr. M orgenthau’s
vario u s plans to siphon a given portion
of our new w ealth into savings.



The good old p atrio tic sp irit of th e
w este rn hem isp h ere seem s to have
overtak en Cuba. A t least P resid en t
B atista, C uban president, w ho came
up th ro u g h th e ra n k s from an a rm y
serg ean t to head of th e C uban gov ern ­
m en t (w ith th e aid of one good revo­
lution) has declared th a t Cuba w ould
en ter a w a r ag ain st G erm any w hen
and if th e U nited S tates tak es th a t
last long step.
Om aha h as visions of becom ing a
g reat air ce n te r according to P resid en t
A lvin Joh nson of th e Live Stock N a­
tional B ank of Omaha. The big M ar­
tin B om ber P la n t so u th of Om aha a t
F o rt Crook w ill soon be in operation,
and O m aha is ex periencing quite a
boom as a re s u lt of th is project. Mr.
Joh n so n says th a t from m an y contacts
w ith Glen M artin, O m aha is assu red
th a t w hen th e w a r is over, th is p la n t
w ill be a p e rm a n e n t th in g for th e p ro ­
ductio n of big tra n sp o rt, freight, ex­
press, and passen g er planes. Mr. M ar­
tin believes th a t th e w a r w ill advance
aviation at least a q u a rte r of a cen­
tu ry , and th a t A m erica w ill really
tak e to th e air w hen peace comes once
N orthw estern B anker
Federal Reserve Bank of St. Louis

D ecem ber 19kl

Edw ard W . W arner, P resid en t of the
City N ational B ank of Clinton, Iowa,
in ad dition to m any b anking duties
also goes in for Boy Scout w ork. He
w as recently honored by being elected
p resid en t of th e Boy Scouts of A m er­
ica for the M esquakie A rea Council
w hich includes Clinton and Jackson
Counties. Follow ing his election, a
b an q u et w as held in Clinton a t w hich
th e honored g uest w as an old friend
of Mr. W arner, W alter W. Head, P re s­
id en t of th e N ational Council of Boy
Scouts of Am erica. Mr. H ead is wellknow n th ro u g h o u t A m erican banking
circles and is presid en t of th e G eneral
A m erican Life In su ran ce Com pany of
St. Louis.

A continued increase in th e volum e
of b an k loans for th e financing of de­
fense orders is rep o rted in a new su r­
vey by th e A m erican B an kers A sso ­
ciation. I t discloses th a t 376 banks in
146 cities had $1,765,000,000 of defense
loans ou tstan d in g on Septem ber 30.
T his is an increase of $460,000,000 over
Ju n e 30. Seventy-tw o p er cent of th e
com m itm ents w ere m ade w ith o u t as­
signm ents of con tract and only 28
p er cent of th e defense loan tra n sa c ­
tions req u ired assignm ents.
T he rem odeling of th e C ontinental
N ational Bank of L incoln, N ebraska,
is n earin g com pletion, and b an k offi­
cers are hopeful th a t it w ill be en ­
tire ly finished around C hristm as tim e.
T h eir new banking hom e w ill be one
of th e m ost b eautiful and m odern in
th e e n tire country. Am ong th e m any
stream lin ed featu res is th e big open
w indow display. As Vice P resid en t
Ed B eck er points out, w hy can ’t a
b an k tak e advantage of w indow dis­
play ad v ertisin g ju s t like a d ep art­
m en t store? Proceeding on th is th e ­
ory, th e C ontinental N ational officers
are p lan n in g some v ery u n u su al w in ­
dow displays, although th is p a rtic u ­
la r ty p e of b an k advertisin g is com­
p arativ ely new. B ankers w ho are
p lan n in g to inspect th e new b an king
hom e around th e first of th e y e a r have
a real tre a t in store for them .
T he Ice C arnival fe atu rin g Sonja
H em e’s 1942 H ollyw ood Ice Revue,

w hich last m onth held its prem ier
show ing for one w eek in Omaha, was
enjoyed by m any N ebraska and Iowa
B ankers. It w as staged a t th e AkSar-Ben Coliseum and as usual, Omaha
ban k ers figure pro m in en tly in th e fes­
tival. W . B. M illard, Jr., Vice P resi­
dent of th e Om aha N ational B ank is
this year K ing of th e Ak-Sar-Ben. The
Omaha banks not only had boxes re ­
served for th e festival, b u t th ey like­
w ise assisted th e ir m any correspond­
e n t banks in p rocuring tickets. The
perform ances w ere sell outs and outof-town b an k ers appreciated th is serv ­
ice very m uch. The revue w as gor­
geous, being headed by th e one and
only Sonja. T he costum es alone w ere
rep orted to have cost $70,000 w hich
p u t the show on a big m oney basis.
The en tire Des M oines R otary Club
m ade a special v isit last m onth to the
Om aha R o tary Club, and w ere also
e n tertain ed as guests at th e Hollywood
Ice Revue on a T h u rsd ay night. The
Iow ans w ent to Om aha in a special
train . A featu re of th e ir v isit th ere
w as th e noon luncheon w ith the
Omaha Club at w hich Omaha Rotarian s p u t on a hum orous sk it entitled
“R otary H eaven”. R ay L. R idge, Vice
P resid en t of th e Om aha N ational
Bank, took th e leading role as Saint
P eter. T he Des M oines delegation
headed by P resid en t George A. Peck
w as greeted by A rthur B. Dunbar,
Omaha in su ran ce m an acting as in te r­
city com m ittee chairm an.
B anks and in su ran ce com panies w ill
be in terested in a new type of finan­
cial control in conquered Norw ay,
w hich has ju s t been announced by the
Q uisling P a rty according to a propa­
ganda release from th e R oyal N or­
w egian g o v ern m en t’s press ag en t’s
rep resen tativ e in th e U nited States.
The Q uisling p a rty has announced it
w ill appoint one m em ber of its p arty
to th e B oard of D irectors of every
ban k and insu ran ce com pany in N or­
way. T his new d irector w ill have
FU L L au th o rity in each ban k or in ­
surance com pany in all m atters p er­
tain in g to personnel.
The Q uisling p a rty concedes th a t
th e proposed action w ill undoubtedly
re su lt in a panic am ong depositors,
b u t it w as fu rth e r explained th a t since
th e banks and in su ran ce com panies
have an “excess” cash balance of a
billion k ro n ar, such a panic “would
only be for th e good”.

He: “I w ish I h ad a nickel for
every g irl I’ve kissed.”
She: “W h at w ould you do? B uy a
pack of gum ?”


F o r A ll
N eed s


N orthw estern Banker
Federal Reserve Bank of St. Louis

D ecem ber 19M


How Vour Bank Can


From Financing Farm Auction Sales
AVE you h eard th e ch an t of th e
auctio n eer at a recen t farm au c­
tion? H ave you listened closely
to his in tro d u cto ry rem arks? H ave
you heard him s ta rt off his sale som e­
th ing like this: “Step th is w ay, ladies
and gentlem en, and w e’ll get sta rte d
on th is auction sale. As you know ,
this sale is being held today for a com ­
plete sell-out of all th e farm m ach in ­
ery, grain, hay, cows, horses, and
sheep, m aking up all of th e personal
p ro p e rty belonging to y o u r neighbor,
Mr. Iv an Amble. The A uburndale
State B ank is clerking th e sale. You
know th e term s b u t to clear up any
questions, I shall re p e a t them : Sum s
u n d e r $10 are cash. Over th a t am ount,
ju st one q u a rte r dow n in cash, and the
balance for 3 p er cent for six m onths
tim e. All you need is th e 25 p er cent
cash tow ards y o u r to tal pu rch ase and
th e balance th e A uburndale State
B ank w ill c a rry for you. No questions
asked of you. No signers required.
T hey w ill tak e any o n e’s note for th e
balance of th e ir purchase. You pay
your one q u a rte r dow n and th e b ank
w ill settle w ith Mr. Am ble for th e
o ther th re e q u a rte rs of y o u r purchase.
Rem em ber: All item s m u st be settled
for today, and no p ro p erty can be re ­
m oved u n til settled for. P ay for y o u r
sm all item s as you buy them . H ave
y o u r change read y and give it to one
of th e clerks. W e’ve a lot of th in g s
to sell h ere today so le t’s get sta rte d
rig h t away. H ere we have . . .”
H ave you been allow ing y o u r au c­
tioneers to get up and m ake a sta te ­
m en t th a t you w ould tak e an y o n e’s
note for th e balance of th re e q u a rte rs
of his p u rchases at y o u r sales? H ave
you stated th a t you w ould ask no
questions or for no additional signers
on notes?
W e do ju st th a t and have found th a t
it w orks out successfully.
To give you a clear explanation of
how we can do th is le t’s go back to th e
tim e w hen Mr. Am ble first w alked into
the b an k and asked us if w e w ould
handle his farm auction for him . One
of th e u su al questions th e farm ers
ask is: “W h at w ill you charge m e to
handle m y sale?” Our rep ly is th a t
“W e’d be glad to handle y o u r sale for
you, Mr. A m ble.” T hen we go on to


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

D ecem ber 1941

By C . M. A M M A N
Assistant Cashier
Auburndale State Bank
Auburndale, Wisconsin

C. M. A M M A N

explain our m ethod of tak in g care of
all th e details of his sale, from s ta rt
to finish; and w hen it is over h and him
a check for th e total am ount due him ,
less our charges. No red tape; no
delay in settlem ent; no notes for him
to carry; b u t cash for his p ro p erty
th e n ig h t th e sale is over. W e take
care of all th e advertising; have the
sale bills posted in th e v ario u s'p laces
in th e te rrito ry w here th ey w ill be
seen th e m ost; have “sp o t” radio ad ­
v ertisem en ts m ade for his sale; pay
for having th e cows tested for B ang’s
disease; pay for th e auctioneer of his
choice, guiding him in th e selection of
one of th e b e tte r m en b u t leaving th e
final decision re st in his power; clerk
th e sale; take all notes offered by an y ­
one w ho can pay th e one q u a rte r down
in cash, on all purchased item s over
$10; and m ake a com plete re p o rt of
all item s sold, and w ritte n so he can
read it and u n d erstan d how we a rriv e
at his cash settlem ent. Our charges,

of course, are fixed so th a t we can
save him considerable m oney over
w h at th e sales finance com panies in
th is te rrito ry w ould charge him for
conducting his sale along the same
You probably are w ondering ju st
how we can do th is and w h at rates
we charge for handling th e auctions.
Our rates v ary w ith th e size of the
sale ran g in g from 8 p er cent for a
sm all sale dow n to 5 p er cent of the
total am ount of a big sale, for taking
charge of all details of th e auction and
paying all th e expense.
W h at does it cost th e b ank to ru n
a sale of th is type? W e first check
over the fa rm e r’s personal property.
N ext we get in touch w ith th e auc­
tioneer th e farm er has selected and
arran g e to pay th e auctioneer selected
a flat fee of 2 per cent of th e sale for
his services, if th e sale is to be a large
one, or a little m ore if it is to be a
sm all sale. T hen we call the v eteri­
n a ry and have him go out to th e farm
and te st all th e cattle for B ang’s dis­
ease and pay his bill for his services.
N ext we have large sized 20-inch by
32-inch bills m ade up on stiff card­
board stock, nu m b erin g aro u n d a h u n ­
dred and fifty. These we post in all
the business places in th e local com­
m unity, and su rro u n d in g tow ns. We
ru n a sm all ad in th e local papers in
th e farm classified auction colum ns
and th e day before th e sale ru n a
q u a rte r page ad in tw o or th ree of the
local papers, giving it w ide publicity.
Our “sp o t” radio broadcasts are p ut
on the air for th e w eek preceding the
sale. All of w hich m akes our ad ver­
tising bill cost betw een $25 and $40,
depending on th e size of th e sale.
Should th e sale ru n $3,000 th e total
costs w ould be in th e neighborhood of
$100. We w ould charge 6 per cent for
handling th is sale, w hich w ould leave
us $80 for our sh are of th e sale after
all expenses w ere paid. T he larger
th e sale th e m ore m oney we m ake for
the cost is increased from th is point
on only for th e au ctio n eer’s fees.
H ave you w ondered how m uch
finance paper we can secure out of a
$3,000 sale? T his am ount w ill v ary
w ith th e te rrito ry b u t on an average,
$500 in notes w ould be th e top figure.

M ost of th is w ould be yielding us th e
m axim um ra te of in te re st allow able
by th e law s of th is state. Our ex p eri­
ence w ith th is ty p e of finance paper
has been excellent. W e w atch th a t th e
paym ents are m ade as th e note calls
for, an d w e have y e t to repossess any
of th e p ro p e rty sold on th e sales.
Should we have to do so in th e futu re,
we w ould do it w ith o u t h esitation, for
w ith one q u a rte r of th e c u rre n t value
paid dow n on any item , we do n o t feel
th a t we w ould have m uch difficulty in
listin g th e p ro p e rty on our n ex t auc­
tion sale selling it for m ore th a n we
had ag ain st it. Our records for col­
lections has been exceedingly good,
w ith one exception, in m ore th a n th re e
years of financing sales. A stra n g e r
paid his one q u a rte r dow n on th e p u r­
chase price of tw o cows. W e took his
note and a pu rch ase m oney ch attel
m ortgage calling for six equal m onthly
paym ents. T he follow ing w eek he
sold th e cows and “skip p ed ” th e coun­
try . W e have been u nable to locate
him . W e have, how ever, located th e
cows th ro u g h th e ir ear tag num bers.
A t th e tim e of th is w ritin g , th e note is
in th e h an d s of our a tto rn e y s for col­
lection. W e expect to have a sm all
loss on th is tran sactio n . R em em ber,
though, th a t our n e t profit on h andling
th is one sale w h ere th e cows w ere sold
w ould m ore th a n pay for th e am o u n t
of th e note should w e lose it all—w hich
we feel w ill not now hap p en since we
have traced th e cows. T his w as th e
u n u su a l case, w hich ra re ly hap p en s to
an in su red m em ber bank. Our direc­
to rs still feel satisfied w ith th e farm
auction sale results.
One of o u r talk in g points for selling
th e farm ers on th e idea th a t th e b an k
should handle th e ir sales is th a t th e
fa rm e r feels m ore free about buying a t
a b an k auction sale for he know s th e
banker; know s th a t he w ill be tre a te d
fair; know s th a t th e good farm er w ho
desires cred it at th e sale can get it at
reg u la r b an k ra te s and n o t th e a d v e r­
tised finance ra te of 3 p er cent for th e
six m o n th ly paym ents. The farm ers
like to come into th e b an k an d m ake
th e ir paym ents, for it saves th em th e
m oney order fees and postage. Should
th ey get into difficulties such as sick­
ness or accident and find th e y can ’t
m eet a p ay m en t on tim e, th e y know
th e y w ill n o t be charged a stiff finance
ra te for th e collection, b u t th e usual
econom ical b an k charges.
T he sales finance com panies sold th e
farm ers th e idea th a t a financed auc­
tion sale w h ere anyone can buy w ith ­
out th e full p u rch ase price or bankable
credit, w ill b rin g m ore m oney to him
in th e gross am o u n t of his sale, so in
re a lity th e fa rm e r w ho h as his p e r­
sonal p ro p e rty sale financed w ill have

The Service D epartm ents of
this Bank—
Investment Advisory
are all under the personal
direction of officers who have
had long experience each in his
particular field.
Meeting the varied needs of our
Correspondent Banks is our
first consideration.
. . . THE . . .



O R G A N IZ E D 1803

Capital, Surplus and Undivided Profits
$ 45 , 000,000
Member of Federal Deposit Insurance Corporation

N orthw estern Banker
Federal Reserve Bank of St. Louis

D ecem ber 19bl


W hat does

W estern Mutual s

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EXTRA SERVICE that Western Mutual's trained field
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You, too, will find that EXTRA SERVICE means extra
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Fire and Auto Policies
Standard Policy Forms


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F ir e I n s u r a n c e C o.
9th an d Grand

D es M oines, Iow a

"Over a Third of a Century of Safety and Service With Savings”

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

D ecem ber 1941

m ore m oney in th e end th a n if he ra n
a strictly cash sale and took only b ank­
able notes, w hich he w ould have to
carry him self and collect. F rom our
own experiences we have found th a t
this th eo ry actually w orks out in prac­
tice. T h at is an o th er one of the rea­
sons w hy w e have gone into financing
farm auction sales locally.
These farm financed sales rem ind
us of a few y ears back w hen all the
b ankers w ith few exceptions looked
on car finance pap er as a poor place
to in v est th e ir m oney. We believe
th a t in tim e to come th e banks in the
sm aller com m unities w ill all be doing
w h at today th e sales finance com­
panies as w ell as a few of th e banks
are doing in financing farm auctions.
The b an k ers w ill again save m oney
for th e ir custom ers by th e ir low er
charges and b e tte r service.
F o r th e p ast th ree y ears our bank
has financed farm sales on th is plan.
W e take on as m any sales as w e can
conveniently handle in our territo ry ,
w ith o u t adding additional help. We
have been ru n n in g about th irty sales
each year, and believe th is y ear we
w ill top th e dollar volum e of previous
years because of good financial condi­
tions am ong th e farm ers.
Do we have a con tract w ith the
farm ers for handling th e ir sales? Yes,
in m ost cases, for it elim inates anyone
else from com ing to th e farm er and
taking th e sale aw ay from us. This
happened once and we find th a t the
m oral effect of signing a co ntract for
th e handling of th e sale seem s to be
enough to elim inate any chance of
losing a sale th ro u g h th is cause.
W hen we first discovered th a t the
sales finance com panies w ere begin­
ning to take farm auctions aw ay from
us, it w as th e n we decided to finance
sales ourselves.
We use some of th e ir sales ideas,
b ut we revised th e ir m ethods to fit our
needs and practices. W e consistently
advertise, “W e can save you up to 40
p er cent on y o u r auction sale.” T hat
ph rase or one w ith a sim ilar th ought
appears in all our ad v ertisin g m atter,
such as new spaper ads, calendars,
statem en t of condition reports, on our
farm auction posters, our radio “spot”
ads, as w ell as in our slides for our
local movies.
You b an k ers u sually know if a farm ­
er is th in k in g about an auction long
before th e salesm en for th e finance
com panies h ear of it th ro u g h th e stock
b uyer or o th er source, w hom th ey pay
for telling th em of a prospect th a t
th ey m ay sign up for a financed farm
auction. The farm er w ho has th e auc­
tion doesn’t like it w hen he finds out
th a t som eone has u su ally been paid
(T u rn to page 30, please)

Sell A ccident Coverage —

Make More Money

N OCTOBER 13, 1922, Mr. DreyBy R. C . Larson
fuss, an ag en t in Savannah,
Field Supervisor
Georgia, sold Dr. R. B. H arris,
Aetna Casualty & Surety Company
also of S avannah, an accident policy
Hartford, Conn.
w ith $20,000 p rin cip al sum and $100 a
w eek indem nity. F ive y ears later on
Ju n e 8, 1927, Mr. D reyfuss sold Dr.
H a rris an additional policy providing
$15,000 prin cip al sum and $50 w eekly
indem nity. T hree m onths la te r on Sep­
tem b er 13, 1927, Dr. H arris, in reach ­
ing for a bottle of bichloride of m e r­
cury, o v e rtu rn e d it, spilling it in his
eyes, re su ltin g in th e p e rm a n e n t loss
of his sight. D uring th e fo u rteen y ears
since th en , Dr. H a rris has received
$600 every four w eeks u n d er his acci­
d e n t policy and th e to tal has now
reached $104,000 and th e re is still a
reserv e on th is policy of $49,000.
On D ecem ber 22, 1910, a Chicago
ag en t sold Jam es M. Dibb of th a t city
an accident policy providing $5,000
p rin cip al sum and $25 w eekly in d em ­
nity. On F e b ru a ry 8, 1913, ju s t one
y e a r before th e first W orld W ar begau,
Mr. Dibb fell dow n his basem en t stairs
suffering a basal fra c tu re of th e skull.
E v e ry eig h t w eeks since th e n Mr.
Dibb has received a check for $200 and
R. C. L A R SO N
is still receiving it. Mr. Dibb has re ­
ceived a to tal of over $36,000 d u rin g
th e tw enty-eight y ears of his disability both of th e agents on these tw o poli­
and h as outlived:
cies m ust have experienced.
T he ag en t w ho w ro te th e b u si­ T here is ju st one form of insurance
w ritte n by com panies today in w hich
2. T he u n d e rw rite r w ho hand led it. th e com pany’s m axim um liability is
Two p h ysicians w ho tre a te d him not predeterm ined, and th a t is acci­
den t insurance. W hen you sell a m an
follow ing his accident.
accident policy issued by m ost com­
T hree of th e claim m en w ho have
handled his case d u rin g th is period. panies today you can tell him honestly
T hese are ju s t tw o victim s of acci­ th a t w h eth er his claim is for $5 or
d en ts and you m ig h t n a tu ra lly say, $100,000 your com pany is not only able
b u t glad to pay th e claim, and th is is
w hy single th ese out for atten tio n ?
H e re ’s w h y —ask y o u rself th e question th e line w hich we are asking you to ­
—if Dr. H a rris or Mr. Dibb h ad been day to do a b etter job w ith. It h ard ly
one of m y close p ersonal friends and seem s necessary to devote this tim e to
cu stom ers w ould he have h ad an ac­ persuading you to w rite a line w hich
cident policy w hen he needed it as a is so im p o rtan t—b u t it is a fact th a t
re su lt of m y efforts? T he sad th o u g h t m any of you have not m ade th e m ost
is, I am afraid, th a t m any of you w ould of yo u r opportunities w ith th is line.
W h at w ould you th in k of a business
have to confess th a t every tim e you
th o u g h t about Dr. H a rris or Mr. Dibb m an in your tow n w ho paid no a tte n ­
you w ould have been prick ed by an tio n to an item in his business w hich
u n easy conscience ra th e r th a n of h a v ­ for th e in d u stry as a w hole produced
m ore th a n 20 p er cent of its income?
ing th e feeling of satisfaction w hich


How about you then? C asualty p rem i­
um s in 1940, $1,210,931,940. A ccident
and h ealth prem ium s in 1940, $253,910,572.
A lm ost every successful
agency has a backlog of th is business
-—probably because th e volum e of this
line indicates aggressive salesm indedness, w hich is a h ealth y sign in build­
ing casualty business.
Some agents say th e business is com­
plicated. T h at is not a good excuse.
Only th e know ledge of th ree things is
necessary. F irst, a risk m u st be classi­
fied—th e stan d ard m anual does this
for you. Second, a policy form m ust
be selected to fit th e assured, w hich
should not be com plicated because al­
though accident policies differ th ey are
constructed of th e sam e building m a­
terials as follows:
1. D eath benefit.
2. D ism em berm ent.
3. W eekly indem nity.
4. M edical expense.
E v ery accident policy is constructed
of these m aterials, some policies in ­
cluding all of them and o thers m erely
leaving out some. So, if you have not
sold accident insurance it is n o t be­
1. People w on’t buy if asked.
2. T h at you have not th e rig h t prod­
If we adm it these tw o th in g s—it is
up to us and th e th in g th a t is lacking
is a plan.
L et me suggest a plan: P rospecting
is th e m ost essential p a rt of any long
range production plan and prospects
for accident insurance are available
from m any sources:
(a) A ccident in surance is w ritte n
by m ost com panies for th e age groups
ran g in g from 14 to 64.
(b) Your files of p resen t custom ers
w ill reveal m any prospects.
(c) Go to th e classified telephone
d irectory and select prospects by occu­
pational groups.
Some preapproach w ork is neces­
sary—otherw ise you m ay find y o u r­
self em barrassed. W e suggest:
1. T h at you know th e approxim ate
age and occupation of your prospect.
2. T h at you know his approxim ate
w eekly income.
N orthw estern Banker
Federal Reserve Bank of St. Louis

D ecem ber i9M

T h a t you know enough about his life in d u stry ,” Mr. A rnold said, “th a t
physical condition to know w h e th e r or we feel we should m ake this announce­
not he w ill be eligible.— T H E EN D . m en t in our change in plans.
“In the p ast few m o nths,” he said,
“th e re has been a v ast increase in th e
PI a ns Changed
n u m b er of group m eetings connected
P lan s for a new w in te r schedule of
w ith national defense, foreign assist­
policyholders m eetings, and renew al
ance, and o th er phases of th e presen t
of th e program satisfacto rily tested
em ergency. M any additional dem ands
last spring, have been suspended due
are being m ade on th e tim e, energy,
to th e p re se n t d istu rb ed g eneral s itu ­
and a tten tio n of th e average citizen—
ation, it is announced by O. J. A rnold,
w ho is also the average insurance
presid en t of N o rth w estern N ational
Life In su ran ce Com pany of M inne­
“Most of these additional group ef­
forts, and additional dem ands, expect
“T here has been so m uch in te re st
and deserve a ‘p rio rity ra tin g ’ in the
show n in th e idea, especially by the
schedules of good A m ericans. The
g re a t problem today is to find th e tim e

Breaking a
New Field

Northwestern National Life has set
its plow into a new field. Its agents
are now paid primarily for serv­
ice, not for sales— a fact of prime
interest to buyers of life insurance.
Your NWNL agent’s income no
longer depends primarily on the
new insurance you buy from him.
It depends rather upon the amount
of that insurance you keep in force.
You will keep in force only that
insurance which meets your needs
efficiently and economically, and
continues to meet them, regardless
of your changing circumstances.
Your NWNL agent’s income thus
depends directly upon his capacity
for sound, intelligent, low-pressure
selling, and sound, intelligent serv­
ice after the sale.
The depression of the thirties
proved that American life com­
panies had perfected a technique
for safeguarding policyholders’
funds. These companies are now
working toward a similarly suc­
cessful technique of agency service
to policyholders. Northwestern
National Life’s system of paying
its agents according to “how well
they serve” rather than according
to “how much they sell” is a con­
tribution of fundamental impor­
tance to this end.

N a t i o n a l LIFE
O. J . A rnold,
P resid en t

I s e c u RÎ t y ] J



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

M in n eapolis,
M in n eso ta


D ecem ber Î 9Ï Î

and energy to devote to these extra
activities, w ith w hich our own m eet­
ings w ould have to compete.
“T herefore it seem s only sensible to
postpone for th e p resen t our projected
w in ter series of policyholder m eetings,
beneficial as th is idea has proven it­
self to be.
“At th e initial series of m eetings,
held last spring in several sm aller
m id-w estern cities, policyholders m et
officers and executives of th e ir com­
pany, talked over personal problem s
w ith them , and show ed an intelligent
and friendly in terest not only in the
w orkings of th e ir ow n insurance poli­
cies, b u t also in th e position of life
insurance and its policyholders in the
n a tio n ’s economic stru ctu re.
com pany, too, gath ered m uch practical
inform ation from th ese m eetings—
p articu larly from th e question-andansw er sessions—w hich is proving of
g reat value in shaping new policy­
holder literatu re.

Mutual Convention
More th a n 450 Iow ans, w ho sell two
billion dollars w o rth of insurance a
year, reg istered in Des Moines for the
an n u al two-day convention of the
Iowa A ssociation of M utual In surance
The convention’s first general ses-

Fidelity & Surety Bonds
Blanket Bonds
Burglary & Forgery



S. E V A N S

sion w as called to order by P resid en t
H arold S. E vans of Des Moines.
Out of the 140 m em ber associations
in 85 counties, 115 w ere represented.
One m em ber group, th e Iow a M utual
Tornado In su ran ce A ssociation, w as
host at a d in n er a t w hich H a rry P.
Cooper, Indianapolis, Indiana, secre­
ta ry of th e N ational A ssociation of
M utual In su ran ce Companies, spoke.

Company. He w as p resid en t of th e
com pany u n til he re tire d last Decem­
A t th e tim e of his death he w as a
director of th e C entral N ational B ank
& T ru st Company. He had been a
director of th e C ham ber of Commerce
and th e Iow a S tate T raveling M en’s
Association. F ro m 1920 to 1935 he w as
vice p resident of th e N ational Associa­
tion of M utual C asualty Companies.

Minnesota Commercial M e n ’s Makes
Building Alterations

St. Paul F. & M. Dinner Dance

Above, le ft, is th e new doorw ay arran g em en t follow ing alte ra tio n s made on the
building of the M innesota Comm ercial M e n ’s A ssociation. P ic tu re d on the rig h t
is the fro n t of th e b uilding as it appears follow ing rem odeling.

EC EN TLY th e M innesota C om m er­
cial M en’s A ssociation, of M inne­
apolis, rem odeled and im proved th e ir
hom e office building located at 2550
P illsb u ry Avenue.
A lterations to the building, w hich is
ow ned by th e com pany, consisted of
refacing th e e n tire fro n t w ith light
colored K asota stone, w ith th e en tire
building painted an ivory cream to
m atch. T he fro n t en tran ce to th e
building has been relocated, to elim ­
in ate any outside steps, and a new
com m odious lobby is finished off in
blond w h ite oak.
T errazzo flooring and T ennessee
m arble are used in dressing up th e
lobby. All ceilings th ro u g h o u t have
been given accoustical tre a tm e n t for
sound-proofing and fluorescent lig h t­
ing is installed in all th e offices. This
gives to M inneapolis a fine additional
hom e office building for a stro n g and
fastgrow ing M innesota com pany.
The officers of th e com pany are
O. A. B rachlow , president; U. A. Hamrum , vice president; A rth u r Dengler,
tre a su re r, and P aul Clem ent, secre­
ta ry and g eneral m anager.



John A . Gunn Dies
Jo h n A. Gunn, 80, chairm an of the
board of the E m ployers M utual Cas­
u a lty Com pany of Des Moines, died at
his hom e last m onth after a y e a r’s ill­
Mr. G unn came to Des Moines in
1895 w hen he w as general agent in
Iow a for th e J. I. Case Company. In
1907 he organized and w as president
of th e old Gould Balance Valve Com­
pany, Kellogg, Iowa.
Mr. G unn w as p resident of th e Iowa
M anufacturers A ssociation in 1911, and
th a t year becam e one of the founders
of th e E m ployers M utual C asualty

Over and over again

. . .

Record breaking n ew b u sin ess written b y A llied
M utual agen ts in turn su g g ests record breaking
claim paym en ts a s w ell.
E ach month finds A llied M utual p ay in g more and
m ore claim s. Our fair, considerate claim service
h e lp s to build friends for our a g e n c y force and for
insurance gen erally.



Harold S. Evans, President
Hubbell Bldg.

Des Moines, Iowa

N orthw estern Banker
Federal Reserve Bank of St. Louis


"A llied Mutual P a y s "

An Agency Company — Assets Over $4,000,000

• Automobile Insurance
• Workmen’s Compensation
• General Liability
• Elevator Insurance
• Plate Glass Insurance

F o u r h u n d red fifty m em bers of the
St. P aul F ire & M arine Insu ran ce
Com pany E m ployees’ Club g athered
to g eth er on the evening of N ovem ber
18 at one of th e m ost colorful affairs
of th e organization in y ears—a dinnerdance a t th e St. P aul Hotel. The eve­
n in g ’s festivities began w ith a din n er
in the C ontinental room am id table
decorations in keeping w ith T h an k s­
Follow ing dinner, and after the
tables w ere rem oved, the special en ­
te rta in m e n t arran g ed for th e evening
w as staged by th e St. P aul F ire &
M arine chorus of sixty m atched voices,
directed by Jam es Allen, w ell know n
local civic opera singer, giving a re n ­
dition of several well chosen songs
w hich earned a trem endous round of
appreciative applause.
The su rp rise featu re of th e evening
w as th e show ing of several “flickere tte s”—reels of old, hair-raising and
side-splitting com edies—w hich created
hilarious enjoym ent for everyone
p resen t—especially those w ho could
h a rk back to th e days w hen those
“th rille rs ” w ere th e rave of th e coun­
try. In betw een th e various reels, a

D ecem ber 19bl

b arb er shop trio recreated to nsorial
vocalists of by-gone days—and re ­
ceived upro ario u s acclaim for th e ir
ch aracteristic appearance and favorite
tun es selected.
The e n te rta in m e n t finished, an o r­
ch estra u sh ered in dancing for th e
H eld each year, th e a n n u al dinnerdance of th e F ire & M arine E m ployees’
Club is looked fo rw ard to by th e en­
tire personnel. T his y e a r’s program
w as a rran g ed by an able com m ittee
headed by H ow ard Clang.

Dan H. Otis Dies
Dan H. Otis, directo r of th e A gri­
cu ltu ral Com m ission of th e A m erican

B ankers A ssociation, died recently in
M inneapolis.
Mr. Otis, w ho w as identified w ith
ag ricu ltu ral w ork th ro u g h o u t his life­
tim e, had been director of the Asso­
ciation’s A g ricultural Commission for
eighteen years. E arly in his career he
w as professor of dairy h u sb an d ry and
anim al h u sb an d ry a t K ansas State
College. F o r four y ears he w as editor
of th e K ansas Farm er. S ubsequent­
ly he becam e assistan t dean of the
college of ag ricu ltu re and professor
of farm m anagem ent in th e d ep art­
m en t of ag ricu ltu ral econom ics of the
U n iv ersity of W isconsin.
D uring W orld W ar n u m ber one, he
w as identified w ith reh ab ilitatio n

w ork of th e A. E. F. in France. Upon
his re tu rn from F rance, he joined the
W isconsin B ankers A ssociation as di­
recto r of its B anker-F arm er E x ­
change. He cam e to th e A m erican
B anker A ssociation in F eb ru ary , 1923.

Allen W ales Finishing
Excellent Business Year
W. J. P ickering, presid en t of the
A llen W ales A dding M achine Corpo­
ratio n of New York, rep o rts th a t th e ir
com pany is finishing the best y ear in
its history.
D uring th e last six years, th e com­
pany has m ade a 600 per cent increase
in sales w ith its 100 different new
A llen W ales Models w hich are now
being d istrib u ted in 400 different cities
th ro u g h o u t th e U nited States.
T his rem arkable record has been
due first, to the m an u factu rin g of a
very fine and satisfactory m achine and

is engaged primarily in facilitating wholesale distribution
and retail sales of the following products of General
Motors Corporation and its w o rld w id e affiliates:





automobiles; FRIGIDAIRE appliances for refrigeration and
air conditioning; delco lighting, power and heating
equipment; GMC trucks; BEDFORD, v a u x h a l l and other
foreign made automotive vehicles.
The business consists of investments in self'liquidating
credits, widely diversified as to region and enterprise,
capital employed being in excess of $80,000,000.
In obtaining short term accommodation, g m a c issues
one standard form of note. This obligation it offers to
banks and institutions, in convenient maturities
and denominations at current discount rates.




are available, in limited amounts,
upon request.


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


D ecem ber 19M



second, to th e excellent service w hich
has been given to the buyers of Allen
W ales M achines after th ey have been
In a recen t survey conducted am ong
some of th e dealers as to the business
outlook in th e ir te rrito rie s for 1942,
the v ast m ajority of them replied th a t
“th e outlook for 1942 is v ery encour­
In this, sam e survey, dealers w ere
asked if th ey felt “th a t yo u r own
sales w ill be b etter in 1942 th a n th ey
w ere in 1941” and th e m ajo rity of
them replied yes to th e question, w ith
some dealers saying th a t th ey ex­
pected th e ir sales to be “from 50 to
75 per cent b e tte r”.
B anks w hich have p urchased Allen
W ales A dding M achines have found
th em m ost satisfactory and have been
able to post th e ir item s and tran sact
th e ir daily business w ith speed, accu­
racy and dependability.


The Month’s Market Maneuvers
Too m uch h a p ­
pened in Novemb e r — so m a n y
t h i n g s , i n fact
t h a t th e m ark ets
c o u l d n o t digest
or ap p raise them .
T he am en d m en t of
th e N e u tra lity Act,
t h e s i n k i n g of
A m erican b o a t s ,
th e coal strikes, th e th re a te n e d ra il­
road strik es, strik e s in dozens of o th er
in d u stries, A m erican troops in D utch
G uiana, A m erican-Japanese ten sio n —all served to cloud th e dom estic pic­
ture. A nd th e situ atio n abroad w as
not helpful w ith fu rth e r R ussian re ­
verses, th e rem oval of G eneral Weygand as Pro-Consul in N o rth Africa,
th e B ritish drive into L ibya—th e re ­
sults of w hich are still u n k n o w n a t
th is w riting.
D espite all of these things, th e prices
of stocks stood up p re tty w ell—b u t
G overnm ent bonds yielded some
ground. W e are w ritin g th e article
early th is m o n th —today is Tuesday,
N ovem ber 25—b u t our dead line is an
early one since Iow a has a R epublican
T h an k sg iv in g day and date. In cluding
today, th e re are still five days of tra d ­
ing activ ity in N ovem ber’s m a rk e ts—
allow ance m u st be m ade for any
changes w hich m ay occur to affect
w h a t we say today.
So far there have b een sev en teen
days of trad ing th is m onth— on eigh t
days there w ere g a in s and on nine,
lo sses. P ractically even — and the a v ­
erages h ave changed but little. On
October 31 th e D ow -Jones average
for in du strial stock s w as 117.82—y e s­
terday th e m arket closed at 117.30—
n egligib le change for the period. T his
d espite the fact th at there w ere som e
days in th e period w h en prices fluctu­
ated sharply. The w orst day in the
m onth w as the tw e lfth —follow in g the
A rm istice D ay holiday. T he D oavJon es average broke 2.01 points and
the volu m e of stock s traded exceeded
one m illion —the on ly tim e during the
m onth w h en th at volu m e w as re­
corded. T here A\?as apparently no one
cause for the break th at day—hut Avar
neAArs, h igh er taxes, and general m ar­
k et p essim ism p lus som e liquidation
found th e m arket too Aveak to handle
the offerings.
On the tw elfth , the D ow -Jones a v er­
ages Avere 115.44—th e Ioav point of the
m onth, and on ly slig h tly above the
May 1 loAAr of th is year. In fact, on ly
about four p oints above the Ioav h it

Prepared for

The Northwestern Banker

By Jam es H . C larke
Assistant Vice President
American National Bank & Trust Co.

early in the su m m er of 1940 at the
tim e of D unkirk and the fall of France.
The stock m arket has not been a Arery
profitable place in the la st tAvo years.

B u t strangely enough the E nglish
m a rk et— the stock exchange in London
— is acting well. The L ondon m a rket
hit its low point on June 26,1940, w h en
the industrial stock average com piled
by the L ondon Financial T im es hit
61.1. Today the average is around 104
— in fact, it w e n t up three points last
w e e k — so th a t the recovery fro m the
low point is about 70 per cent. Of
course, the decline in the pound ster­
ling— especially in the outside or “boot­
leg” m a rket— can account for som e of
this. B u t by and large, the E n glish in ­
vesto r since he already kn o w s p re tty
w ell w h a t w ill happen to him tax-wise,
seem s w illing to buy equities, w hile
the A m erican, still in the early stages
of trem endous uncertainties, prefers
th e side lines.
T h at there has been a lot of selling of
stocks in our m a rkets to establish tax
losses is a certainty. W h eth er there is
still a great deal to come is n o t predict­
able— but m o st of it should be over by
the m iddle of D ecem ber— it w ill be in ­
teresting th en to see w h a t the m a rket
can do.
The m ark et for G overnm ent bonds
w as som ew hat easier in N ovem ber—
as we m entioned earlier. T he notes
w ere relatively w eaker th a n bonds, as
sh o rt term rates show ed some signs
of stiffening—a n a tu ra l developm ent
in tim es such as these. The longest
notes—th e T reasu ries due in M arch,
1946—w ere bid 100.12 on October 31,
dropped to 99.27 on N ovem ber 16, and
recovered to 99.31 yesterday. The
longest bonds—th e 2 y2s of 72/67, w ere
103.13 on October 31, dropped to 102.29,
and th e n recovered to 103.2 as of th is
m orning. T here w as no new G overn­
m ent financing du rin g the m onth b ut
about a billion and a half w ill come
into th e m ark et soon—possibly before
we go to press. In October, expendi­
tu re s of th e T reasu ry exceeded tw o
billion dollars—defense expenditures

alone being $1,527,000,000. F igures
w hich we have for th e first th ree
w eeks of N ovem ber show about the
sam e rate of spending. It is easy to
see w hy taxes and m ore taxes, new
financing and m ore new financing
face us as we go into 1942.
M u n ic ip a l b o n d s Avere firm d u rin g
th e m o n th — th e ir ta x e x e m p t fe a tu r e s
b e c o m in g e v e n m o re a ttr a c tiv e in
m a n y a c c o u n ts as th e d a y s p a ss. H ig h
gra d e c o r p o r a te s h e ld u p w e ll b u t s e c ­
on d g ra d e r a ils aa ere s o m e w h a t Aveaker
in th e fa ce o f th e th r e a te n e d strik e.
A str ik e , o f c o u r se , w h ic h n o on e b e ­
lie v e s w ill a c tu a lly o ccu r— b u t som ew h a t d is tu r b in g n o n e th e le s s. T h is
d e c isio n a lso w ill p ro b a b ly be m ade
b e fo re aac go to p r e ss— if th e o r ig in a l
fin d in g s o f th e P r e s id e n t’s fa ct fin d in g
b oard are u p h e ld it aauII be b u llis h fo r
th e tim e b e in g fo r r a il s e c u r itie s. If
th e ro a d s are fo rced to giAre la rg er
Avages— AATe m a y be a g a in fa c in g bad
ra il m a r k e ts.

There are som e bond offerings dur­
ing the m o n th w h ich are w o rth m e n ­
tioning. Central Illinois Public S erv­
ice Co. brought out $38,000,000 of first
m ortgage 3%s of 1971 at 107, w hile
Superior Oil sold $15,000,000 of 3 V zS of
1956 at 103. This m orning’s W all Street
Journal indicates that there are bonds
of both these issues around at the
offering prices—in short, the deals
w ere a bit slow. The sam e appears
true of an offering of $15,000,000 of
debentures of H iram W alker. On the
other hand, W estinghouse sold $20,000,000 debentures 21As of 1951 at 101 Vz and
there is a bid in the m a rket of 1021A.
Today—Tuesday, N ovem ber 25th—Pa­
cific Gas & E lectric is selling $25,000,000 of 3’s of 1971 at 105 and tom orrow
Philadelphia E lectric Com pany w ill of­
fe r $20,000,000 of first m ortgage 2%s of
1971 on a 2.55 basis.
L ast w eek for th e first tim e in eleven
years, carloadings w ere h ig h er th a n
th e sim ilar w eek of 1930. T his w as th e
re su lt of u nprecedented in d u strial
production th ro u g h o u t th e co u n try —
production developed th ro u g h our de­
fense program —-which m ay or m ay not
be good. B ut regardless of th e rea­
sons, we shall see a n u m ber of indus­
tries su rpassing all previous records
in 1942—b u t un fo rtu n ately , m any
sm all businesses seem likely to fare
badly. T h at th e econom y of th e coun­
try w ill be greatly d istorted in th e
com ing y ear is a certain ty —and th e
m ark ets face new problem s th a t w ill
have to be appraised from day to day.
N orthw estern Banker
Federal Reserve Bank of St. Louis

D ecem ber 19f l


To Sell U. S. Savings Bonds

(C ontinued from page 13)
w as given to Mr. Sim m ons w hen he
w as a child. A fter com pressing a
spring, a coin is placed on th e b arrel
of th e gun and w ith som ew hat of a
cross-bow effect is shot betw een th e
paw s of th e bear and drops down
som ew here into th e b e a r’s innards, of
course to be recovered later and placed
on deposit in a savings account. W hile
all th is shooting is going on, release
of th e sp rin g causes th e h u n te r to bob
his head and th e bear to open its
m outh.

Sidney Maestre, p resid en t of th e M ississippi V alley T ru st Company of St.
Louis, left, show ing Gale F. Johnson, field directo r of the D efense Savings staff
of the T reasury D epartm ent, the m in iatu re of one of the 50 billboards w hich the
b an k has placed in the St. Louis area to prom ote the sale of U nited S tates S av­
ings bonds.
M ississippi V alley T ru st Company, according to M aestre, is conducting an
‘ ‘ all out ’ ’ sales cam paign fo r S avings Bonds, w hich includes the use of new s­
paper, billboard, poster and radio ad v ertisin g . The prom otion w as sta rte d in
O ctober and w ill continue through December.
Sale of U nited S tates S avings Bonds a t M ississippi V alley T ru st Company
have thus f a r averaged ap p roxim ately a half-m illion dollars per m onth, w ith an
expected increase now th a t ad v ertisin g is reaching the public through p ra c ­
tically all ad v ertisin g media.

P ictu red here also is a coin bank
from H aw aii, and an o th er b an k in th e
shape of an airplane, and a good one,
too. T he H aw aii b an k is a m in iatu re
of th e B ank of H aw aii, Ltd., Honolulu,
w ith of course a slot in th e roof
th ro u g h w hich to drop th e coins. The
airplane w as d istrib u ted at one tim e
by th e F letch er A m erican N ational
B ank of Indianapolis, know n now as
th e A m erican N ational Bank. The lit­
tle plane is m ost tru e to detail w ith its
ru b b er tires, w h irlin g propellor and
sm all m otor, and is m eant to be a
replica of th e S p irit of St. Louis. The
plane is called, how ever, according to
th e brass in scrip tio n on each side,
th e “S pirit of S aving”.
It w ould tak e m any pages to fully
describe th e Sim m ons collection of
coin banks—th ey m ust be seen to be
appreciated. W hen you are in Car­
lisle, look up Mr. Sim m ons and we
know he w ill be glad to show th e col­
lection to you.— T H E E N D .

(C ontinued from page 15)


great w eig h t is g iv en to the d eterm i­
nation of ex ecu tiv e g o vern in g bodies
con cern in g the n ecessity of tak in g pri­
vate property for public use, such de­
term in ation is not con clu sive and w hat
is a public u se is to he determ ined by
the courts.

Public Utility
In dustrial
R ailroad
M unicipal

A .C .A L L Y N

and c o m

p a n y

In corp orated

Snow w as atto rn e y for an estate in
Iowa. As such he m ade a claim against
it for ord in ary and ex trao rd in ary serv­
ices and testified fully in su p p o rt th e re ­
of w hen th e m a tte r came before the
court for allow ance. The ad m in istra­
to r called no w itnesses and offered no
testim ony. The court, nevertheless,
en tered a ju d g m en t dism issing the
claim. Could it do this?

100 W e s t M onroe S tr e e t. C h ic a g o
N e w Y ork
R e p r e s e n t a t iv e s :

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

M ilw a u k e e
W a te r lo o

D ecem ber Ì9M

O m aha
D e s M oin es

B o sto n
C edar R a p id s

No. A judgm ent d ism issin g a claim of
an attorney again st an estate for ordi­
nary and extraordinary serv ices w ill
not he su stained w here the attorney

testifies fu lly in support of h is claim
and the adm inistrator calls no w itn e ss­
es and offers no testim on y. The a llow ­
ance of attorn ey’s fees rests to a con­
siderable exten t on the d iscretion of
the trial court, but an order allow in g
or d isallow in g fees should be su p ­
ported by adequate evidence.

(C ontinued from page 17)
to a w ar tim e econom y,” th e governor
u rg ed his listeners.
G overnor B lack held such increases
in farm prices and in farm real estate
values as had so fa r ta k e n place to
be sound and a n ecessary corrective,
in m ost instances, to long continued
price disp arities in ag ricu ltu re. “W e
are all v itally in terested in safeg u ard ­
ing th e gains we have m ade and we
are m aking,” G overnor B lack declared,
“in th e direction of a b e tte r balanced
a g ric u ltu ra l economy. A m ore p ro s­
perous ag ricu ltu re is indicated by th e
fact th a t cash incom e from farm m a r­
ketin g s d u rin g th e first half of 1941
totaled 14 p er cent m ore th a n in th e
sam e period in 1940 and th a t farm in ­
come w as 36 p er cent h ig h er in Ju n e
th a n it w as th e sam e m o n th last year.
“W hile it is tru e th a t in some in ­
stances farm incom es have not ad­
vanced as fa st as costs, th e rise in
costs has not been so m arked. F o r
th e co u n try as a w hole farm prices
are risin g fa ste r th a n farm operatin g
costs and th is is likely to becom e m ore
general. F a rm w ages have risen fa st­
est am ong cost item s on th e farm . In
th e case of a good m an y o th er item s
advances have not been v ery ex ten ­

T hese h igher prices and increased
farm incom e are not an unw elcom e
sign in th e opinion of G overnor Black
a fte r y ears of depressed prices and
low land values. “B ut as th is increased
activ ity begins to m anifest itself,” he
pointed out, “we m ight w ell refresh
o u r m em ories w ith reg ard to w h at
happened in circum stances not unlike
these in th e past. We need to take
stock of th e experience acquired in
th e last tw o and a half decades during
w hich farm land values rose to an
all-tim e high and collapsed w ith in a
v ery sh o rt tim e to less th a n half th e ir

form er peak, b ringing d isaster to lend­
er and borrow er alike.
“As we move forw ard and experi­
ence increased pressu re for larg er
loans and m ore liberal appraisals, we
need to ch art our course carefully.
W e should approach the credit phase
of ag ricu ltu re m ore carefully th a n we
did d uring the last w ar period if seri­
ous difficulties are to be avoided. W h at
is equally im p o rtan t—if we take the
p roper precautions now and develop
sound plans in agriculture, we can
help m ake th e presen t situ atio n con­
trib u te to the p erm an en t well-being
of th e farm er and his family.




£ )£


C om m odity Brokers

N ew York Stock E xchange
and Other Principal Exchanges

G overnm ent — M unicipal
Corporation Bonds

Bond Departm ent
Minneapolis — Atlantic 8235

requires production and more production on farms as well
as in factories. More milk, cheese, poultry, eggs, and hogs. These
mean increased acreages of hay, legumes and pastures which may
require important shifts from other crops. Many farmers are producing
Food for Freedom and soundly financing its production through
local lending institutions which rediscount such loans with a Federal
intermediate credit bank. City dollars, invested in Federal intermediate
credit bank debentures by means of which such rediscounts are financed,
thereby go to work on the farm. City dollars, protected by more than
18 years of experience in lending by the Federal intermediate credit
banks, thus contribute to the strengthening of our national defense.















Further information regarding the Debentures may be obtained from
CHARLES R. D U N N , Fiscal Agent

31 N assau Street, N ew York, N . Y.

Northwestern Banker December 19hl
Federal Reserve Bank of St. Louis

“Such gains in farm incom e as th is
period is likely to produce should help
bring closer to realizatio n those goals
of b e tte r living for th e farm fam ily
and a m ore secure w ay of life on th e
land. It w ould be fa r b e tte r to see
im proved farm incom e go to w ard r e ­
ducing existing debts, and to provide
th e m eans for stabilizing th a t b e tte r
stan d ard of life, th a n to see it sy­
phoned off once m ore into w asteful
speculation. So fa r increased sales
activ ity in land has been sound. L et
us keep it th a t w ay.”— T H E EN D .

(C ontinued from page 22)
for telling th e sales finance com pany
th a t he w as talk in g about holding a
W hen you are first discussing th e
auction sale w ith a prospective farm ­
er, sell him on th e tru e idea th a t your
b an k can finance his sale and handle
th e details b e tte r th a n th e finance com­
panies. I t can be done, and if you
are w illing to fight for profitable busi­

ness it w ill be yours.
W ould we advise o th er banks in
general to go into th e financing of
farm auction sales? P roviding you
now reg u larly clerk farm sales, and
are w illing to m eet th e com petition by
giving the additional services th a t
financed sales require, we w ould th en
say, “You can ’t afford to stay out of
th e business if you expect to conduct
yo u r sh are of th e sales in th e near
The farm ers like th e plan of financed
auction sales, and th e idea is spreading
rapidly in o ther states. T here is good
m oney in farm auctions if you finance
them .

Conference Speaker

159 B A N K S

K. Du Vail, vice presid en t of the
City N ational B ank and T ru st Com­
pany of Chicago, spoke before the
U nd erw riters Conference of th e F ed­
eration of M utual F ire In su ran ce Com­
panies at th e Stevens H otel in Chi­
cago on Tuesday, N ovem ber 25. His
subject was, “Basic B usiness Condi­
tions—A F o recast for 1942.”

Bryant Elected
159 banks have been correspondents

C harles B ryant, presid en t of the
M orris P lan Bank, Des Moines, has

of C entral H anover for m ore than
50 years.
Such relationships m ust be satisfac­
tory, or they w ould not have endured
for over half a century.









Northwestern Banker December 19bi
Federal Reserve Bank of St. Louis



been elected as a m em ber of the ex­
ecutive com m ittee of th e M orris P lan
B ankers A ssociation. R ichard Stout,
W ashington, D. C., w as re-elected
Mr. B ry an t has been a vice presi­
dent of th e organization, and in 1939
w as also a m em ber of th e executive
com m ittee.


Quarter-Century Employes Honored
EN T R A L H an o v er B ank and T ru st
Com pany gave a d in n e r a t th e
H otel R oosevelt on N ovem ber 18 in
honor of em ployees, officers and tr u s ­
tees w ho have been connected w ith
th e in stitu tio n for tw enty-five years
or m ore. P lans for th e p e rm a n e n t o r­
ganization of a Q uarter-C entury Club
w ere adopted, and H e rb e rt T. Mag ru d er, a ssista n t vice president, w ho
has com pleted th irty -n in e y ears w ith
th e bank, w as elected p resid en t of
th e new organization.
W illiam S. Gray, Jr., p resid en t of th e
bank, p resen ted to each of th e 151
m em bers of th e club w ho are on th e
staff of th e b an k a t th e p resen t tim e
a $100 defense bond as a “diplom a”.
E x p ressin g th e b a n k ’s ap preciation
for th e ir loyalty over such a long
period of tim e, Mr. G ray declared,
“Such a record is a significant achieve­
m ent, and th e b an k w ishes to m ake
recognition of it in a significant w ay.”
Am ong th e 151 active m em bers of
th e club, tw enty-four have records of
m ore th a n fo rty y e a rs’ service. The
longest record of continuous service
is held by H en ry R. Carse, tru stee,
w ho joined th e staff of th e H anover
N ational B ank fifty-five y ears ago.
W alter G. Nelson, a ssista n t vice p resi­
dent, w ho holds th a t record am ong
p re se n t em ployees of th e bank, has
com pleted forty-nine y ears of service.
R etired m em bers of th e staff w ith a
service record of a q u arter-cen tu ry or
m ore are included as h o n o rary m em ­
bers, and seven teen atten d ed th e o r­
ganization dinner. George H. Stone
joined th e staff of th e C ontinental
B ank in 1876, w hich gives him th e




W illiam S. Gray, Jr., p resid en t of C entral
H anover B ank and T ru st Company (rig h t),
presenting first $100 defense bond to W al­
ter G. N elson, a ssista n t vice president, v e t­
eran of forty -n in e years ’ service w ith the

d istinction of having a connection
w ith C entral H anover w hich dates
back four years earlier th a n th a t of
his closest com petitor for th is honor.
F o rm al presen tatio n of th e club’s
insignia w as m ade by Mr. G ray to Mr.
Carse and Mr. Nelson, v eteran s of the
organization w ho atten d ed th e dinner.
E ach m em ber of th e club also received
the club insignia.
Seventeen em ployees and officers
w ho have ju s t th is y ear com pleted
th e ir tw enty-five y ears w ith C entral
H anover w ere th e subject of initiation
rite s for th e am usem ent of th e oldtim ers. E n te rta in m e n t included pi­
ano, accordion and g u ita r m usic and
group dancing.

Out-of-Town Banks
O u t-o f-to w n banks and bankers w ill find here
co m p le te b a n k in g fa c ilitie s fo r p ro m p t and

• N o w — you can have bank official
check forms w ith a tim e-an d-m oneysaving feature w h ich makes issuance
faster, easier, m ore accurate and safer!
D r a fts, C a sh ie r ’s an d T r ea su r er
Checks, M oney Orders, Trust D epart­
m ent and Expense Vouchers w ith the
B lue Streak B ind in g giv e you as m any
copies as you n e e d —all fro m a single
entry. You can insert these forms re­
peatedly in a typew riter for subsequent
entries because they are bound together.
T h en —instantly—you flick the bin ding
and carbon sheets from the com pleted
forms. N o error-b reed ing, tim e-c o n ­
su m in g copying. N o extra stub, check
register or receipt to fill o u t—the auto­
m atic copies serve these purposes per­
fectly. You cut p ostin g operations and
speed up service w ith resultin g econ­
om y, efficiency, and better customer
For g r e a te r sa fe ty , B lu e S treak
Checks and Vouchers are produced on
paper that has exclusive, alterationdefying features. Insurance guarantees
this protection.
Enjoy faster, m ore accurate and safer
disbursem ent procedure in all depart­
ments! Send for sam ple forms to fit
your needs.
T h e T o d d C o m p a n y , I n c ., R o c h e ste r, N . Y
P lea se sen d sam p les o f B lu e S trea k C h eck s a n d
V o u ch ers d esig n e d to m a k e o u r d is b u rs e m e n t
p ro c e d u re faste r, safer, m o re a c c u ra te , n e a te r.
B an k N a m e _____ ._____________________________
A d d ress______________________ _______________ _

econom ical handling o f accounts in Chicago. We
w ould appreciate the opportunity o f serving you.


it y


a t io n a l



2 0 8





( Member Federal Deposit Insurance Corporation)



C ity ---------------------------------State.________________
N .W .B .

t :j j
»A N Y , I

O F F I C E S I N A L L \ S r P R I N C I P A L CI T I ES
N orthw estern Banker
Federal Reserve Bank of St. Louis

1 2 -4 1

D ecem ber 19^1


Large Crowd at Opening
The opening of th e F a rm e rs & M er­
ch an ts State B an k ’s new b uilding at
L am berton last m onth at an open
house drew from 3,000' to 3,500 people
w ho cam e to offer congratu latio n s and
view th e new q u arters. The lobby w as

beautiful w ith num erous large bou­
quets of flowers sent by banks and
An item of u n u su al in te re st w as the
gallery of pictures of early day resi­
dents of this com m unity.
Ladies w ere given roses, m en cigars
and th e children candy. A booklet
p rep ared by the bank w as given to
grow nups. It show ed th e condition of
the b ank following reorganization and
a sta tem en t of th e condition following
th e last call statem ent. It also re ­
view ed early day h isto ry of th e com­
m u n ity and a brief sum m ary of L am ­
berto n today.

Cashier Dies
Lloyd P atterso n , 56, cashier of the
W o rthington State B ank died recently
of a h e a rt ailm ent.

Remodel Bank
M arble w orkm en from St. P aul are
engaged in rem odeling th e fixtures at
th e Peoples S tate B ank of Storden
and covering th e counters w ith m arble.
W hen com pleted, a new an d luxurious
in terio r w ill be given th e bank. More
room is given cusom ers by m oving
th e fixtures fa rth e r back from th e out­
side walls.

Veteran Banker Dies
F ra n k J. K ram er, long a St. Charles
business m an and presid en t of the
F irst N ational Bank, died suddenly
last m onth.

Study Group Formed
The F erg u s Falls S tudy Group of
th e A m erican In stitu te of B anking has
been organized by th e em ployes of the
F erg u s F alls N ational B ank and the
F irs t N ational Bank. T he purpose of
the organization is to m ake available
to b an k em ployes a specialized course
of tra in in g in various subjects in con­
nection w ith th e functions and opera­
tions of banks. At th e p resen t tim e
tw o classes are being conducted, the
m eetings being held in a stu d y room
at th e high school. N orm an A rveson
has been selected to in stru c t a class in
com m ercial law, w hich m eets each
Tuesday afternoon and has a m em ber­
ship of 15. H. E. Sw enson and O. U.
H abberstad w ill in stru c t a class in
b an k organization and practice w hich
m eets each W ednesday afternoon and
is com posed of 13 students.

U R C O U N T R Y has em barked on a program w hich marks
a difference in the life o f every citizen. Business is new ly
shaped, changing in all its aspects. In this stage, still transitional,
perhaps the greatest outside assistance w hich any private enter­
prise can render to industry is performed by a business-minded bank.
T he Am erican N ation al Bank considers it a privilege and a
duty to cooperate fully w ith Chicago business in m eetin g the
unusual conditions o f the present. T he same spirit actuates our
relationships w ith correspondent banks throughout the nation.
This w illingness to g o beyond mere routine is a factor o f increas­
in g im portance in inter-bank associations during these times.


Accepts New Position
R ay E. Schm ierer, form erly of Wessington Springs, South Dakota, has ac­
cepted a position as assistan t cashier
at th e F irs t N ational B ank of W inne­
Mr. Schm ierer fills th e vacancy cre­
ated at th e b an k by th e resignation of
Douglas W escott in th e spring.

Marries Former Schoolmate

l A ~ s A L i E S T R E E T f| AT W A S H I N G T O N _________________________________________

Member Federal Deposit ¿¡¡S

Insurance Corporation













Northwestern Banker December 1941
Federal Reserve Bank of St. Louis














O. G. Jones, p resid en t of th e Goodhue County N ational B ank of Red
W ing, and also p resident of th e Min­
nesota B ankers A ssociation, w as re ­
cently m arried in Des Moines, Iowa,
to Miss E d ith Lewis.
Miss Lew is w as a schoolm ate of Mr.
Jones in Dawson, M issouri, some tim e
ago, and she has been an in stru ctress
in th e schools of th a t tow n for a n u m ­
b er of years.

W ith him on th e trip are E. W. Jo h n ­
son, P o stm aster K. O. F in n ila and Dr.
J. D. Van V alkenburg. T hey w ill be
gone about tw o w eeks. Mr. C hristen­
son expects to com plete changes by
Ja n u a ry 1, 1942.
B. R uohoniem i is slated to be
presid en t and Carl V. L ind as cashier
of th e b an k at th e beginning of the
new year.

Red W ing

Installs New Furniture
T he E m p ire N ational B ank and
T ru st C om pany of St. P aul has in ­
stalled new fu rn itu re in th e ju n io r
officers’ q u arters. A featu re of each
executive’s desk is an oval-shaped
extension w hich affords custom ers an
individual surface for th e ir papers.
T otal footings of th e E m p ire N a­
tion al are n e a rly $10',000,000.

Elected Vice President
E lection of W illiam A. G ray of
A lbert Lea as a vice p resid en t and
directo r of th e City N ational B ank of
D u lu th has been announced by H e r­
m an M atzke, president, w ho said Mr.
G ray w ill m ove to D u lu th w ith Mrs.
G ray and th e ir 16-year-old son, Jam es,
about J a n u a ry 1st.
Mr. G ray w ill resig n his position in
A lbert Lea.
In th e b an k in g business for 30 years,
Mr. G ray h as had experience in both
th e in v estm en t and com m ercial fields
and for th e la st 12 y ears has been con­
nected w ith b an ks in Lincoln, N ebras­
ka, an d A lb ert Lea.


U nited States. M em bers’ accounts
have increased alm ost th ree and a half
m illion dollars in the last year, ac­
cording to Mr. L arsen, th e largest
grow th th e association has enjoyed
in any year du rin g its history.

Observe 85th Anniversary
The Root R iver State B ank of Chatfield observed its eighty-fifth an n i­
v ersary last m onth.
F ounded in 1856 by J. C. E aston, th e
b ank w as acquired in 1888 by G. H.
H aven, w hose son, G. A. H aven, is

Not Gambling on Inflation
Changes at Floodwood
P. H. C hristenson, presid en t of the
F irs t State B ank of Floodwood, is dis­
posing of his in terests in th e b ank
to S. B. Ruohoniem i, cashier, and Carl
V. Lind, a ssistan t cashier.
Mr. C hristenson has gone on an ex­
tended trip to Colorado, A rizona and
T exas to check over new locations.

It is evident th a t farm ers are not
gam bling on inflation.
Such w as the statem en t in M inne­
apolis recen tly of H. R. H om m edal,
p resid en t of th e U nion N ational B ank
of Rochester.
Mr. H om m edal and J. G. R obertson,
presid en t of th e R ushford State Bank,
gave th e ag ricu ltu re com m ittee of th e

Northwestern National Buys Prize W in ner

Savings Increase
H a rry M. Miller, secretary of th e
F irs t F ed eral Savings and L oan As­
sociation of St. Paul, states th a t th e
organization has enjoyed th e g re a te st
increase in savings in its h isto ry d u r­
ing th e p ast 12 m onths.



A sem i-annual dividend at th e ra te
of 3 p e r cent p er an n u m has been
declared by directors of th e T w in City
F ed eral Savings and L oan Association,
of M inneapolis, payable J a n u a ry 1, ac­
cording to an n o u n cem en t by Roy W.
L arsen, vice president. T his is th e
association’s th irty -eig h th consecutive
dividend. Since 1936 dividends have
contin u o u sly been a t th e ra te of th re e
p er cent p e r annum .
R esources of th e association now
exceed $15,350,000, th e association
being th e sev en th larg est F ed eral
savings and loan association in th e

T he N o rth w e s te rn N a tio n a l B a n k a n d T ru s t C om pany o f M in n e ap o lis p a id
C h arles C u n n in g h am of P ip e sto n e , M in n e so ta, $342.55 fo r h is p riz e -w in n in g
I le r f o r d y e a rlin g s te e r a t th e a u c tio n w hich closed th e a n n u a l M in n e so ta J u n io r
L iv e sto c k Show fo r 4-H Club M em bers a t S o u th S t. P a u l. T he show cam e to a
close w ith a re co rd a u c tio n sale a t w h ich le a d in g M in n e so ta b u sin e ss firm s b id
in th e p riz e a n im a ls w ith a ll pro ceed s go in g to th e y o u n g ste rs to p a y f o r college
tu itio n , f u r th e r club w o rk a n d o th e r m e rito rio u s purposes.
C h a rle s ’ s te e r
w e ig h ed 1,105 p o unds a n d w a s p a id fo r a t th e r a te o f 31 c en ts p e r pound.

Northwestern Banker
Federal Reserve Bank of St. Louis

December 194-1


M innesota State B a n k e rs’ A ssociation
th e ir views.
C om m enting on several recen t sm all
bank holdups in th e sta te both said
th is often occurs as C hristm as nears,
adding th a t th e best solution is to
keep v ery little cash in th e till.
F a rm e r B row n is doing p re tty well
•this year, w h a t w ith risin g prices on
th e p roducts he sells, b u t he isn ’t
lettin g th e m oney go to his head.
H e’s p aying his bills.
“R ising farm prices are m aking a
prosperous y ear for th e fa rm e r,” said


C. W. Spaulding, presid en t of th e
W aseca N ational Bank. “B ut farm ers
are not m aking th e m istake of W orld
w ar boom days by dissipating th e ir
funds. Most of them are liquidating
debts, w hich is a good th in g for th e ir
own and also for th e national econ­
om y.”

Will House OPM , O EM
D istrict offices of OPM and OEM
will be relocated in adjacent office
space in th e M idland B ank Building

in M inneapolis about Ja n u a ry 1st, it
w as learned recently.
Included are th e p rio rities and con­
tra c t d istrib u tio n division offices of
OPM, th e OEM inform ation office and
the train in g -w ith in -in d u stry branch of
OPM. All now are located in various
p a rts of R and Tower.
T his announcem ent sets at rest
ru m o rs th a t th e governm ent w as con­
sidering m oving th e offices out of
M inneapolis.

Retired Banker Dies
E d w ard G. Quamme, a p rom inent
figure in th e F ederal L and B ank move­
m ent and th e first presid en t of th e St.
P aul F ed eral L and Bank, died last
m onth at his hom e in M inneapolis.
He had been ill for some tim e.

Directors Re-elected
Re-election of tw o directors of the
F ed eral R eserve B ank of M inneapolis
w as announced last m onth by W alter
C. Coffey, ch airm an of th e board.
M em ber banks re-elected J. R. Mc­
k n ig h t, P ierre, S. D., as a class A
director, and J. E. O’Connell, Helena,
M ontana, as a class B director, each
to serve a three-year te rm beginning
Ja n u a ry 1, 1942. Mr. M cK night is p resi­
dent of P ierre N ational B ank and Mr.
O’Connell is presid en t of E ddy’s B ak­
eries, Inc., at H elena.

Duluth Banker Dead
Jo h n Roger W ells, 61 years old, resi­
dent of D uluth for 52 years, a teller
at th e F irs t & A m erican N ational B ank
for 40 years, died recen tly in a D uluth
hospital afte r a sh o rt illness.

Meet at Melrose

I MAGINE a freight train one hundred
and fifty miles long. T h a t’s the
approximate amount of freight mov­
ing into and out of Chicago daily!
Imagine passenger trains entering and
leaving a city at the rate of one every
m inute. T h a t’s w hat happens in
Chicago almost every day in the year!

The railroad industry has contrib­
uted greatly to Chicago’s progress.
It has helped to make possible the
growth of this hank and its services.
The Continental Illinois National
Bank and Trust Company is proud
of its association w ith forwardlooking industry in the Chicago area.

Continental Illinois

National Bank and Trust Compaña
O f


M em ber F ederal D e p o sit In su ra n ce C orporation

Northwestern Banker
Federal Reserve Bank of St. Louis

December 19^1

M em bers of th e C entral M innesota
C learing H ouse A ssociation m et at
H otel M elrose at M elrose last m onth
for a q u a rte rly business session. H enry
Schroeder of Long P rairie, president
of th e association, had charge of the
m eeting w ith H en ry Sauer of Paynesville as secretary.
Speaking at th e m eeting w ere Wm.
J. D uncan, secretary of th e S tate B ank­
ers A ssociation and B en DuBois of
Sauk Centre, secretary of th e Inde­
pendent B ankers Association.
J. D. E ck stro m of M inneapolis, w ho
w rites a forecast colum n for a Tw in
City daily, w as p resen t and related
fu tu re w orld events as he foresees
them . In charge of e n tertain m en t for
th e m eeting w ere: W alter Obey of
St. P aul and Dr. T artig and C harley
R ieger of M inneapolis.
Jo h n H. W elle of th e M elrose State
B ank had charge of local arran g em en ts
for th e gathering.


Twin C ity News

T H E M inneapolis C learing H ouse
A ssociation has recom m ended th a t
m em ber b anks m ake a service charge
on checks d raw n on o th er local b anks
and p resen ted for p ay m en t by non-cus­
tom ers. The charge w ould be five
cents for checks up to $10 and 10 cents
for those above $10.
A. .T. R oszak, a ssista n t cashier of
D rovers E x change S tate Bank, South
St. Paul, has been elected p resid en t of
the South St. P au l Com m ercial Club.
John B u rgess, vice p resid en t of
N o rth w e ste rn N ational B ank & T ru st
Com pany, has been reap p o in ted to th e
consum er cred it council of th e A m eri­
can B an k ers Association.
J. M. AVallace, Jr., is m an ag er and
W illiam B. W eb ster a ssista n t m anager

of th e St. P au l office of M errill Lynch,
Pierce, F e n n e r & Beane, w hich has
opened in new q u a rte rs a t W-1591
F irs t N ational B ank B uilding after
being in te m p o ra ry q u a rte rs since Sep­
tem b er 15th.
Mell AAT. H obart, p resid en t of M inis­
ters Life & C asualty Union, h as been
elected a d irecto r of M arquette N a­
tional B ank, according to anno u n ce­
m en t by R alph AV. M anuel, president.
Mr. H o b art has been a leader in th e
developm ent of th e in su ran ce com ­

Some 500 m em bers and frien d s of
M inneapolis chapter, A m erican In s ti­
tu te of B anking, a tten d ed th e a n n u al
“F u n F e s t” a t M arigold Ballroom ,
N ovem ber 18th.
All so rts of e n te rta in m e n t featu res
w ere offered, w hile th e re w ere prizes
for th e b est costum es.
D orothy A hern and A rthur L ee w ere
co-chairm en of th e event. Sub-com­
m ittee ch airm en w ere M argaret Rtim-

By James M. Sutherland
Special Correspon dent

ball, flowers; P hilip Schrader, stands
and booths; F ran k lin Sprecher, Jr.,
tickets; H arold G abrielson, prizes, and
Carl S tengl, games.
A rthur AV. Joh nson has been tra n s ­
ferred to th e H elena b ran ch of th e
M inneapolis F ederal R eserve Bank.
H e form erly w as m anager of th e RFC
custody d ep artm en t here.
P aul A\T. Loudon of Piper, Jaffray &
H opwood w ill take p a rt in a panel dis­
cussion du rin g th e an n u al convention
of th e In v estm en t B ankers A ssociation
of A m erica at Hollywood, Florida, No­
vem ber 30th to D ecem ber 5th.

More th a n 50 executive officers of
b an ks affiliated w ith N orth w estern
Bancorporation attended th e an n u al
fall m eeting of its cen tral operating
com m ittee.
P rin cip al subject of discussion w as
b an k operations u n d er th e defense p ro ­
gram . J. C. Thom son, Banco president,
presided at th e business sessions. S.
S. Ford, presid en t of N o rth w estern N a­
tional B ank & T ru st Company, M inne­
apolis, and o th er executives of the
b an k w ere hosts a t one social function;
E dgar I j. M attson and o ther executives
of M idland N ational B ank & T ru st
Company, M inneapolis, w ere hosts at

Bank President Dies
Jo h n H. W elle, 61, p resid en t of the
S tate B ank of M elrose and one of
C entral M innesota’s m ost pro m in en t
financiers for m any years, died sud­
denly at his hom e in M elrose last
m onth.

Bankers Entertain
4-H Leaders
A dult and ju n io r leaders of 17 4-H
clubs in Jackson County w ere honored
at the sixth ann u al recognition dinner,
sponsored by th e Jackson County
B an k ers’ Association, held at th e Com­
m u n ity H all at A lpha last m onth.
The ban q u et w as sponsored by th e
follow ing banks of Jackson County:
F irst N ational Bank, Jackson; F irst
N ational Bank, Lakefield; F irs t Na­
tional Bank, H eron Lake; F arm ers
S tate Bank, Lakefield; F irs t State
Bank, Okabena; Jackson S tate Bank,
Jackson; F a rm e rs and M erchants
Bank, Alpha.

F or

A ccounts In su red u p to $ 5 ,0 0 0

Convenient . . . Safe



(Current Rate)

_ St. Paul Federal
Savings & Loan Association
A xel A. Olson, Sec’y-Mgr.
4 East Fourth St., ST. PAUL, M INN.

Northwestern Banker
Federal Reserve Bank of St. Louis

December 1941





P rin cipal speaker at th e ban q u et w as
W illiam D uncan, Jr., secretary of th e
sta te association, w ho detailed pro­
visions of th e w age-hour and social
secu rity laws.
A bout 80 persons attended th e din­

sippi Valley C learing H ouse Associa­
P rincipal business of th e m eeting
w as consideration of proposed changes
in th e boundaries of th e association
territo ry .
The St. Croix-M ississippi Associa­
tion is an o u tgrow th of th e old W ash­
ington-R ural R am sey group, w hich
Propose Boundary Change
F o rty ban k ers of W ashington, ru ra l w as expanded a few y ears ago to in ­
R am sey and D akota counties m et at clude D akota County. It ap pears now
th e G rand Cafe in Stillw ater last how ever, th a t th e D akota C ounty
m onth for th e an n u al d in n er and busi­ group has m ore in com m on w ith th e
ness m eeting of th e St. Croix-Missis- Tw in Cities, Rice, Scott, and other
groups south of th e M innesota River.
Change in boundaries to release Da­
kota County to an o th er d istrict if de­
sired w as approved. T he change is
urged by W illiam D uncan, secretary
of th e M innesota B ankers Association.
It w as also decided to invite Chi­
sago County bankers, if th ey desire,
to join th e W ashington-R am sey group.
Chisago C ounty has w ith d raw n from
th e group to th e n orth, including
H inckley and Pine City territo ry , be­
cause it appeared th e re w as too little
in common.
Because of th e proposed changes,
Every d a y in m an y pastu res a n d feed lots,
election of officers w as postponed until
the Livestock N ation al Bank is e n g a g e d in
new boundaries are established, and
th e old officers w ill continue to serve.
the livestock b u sin ess. For w e coop erate
P resen t officers are H en ry Schoen
w ith lo ca l ban ks in all p h a se s of rural
of H astings, president; E lm er Johnson
ban k in g an d livestock finance.
of F o rest Lake, vice president, and
H. A. W arner, W hite Bear, secretary.
Our service follow s straight through to
Com m issioner A m undson of th e de­
the s a le of the livestock in the Sioux City
p a rtm e n t of b an king w as principal
speaker W ednesday night. He dis­
market an d our rem ittance to the custom er.
cussed new problem s before M inne­
From such ex p erien ce w e are co m p letely
sota ban k ers as re su lt of th e defense
e g u ip p ed to h a n d le all your Sioux City
effort, and o th er changes in th e n a­
tio n ’s financial stru ctu re.
correspondent items.

Clearing House Meeting

A d in n er m eeting of th e S outhern
M innesota C learing H ouse A ssociation
w as held recen tly at th e R ochester
C ountry Club.
R esults of th e election w ere as fol­
lows: J. F. Schneider of E lkton, p resi­
dent; C. W. W ilkins, A ustin, vice p resi­
dent; G. N. Reppe, G rand Meadow,
secretary -treasu rer, and H om er W ool­
dridge of Stew artville, a director. H old­
over directo rs are C. F. D abelstein
of R ochester and G. Skogsm ark of

Livestock Financing

Meet at Spring Grove
C. L. Fredricksen, President
M. A. W ilson , V ice President
W . G. N elson, A ssista n t V ice President
W . C. Schenk, Cashier
H. C. L induski, A ssista n t Cashier
C. L. Adams, A ssista n t Cashier
J. S. Haver, A ssista n t Cashier

C. R. M cK enna, Pres., Johnson B iscu it Co.
B. L. Sifford, A ttorney, Sifford & W adden
G. F. Silknitter, President, Sioux City
Stock Yards Company
C. L. Fredricksen, President
M. A. W ilson, V ice President
H. C. B osw ell, Secretary-T reasurer,
W estern C ontracting Corporation

“The Bank at the Yards”
Member Federal Deposit Insurance Corporation



S I O U X C I T Y , IO W A
Northwestern Banker
Federal Reserve Bank of St. Louis

December 19hl

The q u a rte rly m eeting of th e South­
eastern M innesota Clearing H ouse As­
sociation w as held at th e high school
in Spring Grove last m onth, w ith 50
The m ain sp eaker of th e evening
w as Jo h n Burgess, vice presid en t of
th e N o rth w estern N ational B ank and
T ru st Com pany of M inneapolis.
W illiam D uncan, Jr., secretary of
th e M innesota B ankers Association,
spoke briefly, paying respects to O. K.
Dade, w ho for m any y ears rep resen ted
th e Spring Grove d istrict in th e state
house of rep resen tativ es.
O. G. Jones of Red W ing, president
of th e state association, extended the
association’s greetings.
Jo h n A. F risvold of R ushford p re ­
sided at th e m eeting, and th e arran g e­
m en ts for th e m eeting w ere in the
hands of B. N. O nsgard and Charles
D ahling of S pring Grove.


W atertown

Banks Are Healthy
“The b an k s of South D akota are at
p re se n t enjoying th e h e a lth ie st condi­
tion in th e ir h isto ry ,” w as th e o bserva­
tio n of E rlin g F. Haugo, su p e rin te n d ­
en t of banks, a fte r re tu rn in g from a
to u r of th e state d u rin g w hich he ad­
dressed seven group m eetings of b a n k ­
ers in as m an y days.
“D uring a period of risin g prices,
th e re is a ten d en cy for people to spec­
u late,” th e state b an k chief said, “and
th e b an k s are expected to curb th is
tend en cy by refu sin g to lend for spec­
ulation. B ankers are custodians of
o th er people’s m oney and it is not
th e ir rig h t to in v est th e sam e in spec­
u lativ e schem es. T hey m u st be cer­
ta in th a t th e y alw ays receive a suffi­
cient m arg in of secu rity for every

Construction Contract
H en ry H ackett, R apid City con trac­
tor, w as aw arded th e gen eral co n tract
for th e co n stru ctio n of th e new R apid
City N ational B ank Building. A. E.
Dahl, executive vice p resid en t of th e
bank, rep o rted recently.
T he p lum bing and air conditioning
co n tract w as aw arded M ellgren P lu m b ­
ing Com pany of R apid City and th e
electrical co n tract to B au m g artn er
E lectric Shop of R apid City.
C onstruction of th e new tw o-story
building w ill be sta rte d im m ediately,
D ahl said.
O ther g eneral con stru ctio n bids w ere
offered by Jo n as C onstruction Com­
p an y of A berdeen, N o rth w estern E n g i­
n eerin g C om pany of R apid City and
th e H en ry C arlson C onstruction Com­
p an y of Sioux Falls. The R apid P lu m b ­
ing C om pany also bid for the plum bing
and air conditioning co n tract and th e
R apid E lectric C om pany for th e elec­
trical contract.
The b an k w ill occupy th e fro n t 90
feet of th e 140 by 50 foot building,
w hich w ill be of b rick construction
trim m ed w ith cast stone. T he re a r
50 feet w ill be for stores and th e en tire
second floor for re n ta l office space.


P lans for th e building w ere draw n
by A. M oorm an and Company, bank
arch itects of M inneapolis. R esident
architect is A. L. F o rre tte of Rapid

Open Branch Bank
The Com m ercial State B ank of W ag­
n er has leased th e Lakeside B ank
B uilding now ow ned by A lbert Travin ek of W agner. A b ranch b ank for
L ake A ndes w ill be housed in th e

Sponsor Credit School
An ag ricu ltu ral credit school, spon­
sored by th e South D akota State Col­
lege of A griculture and th e agricul­
tu ra l com m ittee of th e South D akota
B ankers A ssociation, will be held in
B rookings D ecem ber 8th and 9th.
P rogram for th e tw o days is as fol­
M onday, D ecem ber 8th
A. M.
8:00 R eg istratio n —P ugsley M emorial
U nion Building, College Campus.
9:30 A ddress of W elcom e—L ym an E.
Jackson, Brookings, P resident,
South D akota State College of
A griculture and M echanic A rts.
R esponse—L. T. M orris, W atertow n, P resident, South D akota
B ankers Association.
The A gricultural C redit S itua­
tion in South Dakota, G abriel
L u n d y, Brookings, Professor,
A g ricultural Economics.
M eeting th e C redit Needs of
F a rm e rs and R anchers — P anel
D iscussion led by R. M. DePuy,
Brookings, C hairm an, Com m it­
tee on A griculture. P articip an ts:
H. N. Thom son, Presho, Vice
P resident, South D akota B ank­
ers Association; W. E. Perrenoud, Sioux Falls, Cashier, F irs t
N ational Bank; A. W. Powell,
Sisseton, Vice P resid en t and
C ashier, R oberts County N ation­
al Bank; F re d Lewis, Lem m on,
P resident, F irs t N ational Bank;
F ra n k M essner, A urora, F a rm e r
and Feeder.

12:00 L uncheon — Pugsley M emorial
U nion Building.
The F a rm C redit A dm inistration
and Its Place in the Credit Field
—R. C. E ngberg, Omaha, D irec­
to r of R esearch, F a rm Credit Ad­
m inistration.
F actors Affecting F arm Incom e
—D iscussion by: A gronom y and
A nim al H u sbandry Staffs.
T our of L ivestock R esearch P ro j­
ects—Conducted by: E x p eri­
m ent S tation Staff.
P. M.
6:30 D inner—P ugsley M em orial Un­
ion Building.
Music—O rchestra.
M agician — Dr. W ard Miller,
Brookings, Professor of Botany.
T uesday, D ecem ber 9th
A. M.
9:30 Re-Discount Facilities of the
F ed eral R eserve B ank w ith R e­
spect to F a rm e r P ap er—H a rry I.
Ziemer, M inneapolis, Vice P resi­
den t and Cashier, M inneapolis
F ed eral R eserve Bank.
How to Get More Good A gricul­
tu ra l Loans — P anel D iscussion
led by Tom H arkison, Sioux
Falls, Vice P resident, N ational
B ank of South Dakota. P artici­
p an ts: L. H. Loken, W atertow n,
Vice P resident, F arm ers and
M erchants Bank; H. B. Lovald,
Philip, Cashier, F irs t N ational
Bank; A. G. Berger, Clear Lake,
Vice P resid en t and Cashier,
Deuel County N ational Bank;
W. H. Frei, W agner, P resident,
Com m ercial State B ank; J. R.
M cClenahan, S ecretary - T reas­
u rer, M itchell Production Credit
A g ricultural C redit D ata and
C redit F iles—L. L. Lillibridge,
B urke, P resident, B urke State
12:00' L uncheon — P ugsley M emorial
U nion Building.
C redit Problem s as Seen By
F arm ers and R anchers—L. Roy
Houck, G ettysburg, F a rm e r and
R ancher.
C redit Problem s as Seen By a
F a rm W ife—Mrs. Claude P a rk ­
er, A rlington.
W h at’s A head — A. G. Brown,
N ew York, M anager, A g ricu ltu r­
al C redit D epartm ent, A m erican
B ankers Association.
F ilm on Selinium Investigation
—E x p erim en t Station C hem istry
T our of New D airy M ilking U nit
—D airy H u sb andry Staff.
A djournm ent.
Northwestern Banker
Federal Reserve Bank of St. Louis

December 19^1



Group Meetings

T H E 1941 South D akota group m eet­
ings cam e to a close recently. A t­
tendance exceeded th a t of last y ear by
thirty-eight. Six h u n d red th irty -n in e
registered in 1940, w hile th is year
th ere w ere six h u n d red seventy-seven.
Seventy-nine p er cent of th e m em ber
banks w ere rep resen ted at th e m eet­
The follow ing speakers, P resid en t
M orris, S u p erin ten d en t of B anks
H augo and C. W illiam D uncan, w ere
on every program . A1 Mills, auditor
of th e M inneapolis F ederal R eserve
Bank, and K. K. Fossom of th e sam e
in stitu tio n , w ere p re se n t at each one
of th e m eetings and capably handled a
discussion on consum er cred it at sev­
eral of th e m eetings.
P resid en t M orris gave sound advice
w ith reg ard to “R eserves for F u tu re
H eadaches,” th e W age and H our Act,
and th e b a n k s’ p a rt in th e defense p ro ­
gram .
S u p erin ten d en t Haugo stressed th e
im portance of “C om m unity R eserves”
in a capable and in te re stin g m anner.
C. W illiam D uncan of th e E v e n in g
Public Ledger, Philadelphia, e n te r­
tained delegates w ith n u m erous de­

scriptions of fam ous personalities in
th e news.

Officers Elected
G roup I at Y ankton (attendance 99).
P resid en t—R. G. Stevens, president,
Citizens Bank, V erm illion.
Vice P resid en t — W. A. Schaetzel,
president, Union County Bank, E lk
S ecretary-T reasurer — Geo. K. Brosius, assistan t m anager, V erm illion
B ranch, N ational B ank of South Da­
kota, Verm illion.
N ineteen Forty-tw o m eeting at V er­
G roup II at Sioux Falls (attendance
P resid en t—Carl J. Odegard, m anager,
M adison B ranch, N orthw est Security
N ational B ank of Sioux Falls, Madison.
Vice P resid en t—E. M. Dean, cashier,
F a rm e rs State Bank, Canton.
S ecretary-T reasurer—E. J. D irksen,
cashier, Security B ank and T ru st Com­
pany, Madison.
N ineteen Forty-tw o m eeting at Mad­
G roup III at M itchell (attendance

Convenient stub register for filing record of transaction.

an d p le a s e y o u r custom ers


by m aking this great value in personalized checks available to
them: 200 checks on N atio n a l Safety Paper— printed w ith
custom er’s name and num bered— plus attractive genuine
leather cover (w ith first orders) gold-stam ped w ith his name
— all for $1.25. W rite for com plete details.

V t

P la n ts a t


m m .



Lithographers a n d Printers

Northwestern Banker
Federal Reserve Bank of St. Louis

December 1941

s t . PAUL



P resid en t—P. V. Olson, m anager,
C ham berlain B ranch, N orthw est Se­
cu rity N ational B ank of Sioux Falls,
C ham berlain.
Vice P resid en t—G. W. Toft, assistant
cashier, Com m ercial T ru st & Savings
Bank, M itchell.
S ecretary-T reasurer—P aul F. Scheuren brand, a ssistan t cashier, M itchell
N ational Bank, M itchell.
N ineteen Forty-tw o m eeting at M it­
Group IV at W atertow n (attendance
P resid en t—A. T. Hagen, president,
F irs t State Bank, Clarem ont.
Vice P resid en t—A. G. Berger, vice
presid en t and cashier, Deuel C ounty
N ational Bank, Clear Lake.
S ecretary-T reasurer — J. A. A nder­
son, president, F irs t State Bank, Pierpont.
N ineteen Forty-tw o m eeting at A ber­
A. Lohr, cashier, F irs t N ational
B ank & T ru st Company, Lake Norden,
w as nom inated m em ber of the execu­
tive council to succeed F. A. Olson of
T oronto w hose te rm expires a fter ad­
jo u rn m en t of th e 1942 convention.
Group V at H uron (attendance 79).
P resid en t—M. J. Twiss, cashier, Se­
c u rity State Bank, Doland.
Vice P resid en t—C. P. Swift, execu­
tive vice president, Citizens State
Bank, A rlington.
S ecretary - T reasu rer — J o h n G.
B rauch, Jr., a ssistan t m anager, H uron
B ranch, N ational B ank of South Da­
kota, H uron.
M eetings alw ays a t H uron.
Group VI a t M obridge (attendance
P resid en t — H. C. Gross, cashier,
Bowdle State Bank, Bowdle.
Vice P resid en t—M. J. Schirber, cash­
ier, Dewey County Bank, Tim ber Lake.
S ecretary-T reasurer — J. D. Lesher,
cashier, Citizens B ank of Mobridge,
M eeting alw ays at Mobridge.
Group V II a t Lead (attendance 81).
P resid en t—C. O. Gorder, m anager,
Deadwood B ranch, F irs t N ational
B ank of th e Black Hills, Deadwood.
Vice P resid en t—T hom as L. Seppala,
executive vice p resid en t and cashier,
S outhern H ills Bank, Edgem ont.
S ecretary - T re a su re r — C harles E.
Pendo, cashier, M iners & M erchants
Savings Bank, Lead.
N ineteen Forty-tw o m eeting place
to be decided upon by th e officers.
C. J. P oshusta, vice presid en t and
cashier, U nderw ood S tate Bank, New
U nderwood, w as nom inated m em ber of
th e executive council to succeed H ar­
old J. W alker of S turgis w hose term
expires after ad jo u rn m en t of th e 1942

of N ovem ber 6, 1941, footings for th is
b an k totaled $1,003,532.51.
This is th e first tim e in th e h isto ry
of th e bank, and th e first tim e in th e
h isto ry of th is county, th a t any b an k
has reached a to tal of th a t am ount.
Deposits alone in the b an k are $942,972.64.
The F arm ers & M erchants B ank re ­
cently observed its 34th anniversary.



Former Banker Dies

New Branch Opened

Group Officers

Affiliated w ith th e A m erican State
B ank a t W illiston, th e G renora E x ­
change w as opened recen tly to serve
G renora business establishm ents. Jo h n
S. Sorenson is m an ag er of th e ex­
change and B erth a M. Sorenson is
assistan t.
In addition to cashing checks, Sor­
enson said, th e exchange w ill handle
ren tals, in su ran ce and collections.

Below are th e nam es of officers
elected at th e recen t N orth D akota
group m eetings:
S outheast G roup—P resident, R. H.
B utterw ick, Fargo; vice president, G.
A. K lefstad, F orm an; secretary-treas­
u rer, R. M. Hougen, Valley City; m em ­
b er state executive council, B. A. Helland, A rth u r; m em ber state n o m in at­
ing com m ittee, S harpe P ruetz, Kulm.
N o rth east G roup—P resident, L. E.
Callahan, M unich; vice president, O. C.
Stusrud, Mayville; secretary-treasurer,
F. C. G ustafson, G rand F orks; m em ber
state executive council, O. H. Lundquist, Adams; m em ber state n o m in at­
ing com m ittee, C. I. E rstad, Maddock.
N orthw est G roup—P resident, C. P.
K jelstrup, Minot; vice president, O. N.
Stenehjem , W atford City; secretarytre asu rer, H. C. Dahl, Minot; m em ber
state executive council and m em ber of
state nom inating com m ittee, H. T.
Holtz, G arrison.
Southw est G roup—P resident, H. C.
Bowers, Regent; vice president, F. B.
H eath, Bism arck; secretary, P. J. Edkins, Beach; treasu rer, I. E. Giedt,
R ichardton; m em ber state executive
council, H. A. Fischer, W ashburn;
m em ber state n o m inating com m ittee,
J. F. M cEntee, New E ngland.
A ttendance at these m eetings broke
all records for th e p ast ten years, and
indicated th e desire for evening m eet­
ings, w hich w ill enable ju n io r officers
and em ployes to atten d and p artici­
pate. A ttendance at Valley City, 110;
G rank F orks, 112; Minot, 65; M andan,
100. The snow storm and slippery
roads, despite additional a ttractio n of
school teachers convention in session
at Minot, reduced the attendance at
th a t point.

Resigns Position
Miss R u th Newsome, a ssista n t cash­
ier of th e S ecurity N ational B ank of
E dgeley for th e p ast 14 years, has re ­
signed and at p resen t is v isitin g
frien d s in A berdeen. L aw rence Trenb eath of Neche, N. D., w ill fill th e posi­
tion left v acan t by Miss Newsome.

Fargo Business Good
R iding on th e crest of a w ave th a t
has carried th e volum e of business in
F argo to record heig h ts for several
m onths, tra d e continues at th is high
level, according to latest figures on
b an k debits p resen ted by th e M inne­
apolis F ed eral R eserve Bank.
F argo b an k debits in October reached
$32,496,000 com pared w ith $28,307,000
in October last year, an increase of 15
p er cent. F o r th e year, since J a n u a ry
1st, the debits at F argo have been $245,239,000 com pared w ith $208,110,000 in
th e sam e period last year, a gain of 18
p er cent.
Indicative of th e com parative in ­
crease over form er years, is th e fact
th a t last y ear w as also a record period
for b an k debits in th is city.
The M inneapolis b an k com m ents
th a t th e October debits in F argo w ere
at th e h ig h est level recorded for any
October in th e m ore th a n 20' years th a t
it has been com piling th ese records.
All of N o rth D akota and th e en tire
n in th d istrict, w hich includes th e Da­
kotas, M ontana, M innesota and p a rts
of W isconsin and M ichigan, also record
h igh volum es of b an k debits, w hich are
considered an accurate b aro m eter as
to th e volum e of m oney changing
h ands by check.

Bank Makes Record
T he F arm ers & M erchants B ank of
Beach recen tly m ade w h at is really an
im pressive record, and an o u tstanding
trib u te to th e fine service th ey have
ren d ered to this area. In a statem en t
p rep ared by P. J. E dkins, cashier, as

L. A. Tavis, a pioneer active th ro u g h ­
out his life in th e developm ent of
w estern N orth Dakota, died at his
hom e in B ism arck last m onth.
F o r a n um ber of y ears Mr. Tavis
w as associated w ith th e H. R. Lyon
b anking interests, and du rin g th a t
tim e he served as a director of the
F irs t N ational B ank of M andan and
m anager of its b ran ch banks in w est­
ern N orth Dakota.

A.I.B. Meeting
The ann u al m eeting of the Fargo
ch ap ter of th e A m erican In stitu te of
B anking w as held in F argo last m onth.
Some 120 b ank em ployes attended.
R. H. Butterfield, cashier of th e Da­
kota N ational B ank of Fargo, w as m as­
te r of cerem onies.
The principal speaker w as F re d J.
C onklin of Bism arck, vice president
and general m anager of the P rovident
Life In su ran ce Company. O ther speak­
ers, all of Fargo, w ere as follows: F red
A. Irish, president, F irs t N ational
B ank and T ru st Company; W illiam
Stern, president, D akota N ational
Bank; F ra n k R. Scott, president, M er­
ch an ts N ational Bank; E. L. Shaw,
president, F argo N ational Bank; H. H.
W ooledge, president, F argo Savings
and Loan Association; L. E. Smith,
cashier, Fargo N ational Bank, and A.
O. M cLellan, assistan t tru s t officer,
M erchants N ational Bank.

Sixtieth Birthday
The F irs t N ational B ank of M andan,
organized by H. R. Lyon in th e days
w hen D akota te rrito ry w as undergoing
a slow tran sfo rm atio n from a v ast te r­
rito ry w here th e buffalo roam ed to a
large scale checker board of farm s and
ranches, celebrated its six tieth b irth ­
day last m onth.
The F irs t N ational now has nearly
$2,000,000 in deposits.
J. R. Madsen, w ho came to th e b ank
in 1934 as a ssistan t cashier, now heads
th e in stitu tio n , and is ably assisted by
a staff of fourteen, including A. R.
W einhandl, vice president; A. E.
Lubke, cashier; R. J. Hess, A. J. Fix,
R. L. D ietrich, A. I. Theisen, Grace
F a rr, C. A. Thorkelson, Connor Cuskelly, A udrey Claffin, M ath A. Gross,
Ava Jan e Nelson and Florence Stordahl.
Northwestern Banker
Federal Reserve Bank of St. Louis

December 19M

We Buy Eligible
Prompt Service to Banks



*7 la

te o






Northwestern Banker
Federal Reserve Bank of St. Louis

December 19'tl


/ (9 m


a A a


O. A. R IL E Y

Changes at O'Neill
Guy Jam es, w ho has been m anager
of th e O’Neill L ivestock Com m ission
C om pany for som e tim e, has left his
position th e re to accept a position as
assista n t cashier of th e A m erican N a­
tional B ank of C reighton.

Veteran Banker Dies
S tephen Jo h n W eekes, p resid en t of
th e O’Neill N ational Bank, passed
aw ay at his hom e in th a t city last
m o n th a fte r an illness of ab o u t four
m onths of a h e a rt ailm ent.
Mr. W eekes w as w ell k now n in N e­
b rask a b an k in g circles, and his passing
w ill be re g re tte d by his m any friends
th ro u g h o u t th e state.

Trade Indices Good
South O m aha b u siness m en recen tly
su rveyed th e ir tra d e indices and found
th em good.
A. L. Coad, p resid en t of th e P ack ers
N ational B ank, noted increased p u r­
chasing on th e p a rt of farm ers in th e
tra d e te rrito ry . A lvin Johnson, p re si­
d en t of th e Live Stock N ational Bank,
said th e co ncern’s loans h ad increased
60 p er cent over last y ear due not only
to South Om aha activ ity b u t th ro u g h ­
out th e tra d e te rrito ry as well. L. O.
B arr, g eneral m anager of Sw ift & Com­
pany, said th e increase in packing
house in d u stry w ill be m ain tain ed for
th e n ex t several m o n th s w ith th e hog
ru n ju s t g ettin g u n d e r way.
South O m aha’s increased com m er­
cial activity, business m en said, stem s
from a 10 p er cent increase in em ploy­
m en t in packing plants, upp in g of
wages, hom e b uilding activ ity and F o rt
Crook bom ber p la n t co n stru ctio n em ­
ploym ent.

William Hoppe Deceased
W illiam Hoppe, 58, long-tim e..m er­
ch an t of Bloomfield and a d irecto r in
th e F a rm e rs and M erchants State
B ank of th a t city, collapsed and died
from a h e a rt a tta c k in his grocery
store last m onth.
He w as credited w ith being one of
th e m en w ho helped keep th e to w n ’s

WM. B. H U G H E S

only bank o perating du rin g drought
and depression years.

Savings and Loan Merger
P lans are now in consideration for
th e tra n sfe r of th e assets of th e Bea­
trice B uilding & Loan Association,
w hich has served its com m unity for
thirty-seven years, to th e S tate Savings
and L oan Association.
If th e plans go through, th e tra n sfe r
is to be m ade Ja n u a ry 1, 1942. On th a t
date all stockholders of th e B eatrice
B uilding & L oan A ssociation w ill have
an equal n um ber of shares in S tate
Savings and L oan A ssociation, w ith ac­
cum ulated dues and dividends. Such
shares, how ever, w ill not be subject to
w ith d raw al for a period of one year,
except at th e option of th e State Sav­
ings and Loan Association.
P resen t officers of th e B eatrice B uild­
ing and Loan A ssociation are: B. H.
Buckm an, vice president; F. H. Graf,
secretary-treasurer, and H. E. Sackett
and B. H. B uckm an as directors. The
vacancy on th e board caused by the
death of Dr. C. P. Fall, president, has
not been filled.

A ccepts Bank Position
W ayne L anm an has accepted a posi­
tion in th e B ank of W ood R iver and
began his new duties last m onth.

Observes 40th Anniversary
T he C ham bers State B ank celebrated
th e fortieth year of continuous service
to its com m unity last m onth.
T he bank, w hich w as founded by the
late E dw ard Adams, has show n a
steady grow th since th e first deposit
of $160 w as m ade by Jo h n Duncan.
I t is in terestin g to note th a t th e re ­
serves and liabilities, w hich w ere $7,285.30 on its opening day, have in ­
creased to $230,130.95.

Attends Des Moines Meeting
C. L. Bishop, cashier of th e B a rtlett
S tate Bank, B artlett, N ebraska, w as in
Des Moines recen tly atten d in g an
agency m eeting of th e Hom e M utual

F ire In su ran ce Company, w hose hom e
office is in th e la tte r city. Mr. Bishop
has an insurance general agency in his
bank, and th e Hom e M utual is one of
th e com panies represented. H e ex­
ceeded his October quota in a produc­
tion contest, w hich p erm itted him and
his w ife to a tten d th e Des Moines m eet­
ing w ith all expenses paid.
N ovem ber w as th e 40th an n iv ersary
m onth of th e Home M utual, it having
been organized in 1901 by H. J. Rowe,
now president of th e com pany.

Bank Cashier Dies
I. Pfeiffer, po stm aster at A rling­
ton, and for tw enty-tw o y ears cashier
of th e F irst N ational B ank a t A rling­
ton, passed aw ay at Excelsior Springs,
M issouri, recently.

A ccepts New Position
Miss E m m ajoe N ew by of H um boldt,
N ebraska, who has been em ployed in
th e F airchilds Clay P roducts plant,
has accepted a position w ith th e Fairb u ry State Bank, tak in g th e place of
Miss Phyllis Jaeg er w ho has accepted
a position a t W ashington, D. C.

Conference Set
T he tw en ty -th ird M id-W inter T ru st
Conference of th e T ru st D ivision of
th e A m erican B ankers A ssociation w ill
be held in New York City on F e b ru a ry
3, 4, and 5, 1942, it is announced by
R ichard G. Stockton, P resid en t of the
A. B. A. T ru st Division, w ho is vice
presid en t and senior tru s t officer of
th e W achovia B ank and T ru st Com­
pany, W inston-Salem , N orth Caro­
lina. The an n u al banquet, w hich will
b rin g the conference to a close, w ill
be held on th e evening of T hursday,
F e b ru a ry 5. Both conference and b an­
quet w ill be held at The W aldorfA storia.

Business Courtesy
E m phasizing th e value of business
courtesy d uring th e h u rrie d days of
defense production, The Todd Com­
pany of R ochester, N. Y., m anufac­
tu re rs of checks and checkw riting
equipm ent, have published an article
in th e ir w eekly house organ u rging
all em ployees to extend all possible
consideration to suppliers, custom ers,
and th e ir own associates. Besides ap ­
pearing in The Todd Sales B ulletin,
Todd Com pany house organ, the a r­
ticle w as rep rin ted and distrib u ted to
p lan t employees.
“C u rren t conditions,” th e article
states, “have created an adm irable op­
p o rtu n ity for suppliers and salesm en
to increase good-will. W hen stiff and
unexpected dem ands for supplies are
made, vendors should take every op­
p o rtu n ity first to m eet those dem ands,
Northwestern Banker
Federal Reserve Bank of St. Louis

December Í9M

and in d efault of th at, to explain as
fully and courteously as possible w hy
they cannot be m et. B uyers, conscious
of c u rre n t conditions, w ill rem em ber
th e ir efforts w ith g ratitu d e and a p p re­
Indicating th a t suppliers w ho deal
w ith custom ers and prospects as cour­
teously as possible w ill be th e first to
gain favorable a tte n tio n w hen th e de­
fense bubble b u rsts, th e article is felt
to reflect th e a ttitu d e of m ost forw ardlooking b u sinessm en today. A lim ited
n u m b er of re p rin ts are still available

and w ill be sen t to anyone w ho sub­
m its a req u est for them , com pany
officials stated.

C . I. T. Vice President
H a rry W eiss, who has resigned as
p resid ent and d irector of N ational
Bond and In v estm en t Company, Chi­
cago, has been elected a vice president
of C. I. T. C orporation. C. I. T., th e
larg est independent sales finance in
th e country, has executive offices in
New York, Chicago, and San F ra n ­

cisco, and b ran ch offices in m ore th an
250 principal cities th ro u g h o u t th e
U nited States. Mr. W eiss began his
career in th e finance business tw en ty
years ago as m anager of the insurance
division of N ational Bond and In v est­
m ent Company, and in recent years
has devoted the m ajor portion of his
tim e to new business and branch office
developm ent. His h ead q u arters will
be at th e Chicago offices of C. I. T. at
333 N orth M ichigan Avenue.

New Director
W. Ross McCain, presid en t and di­
recto r of th e A etna Insu ran ce Com­
pany of H artford, C onnecticut, has
been elected a director of th e Chem­
ical B ank & T ru st Com pany of New
York. Mr. McCain is also president
and director of th e W orld F ire & Ma-


W . R O SS M cC A IN

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Y A R D S ,

Federal Reserve Bank of St. Louis

December Í9M

Bank H elp W an ted
M any attractive position s now open from
Chicago to Pacific Coast for p ostin g machine
operators, stenographers, tellers and assistan t
cashiers. Country bank experience preferred.
W rite for application blank.


Northwestern Banker

rine and the C entury Indem nity Com­
panies of H artford, Connecticut, and
th e Piedm ont F ire Insu ran ce Com­
pany of C harlotte, N. C. He is ch air­
m an of th e board of directors of the
S tandard Insu ran ce Com pany of N. Y.,
the S tandard S urety & C asualty Com­
p any of N. Y.; and a director of the
Connecticut M utual Life In surance
Com pany and th e F irs t N ational B ank
of H artford. He is a tru stee of the
M echanics Savings Bank, H artford.

T H E C H A R L E S E . W A L T E R S CO.
P . O. B o x 1313, O m aha, N e b r a sk a

L ast M arch 13, La V onne M oyer of
Omaha, quit h er job at th e Omaha N a­
tional B ank and w ent to C alifornia
w ith h er p arents, Mr. and Mrs.
K lem m e Moyer, w ho w ere m oving
th ere because h er fa th e r w as offered
a b e tte r job on th e coast.
E ighteen days later, she started as a
show girl in E arl C arroll’s theaterre sta u ra n t, w ith o u t any previous
tra in in g in dancing or singing.
This fall, she cam e back to Omaha
as one of the girls who have specialty
n um bers in the E a rl C arroll “V an­
All th is recalls th a t 22 m onths ago
she visited H olywood for th e first
tim e, w hen she w as chosen O m aha’s
“Miss S eventeen.” B ut she came hom e
from th a t trip to finish h er course a t
South H igh school.
E W king of Ak-Sar-Ben, O m aha’s
m ythical dom ain, is W. B. “B ob”
M illard, Jr., executive vice p resid en t
of th e Om aha N ational Bank.
He w as crow ned, w ith his consort,
Alice M eyer, d a u g h te r of Mr. and Mrs.
C. L ouis M eyer, a t elaborate corona­
tion cerem onies in O m aha’s Ak-SarBen coliseum .
T hough he is called “Bob” by m ost
everybody in Omaha, Mr. M illard’s real
nam e is W illard B arrow s M illard. A t
41, he is one of th e youn g est ru le rs
ever to serve Q uivera. H e ’s a nativ e
of th e realm and his fath er, before
him , also w as vice p resid en t of th e
O m aha N ational Bank. H is g ra n d fa th e r
w as th e late S enator Joseph H. M illard,
p resid en t of th e Om aha N ational and
one of O m aha’s pioneer citizens.
“Bob” w as g rad u ated from Yale u n i­
v ersity in 1924 w ith a bachelor of
philosophy degree. H is wife, w ho died
several y ears ago, w as Ak-Sar-Ben
queen in 1921.
He sta rte d his b an k in g career as a
clerk in th e m ail room of th e Om aha
N ational. He has been associated w ith
th e b an k 17 years.
H ere are som e of his likes and dis­
He is alw ays in a h u rry , a stick ler
for being on tim e every place he goes.
He likes to drive a car b u t isn ’t
m echanical.
H e doesn’t like w in te r sp o rts or
horse-back rid in g b u t he plays golf in a
“business m en ’s foursom e.”
H e used to play q uite a lot of ten n is
b u t h a s n ’t touched a racq u et in tw o
In his Yale days, he w as in a cham p­
ion golf group, and later, in an in te r­
city m atch a t K ansas City, he m ade a
He is ex trem ely m odest, friendly
and his co nservation is vivid and ap t
to be p u n c tu a te d by a little chuckle.
H e’s alw ays doing little kindnesses


for friends and strangers.
He doesn’t like movies, isn ’t m usical,
b u t he likes sym phonic music. W hen
in N ew York, he goes to th e th e a te r
only if th e re ’s nothing else to do.
T hus far th is year, th e F ederal Land
Bank of Omaha and th e F ederal F arm

More th an 1,000 depositors in C hrist­
m as savings clubs of seven Omaha
banks saved m ore th an $470,000 d u ring
the p ast year.
A m ount of deposits and nu m b er of
m em bers w ere slightly larg er th an a
year ago.
Club depositors in uptow n ban k s re ­
ceived th e ir checks th e w eek of Nov.
17 and South Omaha depositors No­
vem ber 26. B anks having clubs th is
y ear included th e U nited States N a­

M ortgage corporation have approved
sale of 4,093 farm s in N ebraska, South
D akota, Iowa and W yom ing, out of a
to tal of 8,778 farm s owned by th e gov­
ern m en t last Ja n u a ry 1, Leo Manion,
land b an k vice president, told secre­ tional, L iv e Stock N ational, Omaha N a­
ta ry -treasu rers of farm loan associa­ tional, F irst N ational, South Omaha
tions from four states at a recent m eet­ Savings, P ackers N ational, N orth Side
ing in Omaha.
He said 90 per cent of the sales w ere
South Om aha business m en su r­
in N ebraska and South Dakota. More
veyed th e ir trad e indices recen tly and
th a n 400 farm s w ere sold in Iowa,
found them good.
leaving only about 75 for sale in th a t
A. L. Coad, presid en t of th e P ackers
state. Of th e total sales, 80 p er cent
N ational Bank, noted increased farm er
w ere to te n a n ts and ow ner-operators.
purch asin g power.
The land bank, he said, n eith er
A lv in E. Johnson, presid en t of the
w an ts nor anticipates any ru n aw ay
Live Stock N ational, said th e con­
land boom, b u t does feel a h ealth y
ce rn ’s loans had increased 60 p er cent
advance is at hand.
over last year.
G. Black, of W ashington, gov­ Packing p lants rep o rted a 10 per
ern o r of th e farm credit ad m in istra ­ cent increase in em ploym ent.
tion, told th e secretary -treasu rers th a t
it m ight be a good idea for them occa­
J. F. M cD erm ott, vice p resid en t of
sionally to stick th e ir feet u p on th e ir th e F irs t N ational B ank of Omaha,
desks and forget the “m echanics” of addressed a recen t m eeting of th e
th e ir jobs.
Omaha u n it of th e A m erican Balloon
Corps V eterans, at th e Omaha E lks
Oscar H elin e, farm er n ear M arcus,
Iowa, has been elected a m em ber of
th e farm credit board at Omaha by
B en n ett S. Martin of th e F irs t T ru st
farm co-operatives in Iowa, N ebraska,
Com pany of Lincoln has been nom i­
South D akota and W yom ing. He will
nated a m em ber of th e district com­
tak e office Ja n u a ry 1. H is term is for m ittee of th e N ational A ssociation of
th re e years.
Securities Dealers, Inc., to succeed A.
His election w as announced by L. W. C. P o tter of B urns, P o tte r & Company,
Omaha in v estm en t bankers.
Pow ers, general agent of th e farm
cred it ad m in istratio n at Omaha, as the
Mr. and Mrs. A. C. P otter celebrated
re su lt of balloting by co-operative as­
sociations ow ning stock in th e Omaha tw o T hanksgiving days th is year.
T hey w ere in New York City w ith
B ank for Co-Operatives.

Northwestern Banker December 19^1
Federal Reserve Bank of St. Louis

th e ir son, A nthony Boalt, w ho atten d s
M illbrook school in D utchess county,
for th e New York T h anksgiving No­
vem ber 20, and th e n re tu rn e d hom e
in tim e for th e N ebraska T hanksgiving
N ovem ber 27.
M iss L etitia J. Lydon, clerk a t th e
F ederal L and B ank of Omaha, and
h er p aren ts, Mr. and Mrs. Jo h n P.
Lydon, of D exter, Iowa, w ere over­
joyed w hen w ord cam e recen tly th a t
Lieut. L eonard C. Lydon, th e son of
th e fam ily, one of th re e arm y flyers
w hose ships crashed in th e Mt. W h it­
ney region of th e H igh S ierras n ear
Fresno, C alifornia, w as safe. T hey had
kep t a co n stan t vigil at th e radio for
w ord of him.
L ydon p arach u ted from his plane
and later w as able to a ttra c t th e a t­
tentio n of search ers by signals, a fte r
he and a n o th er Iow a flier, w ho also
crashed, had found th e sam e sh elter
in an u n in h ab ited h u n tin g shack.

T W ENTY em ployes of th e N ational
Bank of Com m erce honored Miss

Adelaide B urke at th e L indell H otel
recently. Miss D arlene Lutz, Mrs. W.
M. McGuire, and Miss M ary A nn
McDonald w ere hostesses. Miss B urke
is soon to be m arried.

Masons Honor Banker
R obert I. Stout, p resid en t of the
F irs t N ational B ank of Tekam ah, is
one of six N ebraskans w ho w ere
elected 33rd degree M asons at th e bi­
ennial m eeting of th e Suprem e Council
of th e A ncient and Accepted Scottish
R ite of F ree M asonry being held in
W ashington.
T h irteen N ebraskans w ere elected to
receive th e decoration of K night Com­
m ander of th e C ourt of Honor.
In v e stitu re cerem onies for th e re ­
cipients of th e high M asonic honors
will be held in Lincoln and Om aha on
dates to be announced later.

L incoln b ank clearings w ere up in
October. The total for October, 1941,
w as $13,761,215. In October a y ear ago
clearings totaled $12,259,306. The Sep­
tem ber, 1941, clearings w ere also
slightly exceeded in October. The Sep­
tem ber volum e w as $13,727,372.

F o r the first 10 m onths of 1941 L in ­
coln b ank clearings have aggregated
$127,574,204. F o r the first 10 m onths
of 1940 the total w as $123,975,095.
A ssistant A ttorney G eneral R obert
A. N elson has ruled a sm all loan cor­
p oration cannot h ire agents to seek

" Holiday


The Continental N ational Bank's officers
and em p lo y es extend w arm est H oliday
G reetings to all our m an y clients and

Member Federal Deposit Insurance Corporation

Northwestern Banker
Federal Reserve Bank of St. Louis

December 19M

loan clients in any tow n or city other
th a n th a t in w hich the corporation is
located and licensed.
The opinion w as requested by State
B anking D irector W ade R. M artin who
said th a t m any corporations now hold­
ing sm all loan licenses w ere doing
business in various p arts of th e state
th ro u g h agents.
Nelson held such practices are vio­
lations of th e sm all loan law passed
by the last legislature. The loan bill,
he said, req u ires a com pany hold a
license in every tow n or city in w hich
it operates.
B en n ett S. M artin of th e F irs t T ru st
Company, Lincoln, w as recently nom ­
inated a m em ber of th e d istrict com­
m ittee of th e N ational A ssociation of
Securities Dealers, Inc. He succeeds
A. C. P otter of B urns, P o tte r & Co.,
Omaha. M em bership em braces dealers
in Illinois, Indiana, Iowa, M ichigan,
N ebraska and W isconsin.

Orval Lloyd Skinner, 29, W innebago,
last m onth pleaded guilty to the $1,300
arm ed robbery of th e Hom e State
B ank at Louisville, A pril 23 and w as
sentenced by F ederal D istrict Judge
J. A. Donohue to 15 y ears in L eaven­
w o rth p enitentiary.
Skinner, now serving a 20-year sen­
tence at L eavenw orth for th e a t­
tem pted robbery A pril 2d of the Saline
State B ank at W ilber, w ill begin the
15-year sentence at th e end of his pres­
en t term .
The young bank robber, w anted in
Iowa on o ther bank holdup charges,
pleaded guilty to the W ilber robbery
before Judge T. C. M unger last May
17th. At th a t tim e, M unger refused to
consider the Louisville in dictm ent be­
cause of a technicality.
S kinner escaped from the Louisville
b ank after a ru n n in g gun battle. He
later w as arre ste d a t St. Louis, Mis­
souri, and calm ly adm itted both th e
W ilber and Louisville robberies along
w ith several Iow a stickups.


By Paul W. Schooll, Associate Editor
V ISITORS from all over N ebraska
g ath ered in A u ro ra last m o n th to
urge th e developm ent of pum p irri­
gation. Dr. George E. Condra, state
geologist, and m an y o th er exp erts
from th e state u n iv e rsity explained the
g re a t u n d e rg ro u n d w a te r supply of
N eb rask a an d said th a t th o u san d s of
additional irrig a tio n w ells can safely
be developed.
F ran k E d gerton of A urora, p resid en t
of th e F irs t N ational B ank, presided
a t th e m eeting w hich lasted all day.
Mr. E d g erto n is also p resid en t of th e
H am ilton C ounty F a rm s Co. w hich
has been a pioneer in pum p irrig atio n ,
h av in g five g re a t pum ps w orking in
d ry w eather. M any farm ers told of
splendid increase in production by use
of g round w ater.
S enator H ugh A. B u tler and G over­
no r D w ight G risw old sponsored th e
m eeting.
Sew ard, N ebraska, w as a city of
m uch activ ity on N ovem ber 19th to
29th, inclusive. The C attle N ational
B ank sponsored a corn show for th e
tille rs of th e soil. T h ere w ere n u ­
m erous tro p h ies p resen ted as prizes
for th e farm ers hav in g th e best ex­
h ib its of corn raised in th e vicinity of
Sew ard. The C attle N ational B ank
also p resen ted m an y cash prizes. A.
C. Beck, cashier of th e C attle N ational
B ank for m an y years, w as in com ­
plete charge of th e corn show. H e is
backed by th e v ery able p resid en t of
th e bank, R obert T. Cattle. Mr. C attle
has been p resid en t of th e C attle N a­
tio n al B ank since 1911, and Mr. Beck
has been his cashier since 1929.
A small-loan license w as g ran ted by
th e S tate B anking D ep artm en t to th e
H a rla n C ounty B ank of Alma. B an k ­
ing S u p erin ten d en t W ade M artin said
15 state b an k s and th re e national
ban k s now hold licenses. W arren B.
F o w ler is cashier of th is bank.
T he G oehner S tate B ank has ju s t
finished th e redecoration of th e en tire
bank, both inside and out. New fluo­
rescen t lig h t fixtures w ere installed.
M. M adison, is th e executive vice
presid en t in charge of th is b an k and

J a n u a ry 1st, he w ill celebrate his tw en ­
ty-fifth an n iv ersary w ith th e in stitu ­
tion. D uring this 25 y ears Mr. Madison
has w eath ered all storm s and has
g rad ually increased his business in
his bank. Mr. M adison’s daughter,
V elm a M. M adison, is a grad u ate of
th e W esley U n iv ersity of Lincoln,
N ebraska, and has been cashier of
th e b ank for over 12 years.
On M arch 1st, next, L o u is 1). O tto,
p resid en t of th e F irst N ational Bank,
H am pton, w ill celebrate his tw entysev enth b irth d ay as an officer. He says
th a t he expects 1942 to be one of the
b est y ears for all concerned in his
te rrito ry th a t th ey have experienced
in th e last ten years. H is b an k has
been in operation since 1884, b u t w as
nationalized in 1906. F . H . C o x has
been th e cashier of th is b ank since
The State B ank of P alm er, N ebras­
ka, has a new cashier. J. H. Itsen w as
selected to succeed O. C. W rig h t as
cashier. Mr. Itsen has had m any y ears
of experience in th e financial w orld.














Come to the Bismarck
for luxurious comfort
. . . good food . . . and
th a t e lu s iv e so m e­
thing called “friendly
se rv ic e ” that m akes
you feel right at home.
Every modern hotel
convenience is here
at your beck and call
. . . and the location
is a t i m e - s a v i n g
Write for booklet
with map of
downtown Chicago

He spent ten years as an officer in the
B ank of Glendale, N ebraska, and the
p ast six years has been connected
w ith a financial establishm ent a t H as­
tings. He has a w ife and one daughter,
13 y ears of age. Boyd H erre w as
elected to serve as a ssistan t cashier
some tim e ago, and w as prom oted
from teller.

Moves to Sidney
D. W. Reynolds, assistan t cashier of
th e A m erican N ational B ank of C reigh­
ton, has recently resigned his position
to accept one as cashier of the A m eri­
can N ational B ank of Sidney.



u b l ic

N a t io n a l
S e r v i c e — M ain tain in g an
intimate, personalized corre­
spondent bank service.

E x p e r ie n c e — Officials with
years of service in this field,
assuring a knowledge of re­
quirements and valuable as­
P o lic y — To cooperate with
out-of-town hanks rather than
compete for business which is
rightfully theirs.


E ST A B L IS H E D 1 9 0 8





Northwestern Banker
Federal Reserve Bank of St. Louis

December 19M


The Bank in the Heart of the Defense
A re a ’s Natural Business District
HE LIVE STOCK NATIONAL BANK is strategically located
to serve the needs of the great National Defense and Agricul­
tural enterprises already here and still to come. Frankly, we’d like to
see more defense industries (as well as the many sub-contractors and
suppliers necessary to keep them going) locate in this naturally suit­
able area. We stand ready to lend them our financial aid and advice.


The role that credit and the allied banking functions play in
this new defense setup is extremely important. Business men are
faced with the need of finding the answers to questions they
have never before encountered.

Capital - - $ 1,313,549.27
Loans - - - 10,241,333.24
Deposits - - 16,600,338.10

In this situation, the co-operation of a business-minded
bank can be of immense value
to industrialists. That many
business executives in the
Omaha area look upon the
Live Stock National Bank as a
business-minded bank is shown
by our steady growth over a
period of many years.


Loans Deposits

W e Congratulate


1, 660, 388.45
4 , 986, 823.44

Mr. Glenn L. M artin and
his associates on the G lenn
L. M artin-N ebraska Co.
aircraft factory.



The Live Stock National Bank
------------------------------------ O M A H A -------------------------------------M EM BER

Northwestern Banker
Federal Reserve Bank of St. Louis

December 19kl





- $100,000.00

Group 2 as a class B director. E ach
w ill serve for th ree y ears beginning
Ja n u a ry 1, 1942.

A ccepts New Position

J t *.



Des Moines

Miss Pauline D eutler has accepted
a position w ith the Onawa State Bank.
Miss D eutler has been em ployed for
th e last tw o y ears in the b an k a t L en­
nox, South Dakota. She is a sister of
Mrs. Lucille Yocum, w ho accepted
th e position of bookkeeper in th e Ona­
w a S tate B ank a n um ber of m onths

New Director Elected
G . O . P. State Chairman
F re d B. G ilbert of S tate Center,
Iow a, recen tly w as elected ch airm an
of th e Iow a R epublican state cen tral
com m ittee a t a m eeting in H otel Save ry in Des Moines.
E lection of G ilbert, th e th ird d istrict
com m itteem an, w as un an im o u s on th e
first ballot, according to R. E. Hill,
Oxford Ju n ctio n , Iowa, com m ittee sec­
re ta ry .
G ilbert, 52, a ban k er, law yer, legion­
n a ire arid fo rm er state rep re se n ta tiv e
from M arshall County, is th e th ird R e­
publican sta te ch airm an in a year.
G ilbert cam e to th e com m ittee in
1939, w h en Jam es H. M ilroy of V inton,
fo rm er state ch airm an, resigned.
He w as M arshall C ounty R epublican
ch a irm a n for six years. He is p re si­
d en t of th e C entral S tate B ank in State
C enter.

of th e Chicago F ederal R eserve Bank,
died a t th e Iow a M ethodist H ospital
in Des M oines last m onth follow ing
an em ergency appendectom y.
Mr. Gregory, associate p u b lisher of
Wallaces’ F arm er and Iowa H o m e ­
stead, w as w idely know n in banking
circles th ro u g h o u t Iowa, and his m any
friends m ourn his passing.

Heads Banking Group

The Iow a M ortgage B ankers Asso­
ciation recen tly elected C. L. Roe,
Sioux City, presid en t to succeed E a rl
L inn, Des Moines.
F re d Q uiner, Des Moines, w as
chosen vice president, and Orville
Gore, Des Moines, w as nam ed secre­
tary -treasu rer.
Jo h n W. L eavitt, Cedar Falls, w as
re-elected to th e board of governors,
new m em bers of w hich are W. W.
Beal, W aterloo; Jo h n McGill, Des
Moines, and Linn.
Hudson Banker Dies
S. S trayer, p resid en t of th e H u d ­ Speakers at th e convention w ere
son S tate B ank since 1933, and well- T. J. Nolan, state d irector of th e fed­
know n farm seed grow er, died a t his eral housing adm inistration; Rodney
co u n try hom e tw o m iles n o rth of Selby, executive secretary of th e Iow a
H udson last m o n th as a re su lt of a in d u strial and defense com m ission,
blood stream infection and h e a rt ail­ and Jam es K. T u rn e r of Queal L um ber
m ent.
Speakers at a luncheon m eeting in ­
cluded Carl Adams, m anager of th e
Megorden Elected President
A t th e A llam akee C ounty B ankers farm loan d ep artm en t of E quitable
A ssociation m eeting held recen tly C. Life In su ran ce Co. of Iowa; R obert H.
H. M egorden, cashier of th e W aukon Bush, general counsel for th e F ederal
S tate B ank, w as elected president; H om e Loan Bank; Orville G arrett,
M oritz K erndt, L ansing, vice p resi­ a ssistan t vice presid en t of th e Iowadent, and Clarence H oth, Postville, sec­ Des M oines N ational Bank; L eonard
re ta ry -trea su re r, for th e ensu in g year. Wolf, of th e a rch itectu ral engineering
d e p artm en t of Iow a S tate College,
Ames, and H a rry D. B runer, B ankers
Banker Beaten and Robbed
Life Co.
Owen Shadle, p resid en t of th e Pleasan tv ille S tate B ank, w as recen tly
Re-elected Director
robbed and fatally b eaten n e a r his
hom e in P leasantville.
F ra n k D. W illiam s, executive vice
Tw o P leasan tv ille y o u th s of 15 and p resid en t and cashier of the F irs t Cap­
17 have ad m itted th e ro b b ery an d ital N ational B ank of Iow a City, Iowa,
slaying of th e b anker.
has been re-elected by m em ber banks
of Group 3 as a class A director of th e
F ed eral R eserve B ank of Chicago.
Prominent Man Dies
N icholas H. Noyes, Indianapolis,
Clifford V. G regory, 58, w idely
kn o w n a g ric u ltu ra l editor and directo r w as re-elected by m em ber banks in

H a rry T. Huff has been elected a
director of th e State B ank of F o rt
Dodge, filling th e vacancy on the
board created by th e death of C. B.
Sm eltzer. Mr. Huff is cashier of th e
O ther m em bers of th e board of di­
rectors are: F red L. Loomis, W alter
L. Casteel, C. W. Gadd, Floyd Rich,
Donald V incent, W. S. M errym an,
Jo h n H aire and Jo h n C. Brown.

New Officers Elected
A t th e m o n th ly m eeting of th e board
of directors of th e Beoples T ru st and
Savings B ank of Indianola, G erald
Beym er, Indianola, and Guy R isinger,
Milo, w ere elected a ssistan t cashiers.
Mr. B eym er w orked p a rt tim e tw o
sum m ers w hile atten d in g Sim pson Col­
lege and entered th e b ank afte r his
grad u atio n from Sim pson in June,
Mr. R isinger has been m anager of
th e b ran ch office at Milo since it w as
opened in Novem ber, 1938. Mr. Risinger will rem ain at Milo.

Limit Size of Loans
R em em bering th e afterm ath of the
last land boom w hich left m any farm ­
ers w ith a m ortgage on th e farm
w hich w as too large to pay off w hich
resu lted in heavy losses for financial
institu tio n s, ban k ers in Scott County
are determ ined to do th e ir p a rt in
prev en tin g an o th er such boom, accord­
ing to P. A. Dietz, p resid en t of th e
W alcott T ru st and Savings B ank a t
W alcott.
“T he W alcott bank is lim iting loans
on land to $75 an acre,” Dietz said last
w eek, “w hich we hope w ill m ake it
m ore difficult for a boom to get u n d er
w ay.” A ccording to Dietz th e sum of
$75 an acre w ill be th e m axim um
am ount th a t can be borrow ed, reg ard ­
less of the location of th e farm or th e
am ount of im provem ents on th e place.
Increasing farm prices, w hich are one
of th e causes of a land boom getting
u n d er way, w ill not affect th e lim it
on loans.
Northwestern Banker
Federal Reserve Bank of St. Louis

December 19^1
Federal Reserve Bank of St. Louis
Federal Reserve Bank of St. Louis


New Cashier
M. T. McEvoy,
cashier of th e
B ank to succeed
signed to accept
B ank of A m erica

Jr., has been nam ed
M ondam in Savings
R alph Mills w ho re ­
a position w ith the
at Los Angeles.

Wins 4-H Contest
L oren M unns of th e Rock R apids
L ivestock 4-H club has been nam ed th e
w in n er of th e In te rn a tio n a l contest
sponsored by th e Rock Rapids State
B ank in cooperation w ith th e ex ten ­
sion service.



As w inner, L oren received a trip
to the In tern atio n al L ivestock Show
w ith expenses paid by th e bank.

and later as president, has retired
from active duty.
P hysiciasn have advised Mr. Adam
th a t th e rigorous Iowa w in ters are a
peril to his health, and he w ill prob­
Bank President Dies
ably find it necessary to spend a por­
A lbert L. H em m ing, 80, president
tion of th e year in a m ilder clim ate.
of th e F irs t State B ank of T hornton,
Mr. Adam w ill continue as a director
died recently at a H am pton hospital
p resident of the bank, and w ill
of th e infirm ities of old age.
in te re st him self in its general policies.
W endell Stanley, w ho has been as­
sistan t cashier of th e Citizens Savings
Retires from Active Duty
J. Adam, w ho has served the B ank of G ilm an for the p ast several
Clayton C ounty S tate B ank of G utten- years, has en tered the em ploy of the
berg for th irty years, first as cashier Clayton County S tate Bank.

G oes to Hartley
E dw in E. Popp, for the p ast year
and a half w ith th e F arm ers Savings
B ank of Rem sen, resigned his posi­
tion recently and has accepted a post
w ith th e S ecurity State B ank in H a rt­
ley, Iowa. Along w ith his banking
w ork Mr. Popp w ill be th e H artley
agent for the B ankers Life In surance
Co. of N ebraska.

Elwood Elected Director

Your Eyes and Ears in Sioux City
M ere routine efficiency in han d lin g your
correspondent account is not the end of First
N ational Bank service. W e also p la ce at
your d isp o sa l the "Eyes and Ears" of our
officers an d em p lo y es w ho know your Sioux
City problem s from years of exp erience in
h an d lin g them.
W e w elco m e e a c h opportunity for friendly
d iscu ssion of m utual problem s. Let us serve
a s your "Eyes and Ears" in Sioux City!

A. G. Sam, President
J. P. Hainer, Vice P resident
J. R. Craning, Assistant Cashier
Fritz Fritzson, V ice Pres, and Cashier E. A. Johnson, Assistant Cashier
J. T. Grant, Assistant Cashier
W. F. Cook, Auditor

At a m eeting of th e board of direc­
tors of th e F arm ers T ru st and Savings
B ank of W illiam sburg, last m onth,
R. A. Elw ood w as nam ed a director
to fill th e vacancy on th e board caused
by the death of Jo h n Haack.
O ther directors of th e b ank are W.
F. H arris, president; O. E. Jones,
cashier; O. G. Jones and George Maas.

County Bankers Meet
The Clayton County B ankers Asso­
ciation m et in Edgew ood recently and
w ere en tertain ed a t a b an q u et in the
K. P. hall. F ifty atten d ed and enjoyed
th e three-course dinner. A group of
school children p u t on an e n te rta in ­
m ent of m usic, vocal and in strum ental.
The speaker of th e evening w as A t­
to rn ey T hom as T racy of M anchester.

Adopt " P A Y C " Plan


The Security T ru st and Savings
B ank of Storm Lake announced last
m o n th a new checking account service
called th e “PAYC” Pay-As-You-Check
plan. It is a new service designed for
those w ho desire th e convenience of
a checking account w ith o u t m ain tain ­
ing a m inim um balance, th e only re ­
qu irem en t being a deposit sufficient
to cover checks w ritten . T here are no
m onthly service fees or activity
charges on these accounts.

G oes to California
Dale Schroeder of Rudd, w ho has
been em ployed at th e R ockford F irst

Northwestern Banker
Federal Reserve Bank of St. Louis

December 19M


S tate B ank since D ecem ber 26, 1935,
and for about tw o and a half y ears has
been assista n t cashier, has resigned to
accept a position as teller w ith th e
B ank of A m erica in California.

Directors Elected
S tockholders of th e M aynard Sav­
ings B ank have elected th e follow ing
directors: Jo h n M eyer, L. D. Rowley,
F. H. Schm idt, E. H. S tew art, A. L.
E vans, Otto S chm itt and Gene C ream ­
er. Officers nam ed by th e d irectors
w ere: Jo h n M eyer, president; L. D.
Rowley, vice president; L. H. Buenneke, cashier; P aul A. H arriso n , a ssist­
a n t cashier.



Citizens N ational B ank “has sold th ree
tim es as m any defense bonds as any
‘Other b an k in th e co u n try .” Mr.
W iem er m ade th e statem en t th a t his
b an k sales of defense bonds w ere
“th ree tim es as large as th e average
b an k of our size in th e co u n try .”
W ritin g us about th e above, Mr. W iem ­
er says “Our bond sales continue to
be satisfactory.”

Jeffries Named Director
M. F. Jeffries, w ell-know n F o rt
Dodge business m an, has been ap-

pointed a director of th e F o rt Dodge
N ational B ank to succeed H. O. Bald­
win, it w as announced recently.
Mr. Jeffries operates th e grocery
bearing his nam e, and has been active
in m any civic and com m unity efforts.
O ther m em bers of th e b a n k ’s board
of directors are F ra n k C. Moeller,
M ayor W. E. Cadwell, L. L. Pfafï, B. J.
Price, George S ch n u rr and E. H. Zuerrer.
Mr. M oeller is presid en t of th e in ­
stitution; Mr. S chnurr, vice president;
Mr. Zueller, cashier, and W. H. W eiss,
assista n t cashier.

Prominent Man Dies
H a rry S. H ow ard, 85, w idely know n
banker, died in Oskaloosa recently
afte r a long illness.
Mr. H ow ard w as nam ed cashier on
the old F arm e rs and T rad ers Savings
B ank here in 1878 and resigned in
1883 to becom e vice p resid en t of th e
M ahaska C ounty State B ank. He w as
m ade p resid en t in 1927, an office w hich
he held u n til he resigned in 1932.

Honor Retiring Officer
W. E. T erry , a ssista n t cashier of
th e F irs t N ational B ank of Denison,
w as honored recen tly w hen th e offi­
cials and em ployes of th e b an k gave
a d in n er in th e p riv ate dining room
of th e H otel Denison. Mr. T e rry re ­
tire d recen tly afte r 26 y ears of con­
tin u o u s service in th e bank.
Floyd E. Page, in p resen tin g Mr.
T e rry w ith an easy chair, spoke of
Mr. T e rry ’s faith fu l service to th e
b an k and th e b a n k ’s custom ers, told
how w eek in and w eek out Mr. T erry
w as alw ays to be found a t his desk,
ever tem pered in his u su al disposition
and courteous m anner, and w ished for
him continued h ealth and com fort.

E. E. W iem er, cashier of the Citizens
N ational B ank, Boone, feels th a t in
ju stice to a few o th er b anks in th e
U nited S tates th a t are selling defense
bonds, correction should be m ade of
a sta te m e n t reg ard in g such sales m ade
by his in stitu tio n , ap p earin g in the
N ovem ber issue of T he N orthwest­
ern B anker. W e said th e re th a t th e




Located in the heart of the Union Stock
Yards and Chicago’s great Central Manu­
facturing District, this 73 year old bank has
developed facilities through serving both
farm er and m an u fa ctu re r that make it
exceptionally qualified to act as Chicago
correspondent for middle western bankers.




Established 1868



M e m b e r F e d e r a l D ep o s'd In s u ra n c e C o r p o r a t io n

Northwestern Banker
Federal Reserve Bank of St. Louis

December 1941


Christmas Display inClinton

P ic tu re d a b o v e is one of th e m ost u n iq u e C h ristm a s l ig h tin g d isp lay s in th e m id d le w e st w h ich is to be seen each
C h ristm a s a t th e re sid en c e of Mr. and Mrs. Frank J. Ite n a t C lin to n , Iow a.
T he b e a u ty o f th is d isp la y
can o nly be a p p re c ia te d th ro u g h seein g it. I t re q u ire s th e la b o r of m an y e le c tric ia n s
a n d c a rp e n te rs ju s t to p re p a re it, a n d th o u sa n d s o f e le c tric lig h t b u lb s are n e c e ssa ry to m a in ta in it.
T he d isp la y is in effect fro m D ecem ber 21 th ro u g h J a n u a r y 1, a n d is v iew ed each y e a r b y th o u sa n d s o f people
th ro u g h o u t th e m id d le w est. So f a r as is kn o w n , th e re is no o th e r d isp la y lik e i t in th e U n ite d S ta te s.
T he d isp la y c a rrie s o u t th e
tru e s p irit o f C h ristm a s, in c lu d in g th e b ir th of C h rist, th e E r a
C h ris tia n ity , an d
o u r a n n u a l re v e re n c e to w a rd th e S av io r. I t is a rra n g e d in sequence, b e g in n in g w ith th e s ta r in th e E a s t, an d th e
v a rio u s color schem es a n d th e a n im a te d m o v in g d isp lay s com bined w ith C h ristm a s c aro ls fro m th e hom e b len d in to
th e g ra n d finale.
T he c ity of C lin to n jo in s w ith M r. a n d M rs. I t e n a g a in th is y e a r, e x te n d in g to all a n in v ita tio n to v is it C lin to n
a n d see th is im p re ssiv e d isp lay .

Holst Heads Association

H e lp the D efense P ro g ra m
by ch o o sin g

w ith Y ear ’R ound U tility
I t is important this year, more than ever before,
to receive full value for Christmas “ gift dollars.”
Purchase gifts possessing genuine usefulness in
home or office. See your “ U.S.” representative or
write for free copy of our gift suggestion booklet!

O M A H A , N E B R A S K A

N. C. H olst, p resid en t of Onslow
Savings B ank, w as elected president
of th e Jones County B ankers Asso­
ciation a t a recen t d in n er m eeting
held a t A nam osa. H e succeeds Charles
M. L u e tt of M onticello.
O ther officers elected include: L. B.
Madson, cashier of Citizens State
B ank of W yom ing, vice president;
M elvin Ingw ersen, a ssistan t cashier of
Onslow Savings Bank, treasu rer, and
L eonard J. W egm an, vice presid en t of
Citizens Savings B ank of A nam osa,
secretary. F a rm e rs Savings B ank of
M artelle w as h o st to th e association at
the m eeting.

Banks Sold or Bought!
quietly, quickly and in a personal manner

Haddam, Kansas

“35 years Practical Banking

Northwestern Banker
Federal Reserve Bank of St. Louis

December 1941


it i Í





Federal Deposit
Insurance Corp.

Frederick M . M orrison, President
W infield W . Scott, Vice President
J. R. A stley, Cashier
E dw ard P. K au tzk y , A ssistant Vice President
F ran k M . Thom pson, A ssistant Cashier
Northwestern Banker
Federal Reserve Bank of St. Louis

December 19M





Wm. J. Carey, a ssistan t cashier, th e ir
y ears of continuous service w ith the
bank: 39, 39, 28 and 23, respectively.
L ongest in continuous service w as
Chas. W. B rim hill—43 y ears—who
died Septem ber 11th, th is year.

Buys Bond Issue
The E m m et C ounty State B ank of
E sth erv ille recen tly bought a $28,000
bond issue to be used in financing a
new a irp o rt a t E sth erv ille. The bank,
one of 11 bidders, offered 1 p er cent
plus $25 prem ium . The bonds m atu re
in 10 years.

Quarterly Increase
H. Donald Campbell, presid en t of
The Chase N ational Bank, has a n ­
nounced th a t the bank has adopted a
plan for th e p aym ent of supplem ental
com pensation for th e quarter-year
com m encing October 1, 1941, to all
officers and em ployees of th e B ank in
th e continental U nited States receiv­
ing an an n u al salary of $6,000 or less,
for th e purpose of assisting th em in
m eeting th e increased living costs.
T his supplem ental p aym ent is to be
com puted a t th e ra te of 6 p er cent on
th e first $1,000 of an n u al salary and

Fifty Years Old
E a rly last m o n th th e Schaller Sav­
ings B ank celebrated th e fiftieth a n ­
n iv e rsa ry of th e organization of th e in ­
stitu tio n . F o r fifty y ears th e b ank
served th e city of S challer and s u r­
rou n d in g com m unity, w ith o u t change
of nam e or reorganization. The length
of service and positions of those on
th e b ank staff are as follows: C. W.
B rim hall, president; G. F. C handler,
vice president; Otis H udson, cashier;



4 p er cent on th e nex t $1,200, w hich
will m ean th a t for th e quarter-year
th e additional p aym ent w ill be at the
ra te of 6 per cent on the first $450 of
salary for th e q u a rte r and 4 per cent
on th e nex t $300, and w ill be payable
im m ediately after th e expiration of
th e q u arter.
T his arran g em en t is not a continu­
ing com m itm ent, b u t th e situ atio n will
be review ed from tim e to tim e.

On A . B. A . Committee
Jo h n C. W right, vice presid en t and
cashier of the A m erican N ational B ank
and T ru st Com pany of Chicago, has
been appointed a m em ber of the Eco­
nom ic Policy Com m ission of th e A m er­
ican B ankers A ssociation for a th ree
year term . The Econom ic Policy Com­
m ission is one of th e senior commit-




Incorporated 1933


Home Office

Des M oines, Iowa

Thi s 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.

Write for Free Estimates

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





W rite to
Secretary and Manager

A d v e r tis in g program s fo r b anks and
tr u st com panies.
L e t us help y ou
g e t “th in g s done.” W r ite u s today.

C o u n s e l

o n

B a n k


Northwestern Banker
Federal Reserve Bank of St. Louis

December 19M














tees of th e A ssociation and serves in
an advisory capacity to the b a n k e rs’
group in m a tte rs of economic and
m o n etary policy. W. R andolph B ur­
gess, vice ch airm an of th e board, N a­
tional City B ank of N ew York, is
ch airm an of th e com m ission.

Investment Banker Dies








F ra n k Filip, 66, active in Cedar R ap­
ids b an king and fra te rn a l circles for
tw o decades, died recen tly afte r a
h e a rt attack a t his hom e in Cedar Rap­
Once a ban k m essenger boy, he rose
to th e position of cashier of th e Se­
c u rity Savings B ank an d la te r becam e
a vice p resid en t of th e Cedar Rapids
N ational Bank. At his death, he w as
head of th e F ra n k F ilip and Company
in v estm en t firm.


A . B. A . at Detroit
The 1942 convention of th e A m eri­
can B ankers A ssociation w ill be held
a t D etroit, M ichigan, it is announced
by H en ry W. K oeneke, p resid en t of
th e A ssociation, w ho is p resid en t of
th e S ecurity B ank a t Ponca City,
Oklahom a. The dates are Septem ber
27 to October 1.

Christmas Savings
The F irs t N ational B ank in St. Louis
w ill m ail checks to talin g $510,571.00
to 10,719 m em bers of its C hristm as
Savings Club th is year. T his is again
th e larg est club in th e h isto ry of th e
bank, w ith 11 per cent m ore m em bers
and 16 p er cent m ore deposits th a n in

Bank Orchestra
The b an k o rch estra of The F irs t
N ational B ank of Chicago celebrated
its te n th a n n iv e rsa ry on N ovem ber 19
w ith a concert on th e m ain floor of
th e bank.
D uring th e decade th e o rch estra has
given 275 concerts, w ith an aggregate
atten d an ce estim ated at m ore th a n a
q u a rte r of a m illion people. W hen o r­
ganized, th e o rch estra h ard ly m erited
th e nam e, since it w as com posed
largely of harm onicas, banjos, guitars,
and p ercussion in stru m en ts. Its de­
velopm ent has been gradual, u n til th e
p re se n t in stru m e n ta tio n is th a t of a
balanced o rch estra w ith a full com ple­
m en t of strin g s, w oodw inds, and
brasses, and n u m b ers fo rty men.
D uring its career th e o rch estra has
played for churches, hospitals, v e te r­
a n s’ and civic organizations, and for
schools. It has n ev er played for a
dance n o r upon any occasion w hen
professional m usicians w ould have
been em ployed. T he o rch estra has
nev er received a fee or o th er com pen­
sation for its perform ances, n o r do
any of th e m usicians receive com pen­
satio n for th e ir services as such. All
are re g u la r em ployees of th e bank.
A m ong th e rep eat perfo rm an ces are
six at th e E d w ard H ines M em orial
H ospital, five at th e annual C hristm as
p a rty for o rphans, a rran g ed by The
C hurch Club of Chicago, five a t the
N o rth Chicago V e te ra n s’ H ospital,
four at th e E lgin S tate H ospital, and
four at th e C en tu ry of P rogress. The
orch estra has also played tw ice at th e
N o rth w e ste rn U n iv ersity and th e
U n iv ersity of Chicago. M ost of th e
o ther concerts have been for schools
and churches.
C hauncey M. W eaver has been m a n ­
ager of th e organization since its in ­



ception and the d irector du rin g m ost
of th e period. Jo h n A ltenburg is now
director, and Jack W egener is com­
m en tator.

Defense Poster
A tw enty-four sheet poster in colors
for outdoor displays for th e use of
b an k s and o th er financial in stitu tio n s
in connection w ith th e ir sale of U nited
States Defense Savings Bonds and
Stam ps, is available for distribution,
according to announcem ent by L. W.
T rester, w ho has charge of th e O ut­
door D isplay Section of th e Defense
Savings Staff, T reasu ry D epartm ent.
T his m erchandising effort aim s at
fu rth e r and continued coordination on
th e p a rt of th e financial in stitu tio n s
and th e T reasu ry D epartm ent in the
sale of D efense Savings Bonds and
Stam ps, and comes as a re su lt of the
expressed desire of th e financial in ­
stitu tio n s to dovetail th e ir ad vertising
cam paigns w ith T reasu ry D epartm ent
M iniatures of th e posters, in colors,
have been sent to approxim ately 12,000 banks, savings and loan associa­
tions, in su ran ce com panies and o th er

financial in stitu tio n s announcing th e
availability of th e posters and describ­
ing the procedure by w hich th ey m ay
be obtained.
Mr. T rester, w ho is donating his
services, is a ssistan t to th e p resid en t
of th e G eneral Outdoor A dvertising
Company, Inc. The design of the
p oster w as provided by th e Mass M ar­
k etin g In stitu te, of Chicago.

Drop in Consumer Credit
P relim in ary statistics show ing a
drop of at least 25 per cent in con­
sum er credit loans by banks for in­
stalm en t financing of durable goods
indicate th a t no fu rth e r contraction
in term s for these loans should be or­
dered by th e Federal R eserve B oard
u n d er R egulation W a t th is tim e, it
w as asserted recently by W alter B.
F rench, deputy m anager of th e A m er­
ican B ankers A ssociation, in an ad­
dress before a state-w ide consum er
credit conference held by Ohio banks.
F ig u res subm itted by 200 banks in
all p a rts of the co u ntry to the A. B. A.’s
C onsum er C redit D epartm ent, Mr.
F ren ch declared, “indicate th a t th e re ­
duction for the m o n th of Septem ber

1900— Prophetstown, Illinois— 1942

Manufacturers of the world's best hand and power lawnmowers. National
distribution through retail merchants. Employing more than 200 people in
the world's only




ú & n ío n , c9 cri4 S £ i
M e m b e r Fe d e ra l Reserve
System a n d Fe d e ra l D ep osit
In su ran ce C o rp o ratio n

Northwestern Banker
Federal Reserve Bank of St. Louis

December Í9M


com pared w ith th e previous S eptem ­
ber last y e a r is su b stan tial—about 25



Addressing Machines . . . Adding Machines
Duplicating Machines . . . Electro Copyist
Equipment. . . O zalid Whiteprint Process . . .
Typewriters . . . Ediphone Voice Writing.

P R I N T E R S — B O O K B I N D E R S — OF F I CE O U T F I T T E R S


Northwestern Banker
Federal Reserve Bank of St. Louis

December Í9M




p er cent of th e to tal volum e, and m ore,
for in stalm en t financing of durable
“T hese figures m ay be inadequate,
b u t all th e indices we have available
point to a su b stan tial reduction—
enough so th a t no fu rth e r contraction
should be m ade in term s p erm itted
u n d er R egulation W u n til sufficient
tim e has elapsed to gauge accurately
how far p resen t regulations have af­
fected volum e,” he asserted.
“W hile it is recognized th a t in tim es
of national em ergency m any sacrifices
are necessary for th e com m on good,
we believe it is im p o rtan t th a t no
reg u lations be issued th a t w ould w ork
an undue h ard sh ip on e ith er lender
or borrow er. In stalm en t lending is
now a definite p a rt of our econom y
and hu n d red s of th o u san d s of consum ­
ers have becom e accustom ed to using
some form of consum er credit periodi­
cally to supply th e ir needs in goods
and services.
“Too g reat a contraction at any tim e
w ould operate p rim arily ag ain st those
of sm all incom e,” Mr. F ren ch asserted.
“The regulations issued th u s far by the
F ed eral R eserve Board appear to be
fair and should re su lt in no undue
h ard sh ip to eith er borrow ers or lend­
ers, and yet, in th e light of c u rre n t
term s, th e regulations do rep resen t
definite curtailm ent.
“B ankers have alw ays recognized
th e principle th a t it is m ore desirable
to get out of debt th a n into it. As a
m a tte r of fact, a few sh o rt y ears ago,
we w ere criticized severely for ad­
h ering to th a t principle. It is a gospel
we have been preaching to th e con­
su m er for years. T he b an k er know s
th a t th is philosophy is m ore im p o rtan t
today th a n ever. I t is a definite p a rt of
our defense effort. W e m u st keep it
in m ind every m inute of our business
day, n ot only in connection w ith con­
su m er credit, b u t also in connection
w ith every loan we m ake. T his is a
tim e of em ergency; it is a tim e of
liberal lending for defense needs and
conservative lending for all o th er p u r­
poses. H ow ever, m oney m u st be m ade
available for those w ho need it.
“An erroneous im pression is p rev a­
len t in some sections of the co u ntry
th a t should be corrected. M any b an k ­
ers re p o rt th a t th e people in th eir
com m unities are of th e opinion th a t
R egulation W elim inates in stalm en t
credit; o thers are h e sita n t about ask ­
ing for needed financial relief because
th ey th in k it is unpatriotic. No one
need suffer because of th e re q u ire ­
m ents of R egulation W. Its p rovi­
sions are now such th a t th e credit

needs of th e average consum er can
be w ell tak en care of,” he declared.
“The m ost im p o rtan t factor in the
defense program is durable goods and
th e m ost effective w ay of saving
needed m aterial is to lim it production,
w hich is already being done. B ut the
goods th a t are m ade available should
be offered to consum ers on a paym ent
basis th a t is w ith in th e m eans of the
g reatest num ber, not only those in the
high incom e brack ets.”

Iow a’s L argest B u sin ess T raining 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. 44221


O ldest an d L argest
in D es M oines
411 6th Ave.
Pres, and Sec.

D ial 4-7119
Asst. Sec.

Member Federal Home Loan Bank System




C h a r l e s E . W a l t e r s C o m p a n y .........................
J a y A. W e l c h ...............................................................
W e s s l i n g S e r v i c e s ................................................
W e s t e r n M u t u a l F i r e I n s u r a n c e C o ..........

New Enlarged Booklet
A new edition of “F in an cin g th e
M odern W ay,” is released by DouglasG uardian. T he form er edition h ad ex­
tensive circulation am ong banks, m an ­
u fa c tu re rs and d istrib u to rs. I t served
as a textbook on field w arehousing,
n o t only in m any banks, b u t in col­
leges w ith com m ercial courses delving
into th e practical as w ell as th e o re ti­
cal aspects of finance. T he new issue
of “F in an cin g th e M odern W ay ” is
larg er and m ore com plete, w ith over
35 illu stratio n s, m ostly of field warehouseable in v en to ry of vario u s kinds.
A m ong th e subjects covered in th e
48-page pocket size book are: L ist of
com m odities su itable for field w a re ­
housing, w h a t field w areh o u sin g is
an d how it operates, typical illu stra ­
tio n s of field w arehousing, w h a t b a n k ­
ers and in d u stria lists say of th is m od­
ern aid to financing, ty pical exam ple
of field w areh o u sin g cited in th e expe­
rience of a p ack er of canned goods;
su b sid iary w arehousing, a practical
exam ple of a field w areh o u sin g receipt;
cou rt decisions on th e valid ity of field
w arehousing; un ifo rm w arehouse re ­
ceipts act; legal lim its on w arehouse
loans by states.

FD IC Report
R esources of th e 584 in su red com ­
m ercial b an k s in th e state of Iow a to ­
taled $811,947,000 on Ju n e 30, 1941, ac­
cording to a su rv ey m ade public re ­
cen tly by th e F ed eral D eposit In s u r­
ance Corporation.
D eposits in th e in su red b anks w ere
listed as $738,263,000. D em and deposits
of th e la te st call date am ounted to
$501,074,000 and tim e deposits totaled
Loans and discounts of th e rep o rtin g
ban k s am ounted to $347,710,000, an in ­
crease of $7,129,000 over th e Ju n e 29,
1940, total.
D irect and g u aran teed obligations of
the U nited States g o v ern m en t listed
by th e Iow a b anks am ounted to $110,395,000 on Ju n e 30, 1941. O ther secu ri­
ties to taled $81,321,000.
Loans and discounts of th e 13,423 in ­
su red com m ercial b anks th ro u g h o u t
th e co u n try totaled $19,913,000,000, an
increase of $2,899,000,000, or 17 per
cent over th e am o u n t rep o rted Ju n e
29, 1940. D eposits increased from th e
$58,425,000,000 rep o rted th e previous
year to $65,617,000,000, th e h ig h est fig­
u re since in au g u ratio n of deposit in ­

Pass the Chili, Billy
She: “W h at w ere you doing after
th e accident?”
He: “Scraping up an acq u ain tan ce.”

Index to

J lc w u e A i G o & 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 ...... 59
A l l i e d M u t u a l C a s u a l t y C o .......................... 25
A. C. A l l y n a n d C o m p a n y ............................. 28
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 ............ 56
A m e r i c a n N a t i o n a l B a n k a n d T r u s t C o . . 32


Hawkeye Mutual Hail

B a n k e r s T r u s t C o m p a n y ........................... 48-4 9
H o t e l B i s m a r c k ................................................. 45
H . B. B u c k h a m a n d C o .................................. 54
C e n t r a l H a n o v e r B a n k a n d T r u s t C o .. . .
C e n t r a l N a t i o n a l B a n k a n d T r u s t C o .. . .
C h a s e N a t i o n a l B a n k .....................................
C i t y N a t i o n a l B a n k — C l i n t o n ................... 55
C i t y N a t i o n a l B a n k a n d T r u s t C o ......... 31
C o n tin e n tal-Illin o is N a tio n al B a n k and
T r u s t ....................................................
C o n tin en tal N ational B a n k — L in c o ln ...

Our policy provides a maximum
assessment of 2'/2% in Zones
One and Two—and 3*/2 % in
Zone Three (Western Iowa).

Insurance Association

Carver B ld g.

F ort D o d g e, Iow a



P . E . D a v e n p o r t a n d C o m p a n y ............ 4 5-5 1
D e L u x e C h e c k P r i n t e r s , I n c ..................• • • • 38
D es M oines B u ild in g , L o a n a n d S a v in g s
A s s n ............................................................................... 56
D r o v e r s N a t i o n a l B a n k ...................................... 42

J l
T e d e r a l Sa v in g s

E m p l o y e r s M u t u a l C a s u a l t y C o .................... 25


F e d e r a l I n t e r m e d i a t e C r e d i t B a n k ............. 29
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 ............... 50
F r a n k e l C l o t h i n g C o m p a n y ........................... 57
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 u r F ed era lly In su red u p to
$ 5 ,0 0 0 savings accou n ts are
th e so lu tio n to y o u r in v est­
m en t and trust pro b lem s.
C urrent divid en d 3^2 p ercen t.


Statement on request.

H a w k e y e M u t u a l H a i l ........................................ 57
H o m e F e d e r a l S a v i n g s a n d L o a n .................. 57
H o m e I n s u r a n c e C o ...............................................

414 Sixth Avenue
Des M oines, Iowa


I o w a - D e s M o i n e s N a t i o n a l B a n k ...............



J a m i e s o n a n d C o m p a n y ...................................... 29

T h e O n ly S t o r e


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


In D e s M o in e s

G e o r g e L a M o n t e a n d S o n ...................................
L e s s i n g A d v e r t i s i n g C o .....................................
L ive S to ck N a tio n a l B a n k — C h ic ag 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 ioux C ity ..


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


N a t i o n a l S u r e t y C o r p o r a t i o n ......................... 24
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 u r a n c e . . 24

O m a h a N a t i o n a l B a n k ........................................



W h ere Y ou
C an Buy
T E X -W E A R
or T A IL S
fo r th e m a n y

P h i l a d e l p h i a N a t i o n a l B a n k .........................
P u b l i c N a t i o n a l B a n k o f N e w Y o r k ..........


h o lid a y p a r t i e s

S t. P a u l F e d e r a l S a v i n g s a n d L o a n ..........


y o u ’r e g o in g to!

T h e T o d d C o m p a n y ................................................ 31

U n ited S ta te s C heck B ook C o m p an y . . . .
U n i t e d S t a t e s N a t i o n a l B a n k .........................


V a l l e y S a v i n g s B a n k ...........................................


Second Floor

Northwestern Banker
Federal Reserve Bank of St. Louis




In the Directors' Room
Passed Out
One: “I ’d like to b u y a b rassiere.”
O ther: “W h at b u st?”
One: “N u th in ’, it ju s t w ore o u t.”

A Last Report
A fa rm e r n e a r C orning, K ansas,
w hose son w as an applicant for a posi­
tion u n d er th e governm ent, b u t w ho
had been rep eated ly tu rn e d down,
“W ell, it’s h a rd luck, b u t Jo h n has
m issed th a t civil-service ex am ination
again. It looks like th e y ju s t w on’t
have h im .”
“W h at w as th e tro u b le?”
“Well, he w as sh o rt on spellin’ and
geography, and m issed p u rty fu r in
m athem atics.”
“W h at is he going to do about it? ”
“I dunno. Tim es is m ig h ty hard, and
I reckon h e ’ll have to go back to
teac h in ’ school for a liv in ’.”

Toddler's Menu
“H ow are you feeling today?” asked
th e doctor.
“N ot a t all w ell.”
“H um ph! Did you tak e th e m edicine
I prescribed for you?”
“Ah, yes—and th e diet? I th in k I
told you to eat only such food as could
be easily digested by a three-year-old
child. Did you follow m y in stru c ­
tion s?”
“Yes, doctor. I ate tw o hand fu ls of
m ud, a piece of orange peel, a shoe
butto n , and a couple of cig arette ends!”

W e Wonder, Too
“Daddy, m ay I ask you a question?”
“Yes, son, b u t it m u st be a sh o rt
“If a doctor is doctoring a doctor
does th e doctor doing th e doctoring
have to doctor th e doctor th e w ay th e
doctor being doctored w an ts to be doc­
tored, or does th e doctor doctoring th e
doctor, doctor th e doctor th e w ay he
usually doctors?”

“My w ife ra n off w ith th e b u tle r.”
“W h at a sham e th a t is!”
“I ’m satisfied.
F u rth e rm o re , m y
house b u rn t dow n and I h a v e n ’t an y
in su ran ce.”
“Too bad.”
“I ’m satisfied; and to cap ev ery th in g
off business is so bad I ’m going b a n k ­
ru p t, b u t I ’m satisfied.”
“H ow is th a t possible w ith all y o u r
m isfo rtu n es?”
“I sm oke C hesterfields.”
Northwestern Banker
Federal Reserve Bank of St. Louis

December 19^1

A Diplomat
Two colored m en w ere discussing
th in g s in general. One w as telling
how h e ’d ju st got a job as a P ullm an
p o rte r and th a t his conductor had told
him he m u st tre a t th e passengers w ith
“W h at am dis here ta c t stuff?” he
w an ted to know.
“L et me en lighten y o u r intelleck,
b ro th a h ,” said th e o th er and w iser
darkie. “Once Ah w as w o rk in ’ up at
de W aldaw f hotel. One day Ah w as
clean in’ up and happens to open a
bath room door and dere w as a lady
s ittin ’ in de tub.
“Ah sh u ts de door quick and Ah
says 'Beg yo’ pahdon, suh!’
“W ell, d at ‘beg yo’ p ahdon’ w as jes
politeness, b u t de ‘su h ’—d at w as ta c t.”

him . Down w ent th e m an and over
w en t th e bull, up came the m an and
back cam e th e bull, till th e m an up in
th e tree got excited and called down:
“You crazy fool, w hy don’t you stay
in th a t hole? You’ll get th a t bull so
m ad h e ’ll keep us here all sum m er.”
“Crazy fool yourself,” yelled the
m an below, “th e re ’s a b ear in th a t

They All W ere
A m in ister preached a serm on on
th e d u ty of wives.
“T here is, alas, a w om an in this
congregation w ho is often guilty of
disobedience to h er husband. To m ake
an exam ple of her, I w ill fling m y book
a t h e r head.”
He lifted up his book and in stan tly
every m arried w om an ducked.

Blastic Surgery
She: “Do you th in k th a t plastic
su rg ery w ould im prove m y featu res?”
He: “No.”
She: “T hen w h at do you suggest?”
He: “B lasting.”

He had tak en pains, w hen he ap ­
plied for w ork, to assure th e farm er
th a t he nev er got tired. W hen his
new em ployer w en t to th e field w here
he had p u t the m an a t w ork, he found
him lolling on his back u n d er a tree.
“W h at does th is m ean?” asked the
farm er. “I th o u g h t you w ere a m an
w ho nev er got tired ?”
“I don’t,” said th e h ired m an, calm ­
ly. “T his doesn’t tire m e.”

Literally True
G entlem an (to friend w ith gout):
“Your pain m ight be w orse. You
should bear it w ith C hristian resig n a­
tio n .”
F riend: “I can assure you I ’m not

Not So Crazy
Once upon a tim e tw o m en w ere
crossing a large field. W hen th ey w ere
rig h t in th e m iddle of th e field, a big
bull cam e charging tow ard them .
One of th e m en found a tree and
clim bed it as rap id ly as possible. The
o th er couldn’t get to the tree in tim e,
but, seeing a large, sociable-looking
hole in th e ground, he jum ped into it.
T he bull p re tty n early got him as
he w ent down, b u t ju st m issed him
and jum ped over th e hole. The m an
cam e up again like a jack-in-the-box,
th e bull gave a sn o rt and a jum p at

Hard to Please
A farm er had a son a t college. At
th e end of the first y ear th e son came
hom e in high feather. He stood sec­
ond in his class.
“Second?” said the father. “Second!
W hy d idn’t you stand first? W h at do
you go to college for?”
The young m an re tu rn e d for his sec­
ond year, determ ined to w in first place.
At th e end of th e y ear he retu rn ed
hom e and announced his success.
The fath er looked at him for a few
m inutes in silence, th en shrugged his
shoulders, and said: “At th e head of
the class, eh? Well, it can’t be m uch
of a college, afte r all.”

The Test
An A m erican film producer w as se­
lecting a chief for his scenario staff.
The producer insisted th a t th e suc­
cessful applicant m u st be a college
graduate. He looked w ith favor upon
one applicant, and asked if he had had
a college education. The an sw er was
in th e affirmative.
“Show me your diplom a,” dem anded
th e producer.
T he applicant tried to explain th a t
it w as not custom ary for college grad­
uates to carry diplom as around w ith
them .
“W ell, th e n ,” dem anded th e produc­
er, “say me a big w ord.”

W e s t r iv e to b u il ]





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ents several important advantages . . . a



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a tu H

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