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*
D ECEM BER
1942
R. F. C L A R K E
P r e s id e n t , B a n k in g H o u s e of A . W . C la rk e . P a p il lio n
P r e s id e n t . N e b r a s k a B a n k e r s A s s o c ia tio n
BUY
U N IT E D
STA TES
AND
STAMPS
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Federal Reserve Bank of St. Louis
Pictures and Paragraphs from the Nebraska Convention
Pages 12 -13 -14-15
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SERVICE to your LIKING
Smoothly, like well lubricated gears, correspondent
activities at this institution mesh quietly with the service
of banks we serve.
Routine details are completed without delay and spe
cial needs are met with precision and judgment.
You should have a correspondent connection here,
and you will find our service to your advantage.
A CEDAR RAPIDS BANK
'J l i
SERVICING A LL IOWA,
MERCHANTS
t
CL
NATIONAL BANK
.M
Stijte
à f Ifti;
tf.
er
m
M'
$€
S
O FFIC E R S
J ames E. H amilton, Chairman
S. E. COQUILLETTE, President
H. N. B oyson, 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 mith , Vice President
J ohn T. H amilton II, Vice President
R. W. Manatt , A sst. Cashier
L. W. Broulik, Asst. Cashier
P eter B ailey, Asst. Cashier
R. D. B rown, Asst. Cashier
O. A. K earney, A sst. Cashier
Stanley J. Mohrbacher, Asst. Cashier
E. B. Zbanek , Building’ Manager
Cedar R apids
Io w a
Member Federal Deposit Insurance Corporation
N o r th w e s te r n B a n k e r p u b lis h e d m o n th ly b y th e D e P u y P u b lis h in g C o m p a n y , a t 527 7 th S tr e e t, D e s M o in e s
S u b s c r ip tio n , 35c p e r c o p y , $3.00 p e r y e a r . E n t e r e d a s s e c o n d c la s s m a t t e r a t th e D e s M o in e s p o s t office.
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Federal Reserve Bank of St. Louis
Io w a
'All!
TA
• Today, all the resources of the Allen W ales Adding
Machine Corporation are turned to the manufacture
of vital war supplies for our country. When Victory
comes, we will resume making Allen Wales Adding
Machines which our friends tell us are the world's best.
In the meantime, you can best help yourself and us by
keeping your Allen W ales Adding Machines in per
fect running condition. W e suggest that you investigate
our Annual Maintenance Service by calling the near
est of our 400 agencies, or write to the Home Office.
ALLEN
WALES
ADDING MACHINE CORPORATION
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Federal Reserve Bank of St. Louis
4 4 4 Madison Avenue, New York, N. Y.
4
A N ATION W ITHOUT CIVILIA N S!
As Am erica
grasps the true
none of these war essentials.
meaning of total war the term
Thus America at war has an
"civilian,” as it was once under
obligation to take every possible
stood,
increasingly
precaution against the outbreak
empty. Virtually everyone in the
of fire in any instance; further,
nation plays some part in keep
to see that all property is ade
ing America going—a vital factor
quately insured. These wise and
in achieving victory.
necessary precautions will help
becomes
In this effort, loss to anyone is
importantly to keep America "in
loss to all. Loss by fire is especi
there punching" until the Axis
ally serious since the resulting
is vanquished for all time.
damage is in man-power, ma
All of us should bear in mind
chine-power, m aterials, or all
the urgent obligation:
three. We can afford to squander
Be EXTRA Careful about Fires.
ftTHE HOME ft
NEW
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Federal Reserve Bank of St. Louis
Y O R K
millions of men in our Armed Forces, December 25th,
¿i2*Aviil be strangely different than any Christmas they have
win. ☆
Whatcan we do to#elp our boys who are giving so
much foi ns^ HereS the ansi* • I
an answer that speaks for all
eyei'known. True, there’ll be Turkey on the Table in camps
Huaia)iit\ - -the iftrv answer our Men in Service would them*
throughout the land . . . and Carols sung by lusty voices . . . adjd
selves give: CONTRIBUTE TO THE U .S .O .-th e organiza*
a Tree . . . and Gifts from Heme —but Christmas isn’t really
tion that brings our boys entertainment, recreation, good fellow
Christmas, away from family and fireside.
Men, you know,
ship—the organization that is the closest thing to home for a
are "but boys grown tall”. And it is vital to this nation that the
service man. AND BUY MORE BONDS —to hasten the day
things for which Christmas stands be preserved to all of us. For
when Christmas will again be Christmas, with families reunited
these things are part of America’s heart and spirit and will to
—and Peace on Earth becomes a fact as well as a prayer.
G E O R G E LA M O N TE & S O N , M akers o f Safety Paper fo r Checks, NUTLEY, N E W JERSEY
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Federal Reserve Bank of St. Louis
Copies of this ad in color, suitable for framing, with our name omitted, available on request.
What Sank this Submarine?
In an eastern state a m anufacturer, in
business more than a century, was produc
ing printing presses in 1941 for an America
then at peace. Came a menace to our
shipping from below the seas— our Navy
urgently needed guns and mounts for the
ships. Could the manufacturer make gun
mounts? He could and he would.
But funds were needed at once for new
equipment and to hold trained personnel
during the conversion period. A delay
would have meant unemployment and
stagnation for the community. And, even
more important, precious weeks would
have been lost before the necessary gun
mounts were delivered to our Navy.
So the manufacturer went to the officers
of his local bank. This bank and the Chase,
its New York correspondent, quickly ar
ranged a substantial loan, enabling the
manufacturer to keep his efficient organi
zation together and to place weapons on
our warcraft and freighters to battle the
underseas menace.
This actual instance is not cited merely
to indicate the effect of one loan,- it has
greater significance. It is an example of
American industry and American banks
working together harmoniously and effec
tively to win the war.
THE CHASE NATIONAL BANK
OF
N orthw estern B anker
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Federal Reserve Bank of St. Louis
D ecem ber 19b2
THE
CITY
OF
NEW
YORK
DECEMBER
N O $ m W E ,S T E R N
19 4 2
FO R T Y -SE V E N T H Y E A R
N U M B ER 665
O ldest Financial Journal West of the Mississippi River
IN THIS ISSUE
Editorials
C L IF F O R D DE P U Y
Publisher
Across the Desk from the Publisher...........................................................................
8
Feature Articles
R A LP H W. M O O R H E A D
Associate Publisher
H EN RY H. H A Y N E S
Editor
527 Seventh Street,
Des M oines, Iowa
Telephone 4-8163
Frontispiece ............... ,.................................................................................................... 11
Government Competition and Increased Operating Costs
........................... ............................................... Discussed by Nebraska Bankers 12
Pictures and Paragraphs from the Nebraska Convention....................... 12-13-14-15
Interest Paid by Nebraska Banks............................................................................... 15
Free Capital to Compete with Banks........................................... J. M. Sorenson 16
The Interest Farm ers Pay to PCA....................... ........................... C. W. Rossiter 17
News and Views of the Banking W orld............... ......................... Clifford D eP uy 18
W hat Farm ers Are Doing with Two Billion Dollars..................... Edwy B. Reid 22
Insurance
Selling Life Insurance in a Shifting M arket........................................ ................... 25
N E W Y O R K O F F IC E
Frank P. Syms
V ic e President
505 Fifth A v e .
Suite 1806
Telephone MUrray H ill 2-0326
M IN N E A P O L IS , O F F IC E
Jos. A . Sarazen
Associate Editor
Telephone Hyland 0575
Bonds and Investments
Urge Customers to Buy W ar Bonds............................................. James H. Clarke 29
State Banking News
Minnesota News .............................................................................................................
Twin City News.......................................................................................................
South Dakota News .....................................................................................................
North Dakota News ...............................................................................
Nebraska News .............................................................................................................
Business Is Good in Sidney...................................................................................
Omaha Clearings ....................................................................................................
Lincoln Locals ............................................................................................ v............
Iowa News .....................................
35
37
39
41
43
44
45
47
49
The Directors’ Room
A Few Short Stories to Make You Laugh
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Federal Reserve Bank of St. Louis
58
Across the Desk
From the Publisher
Be G lad You're a
As we enter tlle last
Country Banker
month of. 1942> is our
firm conviction th a t coun
try bankers can look back over the past w ith a
feeling of pride and look fo rw ard to the future,
even in these times, w ith confidence and com
posure.
You can be glad you are a country banker be
cause your business is in better shape than the
average group of small business organizations
across the country.
You can be glad you are a country banker be
cause you have a higher ratio of net sound capi
tal to appraised value of assets than banks of
larger size and deposits.
You can be glad you are a country banker and
that you have contributed your part to guiding
your institution through the strenuous period
since 1932.
The enviable position in which country b an k
ers find them selves today was very ably p re
sented by Leo T. Crowley, chairm an of the F e d
eral Deposit Insurance C orporation, in a recent
address of his in which he said, “ The dire stra its
o f sm all business, how ever, are not reflected in
the p resen t condition o f sm all banks. Sm aller
banks, as a group, have fa re d better and are to
d a y in so u n d er condition th a n a n y other segm ent
o f sm all business. F u rth e r, we find small banks
today ahead, in several im portant respects, of
the larger institutions.
“ W ith respect to the ratio of sound capital to
appraised value of assets, for example, we find
th a t the ratio stands in inverse proportion to the
size of banks—the sm aller the bank, the higher
the ratio. N et sound capital ranges from $24.74
per $100 ap praised value of assets for all insured
N orthw estern R anker
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Federal Reserve Bank of St. Louis
D ecem ber 19T2
banks w ith deposits of $100,000 and less, down
through $12.21 for banks w ith deposits of be
tw een $500,000 and $1,000,000 to $8.05 for banks
w ith deposits in excess of $50,000,000.
“ It appears, therefore, th at the country bank
er is in a good position to contribute fully of his
skills and his resources to prosecution of the N a
tio n ’s w ar effort. I t is evident, too, th a t our
co u n try bankers are to be congratulated upon the
care w ith which th e y shepherded th eir in stitu tio n s
through dangerous tim es, guided them on the
road to economic recovery, and established sta n d
ards o f sound operations th a t have given co u n try
banks th eir presen t enviable soundness. ”
So we repeat, be glad you are a country b an k
er and th a t you are in a business w hich has done
so well through these try in g times, and a business
w hich, we are sure, u n d er yo u r able guidance, w ill
continue to do so in the m onths ahead.
The Future
O f Installment
A lthough installm ent finan-
^ias necessar^ y declined
because of w ar conditions, we
inancing
believe th a t it has alw ays con
trib u te d to the w elfare of our economic system,
except in cases w here it has been abused by the
borrow er.
There can be no doubt th a t installm en t finan
cing will be definitely stim ulated when the w ar
is over and consum er goods, especially in the d u r
able classification, are m an u factu red again in
large quantities.
“ D uring the 6 m onths ended Ju n e 30, 1942,”
according to E lm er E. Schmus, vice president,
the F irst N ational B ank of Chicago, “ finance com
panies showed a net profit on the average net
worth of 9 per cent on an annual basis com pared
r*
•
w ith 11 per cent for the year 1941. These lower
earnings reflect not only the sharp decline in vol
ume, b u t also the influence of the lower charges
as well as the higher ta x e s.”
The record of finance com panies and of banks
w hich have personal loan or installm ent financing
d ep artm ents has been m ost satisfactory over a pe
riod of years, and as Mr. Schmus fu rth e r points
out, “ The finance companies have always main
tained positions of excellent liquidity, and I have
confidence that the able management which has
been responsible for the fine records of the com
panies will see to it that a proper liquidity bal
ance is continued in order that they can satisfac
torily resume their usual financing operations
after the war has been brought to a conclusion.
I t is our belief th a t the fu tu re of installm ent
financing w ill be m ost satisfactory, even though
tem p o rarily there has been a decline in the volume
of business done.
W hatever else wre
may need to win the
war, we m ust have
food and meat. W hat
the final effects of rationing and price ceilings
may have on the livestock industry, of course, re
m ains to be seen but common sense dictates th at
the livestock industry m ust increase its wartim e
production to take care of both the arm y and
civilian requirem ents.
This entire subject was very ably discussed by
Alvin E. Johnson, president of the Live Stock N a
tional B ank of Omaha recently.
Mr. Johnson believes th at if m eat is rationed
and not competitive foods that the dem and will
gradually move tow ard the competing foods and
meat will be neglected, and he believes th a t “ this
carries a th reat w ith dire im plications.”
As a re su lt of this, Mr. Johnson believes th a t
eating habits may be changed during the w ar and
th a t in the postw ar economy the m arket for
meat m ay be seriously reduced at a time “ w hen
Livestock Industry
Must Increase Its
Wartime Production
larger, ra th er th a n sm aller m a rkets w ill he nec
essary fo r the su rviva l o f the livestock in d u s tr y .”
In sum m ing up his reasons w hy the livestock
in d u stry m ust be increased, he puts it this w a y :
“ Our per capita consumption of meat and meat
products has fallen before and we know the re
sults to the livestock industry. This war presents
controls never used before. It is our first expe
rience with general rationing, but it is safe to pre
dict that meat will lose ground on the American
table. It will take years and a lot of promotion
to restore it.
“ That is why the livestock industry must find
some way to increase its wartime production so
that meat consumption among civilians, though
rationed, will be of a quantity that will not tend
to reduce the pre-war consumption standards.
‘‘So far as I can see, the only quick way to in
crease production is to feed livestock to heavier
weights.
“ It can be done—in my estimation it must be
done—despite price ceilings, rationing, increasing
production costs and overall controls that tend to
discourage heavier marketed animals.
“ May I emphasize again—we have millions of
four-footed war plants in this country. The coun
try needs meat. Our Allies need meat. When are
we going to put our four-footed war plants on a
real wartime production schedule?”
Thus we believe th at it is most im portant th a t
the government give serious consideration to p u t
ting the livestock industry on a basis where its
production will be increased in order to help
supply the necessary am ount of m eat products
needed to help win the w ar.
Playing Politics
The Presenf ta x law does
With the $25,000 not limit salaries *° *25>-
000. The plan was pure]y political and was based
on an “ o rd e r” issued by Jam es F. B yrnes, di
rector of economic stabilization, and approved by
P resid en t Roosevelt.
The idea was to fu rth e r appease labor. B ut to
show how unnecessary and foolish such an order
as this is, we should rem em ber the follow ing facts :
q
*
balary
| .
imi
1. In 1939, the last year for which official fig
ures are available, there were only 1,439
persons who had salaries above $25,000.
2. For 1942, it is estimated that the number
will be only 2,500 persons.
3. This order does not affect persons receiv
ing dividends of $25,000 or more, therefore
the law is discriminatory and definitely un
fair.
So we believe th a t this entire move was one of
pure politics to fu rth e r play ball w ith labor lead
ers, m any of whom have made rack eteerin g a p ro
fession and whose own unions do not have to m ake
any re p o rt of th e ir financial affairs to the gov
ernm ent, while every corporation in the U nited
S tates is forced to do so.
N orthw estern Banker
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Federal Reserve Bank of St. Louis
D ecem ber 19^2
10
DL Oli
L e e rs
ddòim ctoró a n d ¿ddmofc
mptoueeó
O F
T H E
Central National B ank
s. T rust Company
O F
D E S
M O I N E S
C E x te n d to
ó in c e r e it
a n d w ith a fa ith c o m m o n to a ll free A m e r i c a n s
a re a n x i o u s l y lo o k in g f o r w a r d to th e d a y w h e n
t h e C h r i s t m a s a n d N e w Y e a r H o l i d a y s w ill
a g ain
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Federal Reserve Bank of St. Louis
he
observed w ith
a w o rld
at peace.
11
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Federal Reserve Bank of St. Louis
N orthw estern Banker
D ecem ber 194-2
12
Government Competition, Increased Operating
Costs Discussed by N cb fC tSkd Bankers
Large Attendance at Forty-fifth Annual Convention Held Last
Month in Omaha
ORE th a n 750 reg istratio n s w ere
recorded a t th e forty-fifth a n
nual convention of th e Ne
brask a B ankers A ssociation, held last
m on th in Omaha, a to tal th a t g reatly
exceeded m any oth er m eetings held in
recen t years. The program , b u ilt
around the solution of problem s th a t
w ill help to fu rth e r th e w ar effort,
w as full of m eat. All sessions w ere
u n usu ally w ell attended.
M
Robert F. Clarke, p resid en t of th e
B anking H ouse of A. W. Clarke, Papillion, w as elected presid en t of th e Ne
b rask a A ssociation a t th e closing con
vention session. Jam es D. M illiken,
executive vice presid en t of th e F re
m ont N ational Bank, w as nam ed ch air
m an of the executive com m ittee; A. L.
Coad, presid en t of th e P ackers N a
tional Bank, Omaha, w as elected tre a s
urer; and of course W illiam B. H u ghes
w as renam ed secretary. M em bers of
th e executive council nam ed for a
th ree-year term w ere A. I . V ickery,
j
cashier U nited States N ational Bank,
Omaha, rep resen tin g Omaha; C. W.
B attey, cashier C ontinental N ational
Bank, Lincoln, rep resen tin g Lincoln;
P ercy Baird, p resident F arm ers State
Bank, Superior, rep resen tin g G roup
Four; R. E. Stout, p resident F irs t N a
tional Bank, T ekam ah, rep resen tin g
Group Two; J. D. M illiken, F rem ont,
a t large; and E. C. N ordlund, president
S trom sburg Bank, at large.
N ebraska vice p residents for the
several A m erican B ankers A ssociation
divisions w ere nam ed as follows: N a
tional Bank, Edw ard H uw aldt, execu
tive vice presid en t Com m ercial N a
tional Bank, G rand Island; State Bank,
E dgar M cBride, presid en t Comm ercial
Bank, Blue Hill; Savings B anks, C. F.
W itt, South Omaha Savings Bank; and
T rust, C. Y. Offutt, tru s t officer U nited
States N ational Bank, Omaha. Councilm en nam ed w ere J. O. Peck, vice
presid en t C ontinental N ational, L in
coln, and R ay R idge, vice president
Omaha N ational Bank.
R ay R. R idge, th e handsom e and
distinguished vice presid en t of the
Omaha N ational Bank, is also p resi
dent of th e Omaha R otary Club and
presided at the m eeting of the Club
held d uring th e N ebraska B ankers
A T T H E N E B R A S K A C O N V E N T IO N —
R e a d in g fro m le f t to rig h t, I — N ew officers
of th e N e b ra s k a A sso c ia tio n — R. F. Clarke,
p re sid e n t, p re s id e n t B a n k in g H ouse of A.
W . C lark e, P a p illio n ; James D. Milliken,
c h a irm a n of th e e x e c u tiv e co m m ittee, ex
e c u tiv e v ice p re s id e n t F re m o n t N a tio n a l
B a n k ; A. L. Coad, tre a s u re r, p re sid e n t
P a c k e rs N a tio n a l B a n k , O m ah a; a n d
William B. Hughes, s e c re ta ry , O m aha. 2—M em b ers of th e F ifty -Y e a r Club a tte n d in g
th e m e e tin g in O m aha— a ro u n d th e ta b le
fro m le ft to rig h t, H. D. Miller, p re s id e n t
F i r s t N a tio n a l B a n k , S ta n to n ; August
Zimmerer, a s s is ta n t c a s h ie r F i r s t N a tio n a l
B a n k , Y o rk ; Chas. K. Hart, p re s id e n t
A dam s C o u n ty B a n k , K e n e s a w ; W. H.
McDonald, c h a irm a n o f th e b o a rd M cD on
a ld S ta te B a n k , N o rth P l a tt e ; E. C. Yont,
p re s id e n t a n d c a sh ie r B a n k of B ro c k ; A.
L. Neumann, p re s id e n t F a rm e rs & M e r
c h a n ts N a tio n a l B a n k , O a k la n d ; a n d J. W.
O’Neil, O m aha N a tio n a l B a n k .
N orthw estern B anker
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Federal Reserve Bank of St. Louis
D ecem ber Í94-2
13
C onvention. In introducing th e m any
R otary b an k ers w ho w ere p resent, Ray
p ropitiously said, “I am glad to have
so m any of m y b a n k e r frien d s a t th e
luncheon today, as I have no friends
in th e R o tary Club.”
As one of th e m ost pop u lar p resi
dents th e Om aha R o tary Club has ever
had, we decided th a t R ay w as a trifle
facetious in his rem ark.
Charles R. G ossett, p resid en t of th e
S ecurity N ational B ank of Sioux City
dropped in to see his son a t th e U ni
v e rsity of N ebraska before com ing to
th e C onvention in Omaha. C harley’s
son w ill soon go to W est P oint, to
w hich he recen tly received an ap
pointm ent.
Fred W. Thom as, vice p resid en t of
th e F irs t N ational B ank of Omaha, in
telling of th e cam paign of F oster May,
th e D em ocratic Senatorial candidate
in N ebraska, rem ark ed th a t “N ovem
b er 3rd w as th e last of M ay.”
H ai ry ( . llau sm a ii, secretary of th e
Illinois B an k ers A ssociation, asked
b an k ers a t th e N ebraska C onvention to
donate any e x tra fire alarm s w hich
th ey did not need to be used by th e
G reat L akes N avy T rain in g Station.
H a rry said th a t due to th e 3 Rs—re g u
lation, red tape and restrictio n , the
governm ent had n o t fu rn ish ed enough
equipm ent to the G reat L akes T ra in
ing School.
C om plim enting N ebraska b anks on
th e ir cooperation w ith A ssociation ac
tiv ities d u rin g th e p ast year, O. A.
R iley, vice p resid en t of th e H astings
N ational B ank, and p resid en t of th e
A ssociation, said th a t th e b an k s of th e
state had qualified 100 p er cent in th e
sale of W ar Bonds and Stam ps, and
A T T H E N E B R A S K A C O N V E N T IO N —
R e a d in g fro m le f t to rig h t, a ro u n d th e
ta b le , 1— Major Carl Ganz, c a sh ie r F a rm
ers & M e rc h a n ts B a n k , A lv o ; Mrs. Ganz;
Mrs. E. N. Van Horne; C. J. Bliss, fo rm e r
N e b ra s k a
su p e rin te n d e n t
of
b a n k in g ;
Georgia Bliss; E. N. Van Horne, p re s id e n t
F e d e ra l L a n d B a n k , O m aha. 2— H. J.
Bornholdt, c a s h ie r C om m ercial S ta te B a n k ,
W a u sa ; a n d Neil D. Saville, c a s h ie r F ir s t
N a tio n a l B a n k , W isn er.
3 —Mrs. Emil
Placek; Emil Placek, p re s id e n t F i r s t N a
tio n a l B a n k , W ahoo; Otto Kotouc, p re s i
d e n t H om e S ta te B a n k , H u m b o ld t; J. M.
Sorenson, e x e c u tiv e vice p re s id e n t S te p h
ens N a tio n a l B a n k , F re m o n t; Mrs. Dan J.
Riley; a n d Dan J. Riley, p re s id e n t The
D aw son B a n k .
4— Harry J. Devereaux,
v ice p re s id e n t R a p id C ity N a tio n a l B a n k ,
R a p id C ity, S o u th D a k o ta ; B. M. Wheelock,
vice p re s id e n t S e c u rity N a tio n a l B a n k ,
Sioux C ity, Io w a ; a n d A. E. Dahl, e x ecu
tiv e vice p re s id e n t R a p id C ity N a tio n a l
B a n k , R a p id C ity, S outh D a k o ta .
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Federal Reserve Bank of St. Louis
14
th a t the state had for the second con
secutive tim e scored 1000 per cent in
th e ABA ag ricu ltu ral program . L ast
year banks in N ebraska subscribed for
1,700 copies of 4-H Club News, having
the pap er sen t to young folks in th e ir
com m unities. D uring th e p ast 12
m onths, Mr. Riley said, N ebraska
banks had been called upon for u n
usual effort in alm ost every phase of
th e ir business, and all had responded
in service in th e ir com m unities to
help w in th e w ar.
The absolute necessity for fu rth e r
sale of governm ent securities, by
bonds and tax notes th ro u g h th e banks
w as stressed by H. G. L eedy, p resid en t
of th e F ed eral R eserve B ank of K an
sas City. The U nited States budget
director is estim ating federal expendi
tu res of m ore th a n 84 billion dollars—
of this am ount it is expected th a t 24
billion w ill be raised by taxation, four
and one-half billion from social se
cu rity income, leaving 55.5 billion to
be raised th ro u g h th e sale of govern-
A T T H E N E B R A S K A C O N V E N T IO N —
R e a d in g fro m le f t to rig h t, 1— T h is p ic tu re
a t th e d in n e r m e e tin g o f th e N e b ra s k a
e x e c u tiv e council, h e ld d u rin g th e c o n v en
tio n . T hose p ic tu re d , a lth o u g h n o t in th e
o rd e r of a p p e a ra n c e , a re William N. Mit
ten, p re s id e n t S te p h e n s N a tio n a l B a n k ,
F re m o n t; Henry E. Ley, c a s h ie r S ta te N a
tio n a l B a n k , W a y n e ; Edgar McBride, p re s i
d e n t C om m ercial B a n k , B lue H ill; It. H.
Kroeger, vice p re s id e n t L iv e S to c k N a tio n
al B a n k , O m ah a; L. C. Chapin, v ice p re s i
d e n t F i r s t N a tio n a l B a n k , L in c o ln ; W. H.
Pierce, p re s id e n t F ir s t N a tio n a l B a n k ,
S h e lb y ; R. I. Stout, P re s id e n t F i r s t N a
tio n a l B a n k , T e k a m a h ; Byron Dunn, v ice
p re s id e n t N a tio n a l B a n k of C om m erce;
A. L. Coad, p re s id e n t P a c k e rs N a tio n a l
B a n k , O m ah a; R. F. Clarke, p re s id e n t
B a n k in g H ouse of A. W. C lark e , P a p illio n ;
E. W. Rossiter, p re s id e n t B a n k o f H a rtin g to n ; H. H. Ostenberg, p re s id e n t S c o ttsbluff N a tio n a l B a n k ; J. D. Stocker, c a sh ie r
O toe C ounty N a tio n a l B a n k , N e b ra s k a
C ity ; B. N. Saunders, v ice p re s id e n t F o rt
K e a rn e y S ta te B a n k , K e a rn e y ; R. E.
Knight, p re s id e n t A llia n c e N a tio n a l B a n k ;
a n d R. H. Hall, vice p re s id e n t N o rth Side
B a n k , O m aha. 2— T h ree S ta te S e c re ta rie s,
W. F. Keyser, M isso u ri; Billy Hughes,
O m aha, N e b ra s k a ; a n d Harry Hausman,
Illin o is. 3— A ro u n d th e ta b le , O. A. Riley,
vice p re s id e n t H a s tin g s N a tio n a l B a n k ;
C. C. Neumann, e x e c u tiv e v ice p re s id e n t
a n d c a sh ie r F a rm e rs & M e rc h a n ts N a tio n a l
B a n k , O a k la n d ; A. J. Jorgenson, p re s id e n t
A m e ric an N a tio n a l B a n k of S id n e y ; J. R.
Cain, v ice p re s id e n t O m aha N a tio n a l B a n k ;
Henry Schneider, p re s id e n t P la tts m o u th
S ta te B a n k ; A. N. Mathers, p re s id e n t Gerin g N a tio n a l B a n k ; a n d Billy Hughes.
4— David Kaufman, p re s id e n t C om m ercial
N a tio n a l B a n k , G ra n d Is la n d ; Edward
Huwaldt, e x e c u tiv e v ice p re s id e n t Com
m erc ia l N a tio n a l B a n k , G ra n d Is la n d ; an d
Chas. K. Hart, p re s id e n t A d am s C ounty
B a n k , K en esaw .
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Federal Reserve Bank of St. Louis
i
15
m ent securities. I t is th e b anks w hich
w ill have to raise th e larg er portion of
th is la tte r sum, probably aro u n d 35
billion. The ab ility of b an k s to do th is
job w ill come largely from in
creased b ank deposits. As reserv es
increase, these can also be used for
p u rchase of g o v ern m en t securities.
Mr. L eedy said it m ig h t becom e neces
sary to reduce reserv e req u irem en ts,
to allow a g re a te r flow of funds into
securities, b u t th a t such increase
w ould be avoided as long as possible.
W illiam B. H u gh es, se cretary of th e
N ebraska B an k ers A ssociation, su b
m itted probably th e m ost condensed
and b riefest S ecretary ’s R eport in all
th e h isto ry of sta te b a n k ers organiza
tions, as it w as on tw o sides of a sheet
of pap er only 4 inches w ide an d 10
inches deep.
The N ebraska B an k ers A ssociation
now has a m em bership of 417 and the
funds increased $1,482 d u rin g the
year, w ith to tal receipts show ing
$22,095 and disb u rsem en ts w ere $20,687.
W. A. S aw tell, p resid en t Stock Yards
N ational B ank of Omaha, w as a m ajo r
in th e 148th Field A rtillery in W orld
W ar I and served one and one-half
years in F rance. H is fa th e r before
him , H. F. S aw tell, w as in th e F ield
A rtillery B a tte ry from Boston, M assa
chusetts, and fought in th e Civil W ar.
And now, AV. A. Saw tell, Jr., is in th e
91st F ield A rtille ry a t Camp W hite,
Oregon, th u s continuing th e F ield
A rtillery tra d itio n of th e d istinguished
Saw tell fam ily.
H. M. B u sh n ell, p resid en t of th e
U nited S tates N ational B ank, w as a
classm ate a t th e U n iv ersity of N e
b rask a w ith K enn eth W herry, th e new
R epublican U nited States S enator from
N ebraska.
S enator W h e rry lives a t Paw nee
City, N ebraska, and he and Mr. B ush
nell have long been personal friends.
John A. C hangstrom w as chairm an
of th e gen eral com m ittee on a rra n g e
m ents for th e N ebraska convention
and had a v ery clever plan of m aking
th e A ssem bly Room a t th e H otel Fontenelle th e “re fre sh m e n t” cen ter for
friends and delegates atten d in g th e
convention. T his m ade it unnecessary
for th e various b anks to use p riv ate
room s for e n te rta in m e n t purposes, as
is usu ally done, and th e new plan
w orked out v ery satisfactorily.
A t an inform al conference of th e
N ebraska Ju n io r B an k ers A ssociation,
held a t th e convention, it w as decided
th a t th e organization should continue
to function w ith th e sam e officers, b u t
a com m ittee w as nam ed to serve in an
executive capacity for th e p resen t w ar
em ergency. N am ed on th e com m ittee
w ere B. M. DeLay, A ssociation p resi
dent; Chase N ew m ann, Oakland; W. H.
Collett, Crete; A. N. W allin, Omaha,
and John Lauritzen, Omaha. The As
sociation paper, Junior N ew s, w ill be
suspended for th e p resen t so far as
re g u lar issue is concerned, b u t contact
w ill be m ade w ith m em bers occasion
ally as item s of in te re st occur.
The decision to cu rtail activities of
th e Ju n io r A ssociation w as m ade be
cause m ore th a n 60 per cent of the
m em bership has en tered th e arm ed
service, and w hile th e organization w ill
not be com pletely inactive or dorm ant,
it w ill be im possible to function on as
broad a scale as had been planned.
W hen th e p resen t w ar is over, the
Ju n io rs w ill again tak e up active w ork
tow ard cooperating w ith the senior
association, and help in all possible
w ays to m ake them selves b e tte r b ank
ers for th e future.
Speaking on “The W ealth of the N a
tion,” Dr. H. C. F iiley , of the N ebraska
College of A griculture, nam ed w h at he
considered th e four reasons for the
Interest Paid by Nebraska Banks
T H E follow ing table refers to in te re st rates paid by S tate banks in N ebraska,
1 and is tak en from exam ination rep o rts subm itted to th e N ebraska B anking
D epartm ent. W hile it is difficult to obtain an exact average from these figures,
by tak in g 195 banks co n stitu tin g th e larg er group, the average rate of in terest
paid w ould appear to be about 1.68 p er cent.
TIM E C E R T IFIC A T E S
SAVINGS ACCOUNTS NO. OF BANKS
6 mos.
12 mos.
Sem i-annual
None
None
None
26
None
None
1%
1
None
None
2%
1
None
None
2Vz %
1
2%
2%
2%
63
2%
2%
None
38
1%
1%
1%
14
2%
2%
13
2W o
None
2%
2%
13
2y>%
None
10
2W o
2%%
2W o
8
2W o
2%
IW o
10
1W o
2%
None
6
2W o
iy 2%
iy 2%
3
1W o
lX
/2 %
iy 2%
None
3
1%
iy 2%
1%
3
2%
2%
1%
3
None
2%
None
3
2%
1%
None
3
1%
None
1%
2
1%
1%
None
2
None
1%
None
1
2%
2%
1
2Vz %
1%
1%
1
2%
lVz%
iy 2%
1
1%
2y2%
2%
i y2%
1
2%
None
2
iy 2%
2%
2%
2
iy 2%
2%
2% %
3
2W o
1
2%
1W o
2W o
1
2%
None
None
1
None
None
1%
2
2%
2%
1W o
1
2%
None
1W o
2
2%
None
2W o
1
None
None
2W o
2
2Vz %
2%
2W o
1
2%
None
2W o
1 B ank pays 1%%, 2% and 2Vz% on Tim e Certificates, 2% and 2Yz% Savings
1 B ank pays 1% on Tim e Certificates local; 2% non-resident
1 B ank pays 1% % up to $2,500.00 plus 1 % over $2,500.00 on C.D.’s; 2% on Sav
ings—no in te re st paid over $5,000.00
1 B ank pays 2% up to $500.00 plus 1% over $500.00
1 B ank pays 1% up to $5,000.00
1 B ank pays 2Yz% up to $100.00 on savings only.
1 B ank pays 3% on 12 mos. C.D. accepting no new m oney
1 B ank pays 2%% up to $2,500.00—1% on n e x t $2,500.00—nothing over $5,000.00
on C.D.’s—2%% on savings up to $1,000.00
1 B ank pays 2%—takes n o thing over $2,500.00
1 B ank pays 2% up to $1,600.00 plus 1% on n ex t $1,500—n o thing accepted over
$2,500.00
1 B ank pays 1% on C.D.’s 12 mos.—1% on savings w ith no in terest paid on
am ounts u n d er $10.00
1 B ank pays 1%, 2% and 2%% ap p aren tly as th e circum stances strik e them
N orthw estern Banker
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Federal Reserve Bank of St. Louis
D ecem ber 19^2
16
W h y Should Production Credit
Associations Be Furnished Capital
free to Compete W ith
Banks?
By J . M. Sorenson
V/ce President
Stephens National Bank
Fremont, Nebraska
This Very Interesting Subject W as Presented by Mr. Sorenson
Before the Annual Convention of the
Nebraska Bankers Association
J. M . S O R E N S O N
N his n in th an n u al re p o rt of the
F a rm C redit A dm in istratio n a t th e
close of 1941, G overnor Black stated:
“A dditional field offices set up faster
th a n ever before.” It w as our u n d e r
stand in g a t th a t tim e th a t th e plan
w as to trip le th e n u m b er of associa
tions in th e U nited States. Is it any
w onder we w ere concerned? B anks
I
and bankers everyw h ere are d evoting
a great deal of tim e and effort tow ard
h elp in g to w in the w ar. AVe are al
w ays happy to do our part. It does
seem , how ever, th at w h ile w e are do
in g th is w e should not he forced to
have to defend ou rselves from unfair
com petition on the part of certain de
partm ents of the F ederal G overnm ent
as is n ecessary at the present tim e on
account of the extraordinary aggres
siv e n e ss of the Production Credit A s
sociations. W hen banks w ere given
the support of the R econstruction F i
nance Corporation, th ey paid in terest
w ealth of th e U nited States. F irs t are
our g re a t n a tu ra l resources—second,
the type of people w ho settled th is
co u n try and founded its civilization—
third , because of our co n stitu tio n and
th e law s established in th e several
states ty in g in w ith it—and fou rth , th e
a ttitu d e of th e people of th is country
tow ard education. F o r these four re a
sons we have ev en tu ally been able to
produce m ore goods p e r capita th a n
any o th er n atio n in th e w orld. W ealth,
the sp eaker said, is not so m an y dol
lars, b u t is a case of w orking hard, be
ing th rifty , and u sing com m on sense.
This country, said Mr. Filley, is going
to have to get over the idea th a t a m an
N orthw estern Danker
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Federal Reserve Bank of St. Louis
D ecem ber 19b2
on all capital furnished hy it. Just
w h y th ese com p eting agen cies should
be furnished such capital free of
charge and in exceed in gly large
am ounts is beyond me.
P rod uction C redit A ssociations op
erate in th e exact field of com m ercial
banks. T hey solicit and m ake only
choice loans. Loans th at, I believe,
any b ank w ould be glad to m ake and
th e eagerness of banks today, because
of idle funds, w ould assure low rates
to th e producer.
D uring 1941, and so far in 1942, I
know of no em ergency existing neces
sitatin g a large expansion program of
th e PCA.
D uring our v isit w ith
G overnor Black in W ashington, he as
serted v ery positively th a t he w ould
not ask for a softer snap th a n to sit in
a b ank and take loans aw ay from P ro
duction C redit A ssociations. It ap
pears to me th a t G overnor Black is a
m ite inconsistent. F o r him to say in
one b reath th a t his organizations are
m u st w ork only a 40-hour w eek—such
attitu d e is deplorable w ith a w ar to
win.
T here w ere th ree speakers on “P ro
duction Credit Subsidized Com peti
tio n ”— E. W. R ossiter, president, B ank
of H artington; E. E. Placek, president,
F irs t N ational Bank, W ahoo; and J. M.
Sorenson, vice president, Stephens N a
tional Bank, F rem ont. R eference to
th e re m ark s of Mr. R ossiter and Mr.
Sorenson is m ade elsew here is th is is
sue. Mr. Placek gave a rep o rt on a
trip m ade by his com m ittee to W ash
ington, saying th a t th e group received
a cordial reception from all congress
soft com petition and in th e nex t to
defend the expansion program re q u ir
ing these trem endous sum s of capital
free of charge from th e governm ent,
and to also req u ire a trem endous in
crease in m anpow er to m an these or
ganizations, to me does not seem to
m atch up. At the p resen t tim e it is
m y u n d erstan d in g th a t th e govern
m ent has loaned $120,000,000 free of
charge to th e P roduction Credit As
sociations as capital and th e annual
rep o rt shows. 4,900 people employed.
J u s t how m uch capital w ould Gover
nor Black be w illing for th e govern
m en t to fu rn ish free of charge, and
how m any people w ould he be w illing
to take out of th e w ar effort, w hen
both capital and m anpow er are so
necessary?
To me th e Production
C redit A ssociations are unnecessary.
T hey are vicious and u n fair com peti
tion. F o r G overnor Black to set up
this trem endous expansion at this
tim e to me seem s v ery unpatriotic.
m en interview ed, and w ere prom ised
some action. Speaking later on the
program , he suggested m ore and b et
te r cooperation am ong N ebraska b an k
ers in th e ir opposition to PCA activi
ties, and said th a t city b an k ers could
also help out th ro u g h m aking loans on
a proportionate basis. Mr. Placek said
th a t if w o rst came to w orst, N ebraska
ban k ers could organize th e ir own
F arm C redit Cooperative, and th u s
fight fire w ith fire. It is up to the
banks if th ey w an t to fight, he said,
b u t so far as he is concerned, it is a
fight to th e finish.
(T urn to page 43, please)
17
The Interest Farmers
L E A SE keep before you th a t th e
taxpayers, th ro u g h th e U. S. T reas
ury, gave $120,000,000 to th e P ro
duction C redit System about 1934. The
P roduction Credit pays no in te re st on
th is sum . But, th e g o vernm ent pays
th e PCCs and PCAs in te re st—$3,200,000 in 1941. The w hole Production
Credit System is designated a govern
m ent in stru m e n ta lity and th u s exem pt
from taxes.
The to tal cost of loans m ade to farm
ers by PCAs is not th e 4% p er cent
advertised. A ccording to official fig
ures, th e average to tal cost is given as
5.4 per cent. Our studies in N ebraska
indicate to tal fa rm e rs’ cost is 6.2 per
cent. T he 1941 FCA re p o rt show s a
m ajo rity of its loans are for less th a n
$500. A ccording to th e Ohio B ankers
A ssociation studies, a $500 loan r u n
ning 12 m onths costs a farm er 5.8 p er
cent; for six m onths 6.9 per cent.
T here is an additional cost to these
loans w hich th e y tax p a y e r m u st m ake
up. T his is covered by th e in te re st
subsidy. F ig u rin g Class A stock alone,
ow ned by th e governm ent, th is ru n s
about 1.75 p er cent. U sing any com
bin atio n of figures you choose as to
th e actual cost to th e farm er, plus th is
1.75 p er cent paid by th e taxpayers,
you have th is PCA loan service cost
ru n n in g about 8 p er cent. Can th a t
be justified u n d e r any set of circum
stances?
Take an o th e r set of figures from the
1941 FCA rep o rt. W e find th a t $101,726,028 rep re se n te d th e operatin g in
come obtained from in te re st on loans,
loan service fees, and m iscellaneous
incom e. The sum of $2,726,588 re p
resen ted “incom e from th e in v estm en t
of accum ulated earnings and th e funds
obtained from th e sale of Class A and
B. stock.” “A ccu m u la ted earnings” are
for th e m ost p a rt reserv es b u ilt up
from th e subsidized in te re st income.
Class A stock belongs to th e govern
m ent, B stock to th e farm ers. No re
tu rn is paid on any of A or B stock—
except dividends on six associations in
1940 and nine in 1941 (out of a total of
530). T his incom e from these bonds
(inv estm en ts) am ounts to 2.76 p er cent
additional in te re st cost on 1941 loans
paid by tax p ay ers and farm er borrow
ers w ho hold Class B stock. Again, we
ge th e figure of overall cost of 8 p er
cen t plus. W here is th e re any real
saving in this subsidized lending se rv
ice?
H ere is a n o th er angle: 251,071 fa rm
ers held Class B stock (not necessarily
P
By C . W . Rossiter
President
Bank of Hartington
Hartinqton, Nebraska
Excerpts from an address on
P r o d u c t i o n Credit Subsidized
C om petition made by Mr. Rossi
ter before the recent Annual
Convention of t h e Nebraska
Bankers Association in Omaha.
borrow ers) at th e tim e of th e annual
m eeting in 1941. T his is 4 per cent
of th e total num ber of farm ers in th e
U. S. A. T he PCA m em bers are less
th a n .002—tw o th o u san d th s of one
p er cent of th e to tal population in the
U nited States. W hy should 96 per
cent of th e farm ers and all th e rest of
th e people pay th is subsidy and fu r
nish th is free capital to tw o th o u
san d th s of 1 p er cent of our population
a t th e excessive over-all cost of 8 per
cent for m ain tain in g th is unnecessary
lending agency?
Should, our contributions to the fed
eral treasury, by w ay of p a ym en t of
taxes and purchase of goverm n en t se
curities, be abused in this m anner to
continue a nonessential, nonw ar, bu
reaucratic federal u n it to duplicate and
com pete w ith existing and operating
private lending agencies, w hich do
pay taxes and require no su b sid y?
Does A. B. A. Speak?
L et’s all listen. L et’s m ain tain ab
solute silence for five seconds. Do
you h ear any voice from our great
A m erican B ankers Association? Do
you find th a t A. B. A. b ringing up any
reinforcem ents or any assistance to its
co u n try b ank m em bers in th is w ar
upon us and our fight for survival?
No!!! A g reat silence prevails. W hat
is th e A. B. A. doing in th is v ery im
p o rta n t m atter? It rem ains a secret—
perhaps a “m ilita ry ” secret.
Let us exam ine th e PCA record on
an o th er score. Up to May, 1942, it
had been o perating outside th e of
fice of B udget Control. In th e year
1940, in response to a call for all n o n
w ar agencies to re tu rn all borrow ed
funds th ey could possibly get along
w ithout, th e P roduction C redit System
paid into th e U. S. T reasu ry th e sum
of $15,000,000, w ith m uch publicity ad
v ertisin g th a t fact. In 1941, th e PCA
to P C A
took back the sam e sum of $15,000,000
—w ithout th e publicity w hich accom
panied its earlier retu rn .
Is th e record of this p articu lar tra n s
action a yard stick by w hich w e m ay
m easure th e a ttitu d e of th e F arm
C redit A dm inistration tow ard to the
general w elfare of our country?
Is not th is p articu lar act in the
sam e category w ith th a t of th e “pa
trio tic” citizen w ho advertises his
purchase of $10,000 in w ar bonds
th ro u g h his ow n b an k in N ovem ber
and th en quietly sells th em in some
o th er city in December?
Five years ago, in 1937, th e A m eri
can B ankers A ssociation had a com
m ittee re p o rt directing a tten tio n to
the fact th a t a continuance of PCA
com petition co nstituted a direct th re a t
“at the v ery roots of our A m erican
system of banking.” T h at rep o rt w as
filed aw ay and forgotten. So far as
the A. B. A. is concerned, it appears,
it is p erm an en tly buried.
J u s t a w ord to those w ho preach:
“It is up to th e banks to m eet PCA
com petition.” Or—“If th ey can ’t, let
’em fold up.”
Could your b an k com pete w ith a
p riv ately ow ned b ank across th e stre e t
w hich had all its capital donated to
it—no in te re st to pay thereon?
Could you com pete w ith a p riv ately
owned b ank w hich did not have to
pay the taxes you have to pay?
W hich had its advertising and ex
p e rt propaganda paid for by an o th er
source?
W hich enjoyed- its share of an in
te re st subsidy w ith 530 o ther sim ilar
banks in th e am ount of $3,200,000 in
1941?
Could you m eet th a t ch aracter of
com petition?
Then, how w ill you continue to do
so w hen you have this sam e com peti
tion in th e guise of a fa rm e rs’ o rgan
ization, com pletely directed and con
trolled by th e governm ent?
But, we m ust fight. We m ust fight
th is grow ing bureau cratic control
w hich w ould do all our th in k in g and
plan n in g for us, and issue th e edicts
to be carried out. W e m ust fight such
b u reau cratic control w here we find it,
w h eth er in the governm ent in W ash
ington or th e A m erican B ankers As
sociation in New Y ork City. W e
MUST FIG H T TO PR E SE R V E T H IS
HOME FRONT SO T H E BOYS MAY
RETU R N TO FIN D TH A T T H E IR
SA C R IFIC E ON FO R EIG N FRONTS
WAS NOT IN VAIN.
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
D ecem ber 1942
18
News
and
V iews
O F T H E B A N K IN G W O R L D
By Clifford DePuy
URING th e last few w eeks, we have
had in terv iew s w ith or listened to
a num b er of v ery p ro m in en t m en w ho
have discussed th e w ar and various
problem s related to it, an d w e th o u g h t
you m ight like a quick, concise review
of w h a t th ey said.
Joseph C. Grew, form er U nited States
am bassador to Jap an for the last 10
years and recen tly elected p resid en t of
the A ssociated H a rv a rd Club, told us:
D
“If Japan could defeat indom i
table China, organize her present
holdings, consolidate h er position,
Japan— not Germ any, not Britain,
not R ussia, not ou rselves—Japan
could becom e the stron gest pow er
in th e w orld.”
F ran k Sm others, foreign editor of
the Chicago Sun:
“The recent victory in the P a
cific refutes the statem en t w e have
heard th at our N avy in the Solo
m on Islands is practically non-ex
isten t. But, w e sh ould rem em ber
th is is only one victory in a section
of the global w ar.”
Jam es Brow n, for 20 y ears Y. M. C.
A. secretary in Rum ania:
“Over 85 per cen t of the R um a
nian population are favorable to
the A llies, but th ey w ere forced to
fight w ith H itler because of his
Iron Guards in R um ania, w ho
forced the R um anian au th orities
to declare w ar on R ussia Before I
left R um ania a few m onths ago, T
w as arrested by a Gestapo w ho
spoke E n glish p erfectly and told
me he graduated in 1935 from the
U n iversity of Chicago.”
L ou is P. Lochner, form er A ssociated
Press b u re a u chief in G erm any, and
th e last A m erican co rrespondent to
leave B erlin, says:
“A ir suprem acy is absolutely
n ecessary to w in the w ar, but
there is no lon ger any doubt as to
the outcom e of this war.
“The N azi party have n ever had
m ore than 43 per cent of th e Ger
m an people favorable to them
w h en th ey had a free election, the
last one b ein g in 1930. A fter the
first blackout, the G estapo stole all
of the election resu lts from then
to 1945, and did aw ay w ith all bal
lot booths so that th ey could w atch
h ow you voted, or else.”
K rishnalal Shridharani, a follow er
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
D ecem ber Î942
of G andhi and au th o r of the book,
“My India — My A m erica,” believes
that:
“India should be given her inde
pendence n ow and if the question
w ere put to a vote of the E n glish
people, 95 per cent w ould vote for
it.”
Sir Charles Morgan-W ebb, B ritish
m o n etary expert, disagrees sharply
w ith Mr. S h rid h aran i and says:
“The con gress party is stron g be
cause it controls election s through
the d iscipline of the undem ocratic
caste system . In 1939 the congress
party forced 8 of the 11 Indian
p rovin ces to discard th eir dem o
cratic co n stitu tio n s on the p retext
th e Indian people had not been
con su lted about declaring w ar on
Germ any.
“India did not valu e dem ocracy
w h en sh e had it and w o n ’t be dem
ocratic w hen sh e g ets h er freedom .
“B ritain has g iv en India more
and m ore self-govern m ent, and
P rim e M inister R am sey .MacDon
ald’s g o vern m en t offered India
com plete self-govern m ent 12 years
ago, recom m ending th e U nited
States C onstitution for considera
tion.
“An Indian com m ittee sat for 3
years w ith o u t b ein g able to w ork
out a system , w ith Gandhi fighting
everyon e and blocking all chances
for agreem en t.”
Dr. H erm ann R auschning, au th o r of
“The R evolu tion of N ih ilism ,” in a re
cent address on “The Secret A im of
German N ational Socialism ,” said:
“H itler is attem p ting to su b sti
tute N ational Socialism for all
form s of religion in the w orld, if
he w in s, but he w o n ’t. W hen the
breaking point com es in Germ any,
and it m ay be nearer than w e
thin k, it w ill com e first in the
A rm y and not w ith the German
people. W hen the Germ an soldiers
feel that they are losing the w ar
and furth er fighting is u seless, it
w ill be all over.”
Thom as J. N ugent, vice presid en t of
the F irs t N ational B ank of Chicago,
helped to organize in 1904 the ad v ertis
ing d ep artm en t of his bank and w as
well acquainted w ith th e late Em erson
De P uy, th en publisher of the N orth
B a n k er . L a te r on, F red E lls
w orth w as advertising m anager. He is
w estern
now vice p resident of th e H ibernia
N ational B ank in New Orleans. F ol
low ing Fred, Guy Cooke, assistan t
cashier of th e bank, has been the very
popular and efficient advertising m an
ager. Tom, for the last 16 years, has
been in th e banks and b anking division
of the F irst N ational. He has a son,
Thom as A. N ugent, w ho is 26 years of
age, w ith the Coast A rtillery in A us
tralia, and an o th er son, Joe N ugent,
who g raduated from N otre Dame and
is in the Signal Corps at A shland, K en
tucky.
As a logical follow-up to th e ir very
successful cover for Sugar R ation
Books, M ississippi Valley T ru st Com
pany of St. Louis is now giving wide
d istrib u tio n to a protective envelope
for Gasoline R ation Books.
T he fro n t of th e envelope has space
for the ow ner’s nam e and address, plus
a rem in d er th a t W ar Bonds are not
rationed, and th a t th e safest place for
them is in a safe deposit vault. On the
back of th e envelope are suggestions
as to how m otorists can conserve th e ir
cars and th u s do th e ir p a rt in our w ar
program . If you w ould like to see a
copy of this clever and tim ely “protec
tive envelope,” we are sure R alph K.
Brow n, personnel director and ad ver
tising m anager of th e M ississippi Val
ley T ru st Company, St. Louis, w ill be
glad to send you one.
W illiam D uncan, Jr., secretary of th e
M innesota B ankers A ssociation, in a
recent le tte r to th e N orthw estern
B anker said, “I w as very m uch in te r
ested in the article in th e N ovem ber
issue of th e N or thw estern B anker ,
w ritten by Oluf Gandrud, p resid en t of
the Sw ift C ounty B ank a t Benson,
M innesota.
“Mr. G andrud has th e an sw er to
m eeting the com petition of govern
m ent agencies and it is a m uch m ore
in telligent approach to th e problem
th an try in g to have ‘a law passed.’ ”
Lord K in d ersley, presid en t of B rit
a in ’s N ational Savings Comm ittee, in
a recent article figures th a t 40 per cent
of the national ex penditure in E ngland
d u ring the last fiscal y ear w as raised
by taxes. He says: “T his m eans that
a m an earning an incom e of $200,000
per annum is le ft w ith on ly $18,304 to
spend, and if he spends th is am ount,
a large slice of it goes in ta x es on the
goods he buys. That is a p retty effec
tive ‘soak ing of the rich.’ ”
R. J. Strom berg, presid en t of F. E.
D avenport and Com pany of Omaha, is
an ex p ert on safes, locks and v au lt
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
20
“My g irl’s the kind w h o ’s sure to join
Each n ew organization,
So now sh e’s oft' to F ort D es M oines
To help defend the nation.
A nd since I didn’t dream I ’d he
So lone and lorn a lackey,
Though sh e’s the WAC, I fear it’s m e
W ho’s really goin g w aaek y.”
equipm ent for banks. He d idn’t s ta rt
out to be a “doctor of locks,” b u t he
did stu d y to be a Doctor of M edicine
and after g rad u atin g from the U n iv er
sity of N ebraska in the L iberal A rts
course in 1915, he studied m edicine for
th ree years. He th e n en tered th e
Medical Corps of th e arm y in W orld
W ar I, b u t finally w ound up ru n n in g
the business he is now in, w hich w as
established in 1881 and serves th e
banks of N ebraska and Iow a v ery ef
fectively and efficiently.
R. H. M iller, p resid en t of th e Iow a
State B ank of Algona, has sen t us a
copy of a le tte r w hich is being m ailed
to all th e cooperative elevators in his
p a rt of th e state. As Mr. M iller says,
“ I thou ght you w ould be in terested to
learn to w hat ex ten t our governm ent
agen cies are in vading the banking
field.”
The le tte r is from T he Om aha B ank
of C ooperatives and is addressed “To
All Iow a Co-operative E lev ato rs,” and
discusses th e Soy B ean L oan and P u r
chase P ro g ram and says, “R equests are
increasing each day for th e b an k to
handle th e interest-b earin g sight d rafts
on soybeans p erm ittin g p articip atin g
cooperative elevators to ea rn one-half
of th e in te re st th a t w ill be collected on
these d rafts w hen th e y are called by
the Com m odity C redit C orporation.
“W e shall pu rch ase from any eligible
cooperative all interest-b earin g sight
drafts for soybeans stored in y o u r ele
v ator or CCC bins. Also, we shall h a n
dle for you loan p apers on soybeans
stored by y o u r p atro n s on th e farm .
In both cases, we shall divide th e in te r
est on a 50-50 basis w ith you. F o r illus
tratio n , on a $2,000 sight d ra ft w hich
we ca rry for six m onths, we shall col
lect $15 in terest. H alf of it, or $7.50,
will be m ailed to you for o riginating
and sending us th e p ap ers.”
Lady E. D. Sim ons, w ho is a m em ber
of th e council for M anchester U niver
sity, E ngland, has been in th is cou n try
study in g our educational system . In
a recen t address before one of th e Ro
ta ry Clubs she said th a t, “L ess than
18 per cent of all the children in E n g
land com plete a secondary school cur
riculum .”
In E ngland, public education is p ri
vately supported to a large ex ten t by
those w ho can pay tu itio n and those
who are unable to do so are assisted
from th e public ch arity fund. Public
secondary education extends only to
age 14 or the equivalent of th e ju n io r
high school level in th e U nited States.
Clarence S. R ye, vice p resid en t of
the L ittle R iver B ank and T ru st Com
p any of Miami, Florida, and form erly
in th e banking business a t N orth wood,
in a recent letter to us, said:
“I am glad to renew m y subscription
to th e N orthw estern B a n ker , w hich is
such a splendid publication. I assure
you th a t I appreciate th e N o rthw est
ern B anker as m uch as ever, n o tw ith
stan d in g th a t I am not p resen tly resid
ing in Iowa. N aturally, I h arb o r a
v ery w arm spot in m y h e a rt for th a t
g ran d old state and m y m any friends
there.
“Due to w ar conditions we are not
an ticip ating the norm al to u rist season.
T here is considerable activity here,
how ever, due to Officers’ T raining
Schools, N aval A ir T rain in g Stations,
etc., hence we find ourselves busy here.
“I shall be happy to be rem em bered
to m y m any Iow a b an k er friends and
w ould be pleased to have them look
me up if any of them have occasion to
come h ere.”
M ilton
E v e n in g
in
asked
Bracker,
Post,
th e
th e
Saturday
question,
“W here is m y w and erin g WAAC to
n ight?” and answ ered it by saying:
E. C. F ish bau gh, presid en t of the Sesu rity T ru st and Savings B ank of
Shenandoah, w as unable to atten d the
state convention th is year and his sm il
ing countenance w as m issed by m any
of his b an k er friends. In a recent let
te r to us, he said:
“M y nephew retu rn s fro m the bank
ers’ annual round-up to report a v e ry
interesting session. H e tells m e of a
pleasant dinner chat, during w hich
you inquired of this w riter in term s,
how ever, of uncertain im port, and
w ith w hich he has tw itte d m e since
his return.
i
“W ith malice tow ard none and char
ity for all, I prefer to believe that your
rem arks w ere k in d ly intentioned. The
m o st unpleasant w ord in our language
is ‘fo rg o tten ’ and regardless of w h a t
you m a y have said, it is pleasant to
know th a t I continue in yo u r m e m
ory.”
P rofessor Charles W. W illiam s of the
econom ics and com m erce d ep artm en t
of th e U n iversity of Louisville, is
strongly in favor of advertising during
w artim e and believes th a t post-w ar
days w ill probably offer “th e m ost gor
geous period of selling activity ever
seen in th e U nited States and th a t
financial ad vertising m en w ill be given
th e challenge to contribute to th e
resto ratio n of th e best p a rts of a
living, w orkable, dem ocratic capital
ism .”
R obert F. Clarke, presid en t of th e
B anking H ouse of A. W. Clarke, Papillion, N ebraska, and new ly elected p res
ident of th e N ebraska B ankers Associa
tion, is th e th ird g en eration of th e
Clarke fam ily to m anage th e ir bank,
w hich w as established in 1880 in th e
re a r of a grocery store by his g ran d
father, A. W. Clarke. T he bank has a
large territo ry , as it is th e only one in
Sarpy county and is th e center of
financial activity of th a t en tire county.
S carborough ¿.C ompany
¿7nÂuJU*M€^ ClaftAtU’ià,U rßn*tki
First N a tio n a l B ank B uilding, C h ica g o
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
D ecem ber 19^2
H o race A. Sm ith, Io w a R e p re se n ta tiv e
D es M oines, Io w a
A
4
i
21
/
---------------------------------------------------------------------------------
O TH ER
ALL
--------------
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6 -4 N /^ ,
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the simplicity of old style bank-by-mail envelopes, and intro
duces the improvements highlighted above.
Whether large or small, banks who are about to install
a mail service, will find this system readily adaptable to their
needs. Where a mail deposit plan is already in operation, a
change to Mercury Envelopes can be made without upsetting
the established routine. May
we discuss the details and "V1^
submit samples and prices? J j E R , K lC D W I T Z
Envelope Company
1912 Grand Ave., Des Moines, Iowa
N orthw estern B anker
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Federal Reserve Bank of St. Louis
D ecem ber 1942
22
W h at Farmers A r e Doing W ith
A n Extra Two Billion Dollars
Its W ise Use in Retirement of Debts Removes the Edge
From the Inflation Menace
ROFESSOR, we have a question
from a gentlem an, a banker, in the
gallery. A re you ready?
The $64 question is, w h at are farm
ers doing w ith th e ir ex tra funds? No,
it’s not a $64 question. I t ’s w h a t are
the farm ers doing w ith n early two
billion dollars?
W hy tw o billion? W hy not 11.2 bil
lion, w hich rep resen ts th e ir n et cash
incom e in 1942?
Because, M ister, 1.8 billion dollars
rep resen ts th e estim ated am ount of
funds farm ers will have left a fte r th ey
have paid taxes, re tire d debts, p u r
chased real estate, m ade im provem ents
and additions to equipm ent, paid in s u r
ance, m ade gifts and contributions and
purchased W ar Bonds.
T h a t’s quite a little residue, P ro
fessor. How m uch did farm ers have
left in 1941 a fte r paying such item s?
Only 110 m illion dollars w ere “un ac
counted fo r” as against 1,830 m illion
in ’42. L ast y ear th ey sp en t only 2.5
billion for th ese item s b u t th is y ear
th ey w ill have 4.8 billion to spend.
P
D /s r p / B o r / o / v o p Fa r m er g '
G r o s s P e c e /p p s p r o m â l l
S o u r c e s ( p a r /h a / vo r o r parm ) /9 4 0 -4 2
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
D ecem ber 1942
By Edwy B. Reid
Director Information and Extension
Farm Credit Administration
A nd th ey will have 1.8 billion left
th is year?
You guessed it, Mister!
Give th a t m an $64, Professor, w hile
we in q u ire a little into th e o ther th ree
billion dollars of th e farm ers’ n et in
come.
How m ay th ey spend th a t th ree bil
lion?
Som ething like this: P ersonal taxes,
110; debt retirem en t (real estate), 540;
(other) 800; purchase of additional
real estate, 160; life insurance, 300;
gifts and contributions, 385; W ar
Bonds, 675 million. T hat calls for 120
m illion m ore to be used in paym ent
of real estate debts and 150 m ore on
o th er debts. W ar bond purchases m ay
jum p from 90 in 1941 to 675 million.
O s e s o p /Ye t /k c o m e
¿ s o r s E xP E # D trt/* .E S
po p
F a r m F a m /l p
/Ç 4 /-4 2
Taxes m ay increase 90 m illion and
gifts and contributions 110 million.
Cost of fam ily living on farm s is
about 16 per cent g reater th a n in 1941
and th e cost of things farm ers buy w ill
be up some 17 per cent.
P erhaps these figures on debt pay
m ents and W ar Bond purchases can
be upped some. T here is, of course,
a grow ing shortage of civilian su p
plies th u s discouraging attem p ts to
raise th e stan d ard of living m aterially.
As A. G. Black, governor of th e
F arm C redit A dm inistration, recently
pointed out, th e cheapest things farm
ers can buy now adays are th e ir debts.
Prices of m ost things farm ers buy
have advanced b u t debts can be paid at
the original am ount and w ith a small
er q u an tity of farm products th an
w hen the obligations w ere contracted.
T h at farm ers see th is op p o rtu n ity is
borne out by the experience of m any
bankers, insurance agencies, and th e
F a rm C redit A dm inistration. F o r ex
ample, du rin g th e first nine m onths of
this year en tire pay-offs and paym ents
on principal to the F ed eral land
banks and on com m issioner loans to
taled $197,000,000, an increase from
$138,000,000 for the com parable period
a year earlier.
The F ederal land banks are re p e a t
edly pointing out to th e ir borrow ers
the w isdom of g etting out of debt or
cu rtailin g it du rin g tim es of h igher in
come. T hey are paying p articu lar a t
ten tio n to those farm ers w hose eco
nom ic heads are likely to be sub
m erged in tim es of low prices. The
banks reason th a t if th ey can get
these borrow ers to cu rtail th e ir debts
now, th ey w ill be able to w eath er fi
nancial storm s th a t are likely to be
encountered later. F o r instance, they
are pointing to th e reverse of th e pic
tu re back in 1932. In th e d airy areas
th ey tell th e ir borrow ers th a t they
can buy $100 of debt now w ith 4,000
pounds of milk, w hereas it took 7,000
pounds ten years ago. T hree hun d red
th irty -th ree dozen eggs w ill do th e
trick, w hereas 455 w ere req u ired in
1932. In th e grain te rrito ry th e banks
(T u rn to page 39, please)
23
The eyes of all
America are upon
the United States
Treasury Roll of
Honor appearing
in the "Payroll
Savings News. ”
For copy write
War Savings Staff,
Treasury Depart
ment, Washing
ton, D. C.
HOW TO
“TOP THAT 10% BY NEW YEAR’S“
O ut of the 1 3 labor-management conferences sponsored by
the National Committee for Payroll Savings and conducted
by the Treasury Department throughout the Nation has
come this formula for reaching the 1 0 % of gross payroll W ar
Bond objective:
1. Decide to get 1 0 % .
2»
3.
4«
5.
6
.
7.
It has been the Treasury experience wherever manage
ment and labor have gotten together and decided the
job could be done, the job was done.
G e t a committee o f labor and management to work out
details for solicitation.
a. They, in turn, will appoint captain-leaders or chair
men who will be responsible for actual solicitation of
no more than 10 workers.
b. A card should be prepared for each and every worker
with his name on it.
C. A n estimate should be made of the possible amount
each worker can set aside so that an "over-all"
of 10% is achieved. Some may not be able to set
aside 1 0 % , others can save more.
Set aside a date to start the drive.
There should be little or no time between the announce
ment of the drive and the drive itself.
The drive should last not over 1 week.
The opening of the drive may be through a talk, a rally,
or just a plain announcement in each department.
Schedule competition between departments,- show
progress charts d aily.
Set as a goal the Treasury flag with a “ T ."
AS of today, more than 20,000 firms of
. / V all sizes have reached the “Honor
Roll” goal of at least 10% of the gross
payroll in War Bonds. This is a glorious
testimony to the voluntary American way
of facing emergencies.
But there is still more to be done. By
January 1st, 1943, the Treasury hopes to
raise participation from the present total
of around 20,000,000 employees investing
an average of 8% of earnings to over
30,000,000 investing an average of at least
10% of earnings in War Bonds.
You are urged to set your own sights
accordingly and to do all in your power to
start the new year on the Roll of Honor, to
give War Bonds for bonuses, and to pur
chase up to the limit, both personally and
as a company, of Series F and G Bonds.
(Remember that the new limitation of pur
chases of F and G Bonds in any one calen
dar year has been increased from $50,000
to $100,000.)
T IM E IS SHORT. Our country is counting
on you to—
" T O P T H A T 10%
B Y N E W Y E A R ’S"
War Savings Bonds
This space is a contribution to America's All-Out War Program by THE NORTHWESTERN BANKER
N orthw estern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
D ecem ber 1942
M ay the prom ise of a W hite C hristm as
be fulfilled for you this h o lid ay season
and m ay the “Peace on E a r th ” p ro
claim ed by angels centuries ago become
a reality in the year a b o u t to unfold.
Western Mutual
FIRE INSURANCE COMPANY
N inth and Grand
Des Moines, Iowa
"Over a Third of a Century of Safety and Service unth Savings.”
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
D ecem ber 19T2
Selling Life Insurance In
A Shifting M arket
With Probably the Highest National Income in the History of Our
Nation in 1943, Bankers Selling Life Insurance Will Find
These Selling Tips Helpful
NE of th e o u tstan d in g discus
sions p resen ted a t th e recen t
an n u al m eeting of th e A m eri
can Life convention in Chicago w as in
th e agency section of th e program ,
titled “Selling Life In su ran ce in a
S hifting M arket,” by R ay E. F uller,
su p e rin te n d e n t of agencies of the E q u i
table Life In su ran ce Com pany of Iowa.
In developing his topic, Mr. F u ller
considered th e life in su ran ce m ark et
from the stan d p o in t of income, occupa
tional groups, th e policy contracts to
sell, and th e relativ e im portance of p ro
g ram and package sales. Speaking of
income, he said:
“The natio n al incom e in 1942 and
1943 w ill be th e larg est in th e h isto ry
of th e country. E stim ates ru n from
$110,000,000,000 to $117,000,000,000 in
1942, and up to $125,000,000,000 in 1943.
“T here are m ore fam ilies enjoying
su b stan tial incom es and increased in
comes in 1942, and probably in 1943,
th a n at an y o th er previous tim e. Not
only has th e natio n al incom e increased,
but th e average fam ily gross incom e
has increased.
“These studies revealed th a t, despite
increased taxes, increased living costs,
and the advisability and necessity, as
well as th e p atrio tic u rge to invest in
W ar Bonds, th e re w ill be an increased
am o u n t of m oney available for optional
spending or saving. B ut th e oppor
tu n ity for spending for sem ip erm an en t
consum er goods, such as autom obiles,
electric refrig erato rs, and so forth, is
g reatly reduced and m ay d isappear en-
m ethods of prospecting th ro u g h his
policyholders and centers of influence,
w ho have alw ays yielded him pros
pects in th e past. To the u n d erw riter
w ho continues to use these m ethods of
prospecting in th e p resent, resu lts will
be equally satisfying.
O
RAY E. F U L L E R
tirely. The o p p o rtunity for spending
for u n restrain ed living w ill be lim ited.
T his optional spending money, after
taxes are tak en out, m u st be saved and
a substan tial portion of it san be saved
in life in su ran ce.”
Considering th e m ark et from the
standpoint of occupational groups, the
speaker said:
“W hat business and professional
people, w h at executives, w h at su p erv i
sors, w hat p lan t forem en, w h at clerical
w orkers, can be sold today by the u n
d erw riter? Only th e u n d e rw rite r can
answ er th a t question. The problem of
individual prospecting still rem ains as
it alw ays has. The a lert u n d e rw rite r
will answ er this question by the usual
“Two o th er classifications should be
considered by the u n d e rw rite r in con
nection w ith th e presen t situ atio n —
w om en and farm ers. C ertainly, it is.
obvious th a t th e num ber of em ployed
w om en has increased and w ill continue
to increase. It is estim ated th a t a t least
seven m illion additional w om en be
tw een the ages of seventeen and fortyfour could be d rafted for w ar w ork
and m any of these w om en w ill ev en tu
ally be in w ar w ork as m ore and m ore
of the younger m en, now engaged in
w ar w ork, w ill be selected for the
arm ed forces. F u rth erm o re, th e level
of com pensation is the highest ever
paid to w om en employes.
“The farm er certainly should n ot be
neglected by u n d erw riters capable of
cultivating this m arket. He is reaping
a real harvest. E stim ated farm income
for 1942 is over fifteen billion dollars
—a gain of 74 per cent over 1939. This
incom e adjusted for increasing farm
costs has risen 43 per cent. His option
al saving pow er is great. The farm er,
furth erm o re, tends to be m ore conserv
ative th a n th e city m an in his expendi
tures, because he has been dealing w ith
sm aller cash incom es and securing at
least a portion of his living from the
farm . The fu tu re of this m ark et is
S carborough ^ C ompany
*
r y y iò u 'i u n a : y
First N atio n al Bank B uilding, C hicago
tS ß n n k i
H orace A. Sm ith, Io w a R e p re se n ta tiv e
Des M oines, Io w a
N orthw estern Ranker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
D ecem ber 1942
26
m ost prom ising. T here will continue
to be a dem and for farm products a fte r
the w ar has ceased.”
Going nex t to th e types of policies to
be sold in th is shiftin g m ark et, Mr.
F u lle r stated:
‘The sale of life in su ran ce begins in
1942 as it did in 1922 and in 1932, and
as it w ill in 1952, w ith a discussion of
the need for life in su ran ce and th e fix
ing of th a t need as a personal problem .
Once th e problem is fixed, th e n th e re
are several w ays of solving th a t prob
lem. T here m ay be five or six possible
com binations of th e savings and p ro
SPECIAL OFFER
TO BANKERS
Health, Accident or Hospital
Insurance Paid up in Full to
the M iddle of next June for only
$2.00 p er policy.
These policies are full cover
contracts in a reliable, finan
cially sound com pany of 37
y e a rs' successful service.
W rite for application to
Minnesota Commercial
Men’s Association
P a u l C lem ent, S ecretary
2550 P illsb u ry A ve.
M in n eap o lis, M inn.
1SOO
tection elem ent. In seeking the solu
tion for the individual, th e conscien
tious u n d e rw rite r w ill consider th e in
come of his prospect and his fu tu re
economic outlook. He sells his p ro s
pect sanely and perm an en tly th a t type
of in su rance w hich he can reasonably
m aintain. In some cases it w ill neces
sitate term insurance, in o th er cases
o rd in ary life, in o ther cases lim ited pay
life, in o th er cases endow m ent in su r
ance; in m any cases a com bination of
tw o or m ore form s. In his desire to
cover needs, th e u n d e rw rite r does not
rely on a specific type of policy. By
co n stantly keeping th a t in m ind, the
problem of th e reconciliation of th e
need and th e p rospect’s incom e will
solve itself by discussion.
“T here m u st be no com petition w ith
W ar Bonds. It m ay be th a t the u n
d ew riter should s ta rt w ith th e assum p
tion th a t th e prospect is p u ttin g 10 per
cent of his incom e into W ar Bonds. If
his discussion yields th e fact th a t the
prospect isn ’t doing th a t well, he
should urge him to step up his p u r
chase of bonds. The u n d e rw rite r m ay
w ell em phasize th a t th e c u rre n t p re
m ium incom e is being invested in govv e rn m e n t bonds, b u t his em phasis
should not be such as to give th e pros
pect any reason for w ith d raw in g his
full m easure of su p p o rt from the bond
pu rch ase p rogram .”
The final phase of Mr. F u lle r’s dis
cussion of his topic w as concerned
w ith th e relationship betw een package
and program sales. H ere he said in
part:
“W hile th ere are m illions of new
prospects w hose p rim ary insurance
needs w ill have to be m et w ith package
sales, it is not th e belief th a t th e u n
P o te n tia l D a m a g e Su its
W i l l C o m e to Y o u r H o m e
E v e r y v is ito r , s a le s m a n , m a ilm a n — in f a c t , e v e r y o n e w h o c o m e s o n y o u r
p r e m is e s — b r in g s a lo n g a p o s s ib le d a m a g e su it in c a s e o f a c c id e n t . . .
at le a s t 1 ,5 0 0 s u c h e x p o s u r e s d u r in g 1 9 4 3 .
L e t a n A llie d M u tu a l a g e n t sh o w y o u h o w a s im p le ,
IN S U R A N C E
lo w -in -c o s t R e s id e n c e P u b lic L ia b ility p o lic y w ill p r o
FOR SER V A N TS
te c t y o u r le g a l lia b ilit y f o r c la im s , in c lu d in g m e d ic a l
P a y s u p to $500 M ed
a n d h o s p it a l a id f o r g u e s ts . H e c a n t e ll y o u a b o u t
ic a l a n d H o s p ita l E x
c o v e r a g e p r o t e c t in g y o u a g a in s t su its b r o u g h t b y
pense.
D e fe n d s a g a in s t d a m
s e r v a n ts a n d c a n f u r n is h m e d ic a l a id to s u c h se r v a n ts.
a g e s u its fro m p a r t
S e e y o u r A llie d M u tu a l A g e n t o r w rite u s f o r d e ta ils
o r fu ll tim e h e lp .
o f th is m o d e r n p o lic y .
ALLIED MUTUAL
C A SU A L T Y COMPANY
Harold S. Evans, President
Mubbell Building
N orthw estern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Des Moines, Iowa
D ecem ber 19'f2
d e rw rite r should shy aw ay from pro
gram sales m ethods. To do so would
m ean the sacrifice of m any y ears of
w ork already p u t in on em phasizing
the needs of sound program selling.
If the u n d e rw rite r w ere now, u n d er
the press of w ar conditions, to ‘shelve’
tem p o rarily his program sales plans to
a large degree, it m ight take y ears of
w ork later to rep air the dam age done.
No one know s how long th is w ar m ay
last. If it w ere to last only six m onths,
the package sales m ight receive m ost
u n u su al em phasis for a little tim e w ith
out destroying m uch of the program
selling concept w hich he has spent
y ears in creating and is only now get
tin g into action.
“Because alm ost everyone com pris
ing the u n d e rw rite r’s m ark et is very
busy these days in direct w ar w ork, or
is g reatly increasing his acivity in
civilian life to provide his organization
w ith the p roper flow of w ork, the tim e
elem ent is especially im portant. T h ere
fore, since interview s are difficult to
secure and m u st be intensive in th e ir
nature, th ere w ill probably be an in
crease in package sales. M any life u n
d erw riters adm it th a t th ey are not u s
ing all th e tim e th ey have available. It
w ould seem reasonable, then, th a t th ey
could several tim es a day use addition
al selling effort on package sales, w ith
out im pairing g reatly the program sell
ing w ork th ey are now doing. Solely,
then, because of th e tim e elem ent, it
w ould seem th a t today package sales
will be used as a basis for probable
fu tu re program m ing.”—T H E E N T ) .
A New Science to
Lengthen Lite
As w artim e w an t ads beg for older
w orkers, the new science of geriatrics
sets out to stretch the prim e of life
into th e sixty and seventy-year-old
age brackets, according to a study by
N o rth w estern N ational Life In surance
Company.
Of approxim ately eighteen m illion
A m erican m en forty-five y ears old or
over, fourteen m illion are now actual
ly at w ork, m any draw n out of re tire
m ent by th e call for m ore m anpow er.
B ut of th e rem aining four m illion,
th ree m en out of four are unfit to
w ork, because of ill h e alth or other
disability, and m any of th e fourteen
m illion at w ork can give only lim ited
service.
M illions m ore A m ericans now live to
age sixty-five and beyond, th an in
form er years, b u t th e ir health after
fifty has been im proved little, if any,
says the study. A verage life span is
longer because of b rillian t achieve
m ents in com bating th e diseases of in
fancy and youth. B ut th e re has been
a corresponding steady increase in the
27
k
n u m b er of helpless, disabled oldsters
in th e U nited States.
The w ork of g eriatrics is to p ro tect
th e norm al, h e a lth y aging process.
T here is no reason w h y th e average
m an or w om an cannot be vigorous,
happy and successful at sixty-five, sev
en ty or even eighty—norm al aging
need not be deterioration, says th e
study.
Medical reserch in p rev en tiv e g eri
atrics is now u n d e r w ay to develop a
program of special h ealth education
for persons betw een persons betw een
fo rty and sixty, in order th a t th e y w ill
take p ro p er care of them selves in th a t
vital period and p rep are for norm al,
h ealth y aging. Indicated for th e n ear
fu tu re is th e developm ent of special
vocational education for th e aged, so
th a t th e y can tak e p ro p er advantage*
of th e ir changing pow ers and re ta in
th e ir independence. T his w ill come as
a n a tu ra l extension of th e w o rk of th e
ad u lt education cen ters alread y estab
lished at hu n d red s of A m erican
schools, colleges and universities, th e
stu d y predicts, p ointing out th a t the
developm ent of such centers, open to
ad u lts regardless of previous educa
tion, is one of th e g re a t fo rw ard steps
of recen t y ears in th e field of A m erican
education.
In 1900, p ersons forty-five years old
or over in th e U nited States com prised
slightly over one-sixth of our en tire
population, w hile in 1940 th is age
group had expanded to include m ore
th a n one-fourth of th e to tal popula
tion. T hus th e im portance of g e ria t
rics is increasing rapidly, as com pared
w ith th e alread y highly developed
science of pediatrics, devoted to the
h ealth of in fan ts and grow ing children.
B etw een 1930 and 1940, U nited States
population sixty-five years old or over
rose from 6,600,000 to n early 9,000,000
—an increase of 35 p er cent, com pared
to a gen eral population increase of
slightly over 7 p er cent in th e sam e
time. M eanw hile, th e pro p o rtio n of
male w o rk ers sixty-five or over a c tu
ally decreased.
The pro p o rtio n of
w o rk ers forty-five to sixty-four years
EMPLOYERS
MUTUAL
CASUALTY COMPANY
DES MOINES
old increased, b u t m uch less th a n th e ir
p ro p o rtio n ate increase in population.
Some p a rt of th e decrease in w ork
p articip atio n by older people in the
p ast several decades has been due to
v o lu n tary re tire m e n t th rough increase
in pensioning plans and g re a te r use of
life in su ran ce re tire m e n t program s,
etc., as th e w ealth of th e co u ntry in
creased, th e stu d y points out. B ut the
w ith d raw al of older persons from w ork
has been m ainly due to physical or
m ental ill h ealth —to actual unfitness
for self-support.
Today in d u stries plead for addition
al m anpow er over the age of forty-five.
Town Mutual
Celebrates 50 Years
The Tow n M utual D welling In su r
ance Com pany of Des Moines, the
largest exclusive dw elling p ro p erty in
surance com pany in A m erica last
m onth celebrated its fiftieth an n i
versary. In view of the w ar em er
gency and for patriotic reasons, the
com pany did not stage a form al cele
b ratio n of any character.
The Tow n M utual is now a com
pany w ith total assets of approxim ate
ly $2,140,000. It has in force a to tal
of $572,000,000 of insurance.
The com pany has a unique history.
1892 — 1942
and today—
The Largest Exclusive Dwelling
Insurance Company in America
Here is the story written by half a century of sound growth,
conservative mutual management, and progressive service to
the policyholder:
O v e r $ 5 7 0 , 0 0 0 , 0 0 0 i n s u r a n c e in f o r c e .
P o lic y h o ld e r s ’ s u r p lu s su ffic ien t to p a y S I X Y E A R S a ver a g e
losses.
A ssets o v e r $ 2 ,1 3 0 ,0 0 0 .
O n l y 4 c l a i m s c o n t e s t e d in 5 0 y e a r s .
O n e in e v e r y 5 c i t y a n d t o w n d w e l l i n g s in I o w a i n s u r e d w i t h
th is c o m p a n y .
To the bankers of Iowa we take this opportunity to say
“thank you,” and to pledge our best efforts in continuing the
same principles
—•>.
'n
>.
of cooperation
/ S NS
{ J
^
and service in Jr* J
""
the future.
V- " <
President.
An Agency Company — Assetr Over $4,000,000
• Automobile Insurance
Workmen’s Compensation
• General Liability
• Elevator Insurance
• Plate Glass Insurance
Town Mutual Dwelling Insurance Co.
Hubbell Building, Des Moines
N orthw estern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
D ecem ber 19!t2
28
'
i
r
Men, Money,
and Munitions
These are the sinews of War
•
I t w as organized in Novem ber, 1892,
by a group of th irty-eight pioneer m u
tu al insurance m en w ho m et in Des
M oines to organize a m u tu al fire in su r
ance association to w rite insurance on
Iow a tow n and city dw ellings exclu
sively. It has continued to w rite dw ell
ing p ro p erty in surance exclusively,
b u t it now operates in four states, in
cluding Iowa, M innesota, South Da
kota, and Colorado.
A n in terestin g sidelight on its Iowa
business in force is th e fact th a t ap
proxim ately 20 p er cent of all city and
tow n dw ellings in Iow a w hich are in-
As the American war effort expands
from the production line to battle lines
all over the World, it becomes increas
ingly apparent that many men, much
money, and a staggering quantity of
munitions will be needed to assure
victory to the United Nations.
The United States possesses all three
essentials, and it is daily more evident
that military, industrial and banking
organization have made them available
for immediate use.
The Philadelphia National is proud to
be numbered among the many great
financial institutions which have con
tributed to this accomplishment.
. . . THE . . .
P H IL A D E L P H IA
NATIONAL
BANK
O R G A N IZ E D 1803
PHILADELPHIA, PA.
Resources over $ 6 5 0 ,0 0 0 ,0 0 0
Member of Federal Deposit Insurance Corporation
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
D ecem ber 194-2
/
B. R E E S J O N E S
sured are in su red in th e Tow n M utual
D w elling In su ran ce Company.
D uring its fifty years, th e com pany
has had only four presidents, includ
ing C. W. N orton, C. J. A nderson, F.
E. Gordon, and its p resen t head, B.
Rees Jones, u n d er w hose able m anage
m ent th e com pany has m ade such
splendid progress in recen t years.
Mr. Jones began w ith th e com pany
as bookkeeper in 1906, w orking his
w ay up th ro u g h th e various offices u n
til he becam e secretary and general
m anager in 1916 at th e age of only
thirty-five years. He becam e president
in 1931.
Mr. Jones is w ell know n in national
insurance affairs and in 1935 w as p resi
dent of th e N ational A ssociation of
M utual In su ran ce Companies.
Officers of th e Tow n M utual Dwell
ing In su ran ce Com pany include P resi
dent B. Rees Jones, Vice P resident
L ester T. Jones, S ecretary F. H. D irst,
and T re a su re r G rant M cPherrin.
The com pany has a stro n g board of
directors, including S enator Clyde L.
H erring, F ra n k H. D irst, L ester T.
Jones, O. B. M cKinney, R J. Sullivan,
R. Lloyd Young, R ex H. Fow ler, H arry
F. Gross, G rant M cPherrin, and B.
Rees Jones.
1
;
29
Urge CuStOtnetS to Buy W a r
Bonds
Buy Short-Term Governments Yourself
P ractically all th e
new s, from a finan
cial standpoint, w as
1
good in N ovem ber.
T h e R e p u b lic a n
J
p arty , w hich rig h t
ly or w rongly has
alw ays been con3T'
sidered th e re p re
sen tativ e of sound
m oney and b u si
ness, m ade substantia] gains in th e
elections of N ovem ber 3rd. A nd our
own troops, along w ith th e B ritish,
m ade spectacu lar gains in N o rth Af
rica. R eports from th e Solomon Is
lan d s’ area w ere good, and rep o rts out
of R ussia in th e last few days indicate
fu rth e r tro u b les for th e Axis pow ers.
In short, th e re w as p ractically no real
bad new s all m onth, b u t th e m ark ets
did little.
A t least th at is true from th e stand
point of the averages of prices for
stocks. A s of M onday, N ovem ber 2nd,
the D ow Jones average for th irty rep
resen tative industrial stock s stood at
114.07—th is m orning (N ovem b er 27th)
th ey are 114.40 at the end of the first
hour of trading. Good n ew s helped
early in the m onth—esp ecially the
passage of a tax b ill w hich w as not
too hard on b u sin ess. Over a m illion
sh ares traded on N ovem ber 9th and
the averages clim bed to 117.30—but
the n ex t day th ey broke a full point
and there has been a sligh t down trend
ever since.
There w ere three m a rk e t holidays
in N o vem b er— but including the day
before T h a n ksg ivin g there have been
n in eteen days of trading in N o vem b er
— w ith three still to go. As to actual
gains and losses, the record is 'prac
tically a stand off, w ith gains reported
on ten days and losses on nine. A n d
the m a rk e t has continued to follow a
policy w h ich has been in evidence for
the past several w e e k s— th a t is, to
fa vo r the so-called “peace” sto cks at
the expense of the “w ar babies.”
A lthough peace ta lk seem s p rem a
tu re a t th is tim e, it is logical th a t in a
nation w h ere th e re are m any optim ists
th e opening of an o th e r fro n t in N orth
Africa, plus some successes ag ain st
The Month's Market Maneuvers
Prepared for
The Northwestern Banker
By James H. Clarke
Assistant Vice President
American National Bank & Trust Co.
Chicago
Japan, should brin g out th o u g h ts of
w h at stocks w ill do b est u n d er post
w ar conditions. The autom obile stocks,
G eneral M otors and C hrysler—th e oil
com panies, th e ru b b er m an u factu rers,
th e finance com panies, m erchandising
and m ail o rder com panies, are a few
exam ples of th e types of stocks fav
ored in a so-called “peace m a rk e t”.
The coppers, the rails, certain aviation
securities, and so forth, have suffered
from liquidation in w h at can be term ed
a “peace scare”. A few sh arp reverses
for th e U nited N ations could change
th is tre n d quickly-—b u t w h eth er it is
sensible or not, th e stock m a rk e t re
cently has been saying th a t th e w ar in
E urope should be over some tim e in
1943, and in th e Pacific in 1944.
The g o v ern m en t bond m arket has
been firm. T his is to be expected, of
course, under p resen t circum stances.
B efore th is article appears in print, the
T reasury w ill have sold four b illion s
in sh ort term certificates and bonds—
attractive, too—to banks. B u t the drive
w ill still be on to sell tax notes, W ar
B onds, the n ew “tap” issue, and so on,
to in stitu tio n s, tru st funds, corpora
tio n s and in dividu als. T h is m orning
w e looked back through a file of th ese
articles to see h ow w e had stated our
stand on all th is financing. Since the
first of the year—fortun ately— w e have
urged banks to load up on short g o v
ernm ents—w h a t w ith loans declining
and other rev en u es d ryin g up. From
n um erous bank statem en ts w e have
seen —w h ere cash runs as high as 50
to 70 per cent of d ep osits—th is advice
has not been follow ed. B u t w e still
thin k that, it is good.
L ast m onth w e pointed out that the
ten largest N ew York banks had 25
per cen t of th eir d ep osits in cash on
Septem ber 25th — Chicago banks are
apparently carrying 28 to 32 per cent.
Country banks w ho cannot see expand
in g loan needs in th eir com m un ities
should, in our opinion, expand th eir
g overn m en t bond in v estin g program .
M unicipal bonds on the w hole have
been slig h tly easier during N ovem ber,
although som e of the revenue issues—
toll bridges, gas ta x bonds, and the
like— have been som e better. A gain
the “peace” m a rket has helped such
issues despite the continuation of
low er earnings.
Second grade rails have also suffered
fro m the belief that the w ar w ill be
over sooner than expected— and loss
of w ar business plus introduction of
n ew com petition w ill hurt. Holders
of such bonds— m a n y of th em specu
lators— sell out q u ickly on n ew s of
victories. I f the w ar lasts as long as
the W ar D epartm ent has indicated,
there are still m a n y m o n th s of good
earnings ahead fo r the rails. Good
earnings w h ich probably w ill be used
v e ry largely by the roads them selves
to buy in th eir discount bonds and
retire them .
Public u tility bonds have been quite
firm. T he election new s w as in te r
preted as favorable to the utilities, and
th e tax bill in its final form w as n ot as
severe as it sta rte d out to be. The
railroads, after y ears of regulation and
criticism from every qu arter, now have
some friends, even in W ashington.
Now th a t th e u tilities have p re tty well
straig h ten ed around th e ir houses in
the p ast ten years, it is g etting increas
ingly likely th a t it w ill no longer be
popular to abuse them . It is not at
all unlikely th a t th e utilities, like the
railroads, w ill find a few friends, and
again, even in W ashington.
There w ill be v ery little corporation
financing of any type, how ever, for
the duration. The em phasis w ill be
on the sale of g o vern m en t bonds, and
th is em phasis w ill in crease. W e shall
no lon ger find “b u sin ess as u su a l” in
our b anking h ou ses and those bankers
w ho recognize th is first w ill fare the
best. In the larger cities, the loans
m ade under R egulation V w ill help the
big banks som e, but out through the
country, bankers are p retty m uch
N orthw estern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
D ecem ber 19f 2
30
forced to depend on the governm ent
bond m arket for incom e. W e can in
terpret p resen t developm en ts no other
w ay. U rge your custom ers to buy W ar
Bonds. B uy short term governm ents
yourself. It’s good b u sin ess to do so.
ton. Mr. B erndt is a g raduate of th e
U niversity of Illinois and Jo h n M ar
shall Law School. He has been a
stu d e n t of the G raduate School of
B anking for th e p ast tw o years.
Ryan Regional Manager
Receives Commission
E dw ard A. B erndt, a ssistan t tru s t
officer of the A m erican N ational B ank
and T ru st Com pany, Chicago, has been
com m issioned lieu ten an t ju n io r grade
in th e U nited States N avy and has
reported for active duty in th e B ureau
of Supplies and A ccounts in W ashing
H erb ert L. H orton, chairm an of the
Iow a Regional V ictory F u n d Com m it
tee, announces the appointm ent of L.
H. (Pug) Ryan, of O ttum w a, as assist
a n t regional m anager. Mr. R yan has
for m any years conducted an in v est
m ent business in O ttum w a u n d er the
nam e of L. H. R yan & Company.
Mr. R yan’s duties w ill be p rim arily
to cooperate w ith th e b an k ers of
S outhern and S outheastern Iow a in
the prom otion of sales of th e various
governm ent issues and th e tax sav
ings notes, to banks, in stitu tio n s, cor
porations and larger investors.
T his appointm ent, made w ith the
approval of th e S ecretary of th e T reas
ury, is an o th er evidence of th e im
portance and size of th e job th e b an k
ers of th e nation m u st handle in the
proper financing of th e costs of the
w ar effort.
Use Idle Bank Deposits
E dw ard E. Brown, p resid en t of the
F irs t N ational B ank of Chicago, in a
recent statem en t urged corporations
and individuals to use th e ir idle b ank
deposits to purchase governm ent se
curities. Mr. B row n is chairm an of
th e A dvisory Council of th e Federal
R eserve System. His statem en t re
ferred to the plans of the governm ent
BONDS
Public U tility
Industrial
R ailroad
M unicipal
A.C.A LLY N andc o m p a n y
In corp orated
100 W e st J lo n r o e S tr e e t, C h i c a g o
N e w Y ork
R e p r e s e n t a t iv e s :
M ilw a u k e e
W a te r lo o
GENERAL
J U t
MOTORS
O m aha
B o sto n
D e s M oin es
C edar R a p id s
E D W A R D E. B R O W N
ACCEPTANCE
CORPORATION
is engaged prim arily in facilitating
wholesale distribution and retail sales
of consumer goods m anufactured by
liquidating credits, which are widely
diversified as to region and enterp rise , c a p ita l e m p lo y e d b e in g in
G e n e r a l M otors C orporation
excess o f e ig h ty m illio n d o lla rs.
and its affiliates or sold by dealers
In obtaining short term accommo
in its products, such as automobiles
d a tio n , GMAC issues one s ta n
and trucks; refrigeration
dard form of note. This
and air conditioning apobligation it offers to
GENERAL
pliances; lighting, power
banks and institutions,
MOTORS
and heating equipm ent.
in convenient m aturities
T he business consists
IN STA LMENT
a n d d e n o m in a tio n s at
of investm ents in self'
P LA N
current discount rates.
These
EXECUTIVE
notes
OFFICE
are available, in limited amounts, upon request.
NEW
YORK
N orthw estern B anker D ecem ber 19b2
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
-
BRANCHES
IN
PRINCIPAL
CITIES
to raise nine billion dollars to m eet
risin g w ar expenditures.
“W e believe th a t a corporation th a t
is carry in g a balance of ten m illion
dollars w ith us should use those funds
for th e purchase of governm ents to
the ex ten t th a t th ey are not needed
to finance th e c u rre n t operation of th e
business,” B row n said.
“If five m illion dollars is enough to
m eet all th e im m ediate financing needs
of th e business, th e rem ain d er should
be used to purchase sh o rt term govern
m ent securities.”
Individuals should draw on th e ir
savings deposits, Brow n added, to do
th e ir p a rt in financing th e govern
m en t’s w artim e spending.
E m phasizing th e desirability of
m eeting as large a p a rt as possible of
th e g o v ern m en t’s borrow ing outside
31
of th e banks, B row n m ade plain th a t
th e b anks them selves w ill of necessity
fu rn ish a su b stan tial sh are of th e
tre a s u ry ’s funds.
W h at is n o t raised by tap p in g th e
savings and c u rre n t incom e of corpo
ratio n s and individuals, he said, w ill
be borrow ed at th e banks.
“The b an k borrow ing, if not directly
inflationary, is a t least p o ten tially in
flationary,” he said. “B ank deposits
w ill be expanded to th e ex ten t th e
tre a su ry finds it n ecessary to rely on
b an k borrow ings.”
B row n m ade clear th a t he believes
it is th e p atrio tic d u ty of all b an k ers
not only to p articip ate fully on th e ir
ow n account, b u t to urge th e ir cus
tom ers to buy govern m en t securities.
The banks, he said, should act in con
cert in u rg in g depositors to lend dor
m an t com m ercial deposits and savings
to th e T reasury.
be called upon to absorb a trem endous
volum e of T reasu ry securities in order
to finance th e w ar,” Mr. Young stated,
“and it is th e p articu lar job of th e
victory fund com m ittees to w ork w ith
th e U nited States T reasu ry in secur
ing as m uch as possible of th e m oney
out of c u rre n t incom e of individuals
and corporations in order to m inim ize
th e inflationary aspects of huge T reas
u ry spending.”
Decker a Major
O. P. Decker, vice presid en t of the
A m erican N ational B ank and T ru st
Com pany of Chicago on leave, has been
com m issioned a m ajor in th e arm y.
He is stationed in th e h ead q u arters
services of supply, W ashington, w here
he has been serving in a civilian ca
pacity since A ugust.
F. A . A . Elects
B alloting by mail, for th e first tim e
in its 27-year history, m em bers of the
F inancial A dvertisers A ssociation now
“a tten d in g ” a convention - by - mail,
elected officers for the com ing y ear as
follows: P resident, L. E. Tow nsend,
a sistan t vice president, B ank of A m er
ica; first vice president, Lew is F. Gor
don, assistan t vice president, Citizens
W aibel Named Director
As p a rt of th e plans for im plem ent
ing th e cam paign to help th e U nited
States T re a su ry sell th e larg est volum e
of securities ever offered by any gov
ern m en t, C. S. Young, p resid en t of
th e F ed eral R eserve Bank, has ap
pointed J. K. AVaibel directo r of edu-
W
the farmer the soldier wouldn’t travel fa r; without
the soldier the farmer would be farming for the Axis.
ITHOUT
In 1942 the combination of good weather and the hard work
of farm families all over the country produced the biggest
crops on record. Those crops, together with the record
breaking production of livestock, are helping win the war.
j . K. W A I B E L
cation for th e sev en th d istrict victory
fund com m ittee. Mr. W aibel, w ho is
ad v ertisin g counsel for th e C ontinental
Illinois N ational B ank and T ru st Com
p any of Chicago, has been g ran ted a
leave of absence in ord er to devote his
full tim e to the p resen t drive. He w ill
have offices in th e victory fund com
m ittee h e a d q u a rte rs at th e F ederal
R eserve Bank. He w ill be associated
w ith F ran cis F. P a tto n and N ath an D.
McClure, m anagers of th e com m ittee.
“The A m erican people are going to
More food, fiber and vegetable oils will be needed in 1943.
It’s going to be a harder ¡ob. W e can’t count on such good
weather again. The labor supply will be short and less new
machinery will be available. But our farm families are out
to do the job regardless of the difficulties.
Fortunately, there’ll be no shortage of credit for the sound
operators. City dollars will flow to farmers through the Federal
intermediate credit banks and local lending institutions. Buyers
of Federal intermediate credit bank debentures are, there
fore, aiding in the battle of production on the farm front.
THE FEDERAL INTERMEDIATE CREDIT BANKS
SPRINGFIELD, MASS.
LOUISVILLE KY.
ST. PAUL, MINN
BALTIMORE, MD.
NEW ORLEANS, LA,
OMAHA, NEB,
COLUMBIA S. C.
ST. LOUIS MO
WICHITA, KAN.
BERKELEY CAL,
SPOKANE
WASH
F u r t h e r i n f o r m a t i o n r e g a r d i n g t he D e b e n t u r e s m a y b e o b t a i n e d fro m
CHARLES R. DUNN, F is c a l A g e n r
31 Nassau Street, New York, N. Y
N orthw estern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
HOUSTON TEX,
D ecem ber 1942
32
and S outhern N ational B ank, A tlanta,
Georgia; second vice president, J. Lewell Lafferty, vice president, F o rt
W orth N ational B ank, F o rt W orth,
Texas. It is th e custom of th e asso
ciation to m ove its vice presidents
up each year. The office to be filled
by a new com er to th e official fam ily is
th ird vice president. Dale B row n, as
sistan t vice president, N ational City
Bank, Cleveland, Ohio, w as elected
to th a t office. F re d W. M athison, a s
sistan t vice president, N ational Secu
rity B ank of Chicago, w as re-elected
treasu re r.
In th e sam e election, m em bers w ere
chosen for th e board of directors. The
new board includes: M errill A nderson,
M errill A nderson Co., New York, N. Y.;
P hilip K. B arker, G ranite T ru st Co.,
Quincy, M assachusetts; Leland C. B ar
ry, U nion T ru st Co., P ittsb u rg h , P en n
sylvania; V ictor Cullili, M ississippi
V alley T ru st Co., St. Louis, M issouri;
Jo h n deL aittre, F arm ers & M echanics
Savings Bank, M inneapolis, M innesota;
Sw ayne P. Goodenough, Lincoln-Alli
ance B ank & T ru st Co., Rochester,
N ew York; R obert L indquist, A m eri
can N ational B ank & T ru st Co., Chi
cago, Illinois; T hoburn Mills, The N a
tional City Bank, Cleveland, Ohio; Dud
ley L. P arsons, The New Y ork T ru st
Co., New York, New York; E. A. Pierce,
M errill Lynch, Pierce, F e n n e r &
Beane, New York, New York; Ju liu s J.
f
Spindler, F arm ers & M erchants Bank,
H ighland, Illinois; G. L om e Spry, The
Canada T ru st Co., London, O ntario,
Canada; E. P. T aliaferro, F irst N ation
al Bank, Tam pa, Florida; George Wilshire, F irs t N ational B ank & T ru st
Co., New H aven, C onnecticut; K. W ins
low, Jr., Seattle T ru st & Savings Bank,
Seattle, W ashington; Miss M. M. Woltjen, M utual B ank & T ru st Co., St.
Louis, M issouri.
P resto n E. Reed, w ho presides at the
association office at 231 South LaSalle
Street, Chicago, Illinois, w as re-elected
executive vice president. Senior ad
visory council of th e association w ill
be nam ed by th e board of directors
from a slate su bm itted by th e nom i
natin g com m ittee.
G a s Rationing Boosts
Bank By Mai!
This EXPERIENCE
may be useful to you
Since 1868 this in stitu tio n has
co-operated with banks through
out the middle west in extend
ing credit facilities to sound
commercial borrowers.
This experience is at your disposal
without obligation.
M e
LIVE S T O C K
^ /V a /to n a / B A N K
ESTABLISHED
1868
U N I O N S T O C K YA R D S
Member Federal Deposit Insurance Corporation
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
D ecem ber 1942
Gas ratio n in g has changed a lot of
habits in this w orld and is changing
m ore daily. B anking h abits are no
exception.
B anking by m ail is th e answ er. A
good bank-by-mail system not only in
creases custom er satisfaction, it is
easier on th e banks, p articu larly those
w hich are sh o rt on help or have new
and inexperienced help. The M ercury
m ail deposit enevelope, developed by
th e B erkow itz E nvelope Company, of
fers banks a simplified, easy handling
ro u tin e th a t p erm its tak in g care of a
larg er n um ber of tran sactio n s w ith
th e sam e n um ber of em ployes, and
offers depositors a safe, convenient
w ay to b ank by mail.
A study in considerable detail has
been m ade to find out ju s t w h at h ap
pens in a com plete bank-by-m ail tra n s
action. The depositer fills out the
deposit slip in th e envelope, carefully
tucks th e checks to be deposited u nder
th e safety flap, seals th e envelope, and
drops it in the n earest m ail chute.
I t is custom ary in m ost banks to
tim e-stam p all th e m ail w hen it is
received. T he back of th e M ercury
envelope, w here th is stam p is placed,
is also th e back of th e deposit slip,
th ereb y m aking a p erm an en t record of
w hen the rem ittan ce w as actually re
ceived by th e bank. This record of
day and ho u r th e rem ittan ce w as re
ceived is m uch m ore im p o rtan t th a n
th e tim e of m ailing show n by th e post
m ark on the face of th e envelope.
E asily separated from o th er mail,
th e M ercury m ail deposits can be
w orked du rin g th e slack periods of
the day. The m ail clerk e ith er sends
th e unopened envelopes to th e audit
teller, or opens, so rt and d istrib u tes
them according to practice in th e p a r
ticu lar bank. One swoop of a le tte r
opener along one edge opens th e en
velope, and the pocket holding the
33
deposit item s and deposit slip lies flat, w hich show s th ro u g h th e w indow of Cabin Club by th e b a n k ’s board of
directors. Senior officers of the b ank
read y to be checked by th e teller. The th e envelope.
A nother safety featu re is th e opaque w ere invited guests. W alter W. Sm ith,
co n ten ts of th e envelope are safe
g u arded by th e tuck-in flap, and re lining w hich m akes it im possible for p resid en t of th e bank, presided, and
inquisitive persons to “see th ro u g h ” Isaac H. Orr, ch airm an of th e board
m ain safely enclosed u n til th e teller
the
envelope and m ake out th e con of th e St. Louis U nion T ru st Company,
is read y to rem ove th em and recon
tents. T he m ercu ry envelope is also presen ted Mr. W atts w ith a beuatiful
cile th e am o u n t w ith th e deposit slip.
old E nglish silver service on behalf
W hen th e te lle r has done this, he m ade w ith o u t perforations w hich
m ight catch and te a r w hile th e envel of th e directors and officers of th e
sim ply te a rs th e deposit slip from the
bank.
body of th e envelope and proceeds ope is being handled in th e mails.
w ith th e re g u la r ro u tin e ju s t as
th o u g h th e deposit h ad been m ade
Call on Me, Too
Testimonial Dinner
S tranger (at door): “I ’m a bill col
th ro u g h th e w indow . The deposit is
F ra n k 0. W atts, chairm an of the
sta n d a rd size and single thickness, so board of the F irs t N ational B ank in
lector.”
th a t it does n o t tak e up e x tra space
Bride: “How nice. Come in and I ’ll
St. Louis, w as given a testim onial din
w hen placed in th e files.
n er on N ovem ber 20th a t th e Log give you a h an dfu l.”
On th e back of th e envelope, th e
teller fills in th e date, th e am o u n t of
th e deposit and in itials th e receipt.
No o th er w ritin g is necessary, as th e
depositor has already w ritte n his nam e
and address in th e p ro p er space on th e
receipt.
The receip t portion of th e envelope
now goes to th e m ailing d ep artm en t
w h ere it is placed in an o rd in ary six
and th ree-q u arters w indow envelope,
along w ith a new m ercu ry envelope
for th e n e x t deposit. It is n o t neces
sary to recopy th e nam e and address,
and th e re can be no e rro r in r e tu rn
C om m ercial b anking facilities are
ing receipt to th e custom er, because he
often taken for granted. But, ho u r
h im self has w ritte n th e in form ation
In Step W ith War Needs
after hour, they speed the wheels of
all industry devoted to the A m erican
w ar effort.
Every day, C entral H anover works
w ith c o rre sp o n d e n ts to k eep th e
financial side of factory production
in step w ith the N a tio n ’s w artim e
requirem ents.
CENTRAL
HANOVER BANK
AND
TRUST
COMPANY
NEW YORK
W . S T U A R T S Y M IN G T O N
A t a meeting of the Board of
Directors of Mississippi Valley
Trust C om pany held N ovem ber
18, 1942, W. Stuart Symington ivas
elected a director of the Trust C om
pany.
Mr. Sym ington is president of
Emerson Electric Manufacturing
Company, St. Louis.
MEMBER
FEDERAL
DEPOSIT
INSURANCE
CORPORATION
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
December 1942
34
★
★
★
...
BUSINESS AS USUAL...
Yes, indeed— at the ‘N o rth w e st
ern ” we are m a in tain in g o u r usual
fast, accurate service on T ra n sit and
C ollection items. We have the same
problem s of em ploym ent an d supply
th a t everyone else has, b u t in spite
of this, we have m ain tain ed these
services and w ill continue to m a in
tain them by w o rk in g h a rd e r--w o rk ing longer. We solicit y o u r business.
USE "NORTHWESTERN" SERVICES
Department of Banks and Bankers
W M . N . JO H N SO N
V ice P r e s id e n t
F . W . CO NRA D
A ss t. V ice P re s .
D. E. CROULEY
A ss t. C a s h ie r
L. P. GISV O LD
A ss t. C a s h ie r
NORTHWESTERN NATIONAL BANK
AND TRUST COMPANY
Minneapolis-—Member Federal Deposit Insurance Corporation
Northwestern Banker
December 1942
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
35
Heads Appleton Bank
A. E. A rntzen has been elected p resi
dent of the F a rm e rs and M erchants
State B ank of A ppleton. He has been
serving as cashier and his prom otion
is to fill the position of th e late E. J.
F letcher. E lm er J. H anson, of M inne
apolis, has been nam ed cashier.
M IN N E S O T A
NEW S
L . O. O L S O N
P r e s id e n t
M in n e a p o lis
W IL L IA M D U N C A N , J r .
S e c r e ta r y
M in n e a p o lis
Bank Interior Improved
The in te rio r of th e F irs t N ational
B ank of M apleton has had som e new
im provem ents m ade th e p ast m onth.
W alls and ceilings have been refin
ished. The m arble cage has been re
arran g ed so th a t it w ill be m ore effi
cient for custom ers and officers. New
light fixtures w ere also installed, th u s
m aking several additions w hich will
be a decided im provem ent.
Hanson Elected Bank Officer
R ufus W. H anson has been elected
assistan t cashier of th e F irs t N ational
B ank & T ru st Com pany, M inneapolis.
Mr. H anson has been vice president
of F irst B ancorporation, St. Paul, since
1936. P rio r to th a t tim e he w as em
ployed in th e credit d ep artm en t of
F irs t N ational for eight years, and in
th e M inneapolis office of E rn s t & E rn s t
for four years. He w ill again be active
in credit w ork in th e bank.
New Clerk
Iren e D onner is
th e Citizens S tate
replacing L au ra M.
accepted a position
A ccepts New Position
th e new clerk at
Bank, Clara City,
K um m et, w ho has
at R ochester.
State Banks Called Sound
F. A. A m undson, state com m issioner
of banks, rep o rted assets of 484 state
banks, one saving b an k and four tru s t
com panies are “th e soundest in y ears.”
In a su m m ary of his q u a rte rly re
port, sub m itted to G overnor H arold E.
Stassen, A m undson said deposits to
taled $363,061,825, an increase of $28,420,170 betw een Ju n e 30, 1942, and
October 2nd.
Total assets topped $400,000,000,
A m undson said, th e hig h est since
June, 1931, w h en th e y stood at $414,000,000.
Loans and discounts for th e th ird
q u a rte r of th e y ear dropped $877,843
to a total of $139,107,806. Real estate
holdings decreased $44,579 to a new
low of $543,571.
Former Buffalo Banker Dies
Allee C. Gilbert, form er D uluth city
tre a su re r and form er cashier of the
B ank of Savings & Commerce, Buffalo,
died last m onth in D uluth.
Roy L. H erh u sk y has resigned as
assistan t cashier of th e F arm ers and
M erchants N ational B ank of Ivanhoe
to accept a position as a ssistan t cash
ier and m anager of th e insurance de
p artm e n t of th e L uverne N ational
B ank at L uverne. Like the F arm ers
and M erchants N ational B ank of Iv an
hoe, th e L uverne N ational B ank is
affiliated w ith F irst B ank Stock Cor
poration.
A ccepts Bank Position
R obert C. A ldrich of Big Stone City
resigned his position as deputy county
tre a su re r of G rant county to accept a
position at th e N o rth w estern State
B ank in Ortonville.
The bank lost tw o em ployes in the
October 5th d raft call, w hen John
Sparrow and Claude Shellenbarger, Jr.,
w ere inducted into th e arm ed forces.
Bankers Sponsor 4-H Program
Four-H m em bers, parents, and
leaders tu rn ed out nearly 350 strong
a t th e S herburne county 4-H achieve
m ent banquet and program sponsored
by th e ban k ers of S herburne county.
Miss M ildred Schenck, state 4-H club
agent, developed the them e, “Looking
A head in 4-H Club W ork,” review ing
in short, some of th e changes th a t are
being m ade in club w ork so th a t every
farm boy and girl of club age m ay be
able to co ntribute his sh are tow ards
th e victory program .
L. K. H oulton conducted the pro
gram in the E lk R iver high school
auditorium . He extended th e w ord of
welcome in behalf of the S herburne
county bankers, also congratulating
th e 4-H m em bers in th e ir achieve
m ents and gave a w ord of encourage
m en t to th e leaders for the w ork th ey
have done w ith th e 4-H boys and girls.
Bank Official Honored
The Insu ran ce Com pany of N orth
A m erica, has presented to T. K. Troe
of Em m ons, an h o n o rary certificate for
31 y ears of “m eritorious service” to
th e com pany as its rep resen tativ e in
Em m ons. Mr. Troe is vice president
and cashier of the F irs t N ational B ank
of Em m ons.
He has been associated w ith the
b an k since 1906.
Bennes Assisting in Bank
Lloyd N. B ennes has assum ed a posi
tion in the N o rth ern State Bank, Thief
R iver Falls. A t the sam e tim e he will
continue his duties as agent for the
Lincoln N ational Life In surance Com
pany.
Changes Employment
W eston P eterso n has resigned his
position in the bank in W heaton and
has accepted a position in the Glenwood State Bank.
New Bank at Boyd
A new state bank, capitalized at
$5,000, opened for business in Boyd,
on N ovem ber 14th. A certificate of in
corporation w as filed w ith S ecretary
of State Mike H elm on Tuesday, Octo
ber 13, 1942.
The capital stock of th e new in sti
tu tio n is divided into 150 shares, one
hun d red and eleven of w hich are held
by the incorporators, as follows: O. T.
M elbostad, 71 shares; A. J. Larson, 10;
C. C. E lkjer, 10; Jo h n L ynner, 10; E. D.
Q uist and W. J. Strate, five shares
each.
M em bers of the board of directors
are: O. T. M elbostad and E. D. Quist, of
Boyd; A. J. L arson, Montevideo; John
L ynner, C C. E lk jer and W. J. Strate,
Clarkfield.
Boyd has not had th e convenience
of a local b ank for a n u m ber of years,
getting along w ith an “exchange” oper
ated by a neighboring tow n bank.
B usinessm en have found it increasing
ly inconvenient, hence the petition for
a state bank charter.
Mr. O. T. M elbostad w ill be in charge
of the new Boyd State Bank.
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
December 19Í2
36
• MINNESOTA
Banking in Honolulu
In a recen t issue of The W om an
B a n ker is published a le tte r sen t to
Em m a E. Claus, an ex-president of th e
A m erican A ssociation of B ank W om
en, from M arie Gedge, a ssista n t secre
ta ry of th e B ank of H aw aii a t H ono
lulu. The follow ing is an in terestin g
p arag rap h tak en from th a t letter:
“E ven th e b anks are decidedly line
conscious. W e have a fairly goodsized lobby, and one day we tim ed a
custom er w ho w as in line w aiting to
THE
N a t io n a l
B ank
AND
TRUST COMPANY
OF NEW YORK
S e r v i c e — M a in ta in in g an
intim ate, personalized corre
spondent bank service.
E x p e r i e n c e —Officials with
years of service in this field,
assuring a knowledge of re
quirem ents and valuable as
sistance.
P o l i c y - To cooperate with
out-of-town banks rath er than
compete for business which is
rightfully theirs.
NEWS •
have a check cashed. It took h er
forty-five m inutes to arriv e at one
of th e te lle r’s w indow s, and she w as
in one of five equally long lines.
Because of our location, th e banks
have had to do m any th ings w hich
o th er p a rts of th e co u n try have not
had to consider. A n um ber of m onths
ago a regulation w as m ade th a t no one
could have m ore th a n $2,000 in his pos
session at any tim e—th e purpose, of
course, being to p rev en t th e hoarding
of m oney, for th at, like everything
else, has to be b ro u g h t into th e T er
rito ry . As a re su lt of th a t order th o u
sands and thousands of dollars came
pou ring in, w hich had been held in
safe-deposit boxes, m othballs, tobacco
cans, etc. Our deposits a t the end of
the y ear w ere slightly in excess of
eighty-seven m illions. W ith in th e last
few m onths all of th e reg u lar U nited
States currency has been recalled, and
th ere has been exchanged for it U nited
States curren cy w ith an im p rin t of
“H aw aii” appearing in several places,
and some of th e u sual distinguishing
m ark s changed to a different color.
It is, n atu rally , good only here and
cannot be sen t or tak en outside of the
T errito ry , and we are not perm itted to
hold any reg u lar U nited States cu r
rency.
All stock certificates and
bonds, m ainland and local, have been
p erfo rated in accordance w ith certain
regulations and deposited in banks
and tru s t com panies for safe keeping
and destruction, if necessary, and all
safe deposit boxes have been ordered
to be cleared of all bonds, stocks and
cu rren cy before a designated date.
You can see th a t req u irem en ts of th is
O
u
t - o
f - l i o
kind do add to th e w ork, already
heavy, of the banks and tru s t com
panies. We, too, have our shortages
—pennies, dimes, q u arters and halves
all have had th e ir day of being ‘o u t’
or ‘low’.”
Elected Vice President
W ilfred W ottrich, w ho has been a
tru s t officer of M anufacturers T ru st
Com pany for th e last 10 years, has
been elected a vice p resident and
placed in charge of th e b a n k ’s P erso n
al T ru st D epartm ent. He succeeds
E llio tt Debevoise, vice president.
Mr. W ottrich has been w ith M anu
factu rers T ru st Com pany and its p red
ecessor banks for th e p ast 18 years.
He is a director of several corpora
tions, including th e Y ankee Baseball
Club. D uring 1930 and 1931, he w as
chairm an of th e B ank M anagem ent
Conference of New York.
Mr. W ottrich is a g raduate of New
Y ork U niversity and of th e G raduate
School of B anking, A m erican B ankers
A ssociation, R utgers U niversity. He
is vice p resid en t of the D ow ntow n A th
letic Club of N ew Y ork City.
Assistant Cashier
A ppointm ent of V ern M anahan as
a ssistan t cashier of the City N ational
Bank, H astings, has been announced.
H is resignation as secretary-treas
u re r of th e H astings P roduction Credit
A ssociation has been accepted by the
board of directors. M anahan has held
th e position w ith the association for
th ree years.
w
n
B
a
n
k
s
O ut-of-tow n banks and bankers w ill find here
com plete banking fa cilities for prom pt and
economical handling of accounts in Chicago. We
would appreciate the opportunity o f serving you.
$200,000,000
ESTABLISHED 1908
MEMBER
NEW YORK CLEARING H O I SE ASSOCIATION
FED ERA L D E P O S IT INSURANCE CO R PO R A TIO N
Q ____________________
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
December 19^2
C ity N
a t io n a l
a n d
T R U S T
2 0 8
S O U T H
C O M PA N Y
H
ank
of Chicago
L A S A L L E
{Member Federal Deposit Insurance Corporation)
S T R E E T
37
T w in C ity N ew s
F R A N K M cGUIRE, p r e s i d e n tI . tre a s u re r of Driscoll-M cGuire Co.,
St. Paul, is slated to becom e p resid en t
of the T w in City Bond Club a t th e
a n n u al m eeting D ecem ber 12th a t th e
U n iv ersity Club, St. Paul. Now vice
p resident, he w as picked by the club’s
n om inating com m ittee for prom otion
to th e presidency.
N om inated for vice p resid en t was
R obert L. John, se c retary -treasu rer of
T hrall-W est Com pany, M inneapolis;
for secretary -treasu rer, Rudolph S.
Juran of J u ra n & Moody, St. Paul.
Six nom inees w ere picked as can
didates for th e tw o-year te rm on the
board of g overnors as M inneapolis
rep resen tativ es, w ith th re e to be
elected.
T hey are: M errill M. Cohen of J. M.
Dain & Company, re tirin g secretarytre a su re r; A lton Junge, N o rth w estern
N ational B ank & T ru s t Company;
C. D. M ahoney of C. D. M ahoney &
Company; M errit W. M cDonald of K al
m an & Company; I. D. Owen, tre a s u r
er, A llison-W illiam s Company, and H.
H. AVylie, W ells Dickey Company.
T
F o u r leading b an k ers have been se
lected to m em bership on a volu n teer
com m ittee of b u sinessm en to su p er
vise re g istra tio n of city landlords as
th e first step in estab lish in g re n t con
tro ls here.
The four are: Guy W. L aL one, senior
vice p resid en t of F irs t N ational B ank
& T ru st Com pany, com m ittee ch air
m an; A rn u lf U eland, president, Mid
land N ational B ank & T ru st Com
pany; Ralph W. M anuel, president,
M arquette N ational B ank, and Clar
ence R. C haney, senior vice president
of N o rth w e ste rn N ational B ank &
T ru st Company.
T hree T w in City b anks w ere p rin
cipals in co nsum m ating th e largest
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
By James M. Sutherland
Special Correspondent
b ank loan ever executed in the N o rth
w est—a $15,000,000 line of credit to
help finance the w ar production w ork
of M inneapolis-H oneyw ell R egulator
Co.
H eaded by N orth w estern N ational
Bank & Trust Co., M inneapolis, the
lending group also included F irst Na
tional B ank & T rust Co., M inneapolis,
F irst N ational Bank, St. Paul, and
C ontinental Illinois B ank & T ru st Co.,
Chicago.
A R egulation V loan, it w as g u a ra n
teed by the F ed eral R eserve B ank of
M inneapolis as fiscal agent for the
W ar D epartm ent.
R ufus W . H anson, vice president
since 1936 of F irst B ancredit Corpo
ration, St. Paul, has been elected as
sistan t cashier of F irs t N ational B ank
& T ru st Co., M inneapolis. He w as
em ployed in th e credit d ep artm en t of
F irs t N ational for eight y ears before
going to F irs t B ancredit.
Several St. P aul b ankers served on
th e re n t control reg istratio n com m it
tee of th a t city to assist reg istratio n
of landlords u n d er re n t ceiling reg u la
tions of the Office of Price A d m inistra
tion.
T hey w ere M artin F. E rnst, vice
p resid en t of M idway N ational Bank;
A lex H ighland, p resid en t of E m pire
N ational Bank, and H arry B. Humason, p resident of A m erican N ational
Bank.
Two new directors of th e F ederal
R eserve B ank of M inneapolis have
been elected, w ith th e ir three-year
term s to s ta rt Ja n u a ry 1.
T hey are
F. D. M cCartney, vice presid en t of the
F irs t N ational B ank of Oakes, N. D.,
class A director, and Ray C. Lange,
p resid en t of th e Chippew a C anning
Company, Chippewa Falls, Wis., class
B director.
V. E. M ikkelson, presid en t of Secu
rity State Bank, M inneapolis, has been
elected a vice presid en t of th e M inne
apolis Civic and Commerce A ssociation
for the ensuing year.
Guy W. L aL one, vice p resid en t of
F irs t N ational B ank & T ru st Co., M in
neapolis, has been re-elected tre a su re r
of th e M inneapolis Civic Council.
Both th e St. P aul and M inneapolis
ch ap ters of th e A m erican In stitu te of
B anking h eard Dr. P aul S. Cadman,
econom ist of th e A m erican B ankers
Association, d uring a visit to the Tw in
Cities.
Dr. Cadm an w as one of the reg u lar
scheduled speakers a t the St. P aul
c h a p te r’s six-week
lecture-sem inar
course, w hile he also addressed a
F orum d in n er of th e M inneapolis
chapter.
To provide closer contact betw een
m anagem ent and stockholders of
N orthw est B ancorporation, J. C.
Thom son, presdient, is holding a series
of district stockholders’ m eetings.
W ith tw o such m eetings already held,
a t least th ree m ore are planned.
Carl D. Strom , chief clerk at P ro
duce State Bank, M inneapolis, since
1937, has been elected a ssistan t cash
ier of H ennepin S tate Bank. Mr. Strom
began his ban k in g career in 1929 as a
m essenger for F irs t N ational B ank
and T ru st Co., w ith w hich both o ther
institu tio n s are affiliated.
Northwestern Ranker
December Í942
38
•MINN ESOTA
Charles R. M iller, vice p resid en t and
tru s t officer of F irs t N ational B ank &
T ru st Company, M inneapolis, is new
presid en t of th e F id u ciary A ssociation
of M innesota. He w as nam ed at the
annu al m eeting at H otel N icollett, M in
neapolis.
O ther officers are E. D. Cardie, as
sista n t tru s t officer, M arquette N ation
al B ank, M inneapolis, first vice p resi
dent; S. J. K ryzsko, a ssista n t cashier,
W inona N ational & Savings B ank, W i
nona, second vice president; W. W.
H olm es, a ssista n t secretary, N orth-
N E WS •
w estern N ational B ank & T ru st Com
pany, M inneapolis, secretary-treasurer.
E xecutive com m ittee m em bers are
L. E. D unn, corporation tru s t officer
of F irst T ru st Com pany of St. Paul
State Bank, chairm an; W alter E.
K unze, tru s t officer of F irst T ru st Com
pany of St. P aul S tate Bank, both of
St. Paul; E ee A. Short, assistan t secre
ta ry and a ssistan t tru s t officer, F irst
N ational B ank & T ru st Company, and
J. B urns A llen, vice president, N o rth
w estern N ational B ank & T ru st Com
pany, both of M inneapolis.
“The Bank at the Yards ”
Our Own ‘'Gallup Poll
”
Every week—as this bank serves in the Sioux
City market area—our own ''Gallup'' poll keeps us
on our toes. For bankers, shippers, and feeders,
drop in constantly to visit, and tell us their problems,
and to say they like Livestock National Bank service.
Our location helps, of course (right in the middle
of the market) but our thorough knowledge of Sioux
City as a whole enables us to handle ALL
Sioux City business for our clients. Let this bank
serve you, too, both down town and at the yards!
O F F IC E R S
C. L . F r e d r ic k s e n , P r e s id e n t
M . A. W ils o n , V ic e P r e s id e n t
W . G. N e ls o n , A s s is ta n t V ic e P r e s id e n t
W . C. S c h e n k , C a s h ie r
H . C. L in d u s k i, A s s is ta n t C a s h ie r
C. L . A d a m s , A s s is ta n t C a s h ie r
J . S. H a v e r , A s s is ta n t C a s h ie r
J a m e s L . S m ith , A u d ito r
D IR E C T O R S
C. R. M c K e n n a , P r e s ., J o h n s o n B is c u i t Co.
B. L . S iffo rd , A tto r n e y , S iffo rd & W a d d e n
G. F . S ilk n i tte r , P r e s id e n t , S io u x C ity
S to c k Y a r d s C o m p a n y
C. L . F r e d r ic k s e n , P r e s id e n t
M . A. W ils o n , V ic e P r e s id e n t
H . C. B o s w e ll, S e c r e t a r y - T r e a s u r e r ,
W e s t e r n C o n tr a c ti n g C o r p o r a tio n
M em ber Federal D eposit In su ra n c e Corporation
Honor Service Men
More th a n tw o thousand m en and
w om en of The F irs t N ational B ank of
Chicago gave a salute last m onth to
the m en w ho have left th e b an k to
en ter the arm ed forces of the U nited
States. Active p articip a n ts com prised
about th ree h u n d red of th e b a n k ’s
staff. The uniform ed m em bers of the
B ank Red Cross U nit num bered about
two hundred, and the o th er th ird w as
m ade up of th e b a n k ’s chorus and
orchestra. A m erican flags, th e b a n k ’s
service flag w ith tw o h u n d red forty
stars of blue and one of gold, an d the
roll of honor gave A rm istice Day
color to th e occasion.
P rom ptly at four o’clock tw o h u n
dred of th e b a n k ’s girls, some in the
stan d ard w hite uniform of th e Red
Cross, others in the blue of th e canteen
service, m arched four-abreast up the
stairs and took seats at th e end of the
m ain banking lobby. A n um ber of
the m en hom e on leave w ere guests
of honor. The orch estra opened th e
program , after w hich Jam es B. Forgan, a senior vice p resident of the
bank, chairm an of Chicago C hapter
of the A m erican Red Cross, and a
v eteran of W orld W ar 1, paid trib u te
to the m en in the service. He also
dw elt upon th e d uty of those whom
these m en represented. He urged con
trib u tio n s by those w ho could give to
th e blood b an k of th e Red Cross, and
em phasized th e necessity of everyone
doing his b est to a tta in victory. He
m entioned th at, w hile banking w asn ’t
classified as an essential industry, the
w ork of banks in th e sale of w ar bonds
and stam ps, in the purchase of bonds
for th e ir own accounts, and in facilitat
ing production and tran sp o rtatio n w as
a vital co ntribution to w ar effort. R a
tion coupon banking, proven success
ful in some areas, is likely to become
an added function generally.
The
w ork in w hich m en and w om en in
banking are engaged is one of w hich
th ey m ay w ell be proud, since th eir
efforts aid in production and expedite
the m ovem ent of m en and m aterials.
Albig to Retire
LIV ESTO CK
NATIONAL
B
IT
A
N
K
S I O U X C I T Y , IOWA
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
December 19b2
W. E spey Albig, deputy m anager of
th e A m erican B ankers A ssociation in
charge of its Savings Division, w ill
re tire at th e end of this year, it w as
m ade know n by W. L in n H em ingw ay,
presid en t of the A. B. A., w ho is p resi
den t of th e M ercantile-Com m erce B ank
and T ru st Company, St. Louis.
Mr. Albig has been associated w ith
th e A m erican B ankers A ssociation for
th e p ast eighteen years, having joined
it as deputy m anager and secretary of
its Savings Division in 1924.
39
W H A T FARM ERS A RE
D O IN G W ITH T W O
BILLION D O LLA R S
SOUTH
(C ontinued from page 22)
D A K O T A
NEW S
H. N. TH OM SON
P r e s id e n t
P re s h o
G E O R G E M . S T A R R IN G
S e c r e ta r y - T r e a s u r e r
H u ro n
Prominent Banker Dies
New Bank Clerk
F u n e ra l services w ere held at
E m ery for Leo Shroeder, w ho died of
a h e a rt attack.
Mr. Shroeder w as a c h a rte r m em ber
of th e E m ery V olunteer F ire D ep art
m ent, th e first clerk of th e city coun
cil, w hich office he held for m any
years, and a m em ber of the first band
ever to be organized in E m ery.
He becam e vice p resid en t of the
F a rm e rs B ank in 1917 and has been li
quid atin g agent for th e E m ery State
B ank and th e F a rm e rs B ank since its
closing.
LaV onne Davidson is the new clerk
a t the F irs t N ational B ank in P arker.
D elbert C hurch plans to go to Long
Beach to w ork in th e Douglas factory.
"2 Million Mark"
The B ank of Belle Fourche, w hich
opened for business D ecem ber 6, 1937,
has show n a phenom enal g row th in
business the p ast five years. B ank
footings recen tly w en t over th e “two
m illion m ark .”
T he end of the first m onth of b u si
ness, back in Decem ber, 1937, show ed
to tal deposits of $75,121.68. October.
1941, its deposits w en t over th e first
m illion w ith a total of $1,141,970.11, and
on October 31, th is year, th a t b a n k ’s
deposits w ere n e a r th e tw o m illion
m ark, w ith a to tal of $1,922,000.01.
H. W. C larkson is p resident; G. Q.
R unkel, cashier; F. M. Fladm oe, as
sista n t cashier; on th e board of di
recto rs besides th e p resid en t and
cashier are L. R. C hiesm an, F. M.
C larkson, Wm. M arty, E. W. Clarkson,
Dan M cCutchen.
New Assistant Cashier
H. E. H alligan of B ry an t is th e new
ly installed a ssistan t cashier at th e
Oldham State Bank, en te rin g upon his
new position last m onth.
Federal Land Bank Changes
H a rry B u rrish cam e from Om aha to
tak e Mr. B rak k e’s place as d istrict real
estate salesm an for th e F ed eral Land
B ank at W oonsocket. Mr. B rakke is
being tra n sfe rre d to th e B rookings te r
ritory.
Bank Debits Up
B usiness activity in Brookings d u r
ing th e first nine m onths of th is year
stands 29 per cent above th a t for the
like January-through-S eptem ber pe
riod a y ear ago, w hile business activity
in Septem ber is 20 per cent above th a t
for Septem ber, a year ago, according
to bank debit totals rep orted to th e
F ederal R eserve B ank of M inneapolis.
B ank debits, for the m ost part, re p re
sent checks against depositor’s ac
counts in paym ents for goods, services
and debts, and th erefo re the bank deb
it volum e for a locality is considered a
good indicator of general business con
ditions. U nder p resen t w ar conditions,
expanding payrolls and large govern
m ent expenditures are im portant fac
tors in th e expanding debit volume.
T hroughout South D akota bank deb
it totals for the first nine m onths of
th is year attain ed a volum e w hich is
25 per cent above th e volum e recorded
for th e sim ilar nine m onths last year
w hile volum e for Septem ber of this
year stands 21 p er cent above th a t for
Septem ber, 1941.
Complete Cost Manual
The B ank M anagem ent Com m ittee
of th e South D akota B ankers Associa
tion has recently com pleted th e bank
cost m anual, w hich is a simplified
m ethod of figuring sm all ban k costs.
The book is published by th e South
D akota Association, and th e figures
and conclusions th erein are based up
on an analysis of 70 rep o rtin g South
Dakota banks. T hrough th e use of the
m anual, S ecretary George S tarrin g
says” you m ay determ ine your tru e
costs, and th en be able to install ade
q uate service charges to cover them ,
plus a profit.”
point to 263 bushels of w heat or 312
bushels of corn req u ired a decade ago
com pared w ith 95 and 128, respective
ly, in 1942. B orrow ers are told, “The
best possession a m an can have is a
hom e free and clear.” F arm ers u n
derstan d th a t language readily enough.
T heir trouble has been to change th e ir
“h ay ” into enough m oney to reach the
desired haven.
Of course, in these days w hen it’s
everybody’s d u ty to buy W ar Bonds
up to the lim it, the F ederal land banks
are not u rging farm ers w ho are in a
position to easily m eet th e ir debts in
the fu tu re to re tire them instead of
buying W ar Bonds. The reverse is
true. T hey urge all borrow ers to keep
th e ir debts c u rre n t b u t those who can
do so w ithout im pairing th e ir business
are asked to p u t all th e ir spare cash
into bonds. Those w hose economic po
sition is precarious are urged to get
th e ir debts in carry in g shape. Those
in betw een these positions are urged
to do both; buy bonds and re tire debts.
R ecently th e 800,000 borrow ers w ere
circularized on th is basis.
Som etim es th e 1,830 billion of “u n
accounted for” farm ers’ money, m en
tioned earlier, is called the inflation
wedge. It has caused a deal of w or
ry. T hus far it does not seem to have
been w arranted. F arm ers, w here they
could, seem to have stepped up th eir
living in about the sam e w ay any
group w ould th a t came into m ore
money.
B ut th ere has been no
splurge—no spree w hich m ight even
be considered th e ir economic wedge.
In fact, the things w hich th ey would
buy if th ey could are becom ing scarce
as m erch an ts’ shelves are depleted.
N ext year w ith prospects for perhaps
half a billion m ore n et incom e—esti
m ated well in advance—m ay b ring
new problem s, b u t w ith farm ers
busy paying taxes, buying bonds u n
til it h u rts, and w orrying about price
ceilings, labor, equipm ent, supplies,
tran sp o rtatio n , and m arketing prob
lems, th e predicted spending spree is
likely not to m aterialize. Also, it is
a long tim e betw een now and n ex t
h arv est and the next y e a r’s n et in
come of farm ers m ay be nothing like
the c u rre n t guess!
I t ’s true, of course, th at in some
areas, p articu larly in th e m iddle west,
farm ing has staged a w onderful come
back. It is equally tru e th a t it does
ju st th a t periodically. In betw een th e
comebacks, how ever, are prolonged
dry spells. It takes a good deal of the
income from th e good years to balance
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December 1942
40
•
SOUTH
the bad. F a rm e rs are still paying on
old accounts. Back in 1932, 51 per cent
of the loans of th e 12 F ederal land
banks w ere cu rren t; now th ey are
about 87 p er cent. Also farm ers have
been m aking good program s in p ay
ing back taxes. T hus th e goal of a
debt-free farm is alm ost univ ersally
attractiv e. T h at is w hy m ore of the
“inflation w edge” m oney is likely to
be used to im prove fa rm e rs’ financial
positions.
In th e sh ort-term credit field, too,
th ere are evidences of fa rm e rs’ desire
to get out of debt. More and m ore
DAKOTA
NEWS
farm ers are going on a cash basis as
th ey get able to do so. T otal sh o rt
term credit o u tstanding m ay be clim b
ing som ew hat, b u t th ere are indica
tions th a t it is caused m ore by larger
loans to few er farm ers and ranchers.
Such debts, if allowed to increase
and p yram id as th ey did du rin g and
follow ing the last w ar, can be ju st as
inflationary as an y th in g else, and they
should be w atched carefully. A fter
W orld W ar No. 1 these debts, for the
m ost part, had to be re w ritte n into
farm m ortgage debts. This brought
such debts to th e ir dizzy peak from
•
w hich th ey toppled, tak in g banks and
individuals w ith them .
T h at so rt of catastrophe probably
will be av erted this tim e if all lenders
look sh arp ly to the use to w hich sh o rt
term loans are being put.
So, the P ro fesso r’s question of w h at
are farm ers doing w ith th e ex tra tw o
billion dollars isn ’t answ ered categor
ically, b u t it’s certain th a t a good deal
of it is being used w isely in retirem en t
of debts and th e so-called inflation
wedge seem s to have been ra th e r in
effective. It ra n into farm ers’ hard
common sense and th a t dulled its
edge.
Nebraska News
Cashier Transferred
H. E. Lichty, cashier of the B ank of
H yannis for th e past five years, has
been tra n sfe rre d to th e G uardian State
B ank of Alliance. W alter Stroud of
Alliance will be th e new cashier at
H yannis.
Bank Interior Rearranged
T
O achieve th e goal w hich th e n a tio n has set for itself—u n
co m p ro m isin g victory in the sh o rte st possible tim e — there
m ust be a m in im u m o f delay in every step o f the p ro d u c tio n p r o
gram . T h e w o rk in g tim e o f m anagem ent, already o v erb u rd en ed ,
m ust be fu rth e r co nserved and d ev o ted to p ro d u c tio n p roblem s.
In b a n k in g , too, speed and efficiency are m ore than ever essen
tial. T h e A m erican N a tio n a l B ank and T ru st C om pany o f C hicago
stands ready to c o o p e ra te w ith c o rre sp o n d e n t banks in every p o s
sible w ay to save tim e fo r th em as w ell as for th e ir custom ers.
AMERICAN NATIONAL BANK
AND TRUST COMPANY
OF
C HICAG O
LA SALLE STREE
Member Federal Deposit
OUR
B U S I N E S S
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r AT WASHI NGTON
Insurance Corporation
HE L P
B U S I N E S S
The in terio r of the B anking House
of A. W. Clarke, Papillion, has been
en tirely w orked over in an effort to
system atize and m ake m ore efficient
th e space available for the ever in
creasing volum e of business tra n s
acted in th is pioneer financial in sti
tution.
The bookkeeping dep artm en t has
been changed from th e south side to
the w est end of th e floor space and all
the ty p ew ritin g m achines, adding m a
chines and bookkeeping m achine, a
new ly added equipm ent, are arran g ed
in a com pact space. The paying and
receiving te lle rs’ w indow are also a r
ranged in this p a rt of the office w hile
the desks of th e president, cashier and
o ther officials are in th e south p a rt of
the form er bookkeeping departm ent,
w hile the general lobby has been con
siderably enlarged for th e convenience
of th e patrons.
Stalp Heads W est Point Bank
G erhard Stalp, W est Point, w as
elected p resid en t of th e F arm ers and
M erchants B ank of W est Point, suc
ceeding Dr. G. J. Collins, w ho resigned
recently to spend th e w in ter in the
south. A new director is Dr. A. W.
A nderson, who w as also elected vice
president. O ther directors are E arl
R eppert, J. A. Jerm an and W. T.
Knievel.
41
Nebraska News
NORTH
Directors' Meeting
DAKOTA
J . O. M IL S T E N
P r e s id e n t
B elfield
NEW S
Former Banker Dies
H a rry Lord, form er P a rk R iver
b an k er and w ell know n in W alsh
county, died recen tly at his hom e in
Cando.
Million Dollar Deposits
The Citizens S tate B ank of New E n g
land has passed th e m illion dollar
m ark in deposits, according to its re
cently released financial statem en t.
The C itizens S tate has been for
som e y ears th e only b an k in New
E ngland and it gets a lot of business
from eastern Slope county. Officers of
th e in stitu tio n are: J. F. M cEntee,
p resident; A. F. M cEntee, vice p resi
dent; A. O. Lona, cashier; A nna K.
M artin, a ssistan t cashier; G udrun B.
Jacobson and P erp etu a G. G artner,
bookkeepers.
Converted to State Bank
The F irs t N ational B ank of Buffalo,
Cass county, has been converted to a
sta te b an k and will h e re a fter be know n
as th e F irs t State B ank of Buffalo.
The b an k w as established in 1885 by
th e late S. G. More as a state b an k and
w as converted to a natio n al b an k in
1903.
Officers continue as before, w ith Mrs.
A. L. P eterso n as president; W. C. P e t
erson, vice president, and J. W. C hap
m an, cashier.
A . I. B. Annual Banquet
More th a n 120 m em bers and guests
w ho atten d ed th e an n u al b an q u et of
th e F argo c h ap ter of th e A m erican
In stitu te of B anking learned som e
th in g of th e problem s faced by new s
p apers d u rin g w artim e.
H. D. Paulson, editor of The Fargo
F orum , speaking on News C ensorship,
explained to th e group w hy m uch of
th e w a r new s ap pears to be late and
w hy m any of th e h appenings w hich
m ay be com m on know ledge in a com
m u n ity are b a rre d from th e public
p rin ts because th e ir publication m ight
benefit th e enem y.
C larke B assett, vice p resid en t of th e
C. C. W A T T AM
S e c r e ta r y
F arg o
M erchants N ational B ank and T ru st
Company, w as toastm aster. O ther
sp eakers included R obert R utherford,
executive secretary of th e M inneapolis
chapter, who stressed th e im portance
of the educational courses being of
fered by th e AIB; F red A. Irish, p resi
dent of th e F irs t N ational B ank and
T ru st Company; R. H. B utterw ick,
vice presid en t of th e Dakota N ational
Bank, and E a rl L. Shaw, president of
th e Fargo N ational Bank.
Mott Bank Shows Increase
T he re p o rt of th e condition of the
Com m ercial B ank at M ott at th e close
of business October 17th showed foot
ings passing th e m illion dollar m ark,
officials announce.
L arge increase in b an k footings at
th is tim e is due to th e im provem ent in
ag ricu ltu ral conditions in th is area.
W ith the largest crop in h isto ry h a r
vested and threshed, w ith excellent
prices for livestock, cream and prod
uce, farm ers of th e area, w ho have
stayed w ith th e ir land th ro u g h the
d rought years, are being repaid at
last p a rtly for the hard sh ip s th ey have
passed through, ban k officials said.
Elected Vice President
J. C. H offert of th e F o ster C ounty
State B ank of C arrington w as elected
vice presid en t of th e so u th eastern dis
trict of the N orth D akota B ankers
A ssociation, at a m eeting at Valley
City.
Northwest Group Elects
O. N. Stenehjem of th e F irs t In te r
national Bank, W atford City, w as
elected p resid en t of th e N orthw est
B ankers group at th e ir convention
held in Minot.
The banks of N orth D akota are go
ing “all o u t” in th e w ar effort, was
th e them e of th e M inot meeting.
O ther officers elected at th a t tim e in
cluded T. A. Solheim, Minot, secretarytreasu rer, and C. P. K jelstru p also of
Minot, to th e executive com m ittee.
At a m eeting of th e directors of the
F arm ers & M erchants N ational Bank,
A shland, th e business affairs of th e
ban k w ere reorganized following th e
passing of E rn e st W iggenhorn, w ho
for m any y ears served in th e capacity
of p resident of th e bank.
E dw in A. F rick e is th e new p resi
dent; W. E. H arnsberger, F irs t Vice
P resid en t and Cashier; Lt. C. H. W ig
genhorn, Second Vice President; Miss
D orothea A. E h re n h ard , A ssistant
Cashier. Miss M iriam A. W iggenhorn
is a new m em ber of th e Board of Di
rectors.
"Billie" Pfister in Bank
W illiam Pfister has accepted a po
sition in the A m erican State B ank of
New Castle. “Billie” as he is know n
to his friends, is being aided in his
w ork by the use of a sort of m otor
ized coaster chair or stool w hich he,
w ith th e help of J. E. McKeney, have
been co n stru ctin g du rin g th e ir spare
tim e th e p ast sum m er.
To stran g ers w ho do not know “Bil
lie” Pfister, this special chair is neces
sary for him because he suffered an
attack of in fantile paralysis w hen a
youngster and has not been able to
walk. He is also ow ner and m anager
of th e Castle T h eatre in New Castle.
Adopt " P A Y C " Plan
Officers of th e Stephens N ational
B ank of F rem o n t and th e F rem o n t
N ational B ank have announced th e
in stallatio n of a new type checking
account system identified as the
“PAYC” (Pay-As-You-Check) checking
account plan.
Resigns Bank Position
K eith A hart, assistan t at th e Citizen
State B ank of C learw ater for th e p ast
several m onths, severed his connec
tions w ith th a t in stitu tio n recently.
He has accepted a sim ilar position
w ith a b ank in K ansas City.
Prominent Banker Dies
E rn e st A. W iggenhorn of A shland,
died last m onth in Omaha of p n eu
m onia and com plications, after a 10
days’ illness. Born and reared in A sh
land, he w as a m em ber of one of th e
oldest and m ost p rom inent fam ilies
there. He w as p resid en t of th e F a rm
ers & M erchants B ank and a m em ber
of th e Masonic Lodge.
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Federal Reserve Bank of St. Louis
December 19^2
■ .
42
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Federal Reserve Bank of St. Louis
December 19b2
r
43
NEBRASKA
NEW S
R, F . C L A R K E
P r e s id e n t
P a p illlio n
WM. B. H U G H ES
S e c r e ta r y
O m aha
The 1942 Convention
(C ontinued from page 16)
*•
K
A panel on “E a rn in g s and E xpenses
D uring W ar T im e,” conducted by
W ade R. M artin, N ebraska d irecto r of
banking, w as of u n u su al in te re st to
those attending. Mr. M artin w as as
sisted by E dw ard H uw aldt, G rand Is
land; J. R. K enner, p resid en t of th e
T h ay er C ounty B ank, H ebron, and V.
E. D olpher, p resid en t of th e F irs t N a
tional B ank, D avid City.
Mr. M artin opened th e discussion by
saying th a t th e loan picture in banks
w as rap id ly changing—deposits are up,
and loans are down. O perating ex
penses are increasing—h ig h er taxes,
m aterials are m ore costly—a g re a t deal
of new help at h ig h er w ages—expense
connected w ith sale of W ar Bonds and
Stam ps—and increased cost of servic
ing depositors w ho are m aking m ore
use of banks. He nam ed five points for
b anks to consider, first, adequate serv
ice charges—second, reduction or elim
ination of rates on tim e m oney—third ,
review operatin g expense and cut
dow n or elim inate—fourth, g re a te r ef
fo rt in developing new loans — and
fifth, stu d y cash position, to d eterm ine
how m uch to in v est in gov ern m en t
bonds.
As his p a rt on th e panel dicussion,
Mr. H u w ald t described b an k in g condi
tions as th ey related to com m unities
h aving w ar in dustries. B anks in these
cities are obliged to rem odel and en
large b an k in g rooms; payroll is u sually
up 15 to 20 p er cent because of need
for new help w ho dem and m ore m oney
to sta rt, and th is m akes it n ecessary to
increase salaries of all clerical help.
Of course, m ore eq uipm ent is needed
to tak e care of ex tra w ork. More su p
plies of all kinds are consum ed. More
cash on h an d is required, so m ore
b u rg lary and robb ery coverage m u st
be carried and, of course, th e re has
been an increased dem and for safe de
posit boxes. Mr. H u w ald t estim ates
his b an k has sp en t $15,000 to $20,000 in
ord er to tak e care of increased business
bro ught about by increased govern
m ent payroll, w hile earnings from
loans and service charges have not
k ep t pace.
R eduction of in te re st on tim e depos
its w as the subject of Mr. K en n er’s talk
on the panel. He believes banks can
only pay in te re st rates in com parison
w ith am ount of earnings, b u t he does
not th in k in te re st rates should be elim
inated entirely. To do so w ould cause
loss of some accounts, and Mr. K en
n er th in k s th e ban k owes it to m any
custom ers who stuck th ro u g h th e
tough tim e, to pay them a little som e
th in g for th e ir m oney. He recom
m ended elim ination of six m o n th s’
m oney, and no in te re st on sm all sav
ings, and to accept these only for six
m onths or longer.
-Mr. D olpher spoke on th e develop
m ent of new loans, and to get new
loans for his bank, he m akes good use
of his board of directors. M any tim es
directors are farm ers—if th e b an k er
w ere to approach a farm er w ith sug
gestions for b etter farm m anagem ent,
or a different w ay of operating the
farm , he w ould receive little attention.
B ut let one of the directors of the bank,
w ho is a farm er, m ake the approach,
and th e prospective custom er w ill lis
ten. T his helps to m ake new loans,
b u t also m akes b e tte r loans out of the
ones already on th e books. Help th e
y o u ngsters in your com m unity to buy
calves, said Mr. Dolpher. These kids
w ill grow up some day, and be your
custom ers, and th e atten tio n you give
the boy often helps th e fa th e r to be a
b e tter cattle feeder. Look ahead—
w ealth comes from w h at is produced
from th e soil, not buried in it.
E llsw o rth M oser, executive vice pres
ident of th e U nited States N ational
B ank of Omaha, sen t to all of th e 700
guests and delegates a list of those w ho
attended th e N ebraska B ankers Con
vention. T his list has previously been
p resented to th e delegates d uring the
convention, b u t tim e did not perm it
such an arran g em en t th is year, so th e
list w as m ailed to th e delegates a fter
the m eeting, and w as v ery m uch ap
preciated by everyone w ho received it.
A panel discussion of live stock pro
ducing and feeding concluded th e con
vention program . E. A. K ellow ay, sec
re ta ry of the Omaha Live Stock E x
change, review ed th e background of
th e p resen t livestock price stru ctu re,
com m enting th a t he th o u g h t the ceil
ing on hides and wool w as too low.
The livestock slau g h ter th is y ear w ill
be th e largest in th e h isto ry of th e n a
tion, b u t th e supply w ill still be short.
F ran k M iller, of th e ru ra l economics
d ep artm en t of th e U niversity of N e
braska, explained w h at is m ean t by th e
term parity, saying p a rity is based on
the price th e farm er pays for th e
things he needs to operate his farm
and provide for his fam ily, th e prices
for farm products being based on th e
five-year period from A ugust, 1909, to
July, 1914.
A ccording to M arvel Baker, in the
anim al h u sb an d ry d ep artm en t of the
U niversity, also a m em ber of th e panel,
the m eat business is in a sound posi
tion, b u t we w on’t get all th e m eat we
w ant to eat u n til th e w ar is over.
The need now is for m ore pounds of
m eat and not so m uch for quality and
finish. Mr. B aker suggested th e feed
ing of m ore plain cattle—get th e beef,
b ut if necessary, sacrifice the quality.
The b an k er and th e feeder can go
along m uch as usual, of course, keep
ing credit sound a t all tim es.
Am ong resolutions adopted at the
N ebraska convention w ere th e follow
ing:
“Our co u ntry is engaged in a w orld
w ide w ar, th e w inning of w hich de
m ands th e closest cooperation and the
severest sacrifices on th e p a rt of all
A m erican citizens and organizations,
w ith o u t exception.
“T herefore, on behalf of each and
every m em ber bank, we plelge a com
plete, patriotic effort of b ankers as in
dividuals and institutions. We prom
ise th e fulfillm ent of th e ir p a rt in busi
ness and ag riculture and in any other
activities concerned w ith th e w ar ef
fort.
“We fu rth e r pledge th a t we w ill sub
ordinate any personal in terest to the
fu rth eran ce of th is w ar effort, w h eth er
it be a t th e req u est of our governm ent
or on our own in itiative.”
“W hereas, an abnorm al and unneces
sary expansion has been m ade in P ro
duction C redit A ssociations and field
offices, am ounting to an increase of 53
p er cent du rin g 1941, and
“W hereas, num erous new branch
offices have unnecessarily been added
since Ja n u a ry 1, 1942, and
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December 19b2
44
• NEBRASKA
‘W hereas, th e Production C redit Cor
poration and A ssociation are aggres
sively seeking, w ith th e help of a sub
sidy from the g o vernm ent and re s u lt
a n t unnecessary cost to taxpayers,
ag ricu ltu ral loans th a t com prise th e
necessary and essential earnings to
banks in ag ricu ltu ral d istricts, and
N E WS
“W hereas, th e capital fu rn ish ed to
th e Production C redit C orporation and
A ssociations and bond in te re st from
th e U nited States T reasu ry of nearly
$3,000,000 annually w ould be of great
assistance to tax p ay ers in financing
th e w ar, and a m aterial reduction in
th e personnel of th e Production Credit
Business Is G ood In Sidney
•
C orporation and A ssociations w ould
help relieve th e labor shortage du rin g
this em ergency.
‘T herefore, Be It Resolved by th e
N ebraska B ankers A ssociation in ses
sion N ovem ber llth-12th, 1942, Omaha,
N ebraska, th a t th e funds now subsid
izing these C orporations and Associa
tions be w ithdraw n, and th a t m an
pow er necessary to th e w ar effort be
freed and th u s place the P roduction
C redit D ivision of th e F arm C redit
A dm inistration on a tru ly self-support
ing basis, and
“Be It F u rth e r Resolved, th a t th e
officers of the N ebraska B ankers Asso
ciation be authorized and directed to
proceed as necessary to secure a Con
gressional investigation of th e F arm
C redit A d m inistration.”
“W hereas, th e A m erican B ankers
A ssociation has offered no direct oppo
sition to the subsidized com petition of
the Production Credit Asociation, and
“W hereas, it has ignored th e pleas
of country ban k ers to take th e lead
and in itiative in com bating this u n fair
com petition, and has consistently ob
stru cted th e Qfforts of th e N ebraska
B ankers A ssociation, and th e efforts of
individual co untry ban k ers to b rin g
the m atter to the atten tio n of th e prop
er au th o rities at W ashington and ob
tain the necessary relief.
‘T herefore, be it resolved th a t th e
N ebraska B ankers A ssociation solicit
the help and assistance of o ther State
B ankers A ssociations and o th er exist
ing organizations and individual coun
try ban k ers th ro u g h o u t th e N ation, in
resisting, opposing and com bating the
u n fair com petition of th e P roduction
C redit A ssociations and o ther subsid
ized governm ental agencies.”
H E tw o p ic tu re s above w e re ta k e n in T he A m e ric a n N a tio n a l B a n k o f
S idney, N e b ra s k a . T he u p p e r one show s th e lo b b y of th e b a n k on a b u sy
ev en in g . B ecause o f th e G o v e rn m en t a m m u n itio n d e p o t n e a r S id n ey , th e b a n k
is open F r id a y a n d S a tu rd a y e v en in g s fro m sev en to nine, a n d wdll o fte n cash
a th o u sa n d checks a n e v en in g . T he p a y ro ll on F r id a y w ill ru n fro m $60,000
to $75,000.
T
T he low er p ic tu re show s a g roup in th e lo b b y of th e b a n k in c id e n t to one of
th e la rg e s t CCC w h e a t lo an s on reco rd . F ro m le f t to rig h t, th o se p ic tu re d a re
D on Jo rg e n so n , v ice p re s id e n t of th e A m e ric an N a tio n a l B a n k , now in se rv ice ;
C. W. S m ith , in c h a rg e of w h e a t lo an s fo r CCC; C h arles D e av e r, one of th e
ow ners o f th e w h e a t; D. W. R eynolds, c a s h ie r o f th e b a n k ; G eorge B arlow , vice
p re s id e n t of th e b a n k ; G eorge F le m in g , a n o th e r w h e a t o w n er; A. J . Jo rg e n so n ,
p re s id e n t o f th e A m e ric an N a tio n a l B a n k ; a n d R a y B abcock, a n o th e r w h e a t
ow ner. T he w h e a t w as p u rc h a se d sta n d in g , an d fro m 40 to 50 com bines h a r
v e ste d 135,000 b u sh e ls. T he m oney in v o lv e d a m o u n te d to $168,000.
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Federal Reserve Bank of St. Louis
December 19^2
“This co u n try is now engaged in a
life and death struggle for th e p re se r
vation of dem ocracy and th e A m erican
W ay of Life, and every w o rk er is re
quested and expected to do his and h er
utm ost in this defense program . Many
bank em ployes are being called into
th e Service, and banks are being called
upon for ever increasing cooperation
w ith th e g o v ern m en t’s defense p ro
gram , and it is becom ing increasingly
difficult for banks to replace th e ir
train ed employes. F o r these reasons,
we believe th a t th e 40-hour w eek
should be suspended for th e d u ratio n
of th e w ar so far as it affects banking,
in order th a t th e employes, as well as
th e em ployers and o th er officers not
in active m ilitary service, can m ake a
g reater contribution to our u n ited w ar
effort w ithout p enalty on th e em ploy
ers.”— T H E EN D .
;
Y
45
at the final rep o rt luncheon of th e
cam paign. V olunteer w o rkers held a
victory celebration. It w as th e second
tim e Mr. Clark had led a Com m unity
C hest drive over th e quota.
P resen tatio n of th e state of Ne
b ra sk a ’s m em orial scrolls to survivors
of fifteen O m ahans who have died in
service in th is w ar highlighted Oma
h a ’s A rm istice Day observance in the
city auditorium .
The presen tatio n
w as m ade by L ieu ten a n t C olonel J. F.
M cD erm ott, w ho is on leave for the
du ratio n from his duties as vice p resi
dent of th e F irst N ational B ank of
Omaha. The scrolls are signed by
G overnor D w ight Griswold.
H OWARD B U F F E T T , O m aha in
v estm en t banker, a R epublican,
w as elected to C ongress from th e Sec
ond N ebraska D istrict by five th o u
san d votes over th e D em ocratic Con
g ressm an seeking re-election, C harles
M cLaughlin, also of Omaha, and no
one w as m ore su rp rised th a n Buffett.
He d id n ’t th in k he had a chance,
and on th e m orning a fte r th e election
he h ad a sta te m e n t read y to h an d out
co n g ratu latin g M cLaughlin. B ut he
h a d n ’t w ritte n a statem en t to use in
case he won, so he had to w rite one
later.
One of th e receptions given for
B uffett w as by th e C ongenial C ouples’
Class of D undee P re sb y te ria n C hurch
a t Omaha. B uffett has ta u g h t th e
class for several years.
P nuem onia w as fatal last m o n th at
an Omaha h ospital to E rn est A. Wiggen h orn , 65, p resid en t of th e F a rm e rs
an d M erchants N ational B ank of A sh
land, N ebraska, and one of A shland’s
first citizens.
M em ber of one of A sh lan d ’s oldest
fam ilies, Mr. W iggenhorn for 16 y ears
h ad served as city tre a s u re r th e re
an d headed a b an k w hich had been
founded by his fa th e r in 1883. In ad
dition, he had b an k in g in te re sts in
w estern N ebraska.
He w as g rad u ated in 1898 from th e
U n iv ersity of N ebraska, w here he w as
a m em ber of P hi K appa Psi fratern ity .
T h ree child ren survive, tw o d au g h ters
and a son, th e la tte r in th e arm y.
FLOYD S. M eC A FFR EE , 59, a for
m er directo r of th e F ed eral L and B ank
of Om aha and a p ro m in en t real estate
bro k er and cattle o p erato r a t Scottsbluff, N ebraska, m an y years, died in
a Scottsbluff h ospital of a stroke. He
w en t to Scottsbluff from York, Ne
braska, in 1905, organized th e Scotts
bluff N ational F a rm Loan A ssociation
and had been a m ayor of Scottsbluff.
A native of S pirit Lake, Iowa, he a t
tended M orningside College a t Sioux
City, and from 1901 to 1903 w as editor
of th e Havelock, Iowa, Item .
H is tw o sons are at K elly Field,
Texas: L ieu ten an t R obert H. McCaffree and P riv ate E dw in C. McCaffree.
H is wife and a daughter, Mrs. D. G.
Klas, Tulsa, Oklahoma, also survive.
U nder general ch airm anship of W.
Dale Clark, presid en t of th e Omaha
N ational Bank, the Omaha Commu
n ity and W ar Chest F u n d soared to
$804,307 or $17,077 beyond th e goal,
Major W . B. M illard, Jr., on leave for
the du ratio n from his duties as vice
p resident of the Omaha N ational Bank,
w as re-elected secretary -treasu rer of
the Ak-Sar-Ben board of governors at
the ann u al m eeting. D uring his ab
sence, W. D. Lane w ill serve. J E.
Davidson, p resident of th e N ebraska
Pow er Company, w as re-elected p resi
dent. Jam es P. Lee, form er Omaha
banker, w as re-elected a governor. His
M ajesty’s Council elected E. F. P ettis
president, J. L. T hurm ond vice p resi
dent, Jam es B. Moore, secretary-treas
urer.
Five of six principal business in
dicators at Omaha show ed increases
for th e w eek ending N ovem ber 7th,
With the rejuvenating mineral waters,
W found here at A m e rica s greatest spa
i§i§jetyery thrilling outdoor activity of the
. j. fall season is waiting to be enjoyed by
’m ftilijs Hotel guests. W rite today for de• scriptive literature..
EXCELSIOR
no rth w e ste rn Banker
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Federal Reserve Bank of St. Louis
December 1942
46
*
com pared w ith th e previous week,
and all w ere h ig h er th a n th e sam e
period last year.
F o r th e week, b an k clearings
show ed a gain of 42.6 to lead all oth er
indicators. B ank debits increased 36
p er cent, th e second larg est gain.
F o r th e y e a r to date, b an k clearings
are up 37.8 p er cent, b an k debits 29
p er cent.
Affairs of fo u r O m aha sm alhloan
com panies, w hich, it w as alleged in
court, charged from 100 to 300 per
cent in terest, are being w ound u p by
NEBRASKA
NEWS
A. C. R. Swenson, attorney, w ho w as
nam ed custodian.
Chief rem aining job w as th e m ail
ing of checks totaling m ore th a n $24,000 to 3,000 borrow ers w ho m ade pay
m en ts on th e ir loans vo lu n tarily after
the com panies had been tak en over
by th e state. The court later ruled
th a t these v o lu n tary paym ents should
not be accepted.
Two of the com panies—In d u strial
F in ance Com pany and P rairie Loan
Com pany—w ere closed by order of
A ttorney G eneral W alter Johnson of
N ebraska in June, 1940. E arlier, these
READY
WILLING
and A BLE
to
serve every n e e d o f
co rresp o n d en t b a n \s
issimi l
Northwestern Banker
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Federal Reserve Bank of St. Louis
i
TRUST UUNff
ST. LOUI S
December 19b2
•
tw o had tak en over th e affairs of two
o ther com panies.
The state charged th at, w hile th e
com panies them selves stayed w ith in
the th e n sm all-loan law and charged
no m ore th a n 30 p er cent interest,
they got m ore by subterfuge.
F o r instance, it w as charged th a t
persons borrow ing from In d u stria l F i
nance w ere req u ired to have th eir
notes “g u aran teed ” by th e P ersonal
G u aranty Company. Charge for “g u ar
an teein g ” a $10 loan for one m onth
w as $1, it w as alleged. The state
claimed, and th e co urt ruled, th a t
In d u strial F inance and P ersonal G uar
an ty w ere both ow ned by th e M iller
M anagem ent Com pany of N ashville,
Tennessee.
The court decision ousted M iller
M anagem ent from N ebraska.
AVTill R. Johnson, general m anager
of the N orth w estern Bell Telephone
Company, presid en t of th e Omaha
C om m unity Chest and a director of
the Stockyards N ational B ank of Oma
ha, has been elected a reg en t of th e
U niversity of Omaha.
He recently
w as elected a vice presid en t of th e
telephone com pany.
On th e board of regents, he succeeds
A. H. Clarke, form er m anager of the
Bemis Bag Com pany a t Omaha, who
recently w as tra n sfe rre d to In d ian
apolis.
G w yer H. Yates, form er president
of th e U nited States N ational B ank of
Omaha and now an official of a new
w ar in d u stry a t V ancouver, B. C., has
w ritten Omaha friends th a t Omaha
and N ebraska are receiving m uch no
tice because of th e successful N ebras
ka plan in the scrap drive and the
appointm ent of W illiam M. Jeffers,
presid en t of th e U nion Pacific system ,
as ru b b er czar.
He praised Ak-Sar-Ben’s w ar activ
ities. “I am m ore th a n proud to still
be a m em ber of Ak-Sar-Ben and w ill
sound its praises w herev er I m ay be,”
he w rote.
Carl F alk , ju n io r m em ber of th e
Omaha in v estm en t banking firm of
B uffett & Company, has been elected
p resid en t to succeed H ow ard Buffett,
w ho w as elected to Congress in the
recen t election.
In a statem en t follow ing his elec
tion, Mr. F alk said:
“The financial services of th e busi
ness w ill be continued along th e same
conservative p a tte rn th a t has been re
sponsible for the grow th of our firm .”
Mr. F alk has been an executive of
th e com pany since it w as form ed in
47
regulations governing th e installm en t
loan system , an em ergency credit sys
tem installed u n d er F ed eral law.
Consideration of a p ro test of L incoln
Join t Stock Land B ank against the
Lincoln Locals
EPO SITS in N ebraska state b anks
increased 26 p er cent d u rin g th e
p ast nine m onths, according to a sta te
m en t released by W ade M artin, direc
to r of th e state b an k in g departm en t.
Total deposits on Septem ber 30th, date
of th e last b an k call, w ere $115,557,798
com pared w ith $86,156,195 D ecem ber
31, 1941. T his is a gain of $29,471,831,
m ost of w hich is rep resen ted by an in
crease in th e deposits of individuals
w hich am ounted to $85,071,675 and
show ed an increase of $28,467,629 over
D ecem ber 31, 1941.
The previous b an k call, m ade Ju n e
30th, show ed deposits of $94,316,317.
T h at w as an increase of $17,814,011
over the $76,502,306 rep o rted Ju n e 30,
1941. The increase in deposits from
Ju n e 30th to Septem ber 30th is $21,206,340. D eposits of individuals on th e
la tte r date am ounted to $64,865,133.
T here w as an increase in loans m ade
by b an k s am o u n tin g to $5,974,566 be
tw een the call m ade D ecem ber 31, 1941,
and th e last call. T otal loans on Sep
tem ber 30th w ere $53,372,435 against
$47,397,869 on D ecem ber 31, 1941, and
$41,107,600 on Ju n e 30th.
T otal resources of th e 276 b an k s re
po rtin g in th e last call am o u n t to $128,757,407 com pared w ith $107,497,766 on
Ju n e 30th and $99,040,764 D ecem ber
31, 1941. R esources passed th e $100,000,000 m ark in Ju n e for th e first tim e
since 1931. T hey have $22,475,812 in
vested in U nited States g o vernm ent
bonds.
M artin ’s re p o rt also show ed th a t
state b anks have continued to pay off
th e ir RFC loans. T hese have been re
duced by $176,000 d u rin g th e p ast nine
m onths. R FC loans still o u tstan d in g
am ount to $422,750 com pared w ith the
high of $2,050,000 in 1934.
D
Y O U R STATE B A N K ER S A S S O C IA T IO N
O F F IC IA L S A F E , V A U L T A N D
T IM E LO C K EXPERTS
F. E. D A V E N P O R T & C O .
The su rp lu s fund, undivided profits
and reserve accounts of th e banks also
show ed an increase. Surplus funds
w ere up from $3,050,144 on D ecem ber
31, 1941 to $3,301,143 on Septem ber 30,
1942, a gain of $250,998. U ndivided
profits increased from $1,623,021 to
$1,788,713, a gain of $165,691 and re
serves w ere up from $443,303 to $538,652, an increase of $95,349.
G. F. R oetzel of K ansas City, su p er
v isor of th e Federal D eposit In surance
C orporation, and I). W. W oolley, vice
p resid en t of th e K ansas City F ederal
R eserve Bank, spoke before a m eeting
of th e b ank exam iners for N ebraska
recently.
Roetzel, w ho supervises th e exam i
nation of in su red banks for a five-state
area, a ltern ates in six m o n th s’ periods
his own exam iners w ith th e eight state
exam iners.
W oolley spoke to th e group on th e
closing of a county road near one of
its farm s in the vicinity of th e Lincoln
A ir Base and a claim for dam ages to
th e sum of $800 th erefo r occupied a
m ajor portion of th e tim e a t a recent
county board m eeting.
T he land bank, rep resen ted by W. E.
Barkley, president, and Jack Price and
F ra n k Peterson, attorneys, indicated
th a t th e additional distance it is neces
sary to trav el now in order to reach
city and m ark ets w ould figure up to
m ore th a n $100 a year. T hey claim ed
th ey had not been notified of th e clos
ing and th a t th ey “would ra th e r have
a road th a n dam ages.”
County com m issioners, on advice of
th e county a tto rn e y ’s office, rejected
th e claim after considerable discussion
in w hich Com m issioner M itchell took
th e o th er tw o board m em bers to task
for m oving to close these roads in his
d istrict w ith o u t h earin g date for prote sta n ts and w ith o u t providing o th er
roads to tak e th e place of th e one
closed. He voted “no ” on the m otion
to reject th e claim.
N EB R A SKA N EW S
Pages 40-41
OUR L O C A T IO N
Situated in Nebraska's state capital, this bank
can do more than serve you efficiently as a
correspondent. It can render you constant service
on matters that deserve personal attention. The
experience and contacts of our officers along this
line offer you such extra cooperation whenever
you need it.
YOU'LL FIND SUCH HELP HERE IN LINCOLN
C ontinental N ational
B a n k
LINCOLN
Member Federal Deposit Insurance Corporation
OM AHA
N orthw estern B anker
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Federal Reserve Bank of St. Louis
D ecem ber 1942
48
December 9, 1942
THIRTY-FIFTH ANNIVERSARY
LIVE STOCK N A T I O N A L BANK
of O M A H A , N E B R A S K A
Capital Stock December 9, 1907 (opening d ate)— $ 1 0 0 ,0 0 0
S ta te m e n t a s o f S e p te m b e r 3 0 , 1 9 4 2 , r e f le c t s t h e c o m b in e d e f fo r ts
o f th e e n t ir e p e r s o n n e l d u r in g th e s e th ir ty -fiv e y e a r s to r e n d e r
c o n s c ie n t io u s , in t e llig e n t a n d e f fe c tiv e se r v ic e to a ll c u s to m e r s .
S ta te m e n t of C ondition S eptem ber 30, 1942
LIABILITIES
RESOURCES
500.000.
750.000.
164,217.64
221,948.38
6,862.37
7,500.00
Capital Stock (Common)
$
Surplus (Earned)
Undivided Profits
Res. for Taxes, Interest, etc.
Unearned Discount
Dividend Payable Sept. 30, 1942
Deposits:
Banks (Net)
$16,296,020.35
Other Deposits 13,232,945.86
$ 8,793,137.86
Loans and Discounts
108,281.93
Bonds and Other Securities
37,500.00
Stock in Federal Reserve Bank
Banking House and Fixtures
1.00
Other Real Estate
None
U.S. Gov. Securities $11,201,794.70
(L e ss th a n M a r k e t V a lu e )
Cash, Sight Exchange
and due from
Fed. Res. Bank 11,038,779.11
4
22,240,573.81
29 , 528 , 966.21
$31,179,494.60
$31,179,494.60
O F F IC E R S
ALVIN E. JOHNSON
AND
D IR E C T O R S
W. P. ADKINS
H. C. KARPF
President
00
00
Chairman
Vice President
R. H. KROEGER
HOWARD O. WILSON
Vice President
Vice President
PAUL HANSEN
Cashier
L. V. PULLIAM
Asst. Cashier
H. B. BERGQUIST
Coal and Grain
T. E. GLEDHILL
Farmer
H. H. ECHTERMEYER
C. G. PEARSON
Asst. Cashier
Asst. Cashier
L. S. BURK
JAS. J. FITZGERALD
Secy. Commercial Sav.
& Loan Assn.
Chicago
LEO T. MURPHY
Mgr. Allied Mills, Inc.
HERMAN K. SCHAFER
Pres. Maney Milling Co.
CARL A. SWANSON
Pres. Jerpe Com.
&
Cold Storage Co.
M e m b e r F e d e r a l D e p o s it I n s u r a n c e C o r p o r a tio n
N orthw estern B anker
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Federal Reserve Bank of St. Louis
D ecem ber 19^2
A
49
N EW S
B . A. G R O N S T A L
P r e s id e n t
FRANK W ARNER
S e c r e ta r y
C o u n c il B lu ffs
D es M o in es
Story County Bankers Elect
G ilbert L. H enry, a ssista n t cashier
of th e N evada N ational B ank, w as
elected p resid en t of th e Story County
B ankers A ssociation a t a m eeting in
N evada recently. He succeeds G. Roger
Alley, cashier of th e Ames T ru st and
Savings Bank.
Mr. H enry, w ho had served as vice
p resid en t th e p ast year, w as succeeded
by W illiam H. Brow n, a ssistan t cashier
of th e S tory C ounty State B ank of
Story City and m anager of th e Zearing
office.
Mr. Brow n, p ast secretary -treasu rer,
w as succeeded by H en ry R. M artin, as
sista n t cashier of th e U nion Story
T ru st and Savings B ank of Ames.
Banking Hours Change
B anking h o u rs for both E sth erv ille
b anks changed recently. The new
tim e for opening is 9:30 in the m orning
an d th ey w ill close at 3:00 in th e a fte r
noon.
H eretofore th e b anks have
opened at 9:00 a. m., and closed at 4:00
p. m.
Improvements at
Farmers State
A crew of w orkm en have been en
gaged in in stallin g com plete new fix
tu re s in th e F a rm e rs State Savings
B ank of Independence. Of th e m ost
m odern design, th ey w ill enable a m ore
efficient h an d lin g of custom ers w ith
a m inim um of tim e. As soon as in
stallatio n is com pleted, th e in terio r
will undergo a com plete redecoration,
com pleting an im provem ent th a t
m akes it second to none.
project w ill total $1,500.
Cost of the
Atlantic Finance
Company Sold
Sale of th e A tlantic F inance Com
p any to the Iowa F inance Company
was announced by W. Dean Vogel,
w ho has accepted a position w ith the
L ivestock N ational B ank in Omaha.
F. C. T aylor of Omaha and form erly
of Avoca is tak in g over m anagem ent
of th e finance com pany. He has been
w ith the Iowa F inance Company for
several years.
Mr. Vogel will be connected w ith a
new d ep artm en t created by the L ive
stock N ational to prom ote com m ercial
deposits and loans th ro u g h o u t the
Omaha te rrito ry . P rio r to establishing
th e A tlantic F inance Company several
y ears ago, he w as em ployed w ith the
A tlantic State Bank.
Deposits Show Gain
Iow ans are paying off th e ir bank
loans so rapidly th a t th e incom e of
Iowa state banks from in te re st is
dropping $200,000 a m onth, according
to M. W. Ellis, state su p erin ten d en t
of banking.
Com m enting on a rep o rt on th e con
dition of Iow a ch artered banks for the
first th ree q u arters of th e year, E llis
said:
“The salient features of th e rep o rt
are th e continued increase in deposits
and the decrease in loans, and th e fact
th a t th e purchase of bonds o ther th an
governm ents is v irtu ally at a stan d
still.
“In spite of the general reduction
in the rate of in terest allow ed on
tim e deposits,” E llis continued, “and
the investm ent d uring the first th ree
q u arters of 1942 by the custom ers of
Iow a banks of $124,444,510 in w ar sav
ings bonds, in te re st bearing deposits
increased $2,678,181.
“Most of th e increase occurred in
th e th ird quarter.
“The increase in dem and deposits
in th e th ird q u a rte r was m ore th a n one
and one-half tim es th e increase in th e
first half of the y ear.”
Iow ans cut dow n th e ir bank loans
$24,827,621 d uring the first th ree q u ar
ters. A bout half of the decrease w as
in the th ird quarter.
R eports from th e 544 state banks
show ed th a t in th e first nine m onths
capital funds increased $2,344,343; in
terest bearing certificates $2,678,181;
dem and deposits $66,279,671 (of w hich
approxim ately 40 m illion dollars w as
in th e th ird q u arter); cash $22,639,819
and U nited States securities $71,111,495.
E llis said certificates from the tre a s
u ry d ep artm en t have been sent to
all Iowa banks in recognition of th e ir
helpful service in the d istribution of
w ar savings bonds.
After Working Hours
A business m an w ho recognizes the
dem ands of em ergency farm produc
tion d uring th e w ar and does his
added bit is D w ain Lloyd, H ornick
banker.
“B an k ers’ holidays” and
“b a n k e rs’ h o u rs” are things of the
p ast to him.
Lloyd spent th e A rm istice day holi
day from the b ank aiding E d Helmig,
farm er, w ith corn picking. The holi
day appearance at the farm did not
rep resen t a one-clay service offer.
Lloyd began helping w ith husking
th ree days before th at.
New Vice President
Jam es C. Jenson, tre a su re r of P o tta
w attam ie County since 1936 and for
m erly county banker, w as elected vice
presid en t of th e State Savings Bank,
Council Bluffs, a t a special m eeting of
directors, as announced by C. B lanch
ard, president.
S carborough ¿l € ompany
First National Bank Building, Chicago
Horace Ä. Smith, Iowa Representative
Des Moines, Iowa
N orthw estern Banker
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Federal Reserve Bank of St. Louis
D ecem ber 19^2
Defending America with Christmas
O T. NICK'S 1942 pack m ay not have the full bulge of peace-tim e, but this
Christm as Eve will find him carrying a precious gift to hom es an d
families the country over . . .
a gift of freedom . . . a g u a ra n tee of future
h appiness . . . a gift of W ar Bonds and W ar Stamps.
Symbols of the A m erican w ay of living, W ar Bonds a n d W ar Stam ps
express the true spirit of Christmas. They sp read cheer on the home-front.
They back up A m erica's fighting m en on far-flung battle fronts. So, this
year, Iowa bankers will play a bigger part in Iow a's Christm as shopping.
Through the sale of W ar Bonds an d W ar Stam ps . . . a n d in m any
other vital ways, bankers are m aking im portant contributions to A m erica's
all-out w ar effort. In doing these things, no banker seeks special recogni
tion. No roll of drum s or fanfare of trum pets is needed to arouse our
patriotism.
Yet all these things count. They a d d up to a worthwhile total. They
help to supply the financial pow er for our w ar effort that is g eared to Victory.
M e m b e r F e d e ra l D e p o sit Insurance C o rp o ra tio n
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Buying
*
Thanks to Their B a n k e r
O ne o f th e m a n y w a r re sp o n sib ilitie s sh o u ld e re d b y B a n k ers
1917 ★ 1942
6th and Locust
Des M oines
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
YEARS OF
^SERVICEI
52
•
Jenson succeeds th e late H u b ert L.
Tinley.
His position as vice p resid en t be
comes effective as of D ecem ber 1, 1942.
W hen his te n u re of office as county
tre a su re r is com pleted on J a n u a ry 1,
1943, Jenson w ill becom e an active
officer of th e in stitu tio n .
Tipton Bank Cited
The T ipton State B ank has recen tly
received a certificate of appreciation
from th e F ed eral R eserve B ank of
Chicago for display in th e b an k as an
em blem of m eritorious service re n
dered by th e b an k in th e fu rth eran ce
of th e w ar effort th ro u g h th e sale of
w ar savings stam ps and bonds.
The certificate is signed by H en ry
M orgenthau, Jr., secretary of th e
U nited States T reasury.
Bank Cashier Enlists
E d F. Miick, cashier of th e Peoples
T ru st & Savings B ank of Riverside,
enlisted in th e navy. He cam e to
R iverside a sh o rt tim e ago from W ash
ington, w here he w as associated w ith
a b ank and m ain tain ed his hom e there.
He succeeded H u b ert E. Doud in th e
R iverside bank.
IOWA
NEWS
Ruthven Bank Cited
New Service Charges
R u th v en State B ank has been given
a certificate of appreciation from th e
F ederal R eserve B ank in Chicago, Illi
nois, for m eritorious service given by
th e b an k in helping out th e sale of
w ar bonds. The certificate w as signed
by H en ry M orgenthau, Jr., secretary
of the U nited States T reasu ry d e p a rt
m ent.
New service charges for checking
accounts in M arshall C ounty banks be
came effective October 26, follow ing a
m eeting of the county b an k ers associa
tion at w hich th e step w as found neces
sary as an em ergency m easure to cope
w ith the altered economic situation
grow ing out of the w ar.
The new schedule, it is revealed,
provides for a m aintenance charge of
50 cents m onthly on any checking ac
count w hich falls below a m inim um
of $100 balance d uring th e m onth. One
free check w ill be allow ed for each
$20 of a m inim um balance, e ith e r
above or below th e $100 figure, an d
four cents w ill be charged for each
additional check.
Vice Chairman
The appointm ent of Phil A. Dietz,
p resid en t of the W alcott T ru st & Sav
ings B ank, as vice chairm an of the
w ar bond cam paign being conducted
by Scott County farm ers, w as an
nounced by R. A. Koch, chairm an of
th e ru ra l areas.
New Assistant Cashier
W ith 29 y ears of actual banking and
in su ran ce experience to his credit, L.
H. M cClurg of W all Lake has accepted
the position as a ssistan t cashier a t th e
F a rm e r’s Savings Bank.
Mr. M cClurg for 25 y ears w as cash
ier a t U nderw ood, Iowa, and for the
p ast th re e y ears has been engaged in
th e in su rance business a t W all Lake.
The Clinton Lock Company
One of the pioneer
industries of the
state, has been es
tablished in Clinton
since 1875. Its chief
products are builders hardware,
w h i c h consist of
many varieties and
styles of locks for
all requirements for
building construc
tion, from the sim
plest rim type to
the intricate master
keying and grand masterkeying cylinder types that are used on hotels and large
apartment buildings. Besides the lock section of this industry they manufacture
many other hardware items that are sold through the hardware trade.
The production of this product necessitates the operation of brass and iron
foundries, plating and polishing, tool and die, machine and press, assembling and
packing departments.
They serve the entire United States, maintaining sales offices in Los Angeles,
San Francisco, New York City, Nashville, Tenn., and Baltimore, Md.
NATIONAL
FIFTH AVENUE
SOUTH-226*
N orthw estern B anker
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Federal Reserve Bank of St. Louis
1ANK
( 9 c tv z i
CLINTON, IOWA
D ecem ber 1942
•
Member Federal Reserve
System and Federal Deposit
Insurance Corporation
Fairfield Bank Elects
R alph E astb u rn , w ho has served as
executive vice p resid en t of th e Iow a
State B ank and T ru st Company, Fairfield, since 1939, has been nam ed p resi
dent of the board by th e directors. H e
succeeds the late R. D. H u n t who had
served as president.
E dm und B. H unt, general m anager
of th e Fairfield Glove and M itten Com
pany, has been nam ed a m em ber of
the board of directors to fill the vacan
cy. R. B ruce Louden w as elected vice
p resid en t of th e board. W. B. Griffin,
Jr., is cashier of th e bank.
Addition to Figge Family
Mr. and Mrs. V. O. Figge are th e
p aren ts of a son, born early last m onth.
Mr. Figge is p resid en t of the D aven
p o rt B ank & T ru st Company. Mrs.
Figge w as Miss E lizabeth K ahl before
h er m arriage. T hey have th ree o th er
children, tw o boys and a girl.
Former Banker Dies
R alph A. Clark, 63, form er b a n k e r
and insurance m an in E lk h a rt, died at
his hom e last m onth. He had been in
ill health eight years.
In 1902, the year th a t Mr. Clark w as
adm itted to the Iow a bar, he organized
th e form er Corn E xchange Savings
B ank here. In 1917-18 he w as a m em
ber of th e Polk County E xem ption
Board.
More Pennies
Cedar Rapids banks rep o rt a de
cided increase in th e am o unt of p en
nies handled a t te lle rs’ w indow s since
th e governm ent appealed to the public
to aid in relieving th e copper shortage.
M any of the pennies, b an k ers say,
have been bro u g h t in by youngsters
w ho have been saving them over a
53
-•
period of m onths, even years, and w ho
are now urg ed by p atrio tism to tu rn
th em in.
One b an k rep o rted th e receip t of
betw een $150 and $200 in pennies from
individuals th e last few days. A nother
bank rep o rted one individual had
tu rn e d in $38.50 in pennies, and th a t
an o th e r had exchanged $115 in pennies
and o th er sm all coins for currency.
Bank Cashier Dies
<
Asa T. Davis, 55, cashier of th e F id el
ity Savings B ank of M arshalltow n,
died at th e O ttum w a h ospital a fte r an
illness of m ore th a n a year. He h ad
been in th e hospital only nine days,
b u t had been receiving tre a tm e n t in
O ttum w a since October 17, 1941.
Mr. Davis had been connected w ith
th e F id elity B ank since December,
1908, w hen th e b an k w as located at
th e co rn er of F irs t A venue and Main
Street. He served as a bookkeeper
and teller u n til 1913, w h en he becam e
a ssista n t cashier and w as elevated
to th e post of cashier in 1917. W hen
his h ealth failed a y e a r ago he w as
given a leave of absence from th e bank.
Lyon County Bankers Meet
E lection of officers w as th e m ain
business tra n sa c te d a t th e an n u al
m eeting of th e Lyon C ounty B ankers
A ssociation held in Rock Rapids.
R. W. Rossow, cashier of th e George
S tate B ank, w as reelected p resid en t
of th e organization and Carl L ehm ann,
a ssista n t cashier of th e Rock Rapids
State Bank, w as reelected secretary.
Only ro u tin e m a tte rs in connection
w ith th e o peration of ban k in g houses
w ere considered by th e group a fte r
th e d in n er m eeting.
IOWA
NEWS
•
presid en t of th e in stitution, has been
w ith the b ank now going on 49 years
and R. C. B erry, cashier, going on 45
years.
Bank Elects
Officers elected at th e ann u al b ank
m eeting of the stockholders of the
M aynard Savings B ank were: Jo h n
Meyer, president; L. D. Rowley, vice
president; L. H. Buenneke, cashier,
and P aul H arrison, assistan t cashier.
Jo h n M eyer, L. D. Rowley, F ra n k
Schm itt, E. H. Stew art, A. L. E vans,
a
Gene Cream er and Otto Schm idt w ere
chosen directors.
Page County Group Elects
W. H. L ongm an of th e Security
T ru st & Savings B ank w as elected
p resident of th e Page C ounty B ankers
A ssociation at a m eeting a t Clarinda.
E ighteen ban k ers w ere guests of th e
Clarinda bankers.
DeLos Q uist of the F irs t N ational
B ank of E ssex w as chosen vice p resi
dent and R. J. Sw anson of the Citizens
State Bank, Clarinda, elected secretary.
A ll-O ut’' Cooperation
In the new War Economy this bank is geared to go
"all out” for final victory.
Whether it be regular correspondent service—farm,
live stock or commercial items in Sioux City—or Defense
contract financing—we are well prepared to give you
the fullest measure of cooperation.
V
Buy
U n ite d S ta te s
W a r B on d s
at th is B a n k
New Employe
1
Miss Carol M itchell, w ho h ad been
sten o g rap h er and bookkeeper w ith the
P om eroy State B ank for th e p ast th re e
years, recen tly resigned to accept a
sim ilar position w ith an A berdeen,
South D akota, bank, in ord er th a t she
m ight be located n e a r h e r hom e w hich
is W essington, South D akota.
Miss Je a n B ohbrink, of M anson,
Iowa, has accepted th e position left
v acant by Miss M itchell.
T his b an k com pleted its 50th year
in business last June. Jo h n F. Gutz,
BANKS
A
A. G. Sam, President
J. P. Hainer, Vice President
J. R. Graning, Assistant Cashier
Fritz Fritzson, Vice Pres, and Cashier E. A. Johnson, Assistant Cashier
J. T. Grant, Assistant Cashier
W. F. Cook, Auditor
M E M B E R F E D E R A L D E P O S IT IN S U R A N C E C O R P O R A T IO N
Bought and Sold
Confidentially and with becoming dignity
BANK EMPLOYEES PLACED.
37 Years Satisfactory Service.
I N S IO U X C IT Y
THE CHARLES E. WALTERS CO.
OM AHA, N EB R A SK A
N orthw estern Banker
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Federal Reserve Bank of St. Louis
D ecem ber 19^2
54
M ERCHANTS
MUTUAL
BONDING
COMPANY
Incorporated 1933
Home Office
VALLEY BANK BUILDING
D es M o in es, Iowa
Q
9
This is Iowa’s oldest surety company.
A progressive company with experi
enced, conservative management. We
are proud of our hundred and fifty
bank agents in Iowa.
To be the exclusive representative of
this company is an asset to your bank.
•
•
W rite to
E. H. W ARNER
Secretary and Manager
Cnm ¿n0Ík¿tw M fÍ
Every facility for your
comfort. In the heart of
the loop. New Coffee
Shop and Sandwich
Bar. V iking Room and
Cocktail Lounge. Con
necting Garage. Rooms
with lavatory only $2.25
James L. Gormley • Raymond K. ~wansori
Managers
W iW A ifi
u m h s s o n
N N E A P O L I S
N orthw estern B anker D ecem ber 19^2
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
A tten d ing from Shenandoah w ere
Mr. Longm an, E. C. Fishbaugh, R obert
F ishbaugh, H. E. Ross, J. F. C hristian
sen, and Ray Lagerquist.
Changes and Promotions
M arvin P otter, assistan t cashier of
th e F irs t State B ank of Lynnville, has
m oved to Cedar Rapids w ith th e Col
lins Radio Co. Miss D orothy V ander
Pol w as prom oted to assistan t cashier.
Rev. F ra n k Lem ons is assisting p a rt
tim e, w ith Miss Lena M eppelink en
te rin g th e organization as bookkeeper.
Visit Son in Service
C. V. Nelson, cashier of the F arm ers
& M erchants Savings Bank, W aterville,
and Mrs. Nelson, visited th e ir son at
Camp Carson, Colorado. T heir son is
R obert S. Nelson, w ho w as form erly
a ssistan t cashier of th e F arm ers Sav
ings B ank, W alford, Iowa, and at the
tim e of his induction into th e arm y
w as associated w ith th e B ank of
A m erica b ran ch at Taft, California.
New Treasury Financing
A Challenge
To Every Banker
The announcem ent by th e U nited
States T reasu ry of g overnm ent financ
ing program for D ecem ber and J a n
u a ry involves th e largest single u n it
b orrow ing in all history, overshadow
ing any of the lib erty or victory loans
of W orld W ar I.
The total asked for and the term s of
th e v arious issues w ere not m ade
know n before we go to press. W hat is
im p o rtan t to dw ell on here is th e op
p o rtu n ity afforded to the b an k er to sell
to his custom ers and friends a type of
secu rity th a t fits any requirem ent.
E v ery com m unity has an individual
in v esto r w ho w an ts th e 2% p er cent
incom e afforded by th e tre a su ry bond
of 1963-68 or th e w ar bond series F
or G. M any com m unities have a
m erch an t w hose in v en to ry cannot be
replaced and is forced into a cash po
sition. The one-year % per cent cer
tificate, th e 1% p er cent six and onehalf y ear bond or th e tax savings note
series C afford a liquidity to m eet any
such tem p o rary conditions.
T his is a selling job, and no salesm en
w ere ever given a finer in v en to ry to
w ork against. It is a selling job w hich,
if done properly, w ill benefit th e n a
tion, th e custom er and th e banker. It
is as essential to th e w ar effort as fir
ing a gun. It is a challenge to every
b an k er and one w hich every b an k er
w ill accept.
Bank Employes
Hold Meetings
F irs t of a series of m onthly m eetings
of th e F o ru m D inner Club, composed
of em ployes of six Sioux City banks,
w as held recently. E ach bank will
sponsor a m eeting.
Sponsoring th e first m eeting, was
th e Security N ational Bank. D. P.
Shull spoke and en terta in m e n t w as
provided by rep resen tativ es of the
sponsoring institution.
A series of six w eekly m eetings,
form ing a sh o rt course stu d y of b an k
ing, also has been arran g ed by th e
club, in conjunction w ith th e board
of directors of th e Sioux City chapter,
A m erican In stitu te of Banking.
S peakers w ill be b an k cashiers.
T hey are R. E. Brown, Security N a
tional Bank; E. E. E rickson, Toy N a
tional; W. G. Nelson, L ivestock N a
tional; F ritz F ritzson, F irs t N ational;
C. T. McClintock, W oodbury C ounty
Savings, and A. J. B ertelsen, Morningside Savings Bank.
The first study m eeting w as held
October 28th. A com m itte re p re se n t
ing w om en ban k employes, of w hich
Miss Zell Lee is president, assisted
w ith th e forum program . A. G. Nel
son, vice presid en t of th e in stitu te
board of governors, is publicity ch air
man.
Johnson Promoted
A rnie J. Johnson, w ho has been em
ployed in th e R oland office of th e
Story County S tate B ank for th e past
few years, has been prom oted to th e
position of a ssistan t cashier. Thom as
F. Jacobson, w ho has held th e position
of a ssistan t cashier, is now on leave
of absence from th e b an k w hile a t
tending a special school at Des Moines
p rep a ra to ry to en terin g th e signal
corps reserves of th e U nited States
Army. Mr. Johnson has had consider
able experience in the banking busi
ness, having been associated w ith th e
form er F irst N ational B ank at Roland
several y ears ago.
Consolidation
The tw o banks of G uttenberg have
consolidated to form a new in stitu tio n
know n as the Security S tate Bank.
F o r m any years G uttenberg has been
th e only tow n in the county having
tw o banks.
T he stockholders of th e Clayton
County State B ank and of th e G ut
ten b erg State B ank w ill be th e stock
holders in the in stitution. The capital
stru c tu re w ill be about $76,000, com
p rising capital stock, su rp lu s and u n
divided profits.
All of th e deposits in both banks
55
.
have been tak en over by th e Security
State B ank and are in su red by th e
F ed eral D eposit In su ran ce C orpora
tion.
The building of th e G utten b erg State
Bank, being som ew hat larger, w ill
house th e new bank. H ow ever, u n til
ren o v atio n of th e building is com
pleted, business w ill be conducted in
th e Clayton C ounty State B ank buildingThe officers and directors have been
chosen from th e officers and d irectors
of th e old in stitu tio n s.
I t is felt th a t th is m ove is for th e
good of th e com m unity and it has th e
approval of th e State B anking De
p artm en t.
IOWA
NEWS
•
Cecil E. Lund, of Boone, Iowa, has
been appointed to fill th e vacancy in
th e b an k and has tak en up his new
duties. Mr. Lund w as form erly in th e
b anking business in L aurens, Iowa,
and for th e p ast few years has been
em ployed by the R eg ister and Tribune
Com pany as a district m anager of th e
ru ra l carriers.
New Assistant Cashier
J. A. Sm ith has resigned as assistan t
cashier of th e State Savings B ank at
C antril and has accepted a position
in th e tax com m ission office in Des
Moines.
Mr. Sm ith served as assistan t cashier
of banks at C antril for 20 years.
George L. N orris is th e new assist
a n t cashier.
Haugen Resumes
Bank Connection
N. E. H augen, who for th e past seven
years w as a p a rtn e r in the Decorah
F u rn itu re Co., has tak en a position
w ith th e Decorah State Bank, w hich
brings him back into banking circles
New Service Charges
New service charges for checking
accounts in M arshall C ounty b an k s
becam e effective th is Fall, follow ing
a m eeting of th e C ounty B an k ers’ As
sociation at w hich th e step w as found
necessary as an em ergency m easure
to cope w ith th e altered economic s itu
ation grow ing out of th e w ar.
The new schedule, it is revealed,
provides for a m ainten an ce charge
of 50 cents m o n th ly on an y checking
account w hich falls below a m inim um
of $100 balance d u rin g th e m onth.
One free check will be allow ed for
each $20 of a m inim um balance, eith er
above or below th e $100 figure, and
four cents w ill be charged for each
additional check.
SmotCs êmtiîip
Joins Federal Reserve
The T ipton State B ank is now a fullfledged m em ber of th e F ed eral R e
serve System and, as such, becom es
th e beneficiary of all privileges th a t
accrue to b anks th a t occupy such a
position.
The officers of th e b an k are J. W.
Edge, p resident; R. D. Sw artzlender,
cashier.
Bank Auditor Dies
A resid en t of Sioux City 35 years,
C larence C. Fow ler, 72, died at his
hom e recen tly a fte r a sh o rt illness.
He w as au d ito r of th e Toy N ational
Bank, w h ere he had been em ployed
since 1907.
Vacancy Filled
R. B ruce Gem m ill has resigned from
his position as a ssista n t cashier of
th e Ida C ounty State B ank of Ida
Grove. Mr. G em m ill’s resig n atio n w as
accepted and in ap preciation of his
m any y ears faith fu l service w as p re
sen ted w ith a handsom e H am ilton
w rist w atch.
DROVERS RANKS
T in te n S fo c fc T ftv td á
• C fU c a q c
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Federal Reserve Bank of St. Louis
D ecem ber 19^2
56
DES MOINES BUILDING-LOAN &
SAVINGS ASSOCIATION
O ldest an d L a rg e st
in Des M oines
411 6th A v e.
D ia l 4-7119
ELMER E. MILLER
Pres, and Sec.
HUBERT E. JAMES
Asst. Sec.
M ember Federal Home Loan Bank System
Authorized
By the
War Dept.
To Sell
Army
again. He w as connected w ith the
N ational B ank of Decorah for a long
period. T his b ank w as tak en over
by th e Decorah State about nine years
ago, and Mr. H augen w en t w ith th e
la tte r in stitu tio n then, rem aining w ith
th e b an k for about two years w hen he
becam e a p a rtn e r in th e Decorah F u r
n itu re Co. He is highly capable and
has had m uch b an king experience.
Former Iowa Banker Dies
J. P. B uscher, form er Rock Rapids
b anker, died v ery suddenly, at W ichita,
K ansas, according to th e inform ation
received in Rock Rapids. Cause of his
d eath w as not given.
Mr. B uscher came to Rock Rapids
a fte r th e W orld W ar I and became
cashier and vice p resid en t of th e F irst
N ational Bank. L ater he w as p resi
den t of th a t institution. A bout 15
years ago th e B uschers moved to
W ichita, K ansas, w here Mr. B uscher
w as in th e oil business. The p ast few
years he has been general m anager
of St. Jo sep h ’s H ospital at W ichita.
Officers'
Andrew Arent, Jr.
Joins V .O .C .
Uniforms
One of 3 Iowa Stores
With This Service
FR A N K E L ' S
DES MOINES
A ndrew A rent, Jr., w ho has been
serv in g as executive vice president
of th e H arlan N ational B ank at H arlan,
has left for tra in in g in th e v olunteer
officers corps. He has been associated
w ith th e H arlan N ational B ank for the
p ast nin e years. In 1937 Mr. A rent
w as selected as cashier for th e H arlan
N ational B ank and w as one of th e
Institutional Funds
Invited
• Current dividend
rate—3 %
• Insured safety
I o w a ’s L a r g e s t B u s in e s s T r a i n i n g S ch o o l
Many hanks, 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
D E S M O IN E S
10th and Grand
T e l. 4-4221
Z (J L C E ±
C o u n
D
® Assets now over
$18,500,000
Write for our financial
statement
TW IN CITY If I P E I M
SAVINGS & LOAN ASSOCIATION
M inneapolis, M inn.
St. P au l, M inn.
20th year planning advertising programs
for banks and trust companies. M em
ber Financial A dvertisers Association.
b l i
l a t i
R . W E S S L IN G , P R E S ID E N T
¿zA /[oL nz± , ß ro vera
N orthw estern B anker
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Federal Reserve Bank of St. Louis
D ecem ber t9'i2
youngest m en in th e state to serve
as cashier of a b ank of th e size of
H arlan N ational Bank. H e served as
cashier u n til 1940, and at th a t tim e
w as elected executive vice president
of th e in stitu tio n . T his position he
has continued to hold u n til his resig
nation p rep arato ry to en terin g the
service as a v olunteer officer candidate.
Since going to th e H arlan N ational
Bank, Mr. A rent has seen th e in stitu
tion grow in size u n til th e assets of
th e ban k exceeded $1,500,000, A pril 4,
1942.
i*
New Officers
New officers of th e W ashington and
Louisa County B ankers A ssociation
are: P resident, M alvin Roth, of W ayland; vice president, Lee H olland of
W ashington, and secretary-treasurer,
C harles H oover of B righton. They
w ill be installed at th e N ovem ber
m eeting.
>r
Woodbury County
Bankers Elect
Officers of th e W oodbury C ounty
B ankers Association, nam ed at a d in
n er m eeting of th e group last m onth,
are: A. M. M cM aster of Correctionville,
secretary-treasurer; H. W. H ays of
Law ton, vice president, and W. G.
Nelson of Sioux City, president.
From Indianola
W. N. G rant, vice p resid en t of th e
Peoples T ru st & Savings Bank, In
dianola, rep o rts th a t Gerald Beym er,
an assistan t cashier of th e bank, has
been called for arm y service. Also,
corn picking and bean h arv est are all
finished in his locality, w ith a bum per
crop of both in th e bin.
Valley Savings Bank
Enlarges Banking Space
F red erick M. M orrison, presid en t of
th e Valley Savings Bank, Des Moines,
has announced th a t th e b ank is en
larging its q u arters and m aking ex
tensive im provem ents.
A large room adjoining th e re a r of
the bank and fro n tin g on F o u rth street
is being converted into a location for
the tra n s it and proof d ep artm en t and
the bookkeeping departm ent, both of
w hich w ill be m oved from th e balcony
on th e b an king room. In addition,
one large and four sm all p riv ate
booths are being constructed for cus
tom ers of th e safety deposit d e p a rt
m ent.
O ther im provem ents include rem od
eling of the directo rs’ room, m odern
izing offices of th e b a n k ’s officials, and
sub stitu tio n of counter-type bank fix-
r
A
V
57
tu re s for th e te lle rs’ cages, w hich have
heen rem oved.
D eposits of th e Valley Savings B ank
are now $7,681,000. The officers are:
F red erick M. M orrison, p resident; J.
R. Astley, cashier; and W infield W.
Scott, vice president.
Payroll Savings
a
A
*
'v'
E m ployers w ho are giving th e ir
tim e and effort to th e fu rth e ra n c e of
payroll savings system s are going far
to in su re th e success of th e v o lu n tary
plan for selling w ar savings bonds.
The v o lu n tary sales plan, as opposed
to com pulsory savings, is based upon
th e A m erican principle of free e n te r
p rise —of selling a p roduct to a cus
to m er w ho is w illing to buy it. It
d em o n strates, m oreover, th a t business
m ethods are th e best w ay of gettin g
o u r big job done, and th a t p riv ate o r
ganizations and individuals can coop
erate w ith th e g o v ern m en t in th e ac
co m plishm ent of th is task.
T here is a p atrio tic m ove involved,
too, in v o lu n ta ry buying.
P u ttin g
th e ir m oney into w ar savings bonds
is th e only w ay open to m any A m er
icans for giving assistance in th e fight
ag ain st the Axis. To tak e from th em
th e ability to do th is v o lu n tarily w ould
deprive them of an im p o rtan t outlet
for pent-up p atriotism . T his is evi
denced by num ero u s instances of
people w ho speed up th e ir bond b u y
ing w hen th e en trance into active
service of some relative or friend
brings to those at hom e a fuller real
ization of w h at th e arm ed forces are
doing.
B usiness and in d u strial com panies
who are becom ing issuing agents for
series E bonds are not only helping
this genuinely A m erican plan of sell
ing w ar savings bonds, b u t are plac
ing the firm ’s nam e before th e public
as an unselfish co n trib u to r to the w ar
effort, and an in teg rate factor in our
national strength.
Lasting
She w as sittin g on his lap, and she
w eighed six pounds less th a n a Buick.
“Are you sure, dearest, th a t I ’m the
rig h t w om an for you?”
“Absolutely, little one. You’ve m ade
a big im pression on m e.”
Banks Sold or Bought!
quietly, quickly and in a personal manner
JAY A. WELCH
BANK BROKER
Haddnm, Kansas
‘35 Y ea rs P ra c tic a l B a n k in g E x p e rie n c e ”
BANK SUPPLIES
A d d r e s s in g M a c h in e s . . . . A d d in g M a c h in e s
D u p lic a tin g M a c h i n e s .................E le c tro -C o p y is t
E q u ip m e n t . . . O zalid W h i te p r i n t P ro c e s s
T y p e w r ite r s . . . E d ip h o n e V o ice W r i tin g
F r id e n C a lc u la to r s
KOCH BROTHERS
P r i n t e r s . . . B o o k b in d e rs . . . Office O u tf itte r s
S ta t io n e r s . . . B u s in e s s M ach in es
G ra n d A v e n u e a t F o u r th S tr e e t
D E S M O IN E S
Vital Question
In a sm all tow n w here tw o b ro th ers
are engaged in th e retail coal business
a religious revival w as held and one
of th e b ro th ers got converted. F or
w eeks he tried to persuade his p a rtn e r
to join th e church. One day he asked:
“W hy can’t you get religion and join
th e church like I did?”
“I t ’s a fine th in g for you to belong
to th e ch urch,” replied th e other, “but
if I join th e ch u rch w ho’ll w eigh the
coal?”
or
IM M EDIATE
SALES
.essing Advertising Co.
Des Moines
>
ÇJndex Ob ¿ A d v e rtise rs
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 .................. 3
A l l i e d M u t u a l C a s u a l t y C o m p a n y ............. 26
A. C. A l l y n a n d - C o m p a n y ................................. 30
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 .. 40
It
B a n k e r s T r u s t C o m p a n y ................................50- 51
B e r k o w i t z E n v e l o p e C o ..................................... 21
>
-i
.......................................................
4
33
10
6
36
52
59
47
E . E . D a v e n p o r t a n d C o m p a n y ................ 47-5 7
D es M oines B u ild in g , L o a n s a n d S a v
i n g s A s s o c i a t i o n ................................................ 56
D r o v e r s N a t i o n a l B a n k ...................................... 55
E
E l m s H o t e l ............................................................... 45
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 m p a n y . . 27
F
F e d e r a l I n t e r m e d i a t e C r e d i t B a n k s . . . . 31
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 ............. 53
F r a n k e l C l o t h i n g C o m p a n y ............................ 56
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 ...............
30
H
J
H a w k e y e M u tu al H a il In s u ra n c e A ssn ..
H o m e I n s u r a n c e C o m p a n y ..............................
H o t e l R a d i s s o n .......................................................
57
4
54
I
Io w a -D e s M oines N a tio n a l B a n k a n d
T r u s t C o m p a n y ..................................................
Twenty-four
Years of
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 m p a n y ....................
L iv e S to c k N a tio n a l B a n k — 'C h i c a g o ...
L ive S to ck N a tio n a l B a n k — O m a h a .. . . .
L iv e s to c k N a tio n a l B a n k — S io u x C i t y ..
5
57
32
48
38
M e r c h a n t s M u t u a l B o n d i n g C o m p a n y . . 54
M e r c h a n t s N a t i o n a l B a n k ..............................
2
M i n n e s o t a C o m m e r c i a l M e n ’s A s s n .......... 26
M i s s i s s i p p i V a l l e y T r u s t C o m p a n y .......... 46
X
N o rth w e ste rn N atio n al B an k and T ru st
C o m p a n y .................................................................. 34
J>
r
57
M
C
C e n tra 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 tra l N a tio n a l B a n k a n d T r u s t C o .. .
C h a s e N a t i o n a l B a n k ...........................................
C i t y N a t i o n a l B a n k — C h i c a g o .......................
C i t y N a t i o n a l B a n k — C l i n t o n .......................
C o n tin e n ta l Illin o is N a tio n a l B a n k a n d
T r u s t C o m p a n y ................................................
C o n tin e n tal N a tio n al B a n k — L in c o ln ...
K och B ro th ers
60
O
O m a h a N a t i o n a l B a n k ........................................
19
1*
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 a n d T r u s t ...............
28
36
Insurance Association
S
Scarborough
and
C o m p a n y .......... 2 0 - 2 5 - 4 9
1.an er Bldg.
T
T o w n M u tu a l D w e llin g I n s u r a n c e C o ...
T w in C ity F e d e r a l S a v in g s a n d L o a n . .
Hawkeye Mutual Hail
Fort Dodge, Iowa
27
56
TJ
U n i t e d S t a t e s N a t i o n a l B a n k ....................... 42
U n i t e d S t a t e s T r e a s u r y D e p a r t m e n t . . . 23
W
C h a r l e s E . W a l t e r s ................................................
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 ..........
53
57
56
24
Y O U R STATE B A N KERS A S S O C IA T IO N
O F F IC IA L S A F E , V A U L T A N D
TIM ELO C K EXPERTS
F. E. D A V E N P O R T & C O .
OM AHA
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
December 19't2
58
In the Directors ’ R o o m
*
Sym pathetic
Prof.: “If th e re are any dum bbells
in the room, please stan d u p .”
A long pause, th e n a lone fresh m an
stood up.
“W hat, do you consider yourself a
dum bbell?”
“Well, not exactly th at, sir, b u t I
hate to see you stan d in g all alone.”
Lam entable
“My poor b ro th e r has ju st reached
the end of his rope.”
“W here are you going—to cheer him
up?”
“No, to cut him dow n.”
Good Girl, Mary!
M ary w alked up to th e b an k clerk ’s
w indow and said: “I w ould like to
buy some tra v e le r’s checks.”
The clerk asked: “W hat denom ina
tion, please?”
M ary replied: “M ethodist.”
Slim Chance
A college graduate, who, for certain
reasons, w ished to obtain a job w ith o u t
the aid of friends and from som eone
to w hom he w as a stran g er, cam e to
New York. He proceeded to a certain
business office, and asked to see th e
m anager. W hile w aiting, he chanced
to ask th e office boy:
“A ny chance aro u n d h ere for a col
lege m an?”
“W ell,” w as th e cheering rep ly of
the lad, “th e re w ill be if th e boss
doesn’t raise m y salary to $10' by Sat
urday.”
Waiting for It
T ivo of a K in d
E nglish Prof.: “Give me an exam ple
of a paradox.”
Someone: “Two M.D.’s.”
Nerve
Liza: “The nerve of dat lady, offerin’
me $8 a w eek to do h er w ash.”
Sambo: “W hat does she th in k yo’
all is, a college grad u ate?”
He Could Sym pathize
“Hey, you, w here are you going?
P ull over to th e curb,” said a traffic
officer to a tim id d riv er who, obeying
directions from th e back seat, had en
tered th e w rong end of a one-way
street. Im m ediately a w om an in the
re a r seat chim ed in:
“T h a t’s right, officer. H e’s been
speeding all day, and I knew h e’d be
arrested . It ju st serves him rig h t!”
“Your w ife?” asked th e officer w ith
a sym pathetic look at the scared d riv
er.
The d riv er nodded.
“D rive on, b ro th er,” said th e police
m an.
The m an had lost a five-dollar bill.
Sadly he en tered th e ad v ertisem en t
office of th e local new sp ap er and h a n d
ed in th e notice he w anted in serted in
th e “L ost and F o u n d ” colum n.
The ad tak er alm ost guffawed w hen
he read, “Lost, a $5 bill. Sentim ental
value.”
Obedient
Coincidence
D uring a b attle a g eneral of a Negro
regim en t noticed th a t one of his dusky
m en seem ed to be devoted to him and
followed him everyw here. A t length
he rem arked: “W ell, m y m an, you
have stuck by me w ell d u rin g th is en
gagem ent.”
“Yes, suh!” said th e colored soldier.
“Mah ol’ m om m er back in A labam a
done to l’ m e to stick w id de generals
a n ’ A h’d be OK. Dem generals nevvah
gets h u rt, she says!”
I crep t u pstairs, m y shoes in hand,
J u s t as th e n ight took w ing—
A nd I saw m y wife, four steps above,
Doing th e sam e darned thing.
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
December 19't2
Mushy, W hat?
Blessings on thee, p re tty miss;
Q uaker m aid I long to kiss.
W ith th y m erry w aton quips,
A nd th y q u irk in g lipstick lips.
All th a t sort of th in g connotes
T h at thee know s th y Q uaker Oats.
L
P
K n e w His Generals
The teacher w as g reatly pleased to
find h er class so alert. “W ho,” she
asked, “w as the great F ren ch general
in the W orld W ar?”
“G eneral Foch,” w as the reply.
“W ho w as th e great G erm an gen
eral?”
“G eneral H indenberg,” an o th er re
plied.
“W ho w as th e g reatest of all th e
generals—an A m erican general?”
“Two of th em ,” replied Bill.
“Name th em ,” said the puzzled
teacher.
“G eneral M otors and G eneral Elec
tric.”
4
As Pat Viewed It
Two young Irish m en had ju st gone
into th e trenches d u rin g th e W orld
W ar, and th eir captain prom ised $1 for
every one of th e enem y th ey killed.
P at w as asleep w hen he w as aw akened
by Mike shouting, “The G erm ans are
charging! W ake up!”
“How m any are th e re ? ” shouts Pat.
“A bout 50,000,” says Mike.
“B egorra,” shouts Pat, ju m ping up
and grabbing his rifle, “our fo rtu n e’s
m ade!”
Heart-rending
The cavalry re c ru it w as in stru cted
to bridle and saddle a horse. Ten m in
utes later the sergeant-m ajor came
along for his m ount and found th e re
c ru it holding th e bit close to the
horse’s head.
“W hat are you w aiting for,”’ he
roared.
“U ntil he yaw ns,” answ ered th e re
cruit.
Different W ith Rookie
“I have a pain in m y abdom en,” said
th e rookie to th e arm y doctor.
“Young m an,” replied th e medico,
“officers have abdom ens, sergeants
have stom achs; YOU have a belly
ache.”
M isunderstood
Several m en w ere trav elin g by train.
P resen tly one produced a large fru it
cake, w hich he devoured greedily.
Tim e passed. Suddenly he began
groaning and doubling him self Up and
straig h ten in g out again. W hen this
had gone on for some tim e, a friend
asked him :
“ ’Sm atter, Jim ?”
“T h at cake I ate,” groaned the suf
ferer. “It had nuts, and I th in k the
m issus forgot to shell th em .”
“L or!” said his friend. “And can
you crack ’em ju st by bending?”
Soused
A m an was fum bling at his keyhole
in the sm all ho u rs of th e m orning. A
policem an saw his difficulty and came
to th e rescue.
“Can I help you to find th e keyhole,
sir?” he asked.
“T hash all right, old m an,” said the
other, cheerily, “you ju st hold the
house still and I can m anage.”
4
%
Ì-
Continental
Illinois
National Bank
and
Trust Company
of
Chicago
M em ber Federal D eposit In su ra n c e C orporation
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
n u r O p p o rtw u t/
w
our OBLienTion
Finances oi today’s W a r is the largest, most important fiscal
undertaking in history.
Banks of Iowa have an opportunity to help by investing in
Government securities for their own portfolios . . • by urging
customers to buy United States V /ar Bonds and Tax Savings
Notes.
Banks of Iowa have an obligation to help because our whole
hearted cooperation is essential to quicker V icto ry and the res
toration of peace.
The Banks of Iowa and the citizens of our State were never in
stronger financial position than they are today. Funds are avail
able in Iowa for purchase of a large amount of Government securi
ties . . . today’s best investment. It is the Banker s opportunity
. . . and obligation . . . to sell these securities to our people . . .
thousands of whom are asking,
W h at
can I do to help?
During the last V/or!d V /ar, Iowa won
acclaim by being the first state in the
Nation to go
over the top
in the third,
fourth and fifth Liberty Loan drives.
Iowa won’t be found lagging in today s
emergency. But close cooperation, care
ful planning and hard work are necessary
to maintain Iowa’s leadership.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
@FedFRASER