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DECEMBER 1943 G O IN G -TO -SU N M O U N T A IN A t the sum m it of Logan P ass, in Glacier N ational Park you LO A N https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T O D A Y -A N D Page 20 CO LLECT TO M O R R O W Current B usiness Inform ation O ur c o rresp o n d en t co n n ectio n s w ith m id-w est hanks is m u tu ally valu ab le to the b an k s we serve and to ou r ow n in stitu tio n . T h rou gh ou r close a sso cia tio n with b a n k s th ro u g h this territory, we are en ab led to assem b le current b u sin ess in fo rm a tio n fr o m every section and in turn d issem in ate it to o u r b an k er cu sto m ers. W e co rd ia lly in v ite you r b u sin ess o n the stren gth o f o u r ab ility to ren d er you r bank a w orth w h ile service. A CEDAR R A P ID S BA N K CEDAI* RAPIDS SERVICING A LL IOWA M ERCHANTS NATIONAL BANK OFFI CERS J a m e s E . H a m i l t o n , Chairman S . E . C o q u i l l e t t e , President H. N. B o y s o n , Vice President R o y C. F o l s o m , Vice President M a r k J . M y e r s , V. Pres. & Cashier G e o r g e F . M i l l e r , V. Pres. & Tr. Officer M a r v i n R. S e l d e n , Vice President F r e d W. S m i t h , Vice President J o h n T. H a m i l t o n II, Vice President R. W . M a n a t t , Asst. Cashier L . W . B r o u l i k , Asst. Cashier P e t e r B a i l e y , Asst. Cashier R. D. B r o w n , Asst. Cashier 0. A. K e a r n e y , Asst. Cashier S t a n l e y J . M o h r b a c h e r , Asst. Cashier E. B. Z b a n e k , Building1Manager i,TV ' . < Cedar Rapids Member Federal < Io w a Deposit Insurance Corporation E gE i E E l E i ^ E i *: N orthw estern Banker, published m onthly by the De Puy Publishing Company, at 527 Seventh St., Des Moines, Iowa. Subscription, 35c per copy, $3.00 per year. Entered as Second Class Matter January 1, 1895, at the P ost Office at Des Moines, Iowa, under A ct o f March 3, 1879. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis /I fI • r i ■- - https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis i» « . Eam *U w h o 's b u y in g a tii’tiv i io T O K Y O J u s t an everyday m an — h a p p e n s to be an A ll new gross p re m iu m s collected on fire O f course, lie’s not going and other policies w ritte n b y th e H o m e d u r to go to Tokyo personally— U ncle Sam lias ing the last n in e m o n th s o f 1943 w ere to be o th er nephew s looking fo rw ard to th a t trip invested in W ar L oan B onds. . . . h u t h e ’s h e lp in g to p a y fo r it. chases have been O V ER and A B O V E the in su ra n c e agent. A nd h e ’s actively dem o n stratin g th e A m er ican capacity fo r organization — the “ pull- These p u r norm al g o vern m en t bond purchases w hich the com pany has c o n tin u e d to m ake. to g eth e r” th a t p u ts th is country shoulder F o r instance, lie’s been cooper * THE HOME * ating w ith o u r com pany in sponsoring its c< yn y to sh o u ld er w ith its fighting m en w herever they are. N in e tie th A n n iv ersary W ar L oan cam paign, w hich pro v id ed th a t: N E W A U T OMOB I L E N in etieth A n n iv e r s a r y Year https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Y O R K o "Appreciate Your Editorial" ‘ ‘ I w as delig h ted to receive your recent le tte r an d a p p rec ia te your fo rw a rd in g me a copy of your e d ito ria l e n title d ‘D ear E d die Y. R ick e n b ac k e r’, w hich you published in the N o r t h w e s t e r n B a n k e r . ‘ ‘ A gain, m any th a n k s fo r your in te re s t a n d hope our p a th s m ay cross in the not too d is ta n t fu tu re . ’ ’ E d d ie R ic k e n b a c k e r , P re si dent and General M anager, P a stern A irlin e s, 10 R ocke fe lle r P laza, N ew Y o r k C ity. ‘ ‘ F ra n k ly , your little ch at did m ake me hom esick, b u t please d o n ’t feel th a t you have done th e w rong th in g . Once in a while, it does a soldier over here a g re a t deal of good to have someone rem ind him th a t th ere really is such a place as home, a n d th a t he, too, w as once n o th in g b u t a m ere kid. W e see so m any sm all you n g sters over here th a t g e t in our h a ir an d g ripe us to no sm all extent. P e rh a p s we too o ften im press them w ith our old age and never give them m uch of a chance. M y idea is th a t these kids are n o t a t all like those back home, and th ere fo re should be tre a te d "Loans Holding Even" ‘ ‘ D eposits here are going up quite rap id ly , an d loans are holding a b o u t even w ith our average fo r th e p a st fo u r or five years. “ Y ou m ig h t be in te re ste d to know th a t I b e g an w ork as a n em ploye of th is ban k tw enty-five y e ars ago in N ovem ber, and th a t th is y ear th e e arn in g s of the b a n k will be the best in all th a t period. ’ ’ D. H . D in g s l e y , Cashier, R ow ley S a v in g s B a n k , Rowley, Iow a. A Letter from "Somewhere" E d ito r ’s N o te.— The fo llo w in g letter fro m Corporal A lv in W arren Johnson, son o f A l vin Johnson, p resid en t o f the L iv e Stock N a tio n a l B a n k, Omaha, was w ritte n to his m other fro m “ som ew here” on the fig h tin g fro n t. ‘ ‘ D ear M o th e r: “ I enjoyed re a d in g th ro u g h your ancient d ia ry w ith you. I t also b ro u g h t back m em ories o f th e p a st w hich have all b u t been • f o r g o t t e n d u rin g these m any m onths over seas. I could see you lau g h in g over the m any clever sayings of your all-to o -in telli g e n t c hildren (? ) Guess m y p ra y ers w ere not answ ered in respect to fu tu re w ars, b u t the good L ord has kep t me fro m being a fra id . F o r th is, I have had reason to be very th a n k fu l. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C O R P . A L V IN W ARREN JO H N SO N differen tly . The m ost successful m ethod is to leave them alone. Then, too, the local ‘ dead-end kids ’ have been th ro u g h a very g re a t deal m ore of life th a n th e ir b ro th ers back in the U. S. A., an d th is has to be tak e n into consideration. A ll in all, it is a tough m ental proposition. ‘ ‘ Those packages you have sent me have not sta rte d to roll in as yet, b u t I do not d oubt b u t w h at the process should s ta r t soon. T oday is alm ost th e first day th a t th ere has been no m ail fo r us since the tim e when the m ail first s ta rte d rolling in here. So fa r, I have received 290 le tte rs from various sources. You realize of course th a t I have trie d very h a rd to give w hat news is possible. O f la te th ere has been too little tim e fo r re ad in g an d w ritin g and sleeping. “ M ust a d m it th a t d u rin g th e p a st th ree days I have taken tim e out to catch up on some of the stories an d a rticle s a p p ea rin g in the various m agazines. T here have been some m ig h ty good as well as a cc u rate a r ticles w ritte n by th is a u th o r an d th a t, in th is m agazine and th a t, concerning the re cent invasions. N a tu ra lly , I have read these w ith in te re st. H ave noticed also th a t T im e has been fe a tu rin g a few of our big nam e g enerals on the cover page of th e ir p ublication. P erso n ally , I ’ll have m uch to re la te when I do m anage to w end m y w eary w ay home. “ M y usual hum an in te re st stories will have to be w ithheld fo r the p resen t due to m any reasons, b u t the b ig g est is th a t I h a v e n ’t been around enough to pick any new stuff up. Glad to h e ar th a t the Dell is now la rg e r an d m ore co m fo rtab ly f u r nished. M iss th e old stom ping grounds and the g a n g I used to find there. F ro m all re p o rts, th a t ‘ old g ra y m a r e ’ a i n ’t exactly w hat it used to be. I suppose th is roughtum ble g a n g of m ine will soon change my atm osphere of non g aiety into one of la u g h te r an d w ild tale s a bout the w ars if ever they are p u t to g e th e r in one place long enough again. “ One of the old R. A. F . liaison officers, should now say two of ’em, ju s t cam e into the office, an d the place is going m ad. These two m en are re ally swell, an d sm art, too. I d o n ’t know w here they have been, b u t we have m issed them ju s t the sam e. Some of our m ore in te re s tin g tales are now going ab o u t the ro o m ; so p erh ap s som ething censorable m ight osmos its e lf in to these pages g iving you so rt o f a n inside account of m y recent p a st. B e tte r quit th is pounding fo r a while b efo re I m ention s u th in ’ I oughtent. T h e y ’re k id d in g th is pud g y o f ficer p re tty well now as he lim ps his w ay out of the office. H is lim p, I think, was caused by a m osquito b ite on his foot. H e has lived a ru g g ed life, th is m an. “ As f a r as I am concerned, everything is com ing along quite well. A ll th e news sounds very good, and I keep on w ondering w h at it is all lead in g up to. I d o n ’t look fo r a n y th in g b reath less b re ak in g m uch b e fore the th aw in g s ta rts on G e o rg e ’s L ake and the younger g ang m akes trac k s fo r th eir various ‘ shacks. ’ Sure wish it would, though. “ The A ugust 9th L ife ju s t came in and I had to thum b th ro u g h it or else lose even a fleeting glance a t it. I noticed a th o r ough coverage of the Sicily deal, even m en tioned one of m y orig in al homes. ‘ ‘ Seems as tho u g h a few m ore re p o rts have come in since I began th is le tte r; so 1 will have to be shoving off p re tty soon. A plane ju s t swooped down over us m ig h ty low, b u t it w as one of the boys. The A u g u st 3rd H erald came in also along with V. S. N ew s of A u g u st 6th. Should give me som e in te re s tin g re ad in g fo r la te r on ( T u r n to page 26, please) N orthw estern B anker D ecem ber 19f3 M m d fmete in -Jffitt Inter-American trade is vital to the economy and soli darity of our hemisphere. War has both emphasized its importance and increased its complexity. For this reason current information on economic and exchange conditions within the Americas is essential to all those engaged in inter-American commerce. Our numerous correspondents supply us with such information from every commercially important city in Central and South America. These same correspondents— leading banks in their communities— offer through us special facilities for the prompt handling o f collections. These Chase facilities which are always at the dis posal of our domestic correspondent banks provide a valuable service for their own customers. THE CHASE NATIONAL BANK OF THE CITY OF NEW YO R K M em b er F ed 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 s D ECEM BER 1 94 3 FORTy.EIGHTH YEAR N U M B ER 677 O ldest Financial^Journal West of the'Mississippi River IN T H IS IS S U E C L IF F O R D D E PU Y Publish er Editorials A c ro s s th e D e sk f ro m th e P u b lis h e r. 8 R A LP H W. M O O R H E A D Associate Publisher H E N R Y H. H A Y N E S Editor RUTH K IL L E N Associate Editor M A R G U E R IT E B R O W N Office Supervisor E L IZ A B E T H C O L E Feature Articles D e a r E d it o r ............................................................................................................................................. F r o n t i s p a g e .................................................................. ................................................. ........................ Do W e O w e I t to O u r s e lv e s ? .......................................................................................................... A . B. A . A g r i c u lt u r a l C o m m itte e M e e tin g ........................................................................... S a v in g s & L o a n a s a n In v e s tm e n t O u t l e t ........................................ A llis o n W a u g h N e w s a n d V ie w s o f th e B a n k in g W o r ld .................................................. C liffo r d D e P u y S om e P C A “ G r a s s R o o ts ” F i g u r e s .................................................. S to c k I n t e r e s t a n d O w n e rs h ip R ig h ts — L e g a l D e p a r t m e n t ........................................... F in is h th e W a r — I n s u r e t h e P e a c e .................................................. .G eo rg e W . W o o d s M a n a g e m e n t R a ti n g C h a r t f o r B a n k s .................................................................................... Y ou L o a n T o d a y — a n d C o lle c t T o m o rro w ............................................. E r l in g H a u g o V is itin g A lo n g th e L a k e ............................................................ ..........H e n r y H . H a y n e s 5 11 12 13 13 14 15 16 17 18 20 22 Advertising Assistant Insurance BETTY M IL L E R H o w W e C o lle c t P r e m iu m s ............................................................................................................. 25 Circulation Department Bonds and Investments P o s tw a r P ro b le m s ......................................................................................... J a m e s H . C la r k e 29 State Banking News 527 Seventh Street, Des Moines 9, Iowa Telephone 4-8163 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M in n e s o ta N e w s ................................................................................................................................... N e w C o n s tr u c tio n in S t. P a u l . . .......................................................................................... T w in C ity N e w s ...........................................................................J a m e s M . S u t h e r la n d S o u th D a k o ta N e w s .............................................................................................................................. S io u x F a l ls N e w s ................. ....................................................................................................... N o r t h D a k o ta N e w s .......................................................................................................................... N e b r a s k a N e w s ........... ....................................................................................... ............................... J u n i o r N e w s ................................................................................................. J o h n L a u r it z e n O m a h a C le a r in g s .......................... ....................... ...................... .............................. L in c o ln L o c a ls .............................................................. Io w a N e w s ........................................................................ ..................................................................... N e w W a te rlo o B a n k I n t e r i o r ........................................•............................................. T w e n ty -fiv e Y e a r s A g o ............................ ................ ............................. 31 31 33 35 35 37 39 39 41 43 45 50 53 The Directors Room A F e w S h o r t S to r ie s to M a k e Y o u L a u g h 58 Across the Desk From the Publisher 2>ec^i ¡/a im J l. J le w il: P erh ap s w hen the history of this w ar is w rit ten, you will be considered the g reatest labor lead er of our tim e—b u t we doubt it. P erh ap s w hen this w ar is over and 10,000,000 boys in the arm ed services re tu rn to work, they will say you contributed most to helping win the w ar—b u t we doubt it. P erh ap s you th in k the sh u ttin g down of coal mines, w hich in tu rn prevented the production of steel, which in tu rn delayed the m anufacture of tanks, tru ck s and airplanes, was a contribution to the w ar effort—b u t we d o n ’t. P erh ap s you th in k your blustering, bom bastic, dom ineering m ethod of try in g to appear bigger th an the Governm ent itself will add fame and glory to your nam e when the history of labor legislation is w ritte n —b u t we doubt it. No, Mr. Lewis, you have done more to harm , h u rt and destroy the labor union cause in A m er ica th an any m an in all its history. If coal m iners have had grievances against th eir em ployers—if w orking conditions should have been im proved—if wages shoidd have been ad justed, or if any other questions or grievances needed to be adjudicated, then we say they should have been discussed, and they were, and they should have been settled by arb itra tio n , and they were. But, w ith the greatest w ar in which A m er ica has ever been engaged, the m iners should never have been ordered to strike. The m iners should have k ep t on w orking while you were arb itra tin g . The trouble w ith you, Mr. Lewis, is th a t every tim e you negotiate, w hether or not it is w ith the mine operators or w ith the Governm ent, and the N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 1943 decision is not to your liking, then you get mad and call a strike. W hen the boys in the Solomons were living in the m ud and the rain, and m any tim es w ithout enough am m unition, did they strike because they w anted b etter living conditions and shorter hours and more pay? No. They kept on fighting. W hen the A m erican troops landed on the shores of Ita ly un d er the w ithering fire of the Germ an guns from the shore b atteries and the odds were trem endously against them, they d id n ’t q uit— they k ep t on fighting. A nd your m iners should have k ep t on w orking, Mr. Lewis, if for no other reason th an because we are a t war. No, Mr. Lewis, we th in k your history of your m anagem ent of labor unions in Am erica, and es pecially of the m in ers’ union, has been a blot on la b o r’s banner w hich it will tak e m any, m any years to erase—and besides we w o u ld n ’t w ant to be in your shoes when 10,000,000 soldiers come m arching home a fte r this w ar is won. 2>eaA £suc A. jjalttutan,: As president of the Cham ber of Commerce of the U nited States, we th in k you are doing the finest job th a t has been done in a long time. Y our various speeches about business— about in d u stry — about labor— and about the G overn m ent have been tim ely, forceful and constructive. In speaking of the G overnm ent, you said, “ If you run to the Government the Government will run y o u .’’ T hat is exactly true, b u t it is also ju st w hat m any business men and laboring men are doing. If they have a problem th a t seems tough and 9 h ard to settle, they go to W ashington and only m ake conditions worse in the “ D istrict of' Con fusion. ’ ’ AVe w ere especially interested, Mr. Johnston, when you said, “ Our economic system is not d y ing- of old age. It is dying from its chains—the re strain ts, restrictions and exactions th a t are fastened on it by some tra d e associations, some labor unions and some governm ental units : T rade associations and cartel com binations th a t seek to create m onopolistic conditions, hold prices up, and keep production down. Labor unions which overstep th eir function of insuring decent wages and hours, and keep production down. “ L abor unions w hich overstep th eir function of in su ring decent wages and hours, and seek to increase labor costs th ro u g h unreasonable re stric tions on output, resistance to productive new de vices, and a score of other destructive regulations. G overnm ents—federal, sta ts and city—th a t load every k ind of business w ith unnecessary re g u la tions, th a t stran g le enterprise and then lie in w ait for the successful m an in order to confiscate the profits he m ay m ake from an investm ent in which he has risked a fortune. “ In a com plicated society, I recognize th a t gov ernm ent m ust m ake and enforce rules and reg u lations. B ut we m ust have the m axim um freedom of en terprise and the m inimum of governm ent controls consistent w ith a m odern in d u strial civ ilization. “ Our system suffers not from lack of oppor tu n ity , b u t from the b u re au crat and the ta x col lector. There is but one salvation for our crippled giant. U nbind him! S trike the chains from his limbs, and then behold him la b o r!’’ To unshackle business from G overnm ent com petition and control is the g reatest problem fac ing A m erican business today. S peaking of our postw ar com petition w ith E ngland, a prom inent B ritish envoy said re cently th at, “ Your fa r g re ater efficiency in p ro duction will be balanced by our fa r g re a te r effi ciency in governm ent. You have the w o rld ’s m ost efficient big business and its least efficient big go v ernm ent.’’ If, however, our “ least efficient big govern m e n t” tries to run our “ m ost efficient big busi ness” our big business as well as our little busi ness will be fu rth e r ham pered by inefficient gov ernm ent control. So, we say to you, Mr. Johnston, keep up your fight for free enterprise—keep up your fight for the A m erican system — keep up your fight against the blighting control of government bureaucracies. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis jbea^i (It. cMa*i. (le jfln a ld M cK en n a : As Ex-C hancellor of the E xchequer and one of the leading bankers of E ngland, we were in te r ested in your suggestions about postw ar recon struction and m onetary reform s. As you know, your own country is tending much more tow ards Socialism th an is the U nited States, although this seems strange to those of us who th in k of E ngland as being on the con servative side when it comes to political reform s. Some political reform ers believe th a t the en tire banking system of E ngland should be tak en over by the governm ent, and even some p o liti cians w ith Socialistic tendencies have the same ideas in the U nited States. T hat most of these political reform ers show a “ re g rettab le lack of acquaintance w ith actual banking p ra c tic e ” is very well pointed out in your article on this subject which we read re cently when you said, “ Among plans for post w ar reconstruction and m onetary reform , it is re g rettab le th a t some proposals show a lack of ac quaintance w ith actual banking practice. One such plan overlooks the fact th a t if a b ank is to rem ain solvent an addition to its liabilities m ust be offset by an equal addition to its assets; others would have the effect of p u ttin g an end to banks altogether by com pelling them to hold cash against the entire am ount of deposits placed w ith them . The most w idely advocated proposal is a sweeping claim th a t the banks should be n a tionalized. “ The term nationalism is not clearly defined b u t it m ust be presum ed th a t the assets and lia bilities of all banks are to be tak en over by the S tate and th a t banking is to be operated as a S tate monopoly. I t is not suggested th a t the banks are inefficient, or financially unsound, or th a t the public would find the service of a S tate m onopoly more convenient or economical th an th a t of banks w orking under the stim ulus of com petition. AVe quite agree w ith you, Mr. M cKenna, th a t the public would not find banks more efficiently ru n or more financially sound if they should be come a S tate monopoly, and certainly govern m ent owned banks would not “ banish unem ploy m ent and w a n t.” AVe hope, Air. M cKenna, th a t you can keep your English politicians “ thin k in g s tra ig h t” as fa r as banking reform s are concerned. A nd then when you have done th a t we will be glad to sug gest several groups in A m erica where your “ sug g estions” will also be most helpful. N orthw estern Banker D ecem ber 19^3 10 From The Far Flung Battle Fronts, the Camps and the Seven Seas— these Patriotic Employees R . H . A llison E d Bliquez; J. C . B rekken Ellis W . C o n kling R ex G . C ox C lyde C ra m e r E. L. C u m p sto n R ic h a rd L. D avis C laren ce D ickson R o b e rt D o n h o w e W m . F. E agan, Jr. Joseph P . F ox R o b e rt F ra m p to n H o w a rd F ran k lin Join ivith R o b t. G allow ay D av id G . G a u lt Joseph P . G ed d en H a ro ld R . H olm es W m . R . H ill K enyon K now les P au l M cD o n n ell K arl M o rris G eo. T . N elso n R . K. N esw o ld E v e re tt N e w co m b G eorge N o a h G eo rg e O lsen F red O w en s the D ale P earso n B a rto n P e d d ico rd P h ilip C . R a c h fo rd Jo h n Q u in e r C . W . S anner Irw in S haw D ale C . S m ith H a r ry T u s a n t D o n ald W a lsm ith Jo h n W illa rd D o n W ith in g to n E d H . W o lf Ira L. W r ig h t L aw ren ce J. W r ig h t ficers; Directors O Employees o f the Central N ational Bank and T rust Company OF DES MOINES In Extending Their Sincerest HOLIDAY GREETINGS N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 1943 i , * /HO- ' f> ~ 3O I f y o u w o u ld li k e e x tr a c o p ie s o f th is p ic tu r e w e w i l l b e g la d to s e n d th e m to y o u w ith o u r c o m p lim e n ts .— T h e N o r th w e s te r n B a n k e r . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker D ecem ber 19^3 12 Do W e O w e It to Ourselves? Some People Refuse to W orry Because They Say W e Owe the Billions of National Debt to Ourselves. Do You Agree With That Argument?— A Northwestern Banker Survey IT H th e n atio n al debt ap p roaching $200,000,000,000, and w ith a possibility of it reach ing $300,000,000,000, we h e a r m any presum ably in tellig en t people say, “W hy w o rry —we owe it to ourselves, don’t w e?” It seem ed to us th a t th u s lightly b ru sh in g aside a few billion dollars rep resen ted ra th e r an u n u su al b ran d of reasoning, so T h e N o r t h w e s t e r n B a n k e r conducted a su rv ey am ong presid en ts of th e larg er b anks of the country, asking them to give us th e ir reaction to th e above question. Am ong th e replies received w ere th e follow ing: W "An Absurd Argument" SIDNEY MAESTRE President Mississippi Valley Trust Company St. Louis T he “we-owe-it-to-ourselves” a rg u m en t used to ju stify th e statem en t th a t a large public debt im poses no b urden becom es, w h en p ushed too far, palpably absurd. If each person w ere tax ed exactly in p ro p o rtio n to his incom e derived from his holdings of th e public debt, th e arg u m en t m ight be valid. T his condition is, how ever, unrealistic. “W ith th e p re se n t d istrib u tio n of ow nership of th e public debt, th e p ay m ent of th e principal and in te re st in volves a tra n s fe r of funds from one group to an o th er, and it is as a re su lt of th e tra n sfe r of funds th a t th e b u r den of th e public debt arises. The tra n s fe r involves a re d istrib u tio n of w ealth and th is re d istrib u tio n prob ably w ould tak e place in a m an n er so as to low er th e p ro d u ctiv ity of th e econom ic system . In th e first place, th ere is ad m in istrativ e w aste and de lay. N ot all th e funds w ith d ra w n by tax atio n w ill be re tu rn e d im m ediately. This will b rin g about disorganization of trad e and com m erce. In th e second place, th e funds used to pay th e debt or in te re st m ay be raised by unw ise taxation. It w ould be easy to raise funds by im posing taxes th a t w ould low er th e n atio n al income, reduce th e level of in v estm en t and discourage production by u n d u ly raisin g prices. In the th ird place, th e price level at w hich th e n atio n al debt w ill be paid N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 19^3 off w ill probably be below th e exist ing one. T his w ill increase th e real b u rd en of th e n et debtors and resu lt in a gain on th e p a rt of th e creditors. F inally, th e rep ay m en t of obliga tions ow ned by th e com m ercial b an k ing system m ay not rep resen t even a tra n sfe r of funds b u t a w ith d raw al of p u rch asing pow er. The p u rchasing of G overnm ent securities by th e banking system at th e p resen t tim e has draw n a tten tio n to th e danger of inflation w hich m ay re su lt from th e creation of p u rch asing power. T his fact has al read y been pointed out in connection w ith nearly every w ar loan drive. T he rep ay m en t of th e obligations held by th e banking system w ould in m uch th e sam e m an n er reduce th e volum e of funds. In short, p u rchasing pow er w ould be destroyed. T his process m ig h t resu lt in th e im position of even g re a te r bu rd en s upon th e economic system resu ltin g from deflation. “It m ust be adm itted, how ever, th a t th is arg u m en t has seldom been ad vanced by responsible econom ists w ith o u t sub stan tial qualifications, b ut even these modified versions have probably u n d erstated th e difficulty of paying th e in terest and principal of public debt w ith o u t seriously h am p er ing in d u strial expansion and grow th. In short, th e repaym ent, or even the carry in g of th e public debt in th e p o stw ar y ears w ill introduce v ast problem s in th e tra n sfe r of funds and th e red istrib u tio n of w ealth w hich w ill probably serve to low er th e level of natio n al incom e and in d u strial produc tion.” "Budget Must Be Balanced" ROLFE O. WAGNER President C apit al C ity State Bank Des Moines “I do not agree w ith th e above statem ent. It is tru e th a t practically all of o ur national debt is owed to our ow n citizens. N evertheless, in m y opinion, afte r th e w ar th e national in come m u st be m aintained a t a suffi ciently high level to balance the budget and service th e debt. If the federal budget is not balanced w ithin a reasonable period after th e end of th e w ar, I feel we w ill definitely have som ething to w o rry about.” "Definitely No" FRED W. THOMAS Vice President First National Bank Omaha “D efinitely no. W e look about and see quite a n um ber of businesses built up after a lifetim e of effort lost by the ow ner. Those businesses and busi ness m en th a t survive are carry in g a tax load th a t m ay jeopardize th e fu tu re existence of th e ir business. It appears th a t too m uch of th is tax load is spent in w aste and inefficiency. H ow ever, th e m ore recen t a ttitu d e of congress tow ard dem anding g reater efficiency in expenditure of tax funds gives some encouragem ent. “A national debt of any am ount w ith a tax load to su p p o rt it is justified if necessary to w in th e w ar and save our n a tu ra l resources for ourselves. F ran k ly , I am n ot so m uch concerned over th e am ount of th e national debt, provided it is efficiently disbursed for th e purposes desired by Congress and th e people. B ut th ere w ill come a tim e w hen we m u st get back to a m ore able and sensible w ay of doing things.” "W ash Your Neighbor's Clothes" PHILIP R. CLARKE President C it y National Bank & Trust Company Chicago “The idea th a t th e size of th e F ed eral debt need not cause any w orry ‘as long as w e owe it to ourselves’ is, in m y opinion, about as sound as th e idea said to have prevailed am ong the citizens of an early G recian tow n th a t th ey could m ake a living by ta k ing in each o th e r’s w ashing.” "Not That Simple" T. B. STRAIN President Continental National Bank Lincoln “I w ish th a t th e only answ er to give to yo u r question w ould be ‘W hy w o rry about it, we owe it to ourselves, don’t w e?’ U nfortunately, I don’t be lieve it w ill be quite as sim ple as th a t unless we w an t to rep udiate debt or set up th e pins for inflation w ith in the country. I th in k , as is alw ays the (T u rn to page 27*. please) 13 Savings & Loan as an Investment O utlet By ALLISON WAUGH Director, Financial Development Co mpany, Chic ag o ORE th a n 100 y ears ago th e in sti tu tio n s w hich we now know as savings and loan associations or as building and loan associations had th e ir origin back in P ennsylvania. Spon sored by groups of public sp irited in d i viduals, it w as devised as a com m unity e n terp rise set up to provide funds for th e purpose of building of hom es by th e people of th e com m unity. Since th a t dim d ista n t day and age th e in d u stry of building and loan has grow n to large proportions, reach in g into every state in th e union and to alm ost every com m unity of any im portance. T he b uilding and loan association is a m u tu al in stitu tio n . T his m eans th a t th e in stitu tio n itself is owned, lock, stock and b arrel, by th e “depositors,” com m only know n as m em bers. The m em bers of th e in stitu tio n s elect th e ir ow n d irecto rs or tru ste e s and th e di recto rs or tru ste e s elect th e executive officers. The affairs of th e association are in direct charge of th e board of directors, b u t th e y are in d irectly u n d er th e co n stan t su pervision of the real ow ners and m em bers. The m odernized 1943 developm ent of the building and loan association is quite different from th e old type in stitu tio n , b u t it re ta in s all of th e ex cellent ch aracteristics w hich have been adopted because of th e trem en d o u s success of th ese in stitu tio n s. Today th e re are a group of abo u t 2,500 of these associations know n as F ed erally in su red savings and loan associations. T his group com prises approxim ately 1,500 associations, w hich have received and o perate u n d e r c h a rte rs from the F ederal governm ent. To th is group is added n early 1,000 sta te c h a rte red as sociations w hich have fully qualified to m eet th e req u irem en ts of th e F ed eral au th o rities, have becom e m em bers of th e F ed eral H om e Loan B ank Sys tem , m em bers of th e F ed eral Savings and Loan In su ran ce C orporation and w hich have standard ized upon th e ru les p rescribed by th ese F ed eral a u thorities. It has been said th a t th e m odern F ederally in su red association is ex trem ely sim ilar to th e savings d e p a rt m ent of th e average com m ercial b an k and th a t to all in te n ts and purposes it is actually a m u tu al savings b an k and is a fu n d am en tally in teg ral p a rt of A m erican finance and banking. W e m u st observe th a t in com m ercial b a n k ing w e have tw o types of banks, th e F ed erally c h a rte red “natio n al b a n k s” M https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and th e state c h artered state banks. W e m u st draw th e parallel th a t th e savings associations offer th e F ed eral ly ch artered “F ederal Savings and Loan A ssociation” and th e state ch ar tered states building and loan corpo ration. W e m ust fu rth e r note th a t the com m ercial banks w hich offer in su r ance of deposits are usually m em bers of th e F ederal R eserve System and are alw ays m em bers of th e F ederal De posit In su ran ce C orporation and we m ust note the parallel th a t all insured associations are m em bers of F ederal H om e Loan B ank system and also m em bers of F ederal Savings and Loan In su ran ce Corporation. The F ederal R eserve System operates th ro u g h 12 regional banks and form s th e banking system for m em ber banks, w hile th e F ederal H om e Loan B ank system , operating th ro u g h 12 regional banks, form s the banking system for th e in sured associations. The accounts in insured banks are insured for safety by a F ederal instru(T u rn to page 27, please) A . B. A . Agricultura I Committee T he A g ric u ltu ra l C om m ission of th e A m e ric a n B a n k e rs A s so c ia tio n m et in St. L ouis la s t m o nth, w h ere th e above p ic tu re w a s ta k e n . S e a te d a ro u n d th e ta b le , s ta r tin g w ith M r. W ig g in s a t th e u p p e r le ft, a re A. L. M. W iggin s, p re sid e n t, A m e ric a n B a n k e rs A sso c ia tio n ; True D. M orse, D oane A g ric u ltu ra l S e rv ice , St. L o u is; G. C. H unter, e x ec u tiv e vice p re sid e n t, P eo p les B a n k , K oxboro, N . C.; D. J. Needham , g e n e ra l counsel, A m e ric an B a n k e rs A s so c ia tio n , W ash in g to n , D. C.; H. M. Emerson, c ash ie r, F ir s t N a tio n a l B a n k , L ew isto n , Id a h o ; John E. W ise, p re sid e n t, W illa rd U n ite d B a n k , W illa rd , O hio; Thomas E. N oel, p re s id e n t, F i r s t N a tio n a l B a n k , M em phis, T e x a s; Dr. E. C. Y oung, d e an of G ra d u a te School, P u rd u e U n iv e rs ity , L a f a y e tte , In d .; O luf Gandrud, p re s id e n t, Sw ifx C o u n ty B a n k , B enson, M in n .; G. H. N esb it, vice p re sid e n t, F i r s t N a tio n a l B a n k & T ru st C om pany, F a rg o , N. D .; A lonzo P ette y s, v ice p re sid e n t, F a rm e rs S ta te B a n k , B ru sh , Colo.; P aul M. Jones, a s s is ta n t cash ie r, Old P h o e n ix N a tio n a l B a n k , M e d in a, O hio; J. P. Culpepper, vice p re s id e n t a n d c ash ie r, B a n k o f A la p a h a , A la p a h a , G e o rg ia; C. W. B ailey, p re sid e n t, F i r s t N a tio n a l B a n k , C la rk sv ille , T ennessee, c h a irm a n , F ood fo r F re e d o m C o m m ittee, A m e ric an B a n k e rs A s so c ia tio n ; K en neth J. M cDonald, p re sid e n t, Io w a T ru s t a n d S a v in g s B a n k , E sth e rv ille , Io w a ; A. G. Brown, d e p u ty m an a g er, A m e ric an B a n k e rs A sso c ia tio n , N ew Y o rk ; W arren Garst, cash ie r, H om e S ta te B a n k , Je fferso n , Io w a ; E. L. Boston, p re sid e n t, F i r s t N a tio n a l B a n k , A n g le to n , T ex a s; John H. Crocker, vice p re s id e n t, C itiz en s N a tio n a l B a n k , D e c a tu r, 111.; H. P. Parker, p re sid e n t a n d tre a s u re r, C a p ita l S a v in g s B a n k & T ru s t Co., M o n tp e lie r, V e rm o n t; Dr. V an B. H art, e x te n sio n p ro fe s so r of f a rm m an a g e m e n t, C ornell U n iv e rs ity , Ith a c a , N . Y .; E lw ain H. Greenwood, s e c re ta ry , O regon B a n k e rs A sso c ia tio n , P o rtla n d , O regon; O tis A. Thompson, p re sid e n t, N a tio n a l B a n k & T ru s t C om pany, N o rw ich , N. Y .; c h a irm a n , A g ric u ltu ra l C om m ission, A m e ric an B a n k e rs A s so c ia tio n ; E. H. M evis, c ash ie r, F a rm e rs M e rc h a n ts N a tio n a l B a n k , P rin c e to n , W isco n sin ; W . L. Sm ith, vice p re s id e n t a n d c ash ie r, F ir s t N a tio n a l B a n k , L a k e G eneva, W isco n sin ; R. N. D ow nie, p re sid e n t, F id e lity S ta te B a n k , G a rd en C ity, K a n s a s ; Charles T. O’N eill, v ice p re s id e n t a n d t r u s t officer, N a tio n a l B a n k & T ru s t C om pany, C h a rlo tte s v ille , V irg in ia , c h a irm a n , S u b c o m m itte e on A g ric u ltu ra l C re d it o f F e d e ra l L e g isla tio n C o m m ittee, A m e ric an B a n k e rs A s so c ia tio n ; Ben S. Summ erw ill, p re sid e n t, Io w a S ta te B a n k & T ru s t C om pany, Io w a C ity, Io w a ; John N. Thom son, vice p re s id e n t a n d c ash ie r, B a n k o f C e n te rv ille , C e n te rv ille , S o u th D a k o ta . N orthw estern Banker D ecem ber 19^3 14 New s O F THE and B A N K IN G V ie w s W O RLD By Clifford DcPuy can Society, Mrs. C ornelius V anderbilt, HAT a fine w ay to s ta rt a trip east for a m o n th by hav in g th e w ith o u t w hom no M et opening is quite legal. R ocket tw o h o u rs late into Chicago, th e n m issing th e Comm odore V ander “Janet of F ran ce” w as a fam ous bilt to New York by eight m in u tes and a rriv in g on th e 20th C entury to find head liner in vaudeville a nu m b er of y ears ago and now operates a v ery de th a t y o u r hotel (nam e on request) reserv atio n m ade a m o n th previous lig h tful cafe at 237 W est 52nd Street, w as not available because “guests h ad New Y ork City. Signs on th e w alls are rem iniscent of L eon and Eddies. not checked out as expected.” Aside from those slig h t inconven F o r exam ple, “A lcohol is the on ly b ev iences e v ery th in g sta rte d off sm oothly. erage w hich m akes m an see double W and feel sin g le.” C onversation o v erh eard in a P u ll m an sm oker betw een tw o sailors: “W hy sh o u ld n ’t th e y d ra ft pre-Pearl H arbor fathers; th e w in n in g of th is w ar is m ore im p o rta n t to th em th a n it is to u s?” In te re stin g scene in Childs a t 45th and B roadw ay w as an old lady about 76, sittin g at a fro n t w indow table eat ing crack ers and cheese a t 3:00 p. m. on a Sunday aftern o o n and d rin k in g tw o jiggers of w hiskey for “cheese chasers,” we presum e. W hen th e M etropolitan opened its 60th season th is year, th e D iam ond Jubilee occasion b ro u g h t out m any of th e top celebrities of New Y ork society and not for years, “have so m any or so fabulous jew els been on public dis play,” said th e critics. H ow ever, Mrs. H enry L. D oherty, w idow of th e public u tilities m agnate, d id n ’t care for th e “w hole th in g ” and w as p h otographed w ith “th u m b to nose” in th e fam iliar sign of contem pt. D escribing th is in te re stin g episode, one re p o rte r said, “Mrs. D oherty a r rived about half w ay th ro u g h th e first act of M oussorgsky’s grim opera, B oris Godunoff. T he opera w as grim , b u t Grace D oherty w as not. By th e end of th e first in term issio n she seem ed to know all th e p h o to g rap h ers in th e S h e rry ’s b a r by th e ir first nam es. W hen th e y finally tu rn e d th e ir lenses on her, she u nexpectedly m ade th a t now fam ous gesture, th e first tim e ever seen in th e 60-year h isto ry of th e Met. The M et celebrated its D iam ond J u bilee w ith an opening th a t w as notable for jew els, if n o t for Old G uard So ciety nam es. Most conspicuously not-present at th e opening w as th a t Queen of Ameriorthw estern B anker Digitized forNFRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 19't3 D onald K. Clifford, a cousin of ours w ho lives in B ronxville, and his beau tifu l w ife had a b irth d ay p a rty for th e ir fourteen-year-old d au g h ter and kin d ly invited us along w ith “tw elve o th er girls.” A fter d in n er w e all w ent to see th e Colgate radio program “Can You Top T h is?” a t Radio City and, as far as w e w ere concerned th e “best show ” w as w atching these youngsters have fun and enjoying every “wise crack ” of th e Colgate com edians. B etw een m aking out y o u r govern m ent reports, read “C hallenge to F ree dom ,” by H en ry M. W riston, president of B row n U niversity. It is a grand book and in one ch ap ter he says, “The bureaucratic architects put floors u n der w a g es and ceilin g s over prices— but th ey did not leave room b etw een floor and ceilin g for a free man to stand u pright.” G overnor T hom as E. D ew ey of New York believes in th e fu tu re of our 48 states w hen he says, “In th e period ahead th e states w ill be strong. T hey alone w ill have survived th e w ar w ith out overburdening debt. T hey express th e v itality and resurgence of a free people. T hey are u n afraid of th e fu ture. T hey are un tram m eled by the w eariness and defeatism th a t comes from th e repeated fum bling of over centralized g overnm ent w hich believed Heads Iowa S W P C Office LaV erne M. B arlow , w ho resigned recently as OPA re n t ad m in istrato r for Polk county, Iowa, has been nam ed d istrict loan agent for th e Sm aller W ar P lan ts C orporation, w ith h ead q u arters in Des Moines. T he te rrito ry u n d er his supervision covers all of Iowa, w ith th e exception of six counties adjacent to Omaha, N ebraska. Mr. B arlow for m any years has been engaged in com m ercial and in v estm en t b anking in Iowa. In th e pictu re above, Mr. B arlow is receiving congratulations from region al officers of th e Sm aller W ar P lan ts C orporation and from local bankers. In the picture, from left to right, are George D. Jorgensen , a ssistan t vice president, Iowa-Des M oines N ational B ank & T ru st Company; Mr. Barlow; E. A. Schroeder, a ssistan t regional loan agent, SWPC, Chicago; A rthur P. Mur phy, regional loan agent, SWPC, Chi cago; E. F . B u ck ley, president, C entral N ational B ank, Des Moines; Carl W. M esm er, vice president, B ankers T ru st Company, Des Moines; A rthur Donho w e, vice president, C entral N ational Bank, Des Moines, and L eslie H. Bean, d istrict m anager, SWPC, Des Moines. 15 th a t th is c o u n try w as b u ilt to s a tu ra tion in 1932.” o th er soldier, “le t’s tackle one job at a tim e.” B oston w hile w e w ere there. B illy R ose is th e producer and Oscar Hamm erstein II a rran g ed th e play. Jack Sheehan, th e s ta r in “Lady B eh ave,” now playing a t th e A m bassa “Carmen Jo n es” is a new all-col ored m usical show w hich opened in Our guess is th a t it w ill be a B road w ay hit. dor T heater, New York, says to th e leading lady of th e show, “On m y sal ary, I can ’t su p p o rt you and th e gov ernm en t, too.” M ayor F. H. LaG uardia is not as p o p u lar as he once was, a t least w ith P atrolm an D avid Liebm an, w ho m ade th e sta te m e n t a t a public g ath erin g in New Y ork th a t crim e conditions w ere v ery bad and th a t th e m ayor w as to blam e for th e “lo w est state of m orale th at has existed in the police depart m ent for m any years.” M aybe th e “L ittle F lo w e r” is fading. T offenetti R e sta u ra n t on 43rd and B roadw ay is th e only eatin g place in New Y ork w h ere th e custom ers w ho eat d o w n stairs are b ro u g h t back up to th e first floor on an escalator—and not necessarily because th e y have over eaten. Col. W illard C hevalier, p u b lish er of B usiness W eek, spoke to th e Boston A dvertising Club w hile we w ere th e re on “W hat Shall AVe Do AATith V ictory?” and em phasized th a t A m erican in d u s try had m ade good in a big w ay d u rin g th e w ar, and m u st continue to do so w hen peace is declared, by m ain tain in g (1) A high level of em p loym ent, (2) A high le v el of production and (3) H igh efficiency. A H artford, C onnecticut, n ew spaper carried th e follow ing advertisem ent, ju st before tu rk e y day: “E n jo y y o u r T han k sg iv in g d in n e r for only $1.50 at th e A rcade D rug Store.” Seen on th e sign boards th ro u g h New E n g lan d “G orton’s Cod F ish Cakes ready to fry w ill return w hen peace com es.” As fa r as we are con cerned, th e y can stay aw ay p erm a n en tly —alth o u g h peace w ill be m ost welcome. T he first question all v isito rs to New Y ork ask is, “W h en can I g et tick ets to ‘O klahom a’?” and th e an sw er is “A bout n e x t sp rin g .” Two soldiers talk in g in th e G rand C entral Station, a fte r finishing fu r loughs a t home: “G irls are fu n n y these days, if you tak e th em out tw ice and kiss th em a few tim es, th e y w a n t to know w hen are we going to get m a r ried, and I am for w aitin g u n til th e w ar is over.” “So am I,” replied the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Some P C A " G rass Roots 77 Fisures H E dem and of th e n atio n ’s banks for the elim ination of th e u n fair gov ern m ent subsidized com petition of P roduction Credit A ssociations, m ade possible by th e incom e th ey enjoy on th e $120,000,000 of governm ent capital subsidy, w as placed before Congress last m o n th by th e A m erican B ankers A ssociation in four days of hearings held by th e Select Com m ittee on A gri cu ltu re to investigate the activities of th e F a rm Security A dm inistration. Am ong th e m any w itnesses w ho tes tified for th e A. B. A. w as M. W. Ellis, Iow a su p erin ten d en t of banking, who, from all reports, got rig h t dow n to th e grass roots of th e m atter, and gave the C ongressm en some hard, cold facts. One of th e exhibits p resen ted by Mr. E llis w as th e ch art show n below, com p arin g 1942 PCA operations in Iowa and N ebraska w ith th e earnings of 542 Iowa banks du rin g the sam e pe- T riod. Careful analysis of th e ch art w ill be found m ost interesting. As a p a rt of his testim ony, Mr. E llis said: “If th e little com m unities in the t co u n try cannot develop enough vol um e to su p p o rt a bank, probably th ey are not entitled to b anking service. N or are w e of th e opinion th a t the PCAs should continue unless th ey can stan d on th e ir ow n feet. I do not th in k th e PCAs should req u ire any subsidy from th e U. S. G overnm ent, and I th in k th ey should be released from this control over th e ir officers and directors. I th in k th ey should be allowed to go on th e ir own and be really and tru ly cooperatives. I w an t both set up as free en terp rise u nder th e free en terp rise system . I w an t all PCAs to be free en terp rise as strictly farm cooperatives, and I w an t th e banks to be allow ed to o perate as free en terp rise also.” C O M P A R IS O N O F 1942 P C A O P ER A TIO N S IN IO W A A N D N EBR A SKA E arn in gs and E x p en ses for Each U n it of $100,000 of R esou rces of $754,215,000 542 Iotva State Chartered B an ks— R esources 12,430,000 17 Iow a Production Credit A sso cia tio n s--R eso u rces 8,072,000 14 N ebraska Production Credit A ssociations-—R esources 542 Iowa Banks ........ 7,542 17 Iowa PCAs 124.3 Earnings: In terest on Loans .................................. In terest on Bonds .................................. F ee and M iscella n eo u s........................... . . . . 1,624 ........ 401 ........ 438 2,259 51 205 2,681 5. Operating R evenu e .................................... 6. R ecoveries ................................................. . . . . 2,463 ........ 173 2,515 16 2,852 8 7. Gross R evenu e . . . . 2,636 2,531 2,860 1,105 147 1,098 135 101 128 1. N um ber of $100,000 U n its ...................... 2. 3. 4. 8. 9. 10. ............................................ E xpenses: Salaries— Office and F ie ld ..................... ........ Travel E x p en se ............... E x ecu tiv e C om m ittee, D irectors and A nnual M eeting E x p en se .............................. 793 14 Neb. PCAs 86.7 171 11. 12. 13. 14. 15. T axes ........................................................... In terest Paid ............................................. Charge Outs ............................................... A ll Other E x p en ses ................................ ........ ........ ........ ........ 416 408 412 16. Total E xpense ........................................ . . . . 2,044 2,467 2,582 17. 18. O perating Profit .................................... E stim ated D irect Subsidy $79,920 . . ........ 592 64 643 278 592 19. P rofit and Subsidy ................................ ........ 592 707 870 793 207 395 233 1,353 1* 697 8 1,361 1 808 0 ♦ E s tim a te d ta x on $11,909 of e q u ip m e n t. N orthw estern B anker D ecem ber 1943 Do Majority Stock Interests Always Measure Ownership Rights? M AJORITY stock in te re st in each of th re e w idely separated N o rth D akota state b an k s w as ow ned by one individual. The banks w ere sm all and h ad only a few em ployees each. T he n u m b er of em ployees of one of th e b an k s w as so sm all th a t th e N orth D akota U nem ploym ent C om pensation Law w as not applicable th e re to unless it w as con sidered along w ith th e tw o oth er banks to be an em ploying u nit. Should it be so considered m erely because a m ajo rity of its stock w as ow ned as above outlined? A No. In a recent d ecision the North D akota Suprem e Court held that the m ere fact th at one person is sh ow n to he the ow ner of the m ajority of the stock in each of three separate bank in g corporations does not con stitute one of them an em ployer for U nem p loym en t C om pensation L aw pur poses. It is to be inferred from the d ecision that if the in dividu al operated the banks as though th ey w ere one in stitu tion the h olding w ould have been to th e contrary. A ru lin g sim ilar to that in N orth D akota m ay be found in M issouri. An Iow a fa rm e r and his w ife m ade out a jo in t w ill in w hich th ey nam ed th e ir friend, an Iow a b anker, executor and in w hich th e y devised to th e s u r vivor for life all of th e p ro p e rty owned by th em w ith th e rem ain d er to th e ir children. T he fa rm e r died and th e w ill w as duly prob ated by th e banker. S ubsequently th e w ife died. W as it in o rd er to prob ate th e will as controlling for h e r estate also? Yes. In the absence of com p elling reason s requiring a different handling, of w hich there w ere none here, a joint w ill d evisin g a life estate to the su r v ivor of the testators w ith the rem ain der to third persons is en titled to be probated upon the death of each tes tator. H ickenloopah, a M innesota b anker, died in th a t state leaving a w ill w hich provided, am ong v arious m atters, th a t $500 should be paid to each of his five daughters. One of th e d aughters, Mrs. Geneva Jones, h ad predeceased him . P rio r to h er death, Mrs. Jones had had N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 1943 These and Other Timely Legal Questions Are Answered By the LEGAL DEPARTMENT no children, b u t she w as survived by h e r h usb an d and he w as alive at th e tim e of H ickenloopah’s death. Should Mrs. Jo n es’ husband receive th e $500? No. S itu ations sim ilar to the one outlined are governed by the com m on law in M innesota w hich holds that a legacy lap ses by the death of the legatee before that of th e testator. Since the legacy lapsed th e husband of the predeceased daughter w as not en titled to it. Suppose th at, in the preceding ques tion, Mrs. G eneva Jones h ad had tw o child ren d u ring h e r lifetim e and th ey had been alive a t th e tim e of H icken loopah’s death. W ould th ey have been en titled to th e legacy? Yes. S itu ations sim ilar to this are covered by statu te in M innesota and the com m on law rule does not apply. T h is statu te p rovides th at if a child or other blood relative of a testator, to w hom a d evise or b eq uest has been made, dies before the testator, leavin g issu e w ho su rv iv e the testator, such is sue sh all take the sam e estate w hich such d evisee or legatee w ould have taken if he had survived. Suppose th at, in the first question reg ard in g the H ickenloopah will, H ick enloopah had m ade bequests of $500 to each of his dau g h ters o ther th a n Mrs. Jones and, as to her, m ade a special bequest of $1000, reciting, as an incident thereto, th a t it w as to dis charge an indebtedness owed by him to h e r for funds advanced to him by her. W ould th e legacy have lapsed in such circum stances? No. A gift by w ill, g iv en to discharge a debt or obligation and not as a boun ty, does not lapse upon the death of the beneficiary before th at of the te s tator. This is true even though the debt is barred by th e statu te of lim ita tion s or is o th erw ise not legally bind ing. A South D akota b an k er w as also a highw ay co n tracto r in th a t state. As an incident to some of his w ork for the state he en tered into a contract w ith th e state w hich provided th a t he w as not to perform any ex tra w ork on th e project involved w ith o u t a w ritten o rder to do so. D espite th is provision in th e con tract he did certain ex tra w ork. W hen he p resented his bill th erefo r it w as refused. Can he re cover? No. Stip ulations requiring a w rit ten order for any alterations or extra w ork are frequ en tly inserted in con tracts for public w ork s and h ave been often construed by the South D akota Suprem e Court to be binding on the p arties and to prevent a recovery for extras by a contractor w h en there is no com pliance w ith such provision. A N orth D akota b ank sold a tru ck ow ned by it to D ickersback on in stall m ents. The conditional sales contract evidencing th e deal provided th a t if D ickersback defaulted in his paym ents the b ank could repossess the tru ck w ith o u t legal process. D ickersback defaulted. Could th e b ank repossess th e tru c k w ith o u t court proceedings if it could do so w ith o u t breach of the peace or u n law ful trespass? Y"es. AYhere a conditional sales con tract ex p ressly p rovides for rep osses sion w ithou t legal p rocess upon de fault, such rep ossession need not be obtained through court proceedings if it can be accom plished w ith ou t breach of the peace or u n la w fu l trespass. The N orth D akota Suprem e Court has so held in a recent decision. Suppose th at, in th e preceding ques tion, th e bank, as an incident to the repossession of th e tru c k had agreed w ith D ickersback th a t it w ould hold th e tru c k for five days in w hich he m ight m ake good his default. Suppose fu rth e r th at, in violation of its agree m ent, th e b ank sold th e tru c k to Snow, w ho had no know ledge or notice of the (T u rn to page 28, please) 17 Finish the W a r— ItlSU tBthe Peace A Program Outlining W hat Should Be Done to Bring the W ar to a Successful Conclusion, and the Terms Upon Which the Peace Should Be Made By G eo rg e W . W oods The Peace Program Executive Vice President First National Bank Council Bluffs, Iowa 1. L east possible in ju ry to every n a tion, including Axis nations. 2. No fines or indem nities against any nation. 3. U nited States shall not a ttem p t to collect for lend-lease aid to associate U nited N ations. The W ar Program 4. No p u n itiv e trad e restrictio n s or dis crim inations. All countries to be on “Favored N ation B asis.” 1. C ontinue fighting u n til all Axis arm ed resistan ce be crushed. 5. An in tern atio n al h ealth and san ita tion organization m ay be established w ith th e consent of th e signatory nations, b u t no o th er p erm an en t in te rn atio n al organization w ith dele gated pow ers shall be set up. 2. U nited N ations to occupy and set up provisional g o v ern m en t in Axis te r rito ries u n til four o th er w a r objec tives are achieved; nam ely, (a) D isarm am ent of Axis natio n s to bare necessities for in te rn a l po licing. (b) V ictor natio n s to change or ad ju s t natio n al b o undaries in m an n er best designed to prom ote and p reserv e fu tu re peace. (c) V ictor nations, th ro u g h th e ir ow n civil and m ilitary re p re se n tatives, shall d eterm in e all p u n ish m en ts to be inflicted upon loser nations, and citizens th e re of; and th ese v icto r natio n s shall im m ediately give effect to such punish m en ts. No such p u n ish m en ts, how ever, shall be carried fo rw ard and beyond pe riod of m ilita ry occupation. (d) V ictor nations, by fair policing and m ain ten an ce of order, shall give th e peoples of each n atio n am ple o p p o rtu n ity to set up a form and c h a ra c ter of g o v ern m en t w hich th ese peoples m ay choose by th e ir ow n votes in a free election. 3. Co-incident w ith th e m ilitary occu pation and achievem ent of th e p re ceding objectives, th e U nited N a tions, u n d e r th e leadership of R u s sia, G reat B ritain, C hina and th e U nited States, b u t w ith p a rtic ip a tio n advice and counsel from o th er n atio n s w hose v ital in te re sts are affected, shall p re p a re a Global T re a ty w hich shall be governed by p rinciples and specific provisions, as outlined in th e follow ing program . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis GEORGE w . W OODS H a s W a r-P ea ce P ro g ra m W ar Is not M essianic Is not altruistic Is not Christian Requires no forgiveness of crime or wrong doing Is not idealistic Peace It seeks to be realistic and p racticab le . It recognizes and respects the sovereignty of each in dependent nation* and, It assigns to each sover eign nation both freedom and responsibility to manage its own econom y and to develop its own culture, short of ex ternal physical aggression. 6. Conflicts or problem s as to race, religion, political ideologies, educa tional objectives, shall be reserved for solution by th e g o vernm ent of th e nation w ith in w hich these prob lem s arise, unless such conflicts should re su lt in a w ar w hich spreads into adjacent countries. 7. G erm any, Italy and Jap an shall not be allow ed to re-arm in any degree w ith o u t th e specific consent and ap proval of Russia, B ritain, China and th e U nited States, a n d /o r o ther n e a r by nations w hose v ital in terests m ay be directly th re a te n e d by such re arm am ent. 8. Russia, G reat B ritain, China and the U nited States shall agree in th e T reaty to ren d er a w orld service in th e in terest of peace and order as lim ited and defined w ith in this sec tion. A ny nation req u irin g protec tion against actual or th reaten ed ag gression m ay ask th e four nations nam ed, plus an y o th er nations w hose vital in terests are directly in volved, to designate com petent and im p artial rep resen tativ es to consti tu te a board of in q u iry to ascertain th e facts and to re p o rt th e facts, w ith th e b oard’s recom m endations, to th e ir hom e g overnm ent for appro p riate action, b u t each board of in q u iry th u s created, or called into being, shall be discharged w hen it shall have perform ed its one specific duty. N orthw estern B anker D ecem ber 19^3 MANAGEMENT RATING CHART FOR BANKS THE RE TRO G RE SS IV E BANK THE SU PER IO R BANK THE INTERMEDIATE BANK M AN AG E M E N T 1. O fficers a n d k e y em p lo y es c h o sen b e c a u s e o f a b ility . Q u alified b y t r a i n i n g to c a r r y o u t p o lic ie s a s d ec id ed b y th e d ire c to rs . 2. A b ility a n d q u a lific a tio n s o f officers a n d k ey e m p lo y es g iv e n f u ll c o n s id e ra tio n in m a k in g p ro m o tio n s . 3. P r in c i p a l officers a r e f r e q u e n t ly in v ite d to m e e t w ith th e b o a r d of d ire c to rs . 4. D ire c to rs w o rk w ith th e officers in o b ta in in g n e w b u s in e s s . 1. O fficers in m a n y ca ses c h o sen o r p ro m o te d b e c a u s e o f s e n io r ity o r th r o u g h th e in flu e n c e o f sto c k h o ld e rs a n d d ir e c to r s . 2. N o officer o u ts id e o f th e p r e s id e n t is a m e m b e r o f th e b o a rd o f d ire c to rs . 1. O fficers do n o t m e e t w ith th e d ir e c to rs . 2. O fficers a n d em p lo y es c o n s id e r th e m s e lv e s a n d a r e c o n s id e re d as h ir e d h a n d s . 3. V a c a n c ie s in official s ta f f filled f r o m o u ts id e t h e o r g a n i z a tio n . 1. P o lic y m a k in g f u n c tio n o f th e b o a r d of d ir e c to r s w eak . 2. N o p o licie s e s ta b lis h e d as to in v e s tm e n t p r o g r a m , n e w b u s i n e s s , lo a n s o r p u b lic r e la tio n s . 3. O fficers n o t c o n s u lte d o r a c q u a in te d w ith p o licie s. 4. N o p e n s io n sy ste m , b u t g ro u p in s u r a n c e . 5. D ire c to rs a n d officers do n o t a c tiv e ly s u p p o r t civ ic a ffa irs . 6. B a n k does n o t c o o p e ra te w ith o th e r b a n k s in to w n . 7. S u p p o r t b u t do n o t ta k e a n a c tiv e i n t e r e s t in b a n k in g a s s o c ia tio n g ro u p s . 1. P o lic ie s d e te r m in e d b y th e p r e s id e n t o r c h ie f e x e c u tiv e offi c e r w ith o u t c o n s u lta tio n w ith o th e rs . 2. O fficers n o t a c q u a in te d w ith th e p o lic ie s o r p r a c tic e s o f th e b a n k as to lo a n s , n e w b u s in e s s , in v e s tm e n ts . 3. N o p e n s io n s y s te m , n o v a c a tio n p o licy , n o g r o u p in s u r a n c e . 4. D oes n o t c o o p e ra te w ith a n y b a n k o r g r o u p . P O L IC I E S 1. P o lic ie s a n d m e th o d s o f o p e ra tio n s f o r m u la te d b y officers b a s e d on c o m p le te k n o w le d g e o f c o m m u n ity n ee d s, re q u ir e m e n ts a n d th e q u a lific a tio n a n d a b ility o f officers a n d k e y em p lo y es a n d s u b m itte d to d ire c to rs f o r c ritic is m a n d d ec isio n . 2. D e fin ite p o lic ie s e s ta b lis h e d a s to ty p e o f b u s in e s s d e s ire d a n d m e th o d s o f h a n d lin g p r e s e n t b u s in e s s , in v e s tm e n ts a n d lo a n s. 3. S ta ff th o ro u g h ly a c q u a in te d w ith p o lic ie s. 4. B a n k h a s p e n s io n sy ste m , g r a n t s v a c a tio n s w ith p a y a n d co v e rs p e rs o n n e l w ith g ro u p in s u ra n c e . 5. D ire c to rs a n d officers a c tiv e ly c o o p e ra te in civ ic a ffa irs . 6. B a n k c o o p e ra te s w ith o th e r b a n k s in to w n a n d s u p p o r ts a c tiv itie s o f b a n k in g a s s o c ia tio n g ro u p s . 1. I n v e s tm e n t p r o g r a m b a s e d on a c c u r a te a n a ly s is o f d e p o s it tr e n d s a n d s e a s o n a l re q u ire m e n ts . 2. In v e s tm e n ts s ele cted , b a s e d on th e m a k e u p of d e p o sits w ith o u t p r i m a ry c o n c e rn a s to r e t u r n . 3. M a tu r ity o f b o n d s s p a c e d so t h a t a d e fin ite p e r c e n t o f s e c u r itie s m a tu r e e a c h y e a r. 4. P r o p e r c o n s id e ra tio n in th e in v e s tm e n t p r o g r a m f o r te m p o r a r y m oney. 5. I n v e s tm e n ts r e s tr i c te d as to n u m b e r o f issu e s, d e p e n d in g on siz e o f b a n k , to a llo w m o re c o m p le te a n a ly s is a n d fo llo w in g . 1. I n v e s tm e n t p r o g r a m b a se d o n g u e ss w o rk o r th e k n o w le d g e o f o n e officer. N o d e fin ite p r o g r a m . 2. S e le c tio n o f in v e s tm e n ts d e p e n d in g o n r a t in g s a n d y ield . 3. N o d e fin ite p r o g r a m a b o u t s p a c in g m a tu r itie s . 4. P r o p e r c o n s id e ra tio n n o t g iv e n in in v e s tm e n t p r o g r a m f o r te m p o r a r y m o n ey . 1. N o in v e s tm e n t p r o g r a m . 2. T y p e a n d k in d o f in v e s tm e n t d e p e n d e n t o n r a te s , a d v ic e of in v e s tm e n t h o u s e o r p e r s u a s iv e n e s s o f in v e s tm e n t s o lic ito rs . 3. N o th o u g h t g iv e n to p r o p e r s p a c in g o f m a tu r itie s . 4. I n c r e a s e s in d e p o s its, b e c a u se o f t h e a b s e n c e o f d e p o s it a n a ly s is , r e m a in u n in v e s te d . 5. I n v e s tm e n t p o r tf o lio c lu tte r e d u p w ith s m a ll in v e s tm e n ts in to o m a n y issu e s. 1. E q u ip m e n t f a i r ly m o d e rn . O n ly r e p la c e d w h e n b ey o n d r e p a i r a n d th e n o n ly as a u n it. 2. S u p e rv is io n o f d e p a rtm e n ts a n d d iv isio n s f a i r . 3. W o rk w ell p la n n e d , b u t f u ll a d v a n ta g e n o t t a k e n o f p e a k a n d v a lle y v o lu m e. S p e c ia liz e d m a c h in e r y n o t u s e d to f u lle s t c a p a c ity . 4. W o rk d u p lic a te d . Too m u c h a t te n t io n p a id to in c o n s e q u e n t i a l d e ta il. 5. N o a t te n t io n p a id to re v isio n o f f o rm s o r c h a n g e s in m e th ods a n d p ro c e d u re s to p e r m it w o rk efficiency. 6. D e p a r tm e n ts a n d d iv isio n s n o t c o n v e n ie n tly lo c a te d . 7. W o rk sp a c e p o o rly lig h te d . B a n k d e s ig n e d f o r lo o k s, n o t efficiency. 8. L i ttl e th o u g h t g iv e n to em p lo y e w e lfa re . 1. E q u ip m e n t o ld a n d o b so lete, r e s u lt in g in h ig h u n i t co sts. 2. G e n e ra l s u p e r v is io n o f d e p a r tm e n ts a n d d iv isio n s m a d e b y t h e c h ie f o p e r a t in g officer o n ly . A o n e -m a n b a n k . 3. W o rk s c h e d u le s n o t p la n n e d t o d ev elo p efficien t m e th o d s . N o s p e c ia liz e d m a c h in e r y u sed . 4. D u p lic a tio n o f w o r k . U n n e c e s s a r y p r a c tic e s . 5. M u ltitu d e o f f o r m s u sed . N o a t te m p t m a d e to c o m b in e o r s im p lif y to u s e f o r m o r e t h a n o n e se rv ic e . 6. N o t h o u g h t g iv e n to lo c a tio n o f d e p a r tm e n ts a n d d iv isio n s to o b ta in m o re efficien t o p e r a tio n s . 7. P o o r li g h tin g th r o u g h o u t b a n k . 8. N o th o u g h t g iv e n to e m p lo y e w e lf a r e . INDEX INVESTMENTS O P ERA TIO N S 1. U se o f m o d e rn a n d u p - to - d a te m a c h in e ry a n d e q u ip m e n t. B u d g e t a r y p ro v is io n s f o r p e rio d ic a l re p la c e m e n ts . 2. S u p e rv is io n o f d e p a rtm e n ts a n d d iv isio n s good. 3. W o rk w e ll p la n n e d a n d sch ed u led a n d s p e c ia l m a c h in e ry , u tiliz e d to fu lle s t e x te n t o f c a p a c ity , e m p lo y ed to o b ta in in c re a s e d efficiency. 4. D u p lic a tio n o f w o rk a n d d e ta il h e ld to a m in im u m . 5. F o rm s a n d sy ste m s p e rio d ic a lly re v ise d a n d m o d e rn iz e d . 6. O p e r a tin g d iv isio n s lo c a te d to g iv e m a x im u m o f efficiency. 7. W o rk s p a c e is p r o p e r ly v e n tila te d a n d lig h te d , a n d p ro c e d u re s s e t u p to e ffec t th e m in im u m o f f a tig u e . 8. S u fficien t r e s t ro o m s c o n v e n ie n tly lo c a te d . 9. L u n c h ro o m a n d f ir s t a id s ta t io n w ith n u r s e in a tte n d a n c e a v a il a b le f o r em ployes. BUDG ETA RY CONTROLS 1. D e p a rtm e n ts a n d d iv isio n s o p e r a te on a b u d g e t. E x p e n se s m i n i m ized in to c la s sific a tio n s . 2. C h ie f e x e c u tiv e fu rn is h e d r e p o r ts a t p r o p e r in te r v a ls o n v o lu m e a n d p e rfo rm a n c e o f a ll d e p a rtm e n ts a n d d iv isio n s w h ic h sh o w v a r i a tio n b e tw e e n b u d g e ta r y a n d a c tu a l e x p e n se s. 3. A d e q u a te p ro v is io n s m a d e f o r d e p re c ia tio n , r e s e rv e s a n d ta x e s . 4. M a n a g e m e n t h a s d e fin ite k n o w le d g e o f th e effec t o f in c re a s e s o r d e c re a se s in a c tiv ity . 5. A b so lu te c o n tro l o f e x p e n ses. 1. D e p a r tm e n t a n d d iv isio n re c o rd s o n ly sh o w ite m iz e d e x p e n s e s f o r th e c u r r e n t m o n th . 2. B u d g e t is fixed a n d does n o t p r o v id e f o r fle x ib ility in ca se o f in c re a s e s o r d e c re a s e s in v o lu m e. 3. P ro v is io n n o t a d e q u a te in th e b u d g e t f o r p r o p e r r e s e rv e s a n d d e p re c ia tio n . 4. N o c e n tr a liz e d c o n tro l o f e x p e n se s. 1. N o c o n c e p t o f th e u s e o f s c ie n tific c o n tr o l o f e x p e n se s. 2. M a n a g e m e n t n o t s u ffic ie n tly a c q u a in te d w ith e x p e n se s a n d in c o m e o f th e b a n k to p la n a h e a d . 3. N o k n o w le d g e o f th e effe c t o n co s ts o f in c re a s e s o r d e c re a s e s o f th e v o lu m e o f a c tiv ity . 4. D e p r e c ia tio n , i f t a k e n o n f u r n i t u r e a n d fix tu r e s , b u ild in g a n d e q u ip m e n t, is in a d e q u a te . 5. R e s e rv e f o r c o n tin g e n c ie s o r lo sses n o t b a s e d o n f a c t u a l o r r is k e x p e rie n c e . 1. E x p e n se s o f th e b a n k a llo c a te d o n ly to d e p a r tm e n ts a n d d iv isio n s w h ic h a r e n o t classified a s to f u n c tio n s a n d w ith o u t s u m m a r iz in g d o lla rs a n d c e n ts e x p e n se s f o r la b o r, o v e r h e a d , m e th o d s, m a n a g e m e n t a n d p ro m o tio n a l. 2. N o c o n n e c tio n b e tw e e n c o n tr o l re c o rd s a n d s ta n d a r d co sts o r p ro v is io n f o r a d e q u a te re s e rv e s . 3. S y ste m does n o t re fle c t c h a n g e s in ite m c o s t b r o u g h t a b o u t th r o u g h in c re a s e s o r d e c re a s e s in v o lu m e o r in d ic a te th e o p p o r tu n ity f o r im p ro v in g m e th o d s o f o p e ra tio n . 4. C o st s y ste m in o p e r a tiv e as a n im p o r ta n t a d j u n c t to m a n a g e m e n t. 5. S e rv ic e c h a rg e s ch ed u les a n d a c c o u n t a n a ly s is m e th o d s in u ce a d o p te d fr o m th o s e in u s e b y o th e r b a n k s a n d do n o t re fle c t th e a c tu a l s itu a tio n o r g iv e p r o p e r c o n s id e r a tio n to a ll in c o m e f a c to r s . 1. M o n th ly r e p o r t s o n ly r e fle c t e x p e n se s o f b a n k a s a u n it. 2. M a n a g e m e n t is n o t a c q u a in te d w ith th e v o lu m e o f a c tiv ity e ith e r o n a d a ily , w e e k ly , m o n th ly o r y e a rly b a s is o r k n o w s c o s t f o r p e r f o r m i n g s e rv ic e s. 3. S e rv ic e c h a rg e s c h e d u le s a n d a c c o u n t a n a ly s is m e th o d s in u s e w e r e a d o p te d f r o m a p la n u se d b y a n o th e r b a n k w h ic h in t u r n w e re a d o p te d f r o m a p la n u s e d b y y e t a n o t h e r b a n k . COST SYSTEMS 1. A ll e x p e n se s o f th e b a n k c o rre c tly a llo c a te d to d e p a r tm e n ts a n d d iv isio n s, classified as to f u n c tio n s , a n d c o r r e c tly s p r e a d so a s to p e rio d ic a lly re fle c t th e d o lla r a n d c e n ts d iv isio n a l e x p e n se s f o r la b o r, o v e rh e a d , m a in te n a n c e , m a n a g e m e n t, d e p re c ia tio n a n d p r o m o tio n a l, etc. 2. A ll c o n tro l re c o rd s ti e u p w ith s ta n d a r d co s ts u n d e r d ir e c tio n o f a c c o u n tin g d iv isio n a n d m a k e p ro v is io n f o r a d e q u a te re s e rv e s . 3. C o st s y ste m so c o m p le te so as to n o t o n ly re fle c t a c tu a l co st, b u t p o ssib le m in im u m co sts. 4. C ost s y ste m p ro v id e s f o r th e c o m p le te u tiliz a tio n of m e n , m a te r i a l a n d m e th o d s, a n d re fle c ts p e rio d ic a l v o lu m e o f a c tiv ity , so as to p e r m it p r o p e r a n d ec o n o m ic a l a llo c a tio n o f la b o r. 5. C ost sy ste m is u se d a s th e im p o r ta n t f a c t o r in p la n n in g , n e w b u s i n e ss a n d a d v e rtis in g . 6. S e rv ic e c h a rg e sch ed u les a n d a c c o u n t a n a ly s is m e th o d s a r e b a se d on a c tu a l co sts f o r p e r f o r m in g s e rv ic e s p lu s a n e q u ita b le s h a r e o f g e n e ra l o v e rh e a d a n d p ro fits. P r o p e r c o n s id e r a tio n is g iv e n to a ll in c o m e f a c to r s su c h as ta x e s , in v e s tm e n t a n d lo a n in g co sts. 7. C ost s y ste m a n d its c o n n e c tio n w ith s e rv ic e c h a r g e s ch ed u les a n d a c c o u n t a n a ly s is m e th o d s reflects c o m p e te n c y of m a n a g e m e n t. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis This chart has been prepared and is being distributed by Marshall Corns and Company, Inc., managem ent engineers and consultants of Chicago. Space here per mits the listin g of but six headings under the “ Index” column. In the complete chart there are thirteen items of managem ent operation listed. 19 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern B anker D ecem ber 1943 20 You Loan T o d ay-C o llect TOftiOtfOW A W ord of Caution Not to Let Mounting Deposits Lead Into the Path of Hazardous Loaning ANKS first cam e into being be cause th e y w ere needed in R evolu tio n a ry tim es to finance new governm ents. The first b ank of w hich we have an y record, th e B ank of Venice, established in 1171, grew out of th e financial necessities of th e Repuoij.c of Venice, and financed th e borrow ings of th a t governm ent. The B ank of Genoa, in 1320, and th e B ank of A m sterdam , in 1609, had sim ilar origins. P e rh a p s the m ain purpose of th e creation of th e natio n al b a n k ing system in 1863 w as to finance th e w ar betw een th e states, and set up a national currency. All com m ercial banks, and th e th e n new ly created F ed eral R eserve Sys tem , helped to finance our p articip a tion in W orld W ar No. 1, and th e enorm ous job of financing W orld W ar No. 2, co nfronts us now. T he w ar is today recognized by m ost people as th e principal business of our country. B ankers are carry in g a heavy load in th e W ar L oan Cam paign, and doing an excellent job of it, and I w a n t to com m end you for it. You b an k ers are co n trib u tin g m ore to w ard th e w ar effort in tim e and energy th a n any o th er class of business. W hen th e w ar is won, and we are going to w in—th e tide has already tu rn e d —we w ill th e n face a difficult ieco n stru ctio n period. T h ere is going to be a m ig h ty stru g g le in th e p o st w ar era. W e w ill stan d in th e ru in s of a w ar-torn w orld in w hich a large p a rt of th e h u m an race w ill be s ta rv ing and suffering w ith o u t an y m eans to feed and clothe them selves, and w ith o u t a p ro p erly organized gov ern m ent. H ow ever, we m u st recognize th a t every com m unity, and every indi vidual, in th is g re a t land of ours, w ill be affected econom ically and financial ly by th e w a r in w hich we are now engaged. T here w ill be a period of severe, sw eeping re a d ju stm e n t w hen th e w ar is over. A good m any of you b an k ers should have a vivid recollection of th e eco nom ic and financial read ju stm en ts w hich follow ed th e first W orld W ar. We are faced w ith a new set of cir cum stances today w hich is a challenge to our foresight and ability. J u s t as a bridge engineer m u st know th e load to be carried, so m u st th e banker, B N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 19^3 By Erling Haugo Superintendent of Banks Pierre, South Dakota b an k exam iner, and ban k supervisor, an ticipate in advance th e needs to be m et by th e banks, and every w eak ness in every b ank m ust be corrected. The h isto ry of banking in our coun tr y has tak en us th ro u g h various ex p erim ental stages, including the period of so-called “Wild-Cat B ank ing,” w hen banks w ere opened one day, and closed alm ost th e next. The various abuses and losses in ban k ing b ro u g h t on governm ental b an k supervision. As m any of you b an k ers know , original bank su p er vision consisted m ainly of a few m oderate reg u lato ry laws. In th e be ginning, supervisory officials req u ired only rep o rts from th e banks u n d er th e ir jurisdiction. L ater th ey acquired b an k exam iners w ho came into your bank, counted th e cash, glanced at th e daily statem ent, and th e n w ent fish ing, dining and w ining, w ith the cashier. Supervisor Responsible The task of a b ank su p ervisor has not changed since th e beginning of b an k supervision. We are charged w ith th e responsibility of protecting b an k depositors or creditors from loss of th e ir funds. B ankers and bank supervisors have ju s t reason to be proud of th e im provem ent, w hich has tak en place in th e b anks and banking system d uring th e p ast few years. The situation today stands in m arked co n trast to th e confusion of a few years back. The asset position of our state banks today is stro n g er th a n at any tim e in our h istory. T he bank§ originally organized and in existence at th e end of th e R evolutionary W ar w ere cap italized solely by th e pledge of real estate. Today banks are capitalized not only w ith cash, b u t are req uired to have a su rp lu s account, and build up undivided profits and reserve ac counts as a cushion ag ain st losses. In v estm en ts in real estate and other fixed assets, are held to a m inim um . In th e p ast five y ears in v estm en ts in fixed assets have been reduced from about 25 p er cent of total capital ac count, to 10 per cent. Today a definite ro u tin e for ban k exam ination has been established, and th e ex am in er’s m ost im p o rtan t duty is to m ake an ap praisal of all of the b a n k ’s assets to establish solvency. H ere is w h ere we come to the y ard stick. Y ardsticks also have a history, and before th e G erm an horde took pos session of P aris, and its a rt and historical treasu res, th ere w as a close ly guarded b ar of p latin u m reposing in one of th e g overnm ent buildings, w hich w as m ade in 1799, and estab lished th e exact length of th e m eter. D uring all these y ears th is piece of m etal has n ever been sh ortened or lengthened. S upervising agencies have recog nized th a t th e y ard stick for certain types of in v estm en ts of banks cannot change over n ig h t w ith th e fluctuation of the m arket, and have m ore and m ore applied th e old adage th a t w h at goes up m u st come down. It is n a tu ra l for us to become pes sim istic du rin g a depression, and optim istic du rin g a boom, w hen a rev erse of our attitu d e w ould help to stabilize conditions. I read a le tte r w ritte n by a farm er custom er to his banker, w ho inform s me th a t he retriev es this le tte r from his files and re-reads it w henever he becom es too optim istic. “October 17, 1932 “Dear Mr. B anker: “Your letter of the 14th received on Saturday and I hasten to reply. On account of p resent conditidns, I cannot do as you dem and. B u t I w ill offer to pay you in terest in the sam e propor tion as I am being paid for m y labors and w h a t I produce. I have som e steer calves fo r sale at $30 to $40 each, I am offered $8 to $10 each. I have som e grain to sell at 80c to 90c per bushel. I am offered 4c to 8c per bu. According to that, I w ill offer you three or fo u r dollars as equal pa y m e n t of the in terest I owe you on that $200 note. I f the bank exam iner don’t like it, tell h im to exam ine the prices w e are offered fo r w h a t w e produce compared w ith the price of m anufac tured produce. “I feel certain that you are calculat ing to foreclose the m ortgage right 21 aw ay, regardless of w h e th e r I pay you the in te re st as yo u ask or not. N ow ain t th a t a fa ir and honest offer? Yours tru ly,” Now th is fa rm e r w as applying th e prin cip al of sh o rten in g th e yardstick, and I am su re w e a re n ’t in favor of th at. If we did n o t have to contend w ith fluctu atin g m a rk e ts th e b an k in g b u si ness as w ell as m ost o th e r businesses, w ould be com paratively sim ple. W hen you m ake a loan today, you are m ak ing it on to m o rro w ’s m ark et. W hy gam ble on th e fu tu re? You as a leader in y o u r com m unity, w ill be doing th a t com m unity a service by m ain tain in g a conservative, u niform yard stick , and in th a t w ay keep criticized loans from y o u r note pouch. The custom er w ho expands his b u si ness d u rin g th e boom period, and in creases his debt in proportion, w ill be rig h t back w h ere he sta rte d w hen th e tide tu rn s. B ut th a t custom er w ho holds his business, an d scales dow n his debt d u rin g inflationary periods, w ill be in a position to ask y o u r aid and be m aterially benefited by such aid, if a depression follows. Capital Ratio W ith th e rap id rise of deposits in ban k s th e re has been a lot of talk about capital ratio. The N ational B ank D ep artm en t and th e F ed eral D eposit In su ran ce C orporation have for y ears used th e y ard stick of 10 to 1 of capital account to deposits. C apital in th e ir language m eans to tal capital account, including capital, surplus, u n divided profits an d reserve. Our state law, recen tly am ended, provides a capital ratio of 15 to 1, b u t includes only capital and surplus, to deposits afte r direct G overnm ent obligations, cash, and due from banks, have been deducted. T his m ig h t be co n stru ed by som e as changing th e yard stick , b u t is recognized by leading b an k au th o rities as being only a change in its applica tion. Q uoting th e U. S. C om ptroller of C urrency, “T he office of th e Comp tro lle r of C urrency . . . tak es th e position th a t it is th e n a tu re and qu al ity of assets, ra th e r th a n an y fixed ratio w hich determ in es th e adequacy of p rotection afforded by th e capital stru c tu re .” U nder th e p re se n t inflation, and we m u st recognize th a t we are in an in flationary period, w ith risin g deposits, banks are of course doubling and trip lin g in v estm en ts in U. S. bonds, both as a p atrio tic m easure, and as a source of rev en u e to replace decreas ing in v estm en ts in loans. S urely ban k s should not need capital reserv es to p ro tect such in v estm en ts in th e sam e p ro p o rtio n as in in v estm en ts in loans to individuals, w hich are subject https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis to h azards of th e elem ents, crop con ditions, supply and dem and, and h u m an frailties. In closing let me leave a w ord of caution. In these fast m oving tim es, no one know s w h at tom orrow holds in store for us. F o r m ost of you, profits are good. Is it not p ru d en t u n d er p re se n t u n certain conditions to be contented w ith fair profits, w hich you can be reasonably su re of keep ing, ra th e r th a n to gam ble on the fu tu re by an all-out effort for high profits from loans w hich m ight be hazardous? T he safe course is to use th e unchanging yardstick. L abor Shortage Smith: “Did you h ear about Jones, th e banker? He has stolen $100,000 of the b a n k ’s funds and ru n aw ay w ith the h o telkeeper’s w ife.” Miller: “Good heavens! W ho w ill teach his Sunday School class?” M ark O ne Up A big-time insu ran ce agent w as en listing. “W ell,” said th e Sergeant, “I suppose you’re such a big shot y o u ’ll expect a com m ission?” “No,” th e agent replied. “I ’ll take a stra ig h t salary.” H e r e 's H o w W e F it In to T h e B anking P ictu re W e are experienced, exten sive and responsible operators of Field W arehouses. W e h a v e d evelop ed a proven m ethod of converting bor rowers' inventories, no matter w here located, into SOUND BANKING COLLATERAL. Without cost or obligation, ask our Iow a office about Field W arehousing service covering such inventories a s se e d corn and field seed s; shell, frozen and pow dered eg g s; w ool; so y b ean s; can n ed goods; w h o lesa le groceries; and how Field W arehousing works to safeguard loan s . . . to increase profits for Banks. ST. PAUL TERM IN AL WAREHOUSE COMPANY St. Paul, Minn. --------------- IOW A OFFICE --------------510 Iowa-Des M oines N ational Bank Building D es M oines, Iowa T. C. CANNON, District M anager T elephone 4-2353 O th e r O ffices a t C h ic a g o - N e w Y o rk - M ilw a u k e e - D e tr o i t - M e m p h is - A tla n ta B o s to n - P h ila d e lp h i a - P i t t s b u r g h - S y r a c u s e - C h a r l o tte - A lb a n y , G a. N orthw estern Banker D ecem ber Í9b3 Visiting Along the Lake Brief News of Chicago and Milwaukee Banks By HENRY H. HAYNES, Editor HICAGO banks, along about No vem ber 15th, w ere w ondering about a n u m b er of things, th e principle one being w h a t reactio n w ould re su lt from th e charge-back of exchange, w hich on th a t date w en t into effect there. T he charge-back cam e as th e re su lt of a recen t ru lin g p u t in opera tion by th e F ed eral R eserve Board. As th is is w ritte n th e tre n d w as not in evidence, b u t it w as an ticip ated th e action w ould create little disturbance. T he a u th o rity of th e F ed eral R eserve to a rb itra rily m ake such a ru lin g w as questioned in som e q u arters, b u t it is n ot likely any te st cases w ill develop. C Men and w om en in th e arm ed forces from Chicago b anks are going to be w ell rem em bered th is y e a r as, of course, th e y alw ays are. Up to N ovem b er 1st th e F irs t N ational B ank of Chicago h ad 470 people in uniform , including eight W AVES and SPARS. T he N o rth e rn T ru s t has 185 m en and w om en in th e service; th e A m erican 93 Y E A R S N ational B ank and T ru st has 65; th e Live Stock N ational, 18, and th e D ro vers, 30. A t th e C ontinental Illinois N ational, w here th e A m erican Legion P ost of th e b an k sponsors all activities re la t ing to b ank em ployes in th e arm ed forces, th ere are 487 in th e service. T he C ontinental Illinois Legion Post sends these people gifts four tim es each year, and th is y ear as a C hristm as rem em brance, those in service are re ceiving a box packed w ith m any useful and e n tertain in g item s. As Ju liu s W aibel, publicity director of th e Con tin e n ta l says, included in th e box is som ething to smoke, som ething to eat, som ething to provide en tertain m en t, and som ething useful. Am ong the item s are playing cards, gum and candy, soap, cigarettes, a to o th b ru sh and toothpow der, an en terta in m e n t book, razor blades, and a cribbage board. The legionnaires and th e girls in th e b ank pack and m ail th e pack- OFPEACE AMD WAR AMD GROWTH T H ERE wasn’t much o f the pres ent U . S. A . mapped in geogra phies on November 20, 1850, when the first train steamed forth on what today is part o f The Milwaukee Road. The little five-mile line o f 1850 is now an 11,000-mile transcontinental railroad linking the industrial cities o f the east and middle west to the World ports o f the Pacific Northwest. Through wars and rumors o f wars, depressions and years o f great d e v e lo p m e n t the and prosperity, T h e M ilw aukee Road has written its share o f Amer ican history. Today all that our free America means is being challenged. And we o f The Milwaukee Road, in concert with the rest o f the nation, are helping to fling back that challenge. Our friends and patrons—both passengers and shippers— are co-oper ating to the limit. They, as well as we, know the urgency o f the situa tion and the importance o f the job we all have to do. Milwaukee Road O - M IL E N orth w estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 1943 SUPPLY LINE ages. Mr. W aibel also supervises pub lication of a m o nthly m agazine to serv ice folks called “C ontact,” w hich is full of nam es and letters from those in the service and new s about w h at is going on at th e hom e fro n t in th e bank. The A m erican N ational of Chicago th is y ear is gettin g out a large folder of C hristm as cards to each individual now in th e service form erly employed in th e bank. W hen opened out the “card ” w ill be several feet square and carry p ictu res of b ank em ployes and in terio r view s of th e bank. Jam es H. Clarke, a ssistan t vice p res ident of th e A m erican N ational, spent a w eek in New Y ork City last m onth, calling on banks and investm ent houses. Am ong o thers in N ew York City he visited w ith w as M arcus Nadler, econom ist for th e C entral H anover N ational Bank. Mr. N adler expects to be in Chicago in Jan u ary . T alking to A lden S. Bagnall, vice p resid en t of the Live Stock N ational Bank, he said th a t som eone in his ban k is co nstantly w ritin g letters and send ing gifts to those in th e service. W hen th e w ar is over these people w ill come back to th e ir jobs in th e bank, and probably to b e tte r jobs, Mr. Bagnall feels, since m any of them w ill be b etter able to accept increased responsibility. At th e Live Stock N ational, w hen I called there, w ere P ercy Ebbott, vice p resid en t of th e Chase N ational B ank in New Y ork City, and L ouis Jacoby, C h a s e rep resen tativ e in Chicago. M essrs. E b b o tt and Jacoby w ere v isit ing w ith D avid R eim ers, presid en t of the Live Stock N ational, and others in th e bank. F ran k Covert, a ssistan t cashier of the D rovers N ational Bank, is still active in OCD, and also as a new o ut let for his civic activities, he is now a d irector and tre a su re r of th e U niver sity of Chicago S ettlem ent House, w hich is located a sh o rt distance from th e bank. A personally conducted Co v e rt to u r th ro u g h the settlem ent house disclosed th e m any advantages the y o u n gsters derive from having access to recreation and study w hich such an in stitu tio n affords. The settlem ent house also sponsors a sum m er cam p for boys, located in In d ian a n ot far from Chicago. E leven dollars w ill keep a boy in th is cam p for a w eek, and F ra n k says w hen one sees th e im provem ent in ch aracter resu ltin g from ju st a sh o rt stay a t th e camp, th e in vestm en t is alm ost equal to th e p u r chase of a W ar Bond. The officers of th e D rovers N ational hear from Fred C um m ins occasionally. F red is a radio operator in th e sub- 23 m arin e service and so fa r h as been statio n ed off th e east coast. An Iow a fa rm e r in a big w ay is C. R ay P h illip s, p resid en t of th e LaSalle N ational Bank. Mr. P h illip s ow ns 700 acres of some of th e b est farm land in D allas county, and anyone fam iliar w ith Iow a know s w h a t D allas county soil is like. H e m akes periodic v isits to his farm and says th a t som e day he m ay come to Iow a to m ake his p erm a n e n t home. A ccording to H erm an Slocum , p e r sonnel officer of th e H a rris T ru st Com pany, th is b an k has a to tal of 136 m en and w om en in th e service. A t th e tim e of P earl H arb o r th e b an k em ployed 383 m en and 356 w om en. Now th e b ank em ploys 296 m en and 433 w om en, a de crease of 87 m en and an in crease of 76 w om en. The H a rris T ru s t sends its b an k bu lletin to th e service people each w eek, everyone of th em receives T he R eaders D igest reg u larly and, of course, a package a t C hristm as tim e. C harles A. Carey, a ssista n t cashier a t th e H a rris T ru st, is a dog fancier and raises Boxers. He recen tly sen t a B oxer pup to an arm y officer frien d of his statio n ed at Moline, Illinois. Out of 915 em ployes th e F irs t W is consin N ational B ank, M ilw aukee, has 115 people in service. T his y e a r each of those in th e arm ed forces w ill re ceive an in dividually im p rin ted C h rist m as card, in w hich th e y w ill find an o rd er for m oney, th e o rd er being easily cashable a t an y po in t on th e globe. T he a n n u a l F irs t W isconsin C h rist m as p a rty w ill be held th is y e a r on D ecem ber 23rd and w ill h o n o r th e m em bers of th e Q u arter C en tu ry Club, p a rtic u la rly those a tta in in g th a t dis tin ctio n th is year. T h ere are 117 p re s e n t m em bers—29 new m em bers w ill be inducted D ecem ber 23rd, m aking th e to tal 146. Don H arper, a ssista n t cash ier of th e F irs t W isconsin, says it w ill be a few m ore y ears u n til he w ill be a m em ber of th e Q u arter C entury Club. Opens Iowa Office T he F a rm e rs N ational C om pany of Omaha, N ebraska, farm m an agem ent organization, has opened an Iow a office in Des Moines, w ith J. W esley G raham of F o rt Dodge, Iow a, as m anager. J. Carl R ush, w ho m anaged farm s for th e E q u itab le Life In su ran ce Com pany of Iow a eig h t years, is field su p erv iso r in th e Des M oines te rrito ry . G raham form erly m anaged th e com pany’s F o rt Dodge office. T he F a rm e rs N ational w as founded in 1929 by C ornelius J. Claassen. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis **Twice the Work with Fewer People” It’s alm ost a universal condition am ong banks today— to have to carry a heavier load of activity than ever, with a reduced staff. In spite of this handicap, the banks of the Nation are con tin u in g to carry on beyond w hat has been expected of them in the past. Notable am ong these is “3-1” . ...T H E ... PH ILAD ELPH IA NATIONAL BANK ORGANIZED 1803 PHILADELPHIA, PA. Resources over $750,000,000 M E M B E R O F F E D E R A L D E P O S IT IN S U R A N C E C O R PO R A T IO N N orthw estern Banker D ecem ber Í9b3 24 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis How W e Collect Premiums Local Agents Describe the O F IN D out w h a t collection m e th ods local agents are u sing to th e b est advan tag e th ese days, we have recen tly com pleted a survey am ong a n u m b er of p ro m in en t u n d e r w riters. W e asked th em w h a t m e th ods th e y em ployed to b rin g th e p re m ium p ay m en t into th e ir office, m entio n in g th a t w e presum ed th ey used collection le tte rs of some kind, and asked th em to send us a sam ple or tw o of such letters. W e w ere som ew hat su rp rise d to learn from th e replies to o u r survey, th a t collection le tte rs are not being used at all—as one ag en t p u ts it, “W e find th a t shoe leath e r and rin g in g doorbells is th e only w ay ”—so you h ad b e tte r save up y o u r shoe ra tio n stam ps. A n u m b er of replies state th a t col lections are co m paratively easy now, probably because m ore people are w ork in g a t increased incom es. H ere is w h a t local agents have to say about collections: T "W e Have No Letters" EARL R. WILSON Lincoln, Nebraska “W e sim ply d o n ’t have an y form of collection le tte rs and n ev er have had. W hen a collection le tte r is necessary, w hich is seldom, w e m ake it v ery in d i vidual and personal and, if possible, w e w rite no le tte r a t all, b u t sim ply contact th e individual. As a m a tte r of fact, o u r cred it loss over a 20-year period has been less th a n one-tenth of 1 p er cent.” "Collections 100 Per Cent" HARRY P. PRATT G randy-Pratt Company Sioux C it y, Iowa “F o r th e last tw o y ears our collec tions have been alm ost 100 p er cent. W hen any of our custom ers get behind over th ir ty days, we p u t on th e ir Methods They Use to Bring in Delinquent Accounts m o n th ly statem en t th a t th e bill w ill have to be paid im m ediately, to com ply w ith governm ent regulations. W h eth er or not we come u n d er these regulations, I am not positive, b u t peo ple are g etting to th e point w here th ey are paying th eir bills, and in su r ance prem ium s are no exception.” “W e do n ot use collection letters. I am still old-fashioned enough to be lieve th a t th e m oney can be collected in by th e salesm en producing the business, and th a t shoe leath er and bell rin ging is about th e only w ay to pull in delinquent accounts. As a result, I am v ery happy we have had few collection problem s.” w hen and how th e prem ium s are to be paid. T his agreem ent, preceding de livery of th e renew al, w orks out except in a sm all p er cent of the cases. In cases w here th e prem ium s become delinquent, we in terv iew th e custom er personally and, in some cases, p refer to have a sm all charge account against such custom ers so th a t th ey know th ey w ill be on a cash basis before any m ore policies are issued to them , th a t is, w here th ey are chronic de linquents. “Our o th er collections are handled usually w ith ju st a re tu rn envelope on the flap of w hich is listed th e am ount due and a req u est for paym ent. We secure th is re tu rn envelope and in corporated form al m essage from one of our com panies and it m ay be copy rig h ted or at least one of th e ir own ideas.” "Collect on Foot" "All Situations Are Different" "Few Collection Problems" C. F. LISCOMB Charles F. Liscomb Company Duluth, Minnesota LEON E. MORSE IVAN H. ANTON M c C a r g a r - M o r s e Company Council Bluffs, Iowa Ivan H. Anton Agency Des Moines, Iowa “I do not have any p artic u la r collec tio n letters w hich w ould be w o rth p ublishing from th e stan d p o in t of th e ir value to others. Most of m y col lecting is done by foot ra th e r th an by mail, and we have never m ade it a p ractice to use any certain form of collection le tte r.” “W e have tried every type of collec tion le tte r and have yet to find any one form or any one th o u g h t th a t w orks in m ost cases. Our experience has been th a t all situations are different and we find very few principles th a t w ill apply in even a m ajo rity of the cases.” "Interview the Customer Personally" "It Takes Shoe Leather" ALEX H. CASE Cow to n Insurance Agency G ran d Island, Nebraska C a s e & Son Marion, Kansas “T his is one problem w hich we have nev er solved in a satisfactory m anner, and one w hich I am alm ost inclined to believe defies solution in a sm all tow n. “H ow ever, w e have th e advantage in a sm all tow n of soliciting th e ren ew al of th e in surance personally and a rriv e at a definite agreem ent as to GEORGE COWTON “I have, as yet, to find a series of collection letters th a t do th e job. I find it takes shoe leath er and personal calls to get in th e collections now a days. “E ven w ith m oney plentiful in these tow ns w here governm ent projects are located, people seem indifferent to let ters of any kind.” S carborough ^(C ompany First N ational Bank Building, Chicago https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Horace A. Smith, Iow a Representative Des Moines, Iow a N orthw estern Banker D ecem ber 1943 26 "Personal Contact" JOSEPH BARKER, JR. Fos ter- Barker Company Omaha, Nebraska “In th is office persisten ce and polite ness have been th e keynote of our collecting. W e have alw ays been v ery polite, b u t v ery p ersisten t, and seem ed Experience Service Cooperation Manned by officials with years of. experience, our Correspon dent Bank Division renders a complete service, conducted in an intimate and personalized manner. The guiding policy is one of cooperation in all matters of mutual interest. BANK a n d COM PANY OF After the W ar More A m ericans plan to buy a new autom obile w ith in th e first year after th e end of th e w ar th a n any o ther m ajor item; a new hom e is th e second m ost freq u en t purchase found on Mr. and Mrs. A m erica’s postw ar shopping list, it is show n by replies to an in q u iry m ade to 25,000 policyholder fam ilies of N o rth w estern N ational Life In su ran ce Company. A new radio ran k s th ird am ong post w ar purchases now planned, and an extensive trip, e ith er U. S. or foreign, is close behind, th e surv ey shows. E ag er anticipation of com ing im prov em ents and new “gadgets” de scribed in c u rre n t new spaper and m agazine articles and advertisem ents, w as disclosed by replies w hich listed such item s as hom e air conditioning, plastic k itchen equipm ent, and frozen food cabinets. A lm ost tw o-thirds of th e prospective postw ar hom e ow ners stated th e ir in tention to build, ra th e r th a n buy, suggesting a desire to in co rporate new ideas in construction and equipm ent. t r u s t NEW E S T A B L I S H E D I to get the m oney. W e do n o t have any form of collection le tte r w hich we use. A ny thing we w rite is ju st ro u tin e and m ost of it is done by personal con ta c t.” YORK 1908 Joins Employers Mutual E m ployers M utual C asualty Com p an y of Des Moines has announced th e ap p ointm ent of C. L eonard W il liam s as hom e office u n d erw riter. Mr. W illiam s has been an u n d e r w rite r for th e Des Moines b ran ch of Member: New York Clearing House Me Association, Federal Deposit Insurance Corporation X Resources of OVER TW O M IL L IO N D O LLARS T W E N T Y -F IV E YEARS Now dedicated to the Surety and Fidelity Bond needs of the M iddle W e st. S u re ty D ivision The State Automobile Insurance Association D ES N orthw estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MOINES, D ecem ber 19't3 (C ontinued from page 5) to n ig h t. W as m ig h ty im pressed w ith a few of th e choice pin-ups chosen by m y k h a k i b re th re n back th ere in the good old TJ. S. A. Guess th ey have m ore tim e fo r th a t so rt of th in g th a n we do over here. I t m ay even be in te re s tin g fo r us when we do get home. ‘ ‘ In c id e n ta lly , when people ask you w h at so rt o f a n outfit I am in, d o n ’t ju s t say A irs Corps, tell them th e 64th T ig h te r W ing. Y ou see, M other, I am m ig h ty proud of th is o rg an izatio n , an d know th a t when th e tim e comes, th e e n tire n a tio n w ill have good reason to feel as I. W e are new and we a re d ifferen t, b u t we are m ig h ty tough an d w h at we a re doing is im p o rta n t. Y our son has learn ed m uch, an d is bound to le a rn m ore b efo re i t is all over. I n th a t L ife I m entioned, no tice the a rtic le concerning C a n iff’s draw ings. I t is m ig h tly in te re s t ing. ‘ ‘ M other, I m ust close. T hanks to you an d D ad fo r keeping m e so well inform ed on th e news an d so re g u la rly . I tru s t th a t you are k eeping the home fires b u rn in g , an d saving one of those m eal tic k e ts special fo r me. I h a v e n ’t h ad a good piece o f steak since the one I w rote ab o u t b efo re we took over T unis. ’ ’ Y our loving son, W arren. Experience of OVER th e M assachusetts Bonding and In surance Com pany for th e last four teen years. P rio r to th a t he w as w ith th e F ederal S u rety Com pany for sev eral y ears in sim ilar w ork. Mr. W illiam s is a form er secretarytre a su re r of the C asualty and S urety Club and has been a resid en t of Des Moines for 20 years. IOWA "Minority Always Rules" “ Y our card re fe rrin g to page 57, N o vem ber issue of the B a n k er , is received an d a rtic le read . R eaction is th a t our old frie n d did a very good jo b — an d since I have consented to dive in am hop in g th a t our m em bership m ay decide it good business to m an th e Council w ith m en no ted fo r th eir a b ility to ‘ ta lk cold t u r k e y ’ even if in church. “ N o te d L ee W ig g in s ’ opening address in which he a sse rted th a t th e re would be m a jo rity rule b u t w ith p ro tec tio n fo r the m in o rity . A dvised him th a t he h a d p erhaps overlooked th e fa c t th a t th e M IN O R IT Y h a d alw ays governed, ru led an d m an ag ed the A. B. A. an d th a t th ey d id n ’t need a dam n b it of aid, assistance or p ro te c tio n ; b u t 27 w as h oping th a t he would reverse th e order, a helluva task , an d g e t som e sem blance of rule, re g u la tio n a n d m an a g em e n t b y th e ru ra l b an k ers who re p re se n ted n o t less th a n 75 p e r cent o f the dues p a y in g m em bers; a n d since only a very sm all p e r cent of the ru ra l b an k ers ever a tte n d e d A. B. A. con vention, th e likelihood w as th a t th e b ig tow n b a n k ers w ould continue in th e saddle. H ow ever, I believe th a t W ig g in s is sincere a n d if he d o e sn ’t accom plish a n y th in g , he w ill go dow n fig h tin g th e A. B. A. m achine. ‘ ‘ T here is no in te n t on m y p a r t as a D em ocrat to in a n y w ay t r y to influence you R ep u b lican s as to whom your nom inee should be fo r th e presidency. A nd, w ith th is pream ble, conclude th a t it w ill be sa fe fo r me to com m end your le tte r to M r. W illkie, fo r I, too, have long ago concluded th a t he is a courageous, sound th in k in g in d iv id u al a n d is not bein g led a b o u t w ith a rin g in his nose. So, of course you b ird s w ill n om inate whosoever you dam n please, b u t ju s t w ish you to know how fu lly I con cur in your ju d g m e n t as re g a rd s th e g e n tle m an. ’ ’ L eo J . W e g m a n , P resident, C itize n s S a v in g s B a n k, A namo sa, Iow a. "Bankers in Overalls" ‘ ‘ T hanks fo r th e p a g e ta k e n fro m th e N o r t h w e s t e r n B a n k e r of M ay, 1927. T h at w as a g re a t G roup M eeting w ith all o f the b a n k ers clad in overalls an d c a rry in g th e ir din n er p a ils to th e p la n t fo r lunch w ith th e w orkm en. I w as a h a rd w orker in those days b u t nevertheless th ey w ere in te re s t ing. ’ ’ M. E . E l l i s , S u p e rin te n d e n t, D ep a rtm e n t o f B a n kin g , D es M oines, Iow a. "Colonel W. G. Edens Gets Around" ‘ ‘ F ollow ing the A. B. A. m eetin g I hung a ro u n d th e W ald o rf-A sto ria u n til S a tu r day, the 18th, th e n spent th e w eekend a t th e home o f m y old frie n d , W ilb u r F o re st, associate ed ito r o f the H erald T ribune, on L o n g Isla n d . H e an d his w ife b o th h ail fro m P e o ria. M onday, th e 20th, some frie n d s gave a luncheon fo r me a t th e Cloud Club, 67th sto ry of th e C hrysler B uilding. T uesday I spent in W all S tre e t c allin g on b a n k e rs an d other acquaintances, p a u sin g fo r a m in u te a t th e grave of A lexander H a m ilto n in Old T rin ity C hurchyard. W ednesday, th e 22nd, I took th a t D. L. & W . R. R. fro m H oboken to B ingham ton, N . Y., to a tte n d th e 60th a n n iv e rsa ry of th e fo u n d a tio n of th e B. of R. T. The n e x t day I m otored up th ro u g h th e b e au tif u l Genesee V alley to B uffalo an d th en on to Cleveland. W hile th ere w ent out to old H ira m College w here Gen. G arfield g ra d u a te d , an d ta lk e d to th e fa c u lty an d stu d e n t body fo r a n hour. “ I w as so sorry to re ad o f th e passin g o f our frie n d , W . G. C. B agley o f M ason C ity— a fine g entlem an. I held him in high esteem . ’ ’ W . G. E d e n s , 1212 W est N o rth Shore, Chicago 26, Illin o is. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis DO W E O W E IT TO O U R SELV ES ? (C ontinued from page 12) case, th a t th is debt w ill have to be paid som ehow or o ther from the sw eat of th e brow. If our n ational incom e can be m aintained anyw here n ear the figure th a t now prevails, it w ill of course be m uch easier to accom plish th e paym ent of th e debt th a n it w ould be if we w en t back to national incom e of p rew ar days. A gain I say th a t y o u r question isn ’t ju st th a t easy to be an sw ered and books could be w rit ten concerning it.” A lvin Johnson, p resident of th e L ive Stock N ational B ank of Omaha, is th e donor. F irs t prize w as $50 cash and a trip to th e N ational Club Congress in Chi cago, all expenses paid. Second w in n er received $25 and an all-expense MERCHANTS MUTUAL BONDING COMPANY Incorporated 1933 SA V IN G S & LO A N A S AN INVESTMENT O U TLET (C ontinued from page 13) m entality, know n as th e F ed eral De posit In su ran ce Corporation. T his in su rance extends to all accounts of $5,000 or less. The accounts in th e in su red associations are insured for safety of principal by an o th er F ederal in stru m en tality , th e F ederal Savings and L o a n In su ran ce Corporation, w hich is ow ned 100 per cent by the F ed eral governm ent. All accounts up to $5,000 in these in su red associations are protected by th is insurance. S ure ly it m ay be said th a t we have tw o parallel b anking types. Home Office VA LLEY BA NK BUILDING Des Moines, Iowa 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. Donates 4-H Prizes W rite to A prize list of 22 aw ards to w inning N ebraska 4-H Beef Club m em bers w as announced recently at th e U niversity of N ebraska college of agriculture. E. H. WARNER Secretary and Manager T o O u r S co re s of BANKER AGENTS . . W e W ish Y ou . . . "A Christm as S ea so n Full of C ontent m ent a n d our m utual Prayer that "Perm anent P e a ce on Earth" m ay return soon to a W ar W ea ry w orld. ALLIED MU T U A L CASUALTY COMPANY Harold S. Evans, President Hubbell Building Des Moines, Iowa N orthw estern B anker D ecem ber 1943 28 club w eek trip to th e college of ag ri culture. E ach boy or g irl placing th ird to tw enty-second in th e state re ceived $5. L E G A L DEPARTMENT (C ontinued from page 16) agreem ent, th e n e x t day a fte r it w as repossessed. W ould Snow obtain good title as ag ain st D ickersback? Yes. A prom ise b y a conditional vendor, after la w fu lly rep ossessin g the property under th e p urch aser’s de fault, to hold it for a definite period to g iv e the ven d ee an opportunity to try to secure funds w ith w hich to m ake good the default, w ill not defeat the rights of a bona fide purchaser to the property acquired through a sale thereof by the vendor in vio la tio n of the prom ise. A N ebraska b an k er an d his w ife w ere co-owners of a farm in th a t state. T hey deeded it to one of th e ir children u n d e r a con tract w hich provided th a t th e g ran tee w ould m ake certain pay m ents to th e ir o th er children and gave th e o th er children th e rig h t to fore close in th e event th e paym ents w ere not m ade. A fter th e deed w as de livered and th e gift tran sactio n w as com pleted th e g ra n to rs and gran tee Federal Interm ediate Credit Bank C onsolidated D ebentures O ffer. ,. Desirable Short Maturities en tered into a supplem ental agreem ent cuttin g out th e rig h t of th e other chil dren to foreclose. T he o th er children did n ot e n te r into th e supplem ental agreem ent. W as it valid as to them ? No. The p rovision for th e paym ent by the gran tee of certain su m s to the gran tors’ other children and the se curity therefor becam e a com pleted gift in ter v iv o s as of the tim e of the deed in g of the property and the su bse q uent attem p t to m odify the g ift to the d isadvantage of the donees by an am endm ent execu ted by the original grantors and gran tee of the deed w as invalid. H ubbard, a L ouisiana banker, tu rn e d in his autom obile to a dealer in th a t state and received from th e dealer a credit to be used on dem and in th e p u rchase of a new car. A t the tim e H ub b ard w as leaving on an ex tended business trip and w anted to w ait u n til his re tu rn to tak e delivery of th e new autom obile. W hen H ub b ard got to th e p o in t th a t he w anted th e new car th e dealer w as unable to deliver because of rationing. The credit allow ance had been in excess of th e value of th e car. Should th e dealer pay H u b b ard cash in the am ount of th e credit? larly for subscription in denominations ranging No. In a recent d ecision in L ou isi ana it w as h eld that a credit to be ap plied on th e purchase of a n ew auto m obile from a dealer by a prospective purchaser, rep resen tin g in am ount the sum allow ed on a used car turned in by the latter, sh ould not be paid over in fu ll to the p urch aser w h en , due to g o vern m en t rationing, it becom es im possib le for him to buy a n ew car from the dealer, but rather, there should be paid over to the p rosp ective pur ch aser by the dealer, a sum of m oney rep resen tin g the actual valu e of such u sed car. from $5 ,0 0 0 to $100,000, due at convenient Special Meeting intervals up to one year. A special m eeting of th e stockhold ers of th e D rovers T ru st & Savings Bank, Chicago, has been called by th e directors for W ednesday, D ecem ber 22, 1943, to consider th e increase of th e capital stock of th e b ank from $350,000, consisting of 3,500 shares of p ar value of $100 each, to $500,000, consisting of 5,000 shares of p ar value of $100 each, by th e tra n sfe r of $150,000 from the su rp lu s of th e bank, and d istrib u te such increased capital stock by th e declaration of a stock dividend. P u rsu a n t to a reso lution by the board of directors, th e tra n sfe r books of th e D rovers T ru st & Savings B ank w ere closed a t th e close of business on N ovem ber 22nd, and are to rem ain closed u n til th e opening of business on Monday, D ecem ber 27, 1943. T hey affo rd a popular m edium through which institutional funds, earmarked for tem porary employment, may be invested securely at favorable term rates. These obligations of the twelve issuing banks are made available regu Debentures which mature w ith in six m on th s are accep tab le as collateral security for fifteen-day borrowings by member banks of the Federal Reserve System. THE FEDERAL INTERMEDIATE CREDIT BANKS Requests fo r other sa lien t inform ation respecting the above described issues sh o u ld be addressed to C H A R L E S R . D U N N , Fiscal A g e n t 31 N a s s a u S t r e e t N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 19^3 N e w Y o r k 5, N . Y. 29 Postwar Problems Every Banker Should Give Thought to Them, Because the Day Is Not Far Off When He Will Be Face to Face With Them The “peace scare” The Month's Market Maneuvers Prepared for The Northwestern Banker By Jam es H . C larke stocks, dropped precipitously on some j a m e s h . c l a r k e days as th e fear of cancellation of con tracts, or a t least slackened activity, th reaten ed . T he bond m ark et, espe cially in th e h ig h er grades, gave a fairly good account of itself, b u t in general N ovem ber w as a poor m o n th for investors. T he exception to th e tre n d —-which proved th e ru le —w as th e liquor secu rities w hich advanced sh arp ly on spectacu lar dividend new s. M ilita ry leaders w ere u n anim ous in disclaim ing any know ledge of a break up in G erm any, but rum ors of a con ference of Stalin, C hurchill and R oose velt, plus a ra th er o ptim istic sta te m e n t by L o rd H alifax, w ere enough to in flu ence in vesto rs in th e belief th a t w e are eith er near th e end of the E uropean war, or at least have passed the peak of our w a r effort. T his, despite the fact th a t th e progress of fighting in Ita ly has been e x tre m e ly slow, and th a t counter-attacks of th e G erm ans on the R u ssia n fro n t have been at least m oderately effective. A s w e near th e end of the year and look forw ard to 1944, it is apparent that to even th e m ost p essim istic a v c have m ade great progress in th e p ast 12 m onths in overcom in g G erm any. W e h ave at least reached a p oint n ow w h ere w e can see the end in sigh t, and w ith it, the b egin n in g of m any p ost w ar problem s. W ith th e en d o f th e w a r in E u r o p e th e s e p r o b le m s w ill b e p r e se n te d to th e in d u s tr y o f th e c o u n tr y , a n d to th e b a n k s as w e ll, eAren th o u g h th e Avar w ith J a p an c o n tin u e s fo r so m e tim e . T h e ty p e o f AA-ar w h ic h th e J a p a n e se fr o n t AA'ill r eq u ire d iffers in m a n y r e s p e c ts fro m th e o n e Ave are u o a v fig h t in g in E u r o p e , a n d th a t fa c to r in it s e lf AA'ill n e c e s s ita te a n u m b e r o f c h a n g e s. Some of those w ho have studied th e po stw ar problem s ra th e r thoroughly, and hav e h ad th e courage to p u t th e ir https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Assistant Vice President American National Bank & Trust Co. Chic ago th o u g h ts into p rin t, have expressed considerable confidence in th e period follow ing th e w ar, although in alm ost every case th ey have been reticen t about expressing a firm opinion on th e first six m onths to a y e a r in th e afterthe-w ar period. I t seem s likely th a t the Japanese w a r w ill n o t require as large a land arm y as w e w ill have in the spring of 1944, and this m a y m ean the release of three to five m illion m en w ho are now in the arm y. I t is also likely th a t such a w ar w ill n ot require the large hom e fro n t arm y w h ich w e have, and an equal n u m b er of m en can be released fro m in d u stry. Som e of these m en w ill be absorbed by increases in in d u s trial production for civilian use, but it is also possible th a t an u n em p lo ym en t problem w ill be presented w h ich w ill require go vern m en t projects in the w a y of public w o rks and the like. It is a p p a r e n t th a t d e sp ite le s s e n e d w a r a c tiv ity , th e g o v e r n m e n t AAill haA-e to c o n tin u e fin a n c in g a h u g e p u b lic d eb t, a n d th a t ta x e s Avill r e m a in h ig h . T h e p ro b lem o f r a is in g su c h ta x e s is c lo s e ly tie d in w ith a h ig h n a tio n a l in c o m e — w h ic h , o f co u r se , is o n ly p o s sib le if b u s in e s s a c tiv ity c o n tin u e s at a ra te m u ch h ig h e r th a n Ave e n jo y e d in a n y p erio d p r e c e d in g th e w a r. It is im possible in such sh o rt space to discuss th e p o stw ar problem s w hich we m ay face, b u t every b a n k e r should give considerable th o u g h t to th em as th e day m ay n o t be fa r off w hen he w ill be face to face w ith them . W e have already m entioned th e possibility of public w orks and unem ploym ent. T hese are b u t tw o of m any problem s. F o r instance, w h at w ill happen to th e large productive capacity th a t has been b u ilt up w ith g overnm ent money? W h at about th e high w ages w hich th e unions have been able to establish— w ill such w ages stan d up w h en th ere is unem ploym ent and com petition for jobs? W h at w ill happen w hen th e gov ern m en t sta rts unloading its large in ventories acquired for w ar purposes, b u t not used? W h at w ill happen to in te re st rates follow ing th e w ar, w hen both th e governm ent and p riv ate in d u stry are com peting for capital? The recen t elections have show n some tre n d aw ay from th e p resen t p a rty in power. W h at changes w ill th e R epub lican p a rty m ake if it is successful n ex t year? W ill we have inflation fol low ing th e w ar w hen restrictio n s on prices are rem oved? Or, on th e other hand, w ill th e unem ploym ent w hich resu lts b rin g about a deflation? These and o th er questions too num erous to m ention face every b an k er in th is country, and th e ir solution is n ot easy. W e recom m end th em to you, how ever, for yo u r consideration. In bringing to a close this year-end article, w e are in serting this personal note. E arly in 1938 w e started this m o n th ly page, and for six years, du r ing peace and war, w e have each m o n th discussed the problem s of the m a rket—but, m ore im portant, the in v e stm e n t problem s w h ich bankers have faced. W ith this issue w e bring to an end these articles. W e have thor oughly enjoyed contacts w ith our read ers, especially those w ho have w ritte n to us or chatted w ith us, eith er to agree or disagree. W e hope that in one w ay or another these contacts w ill con tinue. A Christmas Poem It has been th e custom of th e U nited States N ational Bank, Omaha, since m any from th a t organization w en t into th e arm ed forces, to send th ese people a C hristm as gift, and th is y ear th e gift is tak in g the form of a m oney order. In stead of a le tte r of good w ishes, w hich w ould u sually accom pany such a rem ittance, th is y ear Miss R u th M. O’Keefe of th e b an k w rote a poem to go w ith each gift. W e know you w ill like it: I t ’s a y ear since a poem W ent out from th ese portals, Enclosing a check To be sp en t by you m ortals. N orthw estern B anker D ecem ber 1943 30 It doesn’t seem possible Tim e is so fleeting, B ut h ere once again W e are sending a greeting. W e th in k of you often, A nd especially now, F o r the Y uletide’s approaching F a st as Tim e w ill allow. F rom th e sands of th e desert To th e snow s of th e north, To th e jungles of B urm a T his m essage goes forth. The stores are as bare As the cupboard of old, A nd the w ares are synthetic, A sight to behold. Since we cannot ju s t yet Say th e b attle is over, W e’re w ell on our w ay To th e old days of clover. So, like last year, we th o u g h t T h at the best th in g to do W ould be send you th e cash F o r a real w hooperdoo. You’re scattered and stationed All over th e w orld, ’N eath th e g re a t flag of freedom , F o rev er unfurled. Spend it w isely or w illfully, J u s t as you wish, The m oney is yours, You can nam e yo u r own dish. W e w ish we could see you A nd tell you “H ello,” Shake hands w ith each one A nd say, “How goes th e show ?” B ut since th a t little fete D oesn’t come on th e list, J u s t have one for us A nd rem em ber y o u ’re missed. ’Til th e happy day comes, W hen we say it to you, M erry C hristm as, H appy New Y ear A nd lots of luck, too. —The Stay-at-Homes. Envelope Firm Changes Name The B erkow itz Envelope Company, Des Moines, has changed its nam e to T ension Envelope Corp. in order to co-ordinate production, ad vertising and m ark etin g w ith its New Y ork City affiliate, so th a t it can carry on its n ational m erchandising program u n d er one nam e. A lbert B erkow itz, president, said LITTLE PARTS THAT MAKE A GREATER VICTORY o f th e th o u san d s o f sm all p arts in a g re a t b o m b er JUisSTvitalas each to its o p e ra tio n , so are th e th o u san d s o f sm aller m an u facturers w h o p ro d u c e tho se p a rts essential to th e o p e ra tio n o f A m erica at w ar. D o u b tless in your area th ere are p rim e co n trac tors and su b -co n tracto rs w h o have assum ed g re a te r responsi bilities, re q u irin g la rg e r scope th a n in fo rm er years. As an aid to c o rre s p o n d e n t b an k s in serving such custom ers, th e b ro a d ex p erien ce o f the A m erican N a tio n a l B ank and T ru st C o m p an y in th e analysis and financing o f w ar co n tracts has fre quently p ro v ed valuable. Possibly we can be equally helpful to you. AMERI CAN NATI ONAL BANK A N D TRUS T COMPANY OF CHICAGO LA S A L L E S T R E E T 9 AT W A S H I N G T O N —------------------------------------------------- Asafr Member Federal Deposit s S IIIS S ^ Insurance Corporation w O U R B U S I N E S S orthw estern B anker Digitized forNFRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I S D ecem ber 19b3 T O H E L P B U S I N E S S V ic e A L B E R T C. B E R K O W I T Z P r e s id e n t a n d G e n e r a l M a n a g e r postw ar expansion plans are involved in th e nam e change. He added th a t com pany executives believe th e paper products in d u stry w ill expand into the packaging of foods, p articu larly since dehydration has been developed as a w artim e necessity. The B erkow itz E nvelope Company in Des Moines w as founded in 1924 by th e late Jo h n R. Ford, E. B. B erkow itz and W alter J. B erkow itz. 31 M IN N E S O T A NEWS H . R. K U R TH P r e s id e n t H u tc h in s o n 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 Two Join Staff Cashier At Braham Two new em ployes w ere added to th e p ersonnel of th e F irs t S tate Bank, Floodwood, M innesota, last m onth. E. M. Graf, Denhoff, N. D., cam e to tak e over th e cashiership. Mrs. S. C. Shipley, Floodwood, sta rte d as a book keeper. The F irs t N ational B ank at B raham , Minn., recently added to its em ployes A ssistant C ashier Carl O. K nutson, form erly of W arren and Hallock. Mr. K n u tso n ’s banking experience, ra n g ing from bookkeeper to cashier, covers 25 years. Since his resignation last F e b ru a ry from the H allock b ank to accept a position w ith the U nited States D epartm ent of Labor, he had been em ployed w ith th a t d ep artm en t’s W age and H our division. He has tw o sons in m ilitary service, one in th e N avy and one in th e A rm y A ir Corps, com m issioned a second lie u te n an t at th e Stockton A ir Field, C alifornia. A d au g h ter is em ployed in M inneapolis. A b ro th er, Oscar K nutson, is D istrict Judge at W arren. Bank Head Succumbs S ylvester A n thony Steffen, 65, p resi den t of th e M erchants B ank, of W i nona, Minn., p ro m in en t in W inona civic and club activities and in b a n k ing circles, died last m o n th at his hom e, a fte r an illness of alm ost th re e m onths. Mr. Steffen had been associated w ith th e M erchants B ank since 1897, h a v ing served as m essenger boy, book keeper, teller, a ssista n t cashier, cash ier, vice p resid en t and president. He had been p resid en t of th e b an k since 1920. He w as a m em ber of the W inona County C learing H ouse A ssociation of w hich he had served as president, th e W inona County, M innesota and A m eri can B ankers Association; th e South easte rn M innesota C learing H ouse Association; th e W inona A ssociation of Commerce, of w hich he had served as a director; th e Izaak W alton League; the A rlington Club, in w hich he had served as a m em ber of th e board of directors, and the W inona C ountry Club of w hich he w as at one tim e a m em ber of th e board of governors. Bankers in School C. J. Lieser, of th e B u rray C ounty State B ank of Slayton, Minn., and Wm. K oolm an of th e State B ank of C hand ler, w ere am ong 300 bankers, account ants, law yers and farm m anagers w ho w ent back to school last m onth. They attended a school of in stru ctio n in farm bookkeeping and incom e tax p rep aratio n in St. Paul. T hey learned how to keep farm financial records, how to in te rp re t state and federal incom e tax law s and how to m ake out th e 1943 income tax rep o rt w hich Uncle Sam requires farm ers to file by D ecem ber 15. The “stu d e n ts” w ill help individual farm ers th ro u g h o u t th e state in these re quirem ents. Banker Resigns R alph M. Jones, assistan t cashier of th e F irst State B ank of Okabena, Minn., resigned his position recently. Mr. Jones has sold his in te re st in the bank and for th e tim e being his plans are indefinite. Mr. Jones, b e tte r know n as “Casey,” has been w ith th e F irst S tate B ank 18 years. Charter Extended O rganized 30 years ago, the corpor ate existence of th e F arm ers State Bank, Eyota, Minn., has been ex tended 30 years, to 1973. The b ank began business in 1913, w ith W. A. L aidshaw , president; T. F. Underwood, vice president, and E. F. Helm , cashier. Mr. U nderw ood still is active in th e lum ber business here. Mr. H elm now resides in W i nona. In M arch, 1928, th e b an k took over New Construction in St. Paul Appointed Chairman F ra n k P. Pow ers, p resid en t of th e K anabec S tate B ank of Mora, Minn., has been appointed ch airm an of th e com m ittee on th e A m erican system of b an k in g of th e state b an k division of the A m erican B an k ers A ssociation, it w as announced by th e late W ood N etherland, vice p resid en t of th e M er cantile Com m erce B ank and T ru st Com pany of St. Louis, M issouri, w ho w as p resid en t of th e association’s state b an k division. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C o n stru c tio n a n d e q u ip m e n t o f th e n ew W estern S tate Bank, S t. P a u l, w as c o m p leted re c e n tly b y th e L eslie Schuldt Company, of S t. P a u l, a n d th e p ic tu re show s th e lo b b y in te rio r b a n k e d w ith flow ers on th e o p e n in g day. N orthw estern Banker D ecem ber 1943 32 • M I N N E S O T A NEWS the assets of th e Citizens S tate B ank, B ricelyn, w ho talked on his w ork con and p re se n t footings are $700,000. Of nected w ith th e legislature; K. O. Satficers are Louis H am m el, president; »tre, vice president, B lue E a rth State Clarence Talen, executive vice p re si B ank, w ho talked on an cient economic dent, and E lizab eth A. S teichen is m easures and th e p resen t day, and cashier. b a rte r trade. In th e first published re p o rt of th e H. I. M uir of W innebago, w ho is F a rm e rs State B ank in J a n u a ry 1914, now holding, and has held, responsible to tal footings w ere $28,500, including assignm ents w ith th e F a rm Credit $50 in gold. A d m inistration, m ain tain in g offices in M ilw aukee, Wis., talked on various F a rm C redit m easures and com m ented Vote Increase A n am en d m en t has been published on those he believed should be p re to th e certificate of incorporation in served as a cushion in th e preserv atio n creasing th e capital stock of th e Secur of our A m erican w ay of life. ity State B ank of H ow ard Lake, Minn., to $25,000, th e increase being voted at Director Becomes President a stockh o ld ers’ m eeting recently. A t a m eeting of th e board of direc to rs of th e F irs t N ational B ank of Association Meets Spring Valley, Minn., J. M. Sam ple T he officers, directors and em ployes w as elected presid en t to succeed th e of th e F irs t N ational B ank of K iester, late Lyle H am lin. I t is th e first Minn., w ere h osts recently, e n te rta in change in th e presidency for over 25 ing th e m em bers of th e F a rib a u lt y ears as Mr. H am lin becam e th e head C ounty B ankers A ssociation. of th e b ank in 1906 w hen George GulThe sp eakers of th e evening w ere lickson w as elected cashier. Mr. S tate R ep resen tativ e E. O. L und of Sam ple has been a director of th e * b an k for 15 years, and his fath er sta rte d as a d irector w hen the bank w as organized as a n ational institution. Breckenridge Banker Dies H alvor L. Shirley, p resid en t of th e F irst N ational B ank of B reckenridge, Minn., form er m ayor and m em ber of th e S tate L egislature, died a t his hom e last m onth. Surviving are tw o daughters, Mrs. K. R. K ennedy of W innipeg an d Mrs. Jo h n L undh of Lompoc, Calif., and th ree sons Louis A. of W ishon, Calif., J. B. of H opkins and H alb ert Shirley of B reckenridge. New Bank N o rth w estern S tate B ank opened at Hallock, M innesota, recently, succeed ing S tate B ank of Hallock. Stockholders and officers of th e new b ank include m en w ho are in terested in th e Citizens S tate B ank of Roseau. T he new b ank is capitalized at $40,000 and th e su rp lu s fund is $8,000. Name Chairmen A $5,000 Accident Policy Paid Up in Full to March 15, 1944 for Only $2.00 Bankers are eligib le to this Liberal Protection, w hich includes up to Two Years of Indem nity on A ccount of Injuries, at the rate of $25.00 a w eek. (Sickness and Hospital policies, also, at the sa m e low rate.) Write for Information and A pplication to MINNESOTA COMMERCIAL MEN S ASSOCIATION At 26th Street and Pillsbury A ve. MINNEAPOLIS, MINN. Out-of-Toivn Ranks O u t-o f-to w n banks and bankers w ill find here c o m p lete b a n k in g fa c ilitie s fo r p ro m p t and econom ical handling of accounts in Chicago. We w ould appreciate the opportunity of serving you. C i t y N a t io n a l I I . w k AND TRUST 2 0 8 S O U T H C O M P A N Y of Chicago L A S A L L E ( Member Federal Deposit Insurance Corporation) N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 19^3 S T R E E T H. R. K urth, H utchinson, M innesota, presid en t of th e M innesota B ankers A ssociation, announced appointm ent of chairm en for five standing associa tion com m ittees for th e com ing year. T hey are: B ank m anagem ent, R. A. Bezoier, R ochester; ag ricultural, A lden Pearson, D etroit Lakes; governm ent lending agencies, R. M. Storlie, S anti ago; A m erican In stitu te of B anking E ducation, R obert C. R utherford, Min neapolis, and consum er credit, A. C. A rm strong, D uluth. J a m ie s o n & Com pany Members N ew York Stock Exchange and Other Principal E xchanges ★ STOCKS BONDS COMMODITIES MINNEAPOLIS ST. PAUL DULUTH FARGO GRAND FORKS SIOUX FALLS PRIVATE WIRES 33 Tw ILLIA M E. Briggs, 85, vice p resid en t of N o rth w e ste rn N a tional B ank, M inneapolis, from 1914 u n til his re tire m e n t in 1931, died last m onth. He cam e from South St. Paul, w h ere he w as vice p resid en t of Stock Y ards N ational B ank. Mr. B riggs orig in ated cattle loans to fa rm ers in th e N orthw est. B u rial w as in W yom ing, Iow a, his birthplace. W Springer H. B rooks, St. Paul, re si d en t p a rtn e r of P iper, Jaffray & Hopwood, has been elected second vice p resid en t of th e A ssociation of Stock E xchange F irm s. E lection took place a t a m eetin g of th e board of gov ern o rs in R ichm ond, Va. Two d irecto rs of th e F ed eral R e serv e B ank of M inneapolis have been re-elected for three-y ear te rm s sta rtin g J a n u a ry 1, according to an n o u n cem en t by W . C. Coffey, ch airm an of th e board. T hey are S h irley S. Ford, p resid en t of N o rth w e ste rn N ational Bank, M inneapolis, Class A director, and H om er P. Clark, ch airm an of th e board, W est P u b lish in g Co., St. Paul, Class B director. B ernard L. D echeine has joined th e St. P aul office of th e M ilw aukee Com p any as m an ag er of its tra d in g d e p a rt m ent. Since sta rtin g his in v estm en t career in 1933, he w as associated w ith P iper, Jaffray & Hopwood, Inc.; W inth rop , M itchell & Co.; H arris, U pham & Co., an d J. M. D ain & Co. A y e a r ago he w en t w ith N o rth w est A irlines. T. AV. P elton , long active in in v est m en t circles, h as joined th e bond de p a rtm e n t of N o rth w e ste rn N ational Bank, M inneapolis. F o r 18 y ears w ith th e old W ells-Dickey Co., M inneapolis, w as tra d e r in th e St. P aul office of th e M ilw aukee Co. for 10 m onths be fore going to N o rth w estern . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis in C ity N ew s By Jam es M . Sutherland Sp ecia l C orre spon de nt L. E. D unn, corporate tru s t officer of F irs t T ru st Co. of St. P aul State B ank, w as elected presid en t of the C orporate F iduciaries A ssociation of M innesota a t th e ann u al m eeting in St. Paul. O ther officers nam ed w ere: vice p residents, E. D. Stow e, a ssistan t sec re ta ry , tru s t d ep artm ent, N o rth w est e rn N ational Bank, M inneapolis, and S. K. Platt, tru s t officer and a ssistan t vice president, F irs t and A m erican N ational Bank, D uluth; secretarytre a su re r, L ew W allace, a ssista n t sec re ta ry and a ssistan t tru s t officer, tru s t d ep artm ent, F irs t N ational Bank, M inneapolis. Some 500 m em bers of th e M inne apolis chapter, A m erican In stitu te of B anking, atten d ed th e an n u al com m encem ent p a rty a t N icollet Hotel. P au l W . P etterson, ch ap ter p resid en t and a ssistan t m ortgage loan officer of M arquette N ational Bank, stressed th e im portance of occupational educa tion as “th e su re st road to personal pro g ress.” Mr. P etterso n also introduced v isit ing A.I.B. officials, w ho included S. J. K ryzsko, a ssista n t cashier, W inona (M innesota) N ational & Savings B ank and m em ber of th e n ational A.I.B. executive council; Fred Goff, F irs t N ational Bank, St. Paul, and St. Paul c h ap ter president; and W illard F. Ario, a ssistan t cashier of F irs t and A m erican N ational Bank, D uluth, and D uluth ch ap ter president. M aynard Hue of J. M. D ain & Co., M inneapolis, presid en t of Tw in City Bond T rad ers Club, has appointed com m ittee m em bers for th e com ing year, as follows: E xecutive—Mr. Rue; P aul M atsche of Paine, W ebber, Jackson & Curtis, St. Paul, club vice president; Oscar Bergm an of Allison-W illiam s Co., M in neapolis, secretary; Jack Talbot of N o rth w estern N ational Bank, M inne apolis, treasu rer; George Jack ish of H arris U pham & Co., M inneapolis, n a tional com m ittem an; W illiam Lau of Bigelow-Webb, Inc., M inneapolis; C. C. Rudd of Piper, Jaffray & Hopwood, M inneapolis, and W alter Space of W oodard-Elw ood & Co., M inneapolis. M em bership— Theodore W . P elton of M ilw aukee Co., St. Paul; E. B. K airies of M errill L ynch, Pierce, F e n n e r & Beane, M inneapolis, and Carroll H. Babcock of Piper, Jaffray & Hopwood, M inneapolis. E n te rta in m e n t—C. J. R ieger of Jam ieson & Co.; R obert M. R ice of R. M. Rice & Co., and R obert McN aghten of W illiam s-M cN aghten Co., all of M inneapolis. Publicity— Kerin it B. Soruni of Al lison-W illiam s Co., M inneapolis. Official photographer-—A. J. Grun of F irs t N ational B ank, M inneapolis. Tw in City banking circles w ere shocked by th e tragic death of th e wife and dau g h ter of E dgar L. Matt son, ch airm an of th e board of M idland N ational B ank & T ru st Co., w ho w ere killed a t G reencastle, Indiana, w hen th e ir car w as dem olished by a train . Mrs. M attson had gone to L afayette, Indiana, to v isit th e daughter, M arion, w ho is professor of child psychology a t P u rd u e U niversity. T he tw o w ere re tu rn in g from a w eekend v isit to Spencer, Indiana, w hen th e accident occurred. F u n e ra l services for both w ere held in M inneapolis. J. R aym ond Sm ith, com ptroller of N o rth w estern N ational N orthw estern Banker Bank, has D ecem ber 1943 34 • M I N N ESOT A NEWS to rs of th e F irst N ational B ank of Owatonna, M innesota, held recently, R u th W alk er w as elected a ssistan t cashier, to succeed Clarence J. LaRoue, w ho recen tly w as inducted into th e Navy. been appointed ch airm an of th e b an k m anagem ent com m ittee of th e E x chequer Club of M inneapolis, w hile W illiam F . K unze, vice p resid en t of M arquette N ational B ank, heads th e program com m ittee. B oth ap p o in t m en ts w ere m ade by P resid en t L. R. The officers and directors of th e F irs t N ational B ank feel Miss W alker is w ell qualified for h er new position. She has had considerable banking ex perience, com ing to O w atonna in 1936 from th e P ipestone N ational B ank at Pipestone. Oberg. B arney W. Janicke has been elected a d irecto r of F ifth N o rth w e ste rn N a tional B ank, M inneapolis, to fill th e vacancy caused by th e d eath of P e te r Hove. Miss W alker attended th e U niversity of M innesota and th e California Col lege of Commerce at Long Beach. Appoint Successor A t a m eeting of th e board of d irec • Remodeling New fixtures w ere installed in th e F irs t N ational B ank at Starbuck, M in nesota. A b eautiful w h ite Italian m ar ble cut to fit th e old counter, w ith a m atching green Italian m arble base adds greatly to th e appearance and lets in m ore light. Above th e m arble will be a decorative glass. T hree teller w in dows w ere installed, m aking it possible to accom m odate th e volum e of busi ness du rin g th e busiest hours of the day. New green desk linoleum covers the counters. R ecently accoustical celotex w as p ut in th e ceiling of th e bank. Elected to Board No M ystery to Us! To an outsider, a great industry such as the Sioux City Live Stock market may seem mysteri W illiam A. P atte rso n of Chicago, presid en t and director, U nited Air Lines, last m onth w as elected to th e board of th e City N ational B ank and T ru st Com pany of Chicago. Since 1929 Mr. P atte rso n has been prom i n en tly identified w ith th e aviation in dustry, and p articu larly , air transpor- ous and complex. To officers and employes of this bank, its operation fits in readily with their daily routine in handling your transactions. Every day for 48 years, we have been en gaged in financing the raising and marketing of live stock. We offer th is e x p e r ie n c e and knowledge to you. ★ ★ ★ W IL L IA M A. P A T T E R S O N O n C ity N a ti o n a l B o a r d 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 1943 tation. He has co n tributed m uch to th e advancem ent of both local and n a tional business and civic affairs, and is now serving as ch airm an of the corporate and special gifts division of th e C om m unity and W ar F u n d Drive in Chicago. Aside from being p resid en t and a director of th e n a tio n ’s oldest airline, he is a director of th e A ir T ran sp o rta tion A ssociation of A m erica, Insu ran ce Com pany of N orth A m erica, Illinois State C ham ber of Commerce, and di rector-at-large of th e C ham ber of Com m erce of th e U nited States. These th ree banks have purchased alm ost a m illion and a half dollars m ore in governm ent securities th a n th ey held in Ja n u a ry of th is year. Loans and discounts have dropped $213,190.50' in th a t period, according to th e sam e reports. SOUTH D A K O T A New Manager NEW S T. N. H A Y T E R P r e s id e n t S io u x F a lls A c tin g S e c r e ta r y M I L D R E D S T A R R IN G 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 (In the Service) Corn Show The N ational B ank of South D akota and th e J. C. M ullaney G rain Com pany, a t V erm illion, South D akota, had a week-long corn show in the lobby of th e bank. C larence Shanley, extension su p erv iso r for th e so u th e aste rn South D akota d istrict, judged th e event at w hich ten cash prizes w ere aw arded. Incorporate Bank A rticles of incorp o ratio n for the Citizens B ank of Colome, South Da kota, have been filed recen tly w ith th e secretary of state, and th e ban k in g d ep a rtm e n t said th e new b an k p ro b ably w ill open about J a n u a ry 1, 1944. T h ere is one b an k in operation at Colome. The articles said th e Citizens B ank w ill be capitalized a t $25,000 and listed F. E. Newlon, E d M usilek, H ector Dem ers, R. E. W oolhiser and A. C. Stenson, all of Colome, as d irectors and holders of 76 of th e au thorized 250 sh ares of stock. Hurley Has Bank The H u rley State B ank opened for business last m onth. C apital for th e new in stitu tio n has been fu rn ish ed by local persons, and th e y have also p ro vided th e m anagem ent. Officers are: R. L. R ayburn, p resident; Dr. Edw. Joyce, vice presid en t; and E. G. Breen, cashier. D irectors are M. H. Ruden, Roy F lyger, C harles W. Sanborn, and Dewey Benson. H u rley has been w ith o u t local b a n k ing facilities since th e fall of 1932. P redictio n s are being m ade th a t sev eral new business en te rp rise s w ill locate h ere soon a fte r th e b an k begins operations. Buy Bonds As deposits in th e 125 South D akota sta te b anks continued to sw ell d u rin g th e th ird q u a rte r of 1943, th e funds w ere being invested by th e b anks in g o v ern m en t bonds, an ab stract of con https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ditions of state ch artered banks indi cated. D eposits had increased $29,315,067 in th e p ast nine m onths, and du rin g th a t tim e b ank holdings of govern m en t bonds increased by $29,860,590. The $19,257,985 increase in deposits in th e p ast th ree m onths boosted the to tal to $109,537,611, S tate B anking S u p erin ten d en t E rlin g F. H augo an nounced. State banks held $46,634,367 in governm ent securities. The ab stract indicated borrow ers re tire d $846,012 in loans since Ju n e 30. T he total of loans and discounts w as $23,925,286. T w enty years ago, S u p erin ten d en t H augo said, th ere w ere 480 state banks rep o rtin g a to tal of $151,298,066 in de posits, $140,119,780 in loans and dis counts and in v estm en t of $2,406,543 in all types of bonds. The com parable c u rre n t figure for th e last item is $52,044,921. Remodel W ork w as sta rte d at th e Com m ercial State B ank at W agner, South Dakota, recently. The e n tire in terio r of th e b an k is being changed and a new coun ter and p riv ate office is being in stalled. A long counter, th e length of th e building, w ill tak e th e place of the old one. Four Million D eposits in th e four Lincoln County, South Dakota, banks have reached al m ost four m illion dollars, according to th e statem en ts recently published by them . T his w ould not include m oney deposited by Lincoln County resid en ts in banks in Alcester, Beresford, and Sioux Falls. These sam e four banks have also purchased over tw o and one-half m illion dollars in U nited States G overnm ent securities. The Ja n u a ry statem en t of th e L en nox E xchange B ank is not available b u t those of the o th er three, th e Fairview Bank, the H arrisb u rg B ank and th e F a rm e rs State B ank of Canton, South Dakota, fu rn ish in terestin g fig ures. C. F. Bain w as nam ed assistan t m an ager of th e G regory branch, at Gregory, South Dakota, of th e N orthw est Secur ity N ational B ank of Sioux F alls in a recen t m eeting by th e board of di rectors. Mr. Bain w ill replace W alter Jo hnson w ho w ill be tra n sfe rre d to an o th er banking in stitu tio n of the N orthw est B ancorporation. Business Up B usiness volum e in M itchell, South Dakota, as m easured by ban k debits, w as six per cent above th e level a t tained in 1942. The total debits for th is year to date indicate a 39 per cent increase, com pared w ith th e sam e 10 m onths of 1942. These b ank debits figures are re leased each m onth by th e F ederal R eserve B ank of M inneapolis, and re p re se n t the volum e of checks draw n by depositors against th e ir b an k ac counts to pay for goods, services, debts, etc. T hey are considered a good in dicator of general business tren d s in a given locality and reflect cash in come received by farm ers and govern m ent spending to cover payrolls and purchase w ar m aterials in addition to general business volume. Safekeeping Bonds The C om m unity B ank at H artford, South Dakota, recently installed a new safekeeping service for W ar Bonds. T his service provides a safe, conven ient and inexpensive m ethod of keep ing W ar Bonds and th e b ank advises all w ho do not have safety deposit boxes to avail them selves of th is serv ice. Sioux Falls N ews of th e so u th D akota B ankers association to co ntinua tion of g overnm ent subsidized lending agencies, in direct com petition w ith banks, w as officially expressed by T. N. H ayter, association president and vice presid en t of the F irst N a tional B ank and T ru st com pany. H ayter, to g eth er w ith John Thom p son, chairm an of th e ban k ers associa tion com m ittee on governm ent subsi dized lending agencies and vice p resi den t of th e B ank of Centerville; R ye p p o s it io n O N orthw estern Banker D ecem ber 19^3 36 • SO U TH Kibbee, vice p resid en t of th e Com m ercial T ru st and Savings B ank a t M itchell; Tom S. H arkison, vice p re si dent of th e N ational B ank of South D akota in Sioux Falls, and W illiam D uffy, vice p resid en t of th e U nion Sav ings B ank in Sioux Falls, atten d ed a m eeting of officials of th e South Da kota F a rm e rs ’ U nion on th e in v itatio n of Jo h n Skagge, president. The F a rm e rs ’ U nion earlier had criticized “th e b a n k e rs’ avow ed d e te r m ination to elim inate th e P roduction C redit association.” D A K O T A “PCA is building large reserv es,” H ay ter said, “and we are opposed to th e g o vernm ent subsidizing a lending agency in com petition w ith th e banks. “Our position su p ports th e stand m ain tained by leading farm organiza tions as th ey oppose th e control of a g ric u ltu ral credit by political forces. “It is recognized th a t direct relief by th e g overnm ent in tim e of serious econom ic stress m ay involve some g ra n tin g of loans from public funds as a te m p o rary expedient. How ever, th e continued practice of m aking u n C e n tra l H a n o v e r has w id e e x p e rien c e i n h a n d l i n g a n d e x p e d i t i n g t h e v o l u m e o f b u s in e s s t h a t c o m e s to a N e w Y o rk c o rresp o n d en t. C e n t r a l H a n o v e r advises w i t h b a n k c u sto m e rs o n th e ir o w n in v e s tm e n t p o r tf o lio s . A n d C e n t r a l H a n o v e r gives u n u s u a l r e q u e s t s t h e a c tiv e , p e r s o n a l a t t e n t i o n o f officers a c q u a i n t e d w i t h c o n d i t i o n s i n e v e r y s e c t i o n of t h e U n i t e d S tates. CENTRAL HANOVER BANK A N D T R U S T C O M P A N Y NEW YORK MEMBER FEDERAL DEPOSIT orthw estern B anker DigitizedNfor FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 19^3 NEWS INSURANCE CORPORA TION • economic loans from public funds, w ith o u t adequate consideration of th e ability of th e borrow er to repay, and w ith the losses socialized at th e ex pense of th e taxpayers, violates th e principles on w hich credit rests, and th ereb y endangers th e foundation of a sound credit stru c tu re .” M em bers of the executive com m it tee, South D akota w ar savings staff, assem bled in Sioux Falls for a m eet ing called by W alter B urke, com m ittee ch airm an and cashier of th e P ierre N a tional Bank. P urpose of th e din n er m eeting w as to elim inate any w eak spots in th e state organization p rio r to th e F o u rth W ar Loan drive in J a n u ary, according to C. A. C hristopherson, executive d irector of th e w ar savings staff and presid en t of th e U nion Sav ings B ank in Sioux Falls. T he m eet ing w as w ell attended, w ith all sec tions of th e state rep resen ted except th e n o rth e a ste rn counties, w hose dele gates w ere snow bound. F ran k E. Duffy, son of W illiam C. D uffy, vice presid en t of th e U nion Sav ings Bank, has been com m issioned a second lieu ten an t in th e arm y air forces at M iami Beach, Florida. He w as assigned to active d u ty at th e air technical school a t Orlando, Florida. R alph W atson, presid en t of the N o rthw est Security N ational B ank and recently-elected p resid en t of th e Sioux Falls C ham ber of Commerce, presided for th e first tim e last m onth at a m em bership m eeting of th e or ganization w hen F ra n k J. L onergan, P ortland, Oregon, g ran d exalted ru le r of th e E lks lodge, w as th e principal speaker. Am ong th e com m ittee ch air m en nam ed by W atson is Tom S. H arkison, vice presid en t of th e N a tional B ank of South D akota, w ho heads th e C ham ber’s m em bership com m ittee for th e com ing year. A sh arp decline in S ioux F a lls b ank clearings du rin g October, w hen com p ared w ith th e Septem ber level, w as a ttrib u te d by local ban k ers to the T h ird W ar Loan cam paign, w hich left little “loose m oney” available for com m ercial tran sactions. A nother factor in th e business curb w as extended In dian sum m er w ea th e r w hich cut deep into norm al dem ands for w in ter m erchandise. The October to tal of b an k clearings w as placed a t $11,888,918.83, com pared w ith $13,083,174 in Septem ber. D espite th e drop, October clearings rem ained 6.8 p er cent ahead of th e sam e m onth a y ear ago. F o r Septem ber, th e com parable gain w as 18 per cent, w hile in A ugust it w as 25 per cent. 37 served as tre a su re r for several y ears for B ethel L u th e ra n church and w as a m em ber of the W ahpeton school board for several years. A P a st Noble G rand of W ahpeton Odd Fellow s Lodge and a tru ste e of th a t organization, he w as also a m em ber of th e W ahpeton Ma sonic Lodge, and w as recen tly a dele gate to th e N ational R epublican Con vention. NOR T H DAKOTA NEWS H . A. F IS C H E R P r e s id e n t W a sh b u rn List Key Bankers 0 . C. W A T T A M S e c r e ta r y F a rg o hall; R ichland, C. A. Bonzer, Lidgerwood; Rolette, W. P. Campbell, Dunseith. Sargent, G. A. K lefstad, Form an; S heridan, E. C. W ahl, McClusky; Sioux, F ra n k Fiske, F o rt Yates; Slope, M. E. Johnson, Amidon; Stark, I. E. Giedt, R ichardton; Steele, M. G. Pederson, Hope; S tutsm an, K. A. W erner, S treet er; Tow ner, H. R. Rendahl, Cando; T raill, O. C. Stusrud, M ayville; W alsh, K. D. B ennett, P a rk River; W ard, W. E. Tooley, Minot; W ells, E dw in Lysne, H arvey; W illiam s, C. B. Neal, Williston. In each county of th e state th e offi cers of th e N o rth D akota B ankers A ssociation nam e one b an k er to serve as key m an in all m a tte rs p ertain in g to th e w o rk of th e association and to cooperate w ith th e G reater N o rth Da kota A ssociation in its projects in th e counties. F. A. Irish, d irecto r of th e U. S. C ham ber of Commerce, ag ric u ltu ra l com m ittee of th e A m erican B an k ers A ssociation, and ch airm an of th e a g ri c u ltu ra l com m ittee of th e state org an i zation, w ith C. C. W attam , secretary of th e sta te organization, nam ed th e Elected to Association key b a n k ers for 1934-44 as follows: W. P. Cam pbell of th e S ecurity State Adam s, L. V. Skoglund, H ettinger; B arnes, A. C. T horkelson, V alley City; B ank, D unseith, N o rth Dakota, w as Benson, C. E. E rstad , M addock; B il elected p resid en t of th e N orthw est lings, J. F. T ester, M edora; B ottineau, N orth D akota group of th e N o rth Da W. T. M unn, W esthope; Bow m an, D. G. kota B ankers A ssociation, at th e m eet Hogoboom, Bow m an; B urke, R. C. ing held in Minot, N orth Dakota. Con W iper, Bowbells; B urleigh, E. D. Saltz- rad J. Olson of Sanish w as nam ed vice m an, B ism arck; Cass, W. E. Strehlow , president, and H a rry G rant of Minot, Casselton; C avalier, L. E. Callahan, secretary-treasurer. G. A. S tenehkem M unich; Dickey, B. R. C rabtree, Ellen- of W atford City w as chosen as a m em dale; Divide, E. G. H anson, Crosby; b er of th e executive com m ittee. D unn, H. M. W eydahl, K illdeer. Eddy, M artin A ar, N ew Rockford; Cashier Returns W. D. Johnson and fam ily arriv ed in Em m ons, G. A. L en h art, H azelton; F o s ter, J. C. H offert, C arrington; Golden Cando, N o rth D akota, from M inneap Valley, T. E. H udson, Beach; G rand olis, and Mr. Johnson resum ed his F ork s, Theo. H. T ufte, N orthw ood; duties, form erly held as cashier at the G rant, A. O. F latlan d , Carson; Griggs, F irs t State B ank in Cando, last m onth. R. E. W ordelm an, recen t cashier at A. C. Brow n, H annaford; H ettin g er, H. C. Bow ers, Regent; K idder, V erne th e bank, left w ith his fam ily for W ells, Robinson; LaM oure, Sharpe S pring Valley, M innesota, w here th ey P reu tz, Kulm ; Logan, George Laney, have bought and w ill operate a dairy farm . Napoleon. M cH enry, M. T. Thom pson, Tow ner; M cIntosh, J. J. Doyle, W ishek; M cKen O . J. Olson Dies zie, O. N. Stenehjem , W atford City; O. J. Olson, cashier of th e N ational M cLean, H. A. F ischer, W ashburn; B ank a t W ahpeton, N o rth Dakota, M ercer, R obert M. Stroup, H azen; M or since 1923, died last m onth. ton, J. R. M adsen, M andan; M ountrail, In 1913 he w as elected reg ister of E. O. L erberg, P arshall; Nelson, Jo h n deeds and re-elected several tim es. He P. Lam b, M ichigan City; Oliver, E. H. w as elected to his fifth term b u t re Johnston, C enter; Pem bina, F ra n k lin signed to become cashier of th e N ation Page, H am ilton; Pierce, H. O. Lyng- al B ank, a position he has held since. stad, Rugby; Ram sey, B landing F ish er, He w as also d irector of th e bank. Devils Lake; Ransom , E. N. K ittelson, He w as at one tim e presid en t of th e E nd erlin ; R enville, E. L. H ubbard, Mo- W ahpeton C ham ber of Commerce, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Vice President Dies Oscar H erum , of Carpio, N o rth Da kota, m em ber of th e W ard county selective service board since April, 1942, w ho for m any y ears w as cashier and la te r vice presid en t of th e F irs t N ational B ank in Carpio, died last m onth in M inot w here he had been a patient. F o r some tim e p rio r to his death he had been vice presid en t of the state tax p ay ers’ association, in addition to serving as a d irector for this district. He had been active in circles of th e N orth D akota B ankers A ssociation and of its n o rth w est group, and had been identified w ith m any o th er organiza tions and m ovem ents of a civic ch ar acter. G ets Bank Service T he A lm ont E xchange at A lm ont, N orth Dakota, opened last m onth, gives A lm ont and com m unity lim ited b an k ing service. The safe and fixtures of th e old F arm ers & M erchants S tate B ank w ere m oved to A lm ont and w ere installed in th e Jo h n Gillis building. T he A lm ont E xchange is u n d er th e m anagem ent of Jo h n Gillis. New Cashier Miss Lee Jo h n sto n resigned as cash ier of th e F o rest R iver b ran ch a t G rafton, N orth Dakota, of th e W alsh County State B ank and h e r place has been tak en by Mrs. H a rry Yon. Services for Pioneer Banker F u n e ra l services w ere held in th e Sheldon, N o rth D akota, P resb y terian C hurch for Royal E. K ratt, pioneer Sheldon banker, w ho died last m onth. Dr. W ard F. Boyd of F argo officiated. In te rm e n t w as in th e Sheldon cem e tery. Com m ittal services w ere con ducted by th e M asonic Lodge. Mr. K ra tt cam e to D akota T e rrito ry from New York state in 1880. In 1909 he assisted in th e organization of th e Commercial State B ank of Sheldon. He m arried th e form er H elen Cree in Sioux Falls, South Dakota, Ja n u a ry 1, 1914. Mr. K ra tt w as an active m em b er of th e M asonic Lodge. N orthw estern Banker D ecem ber 1943 38 A Wartime Investment Service to Banks . . . . UNITED STATES GOVERNMENT BONDS A Specialized Service Your orders for purchase or sale of all issues executed promptly. Subscriptions for new issues entered. UNITED STATES yia tio n a f B A.ÄT K o/(PmaAa M E M B E R N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 19S3 FDIC 39 o ther m atters related to th e activities of th e farm loan association and th e F ed eral L and Bank. NEBRASKA Cashier Injured NEW S WM. B. H U G H ES S e c r e ta r y O m aha R . I. S T O U T P r e s id e n t T ekam ah To Replace Cashier W ayne L am bertz, w ho has been em ployed at th e Safew ay store for sev eral years, w ill join th e staff of the W ash in g to n C ounty B ank, Blair, Ne braska, soon, it has been announced. L ouis M urdoch, cashier of th e bank, is to leave soon for m ilitary service. President W eds Mr. and Mrs. H oyt Osborn, B attle Creek, N ebraska, are annou n cin g th e m arriag e of th e ir d aughter, Ava, to J. J. DeLay, p resid en t of th e DeLay N ational B ank of Norfolk, N ebraska, w hich took place recen tly in Chicago. Mr. and Mrs. DeLay, follow ing a w edding trip , arriv ed in N orfolk to m ake th e ir home. The y oungest d au g h ter of Mr. and Mrs. Osborn, Mrs. D eLay w as b o rn and reared so u th w est of B attle Creek. She ta u g h t school in M adison county a n u m b er of years, and in recen t y ears has been teach in g in th e public schools a t P hoenix, Arizona. Mr. D eLay is w idely know n in b a n k ing circles in th e m iddlew est. Works in Grand Island Iren e Schnase of Rockville, Ne braska, began w o rk in g a t th e F irs t N ational B ank in G rand Islan d last m onth. New Bookkeeper Max Medcalf of C ham bers is th e new bookkeeper at th e C itizens S tate Bank, C learw ater, N ebraska, beginning w ork last m onth. Mr. Medcalf is a grad u ate of th e Chilicothe, M issouri, B usiness college in M issouri. He also is a g rad u ate of th e C ham bers high school. He has had experience in th e C ham bers S tate Bank. Honor Bank Employe L ast m o n th F irs t N ational B ank em ployees at H oldrege, N ebraska, gave a d in n er p a rty hono rin g Jo T itus, who w ill be leaving soon for th e navy. Mrs. B. V. H anson and Mrs. Wm. L in d stro m had charge of th e general https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis arrangem ents. The patriotic them e w as carried out in th e table decora tions w ith red, w hite and blue candles and a bouquet of w hite ch ry sa n th e m um s and red carnations, serving as the centerpiece. Announce New Cashier A nnouncem ent w as m ade by C. H. Rowan, p resident of the N ebraska State Bank, at B roken Bow, N ebraska, th a t A. W. L ine has accepted a position as cashier of th e institution. Mr. Line is w ell know n to a great m any people not only in B roken Bow b u t in all sections of th e county. He served as deputy county tre a su re r for a nu m ber of years resigning about a year ago to rep resen t an insurance com pany in m anagem ent of farm prop erties in this county. Mr. L ine has had experience in the ran ch business and also in th e b a n k ing business in the so u th ern p a rt of th is county in y ears past. Miss Je an n ette Shepherd, a ssistan t cashier of th e F irs t N ational B ank at V alentine, N ebraska, suffered serious in ju ries recently w hen she w as th ro w n from a horse, b u t is m aking a good recovery. Miss S hepherd and Miss E velyn W ilson, registered n u rse at the V alentine clinic, had been ho rse back riding in th e M innekadusa can yon and w ere re tu rn in g to town. She w as unconscious for m any hours and X-rays show ed a fractu re of th e skull above one ear. One hip w as also badly bruised. Miss Shepherd is restin g well at the general hospital. Distribute Checks T rustees of the Schuyler State Bank, at Schuyler, N ebraska, F. J. O’Brien, F ra n k Noha and T. A. Compton, are in v itin g depositors of th e in stitu tio n as of D ecem ber 27, 1933, to call at th e bank for th e ir in terest checks, w hich are now ready for distribution. P aym ents are at the ra te of 7.247 p er cent, and this is th e last detail in closing th e affairs of the depositors com m ittee. Juni or News From th e N ebraska Junior Bankers Association Surplus Up The B ank of B urchard, at Beatrice, N ebraska, has increased its su rp lu s from $5,000 to $10,000, by a vote of th e directors. F. H. O berm ann is cashier and m anager of th e bank. To Help Farmers W ith a view to giving b etter service to farm ers in Paw nee county, th e N a tional F a rm Loan A ssociation at Bea trice, N ebraska, has em ployed Clyde B arton of Paw nee City to handle m at te rs p ertain in g to F ed eral L and B ank loans. In announcing Mr. B arto n ’s selec tion, Axel M. Steen, secretary-treas u re r of th e farm loan association, said th e a rran g em en t will enable applicants for loans and p resen t m em ber-borrow ers to tra n sa c t th e ir business in P aw nee City at any tim e, ra th e r th a n go ing to B eatrice or w aiting for th e secre ta ry -treasu rer to m ake his reg u lar visit to P aw nee City. Mr. B arton has agreed to accept pay m ents on loans and assist in m aking out applications, as w ell as handling John L a u ritze n , E d ito r ERV ICE charges and th e b an k situ ation are tw o such im p o rtan t item s th a t th e en tire colum n this tim e is de voted to w h at th e F arm ers and M er ch ants N ational B ank at Oakland, N ebraska, is doing, so as to let you know w h at o ther banks are th in k in g about along these lines. The following is a quote from th e copy th a t Chase N eum ann of th a t b ank has sent in. Incidentally th ere is no m an in th e N ebraska Ju n io r B ankers A ssociation w ho is w orking h a rd e r at helping the organization to live d uring these tim es th a n Chase N eum ann. A ny am ount of praise given to him for his w ork in th e Ju n io r A ssociation is insufficient. Mr. N eum ann says: “W ith b an k help destined to be an ever increasing problem u n til the du ratio n of th e w ar, every b ank is forced to review its ro u tin e operations, w ith th e idea of saving tim e. One im p o rta n t tim e-consum ing operation has S N orthw estern B anker D ecem ber Í9J3 40 * N E B R A S K A alw ays been th e collection of m on th ly account service charges. W e have re cently saved tw o h o u rs out of th re e form erly req u ired to analyze accounts, a t th e sam e tim e re ta in in g m ost of th e features of account analysis. W e have done th is by cu ttin g our fo rm er th irty day ru n of balances to two, nam ely th e high balance for th e m o n th and th e low balance for th e m onth. W e have m ade th e m ethod a single m achine operation sim plified to th e p oint w here it can be done by th e sim ple addition and su b tractio n of four figures, tak in g approxim ately 10 seconds p er account n o t figuring th e tim e req u ired to w rite th e resu lt. Our basis for account a n alysis is as follows: Credit F o r analysis purposes only in te re st is com puted on th e average balance at 20 cents p er $100.00 p er m o n th (ap proxim ately 2Vz% p er an n u m ). NEWS Debit O verhead and m aintenance m o n thly ..............................................50 Checks Paid, e a c h ................................03 W e now arriv e a t an answ er on a typical account as follows: (F o r explanation purposes we w ill tak e an account w ritin g 20 checks, m ain tain in g an average balance of $300 on w hich the hig h est balance d u r ing th e m o n th w as $450 and th e low est $150.) Place .50 in th e cents colum n of any com bination adding and su b tractin g m achine. Add .60 w hich is 20 checks tim es th re e cents. Now su b tract .45 w hich is th e high balance $450. w ith th e decim al m oved th re e places to left and su b tra c t .15 w hich is th e low balance $150. w ith th e decim al m oved th ree places to left. The Right Combination * 4 r/0 LARGE LI for Correspondent Service CITY M T I 0M I B A M fi TRUST CO. 18th &Grand “ " Ä 7 C°'P' Kansas City, Mo. • Now total is .50 or th e am ount of the service charge for th e m onth. It is g ran ted th a t such an exam ple gives com plete accuracy as to the re su lt th a t w ould n ot be obtained in actual operation. H ow ever by actual te st of one m o n th ’s w ork we found accounts varied only tw o to eight cents one w ay or th e o th er except in instances of an extrem ely high or low balance m aintained for a few days in th e account. These w e ru n for the full 30 day period.” A W ave Miss N etha McGee, d au g h ter of Mr. and Mrs. Dave McGee, w ho recently joined th e WAVES, left for d u ty last m onth. She is th e first C learw ater w om an to join th is organization. Miss McGee has been em ployed at th e Cit izens S tate Bank, C learw ater, Ne braska. Deposits High T he deposits of th e A m erican N a tional B ank in Sidney, N ebraska, has h it an all tim e high, according to a b an k statem en t recen tly published. T otal deposits, as listed in th e sta te m ent, are $4,249,056.83, approxim ately $1,200,000 m ore th a n in th e statem en t for th e end of Ju n e of th e c u rre n t year. The increase alone in th e past m onths am ounts to m ore th a n th e total deposits of th e b an k eighteen m onths ago, and com pares w ith th e balances in 1935 and 1936 w hen th e total de posits ra n in th e neighborhood of six and seven h u n d red tho u san d dollars. BANKS Bought and Sold Confidentially and with becoming dignity BANK E M P LO Y EES P LA C ED . 38 Y e ars S a tisfa cto ry Se rv ice THE CHARLES E. WALTERS CO. OM AHA, N EB R A S K A 7feT00TLE-LA CY SIN C E 1889 WE H A V E S P E C IA L IZ E D AS "A BANKERS' BANK" N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 19^3 41 in th e U nited States, A laska, Nova Scotia, P anam a Canal Zone, Mexico, H aw aii and, in peacetim e, China and th e Philippines. He is p ast p atro n of th e Ak-Sar-Ben O.E.S. ch ap ter a t Om aha and p ast g ran d p atro n of th e N ebraska G rand C hapter. H e also is p ast p o tentate of T angier Tem ple of th e S hrine at Omaha. r o p e r t y valued at $744,098 w as th a t of Ju n e 30, th is year, w hen it w as listed in an inven to ry , filed in $298,281,549. county co u rt a t Omaha, of th e estate T otal loans Oct. 18 w ere $50,083,644, an increase of $7,361,204 over $42,722,of R obert P. M orsm an, re tire d Om aha ban k er, w ho died recently. H e had 840 rep o rted last June. serv ed as p resid en t and la te r as ch a ir T he Live Stock N ational B ank of m an of th e board of the U nited States N ational B ank of O m aha u n til his re Om aha has increased its su rp lu s ac count from $750,000 to $1,000,000, giv tirem en t. ing th e in stitu tio n a com bined capital The in v e n to ry did not include life and su rp lu s of $1,500,000, it w as an insu ran ce and tw o tr u s t funds. nounced by A lv in E. Johnson, p resi dent. T he F a rm C redit A d m in istratio n Mr. Johnson said th at, to illu strate board a t O m aha has announced th e election of E. J. P etrik as vice-presi th e b a n k ’s consistent grow th, capital ization totaled $100,000 w hen th e bank d en t and tre a s u re r of th e Production C redit corporation of Omaha. H e had opened 36 y ears ago. S urplus account totaled $100,000 10 been tre a s u re r of th e PCC since 1937. A n ativ e of South D akota, he h as been y ears ago, he said, and deposits at th a t tim e w ere $5,000,000, com pared w ith th e FCA since 1934. Previously, he w as in th e a g ric u ltu ra l b anking to m ore th a n $50,000,000 now. field in South D akota for 13 years. H arold T. E anderyon, vice p resident H e succeeds H. A. V iergutz, w hom th e FCA board elected vice p resid en t of S m ith-L anderyou Company, Omaha of th e F ed eral L an d B ank of Omaha. in v estm en t bankers, w as elected m ost w o rth y g ran d p atro n of th e G eneral G rand C hapter, O rder of E a ste rn Star, Omaha bank d ep osits set an all-tim e reco rd of $339,194,650 w h en figures a t th e trie n n ia l session in Chicago. w ere announced Oct. 18 in response to Mr. L anderyou becam e th e first N e a call from th e com ptroller of c u r b ra sk an in th e lodge’s h isto ry to hold rency. such a high post in th e g ran d chapter, T he to tal w as $40,913,101 m ore th a n w hich has jurisd ictio n over ch ap ters P NATIONAL BANK Seven dow ntow n and South Side banks in Om aha d istrib u ted m ore th a n $400,000 in savings to 7,000 C hristm as club m em bers th e la tte r p a rt of No vem ber. The m oney w o n ’t all be used for C hristm as, how ever. Some w ill help pay incom e taxes, local taxes, doctor’s and d e n tist’s bills, and w ill go for w ar bonds. N um ber of C hristm as club m em bers in Om aha w as sm aller th a n a y ear ago because b an k ers u rged previous m em bers to consolidate paym ents into one account, to reduce bookkeeping. A. G. Black, head of th e farm credit ad m in istratio n a t W ashington, told th e house com m ittee on ag ricu ltu re recently th a t u n d er p resen t financial conditions, local banks and priv ate lending agencies “probably w ill handle m ost of th e loans now being m ade by th e governm ent-financed production credit associations.” He added, how ever, th a t th e re w as no w ay to predict how long p resen t financial conditions w ould exist or how long farm prices w ould rem ain at p resen t high levels. N ebraska w as one of only 10 states to reach its Series “E ” w ar bond quota in th e recen t drive, th e final F ed eral R eserve B ank re p o rt to th e tre a su ry d ep artm en t disclosed. “W e feel th a t w e have accom plished our prim e job,” said W . D ale Clark, presid en t of th e Omaha N ational Bank, w ho served as state bond drive chair m an. “W e are proud of our ‘E ’ bond record.” S T . JO S E P H , M O . MILTON TOOTLE, JR. E. H. ZIMMERMAN R. E. WALES P R E S ID E N T V IC E P R E S ID E N T C A S H IE R GRAHAM G. LACY MILTON TOOTLE, III FRED T. BURRI V IC E P R E S I D E N T V IC E P R E S ID E N T A SST. C A S H IE R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 Banker D ecem ber 1943 42 • The s ta te ’s quota of $32,000,000 of Series “E ” bonds w as oversubscribed by a m illion dollars, Mr. C lark said. T his indicated a broad d istrib u tio n of th e bonds th ro u g h o u t th e state, he added. A. C. “Cub” P otter, longtim e head of B urns, P o tte r & Co., O m aha in v est m en t ban k in g house, has joined Alex Brow n & Sons in New Y ork City as a sales rep resen tativ e. F a rm e r and ra n c h e r directors of 42 production credit associations in th e four states of th e Om aha farm credit d istrict have re-elected F ay C. H ill, stockm an and b a n k e r of Gordon, Ne braska, to his fo u rth te rm on th e farm credit a d m in istratio n board of Omaha. H is election w as announced by Nels G. K raschel, g eneral ag en t of th e FCA at Omaha, a fte r a m ail vote. In m aking p o stw ar plans, Omaha should tak e a lesson from th e m en w ho half a c en tu ry ago gave th e city its g reatest in d u stry , m eat packing, according to A lvin E. Johnson, p resi dent of th e Live Stock N ational B ank of Omaha, N ebraska ch airm an for the N ational C om m ittee on Econom ic De velopm ent, and ch airm an of th e Om aha C ham ber of Com m erce post w ar p lan n in g board. He spoke recen t ly before th e Om aha R o tary club. Am ong those caught in O m aha’s early-N ovem ber near-blizzard w ere Steve W irtz of th e Om aha N ational Bank, R ichard K rim lofski and W h eel er P latt. T hey w ere m arooned on th e M issouri riv e r from S atu rd ay n ig h t to M onday evening, w hile h u n tin g . The trio did not a tte m p t to sail th e ir boat dow n th e riv e r from B lair to Om aha u n til th e w ind h ad subsided, for fear th e boat w ould be dashed ag ain st th e dikes. N E B R A S K A NEWS * A decided tre n d in m ortgage loan reduction due to increased fam ily earnings is evident in Om aha and the rem ain d er of th e state, according to L eslie E. M artin, presid en t of the Ne b rask a Savings and L oan Association. Those w ho are not paying off th e ir m ortgages are placing th e ir earnings in savings accounts and are buying w ar bonds, he said. Savings and loan associations in the N ebraska league ran k ed 13th am ong sim ilar organizations in o th er states in w ar bond purchases du rin g th e Septem ber drive, M artin, w ho is state secretary, said. W ith a quota of $3,500,000, N ebraska associations bought $6,557,000 in bonds—22.4 p er cent over th e ir quota. Am ong those w ho e n tertain ed for Mrs. Jo h n H. Schirding, of P etersburg, Illinois, th e form er Jessie Clark, d au g h ter of Mr. and Mrs. W. D ale Clark of Omaha, w ho has been v isit ing h e r p arents, w ith h e r sm all daugh ter, C atherine, w ere Mrs. C. W. Mead, Mrs. R ay Ridge, Mrs. W alter Savidge and Mrs. S. R. K irkpatrick. Mrs. S chirding’s fath er is presid en t of the Om aha N ational Bank. Jo h n L au ritzen of the F irs t N ational B ank of Omaha has been chosen by th e Omaha Ju n io r C ham ber of Com m erce to rep resen t th e Ju n io r Cham b er on P ostw ar P lan n in g Board. In th is position Mr. L au ritzen w ill w ork w ith o ther P o stw ar B oards th ro u g h out th e co u n try in an effort to d eter m ine w here th e younger m en m ust fit into th e w orld to follow. board for a good m any years, and has been m ost active in th e affairs of the school. C. D. Saunders, as a m em ber of the board of directors of th e Omaha Cham ber of Commerce, is on the board to solicit funds for th e prom otion of fu tu re business for th is te rrito ry of the country. A new baby girl, M ary Teresa, a r rived at th e hom e of Mr. and Mrs. A. J. H allas not long ago. Mr. H allis is vice p resid en t of th e Stock Yards N a tional Bank. Deposits Climb W ith “new m oney” already m aking its appearance in Columbus, N ebraska, b ank deposits continue to clim b to new highs each m onth, th e business barom eter of th e Cham ber of Com m erce indicates. B ank deposits w ere $7,805,595.36, com pared to $7,593,561.94 for th e p re vious m onth, and $4,978,712.47 for last year at this time. Files as Delegate C hristopher J. Abbott, H yannis ran ch er and banker, last m onth be came the first candidate to com plete his filing for election as delegate at large to the national R epublican con vention. A bbott’s petition, filed w ith S ecretary of State F ra n k M arsh, bore m ore th a n 2,500 sig n atu res from the four congressional districts. Named a Director F red W . T hom as of th e F irs t N a tional B ank of Om aha has been vice p resid en t of the board of directors of B row nell H all E piscopal School for Girls. Mr. T hom as has served on th e At a stockholder’s m eeting recently, R aym ond K epner w as elected as a m em ber of th e B oard of D irectors of the F irs t N ational B ank of Osceola, N ebraska. "at the crossroa ds o f Om aha" FIRST N A T I O N A L N orth w estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 1943 BANK 43 ANK clearings in L incoln for th e liquidation com m ittee of th e N ebraska m o n th of October, 1943, took a drop N ational B ank of G rand Island. In from th e clearings for Septem ber, w ith spite of th e adverse conditions prev ail ing d u rin g th e liquidating period th e a to tal of $17,035,461 com pared w ith $19,061,703 in th e preceding m onth. tru ste es w ere able to realize enough H ow ever, th e m a rk th is O ctober is out of th e assets to pay total dividends h ig h er th a n th a t of October, 1942, by re p re sen tin g 93.43 p er cent of th e orig $1,422,657, th e figure last y e a r h aving inal deposits. been $15,612,804. F o r th e first ten m o n th s of 1943 to tal G oes to Iowa clearings w ere $171,478,332. T his is A. F. Goblirsch has resigned his posi $26,703,374 m ore th a n th e $144,774,958 tion as a ssistan t cashier in th e P e te rs rep o rted for th e corresponding to tal b u rg State Bank, at P etersburg, Ne for th e sam e period of last year, and braska, and has tak en a position in revealed a m ore th a n satisfacto ry in a b an k in Dunlap, Iowa. D elbert crease in business for th e c u rre n t y e a r Schafer has tak en Mr. G oblirsch’s place to date. in th e bank. It w as believed th a t large checks m ade out in th e th ird w a r loan drive Bank President Dies in S eptem ber, th u s adding to th e total am o u n t of b an k clearances—even H arve H. O stenberg, 65, p rom inent thou g h from one local b an k to a n Scottsbluff businessm an since 1910 and o th er—co n trib u ted to th e decrease in p resid en t of th e Scottsbluff N ational m o n th ly clearances show n for October. B H arold D. Johnson, a ssista n t directo r of th e d e p a rtm e n t of banking, a n nounced th a t th re e b an k receiverships are pending. T he F a rm e rs S tate B ank of Callaw ay has paid 52 p er cent and w ill be closed w ith little loss to stock holders. T he P ro fessional C ooperative C redit A ssociation of L incoln has paid out 50 p er cent and an o th e r dividend w ill y et be paid. The M idland Savings B ank has paid all cred ito rs and 44 p er cent to stockholders. F in al settlem en t is aw aitin g th e possibility of strik in g oil on 750 acres of T exas land. As an indication of th e changed conditions in th e state, b etw een 1929 and 1932 th e re w ere 115 b an k receiverships. A final depositors dividend of 10.4 p er cent h as been declared by th e 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 . Bank, Scottsbluff, N ebraska, died su d denly of a h e a rt attack at his hom e recently. Mr. O stenberg w as born in F rem ont, N ebraska, on Ju n e 16, 1878, th e son of Mr. and Mrs. Otto O stenberg. He a t tended school in W ahoo, N ebraska, Doane College and N ebraska U niver sity w here he w as a m em ber of Sigma A lpha E psilon fratern ity . F ro m 1905 to 1910 he w as cashier of th e F a rm e rs and M erchants B ank at Malmo, N ebraska, and in 1910 came to Scottsbluff and organized th e Scotts bluff N ational B ank w ith his b ro ther, the late W. H. O stenberg. In th e sam e y ear he also organized th e F irs t N a tional B ank at B ayard and th e G ering N ational Bank. The G ering B ank w as later sold, b u t he retain ed his in te re st in th e B ayard B ank and w as an officer a t th e tim e of his death. The Scottsbluff N ational B ank absorbed th e old F irs t N ational B ank of Scottsbluff. Changes Position A nnouncem ent w as m ade by L. W. T itus of th e F irs t N ational B ank of H oldrege, N ebraska, th a t A. I. Rauch, m anager of th e H astings Production C redit Association, has been em ployed by th e b ank and assum ed his duties last m onth, handling loans and farm pap er for the bank. R auch is w ell know n in H oldrege and Phelps and su rro u n d in g counties. He served for n early four years as th e m anager of th e H oldrege b ran ch office of th e P roduction C redit Asso ciation before being prom oted to m an ager of th e association and m oving to H astings m ore th a n a y ear ago. W a r -tim e S e r v ic e Let us help you with your war-tim e problem s a n d thus assist you in serving a N a tion a t W ar. (oN TIN EN TA L RA TIO N AL B a/° f k LINCOLN Member F ederal D eposit Insurance Corporation OM AHA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern B anker D ecem ber 1943 44 Figures Speak for Them selves P ro o f of satisfactory service to o u r custom ers is evidenced by th e follow ing com parative statem ent. October October October October October 19th, 1908__________________________ $ 380,120 19th, 1913_________________________ 1,963,412 19th, 1923_________________________ 4,776,831 19th, 1933_________________________ 4,978,330 19th, 1943_________________________ 52,751,827 ★ OFFICERS AND DIRECTORS A LV IN E. JO H N SO N P r e s id e n t R. H . KROEGER V ice P r e s id e n t H. C. K A R PF V ice P r e s id e n t PAU L H AN SEN C a s h ie r H. H. ECHTERMEYER A ss t. C a s h ie r L. V. PULLIA M A s s t. C a s h ie r C. G . PEA R SO N A ss t. C a s h ie r EARL R. CHERRY A s s t. C a s h ie r W . D EAN VOGEL A s s t. C a s h ie r T. J. PR IC E, JR. A ss t. C a s h ie r W . P. ADKINS C h a ir m a n H . B. B ERG Q UIST C o a l a n d G r a in L. S. BURK C h ic a g o JAS. J. FITZGERALD P r e s . C o m m e rc ia l S a v . & L o a n A s s n . T. E. GLEDHILL F a rm e r LEO T. M URPHY M g r. A llie d M ills, In c. JAM ES L. PA X TO N , JR. P re s . P a x to n -M itc h e ll C o. H ERM AN K. SC H A FER P r e s . M o n e y M illin g C o. CARL A . S W A N S O N P re s . J e rp e C om . & C o ld S to r a g e C o. J. L. W ELSH B u tle r-W e ls h G r a in C o. ★ LIVE STOCK N A T IO N A L BANK OMAHA T h is B a n k H a s N o A f f ilia te d C o m p a n ie s M e m b e r o f F e d e r a l R e s e r v e S y s te m a n d 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 ra tio n N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 19!i3 45 held in th e com m unity room a t th e “Y” at W ashington, Iowa, an address w as given by W alter G arver, agricul tu ra l econom ist for th e F ed eral R e serve B ank of Chicago. Mr. G arver, w hose duties tak e him over a large area to g ath er ideas on economic questions to be used as a basis for securing favorable legislation, spoke on th e question of subsidies w hich is before Congress now. NEWS Y . W . JO H N S O N P r e s id e n t C e d a r P a lls FRANK W ARNER S e c r e ta r y D es M o in es Bank Manager Smith G oes to Leon Mr. F re d R isser of th e F irs t State Bank, C hariton, Iowa, announced th e ap p o in tm en t of H e n ry Iv an F o rd as th e new re sid e n t m an ag er of th e R us sell office of th e F irs t S tate B ank. D w ight L. Sm ith, vice presid en t of th e C entral S tate B ank & T ru st Com p an y of E lkader, Iowa, subm itted his resig n ation at a m eeting of th e board of d irectors of th e ban k last m onth. The board accepted Mr. S m ith’s resig n atio n b u t has y et done n o thing tow ard selecting his successor. Mr. Sm ith w ill tak e a sim ilar posi tion in th e D ecatur County State B ank a t Leon. Dies in Omaha G arw in, Iowa, frien d s received w ord of th e d eath of R alph G. R ichards last m onth. The R ichards lived in G arw in for a n u m b er of y ears w hile he w as connected w ith G arw in S tate Bank. Mr. R ichards has been an invalid for several years. H e is surv iv ed by his w ife and tw o children, Mrs. R obert H ughes of Omaha, w h ere he passed aw ay, and a son, V ernon, w ho lives in K ansas. G e t New Posts A t a special called m eeting of th e directo rs of th e F a rm e rs State B ank of Jew ell, Iowa, last m onth, F ra n k H. F erb itz, Jew ell b u siness m an, w as elected p resid en t of th e bank, to suc ceed E lm er T. Rorem , w hose re tire m en t as president, d irecto r and stock holder of th e b an k w as announced. A t th e sam e tim e Alm a C. R orem w as elected to succeed E lm er T. R orem as d irecto r of th e bank. Dressed Up H u ndreds of pounds of needed cop p er and brass are m ade available for w ar production w hile th e appearance of th e in terio r of th e Iow a T ru st & Savings B ank B uilding, Oskaloosa, Iowa, has been im proved and m odern ized by rem odeling operations. The heavy brass grill w ork of th e cage around th e counters has been re placed w ith a ttractiv e m ahogany coun te r fixtures of th e latest design. The g rill sep aratin g th e safety deposit v au lts from th e lobby has been re placed w ith low m ahogany p artitio n s and doors. The in terio rs of th e counter boxes are arran g ed to facilitate the handling of banking supplies and are to be illu m inated w ith th e latest type of fluorescent lighting. O ther lighting changes are also contem plated. Employes Hear Editor Jo h n W. Carey, m anaging editor of The Jo u rn a l and Jo u rn a l T ribune, of Sioux City, Iow a, spoke before 120 em ployes and officers from seven Sioux City b an k s a t th e m o n th ly forum d in n e r m eeting of Sioux City chapter, A m erican In stitu te of B anking, in the M ayfair Hotel. Mr. C arey’s address included re m iniscences of early day Sioux City events. S ponsoring th e p ro g ram w as a group of S ecurity N ational B ank em ployes u n d e r ch airm an sh ip of C harles R. Gossett, b an k president. A lvin G. Nelson, in stitu te ch ap ter president, w as m a ste r of cerem onies. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis In Des Moines The follow ing em ployes of the Brenton B anks w ere guests of Mr. and Mrs. W. H. B renton in Des Moines recently: Miss Thelm a McClure and Miss Grace Cain of Jefferson; Miss F lorence Berdin and Miss Calista W iese of Emm etsburg; Miss D orothy H elm ick and Mrs. G eraldine B atershell of Dallas C enter; Miss Ina B u rk et of G ranger; Mrs. M arjory O rr of W aukee; Miss M ary Rees, Miss M ary Jan e S tew art and Miss G uinevere B arth of P erry; Mrs. E unice W in ter of Adel; Miss R uth Shiffett of D exter; Mrs. Doris Sm ith and Mrs. Della Shogren of V inton; Mrs. Lucille P otts, Miss H attie Johnson and Miss M ary Doris Donohoe of G rinned. L uncheon and tea w ere served a t the B renton home, w ith a business m eet ing in th e afternoon. In th e evening th e guests w ere en tertain ed a t d in n er at th e Des Moines Club. Out-of-town girls w ere luncheon guests of Miss H elen R in eh art at Y ounkers Tea Room. Ex-Banker Dies I. B. R obinson, 62, died in his hom e in H am pton last m onth a fter a linger ing illness. He w as born in H am pton A pril 2, 1881, attended th e H am pton schools and th e State U niversity of Iow a at Iow a City. Mr. R obinson w as a form er vice p res ident of the old F ra n k lin County S tate Bank, of H am pton. Becomes Director C larence E. N icholson of Conesville, Iowa, has been nam ed d irector of the Colum bus Ju n ctio n S tate B ank at Colum bus Junction, to fill th e vacancy on th e board created by th e death of Roy A ringdale. He is ow ner and operator of a farm , p resid en t of th e Louisa C ounty M utual In su ran ce Company, and secretarytre a s u re r of th e Iow a E x p erim en tal A ssociation a t Conesville. Hear Economist A t a m eeting of th e Louisa-W ashington County B ankers A ssociation, Handle Corn Loans The Story County B ankers Associa tion is going to handle corn loans for S tory county farm ers w ith o u t asking th e governm ent for aid. T his w as th e unanim ous agreem ent reached a t a m eeting at Nevada. G uests included th re e state com m erce com m ission officials w ho ex plained th e Iow a W arehouse Law on corn and grain. T hey w ere Commis sioners Carl Reed and David Long and S u p erin ten d en t R ay Jo hnson of the w arehouse division. N orthw estern B anker D ecem ber 1943 46 - • IO W A NEW S — Increase in Surplus On the Job Again Double Capital Stock The board of directors of th e IowaDes M oines N ational B ank and T ru st Com pany, a t its N ovem ber m eeting, voted to increase th e b a n k ’s su rp lu s account in th e am o u n t of $250,000 by tra n sfe rrin g th a t sum from th e u n d i vided profits account, H e rb e rt L. H o r ton, president, announced. The to tal capital s tru c tu re of th e b an k now exceeds $5,000,000, m ake up as follows: Common stock, $2,500,000; surplus, $1,500,000; undivided p ro f its and unallocated reserves, $1,035,000. H o rto n said th e to tal resources of th e b ank are now m ore th a n $100,000,000, th e h ig h est to tal ever recorded by an Iow a bank. W ord from L. L. A rendt, cashier of th e Gibson, Iowa, Savings Bank, says th a t M. L. A rendt, vice president, is again on active d u ty a t th e bank. M. L. A ren d t suffered an attack of m alta fever last A ugust, and only recently has been able to be up and around. A special m eeting of th e stockhold ers of th e G raettin g er State B ank a t G raettinger, Iowa, w as held last m onth for th e purpose of voting upon an in crease in th e capital stock from $12,500 to $25,000. T he increase w ill n o t re p resen t th e sale of new stock b u t w ill be paid out of th e undivided profits. Two Million More Ida County Banker Dead B ank clearings for Sioux City, Iowa, for 1943 show an increase of $2,612,408 over clearings for 1942, w ith all bu si ness generally show ing an increase, according to th e financial figures re leased by th e C ham ber of Commerce. F ra n k M. S tew art, 77, vice p resident and d irector of th e Ida County State Bank, died a t his hom e at Ida Grove, Iowa, recently. Mr. S tew art had been ill since he suffered a stroke. To Officiate THE CHECKS YOU BUY and give away Imprinted checks —whether Person alized pocket check style or business style three-on-a-page, are easier for you to handle, the customers prefer them and you save all the cost. Anything as personal as a checking account—and checks are the personal currency of the individual — should be truly personalized. All customers don’t know that imprinted checks are available or how inexpensive they are. . . . never make you any money. They increase your cost of doing business. BUT the checks you SELL imprinted with a customer’s name cost you NOTHING. What, for example, do you pay in the course of a year for large size over-the-counter checks —and for which you receive nothing in return? Certainly everyone who uses a busi ness size check should have his name printed on it. Why not tell them? Show them your De Luxe Catalog. And if you would like a supply of state ment enclosures to make your message stronger, write us and we’ll be happy to send whatever you can use. Those Newport and Compact style check books —so popular in the East —they too are costly, when they are given away. But when they’re . imprinted you can re- | cover your full cost. De luxe CHECK PRINTERS dPtic. Manufacturing Plants at NEW YORK CLEVELAND CHICAGO KANSAS CITY V . H. N. M cM aster, Correctionville, w as elected to th e presidency of th e W ood b u ry C ounty B ankers A ssociation afte r a d in n er atten d ed by about thirty-five m em bers. B. M. W heelock, vice presid en t of th e S ecurity N ational Bank, Sioux City, Iowa, w as elected vice presid en t of th e b an k ers group, and H. W. Hays, Moville, secretary -treasu rer. W. G. Nelson, a ssistan t vice p resid en t of th e L ivestock N ational Bank, Sioux City, presided. Mail Yule Checks A pproxim ately $130,000 w hich has been deposited du rin g th e p ast y ear as C hristm as savings in tw o C linton banks offering th is service, w ere dropped in th e m ails Decem ber 1st as a h ig h lig h t of p o stw ar p ro sp erity w eek w hich began N ovem ber 29th. T his C hristm as club plan, w hich is fu n d am en tally a corporation and founded and presided over by H erb ert F. Raw ll of N ew York, has become in th e p ast decade a w idely concentrated n ational plan, and th is y ear $420,000,000 w ill be d istrib u ted to about 7,500,000 m em bers. T he w eek’s title is a nam e designed by th e corporation only for th e d u ratio n to replace th e N ation al P ro sp erity W eek designation, and th e cash dispersal is an n u ally th e h igh est point of th e period. S carborough ^ C ompany First N ational Bank Building, Chicago N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 1943 H orace A. Smith, Iow a Representative Des Moines, Iow a Wartime Design for Christmas Buying This m onth com es C hristm as—w ar or no w ar. To our friends a n d business associates in banks throughout Iow a, w e extend sincere holiday g reet ings. And since there IS w ar, how wise to com bine w a r buying with C hristm as buying. Yes—this y e a r a n d every y e a r 'til Victory, the No. 1 C hristm as gift is a W ar Bond. Som etim es folks seem w eary of h ea rin g ab o u t W ar Bonds. The M arines a re w ea ry of h earin g la p p lan es, too—but the only w ay to silence those p lan es for keeps, is to keep buying W ar Bonds. So w e'll all buy m ore—in '44. BA N K ER S T R U S T FQPJ/ICTORY UNITED STATUS WAR 1 JONDS AND https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6th and Locust .STAMPS i 48 • C ed ar Rapids Cashier Dies S tricken A rm istice Day by a h e a rt attack, F ra n k G. K anak, 58, cashier and a director of th e U nited State B ank, w hich he helped organize in 1922, died in a Cedar Rapids hospital. He sta rte d in th e b an k in g business w ith th e M erchants N ational B ank in Cedar R apids in 1906 and, a fte r a pe riod there, becam e associated w ith a bank a t T hornburg, re tu rn in g to Cedar Rapids w ith th e old C entral State Bank. He left th e C entral S tate B ank to serve 20 m o n th s in th e arm y, 13 IO W A NEWS m o n th s overseas, in W orld W ar I. On his re tu rn he w as associated w ith th e Ulch B ro th ers S tate B ank of Solon u n til 1922 w hen he helped organize th e U nited State B ank in Cedar Rapids. He began as a teller w ith th e U nited State Bank, w orking his w ay to cash ier. Former Banker Dies H a rry K. Denmead, for m any years a resid en t of M arshalltow n, Iowa, and an official in th e old F irs t N ational B ank, died suddenly last m onth a t his hom e in F o rt Madison. r This & fieàience may be useful to y o u ... S in c e 1 8 6 8 th is i n s t i t u t i o n has co -o p erated w ith banks th r o u g h o u t th e m id d le w est in e x te n d in g cred it facilities to sound co m m ercial b o rro w ers. T h is ex p erien ce is at y o u r disposal w ith o u t o b lig a tio n . 2/V ie LIV E • A rt/ fm ta / STO CK ESTABLISHED 1868 7 > ffê STOCK 'j d j t v i î w e ï & YARDS a ï if Member Federal Deposit Insurance Corporation N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 19^3 Banks Merge M erger of th e F irs t N ational B ank and the F irst T ru st and Savings B ank at Rem sen, Iowa, w as announced last m onth, w hen th e approval of th e state b anking d ep artm en t of th e consolida tion becam e final. The nam e of th e new in stitu tio n , its location and th e personnel have not been announced. The F irs t N ational B ank w as organized in 1903. The p res ent officers are B arney B unkers, p resi dent, and W. G. Sievers, cashier. The F irst T ru st and Savings B ank organ ized u n d er th e Toy N ational B ank in terests by th e late Jam es F. Toy of Sioux City in 1887. Officers of th e bank are E. H. Spiecker, president, and M. H. N iggeling, cashier. The to tal deposits of th e tw o in stitu tions w ere over $2,000,000. T his will leave R em sen w ith tw o banks, the o ther being th e F a rm e rs Savings Bank. Sell Bank M. J. G rogan of C hariton and K. C. M owery of O ttum w a have sold th e ir stock in th e Beoples State B ank a t B atavia, Iowa, to W. K. Brom well, p resid en t of th e H ard in County B ank in E ldora. F o r th e p resen t tim e th e b ank w ill be u n d er th e old m anage m ent. Bank Fire F ire of und eterm in ed origin th re a t ened to destroy th e local building of th e Story C ounty State B ank at Ro land, Iowa, w hen flames w ere seen belching from th e basem ent windows. The dam age w as m ostly to th e beam s u n d er th e m ain floor, w hich w ere bad ly charred, and th e electric w iring. It is estim ated th a t th e loss w ill am ount to approxim ately $300, w hich is cov ered by insurance. St. Louis Meeting BAN K UNION * K. J. McDonald, p resident of the Iow a T ru st and Savings B ank a t Estherville, Iowa, w en t to St. Louis, Mis souri, w here he atten d ed a m eeting of an A m erican B ankers A ssociation com m ittee on co u n try b an k procedure, of w hich he is chairm an. E d w ard Drew, New York, deputy m anager of th e A m erican B ankers A ssociation, accom panied McDonald to M issouri and also atten d ed th e m eet ing of the com m ittee. Mr. D rew w as g uest speaker w hen ban k ers of E m m et, Dickinson, Palo Alto and Clay counties m et for a coun ty b an k ers m eeting at th e G ardston Hotel. 49 - • IO W A NEWS •- New Teller-Auditor Women Change Positions Elw ood W. C om pton of Des M oines has accepted a position as teller-audi to r in th e F irs t S tate B ank at W ebster City, Iowa. He w as w ith th e B an k ers T ru st Com pany, Des Moines, w h ere he w as em ployed for 16 years. V eronica Portz, w ho has been w ith th e C raw ford County T ru st & Savings B ank in Denison, Iowa, for th e p ast 14 years, has resigned h e r position and has gone to Omaha to en ter th e em ploy of th e N o rth Side Bank, tak in g a position th a t is considered an ad v an tageous advancem ent. E d n a Stephens, w ho had been w ith th e C raw ford C ounty T ru st & Savings B ank since its reorganization, and w ith th e old C raw ford County State B ank for some 15 years, is a t p resen t filling Now a Major L eonard J. W egm an, vice p resid en t and a d irecto r of th e Citizens Savings Bank, A nam osa, Iowa, and th e Dyersville N ational B ank, son of Leo J. W egm an, has recen tly been com m is sioned a m ajor. Since en terin g th e service tw o y ears ago, M ajor W egm an atten d ed F in an ce th e position m ade vacan t by th e resig n atio n of Miss Portz. Vice President Found Dead E. A. Romack, 73, vice presid en t of th e b ank at Packwood, Iowa, and a large landow ner in th is com m unity, w as found dead in his farm hom e th ree m iles n o rth w est of Packw ood last m onth. A coronor’s in q u est w as held and it w as decided th a t death w as due to n a t u ra l causes, probably du rin g his sleep. A Broad Background O ur su bstantial num ber of direct affiliations, our d ep en d ab le transit departm ent, a n d our intim ate know ledge of farm ing an d the livestock business en ab les us to offer unexcelled correspondent service in the Sioux City area. W hether it is a dow ntow n item or a livestock, grain or h a y transaction, w e can serve you prom ptly a n d efficiently throughout Sioux City. M A JO R L E O N A R D J. W E G M A N School a t F o rt B enjam in H arrison, Indianapolis. He w as th e n tra n sfe rre d to M axw ell Field, M ontgom ery, A la bam a, w h ere he served a y e a r as dep u ty finance officer. He w as th e n tra n s ferred to C ochrane Field, Macon, Geor gia, w h ere he served some six m onths as finance officer. On Ju ly 1, 1943, he w as tra n sfe rre d to George Field, Lawrenceville, Illinois, as finance officer, w ith fu rth e r ju risd ictio n of M axwell Field, Seym our, Indiana, and Lockb o u rn Field, Colum bus, Ohio. D uring this in terim he had been prom oted to th e ra n k of captain and has now ju st been com m issioned as a m ajor. H e is a t th is tim e located at George Field, Illinois, about ten m iles east of V in cennes, Indiana. 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 Member Federal Deposit Insurance Corporation NATIONAL BANK 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 ELO C K EXPERTS F. E. D A V E N P O R T & C O . OM AHA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern B anker D ecem ber 19^3 50 New W aterloo Bank Interior A bove is p ic tu re d tw o v iew s o f th e in te r io r o f th e new P e o p le s S a v in g s B a n k , W a te rlo o , Io w a. A t th e le f t is a v iew fro m th e e n tra n c e , lo o k in g th ro u g h th e lo b b y to w a rd th e sa fe d e p o sit v a u lt a t th e re a r. A n o th e r lo b b y v ie w on th e rig h t Tenth Birthday T he Citizens N ational B ank a t Boone, Iowa, recen tly m ark ed its te n th a n n i v e rsa ry of service to th e people of Boone county. Since its founding in 1933, th e Citi zens N ational has enjoyed a steady grow th u n til today it h as 2,712 check looks fro m th e r e a r to th e e n tra n c e to th e b a n k . G eorge E. A llb ee, p re s id e n t o f th e b a n k , say s th e in s titu tio n is sh ow ing a s te a d y a n d c o n siste n t in c re a se since its o p e n in g a fe w w e ek s ago, a n d th e officers a re p le a se d w ith th e re su lts . ing accounts, 1,797 savings and tim e deposit custom ers, and 1,002 loan ac counts. Four Counties Meet A four county m eeting of the b an k ers of D ickinson, E m m et, K ossuth and Clay counties w as held a t E stherville, Everything Is Importanti Iowa, last m onth, atten d ed by about 75 b an k officials and employes. J. E d Drew, deputy m anager of th e A m erican B ankers A ssociation, ad dressed th e group and, in review ing th e im pressive w ar record of th e banks, pointed out th a t in addition to financ ing th e production of w ar m aterials, banks w ere providing a valuable serv ice to th e nation th ro u g h th e sale of W ar Bonds, h an dling ra tio n banking, providing a b anking service for m ili ta ry cam ps, and perform ing v ital fiscal services for th e arm ed services and governm ent departm ents. Leaves Banking A s time is of the e sse n c e in w ar, so w e b eliev e prom ptness, a ccu racy and understanding to b e of the e sse n c e in the hand lin g of the b u sin ess of our correspondents. W e regard everything a s important. The ca su a l inquiry for information g ets the sa m e serious attention a s a transaction involvin g large sum s. W e retain an d invite n ew b u sin ess on this basis. SECURITY NATIO NAL BANK SIOUX CITY, IOW A CHARLES R. G OSSETT, P r e s id e n t B. M . W H EELOC K, V ice P r e s id e n t ALBERT C. ECKERT, V ic e P r e s id e n t R. EARL B R O W N , C a s h ie r N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 19^3 D ANIEL B. SEV ER SO N , T ru s t O fficer FRAN K H. ABEL, A s s is ta n t C a s h ie r A LV IN G . N ELSO N, A s s is ta n t C a s h ie r ROBERT W . LEW IS, A s s is ta n t C a s h ie r H arold Ziegler, m anager of the sav ings d ep artm en t at th e F irs t N ational B ank a t Oelwein, Iowa, resigned his post to en ter th e public accounting field. H e left th e b an k to becom e asso ciated w ith M. G. Stebbins, tax con su lta n t and accountant. Ziegler has been em ployed by the local ban k for 14 years. He left th e U n iversity of Iowa, w here he w as ta k ing a business course, to become teller. F o u r y ears ago, on th e death of George F alk, he w as prom oted to savings de p a rtm e n t head. H e is also city tre a s u rer. B ank officials have not announced his successor. Twenty-five Years K a th ry n D ickkut w as guest of honor a t a su rp rise d in n er p a rty recently at th e E nglew ood Tea Room, given by ow ners, em ployes and officials of th e C entral S tate B ank at S tate Center, Iowa. She com pleted 25 y ears of faith ful and efficient service w ith th e Cen tra l State B ank th is year. In recogni- 51 — • I O W A tion of this, F re d B. G ilbert, in behalf of th e group, p resen ted Miss D ickkut w ith a jew eled w rist w atch. Dinner Meeting C layton county b an k ers and th e ir w ives, n u m b erin g fifty-five, g ath ered a t th e M asonic Tem ple, S traw b erry Point, Iowa, for a d in n er and program . S peaker of th e evening w as S enator G. W. H u n t of G uttenberg, w ho told of his trip by a ir from C layton county to H aw aii tw o y ears ago to see his son w ho w as ill. N E W S * - and a y ear later en tered th e service of th e b ank as an a ssistan t vice president. T his y ear he w as nam ed cashier w hen Mr. Schleiter w as nam ed p resid en t of th e in stitution. H en ry M artin, w ho w as w ith th e b an k at G ilbert as m anager of th a t branch, after re tu rn in g from th e W orld W ar, served th e re u n til he came to A m es in 1933 as an a ssistan t cashier. He now succeeds Cadwell as cashier of th e in stitution. O ther personnel of th e b ank rem ains th e same, w ith some additions due to th e rem oval of F re d K lein and o th er sh ifts occasioned by th e w ar. George R ichardson, w ho is an assist a n t cashier, also serves as tre a su re r of th e city of Ames. Bulging Reflecting increased incom es since this co u n try w en t on a w artim e basis, Cedar Rapids, Iowa, ban k s w ere bulg ing w ith a to tal of $43,462,845.51 in in dividual tim e and dem and deposits, according to new spaper statem ents. T his to tal rep resen ted an increase of $12,687,257.69 over th e $30,775,587.82 in individual deposits in th e sam e banks as of 1940. British Banker Speaks H ow a u n ite d B rita in is p rep arin g alread y for p o stw ar reco n stru ctio n w as described by a noted B ritish econom ist, W. J. H inton, re p re se n ta tiv e of th e B ritish In fo rm atio n Services in New York, N ew York, w ho cam e to Des M oines u n d e r th e auspices of th e Des M oines c h ap ter of th e A m erican In s ti tu te of B anking. H inton, w ho is a fo rm er head of th e B ritish In stitu te of B anking, said em phasis is being placed on g re a te r social equ ality and w id er d istrib u tio n of w ealth. Promotions A nnouncem ent of th e prom otion of B. L. McKee to th e position of execu tive vice p resid en t of th e M uscatine B ank and T ru st, M uscatine, Iowa, and of Boyd Jo rd a n to th e position of cash ier, fo rm erly held by Mr. McKee, w as m ade follow ing a m eeting of th e board of directors held recently. W illiam F. Siem ers, B ert P. Olsen and E d C. R osenm und continue as th e b a n k ’s th re e active a ssista n t cashiers in place of th e four fo rm erly serving in th is capacity. F. W a rre n Allen, an a ssista n t cashier, is in active m ilitary service. H arold E. L em kau w as elected to th e office of auditor. No fu rth e r changes w ere m ade in th e offi cers a t th e bank. For Promptness FOR EIGHTY YEARS p r o m p t ness h as m a rk e d th e service to c o r r e s p o n d e n t b a n k s o f T h e F irst o f Chicago* T oday o u r B a n k a n d B a n k e rs D iv i sio n is h a n d lin g a n atio n -w id e business, a n d in v ites acco u n ts u p o n a basis th a t so lo n g has p ro v e d m u tu a lly satisfactory. Ames Bank Personnel C. F. Cadwell w as nam ed p resid en t of th e U nion S tory T ru s t & Savings Bank, Ames, Iowa, a t an election by th e board of directors. H e fills th e posi tio n left v acan t by th e d eath of th e late F ra n k Schleiter. George Ju d isch w as nam ed ch airm an of th e board of directors, com posed of A. H. M unn, W. T. B arr, L ouis H. Judisch, C. G. Lee, C. F. Cadwell, C. F. C urtiss, L. W. M cElyea, N. L. N elson and Adolph Shane. Mr. Cadwell cam e to A m es in 1933, a fte r b an k in g experience a t D unlap, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The First National Bank o f Chicago B u ild in g w ith C h icago Since 1 8 6 3 M EMBER FEDERAL DEPOSIT IN SU RA N CE C O RPO RATIO N N orthw estern Banker D ecem ber 19b3 52 -• Bankers Meet F ay ette county b an k ers m eeting w as held a t W est U nion recently. A ttending from A m erican N ational B ank w ere M isses Avice L. Rowell, E velyn T outsch, M esdam es Alice M. N ew ton, Opal A. Luce and Chas. F. E ck h e a rt and F re d P. G ernand. County officers elected a t th e m eet ing are: Jo h n Camp, a ssista n t cashier, F irs t N ational B ank, W est U nion, p re s ident; H arold Ziegler, m anager, sav ings d ep artm en t, F irs t N ational Bank, Oelwein, vice president; Opal A. Luce, acting cashier, A m erican N ational Bank, A rlington, Iowa, secretary -treas urer. IO W A NEWS • cently. T he follow ing directors w ere elected: L. D. Rowley, Otto Schm itt, A. L. E vans, E. D. C ream er, E. H. S tew art, H en ry B uenneke and G erald W arnke. Follow ing th e stockholders m eeting th e directors m et and elected L. W. Row ley p resid en t and Otto S chm itt vice president. L. H. B uen neke w as retain ed as cashier and Paul H arriso n as a ssista n t cashier. G oes to Sioux City F re d e rik J. H anna, w ho has been a ssista n t cashier of th e L andm ands N ational B ank in K im ballton, Iowa, for tw o years, has resigned his posi tion. He w ill leave soon for Sioux City w here he has accepted a position in a bank. Hold Election The a n n u al m eeting of th e stockhold ers of th e M aynard Savings B ank, M ay nard, Iowa, w as held a t th e b an k re Lee County Association In a reg u lar m eeting of th e Lee C ounty B ankers A ssociation, held in H otel Iow a at K eokuk, Iowa, recently, R ay Schm itt, cashier of th e Citizens S tate B ank a t D onnellson, w as nam ed president; H. T. E dw ards, cashier of th e F arm ers Savings B ank at W ever, vice president, and A ubrey V. Allen, a ssistan t cashier of th e K eokuk Sav ings Bank, secretary-treasurer. T he m eeting followed a d in n er in th e Tiffany room and all m em ber banks of th e county w ere represented. In addi tion to th e election th e m eeting in cluded in terestin g discussions of b an k ing problem s. Buys Bank T he G illett Grove Savings B ank w as acquired by th e F a rm e rs T ru st and Savings B ank of Spencer and w ill be operated as a b ran ch of th e Spencer in stitution. L. A. W itter, p resid en t of th e Spen cer Bank, said th a t F ra n k N. Wood, w ho has been cashier a t G illett Grove th e last ten years, w ill be m anager of th e branch. T he tran sactio n ends th e independ en t career of th e G illett Grove B ank over a period of 40 years. C. D. B arn ard of G illett Grove w as presid en t and W. C. S tew art vice president. Deposits approxim ated $250,000 and th e <°aoital and su rplus am ounted to about $27,000. Banker at Dubuque Dies R alph R. Blair, 60, executive vice presid en t of th e D ubuque B ank & T ru st Company, and a form er state b ank exam iner, died at his hom e in D ubuque, Iowa, afte r several m onths illness. He w as connected w ith th e state b anking d ep artm en t as an exam iner from 1930 u n til Ju ly 1, 1935, w hen he becam e associated w ith th e D ubuque B ank and T ru st Company. At th e tim e of his death he w as sec re ta ry of D istrict 4, Iow a State B ank ers A ssociation. Heads Municipal Department E N J O Y 3% TO 4%l T r u s t s , S t a t e B a n k I n v e s tm e n t s , S ta te B u ild in g a n d L o a n , P u b lic F u n d s , I n s u r a n ce. L e g a l in I o w a a n d O th e r S ta te s . F e d e r a lly In su red S a v in g s an d Lo a n C e rtific a te s W r i te to r l i s t s o f S e le c te d A s s o c ia tio n s , w it h c o m p le te s e r v ic e — G r a tis N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F IN A N C IA L DEVELOPM ENT COM PANY ( N o t In c o rp o ra te d ) 105 S . L a S a l l e D ecem ber 19^3 C h ic a g o 3 E ugene W. Stetson, p resid en t of the G u aran ty T ru st Com pany of New York, has announced th e appointm ent of Gordon B island D uval as second vice presid en t in charge of th e b a n k ’s m unicipal bond departm ent. Mr. D u val has been associated w ith H alsey, S tu a rt & Com pany as a ssistan t to the vice p resid en t in charge of m unicipal bond buying. H e w as b o rn in Houm a, Louisiana, on May 19, 1907, and w as g rad u ated from P rin ceto n U n iversity in 1929. 53 Twenty-five Years Ago Names in Northwestern Banker News From the December, a . TRAYLOR la st m o n th w as elected p resid en t of th e F irs t T ru s t and Savings B ank of Chicago succeed E. K. B oiset, w ho resigned on account of ill h ealth. Mr. T ray lo r also becom es vice p resid en t of th e F irs t N ational B ank of Chicago and a di recto r of b oth in stitu tio n s. —S. T. Kiddoo, vice p resid en t of th e Live Stock E xch an g e N ational B ank of Chicago, has been elected presid en t. Mr. Kiddoo w as fo rm erly p resid en t of th e South D akota B an k ers A ssociation.—F red erick W. G ehle, editor of th e M echanic & M etals N ational B ank J o u rn a l of N ew Y ork City, published le tte rs in th e October issue from fo rm er em ployes of th e b an k now in service in F ran ce.—Le R oy A. Goddard, p resi d en t of th e S tate B ank of Chicago, has been elected ch airm an of th e ex ecutive council of th e Illinois B an k ers A ssociation, succeeding N elson N. Lam port, deceased.— George F. E m ery, cash ier of th e Live Stock E xchange N ational B ank, w as elected to m em bersh ip in th e council.—John F letcher, vice p resid en t of th e F t. D earborn N ational B ank of Chicago, sees n o th ing b u t p ro sp erity ahead for th e live stock in d u stry du rin g th e n e x t five years. —R. W. H aw es, first vice p re si den t of th e A.B.A., h as been m ade tre a s u re r of th e U nited W a r W ork C am paign in M issouri and ch airm an of th e W a r Camp C om m unity Service in St. Louis.—H anford M acNider, son of C harles H. M cNider, p resid en t of th e F irs t N ational B ank of M ason City, Iowa, has been com m issioned a M ajor in th e 9th In fa n try for g a lla n try in action in th e B attle of C hateau T hierry. ■ —John R. W ashburn of th e Conti n en tal and Com m ercial N ational B ank has been recu p eratin g a t E xcelsior Springs.—H. H. C heyney, p resid en t of th e Mills C ounty N ational B ank of Glenwood, Iowa, announces th a t th ey E L V IN M 1918, Issue have recently m oved into th e ir m ag nificent new b anking hom e.—J. B. M cDougal, cashier of th e C entral State to B ank of Des Moines, has en tered the M arine Officers T rain in g Camp a t P a ris Island, South Carolina. — C. J. W ohlenberg, cashier of th e H olstein Savings B ank rep o rts to tal resources of his b ank of $1,400,000.—T he di recto rs of th e Cedar Rapids N ational B ank gave a d in n er in honor of J. H. In g w ersen of Clinton, one of the b a n k ’s directors w ho recently assum ed his duties as vice presid en t of the F irs t N ational B ank of D uluth, M inne sota.—T he largest b an k in H en ry County is th e F a rm e rs and M erchants Savings B ank of Mt. P leasant, Iowa, w hich has deposits of $800,000, accord ing to H. C. W eir, president. — Grant M cPherrin, vice presid en t of th e Cen tra l S tate B ank of Des Moines, w as elected presid en t of th e Des Moines COM PLETE SERVICE IN TH E PURCHASE A N D SALE OF U. S. G O V E R N M E N T SECURITIES USTOMERS of The Northern Trust Com pany appreciate the completeness of the modern service rendered here in connection with United States Government securities. The Bond Department is staffed with men of long experience and training in handling these issues. They have ready access to current information on all Government obligations. Inquiries are invited concerning the purchase or sale of United States Government securities. Orders are executed with dispatch. C Write for a copy of Quotation Record Form for your U. S. Government Securities YES! We Have Safe Deposit Boxes A ll m akes, a ll sizes, 100 p e r c e n t re c o n d itio n e d . C om plete w ith c u sto m e r boxes, g u a rd k e y a n d c u s to m e rs ’ k e y s. I f y o u need sa fe d e p o sit boxes c h eck y o u r needs w ith us. O ver 6,000 boxes to choose fro m . W e h a v e sold boxes to b a n k s in n e a rly o n e -th ird o f th e s ta te s in th e e n tire coun t r y a n d w e w ill g la d ly g iv e y o u th e nam es o f th e s e b a n k s as re fe re n c e s. P h o n e , w ire or w rite J . E . M u rp h e y , 1800 D yer, S t. L o u is C ounty, M isso u ri. P h o n e C H e stn u t 9000. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE NO RTH ERN TRUST COMPANY 50 SOUTH LA SALLE STREET, CHICAGO 90 M em ber F ederal D eposit Insurance Corporation N orthw estern B ankev D ecem ber 19b3 54 • B an k e r’s Club.—George M. R eynolds, p resid en t of th e C ontinental and Com m ercial N ational B ank of Chicago, spoke on th e “P assing P rocession of E v e n ts” before th e N ebraska B ankers A ssociation a n n u al m eeting in Omaha. —D eposits of O m aha b anks on N ovem b er 1, 1918, w ere as follows: Omaha N ational, $23,479,190; G. S. N ational, $17,736,693; F irst N ational, $14,988,674; M erchants N ational, $11,564,938; Stock Yards N ational, $11,171,105; Live Stock N ational, $8,638,057; N ebraska N a tional, $2,964,891; P ackers N ational, $3,656,415.—F. C. H olbert, president, I O W A N E W S * an d J. K. F riedebach, a ssistan t cash ier, of the F irs t N ational Bank, Plainview, N ebraska, have p u rchased the controlling in te re st in th e F arm ers S tate B ank of B runsw ick, N ebraska. Judge J. R. H an na has been elected p resid en t of th e N ebraska State Bank, G rand Island, N ebraska. — R. S. R isin g, p resid en t of th e N ational B ank of A insw orth, N ebraska, has sold his in te re sts to George D. Clisbe and T. E. R itter of A insw orth and C. W . B ish of W eeping W ater.— A. O. N etland, p resid en t of th e S tate B ank of Northfield, M innesota, had deposits of $570,- 298 on October 19, 1918.— P. H . Sim ons has been elected cashier of th e F a rm ers and M erchants State B ank of H en derson, M innesota.—The w ord “Ger m an” has en tirely disappeared from M innesota banks. — E. A. H insch, fo rm er paying teller of th e N ational B ank of Commerce, St. Paul, has been elected a ssistan t cashier of the bank. F. C. Sm ith, p resid en t of th e F a rm ers State B ank of P latte, South Da kota, had deposits in his b an k on No vem ber 1, 1918, of $744,670.— The Sioux F a lls N ational B ank has issued a souvenir booklet giving a com pre hensive review of th e grow th of the city.—The large new brick building of th e Secu rity Bank, W inner, South D akota, is n earin g com pletion and will be ready for occupancy about Ja n u a ry 1, 1919.—T he F irs t S tate Bank, Kildeer, N orth D akota, has increased its capital stock from $10,000 to $25,000, according to Guilder Olson, president. R. E. T rousdale, presid en t of th e F irs t N ational B ank of Mott, N orth Dakota, rep o rts deposits of $566,519. Christmas Checks The F irst N ational B ank in St. Louis m ailed checks totaling $528,467 to 8,877 m em bers of its 1943 C hristm as Savings Club. T his w as a larg er am ount th an last year, b u t th e nu m b er of m em bers w as sm aller. A large proportion of these funds now goes into W ar Sav ings Bonds. W ood Netherland Dies W ood N etherland, w idely know n b an k er and a vice p resid en t of the M ercantile-Com m erce B ank and T ru st Company, St. Louis, died a t his hom e in St. Louis of a h e a rt attack early last m onth. Mr. N eth erlan d w as 54 year old and, w hile he had been in ill h ealth for some m onths, his death w as u n expected. H e w as presid en t of th e B ank of M ulberry, A rkansas, and cashier of the F irs t N ational B ank of F o rt Sm ith before com ing to St. Louis in 1928 as W an ted to B uy C o llections a n d A c cu m u latio n s o f U n ite d S ta te s a n d F o re ig n P o sta g e Stam ps W ill b u y sta m p s h e ld as se c u rity on d e f a u lt loans. A lso in te re s te d in h e a rin g fro m e x ec u to rs o f e s ta te s w h e re sta m p s a re in v o lv ed . A L B E R T M IC H E L , 3009 G u n n iso n St., C hicago 25, 111. M em b er A. P . S. N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 1943 55 - • vice p resid en t and tre a s u re r of th e F ed eral In term ed iate C redit B ank and th e F ed eral L and Bank. A y e a r later he becam e p resid en t of both in s titu tions. In 1934 he becam e a vice p resid en t of M ercantile-Com m erce and, d u rin g th e sam e year, w as appointed liaison officer in M issouri to act in prom oting cooperation w ith th e FHA. L ast Octo b er he w as elected p resid en t of th e I O W A NEW S •tw o shares held. It is contem plated by th e b a n k ’s board of directors to issue n ear th e end of th e y ear an additional 5,000 new shares of com m on stock by m eans of a 50 p er cent stock dividend on th e 10,000 shares of com m on stock o u tstan d in g p rio r to th e issuance of the purchase rights. New Common Stock S tockholders of A m erican N ational B ank and T ru st Com pany of Chicago, in a special m eeting held last m onth, approved th e issuance of 5,000 new sh ares of com m on stock to be offered to th e holders of th e p resen t common stock for subscription a t p a r of $100 on th e basis of one new share for each a f o o d At th e tim e of calling for th e special 'D e a l. . . only when both parties benefit. An old saw, but true today as always. In a collateralized inventory loan—through Field Warehousing—the benefits are reciprocal. The bank puts loanable funds to work at good interest rates and on a sound basis. The borrower acquires needed funds for operational purposes at reasonable cost. Field Warehousing simplifies the procedure of financ ing commodity loans. It provides complete inventory control, full hazard insurance and bonding protec tion. It is the safe, modern means of expanding your W OOD loan portfolio. We invite your inquiries. NETHERLAND W n ite sta te b an k division of th e A m erican B an k ers A ssociation, hav in g p rev io u s ly served as vice ch airm an of th e ABA com m ittee on F ed eral legislation. Burlington Director H. M. B ushnell, president, U nited States N ational B ank, Om aha, w as elected d irecto r of th e Chicago, B u r lington & Q uincy R ailroad Com pany, a t a recen t sto ck h o ld ers’ m eeting in Chicago. T he B u rlin g to n ’s board of nin e direc to rs is com posed en tirely of resid en ts of th e te rrito ry served by th e railroad. Six are Chicagoans, R. Douglas S tu art, W allace C. W in ter, C. I. Sturgis, R alph Budd, E d w ard F ly n n and J. C. Jam es; tw o are in St. Paul, C. E. D enny and F. J. Gavin, and Mr. B ushnell in Omaha. T he B u rlin g to n h as m ore m ileage th a n in an y o th er state. Mr. B ushnell w as b o rn a t Lincoln, N ebraska, in 1893, atten d ed th e public schools th e re and g rad u ated from th e U n iv ersity of N eb rask a college of law.' H e en tered th e service of th e U nited S tates N ational B ank of Om aha in 1919. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis auA- b o a J d e t cm FIELD W A R E H O U S I N G \N h R tH O f j ST. LOUIS TERM INAL WAREHOUSE CO. G en e ra l O ffices • 826 C la rk A ve. • St. Louis, Mo. KANSAS C IT Y -M E M P H IS - C IN C IN N A T I - CH ICAGO • same management • sam e ow nership • sam e pe rso nn e l The same service to banks will be maintained. Better envelopes for every business need are still available and your continued patronage will be appreciated. Tension Envelope Corp. BERKOWITZ ENVELOPE CO. Albert C. Berkowitz, P r e s id e n t 1912 Grand Ave. Des Moines 14, Iowa, Phone 4-4126 Other factories in Kansas City, St. Louis, M inneapolis and N ew York N orthw estern B anker D ecem ber 1943 56 • IO W A quietly, quickly and in a personal manner JAY A. WELCH BANK BROKER Haddam, Kansas “35 Years Practical Banking Experience” If Y our C hristm as S hopping By Now . . . D on’t L et H e r Say She W asn’t W arn ed To Do So! We’ve had our problems in the past, and we’ve successfully met them. We have our problems today—and with your help, we can overcome them again. Though selections may not be large and substitute merchandise displayed—rest assured we are doing our best to serve your immediate requirements—and at the same time enthusiastically support our country in the “All-Out War Effort." "Buy U. S. Bonds and Stamps" o in e s , n s D e l o n B a T otal assets of over $4,000,000 are show n in a recen t statem en t of th e Des M oines Building-Loan and Savings A ssociation. T his is a su b stan tial gain over the association’s m idyear sta te m en t w hich, incidentally, w as its 55th sem i-annual statem ent. A t th a t tim e th e association, since organization, had paid out $1,796,094 in dividends. T he p resen t officers and directors in- Ia . n k R . W E S S L IN G , P R E S ID E N T 2 1 s t y e a r p la n n in g a d v e r t is in g p r o g r a m s fo r b a n k s a n d tr u s t c o m p a n ie s . W r i te fo r P r o g r a m K e y e d to W a r T im e s . P u b l i c R e l a t 2 i o n s c ^ l/[o L t E i, j J o a r a N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TEN ROCKEFELLER PLAZA Member of the Federal Deposit Insurance Corporation DES MOINES BUILDING-LOAN & SAVINGS ASSOCIATION OldestandLargestinDesM oines 411 6th Ave. Dial 4-7119 E L M E R E . M IL L E R P r e s , a n d S ec. H U B E R T E . JA M E S A s s t. Sec. F O R Y O U R E N JO Y M E N T . . . “ W O R L D O F M U S IC ” Substantial Gain ^ E % (J Ì C I E ± u M A D ISO N AVENUE AND 4 0 T H STREET L is te n to th e ^ M E S T A B L IS H E D K ^ S T A T IO N E R S V 1889 S BOOK B IN D E R S OFFICE O U T F I T T E R S ^ ^ A V ^ - ^ B U S I M E S S MACHINES o IO O BROADW AY Ja y W eil, presid en t of DouglasG uardian W arehouse C orporation, an nounces th e election of S tanley D. H art, N ew Y ork office, and Dan B. MacDuff, P hiladelphia office, as vice p resid en ts of th e corporation. Both m en have been w ith th e com p any for a long period of tim e and are highly esteem ed by th e clients and receip t holders of Douglas-Guardian. Mr. H a rt w ill rem ain in charge of th e N ew Y ork and New E ngland dis tric ts and Mr. MacDuff w ill continue to su pervise th e com pany’s operations in th e T ri-States and Pennsylvania. DES MOINES C C a p it a l F u n d s . $ 4 5 ,0 0 0 ,0 0 0 Announces Promotions FRANKEL'S Des M N ew York T rust Company A gain of $3,643,396 in to tal assets w as registered by th e T w in City F ed eral Savings and Loan A ssociation of M inneapolis and St. P au l for th e first six m onths of 1943, according to M or ton Bodfish, executive vice p resident of th e U nited States Savings and Loan League. T his gain is th e larg est show n by an y m em ber of th is group. W ith to tal resources now over $25,000,000, th e T w in City F ed eral Savings and L oan A ssociation is th e fo u rth largest F ed eral savings and loan association in the U nited States. F in ish e d H e r Fo u r t h T he Leads in Group Gains W ife H as N ot at • stockholders’ m eeting, L aw rence F. Stern, presid en t of th e A m erican N a tional Bank, also announced th a t it is th e in ten tio n of th e board of directors to increase th e b a n k ’s su rp lu s fund from $2,500,000 to $3,000,000. It is expected th a t th e dividend to be declared in Jan u ary , 1944, on the 20,000 shares of com m on stock th en to be o u tstanding w ill be a t th e ra te of $6 p er year. The ra te on th e 10,000 sh ares heretofore o u tstanding has been $8 d u rin g th e p ast th ree years. Banks Sold or Bought! Grand Av e. NEW S D ecem ber 19^3 K S O , 1460 K C 9 :30-10 :00 a. m . S u n d a y s 57 • elude E lm er E. M iller, p resid en t and secretary; H u b e rt E. Jam es, a ssista n t secretary; A. H. M innis, ch airm an of board and vice p resident; E. S. Tesdell, counsel, and C. F. T ow nsend an d C. L. M innis, directors. Stock Dividend A t a recen t m eeting of th e board of directo rs of th e C ontinental Illinois N ational B ank and T ru s t C om pany of Chicago, a special m eeting of th e sh a re holders of th e b an k w as called for D ecem ber 17, 1943, for th e purpose of acting on a reso lu tio n increasin g th e capital of th e b a n k from $50,000,000 to $60,000,000 by th e d eclaration of a stock dividend of 20 p e r cent of th e p re se n t capital. E ach sh areh o ld er w ould receive one additional sh are of stock for each five sh ares held. W hen cash dividends are h e re a fter declared, th e y w ill be payable on th e increased stock, and it is contem plated th a t th e p re se n t ra te of dividend p er sh are w ill be continued. T he b an k has been p aying sem i-annual dividends of $2 a share. I t is contem plated, also, to increase th e su rp lu s account from $50,000,000 to $60,000,000, so th a t if th e capital is increased, th e re w ill be $60,000,000 of capital stock and $60,000,000 of surplus. T he in creases w ould be effected by tra n sfe rs from undivided profits. A tw o-thirds vote is n ecessary to increase th e b a n k ’s capital and, a fte r au th o riz a tion of th e proposed increase, th e re w ould be 1,800,000 sh ares o utstanding, com pared w ith 1,500,000 sh ares a t p re s ent. P a r v alue of th e stock is $33 1/3 p er share. Additional Award Lt. Col. A. V. Stallard, officer in charge of th e T w in Cities Regional Office, Chicago O rdnance D istrict, a n nounces th a t th e M inneapolis-M oline P ow er Im p lem en t Com pany has been aw arded th e U nited States A rm y Ord nance B an n er for m erito rio u s produc tion. T his b a n n e r w as aw arded to th e A utom otive P lan t, M inneapolis, M in IO W A NEWS • nesota, and the Pow er M achinery P lan t of H opkins, M innesota. T he aw ards, including about 6,000 individual aw ards, w ere m ade last m onth by Col. Jo h n Slezak, d eputy d istrict chief of th e Chicago O rdnance D istrict. P re s en tatio n cerem onies w ere held a t the M inneapolis p lan t in th e forenoon and a t th e H opkins p lan t in th e a fte r noon. T he A rm y O rdnance B an n er w as aw arded the M inneapolis-M oline p lan ts for m eeting schedules beyond th e call of duty. T he com pany is producing m any item s of Ordnance, some on a prim e co ntract basis and m any on a sub-contract basis. T he w ide v ariety and volum e of production th ro u g h th e Ç7nòzx use of available equipm ent has been a su b stan tial contribution to th e w ar effort. The O rdnance D epartm ent rec ognizes th e skill of th e m anagem ent and of th e m en and w om en of M inne apolis-Moline Pow er Im plem ent Com pany in th e rebuilding of old m achine tools and y et hold th e close tolerances as specified for O rdnance m aterial. T he su b stitu tio n for critical m aterials and th e in tro d u ctio n of ingenious m a chining m ethods are especially note w o rth y and played an im p o rtan t p a rt in m aking th is aw ard. The safety record of th e com pany is com m endable as evidenced by th e display of the G overnor’s Safety A w ard B an n er in th e plants. Do ¿^dvertitfcrs L A 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 .......... 27 A m erican 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 .................................................................. 30 B B a n k e rs T r u s t C o m pany— Des M o in es.. 47 C C e n t r a l H a n o v e r B a n k a n d T r u s t C o . . . 36 C e n t r a l N a t i o n a l B a n k a n d T r u s t Co. — D e s M o i n e s ..................................................... 10 C h a s e N a t i o n a l B a n k ................................... 6 C h i c a g o , M i l w a u k e e , S t. P a u l R a i l r o a d 22 C i t y N a t i o n a l B a n k — C l i n t o n ................. 52 C i t y N a t i o n a l B a n k a n d T r u s t Co.— C h i c a g o .................................................................... 32 C i t y N a t i o n a l B a n k a n d T r u s t C o .— K a n s a s C i t y .......................................................... 40 C o n t i n e n t a l N a t i o n a l B a n k — L i n c o l n . . . 43 D a v e n p o r t , P . E . a n d C o .........................43-4 9 D e L u x e C h e c k P r i n t e r s , I n c ...................... 46 D es M oines B u ild in g , L o a n a n d S a v in g s A s s 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 ................................ 54 F' F e d e ra l In te rm e d ia te C red it B a n k s . . . . F i n a n c i a l D e v e l o p m e n t C o m p a n y ............. F i r s t N a t i o n a l B a n k — C h i c a g o .................. F i r s t N a t i o n a l B a n k — O m a h a .................... F i r s t N a t i o n a l B a n k — S i o u x C i t y .......... F r a n k e l C l o t h i n g C o m p a n y ............................ 28 52 51 42 49 56 II H o m e I n s u r a n c e C o m p a n y .............................. 40 I N ational B an k and ................................................ 60 and B ro th ers 27 2 54 32 53 N N e w Y o r k T r u s t C o m p a n y .............................. 56 N o r t h e r n T r u s t C o m p a n y ................................. 53 O N a tio n a l B a n k ...................................... 19 P 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 lic N a tio n a l B a n k a n d T r u s t C o ... 23 26 S S t. L o u i s T e r m i n a l W a r e h o u s e C o m p a n y 55 S t. P a u l T e r m i n a l W a r e h o u s e C o m p a n y 21 S c a r b o r o u g h a n d C o m p a n y ................... 2 5 - 4 6 - 5 7 S e c u r i t y N a t i o n a l B a n k — S i o u x C i t y . . . 50 S t a t e A u t o m o b i l e I n s u r a n c e A s s ’n .......... 26 T T e n s i o n E n v e l o p e C o r p o r a t i o n .................. 55 T o o t l e - L a c y N a t i o n a l B a n k ......................40-4 1 U U n i t e d S t a t e s N a t i o n a l B a n k ....................... 38 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 . . . 59 W C o m p a n y ................................... 32 K K och 3 56 48 44 34 M .1 Jam ieson S o n ................................. C o m p a n y .................... B a n k —-C hicago . . B ank— O m aha ... B a n k — S io u x C ity M erch an ts M u tu al B o n d in g C o m p a n y .. M e r c h a n t s N a t i o n a l B a n k ........................... A l b e r t M i c h e l ............................................................ 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 ____ M u r p h y , J . E .............................................................. O m aha T) Io w a -D e s M oines T rust Com pany G eorge L aM o n te a n d L e ssin g A d v e rtisin g Live S to ck N a tio n a l L ive S to ck N a tio n a l L ive S to ck N a tio n a l ........................................................ 56 C h a r l e s E . W a l t e r s C o m p a n y ....................... J a y E . W e l c h ............................................................ W e s s l i n g S e r v i c e s ................................................ W e s te rn M u tu a l F ir e Ins. C o m p a n y . . . . 40 56 56 24 S carborough ^ C ompany ¿ y y i Á Á 4 h c t f t c t y C<-u h u / v h First N ational Bank Building, C hicago https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Horace A. Smith, Iow a R epresentative D es M oines, Iow a N orthw estern Banker D ecem ber 1943 58 IN THE DIRECTORS' ROOM aw ay, ye spalpeen, and rem em ber th a t any h its outside th a t chalk line don’t count!” M ust Q u it S o m etim e F ath er: Young m an, w h a t do you m ean by b rin g in g D orothy hom e a t 6 in th e m orning? Charlie: W ell, m y gosh! I have to be a t w o rk by 7. L e t s See “W ill th e scar show, D octor?” “I t ’s en tirely up to you.” Som e M istake L o s t? T he teach er w as tellin g his class about th e conquests of A lexander th e G reat. “W hen A lexander h ad conquered In dia,” he said, “w h at do you th in k he did? Do you th in k he gave a g re a t feast to celebrate his triu m p h ? No; he sat dow n and w ep t.” The ch ildren seem ed a little disap pointed a t th is childish exhibition on th e p a rt of th e hero, so th e teach er continued: “Now, w h y do you th in k A lexander w ep t?” Up w en t a little hand. “W ell, T om m y?” said th e teacher. “Please, sir,” said Tom m y, h e sita t ingly, “p erh ap s he didn’t know th e w ay back.” Too M uch P riv ate Doaks w an ted to slip out of th e barracks, unofficially, to see his girl. He w en t to th e se n try to state his case. “W ell,” said th e sentry, “I ’ll be off d u ty w hen you come back, so you ought to have th e passw ord for to night. It is ‘Idiosyncrasy.’ ” “Idio w h at?” “Id iosyncrasy.’ “I ’ll stay in th e b arrack s.” S u re Cure F irs t Aid In stru cto r: “W h at is th e first th in g to do in case of a head w ound?” Pupil: “P u t a to u rn iq u et aro u n d the neck.” H a rd ly O ne CQ: “Two p riv a te s are asking for overn ig h t passes. T hey say th e y are pals of th e 1st serg ean t.” A djutant: “N u ts—no 1st serg ean t ever had tw o frien d s.” Shades o f D ifference The captain of a sailing vessel w as questioning a new h an d reg ard in g his know ledge of ships and th e sea. A fter repeated ly receiving w ro n g answ ers, he asked, in exasperation: “H ang it all, m an, tell m e this: W here is th e m izzen m ast?” “I don’t know . H ow long h as it been m izzen?” N o H andicap F in e! Mrs. Jones (kindly): “Hello, dear, how ’s th e pain in th e n eck?” Mrs. Green: “H e’s out playing golf.” Ingenious Uncle H en ry says: “W hen a w om an’s toe sticks out of h e r shoes sh e ’s fash ionable. W hen a m a n ’s does, h e ’s a bum!” Neiv R a n k P ro u d M other: “T hey prom oted m y son J e rry for h ittin g th e sergeant. T hey m ade him a C ourt M artial.” N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Poor S h o t Two F ren ch m en had a q u arrel and, a fte r p ouring abuse on one another, decided th a t th e only w ay to settle th e difficulty w as to fight a duel. B ut a fte r th in k in g it over one of th em p ro tested. H e objected th a t b oth of them m ig h t be killed. F in ally th e y agreed to toss for it, th e loser to go behind a tre e and shoot him self. So th ey tossed a coin and th e loser departed, pistol in hand. T here w as a loud re p o rt and th e w in n er of th e toss ru sh ed to th e tree. “G reat C hristopher!” gasped th e en emy, “I ’ve m issed m yself!” D ecem ber 1943 Two Irish m en arran g ed to fight a duel w ith pistols. One of th em w as dis tin c tly stout, and w hen he saw his lean a d v ersary facing him he raised an ob jection. “Bedad!” he said, “I ’m tw ice as big a ta rg e t as he is, so I ought to stand tw ice as far aw ay from him as he is from m e.” “Be aisy now ,” replied th e second. “I ’ll soon p u t th a t rig h t.” T aking a piece of chalk from his pocket th e second drew tw o lines down th e sto u t m an ’s coat, leaving a space betw een them . “Now,” he said to th e adversary, “fire H ilda (learning to drive): T h at lit tle m irro r up th ere isn ’t set right. Tillie: W hy? Hilda: I can ’t see a n y th in g b u t th e car behind. O ne Less Guide: W e are now passing th e larg est b rew ery in th e w orld. Soldier: I ’m not. W h y N o t? “You have a w onderful form .” “M ust we go over th a t again?” T h e D ifference G eneral M acA rthur has, it seems, his lig h ter m om ents. One of his favorite y arn s is th a t of a child w ho asked his fa th e r th e difference betw een a G arand rep eatin g rifle, and an o rd in ary gun. “W ell, it ’s like th is,” replied th e Dad. “I t ’s ju st as if I spoke, and th e n y o u r m o th er spoke.” E nough R oom Did you h ear about th e m an from th e B ronx w ho w as w an d erin g in th e L ib y an d esert dressed in a b ath in g suit? He finally ra n into an A rab, w ho blinked in am azem ent. “W hy th e b a th ing su it?’ he asked. “I am going to tak e a sw im in th e ocean,” said th e B ronxite. “Swim in th e ocean? W hy th e w a t e r’s 800 m iles from h ere.” T he B ronx gen t w histled in awe. “800 miles? Say, is th is a beach!” W rong H ouse 1st Com m uter: You should be m ore careful and pull y o u r shades down. L ast n ig h t I saw you kissing your wife. 2nd Same: Jo k e ’s on you—I w asn ’t hom e last night. T h e y D on t M in d V isitor: H ow do you tell th e ganders from th e geese? F arm er: Oh, we n ev er w o rry about th a t—ju st tu rn th em all out to g eth er and let them figure it out for th em selves. T H I S Y € A * L € TS P A Y T H t b o n u s WAR b o n d s . . . and drive even harder on the pay-roll savings p la n !" M ake W ar B onds th e C hristm as Order of th e D ay. Urge your workers to m ake their personal C hristm as gifts in th e form of W ar B onds—and practice w hat you preach! M ake this a 100% W ar Bond C hristm as—to insure fu tu re Y uletides of peace and prosperity. M ake u p your own posters to spread th e “ W ar Bonds for C hristm as” story across your p lan t. Tell th e story again an d again on bulletin boards, in your p lan t m aga zine, and on p ay envelope stuffers. B u t d o n ’t forget your basic, all-im portant Pay-R oll Savings P lan. H ow ’s it going, these days? P erhaps it needs a b it of stoking-up right this very m inute, to hold its full head of steam against th e com petitive de m ands of th e holiday season. W ell, y o u ’re th e m a n to s to k e it! You can’t ex pect it to keep running indefinitely on last sum m er’s enthusiasm . See to it th a t your participation percent ages, and your deduction percentages, b o th end u p the year a t new levels. E very m onth, now your Pay-R oll Savings ought to run well ahead of th e preceding m onth. F or so m a n y f a m ilie s t h a t f o r m e r ly d e p e n d e d o n th e e a r n in g s o f a s in g le w o r k e r , n o w e n jo y th e c o m b in e d e a r n in g s o f se v e r a l. Such f a m ily incomes are doubled, trebled, even m ultiplied m any times. N ow ’s th e tim e to tu rn as m uch as possible of these increased earnings into W ar B onds—W ar B onds for C hristm as . . . and W ar Bonds th e whole year ’round! GIVE THE PRESENT WITH A FUTURE-WAR BONDS! This space contributed to Victory by N O R T H W E S T E R N B A N K E R T h is a d v e r tis e m e n t p r e p a r e d u n d e r th e a u s p ic e s o f th e U n ite d S ta te s T r e a s u r y D e p a r tm e n t a n d th e W a r A d v e r t i s i n g C o u n c il https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis To Speed ...F o r To help hand le an increasing volum e of W ar-tim e business with utmost speed an d accu racy, this bank has just installed the Recordak photographic system in its Transit Departm ent. Recordak m achines photograph checks on micro-film at split-second speed. They w ill sav e time in the clearan ce of checks p a y a b le at distant points, m aking the proceeds a v a ila b le to depositors just as soon as possible. Reco rdak’s all-seein g lens elim inates the possibility of tim e-w asting inaccu racies. After being d evelop ed , the rolls of micro-film, sim ilar to that used for V -M ail, are d ated an d filed to provide a perm anent record of out-of-town check transactions. W hen w an ted for reference a check m ay be projected in enlarg ed size to provide inform ation in the minutest detail. Rapid transit is but one of the m any im portant correspondent services pro vided by Io w a ’s Largest Bank. You are co rd ially invited to use them at an y time. owa-Des M oines N ational B ank & TRUST COMPANY M e m b e r F e d e ra l D ep osit Insu ra nce C orp o ra tio n https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis