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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 https://fraser.stlouisfed.org 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! A CEDAR R A P ID S BA N K CEDAR RAPIDS SERVICING A LL IOWA MERCHANTS NATIONAL BANK OFFICERS 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 Iowa 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A M erry Christmas j 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 3X. CENTRAL NATIUNAL BANK u n icl ^ J r a â t d co DE S m j i c u i Lj MOI NE S Member Federal Deposit Insurance Corporation N orthw estern B anker https://fraser.stlouisfed.org 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. Before 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5 t 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 duction. 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. THE CHASE NATIONAL BANK O F T HE C I T Y O F N E W Y O R K Member Federal Deposit Insurance Corporation N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 19M 6 ■ ¡■ 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 :Vie C h ic a g o IN Flam es — TherushforlifeoverR andolphStreetBridge — fro m a sketch by John R . Chapin cotrha-g1^ 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 I T he H ome Insurance C ompany https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ☆ THE HOME ☆ N E W FIR E A U T O M O B IL E Y O R K M A R IN E IN S U R A N C E DECEM BER / N O RTH W ESTERN 19 4 1 NUM BER 653 FO R TY-SIX TH Y E A R Oldest Financial Journal West of the Mississippi River IN THIS ISSUE Editorials Across the Desk from the Publisher. C LIFFO RD DE PUY 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 Editor J. STUART D A V IS 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 11 12 13 14 15 16 17 18 20 Insurance 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 N EW Y O R K O FFIC E Frank P. Syms Vice President 505 Fifth A ve. Suite 1202 Telephone MUrray Hill 2-0326 M IN N E A P O L IS O FFIC E 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............................................... ................................ 33 33 35 37 38 39 41 43 44 45 47 52 The Directors* Room A Few Short Stories to Make You Laugh. M EM BER Audit Bureau of Circulations Financial Advertisers Association https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Across the Desk From the Publisher Docs Inflation Doom the Dollar? 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 https://fraser.stlouisfed.org 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 Shopkeepers friends in my b a n k e r Los Angeles y j o 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 9 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 cupied. 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 recognized.” 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. Leadership 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 1911 10 N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 19bl 11 W h a t C an Bank ers Do In Their O w n Communities To Help Control 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. I 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 follows: “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. perished! “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.” E. 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: inflation: “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 uates. “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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 12 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 follows: 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 AM O U N T R E G U L A R L Y I N T H E 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 P N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 1911 B A N K E A C H W E E K OR E A C H M O NTH. 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 ? “H E C AN W HO T H IN K S H E CAN.” V ery tru ly yours, YOUR B A N K E R . 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, YOUR B A N K E R . 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, YOUR B A N K E R . 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. 3. T h at th e F ed eral G overnm ent w ill lead th e w ay.—THE END. 13 Coin Banks A re His Hobby 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. D 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 19hl After Property Is Fully Paid For, Can Recovery 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? A 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber t9 b l These and Other Timely Legal Questions Are Answered By the LEGAL DEPARTMENT 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 desires. 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 proper? 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 15 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 troversy. 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) W IL L IA M B. H U G H E S 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 H 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 Association! N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 19hl 16 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 ”: A 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 tration, 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 flation. 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 Estate 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 1941 17 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) banker. My value th is a s s e t ................$ 125 I 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 H O T SUE 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 Iowa. 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 $ 50 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 him. 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 old $ 600 T otal . .. . $1,600 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 guaranty. 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 tion. “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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 1941 18 News and OF B A N K IN G THE V iews W O RLD 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. I i 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 dollars. 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. A nother 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 again. N orthw estern B anker https://fraser.stlouisfed.org 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”. Inference 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 ?” 19 Equipped F o r A ll B A N K IN G N eed s Member Federal Deposit Insurance Corporation N orthw estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 19M 20 How Vour Bank Can Profit 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 H N orthw estern B anker https://fraser.stlouisfed.org 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 lines. 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. 21 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— Transit Collection Credit Investment Advisory Transfer Safekeeping 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 . . . P H IL A D E L P H IA NATIONAL BANK O R G A N IZ E D 1803 PHILADELPHIA, PA. Capital, Surplus and Undivided Profits $ 45 , 000,000 Member of Federal Deposit Insurance Corporation N orthw estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 19bl 22 W hat does W estern Mutual s Extra Service M e a n to Y o u ? ★ Western Mutual agents build more business on the EXTRA SERVICE that Western Mutual's trained field men supply. You, too, will find that EXTRA SERVICE means extra premium income for your agency. Investigate just how much extra a Western Mutual contract can mean to your premium income. ★ L egal R eserve— N o n -A ssessab le Fire and Auto Policies Standard Policy Forms ★ Western Mutual 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 https://fraser.stlouisfed.org 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 — and 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. 1. T he ag en t w ho w ro te th e b u si T here is ju st one form of insurance ness. 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 3. 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. an accident policy issued by m ost com 4. 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 O 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 cause: 1. People w on’t buy if asked. 2. T h at you have not th e rig h t prod uct. 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber i9M 24 3. 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 policyholder. Life In su ran ce Com pany of M inne “Most of these additional group ef apolis. 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. Northwestern N a t i o n a l LIFE IN S U R A N C E O. J . A rnold, P resid en t COM P ANY I JGs I s e c u RÎ t y ] J i A FIRST N orthw estern B anker https://fraser.stlouisfed.org 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. The 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 Associations. The convention’s first general ses- Fidelity & Surety Bonds Blanket Bonds Burglary & Forgery Insurance NATI ONAL SURETY CORPORATI ON VINCENT CULLEN President HAROLD 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. 25 Company. He w as p resid en t of th e com pany u n til he re tire d last Decem ber. 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. R EMPLOYERS MUTUAL CASUALTY COMPANY DES MOINES 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 ness. 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. ALLIED M U T U A L CASUALTY COMPANY Harold S. Evans, President Hubbell Bldg. Des Moines, Iowa N orthw estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Y "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 giving. 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 evening. 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: CADILLAC, BUICK, OLDSMOBILE, PONTIAC, CHEVROLET 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. GENERAL MOTORS INSTALMENT P L A N These notes are available, in limited amounts, upon request. EXECUTIVE OFFICE N E W YORK N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BRANCHES IN PRINCIPAL CITIES D ecem ber 19M w. J. P IC K E R IN G 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 purchased. 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 aging”. 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. 27 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 JA M E S H. CLARKE 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. Chicago 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 19f l 28 To Sell U. S. Savings Bonds C O IN BANKS (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 . L E G A L DEPARTMENT (C ontinued from page 15) BONDS 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 https://fraser.stlouisfed.org 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 29 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. NO BOOM IN FARM REAL ESTATE (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 sive.” 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. JAMIESON & COMPANY Stocks Bonds Grain q £ )£ Cotton Butter Eggs C om m odity Brokers • Members N ew York Stock E xchange and Other Principal Exchanges • ST. PAUL — MINNEAPOLIS • G overnm ent — M unicipal Corporation Bonds • CHARLES C. RIEGER Manager 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. D efense THE FEDERAL INTERMEDIATE CREDIT BANKS SPRINGFIELD, MASS. LOUISVILLE, KY. ST. PAUL, M IN N . HOUSTON, TEX. BALTIMORE, MD. N EW ORLEANS, LA. OMAHA, N EB. BERKELEY, CAL. COLUMBIA, S. C. ST. LOUIS, MO. WICHITA, K A N . SPOKANE, WASH. 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 30 “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 . FIN A N C IN G FARM A U C TIO N SALES (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 sale. 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 future!” 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. 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. CENTRAL HANOVER BANK AND TRUST COMPANY NEW YORK C H A R LE S H. B R Y A N T MEMBER FEDERAL DEPOSIT Northwestern Banker December 19bi https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis INSURANCE CORPORATION 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 president. 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. 31 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 ASNAP! ITS C 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 bank. 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 . . . T O SAVE TIME WITH BLUE STREAK VOUCHERS AND CHECKS • 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 relations. 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. C it y N a t io n a l AND TRUST 2 0 8 S O U T H COMPANY B of L A S A L L E ( Member Federal Deposit Insurance Corporation) ank Chicago S T R E E T C ity ---------------------------------State.________________ By____________________________________________ N .W .B . t :j j »A N Y , I EBB57 NE W Y O R K ROCHESTER I y Y N 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1 2 -4 1 D ecem ber 19^1 32 M IN N E S O T A N EW S 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 friends. 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. THE GREATEST CHANGE OF ALL 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. O 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 bago. 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 AM ERICAN NATIONAL BANK AN D TRUST CO M PAN Y OF CHICAGO 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 ;SiPS: W O U R B U S I N E S S I S Northwestern Banker December 1941 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T O H E L P B U S I N E S S 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. 33 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. S. 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. M IN N E S O T A NEW S O. G. JO N ES President 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. W ILLIAM DUNCAN, Jr. Secretary Minneapolis 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 president. 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. Declare Dividend 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December 194-1 34 •MINN ESOTA 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 NEWS 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 C H IC A G O M em ber F ederal D e p o sit In su ra n ce C orporation Northwestern Banker https://fraser.stlouisfed.org 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. Dr. 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. 35 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 pany. 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 another. 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. LEGAL INVESTMENT F or INSURANCE COMPANIES A ccounts In su red u p to $ 5 ,0 0 0 Convenient . . . Safe 3 % (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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December 1941 36 • MINNESOTA NEWS • 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 ner. sippi Valley C learing H ouse Associa tion. 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 Kasson. Livestock Financing Meet at Spring Grove O F F IC E R S 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 D IR E C T O R S 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 LIVESTOCK NATIONAL B A N K S I O U X C I T Y , IO W A Northwestern Banker https://fraser.stlouisfed.org 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 attending. 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. 37 SOUTH D A K O T A NEW S L. T. M ORRIS President 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 loan.” Construction Contract Awarded 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. GEORGE M. STARRING Secretary-Treasurer Huron 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 City. 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 building. 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 lows: 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. Noon 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 Association. A g ricultural C redit D ata and C redit F iles—L. L. Lillibridge, B urke, P resident, B urke State Bank. Noon 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 Staff. T our of New D airy M ilking U nit —D airy H u sb andry Staff. A djournm ent. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December 19^1 38 1941 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 ings. 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 Point. 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 million. G roup II at Sioux Falls (attendance 144). 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 ison. G roup III at M itchell (attendance 78). ’ Convenient stub register for filing record of transaction. CUT YOUR CHECK COST 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. II A V t U I bO IL U P la n ts a t NEW YORK CLEVELAND m m . CHECK w PRINTERS, Lithographers a n d Printers Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December 1941 CHICAGO K A N SA S CITY s t . PAUL I NC. -i 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 chell. Group IV at W atertow n (attendance 109). 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 deen. L. 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 87). 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, 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 convention. 39 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. NORTH DAKOTA J. I. HEGGE President Hillsboro NEWS Former Banker Dies C. C. WATT AM Secretary Fargo 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December 19M We Buy Eligible CORN LOANS Prompt Service to Banks 7 & U N IT E D ST A T E S *7 la te o n a f BAN K M E M B E R F E D E R A L D E P O S IT Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December 19'tl o / (9 m IN S U R A N C E C O R PO R A T IO N a A a 41 NEBRASKA NEWS O. A. R IL E Y President 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 Secretary Omaha 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 G. 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December Í9M 42 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 ciation.” 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- ft w W . R O SS M cC A IN ^ l e e f a ì i ^ à a n d fy ità A e à fa i 'J Ÿ e w MEMBERS, FEDERAL DEPOSIT INSURANCE CORPORATION DROVERS N ATIO NA L BANN DROVERS TRUST 0 SA VIN GS BANN U N I O N S T O C K Y A R D S , i https://fraser.stlouisfed.org 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. C H I C A G O 1 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 43 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 ities.” 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 likes: 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 years. 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 hole-in-one. 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 N 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 Bank. 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. A. 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, club. 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 44 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 G 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 friends. LINCOLN Member Federal Deposit Insurance Corporation Northwestern Banker https://fraser.stlouisfed.org 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. 45 BRIEF NEBRASKA NEWS 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 1930. 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. F R S I E E R N D V I H L Y C E "A 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 convenience. 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. THE P u b l ic N a t io n a l AND TRUST COMPANY OF NEW YORK 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 sistance. P o lic y — To cooperate with out-of-town hanks rather than compete for business which is rightfully theirs. OTTO K. EITEL, MNG. DIR. E ST A B L IS H E D 1 9 0 8 YOUR STATE BANKERS ASSOCIATION OFFICIAL SAFE, VAULT AND TIMELOCK EXPERTS F. E. DAVENPORT & CO. MEMBER NEWYORK CLEARING HOUSE ASSOCIATION FEDERAL DEPOSIT INSURANCE CORPORATION OM AHA Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December 19M 46 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. T 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. 1941 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. 1933 Capital Loans Deposits W e Congratulate $ 616,038.60 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. 1907 Capital Loans Deposits The Live Stock National Bank ------------------------------------ O M A H A -------------------------------------M EM BER Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December 19kl FEDERAL D E P O S IT IN S U R A N C E C O R P O R A T IO N - $100,000.00 62,164.35 81,123.50 47 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 *. IOWA NEWS A. T. DONHOW E President FRANK W ARNER Secretary 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 ago. 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 B. 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 Co. 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 bank. 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, 1938. 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December 19^1 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 50 • IOWA 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. NEWS • 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 and 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 C. 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 MEMBER FED ER AL DEPOSIT INSU R A N C E CORPORATION IN SIOUX CITY 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December 19M 51 • IOWA 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. NEWS • 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. Correction 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 YOUR STATE BANKERS ASSOCIATION OFFICIAL SAFE, VAULT AND TIMELOCK EXPERTS F. E. DAVENPORT & CO. OM AHA CLOSE TO BOTH INDUSTRY AND AGRICULTURE 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. LIVE STOCK L BANK OF N AT I O N A CHICAGO Established 1868 UNION STOCK YARDS 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December 1941 52 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 of 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 1941 CHRISTMAS GIFTS 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! U N IT E D S T A T E S C H E C K B O O K CO. 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 JAY A. W ELCH Haddam, Kansas “35 years Practical Banking Experience” Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December 1941 53 it i Í 9 4 2 . Member Federal Deposit Insurance Corp. ALLEY AVING BANK 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December 19M 54 -• NEWS •— 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; <"oos IOWA 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- M ERCH ANTS MUTUAL Cs AND BONDING COMPANY Incorporated 1933 O*>N Home Office VALLEY BANK BUILDING Des M oines, Iowa FOR BANKS 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. A N D © C O M P A N Y © 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 D o n B a n k R W ESSLIN G , PRESIDENT Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December 19M P u b l i c R e l a t i ^A/[oins,±, 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 E. H. W ARNER DES M O I N E S JO H N C. W R IG H T o n s ocva 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 ids. 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. 55 • IOWA 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 1940. 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 NEWS • 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 objectives. 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 ECLIPSE LAWNMOWER COMPANY 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 "PROPHETSTOWN" THEY BANK WITH FIFTH AVENUE SOUTH-226- CLINTON, IOWA BANK 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December Í9M 56 -• com pared w ith th e previous S eptem ber last y e a r is su b stan tial—about 25 OFFICE MACHINES Addressing Machines . . . Adding Machines Duplicating Machines . . . Electro Copyist Equipment. . . O zalid Whiteprint Process . . . Typewriters . . . Ediphone Voice Writing. FRIDEN C A L C U L A T O R S 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 S T AT I ONE R S — B U S I N E S S MACHI NES G R R n D RVEfl UE RT FOURTH Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December Í9M IOWA NEWS •— p er cent of th e to tal volum e, and m ore, for in stalm en t financing of durable goods. “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 DES MOINES 10th and Grand Tel. 44221 DES MOINES BUILDING-LOAN & SAVINGS ASSOCIATION O ldest an d L argest in D es M oines 411 6th Ave. ELMER E. M ILLER Pres, and Sec. D ial 4-7119 HUBERT E. JAMES Asst. Sec. Member Federal Home Loan Bank System 57 • IOWA NEWS • W 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 $237,189,000. 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 surance. 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 Advertisers J lc w u e A i G o & t A 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 B 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 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 ..................................... 5 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 30 3 Carver B ld g. F ort D o d g e, Iow a 34 44 D 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 _ HOME J l T e d e r a l Sa v in g s E 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 AND LOAN ASSOCIATION OF DES MOINES F F e d e r a l I n t e r m e d i a t e C r e d i t B a n k ............. 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 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 .............. 26 — 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. H 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 ............................................... 6 414 Sixth Avenue Des M oines, Iowa I I o w a - D e s M o i n e s N a t i o n a l B a n k ............... 60 J 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 Iv K o c h B r o t h e r s .......................................................... 56 In D e s M o in e s L 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 .. 4 56 51 46 36 M 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 ................................... 54 2 56 N 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 O m a h a N a t i o n a l B a n k ........................................ 19 I* W h ere Y ou C an Buy T E X -W E A R TUXEDOS 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 .......... 21 45 h o lid a y p a r t i e s 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 .......... 35 y o u ’r e g o in g to! T T h e T o d d C o m p a n y ................................................ 31 IT 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 ......................... 52 40 V V a l l e y S a v i n g s B a n k ........................................... 53 Second Floor FRANKEL'S Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 42 52 54 22 December 58 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, said: “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?” “Yes.” “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 one.” “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?” Irony “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 https://fraser.stlouisfed.org 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 tact. “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 hole!” 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.” Viewpoint 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 kicking.” 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 ] T H E W O R LD ’S B E S T A D D IN G M A C H IN E S AND OUR USERS BELIEVE WE DO i ALLEN WALES ADDING MACHINE CORPORATION 444 Madison Avenue, New York, N. Y. SALES AND SERVICE IN 4 0 0 AMERICAN CITIES AND IN 4 0 FOREIGN COUNTRIES https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis DES MOINES SERVICE... 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